for personal use only - asx · fintech business of the year 2016 finalist ifa excellence awards...
TRANSCRIPT
Commercial in Confidence
Trading knowledge not just shares
ANNUAL GENERAL MEETING
29th November 2017
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Successful IPO raises $7.3M
to accelerate growth through
aggressive sales and
marketing
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✓ SelfWealth is an exciting and disruptive online share trading platform
✓ Online ‘flat fee’ $9.50 share trading provider - c.70% cheaper than peers
✓ Unique portal leverages member data to generate tradable insights for
investors
✓ Rapidly gaining traction – ~30% month-on-month growth in key metrics
since launch in Sep-16
✓ Clear plan to scale the business and upgrade users to subscription product
✓ Well funded to pursue an aggressive marketing campaign to
capture market share and grow revenue
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Investment Highlights
ASX Trading Information
ASX: SWF
Price: $0.16
Shares on issue: 129.5M
Market Cap: $21M
Cash on hand: $7.2M
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Tony Lally
Chairman
➢ Extensive financial services industry experience. Former Chair of Association of Superannuation Funds of Australia (ASFA), Chair of Precision Administration Services, International Centre for Pensions Management (ICPM) Director, and BPS Technology Ltd Director.
➢ Former CEO of Sun Super, also held Senior Executive roles with Deloitte, Deutsche Asset Management and Commonwealth Bank.
Andrew Ward
Founder & Managing Director
➢ Over 25 years financial services industry experience➢ Executive Manager - Commonwealth Private, responsible for financial planning, insurance and stock broking➢ National Sales Manager - Austock Group, responsible for distribution across various business division➢ Previous roles at St Georges Bank, Colonial First State, RetireInvest and AMP
John O’Shaughnessy
Non-Executive Director
➢ Former Director of A T Kearney, current director of the Centrepoint Alliance, Alpha Vista Financial Services and Chairman of Forticode. Director of the University of Adelaide’s International Centre for Financial Services Advisory Board and a member of the Macquarie University Faculty of Science and Engineering Advisory Council.
➢ John holds an MBA, a Fellow of the Governance Institute of Australia and a Fellow of the Financial Services Institute of Australasia. He is also a member of the Australian Institute of Company Directors.
John Gaffney
Non-Executive Director
➢ A senior lawyer and current ASX listed company non-executive director of Paradigm Biopharmaceuticals Limited. ➢ John was Legal Counsel for the Australian Financial Ombudsman Service providing internal legal advice on financial
services. He was a member of the Victorian Bar practising in commercial litigation. Prior to joining the Bar John was a senior member of the Victorian Law Institute internal compliance group.
Mark Lawrence
Chief Financial Officer & Company Secretary
➢ 20+ years of Chief Financial Officer and Company Secretary experience➢ A Chartered Accountant who has held senior finance positions with ASX listed companies including Lend Lease
Corporation, Programmed Group, Freestyle Technology. Mark also successfully listed Boom Logistics Limited
Board of Directors & Senior Management
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Target marketing for customer growth
Technology, systems and infrastructure development, testing and launch
Sep 16: Launch of SelfWealth trading platform and first revenues
FTSE/Russell SelfWealth 200 Index launches
2015: Large institutional investor, Washington H Soul Pattinson introduced to the register
2013: Strategic agreement with BGL to incorporate SelfWealth into their SMSF cloud solution
Strategic focus
2015: Strategic agreement with Powerwrap to facilitate trading through Pershing
2012: SelfWealth established and capitalised with A$2.3m via the Australian Small Scales Offerings Board
Mar 17: SelfWealthPREMIUM offer officially released
The journey so far: Groundwork complete and primed for growth
2012 2013 2014 2015 2016 2017
Oct 17: Trade volumes increase 21x to ~1,400 trades per week since launch in Sep 16 (c. 50 per week)
~27,000 trades executed using online platform
May 17: SelfWealth Mobile Applaunch
2014: Introduced unique re-balancing and managed account functionality
