Level 6, 601 Pacific Highway St Leonards NSW 2065

W www.eclipx.com

Eclipx Group Limited | ABN: 85 131 557 901

6 May 2021

ASX Release

Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000

APPENDIX 4D AND 1H21 FINANCIAL REPORT

Eclipx Group Limited provides its Appendix 4D and Financial Report for the six months ended 31 March 2021.

This announcement has been authorised by the Board of Directors.

ENDS Encl.

Media enquiries John Frey GRACosway [email protected] 0411361361	Investor enquiries Damien Berrell Eclipx Group [email protected] 0457357041

APPENDIX 4D HALF‐YEAR REPORT ECLIPX GROUP LIMITED ACN : 131 557 901

HALF‐YEAR ENDED 31 MARCH 2021

1 Details of the reporting period and the previous corresponding period

Current period 1 October 2020 ‐ 31 March 2021 Prior corresponding period 1 October 2019 ‐ 31 March 2020

2 Results for announcement to the market

	Half‐Year Ended 31 Mar 2021	Half‐Year Ended 31 Mar 2020*	Change on Previous Period	Change on Previous Period
Financial Performance	$'000	$'000	$'000	%
Revenue from continuing operations 333,155 335,497 (2,342) (0.7%) Profit for the half‐year after tax 37,766 13,195 24,571 186.2% Net profit attributable to members 37,766 13,195 24,571 186.2% Cash netprofit after tax for theperiod1 39,348 15,527 23,821 153.4%
Earnings per share	Cents	Cents	Cents	%
Statutory earnings per share 12.04 4.17 7.87 188.7% Diluted statutory earnings per share 11.30 4.17 7.13 171.0% Cash earningsper share 12.54 4.91 7.63 155.4%
Number of ordinary shares used in calculating2	Units	Units	Units	%
Statutory earnings per share 313,709,975 316,470,114 (2,760,139) (0.9%) Diluted statutory earnings per share 334,314,973 316,470,114 17,844,859 5.6%
Cash earningsper share 313,709,975 316,470,114 (2,760,139) (0.9%)

*The prior comparative period has been restated to exclude the subsequent classification of CarLoans as held‐for‐sale.

1. Cash net profit after tax for the period is the statutory profit after tax, adjusted for the post tax effect of material one‐off items that do not reflect the ongoing operations of the Group and the amortisation of intangible assets

2. The number of ordinary shares used in calculating earnings per share has been calculated in accordance with AASB 133 Earnings per Share where the weighted average number of ordinary shares outstanding during the period is the number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares bought back (treasury shares) or issued during the period multiplied by a time‐weighting factor.

Commentary

Refer to the 2021 Half‐Year Report accompanying this report for a more detailed commentary.

APPENDIX 4D HALF‐YEAR REPORT ECLIPX GROUP LIMITED ACN : 131 557 901

3 Dividends

Dividends	Amount per security Cents	Franked amount per security Cents
No interim dividend declared for theperiod ended 31 March 2021	0.00	0.00
No interim dividend declared for theperiod ended 31 March 2020	0.00	0.00

4 Dividend reinvestment plans

Not applicable for half‐year ended 31 March 2021.

5 Net Tangible Assets Per Security

	Half‐Year Ended 31 Mar 2021 cents	Half‐Year Ended 31 Mar 2020 cents
Net Tangible Assets Per OrdinarySecurity	33.02	14.34

6 Auditor's report

The financial report has been independently reviewed and an unqualified review report has been issued.

7 Attachments

The Half‐Year Report of Eclipx Group Limited for the half‐year ended 31 March 2021 is attached.

8 Signed

==> picture [173 x 52] intentionally omitted <==

Kerry Roxburgh Chairman Sydney

Date: 5 May 2021

Eclipx Group Limited ACN 131 557 901 Interim report for the half-year ended 31 March 2021

Eclipx Group Limited ACN 131 557 901

Half-year report - 31 March 2021

CONTENTS
	Page
Directors' Report	3
Lead Auditor's Independence Declaration	11
Financial statements
Statement of Profit or Loss and Other Comprehensive Income	12
Statement of Financial Position	13
Statement of Changes in Equity	14
Statement of Cash Flows	15
Notes to the financial statements
1.0 Introduction to the report	16
1.1 Statement of compliance and basis of preparation	16
1.2 New, revised or amended Accounting Standards and Interpretations adopted	16
1.3 Coronavirus (COVID-19) pandemic	16
1.4 Going Concern	18
2.0 Business result for the period
2.1 Segment information	18
2.2 Discontinued operations	20
2.3 Revenue	21
2.4 Expenses	21
2.5 Earnings per share	22
3.0 Operating assets and liabilities
3.1 Property, plant and equipment	23
3.2 Intangibles	24
3.3 Receivables and Finance leases	25
4.0 Capital management
4.1 Borrowings	26
4.2 Derivative financial instruments	27
4.3 Fair value	27
4.4 Dividends	27
5.0 Other
5.1 Related party transactions	27
5.2 Events occurring after the reporting period	27
Directors' Declaration	28
Independent Auditor's Review Report	29

Eclipx Group Limited Directors' Report 31 March 2021

The Directors present their report on the consolidated entity (referred to hereafter as the Group or Eclipx) consisting of Eclipx Group Limited (the Company) and the entities it controlled at the end of or for the half-year ended 31 March 2021.

1. Directors

The following persons were Directors of the Company during the whole of the half-year period and up to the date of this report, unless otherwise stated:

Kerry Roxburgh Chairman, Independent Non-Executive Director Gail Pemberton Independent Non-Executive Director Trevor Allen Independent Non-Executive Director Russell Shields Independent Non-Executive Director Linda Jenkinson Independent Non-Executive Director

2. Review of operations

Principal activities

We are one of Australia’s leading providers of fleet management services and operate in Australia and New Zealand. Our products include a comprehensive range of motor vehicle fleet services from acquisitions, leasing, in-life fleet management and remarketing.

Group financial performance

The Group measures financial performance adopting the following non-IFRS measures:

Net Operating Income (NOI). This represents earnings before tax after direct costs such as interest expense on debt allocated to fleet assets and depreciation and amortisation of fleet assets. NOI also includes end of lease income.
Earnings before interest, taxes, depreciation and amortisation (EBITDA). This represents earnings before taxes after indirect costs such as wages, occupancy and technology costs. It also includes impairment expenses. EBITDA excludes depreciation and amortisation of non-fleet assets, share based payments and interest expense on corporate debt, other than interest expense on debt allocated to fleet assets.
Cash net profit after taxes and amortisation (NPATA). This represents earnings of the Group after tax. It excludes significant costs deemed to be non-recurring due to the nature of the cost as well as excluding the amortisation of all intangibles.
Cash net profit after tax (NPAT). This represents the earnings of the Group after tax excluding significant costs deemed to be non-recurring due to the nature of the cost. It also excludes the amortisation of acquired intangibles.

The ongoing COVID-19 pandemic increases the uncertainty associated with estimations made in the preparation of these consolidated half-year financial statements. Information about the Group’s approach is provided in section 4 of this Directors’ Report and in Note 1.3 of the Financial Statements.

With respect to the potential impacts of COVID-19, the Group made 31 March 2021 estimates based upon all information the Board considers relevant at this time. However, it is likely subsequent economic conditions may result in materially different outcomes (better or worse) than the accounting estimates used in the preparation of these financial statements.

