Raiz Invest Ltd. · ASX:RZI
Raiz Invest — H1 2021 Earnings Presentation
27 slides from Raiz Invest's earnings presentation, Feb 24, 2021
Slide 1: H1'21 Investor Presentation
For personal use only A mobile-led financial services platform H1’21 Investor Presentation 24 February 2021 Raiz Invest Limited (ASX: RZI) Level 11, 2 Bulletin Place, Sydney NSW 2000 Announcement Authorised by: George Lucas (Managing Director)
Slide 2: Agenda
Agenda For personal use only 1 Raiz Overview & 1H’21 Highlights 3 2 Strategy 8 Raiz Invest Australia 10 Asia Expansion 17 4 FY’21 Outlook 20 5 Appendix 23 2
Slide 3: 1H FY'21 Highlights
1H FY’21 Highlights Highlights For personal use only Continued customer and revenue growth despite challenging conditions due to COVID pandemic. 343,573 $605.6m $4.7m +53.6%^ +33.5%^ +19.6%* 59.1% Acquiring financial services customers online, is what we do well, with a CAC of AU$10.03 per Active Au
Slide 4: Revenue Model
Revenue Model Raiz charges a range of different fees, dependent on the type of portfolio a customer chooses, the amount of FUM held in the portfolio For personal use only and the country that the customer is using the platform Conservative to Aggressive Portfolio Emerald Portfolio Sapphire Portfolio
Slide 5: Solid revenue growth from increasingly diverse base
Solid revenue growth from increasingly diverse base Raiz delivered 19.6% growth in micro investment platform revenue on PCP, driven by increases in active customers and fees per customer For personal use only Micro Investment Platform Revenue ($m) $6.0m 6% $4.0m 15% 16% $2.0m 63% $0.0m H2'17 H1'18 H
Slide 6: Profit & Loss
Profit & Loss To be read in conjunction with the Raiz Invest Limited (and controlled entities) Financial Report for the half year end 30 Dec 2020 For personal use only The consolidated loss attributable to owners of the parent entity after adding back items such as the cost of the employee share opt
Slide 7: Agenda
Agenda For personal use only 1 Raiz Overview & H1’21 Highlights 3 2 Strategy 8 Raiz Invest Australia 10 Asia Expansion 17 4 FY’21 Outlook 20 5 Appendix 23 7
Slide 8: Group Strategy
Group Strategy Raiz continues to expand into multiple geographies and increasing its global footprint For personal use only Australian Growth Strategy 1 Grow active customers 2 Grow revenue per customer through products and services Thailand Targeting 2H’21 launch of Beta Product 3 New product & ser
Slide 9: Agenda
Agenda For personal use only 1 Raiz Overview & H1’21 Highlights 3 2 Strategy 8 Raiz Invest Australia 10 Asia Expansion 17 4 FY’21 Outlook 20 5 Appendix 23 9
Slide 10: Raiz business model is a function of growth of active customers and revenue per customer
Raiz business model is a function of growth of active customers and revenue per customer Active Customers continue to grow For personal use only Average Revenue Per User 350k $25 Active Users Average Active Accounts (half year) Average Revenue Per User (Half Year) 300k $20.32 $20 250k 230k 220k $15
Slide 11: Australian Micro investing platform growth
Australian Micro investing platform growth Invest spare change, starting from as little as $5, with no brokerage fee For personal use only $3,000 Average Account Balance Continued growth in average account balances to $2,224 (H1’20: $1,813) despite market uncertainty $2,224 created by COVID $2,000 F
Slide 12: Raiz Super has grown rapidly in months
Raiz Super has grown rapidly in 24 months For personal use only Since launching in July 2018, Raiz Invest Super FUM has grown to $81m at H1’21 end Early Release super saw $13m withdrawn between 1st April 2020 and 31st December Total Superannuation FUM ($m) $100 2020 $81m Customers can contribute to
Slide 13: Raiz Rewards
Raiz Rewards Raiz Rewards revenue was initially affected by the onset of COVID but this is now continuing to improve, advertising revenue grew For personal use only to $0.7m in H1’21 +28% on both PCP and H2’20 respectively Select Rewards Partners Raiz Rewards is a loyalty program allowing users to g
