Solvar Limited · ASX:SVR
Solvar — Microcap Investment Conference 2017
15 slides from Solvar's conference presentation, Oct 18, 2017
Slide 1: FY17 Microcap Investment Conference
FY17 MICROCAP INVESTMENT CONFERENCE October 2017 Ray Malone Chairman Scott Baldwin Managing Director Brett Coventry Chief Financial Officer
Slide 2: About Money3
About Money3 Money3 is a national credit provider committed to servicing the needs of customers who cannot access funding from traditional lenders 2 MICROCAP INVESTMENT CONFERENCE
Slide 3: Money3 Products
Money3 Products Loan Product Type Broker Branch Online Outstanding Gross Loan Book* Secured Personal Loans $2,000 - $35,000 NA NA $212.9 m Terms 24-60 months Unsecured Personal $2,000 - $8,000 NA NA $1.0 m Loans Up to 36 months Medium Amount $2,001 - $5,000 $2,001 - $5,000 $2,001 - $5,000 $23.6 m Cr
Slide 4: Key Financial Metrics
Key Financial Metrics Record full year revenue of $109.6m up 13.4%, with all divisions delivering revenue growth Record full year EBITDA of $50.6m up 43.4% Record full year NPAT of $29.1m up 44.5% EPS (Basic) of 18.81 cps up 32.4% 26% increase in final dividend to 3.15 cents per share with
Slide 5: Key Highlights
Key Highlights Group Performance Secured Automotive lending Significant EBITDA margin improvement from Demand for secured automotive loans continues FY16, 36.5% to FY17, 46.1% with 40.9% growth in loan book to gross loans of 213.9m Gross loan book increased 37.4% to $273.2m up from $198.8m R
Slide 6: Financial Performance
Financial Performance $ FY17 FY16 % Change $m $m Change $m Revenue 109.6 96.7 + 12.9 13.3% Revenue v NPAT $'M's Expenses 59.0 61.4 - 2.4 3.9% 120 35 100 30 EBITDA 50.6 35.3 + 15.3 43.3% 25 80 20 EBITDA as % of revenue 46.1% 36.5% 60 15 40 NPAT 29.1 20.1 + 9.0 44.8% 10 20 5 NPAT as % of revenue 26.6%
Slide 7: Balance Sheet
Balance Sheet FY17 FY16 FY15 $m $m $m Cash and Cash Equivalents 21.1 27.2 12.4 Loans and Other Receivables (Net) 225.1 164.4 130.3 Other Assets 9.3 7.1 6.2 Intangible Assets 19.2 19.7 19.4 Total Assets 274.7 218.4 168.3 Borrowings 79.5 48.6 35.2 Other Liabilities 13.1 13.3 10.4 Total Liabilities 92.
Slide 8: Sustainable Cashflow
Sustainable Cashflow FY17 FY16 $ Change % Change $m $m $m Receipts from customers1 307.4 282.6 + 24.8 + 9% Payments to suppliers & employees - 39.3 - 42.1 + 2.8 - 7% Net interest and finance expense - 6.3 - 3.5 - 2.8 + 80% Income tax paid - 15.7 - 9.9 - 5.8 + 59% Cashflow from operating activities 2
Slide 9: Continued Growth in Auto Lending
Continued Growth in Auto Lending Gross Loan Book $m 300.0 250.0 200.0 213.9 223.1 150.0 188.0 127.4 151.8 100.0 106.8 78.8 50.0 23.6 21.1 24.1 23.7 22.4 23.0 18.3 26.6 33.6 28.7 33.0 35.6 30.3 25.0 0.0 H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17 H2 FY17 Q1 FY18 Small Amount Credit Contract Larger Amount
Slide 10: FY18 Accounting policies
FY18 Accounting policies Money3 is in compliance with all current accounting standards By implementing the changes below, Money3 will be compliant with new standards AASB 15 and AASB 9, which needs to be adopted by all companies for FY19 Money3 regularly reviews its methodology regarding the r
Slide 11: FY18 Accounting policies
FY18 Accounting policies Had the above methodology been adopted for Example of an under performing loan with $100 the FY17 results, approximately $3.5m (3.2%) of fees charged, then gone on to pay in full revenue would have been transferred to the balance sheet, with this revenue being brought
Slide 12: Regulations
Regulations The National Consumer Credit Protection Act of 2009 review, conducted after 1 July 2015, handed down 24 recommendations for changes to existing regulations. After review of these recommendations, Money3 has concluded there is no material financial impact should all of the recommendatio
Slide 13: Outlook
Outlook Money3 estimates the addressable used car market in Australia is approx. 700,000 + vehicle sales per annum with Money3 writing 14,000 + automotive loans in FY17, which represents about 2% of the addressable market There is significant scope for Money3 to grow its market share of the used
Slide 14: Disclaimer
Disclaimer The content of this presentation has been prepared by Money3 Corporation Limited (the Company) for general information purposes only. Any recommendations given are general and do not take into account your personal circumstances and therefore are not to be taken as a recommendation or adv
Slide 15: Money3 Corporation Ltd
Money3 Corporation Ltd Enquiries to: Ray Malone Chairman e. r.malone@money3.com.au Scott Baldwin Managing Director e. s.baldwin@money3.com.au Brett Coventry Chief Financial Officer e. B.Coventry@money3.com.au Head Office Level 1 / 40 Graduate Road, Bundoora, 3083 p. 03 9093 8255 15 MICROCAP INVESTME