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

2. Review of operations (continued)

The table below reconciles the non-IFRS measures with the statutory profit for the first half reported in the Group Statement of Profit or Loss and Other Comprehensive Income.

31 March Net operating income Bad and doubtful debts Operating expense EBITDA Depreciation Share based payments Holding company debt interest Tax Cash NPATA Software amortisation post tax Cash NPAT Reconciling items to statutory profits Amortisation of other intangibles Significant items Tax Statutory profits	First half 2021 2020 2021 2020 2021 2020 Core Core Non-core Non-core Group Group* 104.7 88.9 - 7.3 104.7 96.2 1.2 (2.1) - 0.2 1.2 (1.9) (39.4) (38.4) - (18.7) (39.4) (57.1)
	66.5 48.4 - (11.2) 66.5 37.2 (2.7) (3.4) - (0.8) (2.7) (4.2) (2.4) (2.1) - - (2.4) (2.1) (5.7) (5.6) - (3.1) (5.7) (8.7) (16.4) (11.0) - 4.4 (16.4) (6.6)
	39.3 26.3 - (10.7) 39.3 15.6 (1.2) (1.1) - - (1.2) (1.1)
	38.1 25.2 - (10.7) 38.1 14.5
	(1.5) (1.6) - - (1.5) (1.6) 0.8 (4.3) - 2.6 0.8 (1.7) 0.4 1.7 - 0.3 0.4 2.0
	37.8 21.0 - (7.8) 37.8 13.2

* Non-core for 2020 includes Right2Drive and CarLoans which were sold post 31 March 2020.

Net operating income

Net operating income (NOI) increased by $15.8 million compared to the Core NOI half-year ended 31 March 2020. The NOI increase was a result of:

Higher financing margin driven by lower interest expenses.
Higher end-of-lease income created by a combination of increased demand for used cars and record high prices for used cars largely resulting from the shortage of supply in both Australia and New Zealand.
Offset by lower brokerage commissions and other revenue items, which were directly impacted by the effects of COVID-19 and the delay in new motor vehicle supply.

Operating expenses

Operating expenses increased by $1.0 million compared to the Core business direct and allocated costs for the half-year ended 31 March 2020. The Core business absorbed the stranded costs as the Group exited the Non-core businesses.

Bad and doubtful debts

Bad and doubtful debts expense decreased by $3.3 million compared to the Core business half-year ended 31 March 2020. $1.9 million decrease was due to the Group’s expected credit loss (ECL) model and driven by the reduction of finance leases and trade receivables balance. A $0.2 million decrease was caused by the reduction in management’s provision overlay of $2.9 million ($3.1 million Sept-20) in response to COVID-19 (refer to Note 1.3).

Cash NPATA

Cash NPATA increased by $13.0 million compared to the Core business half-year ended 31 March 2020. The Group reduced its Holding company debt interest by $3.0 million by reducing its gross debt by $42.1 million during the half-year ended 31 March 2021.

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

2. Review of operations (continued)

Significant items

Significant items recognised for the half-year ended 31 March 2021 were $0.8 million and primarily relate to a non-recurring income item.

It is noted that significant expense items for the half-year ended 31 March 2020 in the Core business of ($4.3 million) related to the Group’s Simplification plan and included employee redundancy costs, exit costs of premises and expenses associated with the early repayment of corporate debt.

the early repayment of corporate debt.
Total Group assets and liabilities ($m)	As at
	31-Mar-21 30-Sep-20 % Change
Inventory Finance leases Operatingleases	15.5 18.4 (16)% 353.0 370.3 (5)% 840.6 867.2 (3)%
Other assets	1,209.1 1,255.9 (4)% 794.1 776.6 2%
Total assets Borrowings Other liabilities	2,003.2 2,032.5 (1)% 1,258.3 1,345.0 (6)% 196.7 179.0 10%
Total liabilities	1,455.0 1,524.0 (5)%

Inventory

Inventory was $15.5 million as at 31 March 2021 which is a reduction of $2.9 million compared to 30 September 2020. The combination of continued strong demand for second-hand motor vehicles and supply shortages has allowed the Group to sell down its inventory balance up to 31 March 2021.

Finance leases

Finance leases were $353.0 million as at 31 March 2021 which is a reduction of $17.3 million compared to 30 September 2020. The decrease of this balance was driven by a combination of a decrease in new business writings in the half-year ended 31 March 2021 because of the delay of new motor vehicle supplies and due to a greater portion of finance leases being funded by our principal and agency (P&A) partners as opposed to by our warehouse facilities.

Operating leases reported as property, plant and equipment

Operating leases were $840.6 million as at 31 March 2021 which is a reduction of $26.6 million compared to 30 September 2020. The decrease of this balance was driven by a decrease in new business writings because of the delay of new motor vehicle supplies and due to a greater portion of leases being funded by our P&A partners as opposed to by our warehouse facilities.

Borrowings and funding

As of 31 March 2021, borrowings include an amount of $112.9 million drawn against the holding company debt facility. This represents a $42.1 million reduction to the 30 September 2020 balance. After deducting cash and cash equivalents, the net holding company debt borrowing as of 31 March 2021 was $54.2 million representing a $45.0 million reduction to the balance at 30 September 2020.

The remaining borrowings of $1,153.1 million relates to funding directly associated with finance and operating leases that the Group provides to its customers along with the inventory of vehicles in the process of being sold. This funding is provided by a combination of warehouse and asset backed securitisation funding structures.

Warehouse facilities are so called because they can be drawn and repaid on an ongoing basis up to an agreed limit subject to conditions. A group of assets funded via a warehouse facility can be pooled together and refinanced via the creation of special purpose asset backed securitisation vehicles (backed by the assets initially financed via the warehouse) which issue debt securities to wholesale investors such as domestic and international banks and institutional funds.

The Group aims to optimise its funding facilities with committed funding facilities to cater for expected business growth. At 30 March 2021, the Group had undrawn debt facilities of $243.2 million.

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

2. Review of operations (continued)

Cash flows

The Group saw cash and cash equivalents, including restricted cash, increase by $15.8 million during the half-year ended 31 March 2021 compared to a decrease of $11.6 million during the prior corresponding period. The increase was driven by cash generated by the positive EBITDA result and the receipt of $4.9 million of deferred consideration from the sale of Right2Drive and CarLoans, partially offset by $42.1 million repayment of holding company debt.

As at 31 March 2021, the Group held $58.6 million of unrestricted cash and $164.9 million of restricted cash.

First half segment performance

Australia Commercial
($m)	31-Mar-21	31-Mar-20
Net operating income	63.6	52.1
Bad and doubtful debts	-	(0.2)
Operatingexpenses	(24.8)	(22.8)

The Australia Commercial segment specialises in fleet leasing and management that operates under the trading names of Fleetplus and FleetPartners.

Net operating income (NOI) within the Australia Commercial segment increased by $11.5 million compared to the half-year ended 31 March 2020. NOI increased because of higher end of lease income created by a combination of increased demand for second-hand vehicles and a supply shortage. NOI also increased due to higher finance margins driven by lower interest expense. These drivers were partially offset by lower brokerage commission and other revenue items, from lower new business writings (NBW) which was adversely impacted by the delay in new motor vehicle supply.

