Slide 1: FY22 Annual Results Presentation
Beforepay Group Limited ASX:B4P FY22 Annual Results Presentation 31 August 2022
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters (‘Forward Statements’). Forward Statements can generally be identified by the use of forward-looking words such as “anticipate”, “es
Slide 3: What we do
What We consider ourselves to be Provide short- A fixed we do. A leading term finance fee of 5% provider of to working on the amount Pay on Australians advanced, with no Demand filling a gap in the market for interest or late fees. Beforepay provides users with a service to services in Australia (no
Slide 4: Our Strategy
Our Strategy
Slide 5: Pay on Demand—a better way
Pay on Demand—a better way People, especially Millennials, don’t want revolving debt. They don’t want long term debt at all – they find it hard to manage. And they certainly don’t want to pay interest. Pay on Demand is the ethical, customer-friendly approach that allows them access to money they’ve
Slide 6: What makes us different
What makes us different Low, flat, and transparent fee: We charge 5% on the amount advanced, with nothing more to pay. No late fees, no rapid-payment fees, no subscriptions, no tips, no interest incurred. Funds available instantly. The money is in your bank account in less than one minute. Best-in-c
Slide 7: Our mission
Our mission To support working Australians Help customers Grow quickly Create value • Advance money to • Accelerate customer • Maintain or decrease our customers in an acquisition and dollar-weighted ethical and increase throughput defaults responsible way to • Launch new channel • Achieve profitabi
Slide 8: Business update
C Business update
Slide 9: FY22 Highlights
FY22 HIGHLIGHTS Pay Advances of $327.3m up Positive Net transaction Net transaction loss down to 2.4% 252% margin at 1.1% from 5.2% in FY21, driven by of Pay Advance fee income in ongoing refinements to the risk in FY22, driven by new model, customer limit management customer acquisition and FY22 vs
Slide 10: FY22 Highlights: Key Metrics
FY22 HIGHLIGHTS Key Metrics H2 FY22 H1 FY22 % Change FY22 FY21 % Change Platform Metrics Pay advances ($m) 195.3 132.0 48.0% 327.3 93.0 251.9% Average pay advance ($) 291.2 240.5 21.1% 268.4 163.2 64.5% Active Users (no. of users) 173,398 139,071 24.7% 173,398 102,621 68.9% Financial Metrics Beforep
Slide 11: Total and Average Pay Advances - incremental growth in Pay Advances
Total and Average Pay Advances - incremental growth in Pay Advances Total Pay Advances by Average Pay Advance by quarter quarter +138% +57% $107M $88M $77M $55M $45M $28M $17M $3M Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Certain financial metrics and information included throu
Slide 12: Rapid growth in active users - 173,398 Active Users or 69% in FY22
Rapid growth in active users Active Users - 173,398 Active Users or 69% in FY22 by quarter +69% 95% of customers who have successfully repaid their first Pay Advance have taken out a second Pay Advance Note: Certain financial metrics and information included throughout this presentation are not reco
Slide 13: Net Transaction Margin (NTM) – achieved positive NTM within 24 months of launch
Net Transaction Margin (NTM) – achieved positive NTM within 24 months of launch Net Transaction Margin by quarter - $m Note: Certain financial metrics and information included throughout this presentation are not recognised under the Australian Accounting Standards and are classified as ‘non-IFRS fi
Slide 14: Declining Trend in Loan Defaults
Declining Trend in Loan Defaults - demonstrating consistent improvement in credit quality H2 FY21 H2 FY22 4.6% gross 4.6% net 2.9% gross 2.0% net Gross and Net transaction loss % by quarter 9.0% 9.0% 7.2% 7.2% 5.3% 5.2% 4.0% 3.6% 3.8% 3.1% 3.1% 2.9% 3.2% 2.7% 2.2% 1.8% Gross transaction loss % (of P
Slide 15: Funding Costs - Credit loan facility
Funding Costs - Credit loan facility - Low sensitivity to rising interest rates On current funding arrangements, our funding costs are less than 10% of Beforepay income for the average pay advance A 1% increase in the costs of our loan facilities 20 days 11.77% 80% results in only 4 basis points inc
Slide 16: Direct service costs - continue to be tightly managed
Direct service costs - continue to be tightly managed Direct costs per Pay advance by H1 FY21 H1 FY22 H2 FY22 quarter 2.2% of Pay advances 0.7% of Pay advances 0.4% of Pay advances Direct service costs include the cost of services involved in facilitating Pay advances to customers: data collection,
Slide 17: Balance sheet - Strong Cash and Equity Position
Balance sheet - Strong Cash and Equity Position $ FY22 FY21 % Change Commentary Change $m Cash position reflects loan utilized and collection of loan Cash position 28.4 10.0 18.4 184% receivable balances Receivables 27.3 9.7 17.6 181% Growth in loan book and level of pay advances Other assets 2.2 2.
