Wisr : Goldman Sachs Emerging Leaders Presentation

Q3FY20

Business

Update.

GOLDMAN SACHS

EMERGING LEADERS CONFERENCE

A P R I L 2 0 2 0	1

Table of

1. Q3FY20 BUSINESS UPDATE
2. GROWTH AND OUTLOOK

1. Q & A
2. GROWTH AND OUTLOOK

5

2

1.

Q3FY20 Business update

3

Business evolution.

Model proven - now scaling.

PHASE 2: FY19

"CREATING THE NEO-LENDER MODEL"

PHASE 3: FY20+

"SCALING THE COMPANY"

3 Diversified funding structure that will

significantly increase margin

3 Activate B2B2C channels with strategic

partners to reach millions of Australians

3 Aggressively build the Wisr Ecosystem

platforms to scale

PHASE 1: FY17-18

"FOUNDATIONS"

• Build market leading proprietary technology to manage end-to-end customer experience
• Build the right team to deliver the 5 year vision
• Utilise a low margin, capital light off balance sheet funding model to scale
• Demonstrate we can write $100M+ in personal loans, with strong credit performance

• Create a strong brand that resonates in market
• Create building blocks of the Wisr Financial Wellness Ecosystem (Wisr Ecosystem)
• Demonstrate we can attract tens of thousands of Australians into the Wisr Ecosystem at effective acquisition cost levels
• Demonstrate we can scale the Company effectively and efficiently
• Expand the team and culture to build the high performance outcomes required

3 Continue to deliver innovative features and

products to remain market leading

• Launch the Wisr secured vehicle finance product to increase total addressable market

4

Key numbers.

Delivering on milestones, keeping promises.

REVENUE GROWTH

LOAN ORIGINATIONS

WISR ECOSYSTEM

NET PROMOTER SCORES

UP 50%

UP 23% QoQ

UP 51.9%

+69 OVERALL

$2.0M

190.9K

$1.3M

$38.9M

+68

+68

+70

$31.6M

125.7K

Q2FY20	Q3FY20	Q2FY20	Q3FY20	AT 31 DEC 19	AT 31 MAR 20	CUSTOMER	BROKER	EMPLOYEE

LOAN FUNDING	90+ DAY ARREARS	LOAN VOLUME GROWTH	WELL CAPITALISED
TRIPLED MARGIN	UP 0.15% BUT STABLE	OVER $202M	IN LOANS	$42.4 MILLION CASH
		WRITTEN TO	DATE	AND LOAN ASSETS

1.66%

1.51%

$42.4M

New loan funding - approximate tripling of average loan unit economics.

31 DEC 2019

31 MAR 2020

DEC 17 - MAR 20

CASH AND LOAN ASSETS AS AT 31 MARCH 2020

5

Consistent growth of high quality loan book.

Loan originations ($M).

Loan book ($M).

Total loan originations (cumulative, to scale) Quarterly loan originations (number)

$68.1M $51.2M $16.9M

$39.3M $11.9M

$26.5M $31.3M $7.9M $3.3M $4.8M

DEC 17

MAR 18

JUN 18

SEP 18

DEC 18

$202.7M

$38.9M

$141.5M

$163.8M

$4.6M

$31.6M

$132.0M

$114.0M

$1.8M

$53.8M

$108.8M

$23.2M

$91.8M

$22.6M

$21.9M

$86.9M

$75.6M

$18.8M

$59.4M

$45.3M

$89.6M

$22.1M $31.6M

$83.1M

$12.7M $16.2M

MAR 19

JUN 19

SEP 19

DEC 19

MAR 20

DEC 17

MAR 18

JUN 18

SEP 18

DEC 18

MAR 19

JUN 19

SEP 19

DEC 19

MAR 20

1st $50m

2nd $50m

3rd $50m

4th $50m

OFF-BALANCE SHEET

WAREHOUSE TRUST*

OTHER

45 MONTHS

8 MONTHS

6 MONTHS

4 MONTHS

*NAB are senior funder

6

New model driving significant revenue growth.

2,500,000
2,000,000
1,500,000
$
1,000,000
500,000
0
Q1FY19	Q2FY19	Q3FY19	Q4FY19	Q1FY20	Q2FY20	Q3FY20

REVENUE GROWTH COMMENTARY

Q3FY20 is the first quarter Wisr has run its business model with the new funding facility. Noting only $22.6 million was in the warehouse at the start of the quarter, and $53.8 million in the warehouse by 31 March 2020. This new model and unit economics will deliver significant revenue growth over the coming quarters.

7

Winning Australia's best customers.

