Moneyme Ltd. · ASX:MME
Moneyme — Investor Presentation (February 2022)
42 slides from Moneyme's investor presentation, Feb 24, 2022
Slide 1: Investor Presentation: 1H22 Results, Strategy & Outlook
Investor Presentation 1H22 Results | Strategy & Outlook 24 February 2022 moneyme.com.au Copyright 2022 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218
Slide 2: About MoneyMe
1 About MoneyMe 5 1H22 highlights 23 Strategy & outlook 30 Appendix Page 1
Slide 3: To be the choice for Generation Now
OUR MISSION To be the choice for Generation Now MoneyMe is a leader in the digital credit sector using technology and artificial intelligence to deliver highly automated innovative products and customer experiences Our core values We innovate, always We build products of We are here for We stand tog
Slide 4: The MoneyMe difference
The MoneyMe difference Superior MoneyMe’s continuing success reflects how it is founder and innovation led, has a high total addressable market and remains focused on delivering high growth that returns is underpinned by technology and the delivery of profit with purpose. Profit With purpose Technol
Slide 5: Proprietary Horizon technology driving innovation
Proprietary Horizon technology driving innovation Supporting delivery of superior product innovation, customer experience and efficiencies Horizon MoneyMe’s Cloud-based technology platform Treasury Highly function & engineered warehouse decisioning funding End-to-end capability Native iOS Scale & or
Slide 6: 1H22 highlights
1 About MoneyMe 5 1H22 highlights 23 Strategy & outlook 30 Appendix Page 5
Slide 7: 1H22 key highlights
1H22 key highlights 1 Gross customer Revenue up 101% Cash profit up 140% $48m 1H22 vs $24m 1H21 $10m 1H22 vs $4m 1H21 receivables up 252% $590m 1H22 vs $168m 1H21 590 48 10 34 7 333 24 4 168 1H21 2H21 1H22 1H21 2H21 1H22 1H21 2H21 1H22 $155m Autopay Expanded gross receivables acquisition distributio
Slide 8: 1H22 financial highlights
1H22 financial highlights Record receivables, profitable returns, sound credit & book quality Cash NPAT ($m) Total revenue ($m) Gross customer receivables ($m) 10 590 48 7 34 333 140% 4 101% 24 252% 168 1H21 to 1H22 1H21 to 1H22 1H21 to 1H22 1H21 2H21 1H22 1H21 2H21 1H22 1H21 2H21 1H22 Total operati
Slide 9: Robust returns
Robust returns Profit & asset growth ($m) Statutory NPAT to cash NPAT reconciliation 20 18 590 700 16 500 14 333 37 (15) 7 • Cash NPAT $10m for 1H22, increasing from 12 168 300 10 10 $7m for 2H21 (up 41%) and $4m for 1H21 10 Cash NPAT ($m) (up 140%) 7 100 8 Gross customer (19) receivables ($m) • Sta
Slide 10: Record receivables growth
Record receivables Total originations ($m) 500 Gross customer receivables ($m) growth 450 441 600 590 • Total originations $441m for 1H22, 286% 252% 400 1H21 to 1H22 1H21 to 1H22 Secured increasing from $269m in 2H21 (up 64%) and 500 26% 26% $114m in 1H21 (up 286%) 33% Secured 33% 350 • Closing gros
Slide 11: Diversified customers
Diversified customers Geographical spread Employment sector Logistics, Transport & Supply 10% All others Other 56% Hospitality, Travel and 11% NSW Tourism 32% 9% • The geographical spread of MoneyMe’s WA customer base is broadly in line with the 9% Construction, Building & Australian population Arch
Slide 12: Increasing revenue returns
Increasing revenue returns Total revenue ($m) Risk-based average interest rate (%) 48 21% 19% 18% Offer term, value and pricing changes made since 34 the settlement of the Major Bank warehouse in September 2020 have supported significant 101% 24 Unsecured (%) Secured (%) increases to receivable life
Slide 13: Robust credit risk ratios
Robust credit risk ratios Provisioning (%) Net losses (%) 7.9% 7.9% 7.5% 5.1% Robust receivable credit risk and an 4.6% 4.4% improved economic outlook are supporting reducing credit risk expense ratios: 5% 5% Reduction Reduction 1H21 to 1H22 1H21 to 1H22 • Provisioning 7.5% of gross customer receiva
Slide 14: Reducing office operating costs
Reducing office operating costs Core office operating costs to receivables (%) Sales & marketing expense to originations (%) 3.3% 11.8% 10.5% 2.1% Reduced operating expense ratios 1 continue 43% 46% to reflect the significant economy of scale 6.7% 1.8% opportunities in the business: Efficiency gain
Slide 15: Funding diversification with cost of funds reduction
