ANNUAL
REPORT
2021
WISR LIMITED • ANNUAL REPORT 2021 CONTENTS
Our Vision
Chairman’s review
CEO’s review
FY21 Highlights
We are a purpose-led high-growth consumer finance platform
Revenue acceleration
20 quarters of consecutive growth
Delivering on milestones and growth
Cash EBTDA
Wisr continues to attract very creditworthy customers
Diversified loan portfolio, aligning with our purpose
Wisr brand set up for long term growth
The Wisr brand campaign
Smarter new website and dashboard
Putting our strong balance sheet to work
Wisr Financial Wellness Platform fuelling future growth
Award-winning momentum
Recognised as one of Australia’s best places to work
Executive leadership team
Board of directors
Financial report
Directors’ report
Auditor’s independence declaration
Consolidated statement of profit or loss and other income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor’s report
ASX additional information
Corporate directory
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WISR LIMITED • ANNUAL REPORT 2021 OUR VISION
IS TO BRING
FINANCIAL
WELLNESS
TO ALL
AUSTRALIANS
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CHAIRMAN’S
REVIEW
Dear Shareholders,
On behalf of the Wisr Board of Directors, it gives me
great pleasure to present the Wisr Annual Report for
FY21.
It has been a truly outstanding year. The Company’s
business model has been proven, continuing to
rapidly respond and thrive despite the unprecedented
challenges from COVID-19, delivering significant
results across all of the key financial metrics, and
world-class innovation via the Wisr Financial Wellness
Platform.
There is no doubt that the underlying strengths of
Wisr are centred around the calibre of its people, the
Executive Leadership Team and the Company’s high-
performance culture. Our CEO, Anthony Nantes, has
built an extremely strong Executive Team under his
leadership - they are dedicated to driving the
company’s growth, drawing from their years of
experience at Australia’s most innovative and
successful companies.
This has been demonstrated by Wisr thriving in the
new normal of working-from-home and throughout the
unprecedented COVID-19 disruptions. The Company
continues to innovate Wisr’s high-performance culture,
delivering an average +75 Employee Net Promoter
score for FY21.
In recognition of the superb leadership and unique Wisr
culture, we received two prestigious awards as first-
time entrants this year: coming in at #6 in the AFR Best
Places to Work, Financial Services category and #8 in
the WRK+ Best Places to Work, over 100 employee’s
category. As a Board, we are always conscious of the
importance of the right culture inside the Company,
and the difference this can make to the results
delivered. We are proud of our high-performance
culture at Wisr and the recognition it receives both
internally, and externally.
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WISR LIMITED • ANNUAL REPORT 2021 As the Company continues its mission to improve the
financial wellness of all Australians, by redefining the
lending experience, through its purpose-led model,
post-year end, we welcomed the appointment of
Matt Brown to the Wisr Board in the position of non-
executive director. As the Company grows in scale
and complexity, this appointment is in keeping with
Wisr’s commitment to maintain strong and appropriate
governance. Matt will also chair the Wisr Risk and
Audit Committee, adding further depth to the
Company’s governance and oversight.
We are also well placed to continue to expand the
board, as the Company continues to grow, and provide
the right level of diversity and experience to Wisr to
make the Company stronger, and well prepared for the
next period of growth. As this process progresses, we
will advise the market accordingly.
MANAGING COVID-19 IMPACTS
As a financial services industry challenger, particularly
one that is committed to fairer financial services,
Wisr’s commitment to; responsible lending, financial
wellness and fairer customer outcomes, has certainly
resonated strongly with Australians. The result of this
commitment resulted in our total portfolio arrears
reducing, with 90+ Day arrears of 0.92% as at 30 June
2021 (FY20: 1.44%).
Throughout FY21, Wisr continually reviewed the
Company’s credit decisioning to drive organic growth,
while optimising profitability, but also ensuring we
supported our customers through these challenging
times.
STRONG REVENUE GROWTH
280% increase on FY20 ($7.2M). This was supported
by 169% growth in loan originations from $135.9M in
FY20, to $365.8M in FY21.
BUILDING FINANCIAL STRENGTH
The Company is very well capitalised with $92.4M
of cash, made up of $64.8M unrestricted cash and
$27.6M restricted cash. The $27.6M is restricted
to the funding of loans and operations of the Wisr
Warehouse, and Freedom Trust. There are also $3.3M
liquid loan assets available for sale as at 30 June 2021.
Wisr continued to experience an improvement in
operating leverage driven by revenue growth and
expense management, which resulted in operating
cash flow break-even, for the month of June 2021.
At 30 June 2021 Wisr had a total loan book of $432M,
consisting of:
• $379M Wisr Warehouse and Wisr Freedom Trusts
• $48M off-balance sheet
• $5M other
Operational leverage in the Company is evident with
280% growth in revenue for FY21, compared to 43%
growth in operating expenses. For FY21, Wisr had a
Cash EBTDA of $(9.7)M, a 30% improvement on FY20
($13.7M) and an accounting loss of $(17.6)M, a 25%
improvement on FY20 ($23.5M), notwithstanding
material non-cash items during the period, particularly
the expected credit loss provision.
The Company’s Wisr Warehouse funding model
delivered significant margin benefit for the Company,
with $27.2M in operating revenue achieved in FY21, a
LOOKING FORWARD TO THE YEAR AHEAD
As we enter FY22, the Company’s success in FY21 has
provided a solid foundation for growth and scale. We
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have an exceptionally strong balance sheet and the
innovative, proprietary Wisr Financial Wellness Platform
differentiates Wisr with increased operational leverage,
market-leading economics, and a clear competitive
advantage that opens up a number of potential
revenue models over the coming years.
It is an exciting time for the Company, one which could
not have been possible if not for the hard work and
expertise of the entire Wisr team, and the incredibly
talented Executive Management group. I couldn’t be
prouder to see the entire Wisr team not only continue
to deliver incredible milestones for the Company, but
also adapt to the ongoing upheaval in their everyday
lives.
To our shareholders, on behalf of the Wisr Board, we
wish to sincerely thank you for your ongoing support -
without you, there would be no Wisr.
I would like to thank the Board, Executive Management
and all of Wisr’s staff for their continued support,
vision and experience, and we look forward to helping
more Australians improve their financial wellness, and
change the way Australians experience credit.
JOHN NANTES
Executive Chairman
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WISR LIMITED • ANNUAL REPORT 2021
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CEO’S
REVIEW
FY21 marks another incredible set of results. Wisr’s
purpose-led brand, differentiated business model and
unique Financial Wellness Platform has delivered 20
consecutive quarters of growth, accelerated revenue
growth, and a maiden operating cash flow break-even
month in June 2021.
We continue to disrupt and take market share with a
superior alternative: a highly automated digital lending
experience based on market-leading UX, delivered
alongside a customer platform, focused on improving
our customers’ financial wellness. We’ve completely
reimagined the entire consumer finance experience.
As one of Australia’s fastest-growing and most
innovative companies, we’ve also climbed 200 places
to #167 in the Deloitte Tech Fast 500 APAC ranking.
The Deloitte APAC ranking follows Wisr’s recognition
in Q2FY21 as one of the fastest-growing technology
companies in Australia, by the Deloitte Technology
Fast 50 Awards, coming in at #19.
To continue our clear competitive advantage and
position in the consumer finance market, we
strengthened our brand through developing a national
brand launch, “For Your Smart Part”. The brand work
has resonated strongly with consumers and our
broadcast, and digital sponsorship of the Olympic
Games Tokyo 2020 coverage, offered the ideal
platform to introduce Wisr to a national audience, for
the first time. Positioned alongside iconic global and
domestic brands, Wisr reached over 16.5M Australians,
giving us a unique presence in Australian homes
throughout the event, and setting us up to reach our
medium-term target of a $1B loan book, and beyond.
We’ve also focused on strengthening our balance
sheet with the recent equity raise that was supported
by Goldman Sachs. Combined with our inaugural
$225M ABS issue, these two transactions in FY21
put Wisr in an incredibly strong position, to extend
our technology advantage and aggressively grow
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WISR LIMITED • ANNUAL REPORT 2021 lending market share in the years ahead, as we build
a Company of significant scale, profitability, and
impact in the Australian consumer finance market.
FY21 PERFORMANCE
Originations: We have delivered an unbroken track
record of 20 quarters of growth, with total new loan
originations up 169% to $365.8M as at 30 June
2021 (FY20: $135.9M). Growth accelerated during
the year, with loan originations of $221M in H2; 52%
growth on H1 ($145M). Wisr has now reached $611M
in total loan originations since inception.
Revenue: As the superior loan unit economics of the
Wisr Warehouse funding model came into full effect,
the Company delivered accelerated revenue growth
of 280% to $27.2M for the year ending 30 June 2021
(FY20: $7.2M).
Product: At the end of Q1FY21, we launched our
second major competitive product, secured vehicle
loans and through the backing of the Wisr
Warehouse, the new product has quickly become a
significant contributor to the Company’s loan book
originations, and revenue growth, with 64% QonQ
growth and comprising 20% of Wisr’s loan book as at
30 June 2021.
Equity Raise: The market strongly supported our
$55M equity raise in June 2021, led by Goldman
Sachs as Sole Lead Manager and Underwriter. As
part of our commitment to building a purpose-led
company with a focus on financial fairness, a Share
Purchase Plan (SPP) to retail investors was also
included.
Wisr Freedom Trust securitisation: Our inaugural
ABS transaction (of personal loans), the Wisr
Freedom Trust 2021-1, received an AAA-rated top
tranche from Moody’s. The oversubscribed demand
achieved across all tranches was a clear indication
that investors want high quality assets originated by
high quality companies, and Wisr has delivered that.
The transaction delivered a material ~50% reduction
in Wisr’s cost of funds.
Wisr Warehouse and Loan Book: There was an
increase in committed funding into the Wisr
Warehouse from $150M to $350M in March 2021,
from existing senior and mezzanine investors. The
Wisr Warehouse (including recent Wisr Freedom Trust
securitisation) Loan Book balance is now at $379M.
For the first time, the Company achieved operating
cash flow break-even for the month of June 2021.
Wisr appreciates the significant support provided by
its funders during FY21.
Financial Wellness Platform: Our proprietary channel
passed 450,000 profiles (80% growth on pcp), and
is well on the path to 1M customer profiles. In June
2021, the Platform was 88% more cost effective as a
loan acquisition channel, compared to the established
competitive channels where Wisr also has leading
customer acquisitions costs. It also continues to show
an impact on the financial wellbeing of Wisr
customers: Wisr customers that frequently engage
with the Platform, see a +83 increase on their Equifax
credit score.
Wisr Brand redesign: We launched our brand
redesign and new creative positioning ‘For Your Smart
Part’ in May 2021. Built to deliver a clear, simple
message around Wisr’s financial wellness purpose,
the new creative positioning engages the “smart part”
of the brain to help Australians make better personal
financial decisions. The comprehensive project runs
across all brand design, product and communication.
The launch of the new www.wisr.com.au website
integrates the full suite of products, tools, and
resources on the Wisr Financial Wellness Platform.
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In FY22, we’ll be putting the strong balance sheet to
work, focusing on achieving a loan book well beyond
$1B in the long term, by funding loan book growth,
technology investment and feature enhancement,
and expanding TAM by exploring new markets, and
growth opportunities. As we enter the huge auto
finance market with our secured vehicle product, a
dedicated secured vehicle loan warehouse will also
be established in FY22.
To our Wisr shareholders, thank you for your
continued support as we continue our mission to
improve the financial wellness of all Australians, by
reinventing the consumer finance experience. To our
amazing Wisr Team, thank you for delivering 20
consecutive quarters of growth, world-class high-
performance culture and a real, and lasting impact on
our customers’ financial wellbeing.
We truly are unique and provide a clear differentiation
in the market. I couldn’t be more excited about the
path ahead of us as we establish the Wisr brand and
build something of real size, scale, and meaning in
FY22.
ANTHONY NANTES
Chief Executive Officer
Overseas expansion: In March 2021, we took a
small but highly strategic first step in taking Wisr’s
business model global, executing a term sheet to
invest in European financial wellness fintech
platform, Arbor. The investment gives Wisr a small
minority shareholding in Arbor, with a pathway to
potentially increase the shareholding to 45% over
the medium term. This strategic investment opens
up an entry pathway to circa $1.76 Trillion (AUD)
consumer finance market1 in the EU and a number of
potential revenue models for the Company.
WISR IN FY22
While the Australian macroeconomic outlook
continued to change in FY21 due to COVID-19, Wisr
is strongly capitalised with market-leading unit
economics and a purpose-driven business model
that delivers smarter financial outcomes for
customers and investors, and we’re in prime position
to build a company of significant scale, profitability
and impact.
We’re delivering a clear competitive advantage
through a superior alternative model that actually
improves financial wellness, going far beyond the
traditional lending experience, to attract Australia’s
most creditworthy customers.
It’s a phenomenal achievement to receive a AAA-
rated top tranche from Moody’s on an inaugural
transaction of unsecured personal loans and it’s a
significant external validation of the quality of the
Wisr business operations, underwriting performance
capability, and the mature stage the business has
reached. This milestone result should give the
market confidence around our market-leading unit
economics and our ability to deliver a highly
profitable business as we continue to scale.