Market leading, consistent credit quality lead indicators.

AV E R AG E E Q U I FA X 1 . 1 C R E D I T S C O R E S

700

680

660

640

620

600

580

560

PERSONAL LOAN ENQUIRIES - CUSTOMER SCORE COMPARISON

Based on Equifax credit score comparisons for personal loan enquiries, Wisr continues to attract consumers with higher credit scores across the industry, including the Big 4 Banks and category peers.

NOV 17

MAY 18

NOV 18

MAY 19

NOV 19

	WISR		BIG 4		PEERS

Source: Equifax Consumer Market Demand and Risk Benchmarking Dec 2019

8

Maintaining credit quality.

Credit quality of Wisr's loan book remains strong.

4.00%

3.50%

3.00%

2.50%

2.00%

COVID -19 COMMENTARY

Stress testing analysis confirms very low balance sheet exposure to high risk categories that have been or likely to be most impacted by COVID-19.

Total portfolio arrears are stable with 90+ Day arrears of 1.66% at 31 March 2020, well below internal risk appetite triggers.

1.50%

1.00%

0.50%

0.00%

JUN 19

SEP 19

DEC 19

MAR 20

PRIME CUSTOMER BASE

Wisr continues to automate, simplify and optimise its credit policy and underwriting process.The Company will maintain an ongoing review of credit policy and risk appetite delivered through its proprietary Intelligent Credit Engine (ICE).

90+ DAY ARREARS

9

Significantly improved unit economics.

Illustrative customer value and revenue model.

$12,000

MARGIN c. 18%

MARGIN c. 57%

$10,000

OLD WISR

REVENUE

$8,000

$6,000

NEW WISR

REVENUE

$4,000

$2,000

$0

SINCE NOVEMBER 2019

FUNDER REVENUE

FUNDING COSTS

LOAN IMPAIRMENT

WISR NET MARGIN

NEW MODEL ASSUMPTIONS (EXAMPLE ONLY)

• Total loan revenue: $10.2K
• Loan size: $30,000
• Tenor: 60 months
• Gross yield: 12.5% p.a. (recognised in P&L)
• Loan impairment: 1.75% p.a.
• Funding costs: 3.5% p.a.

10

Scalable, profitable model live.

First full quarter with significantly improved margin in place.

$140.0

$120.0

$100.0

$80.0

$60.0

$40.0

$20.0

$0

$4.6M

$53.9M

$83.1M

LOAN BOOK AS AT 31 MARCH 2020

OFF-BALANCE SHEET

WAREHOUSE TRUST

OTHER

LOAN FUNDING COMMENTARY

• $141.5M total loan book as at 31 March 2020
• A dual funding model strategy has been adopted in light of COVID-19, with off-balance sheet funding being utilised alongside the loan warehouse to manage risk and optimise capital management
• The warehouse trust is the go forward funding source with vastly improved loan unit economics
• Warehouse trust - 4 classes of notes:

Class 1 NAB

Class 2 & 3 Blue Chip Australian Financial Institution

Class 4 Wisr (5% of capital structure)

• $95M committed funding for warehouse trust
• Secured vehicle loans to be funded via existing warehouse trust with potential for dedicated facility at scale

11

COVID-19 Commentary.

LOAN BOOK

• The strength in the Balance Sheet positions the Company very well through the COVID-19 period and beyond
• After successfully filling over $50 million into the NAB loan warehouse facility during Q3FY20, a dual funding model strategy has been adopted, with previous off-balance sheet funding being utilised alongside the warehouse to reduce risk and optimise capital management during the period of COVID-19 disruption
• Deliberate moderation in loan originations through Q4FY20, as the Company takes a conservative view on the outlook of COVID-19

RISK EXPOSURE

• Stress testing analysis confirms very low balance sheet exposure to high risk categories that have been or likely to be most impacted by COVID-19
• High risk COVID-19 categories have been expanded to ensure the Company's risk policy is as effective as needed
• Total portfolio arrears are stable with 90+ Day arrears of 1.66% at 31 March 2020, well below internal risk appetite triggers
• Tightening of the Company's credit policy and proprietary decision engine rules have been implemented
• The Company's Fintech business model is well placed to continue lending, operations and growth of its financial wellness products through COVID-19 disruption and post recovery

12

2.

Growth & outlook

13

Growth via the Wisr Ecosystem.

Wisr delivered on the preliminary roll-out of the Wisr Ecosystem, acquiring over 190,000 Australians to 31 March 2020.

The Wisr Ecosystem includes the launch of a number of individually powerful, and collectively unique products aligned to financial wellness.

