Announcement PDF ASX RELEASE Plenti Group Limited (ASX:PLT) Authorised for release by the Board of Plenti Group Limited For more information please contact: Daniel Foggo, CEO, shareholders@plenti.com.au Miles Drury, CFO, shareholders@plenti.com.au FY23 Results Presentation Year to 31 March 2023 Who are we Plenti is a technology-led lender We are on a mission • We are Australia’s largest fintech consumer lender Purpose • We are Cash NPAT profitable To bring our customers’ big ideas to life • We deliver market leading customer experiences via our proprietary technology platform Vision • We’re rapidly taking market share by setting new standards in automotive, renewable energy and personal finance Mission Fairer, faster loans through smart technology To build Australia’s best lender • We fund prime borrowers and have an exceptional 8-year credit track record • We have deep and diversified funding, including low-cost and flexible retail investor funding • We’re founder-led and have a long-term focus 2 Highlights Operational Performance Financial Results Priorities and Outlook FY23 highlights Another successful year operationally and financially Key highlights Originations Loan portfolio Revenue Cash NPAT +3% yoy +36% yoy +62% yoy $4.0m improvement 90+ arrears Retail platform investment markets simplified, and ‘Notes Market’ launched $300m personal and green loan ABS completed, with ‘greenium’ Innovative GreenConnect renewable energy platform launched $1.1bn 42 bps up 16bps yoy $1.8bn December 2022 $143m February 2023 $4.5m March 2023 Growth Our loan portfolio continued to grow strongly Loan portfolio ($bn) 1.8 1.6 Loan portfolio YOY growth 1.4 36% 1.2 Loan portfolio 3-year CAGR 1.0 72% Cumulative lending since launch $3.5bn 72% 3-year CAGR 0.8 0.6 0.4 0.2 0.0 FY18 FY19 FY20 FY21 FY22 FY23 5 Profitability Our strong revenue growth drove robust Cash NPAT growth in FY23, despite a substantial increase in funding costs Revenue ($m) Cash NPAT ($m) 140 10 120 5 51% 3-year CAGR 100 0 80 60 (5) 40 Technology investment fully expensed ($10.4m in FY23) (10) 20 (15) 0 FY18 FY19 FY20 FY21 FY22 FY23 Note: Cash NPAT represents NPAT plus movement in provision for expected credit losses, share-based payments, depreciation & amortisation less income tax benefit on hedge gain. Expensed technology investment and costs were $10.4m in FY23, up from $7.7m in FY22 FY20 FY21 FY22 FY23 6 Short-term objectives We delivered on our 2H23 objectives Objectives for 2H23 Achievements in 2H23 Reach $1.75bn loan portfolio by 31 March 2023 Achieved – loan portfolio $1.77 billion at 31 March 2023 Achieve robust Cash NPAT growth in 2H23 Achieved – 125% increase in Cash NPAT over 1H23 Drive cost-to-income ratio to below 35% in 2H23 Achieved – 31.4% cost-to-income in 2H23 Growth Profitability Efficiency Note: The objectives shown for 2H23 were set out in the 1H23 results presentation dated 16 November 2022 7 Competitive strengths Our competitive strengths continued to underpin our overall performance People Proprietary technology Customer reach Partnership capabilities Credit and risk capabilities Retail investor platform • Entrepreneurial, founder-led team with long term commitment • Significant breadth and depth of expertise • Modern, end-to-end platform delivers speed, flexibility and efficiency • Built and maintained in-house, allowing rapid improvement • Broad product suite, for borrowers and investors • Distributed across digital, broker, manufacturer and installer channels • Technology makes it easier and faster for partners to finance clients • Market leading integration capabilities • Prime lender with exceptional credit track record • Market-leading credit decisioning and pricing capabilities • Flexible funding, facilitating innovation , low capital requirement • Adds depth and resilience to funding mix 8 Highlights Operational Performance Financial Results Priorities and Outlook Automotive finance We continued to build out our automotive capabilities and distribution FY23 highlights • Drove NIM recovery following funding cost increases Automotive loan book ($m) Automotive lending opportunity 