HUMM GROUP LIMITED — Earnings Release 2021

Aug 18, 2021

FY21 RESULTS // 19 AUGUST 2021

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RESULTS // 2021

REBECCA JAMES // CEO ADRIAN FISK // CFO

19 AUGUST 2021

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Authorised for release by the humm group Board of Directors humm group limited ACN 122 574 583 Level 1, 121 Harrington St, The Rocks, Sydney NSW 2000

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FY21 RESULTS // 19 AUGUST 2021

AGENDA.

01. FY21 key highlights 02. Strategy update 03. Commercial update 04. FY21 group financials 05. Summary 06. Appendices

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FY21 RESULTS // 19 AUGUST 2021

humm group // Buy on your terms

We’re liberating people from a ‘one size fits all’ approach.

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We are on a mission to revolutionise the wa eo le bu . y p p y

We enable seamless approvals for purchases, big, small or business related. Empowering consumers to choose how they wish to pay, with terms from five fortnights through to five years.

Today 2.7 million customers entrust us to help them buy, and pay over time. And we’re just getting started.

In 2H21 we launched humm in the UK and will be live in Canada by 1H22. We secured our first global partnership with Westpac NZ. These partnerships are being pursued around the globe.

As we grow internationally, we’re putting significant firepower into our marketing efforts and product experience, actively shaping how people will buy in the future.

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FY21 RESULTS // 19 AUGUST 2021

FY21 KEY HIGHLIGHTS.

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FY21 RESULTS // 19 AUGUST 2021

FY21 key highlights //

$68.4 million Cash NPAT

+121%

2.7 million Customers +20%

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$108 million
Cash balance1
FY20: $15m
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3.5% Net loss/ANR -60bps

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$1,035 million
BNPL volume
+31%
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$540 million Commercial volume +56%

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1. Non-restricted cash at bank.
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FY21 RESULTS // 19 AUGUST 2021

STRATEGY UPDATE.

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FY21 RESULTS // 19 AUGUST 2021

Strategy for growth //

New audiences New products New partnerships Finding new audiences through partnerships forour innovative products

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Driving customer Expanding the International
reach of
engagement expansion
instalment
payments
Driving customer New merchants and Expansion into
engagement and transaction platforms in current markets new markets
frequency
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1 // NEW AUDIENCES NEW PRODUCTS NEW PARTNERSHIPS

FY21 RESULTS // 19 AUGUST 2021

An interest free instalment product // for every purchase occasion

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42 transactions per customer p.a.
Buy your way
‘Big things’
A line of credit with the
1 transaction per customer p.a.
flexibility to convert to
fixed instalments
Buy over time
Used for a specific Buy for
purchase at a business
specific merchant
Buy everywhere
‘Little things’
every day
5 transactions
97 transactions per
per customer p.a.
customer p.a.
FREQUENCY AND ACCESSIBILITY
MARGIN
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FY21
Current cross-sell
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18% overlap between humm (‘Big things’ and ‘Little things’) 25% of bundll customers have humm 3% overlap between Cards and humm ` Cross-sell activities to increase in the future

19 transactions per customer p.a.

1. Transaction data represents Australian consumer products only excluding humm pro for FY21.

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1 // NEW AUDIENCES NEW PRODUCTS NEW PARTNERSHIPS

FY21 RESULTS // 19 AUGUST 2021

//[Enterprises looking to BNPL for ] customer engagement and retention

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BANKS LOYALTY PROGRAMS RETAILERS ISSUERS ` A subsidiary of Westpac New Zealand Banks partnering with BNPL Loyalty programs partnering Merchants looking to BNPL Issuers partnering with BNPL to attract Millennials and with BNPL to drive to drive sales in changing payments Gen Z engagement landscape

Targeting 250k customers by FY22 across all partnership channels

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2 // DRIVING CUSTOMER ENGAGEMENT

FY21 RESULTS // 19 AUGUST 2021

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// More places to shop

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1. Figures relate to humm AU, NZ and IE transaction volumes for FY21.

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3 // EXPANDING THE REACH OF INSTALMENT PAYMENTS

FY21 RESULTS // 19 AUGUST 2021

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//

New BNPL products growing rapidly

BNPL VOLUME[1] (A$M)

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561
+66%
337
1H19 2H19 1H20 2H20 1H21 2H21
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BNPL ‘BIG THINGS’ VOLUME [2] (A$M)
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+7%
321
300
1H19 2H19 1H20 2H20 1H21 2H21
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BNPL ‘LITTLE THINGS’ VOLUME [3] (A$M) ‘BUNDLL & HUMMPRO’ VOLUME (A$M) (QUARTERLY)
+311% +899%
149 49
36
5
1H19 2H19 1H20 2H20 1H21 2H21 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
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1. BNPL includes humm AU, NZ, IE, bundll and humm pro and legacy Flexirent Ireland. 2. humm ‘Big things’ AU, NZ and IE. 3. humm ‘Little things’ AU, NZ and IE.

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3 // EXPANDING THE REACH OF INSTALMENT PAYMENTS

FY21 RESULTS // 19 AUGUST 2021

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// Reinvigorated and rebranded

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BRAND NO FEES CRUSH OVERSEAS

HUMM90WRAP

60 MONTHS LTIF

Pay zero FX fees, whenever, wherever in the world you shop.

