Pepper Money Ltd · ASX:PPM
Pepper Money — Investor Day (November 2021)
49 slides from Pepper Money's investor day presentation, Nov 25, 2021
Slide 1: Pepper Money Limited Investor Day Presentation
Pepper Money Limited I N V E S T O R D AY P R E S E N TAT I O N N o ve m b e r 2 5 th 2 0 2 1 Copyright 2021 Pepper Money Limited. Confidential.
Slide 2: Agenda
P E P P E R M O N E Y 2 0 2 1 I N V E S T O R D A Y AGENDA Topic Presenter Time 1. About Pepper Money Mario Rehayem 10.05am - 10.30am Break 2. Product & Distribution Barry Saoud & Ken Spellacy 10.40am - 10.50am 3. Operations & Service Matthew Tinker 10.50am - 11.00am 4. Digital & Technology Steven M
Slide 3: About Pepper Money
About Pepper Money Mario Rehayem, Chief Executive Officer 3 Copyright 2021 Pepper Money Limited. Confidential.
Slide 4: One of Australia's leading non-bank lenders with a mission to help people succeed
A B O U T P E P P E R M O N E Y One of Australia’s leading non-bank lenders with a mission to help people succeed. • A leader in non-bank • Strong growth • 20+ years of • Digitally-enabled finance with an record and purpose-built distribution tools, established and proven underlying historical data
Slide 5: Pepper's mission is to help people succeed
A B O U T P E P P E R M O N E Y Pepper’s mission is to help people succeed This is possible because of the core values at the heart of our brand: CAN DO BALANCED REAL We are ambitious and entrepreneurial, so we We come with considerable experience; we We respect people and are totally honest with lo
Slide 6: Pepper Money's strategy
A B O U T P E P P E R M O N E Y Pepper Money’s strategy Pepper Money’s strategy is to be one of Australia and New Zealand’s leading non-bank lender by living by its mission: to help people succeed. Pepper Money has four key pillars to support its strategy focused on Customer, Business, People and Br
Slide 7: Our core competencies
A B O U T P E P P E R M O N E Y Our core competencies UNDERSERVED CREDIT EXPERTISE CUSTOMER SEGMENTS 6 in 10 20+ years eligible non-conforming Underwriting history borrowers did not get a loan Comprehensive understanding Product proposition designed for underserved and undervalued Data Data of consu
Slide 8: Large addressable market
A B O U T P E P P E R M O N E Y Large addressable market MORTGAGES ASSET FINANCE 1 September 2021 Total Addressable Pepper Money has significant Market (AUM) $2,280bn ¹ $186bn 88% Conforming Consumer: $59bn⁴ headroom in 12%2 Non-Conforming Commercial: $127bn⁵ its core markets, and the proven Pepper
Slide 9: Australia's non-bank lending sector
A B O U T P E P P E R M O N E Y Australia’s non-bank lending sector Pepper Money provides flexible financial solutions across property, asset finance and personal lending in a growing market sector Pepper Money solutions Residential Motor Vehicle Equipment Commercial Personal Credit Cards Buy Now Pa
Slide 10: Our focus for delivering growth
A B O U T P E P P E R M O N E Y Our focus for delivering growth D I G I TA L & T E C H N O L O G Y CUSTOMER & BRAND Accelerating our digital strategy using our Enriching the customer experience strengths in data insights & automation, through product design and engagement, making it easier to do bus
Slide 11: Experienced Executive Team
A B O U T P E P P E R M O N E Y Experienced Executive Team Pepper Money has a dedicated, focused executive team with the experience and proven track record, both at Pepper Money and externally, to continue to grow and drive the business Mario Rehayem Chief Executive Officer Industry Years | Pepper Y
Slide 12: Product & Distribution
Product & Distribution Barry Saoud, General Manager Mortgages & Commercial Lending Ken Spellacy, General Manager Asset Finance 12 Copyright 2021 Pepper Money Limited. Confidential.