Bad and doubtful debts decreased by $0.2 million because of the reduction in credit provisions. Credit provisions decreased as a result of lower finance and trade receivables balance.

Operating expenses were higher by $2.0 million largely as a result of non-core stranded costs returning to the core business.

Novated
($m)	31-Mar-21	31-Mar-20
Net operating income	12.2	13.0
Bad and doubtful debts	-	-
Operatingexpenses	(7.3)	(6.3)

The Novated segment specialises in novated leasing and salary packaging. It operates in Australia under the trading names of FleetChoice, Fleetplus and FleetPartners

NOI within the Novated segment decreased by $0.8 million compared to the half-year ended 31 March 2020. NOI decreased because of fees and other revenue items associated with lower NBW which was adversely impacted by the delay in new motor vehicle supply.

Operating expenses were higher by $1.0 million because of higher employee costs and non-core stranded costs returning to the core business.

New Zealand Commercial

New Zealand Commercial
($m)	31-Mar-21	31-Mar-20
Net operating income	29.0	23.7
Bad and doubtful debts	1.2	(1.9)
Operatingexpenses	(7.3)	(9.3)

The New Zealand Commercial segment specialises in fleet leasing and management and operates under the trading names of Fleetplus and FleetPartners. This segment also operates three second-hand vehicle dealerships under the trading name of AutoSelect.

NOI within the New Zealand Commercial segment increased by $5.3 million compared to the half-year ended 31 March 2020. NOI increased because of higher end of lease income created by a combination of increased demand for second-hand vehicles and a supply shortage. NOI also increased due to higher finance margins driven by lower interest expense. These drivers were partially offset by lower management fees.

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

2. Review of operations (continued)

Bad and doubtful debts decreased by $3.1 million largely due to the incremental provision being recognised in March 2020 as a result of COVID-19 and the partial release of provisions where market data has supported an improvement in the outlook. The segment also noted an improvement in arrears position of the financial assets.

Operating expenses were lower by $2.0 million because of the annualised benefits from the Simplification plan, more than offsetting the level of non-core stranded costs returning to the core business.

Non-core
($m)	31-Mar-21	31-Mar-20
Net operating income	-	7.3
Bad and doubtful debts	-	0.3
Operatingexpenses	-	(18.8)

This segment is no longer reportable with the sale of Right2Drive on 6 August 2020.

3. Dividends

The Directors have not declared an interim dividend for the half-year ended 31 March 2021. No dividends were declared or paid for the half-year ended 31 March 2020.

The Group will commence an on-market share buy-back program, where the Group will purchase up to $20.0 million of equity in the second half of financial year 2021. The shares will subsequently be cancelled to provide a capital return to shareholders.

4. Coronavirus COVID-19

The COVID-19 pandemic and the measures undertaken to contain it have had significant social, medical and economic impacts in Australian and New Zealand that continue to unfold with the ultimate extent of the impacts still unknown.

This socio-economic crisis has required a multifaceted response by the Group. The response includes but is not limited to ensuring the health and safety of employees, working closely with customers and suppliers, increasing the rigor around liquidity and risk management and enacting appropriate mitigation actions across all other aspects of the Group’s operations.

The full effects on the fleet management sector have yet to be determined. The key impacts on the Group during the half-year ended 31 March 2021 are summarised below:

Australia and New Zealand Commercial

NBW between October 2020 to March 2021 represented 86% of pre COVID-19 levels for the period of October 2019 to March 2020. This was mostly caused by the COVID-19 related delay in new motor vehicle supply.

Brokerage income that is earned as a result of NBW funded via a P&A arrangement was reduced by $1.3 million in the half-year ended 31 March 2021 compared to the prior corresponding period as a result of lower NBW.

Demand for second-hand motor vehicles has increased in Australia and New Zealand during the COVID-19 pandemic, coupled by a shortage in supply which has allowed the Group to reduce its inventory level to $15.5 million and earn end of lease income of $5,944 per motor vehicle which is $3,476 greater than the half-year ended 31 March 2020.

Novated

NBW between October 2020 to March 2021 represented 92% of pre COVID-19 levels for the period of October 2019 to March 2020. This was mostly caused by the COVID-19 related delay in new motor vehicle supply.

Brokerage income that is earned as a result of NBW funded via a P&A arrangement was reduced by $0.6 million in the half-year ended 31 March 2021 compared to the prior corresponding period as a result of lower NBW.

The Group has carefully considered the impact of COVID-19 in preparing its financial statements for the half-year ended 31 March 2021, including the application of critical estimates and judgements. The key impacts on the financial statements are as follows and are further detailed in Note 1.3:

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

4. Coronavirus COVID-19 (continued)

Provision for impairment losses on finance leases and trade receivables

Given the continuing uncertainty surrounding the effect from COVID-19, including the secondary or cumulative effect from the unwinding of government stimulus from 30 March 2021, the Group has held constant a model adjustment outlined in the 30 September 2020 financial report. The model adjustment involved applying the highest historical expected credit loss rate since the model inception. This management overlay of $2.9 million represents a net decrease of $0.2 million for the half-year ended 31 March 2021. The Group maintained the weighting of the model’s multiple economic scenarios at base (50%) and downside (50%).

Provision for impairment losses on operating leases

The Group assumes lease residual value risk on motor vehicles which exposes the Group to the movement in second-hand prices of these assets.

The AASB 136 Impairment of Assets methodology for impairing operating leases has remained consistent with prior periods including the incorporation of forecasted sale proceeds on the disposal of motor vehicles at lease end. The model used by the Group to estimate future sale proceeds is based on nearly 30 years of experience. Due to the combination of higher demand and a shortage in supply for second-hand vehicles, because of the effects of COVID-19, second-hand motor vehicle prices are significantly elevated at the moment.

It is management’s view that the current price levels are not sustainable and accordingly, the Group has applied a 4.68% reduction to the model’s current forecasted sale proceeds to mitigate these temporary inflationary effects of COVID-19 on second-hand motor vehicle forecasts. This overlay of $1.2 million represents a net decrease in the management overlay of $0.4 million for the half-year ended 31 March 2021.

Maintenance revenue

Maintenance revenue is recognised in accordance with AASB 15 Revenue from Contracts with Customers and is based upon external and internal data to calculate the percentage of maintenance revenue to be recognised in line with the level of services provided as part of our obligations under the lease. Accordingly, maintenance revenue is recognised progressively on a lease over time, with the age of the lease being the most practical proxy for services provided.

During the year ended 30 September 2020, the Group witnessed a decrease in the utilisation of its fleet and as a result, a decrease in maintenance expenditure which was driven by the restrictions on movement imposed by State and Territory governments in response to the COVID-19 outbreak.

To match the delay in revenue with the delay in services provided as a result of the COVID-19 restrictions, the Group deferred the recognition of $2.5 million maintenance revenue during the year ended 30 September 2020. Based upon the lease termination dates of the original leases that made up the $2.5 million revenue deferral, $0.5 million of revenue was released into the income statement during the half-year ended 31 March 2021.

Impairment of non-financial assets

At each reporting period, the Group reviews the carrying amount of its intangible assets to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the affected assets are evaluated in accordance with AASB 136 Impairment of Assets .

Having considered several indicative factors of goodwill impairment such as the Group’s market capitalisation, net assets, EBITDA and NPAT, the Group has determined there are no indicators of impairment for goodwill as of the half-year ending 31 March 2021.

