A mobile-led financial services platform FY’19 Investor Presentation August 2019
Agenda Raiz Overview & FY’19 Highlights 1 3 2 Strategy 10 Raiz Invest Australia 10 Asia Expansion 17 FY’20 Outlook 4 21 FY’19 Financial Overview 5 24 2
A mobile-first financial services technology platform Savings Simple investing, mobile-first, • Raiz Invest 1 inside and outside of • Raiz Super Superannuation • Raiz Rewards Mobile-First Financial Services Customer transactions from Platform Payments 2 their Raiz Accounts linked to • Raiz bundll MasterCard real-time budgeting tools • Raiz My Finance Buy Now Pay Later 3 Scheduled to launch by • Raiz bundll MasterCard Q2FY20 Products & Services 4 Improving financial literacy • Financial Education +194,000 Active amongst all Australians • Raiz Kids Customers • Carbon Offset 3
Consistent customer growth Customers grew by 21% to +194,000 in FY’19 and Revenue per customer grew by 42% 250,000 $9.00 $8.00 200,000 $7.00 $6.00 150,000 $5.00 $4.00 100,000 $3.00 $2.00 50,000 $1.00 - $- * Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Paying Customers Revenue/Active Customer *199,433 Active Customers at 31 July 2019, forecasted at 4.6% growth 4
FY’19 was another year of strong growth 194,360 $347m +72% +42% +21% +74% Revenue from Active Raiz Funds Under Revenue Per Micro-Investing Users Management Active Customer Platform $6.98m 1,944 $48m $6.2m Raiz Super Raiz Super Group Cash at bank Accounts Invested Revenue (including term deposits) 5
Solid revenue growth from a diverse base Raiz delivered 72% revenue growth to $4.1m, driven by increases in customers and revenue per customer $1.4 Revenue (m) $1.2 7% $1.0 24% $0.8 20% $0.6 $0.4 49% $0.2 $0.0 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Maintenance Fee Account Fee Advertising Netting Maintenance Fee Account Fee Advertising Netting • A monthly Maintenance Fee of $1.25 was • A fee of 0.275% p.a. was charged on account • 198 rewards partners that pay to advertise on • Where acquisition or disposal of ETF units charged for active account balances of less balances equal to or greater than $5k. On the the Raiz platform, emails and mobile push does not require an on-market transaction, than $5k. From the 1 st August 2019 this 1 st August 2019 this changed to a $10k messaging. Raiz nets transaction, instead of paying away changed to $2.50 for accounts less than $10k. threshold. the bid/offer spread to the market based on the • Advertisers create loyalty by investing cash disclosed Netting Policy. back into Raiz accounts in or out of Super. 6
Portfolio returns Raiz achieved positive returns across all portfolios, above the Chant West Benchmark returns FY19 Raiz Portfolio Chant West Benchmark Conservative 6.88% 5.60% Moderately Conservative 8.35% N/A Moderate 8.78% 6.20% Moderately Aggressive 8.74% 7.00% Aggressive 8.75% 7.50% Emerald 10.92% 7.00% 7
Progress was made on all key metrics 198 64% +93k 23,843 +72% Raiz Rewards Raiz Rewards Raiz Kids Millennials Partners Transactions Accounts Representation +90k PT Raiz Invest Joint Venture Introduced Agreement with Indonesia Sign- Agreement with Intelligent Chatbot Flexigroup Ups PNB Malaysia Technology 8
Agenda Raiz Overview & FY’19 Highlights 1 3 2 Strategy 10 Raiz Invest Australia 10 Asia Expansion 17 FY’20 Outlook 4 21 FY’19 Financial Overview 5 24 9
Well defined strategy to deliver growth Strategy in Australia Asia Growth Strategy 1 Grow customers 1 Grow customers in Raiz Invest Indonesia Grow revenue per customer in Indonesia through new 2 Grow revenue per customer through products and services 2 products Improve customer engagement to increase longevity Launch Raiz Invest in Malaysia 3 3 Increase Customer Lifetime Value Progress current opportunities in Thailand and Vietnam 4 4 10
Raiz Invest Focusing on delivering financial services and products through mobile phones – the epicentre of our information world Highly engaged and rapidly growing customer base with opportunity to cross sell new products, as well as grow subscriber revenue to database of >700,000 customers (194,000 active) A well-established platform with multiple and diverse revenue streams across savings, investing, superannuation, spending and advertising Strong pipeline of new products and features to be added, requiring minimal capital expenditure Favourable market opportunity in Australia with high mobile penetration and substantial addressable market of ~10m Australians and already a 7% penetration and growing since launch in March 2016 Delivering on customer expectations through a continuous cycle of platform improvements 11
