Slovar Limited — AGM Information 2020

Nov 26, 2020

ASX: MNY

money3

2020

Annual General Meeting

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Board of Directors

Stuart Robertson
Non-Executive Director & Chair of the Board

Member of Audit & Risk Committee and Remuneration & Nomination Committee

Qualification
B.Com ACA FINSIA GAICD MBA

Age: 49 years old

Kate Robb
Non-Executive Director & Chair of the Audit & Risk Committee

Member of Audit & Risk Committee and Remuneration & Nomination Committee

Qualification
B.Acc. ACA

Age: 49 years old

Symon Brewis-Weston
Non-Executive Director & Chair of the Remuneration & Nomination Committee

Member of Audit & Risk Committee and Remuneration & Nomination Committee

Qualification
B.Econ (Hons), Masters in Applied Finance

Age: 51 years old

Scott Baldwin
Managing Director & Chief Executive Officer

Qualification
Dip. Finance, GAICD, MBA, B.Eng. (Hons)

Age: 45 years old

Terri Bakos
Company Secretary

Qualification
B.Acc. ACA, ACIS

Age: 52 years old

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About money3

A customer-focused auto-loan specialist providing competitive loans to consumers.

Strong brands in Australian and New Zealand.

20 years of consumer lending experience and over 10 years specialising in auto loans.

In excess of $1b worth of loans originated for consumers.

Originating over $1m in loans every business day.

Prudent and successful approach to customer care and collections management.

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FY20 Financial Results

| Group Financial Results
Amounts in $m unless otherwise stated | FY20
(Statutory) | FY20
(Normalised) | FY19
(Statutory) | Mvt %
FY20 Normalised
Vs
FY19 Statutory |
| --- | --- | --- | --- | --- |
| Revenue | 124.0 | 124.0 | 91.7 | 35.3% |
| Bad debts, net | (23.6) | (20.8) | (13.1) | 58.8% |
| Movement in impairment provisions | (14.4) | (4.3) | (2.6) | 65.4% |
| Expenses | (36.9) | (38.2) | (29.7) | 28.6% |
| EBITDA | 49.1 | 60.7 | 46.3 | 31.1% |
| EBITDA as % of revenue | 39.6% | 49.0% | 50.5% | |
| NPAT (continuing operations) | 22.2 | 30.3 | 23.3 | 30.1% |
| NPAT (discontinued operations) | 2.0 | 2.0 | 5.0 | -60.0% |
| NPAT Total | 24.2 | 32.3 | 28.3 | 14.2% |
| NPAT Margin
(continuing operations) | 17.9% | 24.5% | 25.4% | |
| EPS – Basic (continuing operations)
cents per share | 12.08 | 16.50 | 13.00 | |

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Highlights - Q1 FY21

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Revenue

increased
12.3%
to $33.7m
on pcp

Statutory NPAT

increased
33.3%
to $10.0m
on pcp

Normalised NPAT (for job keeper)

$8.8m
up 17.3%
on pcp

Strong positive cashflow impact from government stimulus to customers

Approximately 3% of customers reduced payments due to COVID19 - minimal impact on cashflows

Q1 Bad debts were significantly under expectation - no impairment provision release until Q4

New loan originations

(cash advanced)
10.1%
increase on pcp

Loan book

increased
12.3%
on pcp, 1.3%
Increase since
June 30

Cash collected

increased
31.1%
on pcp, contributed
to marginal growth
in loan book

Victorian lockdown and early Superannuation release reduced finance demand for vehicles in Q1

Strong NZ loan book growth in Q1 and post lockdown momentum building in AU

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Q1 FY21 Financial Results (unaudited)

| Group Financial Results
Amounts in $m unless otherwise stated | Q1
FY21 | Q1
FY20 | Mvt % |
| --- | --- | --- | --- |
| Revenue | 33.7 | 30.0 | 12.3% |
| Bad debts, net | (4.4) | (5.1) | (13.7%) |
| Movement in impairment provisions | (1.2) | (1.3) | (7.7%) |
| Expenses | (8.8) | (8.8) | - |
| EBITDA | 19.3 | 14.8 | 30.4% |
| EBITDA as % of revenue | 57.3% | 49.3% | |
| NPAT (continuing operations) | 10.0 | 7.5 | 33.3% |
| NPAT Margin
(continuing operations) | 29.7% | 25.0% | |
| Normalised Results
Amounts in $m unless otherwise stated | Q1
FY21 | Q1
FY20 | Mvt % |
| --- | --- | --- | --- |
| Reported EBITDA | 19.3 | 14.8 | 30.4% |
| Less: Receipts under Job Keeper program | (1.7) | - | - |
| Normalised EBITDA | 17.6 | 14.8 | 18.9% |
| Normalised NPAT | 8.8 | 7.5 | 17.3% |