Summary of COVID-19 overlays

Summary of COVID-19 overlays
($m)	31-Mar-21			30-Sep-20			Net income statement impact
	COVID-19 overlay	AASB 9 / 136 model	Total	COVID-19 overlay	AASB 9 / 136 model	Total
Provision for impairment losses on finance leases and trade receivables	2.9	10.9	13.8	3.1	12.8	15.9	2.1
Provision for impairment losses on operatingleases	1.2	3.4	4.6	1.6	3.0	4.6	-
Maintenance revenue	2.0	n/a	2.0	2.5	n/a	2.5	0.5
	6.1	14.3	20.4	7.2	15.8	23.0	2.6

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

5. Going concern

These half-year financial statements have been prepared on the basis that Eclipx is a going concern.

At 31 March 2021 the Group held unrestricted cash of $58.6 million, net debt of $54.2 million, undrawn capacity under its holding company debt facilities of $114.8 million and a debt-to-EBITDA ratio of 0.5 times.

The Group notes that a substantial proportion of income it generates is annuity-like in nature and not susceptible to sudden, short-to-medium downturns in the markets in which it operates.

Taken together, the combination of the current levels of liquidity and the annuity income streams of the Group, provides significant levels of support over an extended period for the day-to-day operations of the Group.

The Directors are therefore of the opinion that the preparation of the financial statements as a going concern is appropriate.

6. Subsequent events

No matter or circumstance has occurred since the end of the reporting period that may materially affect the Group's operations, the results of those operations or the Group's state of affairs in future financial years.

7. Lead auditor's independence declaration

A copy of the lead auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 11 and forms part of the Directors’ Report for the half-year ended 31 March 2021.

8. Rounding of amounts

The company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to the “rounding off” of amounts in the Directors’ Report and the Financial Report. Amounts, unless otherwise stated, have been rounded off to the nearest whole number of thousands of dollars.

9. Treasury shares

The Group held 17,870,512 (30 Sep 2020: 4,545,761) treasury shares, which it can use to settle its obligations under the Eclipx Group Long Term Incentive Plan.

10. Change in corporate affairs

Mr Kerry Roxburgh AM has confirmed his retirement as the Company’s Chair. The Company’s Board has chosen Ms Gail Pemberton AO as his successor. Mr Roxburgh commented at the Company’s 2020 Annual General Meeting, that it was his intention to retire as Chair on the earlier of the appointment of his successor or the 2022 Annual General Meeting.

In December 2020, the Group completed a comprehensive Board performance review. Arising from that review, the Company expects to announce the appointment of at least one additional Non-Executive Director later this year.

11. Stakeholders

The Board pays tribute to all Eclipx Group employees, who have each made significant contributions, demonstrating their resilience, commitment and consistency through all the internal and external challenges, much of it brought about by the COVID-19 pandemic. I thank our employees whose dedication ensured Eclipx maintained its reputation for service leadership to our customers, evidenced in our consistently strong NPS.

Finally, we express our sincere thanks and appreciation to our customers, funding partners, advisors and shareholders for their continuing support and feedback.

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

This Directors’ Report is signed on behalf of the Directors in accordance with the resolution of Directors made pursuant to section 298(2) of the Corporations Act 2001.

==> picture [198 x 59] intentionally omitted <==

Kerry Roxburgh Chairman

Sydney 5 May 2021

==> picture [78 x 31] intentionally omitted <==

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Eclipx Group Limited

I declare that, to the best of my knowledge and belief, in relation to the review of Eclipx Group Limited for the half-year ended 31 March 2021 there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and
ii. no contraventions of any applicable code of professional conduct in relation to the review.

==> picture [65 x 29] intentionally omitted <==

KPMG

==> picture [60 x 41] intentionally omitted <==

Peter Zabaks Partner

Sydney

5 May 2021

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

Eclipx Group Limited

Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 March 2021

Notes
Revenue from continuing operations
2.3
Cost of revenue
2.3
Lease finance costs
2.4
Net operating income before operating expenses and impairment charges
Impairment releases/(losses) on loans and receivables
Employee benefit expense
Depreciation and amortisation
2.4
Operating overheads
2.4
Total overheads
Operating finance costs
2.4
Profit before income tax from continuing operations
Income tax expense
Profit for the half-year from continuing operations
Loss from discontinued operation
2.2(i)
Profit for the half-year
Other comprehensive income/(expense)
Items that may be reclassified to profit or loss
Changes in the fair value of cash flow hedges
Exchange differences on translation of foreign operations
Other comprehensive income for the half-year, net of tax
Total comprehensive income for the half-year
Profit attributable to:
Owners of Eclipx Group Limited
Total comprehensive income for the half-year attributable to:
Owners of Eclipx Group Limited
Earnings per share from continuing and discontinuing operations
Basic earnings per share
2.5
Diluted earnings per share
2.5
Earnings per share from continuing operations
Basic earnings per share
2.5
Diluted earnings per share
2.5
Earnings per share from discontinued operations
Basic earnings/(loss) per share
2.5
Diluted earnings/(loss) per share
2.5

Consolidated
31 Mar 2021
$'000
31 Mar 2020
$'000
333,155
335,497
(205,079)
(215,528)
(23,358)
(30,838)
104,718
89,131
1,204
(2,062)
(30,861)
(31,237)
(6,096)
(6,512)
(9,957)
(13,603)
(46,914)
(51,352)
(5,719)
(11,430)
53,289
24,287
(15,523)
(7,149)
37,766
17,138
-
(3,943)
37,766
13,195
7,748
(2,352)
(1,712)
8,428
6,036
6,076
43,802
19,271
37,766
13,195
$0.00
$0.00
43,802
19,271
Cents
Cents
12.0
4.2
11.3
4.2
12.0
5.4
11.3
5.4
-
(1.2)
-*
(1.2)

*Comparative information has been re-presented due to a discontinued operation. See Note 2.2.

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

Eclipx Group Limited Statement of Financial Position As at 31 March 2021

Notes ASSETS Cash and cash equivalents Restricted cash and cash equivalents Trade receivables and other assets 3.3 Inventory Finance leases 3.3 Operating leases reported as property, plant and equipment 3.1 Deferred tax assets Property, plant and equipment 3.1 Right-of-use assets Intangibles 3.2 Total assets LIABILITIES Trade and other liabilities Provisions Derivative financial instruments 4.2 Borrowings 4.1 Lease liabilities Deferred tax liabilities Total liabilities Net assets EQUITY Contributed equity Reserves Retained earnings Total equity	Consolidated 31 Mar 2021 $'000 30 Sep 2020 $'000 58,645 55,776 164,927 152,022 66,630 68,534 15,547 18,425 353,038 370,299 840,649 867,164 12,220 3,366 5,219 6,029 18,503 21,565 467,812 469,306
	2,003,190 2,032,486
	115,438 107,771 8,736 9,810 16,240 28,091 1,258,252 1,344,992 20,920 23,774 35,387 9,563
	1,454,973 1,524,001
	548,217 508,485
	666,079 654,765 167,624 176,972 (285,486) (323,252)
	548,217 508,485

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

Eclipx Group Limited Statement of Changes in Equity For the half-year ended 31 March 2021

