Slide 1: FY24 Results Presentation
77WISC FY24 RESULTS PRESENTATION 13 June 2024
Slide 2: Welcome
Welcome Kristo Käärmann Co-Founder and Chief Executive Officer
Slide 3: Money Without Borders
MONEY WITHOUT BORDERS We’re building the best way to move and manage the world’s money. Min fees. Max ease. Full speed.
Slide 4: Building the best way to move and manage the world's money
We’re building the best way to move and manage the world’s money, making Wise increasingly valuable A massive The network for the Products Wise is problem for people world’s money customers love growing fast and businesses and profitable Large addressable Technology first Evangelical customers Creat
Slide 5: Amount moved cross border annually by people and SMBs
moved cross border moved cross border annually by people annually by SMBs £87bn £31bn <5% market share <1% market share Source: Market size based on EDC study (2022); SMB includes small and medium sized businesses. 5
Slide 6: What customers are saying; what we're doing about it
What customers are saying Sending money International Underlying across borders banking technology Traditionally slow, International bank accounts Infrastructure has not expensive and hard to do don’t really exist evolved in decades What we’re doing about it We’ve made transfers We’ve created We’re
Slide 7: Customer-led growth
Customer-led growth Active Customers Cross Border Volume Customer Holdings1 (millions) (£billion) (£billion) Note: 1Customer Holdings include both Customer Balances (on balance sheet) and Assets Under Custody (off balance sheet) 7
Slide 8: Growth and scaling creates capacity to reinvest
Growth and Our investment choices scaling creates capacity to Better customer experience More volume and scale More gross profit reinvest. More Invest in marketing customers More products Invest in product, and features tech & infrastructure Sustainably lower price 8
Slide 9: Fast growing, and increasingly profitable
Fast FY24 3 year CAGR growing, and increasingly profitable. Underlying income £1,173m +41% Underlying PBT £242m +83% Reported PBT £481m +127% 9
Slide 10: Investing in our infrastructure and products
Investing in our infrastructure and products Harsh Sinha Chief Technology Officer
Slide 11: We're building the network for the world's money
WE’RE BUILDING THE NETWORK FOR THE WORLD’S MONEY
Slide 12: Network infrastructure key metrics
62% of end to end payments are instant {arrive in 20 secs) cost Currencies available for customers. to hold and send 5,500 People focused on cross-border payments Pic NISBN+ FX volume moves through our infrastructure annually Global treasury function (Operators) Support worldwide Licences 800+ Engin
Slide 13: Our growing infrastructure deepens our competitive advantage
Our growing infrastructure deepens our competitive advantage Direct connection to payment systems giving full control of end-to-end payment network Expansive network of banking and card partners with redundancy reducing single-partner reliance Global portfolio of licences which we leverage to meet c
Slide 14: Progress building the network for the world's money
We’re making progress on building the network for the world’s money Integration into Japan Correspondent Australia’s domestic Type 1 services enabled through payment system Transfer Licence Swift collaboration 14
Slide 15: Our infrastructure enables a service customers can rely on
Our infrastructure enables a service customers can rely on Available when you need us, secure, fast and convenient > 800 engineers Localised product solutions globally One single global Lower liquidity and FX costs treasury system Responsive 24/7 ‘follow the sun’ customer support customer support Po
Slide 16: Fast, low cost payments for customers
Our infrastructure enables fast, low cost payments for customers Significantly faster payment speeds Low cost and cheaper than banks Q4 FY24 95% 83% 62% c.0.64%e 16
Slide 17: Products customers love
Products customers love
Slide 18: Three great products: Account, Business, Platform
We serve our customers through three great products for cross border transfers and increasingly more Wise Account Wise Business Wise Platform 18
Slide 19: Our proposition and coverage is getting better
Our proposition and coverage is getting better so we can serve more of our customers needs Wise Account Transfers Hold Assets “Interest” rolled out in 5 EU countries Expats in Send 4x more “Stocks” in 11 EU countries China can send to Indonesia money home (limit 2bn IDR) Receive Send & Receive Reque
