HUMM GROUP LIMITED — AGM Information 2019

Nov 14, 2019

15 NOVEMBER 2019

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2019 Annual General Meeting.

A flexigroup 2019 AGM

2019 ANNUAL GENERAL MEETING

Chairman’s address Andrew Abercrombie

flexigroup 2019 AGM

1

2019 ANNUAL GENERAL MEETING

CEO’s address Rebecca James

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CEO’S ADDRESS

Our focus.

4 strategic pillars

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1. 2. 3. 4.
Simplify Lead Streamline Expand
our offering to in Buy Now Pay Later originations with instant our reach
build profitability and (after all, we started it…) credit decisions
our target market, our
brand strength
audience, our relevance
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flexigroup 3 2019 AGM

CEO’S ADDRESS

1. Simplify

Simplify our offering to build profitability and brand strength.

4 flexigroup 2019 AGM

CEO’S ADDRESS

From this:

Too many ‘invisible’ brands… Market confusion… No back-end integration… Team and system inefficiency…

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Education Leasing

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flexigroup 5 2019 AGM

CEO’S ADDRESS

To this:

Buy Now Pay Later

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Consolidates Oxipay and Certegy Ezi-Pay

Three clear propositions. Unique, recognisable brands.

Credit cards

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Consolidates Skye, Once, Lombard and Q

SME Lending

lease money

Pivot to focus on SME Leasing Consumer Leasing brands to be grandfathered New interest free instalment product announced today Commercial Leasing review underway with focus on Managed Services growth

flexigroup 6 2019 AGM

CEO’S ADDRESS

Simplify Products

Simplify Systems

Simplify Service

Simplify Operations

• ✓Moved from 12 products to 5 in consumer finance.

• ✓Launched humm in April.

• ✓Simplification of commercial business underway with focus on a SME audience and Managed Services business.

✓50 FTE removed from call centre and back office functions.

• ✓Architectural roadmap in place to reduce:

• 6 product systems to 1 web origination platform.

✓Introduced webchat, reducing call volumes by 20% with an average customer service rating of +90%.

• 3 buyer management systems to 1 CRM system.

• 3 fraud engines to 1 fraud platform.

• ✓Introduced apps for BNPL and Cards allowing customers to self serve.

• 7 credit decisioning BNPL and Cards allowing

• instances to 1 platform that customers to self serve.

• is scalable for growth and ✓4.6 star rating in the App

• works across markets. store.

✓Organisational realignment complete.

✓Moving to centres of excellence and removing geographical duplication in roles and functions.

✓Introduction of new roles in: Innovation, Digital and Data, and Portfolio Optimisation.

✓$7M cost out target for FY20 in place.

Improving service and reducing cost to income to <40% over 3 years

7 flexigroup 2019 AGM

CEO’S ADDRESS

2. Lead

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Lead in Buy Now Pay Later. flexigroup 8 2019 AGM

CEO’S ADDRESS

• hummmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmmmmmmmmmmmmmmmmm

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flexigroup 9 2019 AGM

CEO’S ADDRESS

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18,000 places to shop with humm

Differentiated proposition of interest free spending from $1-$30,000 is resonating with key verticals:

POS Integrations: PC Eftpos, Quest Payment Solutions, Advance Retail, Magenta POS, Tower Systems, Retail Edge, Vend, Kitomba POS, Harmony, Software of Excellence and many more. Ecommerce Integrations: Magento, Big Commerce, Woo Commerce, Shopify, Salesforce Commerce Cloud, OpenCart, PrestaShop and many more.

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14%
Health
15% 24%
Auto 18,000 Home
places to
shop with
humm
47%
Retail
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In FY20 we’ve seen…

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customers 132,000 added to the platform

Transactions +35% 1

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‘Little things’ transactions <$2,000

• Volume +84%[1]

• Average transaction value $386

‘Big things’ transactions up to $30,000

• Volume +10%[1]

• Average transaction value $4,238

4.6 star rating in the App store

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1. FY20 YTD vs PCP.

flexigroup 10 2019 AGM

CEO’S ADDRESS

3. Streamline

Streamline originations with instant credit decisions.

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CEO’S ADDRESS

Significant progress made in transitioning to one platform that is product agnostic and scalable for growth.