Convert purchases Enjoy up to 60 of $250 or more to months LTIF an Instalment Plan finance at key for a small fee. retail partners.

Enjoy 10% cashbacks at crush-worthy brands every single week.

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Australia
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New Zealand [1]
~58% of balances are interest ~60% of balances are interest
bearing ` bearing
42 transactions per year in FY21 33% of new credit cards issued in
(FY20: 30 transactions) 4Q21 across New Zealand market
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• 33% of new credit cards issued in 4Q21 across New Zealand market 1. New Zealand Cards not branded humm 90.

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4 // INTERNATIONAL EXPANSION

FY21 RESULTS // 19 AUGUST 2021

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// International expansion

Digital and customer-centric solutions that offer fixed term instalments like humm are increasingly being considered and utilised by retailers across the globe for financing.

OUR APPROACH

• Differentiated offering in bigger ticket, longer term instalment plans.

• Target bank issued white label retail store credit cards which are contracting quickly in these markets.

• Leverage the success of our Ireland BNPL offering including technology stack.

• Build on our partnerships and integration strategy.

SOFTWARE PARTNERSHIPS AND INTEGRATION

• Home and home improvement: targeting trade platforms combined with a superior customer experience around in-home sales.

• Health: global practice management software integrations in dental and veterinary.

• Automotive: quoting engines for automotive repairs and servicing.

Software partnerships and integration can scale rapidly with minimal investment.

$1.9t

Total addressable market

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$77b $91b $349b $613b $778b

Target verticals addressable markets (CA & UK) `

A$161.3B[1,2]

Home & Home Improvement

Australia Health A$159.3B[3-7] Automotive New Zealand A$85.0B[8] Luxury A$14.7B[9]

Ireland

1. Statista. 2. Ibis. 3. Statistics Canada. 4. United Kingdom Office of Statistics. 5. PwC. 6. PwC. 7. Central Statistics Office, Ireland. 8. Ibis. 9. Statista.

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4 // INTERNATIONAL EXPANSION

FY21 RESULTS // 19 AUGUST 2021

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// International expansion

UNITED KINGDOM

ESTABLISH BOARD AND LOCALISE THE PLATFORM LAUNCH LAUNCH LAUNCH SCALE IN MANAGEMENT TEAM ‘LITTLE THINGS’ ‘MID THINGS’ ‘BIG THINGS’ KEY VERTICALS Board and Full credit Pay in 5 Pay in 12 Up to 60 months Focus on key industry key management and affordability £500 ` Up to £3,000 Up to £20,000 verticals such as luxury personnel hired checks in place Available October Expected January retail, home improvement, Awaiting regulatory health and auto approval Key management BNPL offerings for Launch on track for 1H22, Focus on key industry personnel hired the broadest from ‘Little things’ to ‘Big verticals such as luxury customer cohort things’ retail, home improvement, health and auto FY22 forecast Cash NPAT: A$-12m to $-14m FY22 forecast volume: ~A$150m Investments in platforms, marketing, people and credit performance. Subject to regulatory approvals.

SIGNED RETAIL MERCHANTS 300+ retailers to date `

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200 800 brands retail locations

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FY21 RESULTS // 19 AUGUST 2021

COMMERCIAL UPDATE.

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FY21 RESULTS // 19 AUGUST 2021

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flexicommercial broker channel // Invest and grow

KEY AUSTRALIAN BUSINESS HIGHLIGHTS

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TOP 3 ASSETS FINANCED MARKET LEADING SERVICE
DRIVEN BY TECHNOLOGY
Transport Construction Light commercial
vehicles
~45%
of deals decisioned
on same day`
~$75k 4,300+ 549 2nd
~35%
average deal customers brokers with one largest NBFI commercial of approved deals
size in FY21 served in FY21 or more deals in FY21 asset finance lender [1] are automated
(FY20: 343)
1. Based on information from aggregators.
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FY21 RESULTS // 19 AUGUST 2021

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//

AUSTRALIA COMMERCIAL

Successfully refocused the AU business.

• Strategic review completed with recommendation to invest and grow the flexicommercial broker channel following successful refocusing of the business, favourable market conditions and strong business momentum.

• Operating income of $50.5m increased 50.6% on FY20.

• Continued growth in operating income as focus has successfully shifted to SME lending through the broker channel.

• Increased capital efficiency with capital deployed as a proportion of the portfolio declining materially following the asset-backed securities (“ABS”) transaction of $450.0m in March 2021.

• Initial capital deployed in respect of the March 2021 ABS transaction of 6.5%.

• Exploring introduction of mezzanine debt into the warehouse facility which will lead to a further improvement in capital efficiency.

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29% 28% 29%
27%
25%
17%
` $27.0m
$23.5m
$20.5m
$17.8m
$16.3m $15.7m
1H19 2H19 1H20 2H20 1H21 2H21
Operating income
Capital employed as a % of net receivables before bad debt
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FY21 RESULTS // 19 AUGUST 2021

FY21 GROUP FINANCIALS.