1,000 $35bn+ • Grew commercial loan originations 211% – Stronger credit performance – 27% of total auto originations, from 8% in FY22 800 • Increased electric vehicle (EV) lending 140% – Supported by deepened integration with EV manufacturer and new EV partnerships 2-3% estimated Plenti market penetration 130% 3-year CAGR Plenti customer segments - Consumer and commercial borrowers - New and used vehicles - Cars, caravans, motorbikes, leisure goods 600 – 12% of total auto originations, from 5% in FY22 Plenti existing distribution channels - Car/asset and mortgage broker referral - Manufacturer referral - Dealer/online car sale businesses - Digital direct-to-consumer • Dealer point-of-sale referral channel launched • Completed $437m automotive ABS transaction 400 Selected FY23 statistics 211% growth in commercial auto lending 49% lending for new vehicles annual lending 200 Plenti strengths - Customer experience and speed - Partner portal technology - Clarity and consistency of credit policy 0 FY20 FY21 FY22 FY23 Note: Automotive annual lending is a management estimate, including consumer and commercial lending segments (Australian Bureau of Statistics no longer provides all relevant market size data) 10 Renewable energy finance We accelerated our renewable finance growth and entered significant strategic partnerships FY23 highlights • Strong growth in loan book Renewable energy loan book ($m) Renewables finance opportunity 200 310k • Launched innovative GreenConnect platform – Brings together energy retailers, manufacturers, and installers with our finance – Makes shift to clean energy easier and more affordable for Australian households 150 ~10% estimated finance market penetration 54% 3 -year CAGR Plenti customer segments - Residential borrowers - Solar, battery and inverter systems • Completed delivery of government subsidy and loan programs • Further expanded referral partner network and won key accounts based on partner experience and service levels Selected FY23 statistics 11,357 systems funded 12% originations with batteries solar installations annually 100 50 Plenti distribution channels - Equipment retailers and installers - Energy retailers - Product manufacturers - Government subsidy programs 0 Plenti strengths - Integration capabilities - Ability to offer bundled solutions - Government program track record FY20 FY21 FY22 FY23 Note: Number of installations from Clean Energy Council, Clean Energy Australia Report 2022 . There were 310,352 solar installations in 2022, down from 389,577 solar installations in 2021, and 370,156 in 2020. Renewable energy market size and market penetration based on Plenti’s estimate of manufacturer and installer-led point-of-sale solar, inverter and home battery finance provided to consumers 11 Personal lending We continued to attract customers and partners to our leading digital personal loan offering in a fragmented market FY23 highlights • Substantial uplift in direct-to-consumer resourcing and team capabilities – 51% direct-to-consumer lending growth halfon-half Personal loan book ($m) 500 – Materially reduced average cost of customer acquisition – Increased repeat customer lending Personal lending market opportunity 600 $12bn+ 4% estimated market penetration 33% 3-year CAGR Plenti key customer segments - Unsecured automotive - Home improvement - Debt consolidation - Significant events & purchases 400 • Invested in APIs to facilitate deeper integrations, increasing conversion / reducing costs • Credit decisioning and underwriting technology enhancements supported higher automation and improved borrower conversion metrics 300 Plenti distribution channels - ~30 digital channels - ~7,000 finance brokers - Bank referral partnerships - Corporate referral agreements 200 Selected FY23 statistics 51% second half growth in direct lending >800k customers in ecosystem annual lending 100 0 FY20 FY21 FY22 FY23 Plenti strengths - Customer experience - Marketing funnel efficiency - Broker channel relationships Note: Annual personal loans market ending calculated from ABS 5601.0 Table 27 fixed term loans LTM to March 2023, excluding refinancing and purchase of road vehicles. Estimated penetration is based on Plenti’s share of estimated annual market loan originations. Customers in ecosystem represents borrower or investor customer profiles, including current borrowers or investors. 