1Source: European Banking Authority (EBA) Report - CONSUMER LENDING IN THE EU BANKING SECTOR MARCH 2020 – THEMATIC NOTE: EUR 1.14 Trillion
converted to AUD
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WISR LIMITED • ANNUAL REPORT 2021 11
FY21
HIGHLIGHTS
$366M in new loan
originations
Total loan
originations
$27M in Operating
revenue
$(10)M
Cash EBTDA
169%
on pcp
(FY20 $136M)
$611M
Wisr Warehouse and
Wisr Freedom Trust
$379M
280%
on pcp
30%
on pcp
(FY20 $7M)
(FY20 $(14)M)
Market-leading net
promoter scores
NPS
+77 Business
+75 Employee
NPS
450K Wisr Financial
Wellness Platform
profiles
80%
on pcp
90+ day arrears
0.92% down by
36%
on pcp
(FY20 251K)
(FY20 1.44%)
Term deal margin
of 1.5% + 1M BBSW
reduces cost of funds
by circa
50%
on Wisr Warehouse
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WISR LIMITED • ANNUAL REPORT 2021 Growth stepped up in H2FY21, with loan originations of
$221M in H2FY21; 52% growth on H1FY21 ($145M)
Launch of secured vehicle loan product in Q1FY21, opening
up a $51B+ market opportunity1
$225M ABS transaction, Wisr Freedom Trust 2021-1, and
AAA rating from Moody’s
$55M equity raise, led by Goldman Sachs; Wisr well
capitalised with $64.8M unrestricted cash and $27.6M
restricted cash2 at 30 June 2021
Recognition by AFR (#6) and WRK+ (#8), as one of
Australia’s best places to work
Strategic investment3 in Arbor, opening up entry pathway
to circa AU$1.76 Trillion consumer finance market in EU4
Launch of new Wisr brand and website
1ABS, Nov 19 to Nov 20 new vehicle market ($85B), Wisr conservatively calculates $51B
dollars in consumer vehicle finance per annum, equating to over half of market requiring
finance 2Restricted cash is limited to the funding of loans and operations of the Wisr
Warehouse and Freedom Trust 3Initial investment made post 30 June 2021 4Source:
European Banking Authority (EBA) Report - CONSUMER LENDING IN THE EU BANKING
SECTOR MARCH 2020 – THEMATIC NOTE: EUR 1.14 Trillion converted to AUD
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WE ARE A PURPOSE-LED
HIGH-GROWTH CONSUMER
FINANCE PLATFORM
Purpose-led fintech
High-growth
• Our purpose is to bring financial wellness to
all Australians, by redefining the consumer
finance experience
• Strong core business with 20 consecutive quarters of
growth
• Delivered $27M operating revenue in FY21 (280%
• Our unique brand appeals to people’s “smart
increase on pcp)
part” that makes better decisions
• $611M in total loan origination to 30 June 2021
Products
Dual platform
• $5K-$65K personal loans and secured
vehicle loans over 3, 5, or 7 year terms, with
no hidden, ongoing or early exit fees
• The typical Wisr loan is $25K over 5 years,
but paid off over 4 years
• The first of its kind in Australia, our proprietary
Financial Wellness Platform (with over 450K
customers), reduces lending platform CAC by 88%1
and improves customers’ financial wellness
• Platform provides access to our suite of products,
financial wellness tools and features (such as a free
credit score check, or “rounding-up” spare change to
pay off debts faster)
Wisr Loan Origination growth^
Wisr Financial Wellness Platform growth^
)
1
F Y 2
o Q 4
t
9
F Y 1
o m Q 1
r
f
(
0 % C A G R
5
. 1
c
)
t o Q 4 F Y 2 1
r o m Q 1 F Y 1 9
f
(
c . 3 5 0 % C A G R
1As at June 2021, Wisr internal data ^Full graphs with scale and relevant data can be see on pages 16, 29
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WISR LIMITED • ANNUAL REPORT 2021 REVENUE ACCELERATION
• Revenue growth up 280% in FY21 vs FY20
• Strong revenue growth with Wisr Warehouse funding model now in full effect
• On the back of 20 consecutive quarters of loan origination growth, Wisr is set up for:
• Driving significant revenue growth in FY22, and beyond, and
• Continual delivery of operational leverage going forward (evidenced through 280% revenue growth vs
43% for operating expenses in FY21)
Wisr quarterly and annual revenue growth
15
20 QUARTERS OF
CONSECUTIVE GROWTH
Loan origination growth
)
t o Q 4 F Y 2 1
r o m Q 1 F Y 1 8
f
(
c . 1 5 0 % C A G R
Strong loan book growth
)
r o m Q 1 F Y 1 8 t o Q 4 F Y 2 1
f
c . 1 6 0 % C A G R (
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WISR LIMITED • ANNUAL REPORT 2021 Wisr Warehouse growth
)
r o m Q 2 F Y 2 0 t o Q 4 F Y 2 1
f
c . 5 5 0 % C A G R (
Accelerating revenue growth
)
r o m Q 1 F Y 1 9 t o Q 4 F Y 2 1
f
c . 2 0 0 % C A G R (
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DELIVERING ON MILESTONES
AND GROWTH
Positive operating cash flow
Wisr delivered maiden positive operating cash flow result for the month of June 2021
Strong funding platform
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• The Wisr Warehouse has $350M of committed
funding and undrawn capacity of $169M
• The Wisr Freedom Trust represents Wisr’s inaugural
ABS transaction
• Both personal loans and secured vehicle loans are
funded via the Wisr Warehouse, with a dedicated
secured vehicle loan warehouse to be established
in FY22, with anticipated cost of funds and loan
loss rate benefits
• The $21.5M Head Co Loan was established in May
2021 to provide additional balance sheet strength,
with $6.5M drawn upon inception
WISR LIMITED • ANNUAL REPORT 2021 CASH
EBTDA
• In FY21, the Company had a Cash EBTDA of $(9.7)M, a 30% improvement on $(13.7)M in FY20
• The operational leverage in the business is evidenced through 280% operating revenue growth, compared
to 43% for operating expenses
• Loan write offs represent 0.95% of the average loan book balance for FY21
• In FY21, the Company had a loss for the year of $17.6M, a 25% improvement on FY20 ($23.5M)
FY21 ($’000)
FY20 ($’000))
VARIANCE
Operating revenue
Total revenue
Operating expenses
Loan write offs
Interest expense
Cash EBTDA
Depreciation & amortisation expense
Finance cost amortisation
Hedge ineffectiveness
ECL provision
Share based payment expense
27,231
27,575
7,166
7,714
(27,943)
(19,548)
(2,227)
(7,060)
(602)
(1,265)
(9,655)
(13,702)
(542)
(247)
(307)
(5,708)
(1,181)
(117)
(64)
(22)
(3,496)
(6,133)
Profit (loss) for the year
(17,639)
(23,535)
280%
257%
43%
270%
458%
(30%)
362%
284%
1,276%
63%
(81%)
(25%)
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WISR LIMITED • ANNUAL REPORT 2021 MARKET PRESENCE ESTABLISHED
WISR CONTINUES TO ATTRACT
VERY CREDITWORTHY
CUSTOMERS
Strong credit quality for the market-leading growth delivered, with consistent 90+ day arrears and
observable improvements, to average credit scores
Wisr Loan Customer
Average Credit
Score
Whole portfolio 90+
day arrears
Q1FY21
742
Q1FY21
1.01%
Q4FY21
780
Q3FY21
771
Q2FY21
759
Q2FY21
0.79%
Q3FY21
0.83%
Q4FY21
0.92%
Wisr’s applicants consistently have higher median credit scores compared to our nearest competitors: the
Big 4, Large non-banks, Internationals and Fintech lender groups1
Median Equifax scores
1Source: Equifax Consumer Update, Jun 2021. Used with permission from Equifax
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DIVERSIFIED LOAN PORTFOLIO,
ALIGNING WITH OUR PURPOSE
Wisr lends to creditworthy customers all over Australia, for any worthwhile purpose, primarily debt
consolidation
Customers all over Australia
Customer employment status
78%
Full-time
9%
Casual
5%
Self-employed
1%
Other
7%
Part-time
1%
NT
32%
QLD
18%
WA
22%
NSW
1%
ACT
19%
VIC
5%
SA
2%
TAS
Wisr loan purposes
31%
Debt consolidation loans
18%
Vehicle loans
18%
Other1
Source: Wisr data on loan principal balance, as at 30 Jun 2021. 1Includes travel, medical, legal, weddings, and/or mixed purposes
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WISR LIMITED • ANNUAL REPORT 2021 Secured vehicle loans already making material contribution to Wisr
loan book
$86M
Secured vehicle
loans comprised
20% of Wisr’s loan
book as at 30
June 2021
Launched in Q1FY21 with highly
competitive lending product and
category-leading flexibility
$346M
Personal loans
Omni-channel distribution including
Wisr Platform, direct to consumer,
partnerships and broker channel
TOTAL WISR
LOAN BOOK
20%
Secured vehicle loans
Other1
13%
Home improvements &
contents loans
23
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WISR LIMITED • ANNUAL REPORT 2021 WISR BRAND
SET UP FOR
LONG TERM
GROWTH
Built to deliver a clear, simple message around Wisr’s financial
wellness purpose, the new brand positioning engages the
“smart part” of the brain, to help Australians make better
personal financial decisions.
This brand positioning runs across all Wisr’s design, product
and communication.
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THE WISR
BRAND
CAMPAIGN
16.5M+
AUSTRALIANS
reached through national brand campaign
Broadcast sponsor of the
Olympic Games Tokyo 2020
63% of Australians in market
for a personal loan in the next
6 months, recall the Wisr
campaign1
Brand awareness increased for
all groups considering a loan,
demonstrating longer term
brand impact to build the funnel2
The national campaign
has allowed Wisr to come
to dominate advertising
awareness with our
recent activity3
1Source: Forward Scout, Wisr Brand Research August 2021. Base: All respondents (1023) 2All groups considering a loan defined as next 6 months, 6-12
months, next few years. 3Base: 165 22-45 year-olds who watched the Olympics frequently
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WISR LIMITED • ANNUAL REPORT 2021 SMARTER
NEW
WEBSITE
AND
DASHBOARD The launch of the new wisr.com.au platform
Award-winning reimagined web experience
represents a complete reimagining of what a
consumer finance digital experience can be,
integrating the full suite of products, tools, and
resources on the Wisr Financial Wellness Platform.
Wisr Financial Wellness Platform dashboard
The new Wisr dashboard represents a consolidation
of the Wisr Financial Wellness Platform - giving
customers the opportunity to manage their loan
payments, keep up to date on their credit scores, and
more - in one place.
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FY22 KEY PRIORITIES
PUTTING OUR STRONG
BALANCE SHEET TO WORK
Loan book growth
• Accelerate the pace to
achieve the medium
term target of a $1B
loan book, and continue
growth past this
milestone
• Support credit
enhancement in Term
Securitisation Facility
• Capital base to support
establishment of
additional financing
facilities
Technology
investment and feature
enhancement
• Invest further in the
technology stack
to take advantage
of changes in the
consumer finance
space, and create
market leading
innovation and
opportunities, and
deliver operational
leverage at scale
• Accelerate Wisr’s
current trajectory
towards 1M customer
profiles in Australia,
providing a proprietary
channel for growth
and differentiation in
the consumer finance
space
Expanding TAM by
exploring new markets
and growth opportunities
• Provide investment
into further product
development and
innovation, to continue
to strengthen Wisr’s
unique position in the
consumer finance
market
• Growth Opex and
transaction costs
• Strategic investment in
Arbor1 by Wisr, opens
up entry pathway to
circa $1.76 Trillion
(AUD) EU consumer
finance market2
• National brand
campaign setting Wisr
up for years of growth
1 Initial investment made post 30 June 2021 2 Source: European Banking Authority (EBA) Report - CONSUMER LENDING IN THE EU BANKING SECTOR MARCH
2020 – THEMATIC NOTE: EUR 1.14 Trillion converted to AUD
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WISR LIMITED • ANNUAL REPORT 2021 WISR FINANCIAL WELLNESS
PLATFORM FUELLING
FUTURE GROWTH
Strong customer growth
achieved via the Wisr Financial
Wellness Platform
Wisr Financial Wellness Platform profiles
)
F Y 1 9 t o Q 4 F Y 2 1
r o m Q 1
f
c . 3 5 0 % C A G R (
Customer acquisition cost by channel group
In June 2021, the Financial
Wellness Platform was 88%
more cost effective as a loan
acquisition channel compared
to direct and broker channel
averages. Across H2FY21, the
cost efficiency improved 33%,
as we continue to improve
conversion, and grow and
mature the platform.
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AWARD-WINNING
MOMENTUM
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WISR LIMITED • ANNUAL REPORT 2021 RECOGNISED
AS ONE OF
AUSTRALIA’S
BEST PLACES
TO WORK
#6
CATEGORY: BANKING, SUPERANNUATION
& FINANCIAL SERVICES
#8
CATEGORY: OVER 100 EMPLOYEES
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EXECUTIVE LEADERSHIP TEAM
ANTHONY NANTES
Chief Executive Officer
ANDREW GOODWIN
Chief Financial Officer
At Wisr, Anthony’s proven track record in
technology and business innovation has
been recognised through multiple award
accolades including the Optus MyBusiness
Awards, Business Leader of the Year (2018);
2019 Executive of the Year Awards, Highly
Commended - CEO of the Year; and in the
2020 Finnies Awards, Outstanding Fintech
Leader of the Year. In 2020, Wisr was
recognised as one of the fastest growing
technology companies in Australia by the
Deloitte Technology Fast 50 Awards, coming
in at #19. Prior to Wisr, Anthony was the Chief
Operating Officer at fintech Prospa.
Andrew has over 15 years’ experience in
the financial services industry, including
investment banking and principal investment
with Macquarie Capital, as well as having
worked across Europe and Asia. Prior to Wisr,
Andrew was partner at Draycap, a secondary
private equity and infrastructure firm, and
preceded his time at Macquarie Capital at
FontEnergy, and in particular KPMG where he
was focused on assurance and advisory for
the Financial Services sector
JOANNE EDWARDS
Chief Risk and Data Officer
MATHEW LU
Chief Operating Officer
Joanne is a respected leader of multiple
disciplines within Banking, with 17+ years’
experience ranging from credit risk, product
management, pricing, analytics and strategic
project delivery. Joanne is passionate about
using data and analytics to solve business
problems, drive profitable growth, streamline
processes and improve customer experience.
Mathew brings a wealth of financial services
experience twinned with a deep technology
background where he started his career as an
IT management consultant with Accenture.
Prior to joining Wisr, Mathew was with the
Commonwealth Bank as Executive Manager
for the Retail and Commercial Credit Cards
business. He is adept at leading the delivery
of large-scale transformational changes.
32
WISR LIMITED • ANNUAL REPORT 2021 DR LILI SUSSMAN
Chief Strategy Officer
BEN BERGER
Chief Product Officer
Lili has diverse international experience across
the public, social purpose and corporate
sectors. She has worked with government,
international development organisations, BCG,
and the Commonwealth Bank. Prior to Wisr,
Lili was the Chief Strategy Officer at Social
Ventures. Lili holds a PhD in Political Science
from Harvard University and has taught at
Harvard and Yale.
Ben’s 19+ years’ experience spans all stages
of the product life cycle, from formulating
market approach, to building and delivering
innovative tech-driven solutions for amazing
customer experiences and services. Prior
to Wisr, Ben was Head of Product at THE
ICONIC.
PETER BEAUMONT
Chief Commercial Officer
JAMES GOODWIN
Chief Marketing Officer
Peter is a senior business executive with over
25 years’ global banking, finance and project
delivery experience gained with leading
international investment banks Citibank,
UBS AG, Bank of America Merrill Lynch and
ABN AMRO. Peter brings to Wisr a broad
set of customer acquisition and client sales
leadership skills along with deep experience
transitioning high volume financial products
businesses from traditional channels to online
processing models.
James is a marketing and communications
professional with a passion for leading
high-performance teams. At Wisr, James
is responsible for the delivery of Wisr’s
purpose-led brand strategy and customer-first
marketing approach. He has over 12 years’
experience in advertising and marketing,
with extensive experience in the financial
services sector working with brands including
Bankwest, ING and American Express.
33
BOARD OF DIRECTORS
JOHN NANTES
Executive Chairman
B.A.; B.Comm; LLB;
Dip. Fin Planning
Mr Nantes has over 24 years
of experience in Financial
Services, Private Equity, Tax and
Accounting, Corporate Finance,
Capital Markets, and M&A. He
is also the Executive Chairman
of Cashwerkz, a leading fintech
in Australia, as well as a non-
executive director for Thinxtra, a
public non-listed IOT technology
company and advises Adcock
Private Equity in a CEO capacity.
Mr Nantes has a strong reputation
for building growth businesses
especially those reliant on
technology and innovation, having
previously also held roles such
as; Group Head of WHK/Crowe
Horwath Wealth Management,
CEO Prescott Securities, and
Executive roles at St George
Bank/ Bank SA and advisory
and leadership advisory roles at
Colonial State Bank.
CRAIG SWANGER
Non-Executive Director
BCom (Hons);
SIA GD
Mr Swanger has extensive board
experience, including Macquarie
Bank’s major funds management
entity, Macquarie Investment
Management Limited and a total
of 15 internal and external boards
since 2003. Since Macquarie,
Mr Swanger has invested in
and advised a large portfolio of
technology companies across
finance, social impact, and health.
More specifically in areas
related to Wisr, Mr Swanger was
Chairman of 5 of the largest debt
listed investment companies
in Australia and New Zealand
issued over the past decade,
and more recently worked with
Australia’s largest corporate bond
and securitisation distribution
specialists and is on the
Investment Committee of a large
SME direct lending fund.
CHRISTOPHER WHITEHEAD
Non-Executive Director
Chartered Banker, B.Sc,
F FIN, FAICD
Mr Whitehead has over 30 years’
experience in financial services
and technology, across a wide
range of roles. He is currently
the Managing Director and CEO
of FINSIA, Australia’s leading
professional body in financial
services. He was formally CEO of
Credit Union Australia from 2009
to 2015, Regional Director at the
Bank of Scotland from 2007 to
2008 and Chief Executive Retail
Banking at BankWest from 2001 to
2007.
Prior to this he was CIO at
BankWest and Advance Bank.
He worked in the IT sector
for 15 years, including leading
a successful start-up and in
marketing and technical roles for a
global technology provider.
Mr Whitehead has previously
served as non-executive director
for Cuscal Limited, St Andrews
Insurance Group and a number
of other financial services,
technology and community
organisations.
34
WISR LIMITED • ANNUAL REPORT 2021 35
WISR LIMITED • ABN 80 004 661 205
FINANCIAL
REPORT
for the year ended 30 June 2021
36
WISR LIMITED • ANNUAL REPORT 2021 WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
The directors present their report, together with the financial statements, on the consolidated entity (also referred
to hereafter as the Group) consisting of Wisr Limited (referred to hereafter as the Company or Parent Entity) and
the entities it controlled at the end of, or during, the year ended 30 June 2021.
Directors
The following persons were directors of the Company during the whole of the financial year and up to the date of
this report, unless otherwise stated:
Name
Position
John Nantes
Executive Chairman
Craig Swanger
Non-Executive Director
Christopher Whitehead
Non-Executive Director
Particulars of each director’s experience and qualifications are set out later in this report.
Principal activities
During the financial year, the Group’s primary activity was writing personal loans and secured vehicle loans for 3,
5 and 7-year maturities to Australian consumers, and funding these loans through the Wisr Warehouse.