Slide 14: Raiz Customers – Survey Results
Raiz Customers – Survey Results Raiz customers appear to have a very high level of satisfaction because they are very likely to recommend Raiz to others For personal use only Half of our customers rate their overall satisfaction as ‘very Customers are likely to recommend Raiz. Raiz has a high Net go
Slide 15: Raiz Customers – Survey Results
Raiz Customers – Survey Results Many Raiz customers started their investing journey with us, we have focussed on engaging strongly with our customers For personal use only Two thirds of Raiz users (65%) started their investing journey Impact of market volatility on savings and investing activity. wi
Slide 16: Agenda
Agenda For personal use only 1 Raiz Overview & H1’21 Highlights 3 2 Strategy 8 Raiz Invest Australia 10 Asia Expansion 17 4 FY’21 Outlook 20 5 Appendix 23 16
Slide 17: Raiz Invest Indonesia
Raiz Invest Indonesia Focus on user sign ups to accelerate growth For personal use only Over 79,000 active customers as at Strategic Pathway January 31 2021 Due to different culture and level of wealth Raiz has introduced a Rp. 3,000 (~AU$0.30) deposit transaction fee in Personal Indonesia Build Pla
Slide 18: Raiz Invest Malaysia
Raiz Invest Malaysia Focus on user sign ups to accelerate growth For personal use only Over 46,000 active customers as at January Strategic Pathway 31 2021 Targeted sign ups of 60,000 for Dec 2020 was far exceeded, with 162,000 sign ups achieved. Personal Build Platform Full-scale Round Ups Raiz Rew
Slide 19: Agenda
Agenda For personal use only 1 Raiz Overview & H1’21 Highlights 3 2 Strategy 8 Raiz Invest Australia 10 Asia Expansion 17 4 FY’21 Outlook 20 5 Appendix 23 19
Slide 20: FY'21 Focus Areas
FY’21 Focus Areas For personal use only Raiz strategy remains the same - focusing on growing the domestic business and executing the Asian growth strategy Continue to grow the business in all geographies and maintain a disciplined focus on costs Focused on driving customer growth at a low cost of cu
Slide 21: Raiz Invest – Key investment highlights
Raiz Invest – Key investment highlights Focusing on delivering financial services and products via mobiles For personal use only Continue to execute on the existing strategy that has provided growth in customers and revenue from a highly ✔ engaged customer base with opportunity to cross sell new pro
Slide 22: Agenda
Agenda For personal use only 1 Raiz Overview & H1’21 Highlights 3 2 Strategy 8 Raiz Invest Australia 10 Asia Expansion 17 4 FY’21 Outlook 20 5 Appendix 23 22
Slide 23: Raiz – Market Stats
Raiz – Market Stats Share Price & Volume Top Shareholders¹ Shares (%) For personal use only $2.50 1.5m 1 George Lucas & Related Entities 6.8m 9.0% $2.00 2 Acorns Grow Incorporated 5.8m 7.8% 1.0m $1.50 3 HSBC Custody Nominees 5.2m 6.9% $1.00 0.5m 4 Peter Anthony Fay & Related Entities 3.1m 4.1% $0.50
Slide 24: 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 2020 For personal use only $000's (extract) H1'20 H1'21 Australian business continues to be cash flow positive Receipts from customers 4,708 5,555 Pay
Slide 25: 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 2020 For personal use only $000's (extract) FY'20 H1'21 Comments Assets Cash and cash equivalents 12,900 11,125 50bps of FUM required to be h
Slide 26: Important Information
Important Information Important notice and disclaimer (Important Notice) This presentation has been prepared by Raiz Invest Limited (ACN 615 510 177) (ABN 74 615 510 177) (RAIZ). References in this presentation to RAIZ include its group of companies and trusts. For personal use only In consideration
Slide 27: For personal use only
Australia Indonesia Malaysia For personal use only www.raizinvest.com.au Investor and Media Enquiries: Brendan Malone ir@raizinvest.com.au