Slide 13: Enabling customers and partners to succeed
P R O D U C T & D I S T R I B U T I O N - M O R T G A G E S Enabling customers and partners to succeed CUSTOMER EXPERIENCE & BRAND D I G I TA L & T E C H N O L O G Y • Award winning non-bank lender across multiple • 13,206 customers offered a solution through PPS⁴ categories¹ • Data driven insights
Slide 14: Design and distribution
P R O D U C T & D I S T R I B U T I O N - M O R T G A G E S Design and distribution 4 Direct to Consumer/ Online Channel (Pepper Direct) Mortgages Australia Strategy Distribution Base Distribution 1H CY2021² • Increasing Pepper’s • Diversified distribution Distribution White Label relevance to broke
Slide 15: Product offering
P R O D U C T & D I S T R I B U T I O N - A S S E T F I N A N C E Product offering Finance for a range of asset types for consumer, Why do introducers choose Pepper Asset Finance? commercial and novated customers: Relationship Ease of doing business Pepper Asset Finance knows the Pepper Asset Financ
Slide 16: Making it easier to do business with us
P R O D U C T & D I S T R I B U T I O N - A S S E T F I N A N C E Making it easier to do business with us CUSTOMER EXPERIENCE & BRAND D I G I TA L & T E C H N O L O G Y • Product NPS 38+ compared to 22+ total market1 • Platform supporting all products and originations • 81% of customers satisfied ve
Slide 17: Distribution
P R O D U C T & D I S T R I B U T I O N – A S S E T F I N A N C E Distribution Online Auto Commercial Car OEM Mortgage Brokers Brokers Dealerships Bespoke finance Brokers Support for brokers solutions for Asset Accredited² Brokers Services for SME Options typically Providing diversity of needing an
Slide 18: Strategic partnership with DLL increases market opportunities
P R O D U C T & D I S T R I B U T I O N – A S S E T F I N A N C E Strategic partnership with - increases market opportunities Partnership creates comprehensive wholesale & retail offering Two leading finance companies joining forces to 2 Expands distribution solve for a genuine gap in the asset fina
Slide 19: Operations & Service
Operations & Service Matthew Tinker, Chief Service Officer 19 Copyright 2021 Pepper Money Limited. Confidential.
Slide 20: Equipping our people to help our customers succeed
O P E R AT I O N S & S E R V I C E Equipping our people to help our customers succeed CUSTOMER & BRAND D I G I TA L & T E C H N O L O G Y • Customer Effort Score improvement to +581 • New automated communication strategies have • NPS improvement across all our product platforms of saved over 280 hou
Slide 21: Reimagining customer experiences connected by Apollo
O P E R AT I O N S & S E R V I C E Reimagining customer experiences connected by Apollo Customer • 280 hours¹ per month saved on Solutions average Improving customers experience by • 50k+ transactions² processed simplifying interactions automatically Customer Assist • Up to 30% reduction³ in cost to
Slide 22: Creating a universal digital platform
O P E R AT I O N S & S E R V I C E Creating a universal digital platform EMPLOYEE CUSTOMER EXPERIENCE EXPERIENCE UNIVERSAL DIGITAL PLATFORM MULTI EXPERIENCE Increased automation Increased self- and a simplified service capabilities platform for our people for our customers Increased channel capabili
Slide 23: Digital & Technology
Digital & Technology Steven Meek, Chief Information Officer 23 Copyright 2021 Pepper Money Limited. Confidential.
Slide 24: Our technology continues to enable scalable efficient growth
D I G I T A L & T E C H N O L O G Y Our technology continues to enable scalable efficient growth MORTGAGES MORTGAGES Pepper Product Pepper Resolve Pepper Sage – Underwriting Selector 13,206 5,320 21% System Automation Customers offered a solution¹ Customers provided a embedded of simple application⁶
Slide 25: Accelerating our digital transformation
D I G I T A L & T E C H N O L O G Y Accelerating our digital transformation Sage direct digital Solana Solana mortgage commercial introducer loan ecosystem My Pepper direct Solana Money Solana API integration enhanced customer service loan self-service integration Apollo Launched Sage full automatio
Slide 26: Purpose built, scalable and secure
D I G I T A L & T E C H N O L O G Y Purpose built, scalable and secure P L AT F O R M S M E T H O D S A N D C U LT U R E EASIER TO DO Leveraging an industry By pivoting to new ways of working and rapid platform development BUSINESS leading rapid development we have achieved 77% reduction in lead tim
Slide 27: Customer Experience & Brand
Customer Experience & Brand Sarah Pikardt, General Manager Marketing & Brand 27 Copyright 2021 Pepper Money Limited. Confidential.
Slide 28: Purpose-driven brands impact profitability
C U S T O M E R E X P E R I E N C E & B R A N D Purpose-driven brands impact profitability • 73% think brands must act • Purpose driven brands NOW for the good of society outperform the market and planet • Purpose is a core • 53% are ready to pay more for differentiator thar means a brand that takes
Slide 29: Activating our mission to help people succeed matters
C U S T O M E R E X P E R I E N C E & B R A N D Activating our mission to help people succeed matters Pepper Money has helped over 250,000 customers1 Our Brand can authentically activate our mission to continue to help people succeed beyond our loan options across whole-of-life customer journey and
Slide 30: Delivering an integrated whole-of-life customer experience
C U S T O M E R E X P E R I E N C E & B R A N D Delivering an integrated whole-of-life customer experience Data driven audience targeting Personalised digital Integrated brand and CX experiences approach • Strategic alignment across key business initiatives – Financial Demographic B2B & B2C. Data Da
Slide 31: Helping people succeed and making a real-life difference
C U S T O M E R E X P E R I E N C E & B R A N D Helping people succeed and making a real-life difference CUSTOMER & BRAND D I G I TA L & T E C H N O L O G Y • Increase brand awareness to be recognised as the • Accelerate roll out of digital tools to drive customer trusted leading non-bank lender eng
Slide 32: Funding
Funding Anthony Moir, Treasurer 32 Copyright 2021 Pepper Money Limited. Confidential.
