Solvar Limited · ASX:SVR
Solvar — Investor Presentation (February 2023)
18 slides from Solvar's investor presentation, Feb 15, 2023
Slide 1: 1H FY23 Investor Presentation
1H FY23 Investor Presentation 15 February 2023 Scott Baldwin (CEO & Managing Director) Siva Subramani (CFO)
Slide 2: The Group
The Group Secured & unsecured Secured >$2 billion of >200k vehicles Operating over 20 Consumer loans Commercial loans vehicles funded funded years across AUS & NZ 1/350 registered 1/350 registered Leading integration Strong collections vehicles funded vehicles funded in with 3rd party focus in New Z
Slide 3: Group performance
AUD m 200 Revenue 188 AUD m 1000 Loan Book Group performance 830 145 800 733 150 124 601 104 600 100 92 434 1H 74 373 400 253 50 1H + Long-term profitable growth underpinned 200 by strong loan book growth 0 0 + Considered strategic acquisitions FY18 FY19 FY20 FY21 FY22 1HFY23 FY18 FY19 FY20 FY21 FY2
Slide 4: Sustainability & philanthropic highlights
Sustainability & philanthropic highlights Carbon Neutral status Over 6,000 trees Recycling & employee achieved in 2022* planted & 7+ climate engagement programs projects funded in all Solvar offices implemented Solvar donates $10 Solvar has 8 per loan to charity dedicated charity partners Ten-fold i
Slide 5: 1H FY23 Results
1H FY23 Results 5
Slide 6: Highlights – 1H FY23
Highlights – 1H FY23 Secured additional NZ$250.0m funding Revenue EBITDA 1H bad debts facility to support increased increased 3.5% growth in 13.5% 16.2% New Zealand to $103.6m on pcp to $56.7m on pcp Full-year bad debts expected to be 3.5-4.5% On-market share buy- back of 3.0m ordinary shares for $5
Slide 7: Financial Results
Financial Results 1H FY23 1H FY22 MVT % Financial Results Amounts in $m unless otherwise stated Revenue 103.6 91.3 13.5% Bad debts, net (14.5) (13.6) 7.2% + Strong cash collections supporting Movement in impairment provisions (2.1) (0.1) 2.1k% double-digit revenue growth + 3.5% Bad debts (annualised
Slide 8: Debt facility commentary
Debt facilities Debt facility A $m 1000 commentary 898 + Diversified facilities with 6 funders (including major Australian, New Zealand and 800 233 international banks) ~$335m headroom + Funding cost margin reduction available as 600 75 563 book size and quality improves 36 67 + Secured funding to p
Slide 9: Strong loan book growth
Loan book A $m Strong loan book growth Forecast 1,000 ~ 900 900 830 800 + Strong lending momentum in Q2 FY23 733 increasing loan book to $829.7m 700 + Record new lending in Q2 FY23 ($156.4m) 601 hitting $58.5m in November 2022 600 + 38.4% growth in Q2 lending over Q1 500 + Group continues to take ma
Slide 10: Stable credit quality
Loan book quality Stable credit Q1 FY23 59% 24% 13% 4% 0.01% quality + Credit quality profile maintained during Q1 FY22 58% 25% 14% 3% 0.02% FY23 despite inflationary pressures + 83% of portfolio is in ‘Strong and Good’ credit quality category FY21 58% 25% 14% 3% 0.10% + Full-year bad debts expected
Slide 11: Outlook FY23
Outlook FY23 11
Slide 12: FY23 – Outlook
FY23 – Outlook Strategic Outlook + Debt funding platform providing foundation and scope to continue to broaden Group consumer credit appetite and push for growth into commercial lending + Balancing NIM maintenance with the opportunity to continue to take market share + Partnerships with franchise de
Slide 13: Appendix – Brand summary
Appendix 1 – Brand summary Consumer Consumer Consumer Commercial Consumer Commercial Purpose Vehicle Personal Vehicle Vehicle Vehicle Vehicle Finance loans Finance Finance Finance Finance Location Australia Australia Australia Australia New Zealand New Zealand up to up to up to up to up to $100,000
Slide 14: Appendix – Group performance
Appendix 2 – Group performance Financial Results FY17 FY18 FY19 FY20 FY21 FY22 CAGR (In $m unless stated otherwise) Revenue 56.0 73.6 91.7 124.0 145.1 187.9 27.4% EBITDA 30.5 40.5 46.3 49.1 80.9 99.0 26.6% EPS 10.30 13.20 13.00 12.08 19.85 24.40 18.8% (cents) Dividends 5.65 9.50 10.00 8.00 10.00 13.
Slide 15: Appendix – Corporate information
Appendix 3 – Corporate information Capital Structure Shares on issue 211.6 million Share Price (13 February 2023) $1.97 Market Capitalisation $416.9 million Board of Directors Stuart Robertson Non-Executive Chairman Scott Baldwin CEO & Managing Director Symon Brewis-Weston Non-Executive Director Kat
Slide 16: Glossary of terms
Glossary of terms NAF – Net Amount Financed: The amount of credit advanced to a customer in respect to their loan CAGR – Cumulative Annual Growth Rate PCP – Prior Corresponding Period: A comparison of the results for the same period during the previous reported period, typically the previous financi
Slide 17: Disclaimer
Disclaimer The content of this presentation has been prepared by Solvar Corporation Limited (the Company) for general information purposes only. Any information included in this presentation on future financial performance, including industry sectors, income, profit and employment types, represent e
Slide 18: Thank you!
Thank you! CEO & Managing Director Scott Baldwin +61 3 7031 6019 s.baldwin@solvar.com.au Chief Financial Officer Siva Subramani +61 3 7031 6018 s.subramani@solvar.com.au Investor Relations Simon Hinsley +61 401 809 653 simon@nwrcommunications.com.au