Consolidated Balance as at 1 October 2019 Profit for the half-year Cash flow hedges Foreign currency translation Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Movement in treasury reserve Employee share schemes Balance at 31 March 2020 Balance at 1 October 2020 Profit for the half-year Cash flow hedges Foreign currency translation Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Issuance of new shares Acquisition of treasury shares Movement in treasury reserve Employee share schemes Balance at 31 March 2021	Attributable to owners of Eclipx Group Limited
	Contributed equity $'000 Reserves $'000 Retained earnings $'000 Total equity $'000 654,765 167,797 (341,457) 481,105
	- - 13,195 13,195 - (2,352) - (2,352) - 8,428 - 8,428
	- 6,076 13,195 19,271
	- 1,798 - 1,798 - 2,148 - 2,148
	654,765 177,819 (328,262) 504,322
	654,765 176,972 (323,252) 508,485
	- - 37,766 37,766 - 7,748 - 7,748 - (1,712) - (1,712)
	- 6,036 37,766 43,802
	11,314 - - 11,314 - (28,822) - (28,822) - 11,051 - 11,051 - 2,387 - 2,387
	666,079 167,624 (285,486) 548,217

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Eclipx Group Limited Statement of Cash Flows For the half-year ended 31 March 2021

Cash flows from operations Receipts from customers Payments to suppliers and employees Income tax paid Interest received Interest paid Net cash inflow from operating activities Cash flows from investing activities Purchase of items reported under operating leases Purchase of items reported under finance leases Purchase of property, plant and equipment and intangibles Proceeds from completion payment Proceeds from sales of items reported under operating leases Net cash outflow from investing activities Cash flows from financing activities Proceeds from borrowings Repayments of borrowings Payment of lease liabilities Proceeds from issue of shares Purchase of treasury shares Proceeds from settlement of long term incentive plans Net cash (outflows)/inflow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year, net of overdraft Exchange rate variations on New Zealand cash and cash equivalent balances Cash and cash equivalents at end of the half-year, net of overdraft	Consolidated 31 Mar 2021 $'000 31 Mar 2020 $'000 387,466 480,398 (171,089)* (237,251)
	216,377 243,147 (918) (3,799) 221 763 (27,419) (39,026)
	188,261 201,085
	(124,188) (129,574) (68,444) (89,261) (2,628) (1,081) 4,855 406 118,210 100,976
	(72,195) (118,534)
	182,383 194,154 (269,184) (287,247) (1,974) (1,881) 11,314 - (28,822) - 6,356 1,798
	(99,927) (93,176)
	16,139 (10,625) 207,798 239,678 (365) (981)
	223,572 228,072

*The prior comparative period has been restated to reflect the reclassification of principal payments where the Group is a lessee. "Payments to suppliers and employees" has decreased to $237,251,000 from $239,132,000. Payment of lease liabilities reflects the reclassification of $1,881,000.

The above Statement of Cash Flows should be read in conjunction with the accompanying notes.

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021

1.0 Introduction to the report

1.1 Statement of compliance and basis of preparation

(a) Basis of preparation

These consolidated half-year financial statements represent the consolidated results of Eclipx Group Limited (ACN 131 557 901) (referred to hereafter as the Group or Eclipx). The financial statements are general purpose financial statements prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001, and with IAS 34 Interim Financial Reporting.

The financial statements do not include all of the information required for a complete set of annual financial statements and should be read in conjunction with the 2020 Annual Report. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual consolidated financial statements as at and for the year ended 30 September 2020.

The financial statements are presented in Australian Dollars, which is Eclipx's presentation currency. The accounting policies and methods applied in the half-year report are consistent with those adopted and disclosed in the 2020 Annual Report, except for the adoption of new Accounting Standards (refer to Note 1.2).

The financial statements were authorised for issue by the Directors on 5 May 2021.

(b) Significant accounting estimates and judgements

In preparing the half-year financial statements, management has made judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. Significant judgements made by management in applying the Group's accounting policies and the key sources of estimate uncertainty were the same as those that applied in the 2020 Annual Report. Additional judgements impacting half-year financial statements are disclosed in Note 1.3 and Note 1.4.

1.2 New, revised or amended Accounting Standards and Interpretations adopted

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.

The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the financial half-year ended 31 March 2021 and are not expected to have any significant impact for the full financial year ending 30 September 2021, except as stated below. Any new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

In April 2021, the International Financial Reporting Standards Interpretations Committee (IFRIC) issued a final agenda decision, Configuration or customisation costs in a cloud computing arrangement . The decision discusses whether configuration or customisation expenditure relating to cloud computing arrangements is able to be recognised as an intangible asset and if not, over what time period the expenditure is expensed.

The Group’s accounting policy has historically been to capitalise costs related to cloud computing arrangements as intangible assets in the Statement of Financial Position. The adoption of this agenda decision could result in a reclassification of these intangible assets to either a prepaid asset in the Statement of Financial Position and/or an expense in the Statement of Comprehensive Income, impacting both the current and/or prior periods presented.

As at 31 March 2021 the Group has not adopted this IFRIC agenda decision. The impact of the change is not reasonably estimable as the Group has yet to commence its assessment of the impact of the IFRIC agenda decision. The Group expects to adopt this IFRIC agenda decision in its annual financial statements ending on 30 September 2021.

1.3 Coronavirus (COVID-19) pandemic

The preparation of these consolidated half-year financial statements requires the use of management judgement, estimates and assumptions. The 2020 Annual Report provides information on the critical accounting estimates and judgements made by the Group. These estimates and judgements are reviewed on an ongoing basis.

The ongoing COVID-19 pandemic has increased the estimation uncertainty in the preparation of these consolidated half-year financial statements. The estimation uncertainty is associated with:

the financial impact of the wind back of the economic stimulus;
the temporary increase used car prices associated with the limited supply of new and used vehicles; and
• the financial effect of the international border closures of Australia.

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

1.3 Coronavirus (COVID-19) pandemic (continued)

The Group has formed estimates based on information that was available as at 31 March 2021, this information was deemed to be reasonable in forming these estimates. The actual economic conditions are likely to be different from the estimates used and this may result in material differences between the accounting estimates applied and the actual results of the Group for future periods.

The significant estimates impacted are predominantly related to impairment of operating leases reported as property, plant and equipment, expected credit losses and the carrying value of goodwill.

The impact of COVID-19 on these estimates is discussed below.

Provision for impairment of operating leases reported as property, plant and equipment

The Group assumes lease residual value risk on motor vehicles which exposes the Group to the movement in second-hand prices of these assets.

The AASB 136 Impairment of Assets methodology for impairing operating leases has remained consistent with prior periods including the incorporation of forecasted sale proceeds on the disposal of motor vehicles at lease end. The model used by the Group to estimate future sale proceeds is based on nearly 30 years of experience. Due to the combination of higher demand and a shortage in supply for second-hand vehicles, because of the effects of COVID-19, second-hand motor vehicle prices are significantly elevated at the moment.

Provision for impairment losses on finance leases and trade receivables

Maintenance revenue

Goodwill

Having considered several indicative factors of goodwill impairment such as the Group’s market capitalisation, net assets, profit from continuing operations and performance compared to approved budgets, the Group has determined there are no indicators of impairment of goodwill as of the half-year ended 31 March 2021.

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

1.4 Going Concern

These half-year financial statements have been prepared on the basis that Eclipx is a going concern.

