Moneyme Ltd. · ASX:MME
Moneyme — H1 2024 Earnings Presentation
38 slides from Moneyme's earnings presentation, Feb 28, 2024
Slide 1: 1H24 Results Investor Presentation
1H24 Results Investor presentation 28 February 2024 moneyme.com.au Copyright 2024 | MoneyMe Limited | ACN 636 747 414
Slide 2: MONEYME is challenging the traditional ways of credit with cutting-edge innovation
MONEYME is challenging the traditional ways of credit with cutting-edge innovation A non-bank challenger MONEYME is a founder-led digital lender and Certified B Corporation . We challenge the traditional ways of credit and simplify the borrowing experience with digital-first experiences that meet th
Slide 3: Agenda
02 1H24 Highlights 05 Operational Highlights 13 Financial Highlights 21 Strategy & Outlook 26 Additional Information Page 2 | MONEYME
Slide 4: 1H24 key highlights
1H24 key highlights Sustainable returns from a robust loan book Executed on key strategies • Extended technology advantage through refinements of core products and began development of generative AI applications Statutory NPAT Gross loan book Originations • Increased secured assets proportion of
Slide 5: Strategy calibrated to the macroeconomic environment
Strategy calibrated to the macroeconomic environment Macroeconomic environment MONEYME’s adaptation Rising interest rates Price flexibility Interest margins protected by leveraging our largely variable increasing capital costs rate products Credit quality & return focus Consumer cost of living pres
Slide 6: Operational Highlights
02 1H24 Highlights 05 Operational Highlights 13 Financial Highlights 21 Strategy & Outlook 26 Additional Information Page 5 | MONEYME
Slide 7: Operational highlights
Operational highlights Operationally set up for the current challenging environment and well-positioned for future growth Strong customer Elevating credit quality Technology-led innovation engagement • Improved credit profile with average Equifax • Continued development of generative AI to drive • M
Slide 8: Elevating credit quality
ELEVATING CREDIT QUALITY The ongoing uplift in Total portfolio average Equifax score increased to 741 (1H24) from 727 (2H23) Front book1 average Equifax score increased to 780 (1H24) from 775 (2H23) the customer credit Average Equifax score 900 and above Average Equifax score 900 and above profile w
Slide 9: Strong customer diversification continues to reduce risk and promote resilience
ELEVATING CREDIT QUALITY Strong customer Well-distributed geographical spread Median customer age is 35 diversification Other Age 18 - 25 10% continues to reduce 10% NSW 31% WA Age 36 + risk and promote 9% 56% VIC QLD 26% Age 26 - 35 resilience 24% 34% 11% or less concentration in each Strong long t
Slide 10: Customer experiences enhanced through new innovations
TECHNOLOGY-LED INNOVATION Customer experiences Increased automation of customer onboarding enhanced through new Further digitised application journeys and increased automation of Optical Character Recognition (OCR) technology to facilitate efficient invoice scanning and data processing. innovations
Slide 11: Innovation driving strong customer satisfaction despite interest rate rises
STRONG CUSTOMER ENGAGEMENT Innovation driving strong customer satisfaction despite interest rate rises 0 Net Promoter 75% 2023 -100 +100 Score (NPS) 68 NPS 2022 Calls answered within 10 seconds +68 34% 2021 2020 Customers with 2 or more products 4.6/5 24/7 2019 2018 Near real-time settlements 1.4/5
Slide 12: Achieving high sustainability standards
B CORP CERTIFIED Achieving high sustainability standards 91.2 82% 93% Certified B Impact of employees believe of our customers say they Assessment (BIA) score MONEYME’s commitment care about the sustainability compared to 50.9 for to social and environmental performance of lenders2 ordinary business