Review of operations
Key Group highlights include:
-
-
-
-
-
-
-
-
-
-
-
Operating revenue up 280% to $27.2M (FY20: $7.2M)
Total loan originations $611M as at 30 June 2021
Total new loan originations up 169% to $365.8M (FY20: $135.9M)
Total portfolio arrears rate is down with 90+ Day arrears of 0.92% at 30 June 2021 (FY20: 1.44%)
Launch of second major competitive product into market, secured vehicle loans in September 2020
(Q1FY21)
80% increase (FY21 compared to FY20) in the Wisr Financial Wellness Platform, with over 450,000 profiles
(FY20: 250,554) as at 30 June 2021
The Company is well capitalised with $92.4M cash ($64.8M unrestricted cash) and $3.3M liquid loan
assets available for sale as at 30 June 2021 (FY20: $37.9M cash)
An increase in committed funding into the Wisr Warehouse from $150M to $350M in March 2021
The Company executed a term sheet to invest in European financial wellness fintech platform, Arbor (and
settled it post 30 June 2021)
The Company's inaugural $225M ABS transaction, the Wisr Freedom Trust 2021-1 (made up of personal
loans), received a AAA Moody’s rating for the top tranche and significantly reduced cost of funds
The Company raised $55M ($50M institutional and $5M SPP for retail shareholders), in a strongly
supported equity raise in June 2021
Business model proven
As at 30 June 2021, Wisr reached $611M in total loan originations since inception, with the year delivering $365.8M
in new loan originations, a 169% increase on FY20 ($135.9M). This growth was supported by the introduction of
Wisr’s second competitive product, secured vehicle loans, delivering strong results since launch with 63% quarter-
on-quarter growth for Q4FY21.
The long planned moved to a balance sheet driven, Wisr Warehouse funding model continued its significant
operating benefits for the Company and allowed Wisr to achieve operating cash flow break-even for the month of
June 2021. The Wisr Warehouse delivered significantly improved unit economics and operational leverage,
including $27.2M in operating revenue for the year, a 280% increase on FY20 ($7.2M).
Committed funding into the Wisr Warehouse increased to $350M in March 2021 by existing senior and mezzanine
investors. As at 30 June 2021, the Wisr Warehouse and Wisr Freedom Trust had a combined loan book balance of
$379M, as the Company scales towards the medium-term target of a wholly owned $1B loan book.
In May 2021, the Group announced Wisr's inaugural $225M ABS transaction, the Wisr Freedom Trust 2021-1 (made
up of personal loans) received a AAA Moody’s rating for the top tranche, providing significant external validation
37
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Review of operations (cont.)
of Wisr’s business operations, underwriting capability, loan book quality and the mature stage the business has
reached. The transaction has delivered a material reduction in Wisr’s costs of funds.
In June 2021, Wisr undertook prudent steps to strengthen the balance sheet with a successfully completed $55M
equity raise, led by Goldman Sachs as Sole Lead Manager and Underwriter, and included a Share Purchase Plan
(SPP) to retail investors. Proceeds from the capital raise will be used to fund loan book growth, technology
investment and feature enhancement, and expanding TAM by exploring new markets and growth opportunities.
Post 30 June 2021, Wisr executed an initial ownership stake of 12.5% in EU fintech Arbor, with a pathway to
potentially increasing the shareholding to 45% over the next 36 months, as the model is proven out across the EU.
The small but highly strategic investment by Wisr, opens up an entry pathway to a circa $1.76 Trillion (AUD)
consumer finance market in the EU as the Group takes the first step in potentially taking Wisr’s business model
global (with low risk).
Risk and arrears
Wisr wrote prime quality credit during FY21. Total portfolio arrears were down with 90+ Day arrears of 0.92% as at
30 June 2021 (FY20: 1.44%). Throughout FY21, Wisr continually reviewed the Company’s credit decisioning to drive
organic growth while optimising profitability.
As at 30 June 2021, $598k or 0.14% of total portfolio loan balances were on payment assistance. COVID-19 financial
assistance requests had stopped at the end of November 2020. Standard financial assistance requests have
returned to pre-COVID-19 levels for the remainder of FY21. The cure rate for the segment of accounts entering
COVID-19 financial assistance was 83%, 12% were written off and 5% remained on long term assistance.
Financial Position and Loan Book
The Group is very well capitalised with $92.4M cash ($64.8M unrestricted cash) and $3.3M liquid loan assets as
at 30 June 2021, following a strongly supported capital raise in June 2021.
At 30 June 2021 the Group had a total loan book of $432M consisting of:
- $379M Wisr Warehouse and Wisr Freedom Trust
- $48M off-balance sheet
- $5M other
AASB 9 requires a forecast of lifetime expected credit losses that uses a three-staged approach based on the
credit profile of the receivable. The total expected credit loss provision for FY21 was $9.4M or 2.5% of gross loan
receivables (FY20: 4.2%) which represents $2.4M actual loss and $7.9M incremental provisions for expected future
credit loss, and $0.2M recoveries.
Revenue
The Company’s Wisr Warehouse funding model continued its significant operating benefits for the Company with
$27.2M in operating revenue, a 280% increase on FY20 ($7.2M). This was driven by 169% growth in loan
originations from $135.9M in FY20 to $365.8M in FY21.
Expenses
The Group continues to experience improvement in operating leverage driven by revenue growth and expense
management which resulted in operating cash flow break-even for the month of June 2021.
For FY21, the Group had a Cash EBTDA of $(9.7)M, a 30% improvement on FY20 ($13.7M) and an accounting loss
of $(17.6)M, a 25% improvement on FY20 ($23.5M), which had material non-cash items during the period including:
-
-
Provision for expected credit loss expense of $5.7M. Net loan write-offs for FY21 were $2.2M
Share based payment expense of $1.2M
Other expense items include:
-
-
Increase in employee benefits and marketing expense driven by scaling of the Group including through
growth investment into the Wisr Financial Wellness Platform and Wisr brand
Increase in customer processing costs driven by growth in loan volume and entrants into the Wisr Financial
Wellness Platform
- Other expenses include Public Company costs, accounting, legal fees, insurance and administration items
38
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Review of operations (cont.)
Wisr Financial Wellness Platform
In FY21 the Group continued to deliver on the Company’s proprietary channel, the Wisr Financial Wellness Platform,
introducing over 200,000 new customer profiles (80% increase on FY20) taking the total platform to over 450,000
as at 30 June 2021 and on the path to 1M customer profiles. Wisr App has now paid down over $2.5M in customer
high-interest debt.
The Platform allows Wisr to build better, data-driven relationships with customers at every stage of their lifecycle
and has proven to be a highly cost-effective acquisition channel. In June 2021, the Platform was 88% more cost
effective as a loan acquisition channel compared to the established competitive channels where Wisr also has
leading customer acquisitions costs.
The Platform continues to show an impact on the financial wellbeing of Wisr customers and in some cases, helping
customers to become more creditworthy. Wisr customers that frequently engage with the Platform, see a +83
increase on their Equifax credit score.
The launch of the new www.wisr.com.au website integrates the full suite of products, tools, and resources on the
Wisr Financial Wellness Platform. Since launch in May 2021, the refreshed website has resonated strongly with
consumers and sponsorship of the Olympic Games Tokyo 2020 coverage offered the ideal platform to introduce
Wisr to a national audience for the first time.
Positioned alongside iconic global and domestic brands, Wisr reached over 16.5M Australians as the broadcast and
digital sponsor of Tokyo 2020 with Seven West Media, giving it a unique presence in Australian homes throughout
the event and establishing the Wisr brand for growth in the years to come.
Outlook – FY22 and Beyond
In FY21, the Group proved Wisr’s purpose-led, fully digital and agile fintech business model could rapidly respond,
instantly adjust operating models and succeed with significant growth through ongoing unprecedented
macroeconomic changes, delivering 20 consecutive quarters of growth and a maiden cash flow break-even month
(June 2021).
The Group’s launch of its second major competitive product into market, secured vehicle loans, opens up a
significant market opportunity and positions the Group in a prime position to build a company of significant scale,
profitability and impact in the Australian consumer loan market.
While the Group remains focused on the significant growth potential in the Australian market, the investment in
Arbor provides the potential to extend the Wisr model into a much bigger market over time (EU circa $1.76 Trillion
consumer finance TAM in 2019). The modest upfront consideration allows for a small entry position, with any
follow-on investment staged around the achievement of various milestones and entirely at the Group’s option.
The innovative Wisr Financial Wellness Platform, unique in the Australian market, market-leading new brand
redesign and website, differentiates Wisr by not only providing a platform to scale and grow with increased
operational leverage and market leading economics, but also enables the Group to support customers and improve
their financial wellness, delivering a clear competitive advantage that opens up a number of potential revenue
models over the coming years.
Across all areas of the business, Wisr’s team continues to deliver exceptional results. The Group continues to
innovate Wisr’s high-performance culture, delivering an average +75 Employee Net Promoter score for FY21, and
being awarded twice as one of Australia’s best places to work.
The Group is set up for continued strong revenue growth and scale in FY22, and beyond, delivering a new and
fairer type of lending experience for Australian consumers.
Putting the strong balance sheet to work, key executive priorities for FY22 include:
Loan origination growth
-
-
Continue to safely grow significant market share of personal loans and secured vehicle loans
Lead the market in operational and customer experience excellence
Loan book growth
-
-
Achieve the medium-term target of a $1B loan book, and continue growth past this milestone
Capital base to support establishment of additional financing facilities
39
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Review of operations (cont.)
Technology investment and feature enhancement
-
Further invest in technology stack to take advantage of changes in the consumer finance space, and create
market leading innovation and opportunities, while delivering operational leverage at scale
- Continue Wisr’s current trajectory towards 1M customer profiles in Australia, providing a proprietary
channel for growth and differentiation in the consumer finance space
Expanding TAM by exploring new markets and growth opportunities
-
Investment into further product development and innovation, to continue to strengthen Wisr’s unique
position in the consumer finance market
- Creative new revenue models (beyond financial products)
- New product launch in FY22 with additional/innovative credit products and/or geographic expansion
- Growth Opex and transaction costs
Omni-Channel Product Distribution
- Grow distribution including Wisr Financial Wellness Platform, direct to consumer, and broker channel
-
-
Increase Introducers and Aggregators through the Groups online broker portal
Further extend Wisr’s reach to Australian consumers through trusted third-party brands
People
- Ongoing growth and development of team and culture to achieve high-performance outcomes
- Continue to bring diversity and inclusion throughout all hiring areas
Dividends
There were no dividends declared or paid in the financial year.
Significant changes in state of affairs
There were no significant changes in the state of affairs of the Group during the financial year.
Events since the end of the financial year
In March 2021, the Group announced execution of a term sheet for an investment in European fintech platform
Arbor. On 5 August 2021, the Group completed its initial investment, consisting of EUR715,358 in exchange for a
12.5% ownership stake.
In addition to the 12.5%, Wisr has options in place to increase its ownership stake to 45% over three years subject
to valuation thresholds and contingent upon certain milestones being achieved.
Arbor is an EU based fintech with a financial wellness platform, utilising a digital wallet to offer savings, investment
and lending features.
Environmental matters
The Group is not subject to any significant environmental regulations under Australian Commonwealth or State law.
Indemnity and insurance of auditor
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor
of the company or any related entity against a liability incurred by the auditor. During the financial year, the
company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.
40
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Information on directors
The names and details of the Company's directors in office during the financial year and until the date of this report
are presented below.
John Nantes
- Executive Chairman
Qualifications
Experience
- B.A.; B.Comm; LLB; Dip. Fin Planning
- Mr Nantes has over 24 years of experience in Financial Services, Private Equity, Tax
and Accounting, Corporate Finance, Capital Markets, and M&A. He is also the Executive
Chairman of Cashwerkz, a leading fintech in Australia, as well as a non-executive
director for Thinxtra, a public non-listed IOT technology company and advises Adcock
Private Equity in a CEO capacity.
Mr Nantes has a strong reputation for building growth businesses especially those
reliant on technology and innovation, having previously also held roles such as; Group
Head of WHK/Crowe Horwath Wealth Management, CEO Prescott Securities, and
Executive roles at St George Bank/ Bank SA and advisory and leadership advisory roles
at Colonial State Bank.
Interest in shares and
options as at 30 June
2021
Former directorships
(last 3 years)
Other current
directorships
- Ordinary shares held: 13,201,370
Performance rights held: 5,960,000
- None
- Income Asset Management Group Ltd (ASX: CWZ)
Craig Swanger
- Non-Executive Director
Qualifications
Experience
- BCom (Hons); SIA GD
- Mr Swanger has extensive board experience, including Macquarie Bank’s major funds
management entity, Macquarie Investment Management Limited and a total of 15
internal and external boards since 2003. Since Macquarie, Mr Swanger has invested in
and advised a large portfolio of technology companies across finance, social impact,
and health.
More specifically in areas related to Wisr, Mr Swanger was Chairman of 5 of the largest
debt listed investment companies in Australia and New Zealand issued over the past
decade, and more recently worked with Australia’s largest corporate bond and
securitisation distribution specialists and is on the Investment Committee of a large
SME direct lending fund.
Interest in shares and
options as at 30 June
2021
Former directorships
(last 3 years)
Other current
directorships
- Ordinary shares held: 4,091,666
Performance rights held: 3,310,000
- None
- Income Asset Management Group Ltd (ASX: CWZ)
41
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Christopher
Whitehead
Qualifications
Experience
Interest in shares and
options as at 30 June
2021
Former directorships
(last 3 years)
Other
directorships
current
- Non-Executive Director
- Chartered Banker BSc, F FIN, FAICD
- Mr Whitehead has over 30 years’ experience in financial services and technology,
across a wide range of roles. He is currently the Managing Director and CEO of FINSIA,
Australia’s leading professional body in financial services. He was formally CEO of
Credit Union Australia from 2009 to 2015, Regional Director at the Bank of Scotland
from 2007 to 2008 and Chief Executive Retail Banking at BankWest from 2001 to 2007.
Prior to this he was CIO at BankWest and Advance Bank. He worked in the IT sector for
15 years, including leading a successful start-up and in marketing and technical roles
for a global technology provider.
Mr Whitehead has previously served as non-executive director for Cuscal Limited, St
Andrews Insurance Group and a number of other financial services, technology and
community organisations.
- Ordinary shares held: 5,830,000
Performance rights held: 3,310,000
- None
- None
Information on company secretaries
Vanessa Chidrawi
Experience
May Ho
Experience
- Vanessa is a highly experienced governance professional, having held leadership and
executive management roles in companies listed on ASX, TSX, Nasdaq and JSE over
the past fifteen years. She obtained degrees in law and commerce and then practised
as an attorney for twelve years before entering the corporate world.
Vanessa has acted as company secretary to a range of companies listed on ASX and
TSX and brings with her a wealth of experience in governance management, board
advisory, corporate structuring and capital raising in the listed company space.
- Miss Ho holds a Bachelor of Laws and Bachelor of Business (Accounting Major) degree
and has completed a Graduate Diploma in Applied Corporate Governance.
She is currently also Financial Controller and Compliance Officer of the Group.
Miss Ho has also had over 3 years’ experience practicing as a solicitor in a private law
firm in Sydney.
42
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Indemnification and insurance of officers and auditors
The Group has entered into agreements with the following to indemnify them against liabilities incurred in their
capacity as an officer/director of the Group to the extent permitted by law:
-
-
-
-
-
-
John Nantes
Craig Swanger
Christopher Michael Whitehead
Peter Beaumont
Vanessa Chidrawi
Leanne Ralph
Stephen Porges
Campbell McComb
-
-
- Winton Willesee
-
Andrew McKay
-
Robert Parton
During the financial year, the Group incurred a premium to insure the directors and officers of the Group. Disclosure
of the nature of the liabilities covered and the amount of the premium payable is prohibited by the insurance
contract.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law
indemnified or agreed to indemnify an officer or auditor of the company or any of its controlled entities against a
liability incurred as such an officer or auditor.
Meetings of directors
The number of meetings of the Company’s Board of Directors and of each board committee held during the year
ended 30 June 2021, and the number of meetings attended by each director were:
Directors' Meetings
Risk Committee Meetings
Number
eligible to
attend
14
14
14
Number
attended
14
14
14
Number
eligible to
attend
4
-
4
Number
attended
4
-
4
Remuneration and
Nominations Meetings
Number
Number
attended
eligible to
attend
-
2
2
-
2
2
John Nantes
Craig Swanger
Chris Whitehead
Proceedings on behalf of the Company
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section
237 of the Corporations Act 2001.