Slide 20: Wise Business: helping businesses operate like locals
Wise Business Helping businesses operate like locals Onboarding ● UK and EU onboarding was re-opened for business customers > 1 month old. Industry leading returns ● Wise Assets is available to businesses in the UK, Europe and Singapore. Increased functionality ● Wise invoicing. ● Expense management
Slide 21: 85+ Wise Platform partners continues to grow
Our portfolio of 85+ Wise Platform partners continues to grow * Some partners added in FY24 *Nubank announced Q1FY25 21
Slide 22: Customer-led growth
Customer-led growth Kristo Käärmann Co-Founder and Chief Executive Officer
Slide 23: New customers accelerate growth through word of mouth
New customers accelerate growth thanks to word of mouth 2/3 of customers join through a recommendation 23
Slide 24: Customers stay with us for many years
Customers stay with us for many years Quarterly volume by cohort over time 24
Slide 25: Active customer growth
More customers staying + new customers joining = Active customer growth Personal active customers (m) Business active customers (m) FY24 FY24 YoY¹ YoY¹ 3yr CAGR 27% 3yr CAGR 29% 20% 29% Notes: ¹Comparison is FY24 vs FY23. 25
Slide 26: Customer growth continues across all markets
Customer growth continues across all markets Active customer growth per region 26
Slide 27: Customer growth drives more cross border volumes
Customer growth drives more cross border volumes Volume2 (£bn) FY24 YoY¹ 3yr CAGR Total 13% 30% Business 12% Personal 14% Notes: ¹Comparison is FY24 vs FY23. 2Volume is defined as a XCCY transfer amount received by recipients and is known as converted volume. Additional comment: FY24 YoY growth is 1
Slide 28: Wise Account adoption
1 Wise Account adoption Personal Business up from 36% Q4 FY23 up from 55% Q4 FY23 Notes: ¹Adoption defined as Percentage of total Q4 FY24 active customers (personal and business) who have adopted more than one product; where a product is defined as one of Send, Spend, Receive, Hold & Convert. 28
Slide 29: Customer holdings growing quickly with Assets adopted fast
Wise Account customer holdings are growing quickly with Assets adopted fast Customer balances (£bn) Assets Under Custody2 (£bn) FY24 YoY¹ FY24 YoY¹ 24% 523% 3yr CAGR 53% Notes: ¹Comparison is FY24 vs FY23. 2 Amounts invested in the “Interest” Assets and “Stock” Assets products, where available. AUC
Slide 30: Expensive to hold money in a traditional UK current account
It’s expensive to hold money in a traditional UK current account 30
Slide 31: Maison Café EUR
Maison Café 7 EUR €) —
Slide 32: New fast growing segment of card-only active customers
We have created a completely new, fast growing segment of card-only active customers Active Customers (m) Card only customer VPC (£k) 0.8 0.8 0.8 0.8 Other customer VPC (£k) 4.5 4.9 4.8 4.5 32
Slide 33: Wise Account adoption drives card and other revenues
Wise Account adoption drives card and other revenues Card and other revenue £m FY24 YoY¹ 3yr CAGR 89% 54% Notes: ¹Comparison is FY24 vs FY23. 33
Slide 34: Wise Account customers bring more underlying income
Wise Account customers brought more underlying income than transfer-only customers + c. 25% + c. 100% Personal Business The relative underlying income increase between Wise Account and Transfer Only customers is calculated based on the FY24 underlying income generated from customers who have ever us
Slide 35: Strong product-led growth in active customers
Strong product-led growth in active customers More customers adopting the Wise Account, with a new ‘card-only’ segment Wise Account customers bring more underlying income 35
Slide 36: Growing fast, investing and profitable
Growing fast, investing and profitable Kingsley Kemish Chief Financial Officer (Interim)
Slide 37: FY2024 YoY income guidance evolution
FY 2024 - YoY Income guidance evolution 28-33% Year End Results - Jun 2023 33-38% Q2 Trading Update - Oct 2023 42-44% Q3 Trading Update - Jan 2024 Actual Income growth - 46% Q4 Trading Update - Apr 2024 37
Slide 38: Underlying basis of reporting
Underlying basis of reporting Underlying income Revenue First 1% gross yield¹ Underlying PBT = PBT on Underlying Income 38 Note: ¹ First 1% gross yield on customer balances.