Slide 33: Diversified funding strategy supporting growth
F U N D I N G Diversified funding strategy supporting growth S E C U R I T I S AT I O N P R O G R A M M E ESG CREDENTIALS • Most active non-bank issuer in 2021 raising $4.0bn • First non-bank lender to issue Green Bonds in 5 public transactions1 • Leading Electric Vehicle originator • Base of over 1
Slide 34: People & Diversity
People & Diversity Sue Kent, Chief Human Resource Officer Michael Vainauskas, Chief Risk Officer 34 Copyright 2021 Pepper Money Limited. Confidential.
Slide 35: 2021 People & Diversity
P E O P L E & D I V E R S I T Y 2021 People & Diversity 73 of our people promoted¹ into 24 18% Different new roles cultures² 41 transferred or of all employees² 57 seconded¹ into identify new opportunities as LGBTQIA+ different languages² spoken Engaged employees³ 22 different Engaged employees³ Man
Slide 36: Copyright 2021 Pepper Money Limited. Confidential.
36 Copyright 2021 Pepper Money Limited. Confidential.
Slide 37: Closing Remarks
Closing Remarks Mario Rehayem, Chief Executive Officer Therese McGrath, Chief Financial Officer 37 Copyright 2021 Pepper Money Limited. Confidential.
Slide 38: Our strategic priorities to deliver long-term shareholder value
C L O S I N G R E M A R K S Our strategic priorities to deliver long-term shareholder value CUSTOMER BRAND • Accelerate product innovation • The trusted leading non-bank lender • Deliver product solutions that build customer value • Deliver above industry average customer and • Drive our customer re
Slide 39: Delivering on our commitments
C Y 2 0 2 1 Pepper Money expects Pro Forma NPAT of $135 - $138 m m, Delivering on our exceeding IPO Prospectus forecast for CY2021 Pro-forma NPAT of commitments $120.7 million Our mission is O R I G I N AT I O N S A S AT 3 1 O R I G I N AT I O N S E S T I M AT E to help people OCTOBER 2021 FOR CY202
Slide 40: Q&A
Q&A 40 Copyright 2021 Pepper Money Limited. Confidential.
Slide 41: Thank you
THANK YOU on behalf of all of Pepper Money S T AY SAFE Copyright 2021 Pepper Money Limited. Confidential.
Slide 42: Executive Team Bios
Executive Team Bios 42 Copyright 2021 Pepper Money Limited. Confidential.
Slide 43: Executive Team: Mario Rehayem and Therese McGrath
P E P P E R M O N E Y Executive Team Mario Therese Rehayem McGrath Chief Executive Officer Chief Financial Officer • Joined Pepper Money in 2011 • Joined Pepper Money in 2018 Appointed CEO of Pepper as CFO Money in 2017 • Over 25 years of international • Over 18 years experience experience in financ
Slide 44: Executive Team: Barry Saoud, Ken Spellacy, Matthew Tinker
. P E P P E R M O N E Y Executive Team Barry Ken Matthew Saoud Spellacy Tinker General Manager – Asset General M a n a g e r – Chief Service Finance Mortgages & Commercial Officer Lending • Joined Pepper Money in 2021 • Joined Pepper Money in 2015 • Joined Pepper Money in 2011 • Over 20 years’ exper
Slide 45: Executive Team: Steven Meek, Sarah Pikardt, Anthony Moir
P E P P E R M O N E Y Executive Team Steven Sarah Anthony Meek Pikardt Moir Chief Information Officer General Manager, Treasurer Marketing & Brand • Joined Pepper Money in • Joined Pepper Money in 2011 • Joined Pepper Money in 2021 October 2021 • Sarah leads the marketing • Anthony is responsible fo
Slide 46: Executive Team: Sue Kent, Michael Vainauskas, John Williams
P E P P E R M O N E Y Executive Team Sue Michael John Kent Vainauskas Williams Chief Human Resource Chief Risk General Counsel & Officer Officer Company Secretary • Joined Pepper Money in 2009 • Joined Pepper Money in 2020 • Joined Pepper Money in 2012 • Sue leads the human • Michael is responsible
Slide 47: Disclaimer
Disclaimer 47 Copyright 2021 Pepper Money Limited. Confidential.
Slide 48: Disclaimer
Disclaimer Summary information Certain figures, amounts, percentages, estimates, calculations of value and fractions provided in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures This Presentation contains summar
Slide 49: Investor Relations
Investor Relations Catherine Buckmaster T +61 2 7227 3879 E cbuckmaster@pepper.com.au Media Relations For more information visit Domestique Consulting www.pepper.com.au Helen Karlis M +61 (0) 419 593 348/ E helen@domestiqueconsulting.com.au Celia Moore M +61 (0) 432 344 069 E celia@domestiqueconsult