12 Technology advancements Our technology advancements allow us to continually raise the bar for lending in Australia GreenConnect platform build & launch 1. Growth 2. Impact Partner API integration capabilities 1. Growth 2. Efficiency Extended EV partner integration 1. Growth 2. Efficiency Loan application enhancements 1. Growth 2. Efficiency Increased decisioning automation 1. Growth 2. Efficiency 3. Credit performance New core platform ledger 1. Efficiency 2. Agility 3. Scalability 13 Operating leverage We continued to demonstrate the benefits of our scale and our technology-led efficiency Cost-to-income Cost-to-loan originations 100% 75% Average loan portfolio per FTE ($m) 10% 10 8% 8 6% 6 4% 4 2% 2 50% 25% 0% 0% FY19 FY20 FY21 FY22 FY23 • Cost-to-income of 31.4% 2H23 beat target of 35% 0 FY19 FY20 FY21 FY22 FY23 • Higher costs in FY23 to serve larger loan portfolio and set up for future scale FY19 FY20 FY21 FY22 FY23 • Operating efficiency evident as loan portfolio grows Note: Costs in cost-to-income and cost-to-loan origination metrics represent sales and marketing, product development and G&A. Average loan portfolio per FTE represents average loan portfolio during the year divided by the average number of employees during the year 14 Credit performance We continued to demonstrate our differentiated credit performance Average customer credit score 90+ days arrears Net loss rate – quarter annualised 850 1.0% 2.5% 800 0.8% 2.0% 750 0.6% 1.5% 700 0.4% 1.0% 650 0.2% 0.5% 600 0.0% 0.0% • Very high weighted average credit scores have been maintained • 90+ day arrears remain within historical band • Net-loss rate has been positively impacted by portfolio shift to auto and renewables Note: Plenti 90+ days arrears calculated as total value of loans over 90 days in arrears but not yet written off divided by loan portfolio value 15 Highlights Operational Performance Financial Results Priorities and Outlook Financial highlights We grew Cash NPAT by $4.0m to $4.5m through loan portfolio growth, effective margin strategy and cost management Loan portfolio • 67% increase in average portfolio on pcp to $1.55bn Revenue • 62% revenue growth to $143.5m Cash NPAT • Cash NPAT of $4.5m despite funding cost headwinds – a $4.0m improvement on pcp Margins • Successfully restored NIM to maintain stable portfolio average margin in 2H23 Costs • Demonstrated economies of scale – cost-to-income ratio reduced to 34% from 48% in pcp Cash flow • Operating cash flow positive – $20.6m reported cash flow, overall cash neutral pre funding portfolio growth ABS issuance • Completed two ABS transactions – $437m auto ABS in June and $300m PL & Green ABS in February Warehouses • Ongoing dynamic warehouse management with multiple extensions completed – $234m capacity at 31 March Corporate funding • Effective capital management – flexible corporate facility, new settlement facility, recycling of ABS note capital Growth Profitability Funding 17 Margins We successfully increased borrower rates to restore net interest margins Effective yield (%) Commentary • Net interest margin (NIM) for FY23 was 5.2%, with 1H23 and 2H23 at 5.3% and 5.2% respectively 8.9% 1H23 portfolio 9.5% 2H23 portfolio 9.2% FY23 portfolio 12.0% Mar/Apr new originations – Down on FY22 NIM of 6.0%, primarily due to margin compression from rapid increase in market funding rates in CY22 and lag in offsetting borrower rate increases – NIM on new originations was most negatively impacted in 1H23, with progressive improvements as Plenti prioritised increasing rates throughout the year • NIM on new loans in 2H23 exceeded portfolio average, but some offsets, primarily repricing of note margins at warehouse extensions, resulted in stable loan portfolio NIM Funding costs (%) • Exit rate NIM on new originations (March/April average) increased to 5.8% although portfolio NIM is