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FY20 - New Zealand (Acquisition continues from strength to strength)

• Go Car finance acquisition completed in March 2019
• Strong strategic fit with group
• Growing contributions to loan book growth (Loan book doubling since acquisition) and profitability
• 17% contribution to group revenue and growing
• 1 / 700 registered vehicles in New Zealand financed with significant opportunity to grow
• Margins expected to improve with loan book growth
• Has delivered growth to business during Victorian lockdown

*Adjusted for acquisition period

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COVID19 Business impact

Record new loan originations post lockdown, despite tighter credit criteria minimising exposure to affected industries

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FY21 - Outlook

Forecast NPAT $34m

• Our full year forecast takes into consideration the continuing uncertainty around the COVID-19 situation.
• Specifically, the forecast assumes the following:
• No prolonged lockdowns occurring in the reminder of the financial year;
• Stability in unemployment rates;
• Announced Government stimulus packages remaining in place until March 2021; and
• No adjustment to the $10m economic outlook provision taken in FY20.

Loan book in excess of $500m by FY21

Continue to pursue Strategic Acquisitions to add scale to the business in terms of product offering or distribution channels.

money3

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How to Vote

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Business of Meeting

To receive the Financial Statements for Money3 Corporation Limited for the year ended 30 June 2020, together with the Directors' Report and the Auditor's Report as set out in the Annual Report.

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Resolution 1: Remuneration Report

To consider and, if thought fit, pass the following as an ordinary resolution:

"That the Remuneration Report section of the Director's Report for the Company for the year ended 30 June 2020 be adopted."

	QTY	%
FOR	78,582,888	82.61
AGAINST	16,375,569	17.21
OPEN	169,811	0.18
TOTAL VALID	95,128,268	100.00
ABSTAIN	337,595

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Resolution 2: Re-election of a Director

To consider and, if thought fit, pass the following resolution as an ordinary resolution:

"That Symon Brewis-Weston having retired by rotation in accordance with clause 79(4) of the Company's Constitution, being eligible and having offered himself for re-election in accordance with clause 79(5) of the Company's Constitution, be re-elected as a Director of the Company."

	QTY	%
FOR	102,662,239	99.70
AGAINST	160,149	0.16
OPEN	150,082	0.14
TOTAL VALID	102,972,470	100.00
ABSTAIN	326,999

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Resolution 3: Issue of Performance Rights

To consider and, if thought fit, pass the following resolution as an ordinary resolution:

"That, pursuant to ASX Listing Rule 10.14, Section 200B of the Corporations Act 2001 (Cth) ("the Act") and all other purposes, Shareholders approve the issue of certain Performance Rights to Mr Scott Baldwin under the Company's Employee Equity Plan ("EEP") together with the Accelerated Exercise Period in respect of those Performance Rights for the purposes of section 200B of the Act on the terms as set out in the EEP and explanatory memorandum."

	QTY	%
FOR	90,107,420	94.67
AGAINST	4,939,916	5.19
OPEN	136,182	0.14
TOTAL VALID	95,183,518	100.00
ABSTAIN	282,345

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Resolution 4: Change of Company Auditors

To consider and, if thought fit, pass the following resolution as an ordinary resolution:

"That, for the purposes of the Corporations Act 2001 (Cth) and for all other purposes, BDO Audit Pty Ltd, having been nominated by a member and consented in writing to act in the capacity of auditor, be appointed as auditor of the Company."

	QTY	%
FOR	102,691,892	99.82
AGAINST	18,502	0.02
OPEN	170,311	0.16
TOTAL VALID	95,183,518	100.00
ABSTAIN	418,764

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Resolution 5: Grant of Financial Assistance

To consider and, if thought fit, pass the following resolution as a special resolution:

"That, pursuant to Section 260B(2) of the Corporations Act 2001 (Cth) ("the Act") and for all other purposes including Section 260A of the Act, Shareholders approve Money3 Corporation Limited granting, Financial Assistance to Mr Scott Baldwin and the SV Superannuation Fund, by way of a Deferred Payment Arrangement to acquire Ordinary Shares in the Company (upon the exercise of existing options that were issued to Mr Scott Baldwin outside of the Company's Employee Equity Plan) on the terms as set out in the explanatory memorandum."

	QTY	%
FOR	92,959,089	95.45
AGAINST	4,183,914	4.30
OPEN	250,403	0.25
TOTAL VALID	97,393,406	100.00
ABSTAIN	806,927

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Thank for your attendance

Questions?

Disclaimer

The content of this presentation has been prepared by Money3 Corporation Limited (the Company) for general information purposes only.

Any information included in this presentation on COVID-19's impact on future financial performance, including industry sectors, income, profit and employment types, represent estimates of management. However due to the unprecedented nature of the events, these views are inherently uncertain and Money3 takes no responsibility for the accuracy of such views.

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.

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