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Slovar Limited AGM Information 2016
17773_rns_2016-11-23_8714a15b-fd5e-432f-b906-39fd8a206492.pdf
AGM Information
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money3
ANNUAL GENERAL MEETING
24 November 2016
Scott Baldwin
Managing Director
Ray Malone
Chairman
About Money3
money3
Money3 is a national credit provider committed to servicing the needs of customers who cannot access funding from traditional lenders.
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
Our Products
Secured Automotive Loans
money3
Our Products:
- Secured Automotive Loans, $2,000 - $35,000 over periods up to 60 months.
Growth of Secured Automotive Loans:
- Rapid organic growth since the introduction of a new lending platform in 2012, growing from around $13m gross loan book in FY12 to a current gross loan book of $170m at the end of Q1 FY17 (unaudited).
- The largest contributor to profit of all of our products, and will deliver significant revenue growth in FY17 due to loan book growth.
- Money3 will settle approx. 14,000 secured automotive loans in FY17, up from approx. 11,000 in FY16.
- With over 2.5m second hand cars changing hands in Australia annually, Money3 sees a significant growth opportunity in this product offering.
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
Our Products
Unsecured Personal Loans
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Our Products:
- Loans above $2,000 for terms greater than 12 months (larger amount longer term loans).
- Loans under $2,000 for terms under 12 months, known as Small Amount Credit Contracts (SACC's).
The Market for Unsecured Personal loans:
- Money3 will settle approx. 10,000 larger amount longer term loans in FY17, up from approx. 9,000 in FY16.
- There is strong demand for unsecured personal lending in Australia. There were 1.3m loans under $5,000 taken out in FY15 from major consumer credit providers, with $730m of credit provided at an average of $538 per loan.¹
¹ Core Data “Consumer Credit Industry Report” October 2015
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
Key Highlights FY16
money3
Total revenue of $96.7 million, increase of 40.0% (2015: $69.1 million)
Final dividend declared of 2.5 cents fully franked, taking full year dividend to 5.25 cents
Secured automotive loan revenue of $46.1 million, increase of 55.0% (2015: $29.7 million)
Gross Loan Book at $198.8 million, increase of 27.1% (2015: $156.4 million)
Net profit after tax of $20.1 million, increase of 44.4% (2015: $13.9 million)
EBITDA margin improved to 36.5% (2015: 35.3%)
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
money3
Financial Performance FY16
| FY16 $m | FY15 $m | Mvt % | |
|---|---|---|---|
| Revenue | 96.7 | 69.1 | 40.0% |
| Expenses | 61.4 | 44.7 | 37.4% |
| EBITDA | 35.3 | 24.4 | 44.7% |
| EBITDA as % of revenue | 36.5% | 35.3% | |
| NPAT | 20.1 | 13.9 | 44.4% |
| NPAT as % of revenue | 20.8% | 20.2% | |
| EPS (Basic) cents per share | 14.21 cps | 11.82 cps | 20.2% |
- Broker and Online driving strong revenue growth.
- Expense growth curtailed, with cost out program initiated to further improve EBITDA margin in FY17.
- Future growth to be funded by debt and re-investment of profits.
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
Strong EBITDA & NPAT growth YOY
money3
We continue to focus on improving EBITDA & NPAT returns in real terms and as a percentage of revenue
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
continued Growth in Auto Lending Q1 FY17
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Gross Loan Book $m
* Unaudited
- Strong demand for Secured Automotive Loans in Q1 has seen an increase in the Auto Loan gross loan book of $18.6m.
- Secured loans now represents 79.3% of the gross loan book.
- SACC loans declined $3.3m in Q1 FY17, in part as a result of branch closures.
- Unsecured lending (inc. SACC) expected to increase in the lead up to Christmas period.
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
Summary
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Funding
- Money3 has recently drawn a $30m funding facility to support the growth of the secured automotive loans business.
- Money3 is considering a number of debt proposals which it has received, that will seamlessly fund the rapidly growing loan book.
Business Outlook
- Money3 is experiencing strong growth in lending volumes.
- Continue to focus on improving margins through cost control.
- Guidance maintained at $26m NPAT for FY17.
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
money3
Disclaimer
The content of this presentation has been prepared by Money3 Corporation Limited (the Company) for general information purposes only. Any recommendations given are general and do not take into account your personal circumstances and therefore are not to be taken as a recommendation or advice to you. You should decide whether to contact your financial adviser so a full and complete analysis can be made in respect to your personal situation.
Whilst all care has been taken compiling this presentation neither the Company nor any of its related parties, employees or directors give any warranty with respect to the information provided or accept any liability to any person who relies on it.
ANNUAL GENERAL MEETING 24 NOVEMBER 2016
money3
Money3
Corporation Limited
Enquiries:
Scott Baldwin
Managing Director
e. [email protected]
Telephone Enquiries:
03 9093 8255
Head Office
Level 1 / 40 Graduate Road,
Bundoora, VIC 3083
ANNUAL GENERAL MEETING 24 NOVEMBER 2016