43
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Non-audit services
BDO Audit Pty Ltd were appointed Company auditor on 25 September 2020 and will continue in office in
accordance with section 327 of the Corporations Act 2001. The Company may decide to engage the auditor on
assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Group
are important.
The following fees were paid or payable to BDO for non-audit services provided during the year ended 30 June
2021:
Taxation services
$
2,500
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by
another person or firm on the auditor's behalf), is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 18 to the financial statements do not
compromise the external auditor's independence requirements of the Corporations Act 2001 for the following
reasons:
•
all non-audit services have been reviewed and approved to ensure that they do not impact the integrity
and objectivity of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical
Standards Board, including reviewing or auditing the auditor's own work, acting in a management or
decision-making capacity for the company, acting as advocate for the company or jointly sharing
economic risks and rewards.
•
Auditor's independence declaration
The auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 for the year
ended 30 June 2021 has been received and can be found within the financial report.
Performance rights
At the date of this report, the unissued ordinary shares of Wisr Limited under performance rights are as follows:
Effective Grant Date
Date of Expiry
Exercise Price Number under Performance Rights
19 February 2019
1 September 2019
1 September 2019
31 July 2021
31 July 2021
31 July 2022
1 September 2019
30 June 2022
1 July 2020
1 July 2020
31 July 2022
31 July 2023
Nil
Nil
Nil
Nil
Nil
Nil
10,438,422
4,901,178
4,802,382
39,350,000
5,407,833
5,407,861
70,307,676
Performance rights holders do not have any rights to participate in any issues of shares or other interests of the
Company or any other entity.
There have been no performance rights granted over unissued shares or interests of any controlled entity within the
Group during or since the end of the reporting period.
For details of performance rights issued to directors and executives as remuneration, refer to the remuneration
report.
Corporate governance statement
Our Corporate Governance Statement is available on our website at: www.wisr.com.au/policies-and-governance
44
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report
Letter from Chairperson of the Remuneration and Nominations Committee
Dear Shareholders,
On behalf of the Board, I am pleased to present Wisr’s Remuneration Report (Report) for the financial year ended
30 June 2021 (FY21).
This report outlines Wisr’s remuneration strategy set by the Board in 2019 and executed over the past 24 months.
Wisr’s remuneration framework, as outlined in the accompanying Report, reflects our commitment to deliver
competitive remuneration for outstanding performance in order to attract and retain talented individuals, while
aligning the interests of executives and shareholders. Most importantly in FY20 and FY21, cash conservation was
and continues to be the key to protect shareholder value and avoid unnecessary dilution.
As such, performance-based non-cash remuneration forms a significant portion of Wisr’s remuneration strategy.
This approach is used for KMPs, directors and senior management, and the KPIs and behaviours required to qualify
for awards are linked all the way through the organisation, aligning values, behaviours and shareholder-interests.
When it comes to KMPs and directors in particular, Wisr’s strategy involves recipients receiving significantly less
fixed (cash) remuneration than their market value. The trade-off for them is that they receive equity-based
incentives that could take their total remuneration to more than their market value.
This is an “executives win only if shareholders win” remuneration strategy targeted at entrepreneurial leaders that
will back themselves to deliver for shareholders. If shareholder returns don’t perform at 15% p.a. at least, total
remuneration will be well below market as it will be limited to fixed cash remuneration and potentially STI where
applicable. If they exceed 15% p.a. but less than 30% p.a., total remuneration will be in line with market for the
same individuals; and if returns reach 200% or more over the three year period, total remuneration will be above
market.
Similarly and unlike the remuneration approach of many ASX-listed companies, equity-based incentives also
require minimum service and behaviour standards.
The total value of these packages has been benchmarked to relevant peers on the ASX in terms of fixed (cash)
remuneration components and maximum remuneration. The share price triggers were set in consultation with
KMPs, with the team collectively choosing shareholder return triggers well above those typically used by peers on
the ASX, allowing us greater alignment of interests while managing the cost of the total packages.
Regarding STI, each year the Board will assess several factors including the quality of the results, adherence to
risk management policies, achievement against individual objectives and the effectiveness of strategic initiatives
implemented to determine the extent to which the overall outcomes adequately reflect actual performance and
returns to shareholders.
This Report is structured to provide shareholders with insights into the remuneration governance, policies,
procedures and practices being applied. Remuneration is a complex topic, particularly when equity-based
incentives are included. We trust that should you have any questions about the rationale for our approach or any
of the details, that you will let us know.
Craig Swanger
Chairperson, Remuneration and Nominations Committee
45
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (audited)
Wisr Limited’s 2021 remuneration report sets out remuneration information for the Company’s directors and other
key management personnel.
The report contains the following sections:
a) Key management personnel disclosed in this report
b) Remuneration governance
c) Service agreements
d) Details of remuneration
e) Equity instruments held by key management personnel
f) Movement in performance rights
g) Fair value of performance rights
a) Key management personnel disclosed in this report
The key management personnel are those persons having authority and responsibility for planning, directing and
controlling the major activities of the Group, directly or indirectly, including any director (whether executive or
otherwise) of the Parent Entity.
During the year ended 30 June 2021 and up to the date of this report, the following were classified as key
management personnel:
Name
Position
John Nantes
Executive Chairman
Craig Swanger
Non-Executive Director
Chris Whitehead
Non-Executive Director
Anthony Nantes
Chief Executive Officer
Andrew Goodwin
Chief Financial Officer
b) Remuneration governance
The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:
-
-
-
-
-
competitiveness and reasonableness;
acceptability to shareholders;
performance linkage and alignment of executive compensation;
transparency; and
capital management.
i. Our remuneration framework
Wisr’s remuneration strategy is approved by the Board. A Remuneration and Nominations Committee (RNC) was
established on 26 June 2020. The role of the RNC is set out in its charter, which is reviewed annually.
46
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (audited) (cont.)
b) Remuneration governance (cont.)
Wisr Remuneration Framework (2019-2022)
Objectives
Attract, motivate
and retain executive
talent required to
deliver strategy.
Appropriately
balance fixed and
at-risk components.
Remuneration
Component
Total Remuneration
(TR)
Total Fixed
Remuneration (TFR)
TFR set according
to similar positions
at ASX companies
of WZR size today.
This will result in
fixed (cash) rem
being at market if
executives do not
grow the Company
in line with the
strategy, but well
under market if they
do.
n/a
Create reward
differentiation to
drive performance
values and
behaviours.
Variable Cash
Remuneration (STI)
0-50% depending
upon position.
None for directors.
Can be taken as
equity at executive’s
option with 10%
discount to reflect
premium on cash.
Create shareholder
value through equity
alignment.
Variable Equity
Remuneration (LTI)
LTI to form 40-70%
of TR.
100% of LTI is at-
risk, meaning that
the minimum LTI
payment is nil for all
executives.
Must pass all
compliance KPIs to
exceed nil, then
performance driven
according to
individual but
aligned KPIs.
All LTI linked to
share price
increases of 15%-
200% from the
share price of
12.51c at the time of
issue (2019). LTI
also requires min
service and
compliance KPIs to
be satisfied.
Conserve cash and
therefore minimise
shareholder dilution.
Align behaviour in
short-term,
including risk
management and
revenue growth,
while conserving
cash.
Align executives to
manage all aspects
required for
shareholder growth
including earnings
growth, compliance
and attracting
shareholders.
Amount and
Range (Min Rem –
Max Rem)
Conditions to
exceed Min
Strategy behind
this approach
Min Rem 2nd-3rd
quartile level for
WZR current size
Max Rem at 2nd – 3rd
quartile at WZR
market cap if LTI
hurdles achieved
(38.00 cents per
share by 2022).
Must pass all
compliance KPIs to
exceed Min Rem. In
order to reach Max
Rem, individual STI
hurdles must be
exceeded each
year, share price
hurdles of up to
200% growth over 3
years must be
passed, and tenure
must be at least 3
years.
WZR’s strategy
requires executives
with experience well
beyond what WZR
can afford in cash
rem. Further there
are no guarantees
of success, so the
framework relies
heavily upon at-risk
components.
In accordance with best practice corporate governance, the structure of non-executive director and executive
remuneration is separate and distinct.
ii. Remuneration Structures for non-executive directors
Non-executive director remuneration was designed to attract and retain directors of the highest calibre, whilst
incurring a cost which is acceptable to shareholders.
47
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (audited) (cont.)
b) Remuneration governance (cont.)
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors
shall be determined from time to time by a general meeting. An amount not exceeding the amount determined is
then divided between the directors as agreed. The latest determination was adopted by a special resolution passed
at the Annual General Meeting held on 17 November 2016 when shareholders adopted a new constitution providing
for an aggregate remuneration of up to a maximum of $500,000 per year, excluding share-based payments such
as performance rights.
The aggregate remuneration is reviewed annually. The remuneration for non-executive directors is currently
comprised of cash, superannuation contributions and performance rights.
Retirement allowances for non-executive directors
There is no scheme to provide retirement benefits, other than statutory superannuation, to non-executive
directors.
iii. Remuneration Structures for current executives
The remuneration aspects for current executives aims to reward executives with a level and mix of remuneration
commensurate with the position and responsibilities within the Company and so as to:
-
-
align the interests of executives with those of the shareholder; and
ensure total remuneration is competitive by market standards in order to attract and retain talented
individuals.
Fixed remuneration
The level of fixed remuneration for executives is set so as to provide a base level of remuneration which is both
appropriate to the position and is competitive in the market. Executives receive fixed remuneration by way of salary
and company superannuation payments.
At-risk remuneration
Wisr’s performance hurdles, particularly for the LTI, are at the higher end of the market (ASX peer companies) in
terms of degree of difficulty. Any STI and LTI award will only have value to the executive if the performance hurdles
are met to enable vesting to occur, and for performance rights related awards, if the share price on vesting exceeds
the trigger price.
In the event of serious misconduct or a material misstatement in the company’s financial statements, the RNC
can cancel or defer performance-based remuneration and may also claw back performance-based remuneration
paid in previous financial years.
In addition, all executives above have entered into a voluntary escrow agreement in which they have agreed to
retain all remuneration-related equity for their full tenure (other than as required to cover any income tax liabilities
relating to this equity). This was not a condition of the LTI Plan, but agreed collectively by the executives.
Retirement benefits
No executives have entered into employment agreements that provide additional retirement benefits.
iv. Company Performance linked to remuneration
Given the growth nature of the Company, the lack of profit and other key financial variables as shown in the table
below, the award of LTI are made on the basis of each individual’s contribution to their specific role in the Company
to date and their expected importance to the future of the Company. LTI were deemed to provide an appropriate
performance incentive for each individual as applicable.
30 June 2021
30 June 2020
30 June 2019
30 June 2018
30 June 2017
$
27.231m
(17.639m)
nil
92.410m
$0.26
$
7.166m
(23.535m)
nil
37.973m
$0.22
$
3.043m
(7.731m)
nil
11.993m
$0.15
$
1.591m
(6.208m)
nil
1.549m
$0.02
$
1.160m
(5.432m)
nil
3.479m
$0.03
Operating revenue
Loss
Dividend
Cash balance
Share price
48
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (audited) (cont.)
c) Service agreements
The remuneration agreements of key management personnel as at 30 June 2021 are set out below:
KMP
Position held as at 30
June 2021 and any
change during the year
Contract details (duration and
termination)
J Nantes
Executive Chairman
C Swanger
Non-executive director
C Whitehead Non-executive director
A Nantes
Chief Executive Officer
No determined duration – subject
to retirement and re-election rules
of the Company’s constitution.
No notice required to terminate.
No determined duration – subject
to retirement and re-election rules
of the Company’s constitution.
No notice required to terminate.
No determined duration – subject
to retirement and re-election rules
of the Company’s constitution.
No notice required to terminate.
No fixed term.
6 months’ notice to terminate.
A Goodwin
Chief Financial Officer
No fixed term.
6 months’ notice to terminate.
Agreed gross cash salary
per annum incl.
superannuation
$
100,000
60,000
60,000
317,550
(base cash salary per
service agreement)
317,550
(base cash salary per
service agreement)
49
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (audited) (cont.)
c) Service agreements (cont.)
In addition to the above salary based compensation, the following key management personnel have been granted
performance rights to align their compensation with the performance of the Company, as reflected in its share
price. Performance rights are granted in tranches and are linked to share prices over designated periods, as per
the following table:
KMP
J Nantes
C Swanger
C Whitehead
A Nantes
A Goodwin
VWAP share price
target *
No. performance
rights that will
vest
Earliest
determination
date for vesting
Date performance
rights lapse if
conditions not
met
$0.1924
$0.3800
$0.1924
$0.3800
$0.1924
$0.3800
$0.1924
$0.3000
$0.3800
$0.1924
$0.3000
$0.3800
2,880,000
3,080,000
01/07/2021
01/09/2019
30/06/2022
30/06/2022
1,600,000
1,710,000
01/07/2021
01/09/2019
30/06/2022
30/06/2022
1,600,000
1,710,000
01/07/2021
01/09/2019
30/06/2022
30/06/2022
10,010,000
3,500,000
5,000,000
4,300,000
1,630,000
2,330,000
01/07/2021
01/09/2019
01/09/2019
01/07/2021
01/09/2019
01/09/2019
30/06/2022
30/06/2022
30/06/2022
30/06/2022
30/06/2022
30/06/2022
* These Performance Rights will automatically vest and exercise for nil consideration on satisfaction of the Vesting Conditions.
The Vesting Conditions for the Performance Rights are:
-
-
The holder being a director/employee of the Company as at the relevant vesting determination dates specified in
the table; and
The relevant volume weighted average price (VWAP) of the Company’s ordinary shares traded on ASX over any 20-
day period exceeds the prices specified in the table.
50
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (audited) (cont.)
d) Details of remuneration
The following table of benefits and payment details, in respect to the financial year, represents the components
of remuneration for each member of the key management personnel of the Group:
Post
employment
Long-term
Short term benefits
benefits
benefits Share based payments
Cash salary,
fees & short-
Short-
term
term
compensated
incentive
Long
service
Performance
Performance
absences
schemes
Superannuation
leave
Rights
Shares
Total
Related
($)
($)
($)
($)
($)
($)
($)
(%)
Directors
(2021)
J Nantes
C Swanger
C Whitehead
106,887
54,795
54,795
Total:
216,477
-
-
-
-
1,446
5,205
5,205
11,856
-
-
-
-
33,152
18,418
18,418
69,988
Executives
(2021)
A Nantes
290,000
94,830
28,960
3,593
A Goodwin
290,000
64,218
Total:
580,000
159,048
27,572
56,532
3,281
6,874
Directors
(2020)
J Nantes
C Swanger
C Whitehead
91,324
54,795
54,795
Total:
200,914
-
-
-
-
8,676
5,205
5,205
19,086
-
-
-
-
115,178
49,596
164,774
530,113
391,487
293,926
-
-
-
-
-
-
-
-
-
-
141,485
78,418
78,418
298,321
532,561
434,667
967,228
630,113
451,487
353,926
23.43
23.49
23.49
37.65
25.74
84.13
86.71
83.05
1,215,526
- 1,435,526
Executives
(2020)
A Nantes
290,000
164,155
A Goodwin
290,000
65,050
25,341
23,952
2,729
2,492
2,024,716 711,187
3,218,128
1,116,069
-
1,497,563
90.12
78.87
Total:
580,000
229,205
49,293
5,221
3,140,785 711,187 4,715,691
Further details of performance-related remuneration paid or accrued for FY2021 in respect of specific key
management personnel are discussed below:
- Mr A Nantes
Mr Nantes is eligible to receive a short-term incentive (STI) of up to $50,000 in respect of each six-month
period, subject to the achievement of key performance indicators as agreed by the Board of Directors
from time to time, assessed in the sole discretion of the Board and paid following the Board’s approval of
the Company’s audited accounts for the relevant period.
- Mr A Goodwin
Mr Goodwin is eligible to receive an STI of up to $34,000 in respect of each six-month period, subject to
the achievement of key performance indicators as agreed by the Board of Directors from time to time,
assessed in the sole discretion of the Board.
Short-term and long-term incentives established in the year for the above KMPs are also set out in Note 22 of the
financial report.
