Moneyme Ltd. · ASX:MME
Moneyme — Investor Presentation (December 2021)
51 slides from Moneyme's investor presentation, Dec 17, 2021
Slide 1: MoneyMe Acquisition of SocietyOne
MoneyMe Acquisition of SocietyOne December 2021 Copyright 2021 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218
Slide 2: SocietyOne Acquisition Highlights
SocietyOne Acquisition Highlights 72% increase in MoneyMe loan book size to $934m 1 (Nov-21) Pro Forma Combined Metrics2 86% increase in MoneyMe FY21 combined, pro forma revenue2 $934m $146m in annualised3 revenue (a 63% increase for MoneyMe) based on combined 1Q FY22 Nov-21 combined loan book size
Slide 3: Strategic vision for the combination
Strategic vision for the combination The merger combines SocietyOne’s leading brand recognition as a pioneer in disruptive personal lending and unfolding ecosystem for financial wellness, with MoneyMe’s leadership in product innovation and proprietary technology platform (Horizon). The two businesse
Slide 4: Transaction Overview
3 Transaction Overview 6 About SocietyOne 15 Strategic Rationale For The Transaction 23 Impact Of The Transaction 30 Appendices Page 3
Slide 5: Transaction Overview: MoneyMe Acquisition of SocietyOne
Transaction Overview: MoneyMe Acquisition of SocietyOne A highly strategic and complementary combination • MoneyMe to acquire SocietyOne in consideration for the issue of between 70m to 75m MoneyMe fully paid ordinary shares plus between $0m to $9.7m of cash under a Merger Implementation Agreement (
Slide 6: Transaction Overview: MoneyMe Acquisition of SocietyOne
Transaction Overview: MoneyMe Acquisition of SocietyOne • Instant scale advantage: Increases MoneyMe gross receivables by 72% from $542m as at November 2021 to $934m with combined originations of $917m for the 12 months to 30 November 2021 Financial Impact • $17m per annum in pre-tax cost synergies
Slide 7: About SocietyOne
3 Transaction Overview 6 About SocietyOne 15 Strategic Rationale For The Transaction 23 Impact Of The Transaction 30 Appendices Page 6
Slide 8: SocietyOne is a pioneer and leading brand in disruptive consumer finance
SocietyOne is a pioneer and leading brand in disruptive consumer finance A platform and brand that +69 4.7 / 5.0 1.9-2.7x1 resonates strongly with customers NPS score Productreview.com.au Higher brand recall vs score peers Built a large personal loan book $392m2 38% $50m Direct 5-year gross through
Slide 9: Strong brand recognition driven by investment in direct marketing
Strong brand recognition driven by investment in direct marketing; emerging broker and credit score channels SocietyOne’s brand recall is 1.9-2.7x stronger …driving 100k unique visitors per month to SocietyOne than peers… website, underpinning direct channel acquisition model Slowdown in origination
Slide 10: High quality, prime customer base
High quality, prime customer base Prime customer base with high Credit Scores1,2 30-40% of customer enquiries are homeowners3 Credit score Percent of enquiry volumes (%) 760 42 740 38 720 700 34 680 30 660 640 26 620 22 600 580 18 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21
Slide 11: Financial wellness program drives customer engagement through Credit Score tool
Financial wellness program drives customer engagement and lead generation through SocietyOne’s Credit Score tool Credit Score tool engages customers through score Rapidly growing customer base unlocking low cost monitoring and customer data insights customer acquisition opportunities Number of Credi
Slide 12: Banking as a Service partnership with Westpac
Banking as a Service partnership with Westpac can unlock longer and deeper relationships with customers1 The banking as a service platform would provide SocietyOne + customers with a transaction account to conduct money management activities including paying bills, withdrawing cash and budgeting A h
Slide 13: Highly diversified personal loan portfolio
