Slide 1: FY20 Results Presentation
FY20 Results Presentation. AUGUST • 2020 1
Slide 2: Table of Contents
Table of Contents. 1 VISION , OPPORTUNITY AND KEY NUMBERS 2 B U S I N E S S U P DAT E A N D F I N A N C I A L P E R F O R M A N C E 3 F Y 2 0 P R E L I M I N A R Y R E S U LT S 4 GROWTH AND OUTLOOK 5 APPENDIX 22
Slide 3: Vision, Opportunity and Key Numbers
1. Vision, Opportunity and Key Numbers. 33
Slide 4: Note from the CEO
Note from the CEO. FY20 has been a year of unquestionable success for Wisr. We’ve COVID-19 has also made Australians more conscious than ever of their delivered significant growth across all of our key metrics, achieved financial situation. Wisr witnessed a consumer sentiment shift from major milest
Slide 5: We've built a scalable business model that is...
We’ve built a scalable business model that is... Purpose-led Fast-growing Efficient ...with massive A vision to bring financial New model already delivering a Market-leading proprietary opportunities ahead. wellness to all Australians profitable operational outcome tech platform backed by great New
Slide 6: Strong revenue growth and operating leverage
Strong revenue growth and operating leverage. Key turning point reached. 3,500,000 +54% 3,000,000 • 136% revenue growth in FY20 vs FY19 2,500,000 • 125% revenue growth in H2FY20 vs H1FY20 2,000,000 +50% 1,500,000 +46% • Strong Q3FY20 and Q4FY20 revenue growth +25% with Wisr Warehouse funding model i
Slide 7: Core profitability & investing for growth
Core profitability & investing for growth. F Y 2 0 P & L WAT E R FA L L Core business cash flow profitability achieved in H2FY20, as loan volume and revenue scales under the new funding model, while delivering operational leverage H1FY20 H2FY20 CORE BUSINESS GROWTH OPEX, OTHER, & NON-CASH CORE BUSIN
Slide 8: FY20 Key numbers
FY20 Key numbers. Delivering on milestones, keeping promises. REVENUE GROWTH LOAN ORIGINATIONS WISR ECOSYSTEM BEST IN-CLASS NET UP 136% UP 95% UP 389% 239.1K PROMOTER SCORES $7.2M $135.9M +75 +73 +78 +68 +66 +66 $68.9M $3.0M 61.5K FY19 FY20 FY19 FY20 AT 30 JUN 19 AT 30 JUN 20 CUSTOMER BROKER EMPLOYE
Slide 9: COVID-19 Impact
COVID-19 Impact. Shift to full-digital services and products Total loan originations reached $244.9M in Q4FY20 $244.9M benefits Wisr. $42.2M $202.7M $38.9M COVID-19 has brought unprecedented macroeconomic change for Australia. Our purpose-led, fully digital and agile fintech business-model ensured w
Slide 10: COVID-19 Impact
COVID-19 Impact. Rapid response delivers low exposure. PORTFOLIO BALANCES UNDER ASSISTANCE • As at 30 June 2020, $10.3M or 6.12% of total portfolio loan balances were on COVID-19 specific 8% payment assistance, this approximately halved to $5.6m (3.09%) by 31 July 2020 7% • The average Equifax CCS s
Slide 11: COVID-19 Impact
COVID-19 Impact. Company back to pre-COVID-19 hardship levels. • 85% of cases have now come to the end of the initial 3 month payment assistance • Wisr continues to proactively reach out to customers on COVID-19 payment period and 81% of these have either been remedied or resumed regular payments as
Slide 12: Business Update and Financial Performance
2. Business Update and Financial Performance. 12 12
Slide 13: Consistent growth of high-quality loan book
Consistent growth of high-quality loan book. Loan originations ($M). Loan book ($M). $244.9M $42.2M $169.4M Total loan originations (cumulative, to scale) $4.2M 9% Quarterly loan originations (number) $202.7M $141.5M $38.9M $4.6M 23% $163.8M $114.0M $31.6M $85.9M $1.8M 36% $53.8M $132.0M $23.2M $91.
