Raiz Invest Ltd. · ASX:RZI
Raiz Invest — Investor Presentation (February 2019)
23 slides from Raiz Invest's investor presentation, Feb 26, 2019
Slide 1: 1H'19 Investor Presentation
1H’19 Investor Presentation February 2019 1
Slide 2: Slide 2
Slide 3: About Raiz
About Raiz Capital Structure (26th of Feb ‘19) Raiz (formerly Acorns) is a mobile first micro-investing platform Share Price $0.60 via mobile phone or web app, which allows customers to invest in Shares on Issue (m) 66.2 a portfolio of Exchange Traded Funds (ETFs) in and outside of superannuation on
Slide 4: Executive Summary
Executive Summary 1H’19 Results Active Customers 175,000 up 31% from 133,000 on Prior Corresponding Period (“PCP”) Funds Under Management (“FUM”) $254.2 million up 72% from $148.2 million Revenue per customer up 45% on PCP, Average account balance up 17% +31% +72% 45% Revenue up 88% on PCP Cash and
Slide 5: Micro Investment Platform - Account Growth
Micro Investment Platform - Account Growth 700 Customer Accounts Active Customers of 175,000 up 31% from 133,000 (1H’18 end) (000’s) 600 500 During Q2’19 ASX market conditions deteriorated and in combination 400 with a seasonally slower December period for customer sign-ups marketing expenditure was
Slide 6: Micro Investment Platform - FUM
Micro Investment Platform - FUM Funds under management up 72% on PCP, resulting in $254 million Funds Under Management 300 at the end of 1H’19 ($m) 250 Continued growth in Raiz Super, with $28.4 million invested at 1H’19 200 end 150 Post balance date FUM increased 5.8% on the December month 100 50 M
Slide 7: Advertising
Advertising Raiz Rewards Advertising revenue grew 330% on PCP with continued growth in Raiz Rewards partnerships Advertising Revenue $250,000 Raiz held 163 partnerships with high quality retailers as at 1H’19 end $200,000 $150,000 $100,000 $50,000 $- Total sales processed through the platform totale
Slide 8: Revenue Growth
Revenue Growth $1.0 RZI has delivered consistent (m) revenue growth & expects this to continue 10% $0.8 20% $0.6 12% $0.4 58% $0.2 $- Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Maintenance Fee Account Fee Advertising Netting 8
Slide 9: Active Customers
Revenue Model Revenue per customer growth, LTV to be enhanced through supports an increased lifetime Revenue per customer was up advertising, big data, Raiz 250,000 value of customer (“LTV”) 45.3% on PCP Rewards, Raiz Invest Super and $7 Revenue Per Customer Per Quarter Active Customers independent
Slide 10: Raiz Invest Super
Raiz Invest Super Since launching in July 2018, FUM has grown to $28.4 million (as at 31 December 2018). Marketed to existing customers of Raiz through online channels targeting the database of over 600,000 sign ups. Raiz Invest Super gives customers access to their Superannuation via their mobile p
Slide 11: Growth Strategy
Growth Strategy The Company’s growth strategy will focus on opportunities to increase the life time value of the customer based on Raiz’s scalable technology platform: Raiz’s strong brand, engaged network, first mover advantage and reputation as a o Accelerating the Raiz Group’s growth in Australia
Slide 12: FY'19 Outlook
FY’19 Outlook Raiz focus for FY2019: Continue to increase revenue and control costs to become cash flow positive. Increase the LTV of existing customer base. Increase paying customers by proactively engaging inactive customers and new customers. Continuously improve the platform and user experience
Slide 13: Appendix
Appendix
Slide 14: Profit & Loss
Profit & Loss $m 1H’18* 1H'19 Comments Revenue for the normalised pre-restructure entity for 1H’18 and does not include revenue from the current Raiz Micro Investment Platform - 1.9 business Other revenue includes revenue from corporate authorisation fees, expense recoveries and rent. This is not di
Slide 15: Balance Sheet
Balance Sheet $m FY'18 1H'19 Comments Cash 4.4 9.1 Cash and cash equivalents are $9.6m at 31st December 2018. Including cash in Indonesia. Trade & Other Receivables 0.9 0.6 Other 7.5* 0.8 Other includes $0.544m of Term deposits held for over 91-days Current Assets 12.8 10.5 PP&E 0.0 0.1 Deferred Tax
Slide 16: Statement of Cashflows
Statement of Cashflows $m 1H’18* 1H'19 Comments Receipts From Customers 1.4 3.8 Cashflows in line with lodged Appendix 4C for Sep-18 and Dec-18 quarter ends Payments to Suppliers & Employees (3.3) (5.7) Cashflow movements illustrate cash changes from normalised pre-restructured entity Net Finance Co
Slide 17: New Features Added
New Features Added Raiz Kids: Simple way to invest Goals functionality to assist Raiz Invest Super Raiz Rewards improvements for under 18s customers to save 20K+ $5m a month via $28m+ FUM 160+ 12k+ transactions a Raiz Kids saving plans Raiz Invest Super brands month 17
Slide 18: Raiz Team
Raiz Team The awards and recognition Raiz have received highlights the hard work and commitment of the team. We have seventeen full time workers, responsible for coding, onboarding, funds management, operation administration, customer service and marketing. We have assembled a talented team that man
Slide 19: Raiz Customers
Raiz Customers Raiz appeals to a new generation of investors, with its automated processes, and as a result, the Raiz platform will grow with our customers on their life journey, to meet their emerging wealth and well-being needs. 45% 175,000+ increase in revenue Active customers per active customer
Slide 20: Raiz Rewards Partnership Growth
Raiz Rewards Partnership Growth Raiz Reward Partners grew to 163 partners at the end of 1H’19 No. of RaizNoRewards of Partners Partners Reward Partners: 180 160 140 120 100 80 60 40 20 0 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 We are working with specific partners to bring Rai
Slide 21: Awards
Awards WINNER WINNER WINNER WINNER Excellence in Wealth Investor Innovator Best Tech Innovation Digital Design - App Management FinTech Business 2017 Finder Awards 2016 Good Design Award 2016 Finnies 2017 WINNER WINNER WINNER Best Personal Finance App Investor Innovator Innovator in Wealth Managemen
Slide 22: Important Information
Important Information Important notice and disclaimer (Important Notice) This presentation has been prepared by Raiz Invest Limited (ACN 615 510 177) (RAIZ). References in this presentation to RAIZ include its group of companies and trusts. In consideration for being given access to this presentatio
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