Raiz Invest Ltd. · ASX:RZI
Raiz Invest — FY2023 Earnings Presentation
22 slides from Raiz Invest's earnings presentation, Aug 28, 2023
Slide 1: FY 2023 Results Presentation
FY 2023 Results Presentation 28 August 2023 Australia’s leading WealthTech delivering in all economic cycles Level 11, 2 Bulletin Place, Sydney NSW 2000 Announcement authorised by the Board of Directors
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Raiz Invest Limited (ACN 615 510 177) (RAIZ). References in this presentation to RAIZ include its group of companies and trusts. This presentation is subject to the conditions outlined below. Your receipt or viewing of the Presen
Slide 3: FY23 Results overview
01 FY23 Results overview
Slide 4: Group results highlights
Group results highlights Achieved significant cost reductions for ongoing growth and path to profitability FY2023 Financial Summary 685k A$1.15b 83% Reduction in operating cash burn in H2FY23 Global Customers Global FUM Improved Group 96% Reduction of adjusted normalised loss on previous year* econo
Slide 5: Continued robust growth
Continued robust growth Consistent active customer and FUM growth achieved with increased pricing July 2023: 298k $1.17bn (#) Active Australian (A$m) Australian FUM 300,000 1,400.00 Active Australian Customers (LHS) Customers Australian Retail FUM (RHS) Australian Superannuation FUM (RHS) 1,200.00 2
Slide 6: Our digital investment products unlock financial freedom
Our digital investment products unlock financial freedom Comprehensive investment product suite that has continued to evolve to suit the needs and requests of target customers Raiz Invest Raiz Plus Raiz Invest Super Raiz Rewards Raiz Kids ◼ Raiz Invest users choose to invest ◼ Raiz Plus (launched Au
Slide 7: Our product innovation continues to unlock financial freedom
Our product innovation continues to unlock financial freedom Continuous product development and innovation from customer feedback Product Launch: Plus Pricing Update ◼ In August 2023 Raiz announced the new product release of Plus ◼ From 1 August 2023 the fees updates for the use of the Raiz platform
Slide 8: Strategic Review of Southeast Asian Operations
Strategic Review of Southeast Asian Operations Reduce equity positions with strong local JV partners who will be the majority owners Indonesia Malaysia Thailand Vietnam Finalise opportunity with local Finalise agreements with current partner to operate and move to Review local JV partners who Review
Slide 9: Majority of revenue is independent of market performance
Majority of revenue is independent of market performance ~80% of revenue not impacted by market performance Sources of Revenue Maintenance Fee Netting 63% 3% Bid/Offer spread captured where an A monthly subscription fee of A$4.50* per acquisition or disposal of ETF units does Global month for Standa
Slide 10: We have delivered continued outperformance across key metrics
We have delivered continued outperformance across key metrics Strong results providing a solid platform for ongoing growth and path to profitability demonstrated by Australian business Active Customers Revenue (Raiz Micro Investing Platform) Adjusted Normalised Loss(1) (#) (A$m) (A$m) 685,263 17.4 1
Slide 11: Detailed financial information
02 Detailed financial information
Slide 12: Statement of Profit or Loss and other Comprehensive Income
Statement of Profit or Loss and other Comprehensive Income To be read in conjunction with the Financial Report for the year end 30 June 2023 A$’000 FY22 FY23 % vs FY22 • Group revenue up 1% year on Year (YOY) to A$18.7m Micro investing platform 17,384 17,506 1% Other financial services 1,311 1,055 (
Slide 13: Statement of Cash Flows
Statement of Cash Flows To be read in conjunction with the Financial Report for the year end 30 June 2023 A$’000 FY22 FY23 • 83% reduction in operating cash burn in the second half Receipts from customers 20,136 20,334 of FY23 ($0.43m) compared to the first half of FY23 Payments to suppliers and emp
Slide 14: Statement of Financial Position
Statement of Financial Position To be read in conjunction with the Financial Report for the year end 30 June 2023 A$’000 FY22 FY23 • As of 30 June 2023, Raiz has cash and cash equivalents Assets totaling $8.4 million ($8.6 million including term deposits) Cash and cash equivalents 15,538 8,449 Trade
Slide 15: Outlook
03 Outlook
Slide 16: Consistent and disciplined delivery of our strategy
Consistent and disciplined delivery of our strategy Focusing on continued growth, customer experience leading to a strong path to profitability New products and services to improve engagement Grow Grow revenue active per customers customer Great customer service & UX Utilise best-in-class Increase ‘
Slide 17: We have a large addressable market in front of us
We have a large addressable market in front of us Favourable market dynamics support a large addressable market opportunity in Australia in both Investing and Super Raiz is a market leader with first-time investors. A recent ASX study found a Investing subset of non-investors who intent to Superannu
Slide 18: Management strategic outlook
Management strategic outlook Significant growth opportunity continues – delivered by a strong culture and people Customer ▪ Building on strong loyalty with exceptional customer service and personalised experience Growth & ▪ Continue to grow core Australian business with improved product offering Exp
Slide 19: Appendix
Appendix .
Slide 20: Raiz at a glance
Raiz at a glance Australia's market leading WealthTech Business description Investment highlights ◼ Raiz (formerly a joint venture with Acorns US) launched in Australia in 2016 Favourable macroeconomic drivers and increasing addressable market ◼ Raiz allows customers to invest small amounts of money
Slide 21: Market information
Market information Share price, capital structure, and substantial shareholders Share Price & Volume Capital structure (17-Aug-23) A$0.9 0.8m Shares on issue 93.4m Share price A$0.49 A$0.8 0.7m 12-month range A$0.29 - A$0.71 A$0.7 Market capitalisation A$45.8m 0.6m Net cash & term deposits 30 June 2
Slide 22: Thank you
Thank you Investor and media enquiries: Brendan Malone / Grant Brits ir@raizinvest.com.au ASX:RZI