Pepper Money Ltd · ASX:PPM
Pepper Money — Macquarie Australia Conference 2022
28 slides from Pepper Money's conference presentation, May 2, 2022
Slide 1: ASX Announcement: Macquarie Australia Conference presentation
ASX Announcement 2 May 2022 For personal use only Pepper Money (ASX:PPM) Pepper Money Limited - Macquarie Australia Conference Attached is the presentation to be given at the Macquarie Australian Conference on 3 May 2022. The annoucement has been authorised for release by the Company Secretary. For
Slide 2: Investor Presentation, Macquarie Conference
For personal use only Pepper Money Limited Investor Presentation Macquarie Conference 3 M AY 2 0 2 2 Copyright 2022 Pepper Money Limited. Confidential.
Slide 3: Mario Rehayem, Chief Executive Officer
P E P P E R M O N E Y L I M I T E D For personal use only Mario joined Pepper Money in 2011 and has held various roles including Managing Director, Australian Mortgages and Personal Loans, Director of Sales and Distribution, Australian Mortgages and Personal Loans. Mario was appointed Chief Executiv
Slide 4: One of Australia's leading non-bank lenders
A B O U T P E P P E R M O N E Y One of Australia’s leading non-bank lenders with a mission to help people succeed. For personal use only A leader in non-bank Strong growth record 21+ years of purpose- Digitally-enabled finance with an and underlying built historical data distribution tools, establis
Slide 5: Who is Pepper Money?
A B O U T P E P P E R M O N E Y Who is Pepper Money? For personal use only In 2000 A$41bn A$17bn 288,900+ 6,780+ Pepper Money launched Loans originated since December 2021 Customer accounts3 Active Distribution as a specialist mortgage inception1 Closing AUM2 Partners⁴ lender in Australia Pepper Mon
Slide 6: Mission and core competencies
A B O U T P E P P E R M O N E Y Pepper Money’s mission is to Pepper Money’s core help people succeed competencies For personal use only UNDERSERVED CREDIT CUSTOMER EXPERTISE SEGMENTS 21+ years 6 in 10 Underwriting eligible non- history conforming borrowers did not get a loan¹ Comprehensive Product p
Slide 7: CY2021 Highlights
A B O U T P E P P E R M O N E Y CY2021 Highlights LISTED 25 MAY 2021 Record results Record NPAT Funding – supporting growth For personal use only Pepper Money is one of AUM Pro-forma Funding capacity Australia and New Zealand’s largest non-bank lenders and $17.0bn $141.9m $9.9bn Investing in our mis
Slide 8: Customer Solutions – Mortgages
W H AT S E T S P E P P E R A P A R T Customer Solutions – Mortgages For personal use only Average time to solution 6.8 hours¹ 1 2 3 Overview of Distribution Customer Journey Single Application Product Selection Customer Solution Channels² single application, multiple solutions Prime RETAIL Mortgage
Slide 9: Customer Solutions – Asset Finance
W H AT S E T S P E P P E R A P A R T Customer Solutions – Asset Finance Overview of Distribution Channels¹ Automated approval within seconds For personal use only 1 2 3 AUTO BROKER Customer Journey Application from any device Approval Process Customer Solution Brokers who provide an online finance s
Slide 10: Technology delivering scale and efficiency
W H AT S E T S P E P P E R A P A R T Core Productivity¹ +70% Technology delivering scale & efficiency For personal use only MORTGAGES OPERATIONS Pepper Sage – Underwriting Pepper Apollo – service task automation Automation of simple AVM providing instant valuation 47% application² solicitor Desktop
Slide 11: Complex done simply: technology delivering broker and customer confidence
W H AT S E T S P E P P E R A P A R T Complex done simply… Technology delivering broker and customer confidence For personal use only Mortgages – time to approve Asset Finance – time to approve Mortgage First response: Approval rate: Applications 6.8 hrs¹ 80% in principle Approval rate First Response
Slide 12: Outperformed CY2021 forecast; proven track record
P E P P E R M O N E Y Outperformed CY2021… have always managed through the cycle For personal use only Pro-forma NPAT Delivered record Grew market Double digit Strong Asset Productivity Funding $141.9m originations share growth quality gains capacity 34% on PCP $8.5bn • Mortgage 2.6x Total AUM Loan
Slide 13: Quarter 1 CY2022 highlights
P E P P E R M O N E Y Quarter 1 C U S T O M E R CY2022 For personal use only Originations of $2.6bn Lending AUM of $16.8bn Near Prime Clear: launched Up 60% on PCP¹ Up 24% on PCP Fixed rate: launching Q2 BUSINESS EASY TO DO BUSINESS WITH Mortgages Asset Finance Customer Operations Automated and Elec
Slide 14: Acquisition of Stratton Finance
P E P P E R M O N E Y Opportunity Summary Acquisition of Stratton Finance For personal use only DIRECT TO PRODUCT & CONSUMER I N N O VAT I O N • Stratton gives Pepper Money • Increase insights into what customers the insights of D2C in scale want and need in asset finance • Stratton’s 1.3m+ contact
Slide 15: CY2022 Outlook
P E P P E R M O N E Y CY2022 Outlook For personal use only STRONG FINISH TO 2021 SET US UP FOR 2022 AND BEYOND Applications pipeline Distribution Applications pipeline Q1 Annualised growth from CY2020/21 Q4 vs PCP up • Increased number of active CY2022 vs PCP initiatives • Mortgages +59% brokers up
Slide 16: Questions & Answers
For personal use only Questions & Answers 15 Copyright 2022 Pepper Money Limited. Confidential.
