Beforepay Group Limited · ASX:B4P
Beforepay — Investor Presentation (February 2025)
27 slides from Beforepay's investor presentation, Feb 27, 2025
Slide 1: H1 FY25 Results Presentation
Beforepay Group Limited A SX: B4 P H1 FY25 Results Presentation Interim Report – 31 December 2024 Jamie Twiss – CEO Elena Chan – Acting CFO 27 February 2025
Slide 2: Disclaimer
FY24 Annual Results 2 Disclaimer This presentation has been prepared by Beforepay Group Limited To the maximum extent permitted by law, the Company and the Neither Beforepay nor any member of Beforepay Group represents (the ‘Company’). members of the Group make no representation or warranty, express
Slide 3: H1 FY25 Highlights
FY24 Annual Results 3 H1 FY25 Highlights Revenue Active Users $19.7m 257,627 NPBT up from $17.6m in H1 FY24 $2.8m up 9% from 235,644 in H1 FY24 Net Transaction Net Defaults Margin (NTM) 1.1% up from $2.2m in H1 FY24 down from 1.3% in H1 FY24 $11.8m up 18% from $10.1m in H1 FY24 Pay Advances Operatin
Slide 4: What we do
FY24 Annual Results 4 What we do Our Mission: To support people around Beforepay Carrington Labs the world with safe and For consumers Beforepay is our domestic consumer-lending For enterprise Carrington Labs commercialises the AI credit risk affordable lending products business. Through our flagshi
Slide 5: Ethical lending
FY24 Annual Results 5 Ethical lending As an organisation committed to ethical lending, Beforepay prioritises the financial well-being of our customers. We also offer our automated platform and AI-powered risk models to partners in other jurisdictions. Designed for Highly efficient Artificial-intelli
Slide 6: Our Customers
FY24 Annual Results 6 Our Customers as at 31 December 2024 The average Beforepay customer is 35 years old with an annual gross income of $63,976 1. Location2 Top Employment Industries3 NT 1.7% Construction 9.1% Hospitality and Restaurant QLD Services 8.0% 26.7% Retail trade 7.5% WA 11.3% Healthcare
Slide 7: Revolutionising Lending with AI: Our B2B Solution for Lenders
FY24 Annual Results 7 Revolutionising Lending with AI: Our B2B Solution for Lenders We train proprietary AI models on a massive dataset to identify hidden risks and opportunities. This enables us to generate accurate alternative risk scores and optimal lending limits. Traditional credit scoring meth
Slide 8: Business Update
FY24 Annual Results 8 Business Update
Slide 9: Strong Growth in Net Transaction Margin
FY24 Annual Results 9 Strong Growth in Net Transaction Margin Net Transaction Margin up 18% to $11.8m in H1 FY25 from $10.1m in H1 FY24 Operating Expenses up 14% to $8.8m in H1 FY25 from $7.7m in H1 FY24 Note: Certain financial metrics and information included throughout this presentation are not re
Slide 10: Total and Average Pay Advances
FY24 Annual Results 10 Total and Average Pay Advances Incremental Growth in Pay Advances +11% +1.4% Total Pay Advances Average Pay Advance ($m) by Half Year ($) by Half Year Note: Certain financial metrics and information included throughout this presentation are not recognised under the Australian
Slide 11: Active Users
FY24 Annual Results 11 Active Users +9% 257,627 Active Users or 9% Growth in H1 FY25 Note: Certain financial metrics and information included throughout this presentation are not recognised under the Australian Accounting Standards and are classified as ‘non-IFRS financial information’. See Glossary
Slide 12: Declining Trend in Loan Defaults
FY24 Annual Results 12 Declining Trend in Loan Defaults Demonstrating Consistent Improvement in Credit Quality H1 FY24 H1 FY25 Gross defaults % (of pay advances inclusive of fees) 2.3% gross | 1.3% net 2.2% gross | 1.1% net Net defaults % (of pay advances inclusive of fees) Note: Certain financial m
Slide 13: Funding Costs – Debt Facility
FY24 Annual Results 13 Funding Costs – Debt Facility The short duration of our pay advances keeps funding costs low. 15.31% 80% ~87 bps 26 days (0.07 years) X Cost of external X Maximum loan-to- = Third party funding costs % based on Average duration debt facility value ratio of external average dur
Slide 14: Direct Service Costs