Highly diversified personal loan portfolio $31k average loan size1 at origination Average customer age is 45 Loan size (as at Sep-21) Customer age (as at Sep-21) 12% 18% 24% 33% 11% 25% 13% 33% 16% 14% < 20k 20-35k 35-50k > 50k <31 31-35 36-40 41-45 46-50 >50 Nationwide coverage Fulfilling wide rang
Slide 14: Transition to on-balance sheet drives expansion in revenue and margin
Transition to “on-balance sheet” drives an expansion in SocietyOne revenue and margin; transition to be materially complete by FY24 Inaugural $182m public asset backed securitisation (“ABS”) transaction closed Sep-21 Transition to on balance sheet model nearing completion… …which is driving higher y
Slide 15: Strong historical growth trajectory and prudent credit risk management
Strong historical growth trajectory and prudent credit risk management Strong gross receivables trajectory, despite COVID slowdown While net charge offs2 improve at pace A$m Conservative slowdown during COVID in 2020 where originations reduced by ~59% between April and September 2020 1 392 4.9% +38%
Slide 16: Strategic Rationale For The Transaction
3 Transaction Overview 6 About SocietyOne 15 Strategic Rationale For The Transaction 23 Impact Of The Transaction 30 Appendices Page 15
Slide 17: A highly complementary combination of two leading digital consumer lenders
A highly complementary combination of two of the leading digital consumer lenders in Australia + $542m 34 ~60k $392m1 45 ~25k Nov-21 GLA Average Nov-21 active Nov-21 GLA Average Nov-21 active customer age customers customer age loan customers 656 +78 ~146k 721 +69 ~147k Avg. Equifax NPS score Nov-21
Slide 18: The combination delivers five significant merger benefits
The combination delivers five significant merger benefits 72% increase in MoneyMe loan book size to $934m (Nov-21) Significant operating Operating leverage benefits as SocietyOne business migrated to MoneyMe’s Horizon platform 1 leverage through increased scale Cost/originations1 to reduce from 6% f
Slide 19: Scale benefits: operating cost efficiencies through platform consolidation
Delivers operating cost efficiencies through platform consolidation and 1 Scale benefits operating leverage 72% increase in loan portfolio size… …delivering significant operating leverage benefits Gross Receivables (November 2021) Core operating expenses1 to originations (FY21) +72% 934 12% And decl
Slide 20: Cost synergies: material near term cost synergies
2 Cost synergies Delivers material near term cost synergies ~$17m p.a. of estimated pre-tax cost synergies expected to be achievable from FY24 Incremental opportunity beyond this from lower funding costs ~$5m ~$17m through accelerated securitisation program commencement ~$2m ~$9m Functions Systems P
Slide 21: Customer revenue synergies
Penetrate SocietyOne’s differentiated customers with 3 Customer revenue synergies improved Customer Experience Number of customers 1 (Nov-21) Lending Products • Sizeable SocietyOne loan book ($392m Nov-21) and customer base with a single lending product (personal loan) Penetrate SocietyOne ~147k Per
Slide 22: Unlocking distribution opportunities to access new customers
Unlocking distribution opportunities to access new customers and 4 Distribution benefits reduce acquisition costs “Turbocharge” the SocietyOne broker network and user Drive engagement with the rapidly expanding experience (like we did with Autopay) SocietyOne Credit Score app channel ~1,700 Cumulati
Slide 23: Leverage power of combined data to generate higher revenue
Leverage power of combined data to generate higher revenue and enhance 5 Data risk profile Cumulative loan originations (inception to Nov-21) $b 1.3b 2.5b Larger and more diverse data provides: Enhanced credit decisioning 1.2b Improved risk based pricing capability using artificial intelligence More
Slide 24: Impact Of The Transaction
3 Transaction Overview 6 About SocietyOne 15 Strategic Rationale For The Transaction 23 Impact Of The Transaction 30 Appendices Page 23
Slide 25: Combines key strengths in MoneyMe and SocietyOne brands, products and distribution
