T h o r n e y A G M P r e s e n t a t i o n 2 1 N o v e m b e r 2 0 1 8 Scott Baldwin CEO & Managing Director
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Introduction With $84m 1 available Money3 is a leading Over 18 years in Broker and direct provider of pre- in deployable capital , business Money3 has business channels are owned automotive Money3 will grow its settled over 800,000 growing strongly finance to 4-5 million loan book and market loans worth over delivering 5 year Australians either not share $1 billion in value compound annual serviced by or growth rate (CAGR) in excluded by EPS of over 25%. traditional lenders 500,000 UNIQUE CUSTOMERS 1 As at 31 October 2018 3
Automotive market opportunity Australian automotive market Money3 Opportunity Huge Market Money3 market share $80Bn+ 1 of annual vehicle sales • • 1 out of 600 registered vehicles in $35.7Bn 2 of vehicles financed annually $80Bn • Australia is financed by Money3 $20Bn 2 annual market for consumer • • Money3 currently accounts for 2% of vehicle financing, of which used vehicle its target market and is on track to financing is $6Bn increase to 3% market share by CY19 Growing • Over 1.2M new vehicles and 2.1M used vehicle sales 3 annually. Market opportunity ~2.1% 3 increase number of cars on Australian • • ~$84m of deployable funds providing significant headroom for roads in 2017 (or over 400,000 vehicles) loan book growth • Significant investment into software integration across broker and Servicing Gap dealers enabling significant volume • 4-5 million Australians are either not growth serviced or excluded by traditional lenders. • Requires highly experienced customer care 1 Roy Morgan: Report - State of the Nation 27: Australian Automotive Industry accelerates towards ‘Decade of Upheaval’ function to serve appropriately 2 Royal commission into misconduct in the banking, superannuation and financial services industry: Report - Some Features of Car Financing in Australia 3 Australian Bureau of Statistics: Report - 9309.0 - Motor Vehicle Census, Australia, 31 Jan 2018 4
Money3 has the ability to monetise existing database ✓ On average, Australians change cars every 7 years 1 With more than 500,000 past and current ✓ customers, Money3 is presented with more than ~70,000 of its own customers in search of a new vehicle every year We are exceptionally well placed to mine our own database ✓ in search of repeat customers, at lower risk and capable of driving further efficiencies within the business 1 Roy Morgan: Report - State of the Nation 27: Australian Automotive Industry accelerates towards ‘Decade of Upheaval’ 1 Royal commission into misconduct in the banking, superannuation and financial services industry: Report - Some Features of Car Financing in Australia 5
Money3 – think Holden Commodore Tremendous focus on great service Car loans up to Cash loans up to $8,000 for for customers who traditional $35,000 over periods of repairs and or maintenance to credit providers often exclude up to 60 months vehicles
FY18 Highlights 12.8% Final FY18 dividend of 12.8% increase in Gross Loans Receivable to $308.1m 5.00 cents fully franked, taking full year dividend to 9.50 31.4% 31.4% increase in Broker Lending cents fully franked Revenue to $73.6 million 11.2% 11.2% increase in Group Revenue to $121.9 million Bad debts within 11.9% 11.9% increase in Group target range of 5- EBITDA to $56.6 million 6% of gross loans receivable 10.1% 10.1% increase in Group NPAT to $32.0 million 7
FY18 financial results FY18 financial results 31.4% Group Financial information (Audited) Increase in secured division Mvt % FY18 FY17 revenue to $73.6m Amounts in $m unless otherwise stated Revenue 121.9 109.6 11.2% Expenses (65.3) (59.0) 11.9% EBITDA 56.6 50.6 11.9% EBITDA as % of revenue Increase in Group EBITDA 46.4% 46.2% NPAT 32.0 29.1 10.1% NPAT as % of revenue 26.3% 26.5% 10.1% EPS (Basic) 19.91 18.81 5.8% cents per share Increase in Group NPAT Note: FY17 results were not restated for early adoption of the new accounting standards (AASB9 and AASB15) and is not comparable with FY18 results. On a normalised basis, FY18 EBITDA increased by 20%. 8
Strong start to FY19, record secured loan originations and cash collection Loan originations are key leading indicator to revenue and earnings growth 13.9% 22.8% 20.5% $264m 13.9% increase in 22.8% increase in 20.5% increase $264m of Secured secured revenues secured loan cash in secured loan Automotive receivables as on Q1 pcp advanced on Q1 pcp cash collected at end of October 2018 on Q1 pcp ~$84m ($50m debt and ~$34m cash) Money3 remains committed to exiting SACC available to accelerate loan book demonstrated by revenue, cash collection growth as at end of October 2018 and cash out all diminishing during Q1 9
Strong long-term growth Loan Book ($m) Revenue 121.9 308.1 109.6 273.1 96.7 198.8 69.0 156.4 9.1% 2015 2016 2017 2018 2015 2016 2017 2018 EBITDA 56.6 NPAT 32.0 50.6 29.1 80.6 % 35.3 20.1 24.4 13.9 2015 2016 2017 2018 2015 2016 2017 2018 10
Strong long-term growth in loan book Secured auto loans are the fastest growing product segment SACC Longer term loans 10.3 % 9.1% FY18 LOAN BOOK INCREASED 12.8% TO $308.1M 80.6 % Secured loans 11
Money3 has a strong presence with key channels, with a significant market opportunity to continue to grow In FY19 Money3 anticipates funding ~$170m of car purchases, out of $6bn in used vehicle financing opportunity 1 out of 600 registered vehicles in Australia is financed by Money3 Money3 already has a strong foothold in the used vehicle finance market through brokers and direct channels with a significant market to scale in
Board & Corporate Governance Symon Brewis-Westin Experienced and balanced Non-Executive Director, Chair of board Remuneration Committee (Independent) commences 27 November 2018 Leath Nicholson Ray Malone Non-Executive Director Chairman until 27 November 2018 Stuart Robertson Scott Baldwin Non-Executive Director, CEO & Managing Director Chair of Audit Committee (Independent) Non-Exec Chairman commencing 27 November 2018 13
Summary BOARD STUCTURE ACTIVITY AND COST GEOGRAPHIC SACC AND MARKET SHARE CONTROL EXPANSION REPRESENTATION The successful Money3 is actively Money3 continues to With Mr Robertson as Money3 is strategically expenditure review pursuing M&A focus on increasing its Chairman and Mr managing a transition program launched in opportunities with a market share in the Brewis-Westin joining away from SACC lending, FY17 has been view to expanding secured loans sector the board, MNY has a with a strong focus on extended into FY19 into complimentary through high-tech, low- balanced board with secured automotive with a particular focus product sets and touch broker three non-executive loans and unsecured on automation strengthening integrations as well as directors. longer-term loans. technology and an particular enhancing its own ongoing review of geographic areas. direct sales channels to consolidation across new, existing and paid- the branch network. up customers. 14
Appendix – Corporate Information Capital structure 4 $2.50 Shares on issue 179.67m 3.5 $2.00 3 Share Price as at 20/11/18 $1.675 2.5 $1.50 Market capitalisation $300.95m Volume (m) 2 $1.00 1.5 Cash as at 31 October-2018 $34m 1 $0.50 Financing facility available $50.0m 0.5 0 $0.00 Debt $98.1m Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Dividend per share (FY18) 9.50 cents 15
Scott Baldwin Siva Subramani Managing Director Chief Financial Officer s.baldwin@money3.com.au s.subramani@money3.com.au
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