Wisr Ltd. · ASX:WZR
Wisr — H1 2021 Earnings Presentation
23 slides from Wisr's earnings presentation, Feb 1, 2021
Slide 1: H1FY21 Results Presentation
H1FY21 Results Presentation (unaudited) INVESTOR PRESENTATION 01 FEBRUARY • 2021 1
Slide 2: Table of contents
Table of contents. VISION AND KEY NUMBERS 1 VISION AND KEY NUMBERS BUSINESS PERFORMANCE 2 BUSINESS PERFORMANCE H 2 F Y 2 1 O U T LO O K A N D E X E C U T I O N P R I O R I T I E S 3 ROADMAP FOR GROWTH 2
Slide 3: Wisr Roadmap. Future growth horizons
Wisr Roadmap. Future growth horizons. o Next 3–5-year plan delivers exciting opportunities for growth beyond current trajectory, as the world of consumer Current position. finance changes o Q2FY21’s exit run rate, key metrics show a o Opportunities exist for leveraging the Wisr clear path towards a
Slide 4: Significant growth opportunity
Significant growth opportunity. ~0.22% Total addressable market. The $207M Wisr Warehouse only Wisr is primed to aggressively capture $93B representing circa 0.22% market share1, providing ample runway for market share with a long runway of lending opportunity in the $93B CONSUMER LENDING consumer l
Slide 5: Clear path through profitability
Clear path through profitability. Indicative $1B model of the WISR WAREHOUSE LOAN BOOK AT SCALE $ RANGE AVG BOOK Wisr core ECONOMICS RUN-RATE 1 (P.A.) (%) business at Revenue $110–130M 11–13% scale. Gross Margin $75-85M 7.5–8.5% Opex $35-40M 3.5–4% Cash EBTDA $40-50M 4–5% $207M % Assumptions for cos
Slide 6: We've built a scalable business model that is...
We’ve built a scalable business model that is... Purpose-led Fast-growing Efficient with massive A vision to bring financial New model already delivering a Market-leading proprietary tech opportunities ahead wellness to all Australians profitable core business platform backed by great customer servi
Slide 7: Business Performance
2. Business Performance. 7
Slide 8: Key numbers
Key numbers. Delivering on milestones, keeping promises. CONSISTENT GROWTH LOAN ORIGINATIONS REVENUE GROWTH 90+ DAY ARREARS TREND CONTINUES UP 166% UP 354% DOWN 0.72% $1 45 .7M 1 0.0M Over $390.5M in loans written to date 1 .5 1 % $5 4.9 M 0.79 % 2 .2 M SEP 18 – DEC 20 H1FY20 H1FY21 H1FY20 H1FY21 31
Slide 9: Substantial revenue growth
Substantial revenue growth. $5.9M Revenue in Q2FY21 Acceleration continues. • 101% revenue growth in H1FY21 vs H2FY20 • 354% revenue growth in H1FY21 vs H1FY20 • Strong revenue growth with Wisr Warehouse funding model now in effect • Wisr is set up for significant scaling and revenue growth in FY21,
Slide 10: Core profitability & investing for growth
Core profitability & investing for growth. Core business cash profitability continues to expand in H1FY21 (commenced in H2FY20), as loan volume and revenue scale under the Wisr Warehouse funding model, while delivering operational leverage. REVENUE Strong revenue growth of 354% achieved in H1FY21 ve
Slide 11: Cash EBTDA
Cash EBTDA. Operating Revenue H1FY21 $9,987,719 H1FY20 $2,201,936 VARIANCE 354% Significant improvement in Total Revenue $10,037,719 $2,276,562 341% quarterly Cash EBDTA, while investing for growth. Operating Expenses $(14,466,425) $(9,080,745) 59% Interest Expense $(2,090,987) $(141,766) 1375% In Q
Slide 12: Continued acceleration of high-quality loan book
Continued acceleration of high-quality loan book. 35% growth on previous quarter Loan originations ($M). Loan book ($M). 12
Slide 13: Continued improvement in credit quality
Continued improvement in credit quality. Loan arrears. 90+ DAY ARREARS Arrears continue to improve, primarily due to the strength of Wisr’s credit decisioning engine, in combination with the launch of secured vehicle loans and Australia’s macroeconomic recovery. The roll-off of government stimulus a
Slide 14: Prime quality customer base
Prime quality customer base. Attracting Australia’s most creditworthy customers. Strong credit quality with reductions in 90+ day arrears and observable improvements CUSTOMER NPS to average credit scores, and best in-class customer net promoter scores. +79 H1FY21 759 +68 Q2FY21 H1FY20 742 AVERAGE 73
Slide 15: COVID-19 Hardship
COVID-19 Hardship. COVID-19 hardship requests have stopped. • Requests for payment assistance related to CUSTOMERS UNDER COVID-19 HARDSHIP ASSISTANCE ON COVID-19 have stopped with zero requests in BALANCE SHEET (WISR WAREHOUSE) December. • As of 31 December 2020, $1.96M or 0.71% of the total loan po
Slide 16: Loan loss provisioning
Loan loss provisioning. ECL coverage ratio reduced from 4.1% to 2.8% at 31 Dec 2020. This coverage ratio is expected to remain stable due to PROVISION MOVEMENT DEC 2019 - DEC 2020 the launch of secured vehicle and observed improvement in the Company’s average credit score. EXPECTED CREDIT LOSS $ % O
Slide 17: Roadmap for growth
3 = b df Roadmap +. sf . for growth. a
Slide 18: Wisr Roadmap. Future growth horizons
Wisr Roadmap. Future growth horizons. o Next 3–5-year plan delivers exciting opportunities for growth beyond current trajectory, as the world of consumer Current position. finance changes o Q2FY21’s exit run rate, key metrics show a o Opportunities exist for leveraging the Wisr clear path towards a
Slide 19: Financial wellness is in our DNA
Financial wellness is in our DNA. Build + discover Why financial wellness? What can be done Wisr’s purpose We’ve spent 4 years building the It’s a global, unsolved crisis. Here People need the right financial We’ve created a scalable model Wisr Ecosystem, with 350,000+ in Australia, we have: product
Slide 20: Expanding horizons by addressing financial wellness
Expanding horizons by addressing financial wellness. Wisr today Wisr tomorrow Strong momentum towards Leveraging our core profitability and profitability, and investing for growth solving for financial wellness will through innovation present multiple potential options to increase TAM Potential oppo
Slide 21: Expanded leadership team
Expanded leadership team. Invested for next 3–5 year journey. LEADERSHIP ADDITIONS Lili has worked with BCG, Commonwealth Bank and global asset managers, and was most recently the Chief Strategy Officer at Social Ventures Australia. Lili holds a PhD in Political Science from Harvard University and h
Slide 22: Industry recognition for financial wellness approach
Industry recognition for financial wellness approach. 22
Slide 23: Disclaimer
Disclaimer. NO INVESTMENT ADVICE OR OFFER OF SHARES presentation or assumption upon which any part of this presentation is based or the accuracy, completeness or reliability of the information contained in this This presentation does not constitute investment advice, or an inducement or presentation