Performance conditions set for KMP short-term and long-term incentives (as discussed above and in Note 22 of
the financial report) align the KMP interests with the outcomes for shareholders, customers, and staff. The
achievement of these performance conditions support the growth of company value whilst providing KMPs with
51
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (audited) (cont.)
d) Details of remuneration (cont.)
remuneration packages that are above market rates relative to peer roles. Conversely, an underperformance of
goals expose KMPs to a level of financial risk where their remuneration packages become well below market
rates.
e) Equity instruments held by key management personnel
The table below shows the number of ordinary shares in the Company held by key management personnel.
Balance at the start
Received as
exercise of options
Other changes
Balance at end of
of the year
compensation
or rights
during the year
the year
Received on
2,390,000
1,430,000
1,330,000
5,150,000
44,355
(2,031,953)
50,000
13,201,370
4,091,666
5,830,000
(1,937,598)
23,123,036
Directors (2021)
J Nantes
C Swanger
C Whitehead
10,767,015
4,693,619
4,450,000
Total:
19,910,634
Executives
(2021)
A Nantes
A Goodwin
Total:
Directors (2020)
J Nantes
C Swanger
C Whitehead
Total:
Executives
(2020)
A Nantes
A Goodwin
39,108,736
12,871,491
51,980,227
8,847,015
2,773,619
3,390,000
15,010,634
8,950,016
1,704,079
Total:
10,654,095
-
-
-
-
-
5,037,412
5,037,412
8,150,000
3,900,000
12,050,000
-
-
-
-
1,920,000
1,920,000
1,060,000
4,900,000
20,158,720
5,037,412
25,196,132
10,000,000
6,130,000
16,130,000
-
-
-
-
-
-
-
-
-
-
47,258,736
21,808,903
69,067,639
10,767,015
4,693,619
4,450,000
19,910,634
39,108,736
12,871,491
51,980,227
f) Movement in performance rights
The table below provides the number of performance rights held by Key Management Personnel at 30 June 2020
and 30 June 2021.
Name
June 2020
during FY21
during FY21
during FY21
June 2021
Rights held at 30
Rights granted
Rights exercised
Rights lapsed
Rights held as at 30
Directors
J Nantes
C Swanger
C Whitehead
Total:
Executives
A Nantes
A Goodwin
Total:
52
8,350,000
4,640,000
4,640,000
17,630,000
26,660,000
12,160,000
38,820,000
-
-
-
-
-
-
-
2,390,000
1,330,000
1,330,000
5,050,000
8,150,000
3,900,000
12,050,000
-
-
-
-
-
-
-
5,960,000
3,310,000
3,310,000
12,580,000
18,510,000
8,260,000
26,770,000
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
Remuneration report (cont.)
g) Fair value of performance rights
Performance Rights granted
Vesting Conditions
Fair Value
per right at
Effective
effective grant
Number
grant date
date
($)
Earliest
vesting
VWAP Share
determination
Price condition
date
($)
Expiry date
2,880,000
1 Sep 2019
0.02065
01/07/2021
0.1924
30 Jun 2022
3,080,000
1 Sep 2019
0.02284
01/09/2019
0.3800
30 Jun 2022
1,600,000
1 Sep 2019
0.02065
01/07/2021
0.1924
30 Jun 2022
1,710,000
1 Sep 2019
0.02284
01/09/2019
0.3800
30 Jun 2022
Directors
(2021)
J Nantes
J Nantes
C Swanger
C Swanger
C Whitehead
1,600,000
1 Sep 2019
0.02065
01/07/2021
0.1924
30 Jun 2022
C Whitehead
1,710,000
1 Sep 2019
0.02284
01/09/2019
0.3800
30 Jun 2022
Executives
(2021)
A Nantes
A Nantes
A Nantes
A Goodwin
A Goodwin
A Goodwin
10,010,000
1 Sep 2019
0.02065
01/07/2021
0.1924
30 Jun 2022
3,500,000
1 Sep 2019
0.03926
01/09/2019
5,000,000
1 Sep 2019
0.02284
01/09/2019
0.3000
0.3800
30 Jun 2022
30 Jun 2022
4,300,000
1 Sep 2019
0.02065
01/07/2021
0.1924
30 Jun 2022
1,630,000
1 Sep 2019
0.03926
01/09/2019
2,330,000
1 Sep 2019
0.02284
01/09/2019
0.3000
0.3800
30 Jun 2022
30 Jun 2022
These Performance Rights will automatically vest and exercise for nil consideration on satisfaction of the Vesting
Conditions.
The Vesting Conditions for the Performance Rights are:
-
-
The holder being a director/employee of the Company as at the relevant vesting determination dates
specified in the table; and
The relevant volume weighted average price (VWAP) of the Company’s ordinary shares traded on ASX
over any 20-day period exceeds the prices specified in the table.
The total fair value of above rights at grant date issued to key management personnel is $938,267. The value of
rights differs to the expense recognised as part of each key management person’s remuneration in table d) above
because this value is the grant date fair value calculated in accordance with AASB 2 Share Based Payment whereby
the expense is recognised throughout the vesting period.
53
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ REPORT
For the year ended 30 June 2021
This concludes the remuneration report, which has been audited.
This report is made in accordance with a resolution of directors.
...............................................................
John Nantes
Director
Sydney
26 August 2021
54
WISR LIMITED • ANNUAL REPORT 2021
AUDITOR’S INDEPENDENCE DECLARATION
55
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Consolidated statement of profit or loss and other comprehensive income
For the year ended 30 June 2021
Revenue
Other income
Expenses
Employee benefits expense
Marketing expense
Customer processing costs
Property expenses
Other expenses
Finance costs
Depreciation and amortisation expense
Provision for expected credit loss expense
Share based payment expense
Loss before income tax
Income tax expense
Loss after income tax for the year
Loss for the year is attributable to:
Owners of Wisr Limited
Earnings per share for loss attributable to the owners of Wisr
Limited
Basic earnings per share
Diluted earnings per share
Other comprehensive loss
Gain (loss) arising from changes in fair value of cash flow hedging
instruments entered into
Other comprehensive loss for the year, net of tax
Note
2021
$
2020
$
2
3
27,230,985
344,188
7,166,322
547,402
(14,191,169)
(6,264,211)
(3,067,701)
(187,949)
(4,232,284)
(7,614,021)
(541,922)
(7,934,680)
(1,180,559)
(9,510,059)
(4,464,333)
(1,898,724)
(244,969)
(3,430,393)
(1,351,689)
(117,336)
(4,097,956)
(6,133,091)
(17,639,323)
(23,534,826)
-
-
(17,639,323)
(23,534,826)
(17,639,323)
(23,534,826)
Cents
(1.60)
(1.60)
Cents
(2.60)
(2.60)
795,948
795,948
(202,842)
(202,842)
5
29
17
26
26
15
Total comprehensive loss for the year
(16,843,375)
(23,737,668)
Total comprehensive loss for the year is attributable to:
Owners of Wisr Limited
(16,843,375)
(23,737,668)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes
56
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Consolidated statement of financial position
As at 30 June 2021
Assets
Cash and cash equivalents
Trade and other receivables
Loan receivables
Property, plant and equipment
Other assets
Right of use assets
Derivative financial instruments
Intangible assets
Total assets
Liabilities
Trade and other payables
Provision for employee benefits
Lease liability
Derivative financial instruments
Borrowings
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Note
2021
$
2020
$
4
6
5
7
11
13
8
9
10
11
13
12
92,409,558
1,208,633
374,651,379
263,471
521,759
1,729,578
264,050
384,544
37,973,266
1,023,326
85,997,500
5,733
489,569
-
-
471,760
471,432,972
125,961,154
3,945,333
872,215
1,886,648
-
392,472,477
2,512,852
541,540
-
225,129
86,710,392
399,176,673
89,989,913
72,256,299
35,971,241
14
15
15
143,678,390
3,250,454
(74,672,545)
89,827,317
3,181,186
(57,037,262)
72,256,299
35,971,241
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
57
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Consolidated statement of changes in equity
For the year ended 30 June 2021
Balance at 1 July 2019
Loss after income tax expense for the year
Other comprehensive loss for the year, net of
tax
Total comprehensive loss for the year
Transactions with owners in their capacity as
owners:
Issued
capital
$
48,412,004
Reserves
$
1,895,421
Accumulated
losses
$
(33,534,592)
Total
equity
$
16,772,833
-
-
-
-
(23,534,826)
(23,534,826)
(202,842)
-
(202,842)
(202,842)
(23,534,826)
(23,737,668)
Issue of share capital
Costs of raising capital
36,500,100
(859,972)
-
-
Share based payment expense (Note 15)
1,318,542
4,814,549
Transfer of share based reserve to issued
capital on exercise of options
3,255,476
(3,255,476)
Issue of shares as a result of exercise of options
for consideration
1,201,167
(38,310)
-
-
-
-
-
36,500,100
(859,972)
6,133,091
-
1,162,857
Transfer of share based payment reserve
-
(32,156)
32,156
-
Balance at 30 June 2020
89,827,317
3,181,186
(57,037,262)
35,971,241
Balance at 1 July 2020
89,827,317
3,181,186
(57,037,262)
35,971,241
Loss after income tax expense for the year
Other comprehensive gain for the year, net of
tax
Total comprehensive loss for the year
Transactions with owners in their capacity as
owners:
-
-
-
-
(17,639,323)
(17,639,323)
795,948
-
795,948
795,948
(17,639,323)
(16,843,375)
Issue of share capital
Costs of raising capital
54,999,914
(3,160,131)
-
-
Share based payments expense (Note 15)
-
1,180,559
-
-
-
54,999,914
(3,160,131)
1,180,559
Transfer of share-based reserve to issued
capital on exercise of options
Issue of shares as a result of exercise of options
for consideration
1,835,713
(1,835,713)
-
145,577
(37,486)
108,091
Issue of shares for services rendered
30,000
(30,000)
Transfer of share-based payment reserve
-
(4,040)
4,040
-
-
Balance at 30 June 2021
143,678,390
3,250,454
(74,672,545)
72,256,299
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
58
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Consolidated statement of cash flows
For the year ended 30 June 2021
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received on investments and cash
Management fees received
Interest and other finance costs paid
Proceeds from R&D tax incentive
Note
2021
$
2020
$
24,305,699
(27,595,351)
(3,289,652)
4,814,906
(18,256,184)
(13,441,278)
11,285
1,176,790
(6,261,893)
380,874
48,843
1,472,386
(1,109,037)
219,078
Net cash used in operating activities
25
(7,982,596)
(12,810,008)
Cash flows from investing activities
Payments for plant and equipment
Receipts from investments
Net movement in customer loans
(308,875)
-
(294,052,383)
-
518,000
(83,078,103)
Net cash used in investing activities
(294,361,258)
(82,560,103)
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from exercise of share options
Costs of raising capital paid
Repayment of borrowings – secured notes
Proceeds from issuance of borrowings
Transaction costs related to borrowings
Payments for right of use asset
54,999,914
108,091
(3,076,009)
(1,675,000)
309,325,000
(2,552,511)
(349,339)
36,500,100
1,162,857
(859,972)
(425,000)
85,600,000
(627,773)
-
Net cash provided by financing activities
356,780,146
121,350,212
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
54,436,292
37,973,266
25,980,101
11,993,165
Cash and cash equivalents at the end of the financial year
92,409,558
37,973,266
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
59
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
The consolidated financial statements of Wisr Limited (the Group) for the year ended 30 June 2021 was authorised
for issue in accordance with a resolution of the directors on 26 August 2021. The directors have the power to
amend and revise the financial report.
The consolidated financial statements and notes represent those of Wisr Limited and its controlled entities (the
Group).
Wisr Limited is a company limited by shares incorporated and domiciled in Australia whose shares are publicly
traded on the Australian Stock Exchange.
Note 1. Summary of significant accounting policies
a.
Basis of preparation
These general purpose consolidated financial statements have been prepared in accordance with the Corporations
Act 2001, Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board and
in compliance with International Financial Reporting Standards as issued by the International Accounting Standards
Board. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
Material accounting policies adopted in the preparation of these financial statements are presented below and
have been consistently applied unless stated otherwise.
Except for cash flow information, the financial statements have been prepared on an accrual basis and are based
on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities.
The statement of financial position is presented on a liquidity basis. Assets and liabilities are presented in
decreasing order of liquidity and do not distinguish between current and non-current. All balances are expected
to be recovered within 12 months except for intangible assets, property, plant and equipment and financial
instruments, for which expected term is disclosed.
Where required by Accounting Standards and/or for improved presentation purposes, comparative figures have
been adjusted to conform with changes in presentation for the current year.
i) Going concern
These financial statements have been prepared under a going concern basis.
The Directors believe that the Group will have sufficient resources to pay its debts and meet its
commitments for at least the next 12 months from the date of this financial report due to the Group having:
-
-
both of which support its operational commitments.
strong cash reserves boosted by the successful capital raise it completed in H2FY21; and
wholesale funding arrangements for future loan originations;
ii) New and revised accounting standards and interpretations
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting
period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have
not been early adopted.
60
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
b.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of the Company and all subsidiaries as
at 30 June 2021, and the results of all subsidiaries for the year then ended.
Subsidiaries are all those entities over which the Company has the power to govern the financial and operating
policies, generally accompanying a shareholding of 100% of the voting rights. The existence and effect of potential
voting rights that are currently exercisable or convertible are considered when assessing whether the Company
controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-
consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of
the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Investments in subsidiaries are accounted for at cost in the individual financial statements of the Company, less
any impairment charges.
c.
Foreign currency transactions and balances
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the
primary economic environment in which the entity operates (the functional currency). The consolidated financial
statements are presented in Australian dollars, which is Wisr Limited’s functional and presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised through profit or loss, except when deferred in equity as qualifying cash flow hedges
and qualifying net investment hedges.
d.
Impairment of assets
Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable, and as a minimum, annually. An impairment loss is recognised for the amount by which
the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's
fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash
inflows from other assets or groups of assets (cash-generating units). Non-financial assets, other than goodwill,
that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting
period.
e.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part
of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification is
determined based on both the business model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless, an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
61
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
e.
Investments and other financial assets (cont.)
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified
as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for
trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit,
or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are
recognised in profit or loss.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss
allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether
the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses
that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become
credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based
on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the
basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument
discounted at the original effective interest rate.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised
within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
f.
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as
part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable
to, the taxation authority is included with other receivables or payables in the statement of financial position.
g.
Critical accounting estimates and judgments
The Directors evaluate estimates and judgments incorporated into the financial statements based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the Group.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based
on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall
expected credit loss rate for each group. These assumptions include historical collection rates along with a COVID-
19 overlay.
h.
Fair value measurements
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an
orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at the
measurement date.
62
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
h.
Fair value measurements (cont.)
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to
determine fair value. Adjustments to market values may be made having regard to the characteristics of the
specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are
determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible,
the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (ie
the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a
market, the most advantageous market available to the entity at the end of the reporting period (ie the market that
maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after
taking into account transaction costs and transport costs).
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment
arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial
instruments, by reference to observable market information where such instruments are held as assets. Where this
information is not available, other valuation techniques are adopted and, where significant, are detailed in the
respective note to the financial statements.
The Group measures and recognises the following assets and liabilities at fair value on a recurring basis after initial
recognition:
-
-
Financial assets at fair value through profit & loss (investment)
Derivative financial instruments at fair value asset or (liability). Hedging ineffectiveness being
recognised through profit & loss.
(a) Fair Value Hierarchy
AASB 13: Fair Value Measurement requires the disclosure of fair value information by level of the fair value
hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level
that an input that is significant to the measurement can be categorised into as follows:
Level 1
Level 2
Level 3
Measurements based on quoted prices
(unadjusted) in active markets for
identical assets or liabilities that the
entity can access at the measurement
date.
Measurements based on inputs
other than quoted prices included in
Level 1 that are observable for the
asset or liability, either directly or
indirectly.
Measurements based on
unobservable inputs for the
asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more
valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market
data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level
2. If one or more significant inputs are not based on observable market data, the asset or liability is included in
Level 3.
Valuation techniques
The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is
available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific
characteristics of the asset or liability being measured. The valuation techniques selected by the Group are
consistent with one or more of the following valuation approaches:
- Market approach: valuation techniques that use prices and other relevant information generated by
-
-
market transactions for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current
service capacity.
63
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
h.
Fair value measurements (cont.)