Slide 14: Prime quality customer base
Prime quality customer base. Attracting Australia’s most desirable creditworthy customers. $86,686 714 +75 AVERAGE AVERAGE CUSTOMER CUSTOMER NET INCOME CREDIT SCORE PROMOTER SCORE “ 3M PERSONAL LOAN The customer service is efficient and friendly, APPLICATIONS and in many ways a 100 times better than
Slide 15: Loan trends
Loan trends. For customers all over Australia, covering 1% SMALL BUSINESS 1% EDUCATION 2% MEDICAL 2% 2% any worthwhile purpose. MOTORBIKE HOLIDAY 2% WATERCRAFT 28% 2% DEBT 1%% CONSOLIDATION RECREATIONAL VEHICLE 3% 20%% GAP FINANCE 30%% 5% HOME CONTENTS 23%% 14% OTHER 1%% 5% 2% 18%% 26% CAR 12% HOME
Slide 16: Improving credit quality
Improving credit quality. Credit quality of Wisr’s loan book remains strong. 9 0 + DAY A R R E A R S LOAN ARREARS 4.00% Arrears remained low. In line with APRA’s regulatory 3.50% approach and Wisr COVID-19 arrears policy, loans deferred as part of our COVID-19 support packages 3.00% are not included
Slide 17: Low funding costs with significant runway
Low funding costs with significant runway. Dual funding model in response to COVID-19 with majority to Wisr Warehouse. L O A N F U N D I N G C O M M E N TA R Y • $169.4M total loan book at 30 June 2020 $180.0 $4.2M • Dual funding model adopted in response to COVID-19 with majority to the Wisr $160.0
Slide 18: Cash EBTDA to profit reconciliation
Cash EBTDA to profit reconciliation. Material non-cash items with one-off share based payments and ECL provision FY20 $ • In FY20 the Company made a Cash EBTDA of $(13.2)M and an accounting loss of $(23.5)M, due to significant non-recurring and Cash EBTDA (13,186,443) other non-cash items during the
Slide 19: FY20 preliminary results
3. FY20 preliminary results 19 19
Slide 20: Profit & loss
Profit & loss. • 136% increase in operating income on FY19, driven by 95% growth in loan 30-JUN-20 30-JUN-19 % VARIANCE volume and new funding model in H2FY20 $ $ • Increase in employee benefits and marketing expense to scale the Company REVENUE through growth investment into the Wisr Ecosystem (ref
Slide 21: Expected Credit Loss Provision
Expected ECL Credit Loss Provision. • With consolidation of the Wisr • Expected credit loss provision PROVISION MOVEMENT JUL 2019 - JUN 2020 Warehouse, loans held on balance increase, driven by balance sheet sheet have grown significantly loan book growth 4,500,000 $791,372 3,731,932 $3,975,822 • AA
Slide 22: Balance sheet
Balance sheet. ASSETS Cash and cash equivalents 30-JUN-20 $ 37,973,266 30-JUN-19 $ 11,993,165 • Cash of $38.0M as at 30 June 2020 sees the Company well capitalised Trade and other receivables 1,023,326 440,829 Loan receivables 85,997,500 6,497,353 • Strong growth in loan receivables to $85.9M, as at
Slide 23: Cash flow
Cash flow. CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Net proceeds from sale of loans 30-JUN-20 $ 4,814,906 30-JUN-19 $ 2,009,927 • Net cash used in operating activities of $12.8M has improved in Payments to suppliers and employees (inclusive of GST) (18,256,184) (9,122,201) Q4FY20
Slide 24: Growth & Outlook
4. Growth & Outlook. 24 24
Slide 25: Business evolution
Business evolution. Model proven - now scaling. FY21+ “BREAKTHROUGH YEAR, SET UP FOR GROWTH” FY20 • Continue to aggressively grow market “ P I V O TA L M I L E S T O N E S share of unsecured personal loan ACHIEVED” • Launch secured vehicle product into FY19 • Delivery of Wisr Warehouse, a $33B marke
