Solvar Limited · ASX:SVR
Solvar — Shareholder Meeting (November 2022)
23 slides from Solvar's shareholder meeting presentation, Nov 16, 2022
Slide 1: AGM Investor Presentation
AGM Investor Presentation 1pm, Wednesday 16th November 2022 30 Graduate Road, Bundoora Scott Baldwin CEO & Managing Director Money3 Corporation Limited (change of name pending)
Slide 2: Board of Directors
Board of Directors Stuart Robertson Kate Robb Symon Brewis-Weston Scott Baldwin Terri Bakos Non-Executive Director & Chair Non-Executive Director & Chair Non-Executive Director & Chair Managing Director & Chief Company Secretary of the Board of the Audit & Risk Committee of the Renumeration & Execut
Slide 3: Management Team
Management Team Siva Subramani Pushkar Pendse Tessa Georgis Natasha Velkovski Chief Financial Officer Chief Operating Officer Head of People & Culture Head of Marketing Craig Harris Paul Verhoeven Brian Anderson General Manager – Money3 CEO - Go Car Finance Ltd General Manager - Automotive Financial
Slide 4: Solvar Group
Solvar Group 4
Slide 5: Our Group
Our Group + The Group is a provider of Automotive & Personal finance to consumers and small businesses + Providing finance to customers that are not well serviced, using skills developed over a 20 year history in working with our targeted customers + Represented across Australia & New Zealand by 3 u
Slide 6: The Group
The Group >$2 Billion of +200k vehicles +20 years vehicles funded funded experience +300 finance Profession Australia & + 1 million loans als Zealand New originated 6
Slide 7: Assets under finance
Assets under finance 51,580 3,392 1,195 1,049 220 157 25 11 517 10,356 Assets currently under finance as of 30 June 2022 7
Slide 8: Group Business Units
Group Business Units Q1 Bad Debts Revenue EBITDA increased $6.2m increased 10.8% 5.9% Full Year Bad Debts toConsumer $50.7m onloans pcp - Australia to $28.0m onConsumer pcp & Commercial loans – Consumer & Commercial loans – expected to be 3.5%-4.5% Australia New Zealand • Automotive loans up to $100
Slide 9: FY22 Financial Results
FY22 Financial Results 9
Slide 10: Group Financial Results
Group Financial Results Amounts in $m unless otherwise stated FY22 (Statutory) FY21 (Statutory) Mvt % FY22 Revenue 187.9 145.1 29.5% Financial Results Bad Debts (27.2) (18.2) (49.5%)* Movement in Impairment provisions (5.3) (0.9) ** + 26.4% increase in cash collected in FY22 to $440.9m delivering st
Slide 11: Q1 FY23 Results
Q1 FY23 Results 11
Slide 12: Highlights – Q1 FY23
Highlights – Q1 FY23 Secured additional Q1 Bad Debts Revenue EBITDA NZ$250.0m funding increased 3.3% increased facility to support 10.8% 5.9% Full Year Bad Debts GCF growth to $51.0m on pcp to $28.0m on pcp expected to be 3.5-4.5% On-market share buy-back of 2.4m ordinary shares for $4.7m Cash colle
Slide 13: Strong loan book growth
($m) Strong loan book growth Forecast 1,000 900+ 900 + Strong lending momentum in Oct-22 800 733 754 increasing loan book to $779.4m 700 + On track for record new lending in November 2022 601 600 + Group continues to take market share growing in market challenged by interest rate rises 500 + Agile p
Slide 14: Debt Facility Commentary
Debt Facility ($m) 1000 Commentary* 887 + Diversified facilities with 6 funders (including major Australian, New Zealand and 800 international banks) 225 ~$370m headroom + Funding cost margin reduction available as 73 book size and quality improves 600 35 519 + Secured funding to protect growth runw
Slide 15: Stable credit quality
Stable credit Q1 FY23 56% 26% 15% 3% 0.01% quality + Credit quality profile maintained during Q1 FY22 58% 25% 14% 3% 0.02% FY23 despite inflationary pressures + 82% of portfolio is in ‘Strong and Good’ category – representing very low arrears FY21 58% 25% 14% 3% 0.10% + Full Year Bad Debts expected
Slide 16: Outlook FY23
Outlook FY23 16
Slide 17: FY23 – Outlook
FY23 – Outlook Strategic Outlook - Well positioned to expand product offering into adjacent markets i.e. commercial automotive - Well capitalised to take advantage of acquisition opportunities Market Outlook - Used asset pricing stabilising with improving availability - Competition adjusting to risi
Slide 18: Appendices
Appendices 18
Slide 19: Appendix 1 – Product summary
Appendix 1 – Product summary Product Consumer Consumer Consumer Commercial Consumer Commercial Purpose Vehicle Personal Vehicle Vehicle Vehicle Vehicle Finance loans Finance Finance Finance Finance Location Australia Australia Australia Australia New Zealand New Zealand up to up to up to up to up to
Slide 20: Appendix 2 – Group Performance
Appendix 2 – Group Performance Financial Results FY17 FY18 FY19 FY20 FY21 FY22 CAGR ‘millions Revenue 56.0 73.6 91.7 124.0 145.1 187.9 27.4% EBITDA 30.5 40.5 46.3 49.1 80.9 99.0 26.6% EPS 10.30 13.20 13.00 12.08 19.85 24.40 18.8% (cents) Dividends 5.65 9.50 10.00 8.00 10.00 13.00 18.1% (cents) Loan
Slide 21: Glossary of Terms
Glossary of Terms NAF – Net Amount Financed: The amount of credit advanced to a customer in respect to their loan PCP – Prior Corresponding Period: A comparison of the results for the same period during the previous reported period, typically the previous financial year AFS – Automotive Financial Se
Slide 22: Disclaimer
Disclaimer The content of this presentation has been prepared by Money3 Corporation Limited (the Company). It is general information on the Company and its subsidiaries (together, the Group) current as of the 14th November 2022. It is in summary form and is not necessarily complete. The information
Slide 23: Thank you!
Thank you! CEO & Managing Director Scott Baldwin +61 3 9093 8255 s.baldwin@money3.com.au Chief Financial Officer Siva Subramani +61 3 9093 8246 s.subramani@money3.com.au Investor Relations Simon Hinsley +61 401 809 653 simon@nwrcommunications.com.au