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when
pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group
gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable
inputs. Inputs that are developed using market data (such as publicly available information on actual transactions)
and reflect the assumptions that buyers and sellers would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market data is not available and therefore are developed using
the best information available about such assumptions are considered unobservable
Interest rate swap contracts are valued using a discounted cash flow approach. Future cash flows are estimated
based on observable forward interest rates and discounted based on applicable yield curves at the reporting date,
taking into consideration the credit risk of the Group and various counterparties. These are deemed to be level 2
inputs as related to both quoted prices and observable inputs to the asset or liability.
i.
Hedge accounting
The Group designates interest rate swaps as hedging instruments as cash flow hedges.
At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument
and the hedged item, along with its risk management objectives and its strategy for undertaking hedge
transactions. Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether
the hedging instrument is effective in offsetting changes in cash flows of the hedged item attributable to the
hedged risk, which is when the hedging relationships meet all of the following hedge effectiveness requirements:
-
-
-
there is an economic relationship between the hedged item and the hedging instrument;
the effect of credit risk does not dominate the value changes that result from that economic
relationship; and
the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the
hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group
actually uses to hedge that quantity of hedged item.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the
risk management objective for that designated hedging relationship remains the same, the Group adjusts the
hedge ratio of the hedging relationship (i.e. rebalances the hedge) so that it meets the qualifying criteria again.
Cash flow hedges
The effective portion of changes in the fair value of derivatives and other qualifying hedging instruments that are
designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated under
the heading of cash flow hedging reserve, limited to the cumulative change in fair value of the hedged item from
inception of the hedge. The gain or loss relating to the ineffective portion is recognised immediately in profit or
loss, and is included in the ‘other gains and losses’ line item.
Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit
or loss in the periods when the hedged item affects profit or loss, in the same line as the recognised hedged item.
The Group discontinues hedge accounting only when the hedging relationship (or a part thereof) ceases to meet
the qualifying criteria (after rebalancing, if applicable). This includes instances when the hedging instrument
expires or is sold, terminated or exercised. The discontinuation is accounted for prospectively. Any gain or loss
recognised in other comprehensive income and accumulated in cash flow hedge reserve at that time remains in
equity and is reclassified to profit or loss when the forecast transaction occurs.
Movements in the hedging reserve in equity are detailed in note 15.
64
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 2. Revenue
Interest income on financial assets
Effective interest income on financial assets
Other revenue from financial assets
Interest on cash
Interest from investments
Total income from financial assets
Revenue from contracts with customers
Management fees
Total revenue from contracts with customers
Total revenue
Disaggregation of revenue
Consolidated
2021
$
2020
$
25,586,055
170,806
11,285
-
25,768,146
4,903,505
320,887
10,544
38,299
5,273,235
1,462,839
1,462,839
1,893,087
1,893,087
27,230,985
7,166,322
The above provides a breakdown of revenue by major revenue stream. The categories above depict how the
nature, amount, timing and uncertainty of revenue and cash flows are affected by economic data. As disclosed in
the directors’ report, the Group has one operating segment.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the
revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
Interest income on financial assets
i)
Interest income
Interest revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the relevant
period using the effective interest rate, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
ii) Loan establishment fees
Loan establishment fees are deferred and recognised as an adjustment to the effective interest rate as
these fees are an integral part of generating an involvement with the resulting financial instrument.
Revenue from contracts with customers
Management fees
Management fees are earned through the contracts with funders (customers) which entitle the consolidated entity
to fees as a result of satisfying the performance obligation, being the monthly management of the associated loan
portfolio. Revenue is recognised on an over-time basis. The allocation of the transaction price is calculated as a
percentage of the loan balance managed by the consolidated entity on a monthly basis, being the satisfaction of
the performance obligation.
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected
to be entitled in exchange for transferring services to a customer.
The consolidated entity invoice on a monthly basis which aligns to the recognition criteria noted above and as a
result, there is no recognition of contract assets or liabilities required.
65
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 3. Other income
R&D and other tax incentives
Gain on loan purchase
Other income
Consolidated
2021
$
330,133
14,055
344,188
2020
$
430,874
116,528
547,402
Government grants revenue is recognised at fair value when there is reasonable assurance that the grant will be
received and the grant conditions will be met.
Note 4. Cash and cash equivalents
Cash at bank
Restricted cash
Consolidated
2021
$
64,756,642
27,652,916
92,409,558
2020
$
33,242,349
4,730,917
37,973,266
Reconciliation to cash and cash equivalents at the end of the financial year
The above figures are reconciled to cash and cash equivalents at the end of the
financial year as shown in the statement of cash flows as follows:
Balance as above
Balance as per statement of cash flows
92,409,558
92,409,558
37,973,266
37,973,266
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid
investments with original maturities of three months or less, bank overdrafts, and restricted cash.
Restricted cash is held by the Wisr Warehouse and is utilised for loan funding and not available to pay creditors of
other entities within the Group.
Note 5. Loan receivables
A financial asset shall be measured at amortised cost if it is held within a business model whose objective is to
hold assets in order to collect contractual cash flows which arise on specified dates and that are solely principal
and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held
within a business model whose objective is to both hold assets in order to collect contractual cash flows which
arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair
value. All other financial assets are classified and measured at fair value through profit or loss unless the entity
makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not
held-for-trading or contingent consideration recognised in a business combination) in other comprehensive
income ('OCI'). Despite these requirements, a financial asset may be irrevocably designated as measured at fair
value through profit or loss to reduce the effect of, or eliminate, an accounting mismatch.
Impairment of financial assets
The Group recognises a loss allowance for ECL on financial assets which are either measured at amortised cost or
fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group’s
assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased
significantly since initial recognition, based on reasonable and supportable information that is available, without
undue cost or effort to obtain.
The Group has adopted a three-stage model for ECL provisioning:
Stage 1: 12 months ECL
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month ECL
allowance is estimated. This represents a portion of the loan receivable lifetime ECL that is attributable to a default
event that is possible within the next 12 months. Effective interest is calculated on the gross carrying amount of
the loan receivable.
66
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 5. Loan receivables (cont.)
Stage 2: Lifetime ECL – not credit impaired
Where a loan receivable credit risk has increased significantly since initial recognition, but is not credit impaired,
the loss allowance is based on the loan receivable lifetime ECL. For these loan receivables, the Group recognises
as a collective provision a lifetime ECL (i.e. reflecting the remaining term of the loans receivable). Effective interest
is calculated on the gross carrying amount of the financial instrument.
Stage 3: Lifetime ECL – credit impaired
Where there is objective evidence that the loan receivable has become credit impaired, the loss allowance is based
on the loan receivable lifetime ECL. Effective interest is calculated on the net carrying amount of the financial
instrument.
For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised
within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.
Allowance for expected credit losses
The Group has historically adopted an off-balance sheet loan funding model which resulted in relatively low loan
receivables on balance sheet. With the Wisr Warehouse Trust No. 1 going live in mid-November 2019, loan
receivables on the balance sheet have increased significantly.
The ECL analysis was performed on three distinct loan receivable books:
Book 1 – Wisr Warehouse Trust - Predominantly Stage 1
Book 2 – Wisr Freedom Trust 2021-1 - Predominantly Stage 1
Book 3 – Wisr Finance - Combination of Stages 1 to 3. This book consists of seasoned, mostly legacy loan
receivables which didn’t qualify for sale to funding partners etc.
Credit loss refers to the instance whereby a counterparty defaults on its contractual obligations resulting in
financial loss to the group. Default is defined as loan receivables which are at least 90 days past due. A significant
increase in credit risk is defined as loan receivables which are at least 30 days past due.
The Group calculates ECL using three main components, the exposure at default (EAD), the probability of default
(PD) and the loss given default (LGD).
The EAD represents the total value the Group is exposed to when the loan receivable defaults. The 12-month ECL
is calculated by multiplying the 12-month EAD, PD and LGD. Lifetime ECL is calculated using the lifetime PD instead.
The 12-month and lifetime PDs represent the probability of default occurring over the next 12 months and the
remaining maturity of the loan receivable respectively. The LGD represents the unrecovered portion of the EAD
taking into account any applicable recovery of the loan receivable.
The Group originates loan receivables of 3, 5, and 7 year maturities to Australian consumers. These loans are
retained to maturity within the Wisr Warehouse Trust No. 1 and Wisr Freedom Trust 2021-1.
The allowance for ECL assessment requires a degree of estimation and judgement. It is based on 12-month and
lifetime ECL, grouped based on risk score determined at date of origination and days overdue, and makes
assumptions to allocate an overall ECL for each group. These assumptions include the Group loan book
performance history, existing economic and market conditions.
Loan receivables which were on a COVID-19 payment arrangement, where normal loan repayments have resumed
or the loan contract has been restructured, have been classified either at the stage prior to entering a payment
arrangement or under the terms of the new contract. Remaining COVID-19 affected loans have been classified as
a significant increase in credit risk or in default, however the number remaining in the portfolio is only 10 loans as
at 30 June 2021 which is 0.07%.
Scenario analysis and forward-looking macroeconomic assessments were not incorporated as a result of the
following factors:
-
COVID-19 affected loans were specifically assessed and it was noted that as only a very small
number remain in the portfolio no specific provision has been taken.
The Group enacted tightened credit policy and reduced risk tolerance in response to the COVID-19
pandemic.
-
67
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 5. Loan receivables (cont.)
-
The more recent pandemic impacts have not affected the 30 June 2021 position and new hardship
assistance request post June 30 have been negligible compared to FY20 impacts.
It was also noted that further scenario analysis and macroeconomic forecasting would result in undue cost and
effort.
Gross loan receivables
Less provision for expected credit loss
Consolidated
2021
$
384,091,403
(9,440,024)
374,651,379
2020
$
89,729,432
(3,731,932)
85,997,500
The following tables summarise gross carrying amount of loan receivables and provision for expected credit
loss by stages:
Gross loan receivables
12-month (Stage 1)
Lifetime (Stage 2 & 3)
Total gross carrying amount
Less provision for expected credit loss
12 month expected credit loss
Lifetime expected credit loss
Total provision for expected credit loss
376,868,793
7,222,610
384,091,403
84,019,478
5,709,954
89,729,432
5,413,601
4,026,423
9,440,024
1,970,134
1,761,798
3,731,932
Net balance sheet carrying value
374,651,379
85,997,500
Expected credit loss per gross loan receivables
12-month (Stage 1)
Lifetime (Stage 2 & 3)
Total expected credit loss per total gross loan receivables
Reconciliation of total provision for expected credit loss
Balance at 1 July
Expected credit loss expense recognised during the year to profit or loss
Receivables written-off during the year
Recoveries during the year
Balance at 30 June
Note 6. Trade and other receivables
Expected to be settled within 12 months
Accrued management fee income
R&D tax incentive receivable
%
1.44
55.75
2.46
%
2.34
30.85
4.16
$
3,731,932
7,934,680
(2,377,963)
151,375
9,440,024
$
235,646
4,097,956
(660,060)
58,390
3,731,932
Consolidated
2021
$
2020
$
928,501
280,133
1,208,634
642,452
380,874
1,023,326
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses for trade and
other receivables, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade
receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
68
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 7. Other assets
Expected to be settled within 12 months
Prepayments
Deposits
Cash held in trust
Note 8. Intangible assets
Technology assets:
Cost
Accumulated amortisation
Net carrying amount
Technology assets under development:
Cost
Accumulated amortisation
Net carrying amount
Total intangible assets
Consolidated
2021
$
2020
$
381,772
43,098
96,889
521,759
238,394
131,883
119,292
489,569
Consolidated
2021
$
2020
$
609,240
(237,424)
371,816
609,240
(150,208)
459,032
12,728
-
12,728
384,544
12,728
-
12,728
471,760
Technology assets are recognised at cost of acquisition. They have a finite life and are carried at cost less any
accumulated amortisation and any impairment losses. Technology assets are amortised over their useful lives
ranging from 2 to 5 years on a straight-line basis.
Development costs are charged to the statement of profit of loss and other comprehensive income as incurred, or
deferred where it is probable that sufficient future benefits will be derived so as to recover those deferred costs.
The recoverable amount of the group’s intangible assets have been tested for impairment via a value-in-use
calculation using a discounted cash flow model, based on discounted projected cashflows derived by the cash
generating unit over the useful life of the assets. The cash generating unit was identified as being related to the
operating cashflows earned via the Wisr App, being derived via account maintenance fees and loan referral income
and is related to the intangible assets noted above. No impairment has been identified (2020: no impairment).
Note 9. Trade and other payables
Expected to be settled within 12 months
Trade payables
Sundry payables
Accrued expenses
Superannuation payable
Consolidated
2021
$
2020
$
2,043,859
597,994
1,031,724
271,756
3,945,333
1,357,320
274,635
708,354
172,543
2,512,852
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other
payables are presented as current liabilities. The fair value of the trade and other payables is considered to
approximate their carrying value.
69
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 10. Employee benefits
Expected to be settled within 12 months
Provision for annual leave
Not expected to be settled within 12 months
Provision for long service leave
Total employee benefits
Consolidated
2021
$
2020
$
754,409
469,986
117,806
71,554
872,215
541,540
Provision is made for the Group’s obligation for employee benefits arising from services rendered by employees
to the end of the reporting period. Short term employee benefits are benefits (other than termination benefits and
equity compensation benefits) that are expected to be settled wholly within 12 months after the end of the annual
reporting period in which the employees render the related service, including wages, salaries and personal leave.
Short term employee benefits are measured at the (undiscounted) amounts expected to be paid when the
obligation is settled, plus any related costs. Long-term employee benefits are subjected to discounting and
actuarial valuations.
Note 11. Leases
The Group has a property lease which commenced in December 2020 with a 3 year and 1 month term.
The Group also had two non-cancellable property leases which expired in September 2020 at which point became
month on month agreements.
AASB 16 related amounts recognised in the statement of financial position:
Right of use assets
Leased property
Accumulated depreciation
Net right of use asset
Lease liabilities
Lease liabilities – expected to be settled within 12 months
Lease liabilities – not expected to be settled within 12 months
AASB 16 related amounts recognised in the statement of profit or loss
Depreciation charge related to right of use assets
Interest expense on lease liabilities
Government levies
Short-term lease expense prior to entering into above lease arrangement
2021
$
2020
$
2,133,146
(403,568)
1,729,578
684,336
1,202,312
1,886,648
2021
$
403,568
71,082
31,758
143,357
649,765
-
-
-
-
-
-
2020
$
-
-
-
244,969
244,969
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at
cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made
at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and,
except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and
removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the
leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are
subject to impairment or adjusted for any remeasurement of lease liabilities.
70
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 11. Leases (cont.)
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability for
short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets
are expensed to profit or loss as incurred.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate
implicit in the lease or, if that rate cannot be readily determined, the consolidated entity’s incremental borrowing
rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments
that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price
of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination
penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in
which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
Critical accounting judgements, estimates and assumptions
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability.
Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or
purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when
ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances
that create an economical incentive to exercise an extension option, or not to exercise a termination option, are
considered at the lease commencement date. Factors considered may include the importance of the asset to the
Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant
penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The
Group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination
option, if there is a significant event or significant change in circumstances.
Lease make good provision
A provision has been made for the present value of anticipated costs for future restoration of leased premises.
The provision includes future cost estimates associated with closure of the premises. The calculation of this
provision requires assumptions such as application of closure dates and cost estimates. The provision recognised
for each site is periodically reviewed and updated based on the facts and circumstances available at the time.
Changes to the estimated future costs for sites are recognised in the statement of financial position by adjusting
the asset and the provision. Reductions in the provision that exceed the carrying amount of the asset will be
recognised in profit or loss.
Incremental borrowing rate
An incremental borrowing rate of 6% is used as an estimate of the market borrowing rate.
Note 12. Borrowings
Secured note
Unsecured facility
Wisr Warehouse funding
Less transaction costs
Total borrowings
Consolidated
2021
$
-
2020
$
1,675,000
6,500,000
388,841,736
(2,869,259)
392,472,477
-
85,598,949
(563,557)
85,035,392
392,472,477
86,710,392
71
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 12. Borrowings (cont.)
Secured note
In FY2020, the note was used for working capital purposes through initial funding of loan receivables prior to them
being sold to funding partners as part of normal business operations.
Unsecured facility
As at 30 June 2021, the Group has drawn $6.5m of its $21.5m unsecured loan facility with a 9.5% p.a. coupon and
maturity in May 2023.