The Group notes that a substantial proportion of income it generates is annuity-like in nature and not susceptible to sudden, short-to-medium downturns in the markets in which it operates.

The preparation of the financial statements as a going concern is appropriate.

2.0 Business result for the period

2.1 Segment information

An operating segment is a component of an entity that engages in business activities from which it may earn revenue and incur expenses, whose operating results are reviewed regularly by the Group's Chief Operating Decision Makers in assessing performance and in determining the allocation of resources.

As disclosed in the 2020 Annual Report, the Group had identified Core and Non-Core business segments. Core businesses include fleet leasing management and services to corporate small and medium enterprises (“SME”) and consumers in Australia and corporate and SME customers in New Zealand. Core business segments are Australia Commercial, Novated and New Zealand Commercial. Non-core relates to businesses that have been disposed by 30 September 2020 and were part of the simplification plan announced to the market in 2019. There were no Non-core businesses remaining for the half year financial period commencing 1 October 2020 to 31 March 2021.

The segment information for the reportable segments for the period ending 31 March 2021 are set out below:

31 March 2021

Net operating income Bad and doubtful debts Operating expenses EBITDA Depreciation and amortisation Share based payments Operating finance costs Amortisation acquired intangibles Significant non-recurring items Tax Statutory net profit after tax Post tax add back amortisation acquired intangibles Post tax add back significant non-recurring items Cash net profit after tax including amortisation of software Software amortisation (post tax) Cash Net Profit after Tax*	Australia Commercial $'000 Novated $'000 New Zealand Commercial $'000 Total $'000 63,593 12,164 28,961 104,718 (5) (26) 1,235 1,204 (24,826) (7,302) (7,257) (39,385)
	38,762 4,836 22,939 66,537 (1,910) (581) (1,903) (4,394) (1,409) (396) (582) (2,387) (4,184) (561) (974) (5,719) (1,196) (336) (16) (1,548) 917 - (117) 800 (9,217) (889) (5,417) (15,523)
	21,763 2,073 13,930 37,766 837 235 11 1,083 (772) - 84 (688)
	21,828 2,308 14,025 38,161 509 143 535 1,187
	22,337 2,451 14,560 39,348

Significant non-recurring items relate to restructuring, fair value of disposal proceeds and other settlements.

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

2.0 Business result for the period (continued)

2.1 Segment information (continued)

31 March 2020

31 March 2020
Net operating income Bad and doubtful debts Operating expenses EBITDA Depreciation and amortisation Share based payments Operating finance costs Amortisation acquired intangibles Significant non-recurring items Tax Statutory net profit after tax Post tax add back amortisation acquired intangibles Post tax add back significant non-recurring items Cash net profit after tax including amortisation of software Software amortisation (post tax) Cash Net Profit after Tax*	Australia Commercial $'000 Novated $'000 New Zealand Commercial $'000 Non-Core $'000 Total $'000 52,135 12,995 23,742 7,265 96,137 (160) 2 (1,905) 276 (1,787) (22,883) (6,288) (9,269) (18,734) (57,174)
	29,092 6,709 12,568 (11,193) 37,176 (2,249) (561) (2,116) (825) (5,751) (1,050) (242) (857) - (2,149) (4,020) (575) (995) (3,145) (8,735) (1,404) (171) (11) - (1,586) (3,892) - (415) 2,615 (1,692) (4,928) (1,536) (2,354) 4,750 (4,068)
	11,549 3,624 5,820 (7,798) 13,195 991 121 8 - 1,120 2,748 - 299 (2,939) 108
	15,288 3,745 6,127 (10,737) 14,423 519 130 455 - 1,104
	15,807 3,875 6,582 (10,737) 15,527

Significant non-recurring items relate to loss on disposal of discontinued operations, disposal related costs and restructuring costs.

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

2.0 Business result for the period (continued)

2.2 Discontinued operations

(i) Results of discontinued operations

The period ended 31 March 2020 included financial performance and cash flow information for the Right2Drive Group and CarLoans, which were sold on 6 August 2020 and 6 May 2020 respectively.

The comparative consolidated statement of profit or loss and other comprehensive income for the half-year ended 31 March 2020 has been re-presented to show the discontinued operation separately from continuing operations, adjusting for CarLoans which was not previously classified as held-for-sale or as a discontinued operation.

Revenue Cost of revenue Impairment loss on loans and receivables Reversal of impairment Employee benefit expense Depreciation and amortisation Other operating expenses Operating finance costs Loss from operating activities Income tax Loss on sale of discontinued operations Total comprehensive loss from discontinued operations Net cash flows from operating activities Net cash flows from investing activities Net cash flows from discontinued operations	31 Mar 2020 $'000 24,261 (16,962) 276 4,698 (10,705) (825) (6,599) (77)
	(5,933)
	3,082 (1,092)
	(3,943)
	31 Mar 2020 $'000 1,947 (69)
	1,878

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

2.0 Business result for the period (continued)

2.3 Revenue

2.3 Revenue
From continuing operations: Finance income Maintenance and management income Related products and services income Operating lease rentals Brokerage income Sundry income End of lease income - Vehicle sales End of lease income - Other Total revenue from continuing operations Cost of revenue: Maintenance and management expense Related products and services expense Impairment on operating leased assets Depreciation on operating leased assets Cost of goods sold - Vehicles Total cost of revenue**	Consolidated 31 Mar 2021 $'000 31 Mar 2020 $'000 43,161 50,151 50,712 51,645 16,709 18,860 89,170 94,655 6,069 7,586 2,280 2,281 116,900 100,990 8,154* 9,329
	333,155 335,497
	22,193 22,483 5,296 5,356 (37) - 84,684 92,866 92,943 94,823
	205,079 215,528

* Comparatives have been re-presented to reclassify CarLoans figures to discontinued operations.

** The above amounts for 2021 totalling $192,670,000 (2020: $181,362,000) represents the Group's revenue derived from contracts with customers, in accordance with AASB15.

2.4 Expenses

2.4 Expenses
Profit before income tax includes the following specific expenses: Depreciation and amortisation Plant and equipment - Fixture and fittings Amortisation - Intangible assets Software Right-of-use-assets Total depreciation and amortisation expense Lease finance costs Notes payable interest and finance charges Hedge gain Bank loans interest and finance charges Total lease finance costs Operating finance costs Facility finance costs Lease liabilities interest Facility finance restructure Total operating finance costs	Consolidated 31 Mar 2021 $'000 31 Mar 2020 $'000 934 1,249 1,529 1,586 1,847 1,555 1,786* 2,122
	6,096 6,512
	22,595 28,712 (924) (480) 1,687 2,606
	23,358 30,838
	5,227 8,144 492 547 - 2,739
	5,719 11,430

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

2.0 Business result for the period (continued)

2.4 Expenses (continued)

2.4 Expenses (continued)
Operating overheads Rental of premises Technology costs Restructuring costs Merger related costs Other overheads Total operating overheads	Consolidated 31 Mar 2021 $'000 31 Mar 2020 $'000 313 552 3,735 4,457 325 1,415 - 154 5,584* 7,025
	9,957 13,603

* Comparatives have been re-presented to reclassify CarLoans figures to discontinued operations.

