Plenti Group Ltd. · ASX:PLT
Plenti — Investor Presentation (November 2020)
33 slides from Plenti's investor presentation, Nov 18, 2020
Slide 1: Investor presentation
18 NOVEMBER 2020 Investor presentation Results for the six months ended 30 September 2020 (H1 FY21)
Slide 2: Contents
Contents 1. Results highlights 2. Plenti business recap 3. H1 FY21 results A. Business update B. Financial results 4. Trading and outlook 5. Appendices 2
Slide 3: Results highlights
Results highlights Plenti
Slide 4: Results highlights: Delivering ahead of plan
#1 – RESULTS HIGHLIGHTS Results highlights Delivering ahead of plan Originations $167.0m Loan portfolio $435m Revenue $26.0m +33% on pcp +42% on pcp +41% on pcp +6% above prospectus +$9m above prospectus +2% above prospectus Pro forma NLAT $(3.4)m Industry-leading credit Increased funding >50% impro
Slide 5: Plenti business recap
Plenti business recap Plenti
Slide 6: Plenti
#2 – BUSINESS RECAP Plenti ~$390m Loan book Building Australia’s leading consumer lender by helping customers achieve more with their money Our strengths Our ambitions Proprietary, end-to-end technology provides a sustainable competitive advantage Empower customers to make the most and supports grow
Slide 7: A high-growth fintech pioneer
#2 – BUSINESS RECAP A high-growth fintech pioneer Track record of strong, consistent growth Cumulative lending ($m) Loan portfolio ($m) 941 435 $1bn 61% 381 Lending milestone 774 3-year CAGR surpassed 17-Nov-20 306 612 253 487 206 375 148 257 104 168 72 106 47 63 26 32 10 2 12 2 H2 H1 H2 H1 H2 H1 H2
Slide 8: An award-winning business
#2 – BUSINESS RECAP An award-winning business Consistently recognised for providing outstanding products and service Outstanding value personal loan (2015 – Outstanding value car loan (new and Expert’s choice personal loan Gold award – 2020) used, 2019 – 2020) (2017-2019) personal loans (2020) Winne
Slide 9: Lending to prime borrowers
#2 – BUSINESS RECAP Lending to prime borrowers Prime loan portfolio drives industry-leading loss rates Average credit score on loan portfolio Net charge-off rate2 850 4.0% 3.5% 800 3.0% 750 2.5% 2.0% 700 Indicative Big Four and 1.5% prime Fintech lenders1 1.0% 650 0.5% 600 - H1 H2 H1 H2 H1 H2 H1 FY1
Slide 10: Disrupting large markets
#2 – BUSINESS RECAP Disrupting large markets Building scale across substantial lending verticals undergoing significant change Automotive Renewable energy Personal $33bn+ >280k Multi $bn Households Government $12bn+ Annual lending1 installing solar programs Annual lending3 annually2 supporting uptak
Slide 11: H1 FY21 results
H1 FY21 results Plenti
Slide 12: Automotive lending growth
#3 – BUSINESS UPDATE Automotive lending growth Loan originations ($m) Exceptional growth reflects Plenti’s leading product 323% offering on pcp H1 highlights 81.1 • Delivered four record months of loan originations • Achieved significant penetration of specialist car finance broker 38.4 market 19.2
Slide 13: Renewable energy lending growth
#3 – BUSINESS UPDATE Renewable energy lending growth Loan originations ($m) Strong growth, despite impacts of Victorian lockdown 47% on pcp 28.5 H1 highlights 23.6 19.4 • Strong demand during COVID-19 driven in part by broader home improvement consumer trend • Onboarded 85 new referral partners, a 1
Slide 14: Personal lending growth
#3 – BUSINESS UPDATE Personal lending growth Loan originations ($m) Rapid recovery from deliberate, responsible pull-back Phased re- COVID-19 during peak COVID-19 period pullback entry +81% on Q1 H1 highlights 49.4 37.2 37.0 • Phased market re-entry after deliberate pull-back (driven by tightening o
Slide 15: Excellent credit performance
#3 – BUSINESS UPDATE Excellent credit performance Maintaining industry-leading performance across key metrics 90+ day arrears 1.0% 0.8% • Low 90+ day arrears, tracking in line with historic range 0.6% 0.4% • COVID-19 loan deferrals amongst 0.2% lowest in industry – both at peak and at half-year end
Slide 16: Funding platforms
#3 – BUSINESS UPDATE Funding platforms Deepening funding capacity and lowering cost of funds Plenti Wholesale Warehouse funding Plenti Lending Platform Lending Platform • Automotive warehouse • ~2,200 new investor registrations • $58m of loans outstanding as at — $189m head room as at Sept-201 over
Slide 17: Technology deployed
#3 – BUSINESS UPDATE Technology deployed Extending our competitive advantage The Plenti app – example of H1 development App overview • Investor focused app launched in Oct 2020, facilitating full investor services • >3,900 downloads to date • Increased investor engagement – sessions up >50%, with av
Slide 18: H1 FY21 result
