For personal use only FY18 Results & FY19 GUIDANCE 1
For personal use only | FY18 Results Presentation HIGHLIGHTS BUSINESS UPDATE FINANCIALS OUTLOOK Year at a glance Our fintech platform Our customer proposition Positioned for rapid growth Our market opportunity 2
FY18 Results | Highlights | Year at a glance › For personal use only 100 % New Increase of Securitisation Net Receivables over pcp to program established $336m $ 514 m Youngest Australian company In Gross to issue a Simple Corporate Bond Receivables $ 7 m More than 11,000 SME Increase of NPAT by end customers 94% over pcp 11.8 c Canadian business passes Basic EPS A$1.7m in originations 3
FY18 Results | Highlights | Our fintech platform › For personal use only Best in class customer and Ultra Scalable merchant efficient credit risk Optimised experience administration management funding › Advanced customer and › Real time credit approvals › Implementation of proven score › Continuous interest cost introducer application portals cards being installed into system optimisation › Automated credit bureau and identity verification › New customer log in screens › Initiative planned for machine › Initiative planned for real learning to optimise credit time re-balancing of portfolio decisions across funding lines Strong market Sustained cost Stable credit Reducing cost share gains advantage performance of funds 4
FY18 Results | Highlights | Our Customer proposition › For personal use only Unique financing Powered by Alignment with solution technology retail merchants Offering flexible Speed of acceptance benefiting Providing access to customers with facilities for SMEs merchant and customers untapped potential for future sales › Amortising operating lease › Seamless end to end system › Strong distribution channels (no residual/bullet), chattel › Integrated front end customer › White label offering to selective mortgage and other finance origination platform and back end retail merchants products offered loan management system › Strong brand awareness › Flexible features with annual › Bank statements reviewed and payment options › Tailored and strategic marketing assessed by IT system followed by materials › Hospitality structured with reducing credit analyst payments throughout the term › Development of innovative offering › Accelerated investment in IT systems to further entrench channels › All loans are secured by PPSR to increase capacity to support over equipment and personal growth and continue to improve 5 guarantees operating leverage
FY18 Results | Highlights | Positioned for rapid growth › For personal use only $336m FY 2012 FY 2014 FY 2017 FY 2018 Disruptive Expansion Launched Scalable digital into SME funding financing transport business platform launched vertical loans established Commenced Expanded into Successful launch Optimisation operations in transport and trial of business loans through $200m response to a need into other sectors leveraging digital warehouse for a unique product following strong expertise facility and $55m $168m offering and customer demand corporate bond 1 enhanced through a compelling digital finance solution Now positioned for rapid growth Significant technology investment following 6 Investment into technology to release updated years of product $53m platform and design new product development and technology $16m investment $4m NET LOANS FY 2014 › FY 2015 › FY 2016 › FY 2017 › FY 2018 › 6 1 Simple Corporate Bond settled July 2018
FY18 Results | Highlights | Our market opportunity › For personal use only $88b Release new products by leveraging platform SME Lending $11b Maintaining current Expansion into new origination volumes Lease Finance 1 segments would result in normalised long term $1.6b PBT of $25-30m Increase market share in per annum existing product offering Equipment Financing 2 $336m Source: 1. ABA, 2015 2. ABS Lending Finance, 2017 7 Current Loan Book +100% growth in FY18
For personal use only | FY18 Results Presentation HIGHLIGHTS BUSINESS UPDATE FINANCIALS OUTLOOK FY18 highlights Operational growth across all core business units Portfolio growth Revenue and finance costs 8
FY18 Results | Business Update | FY18 Highlights › For personal use only Operational Increased Origination Technology Funding growth market share focus upgrade optimisation › Consistent and strong › Continued rapid market › Current origination › Substantial investment › $200m securitisation performance in all share growth volumes forecast to in technology warehouse facility and operating metrics deliver double digit $55m Simple Corporate › Loan receivables › Second major core growth EPS Bond › Upgraded NPAT increasing by 100% in systems and platforms guidance achieved FY18 upgrade due in late 2018 › $32m in oversubscribed equity capital raised in FY18 7.0 FY18 growth FY18 growth 336 +94% +100% NET LOAN UNDERLYING 3.6 RECEIVABLES 168 NPAT ($m as at 30 June 2018) ($m) 1.4 53 FY16 FY17 FY18 FY16 FY17 FY18 9
Y18 Results | Business Update | Operational growth across all core business units › For personal use only EQUIPMENT FINANCING BUSINESS LOANS Hospitality Transport All Sectors Includes coffee machines, display units, Includes second hand trucks, trailers, Initially working capital funding in cooking equipment forklifts, light commercial vehicles and hospitality and transport, currently tools of trade expanding to all industries NET LOAN ($m) 99 NET LOAN ($m) 192 NET LOAN ($m) 16 88 12 65 124 48 6.7 69 31 19 27 15 5 1H16 2H16 1H17 2H17 1H18 2H18 1H16 2H16 1H17 2H17 1H18 2H18 2H17 1H18 2H18 Net loans $99m Net loans $192m Net loans $16m Gross loans $145m Gross loans $214m Gross loans $18m Average contract size $16k Average contract size $50k Average contract size $21k Average contract life 50 months Average contract life 58 months Average contract life 12 months Customers 5,405 Customers 2,094 Customers 729 10 * Equipment Finance and Business Loans are listed in detail. Does not include breakdown of all sectors.