Slide 26: FY21 Execution priorities
FY21 Execution 1 2 3 CORE LENDING AND REVENUE GROWT H EXPANSION VIA T HE WISR ECOSYST EM OMNI-CHANNEL P RODUCT DIST RIBUT ION priorities 26 26
Slide 27: Core lending products driving strong revenue growth in FY21
Core lending products driving strong revenue growth in FY21. W I S R PR O DUCT UNSECURED PERSONAL LOAN SECURED VEHICLE LOAN FE AT URE S Great low rates based on Borrow between $5,000 Loan terms of 3, 5 No ongoing or early borrowers’ strong credit history and $60,000 and 7 years repayment fees U NI Q
Slide 28: Wisr Ecosystem established, with 239,000 entrants
Wisr Ecosystem established, with 239,000 entrants. Over the past 2 years, Wisr delivered on the preliminary roll-out of the Wisr Ecosystem, introducing over 239,000 Australians as at 30 June 2020. The Wisr Ecosystem includes a number of individually powerful and collectively unique products, aligned
Slide 29: The Wisr Profile
The Wisr Profile. Wisr Ecosystem matures from a channel building phase into a unified experience in FY21 via the Wisr Profile. WISR CUSTOMER PROFILES The Wisr Profile is the gateway into lending, 250,000 credit score and round-up products, and enables the opportunity to build a deep, data-driven und
Slide 30: Omni-channel distribution
Omni-channel distribution. Broker Channel Wisr Ecosystem WISR APP Introducers and channels Aggregators are supported Cultivating strong, WISRCREDIT through our online broker data-driven customer portal, and assisted by a relationships while dedicated team lowering costs DIRECT Strategic Other extern
Slide 31: Building a great place to work
Building a Through FY20, our already market- leading ENPS scores skyrocketed great place as our incredible culture was tested by COVID-19. +94 to work. JUN-20 +78 +76 At Wisr, we don’t just want to lead the industry, we want DEC-19 MAR-20 to be Australia’s #1 place to work. And we’re delivering! Con
Slide 32: Industry recognition for reinventing consumer lending
Industry recognition for reinventing consumer lending. 32 32
Slide 33: Summary
Summary. Delivering significant growth across key metrics in FY20; 136% revenue growth, 95% loan origination A HIGH-GROWTH COMPANY growth and 389% Wisr Ecosystem growth SIGNIFICANT MARKET Opportunity to take considerable market share in current products over coming years, and launch OPPORTUNITY more
Slide 34: Appendix
5. Appendix. 34 34
Slide 35: Significantly improved unit economics
Significantly improved unit economics. Illustrative customer value and revenue model. MARGIN c. 18% MARGIN c. 57% $12,000 NEW MODEL ASSUMPTIONS (EXAMPLE) $10,000 • Total loan revenue: $10.2K OLD WISR REVENUE • Loan size: $30,000 $8,000 • Tenor: 60 months $6,000 NEW WISR REVENUE • Gross yield: 12.5%
Slide 36: Industry contribution
Industry contribution. New regulation is supporting profitable Wisr growth. BEST INTEREST DUTY FOR BROKER OPEN BANKING COMPREHENSIVE CREDIT WISRCREDIT We don’t expect any material impact to Wisr’s Wisr will fully embrace open banking and REPORTING (CCR) Wisr is doing its part to raise financial lite
Slide 37: Disclaimer
Disclaimer. NO INVESTMENT ADVICE OR OFFER OF SHARES or guarantee as to the accuracy or likelihood of fulfillment of any forward- This presentation does not constitute investment advice, or an inducement looking statement in this presentation or assumption upon which any part of or recommendation to