Raiz Invest has delivered solid growth Customers connect credit / debit card / bank account to round up / invest spare change, with no minimums, no trade commissions Average account balances increased by 24% to $1,544. Average Account Balance $1,800 $1,544 $1,600 FUM increased by 74% to $347 million as at 30 June 2019. $1,400 $1,200 $1,000 51% of FUM is made up of account balances of >$10,000. $800 $600 Continued growth in Raiz Super, now with > $48 million invested. $400 $200 $- Revenue from Micro Investment Platform grew by 72.2% to $4.1 million. Revised fee structure introduced in July 2019 will underpin continued revenue growth in FY’20. Funds Under Management $450 7,000 $m) $400 6,000 $350 5,000 $300 4,000 $250 $200 3,000 $150 2,000 $100 1,000 $50 $- - 12 Retail Super XJO ASX200
Raiz Super has grown rapidly in 12 months Since launching in July 2018, the Raiz Invest Super FUM has grown to $48 million. Customers can contribute to their Raiz Super via the Raiz App Total Superannuation FUM $48 $50 ($m) SG contributions. $45 $40 Automated recurring voluntary contributions. $35 Raiz Rewards, cash from advertising partners can be directed as a $30 voluntary contribution. $25 $20 Customers can view all investments and history in one place - their $15 mobile phones. $10 $5 Raiz Invest Super ranks in cheapest quartile for a Superannuation $- product, based on a SuperRatings review of over 440 superannuation funds. 13
Raiz Rewards growth gains momentum Raiz now has 198 established partnerships that fund either a Raiz Rewards is a loyalty program allowing users to generate percentage or fixed dollar cashback on purchases. cash invested into their Raiz Accounts inside and outside superannuation via partnership brands: Advertising revenue grew 181% to $824k in FY’19. 1) Users access the Raiz Rewards feature through the Raiz mobile app or website; and Total sales processed through the platform, totalled $14.1 million for FY19. 2) Example: User is redirected to the Catch.com site to make their purchase, and Raiz receives a margin on each Improved platform interface anticipated to accelerate growth of transaction. advertising revenue stream. No. of Partners vs No. of Transactions 30,000 200 Number of Partners Number of Transactions 180 Shop with Catch.com 25,000 160 and they will invest 140 2.8% of your purchase 20,000 120 price back into your 15,000 100 Raiz Account 80 10,000 60 40 5,000 20 - 0 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 No. of Transactions No. of Partners 14
Raiz Rewards Fashion & Skincare & Food & Accessories Cosmetics Beverage Currently, the Raiz Rewards program has 198 partners Furniture, Homewares Travel & Appliances Technology & Personal & Other Electronics Recreation 15
Agenda Raiz Overview & FY’19 Highlights 1 3 2 Strategy 10 Raiz Invest Australia 10 Asia Expansion 17 FY’20 Outlook 4 21 FY’19 Financial Overview 5 24 16
Asia Expansion Opportunity Raiz is leveraging its mobile first platform solution to expand offshore into Asia, benefitting from growing wealth in the region Thailand ➢ In pipeline Malaysia Vietnam • Finalised JVA with Malaysian ➢ In pipeline Partner • Established office in Kuala Lumpur with 3 FTE Expected launch Q3 FY’20 • Australia • Indonesia >700,000 customer sign ups • • Secured Mutual Fund Selling Agent >322,000 Investment Accounts • licence from OJK >194,000 active customers • • Established office in Jakarta with 5 FUM of $347m Launched FTE Well Progressed • App launched in Indonesia with +90,000 customers signups Pipeline 17
Successful launch of Raiz Invest Indonesia Strong customer signup of +90,000 users. Significant potential in Indonesia: Rapid population growth of consumer class (55 million in 265.4m 80m 132.7m 2018 growing to 110 million in 2030); Emerging wealth of consumer class which have skipped the Indonesian Internet PC; and Millennials Population Users Over 50% of the population have a mobile phone. Maintenance fee of IDR15,000 (approx. $1.50) a month plus fee on funds under management. Raiz positioned as an aspirational product to improve financial literacy and financial inclusion by hands on learning. 56% 82% 177.9m Raiz Indonesia is targeting millennials expected to attract 1 million users within 3 years of operations. Urbanised Do not have Mobile Phone Population Bank Accounts Users 18
Recommend
More recommend