Funding diversification Average funding cost rate (%) Debt funding sources over time ($m) with cost of 8.7% 617 funds reduction 39% 2x 5.3% 4.6% • A further reduction in funding costs with a Efficiency gain Funding facilities closing external cost of funds of 4.5% at the 1H21 to 1H22 1H21 to 1H22 en
Slide 16: 1H22 operational highlights
1H22 operational highlights Delivery of significant product and distribution diversification, and progression of the SocietyOne acquisition while maintaining customer service excellence $155m SocietyOne Expanded Autopay receivables Acquisition distributions $150m+ originated since Autopay product la
Slide 17: Consistent delivery of leading customer experiences alongside record growth
Consistent delivery of leading customer experiences alongside record growth Net Promoter Score (NPS) Customers that have had 2+ products with MoneyMe (%) MoneyMe’s 1H performance continues to reflect delivery of market-leading customer 74 78 76 39% 37% satisfaction and customer experience with 35% d
Slide 18: Further tangible benefits for environment, employees and community
Further tangible benefits delivered for our environment, employees and the community Significant progress has been made across Environment Employees our ESG agenda in 1H22, reflecting our ongoing commitment to having a positive impact on our community, employees and • Began measuring our scope 1, 2
Slide 19: AI-enabled & automated, yet still very personal
AI-enabled & automated, yet still very personal Applying from the app is super easy and money is in your bank account in less than 60 minutes. The best part is a personalised low interest rate and repayments made to fit your budget. • Offer range up to $50,000 (offer term 3 to 60 months) • Interest
Slide 20: Feature-packed virtual card for Generation Now
Feature-packed virtual card for Generation Now After an easy application, Freestyle is the virtual Mastercard® that can be used straight away! It’s packed with features and designed to manage credit with so much more control from the app. Beats the old credit card. • Credit limit up to $20,000 • Int
Slide 21: Our innovative shop now pay later solution
Our innovative shop now pay later solution MoneyMe+ offers an easy and fast solution at the point of sale. It has interest free terms and the retailer pays a merchant fee. It’s targeting the bigger ticket finance sector that has mostly been left to the traditional non- bank lenders to service • Laun
Slide 22: The smart way of selling property for agents and vendors
The smart way of selling property for agents and vendors Getting the house or apartment ready for sale is made easier with ListReady. Easy to set up and pay for the things that help you sell your property. • Service amount up to $35,000 • Service fee 4.4% (incl. GST) Customer Total Real estate recei
Slide 23: Game changing innovation in the auto sector
Game changing innovation in the auto sector With Autopay’s high automation, dynamic pricing and best-in-class speed that offers secured vehicle finance that settles within 60 minutes, 7 days a week, dealers and brokers are rapidly signing up to access the product and the Autopay book continues to gr
Slide 24: Strategy & outlook
1 About MoneyMe 5 1H22 highlights 23 Strategy & outlook 30 Appendix Page 23
Slide 25: Accelerating returns through innovation, scale and technology
Accelerating returns through innovation, scale and technology for Generation Now Accelerating returns Personal Loans Expanding Credit Score distribution Horizon channels Technology We are creating value and accelerating Revenue diversification Growing Cash NPAT Attractive unit economics High custome
Slide 26: A highly complementary combination of two leading digital consumer lenders
A highly complementary combination of two of the leading digital consumer lenders in Australia that is set to accelerate Group scale and returns + $590m 34 ~72k $404m 45 ~26k Dec 2021 GLA Average customer age Dec 2021 active customers Dec 2021 GLA 1 Average customer age Dec 2021 active loan customer
Slide 27: The combination delivers five significant merger benefits
The combination delivers five significant merger benefits Significant operating 68% increase in MoneyMe loan book size to $994m (Dec 2021) 1 leverage through Operating leverage benefits as SocietyOne business migrated to MoneyMe’s Horizon platform increased scale Cost/originations1 to reduce from 6%