14

The Wisr Ecosystem.

Over 190,000 Australians entered the Wisr Ecosystem.

200,000

150,000

100,000

50,000

0

JUL 18 AUG 18 SEP 18 OCT 18 NOV 18 DEC 18 JAN 19 FEB 19 MAR 19 APR 19 MAY 19 JUN 19 JUL 19 AUG 19 SEP 19 OCT 19 NOV 19 DEC 19 JAN 20 FEB 20 MAR 20

Source: Wisr data April 2020

	WISR PERSONAL LOANS		WISRCREDIT USERS		WISR APP DOWNLOADS	15

Wisr@Work

Partnerships.

Improving Financial Wellness in the workplace, the largest cause of workplace employee stress.

Wisr has announced a pilot Wisr@Work Financial Wellness program with Guild Super (75,000+ members and 16,000 employers). It is the first partner in the significant superannuation sector.

The Company has also launched a new pilot program with one of Australia's leading member healthcare charities (details to be released in the coming months), as well as on-boarding new strategic partnerships covering the finance, healthcare and mining sectors due to COVID-19.

16

Industry recognition for reinventing consumer lending.

17

Secured Vehicle drives 2020 growth.

(Pun intended.)

With a significant opportunity emerging, Wisr is transforming customers' ability to own and maintain their own vehicle.

• After a successful pilot, Wisr is launching a new super competitive secured lending product with market leading flexibility
• $80B+1 of annual vehicle sales and $20B+2 annual market for consumer vehicle financing
• The major lenders are retreating, creating opportunity for Wisr to leverage its market leading technology, brand, consumer reach as a disruptive new entrant
• Wisr is already setup for long term growth and scale. Wisr has secured use of its warehouse trust to support the funding and growth of this product

Source: 1 Roy Morgan: Report - State of the Nation 27: Australian Automotive Industry accelerates towards 'Decade of Upheaval' - March 2017 2 Royal commission into misconduct in the banking, superannuation and financial services industry: Report - Some Features of Car Financing in Australia

Secured vehicle loan product already awarded Gold in the Rate City new car lender category in February 2020.

18

A compelling investment case.

READY TO SCALE	Phase 1 and 2 of the business delivered on plan, with market leading technology built and a proven
business model.
COMPELLING UNDERLYING METRICS	All key numbers trending strongly for growth.
SIGNIFICANTLY IMPROVED UNIT	Mature model debt warehouse now live, driving significant revenue growth over the coming periods.
ECONOMICS IN PLACE
OPERATIONALLY STRONG	Our underlying core operations are profitable and we are investing in growth.
WELL CAPITALISED	With $42.4 million in cash and loan assets at 31 March 2020, positioning the Company very well
through the COVID-19 period and beyond.
DIFFERENTIATED STRATEGY	The unique Wisr Ecosystem (with more innovation in the pipeline), has attracted almost 200,000 Australians,
PRIMED FOR GROWTH	showing the ability for the Company to scale, attract more customers, and offer future credit products.
TRACK RECORD	Delivering to or exceeding our plan, and keeping our commitments. With new senior hires recently
joining, improving an already highly capable team.

19

3.

Q & A.

20

Disclaimer.

NO INVESTMENT ADVICE OR OFFER OF SHARES

This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose in any shares of Wisr, in any jurisdiction.

RISKS AND ASSUMPTIONS

This presentation contains statements (including forward-looking statements), opinions, projections, forecasts and other material, based on various assumptions. Whilst this presentation was prepared with care and attention, those assumptions may or may not prove to be correct. All forward-looking statements, whilst considered reasonable by Wisr at the date of this presentation, involve known and unknown risks, assumptions and uncertainties, many of which are beyond Wisr's control. There can be no assurance that actual outcomes will not differ materially from those stated or implied by these forward-looking statements, and readers are cautioned not to place undue weight on such forward-looking statements. To understand more about the risks and uncertainties faced by Wisr refer to the 2018 Annual Report.

Statements about past performance are not necessarily indicative of future performance. To the extent required by law, neither Wisr of any of its directors, officers, employees and agents give any warranty, representation

or guarantee as to the accuracy or likelihood of fulfillment of any forward- looking statement in this presentation or assumption upon which any part of this presentation is based or the accuracy, completeness or reliability of the information contained in this presentation.

NON-GAAP FINANCIAL MEASURES

A number of non-GAAP financial measures are used in this presentation. You should not consider any of these in isolation from, or as a substitute for, the information provided in the audited consolidated financial statements, which are available at: www.wisr.com.au

DOLLAR ESTIMATES

All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

21