Wisr Ltd. · ASX:WZR
Wisr — Corporate Update (August 2023)
24 slides from Wisr's corporate update, Aug 24, 2023
Slide 1: Company Update FY23
COMPANY UPDATE FY23 24 August 2023 1
Slide 2: Delivering on FY23 Objectives
KEEPING PROMISES DELIVERING Objectives set for FY23 Outcomes ON FY23 Focus on ✓ Significant reduction in short-term growth → Growth moderated and profitability^ delivered OBJECTIVES near-term aspirations in lending profitability ✓ Uplift of front book yield → June 2023 run-rate new loan origination
Slide 3: Wisr Has a Unique and Differentiated Strategy
WISR HAS A UNIQUE AND DIFFERENTIATED STRATEGY Moderated lending growth Strong balance sheet $495M1 $1.6B1 $931M $200M Wisr well capitalised with in new loan Total loan Wisr loan book ABS transaction, cash balance of originations originations Wisr Independence DIGITAL LENDING Trust 2023-1, $23.1M PLA
Slide 4: Positive Operating Cash Flow Delivered
POSITIVE Operating cash flow1 OPERATING CASH FLOW DELIVERED We responded to changing macroeconomic conditions in FY23 with a series of material operating expense reductions, implemented in Q1FY23 and Q4FY23, while also growing revenue. This has had a materially positive impact, delivering $7.4M of o
Slide 5: Operational Leverage Expansion
OPERATIONAL LEVERAGE EXPANSION ● In FY23 the Company continued on the path to profitability with EBTDA of $(1.6)M, which is a 78% improvement on $(7.2)M in FY23 FY22 Variance FY22 ● The continued operational leverage expansion in the business is Revenue $91.9M $59.4M 55% evidenced through 55% operat
Slide 6: Wisr Loan Unit Economics and NIM Expansion
WISR LOAN UNIT ECONOMICS AND NIM EXPANSION Wisr is well positioned in the medium-term to deliver a business with a NIM of c. 6% 1, which would deliver strong profitability at scale. PRE NIM WISR CURRENT WISR JUNE 2023 SHORT TERM MEDIUM TERM COMPRESSION BUSINESS RUN-RATE TARGET TARGET (2021) RUN-RATE
Slide 7: Net Loan Write-offs and Provisioning
NET LOAN WRITE-OFFS AND PROVISIONING As at 30 June 2023, Wisr had a total ECL provision of 2.9% of the loan Net loan write-offs are 1.59% compared to the 30 June 2023 balances. book and a total credit loss expense (P&L) of 2.4% of the loan book. The increase in FY23 was in line with book maturity, h
Slide 8: Dual Platform Strategy Has Delivered Consistent Growth
DUAL PLATFORM STRATEGY HAS DELIVERED CONSISTENT GROWTH Lending platform growth^ Financial Wellness Platform profile balance ^As previously advised in Q2FY23, Wisr has deliberately moderated loan origination growth to maintain balance sheet strength and prioritise profitability. 8
Slide 9: Wisr's Lending Platform Is Delivering Scale
WISR’S LENDING PLATFORM IS DELIVERING SCALE Wisr YOY loan book balance1 Wisr YOY revenue growth2 1 Loan Book includes all loans in WH1, WH2, Freedom Trust 2021-1, Freedom Trust 2022-1, Independence 2023-1, and balance sheet, excludes off-balance sheet of $8.8M as at 30 June 2023 2 Revenue audited 9
Slide 10: Strong Funding Platform
STRONG FUNDING PLATFORM ● WH1 has $450M of committed funding and an undrawn Funding as at 30 June 2023 capacity of $75M, while WH2 has committed funding of $250M and an undrawn capacity of $75M (total $150M available) ● Wisr has now delivered three ABS transactions - Freedom 2021, Freedom 2022 and I
Slide 11: Capital Position