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Nov 17: Successful ASX listing, raising $7.3M
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Tradeable assets (A$m) - cumulative
Number of trades executedNumber of active traders - cumulative
Compound monthly growth rate (Sep-16 to Oct-17): 29%
Compound monthly growth rate (Sep-16 to Oct-17): 34%
Compound monthly growth rate (Sep-16 to Oct-17): 33%
Strong KPI traction since September 2016 platform launch
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38 65 116 150
207 297
401
608
810
998
1,145
1,327
1,508
1,690
Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
179
406
661 629
957
1,278
1,428
1,621
2,346
2,532
3,034
3,874
3,186
4,696
Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-174 5 8 12 19 29
4266 76
91
178196 208
232
1 1 2 45
810
1317
17
19
2022
25
Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
HINs Cash
HIN refers to holder identification number and represents securities held on the CHESS systemof the ASX
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Peer to peer investing solution
Growing A$1.7bn+ market opportunity
Our vision: Australia’s #1 ‘low-cost flat fee’ online share broker
Executing on a clear plan
Our Business Validation Recognition
1,690Active Trading
Members
A$25mTotal client cash holdings
(Oct 2017)
A$800m+Trade value executed
(Oct 2017)
2016 Winner Optus My Business Awards
Fintech Business of the Year
2016 Finalist Ifa Excellence Awards Innovator of the Year
2016 Finalist Optus My Business Awards
Innovator of the Year
2016 Winner Australian Business Awards
Software Innovation
2016 Finalist Benzinga Fintech Awards
2017 Finalist Fintech Business Awards
Investment Innovator of the Year
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$9.50 flat fee brokerage
A$232m Total value of client HINs
(Oct 2017)
4,906Trading Applications
launched
~27,000Total trades executed
(Oct 2017)
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SelfWealth has a huge opportunity to capture market share
Our trading costs are significantly more attractive than any other provider in the market… 1
1. Other brokerage costs based on the following companies – CommSec, ANZ, WBC, NAB, Bell Direct, IG Markets. Assuming one trade only (i.e. no volume discounts) –Current @ August 2017
...and we are only just beginning to optimise how frequently our users trade with us
Trade SizeSelf
Wealth
Comm
SecANZ
Bell
Direct
* IG
Markets
<$1,000 $9.50 $10.00 $24.95 $15.00 $8.00
$5,001 $9.50 $19.95 $24.95 $15.00 $8.00
$10,001 $9.50 $29.95 $29.95 $25.00 $8.00
$100,000 $9.50 $120+ $110+ $100 $100
$1,000,000 $9.50 $1,200+ $1,000+ $1,000 $1,000
*Shares acquired via IG Markets are not CHESS sponsored. These shares are held under
custody by IG Markets and shareholder do not have beneficial ownership of these shares.
Source : 2014 Investment Trends publication.
Online Trading Market Share
42%
15%
10%
8%
7%
5%13%
Commsec ANZ WBC NAB CMC Bell Direct Other
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Trading revenue PREMIUM revenue Interest revenue
Administration revenue
Exchange traded funds revenue
➢ Flat fee of A$9.50 per trade (irrespective of the trade size)
➢ Brokerage fees for both consumers and enterprise / corporate agreements
➢ Low cost brokerage
➢ A$20 per month (free access provided for the first 90 days)
➢ SelfWealth PREMIUM for consumers and enterprise / corporate agreements
➢ Subscription-based fees provide recurring revenue stream
➢ RBA cash rate + 0.5% p.a.
➢ Represents TRADING cash account interest income, with clients’ monies held with ANZ bank
Imminent revenue streamsExisting revenue streams
Margin lending
Data Licensing
Business model: Underpinned by three existing revenue streams,
with scope to add multiple additional sources in the medium term
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Advertising
Potential revenue streams
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SelfWealth PREMIUM access benefits
SelfWealth PREMIUM provides members with a range of performance enhancements alerts and emails, including:✓ Top Stock of the day, Most Traded Stock, Community Sentiment on stocks in your portfolio✓ Top Performing Members to Target, your performance vs Members like you, Trade movements✓ App notifications create reliance on SelfWealth PREMIUM with portfolio movements and other member/index activity.
