Slide 1: FY21 Results
FY21 RESULTS 26 August 2021 ASX WZR 1
Slide 2: FY21 Results agenda
1 FY21 highlights WISR FY21 2 Delivering milestones and growth RESULTS 3 Loan product and market opportunity 4 FY22 key priorities and outlook 5 FY21 audited financial results FOR YOUR SMART PART 2
Slide 3: We are a purpose-led high-growth consumer finance platform
WE ARE A PURPOSELED HIGHGROWTH CONSUMER FINANCE PLATFORM Purpose-led fintech High-growth ● Our purpose is to bring financial wellness to all ● Strong core business with 20 consecutive Wisr Loan Origination growth Australians, by redefining the consumer quarters of growth finance experience 1 Y2 4
Slide 4: Revenue acceleration
REVENUE ACCELERATION ● Revenue growth up 280% in FY21 vs FY20 Wisr quarterly and annual revenue growth ● Strong revenue growth with Wisr Warehouse funding model now in full effect ● On the back of 20 consecutive quarters of loan origination growth, Wisr is set up for: ● driving significant revenue g
Slide 5: FY21 Highlights
FY21 HIGHLIGHTS ✓ Strong growth backending the year, with loan $366M in new loan Total loan $27M in Operating $10M Cash originations of $221M in H2; 52% growth on originations originations revenue EBTDA H1 $145M 169% $611M 280% 30% ✓ Launch of secured vehicle loan product in Q1FY21, opening up a
Slide 6: Delivering milestones and growth
DELIVERING MILESTONES AND GROWTH FOR YOUR SMART PART 6
Slide 7: 20 quarters of consecutive growth
20 QUARTERS OF CONSECUTIVE GROWTH Loan origination growth Strong loan book growth Y21 Q4F 1 18 to Q4 FY2 om Q1FY 18 to R ( f r 1FY CAG om Q c.150 % AG R (fr 0% C c.16 Wisr Warehouse growth Accelerating revenue growth 21 4FY oQ Y 20 t Q2F (f rom 21 AG R 4FY %C oQ 50 Y 19 t c. 5 Q1F (f rom AGR 0 0
Slide 8: Positive operating cash flow
POSITIVE OPERATING CASH FLOW Delivered maiden positive operating cash flow result for the month of June 2021 Source: Q4FY21 Appendix 4C (unaudited) 8
Slide 9: Core profitability and investing for growth
CORE PROFITABILITY AND INVESTING FOR GROWTH FY21 P&L Waterfall The core Wisr lending platform, and associated costs for loan growth, have been growing profitably across the last two years, whilst the Company continues to invest in the Financial Wellness Platform, more innovation and the build and la
Slide 10: Cash EBTDA
CASH EBTDA ● In FY21 the Company had a Cash EBTDA of $9.7M FY21 $’000 FY20 $’000 Variance which is a 30% improvement on $13.7M in FY20 Operating revenue 27,231 7,166 280% ● The operational leverage in the business is evidenced through 280% operating revenue Total revenue 27,575 7,714 257% gr
Slide 11: Strong funding platform
STRONG FUNDING PLATFORM $184M $576M ● The Wisr Warehouse has $350M of committed funding and undrawn capacity of $169M $21M ● The Wisr Freedom Trust represents Wisr’s inaugural ABS transaction (refer to slide 29 $205M ● Both personal loans and secured vehicle loans are funded via the Wisr Warehouse
Slide 12: Loan product and market opportunity
LOAN PRODUCT AND MARKET OPPORTUNITY FOR YOUR SMART PART 12
Slide 13: Wisr continues to attract very creditworthy customers
MARKET PRESENCE ESTABLISHED WISR CONTINUES TO ATTRACT VERY CREDITWORTHY CUSTOMERS Strong credit quality for the market-leading growth delivered, with Wisr's applicants consistently have higher median credit scores compared to our consistent 90 day arrears and observable improvements to average near
Slide 14: Diversified loan portfolio, aligning with our purpose
DIVERSIFIED LOAN Customers all over Australia Customer employment status 1% PORTFOLIO, NT 32% 78% Full-time ALIGNING WITH 18% QLD WA 9% Casual OUR PURPOSE 22% 5% Self-employed Wisr lends to creditworthy customers all over Australia, NSW 1% for any worthwhile purpose, primarily debt consolidation 5%
Slide 15: Secured vehicle loans already making material contribution
NEW PRODUCT LAUNCH SECURED $86M Secured vehicle loans comprised 20% of Wisr’s loan VEHICLE LOANS book as at 30 June 2021 ALREADY MAKING MATERIAL $346M Personal loans CONTRIBUTION TO WISR LOAN BOOK TOTAL WISR LOAN BOOK Launched in Q1FY21 with Omni-channel distribution highly competitive lending inclu
