Slide 1: FY23 Results
FY23 Results 24 August 2023 CEO James Beeson CFO - COO Paul Murray
Slide 2: Reported Results significantly impacted by one-offs: Financial
Reported Results significantly impacted by “one-offs”. Underlying business remains profitable and cash generative with a strong balance sheet FY23 Results Financial Reported Net Revenue of $41.8m, down 5% (FY22 of $44.1m) Reported Profit (Loss) After Tax of ($7.7m) compared to a profit of $13.2m in
Slide 3: Reported Results significantly impacted by one-offs: Operational
Reported Results significantly impacted by “one-offs”. Underlying business remains profitable and cash generative with a strong balance sheet FY23 Results Operational Significant progress on RevRoof recovery. Expected loss provision and estimated recovery costs remain appropriate Comprehensive chang
Slide 4: FY23 Proforma Financials
earlypay“ FY23 Proforma Financials
Slide 5: Proforma unaudited financials excluding RevRoof impact
NOTE: The remaining presentation is based on proforma unaudited financials that exclude the impact of RevRoof, providing investors with a Proforma profile of the Earlypay business on a continuing basis Profit and Loss ($m) FY22 FY23 Flat FIU growth reflective of a more cautious risk appetite given t
Slide 6: Cautious FIU growth given economic backdrop
Cautious FIU growth given economic backdrop Proforma 1 Small increase in FIU: strong SME demand for finance, offset by more IF & Trade Reporting ($m) FY22 FY23 Δ pcp disciplined / cautious underwriting given uncertain economic Key Metrics Year End Funds in Use 167.3 172.8 3% environment Ave. funds i
Slide 7: FIU growth to resume in FY24 with new warehouse
FIU growth to resume in FY24 with new warehouse and operationally efficient segment EF supports IF awareness building and distribution 1 Materially lower originations in FY23 due to funding constraints, Proforma cautious approach to credit and competitive market. Originations EF Reporting ($m) FY22
Slide 8: Balance Sheet remains strong despite credit write-offs and higher ECL provisions
Balance Sheet remains strong despite credit write-offs and higher ECL provisions Net Tangible Asset (NTA) position of $38.7m / 13.3 cps at 30 June 2023 Balance Sheet ($m) FY22 FY23 Δ pcp 1 EOFY cash position of $53.0m; $7.7m restricted cash held in trust for Cash and cash equivalents 52.7 53.0 1 1%
Slide 9: Warehouse refinancing expected to complete in Q1
Warehouse refinancing expected to complete in Q1, bringing substantial benefits Target Structure Facility Cost of Funds Two warehouse structure Size Senior funding provided by two of Australia’s largest banks (I) Invoice Finance and Trade Warehouse 1 Warehouse Facility – Senior $200m Sub-2% + BBSY S
Slide 10: Outlook
earlypay“ Outlook
Slide 11: FY24 NPAT is expected to exceed FY23's underlying proforma earnings
FY24 NPAT is expected to exceed FY23’s underlying proforma1 earnings FY24 Outlook FY24 earnings are expected to exceed FY23’s underlying proforma1 earnings supported by: Lower expected credit losses (proforma $7.6m in FY23) Steady growth in Invoice Finance Funds in Use (FIU) within new single borrow
Slide 12: Refinancing and capital management initiatives to drive EPS growth
Refinancing and capital management initiatives to drive EPS growth Capital Management Refinancing of the primary warehouse in Q1’24 will lower funding costs and release approx. $20m of cash for deployment Board currently considering mix of one or more EPS accretive capital management options: 1 On M
Slide 13: Appendix
earlypay“ Appendix
Slide 14: Earlypay provides secured finance to SME businesses
Employing ~80 people in Sydney, Brisbane and Melbourne, Earlypay provides secured finance to SME businesses Since 2012, Earlypay has become a leading provider of leading provider of Share Price $0.15 business funding solutions to Australian SME businesses Shares on Issue 289.9m Invoice Finance is Ea
Slide 15: SME market still nascent in awareness of invoice financing
The SME market is still nascent in its awareness of invoice financing as a funding alternative • SMEs mainly use banks for funding Our Opportunity • At Jun 23 borrowings were $588bn 2.6m SMEs in Australia 2 Substantial proportion of lending to SME’s is backed by • ~50% of Small Business lending is s
Slide 16: Current economic environment brings challenges and opportunities
Current economic environment brings challenges and opportunities; although RevRoof was an outlier in terms of client size. Earlypay has updated policies and procedures to ensure future asset performance remains robust Top 15 Clients (by funds in use) Following RevRoof administration process, EPY und
Slide 17: Reported results impacted by RevRoof loss and recovery process
Reported results significantly impacted by RevRoof loss and recovery process. Underlying business is robust Profit and Loss ($m) FY22 FY23 1 Average Funds in Use (FIU) up 17% on prior corresponding period (pcp) to Reported Reported Δ pcp $315.1m Year End Funds in Use 317.9 297.4 -6% Average Funds in
Slide 18: Reported to proforma reconciliation
Reported RevRoof Adjustment Proforma Profit and Loss ($m) FY22 FY23 Δ pcp FY22 FY23 FY22 FY23 Δ pcp Year End Funds in Use 317.9 297.4 -6% (21.5) (13.1) 296.4 284.3 -4% Average Funds in Use 269.8 315.1 17% (14.9) (24.9) 255.0 290.2 14% Interest Income 27.2 35.4 30% (1.6) (1.6) 25.6 33.8 32% Interest
Slide 19: IF & Trade Reporting
Reported RevRoof Adjustment Proforma IF & Trade Reporting ($m) FY22 FY23 Δ pcp FY22 FY23 FY22 FY23 Δ pcp Key Metrics Year End Funds in Use 185.4 185.9 0% (18.1) (13.1) 167.3 172.8 3% Ave. funds in use 1 161.5 185.5 15% (12.2) (22.0) 149.3 163.5 10% Invoices purchased (TTV) 2415.2 2655.1 10% (64.0) (
Slide 20: EF Reporting
Reported RevRoof Adjustment Proforma EF Reporting ($m) FY22 FY23 Δ pcp FY22 FY23 FY22 FY23 Δ pcp Key Metrics Year End Funds in Use 132.5 111.5 -16% (3.4) - 129.1 111.5 -14% Ave. funds in use 1 108.3 129.6 20% (2.6) (2.8) 105.7 126.7 20% Loan Originations 98.9 31.9 -68% (3.7) - 95.2 31.9 -67% Interes
Slide 21: Generated positive net operating cash flow of $9.2m for FY23
Generated positive net operating cash flow of $9.2m for FY23 Cash Flow ($m) FY22 FY23 Δ pcp Generated positive cash flow from operating activities despite Receipts 28.8 28.7 0% significant increase in finance costs Interest received from customer 27.2 34.3 26% Payments (30.2) (30.8) 2% Interest rece
Slide 22: Board of Directors and management
Geoffrey Sam OAM, Non-Executive Chairperson Stephen White, Non-Executive Director Qualifications: BCom (UNSW), MHA (UNSW), MA (Econ & Soc Studies) Qualifications: M.Mngt, GAICD (Manchester UK), FAICD Responsibilities: Member of the Risk Committee Responsibilities: Member of the Audit Committee and M
Slide 23: Important notice and disclaimer
This presentation (”this Presentation”) has been prepared by Earlypay Limited [ACN 098 952 277] (“EPY” or the “Company”) and is dated 24 August 2023. Summary information This presentation contains summary information about the current activities of EPY as at the date of this Presentation. The inform