expected to remain broadly stable as facility repricing will counteract new loan uplift 6.1% 3.5% 4.3% 3.9% 1H23 portfolio 2H23 portfolio FY23 portfolio Mar/Apr new originations Net interest margin 5.3% 5.2% 5.2% 5.8% Transaction costs 1.2% 1.2% 1.2% 1.1% • Transaction costs expressed as a yield were flat through the period at 1.2% and are marginally lower at 1.1% on current originations 18 Note: Effective yield, net interest margin and transaction costs calculated as % of average loan portfolio in period. Funding costs calculated as % of average funding debt. Credit We delivered strong credit outcomes in FY23 although, as expected, credit losses have adjusted upwards from the lows of recent years Realised loan impairment expense (%) Commentary • Credit losses remained at relatively low levels in FY23, reflecting the credit strength of Plenti’s portfolio and benign consumer credit conditions 0.7% 0.6% 1H23 portfolio 0.9% 0.7% 2H23 portfolio FY23 portfolio Mar/Apr portfolio Expected credit loss provision ($m) 5.2 1.9 34.3 20.1 % of loan book 1.54% Portfolio growth Provision rate Macro overlay • Started to see losses move towards historical levels in 4Q23 across the portfolio – Reported result benefits from debt sale completed in Q4 which contributed to loss recovery rate in period – March/April average net loss rate of 0.9% is representative of current portfolio performance 7.2 31-Mar-22 • As previously highlighted, losses have been expected to increase as pandemic era effects recede (Government stimulus, very low interest rates, high savings rates etc.) 31-Mar-23 • ECL provision at 31 March 2023 was $34.3m or 1.94% of loan portfolio with bridge on left setting out factors driving change in provision from prior yearend – Largest driver of increase has been growth in the portfolio, but provision rate by loan product has also increased largely due to higher arrears rates – Provision also increased by prudent increase in macroeconomic overlay adjustment 1.94% 19 Profit & loss We grew revenue strongly and controlled costs leading to a material increase in Cash NPAT to $4.5m • Full year Cash NPAT result of $4.5m, an increase of $4.0m on prior year $m, year ending 31 Mar FY22 FY23 % change Interest revenue 87.3 142.1 63% Other income 1.2 1.4 12% Total revenue pre transaction costs 88.5 143.5 62% Transaction costs (10.9) (18.8) 73% Net income 77.6 124.7 61% Loan funding costs (32.0) (61.7) 93% Expense passed to unitholders (0.1) (0.1) 2% Customer loan impairment expense (12.3) (24.7) 101% Realised loan impairment expense (5.0) (10.6) 109% ECL provision expense (7.2) (14.2) 96% Sales and marketing expense (13.8) (12.3) (10)% Product development expense (7.7) (10.4) 35% General and administration expense (21.4) (26.3) 23% Operations expense (10.1) (12.1) 19% $m, year ending 31 Mar Other overhead expense (11.2) (14.2) 27% Statutory NPAT • Growth in Cash NPAT reflected 62% growth in revenue with operating cost growth of only 14% overcoming headwinds from increased funding costs • Transaction costs grew broadly in line with portfolio as product mix stabilised • Realised loan impairment expense increased off very low base in FY22, but credit performance remained strong with net loss rate of 0.68% • Disciplined approach to operating costs in year while continuing to invest in key technology capabilities to support differentiation and future growth • Corporate funding costs reflect debt facility established in March 2022 to provide capital to grow the loan portfolio • Income tax benefit relates to hedging gains on balance sheet and will unwind over time, so backed out of Cash NPAT • All technology investment expensed in year. FY23 Cash NPAT indicatively ~$9.4m if capitalisation approach adopted in line with numerous peers FY22 FY23 (6.3) (13.6) 1 7.4 14.3 Corporate funding costs (0.1) (2.3) >100% Add: ECL provision expense Depreciation & amortisation (1.0) (1.5) 42% Add: Share-based payments 2.8 3.4 Income tax benefit / expense 4.4 1.1 (76)% Add: Depreciation & amortisation 1.0 1.5 NPAT (6.3) (13.6) 117% Add: Income tax expense on hedge gain (4.4) (1.1) Cash NPAT 0.5 4.5 