Wisr Ltd. · ASX:WZR
Wisr — Investor Presentation (October 2020)
25 slides from Wisr's investor presentation, Oct 20, 2020
Slide 1: Q1FY21 Interim Update
Q1FY21 Interim Update. GOLDMAN SACHS OCTOBER • 2020
Slide 2: Table of contents
Table of contents. 1 V I S I O N , O P P O RT U N I T Y A N D K E Y N U M B E R S 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 GROWTH AND OUTLOOK 1 1
Slide 3: 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 tech opportunities ahead wellness to all Australians profitable operational outcome platform backed by great customer
Slide 4: Strong revenue growth
Strong revenue growth. Key turning point reached1. • 37% revenue growth in Q1FY21 vs Q4FY20 • 358% revenue growth in Q1FY21 vs Q1FY20 • 136% revenue growth in FY20 vs FY19 • Strong revenue growth with Wisr Warehouse funding model now in effect • Wisr is set up for significant scaling and revenue gro
Slide 5: Core profitability & investing for growth
Core profitability & investing for growth. FY20 P&L Waterfall. Core business cash flow profitability achieved in H2FY20, as loan volume and revenue scales under the new funding model, while delivering operational leverage R EVENU E Strong revenue growth achieved and well positioned for further growt
Slide 6: Key numbers
Key numbers. Delivering on milestones, keeping promises. REVENUE GROWTH LOAN ORIGINATIONS WISR ECOSYSTEM BEST IN-CLASS NET UP 358% UP 132% UP 193% PROMOTER SCORES 500%+ INCREASE IN 90+ DAY ARREARS CONSISTENT QOQ WELL CAPITALISED LIFETIME REVENUE DOWN 0.43% GROWTH TREND $3 2 .1 M C A SH A T 3 0 SEP 2
Slide 7: Business Update and Financial Performance
Business Update and Financial Performance. 6
Slide 8: Prime quality customer base
Prime quality customer base. Attracting Australia’s most desirable creditworthy customers. $86,686 714 + 75 A VER A GE I NC OM E A VER A GE C U S T OM ER C U ST OMER NET C R ED I T SC OR E PR OM OT ER SC OR E The customer service is efficient and friendly, and in many ways a 100 times better than th
Slide 9: Consistent growth of high-quality loan book
Consistent growth of high-quality loan book. Loan originations ($M). Loan book ($M). 8
Slide 10: Improving credit quality
Improving credit quality. Credit quality of Wisr’s loan book remains strong. LOAN ARREARS 90+ DAY ARREARS Arrears remained low. In line with APRA’s regulatory approach and Wisr COVID-19 arrears policy, loans deferred as part of our COVID-19 support packages are not included in arrears, where the loa
Slide 11: COVID-19 Impact
COVID-19 Impact. Shift to full-digital services and products benefits Wisr. Total loan originations reached COVID-19 has brought unprecedented macroeconomic change for Australia. Our purpose-led, fully digital $306.7M in Q1FY21 and agile fintech business-model ensured we could rapidly respond to COV
Slide 12: COVID-19 Impact: Rapid response delivers low exposure
COVID-19 Impact. Rapid response delivers low exposure. • As at 30 June 2020, $10.3M or 6.12% of total portfolio loan balances PORTFOLIO BALANCES UNDER ASSISTANCE were on COVID-19 specific payment assistance, this approximately halved to this approximately halved to $5.6m (3.09%) by 31 July 2020 and
Slide 13: COVID-19 Impact: Back to pre-COVID-19 hardship levels
COVID-19 Impact. Company back to pre-COVID-19 hardship levels. • 90% 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 assistance period and 89% of these have either been remedied or resumed regular
Slide 14: 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. LOAN FUNDING COMMENTARY • $212.1M total loan book at 30 Sep 2020 • Dual funding model adopted in response to COVID-19 with majority to the Wisr Warehouse • The off-balance sheet fac
Slide 15: Growth and Outlook
Growth and Outlook. 14
Slide 16: Business evolution
Business evolution. FY20 Model proven - now scaling. “BREAKTHROUGH YEAR, SET UP FOR GROWTH” • Continue to aggressively grow market FY20 share of unsecured personal loan • Launch secured vehicle product into “PIVOTAL MILESTONES $33B market opportunity ACHIEVED” FY19 • Delivery of Wisr Warehouse, a •
Slide 17: FY21 Execution priorities
FY21 Execution 1 CORE LENDING AND REVENUE GROWTH priorities 2 E X PA N S I O N V I A T H E W I S R E C O S Y S T E M 3 OMNI-CHANNEL PRODUCT DISTRIBUTION 16 16
Slide 18: Core lending products driving strong revenue growth in FY21
Core lending products driving strong revenue growth in FY21. WISR PRODUCT UNSECURED PERSONAL LOAN SECURED VEHICLE LOAN FEATURES • Great low rates based on • Borrow between $5,000 • Loan terms of 3, 5 and 7 • No ongoing or early borrowers’ strong credit history and $60,000 years repayment fees UNIQUE
Slide 19: Wisr Ecosystem
Wisr Ecosystem. Key differentiator and competitive advantage. Over the past 2 years, Wisr delivered on the preliminary roll-out of the Wisr Ecosystem, introducing over 297,000 Australians as at 30 September 2020. The Wisr Ecosystem includes a number of individually powerful and collectively unique p
Slide 20: The Wisr Profile
The Wisr Profile. Wisr Ecosystem matures from a channel building phase into a unified experience in FY21 via the Wisr Profile. The Wisr Profile is the gateway into lending, credit score WISR CUSTOMER PROFILES and round-up products, and enables the opportunity to build a deep, data-driven understandi
Slide 21: Omni-channel distribution
Omni-channel distribution. Broker Channel Wisr Ecosystem WISR APP channels Introducers and Aggregators are supported through our online Cultivating strong, data-driven broker portal, and assisted by a customer relationships while dedicated team lowering costs WISRCREDIT DIRECT Strategic Other extern
Slide 22: Building a great place to work
Building a Through FY20, our already market-leading ENPS scores skyrocketed as our incredible culture was tested by COVID-19. great place to work. At Wisr, we don’t just want to lead the industry, we want to be Australia’s #1 place to work. And we’re delivering! Constant innovation of our high-perfo
Slide 23: Industry recognition for reinventing consumer lending
Industry recognition for reinventing consumer lending. 22
Slide 24: Summary
Summary. A HIGH-GROWTH COMPANY Delivering significant growth across key metrics in FY20; 358% revenue growth, 132% loan origination growth and 193% Wisr Ecosystem growth SIGNIFICANT MARKET OPPORTUNITY Opportunity to take considerable market share in current products over coming years, and launch mor
Slide 25: Disclaimer
Disclaimer. NO INVESTMENT ADVICE OR OFFER OF SHARES NON-GAAP FINANCIAL MEASURES This presentation does not constitute investment advice, or an inducement or A number of non-GAAP financial measures are used in this presentation. You should not recommendation to acquire or dispose in any shares of Wis