Slide 13: Variable rates enable pricing flexibility
EFFECTIVE INTEREST RATE MANAGEMENT Variable rates enable Net interest margin1 (%) reflects an increase in cost of funds and risk-adjusted yield from higher credit quality assets offset by customer pricing increases pricing flexibility 12% 10% Cost of funds Customer • MONEYME has a predominantly vari
Slide 14: Financial Highlights
02 1H24 Highlights 05 Operational Highlights 13 Financial Highlights 21 Strategy & Outlook 26 Additional Information Page 13 | MONEYME
Slide 15: Financial highlights
Financial highlights Strong fundamentals continue to deliver strong results Statutory NPAT ($m) Gross loan book ($m) Originations ($m) 1,237 277 9 ↑77% ~0% 1,150 1,150 ↑23% 242 224 2H23 to 1H24 2H23 to 1H24 2H23 to 1H24 6 3 1H23 2H23 1H24 1H23 2H23 1H24 1H23 2H23 1H24 Net credit losses (%)1 Average
Slide 16: Statutory profit
STATUTORY PROFIT $6m statutory NPAT Statutory NPAT ($m) Closing gross customer receivables ($m) achieved in 1H24 ↑77% 9 ~0% 1,237 1,150 1,150 reflects effective cost 2H23 to 1H24 2H23 to 1H24 6 management and the 3 shift to a higher credit 1H23 2H23 1H24 1H23 2H23 1H24 quality loan book Net revenue1
Slide 17: Gross revenue
GROSS REVENUE The slight revenue Gross revenue ($m) ~39% gross revenue contribution from secured assets in 1H24 reduction reflects the ↓9% Secured Unsecured move to a much higher Gross revenue 2H23 to 1H24 $42m revenue from secured assets in 1H24 credit quality loan 121 118 book with a lower risk 10
Slide 18: Gross customer receivables
GROSS CUSTOMER RECEIVABLES Growth in originations Principal originations ($m) Closing gross customer receivables ($m) has increased the ↑23% ~0% 1,237 1,150 1,150 credit quality and 2H23 to 1H24 2H23 to 1H24 Secured secured asset mix Unsecured 277 242 1H23 2H23 1H24 224 57 121 72 Average gross custo
Slide 19: Operating costs
OPERATING COSTS Despite the increasing Operating costs ($m) Operating costs to income (%)1 cost environment, ↑5% 50 2,000 ↑15% operating costs 2H23 to 1H24 2H23 to 1H24 45 2,000 remained broadly in line 40 2,000 with 2H23, reflecting 35 1,999 23% 23% our low-cost operating 28 30 20% 25 25 24 1,999 m
Slide 20: Lower expected credit losses
CREDIT PERFORMANCE Lower expected credit Provision as % of loan book Average Equifax score losses Average Equifax score ↓12% Portfolio % with 130% Equifax score ≥ 600 6.6% 741 750 727 120% 2H23 to 1H24 6.1% 714 The provision decreased reflecting: 5.8% 700 110% 100% 650 86% • Increased secured asse
Slide 21: Funding & liquidity
FUNDING & LIQUIDITY The business has a 1H24 closing funding mix (%) Based on total drawn balance for borrowings1 mature and diversified funding program, enabling scale and Corporate debt 5% stability Warehouse and other trust facilities Refining our funding Term 1H24 78% program remains a securitisa
Slide 22: Strategy & Outlook
02 1H24 Highlights 05 Operational Highlights 13 Financial Highlights 21 Strategy & Outlook 26 Additional Information Page 21 | MONEYME
Slide 23: Core products target massive market opportunities
STRATEGY & OUTLOOK Core products target massive market opportunities Size of the prize Where the opportunity is? Why the market opportunity exists? Auto Major Banks $54b <1% • Incumbents focus on mortgages market (balance outstanding)1 MME segment share and business; less focus on consumer • Bank ex
Slide 24: Positive statutory and cash NPAT for FY24
STRATEGY & OUTLOOK Positive statutory and cash Steady growth FY19 to FY20 High growth FY21 to FY22 Consolidation FY23 Sustainable growth FY24+ NPAT for FY24 1,345 1,150 1,150 Our strategy and key areas of focus Gross customer 87 134 333 receivables FY19 FY20 FY21 FY22 FY23 1H24 FY24(F) 1 onwards Ext
Slide 25: Questions & Answers
MONEYME Questions & Answers
Slide 26: Thank you!
