Payright : PYR FY22 Half Year Results Presentation

For personal use only

H1 FY22

Business Update

February 2022

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© PAYRIGHT LTD 2022

For personal use only

Half-year summary

H1 FY22 Financial Highlights

Gross Receivables $89.9 million, up 64% on prior corresponding period (pcp) (H1 FY21: $54.7 million)

Gross Merchandise Value (GMV) up 69% to $61.9 million (H1 FY21: $36.7 million)

Revenue $7.9 million, up 36% on pcp (H1 FY21: $5.8 million)

Total merchant stores up 26% to 3,617 (H1 FY21: 2,874), reflecting the deeper vertical diversification and sector focused onboarding

Average Transaction Value increased to $4,106 (H1 FY21: $3,576) with an average loan tenure of 33 months, reflective of Payright's key point-of-difference for flexible payment solutions at the point of sale for larger, considered purchases

Operational Highlights

Partnerships with Mint Payments, Fin Pay, Masport, Service Seeking and Hipages owned NZ marketplace - Builders Crack to integrate and distribute the Payright offering across their merchant base

Merchant partnerships with O'Brien Group Plumbing and Electrical divisions, Stratco, Australian Outdoor Living, Bevmarks, Intoblinds and leading jewellery retailer, Bevilles

Progressed negotiations for new warehouse facility to support future lending capacity with a lower cost of capital - moved to "exclusivity" stage

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only	Momentum
continues to
use	build:
Gross Receivables grows
personal
to $89.9m
	Gross Receivables of $89.9 million up 64%
	vs. pcp, with growth of 16% vs. Q1 FY22
	Six consecutive quarters of GMV growth
For	with record quarterly GMV of $34.4
million in the December quarter, up 67%
on pcp and 25% higher than Q1 FY22
($27.6 million)
	Total customers increased 55%
	on pcp, to over 65,700
	Total Merchant stores increased
	to 3,617, up 26% on pcp

*All numbers include both Australia and New Zealand

Gross Receivables ($M)	GMV ($M)

+64%	+67%
Dec 21 Qtr vs.	vs. $20.6M in
Dec 20 Qtr	Q2 of FY21

	89.9			34.4
	77.3			27.6
	69.4		26.1
54.7	61.0	20.6	22.2

31 Dec 2020

31 Mar 2021

30 Jun 2021

30 Sep 2021

31 Dec 2021

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Total Customers (#)	Total Merchant Stores (#)

+55%	+26%
Dec 21 Qtr vs.	Dec 21 Qtr vs.
Dec 20 Qtr	Dec 20 Qtr

	65.7k		3,617
	59.3k	3,416	3,523
	53.5k
	3,124
	47.5k
42.3k	2,874

31 Dec 2020

31 Mar 2021

30 Jun 2021

30 Sep 2021

31 Dec 2021

31 Dec 2020

31 Mar 2021

30 Jun 2021

30 Sep 2021

31 Dec 2021

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AASB 9 Revenue grows to $3.9m for Q2

only	with contracted future revenues of $16.8 million as at 31 December.
use	AASB 9 Fee Income growth continues with a record Q2 of $3.9M,
which is up 47% on pcp
AASB 9 requires Revenue to be recognised over the life of the loan.
personal
With an average loan term of ~28 months, the majority of revenue
from the period's lending activity will be recognised in subsequent
periods
In addition to the record quarter, fee income from lending activity yet
to be recognised increased significantly from $14.7 million as at 30
September to $16.8 million as at 31 December 2021
For	Quarterly Fee Income Trajectory ($M)		Estimated fee Income Recognition for H1 FY22 GMV

				+47%	$61.9M
				vs. pcp			~81%
							Future
			3.8	3.9			Revenue1
		3.3
	2.9
2.7						~19%
Q2 FY21	Q3 FY21	Q4 FY21	Q1 FY22	Q2 FY22	H1 FY22 GMV	Income recognised	Income to be
						H1 FY22	recognised Post
							H1 FY22

1. Income to be recognised assumes the ongoing performance of
loans to their prescribed term. Actual performance may vary.	*All actuals include both Australia and New Zealand

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For personal use only

Credit Quality

30+ Days Arrears (% of Loan Book Receivables)

3.36% 3.18% 3.63%

2.77% 2.91%

Dec 20

Mar 21

Jun 21

Sep 21

Dec 21

Arrears as at 31 December increased slightly compared to the prior quarter reflective of seasonality over the Christmas and holiday period

Both the Arrears position and Actual Loss Experience are well below our provisioning (~6% of Gross Receivables as at 31st December)

Losses / Cumulative GMV

1.58%

1.64%

1.64%

1.67%

1.79%

Dec 20

Mar 21

Jun 21

Sep 21

Dec 21

Underlying losses relating to credit defaults increased slightly throughout the period to 1.79%

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LTD 2022

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