804% Cash NPAT 0.5 4.5 1. Difference between ECL provision Profit and loss statement reflects component of ECL provision included in Expense passed to unitholders line which is also adjusted for in Cash NPAT 20 Funding We continued to expand and deepen our funding Loan portfolio funding ($m)1 Loan portfolio and corporate funding • Plenti now established as recognised programmatic issuer in debt capital markets – Two ABS transactions undertaken in the year for a total of ~$740m 234 Warehouse headroom – Transactions well supported by existing and new investors, with increasing participation of large offshore investors in the program – Total ABS issuance for Plenti now over $1.3bn since launch of program in 2021 724 Warehouses - drawn • Continue to effectively manage warehouse facilities with good funder support – Have extended two of three warehouse facilities in last 6 months – Continue to dynamically manage facility limits to balance capacity and cost – period end headroom of $234m and added $125m in capacity to one facility post period end 916 ABS structures • Equity investment in ABS/warehouses of $41.5m at 31 March, of which $7.0m held against loans on the Plenti Lending Platform – Released $8.5m of capital against ABS holdings in 2H23, with ability to continue to recycle going forward to support investment in growth of funding facilities • $27.8m reported corporate cash position at 31 March 20232 220 31 Mar 2023 Marketplace lending platforms • Corporate debt facility drawn to $22.5m – no further drawing in 2H23 • Loan settlement facility established in FY23 reduces working capital requirements 1. Warehouse and ABS funding values exclude $41.5m of notes held by Plenti which eliminate on consolidation 2. Reported corporate cash includes $10.0m (Mar-22: $8.1m) in customer collections accounts which are received in Plenti corporate accounts and then regularly swept to relevant funding vehicles. These funds are not available for general corporate purposes 21 Highlights Operational Performance Financial Results Priorities and Outlook Priorities We have set ambitious but achievable priorities for FY24 FY24 full year priorities Growth Profitability • Drive solid growth in loan originations and loan portfolio • Grow revenue to over $200m • Deliver robust full year Cash NPAT growth, skewed towards 2H24 • Reduce cost-to-income ratio to <30% Efficiency • Remain on target to deliver $25m in efficiencies as loan portfolio scales towards $3bn 23 Outlook half-on-half We expect to achieve continued growth in loan portfolio and profitability, with Cash NPAT generation skewed towards 2H24 First half (1H24) expectations • Growth in loan originations and loan portfolio • Positive Cash NPAT, although impacted by: ˗ Higher direct-to-consumer marketing investment ˗ Higher credit losses • Technology resources focused on efficiency initiatives Second half (2H24) expectations • Continued growth in loan originations and loan portfolio • Robust Cash NPAT growth YOY and HOH, supported by: ˗ Greater scale and operating leverage ˗ Broadly consistent margins • Technology resources focused on growth initiatives 24 Our scale cost-benefit ambition Our ambition is to achieve a $25m cost-benefit as we double our loan portfolio to $3bn Estimated cost base as loan portfolio doubles ($m) Cost benefits of scale • Technology-led model allows loan portfolio growth to exceed cost base growth • $25m+ cost-benefit ambition as portfolio doubles to $3bn - Cost base growth <47% of loan portfolio growth • Ambition is supported by: - Historical cost base growth being consistently materially below 47% of loan portfolio growth - Material investment in talent and operating capabilities required for a larger business has already been made Note: Cost base includes Sales & marketing, Product development and General & administrative expense as presented in Plenti’s Statement of Profit or Loss on a statutory basis. This includes the value of share-based payments which are not included in the calculation of Cash NPAT, but excludes funding costs and credit losses 25 Appendices Cash flow We moved to delivering positive