Pepper Money Ltd · ASX:PPM
Pepper Money — Investor Presentation (April 2022)
13 slides from Pepper Money's investor presentation, Apr 4, 2022
Slide 1: Acquisition of Stratton Finance
Pepper Money Limited MARKET BRIEFING Acquisition of Stratton Finance Accelerating Pepper Money’s growth and extending market position April 4, 2022 Copyright 2022 Pepper Money Limited. Confidential.
Slide 2: Agenda
A G E N D A Overview 1 Transaction 2 About Stratton Finance Strategic Rationale 3 Other Transaction Details 4 Disclaimer 5 Copyright 2022 Pepper Money Limited. Confidential.
Slide 3: Accelerating Pepper Money's growth and extending market position
T R A N S A C T I O N O V E R V I E W Accelerating Pepper Money’s growth and extending market position Pepper Money to acquire a 65% interest in Stratton Finance (Stratton) for $78m, reflecting 100% value of $120m¹ Put and Call Option over remaining 35% shares, exercisable from Q1 CY2024 through
Slide 4: Accelerating Pepper Money's growth and extending market position
T R A N S A C T I O N O V E R V I E W Accelerating Pepper Money’s growth and extending market position Initial 65% share acquisition – cash settled, in part funded by drawing on our Corporate Debt Facility (CDF) CDF - $200m facility, currently drawn to $50m FUNDING Pepper Money has option to s
Slide 5: Stratton operates in a large addressable market
A B O U T S T R AT T O N Stratton operates in a large addressable market ASSET FINANCE MARKET COMPOSITION MOTOR VEHICLES Road vehicles are the largest component of the asset finance market⁴ New vehicles are the largest component of the asset finance market $185bn Australian consumer vehicle and tran
Slide 6: Stratton - Australia's leading online Auto Finance Broker
ABOUT STRATTON FINANCE Stratton - Australia’s leading online Auto Finance Broker FY2021A Market leading brand position $608m+ 19k 1.3m+ Avg. Inbound Avg. Leads Received Unique Contacts in Enquiry Volume p/m p/m Database Strong marketing capability driving high lead generation Diversified loyal and h
Slide 7: Pepper Money & Stratton – accelerating growth and extending market position
S T R AT E G I C R AT I O N A L E Pepper Money & Stratton – accelerating growth and extending market position EXTEND A C C E L E R AT E PEPPER MONEY ASSET FINANCE S T R AT T O N PERSONAL ASSET TYPE MORTGAGES LOANS Broker White label Motor dealers Direct Broker Referral OEM Retention CHANNEL Direct t
Slide 8: Technology platforms - already connected and driving broker and customer experience
S T R AT E G I C R AT I O N A L E Technology platforms - already connected and driving broker and customer experience PEPPER MONEY ASSET FINANCE STRATTON FINANCE Solana Solaris E F F I C I E N C Y Full suite of API delivering seamless integration API connected delivering seamless integration S C A L
Slide 9: Pepper Money & Stratton – opportunity summary
S T R AT E G I C R AT I O N A L E Pepper Money & Stratton – opportunity summary DIRECT TO PRODUCT & CONSUMER I N N O VAT I O N • Increase insights into what customers want • Extends Pepper Money’s small direct footprint and need in asset finance products and • Stratton gives Pepper Money the insight
Slide 10: Key terms
O T H E R T R A N S A C T I O N D E T A I L S Key terms Pepper Money to acquire 65% of outstanding shares from existing Stratton shareholders (Sellers) on a pro rata basis. Consideration is $78m, subject to adjustment to reflect that the transaction is structured on a cash-free, debt-free basis, w
Slide 11: Disclaimer
Disclaimer Summary information Investors should also note that there is no assurance that the due diligence conducted was conclusive, and that all material issues and risks in respect of the Acquisition have been identified and avoided or managed appropriately This Presentation contains summary info
Slide 12: Disclaimer
Disclaimer No representations, warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this Presentation will actually occur. The information provided in this Presentation is for illustrative purposes only and is
Slide 13: Investor Relations / Media Relations
Investor Relations Catherine Buckmaster T +61 2 7227 3879 E cbuckmaster@pepper.com.au Media Relations For more information visit www.pepper.com.au Domestique Consulting Helen Karlis M +61 (0) 419 593 348/ E helen@domestiqueconsulting.com.au Celia Moore M +61 (0) 432 344 069 E celia@domestiqueconsult