2016 Annual General Meeting
Agenda FY 2016 AGM Meeting Open Greg Pynt, Chairman Group Operating Results Business & Financial Review Peter Andronicos, CEO Operations and Strategy Highlights Q1 2017 APRIL 2015 Summary & Outlook Formal Business Greg Pynt, Chairman 2
Business Review Agenda FY 2016 Broker Strategy driving improved settlements and key operating metrics • – Additional “Home grown” brokers via the eChoice Academy – Substantial increase in our broker network Significant progress in implementing Digital Strategy • Fairfax (Domain) and new digital partnerships driving increased digital revenue – Platform enhancements to maintain our position as an industry leader – 3
Business Review (cont’d) Agenda FY 2016 Financial position strengthened • Operating costs further reduced driven by realignment of operations – Corporate debt down – repayments ahead of target – Corporate initiatives position eChoice to enter growth phase • Exited securitisation business (Firstfolio Capital) – ASX delisting completed in August 2016 – 4
Financial highlights FY 2016 Revenue Cash Gross Margin Cash Op EBITDA $ 42.2m $ 7.1m $ 20.8m Digital Revenues Settlements Operating Expenses 65.3% $ 3.2m $ 3.1b Net loss after tax at $9.3m was a big improvement on the previous year’s loss • of $18.5m Excluding the NPV impact the cash net loss after tax was $1.9m, compared with • a $16.4m loss in the prior year Encouraging signs of growth from our strategy with a 65.3% increase in digital • sourced revenues 5
Balance Sheet FY 2016 ($m) 30 Jun 16 30 Jun 15 $11.9m reduction in corporate debt Assets • Cash 3.4 7.3 Cash flows from $16.4b loan book Receivables 2.3 2.6 • supports financial position Loans and advances to customers - 130.4 NPV of trail commission income 109.8 129.4 Exit of Firstfolio Capital business in • Property, plant and equipment 0.8 0.5 October 2015 Intangibles 19.9 20.0 Total assets 136.3 290.2 Net capital release $7.8m with $8.0m • Liabilities used to reduced debt Payables 3.9 3.6 Warehouse and other funding 0.0 127.0 NPV net asset decreased by $10.8m • NPV of trail commission expense 71.9 80.6 Borrowings 46.4 58.3 Provisions 0.6 0.7 Deferred tax 6.4 4.9 Total liabilities 129.0 275.1 Net Assets 7.2 15.0 6
Digital business FY 2016 Lead generation income significantly • higher driven by Domain and other In-house alliances Technology Concierge development support and team customer call Lead qualification to more than 57,000 centre – customers Core business Delivered in excess of 6,000 quality – Leading edge generators CRM system leads Serviced over 20,000 enquiries equating – to $9 billion of opportunities Customised lead generation program New portals were established with over • 259,200 people interacting with our tools, extending our digital footprint 7
Digital business FY 2016 eChoice launched and developed a number of market leading portals • firsthomebuyers.com.au “For somebody who looks at refinancing.com.au, yes there are 25 plus lenders, but it actually cross references the consumer against thousands of loan variations based on their specific needs” 8
Mortgage business - Settlements Mortgage business - Settlements FY 2016 FY 2016 Number of Brokers in eChoice’s network • In-house grew by 20% Concierge support and customer call Settlement volumes increased 3.3% to $3.1 centre • billion Core business Aggregation & Direct settlements up 5.6% – Broker generators training Academy Additional internal Home Loan Managers • added during FY16 and expected to significantly improve Direct channel Finance and lifestyle settlements product and service bundling Direct settlements up 18.6% in Q4 FY16 – Industry alliances provide commercial eChoice Academy graduates beginning to • diversification opportunities and service contribute to future growth with early that exceeds customer expectations successes 9
