Announcement PDF ASX RELEASE 1HFY2019 Results Announcement Wisr wins 2019 Lending Innovation of the Year and announces 441% increase in loan origination Sydney, Friday 1 March 2019 - Wisr Limited (ACN 004 661 205) (ASX: WZR), is Australia’s first neolender, committed to delivering financial wellness to all Australians by providing a smarter, fairer and wiser collection of financial products and services to consumers. Following release of its Appendix 4D, Wisr is pleased to present commentary on activities in 1HFY19 to accompany the lodgement of results for the half-year ended 31 December 2018. Key highlights include: ● ● ● ● ● ● ● ● $28 million in new loans in 1HFY19, up 441% on 1HFY18. Increase in revenue of 59% for the half-year ended 31 December 2018, up to $1.2 million from $759k during 1HFY18. Awarded “Lending Innovation of The Year” for the Wisr neo-lender model, merging the best aspects of emerging fintechs and traditional financial organisations at the 2019 Australian Lending Awards. Loan origination growth across the business - including settled loan application value for direct applications - increased by 62% in Q2FY19 versus Q1FY19. Further strength in the broker channel with existing broker aggregation partners and the addition of new partners such as Connective, Australia’s leading mortgage broker aggregator. Through leveraging Wisr’s underlying technology platform, the Group launched new non-loan products, such as Australia’s first credit score comparison service - WisrCredit - bringing more than 19,000 new users to the Wisr ecosystem since launch in October 2018. Wisr received recognition in industry awards, such as Wisr CEO Anthony Nantes being named 2018 Business Leader of the Year at the national Optus My Business Awards. The Group increased its Net Promoter Score, a measure of customer satisfaction, across the business to NPS +60 during 1HFY19, up from NPS +54 the previous half-year. This is considered best-in-class when compared across the banking and finance industry. Figure 1: 1HFY19 highlights Anthony Nantes, CEO Wisr said “this is an immense result delivered by a committed and high performing team. Wisr has created an entirely new business model. An ecosystem of intelligent product, tech and services that re-define the value chain for customers - extending the traditional role of what a lender does into a much more full funnel solution”. “We remain resolute and committed to the Wisr neo-lender strategy. Building a purpose led organisation with the genuine financial wellbeing of our customers at its center, at a time when it’s needed most.” Revenue The audited operational revenue result of $1.2 million for 1HFY19 is an increase of 59% on $759k for 1HFY18. The increase is attributed to revenue generating activities related to Wisr’s primary personal loan product. Key revenue line items are loan establishment fees and ongoing loan book management fees. Note the increase in revenue is non-linear with loan growth, due to higher interest revenue from loan assets held on balance sheet in 1HFY18 prior to the introduction of wholesale funding in October 2017. Figure 2: Wisr half-year revenue Loan Origination In the quarter ending 31 December 2018 new Wisr loan originations totaled $16.98 million, compared to $11.90 million in Q1FY19. It was the biggest six-month increase in loan origination value since the company began operations in 2014 and subsequently listed on the ASX in 2015. Wisr originated more than $28 million in new loans in the first half of this financial year, up 441% on the same period last year. Figure 3: Wisr quarterly loan origination growth, Q1FY17 - Q2FY19 Expenses The audited loss for 1HFY19 was $3.5 million, a 12% increase versus 1HFY18. The increase is attributed to a 26% increase in staff costs to $2.2 million, as Wisr rolls-out its growth strategy and new products. The Company has forward-hired in line with its growth strategy. During the same period, marketing costs decreased 57% to $417k while loan volumes increased 441% highlighting the efficient scaling of the business. Partnerships The Company continues to strengthen its corporate relationships through the Wisr@Work, Wisr&Co programs and other initiatives. Today, Wisr announces its partnership with global leader in engaging workplace cultures, O.C. Tanner, to provide employees with access to its Wisr@Work financial wellness program. Wisr@Work was launched in July 2018, offering affordable personal loan products, financial smartphone apps and financial education to thousands of employees throughout Australia across a range of industries. The program is aimed at relieving employee financial stress, which is reported to cost Australian businesses $40 billion annually in lost productivity. Wisr@Work will be available via all benefit programs delivered by O.C. Tanner to employees in Australia, alongside a comprehensive suite of discounted lifestyle products, services, gift cards and special offers from some of the country's best known brands. O.C. Tanner helps thousands of companies create peak moments that inspire people to achieve with its Culture CloudTM. The Company continues to roll-out the Wisr&Co platform, which is enabled through the Wisr proprietary technology platform and enables partners to offer consumer finance products through white label or cobranded programs. The Company will announce further corporate partnerships as they are finalised. Growth and technology In October 2018, it was announced that Wisr’s Intelligent Credit Engine (ICE), which performs sophisticated credit risk analysis, identity verification, personalised interest rate assessment and institutional lender matching, can now draw from a wider range of data sources to make lending decisions. Wisr is now able to automatically pull down two years of available transactional data into ICE to better assess the financial behaviour of potential borrowers. The ICE platform then synthesises up to 110 data points, including living expenses, to determine borrower suitability and personalise the interest rate. This is particularly important in an environment when many other lenders have been criticised about their approach to credit assessment. WisrCredit is the first service in Australia that allows customers to compare credit scores and information from major credit agencies. Since launching, the service has attracted more than 19,000 people to the Wisr platform. Figure 4: WisrCredit user growth, May 2018 - February 2019 The Company is committed to continually enhancing the use of its proprietary technology platform to deliver financial fairness to more Australians. It is now in the final stages of closed beta in preparation for the WisrApp launch, scheduled for release by the end of Q3FY19. The smartphone app will allow consumers to pay down debt using a unique transaction round-up model. Wisr also continued to strengthen its broker channel during the period, including the appointment to the lender panel of Australia’s leading mortgage broker aggregator, Connective, in August 2018. Almost 3,000 brokers on the Connective platform are now able to introduce personal loans to Wisr. More than 20% of brokers in Australia aggregate through Connective, which had more than $45 billion in settled loans last year1. In conjunction with other key broker aggregation partners, today more than half of all finance brokers throughout Australia are able to assist their clients with a Wisr personal loan. Growth through these channels, introduction of new products and continued performance of its technology platform positions Wisr for future growth. Customer satisfaction and recognition Wisr continues to lead the market in customer satisfaction, and in 2HFY18 Wisr launched its Net Promoter Score program to continually measure customer satisfaction across the Wisr business. In this financial half-year (1HFY19) the Group’s Net Promoter Score increased to an NPS of +60, up from +54 during the previous half-year. This is significantly better than many traditional lenders who, according to industry benchmarks, typically have an NPS of -8 to +6 for consumer financial services2. Wisr received recognition in industry awards, such as Lending Innovation of the Year at the 2019 Australian Lending Awards, and Wisr CEO Anthony Nantes being named 2018 Business Leader of the Year at the national Optus My Business Awards. Figure 5: Wisr recognition For more information on Wisr please visit www.wisr.com.au 1 2 Total Connective settled loans between October 2017-September 2018, www.connective.com.au DBM Consumer MFI Net Promoter Score, Australian population +14 (from Aug 16; +18 for data prior) -endsFor further information please contact James Goodwin Wisr Limited +61 2 8379 4008 investor@wisr.com.au About Wisr Limited Wisr (ASX: WZR) is Australia’s first neo-lender with a commitment to the financial wellness of all Australians, through providing a smarter, fairer and wiser collection of financial products and services. Wisr provides personal loans, the country’s only credit comparison service with Wisrcredit.com.au, apps, content and other products that use technology to provide better outcomes for borrowers, investors and everyday Australians.