A NEW SET OF WHEELS AGM PRESENTATION 15 NOVEMBER 2019 Scott Baldwin Siva Subramani Managing Director Chief Financial Officer ASX: MNY 1
About A customer-focused auto- loan specialist providing 20 years consumer lending competitive loans to experience and over 10 consumers. years specialising in auto loans. Strong brands in Australian and New Zealand. In excess of $1b worth of loans originated for consumers. Our prudent and successful approach to customer care and Originating over $1m in collections management. loans every business day. 2 2
Board of Directors Stuart Robertson Kate Robb Symon Brewis-Weston Scott Baldwin Terri Bakos Non-Executive Director & Non-Executive Director & Non-Executive Director & Managing Director & Company Secretary Chair of the Board Chair of the Audit & Risk Chair of the Remuneration & Chief Executive Officer Committee Nomination Committee Qualification Qualification Qualification Qualification Qualification B.Acc. ACA B.Econ (Hons), Dip. Finance, GAICD, MBA, B.Eng. B.Com ACA FINSIA GAICD B.Acc. ACA, ACIS Masters in Applied Finance (Hons) MBA 3
Executive Management Siva Subramani Michael Neville Craig Harris Roy Gormley Chief Operating Officer Chief Financial Officer General Manager Chief Executive Officer Money3 (Australia) Money3 Money3 (Australia) Go Car Finance (New Zealand) Michael joined Money3 in June 2019 Siva joined Money3 in 2017 as the Craig joined Money3 as Chief Roy owned Go Car Finance group and brings a wealth of experience in Head of Treasury before being Financial Officer in 2009 and is prior to acquisition and brings appointed Chief Financial Officer team leadership, sales, marketing and currently focused on the extensive experience to the team business strategy development and in 2018. Prior to joining Money3 growth of the secured in the consumer lending sector in Siva was a Director with PwC execution across several industries. automotive lending (Australia). New Zealand . Michael is focused on leading providing assurance and advisory productivity enhancements across the services in the banking and capital group. markets sector specialising in the asset-finance sector. 4
FY19 – Highlights FOCUS STRONG CASH POSITION GROWTH & CAPABILITY Taken strategic decision to focus on Sold branch network and Cash Train Entered ASX300 and added to the provision business (now paid in full) which executive team enhancing capability of secured automotive increased cash reserves by $45m for growth loans along with large funding headroom GEOGRAPHIC EXPANSION PRODUCT EXPANSION IMPROVEING CREDIT QUALITY Acquired Go Car Launched new products to expand Exited Small Amount Credit Finance in New Zealand expanding our addressable market of new and Contract Lending addressable market pre-owned vehicles 5
FY19 - Highlights: Growth and performance continues market share: 1 in 500 1 in 800 Increased registered vehicles in New Zealand currently registered vehicles in Australia have a loan with Go Car Finance currently have a loan with Money3 Increased New Zealand ‘debt funding head room’ 25% Revenue 48% Gross with the growth loan book growth Bank of New Zealand Paid 10 cent fully Normalised franked dividend NPAT of $35m 6 6
FY19 - Financial results Group Financial Results Strong cash position receiving FY19 FY18 Mvt % (continuing operations) $45m as a result of sale Amounts in $m unless otherwise stated 24.6% Revenue 91.7 73.6 24.6% Increase in revenue Expenses 42.2 33.1 27.5% Funding capacity supports over Expenses ( One-off ) 2.0 - $125m in gross loan book growth 17.3% EBITDA 47.5 40.5 17.3% Increase in EBITDA as % of revenue 51.8% 55.0% Group EBITDA NPAT 24.2 21.2 14.2% FY20 NPAT growth forecast to exceed NPAT as % of revenue 26.4% 28.8% 25% from continuing operations EPS (Basic) 14.2% 13.48 13.17 2.4% cents per share Increase in Group NPAT Note: Expenses increased as a result of: Expanding addressable market by • One-off Go Car Finance acquisition and integration costs • One-off divestment expenses of SACC related businesses geography and product • Revenue growth to exceed expense growth in FY20 as acquisition and divestment synergies take effect Continuing Operations 7
FY19 - Collections Best in class customer care team managing over 50k active accounts Strong cash collections up 22% Q1 pcp Material improvement in bad debt performance* Well proven customer management processes *Targeting 4.5% - 5.5% in bad debts for FY20 8
