Plenti Group Ltd. · ASX:PLT
Plenti — H1 2025 Earnings Presentation
38 slides from Plenti's earnings presentation, Nov 20, 2024
Slide 1: 1H25 Results Presentation
ASX RELEASE Plenti Group Limited (ASX:PLT) Authorised for release by the Board of Plenti Group Limited For more information please contact: Adam Bennett, CEO, shareholders@plenti.com.au Miles Drury, CFO, shareholders@plenti.com.au 1H25 Results Presentation Half-year to 30 September 2024
Slide 2: Who are we
Who are we Plenti is a technology-led lender • We’re Australia’s largest fintech consumer lender We’re on a mission • Our Cash NPAT is growing strongly • We leverage our proprietary technology to deliver market leading customer Purpose experiences across To bring our customers’ big ideas to life – A
Slide 3: Our competitive strengths
Our competitive strengths Our competitive strengths underpin our performance Our people Our proprietary technology Our partnership capabilities • Committed growth-focused team • Proprietary end-to-end cloud-native • Modern technology architecture enables • Co-Founders on Executive Team and technolog
Slide 4: Our technology leadership
Our technology leadership Since 2014 Plenti has continued to deploy market leading innovations, winning over 45 industry awards Launch Launch Launch Plenti Launch Plenti Launch Plenti NAB Auto Unsecured Plenti direct to Commercial GreenConnect powered Personal SME Loan 1st bank consumer Auto Launch
Slide 5: Highlights
@ooe0o 80 6 Highlights Operational Performance NAB Strategic Partnership Financial Results Outlook Plenti
Slide 6: Half-year highlights
Half-year highlights We delivered strong growth in profitability and successfully launched the first product under the NAB strategic partnership Highlights Originations Closing loan portfolio Revenue Pro forma Cash NPAT $627m $2.3bn $124m $5.5m +0.4% on pcp +14% on pcp +28% on pcp +260% on pcp Deliv
Slide 7: Sustained growth
Sustained growth We continued our long track record for driving strong loan portfolio and revenue growth Loan portfolio ($m) Revenue ($m) 2,500 140 36% 3-year CAGR 120 2,000 49% 3-year CAGR 100 1,500 80 1,000 60 40 500 20 0 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 1H25 0 1H20 2H20 1H21 2H21
Slide 8: Increasing profitability
Increasing profitability Effective management of loan profitability and credit losses while growing the loan portfolio and managing costs has allowed us to consistently step-up Cash NPAT Cash NPAT ($m) • Cash NPAT result of $5.5m showed growth on both 1H24 ($1.5m) and 2H24 ($4.6m) 10 • Cash NPAT is
Slide 9: Operational Performance
9oeo90 8 86 Highlights Operational Performance NAB Strategic Partnership Financial Results Outlook Plenti
Slide 10: Automotive finance performance
Automotive finance performance We continued to build differentiated partnerships to drive automotive originations 1H25 highlights Automotive loan book ($m) Automotive lending opportunity • $321m of automotive originations, stable on prior 1,400 $35bn+ year despite soft June without tax change 15% gr
Slide 11: Renewable energy finance performance
Renewable energy finance performance We delivered record originations in renewable energy for the 18th straight half 1H25 highlights Renewable energy loan book ($m) Renewable energy opportunity • Record renewable loan originations of $88m up 350 15% on pcp • Loan book for renewable energy grew 28% 3
Slide 12: Personal lending performance
Personal lending performance We continued to deliver significant volume in the personal channel with a high-quality borrower base 1H25 highlights Personal loan book ($m) 8% growth Personal lending market opportunity • Loan book grew 8% on prior year with on pcp $12bn+ originations stable at $218m –
Slide 13: Technology advancements
Technology advancements We have continued to invest to support our partners, including NAB, and to drive growth, efficiency and resilience across the business ‘NAB powered by Plenti’ car loan experience NAB systems integration Deep partner integrations 1. Growth 1. Efficiency Tesla 1. Growth 2. Dive
Slide 14: Operating leverage metrics
Operating leverage metrics We continued to demonstrate the benefits of our scale and our technology-led efficiency Cost-to-income Cost-to-net interest income Average loan portfolio per FTE ($m) 80% 160% 10 9 70% 140% 8 60% 120% 7 50% 100% 6 40% 80% COVID impact 5 COVID impact 4 30% 60% 3 20% 40% 2 1
Slide 15: Credit performance
Credit performance We continued to demonstrate differentiated credit performance Annualised net loss rate1 Average borrower credit score2 • Plenti is a prime lender, focused on lending to borrowers with strong credit characteristics. 3.0% 900 Period end portfolio characteristics included: Decline su
Slide 16: NAB Strategic Partnership
@©oeoo090 86 Highlights Operational Performance NAB Strategic Partnership Financial Results Outlook Plenti
Slide 17: Strategic partnership update
Strategic partnership update The NAB strategic partnership is an exciting opportunity for us to drive further scale in our business and leverage the strength of our technology platform ‘NAB powered Renewable energy finance Commitment and by Plenti’ car and EV loan referrals opportunities • Co-brande
Slide 18: 'NAB powered by Plenti' car and EV loan – update