Combines key strengths in MoneyMe and SocietyOne brands, products and distribution Utilise strength of MoneyMe and SocietyOne brands Combine two powerful distribution networks SocietyOne key strength Personal Loans Personal Loans D2C Digital MoneyMe key strength Virtual cards Agent D2C Traditional A
Slide 26: The combination builds scale and unlocks operating leverage
The combination builds scale and unlocks operating leverage 12 Months to Nov-21 Originations (pre-synergies) Nov-21 Gross Receivables (pre-synergies) 278 917 392 934 639 542 + + 1Q22A Annualised Pro-forma Revenue1 FY21A Pro-forma Cash NPAT1 *Excludes >15 >161 12 revenue 27 * 54 synergies which are e
Slide 27: MoneyMe and SocietyOne key metrics
MoneyMe and SocietyOne key metrics Pro-forma Side by side comparison pre-synergies (Pro-forma1 100% on combined balance sheet basis) • SocietyOne FY21A gross Last 12 Months Nov-21 Originations2 639 278 917 receivables includes $179m of Loan book Nov-21 Gross receivables2 542 392 934 off balance loan
Slide 28: Post-transaction portfolio breakdown
Post-transaction portfolio breakdown Pro-forma Originations Last 12 Months to Nov-21 1 Autopay Autopay MoneyMe+ 12% 17% 2% MME Personal Loan S1 Personal Loans MoneyMe+ 36% ListReady 30% 3% 3% ListReady 3% Freestyle 27% MME Personal Loan Freestyle 26% 39% Pro-forma Nov-21 GLA1 Autopay MoneyMe+ 12% Au
Slide 29: Illustrative deal metrics and combined cash position
Illustrative deal metrics and combined cash position Potential for up to 7.5% of 1 2 consideration to be paid in cash 100% scrip 92.5% scrip / 7.5% based on shareholder elections: consideration cash consideration Acquisition price Funding # shares issued to SocietyOne • MoneyMe expects to raise addi
Slide 30: Board and shareholders
Board and shareholders Board • Prior to Completion, SocietyOne may nominate a person to become a director of MoneyMe • Key SocietyOne shareholders, including Seven West Media, News Corporation, Reinventure, Consolidated Press Holdings and Australian Capital Equity have voluntarily elected to have th
Slide 31: Appendices
3 Transaction Overview 6 About SocietyOne 15 Strategic Rationale For The Transaction 23 Impact Of The Transaction 30 Appendices Page 30
Slide 32: Appendix A: Combined Group Information
Appendix A: Combined Group Information Page 31
Slide 33: Income Statement
Income Statement $146m based on annualising 1Q FY22 revenue Pro-forma Pro forma P&L cash basis (Jun-21) (Pro forma combined • SocietyOne’s unaudited pro-forma (Standalone) Standalone1) (pre synergies) (Statutory) income statement includes pro forma Total revenue 58 50 108 26 adjustments to the total
Slide 34: Balance Sheet
Balance Sheet Pro forma Balance Sheet (Jun-21) (Pro forma1 Pro-forma (statutory (Standalone) Standalone) combined standalone) • The SocietyOne balance sheet includes Cash and equivalents 26 22 48 22 pro forma adjustments to the net customer receivables and borrowing line Net customer receivables 306
Slide 35: SocietyOne Financials: Reconciliation of pro forma adjustments to Statutory Financial Information
SocietyOne Financials: Reconciliation of the pro forma adjustments to the Statutory Financial Information Pro forma adjustments Recognition of Recognition of 1 Add off balance sheet gross receivables Recognition of P2P funded P2P funded net of provisions as at June 2021 Statutory P2P funded receivab
Slide 36: Appendix B: Overview of Material Transaction Terms
Appendix B: Overview of Material Transaction Terms Page 35
Slide 37: Overview of Material Transaction Terms (1)
Overview of Material Transaction Terms (1) Terms which are capitalised in this Appendix have the meaning given in the Glossary. Consideration Shares Upon completion of the Acquisition, which the Company expects to occur on or around 15 March 2022 (the actual date of complet ion of the Acquisition, b
Slide 38: Overview of Material Transaction Terms (2)