2.5 Earnings per share

Profit /(loss) attributable to the ordinary equity holders of the company used in calculating basic earnings per share and diluted earnings per share From continuing operations From discontinued operations From continuing and discontinuing operations	Consolidated 31 Mar 2021 $'000 31 Mar 2020 $'000 37,766 17,138 -* (3,943)
	37,766 13,195

* Comparatives have been re-presented to reclassify CarLoans figures to discontinued operations.

Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share Weighted average number of ordinary shares used as the denominator in calculating diluted earnings per share Continuing and discontinuing earnings per share Basic earnings per share Diluted earnings per share	Consolidated 31 Mar 2021 Number 31 Mar 2020 Number 313,709,975 316,470,114
	334,314,973 316,470,114
	Consolidated 31 Mar 2021 Cents 31 Mar 2020 Cents 12.0 4.2 11.3 4.2

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

2.0 Business result for the period (continued)

2.5 Earnings per share (continued)

2.5 Earnings per share (continued)
	Consolidated
	31 Mar 2021	31 Mar 2020*
	Cents	Cents
Impact of continuing operations
Basic earnings per share	12.0	5.4
Diluted earnings per share	11.3	5.4
Impact of discontinued operations
Basic earnings/(loss) per share	-	(1.2)
Diluted earnings/(loss) per share	-	(1.2)

* Comparatives have been re-presented to reclassify CarLoans figures to discontinued operations.

3.0 Operating assets and liabilities

3.1 Property, plant and equipment

3.1 Property, plant and equipment
Consolidated At 31 March 2021 Opening net book amount Additions Transfers to inventory Impairment Depreciation Foreign exchange variation Closing net book amount At 31 March 2021 Cost Accumulated depreciation and impairment Net book amount Consolidated At 30 September 2020 Opening net book amount Additions Transfers to inventory Disposals Disposal - discontinued operations Impairment Depreciation - continuing operations Foreign exchange variation Closing net book amount At 30 September 2020 Cost Accumulated depreciation and impairment Net book amount	Plant and equipment $'000 Fixture and fittings $'000 Motor vehicles and equipment $'000 Total $'000 2,277 3,752 867,164 873,193 133 - 124,188 124,321 - - (64,073) (64,073) - - 37 37 (568) (366) (84,684) (85,618) - (9) (1,983) (1,992)
	1,842 3,377 840,649 845,868
	17,953 10,583 1,330,704 1,359,240 (16,111) (7,206) (490,055) (513,372)
	1,842 3,377 840,649 845,868
	Plant and equipment $'000 Fixture and fittings $'000 Motor vehicles and equipment $'000 Total $'000 4,236 4,364 959,187 967,787 290 219 266,041 266,550 - - (175,834) (175,834) (702) - - (702) (40) - - (40) - - (321) (321) (1,505) (818) (180,203) (182,526) (2) (13) (1,706) (1,721)
	2,277 3,752 867,164 873,193
	17,843 10,606 1,353,785 1,382,234 (15,566) (6,854) (486,621) (509,041)
	2,277 3,752 867,164 873,193

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

3.0 Operating assets and liabilities (continued)

3.1 Property, plant and equipment (continued)

Motor vehicle and equipment operating leases reported as property, plant and equipment Operating leases terminating within 12 months Operating leases terminating after more than 12 months Net book amount of property, plant and equipment Plant and equipment Fixture and fittings Total property, plant and equipment	Consolidated 31 Mar 2021 $'000 30 Sep 2020 $'000 285,493 284,045 555,156 583,119
	840,649 867,164
	1,842 2,277 3,377 3,752
	5,219 6,029
	845,868 873,193

3.2 Intangibles Consolidated At 31 March 2021 Opening net book amount Additions Amortisation charge - continuing operations Foreign exchange variation Closing net book amount At 31 March 2021 Cost Accumulated amortisation and impairment Net book amount Consolidated At 30 September 2020 Opening net book amount Additions Amortisation charge - continuing operations Impairment charge - continuing operations Foreign exchange variation Closing net book amount At 30 September 2020 Cost Accumulated amortisation and impairment Net book amount	Brand Names $'000 Customer relationships $'000 Software $'000 Goodwill $'000 Total $'000 1,714 11,248 16,050 440,294 469,306 - - 2,495 - 2,495 (62) (1,467) (1,847) - (3,376) - - - (613) (613)
	1,652 9,781 16,698 439,681 467,812
	2,478 29,342 75,425 537,769 645,014 (826) (19,561) (58,727) (98,088) (177,202)
	1,652 9,781 16,698 439,681 467,812
	Brand names $'000 Customer relationships $'000 Software $'000 Goodwill $'000 Total $'000 1,837 13,301 19,345 440,819 475,302 - - 2,117 - 2,117 (123) (1,655) (5,402) - (7,180) - (398) - - (398) - - (10) (525) (535)
	1,714 11,248 16,050 440,294 469,306
	18,721 29,342 73,120 538,382 659,565 (17,007) (18,094) (57,070) (98,088) (190,259)
	1,714 11,248 16,050 440,294 469,306

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

3.0 Operating assets and liabilities (continued)

3.3 Receivables and Finance leases

The Group's gross exposure and related Expected Credit Loss (ECL) provision subject to impairment requirements of AASB 9 Financial instruments are as follows:

	As at 31 March 2021	As at 31 March 2021	As at 31 March 2021	As at 30 September 2020	As at 30 September 2020	As at 30 September 2020
	Gross carrying amount $'000	ECL provision $'000	Carrying amount net of provision $'000	Gross carrying amount $'000	ECL provision $'000	Carrying amount net of provision $'000
Net investment in finance lease receivables	365,332	(12,294)	353,038	384,008	(13,709)	370,299
Trade and other receivables	68,105	(1,475)	66,630	70,716	(2,182)	68,534
Total	433,437	(13,769)	419,668	454,724	(15,891)	438,833

The Group's total impairment provision on receivables and finance leases as at 31 March 2021 and 30 Sept 2020 are as follows:

follows:
	Net investment in finance lease receivables $'000	Trade and other receivables $'000
OpeningECLprovision as at 1 October 2019	11,865	1,187
Increase /(Decrease)in ECLprovision	3,170	2,245
Write-offs	(1,326)	(1,250)
Closing ECL provision as at 30 September 2020	13,709	2,182
Increase /(Decrease)in ECLprovision	(1,100)	74
Write-offs	(315)	(781)
Closing ECL provision as at 31 March 2021	12,294	1,475

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

4.0 Capital management

4.1 Borrowings

4.1 Borrowings
Bank loans Notes payable Borrowing costs Total secured borrowings Amount expected to be settled within 12 months Amount expected to be settled after more than 12 months Total secured borrowings	Consolidated 31 Mar 2021 $'000 30 Sep 2020 $'000 112,891 155,000 1,153,124 1,199,899 (7,763) (9,907)
	1,258,252 1,344,992
	368,343 373,089 889,909 971,903
	1,258,252 1,344,992

Bank loans

Bank loans are secured by fixed and floating charges over the assets of the Group.

The carrying amount of assets pledged as security was $146,041,000 (2020: $148,764,000).

Notes payable

Notes payable are secured by fixed and floating charge over the motor vehicles and equipment that are leased to customers. The carrying amount of assets pledged as security was $1,358,614,000 (2020: $1,389,485,000).