Slide 16: FY22 key priorities and outlook
FY22 KEY PRIORITIES AND OUTLOOK FOR YOUR SMART PART 16
Slide 17: Wisr is focused on achieving a $1B loan book and beyond
WISR IS Indicative model of the Wisr business at scale FOCUSED ON $1B ACHIEVING Wisr Securitisation At Scale $ Range Avg settlement on Economics Run-rate1 P.A.) Book (% Wisr Warehouse Loan Book 31 May 2021 A LOAN Revenue $110130M 1113% BOOK WELL Net Interest $7590M 79% Wisr Margin Warehouse BE
Slide 18: Putting strong balance sheet to work
PUTTING STRONG BALANCE SHEET TO WORK 1 2 3 Loan book growth Technology investment and Expanding TAM by exploring new feature enhancement markets and growth opportunities ✓ Accelerate the pace to achieve the medium term target of a $1B loan ✓ Invest further in the technology ● Provide investment into
Slide 19: Platform fuelling future growth
WISR FINANCIAL WELLNESS PLATFORM A STRONG GROWTH CHANNEL PLATFORM FUELLING FUTURE GROWTH Strong customer growth achieved via the Financial Wellness Platform In June 2021, the Financial Wellness Platform was 88% more cost effective as a loan acquisition channel compared to direct and broker channel a
Slide 20: Wisr brand set up for long-term growth
WISR BRAND SET UP FOR LONGTERM GROWTH Broadcast sponsor of the Award-winning reimagined web Olympic Games Tokyo 2020 experience 63% of Australians in market for Brand awareness increased for a personal loan in the next 6 16.5M+ all groups considering a loan, months recall the Wisr demonstrating lon
Slide 21: Team in place to grow and scale
TEAM IN PLACE TO GROW AND SCALE Wisr’s senior leadership are dedicated to driving specific facets of the company’s growth, drawing from their years of experience at Australia’s most innovative and Anthony Nantes Andrew Goodwin Joanne Edwards Mathew Lu successful companies. Chief Executive Officer Ch
Slide 22: Award-winning momentum
MODEL BEING RECOGNISED AWARDWINNING MOMENTUM 22
Slide 23: Questions
QUESTIONS FOR YOUR SMART PART 23
Slide 24: FY21 audited financial results
FY21 AUDITED FINANCIAL RESULTS FOR YOUR SMART PART 24
Slide 25: Profit and loss
PROFIT AND LOSS ● Operating revenue of $27.2M FY20 $7.2M, a 280% increase 30Jun-21 30Jun-20 driven by loan origination growth of 169% $ $ ● Employment benefits expense increased due to the scaling of REVENUE the business and resulting increase in headcount Operating income 27,230,985 7,166,322
Slide 26: Expected credit loss provision
EXPECTED CREDIT LOSS PROVISION The ECL analysis was performed Total loan impairment expense Provision movement Jul 2020 Jun 2021 on three distinct loan receivable for FY21 was 7.9m, this books: represents 5.7m of incremental provisions, 2.2m of net losses Book 1 Wisr Warehouse Trust 2.4m gross
Slide 27: Balance sheet
30Jun-21 30Jun-20 BALANCE SHEET $ $ ASSETS Cash and cash equivalents 92,409,558 37,973,266 Trade and other receivables 1,208,633 1,023,326 ● Well capitalised with cash of $92.4M $64.8M Loan receivables 374,651,379 85,997,500 unrestricted cash) driven predominantly by the Property, plant and equip
Slide 28: Cash flow
CASH FLOW 30Jun-21 30Jun-20 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 24,305,699 4,814,906 Payments to suppliers and employees (inclusive of GST 27,595,351 18,256,184 ● Net cash used in operating activities decrease 3,289,652 13,441,278 driven by improvements in ope
Slide 29: The Wisr Freedom Trust 2021-1 will support future growth and net margin uplift
THE WISR FREEDOM TRUST 20211 WILL SUPPORT FUTURE GROWTH AND NET MARGIN UPLIFT The inaugural ABS transaction delivered A$225M of asset-backed securities, supported by a pool of fully amortising unsecured consumer personal loans Key highlights of the transaction The Wisr Freedom Trust 20211 includes
Slide 30: Disclaimer
DISCLAIMER No investment advice or offer of shares in this presentation or assumption upon which any part of this presentation is based or the accuracy, completeness or reliability of the information This presentation does not constitute investment advice, or an inducement or contained in this prese