CUSCAL LIMITED — Interim / Quarterly Report 2025

Feb 25, 2025

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H1 FY25 Results Moving Payments Forward. Together.

Craig Kennedy Managing Director

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Sean O’Donoghue Chief Financial Officer

Cuscal Limited. ASX: CCL

26 February 2025

IMPORTANT NOTICE

This presentation has been prepared by Cuscal Limited (ACN 087 822 455) ( Cuscal ). This presentation contains summary information about Cuscal and its subsidiaries as at the date of this presentation. The information in this presentation does not purport to be complete and is not intended to be used as the basis for making an investment decision. The information in this presentation should be read in conjunction with Cuscal’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. This presentation is not and does not form part of any offer, invitation, or recommendation in respect of securities. Any decision to buy or sell Cuscal securities or other products should be made only after seeking appropriate advice. Reliance should not be placed on information or opinions contained in this presentation and, subject only to any legal obligation to do so, Cuscal does not accept any obligation to correct or update them. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any investor.

This presentation contains certain forward-looking statements, which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “anticipate”, “estimate”, “continue”, “assume”, “forecast”, “target” or the negative thereof or comparable terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Cuscal’s actual results, performance, achievements, and/or industry results to be materially different from any future results, performance, achievements and/or industry results, expressed or implied by such forward-looking statements. Many of these risks, uncertainties and other factors are outside the control of Cuscal.

Past performance of Cuscal cannot be relied on as an indicator of, and provides no guidance as to, the future performance of Cuscal.

To the fullest extent permitted by law, Cuscal and its subsidiaries, affiliates, related bodies corporate and their respective officers, directors, employees, agents and advisors make no representation or warranty (express or implied) as to the currency, accuracy, reliability, reasonableness or completeness of the information in this presentation and accept no responsibility for any information provided in this presentation, including any forward-looking information or statements, and disclaim any liability whatsoever (including, without limitation, for negligence) for any loss howsoever arising from any use of this presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this presentation.

The release, publication or distribution of this presentation in jurisdictions outside of Australia may be restricted by law and any such restrictions should be observed.

Authorised for release by the Board of Cuscal Limited

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ACKNOWLEDMENT OF COUNTRY

Cuscal acknowledges the Traditional Custodians of the lands, seas and waters across Australia.

We acknowledge the Gadigal peoples of the Eora Nation, whose ancestral lands and waters are where the Cuscal Limited headquarters stand. Cuscal recognises Aboriginal and Torres Strait Islander peoples’ continuing connection to land, waters and culture.

We honour the wisdom of Aboriginal and Torres Strait Islander Elders past and present and embrace future generations.

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The artwork depicted on this page, “Wugul Mudjin” means one family, one mob, one team in Dharug/Darug language, and was commissioned by Cuscal Limited and created in March 2024 in partnership with artist Jason Douglas of Dalmarri.

Agenda & Presenters

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Page
1 Introducing Cuscal 5
2 H1 FY25 Results Highlights 9
3 H1 FY25 Financial Performance 11
4 Outlook 16
A Appendix 20
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Craig Kennedy Managing Director

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Sean O’Donoghue Chief Financial Officer

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Introducing Cuscal Craig Kennedy, Managing Director

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Differentiated Role in the Australian Payments Landscape

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End-to-End Independent Fully Licensed Well Capitalised
Capabilities B2B offering
Highly regulated – Required to
Access to core payment rails is Strong balance sheet position
difficult/expensive Cuscal does not compete with settle transactions supports dividend capacity
clients in the B2C space
Support clients across the value Industry-wide connectivity Investment grade rating
chain
Strong Competitive Advantages
Long Tenured
Successful Investment Growth Levers
Client Base
Innovation driving payments
Strong base of clients contracted
$100m+ in technology upgrades and adoption
for 2+ years capability uplift between FY22 to Attractive consolidation
Predictable financial model FY24 - well placed for operating opportunities
leverage
Predictable Financial Model Strategically Positioned
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Significant opportunity for earnings growth and margin expansion underpinned by differentiated market position, efficient operating model and growth opportunities

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8

Multiple Growth Levers

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1 2 3 4 Expand Into Grow Existing Capabilities Expand Market Share Inorganic Growth Logical Adjacencies CDR: Regulated Data Services Organic Growth Major Bank Focus Track Record of Successful M&A Opportunity Strong forecast structural market Focus on capturing more of total Inorganic growth opportunities have Anticipated to become important growth in debit card volumes and market share of the Major Banks included SPS and Basiq acquisitions pillar of Cuscal’s offering the NPP market Potential to partner with a Major Provided access to new capabilities Action Initiation is a significant Cuscal holds strong market share in Bank and improved positioning opportunity

