Harmoney Corp Ltd · ASX:HMY
Harmoney — ASX Small and Mid-Cap Conference 2021
19 slides from Harmoney's conference presentation, Mar 17, 2021
Slide 1: ASX Small and Mid-Cap Conference 2021
17 March 2021 ASX SMALL AND MID-CAP CONFERENCE 2021 ASX SMALL AND MID-CAP CONFERENCE – 17 MARCH 2021 PAGE 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The material in this presentation is provided for general information purposes only and is No representation or warranty, express or implied, is made as to the fairness, current as at the date of this presentation. It is not a prospectus or product disclosure complete
Slide 3: Largest direct personal lender across AU and NZ
LARGEST DIRECT PERSONAL LENDER ACROSS AU AND NZ. ORIGINATIONS OF $1.9+ BILLION CUSTOMERS TEAM KEY METRICS 83 NET PROMOTER SCORE FTEs (NZ + AU) 69 1H21 PRO FORMA REVENUE $42m GOOGLE REVIEWS 4.7/ 5 FTE ENGINEERS, PRODUCT MANAGERS, DATA SCIENCE 51% TOTAL ORIGINATIONS $1.9b SHOPPER APPROVED 4.7/ 5 REVEN
Slide 4: Strong momentum post IPO
STRONG MOMENTUM POST IPO DEC ‘20 SECURED UP TO FEB ‘21 $200M IN FUNDING RELEASED FROM M&G LIBRA™ 1.7 INVESTMENTS INTO AU 19 NOV ‘20 IPO NET PROCEEDS OF ~$57M RECEIVED JAN ‘21 FEB ‘21 EXCEEDED PAUL LAHIFF PROSPECTUS APPOINTED ORIGINATION INDEPENDENT FORECASTS DIRECTOR (AU BASED) ASX SMALL AND MID-CAP
Slide 5: Libra 1.7 doubles new business originations in Australia
LIBRA™ 1.7 DOUBLES NEW BUSINESS ORIGINATIONS IN AUSTRALIA • Libra™ 1.7 initial roll-out on 10 February. • Built specifically for the Australian market. • Libra™ 1.7 is an enabler of the Millennial products. • ~100% uplift in conversion of accounts to funded loans in 13 days since launch, driven by n
Slide 6: Strong origination growth since 2014
STRONG ORIGINATION GROWTH SINCE 2014 $1.9+ BILLION OF LOAN ORIGINATIONS • Harmoney has originated over $1.9 billion in personal loans CAGR across AU and NZ since 2014, making it the largest 100% 79% direct lender in AU / NZ. • Loan origination CAGR growth of 79% over this period. • This being achiev
Slide 7: 100% direct personal lender: power of the 3Rs
100% DIRECT PERSONAL LENDER POWER OF THE 3Rs NEW AND EXISTING DEAL FLOW POWER OF THE PROVEN BUSINESS MODEL VOL TO 31 JAN 2021 NEW CUSTOMERS Accounts created in CY2015 $565m Harmoney originates customers of Losses on repeat borrowed $118m in CY2015. By 31 new loan traffic via low/no-cost loans engage
Slide 8: 1H21 Results Highlights
1H21 RESULTS HIGHLIGHTS PAGE 8
Slide 9: 1H21 Results Highlights
1H21 RESULTS HIGHLIGHTS $1.9B 47% $42M $290M+ TOTAL PERSONAL LOAN STRONG QUARTER ON QUARTER PRO FORMA REVENUE INCREASED WAREHOUSE LENDING ORIGINATIONS ORIGINATION GROWTH CAPACITY Pro forma revenue has performed despite Harmoney has now originated over $1.9 Originations accelerated through 1H21, impa
Slide 10: 2Q21 growth with return to marketing
2Q21 GROWTH WITH RETURN TO MARKETING ● Origination accelerated through 1H21, with 2Q21 approaching pre-COVID levels. ● 2Q21 Group originations $115m, 47% NZ AU growth on 1Q21. ● 1H21 Group originations of $194m. AUSTRALIA (2Q ON 1Q) ● Total originations grow by 69%. ● New customer originations grow
Slide 11: Power of the proven business model
POWER OF THE PROVEN BUSINESS MODEL ● Harmoney leveraged the 3Rs in 1Q21 to originate from quality existing accounts. ● In 2Q21, Harmoney resumed a marketing program and saw new customer originations grow by 127%. ● Lag effect between marketing activity and origination in 2Q21 with normal marketing r
Slide 12: 1H21 historical lows in group arrears and losses
1H21 HISTORICAL LOWS IN GROUP ARREARS AND LOSSES AUSTRALIA • Arrears at historical lows in both AU and NZ. • Upgraded proprietary scorecards and conservative risk settings through 2020 driving improved performance. • Group losses at historical lows and continue to track to forecast. • Portfolio show
Slide 13: Diversified funding: $290M+ undrawn
DIVERSIFIED FUNDING: $290M+ UNDRAWN NEW ZEALAND AUSTRALIA WAREHOUSE VS $168m UNDRAWN A$113m UNDRAWN PEER-TO-PEER WAREHOUSE PEER-TO-PEER ● M&G warehouse committed facility to January 2024, up to ● AU warehouse facility - In Feb 2021 committed facility The transition to 100% a $200m limit. extended to
Slide 14: Strategy and Outlook
STRATEGY AND OUTLOOK PAGE 14
Slide 15: Harmoney customer enquiry $7.4B ($3B in AU)
HARMONEY CUSTOMER ENQUIRY $7.4B ($3B IN AU) ~A$150B ~$15B MAJOR BANK MARKET AU PERSONAL NZ PERSONAL SHARE IN DECLINE LENDING MARKET LENDING MARKET 2015: ~90% → 2018: ~50% SOURCE: RBNZ, ‘C5 – SECTOR LENDING (REGISTERED BANKS AND NON-BANK LENDING INSTITUTIONS)’. NOTE: PERSONAL LOANS ARE DEFINED AS PER
Slide 16: $1B p.a. Australian origination target
$1B P.A. AUSTRALIAN ORIGINATION TARGET By matching NZ performance to our AU business today = $1B per annum opportunity PARITY IN NEW PARITY IN 3R HARMONEY AU CONVERSION PERFORMANCE ORIGINATION TARGET + GAP TO = $1B NZ PARITY AU ~25% P.A. OF NZ AU CONVERSION NZ CONVERSION Applying Harmoney NZ funnel
Slide 17: Roadmap to $1B p.a. Australian origination target
ROADMAP TO $1B P.A. AUSTRALIAN ORIGINATION TARGET 113% + = CUSTOMERS DEMAND MONEY IN MOMENTS FRICTIONLESS FINANCE BROAD LENDING LIMITS Harmoney is meeting customer demand GROWTH IN ANY DEVICE / INTERFACE for a simple and seamless experience and ONLINE TRUSTED BRAND identifying opportunities for prod
Slide 18: Why is Harmoney's model successful?
WHY IS HARMONEY’S MODEL SUCCESSFUL? COMPELLING Attractive revenue profile, loan TECHNOLOGY Proprietary technology, Stellare™ FUNDAMENTALS book, $1.9Bn+ in originations at EMPOWERED enables automation, machine market leading NIM of ~11%. learning, data utilization and direct marketing. STRONG MARKET
Slide 19: Questions?
QUESTIONS? PAGE 19