‘NAB powered by Plenti’ car and EV loan – update We successfully launched our co-branded car and EV loan to NAB customers • Following a successful pilot period with NAB’s employees during 1H25, the NAB powered by Plenti car loan quote activity (monthly) ‘NAB powered by Plenti’ car and EV loan was la
Slide 19: Customer experience
Customer experience We have built a compelling co-branded car loan for the NAB powered by Plenti car and EV loan Fast application, with key NAB customer details pre-populated Easy loan management 19
Slide 20: Financial Results
@©9oeoo0o90 86 Highlights Operational Performance NAB Strategic Partnership Financial Results Outlook Plenti
Slide 21: Financial highlights
Financial highlights Loan book growth, stable margins and losses and operating leverage drove a 260% increase in our Cash NPAT to $5.5m Loan portfolio • 17% increase in average portfolio on pcp Growth Revenue • 28% revenue growth to $124m Cash NPAT • Cash NPAT of $5.5m – up 260% on pcp Margins • Ach
Slide 22: Loan portfolio
Loan portfolio We achieved solid originations in the quarter which drove continued loan book and revenue growth Average loan portfolio ($m) Commentary 17% • Increase in average loan portfolio of 17% from 1H24 to 1H25 and up 6% 6% on prior half • Continued growth in revenue due to loan portfolio grow
Slide 23: Margins
Margins We slightly expanded margin with continued pricing discipline across the portfolio Effective yield (%)1 Commentary • Net interest margin (NIM) for 1H25 was 5.3% or 4.2% post amortisation of transaction costs • Three factors contributed to margin outcome in the period – Continued focus on pro
Slide 24: Credit
Credit Our net loss rate of 1.11% reflected the credit quality of the Plenti portfolio and improving macroeconomic conditions Realised loan impairment expense (%) Commentary • Loss rate of 1.11% in 1H25 was a step up on 1H24 as expected, but stable on 2H24 which was a solid outcome given expected st
Slide 25: Operating efficiency
Operating efficiency Our growth in margin dollars has consistently exceeded cost growth, driving improved business profitability Operating costs vs net interest margin ($) Commentary • The key driver of the improvement in Plenti’s profitability in recent 70 years has been the differential in growth
Slide 26: Profit & loss
Profit & loss We increased Cash NPAT 260% year-on-year demonstrating the earnings capability of the business with a growing loan book and operating cost leverage $m 1H24 1H25 % change • Half-year Cash NPAT of $5.5m, an increase of 260% on prior year • Cash NPAT growth driven by solid loan book growt
Slide 27: Funding
Funding We have a well-established, diverse and scalable funding platform Loan portfolio funding ($m)1 Commentary • Plenti continues to scale its funding program and investor base as the loan 188 portfolio grows with a continued focus on diversity • Plenti’s ABS program now very well established in
Slide 28: Outlook
ooe90890 86 Highlights Operational Performance NAB Strategic Partnership Financial Results Outlook Plenti
Slide 29: Objectives
Objectives We remain on track to deliver on our priorities for the full year FY25 full year priorities 1H25 tracking • Drive growth in loan originations and loan portfolio Growth – October originations were up 26% on prior year ✓ • Deliver full year and half-on-half Cash NPAT growth Profitability •
Slide 30: Appendices
Plenti Appendices
Slide 31: Cash flow
Cash flow We continue to deliver positive operating cash flow and fund loan book growth through effective capital recycling $m 1H24 1H25 • Statutory operating cash flow for 1H25 of $29.1m (1H24: $18.0m) • Corporate cash reduced in the period by $3.3m, but excluding $18.7m Operating cash flow relatin
Slide 32: Balance sheet
Balance sheet We continue to effectively expand our funding base and recycle capital to support growth • Corporate cash position at 30 September 2024 of $41.5m (31 March $m 31-Mar-24 30-Sep-24 2024: $44.8m) Assets – $18.7m relates to loan collection accounts which are not available Cash and cash equ
Slide 33: Half-on-half summary P&L
Half-on-half summary P&L 1H23 / 2H23 / 1H24 / 2H24 / 1H25 / $m, 6 month periods 1H22 2H22 1H23 2H23 1H24 2H24 1H25 2H22 1H23 2H23 1H24 2H24 Interest revenue 36.6 50.6 63.2 78.9 95.9 111.2 121.9 25% 25% 22% 16% 10% Other income 0.6 0.6 0.6 0.8 0.9 3.0 2.4 (7)% 31% 9% 251% (20)% Total revenue pre tran
Slide 34: Key metrics
Key metrics $m H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 FY22 FY23 FY24 Loan originations ($m) 472.8 629.5 558.2 572.8 624.1 577.2 626.7 1,102.3 1,131.0 1,201.3 Average term of new originations (months) 64.8 65.0 64.6 64.2 64.4 63.8 63.8 64.9 64.4 64.1 Closing loan portfolio ($m) 915.1
Slide 35: Lending vertical metrics
Lending vertical metrics $m H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 FY22 FY23 FY24 Loan originations ($m) 472.8 629.5 558.2 572.8 624.1 577.2 626.7 1,102.3 1,131.0 1,201.3 Automotive 257.7 381.6 302.3 269.3 327.6 296.5 320.6 639.3 571.7 624.2 Renewable energy 46.3 51.9 52.6 69.4 76.3
Slide 36: NPAT to Cash NPAT reconciliation
NPAT to Cash NPAT reconciliation $m 1H22 2H22 1H23 2H23 1H24 2H24 1H25 FY22 FY23 FY24 NPAT (7.5) 1.2 2.6 (16.2) 0.6 (15.3) 0.9 (6.3) (13.6) (14.7) Add: ECL provision expense1 3.6 3.8 4.2 10.1 1.5 11.5 (1.7) 7.4 14.3 13.0 Add: Share-based payments 1.2 1.6 1.4 1.9 1.8 1.4 1.5 2.8 3.4 3.2 Add: Deprecia
Slide 37: 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, 20 November 2024. The information in this
Slide 38: Plenti
Plenti