operating cashflow in FY23 $m FY22 FY23 Operating cash flow – Includes $2.3m Provision Fund cash inflow Interest income received 97.4 153.0 Other income received 1.2 1.4 Interest and other finance costs paid (32.7) (60.7) Payments to suppliers and employees (69.9) (73.1) Net operating cash flow (3.9) 20.6 (684.7) (474.1) Net proceeds of borrowings 743.7 434.9 Proceeds from corporate debt 18.0 4.5 Other (1.8) (2.1) Net investing and financing cash flow 75.2 (36.8) Net change in cash and cash equivalents 71.2 (16.2) Investing and financing cash flow Net increase in loans to customers • Statutory operating cashflow for FY23 of $20.6m, compared with an outflow of $3.9m in FY22 – Includes net $9.8m of merchant service fees on BNPL renewable energy loans which are netted off against warehouse borrowings and hence are not considered true “cash flow” – $8.9m of realised credit losses recognised in investing cash flow as offset against loan capital balance • Underlying corporate cash flow pre-financing activities broadly neutral (2022: outflow of $15.8m) • Key financing activities bridging neutral “underlying” cash flow position to change in corporate cash on balance sheet are – Net $15.2m invested in supporting securitised funding structures ($24.1m invested net of $8.9m capital released, primarily from recycling of ABS notes held by the Group) – $4.5m of corporate debt facility drawdown in 1H23 27 Balance sheet We continue to effectively expand our funding base and recycle capital to support growth $m 31-Mar-22 31-Mar-23 159.2 143.0 Customer loans 1,269.4 1,714.8 Derivative assets 14.7 20.8 Other assets 26.0 31.4 Total assets 1,469.2 1,910.1 • Corporate cash position at 31 March 2023 of $27.8m – $10.0m relates to loan collection accounts which are not available for corporate activities (31 March 2022: $8.1m) Assets Cash and cash equivalents • Total underlying corporate liquidity and Provision Fund cash balance of $31.5m • Customers loan asset of $1,715m reflects $1,766m loan portfolio less $34.3m ECL provision and $17.1m in deferred upfront fees • Derivative assets increased $6.2m due to higher rates increasing the value of historic interest rate hedging positions Liabilities Trade payables 5.5 5.0 1,373.6 1,808.1 18.0 22.5 - 2.6 19.5 26.9 1,416.5 1,865.0 52.7 45.0 31-Mar-22 31-Mar-23 Corporate cash 40.0 27.8 Provision Fund cash 14.3 13.7 Platform / warehouse funding cash 104.9 101.5 Total cash and cash equivalents 159.2 143.0 Borrowings – loan funding Borrowing – corporate funding Derivative liabilities Other Total liabilities Net assets $m • Borrowings of $1,808m comprises $916m of ABS funding, $724m of warehouse funding and $220m via lending platforms – Equity investment in securitised structures of $41.5m (not represented on balance sheet as eliminates on consolidation)1 • Corporate debt facility drawn to $22.5m in March 2023, with facility size able to increase as the loan book grows, providing corporate funding flexibly – not fully drawn at 31 Mar 2023 1. Of the notes held, $7.0m are held as security against loans funded in the Notes Market of the Plenti Lending Platform – and hence are not freely available to the Group 28 Half-on-half summary P&L $m, 6 month periods 1H211 2H21 1H22 2H22 1H23 2H23 1H22 / 2H21 2H22 / 1H22 1H23 / 2H22 2H23 / 1H23 Interest revenue 23.9 26.8 36.6 50.6 63.2 78.9 37% 38% 25% 25% Other income 2.1 0.4 0.6 0.6 0.6 0.8 65% 10% (7)% 31% Total revenue pre transaction costs 26.0 27.2 37.2 51.3 63.8 79.7 37% 38% 24% 25% Transaction costs (1.0) (1.8) (3.2) (7.7) (8.7) (10.0) 83% 139% 14% 15% Net income 25.0 25.4 34.0 43.6 55.0 69.7 34% 28% 26% 27% Loan funding costs (12.3) (12.7) (14.5) (17.5) (25.7) (36.1) 14% 21% 47% 40% Expense passed to unitholders (0.1) 0.1 (0.2) 0.0 (0.0) (0.1) nm nm nm >100% Customer loan impairment expense (3.0) (4.3) (6.0) (6.3) (8.7) (16.1) 40% 5% 38% 85% Realised loan impairment expense (2.2) (2.2) (2.5) (2.5) (4.5) (6.1) 17% (1)% 79% 35% ECL provision expense (0.9) (2.1) (3.5) (3.8) (4.2) (10.0) 64% 9% 11% 139% Sales and marketing expense (4.0) (5.6) (7.3) (6.4) (6.0) (6.3) 30% (12)% (7)% 5% Product