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One enhanced collections New credit score cards in system in place for all products. place for AU and NZ Cards.

Partnership entered with Comprehensive GBG to deploy latest fraud Credit Reporting deployed. detection tools.

12 flexigroup 2019 AGM

CEO’S ADDRESS

4. Expand

Expand our reach, our target market, our audience, our relevance.

flexigroup 13 2019 AGM

CEO’S ADDRESS

• Covering the market of digital spenders.

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The The The The The
Balancer. Amplifier. Shopper. Nomad. Founder.
Lives for the moment. Lives life by making what Lives a lifestyle Lives life prioritising Lives to create,
they have go further. to enjoy. new experiences. build, grow.
lease
money
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CEO’S ADDRESS

Welcome to the snooze economy.

Buy everything, everywhere with bundll and pay later. It’s Interest Free. It’s BNPL in your pocket.

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$ $
250.00 250.00
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Shop bundll all your weekly Get two weeks to pay bundll. purchases into one place. your

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Snooze

Not ready to pay? Use a snooze to delay payment another two weeks.

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Superbundll

Need more time? Switch up to a Superbundll and repay in six fortnightly repayments over 12 weeks.

flexigroup 15 2019 AGM

CEO’S ADDRESS

A card designed for the dedicated shopper.

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Add to cartt: and enjoy up to 90 days interest free.

Add to cartt: and dodge foreign transaction fees. Add to cartt: and switch to a 9, 12, or 15 month interest free instalment plan.

Add to cartt: and receive an instant decision to have your card instantly provisioned into your digital wallet.

flexigroup 16 2019 AGM

CEO’S ADDRESS

SME Lending.

There are approximately 2.3 million small businesses in Australia and 580K in New Zealand and cash flow is their biggest concern. B2B ecommerce is set to . become double the size of the B2C online market over the next 2 years[1]

We’re introducing two new solutions to address these pain points:

lease

The first digital, integrated leasing platform in Australasia.

money Interest free business instalments meets the digital wallet.

• Focus on <$100K.

• Lease quotes delivered in real time, and can be tracked and revisited at any time, including adding margins and bundling assets from a range of suppliers.

• Launched in New Zealand with Harvey Norman, Ingram Micro and Office Max.

• Up to $30K instant approval.

• flexigroup’s existing ecosystem will make this the most flexible and widely accepted business instalment product across Australia and New Zealand.

• Virtual card with inbuilt spend controls, allowing staff to make purchases without the business owner losing control.

• Launching FY20.

• Business Wire ‘Global B2B Payment Trends 2018’.

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CEO’S ADDRESS

The year ahead.

flexigroup 2019 AGM

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CEO’S ADDRESS

A digital spending powerhouse, helping people buy everything, everywhere, every day.

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flexigroup 19 2019 AGM

2019 ANNUAL GENERAL MEETING

Item 1.

Financial Report, Directors’ Report and Auditor’s Report

“

To receive and consider the Financial Report, Directors’ Report and Auditor’s Report of the Company for the financial year ended 30 June 2019.

flexigroup 20 2019 AGM

2019 ANNUAL GENERAL MEETING

Item 2.

Remuneration Report

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“ That the Remuneration Report (which forms part of the Directors’ Report) for the financial year ended 30 June 2019 be adopted.

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2019 ANNUAL GENERAL MEETING

Item 2. Remuneration Report: Voting Exclusion Statement

1. In accordance with sections 250R and 250BD of the Corporations Act 2001 (Cth) (Corporations Act), subject to paragraph

2. 2, a vote must not be cast (in any capacity) on the resolution in Item 2 by or on behalf of a member of the Company’s key management personnel (KMP) (including the Directors) details of whose remuneration are included in the Remuneration Report or their closely related parties (such as close family members or any controlled entities), regardless of the capacity in which the votes are cast except that a vote may be cast on the resolution in Item 2 by a KMP, or a closely related party of a KMP if the vote is cast as a proxy appointed in writing that specifies how the proxy is to vote on the resolution in Item 2 and the vote is not cast on behalf of a KMP or their closely related parties.