Slide 39: Growing fast and increasingly profitable
We’re growing fast and increasingly profitable Active Volume Customer Underlying Underlying Customers balances¹ Income PBT FY24 12.8m £118.5bn £13.3bn £1,172.7m £241.8m 3 year CAGR +29% +30% +53% +41% +83% Notes: Actuals based on FY24, with the comparison against FY21. 39 1 Customer balances do not
Slide 40: Underlying income by customer type
Underlying income grew at 31% YoY¹ Underlying income by customer type (£m) FY24 YoY¹ 3yr CAGR 41% Personal 30% Business 37% Notes: ¹Comparison is FY24 vs FY23. 2Underlying income is defined as revenue + the first 1% yield of net interest income on customer balances. 40
Slide 41: Diversification of underlying income
Diversification of underlying income (32% non-cross) driven by Wise Account YoY 143% YoY 54% YoY 17% 41
Slide 42: Underlying income growing across all regions
Underlying Underlying income by Region (£m) income is growing across FY24 YoY¹ 51% all regions. 37% 26% 26% 30% Notes: 1Comparison is FY24 to FY23. 42
Slide 43: Growth in underlying gross profit
Growth in Underlying gross profit² (£m) underlying gross profit FY24 YoY¹ creates Cost of (2%) sales³ capacity for investment. Underlying 51% gross profit Underlying 62% 66% 63% 73% gross profit margin⁴ Notes: ¹Comparisons FY24 vs FY23. 2Underlying income minus cost of sales. 3Includes net credit lo
Slide 44: How we invest
How we invest Marketing Product Development +27% headcount YoY2 +15% headcount YoY2 ● Investment in team, enhancing capability and ● New products and features launched effectiveness of spend (broadly flat1 YoY) ● Increasingly competitive infrastructure ● +20% YoY new customer growth on same spend ●
Slide 45: Continuing investment into customer experience and product
Continuing Administrative expenses (£m) investment into customer experience and FY24 YoY¹ product Other improvements. administrative expenses² 19% Employee benefit expenses 28% Notes: ¹Comparisons FY24 vs FY23. ²Other admin expenses comprise Marketing, Technology and development, Consultancy and out
Slide 46: Highly profitable underlying business model
We have a Underlying profit before tax1 (£m) highly profitable underlying FY24 YoY⁴ business model, 226% enabling price drops in early FY25. Underlying profit 9% 7% 8% 21% before tax margin² Underlying adjusted 26% 22% 19% 28% EBITDA margin³ Notes: ¹Calculation of profit before tax using only 1% of
Slide 47: Underlying to reported PBT
Underlying to Reported PBT (£m) Significant levels of additional interest income increased Reported PBT FY24 YoY¹ reported profit 229% before tax. Notes: ¹Comparison is FY24 vs FY23. 47 *c.30ppts related to the UK
Slide 48: Customer-led growth resulted in 3x increase in reported PBT and EPS
Customer-led Reported profit before tax (£m) growth resulted in a 3x increase FY24 YoY¹ in reported PBT 3yr CAGR and EPS YoY. 127% Additional net interest 232% income Underlying profit 226% before tax EPS (p) 3.3 3.4 11.1 34.2 FCF 58.0 58.7 156.0 486.6 FCF Conversion² 141% 134% 106% 101% Notes: ¹Com
Slide 49: FY25: What's next?
FY25: What’s next? More customers More features in more places Increased marketing spend Better Experience Lower and = fairer prices 49 49
Slide 50: Strong product-led growth in active customers
Strong product-led growth in active customers More customers are adopting the Wise Account, including ‘card-only’ usage Wise Account customers bring more underlying income across a broader product set 50
Slide 51: FY25: 15-20% underlying income growth expected
FY25: What’s next? 15-20% underlying income growth expected in FY25 c20-25% adjusting for timing of price drop Key Driver: Customer Growth. Driven by the Wise Account across segments and regions. 51
Slide 52: Different business to the one which listed
Different business to the one which listed Active Cross Currency Card and other Customer Underlying Customers (m) Volume (£bn) revenue (£m) Holdings (£bn) income (£m) 2.2x 2.1x 2.8x 6.7x 4.4x 52
Slide 53: Our investment choices
Our investment choices Better customer More volume More gross experience and scale profit Growth and scaling creates More Invest in marketing customers capacity to reinvest. More products and features Invest in product, tech & infrastructure Sustainably lower price 53
Slide 54: Long-term growth driven by sustained investment
Long-term growth driven by sustained levels of investment Underlying income growth of 15-20% CAGR over the medium term from FY24 Underlying PBT margin 13-16% Equivalent to: underlying adjusted EBITDA margin 20-23% Reported PBT expected to be higher than underlying, but remains largely dependent on c
Slide 55: A massive problem for people and businesses
A massive The network for the Products Wise is problem for people world’s money customers love growing fast and businesses and profitable Large addressable Technology first Evangelical customers Creating a market solutions drive growth valuable company 55
Slide 56: Disclaimer
Disclaimer This document and any accompanying materials or presentation may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words su
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