Strong forecast structural market growth in debit card volumes and the NPP market Cuscal holds strong market share in NPP which is growing strongly

Targeted Growth Strategies

Issuing – New client segments Acquiring – Synergies between card acceptance and real time payments Payments – Bring new clients onto NPP platform and PayTo

Emergence of New Competitors Opportunity to partner with new Fintech or corporate entrants and payment facilitators

Disciplined Acquisition Framework Disciplined focus on Australian opportunities accretive to core capabilities

First Mover Advantage

Well-positioned to build-out Regulated Data Services capabilities following Basiq acquisition

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Opportunities and Investment For Growth

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Issuing Acquiring Payments
Make a card payment Accept a card payment Account to Account payments
• Modernising card management • Technological advancements and • Transition from batch to real-time
platforms to offer multiple card innovation driving changing payments driving change in
behaviours
types such as credit, prepaid, debit, transaction mix
etc. • Opportunity to grow B2B acquiring
• Opportunity to attract new B2B
capabilities and non-card related
• Optimising time and cost to market clients
transactions as legacy batch
for clients by providing PCI
systems retire over time
•
Roll-out of PayTo and increased use
compliant end-to-end managed
•
Cuscal well positioned given B2B
card solutions of PayID expected to generate
focus and capability across value
opportunities to bring on new B2B
• Opportunity to expand into new chain
clients
segments
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H1 FY25 Results Highlights Craig Kennedy, Managing Director

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H1 FY25 Highlights

+7% transaction volume growth.

Earnings growth across all core capabilities.

Improvement in all key metrics.

On track to meet or modestly exceed Prospectus FY25 pro forma NPAT[(1)] forecast.

(1) Pro forma Consolidated Profit attributable to the owners of Cuscal.

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H1 FY25 Financial Performance Sean O’Donoghue, Chief Financial Officer

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Growth Across All Key Metrics

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Transaction Volumes (by number, million) Pro forma Adjusted EBITDA ($m) and Margin (%) Pro forma NPAT ($m) and Margin (%)
24.3% 14.7%
21.4%
16.8%
10.9%
+7% 9.0%
35.6 21.5
+5% 2,127
29.5
15.1
19.9
1,984 10.6
1,884
H1 FY23 H1 FY24 H1 FY25 H1 FY23 H1 FY24 H1 FY25 H1 FY23 H1 FY24 H1 FY25
Pro forma Adjusted Pro forma Adjusted Pro forma NPAT ($m) Pro forma NPAT
EBITDA ($m) EBITDA Margin (%) Margin (%)
Pro forma EPS (cents per share) Pro forma ROE (%)
6.3%
4.9%
3.5%
12.1
8.5
6.0
H1 FY23 H1 FY24 H1 FY25
H1 FY23 H1 FY24 H1 FY25
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Adjusted NOI Growth Across All Core Capabilities

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Transaction volume growth:

• Issuing +6%

• Acquiring +6%

• Payments +11%

Continued value from diversified revenue model

Growth in transaction-based revenue across all core capabilities

• Issuing: +6% excluding one-offs in pcp

• Acquiring: +4%

				1H FY25
A$m	1H FY25	1H FY24	Growth (%)	Contribution
				to Total NOI
Issuing	85.8	80.4	7%	58%
Acquiring	15.0	14.4	4%	10%
Payments	35.0	33.8	4%	24%
Financial Crimes	8.0	7.4	8%	5%
Regulated Data Services	2.6	2.6	-	2%
Corporate	0.3	(0.5)	>100%	<1%
Adjusted net operating income(1)	146.7	138.1	6%
Transaction volume(m) (by number)	2,127	1,984	7%

1. Adjusted net operating income is a non-IFRS measure and is derived after adjusting Total net operating income per the Statement of Profit and Loss for the impact of a $0.7m option liability charge to interest expense for Dec 2023

2. Payments: +9% excluding one-off in pcp

On track to meet or modestly exceed FY25 Prospectus Adjusted NOI forecast

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Operating Expenses Underpinning Margin Expansion

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$115.9m
$113.9m
$102.6m
16.3
19.6
10.3
23.3 24.9 34.3
4.4 5.3
4.8
2.5
2.3 2.3
62.1 61.8
58.2
H1 FY23 H1 FY24 H1 FY25
Employee benefits expenses Occupancy expenses
Depreciation & amortisation expense Non-salary technology expenses
Other expenses
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▪ Pro forma Total operating expenses ↑ 2% to $115.9m

