HUMM GROUP LIMITED — AGM Information 2017

Nov 26, 2017

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Annual General Meeting

Monday 27 November 2017

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Chairman’s address: Andrew Abercrombie

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CEO’s address: Symon Brewis-Weston

• FY2017 - transitional year

• Cash NPAT result achieved in line with guidance

• Focus on digitisation and streamlining products

• Significant changes to core platforms and processes, focusing on underperforming units

• First 4 months of FY18 trading in line with expectations

• Certegy results encouraging with digitisation program starting to roll out to market

• Reaffirming FY2018 Cash NPAT guidance - $85–90m

FY17 results delivered on guidance – as we invest for growth

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• Cash NPAT Volume
$90.3m $1,949m
• (4%) +54%
$94.1m $90.3m $1,268m $1,949m
FY16 FY17 FY16 FY17
•
•
Closing Receivables ROE %
•
$2,047m 14%
+9% (4%)
• $1,874m $2,047m 18% 14%
FY16 FY17 FY16 FY17
•
Cash EPS (Cents) Statutory NPAT
•
24.9 $87.4m
(11%) +74%
28.0 24.9 $50.2m $87.4m
FY16 FY17 FY16 FY17
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Growth investments delivered in FY17

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• Launched Flight Centre relationship in Australia and co-branded card in New Zealand - sales above target

Sales and Marketing Skills and Capability

• Commercial managed services offering to market – tier 1 consulting firm signed. Lenovo partnership established

• • Developed & launched Oxipay as online offering and moving in store in AU and NZ, signed 549 retailers • Flexi-Fi Launched in Ireland, 60 retailers with 600 in trial

• New Management team embedded and driving the business

• Strong new director appointments in AU and NZ have broadened Board skills, experience and independence

• • Recruiting Chief Customer Officer and Chief Information Officer

• Data and analytics team embedded

• Social media and digital team established

• Digitised AU cards online origination platform creating market leading experience

Products

• Finalising exit of unprofitable non-core business and realignment of program agreements

• Developed clear strategy and commenced migration of AU cards onto NZ platform

• • Built strategic API capability

• Enhanced collections investment has led to improved impairments and reduced arrears from 9.1% to 8.6% of total receivables

• • Third party consultants validated that risk modelling and data capture processes remain a key strength • New Chief Risk Officer embedding improved risk culture

• Collections and Risk • New Chief Risk Officer embedding improved risk culture • Significant enhancement of internal risk control environment • Improved funding facility, with lower capital contribution and funding costs to support growth in the AU Cards business

• Regulatory and •• New independent directors appointed in AU and NZPro-active approach to pre-empting legislative and regulatory changes Governance • Group Asset and Liability Committee upskilled

• Project governance structure created to drive oversight of strategic project execution

Six key strategic priorities identified for driving cash NPAT

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PRIORITY	KEY INITIATIVES	DUE DATE
Digitise	• Simplify and consolidate front and back end platforms • Move to two core operating platforms across AU & NZ • Invest in CRM and data analytics technology • End to end digitsation of Certegy and consumer leasing	Q3-Q4’18
Consolidation of consumer business	• Centralise marketing to leverage investment & capability • Create one Australian consumer sales team, leveraging deep retailer relationships • Target growth of existing book • Centralise data management	Q2’18 Q2’18 Ongoing Q3’18
Enter new segments & launch new products	• New AU card launch • Certegy – Entering professional services, home services, dental and many others • Commercial – Managed services and subscription models	Q3’18 Ongoing Ongoing
Build cross sell capability	• Oxipay is a low cost customer acquisition engine • Build CRM capability and expertise • Drive product cross sell to generate incremental income	Q4’18
Refocus commercial and leasing	• Digitise front and back end • Leverage trans Tasman relationships	Q3’18 Ongoing