Financing arrangements

The Group had the following borrowing facilities at the end of the reporting period:

Loan facilities drawn at reporting date Bank loan facilities undrawn at reporting date Warehouse loan facilities undrawn at reporting date Total loan facilities	Consolidated 31 Mar 2021 $'000 30 Sep 2020 $'000 1,266,015 1,354,899 114,809 126,648 128,436 216,082
	1,509,260 1,697,629

Financial covenants

The Group has complied with the financial covenants of its borrowing facilities as at 31 March 2021.

Eclipx Group Limited Notes to the financial statements For the half-year ended 31 March 2021 (continued)

4.0 Capital management (continued)

4.2 Derivative financial instruments

Derivative financial instruments are measured at fair value.

Interest rate swaps - cash flow hedges Total derivative financial instrument liabilities Amount expected to be settled within 12 months Amount expected to be settled after more than 12 months Total derivative financial instrument liabilities	Consolidated 31 Mar 2021 $'000 30 Sep 2020 $'000 16,240 28,091
	16,240 28,091
	11,460 15,053 4,780 13,038
	16,240 28,091

4.3 Fair value

4.3 Fair value
Financial liability	31 Mar 2021 $'000	30 Sep 2020 $'000	Fair value hierarchy	Valuation technique and key input
Interest rate swap contracts - cash flow hedges	16,240	28,091	2	The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

A description of the level in the hierarchy is as follows:

Level 2: The fair value of assets and liability that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an asset or liability are observable, these are included in level 2.

There were no transfers between levels for recurring fair value measurements during the period. With the exception of the fixed term loan, fair value of financial assets and financial liabilities approximate the carrying value.

The fixed term loan has a carrying value of $53,570,000 (2020: $53,570,000) and a fair value of $53,629,000 (2020: $52,376,000).

4.4 Dividends

No interim dividends were declared for half-year ended 31 March 2021 (2020: NIL).

5.0 Other

5.1 Related party transactions

For the half-year ended 31 March 2021 there have been no transactions with related parties (31 March 2020: Nil).

5.2 Events occurring after the reporting period

There were no matters or circumstances that occurred since the end of the reporting period that may materially affect the Group's operations, the results of those operations or the Group's state of affairs in future financial years.

Eclipx Group Limited Directors' Declaration For the half-year ended 31 March 2021

In the opinion of the Directors of Eclipx Group Limited:

(a) The interim consolidated financial statements and notes thereto for the half-year ended 31 March 2021 are in accordance with the Corporations Act 2001 , including:
(i) giving a true and fair view of the Group's financial position as at 31 March 2021 and of its performance for the half-year ended on that date; and
(ii) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 ; and
(b) There are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors of Eclipx Group Limited:

==> picture [133 x 40] intentionally omitted <==

Kerry Roxburgh Chairman

Sydney 5 May 2021

==> picture [92 x 68] intentionally omitted <==

Independent Auditor’s Review Report

To the shareholders of Eclipx Group Limited

Report on the Interim Financial Report

Conclusion

We have reviewed the accompanying Interim Financial Report of Eclipx Group Limited.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the Interim Financial Report of Eclipx Group Limited is not in accordance with the Corporations Act 2001 , including:

[giving a true and fair view of the ] Group’s financial position as at 31 March 2021 and of its performance for the Half-year ended on that date; and
[complying with ] [Australian Accounting ] Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

The Interim Financial Report comprises:

[Consolidated statement of financial position as at 31 ] March 2021.
[Consolidated statement of profit or loss and other ] comprehensive income, Consolidated statement of changes in equity and Consolidated statement of cash flows for the Half-year ended on that date
[Notes 1.0 to 5.2 comprising a summary of ] significant accounting policies and other explanatory information
[The Directors’ Declaration. ]

The Group comprises Eclipx Group Limited (the Company) and the entities it controlled at the Halfyear’s end or from time to time during the Half-year.

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report.

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

==> picture [73 x 54] intentionally omitted <==

Responsibilities of the Directors for the Interim Financial Report

The Directors of the Company are responsible for:

the preparation of the Interim Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
such internal control as the Directors determine is necessary to enable the preparation of the Interim Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibilities for the Review of the Interim Financial Report

Our responsibility is to express a conclusion on the Interim Financial Report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the Interim Financial Report does not comply with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 March 2021 and its performance for the Half-Year Period ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of an Interim Financial Report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

==> picture [57 x 25] intentionally omitted <==

KPMG

==> picture [50 x 34] intentionally omitted <==

Peter Zabaks Partner

Sydney 5 May 2021

AI assistant

FLEETPARTNERS GROUP LIMITED — Interim / Quarterly Report 2021

64940_rns_2021-05-05_f4af8f31-c5b2-4dd8-a799-d47e4d18d639.pdf

ASX Release

APPENDIX 4D AND 1H21 FINANCIAL REPORT

ENDS Encl.

APPENDIX 4D HALF‐YEAR REPORT ECLIPX GROUP LIMITED ACN : 131 557 901

HALF‐YEAR ENDED 31 MARCH 2021

1 Details of the reporting period and the previous corresponding period

2 Results for announcement to the market

Commentary

APPENDIX 4D HALF‐YEAR REPORT ECLIPX GROUP LIMITED ACN : 131 557 901

3 Dividends

7 Attachments

8 Signed

Eclipx Group Limited ACN 131 557 901 Interim report for the half-year ended 31 March 2021

Eclipx Group Limited ACN 131 557 901

Half-year report - 31 March 2021

CONTENTS

Eclipx Group Limited Directors' Report 31 March 2021

1. Directors

2. Review of operations

Principal activities

Group financial performance

2. Review of operations (continued)

Net operating income

Operating expenses

Bad and doubtful debts

Cash NPATA

2. Review of operations (continued)

Significant items

Inventory

Finance leases

Operating leases reported as property, plant and equipment

Borrowings and funding

2. Review of operations (continued)

Cash flows

First half segment performance

New Zealand Commercial

2. Review of operations (continued)

3. Dividends

4. Coronavirus COVID-19

Australia and New Zealand Commercial

Novated

4. Coronavirus COVID-19 (continued)

Provision for impairment losses on finance leases and trade receivables

Provision for impairment losses on operating leases

Maintenance revenue

Impairment of non-financial assets

Summary of COVID-19 overlays

Eclipx Group Limited Directors' Report 31 March 2021 (continued)

5. Going concern

6. Subsequent events

7. Lead auditor's independence declaration

8. Rounding of amounts

9. Treasury shares

10. Change in corporate affairs

11. Stakeholders

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Eclipx Group Limited

Eclipx Group Limited

Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 March 2021

Eclipx Group Limited Statement of Financial Position As at 31 March 2021

Eclipx Group Limited Statement of Changes in Equity For the half-year ended 31 March 2021

Eclipx Group Limited Statement of Cash Flows For the half-year ended 31 March 2021

1.0 Introduction to the report

1.1 Statement of compliance and basis of preparation

(a) Basis of preparation

(b) Significant accounting estimates and judgements

1.2 New, revised or amended Accounting Standards and Interpretations adopted

1.3 Coronavirus (COVID-19) pandemic

1.3 Coronavirus (COVID-19) pandemic (continued)

Provision for impairment of operating leases reported as property, plant and equipment

Provision for impairment losses on finance leases and trade receivables

Maintenance revenue

Goodwill

1.4 Going Concern

2.0 Business result for the period

2.1 Segment information

31 March 2021

FLEETPARTNERS GROUP LIMITED Interim / Quarterly Report 2021