Mortgage business – Loan Book FY 2016 Loan Book ($b) Run off of loan book (%) 30% 2,335 2,115 25% 20% 15% 10% 11,919 5% 0% Wholesale Aggregation Direct Sep-16 Sep-15 Wholesale Aggregation Direct Loan Book $16.4b at 30 June 2016 • - Cash flow from loan book supports debt reduction and growth initiatives Loan book composition reflects the change in origination mix in line with the • strategic change Run off in wholesale is as expected following the strategic changes • 10
Highlights Q1 2017 Direct Settlements Broker numbers Digital Revenues 18% 28% 63% Direct up 18% in settlements over the pcp, compared to a 3% 1 decline in • the Australian market Broker numbers in the Aggregation business increased by 28% on the • same time last year Revenue from Digital sourcing and partner programs up 63% as a result • of the 40% growth in enquiries over the pcp New portal, refinancing.com.au launched to take advantage of the 22% 2 • growth in the last 12 months in Australian refinancing market 1. Source: ABS Table 11 Housing Finance Commitments, Sep 2016 2. Source: ABS Table 13b Housing Finance Commitments, Sep 2016 11
Summary & Outlook FY 2016 AGM Consolidate position as a fintech that moves with • the market with further portal launches planned Broker Remaining focused on helping our brokers • invest diversify their income by enabling them to target specific market segments with quality product offerings Build further capacity with existing technology • infrastructures, the new work flow enhancements Consumer solutions have been launched in November 2016, enabling Partner brokers to be more efficient connect Moving forward as a leader in fintech delivering • complete solutions for both consumers and industry participants 12
Formal Business Agenda Accounts & Reports • Group Operating Results Resolutions • 1. Election of Mr Dustine Pang 2. Re-Election of Mr David Walker 3. Re-Election of Mr Greg Pynt APRIL 2015 4. Consolidation of shares 13
Resolution 1: Election of Mr Dustine Pang To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of Rule 13.2 of the Company’s Constitution and of the Corporations Act, Mr Dustine Pang, a Director appointed by the Board since the last annual general meeting of Shareholders and retiring in accordance with the Company’s Constitution, being eligible and having offered himself for election be elected as a Director of the Company. ’ Proxies received FOR AGAINST OPEN ABSTAIN Shares 205,218,499 686,760 24,308,696 903,220 % 89.14 0.30 10.56 14
Resolution 2: Re-Election of Mr David Walker To consider and, if thought fit, pass the following resolution as an ordinary resolution: ‘That Mr David Walker, a Director retiring by rotation in accordance with Rule 16.1 of the Company’s Constitution and being eligible and having offered himself for re -election be re- elected as a Director of the Company. ’ Proxies received FOR AGAINST OPEN ABSTAIN Shares 204,324,898 1,470,277 24,414,828 907,172 % 88.75 0.64 10.61 15
Resolution 3: Re-Election of Mr Greg Pynt To consider and, if thought fit, pass the following resolution as an ordinary resolution: ‘That Mr Greg Pynt, a Director retiring by rotation in accordance with Rule 16.1 of the Company’s Constitution and being eligible and having offered himself for re -election be re- elected as a Director of the Company.’ Proxies received FOR AGAINST OPEN ABSTAIN Shares 204,431,030 1,490,277 24,288,696 907,172 % 88.80 0.65 10.55 16
Resolution 4: Consolidation of shares To consider and, if thought fit, pass the following resolution as an ordinary resolution: ‘That for the purposes of section 254H of the Corporations Act and for all other purposes, approval be given to consolidate the issued capital of the Company on the basis that ten (10) shares in the Company be consolidated into one (1) share, and where this consolidation results in a fraction of a share being held by a shareholder, the fraction will be rounded to the nearest whole share (with exact half shares being rounded up). The consolidation will take effect from the date that Resolution 4 is passed. Proxies received FOR AGAINST OPEN ABSTAIN Shares 202,329,494 4,475,820 24,288,696 23,165 % 87.55 1.94 10.51 17
Recommend
More recommend