Slide 18: Cashflow Statement
Cashflow Statement Operating, Investing and Financing Activities (FY22 and FY21) FY22 FY21 Cash flows from operating activities $m Receipts from repayment of customers 300.7 80.7 advances Receipts of Beforepay income 15.3 4.5 Payments to suppliers and employees (23.9) (13.0) Advances to customers (3
Slide 19: Our Pathway to profitability
Our Pathway to profitability
Slide 20: Our Pathway to Profitability
Net Monthly Pay advances per month X Transaction Margin % ≥ operating expenses Our Active users Revenue % Monthly overheads Pathway to Profitability/ X - + Breakeven Pay Advances Net Monthly per AU per transaction marketing month loss expense X - Average Funding pay costs advance - Direct costs 20
Slide 21: FY22 - Net Transaction Margin and Pathway to Profitability by Quarter
FY22Q4 FY22Q3 FY22Q2 FY22Q1 FY22 Pay advances ($m) $107.3 $87.9 $77.1 $55.0 $327.3 Fees ($m) $5.4 $4.4 $3.8 $2.7 $16.4 PA + fee ($m) $112.7 $92.3 $80.8 $57.8 $343.6 FY22 - Net Average pay advance ($) $299 $282 $260 $217 $268 Transaction Active users 173,398 158,269 139,071 121,996 173,398 Margin and
Slide 22: What comes next
What Seek to maintain growth Identify opportunities comes in Australia with existing to work with channel direct-to-consumer partners for additional acquisition model B2C and B2B customer next acquisition Constrain costs and Continuous drive towards improvement of risk profitability models, product,
Slide 23: Q&A
Beforepay Group Limited ASX:B4P Q&A
Slide 24: Glossary
Glossary Term Definition Term Definition 1 of 3 Active users Customers of Beforepay who have taken out an advance in the previous Direct costs as Direct service costs in facilitating Pay advances to customers divided by 12 months from the relevant date. This includes customers who have not % (of Pay
Slide 25: Glossary
Glossary Term Definition Term Definition 2 of 3 G&A and other Occupancy expenses, Professional and consultancy expenses, Software Net transaction Beforepay income less the variable costs associated with expenses licenses, Technical suppliers, and Other expenses (all from the half-year margin facilit
Slide 26: Glossary
Glossary Term Definition Term Definition 3 of 3 Pay advance An a dva nce made or offered by Beforepay to a user. Third party “Financing costs” related to the cash interest costs of funding Pay funding costs or advances through drawing on the third-party debt facility. Pay advances or The a ggregate
Slide 27: Thank you
Beforepay Group Limited ASX:B4P Thank you
Slide 28: Appendix
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Slide 29: Management Profit & Loss - June 2022
Management Profit & Loss - 30 June 2022 A$, unless otherwise stated FY22 A$, unless otherwise stated FY22 Beforepay income 15,275,910 EBITDA, excluding one-off and/or significant items (19,472,371) [A] Gross transaction loss (10,520,713) Gross transaction loss % (of Pay advances inclusive of Depreci
Slide 30: NTM reconciliation to statutory profit & loss
NTM reconciliation to statutory profit & loss Management P+L – Income to Net transaction margin Statutory Profit and Loss Reference to A$, unless otherwise stated FY22 A$ Statutory P&L 12mths 30-Jun-22 statutory Profit and loss Beforepay income 15,275,910 1 Beforepay income Revenue Beforepay income
Slide 31: FY22 EBITDA reconciliation to Statutory profit and loss statement
FY22 EBITDA reconciliation to Statutory profit and loss statement Management Profit & Loss – Net transaction margin to EBITDA Statutory Profit and Loss A$ Statutory Profit & Loss 12mths to FY22 12 mths to Reference to statutory Profit and loss Revenue A$, unless otherwise stated FY22 Beforepay i nco
Slide 32: Key financial metrics (H2 FY22 v H2 FY21 - prior year)
Key financial metrics (H2 FY22 v H2 FY21- prior year) A$, unless otherwise stated H2 FY22 H2 FY21 Variance $ FY22 FY21 Variance $ H2 FY22 commentary Income driven by increase in Pay Beforepay income $m [1] 9.3 3.5 5.8 15.3 4.5 10.8 Advances and volume, average PA increase from Q4-22 of 26% from PY G