CAPITAL CAPITAL ASSETS DESCRIPTION POSITION Restricted cash Cash held in the Wisr Warehouses consists of customer loan $31.9M repayments (principal and interest) and unutilised funds from note subscriptions (predominantly third-party debt). Use of these funds is restricted to the purposes of funding
Slide 12: Financial Wellness Platform (FWP)
FINANCIAL WELLNESS PLATFORM (FWP) FOR YOUR SMART PART 12
Slide 13: How Wisr's FWP Supports Customers
FINANCIAL WELLNESS PLATFORM (FWP) HOW WISR’S FWP SUPPORTS CUSTOMERS Where do How do I improve How do I How do I How do I I stand financially? my finances? access credit? manage my loan? keep going? CREDIT MONEY ROUND LOAN REPAYMENT CONTINUED PLATFORM SCORES COACHING UPS OFFER TOOLS ACCESS ● Free acc
Slide 14: Wisr FWP Improves Loan Customers' Financial Health
BACKED BY RESULTS WISR FWP IMPROVES LOAN CUSTOMERS’ FINANCIAL HEALTH Wisr loan customers who engaged with the FWP during FY23 were on The FWP can help loan customers save on interest. average 41%1 further ahead on their loan repayment balance compared to loan customers who didn’t engage with the FWP
Slide 15: Summary
SUMMARY FOR YOUR SMART PART 15
Slide 16: Wisr Delivers Run-Rate Profitability
EXECUTIVE SUMMARY WISR DELIVERS RUN-RATE PROFITABILITY POSITIVE OPERATING CASH FLOW AND FY23 operating cash flow of $7.4M2 and 78% EBTDA improvement (FY23: $(1.6)M2 vs FY22: $(7.2)M). EBTDA IMPROVEMENT DELIBERATE MODERATION OF GROWTH TO Loan origination volume has been deliberately moderated with FY
Slide 17: Questions
QUESTIONS FOR YOUR SMART PART 17
Slide 18: FY23 Audited Financial Results and Appendix
FY23 AUDITED FINANCIAL RESULTS AND APPENDIX FOR YOUR SMART PART 18
Slide 19: Profit and Loss
30-JUN-23 30-JUN-22 % VARIANCE $ $ PROFIT AND LOSS REVENUE Operating income 91,857,224 59,392,199 55% Other income - 31 (100)% ● Operating revenue of $91.9M (FY22: $59.4M), a 55% increase driven by loan book growth and EXPENSES increased yield on new loan origination Employee benefits expense (20,26
Slide 20: Expected Credit Loss Provision
EXPECTED CREDIT LOSS PROVISION The total credit loss expense for FY23 was $22.3M (2.4%), Provision movement Jul 2022 - Jun 2023 representing $7.8M of incremental provisions and $14.5M of net losses ($17.5M gross losses net of $3.0M recoveries). As at 30 June 2023, the total provisions held are $26.7
Slide 21: Balance Sheet
30-Jun-23 30-Jun-22 $ $ ASSETS BALANCE SHEET Cash and cash equivalents Trade and other receivables 53,576,843 2,031,621 71,489,070 1,065,176 Loan receivables 909,217,193 764,838,727 ● Well capitalised with cash of $53.6M ($21.7M Property, plant and equipment 279,576 487,866 unrestricted cash and $1.
Slide 22: Cash Flow
30-Jun-23 30-Jun-22 $ $ Cash flows from operating activities CASH FLOW Receipts from customers 88,930,737 56,963,941 Payments to suppliers and employees (inclusive of GST) (38,780,698) (43,012,102) 50,150,039 13,951,839 Interest received 666,338 19,473 Management fees received 290,529 643,750 ● Net
Slide 23: Thank You
THANK YOU ASX: WZR Level 4, 55 Harrington St, The Rocks, NSW 2000 ABN 80 004 661 205 1300 992 007 23
Slide 24: Disclaimer
DISCLAIMER No investment advice or offer of shares presentation is based or the accuracy, completeness or reliability of the information contained in this presentation. This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose in any shares of