Thank you! On behalf of all at MONEYME
Slide 27: Additional Information
02 1H24 Highlights 05 Operational Highlights 13 Financial Highlights 21 Strategy & Outlook 26 Additional Information Page 26 | MONEYME
Slide 28: MONEYME Board of Directors
MONEYME Board of Directors Peter Coad Clayton Howes Independent Non-Executive Chair Managing Director & Chief Executive Officer Joined the Board in October 2019 as Board Chair Co-founder and CEO since inception The Board of Directors includes founders and leaders with significant Rachel Gatehouse Sc
Slide 29: Key operating measures
Key operating measures FY21 FY22 FY23 Definition1 1H23 2H23 1H24 Returns (8) (50) 12 Statutory NPAT ($m) Per Financial Report 9 3 6 12 20 24 Cash NPAT ($m) 1 11 13 5 58 143 239 Gross revenue ($m) Per Financial Report 121 118 108 20% 12% 12% Net interest margin (%) 2 12% 12% 10% 46% 40% 22% Operating
Slide 30: Measure definitions
Measure definitions Note Measure Definition Statutory net profit after tax (NPAT) adjusted to remove non-recurring expenses, the impact of derivative fair value movements, and an adjustment to use actual losses (gross charge offs) rather than the 1 Cash NPAT ($m) AASB 9 based impairment expense 2 Ne
Slide 31: Income statement
Income statement FY21 FY22 FY23 $ million 1H23 2H23 1H24 53 128 230 Interest income 119 111 104 5 15 9 Other income 2 7 4 58 143 239 Gross revenue 121 118 108 (0) (2) (6) Commission expense (2) (4) (5) 58 141 233 Net revenue 119 114 103 (11) (38) (90) Interest expense (42) (48) (50) (27) (57) (52) O
Slide 32: Statutory NPAT to Cash NPAT reconciliation
Statutory NPAT to Cash NPAT reconciliation FY21 FY22 FY23 $ million 1H23 2H23 1H24 (8) (50) 12 Statutory net profit/(loss) after tax 9 3 6 29 103 97 AASB 9 impairment expense adjustment 46 51 27 (11) (45) (91) Gross losses adjustment (48) (44) (34) - (6) 3 Derivative fair value gain/(loss) related 0
Slide 33: Balance sheet
Balance sheet FY21 FY22 FY23 $ million 1H23 2H23 1H24 26 81 92 Cash and cash equivalents 79 92 72 306 1,264 1,074 Net customer receivables 1,161 1,074 1,084 0 0 - Current tax asset - - - - 10 8 Derivative financial instruments 10 8 3 1 10 14 Other receivables 10 14 15 6 3 3 Deferred tax asset 3 3 3
Slide 34: Cash flow statement
Cash flow statement FY21 FY22 FY23 $ million 1H23 2H23 1H24 (222) (709) 118 Net customer receivable inflows / (outflows) 75 43 (16) 66 116 204 Income from customers 101 103 92 (9) (29) (83) Borrowings interest and fees paid (38) (46) (38) - 14 31 Income from delinquent asset sales and recoveries 11
Slide 35: MONEYME's core products
MONEYME’s core products1 Autopay Personal Loan Freestyle Offer range Up to $100,000 $5,000 - $70,000 Credit limit up to $20,000 Offer term 3 - 7 years 3 - 7 years Repayment over 2 - 5 months Interest-free period N/A N/A Up to 55 days interest-free on online and in-store purchases using Freestyle Mas
Slide 36: From start-up to scale-up with market-disrupting technology and innovation
From start-up to scale-up with market-disrupting technology and innovation • Transitioned high growth business to profit delivery • Innovation-first full automation • Completed acquisition with AI delivering secured of SocietyOne in March asset finance 2022 • IPO on ASX (December 2019) • 430,000+ cu
Slide 37: Important notices & disclaimers
Important notices & disclaimers The information contained in this presentation has been prepared by MoneyMe Limited (MONEYME or Company) in connection with MONEYME’s and maintenance. A number of the Company’s products and possible future products contain or will contain open-source software, and the
Slide 38: moneyme.com.au
moneyme.com.au Copyright 2024 | MoneyMe Limited | ACN 636 747 414