Humm Group Limited · ASX:HUM
Humm — Macquarie Australia Conference 2017
25 slides from Humm's conference presentation, May 2, 2017
Slide 1: Macquarie Australia Conference 2017 - Building for Growth
Macquarie Australia Conference 2017 Building for Growth 2 May 2017 1
Slide 2: FXL snapshot
FXL snapshot Diversified Rapidly consumer and growing Cards commercial business lender >20,000 Receivables distribution >$2bn points Attractive ~1.1m financial customers metrics – FY17 across AU, NZ Cash NPAT and Ireland $90-93m 2
Slide 3: FXL key messages
FXL key messages Cards AU growth continues ahead of expectations Funding strategy progressing – expected to enhance ROE and reduce capital consumption Certegy repositioning for growth Well placed to adopt and benefit from new technologies FY17 Cash NPAT estimate updated to $90-93m includin
Slide 4: Connecting buyers and sellers
Connecting buyers and sellers Australia Australia New Zealand New Zealand Certegy Cards Leasing Leasing Cards Retail and Retail point of sale Leasing - Point of Leasing - Point of Retail point of sale homeowner “No Interest Free Cards sale, SME and sale, SME and Interest Free Cards Interes
Slide 5: Segment overview
Segment overview Driving growth in Cards - now makes up 52% of overall FXL receivables Volume by segment Receivables by segment Cash NPAT by segment Combined Cards AU & NZ $1,040m 52% Note: All data refers to continuing operations 5
Slide 6: FY17 Cash NPAT estimate updated
FY17 Cash NPAT estimate updated We previously expected FY17 Cash NPAT to be $90-97m. This was dependant on timing of investments in Oxipay and Ireland projects. We have invested ~$2m in Ireland in this period. In 2H17 we have seen strong growth in AU Cards, although Certegy is behind expectation
Slide 7: Building for growth
Building for growth Build Infrastructure Deliver Identify Build - People Profitable Market Competitive - Product Investment Growth Opportunity Strengths - Processes in Growth and - Partnerships Returns - Systems • Originations process • Funding for growth • Timing difference AU Cards enhancement
Slide 8: Cards AU growth engine
Cards AU growth engine Significant volume and receivables growth as competitive advantages leveraged Growth Outlook Cards AU Volume • Volume growth 1H17 v 1H15 of 105% (43% CAGR) +43% CAGR • Receivables growth 1H17 v 1H15 of 78% (34% CAGR) • Growth driven by leveraging strategic partnerships with ma
Slide 9: NZ Cards – building sales momentum
NZ Cards – building sales momentum Volume and receivables growth underpinned by the launch of two scheme cards Interest free cards finance Growth outlook offered through retail point of sale • FPF acquisition completed during 2H16 New Zealand Cards, $m 1H17 Volume $310m • Business performing in line
Slide 10: Australia Leasing
Australia Leasing Rebuild of Commercial underway with promising pipeline Leasing of IT, electronics and other assets through Growth Outlook Point of Sale, Dealers and Vendors Growth Australia Leasing, $m 1H16 1H17 Commercial v PCP Volume $85m $103m 21% • Rebuild of Commercial product offer progressi
Slide 11: Certegy - establishing a growth strategy
Certegy - establishing a growth strategy Growth Outlook No interest ever payment processing primarily in homeowner sector • Growth strategy being developed - identified 3 strategic Growth Certegy, $m 1H16 1H17 products for release late 2017/18 v PCP Volume $280m $278m (1%) • Key focus on targeted in
Slide 12: Oxipay on track to launch into market Q4 FY17
Oxipay on track to launch into market Q4 FY17 Progress Update Next Steps • Front and back end processes • Integration into online shopping complete utilising existing Certegy carts Q4 FY17 platform • Oxipay branding in market with • Acquisition marketing execution marketing plan complete to accelera