An example below of tracking and applying PREMIUM comparative performance -> ASX 200 as a base compared to the SelfWealth 200 (SW200) over the past 2 years:
9.2%
14.5%
ASX 200 SW 200
SW200 Investment performance2 years to 31 July, 2017
58%
0% 20% 40% 60% 80%
SW 200
Relative higher performance of SW 200 to ASX200 - 2 years to 31 July, 2017
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Distribution strategy
Distribution strategy in place to maximise potential users and aligned with SelfWealth’s existing revenue model
Distribution channels
PrimaryD2C
➢ Solution provided directly to the end consumer
➢ SelfWealth TRADING and SelfWealth PREMIUM
SelfWealth is focused on distributing the platform through relevant channels with existing distribution networks
Potential business / users
➢ SMSFs
➢ Accountancy firms
➢ Financial planning and dealer groups
➢ Corporate and industry super funds
➢ Administration platforms
➢ Wealth management groups
➢ Traditional and online brokers
➢ ETF providers
➢ BGL Partnership
➢ Other potential collaborative partnerships
SecondaryB2B2C
SecondaryB2B
➢ “White-label” offerings focused on accounts with potential to add more than 500 users per firm/dealer
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Exchange Traded Funds (ETF)
BGL overview
➢ BGL is Australia’s largest SMSF administration and compliance software provider
➢ Servicing ~60% of the Australian SMSF market representing a client base of ~350,000 SMSFs (~A$90bn AUM)
➢ BGL transitioning clients to SimpleFund 360 cloud solution
➢ Broader market opportunity exists post IPO
Strategic partnership with BGL underpins the expected growth trajectory of SelfWealth’s SMSF ETF
Exchange Traded Funds
➢ SelfWealth will release a specific Australian Self Managed Super Fund ETF in CY18 sourced from a large representative data base
➢ To be used as a reference index for the 600,000 SMSF in existence
➢ SMSF data sourced from BGL Simple Fund 360 (BGL’s cloud solution)
➢ SMSF data base target is 250,000 funds, already transitioned > 23,000
➢ Performance data from 23,000 funds is distilled to top performing 200 SMSFs and the top performing 50 stocks therein:
SMSFs
Top 200 performers
Top 50 stocks
Rebalanced quarterly
9.2%
14.5%
16.8%
ASX 200 SW 200 SMSF 200
Investment performance - 2 years to 31 July 2017
58%
82%
0% 20% 40% 60% 80% 100%
SW 200
SMSF 200
Relatively higher performance to ASX200 - 2 years to 31
July,2017
If the SelfWealth SMSF ETF had been available, ETF participants would have achieved an 82% higher
performance than the ASX 200 benchmark over a 2 year period to 31 July 2017.
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News flow – next 6 months
▪ Updates on key metrics:
-> Active Traders, Number of Trades, Tradable Assets, and Revenue
▪ Move to Open Markets for execution, clearing and settlement services
▪ ETF product launch
▪ Margin lending product launch
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THANK YOU
✓ Significant market opportunity identified and targeted
✓ Compelling user propositions launched and rapidly established traction in the market
✓ Experienced and motivated senior management team on board
✓ Clear strategy and execution plan in place
Summary
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The material in this presentation has been prepared by SelfWealth Ltd ABN 52 154 324 428 (“SelfWealth”) and is general background information about
SelfWealth’s activities as at the date of this presentation.
This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast financial information,
should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other
financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any
information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you
should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of
adverse or unanticipated market, financial or political developments and, in international transactions, currency risk.
This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to
SelfWealth’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk
management practices. Readers are cautioned not to place undue reliance on these forward looking statements. SelfWealth Ltd does not undertake any
obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect
the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially
positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside SelfWealth’s control. Past
performance is not a reliable indication of future performance.
Disclaimer
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