#3 – FINANCIAL RESULTS H1 FY21 result Strong revenue growth and low credit losses see improving profitability – ahead of prospectus forecast on all key lines $m H1 FY20 H1 FY21 % change vs Prospectus Loan originations 125.2 167.0 33% p Loan portfolio (period end) 306.0 435.1 42% p Loan portfolio (av
Slide 19: Profit & loss
#3 – FINANCIAL RESULTS Profit & loss ($m, 6 months to September, pro forma1) H1 FY20 H1 FY21 % change • 31% revenue growth driven by loan Interest revenue 18.3 23.9 31% origination and portfolio growth Other income 0.1 2.1 >100% • Other income primarily relates to $1.5m Total revenue pre transaction
Slide 20: Cash flow
#3 – FINANCIAL RESULTS Cash flow ($m) H1 FY20 H1 FY21 • Reported positive net operating cash flow in Operating cash flow H1 FY21 supported by growing revenues Interest income received 17.9 24.2 • Period also benefitted from a number of Other income received 0.1 2.1 other factors Interest and other f
Slide 21: Balance sheet
#3 – FINANCIAL RESULTS Balance sheet ($m) 30-Sept-20 • Strong cash position post IPO – $66.4m Assets corporate and Provision Fund cash, $27.4m on trust for lenders Cash and cash equivalents 93.7 Customer loans 414.4 • Customer loan position of $414.4m net of Trade receivables 0.3 $10.8m ECL provisio
Slide 22: Trading and outlook
Trading and outlook Plenti
Slide 23: Trading – post period
#4 – TRADING AND OUTLOOK Trading – post period Strong momentum through October and November • October loan originations of $37.2m — 4th consecutive month of record loan originations Lending — Robust origination performance across all lending verticals volumes • November loans originations tracking w
Slide 24: Lending vertical outlook and H2 priorities
#4 – TRADING AND OUTLOOK Lending vertical outlook and H2 priorities External environment and company initiatives set to drive continued growth Automotive Renewable energy Personal Outlook Outlook Outlook • Opportunity to maintain strong • Clarity on industry code of conduct • Strengthening economy a
Slide 25: Positioned to excel
#4 – TRADING AND OUTLOOK Positioned to excel Technology-led, scalable High growth, in large Prime credit focus business model markets Borrower acquisition and Attractive loan economics, Experienced, founder-led funding diversity with operating leverage management team evident 25
Slide 26: Appendices
Appendices Plenti
Slide 27: Strategic foundations
#5 – APPENDICES Strategic foundations Technology as a core differentiator, powering growth Borrower experience Multi-channel distribution • Fast, simple, competitive loans • Efficient scaling of loan originations via • Seamless, digital-first application — Direct customer acquisition experiences acr
Slide 28: Lending products
#5 – APPENDICES Lending products Efficient, simple and competitive loans across three lending verticals Automotive Renewable energy Personal1 Loan amount $10,000 – $100,000 $2,001 – $80,000 $2,001 – $45,000 Purpose Purchase of new and used Installation and purchase of solar Debt consolidation, home
Slide 29: Key operating and financial metrics
#5 – APPENDICES Key operating and financial metrics H1 FY20 H2 FY20 H1 FY21 Loan originations ($m) 125.2 161.3 167.0 Average term of new originations (months) 53.7 55.9 62.5 Closing loan portfolio ($m) 306.0 380.9 435.1 Average loan portfolio ($m) 274.9 346.8 393.5 Average borrowings ($m) 269.8 341.
Slide 30: Key product level metrics
#5 – APPENDICES Key product level metrics H1 FY20 H2 FY20 H1 FY21 Loan originations ($m) 125.2 161.3 167.0 Automotive 19.2 38.4 81.1 Renewable energy 19.4 23.6 28.5 Personal 86.6 99.3 57.5 Closing loan portfolio ($m) 306.0 380.9 435.1 Automotive 55.7 83.4 146.0 Renewable energy 38.2 54.6 71.2 Person
Slide 31: P&L reconciliation: pro forma to statutory
#5 – APPENDICES P&L reconciliation: pro forma to statutory H1 FY21 Convertible 2 Share-based H1 FY21 ($m, 6 months to September) 1 JobKeeper IPO costs3 Other5 Pro forma notes payments4 Statutory Interest revenue 23.9 - - - - - 23.9 Other income 2.1 - - - - - 2.1 Total revenue pre transaction costs 2
Slide 32: P&L reconciliation: NLAT to cash NLAT
#5 – APPENDICES P&L reconciliation: NLAT to cash NLAT ($m, 6 months to September) H1 FY20 H1 FY21 NLAT (pro forma) (7.9) (3.4) Add: Movement in provision for expected losses 0.5 1.0 Add: Share-based payments 0.2 0.6 Add: Depreciation & amortisation 0.3 0.4 Cash NLAT (pro forma) (6.9) (1.5) 32
Slide 33: Disclaimer and important notices
Disclaimer and important notices No recommendation, offer, invitation or advice Non-IFRS financial measures The material in this presentation is general background information about Plenti Group Recipients of this presentation should also be aware that certain financial information Limited (the Comp