N1 Holdings Ltd. · ASX:N1H
N1 — Investor Presentation (July 2021)
34 slides from N1's investor presentation, Jul 23, 2021
Slide 1: Investors Presentation FY2021
Investors Presentation For personal use only FY2021 N1 HOLDINGS LIMITED ASX:N1H
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by N1 Holdings Limited ACN 609 268 279 (N1H). Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set out below. None of N1H and/or its related bodies corporate (as
Slide 3: WHO is N1 Holdings Ltd (ASX:N1H)
WHO is N1 Holdings Ltd (ASX:N1H) For personal use only N1 Holdings is positioned in the market as a specialist direct lender and property financier (both as a balance sheet lender and manager of mortgage fund) in the Australian SMEs sector, the largest employers group in Australia. With the growth i
Slide 4: N1H – The Mission
N1H – The Mission For personal use only To be ethical, To preserve integrity, & To create value
Slide 5: Business Model
For personal use only Business Model
Slide 6: N1 business model
For personal use only N1 business model includes property- backed direct lending, mortgage management and broking in the space of residential and commercial sector. Business Purpose loans may include residential properties as security.
Slide 7: Key Business - Current
Key Business - Current For personal use only Business unit Description Revenue % short term lending solutions to empower growth of Australia’s largest group of employers, allowing asset Property-backed Direct Lending 63% strong SME owners to tap into their property equity for business purpose compli
Slide 8: Market Opportunities (Australia only)
Market Opportunities (Australia only) For personal use only N1H established itself in the niche of 2.3m providing financing solutions to Australia’s Australia has approx. 2.3 largest employer group – Small and Medium million SMEs. size Businesses, seeking alternative debt financing 20b Top Reason fo
Slide 9: N1H’s Market Niche
N1H’s Market Niche For personal use only (secured through first and/or second ranking mortgages over residential property) $0 $5mil $10mil+ Loan amount $100k Fintech Lenders Banks & Private Lenders (unsecured) (secured) who focus on unsecure Big Lenders who prefer cash flow loans larger size constru
Slide 10: Target Borrowers
Target Borrowers For personal use only SME owners and professional investors in need of short term, temporary/interim financing solution up to 12 or 24 months Possess existing properties as asset, with sufficient equity Need quick financing for interim purpose Competitive rate in relative to credit
Slide 11: Target Borrowers
Target Borrowers For personal use only Business use: Interim financing mechanics, printers, solution, quick gyms, etc. settlement SME Business owner/ Professional investors N1H seeks long-term relationship with Asset rich these borrowers
Slide 12: FY2021 Performance Metrics (Unaudited)
For personal use only FY2021 Performance Metrics (Unaudited)
Slide 13: Financial Metrics – Revenue & Profitability
Financial Metrics – Revenue & Profitability For personal use only $5,387,485 +30.15% 63.22% FY2021 Group Revenue FY2021 $5,387,485 Core Business via SME Lending, Fund Advisory and vs SME Lending Management, Mortgage FY2020 $4,139,470 Management, etc. +$74,997 +$1,071,902 Profit EBIDTA *Note: FY2021
Slide 14: Financial Metrics – Cash Receipts Growth
Financial Metrics – Cash Receipts Growth For personal use only $4,508,000 +6.39% +12.40% FY2021 Group Cash Receipts Cash Receipts Growth Cash Receipts Growth from SME Lending accounted for FY2021 $4,508,000 SME Lending 65.13% of cash receipts from vs FY2021 $2,935,841 customers FY2020 $4,237,000 vs
Slide 15: Financial Metrics - One Lending Fund
Financial Metrics - One Lending Fund For personal use only (Not consolidated into N1H) $2,937,578 +30% FY2021 Revenue: Property- FY2021 $2,937,578 backed direct lending mortgage vs fund FY2020 $2,259,884 * Not to be consolidated into N1H financials * N1H derived management fee revenue $851,490 and p
Slide 16: Capital Raising Milestones
Capital Raising Milestones For personal use only * Graph is not indicative of trend * As of July 2021
Slide 17: Capital Structure – AUD$70mil
Capital Structure – AUD$70mil For personal use only Balance One Debt Sheet Lending Facility • $11mil Fund • $35mil • $24mil * Committed lending capital as of July 2021
Slide 18: Overview and Strategy
For personal use only Overview and Strategy
Slide 19: WHAT is N1H Unique Strength
WHAT is N1H Unique Strength For personal use only N1H’s multiple business lines with over 2,000 client data base provide a robust cross-referral origination network. N1H possesses efficient infrastructure for direct and rapid capital deployment, uniquely positioned as a direct lender in the market t
Slide 20: Strategic growth plan
For personal use only N1H management and board of directors have derived and documented well thought strategic growth plan: 1. Understand competition 2. Identify niche position 3. HR capacity and team planning 4. Costs Management 5. Distribution and Risks Management 6. Efficiency and Scalability 7.
