Plenti Group Ltd. · ASX:PLT
Plenti — FY2022 Earnings Presentation
34 slides from Plenti's earnings presentation, May 18, 2022
Slide 1: FY22 Results Presentation
ASX RELEASE Plenti Group Limited (ASX:PLT) Authorised for release by the Board of Plenti Group Limited For more information please contact: Daniel Foggo, CEO, shareholders@plenti.com.au Miles Drury, CFO, shareholders@plenti.com.au Julia Lefort, Corporate Affairs, julia.lefort@plenti.com.au FY22 Resu
Slide 2: Who are we
Who are we Plenti is a technology-led lender We are on a mission • We are Australia’s largest fintech Purpose consumer lender. To bring our customers’ big ideas to life • We deliver market leading customer experiences via our proprietary technology Vision platform. Fairer, faster loans through smart
Slide 3: Highlights, Operational Performance, Financial, Priorities and Outlook
Highlights Operational Performance Financial Priorities and Outlook Results
Slide 4: FY22 highlights
FY22 highlights A transformational year strategically, operationally and financially Key highlights Originations Loan portfolio Interest revenue Pro forma Cash NPAT $1.1bn $1.3bn $87.3m $0.5m +134% yoy +111% yoy +72% yoy $7.1m improvement 90+ arrears 26 bps First automotive First two asset- Entered
Slide 5: Our past priorities achieved
Our past priorities achieved We delivered on our FY22 financial objectives significantly ahead of target Objectives May 20211 Achievement in FY22 Growth Reach $1bn loan book by March 2022 Achieved 4 months early, in November 2021 Profitability Achieve positive monthly Cash NPAT by June 2022 Achieved
Slide 6: Our growth
Our growth Our loan origination growth Loan originations ($m) accelerated in FY22 as we drove market share growth Total lending growth 134% 134% growth Automotive lending growth 177% Cumulative lending since launch >$2.3bn 6
Slide 7: Our profitability
Our profitability Our strong revenue growth drove a shift to positive Cash NPAT Revenue ($m) Cash NPAT ($m) 120 10 100 5 80 0 60 (5) 40 (10) 20 (15) 0 FY20 FY21 FY22 4Q22 FY18 FY19 FY20 FY21 FY22 4Q22 RR Note: “4Q22 RR” represents revenue for the three months from January to March 2022, multiplied b
Slide 8: Our strengths
Our strengths Our strengths drove our continued strong growth in competitive markets • Entrepreneurial, founder-led team with a long term Our people commitment to building Australia’s best lender • Significant breadth and depth of expertise • Modern, end-to-end platform delivers speed, flexibility a
Slide 9: Our positioning for ongoing trends
Our positioning for ongoing trends We remain ideally positioned to exploit positive industry trends Trend Description Plenti positioning • Narrowing driven by technology limitations, capital requirements, and Banks narrowing areas of regulatory issues • Attracting customers that were previously focu
Slide 10: Highlights, Operational Performance, Financial, Priorities and Outlook
Highlights Operational Performance Financial Priorities and Outlook Results
Slide 11: Our automotive finance
Our automotive finance We achieved exceptional growth in our prime automotive lending FY22 highlights Automotive lending ($m) Automotive lending opportunity • Launched commercial automotive loan, $35bn+ approximately doubling the market opportunity 700 – Represented 8% of FY22 automotive lending, an
Slide 12: Our renewable finance
Our renewable finance We accelerated our renewable finance growth and entered significant strategic partnerships. FY22 highlights Renewable energy originations ($m) Renewables finance opportunity • Strong merchant adoption of our BNPL offering 389k 100 • Launched bundled energy (supply, solar, stora
Slide 13: Our personal lending
Our personal lending We continued to attract customers and partners in a fragmented market to our leading digital personal loan offering FY22 highlights Personal lending ($m) Personal lending market opportunity • Enhancement of customer cross-sell capabilities $12bn+ 400 – 25% of borrowers repeat cu
Slide 14: Our technology advancements
Our technology advancements We continued to make strong monthly advancements in our proprietary technology platform, the key driver of our growth Proprietary technology with a difference Selected FY22 highlights Primary impacts Growth Efficiency • Launch of commercial automotive loan, • $45m of new
Slide 15: Our operating leverage
Our operating leverage We continued to demonstrate the benefits of our scale and our technology-led efficiency Cost-to-income Lending per employee (m) Costs-to-originations 100% 8 10% 7 80% 8% 6 H2FY22 44% 5 60% 6% 4 40% 4% 3 2 20% 2% Medium term target 35% 1 0% 0 0% FY19 FY20 FY21 FY22 FY19 FY20 FY
Slide 16: Our credit performance
Our credit performance We continued to demonstrate outstanding credit performance while achieving strong originations growth Net loss rate over time Average customer credit score 90+ days arrears2 2.5% 850 1.00% 2.0% 800 0.80% 1.5% 750 0.60% 1.0% 700 0.40% Indicative big four1 0.5% 650 0.20% 600 0.0