FY20: A new set of wheels 9
FY20 - Strategic focus Revenue growth Technology • Sales and marketing initiatives targeted at expanding • Investing in smart and innovative technology to improve growth, addressable market scale and customer experience • Product expansion into new and preowned vehicles, lifting credit • Streamlining loan decisioning process quality • Increasing 3rd party integration driving improved data quality and speed of lending decisions • Strong focus on returning customers • Enhancing customer experience through simpler user- • Returning customer program in New Zealand (leveraging friendly application processes lowering turn around times Australian model) • Providing payment options allowing customer to make • Expanding profit share model with dealers in New Zealand payments 24 hours a day • Making the most of the current market opportunity – banks have Funding reduced appetite for vehicle finance in Australia • Accessing to wholesale credit markets to increase funding capacity to support growth of loan book • Improving funding terms, lowering overall cost of debt 10
AU - Strong growth in New products originations / settled loans launch growing monthly loan originations Loan Originations Loan Count Loan originations (AUDm) '000 250 40 35% Forecast Australian 200 30 loan application growth in Q1 pcp 150 20 205 100 173 26k 135 130 10 50 Loans forecast to 95 80 be originated - 0 in FY20 FY15 FY16 FY17 FY18 FY19 FY20 Loan originations ($m) No. of loans (#) 11
NZ - Strong growth in originations / settled loans New product launch growing Loan Originations Loan Count monthly loan Loan originations (AUDm) '000 originations 80 8 Strong application 60 6 Forecast volume and increased access to funding 40 4 Circa 5k 56 Loans forecast to 20 2 be originated in FY20 14 - 0 FY19 FY20 Loan originations ($m) No. of loans (#) FY19 represents the post acquisition period (five months ended 30 June 2019) 12
AU - Gross loan book growth (AUDm) Loan Book Strong FY20 loan book growth 1,000 (replacing divested divisions) will Aspiration underpin record FY21 NPAT 800 600 Expect new debt facility (FY21) to Forecast support growth, improve scale and profitability 400 800 200 380 310 New originations are improving the 253 214 152 quality of the gross loan book - now 107 0 targeting 4.5% to 5.5% bad debts FY15 FY16 FY17 FY18 FY19 FY20 .. .. FY23 13
NZ - Gross loan book growth (AUDm) Loan Book Strong FY20 loan book growth will 250 underpin record FY21 NPAT Aspiration 200 150 Increasing debt facility to support growth, improve scale and Forecast profitability 100 200 50 101 New originations are improving the 64 quality of the gross loan book and 0 improving loss experience FY19 FY20 .. .. FY23 14
Product Expansion - Australia Australian vehicle loans now up to $50,000 Broader market New products Targeting growth of Targeting returning Entering the $14b 1 appeal to all launched targeting a near prime customers with customer segments, greater share of the new vehicle finance customers with credit preferential rates and $6b 1 used vehicle leveraging our 500k market scores above 600 dedicated team customer database finance market 1 ABS, 5671.0 Lending Finance, Australia, November 2018 (14 August 2019) Table 9 – Finance Commitments, for Motor Vehicles: Australia, Original ($000) <http://www.abs.gov.au/ausstats/abs@.nsf/mf/5671.0>. 15
Geographic Expansion – New Zealand 96% of clients would recommend Go Car Finance* Innovative products to address the life Wide product range Access to funding cycle of car addressing all client has allowed us to lift ownership – make credit profiles dealer engagement the weekly payment all encompassing *Internal customer satisfaction survey conducted in 2019 16
Technology – Growing advantage Flexible application processes for customers Improve Simpler integration with 3 rd application party providers process Reduce time to Simplify document decision delivery A NEW SET OF WHEELS 17
Funding – Enabling growth In active discussions to add an Australia additional bank to existing syndicated facility expanding funding capacity Long runway for new loans with $50m of undrawn debt facility and $30m of cash reserves New Zealand In active discussions with financial institutions to increase funding capacity and lowering costs Lending capacity to support over $125m in gross loan book growth 18
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