Slide 17: Appendices
For personal use only Appendices 16 Copyright 2022 Pepper Money Limited. Confidential.
Slide 18: Large addressable market
A D D R E S S A B L E M A R K E T Large addressable market For personal use only December 2021 MORTGAGES ASSET FINANCE • Markets grew over $2,322bn $185bn Total Addressable CY2021 Market (AUM) ¹ • Pepper Money 88% Conforming Consumer: $59bn⁴ grew share in Asset 12%2 Non-Conforming Commercial: $126bn
Slide 19: Australia's non-bank lending sector
A D D R E S S A B L E M A R K E T Australia’s non-bank lending sector Over 600 non-bank lenders and For personal use only PEPPER MONEY SOLUTIONS financiers operate in the Australian Pepper Money provides flexible financial solutions across property, market providing a range of asset finance and pers
Slide 20: CY2021 Business Performance
P E P P E R M O N E Y CY2021 Pro-forma NPAT $141.9m, CY2021 Business Performance +34% above PCP For personal use only Helping customers Efficient and scalable Engaged and Brand strength succeed business growth empowered and security 59,780 customer helped of which Complex done simply… people self em
Slide 21: CY2021 Financial performance (Pro-forma)
P E P P E R M O N E Y CY2021 Financial performance (Pro-forma) Calendar year to December For personal use only VOLUME INCOME EXPENSES / FTE PROFIT Originations ($bn) Net Interest¹ ($m) Operating Expenses ($m) EBITDA ($m) 3.24% 3.41% 55.8% 2.79% 44.6% 43.3% +84% 8.5 2.66% 2.56% 50.0% +28% 2.25% 2.53%
Slide 22: Pro-forma income statement
P E P P E R M O N E Y Calendar Year Pro-forma $M 2021 2020 Change B/(W) Income statement Interest income 690.3 705.9 (2.2%) For personal use only Interest expense (323.7) (353.7) 8.5% Calendar year to December Net interest income from continuing operations 366.6 352.2 4.1% Net lending fees 12.7 6.5
Slide 23: Pro-forma metrics: volume, income, profitability
P E P P E R M O N E Y Calendar Year Pro-forma $M 2021 2020 Change B/(W) Metrics Volume 6,403 3,383 89.3% For personal use only Originations - Mortgages Calendar year to December Originations - Asset Finance 2,069 1,218 69.8% Total Originations 8,472 4,601 84.1% AUM lending - Mortgages 12,272 10,663
Slide 24: Balance Sheet
P E P P E R M O N E Y Balance as at Dec 2021 Dec 2020 $M $M Balance Sheet Assets Cash and cash equivalents 1,309.2 885.5 Statutory Receivables 9.4 5.4 For personal use only Loans and advances 15,819.8 13,310.8 Derivative financial assets 23.7 1.1 K E Y M O V E M E N T S Other financial assets 23.0 1
Slide 25: Q1 CY2022 volume growth: applications, originations, AUM
P E P P E R M O N E Y Pepper Money has continued to deliver Quarter 1 CY2022 Volume strong growth over Q1 CY2022 For personal use only T O TAL L E N D I N G Applications¹ ² ($bn) Originations² ($bn) AUM² ($bn) Q1 Q1 Q1 1.2 18.0 1.8 $16.8bn $4.3bn 1.6 1.0 $2.6bn 16.0 1.4 $3.2bn 0.8 $13.6bn 1.2 14.0 $
Slide 26: Experienced Executive
P E P P E R M O N E Y Experienced Executive Pepper Money has a dedicated, focused executive team with the experience and proven track record, For personal use only both at Pepper Money and externally, to continue to grow and drive the business Mario Rehayem Chief Executive Officer Industry Years | P
Slide 27: Disclaimer
Disclaimer For personal use only Summary information Certain figures, amounts, percentages, estimates, calculations of value and fractions provided in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures This Presen
Slide 28: Investor Relations
For personal use only Investor Relations Reunion Capital Gordon Livingstone M +61 (0) 417 695 138 E glivingstone@reunioncapital.com.au For more information visit Media Relations www.pepper.com.au Domestique Consulting Helen Karlis M +61 (0) 419 593 348/ E helen@domestiqueconsulting.com.au Celia Moor