Wisr Warehouse funding
Wisr Warehouse funding are the facilities of Wisr Warehouse Trust No. 1 and Wisr Freedom Trust 2021-1. Both
facilities fund loan receivables for 3, 5 and 7 year maturities.
At 30 June 2021, Wisr Warehouse Trust No. 1 had $361.5m (2020: $95.0m) in committed financing, $174.6m (2020:
$85.9m) of which has been utilised. The facility is secured against the underlying pool of loan receivables with no
credit recourse back to the consolidated entity. Wisr Warehouse Trust No. 1 consists of four classes of notes with
Wisr the holder of the Class 4 note. The availability period of the facility is until November 2022. The all in cost of
funds for the Wisr Warehouse Trust No. 1 is circa 3.50% per annum.
Wisr Freedom Trust 2021-1 Trust represents the inaugural securitisation for the Group with a balance of $204.7m
(amortising loan book) as at 30 June 2021 and day one weighted average margin of circa 1.5% + 1 month BBSW.
The Unsecured facility and Wisr Warehouse borrowings are initially recognised at the fair value of the consideration
received, net of transaction costs. It is subsequently measured at amortised cost using the effective interest
method.
Note 13. Derivative financial instruments
Derivative financial instruments
Consolidated
2021
$
264,050
2020
$
(225,129)
The Group enters into derivative financial instruments (interest rate swaps) to manage its exposure to interest rate
risk.
Derivatives are recognised initially at fair value at the date a derivative contract is entered into and are
subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit
or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the
timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair
value is recognised as a financial liability. Derivatives are not offset in the financial statements unless the Group
has both legal right and intention to offset. Other derivatives are presented as current assets or current liabilities.
Interest swap contracts are categorised as Level 2 financial instruments as they are valued using observable
forward interest rates.
Note 14. Issued capital
(a) Issued and paid up capital
Ordinary shares fully paid
Costs of raising capital
Consolidated
2021
$
2020
$
149,162,775
(5,484,385)
143,678,390
92,151,571
(2,324,254)
89,827,317
Ordinary shares participate in dividends and the proceeds on winding up the Company. At shareholder meetings,
each ordinary share is entitled to one vote when a poll is called. Otherwise, each shareholder has one vote on
show of hands.
72
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 14. Issued capital (cont.)
Ordinary shares are classified as equity and recognised at the fair value of the consideration received by the Group.
No subsequent fair valuation is performed. Incremental costs directly attributable to the issue of new shares or
options are deducted from the value of issued capital.
(b) Reconciliation of issued and paid-up capital
Opening balance as at 1 July
Issue of shares from raising capital
Costs of raising capital
Issue of shares to CEO on vesting of performance
rights/for long-term incentives
Issue of shares to CFO on vesting of performance
rights/for long-term incentives
Issue of shares to directors on vesting of
performance rights
Issue of shares to staff on vesting of long-term
incentives
Issue of shares on exercise of options
Issue of shares for service
Issue of shares to Head of Growth (former COO) as
part of long-term incentive
Closing Balance as at 30 June
2021
Number of
shares
2020
$
Number of
shares
$
1,059,391,937
219,999,654
-
8,150,000
89,827,317
54,999,914
(3,160,131)
735,650
790,208,152
197,297,792
-
30,158,720
48,412,004
36,500,100
(859,972)
2,384,173
8,937,412
506,476
11,167,412
762,226
5,050,000
455,832
4,900,000
555,872
12,901,001
137,755
2,696,079
101,273
1,113,637
888,303
-
145,577
30,000
-
14,535,715
-
8,428,067
1,201,167
-
770,474
1,316,431,944
143,678,390 1,059,391,937
89,827,317
(c) Performance rights
As at 30 June 2021, there were a total of 70,307,676 (2020: 92,717,541) performance rights outstanding. Refer
to Note 29.
Under the Company’s Performance Rights Plan, these performance rights were issued at no cost to the recipients
and represent a right to one ordinary share in the Company in the future for no consideration, subject to satisfying
the performance conditions and compliance with the rules of the Plan.
(d) Capital management
Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate
long term shareholder value and ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
The Group is not subject to any externally imposed capital requirements.
The Group’s objectives when managing capital are to maximize shareholder value and to maintain an optimal
capital structure. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends
paid to shareholders. Management gives particular regard to conservation of liquidity in its recommendations as
to the declaration of dividends. There were no dividends declared in in the year.
Note 15. Equity – reserves and accumulated losses
Employee equity benefits reserve
(a)
The employee equity benefits reserve records items recognised as expenses on valuation of employee performance
rights and accrual of employee short-term and long-term incentives.
(b) Other share based payments reserve
The other share based payments reserve records funding expenses accrued and are expected to be paid in the
form of shares.
(c) Cash flow hedge reserve
The reserve is used to recognise the effective portion of the gain or loss of cash flow hedge instruments that is
determined to be an effective hedge.
73
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 15. Equity – reserves and accumulated losses (cont.)
Movement in reserves:
At 1 July 2019
Share based payments expense
Transfer from reserve to retained earnings
Transfer from reserve on exercise of options
Issue of shares as a result of exercise of options for
consideration
Gain/(loss) arising on changes in fair value of hedging
instruments entered into for cash flow hedges
Cumulative loss arising on changes in fair value of
hedging instruments reclassified to profit or loss
At 30 June 2020
Employee
equity
benefits
reserve
$
1,476,920
4,764,670
(32,156)
(3,255,476)
-
Other share
based
payments
reserve
$
418,501
49,879
-
-
(38,310)
Cash flow
hedge
reserve
$
-
-
-
-
-
Total
$
1,895,421
4,814,549
(32,156)
(3,255,476)
(38,310)
-
-
-
-
(231,976)
(231,976)
29,134
29,134
2,953,958
430,070
(202,842)
3,181,186
At 1 July 2020
Share based payments expense
Transfer from reserve to retained earnings
Transfer from reserve on exercise of options
Issue of shares as a result of exercise of options for
consideration
Issue of shares for services rendered
Gain/(loss) arising on changes in fair value of hedging
instruments entered into for cash flow hedges
Cumulative loss arising on changes in fair value of
hedging instruments reclassified to profit or loss
At 30 June 2021
2,953,958
1,167,984
(4,040)
(1,835,713)
-
-
-
-
430,070
12,575
-
-
(37,486)
(30,000)
-
(202,842)
-
-
-
-
3,181,186
1,180,559
(4,040)
(1,835,713)
(37,486)
-
172,635
(30,000)
172,635
-
623,313
623,313
2,282,189
375,159
593,106
3,250,454
Accumulated losses:
Opening balance
Total loss after income tax for the year
Transfer from reserve to retained earnings
Total
Note 16. Capital and lease commitments
Finance lease commitments
(a)
There are no finance lease commitments (2020: nil).
Consolidated
2021
$
(57,037,262)
(17,639,323)
4,040
(74,672,545)
2020
$
(33,534,592)
(23,534,826)
32,156
(57,037,262)
(b) Operating lease commitments
Non-cancellable operating leases contracted for but not recognised in the financial statements.
Payable – minimum lease payments:
i)
ii)
iii)
Within one year
One to five years
More than five years
Consolidated
2021
$
-
-
-
-
2020
$
58,129
-
-
58,129
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are
recognised as expenses in the periods in which they are incurred on a straight line basis.
74
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 16. Capital and lease commitments (cont.)
Wisr Finance Pty Ltd had two property leases which expired in September 2020 at which point became month on
month agreements and terminated in December 2020. In December 2020 the Group entered into a property lease
with a 3 year and 1 month term. Due to the adoption of AASB 16, in the prior period, the Group had no outstanding
operating lease commitments due at 30 June 2021.
Note 17. Income tax
Numerical reconciliation of income tax expense to prima facie tax payable
Consolidated
2021
$
2020
$
Loss from continuing operations before income tax expense
Tax benefit at the tax rate of 26% (2020: 27.5%)
(17,639,323)
(4,586,24)
(23,534,826)
(6,472,077)
Tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
-
-
Temporary differences not recognised
Non-recognition of current year tax losses
Income tax expense
2,324,309
2,261,915
-
2,539,136
3,932,941
-
As at 30 June 2021, the entity has unrecognised carried forward tax losses of $54,934,273 (2020: $46,234,600),
the utilisation of which is dependent on the entity satisfying the requirements of the Same Business Test (SBT).
The income tax expense or benefit for the period is the tax payable / refundable on the current period's taxable
income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities, attributable to temporary differences between the tax bases of assets and liabilities and their carrying
amounts in the financial statements, and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply
when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively
enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and
taxable temporary differences to measure the deferred tax asset or liability.
An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability.
No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting
profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and
tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal
of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised
directly in equity.
Wisr Limited and its wholly owned controlled entities have implemented the tax consolidation legislation as of 1
January 2004.
75
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 17. Income tax (cont.)
The head entity, Wisr Limited, and the controlled entities in the tax consolidated group continue to account for
their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax
consolidated group continues to be a standalone taxpayer in its own right.
In addition to its own current and deferred tax amounts, Wisr Limited also recognises the current tax liabilities (or
assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled
entities in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as
amounts receivable from or payable to other entities in the group.
Any difference between the amounts assumed and amounts receivable or payable under the tax funding
agreement are recognised as a contribution to (or distribution from) wholly owned tax consolidated entities.
Note 18. Remuneration of auditors
During the year, the following fees were paid or payable for services provided by the auditor:
BDO Audit Pty Ltd
-
-
-
-
Audit of the financial report – assurance services
Taxation services – non-assurance services
Review of the half-yearly financial report – assurance services
Accounting advice – non-assurance services
Consolidated
2021
$
97,500
2,500
43,699
-
143,699
2020
$
85,000
9,900
34,000
4,000
132,900
The BDO entity performing the audit of the Group transitioned from BDO East Coast Partnership to BDO Audit Pty
Ltd on 25 September 2020. The FY2020 comparatives include amounts received or due and receivable by BDO
East Coast Partnership, BDO Audit Pty Ltd and their respective related entities.
Note 19. Contingent liabilities
There were no material contingent liabilities reportable during the period (2020: nil).
Note 20. Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policies described in Note 1:
Name
Wisr Finance Pty Ltd
Wisr Investment Management Pty Ltd
Wisr Loans Servicing Pty Ltd
Wisr Credit Management Pty Ltd
Wisr Marketplace Limited
Wisr Services Pty Ltd
Wisr Funding Pty Ltd
Wisr Notes 1 Pty Ltd
Wisr Warehouse Trust No. 1
Wisr Freedom Trust 2021-1
Status
Registered 2 May 2006
Registered 20 February 2015
Registered 20 February 2015
Registered 19 March 2015
Registered 16 March 2015
Registered 13 January 2017
Registered 9 April 2018
Registered 31 July 2018
Registered 28 October 2019
Registered 29 March 2021
Country of
incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
% owned
2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
% owned
2020
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
76
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 21. Events after the reporting period
In March 2021, the Group announced execution of a term sheet for an investment in European fintech platform
Arbor. On 5 August 2021, the Group completed its initial investment, consisting of EUR715,358 in exchange for a
12.5% ownership stake.
In addition to the 12.5%, Wisr has options in place to increase its ownership stake to 45% over three years subject
to valuation thresholds and contingent upon certain milestones being achieved.
Arbor is an EU based fintech with a financial wellness platform, utilising a digital wallet to offer savings, investment
and lending features.
Note 22. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Total KMP compensation
Consolidated
2021
$
955,525
68,389
6,874
234,762
1,265,550
2020
$
1,010,119
68,379
5,221
5,067,498
6,151,217
Short-term employee benefits
These amounts include fees and benefits paid to the executive Chair and non-executive directors as well as all
salary, paid leave benefits, fringe benefits and cash bonuses awarded to executive directors and other KMP.
Post-employment benefits
These amounts are the current year’s estimated cost of providing for the Group’s superannuation contributions
made during the year.
Long-term benefits
These amounts represent long service leave benefits accruing during the year.
Share-based payments
These amounts represent the expense related to the participation of KMP in equity-settled benefit schemes as
measured by the fair value of the options, rights and shares granted on grant date.
Note 23. Related party transactions
(a) Parent entity
The legal parent is Wisr Limited.
(b) Subsidiaries
Interest in subsidiaries are set out in Note 20.
(c) Transactions with related parties
As at 30 June 2021, all transactions that have occurred among the subsidiaries within the Group have been
eliminated for consolidation purposes.
During the period, an amount of $100,000 in capital repayment plus $1,745 (2020: $7,192) in interest was paid to
a director related party relating to their capital participation in the Wisr secured note.
There were no other related party transactions.
77
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 24. Parent entity information
(a) Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
Statement of financial position
Total assets
Total liabilities
Shareholders’ equity
Issued capital
Reserves
Accumulated losses
Loss for the year
Total comprehensive loss
2021
$
2020
$
135,597,217
76,815,933
6,760,996
135,678
136,666,162
2,657,348
(10,487,289)
128,836,221
82,815,088
3,384,027
(9,518,861)
76,680,254
(969,627)
(2,913,825)
(969,627)
(2,913,825)
The financial information for the parent entity, Wisr Limited, has been prepared on the same basis as the
consolidated financial statements, except that investments in subsidiaries are accounted for at cost net of
impairment in the parent financial statements.
(b) Contingent liabilities
See Note 19.
(c) Contractual commitments
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June
2020.
Note 25. Cash flow information
Reconciliation of loss after income tax to net cash outflows from operating
activities
Consolidated
2021
$
2020
$
Loss for the year
(17,639,323)
(23,534,826)
Adjustments for non-cash items or items for which the cash flows are investing
or financing cash flows
Depreciation and amortisation
Share-based payments and accruals
Fundraising expenses
Expected credit losses expense / loan asset impairments and write-offs
Right of use asset expenses
Changes in operating assets and liabilities:
(Increase) in loan receivables
(Increase) in trade and other receivables
(Increase)/decrease in other assets
Increase in trade and other payables
Increase in provision for employee benefits
Increase in accrued finance costs
541,922
1,180,559
592,044
7,934,680
102,840
(2,536,175)
(185,308)
(32,189)
1,348,359
330,675
379,320
117,336
6,133,091
94,419
4,097,956
-
(519,999)
(582,497)
61,028
1,070,973
161,478
91,033
Net cash flows used in operating activities
(7,982,596)
(12,810,008)
78
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 26. Earnings per share
Basic earnings per share
Diluted earnings per share
Weighted average number of shares used as the denominator
Weighted average number of shares used as the denominator in calculating
basic earnings per share
Adjustments for calculation of diluted earnings per share
Weighted average number of ordinary shares used in calculating dilutive
earnings per share
2021
Cents
(1.60)
(1.60)
2020
Cents
(2.60)
(2.60)
Number of
shares
Number of
shares
1,105,463,088 904,602,487
-
-
1,105,463,088 904,602,487
The performance rights on issue have not been considered in the diluted earnings per share as their effect is
anti-dilutive.
Basic earnings per share
Basic earnings per share is calculated by dividing the result attributable to equity holders of the Company by the
weighted average number of ordinary shares outstanding during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
Note 27. Segment information
Management has determined that the Group has one operating segment, being the provision of personal loans
to consumers. The internal reporting framework is based on the principal activity as discussed above and is the
most relevant to assist the Board as Chief Operating Decision Maker with making decisions regarding the Group
and its ongoing growth. The assets as presented relate to the operating segment. The Group operates in Australia
only as at 30 June 2021.
Note 28. Dividends
(a) Dividends paid during the year
Ordinary shares
There were no dividends paid during the year (2020: nil).
(b) Franking Credits
2021
$
2020
$
Franking credits available for subsequent reporting periods based on a tax rate
of 26% (2020 – 27.5%)
1,542,955
1,542,955
The above amounts are calculated from the balance of the franking account as at the end of the reporting
period, adjusted for franking credits and debits that will arise from the settlement of liabilities or receivables for
income tax and dividends after the end of the year.
Note 29. Share based payments
The share-based payment expense of $1,180,559 (2020: $6,133,091) consists of:
-
KMP LTIs of $234,762 (2020: $5,067,498) accrued up to 30 June 2021 which were set in FY20 and
relate to FY20, FY21 and FY22.
79
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 29. Share based payments (cont.)
-
-
Staff LTIs $933,222 (2020: $1,015,714) accrued up to 30 June 2020 and relate to FY18 – FY21; and
Recruitment expense of $12,575 (2020: $49,879).