Slide 13: Ireland project on track – go live Q4 FY17
Ireland project on track – go live Q4 FY17 Progress update Next Steps • Operating in Republic since 2008 • Final testing and implementation – go live expected Q4 • Merchant footprint increased from 100 stores to 400 over the last 12 months • Package final elements of application for submission • Sca
Slide 14: Video on technology platform
Video on technology platform Building a scalable technology platform with potential to leverage more broadly across group Note: Video screenshot only 14
Slide 15: FY17 scorecard progress on track
FY17 scorecard progress on track AU Cards Store roll out complete Major contract gained to drive scale in AU scale Volumes and new customer acquisitions ahead of Cards business expectation AU Cards growth utilising available capital Funding Funding strategy being developed to Alternative funding s
Slide 16: Conclusion – building for growth
Conclusion – building for growth Cards AU growth ahead of expectations, leveraging extensive distribution, technology and IP Funding strategy progressing to diversify and strengthen access to funding. Expected to enhance ROE and reduce capital consumption. Certegy repositioning for growth targ
Slide 17: Appendices – 1H17 financials
Appendices – 1H17 financials Section Page Funding overview 18 Cash Flow overview 19 Balance Sheet overview 20 Segment Performance Overview 21 Consolidated Statutory Income Statement 22 Consolidated Statutory Balance Sheet 23 Consolidated Statutory Cash Flows 24 17
Slide 18: Funding
Funding Committed support from banks and institutions, diverse funding sources Funding Structure Funding Facilities ($m) • Continued focus on maintaining an optimised and conservative funding structure 489 503 Dec-16 Drawn $2,054m 177 • Underpinned by multiple committed debt facilities, matched 142
Slide 19: Cash Flow
Cash Flow Strong operating cash flow supports investment into receivables growth Performance Cash Flow Bridge 1H17 ($m) • Cash at bank was $187m as at 31 December 2016 • Operating cash flow generation of the business continues be the major source of funds for investment into receivables growth • No
Slide 20: Balance Sheet
Balance Sheet Redesigning balance sheet to fund growth with optimal leverage Performance Dec-15 Dec-16 FlexiGroup FlexiGroup FlexiGroup FlexiGroup • Recourse Debt/Equity at 82% after increased Sum m arised Balance Sheet excl. SPV's incl. SPV's excl. SPV's incl. SPV's corporate facility drawn down to
Slide 21: Segment Performance Overview
Segment Performance Overview Volume Closing Receivables Cash NPAT 1 Cash NPAT / ANR % Growth Growth Growth Growth 1H16 1H17 1H16 1H17 1H16 1H17 1H16 1H17 v PCP v PCP v PCP v PCP Certegy $280m $278m (1%) $484m $478m (1%) $17.5m $17.6m 1% 7.3% 7.4% 0.1% Australia Cards $161m $238m 48% $271m
Slide 22: Consolidated Statutory Income Statement
Consolidated Statutory Income Statement 22
Slide 23: Consolidated Statutory Balance Sheet
Consolidated Statutory Balance Sheet Excluding SPV's A$ MILLION Dec-15 Dec-16 Dec-15 Dec-16 Assets Cash at bank 137.2 186.5 137.2 186.5 Loans and receivables 1,456.0 2,171.9 138.8 111.9 Allow ance for losses (28.2) (68.8) (28.2) (68.8) Net receivables 1,427.8 2,103.1 110.6 43.1 Other receivables 41.
Slide 24: Consolidated Statutory Cash Flows
Consolidated Statutory Cash Flows A$ MILLION Dec-15 Dec-16 Cash flow s from operating activities Interest and fee income received 182.2 250.2 Payments to suppliers and employees (61.7) (84.3) Interest paid (32.5) (51.5) Income taxes paid (23.4) (13.6) Net cash inflow s from operating activities 64.6
Slide 25: Disclaimer
Disclaimer Important Notice No recommendation, offer, invitation or advice This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in FlexiGroup Limited (“FlexiGroup”) in any jurisdiction.