FY24 Annual Results 14 Direct Service Costs1 Continue to be Tightly Managed H1 FY24 H1 FY25 0.22% of Pay Advances 0.20% of Pay Advances 1. Direct service costs include the costs in facilitating advances to customers: data collection, transaction categorisation, direct credit and direct debit. Note:
Slide 15: NTM & Profit/(Loss) by Half Year
FY24 Annual Results 15 NTM & Profit/(Loss) by Half Year H1 FY25 H2 FY24 H1 FY24 H2 FY23 H1 FY23 Active users (no. of users) 257,627 240,254 235,644 234,034 203,937 Average pay advance ($) 393 377 387 346 391 Pay Advances ($m) 396.7 351.0 358.6 324.1 303.9 Revenue1 % (of pay advances) 5.0% 5.0% 4.9%
Slide 16: Balance Sheet
FY24 Annual Results 16 Balance Sheet Strong Cash and Equity Position $m H1 FY25 FY24 $ Change % Change Commentary Cash position 1 18.3 19.2 (0.9) (5%) Receivables 54.3 50.2 4.1 8% Reflects growth in loan book and level of advances Other assets 5.5 4.1 1.4 37% Reflects capitalisation of software deve
Slide 17: Cash Flow Statement
FY24 Annual Results 17 Cash Flow Statement Operating, Investing and Financing Activities $m H1 FY25 H1 FY24 Cash Receipts from repayment of customer advances Receipts of revenue 388.3 19.3 355.1 12.0 $18.3m Payments to suppliers and employees (8.7) (7.9) Cash and Cash Equivalents at 31 December 2024
Slide 18: Expansion and New Growth
FY24 Annual Results 18 Expansion and New Growth • Continue growth momentum Pay advance • Continue to refine risk models and limits • Maintain cost focus • Continue to refine risk models and processes Personal loans • Prepare to scale • Identify additional sources of debt funding • Invest to accelera
Slide 19: Q&A
FY24 Annual Results 19 Q&A
Slide 20: Appendix
FY24 Annual Results 20 Appendix
Slide 21: H1 FY25 Management Profit & Loss (P&L)
FY24 Annual Results 21 H1 FY25 Management Profit & Loss (P&L) A$, unless otherwise stated H1 FY25 A$, unless otherwise stated H1 FY25 Revenue 19,672,701 EBITDA, excluding one-off and/or significant items 5,472,702 Gross defaults (9,048,284) Depreciation & amortisation expenses (D&A) (257,253) Gross
Slide 22: H1 FY25 NTM Reconciliation to Statutory P&L
FY24 Annual Results 22 H1 FY25 NTM Reconciliation to Statutory P&L Management P&L – Revenue to Net Transaction Margin Statutory Profit and Loss Reference to Statutory A$, unless otherwise stated H1 FY25 Profit and Loss A$, unless otherwise stated H1 FY25 Revenue 19,672,701 1 Revenue Revenue Gross de
Slide 23: H1 FY25 EBITDA Reconciliation to Statutory P&L
FY24 Annual Results 23 H1 FY25 EBITDA Reconciliation to Statutory P&L Management P&L – Net Transaction Margin to EBITDA Statutory Profit and Loss Reference to Statutory A$, unless otherwise stated H1 FY25 Profit and Loss A$, unless otherwise stated H1 FY25 Net transaction margin 11,848,473 Revenue N
Slide 24: Pay Advance Business Model
FY24 Annual Results 24 Pay Advance Business Model Pay advances Net transaction Monthly operating per month x margin % ≥ expenses Active users Revenue Monthly overheads x _ + Pay advances per Net defaults Monthly marketing expense active user per month x _ Average pay advance Funding costs _ Direct s
Slide 25: Glossary
FY24 Annual Results 25 Glossary Term Definition Term Definition Active Users A customer of Beforepay, who has taken out a pay advance in the Finance Costs Finance costs are related to the debt facility with Longreach previous 12 months from the date of the relevant information. and Balmain Group (to
Slide 26: Glossary
FY24 Annual Results 26 Glossary Term Definition Term Definition Net Transaction Net transaction margin as a percentage of pay advances. The figures Revenue The transactions fees charged to customers on pay advances. Revenue is Margin % presented on Net Transaction Margin % are unaudited. calculated
Slide 27: Thank You
Investors Media Danny Younis Noeleene Yap Investor Relations Marketing and Communications Manager Beforepay Group Beforepay Group Ph: 0420 293 042 Ph: 0489 995 082 investorrelations@beforepay.com.au mediaenquiries@beforepay.com.au investorrelations@beforepay.com.au mediaenquiries@beforepay.com.au Th
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