• slower ramp up of expenses positively skewing H1 FY25 NPAT result

▪ Employee benefits expenses ↓ 6% to $58.2m

o slower than planned on-boarding of forecast FTE uplift

▪ D&A ↓ 9% to $4.8m

o intangible asset write down FY24

▪ Non-salary technology expenses ↑ 38% to $34.3m

• largely timing and nature of execution of investment program

• ramp up of Risk & Technology Uplift programs but lower investment as legacy programs completed

▪ Other expenses ↓17% to $16.3m

• reduced 3[rd] party consultancy costs

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Strong Balance Sheet

Summary balance sheet A$m	Dec 2024	Jun 2024
Cash & cash equivalents	2,308.1	2,069.1
Receivables & investment securities	1,118.1	1,202.7
Other assets	68.6	79.9
Deferred tax assets	15.3	5.4
PPE	11.0	14.2
Intangibles	106.1	105.8
Total Assets	3,627.2	3,477.1
Payables, securities sold, discount securities	147.5	335.6
Client deposits	3,010.9	2,701.6
Current tax liabilities	9.2	10.0
Other liabilities & provisions	100.4	105.7
Total liabilities	3,268.0	3,152.9
Total Equity	359.2	324.2

December 2024 Equity includes net ~$40 million proceeds related to the listing of Cuscal on 25 November 2024

A$m	Dec 2024	Jun 2024
Common Equity Tier 1 capital	233.8	204.5
Total Tier 2 capital	-	2.5
Total capital	233.8	207.0
Risk weighted Assets	864.2	927.1
Total capital ratio (%)	27.1%	22.3%

$0m $50m $100m $150m $200m $250m $300m $350m $400m	$175.5m $207.0m $233.8m 21.5% 22.3% 27.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Dec-23 Jun-24 Dec-24 Total Regulatory Capital Capital Adequacy Ratio Regulatory Capital & Capital Adequacy Ratio

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▪ Capital ratios remain strong and well above prudential minimums

▪ Opportunities to deploy excess capital being actively pursued

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Outlook Craig Kennedy, Managing Director

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Outlook

• On track to meet or modestly exceed Prospectus FY25 pro forma NPAT forecast:

• Mid-to-high single digit transaction volume growth expected to translate to low double-digit NPAT growth.

• H2 FY25 operating expenditure expected to be ahead of H1 due to timing of FTE onboarding.

• Pro forma FY25 NPAT expected to be skewed to H1, with H1 NPAT ~55% of expected pro forma FY25 full year result.

• FY25 final dividend forecast of 5.5 cents per share remains .

• unchanged[(1)]

• Opportunity to deploy excess capital towards selected inorganic opportunities continues to be evaluated.

• (1) A pre-IPO dividend of 4.5 cents per share was paid to existing shareholders on Cuscal’s register as at 31 October 2024 in lieu of an interim dividend for the six months ending 31 December 2024.

Well Positioned for Growth and Operating Leverage

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Revenue model Significant investment
underpinned by long- Diversified model with in operating model Well capitalised,
tenured contracted multiple revenue drivers completed in recent regulated balance sheet
client base years
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Q&A

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Appendix

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Results Overview – Statutory Results

A$m	1H FY25	1H FY24	Growth (%)
Total net operating income	146.7	137.4	7%
Total Adjusted net operating income	146.7	138.1	6%
Total operating expenses	(129.2)	(115.9)	11%
Adjusted EBITDA	22.3	27.5	(19%)
Consolidated profit attributable to the owners of Cuscal (NPAT)	12.2	13.7	(11%)
Earnings per share (c/share)	6.9	7.8	(12%)
Dividends per share (c/share)	4.5	3.5	29%
Return on Equity (%)	3.6%	4.9%	(130 bpts)
Average FTE	632	717	(12%)
Transaction volume (m)	2,127	1,984	7%

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• Statutory results impact by non-recurring IPO related costs of $13.3m in 1H FY25 and $2.0m in 1H FY24[(1)]

• Transaction volume on track to FY25 Prospectus forecast.

• Average FTE decreased in 1H FY25, in-line with Prospectus forecast.

• Pre-IPO dividend of 4.5 cents per share was paid to existing shareholders on Cuscal’s register as at 31 October 2024 in lieu of an 1H FY25 interim dividend.

• Total FY25 forecast full dividend of 10.0 cents per share remains unchanged.