3. If you appoint the Chairman of the 2019 AGM as your proxy, and you do not direct your proxy how to vote on the resolution in Item 2 on the proxy form, you will be expressly authorising the Chairman of the 2019 AGM to exercise your proxy, even though Item 2 is connected directly or indirectly with the remuneration of the Company’s KMP, which includes the Chairman.

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2019 ANNUAL GENERAL MEETING

Item 2.
Remuneration Report:
Proxy Numbers
For	–	181,872,124	98.69%
Against	–	1,229,656	0.67%
Open(at Chair’s discretion)	–	1,191,676	0.65%
Abstain	–	1,385,452	<0.01%

flexigroup 23 2019 AGM

2019 ANNUAL GENERAL MEETING

Item 3. Re-election of Rajeev Dhawan To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“ That Rajeev Dhawan, who retires in accordance with ASX Listing Rule 14.5 and Article 103(a) of the Company’s constitution, and being eligible, be re-elected as a Director of FlexiGroup Limited.

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2019 ANNUAL GENERAL MEETING

Item 3. Re-election of Rajeev Dhawan: Proxy Numbers

For	–	261,827,187	94.52%
Against	–	13,942,317	5.03%
Open(at Chair’s discretion)	–	1,246,863	0.45%
Abstain	–	1,464,089	<0.01%

flexigroup 25 2019 AGM

2019 ANNUAL GENERAL MEETING

Item 4. Election of AM John Wylie To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

AM “ That John Wylie , having been appointed as an additional Director since the last Annual General Meeting be elected as a Director of FlexiGroup Limited.

flexigroup 26 2019 AGM

2019 ANNUAL GENERAL MEETING

Item 4. AM: Election of John Wylie Proxy Numbers

For	–	254,878,334	94.76%
Against	–	12,864,643	4.78%
Open(at Chair’s discretion)	–	1,227,863	0.46%
Abstain	–	1,464,038	<0.01%

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2019 ANNUAL GENERAL MEETING

• Item 5. Approval of participation in the FlexiGroup Long Term Incentive Plan and Termination Benefits

To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“ That for the purposes of ASX Listing Rule 10.14 and section 200B of the Corporations Act 2001 (Cth) and for all other purposes, approval is given for the grant of 4,454,104 Options to Ms Rebecca James under the Long Term Incentive Plan (LTIP) and the provision of benefits to Ms James under the LTIP including in connection with Ms James ceasing to hold a managerial or executive office in the Company, on the terms described in the Explanatory Notes accompanying and forming part of this Notice of Meeting.

flexigroup 28 2019 AGM

2019 ANNUAL GENERAL MEETING

Item 5. Voting Exclusion Statement

For the purpose of ASX Listing Rule 14.11, the Company will disregard any votes cast in favour of Item 5 by any Director of flexigroup who is eligible to participate in the LTIP, the CEO, and any associate of any such person. However, the Company need not disregard a vote if it is:

• (a) cast by a person as a proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or

• (b) cast by the person chairing the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides.

For the purpose of section 250BD of the Corporations Act:

1. a vote must not be cast on Item 5 by a KMP, or a closely related party of a KMP, acting as a proxy, if their appointment does not specify the way the proxy is to vote on Item 5. However, this voting exclusion does not apply if the KMP is the Chairman of the 2019 AGM acting as proxy and their appointment expressly authorises the Chairman of the 2019 AGM to exercise the proxy even if that item is connected directly or indirectly with the remuneration of a member of the KMP; and

2. if you appoint the Chairman of the 2019 AGM as your proxy, and you do not direct your proxy how to vote on Item 5 on the proxy form, you will be expressly authorising the Chairman of the 2019 AGM to exercise your proxy even if Item 5 is connected directly or indirectly with the remuneration of a member of the KMP, which includes the Chairman of the 2019 AGM.

flexigroup 29 2019 AGM

2019 ANNUAL GENERAL MEETING

Item 5. Approval of participation in the FlexiGroup Long Term Incentive Plan and Termination Benefits: Proxy Numbers

– For 274,093,678 98.89% – 1,849,548 0.67% Against – 1,218,374 0.44% Open (at Chair’s discretion) – Abstain 1,318,856 <0.01%

flexigroup 30 2019 AGM

Thank you

flexigroup 31 2019 AGM