Slide 17: Highlights, Operational Performance, Financial, Priorities and Outlook
Highlights Operational Performance Financial Priorities and Outlook Results
Slide 18: Financial highlights
Financial highlights We drove strong financial results and shifted the business to Cash NPAT profitability Loan portfolio • 134% origination growth driving 105% increase in average portfolio on pcp Growth Revenue • 67% revenue growth to $88.5m, interest revenue up 72% on pcp Cash NPAT • Cash NPAT po
Slide 19: Margins
Margins Our NIM continued to expand, driven by funding cost improvements and our strong credit performance Margin development • Net interest margin expansion of 0.7% on prior year as recent yield trends continued Increasing proportion of automotive – Interest yield declined due to shift in loan port
Slide 20: Profit & loss
Profit & loss We grew revenue strongly and shifted to Cash NPAT profitability • First full year of Cash NPAT profitability achieved, with $0.5m results, made 31 March, $m FY211 FY22 % change up of first half $(2.2)m and second half $2.7m Interest revenue 50.7 87.3 72% • Shift to positive Cash NPAT r
Slide 21: Funding
Funding We significantly expanded our funding capacity in FY22 and remain well placed to fund further loan book growth • Funding sources continued to be diversified Loan portfolio funding ($m) – Executed inaugural ABS transactions for automotive and renewable energy and personal loans, and establish
Slide 22: Highlights, Operational Performance, Financial, Priorities and Outlook
Highlights Operational Performance Financial Priorities and Outlook Results
Slide 23: Our priorities
Our priorities We have set our financial priorities for FY23. FY23 full year priorities First half (H1 FY23) expectations • Recognising a lag between funding cost increases and borrower rate increases, prioritise yield maximisation rather than loan origination growth Growth • Remain on track to achi
Slide 24: Outlook by lending vertical
Outlook by lending vertical We expect favourable industry trends and our own initiatives to drive continued, profitable growth. Our shorter-term focus is on yield maximisation, noting funding cost movements, rather than loan origination growth Automotive lending Renewable energy finance Personal len
Slide 25: Our ambition
Our ambition We’ve set an ambition to achieve a $5bn loan portfolio in calendar 2025 Loan portfolio ($bn) 5 Priorities for achievement 4 1. Deepening presence in existing lending verticals 2. Extending technology leadership 3 3. Building brand & A $5bn loan awareness portfolio represents ~4.6% 4. Pa
Slide 26: Appendices
Plenti Appendices
Slide 27: Cash flow
Cash flow Our operating cashflow for FY22 was $(3.9)m • Overall statutory group operating cash outflow of $3.9m in FY22, ($m) FY21 FY22 compared with $2.9m in FY21 Operating cash flow • Interest income higher than in profit and loss as based on actual cash flows – in P&L, upfront fees are spread ove
Slide 28: Balance sheet
Balance sheet We established a corporate debt facility, adding material flexibility to our funding options • Corporate cash position at 31 March 2022 of $40.0m ($m) 31 Mar 21 31 Mar 22 – $8.1m relates to loan collection accounts which are not available for Assets corporate activities (31 March 2021:
Slide 29: Half-on-half summary P&L
Half-on-half summary P&L 1H22 / 2H22 / ($m, 6 month periods, pro forma1) 1H21 2H21 1H22 2H22 2H21 1H22 Interest revenue 23.9 26.8 36.6 50.6 37% 38% Other income 2.1 0.4 0.6 0.6 65% 10% Total revenue pre transaction costs 26.0 27.2 37.2 51.3 37% 38% Transaction costs (1.0) (1.8) (3.2) (7.7) 83% 139%
Slide 30: Key metrics
Key metrics ($m) 1H20 2H20 1H21 2H21 1H22 2H22 FY20 FY21 FY22 Loan originations ($m) 125.2 161.3 167.0 303.3 472.8 629.5 286.5 470.3 1,102.3 Average term of new originations (months) 53.7 55.9 62.5 61.8 64.8 65.0 52.7 62.1 64.9 Closing loan portfolio ($m) 306.0 380.9 435.1 614.6 915.1 1,299.7 380.9
Slide 31: Lending vertical metrics
Lending vertical metrics ($m) 1H20 2H20 1H21 2H21 1H22 2H22 FY20 FY21 FY22 Loan originations 125.2 161.3 167.0 303.3 472.8 629.5 286.5 470.3 1,102.3 Automotive 19.2 38.4 81.1 149.7 257.7 381.6 57.6 230.8 639.3 Renewable energy 19.4 23.6 28.5 28.7 46.3 51.9 43.0 57.2 98.3 Personal 86.6 99.3 57.5 125.
Slide 32: NPAT to Cash NPAT reconciliation
NPAT to Cash NPAT reconciliation ($m) 1H21 2H21 1H22 2H22 FY21 FY22 NPAT (pro forma) (3.4) (8.5) (7.5) 1.2 (11.9) (6.3) Add: movement in provision for expected losses 1.0 2.2 3.6 3.8 3.1 7.4 Add: share-based payments 0.6 0.9 1.2 1.6 1.4 2.8 Add: depreciation & amortisation 0.4 0.4 0.5 0.6 0.7 1.0 Ad
Slide 33: Disclaimer and important notices
Disclaimer and important notices No recommendation, offer, invitation or advice The material in this presentation is general background information about Plenti Group Limited (the Company) and its subsidiaries, and is current at the date of the presentation, 18 May 2022 The information in this prese
Slide 34: Plenti
Plenti