Y18 Results | Business Update | Portfolio growth › For personal use only ASSETS UNDER 336 FY18 growth MANAGEMENT +100% 256 (Net Receivables $m) 167 Consistent and rapid loan book growth to $336m as at 88 30 June 2018 53 29 1H16 2H16 1H17 2H17 1H18 2H18 GROSS WEEKLY 4.4 PCP growth ORIGINATION VOLUMES +47% 3.4 ($m) 3.0 Average gross value expected to increase based on expansion 1.4 0.9 of introducer network 0.5 1H16 2H16 1H17 2H17 1H18 2H18 11
Y18 Results | Business Update | Revenue and finance costs › For personal use only 27.2 REVENUE AND FINANCE COSTS HALF YEAR BASIS 22.0 (Net Receivables $m) 13.6 Both revenue and finance costs Revenue continue to improve through 8.6 7.1 8.7 Finance cost 8.7 portfolio growth 3.8 3.4 2.5 1.8 0.7 1H16 2H16 1H17 2H17 1H18 2H18 AVERAGE ANNUALISED FUNDING COSTS (%) 10% 8% Optimisation of Axsesstoday’s 6% capital structure continues to reduce annualised funding costs 4% 2% 12 0% 2H16 1H17 2H17 1H18 2H18
For personal use only | FY18 Results Presentation HIGHLIGHTS BUSINESS UPDATE FINANCIALS OUTLOOK Financial results Profit and loss Balance sheet Funding update 13
FY18 Results | Financials | Financial results › For personal use only KEY FINANCIAL METRICS ($) FY18 FY17 Change (YoY) Strong growth in all key Loan receivables $336m $168m +100% operating metrics Revenue $50.8m $22.2m +129% $336m loan book will EBITDA $26.3m $11.4m +130% deliver 80-100% revenue NPBT $10.2m $5.2m +97% growth in FY19 NPAT $7.0m $3.6m +94% EPS (basic) 11.85cps 10.52cps +13% 14
FY18 Results | Financials | Profit and loss › For personal use only FY18 (m) FY17 (m) Variance Portfolio Income $50.8 $22.2 129% Finance Expenses ($15.8) ($6.2) 157% Net Portfolio Income $34.9 $16.0 118% Loan Impairment Expense ($7.3) ($2.5) 188% Employee Expenses ($9.4) ($4.8) 95% Administration & Marketing Expenses ($3.3) ($1.6) 108% Operating Expenses ($4.8) ($1.9) 148% NPBT $10.2 $5.2 97% EBITDA $26.3 $11.4 130% NPAT $7.0 $3.6 94% 15
FY18 Results | Financials | Balance sheet › For personal use only FY18 (m) FY17 (m) Variance Assets Cash $11.6 $2.4 383% Receivables $335.9 $167.4 101% Other Assets $12.0 $7.4 62% Total Assets $359.5 $177.2 103% Liabilities Trade Payables $3.5 $3.3 6% Senior Debt $58.2 $59.9 (3%) Corporate Bonds $78.2 $77.7 1% Securitised Notes $144.0 n/a n/a Other Liabilities $5.9 $3.0 96% Total Liabilities $289.8 $143.9 101% Equity $69.7 $33.3 109% 16
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