Slide 21: N1 Holdings Limited Board
N1 Holdings Limited Board For personal use only Ren Hor Wong Jia Penny He Anand Sundaraj Executive Chairman and CEO Executive Director & CFO, Company Secretary AFSL Responsible Manager Mr Wong is the founder, Mr Sundaraj is a principal of Executive Chairman and Chief Ms He is a Certified Practising
Slide 22: Lending Key Personnel
Lending Key Personnel For personal use only Briney He Rob McWilliam Heather Zhang Reporting Manager Compliance Manager Head of Distribution & Sales Ms He is responsible for Mr McWilliam is a specialist Ms Zhang has over 10 years analysing investment compliance consultant over 25 extensive experience
Slide 23: N1 core business Direct Lending Origination
For personal use only N1 core business Direct Lending Origination
Slide 24: Distribution Strategy
Distribution Strategy For personal use only Channels Existing % Plan % Internal Sales Team Major 69% √ 10% Independent Mortgage Brokers Network √ 26% √ 35% Aggregators Panel of Lenders Recent initiative √ N/A 1500 30% Pending Aggregators Panel of Lenders X N/A 5000 N/A Accountants, Liquidation firm,
Slide 25: Competitive advantages in lending
Competitive N1 is active and in the borrower’s For personal use only market trust – no hidden cost Capacity to We get expand market Why N1 can keep more deal flow lending to high quality deals? Luxury to be Investors picky of confidence deals to fund Quality loan portfolio & receivables
Slide 26: N1 Direct Lending Credit and Underwriting
For personal use only N1 Direct Lending Credit and Underwriting
Slide 27: Credit procedure
Credit procedure For personal use only Receive Decline Application Conditional Credit Verification Initial Assessment Approval Order Valuation Review Response Repeat Any Part of Process Not Quality Control Adequate Unconditional Approval Loan Documents Settlement
Slide 28: Security Valuation
Security Valuation For personal use only • Property Inspection - Physical onsite inspections required - Virtual video site inspection during COVID-19 - Land tax valuation accepted if the loan amount is lower than 50% of the land value (approval by Credit Committee) • Valuer insurance is required • V
Slide 29: Security Valuation
Security Valuation For personal use only • In the report, we focus on the following points, Existing Valuation Highest & Selling Sales Lease Property lease method best use period assessment comparison conditions assessment Other points such as, - whether the property is of traditional, or non-tradit
Slide 30: Quality Control
Quality Control For personal use only • In-house underwriting and loan management - None of the credit assessment process is outsourced • Comprehensive credit paper - Written by the credit manager with comments on background search, structure, compliance and risk assessment
Slide 31: Risks Management & IT System
For personal use only Risks Management & IT System
Slide 32: Risk Management
Risk Management For personal use only 1 Compliance and Audit • Compliance manual annual reviews and updates when necessary • Internal file audit quarterly • N1H external comprehensive audit/review half yearly 2 Quality Control manual • QC manual reviews and updates annually • QC Assessment & reports
Slide 33: System support
System support For personal use only Self-developed N1 Fund Management System + Data Reporting N1 Customer Relationship Management System + Pipelines
Slide 34: For more information please contact
For more information please contact Ren Hor Wong CEO & Executive Chairperson For personal use only Suite 502, 77 King Street, Sydney NSW 2000 Australia +61 02 9262 6262 [email protected] THANK YOU