Slide 28: Confidence to deliver SocietyOne benefits
Confidence to deliver SocietyOne benefits High calibre Integration Director engaged and building momentum and cross collaboration to support Momentum ‘sprint through the Day 1 gates’ activities Integration Committee and supporting governance framework set-up Transactional Key transaction obligations
Slide 29: Update on SocietyOne acquisition
Update on SocietyOne acquisition The merger is on track for completion on 15 March 2022, with post-completion plans well progressed Key transaction updates: Pro-forma gross receivables (December 2021) • 99.99% of MoneyMe shareholders voted in support of the acquisition 994 +68% • 89% of SocietyOne s
Slide 30: Questions
Questions Page 29
Slide 31: Appendix
1 About MoneyMe 5 1H22 highlights 23 Strategy & outlook 30 Appendix Page 30
Slide 32: Key operating measures
Key operating measures Notes 1 1H21 2H21 1H22 Returns Total revenue ($m) 24 34 48 Total revenue growth (%) (9%) 41% 43% Revenue yield (%) 1 32% 27% 21% Future contracted cash interest ($m) 2 45 98 178 Cash NPAT ($m) 3 4 7 10 Customer receivables growth Originations ($m) 4 114 269 441 Originations gr
Slide 33: Measure definitions
Measure definitions Note Measure Definition 1 Revenue yield (%) Total revenue as a % of average gross customer receivables The sum of the total amount of interest payable by each customer receivable over the remaining life of the customer receivable contract (i.e. from 1 July onwards to 2 Future con
Slide 34: Income statement
Income statement $ millions 1H21 2H21 1H22 Interest income 22 31 45 Other income 2 3 3 Total revenue 24 34 48 Commission expense - (0) (0) Net revenue 24 34 48 Interest expense (6) (5) (12) Sales & marketing expense (4) (6) (8) Product design & development expense (2) (2) (2) General & administrativ
Slide 35: Statutory NPAT to cash NPAT reconciliation
Statutory NPAT to cash NPAT reconciliation Statutory NPAT to Cash NPAT reconciliation 1H21 2H21 1H22 Statutory net profit / (loss) after tax (NPAT) 1 (9) (19) AASB 9 impairment expense adjustment 6 23 37 Gross charge off adjustment (4) (7) (15) Non-recurring adjustments Unsolicited proposal review a
Slide 36: Balance sheet
Balance sheet $ millions 1H21 2H21 1H22 Cash and cash equivalents 29 26 68 Net customer receivables 154 306 546 Current tax asset - 0 - Deferred tax asset 5 6 6 Intangible assets 3 3 4 Right of use assets 2 1 1 Property, plant and equipment 1 1 1 Other receivables 3 1 4 Total assets 196 346 631 Borr
Slide 37: Cash flow statement
Cash flow statement $ millions 1H21 2H21 1H22 Income from customers 20 46 43 Payments to suppliers and employees (8) (15) (16) Net borrowings interest and fees paid (5) (6) (9) Income tax (paid) / received (2) (0) - Transaction costs related to borrowing (0) 0 (4) Net cash inflows from operating act
Slide 38: MoneyMe's products
MoneyMe’s products Offer range $2,100 – $50,000 Credit limit up to $20,000 Credit limit up to $50,000 Service amount up to $35,000 Service amount Up to $100,000 up to $15,000 Offer term 3 – 60 months Repayments spread Based on minimum 60 days 24 months 36 – 84 months over 24 – 60 months monthly repa
Slide 39: Important Notices and Disclaimers (1 of 3)
Important Notices and Disclaimers (1 of 3) The information contained in this presentation has been prepared by MoneyMe Limited ACN 636 747 414 Investors should also note that there is no assurance that the due diligence conducted was conclusive, and that (“MoneyMe” or “Company”) in connection with M
Slide 40: Important Notices and Disclaimers (2 of 3)
Important Notices and Disclaimers (2 of 3) This presentation includes certain pro forma financial information. The pro forma financial information provided statements. These statements are not guarantees of future performance and are subject to known and in this presentation is for illustrative purp
Slide 41: Important Notices and Disclaimers (3 of 3)
Important Notices and Disclaimers (3 of 3) The Company’s products may contain programming errors, which could harm its brand and operating results. The Company will rely on third party providers and internet search engines (amongst other facilities) to direct customers to MoneyMe’s products. Other r
Slide 42: moneyme.com.au
moneyme.com.au Copyright 2022 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218