FY22 Investor Presentation
Profit and loss (pro forma and statutory)
Year ended 30 June 2022
Statutory
$'000
Pro forma Adjustments
$'000
Pro forma
$'000
Statutory
$'000
Year ended 30 June 2021
Pro forma Adjustments
$'000
Pro forma
$'000
Interest income
Other income
Total income
73,624
16,966
90,590
37,643
40,917
78,560
4,121
(3,638)
483
1,504
(999)
505
77,745
13,328
91,073
39,147
39,918
79,065
Interest expense
19,408
1,957
21,365
9,647
17,763
27,410
Incurred credit losses
11,354
9,512
20,866
4,787
13,839
18,626
Net lending margin
46,983
1,859
48,842
24,713
8,316
33,029
Movement in expected credit loss provision
16,023
(8,093)
7,930
8,285
(8,721)
(436)
Net lending margin after loss provision
30,960
9,952
40,912
16,428
17,037
33,465
Marketing expenses
22,067
0
22,067
16,475
0
16,475
Verification and servicing expenses
5,514
0
5,514
4,006
0
4,006
Net operating margin
Personnel expenses
Share based payment expenses
Technology expenses
General and administrative expenses
Depreciation and amortisation expenses
Total indirect expenses
3,379
9,952
13,331
(4,053)
17,037
12,984
10,450
0
10,450
9,170
71
9,241
2,930
0
2,930
4,078
0
4,078
4,459
0
4,459
3,245
0
3,245
4,281
0
4,281
7,728
0
7,728
1,438
0
1,438
1,046
0
1,046
23,558
0
23,558
Profit/ (Loss) before income tax
(20,179)
9,952
(10,227)
25,267
(29,320)
71
25,338
16,966
Income tax (expense) / benefit
0
2,864
2,864
2,286
1,173
(12,354)
3,459
Profit/(Loss) after income tax
(20,179)
12,816
(7,363)
(27,034)
18,139
(8,895)
Non-cash and other normalisation adjustments*
Movement in expected credit loss provision
16,023
(8,093)
7,930
8,285
(8,721)
(436)
Share based payment expenses
2,930
0
2,930
4,078
0
4,078
Depreciation and amortisation expenses
1,438
0
1,438
1,046
0
1,046
Borrower establishment fee rebate
0
0
0
4,000
0
4,000
IPO Expenses
0
0
0
3,172
0
3,172
Income tax impact of adjustments
Cash NPAT
0
212
(3,444)
1,279
(3,444)
1,491
(5,822)
2,501
(3,321)
(12,275)
11,919
(356)
* Cash NPAT provides a more accurate representation of the underlying profitability of the business, adjusting for the impact of non-cash and abnormal items, most significantly the movement in expected credit loss provision of $16m
in FY22, which is a non-cash provision for credit losses that may occur in future financial years from the existing loan book. With GAAP requiring recognition of an expected credit loss provision expense immediately on origination of a
new loan, without any indication of loan impairment and significantly ahead of recognition of the interest income priced to compensate for the expected level of credit loss risk, the expected credit loss provision expense will suppress
statutory net profit during periods of loan book growth, all other things being equal.
H
HARMONEY ©2022
FY22 INVESTOR PRESENTATION
31 AUGUST 2022
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