Overview of Material Transaction Terms (2) Other terms and information (continued) • (Conduct of business) SocietyOne and MoneyMe must each conduct their businesses in the ordinary course pending Completion. • (Obligation to recommend the Resolution) in the absence of a Superior Proposal: – the Mone
Slide 39: Overview of Material Transaction Terms (3)
Overview of Material Transaction Terms (3) Glossary (continued) Competing Proposal Any proposal, agreement, arrangement or transaction which, if entered into or completed, would result in a third party directly or indirectly: a) acquiring a relevant interest in 50% or more of all MoneyMe Shares; b)
Slide 40: Overview of Material Transaction Terms (4)
Overview of Material Transaction Terms (4) Glossary (continued) SocietyOne Shares Fully paid ordinary shares on issue in SocietyOne. SocietyOne Shareholders The registered holders of SocietyOne Shares. SocietyOne Sellers The SocietyOne shareholders who sign or otherwise accede to the Merger Implemen
Slide 41: Appendix C: Additional SocietyOne Information
Appendix C: Additional SocietyOne Information Page 40
Slide 42: Company history
Company history October 2021 November 2021 SOFT2 warehouse $1.3B originated launched loans September 2021 Lending led, digital finance First securitised $1.3B transaction platform, established to provide customers with a better deal Dec 2019 SOFT1 warehouse $1.0B Apr 2019 launched Whole loans and Ja
Slide 43: SocietyOne customer offerings
SocietyOne customer offerings Consumer Lending Credit Score Customers Prime Quality Customers Any person eligible for a score Product positioning Rewarding good credit with great low rates Unlock your score • Competitive rates • Free score • No monthly or early repayment fees • Helpful tips and insi
Slide 44: SocietyOne distribution model
SocietyOne distribution model Distribution channel breakdown Distribution channel Type Description Brand Leveraging media partners to enhance integrated marketing campaigns, via paid brand, direct and organic channels Performance Paid generic and other direct conversion digital channels Direct (79%
Slide 45: SocietyOne credit performance and COVID hardship program
SocietyOne credit performance and COVID hardship program Credit performance of the loan portfolio Loans subject to SocietyOne’s COVID hardship program Net Charge Off Performance (%) 90+ Days Arrears (as at 30 June) • SocietyOne adopted a conservative approach to the potential credit risks arising fr
Slide 46: Appendix D: Additional MoneyMe Information
Appendix D: Additional MoneyMe Information Page 45
Slide 47: MoneyMe's products
MoneyMe’s products Offer range $2,100 – $50,000 Credit limit up to $20,000 Credit limit up to $50,000 Service amount up to Service amount Up to $100,000 $35,000 up to $15,000 Offer term 3 – 60 months Repayments spread Based on minimum 60 days 24 months 36 – 84 months over 24 – 60 months monthly repa
Slide 48: About us
About us MoneyMe is a leading player in the digital credit business with technology (Horizon Technology Platform) and AI to deliver highly automated innovative products and customer experiences. We originate through a diversified mix of credit products and distribution channels to create significant
Slide 49: Disclaimer and Important Notice (1)
Disclaimer and Important Notice (1) The information contained in this presentation has been prepared by MoneyMe Limited (MoneyMe or Company) in connection with M oneyMe’s acquisition of all of the ordinary shares on issue in SocietyOne. Summary information and source of SocietyOne information This P
Slide 50: Disclaimer and Important Notice (2)
Disclaimer and Important Notice (2) Forward-looking statements and risks (continued) Forward looking statements may assume the success of MoneyMe’s business strategies including, without limitation, integration of SocietyOne. The success of any of these strategies is subject to uncertainties and con
Slide 51: www.moneyme.com.au
www.moneyme.com.au Copyright 2021 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218