Raiz Invest Ltd. · ASX:RZI
Raiz Invest — Investor Presentation (February 2020)
29 slides from Raiz Invest's investor presentation, Feb 26, 2020
Slide 1: H1'20 Investor Presentation
A mobile-led financial services platform H1’20 Investor Presentation February 2020
Slide 2: Agenda
Agenda 1 Raiz Overview & H1’20 Highlights 3 2 Strategy 11 Raiz Invest Australia 13 Asia Expansion 19 4 FY’20 Outlook 22 5 Appendix 24 2
Slide 3: The Raiz Platform
The Raiz Platform Raiz Invest Micro investment platform with 6 portfolio options Raiz Invest Raiz Super Raiz Rewards in risk weighted ETF’s via: ▪ Lump sum deposits ▪ Recurring deposits ▪ Round-up transactions Raiz Super Invest superannuation on the Raiz Platform in 6 risk weighted portfolios Raiz R
Slide 4: Continued Product Innovation in 2020
Continued Product Innovation in 2020 Raiz bundll Raiz Insure iSelf Offsetters Sapphire Portfolio A digital card that enables An insurance platform that Raiz has partnered with iSelf For just $3.70 a month, half a The Sapphire portfolio is eligible Raiz customers to use provides customers with the He
Slide 5: H1'20 Highlights
H1’20 Highlights Highlights Strong growth in micro investment platform in core Australian market, with Australian platform cashflow positive in last quarter 211,657 $444.7m $3.9m $18.9 +21%¹ +57%¹ +108%¹ +76%¹ The loss after adding back non-cash items amounted to $973,000 (2018: $2,049,000 loss) Act
Slide 6: Raiz business model is not transactional
Raiz business model is not transactional Active Customers grew by 21% on PCP, average revenue per customer grew by 76% on PCP Active Users 300,000 $20 Average Revenue Per User $18.9 Average Active Accounts (half year) Ave. Revenue Per Active Customer (half year) $18 250,000 $16 $14 200,000 $11.7 $10
Slide 7: Solid revenue growth from a diverse base
Solid revenue growth from a diverse base Raiz delivered 108% growth in micro investment platform revenue, driven by increases in active customers and maintenance fees while increasing number of customers $2.4 Quarterly Revenue ($m) $2.0 5% 15% $1.6 14% $1.2 $0.8 66% $0.4 $0.0 Mar-16 Jun-16 Sep-16 De
Slide 8: Portfolio returns
Portfolio returns Raiz achieved positive returns across all portfolios, above the Chant West Benchmark returns Chant West H1’20 Raiz Portfolio Benchmark Conservative 8.98% 8.30% Moderately Conservative 12.24% NA Moderate 15.20% 11.40% Moderately Aggressive 18.21% 14.70% Aggressive 20.51% 17.60% Emer
Slide 9: Profit & Loss
Profit & Loss To be read in conjunction with the Raiz Invest Limited (and controlled entities) Financial Report for the half year end 31 Dec 2019 The consolidated loss attributable to owners of the parent entity after adding back non-cash items such as the cost of the employee share options and amor
Slide 10: Agenda
Agenda 1 Raiz Overview & H1’20 Highlights 3 2 Strategy 11 Raiz Invest Australia 13 Asia Expansion 19 4 FY’20 Outlook 22 5 Appendix 24 10
Slide 11: Well defined strategy to deliver growth
Well defined strategy to deliver growth Australian Growth Strategy 1 Grow customers 2 Grow revenue per customer through products and services 3 Improve customer engagement to increase longevity 4 Increase Customer Lifetime Value Launched Asia Growth Strategy Well Progressed Pipeline 1 Grow customers
Slide 12: Agenda
Agenda 1 Raiz Overview & H1’20 Highlights 3 2 Strategy 11 Raiz Invest Australia 13 Asia Expansion 19 4 FY’20 Outlook 22 5 Appendix 24 12
Slide 13: Micro investing platform growth
Micro investing platform growth Invest spare change, with no minimums, no trade commissions Average Account Balance Average account balances increased by 40% to $1,813 $2,000 $1,813 FUM increased by 75% to +$445m since Dec 2018 $1,000 51% of FUM is made up of account balances of >$10,000 Continued g
Slide 14: Raiz Super has grown rapidly in 18 months
Raiz Super has grown rapidly in 18 months Since launching in July 2018, the Raiz Invest Super FUM has grown to $64 million Customers can contribute to their Raiz Super via the Raiz App Total Superannuation FUM ($m) $70 $64m ▪ SG contributions ▪ Automated recurring voluntary contributions ▪ Raiz Rewa
Slide 15: Raiz Rewards