The fair value of the Board/KMP performance rights and staff LTI scheme has been calculated in accordance
with AASB 2 Share-based Payment using a Hoadley Barrier model which included the below inputs.
FY21 Staff LTI scheme:
Assumptions - Grant date 1 July 2020, Volatility 40%, Spot price $0.2000.
Tranche
1
2
Expiry date
31 Jul 22
31 Jul 23
Barrier price
$0.23
$0.23
Fair value
$0.1060
$0.1099
Performance rights
Balance at beginning of year
-
-
-
granted
forfeited
exercised
Balance at end of year
Number of
performance rights
92,717,541
11,645,187
(4,054,051)
(30,001,001)
70,307,676
2021
Exercise
price
Nil
Nil
Nil
Nil
Nil
Number of
performance rights
38,966,725
91,116,364
(13,639,469)
(23,726,079)
92,717,541
2020
Exercise
price
Nil
Nil
Nil
Nil
Nil
The Group provides benefits to employees in the form of share-based payment transactions, whereby employees
render services in exchange for shares or performance rights (equity-settled transactions).
The cost of the transactions with employees is measured by reference to the fair value at the date at which they
are granted. The fair value is determined by using a binomial model. In valuing equity-settled transactions, no
account is taken of any performance conditions, other than conditions linked to the price of the shares of the
Company (market conditions). The cost of equity-settled transactions is recognised as an expense, together with
a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the
date on which the relevant employees become fully entitled to exercise the rights (vesting date).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the number of rights that, in the opinion of
the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information
at balance date. No adjustment is made for the likelihood of market performance conditions being met as the effect
of these conditions is included in the determination of fair value at grant date. Where the terms of an equity-settled
option are modified, at a minimum an expense is recognised as if the terms had not been modified. In addition, an
expense is recognised for any increase in the value of the transaction as a result of the modification, as measured
at the date of the modification.
Note 30. Financial risk management
The business of the Group and the industry in which it operates are subject to risk factors both of a general nature
and risks which are specific to the industry and/or the Group’s business activities.
The potential effect of these risk factors either individually, or in combination, may have an adverse effect on the
future financial and operating performance of the Group, its financial position, its prospects and the value of its
shares.
The following are the key risks that specifically relate to the Group:
80
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 30. Financial risk management (cont.)
(a) Credit risk
As a lending business, the Group is at risk of a larger than expected number of its borrowers failing or becoming
unable to repay their loans, particularly for loans which are held on balance sheet as opposed to being funded by
a third party. While loans are assessed according to a strict Credit Manual and Credit Risk Policy as well as being
targeted at prime retail borrowers (not ‘payday’ lending customers), the loans may be unsecured and so are subject
to the capacity of the individual borrower to repay the loan.
As a lending business, the Group is at risk of a larger than expected number of its borrowers failing or becoming
unable to repay their loans, particularly for loans which are held on balance sheet as opposed to being funded by
a third party. While loans are assessed according to a strict Credit Manual and Credit Risk Policy as well as being
targeted at prime retail borrowers (not ‘payday’ lending customers), the loans may be unsecured and so are subject
to the capacity of the individual borrower to repay the loan.
The Group has assessed COVID-19 affected loan receivables through consideration of both qualitative and
quantitative factors surrounding the customer’s credit risk. The Group also enacted tightened credit policy and
reduced risk tolerance in response to COVID-19.
(b)
Inability to recover defaulted loans
Default is defined by the group as the failure of the borrower to meet required contractual cashflows, this definition
is selected as it aligns with the operational analysis of the loan books. If a borrower does not meet their required
loan payments and the loan goes into default, the Group may not be able to recover the relevant portion of the
value of the loan or the cost of recovery of the loan may be deemed to be greater than the amount potentially
recoverable, even if the borrower owns assets such as a house. In this case the loan may be sold (at a loss) to a
third party or written off as a bad debt. High levels of bad debts could limit profitability and adversely affect future
performance. The Group mitigates this risk by approving loans according to a strict credit criteria. The risk is also
mitigated through the use of third party funders for a proportion of loans.
(c) Fraudulent borrowers
There is a general ongoing risk that borrowers may deliberately fabricate evidence to support loan applications
and they have no intention of paying off their loan. The Group has procedures in place to detect fraudulent
applications and activities, however the risk of fraud cannot be totally removed.
(d) Personal Loans may be unsecured
The Group’s loans may be issued on an unsecured basis. The Group’s reputation and financial position could be
adversely impacted if the Group’s targeted credit performance of its loan book is not met and collections and debt
recovery procedures prove less than effective.
(e) Costs of acquiring loans
The Group’s business model and on-going commercial viability is directly linked to its ability to attract suitable
borrowers and increase the volume of loans funded and managed by the Group. The Group has built its existing
loan volumes using a mix of direct channel marketing (using search engine marketing and media advertising) and
developing relationships with mortgage and finance brokers to introduce loans. The Group has forecasted the
future costs of acquiring loans in the desired volumes however these costs are subject to market forces and cannot
be predicted with certainty.
(f) Ability to source third party funding and sell loans
The Group’s business model and on-going commercial viability is strongly linked to its ability to source sufficient
third-party funding to enable it to sell its loans and raise the funds to lend to potential borrowers.
81
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 30. Financial risk management (cont.)
(f) Ability to source third party funding and sell loans (cont.)
The Group seeks to manage this risk by establishing multiple sources of institutional loan buyers.
(g) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash to ensure the ability to meet financial
obligations as they fall due. The Group manages liquidity risk by maintaining a cash reserve and continuously
monitoring forecast and actual cash flows.
Maturity Analysis – Group
2021
Financial assets
Non-derivatives
Cash and cash equivalents
Loan receivables
Trade and other receivables
Other assets
Derivatives at fair value
Interest rate swaps – cash flow
hedges
Total financial assets
Financial liabilities
Non-derivatives
Trade creditors
Other payables
Borrowings
Total financial liabilities
Within 1 year
$
1 – 5 years
$
Total
$
92,409,558
61,941,741
1,208,633
139,987
-
312,709,638
-
-
92,409,558
374,651,379
1,208,633
139,987
(945,755)
158,513,396
1,236,631
310,187,037
290,876
468,700,433
2,043,859
1,901,473
516,736
4,462,068
-
-
391,955,741
391,955,741
2,043,859
1,901,473
392,472,477
396,417,809
Net financial assets
154,051,328
(81,768,704)
72,282,624
2020
Financial assets
Cash and cash equivalents
Loan receivables
Trade and other receivables
Other assets
Total financial assets
Financial liabilities
Non-derivatives
Trade creditors
Other payables
Secured notes
Warehouse trust funding
Derivatives at fair value
Interest rate swaps – cash flow
hedges
Total financial liabilities
Within 1 year
$
37,973,266
15,242,964
1,023,326
251,175
54,490,731
1,357,320
1,155,532
1,675,000
98,950
148,275
4,435,077
1 – 5 years
$
-
70,754,536
-
-
70,654,536
-
-
-
84,936,442
Total
$
37,973,266
85,997,500
1,023,326
251,175
125,245,267
1,357,320
1,155,532
1,675,000
85,035,392
78,615
85,015,057
226,890
89,450,134
Net financial assets
50,055,654
(14,260,521)
35,795,133
82
WISR LIMITED • ANNUAL REPORT 2021
FINANCIAL REPORT
Notes to the financial statements
For the year ended 30 June 2021
Note 30. Financial risk management (cont.)
(h) Market risk
Price risk
The Group is not exposed to any significant price risk at 30 June 2021.
(i)
Interest rate risk
Interest rate risk is the risk that the Group will experience deterioration in its financial position as interest rates
change over time. The Group is exposed to interest rate risk due to repricing and mismatches in interest rates
between assets and liabilities (i.e. borrowing at floating interest rates and lending at fixed interest rates). The risk
is managed by the Group using interest rate swap contracts to convert the floating rate exposure on the
Warehouse trust borrowings to fixed interest rates. Hedging activities are undertaken in line with the Group's
hedging policy.
Interest rate swap contracts
Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate
interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate
the cash flow exposures on its variable rate borrowings.
The Group designates the interest rate swap contracts as cash flow hedges. As the critical terms of the interest
rate swap contracts and their corresponding hedged items are the same, the Group performs a qualitative
assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of
the corresponding hedged items will systematically change in opposite direction in response to movements in the
underlying interest rates. The main source of hedge ineffectiveness in these hedge relationships is the effect of
the counterparty and the Group’s own credit risk on the fair value of the interest rate swap contracts, which is not
reflected in the fair value of the hedged item attributable to the change in interest rates. Other sources of
ineffectiveness include the re-designation of amended interest rate swap contracts, which have a non-zero fair
value at inception of the hedge relationship.
The following table details various information regarding interest rate swap contracts outstanding at the end of
the reporting period and their related hedged items. Interest rate swap contract assets and liabilities are included
in note 13.
Hedging instruments
Average contracted fixed interest rate
Notional principal (borrowings)
Carrying amount of the hedging instrument (liability)
Change in fair value used for calculating hedge ineffectiveness
Hedged items
Nominal amount of the hedged item
Change in value used for calculating hedge ineffectiveness
Interest rate swaps
2021
2020
0.37050%
336,825,995
0.40900%
60,354,017
264,050
(225,129)
710,674
6,031
336,825,995
797,545
60,354,017
14,532
Balance in cash flow hedge reserve for continuing hedges
Balance in cash flow hedge reserve arising from hedging relationships for which
hedge accounting is no longer applied
Hedge ineffectiveness recognised in profit or loss (within Finance costs)
710,674
(117,568)
6,031
(208,873)
(51,240)
(22,287)
83
WISR LIMITED • ANNUAL REPORT 2021
DIRECTORS’ DECLARATION
Directors’ Declaration
The directors of the Company declare that, in the opinion of the directors:
(a)
the attached financial statements and notes thereto are in accordance with the Corporations Act 2001,
including:
(i)
(ii)
giving a true and fair view of the financial position and performance of the consolidated entity;
and
complying with Australian Accounting Standards, including the interpretations, and the
Corporations Regulations 2001;
(b)
the financial statements and notes thereto also comply with International Financial Reporting Standards,
as disclosed in Note 1;
(c)
the directors have been given the declarations required by s.295A of the Corporations Act 2001; and
(d)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable;
Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.
...............................................................
John Nantes
Director
Sydney
26 August 2021
84
WISR LIMITED • ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WISR LIMITED
85
WISR LIMITED • ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WISR LIMITED
86
WISR LIMITED • ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WISR LIMITED
87
WISR LIMITED • ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WISR LIMITED
88
WISR LIMITED • ANNUAL REPORT 2021
ASX ADDITIONAL INFORMATION
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set
out below. This information is effective as at 29 September 2021.
a. Distribution of shareholders
The distribution of issued capital as at 29 September 2021 were as follows:
Size of Holding
-
1
-
1,001
5,001 -
10,001 -
100,001
-
Total
1,000
5,000
10,000
100,000
and over
Number of
shareholders
Number of ordinary
shares
Percentage of issued capital
(%)
189
1,553
1,208
3,428
1,044
7,422
41,444
5,104,729
9,701,258
132,572,583
1,208,784,715
1,356,204,729
0.00
0.38
0.71
9.78
89.13
100.00
There were 311 shareholders with unmarketable parcels totalling 242,834 shares based on the share price as at
close of business on 29 September 2021.
b. Distribution of performance rights holders
The distribution of unquoted Performance Rights on issue as at 29 September 2021 were as follows:
Size of holding
Number of holders
Number of unquoted rights
1
1,001
5,001
10,001
100,001
Total
1,000
-
5,000
-
10,000
-
100,000
-
- and over
c. Distribution of options
-
-
1
25
38
64
-
-
5,063
1,141,888
37,705,644
38,852,595
The distribution of unquoted Options on issue as at 29 September 2021 were as follows:
Size of holding
1
1,001
5,001
10,001
100,001
Total
-
-
-
-
-
1,000
5,000
10,000
100,000
and over
Number of holders
Number of unquoted options
-
-
-
-
5
5
-
-
-
-
9,731,948
9,731,948
89
WISR LIMITED • ANNUAL REPORT 2021
ASX ADDITIONAL INFORMATION
d. Substantial shareholders
The names of substantial shareholders listed in the Company’s register as at 29 September 2021 were as follows:
Shareholder
ADCOCK PRIVATE EQUITY PTY LTD
ADCOCK GROUP SUPER PTY LTD
MR BROOK ANTHONY ADCOCK
CS THIRD NOMINEES PTY LIMITED
ALCEON GROUP PTY LTD
Number of fully
paid ordinary
shares
Percentage
of issued
capital (%)
159,847,138
40,877,864
519,631
201,244,633
105,179,350
54,054,054
159,233,404
11.79
3.01
0.04
14.84
7.76
3.99
11.75
Total
360,478,037
26.58
e. Twenty largest shareholders of quoted equity securities
The twenty largest shareholders of quoted equity securities were as follows:
Shareholder
ADCOCK PRIVATE EQUITY PTY LTD
CS THIRD NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ANTHONY NANTES
ALCEON GROUP PTY LTD
ADCOCK GROUP SUPER PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
NETWEALTH INVESTMENTS LIMITED
ANDREW GOODWIN
BNP PARIBAS NOMS PTY LTD
LUAGA PTY LTD
MACQUARIE BANK LIMITED
DE NANTES INVESTMENT CO PTY LTD
MOSLOF SERVICES PTY LTD
CITICORP NOMINEES PTY LIMITED
EQUITAS NOMINEES PTY LIMITED
UBS NOMINEES PTY LTD
EQUITAS NOMINEES PTY LIMITED
MR CHRISTOPHER MICHAEL WHITEHEAD
Total
f. Restricted securities
Number of fully
paid ordinary
shares
Percentage
of issued
capital (%)
159,847,138
105,179,350
82,453,547
57,268,736
54,054,054
40,877,864
37,663,087
35,741,643
30,827,748
29,442,237
24,833,813
23,467,952
18,998,019
13,201,370
12,775,000
11,419,954
11,223,007
8,950,166
7,403,725
6,990,000
11.79
7.76
6.08
4.22
3.99
3.01
2.78
2.64
2.27
2.17
1.83
1.73
1.40
0.97
0.94
0.84
0.83
0.66
0.55
0.52
772,618,410
56.98
79,120,359 ordinary shares are currently subject to voluntary escrow pending Company approval.
g. Unquoted equity securities
The Company had the following unquoted securities on issue as at 29 September 2021:
90
WISR LIMITED • ANNUAL REPORT 2021
ASX ADDITIONAL INFORMATION
Unquoted Options
The Company had 5 holders of options with a total of 9,731,948 unquoted options on issue as at 29 September
2021. 2,345,585 options are held by 255 Finance Investments Pty Ltd and 2,316,676 options are held by Teragoal
Pty Ltd.
Performance Rights
The Company had 64 holders of performance rights issued as part of an employee incentive scheme.
h.
Voting rights
Ordinary Shares
In accordance with the Constitution each member present at a meeting whether in person, or by proxy, or by power
of attorney, or in a duly authorised representative in the case of a corporate member, shall have one vote on a show
of hands, and one vote for each fully paid ordinary share, on a poll.
Performance Rights and Options
Holders of Performance Rights and Options have no voting rights.
i.
On-market buy-backs
There is no current on-market buy back in relation to the Company’s securities.
91
WISR LIMITED • ANNUAL REPORT 2021
CORPORATE DIRECTORY
DIRECTORS
John Nantes (Executive Chairman)
Craig Swanger
Chris Whitehead
Matt Brown (appointed 13 September 2021)
COMPANY SECRETARY
Vanessa Chidrawi
May Ho
REGISTERED OFFICE
Level 4,
55 Harrington Street,
The Rocks, New South Wales,
Australia
Telephone: (02) 8379 4008
Facsimile: (02) 8076 3341
SHARE REGISTER
Computershare Investor Services Pty Limited
452 Johnston Street
Abbotsford, Victoria
Telephone: (03) 9415 5000
AUDITOR
BDO Audit Pty Ltd
Level 11, 1 Margaret Street
Sydney, New South Wales
STOCK EXCHANGE LISTING
Shares are listed on the Australian Stock Exchange (ASX: WZR)
DOMICILE
Publicly listed company incorporated in Australia
92
ABN 80 004 661 205
Level 4, 55 Harrington St
The Rocks NSW 2000
+61 2 8379 4008
wisr.com.au
WISR LIMITED • ANNUAL REPORT 2021