Reconciliation of statutory NPAT to pro forma NPAT	1H’25	1H’24
Consolidated profit attributable to the owners of Cuscal (NPAT)	12.2	13.7
Offer costs	13.4	3.0
Share-based payments	0.6	-
Incremental listed public company costs	(0.7)	(1.0)
Tax impact of the adjustments	(4.0)	(0.6)
Pro Forma Consolidated Profit attributable to the owners of Cuscal (pro forma NPAT)	21.5	15.1

1. Incremental listed public company cost adjusted on ‘pro forma’ only i.e.. not deducted from statutory Consolidated Profit for Dec 2024 and Dec 2023

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Results Overview – Pro Forma Income Statement

				Prospectus pro
A$m	1H FY25	1H FY24	Growth (%)	forma forecast
				FY25
Gross fee & commission revenue	176.3	166.2	6%	347.4
Direct fee & commission expense	(46.8)	(41.4)	13%	(88.0)
Net fee & commission revenue	129.5	124.8	4%	259.4
Net interest income	16.8	13.1	28%	30.0
Other operating income / (loss)	0.4	(0.5)	>100%	0.3
Total net operating income	146.7	137.4	7%	289.7
Employee benefits expense	(58.2)	(61.8)	(6%)	(127.6)
Occupancy expenses	(2.3)	(2.3)	-	(4.6)
Depreciation and amortisation	(4.8)	(5.3)	(9%)	(10.1)
Non-salary technology expenses	(34.3)	(24.9)	38%	(65.3)
Other expenses	(16.3)	(19.6)	(17%)	(29.7)
Total operating expenses	(115.9)	(113.9)	2%	(237.3)
Net profit before tax	30.8	23.5	21%	52.4
Income tax expense	(9.3)	(8.8)	6%	(15.8)
Net profit after tax	21.5	14.7	46%	36.6
Add: loss attributable to non-controlling interests	-	0.4	(100%)	-
Consolidated profit attributable to the owners of Cuscal (pro forma NPAT)	21.5	15.1	42%	36.6
Adjusted EBITDA	35.6	29.5	21%	62.5

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Transaction volume ↑ 7%

Total NOI ↑ 7%

Adjusted EBITDA ↑ 21%

Profit before tax ↑ 21%

NPAT ↑ 42%

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Summary Cash Flow Statement

A$m	1H FY25		1H FY24
NPAT attributable to the owners of Cuscal		12.2		13.3
Depreciation & amortisation expense		7.0		7.5
Interest on option liability		-		0.7
Share based payments		0.6		-
Decrease in FI receivables & payables, investment securities, discount securities		198.6		4.9
Decrease in repurchase agreements		(302.1)		-
Increase in client deposits		309.3		554.7
Decrease in other assets & liabilities		3.2		24.7
Operating Cash Flow		228.8		605.8
Repayment of Securitised loans		-		0.1
Payment for acquisition of subsidiary		(4.8)		-
Payment for intangible & PPE assets		(3.4)		(7.8)
Investing Cash Flow		(8.2)		(7.7)
Net Cash Flow before Financing		220.6		598.1
Proceeds from issue of shares (net of transaction costs)		38.3		-
Dividends paid		(16.7)		(7.0)
Settlement of employee share options		(0.6)		-
Principle component of lease liability		(2.6)		(2.5)
Financing Cash Flow		18.4		(9.5)
Net Cash Flows		239.0		588.6

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• Financing cashflow includes net proceeds from issue of shares on listing of Cuscal in November 2024.

• Repurchase agreements decreased ~$302 million as liquidity provided by agreements not required in December 2024.

• Client deposits increased ~$309 million on higher TXN volumes.

• December 2024 dividends paid represent both the final FY24 dividend of 5.0 c/share and ‘preIPO’ dividend of 4.5 c/share paid on completion of the IPO.

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Tracking to IPO Pro Forma Forecast

A$m	1H FY25 Results	FY25E Pro Forma Prospectus Forecasts	% of prospectus forecast
Transaction volume	2,127	4,304	49%
Gross fee and commission revenue	176.3	347.4	51%
Direct fee and commission expense	(46.8)	(88.0)	53%
Net fee and commission revenue	129.5	259.4	50%
Net interest Income	16.8	30.0	56%
Other income	0.4	0.3	133%
Total net operating income	146.7	289.7	51%
Employee benefits expense	(58.2)	(127.6)	46%
Occupancy expenses	(2.3)	(4.6)	50%
Depreciation and amortization	(4.8)	(10.1)	48%
Non-salary technology expenses	(34.3)	(65.3)	53%
Other expenses	(16.3)	(29.7)	55%
Total operating expenses	(115.9)	(237.3)	49%
Net profit before tax	30.8	52.4	59%
Income tax expense	(9.3)	(15.8)	59%
Net Profit after Tax (NPAT)	21.5	36.6	59%
Add: loss attributable to non-controlling interests	-	-	-
NPAT attributable to the owners of Cuscal	21.5	36.6	59%

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Thank you