Raiz Rewards Fashion & Skincare & Food & Accessories Cosmetics Beverage Currently, the Raiz Rewards program has 225 partners Furniture, Homewares Travel & Appliances Technology & Personal & Other Electronics Recreation 15
Slide 16: Raiz Rewards: Momentum accelerating on continued platform enhancement
Raiz Rewards Momentum accelerating on continued platform enhancement Raiz now has 225 established partnerships that fund either a Raiz Rewards is a loyalty program allowing users to generate percentage or fixed dollar cashback on purchases. cash invested into their Raiz Accounts inside and outside A
Slide 17: Raiz bundll MasterCard
Raiz bundll MasterCard Partnership with bundll, a Flexigroup product to provide Raiz customers with digital payment options through ApplePay, Google Pay and other electronic wallets. Raiz bundll will be linked to customers Raiz account and can be used anywhere MasterCard is accepted. Real-time cashf
Slide 18: Agenda
Agenda 1 Raiz Overview & H1’20 Highlights 3 2 Strategy 11 Raiz Invest Australia 13 Asia Expansion 19 4 FY’20 Outlook 22 5 Appendix 24 18
Slide 19: Raiz Invest Indonesia
Raiz Invest Indonesia User sign ups accelerate Activation of monthly management fee delayed while fine tuning functionality and user experience of the Raiz Indonesia platform Marketing program expenditure paused during platform fine tuning 265m 80m 133m Significant potential in Indonesia with over 4
Slide 20: Raiz Invest Malaysia due to launch in FY'20
Raiz Invest Malaysia due to launch in FY’20 In May 2019, Raiz finalised the Joint Venture Agreement (JVA) with its Malaysia partner, Jewel Digital Ventures Sdn Bhd. Jewel is a subsidiary of leading Malaysian investment institution, PNB Equity Resource Corporation Sdn Bhd. 32.6m 29% 25.4m PNB is one
Slide 21: Agenda
Agenda 1 Raiz Overview & H1’20 Highlights 3 2 Strategy 11 Raiz Invest Australia 13 Asia Expansion 19 4 FY’20 Outlook 22 5 Appendix 24 21
Slide 22: FY'20 focus areas
FY’20 focus areas Raiz will focus on growing the domestic business and executing the Asia growth strategy Continue to grow the business and maintain a disciplined focus on costs, allowing the Australian business to be cash flow positive Focused on driving customer growth in core Australian market an
Slide 23: Agenda
Agenda 1 Raiz Overview & H1’20 Highlights 3 2 Strategy 11 Raiz Invest Australia 13 Asia Expansion 19 4 FY’20 Outlook 22 5 Appendix 24 23
Slide 24: Raiz – Market Stats
Raiz – Market Stats $1.20 Volume Share Price 1.0 Top Shareholders¹ Shares (%) Share Price ($) Volume (m) 1 George Lucas & Related Entities 6.8m 9.0% 2 Acorns Grow Incorporated 5.2m 6.9% $0.60 0.5 3 Salter Brothers 4.1m 5.5% 4 HSBC Custody Nominees 3.5m 4.6% 5 Peter Anthony Fay & Related Entities 3.1
Slide 25: Statement of Cashflows
Statement of Cashflows To be read in conjunction with the Raiz Invest Limited (and controlled entities) Financial Report for the half year end 31 Dec 2019 $000’s (extract) H1’19 H1’20 Receipts from customers 3,847 4,708 Anticipate the Australian business to be cash flow positive within FY20 on an Pa
Slide 26: Statement of Financial Position
Statement of Financial Position To be read in conjunction with the Raiz Invest Limited (and controlled entities) Financial Report for the half year end 31 Dec 2019 $000’s (extract) FY'19 H1'20 Comments Assets Cash and cash equivalents 6,815 5,017 Required regulatory capital – approx. $2.3m Trade and
Slide 27: Raiz Invest
Raiz Invest Focusing on delivering financial services and products through mobile phones – the epicentre of our information world Highly engaged and rapidly growing customer base with opportunity to cross sell new products, as well as grow ✔ subscriber revenue to database A well-established platform
Slide 28: Important Information
Important Information Important notice and disclaimer (Important Notice) This presentation has been prepared by Raiz Invest Limited (ACN 615 510 177) (RAIZ). References in this presentation to RAIZ include its group of companies and trusts. In consideration for being given access to this presentatio
Slide 29: www.raizinvest.com.au Investor and Media Enquiries
www.raizinvest.com.au Investor and Media Enquiries: Brendan Malone ir@raizinvest.com.au