development expense (2.5) (3.0) (3.3) (4.4) (5.1) (5.3) 9% 33% 15% 5% General and administration expense (6.1) (7.9) (9.7) (11.6) (12.9) (13.4) 23% 19% 11% 3% Operations expense (2.2) (3.7) (4.6) (5.6) (6.0) (6.2) 23% 21% 7% 4% Other overhead expense (3.9) (4.2) (5.2) (6.1) (6.9) (7.2) 24% 18% 14% 3% Corporate funding cost (0.0) (0.0) (0.0) (0.1) (0.9) (1.3) 19% >100% >100% 41% Depreciation & amortisation (0.4) (0.4) (0.5) (0.6) (0.7) (0.8) 25% 26% 22% 9% Income tax benefit / expense - - - 4.4 7.6 (6.5) nm nm 72% (186)% (3.4) (8.5) (7.5) 1.2 2.6 (16.2) (12)% (115)% 127% (725)% (1.5) (5.1) (2.2) 2.7 1.4 3.1 (56)% nm (49)% 125% NPAT 2 Cash NPAT 29 1. Pro forma adjustments apply to 1H21 results – refer to FY21 annual results presentation for reconciliation between statutory and pro forma results Key metrics $m H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 FY21 FY22 FY23 Loan originations ($m) 167.0 303.3 472.8 629.5 558.2 572.8 470.3 1,102.3 1,131.0 Average term of new originations (months) 62.5 61.8 64.8 65.0 64.6 64.2 62.1 64.9 64.4 Closing loan portfolio ($m) 435.1 614.6 915.1 1,299.7 1,547.6 1,766.2 614.6 1,299.7 1,766.2 Average loan portfolio ($m) 393.5 511.0 754.8 1,100.9 1,427.0 1,663.3 452.2 927.9 1545.2 Average borrowings ($m) 389.1 490.7 724.2 1,072.8 1,472.1 1,690.0 438.0 898.5 1,581.0 Average interest rate (% of average gross loan portfolio) 12.1% 10.5% 9.7% 9.2% 8.9% 9.5% 11.2% 9.4% 9.2% Average funding cost rate (% of average borrowings) 6.3% 5.2% 4.0% 3.3% 3.5% 4.3% 5.7% 3.6% 3.9% 1.1% 0.8% 0.7% 0.5% 0.6% 0.7% 1.0% 0.5% 0.7% 4.9% 4.7% 4.7% 4.5% 4.0% 3.8% 5.2% 5.7% 4.3% 4.8% 4.0% 3.8% 3.7% 3.6% 3.5% 4.4% 3.7% 3.6% 1 Net charge off (%of average closing loan portfolio) 2 Loan portfolio amortisation rate (% of closing loan portfolio,) monthly 3 Loan portfolio amortisation rate (% of average loan portfolio,) monthly Notes: 1. Net charge-off rate calculated as actual loan receivables written off in the period net of loss recoveries divided by average loan portfolio value 2. Calculated as change in closing loan portfolio less new loan originations for the period as a % of the previous period closing loan portfolio 3. Calculated as change in closing loan portfolio less new loan originations for the period as a % of the period average loan portfolio 30 Lending vertical metrics $m H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 FY21 FY22 FY23 167.0 303.3 472.8 629.5 558.2 572.8 470.3 1,102.3 1,131.0 Automotive 81.1 149.7 257.7 381.6 302.3 269.3 230.8 639.3 571.7 Renewable energy 28.5 28.7 46.3 51.9 52.6 69.4 57.2 98.3 122.0 Personal 57.5 125.0 168.8 195.9 203.2 234.1 182.5 364.7 437.3 Closing loan portfolio ($m) 435.1 614.6 915.1 1,299.7 1,547.6 1,766.2 614.6 1,299.7 1,766.2 Automotive 146.0 264.4 464.4 744.8 898.8 997.6 264.4 744.8 997.6 Renewable energy 71.2 86.1 113.8 141.9 164.8 201.0 86.1 141.9 201.0 Personal 217.8 264.1 336.9 413.1 484.0 567.7 264.1 413.1 567.7 Loan originations ($m) 31 NPAT to Cash NPAT reconciliation $m 1H211 2H21 1H22 2H22 1H23 2H23 FY21 FY22 FY23 NPAT (3.4) (8.5) (7.5) 1.2 2.6 (16.2) (11.9) (6.3) (13.6) Add: ECL provision expense2 1.0 2.2 3.6 3.8 4.2 10.1 3.1 7.4 14.3 Add: Share-based payments 0.6 0.9 1.2 1.6 1.4 1.9 1.4 2.8 3.4 Add: Depreciation & amortisation 0.4 0.4 0.5 0.6 0.7 0.8 0.7 1.0 1.5 Add: Income tax expense on hedge gain 0.0 0.0 0.0 (4.4) (7.6) 6.5 0.0 (4.4) (1.1) Cash NPAT (1.5) (5.1) (2.2) 2.7 1.4 3.1 (6.6) 0.5 4.5 Accounting treatment of technology investment 100% of product and technology expense recognised in the Profit or loss statement each financial year. To provide comparability of Cash NPAT to peers who capitalise technology spend, the below table shows indicatively what FY23 Cash NPAT would have been on this basis. It is noted that amortisation in the Profit or Loss statement would increase over time with capitalisation of spend. Technology investment capitalisation 4.9 Cash NPAT post technology capitalisation adjustment 9.4 1. Pro forma adjustments apply to 1H21 results – refer to FY21 annual results presentation for reconciliation between statutory and pro forma results 2. ECL provision expe