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FY21 RESULTS // 19 AUGUST 2021

hummgroup ($m)1	FY21	FY20	v PCP
Gross income	443.9	478.9	(7.3%)
Net operating income	342.9	361.0	(5.0%)
Marketing expense Operating expenses	(30.0) (156.9)	(23.7) (152.8)	26.6% 2.7%
Impairment losses on customer loans	(58.7)	(145.2)	(59.5%)
Tax expense	(28.9)	(8.4)	LRG
Cash NPAT	68.4	30.9	121.1%
Add: Non-cash items1	(8.3)	(7.8)	6.4%
Statutory NPAT	60.1	23.1	160.2%
Dividend	–	3.85	–
Key metrics
Volume	2,687	2,483	8.2%
Cost to income ratio	54.6%	49.0%	560bps
Cost to income ratio excluding marketing and depreciation	39.1%	38.0%	110bps
EPS2 ROE2	13.7 10.2%	7.3 5.1%	87.7% 510bps

1. The profit and loss statement and breakdown of non-cash items can be found in the appendices.

Financial performance.

• Gross income of $443.9m, down 7.3% with growth in Australia Commercial and numerous BNPL products offset by a decline in Cards receivables, margin compression in a competitive environment, lower fee and other income and the runoff of legacy products.

• Net operating income of $342.9m as gross income decline was offset by lower interest expense of $15.1m from strong balance sheet management including the benefits from competitive pricing in securitisation markets, and the repayment of all corporate debt.

• Impairment losses on customer loans of $58.7m, down 59.5% as a result of lower net loss of $20.1m and a $21.6m benefit from releasing a portion of the COVID-19 overlay.

• COVID-19 overlay provision balance as at 30 June 2021 of $21.6m, down 50.0%. `

• • Cash NPAT of $68.4m, up 121.1%.

• Earnings per share and return on equity up as a result of strong Cash NPAT performance notwithstanding the impact of the capital raise in 1H21.

Dividends.

• humm group’s strong balance sheet is an important competitive asset in the rapidly evolving consumer finance sector.

• While the Board has determined not to pay a final dividend for FY21, it continues to review the position on dividends and capital management.

• Our strong profitability, cash generation and continued successful securitisations mean that the business can balance the competing objectives of growth and shareholder distributions in the future, recognising the different priorities of investors.

• EPS and ROE calculated based on Cash NPAT.

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FY21 RESULTS // 19 AUGUST 2021

Buy Now Pay Later //

Investment for growth.

• Cash NPAT of $1.2m (FY20: $-2.7m), impacted by investments in new products and markets of: – $-15.8m in FY21 for bundll and humm pro (FY20: $-8.8m)

• $-5.8m in FY21 for humm New Zealand, United Kingdom and Canada (FY20: $-3.0m).

• Volume of $1,034.9m, up 31.3% (FY20: $788.4m) reflecting strong performance in humm Australia, particularly in ‘Little things’, humm Ireland, and the increasing contribution from bundll .

• FY21 humm online volume of $244.0m increased by 184.8% in line with the shift to online spending as a result of the pandemic.

• Gross income of $120.6m (FY20: $121.7m) with humm Australia income lower due to margin compression from increased competition and reduced fee income from older Certegy contracts, partly offset by growth in humm ‘Little things’ and bundll transactions.

• Net operating income of $90.8m (FY20: $94.8m) due to a $4.3m increase in origination costs, predominantly as a result of spend to attract merchants and customers to humm , partly offset by interest expense down $1.4m driven by lower cost of funds.

• Impairment losses of $33.2m, down 34.3% (FY20: $50.5m) despite volume growth, largely driven by a decrease in net loss of $10.3m and the reversal of expected credit loss provisions excluding model and macro overlays in FY21.

• Operating expenses excluding marketing of $41.9m, up 11.4% (FY20: $37.6m) and in line with increased activity in BNPL including investment in overseas expansion and development of products and systems.

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$22.8m
+31%
$21.6m
` Investments in
$9.1m new products and
new markets
$1,035m
$788m
$11.8m
Investments in
new products and
new markets
$1.2m 144%
FY20 FY21 FY20 FY21
$(2.7m)
VOLUME CASH NPAT
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1. bundll has been reclassified from Cards segments to BNPL and

humm pro has been reclassified from Commercial and Leasing in FY20.

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FY21 RESULTS // 19 AUGUST 2021

Cards //

Strong profitability.

Australia Cards Cash NPAT for FY21 of $16.8m, up 121.1% with:

• Volume down by 30.1% due to COVID-19 impacts on merchant activity, particularly in travel.

• Gross income of $91.1m, down 20.6% (FY20: $114.8m), largely as a result of a reduction in interest bearing balances and fee income from paydowns, predominantly in the discontinued Lombard and Once products with humm 90 interest bearing balances broadly steady over FY21.

• Net operating income of $68.7m, down 17.1% (FY20: $82.9m) from the decline in gross income, partially offset by a decrease in interest expense of 28.2%.

• Impairment losses of $1.9m, down 94.4% (FY20: $33.9m), driven by the partial release of the COVID-19 provision from significant reduction in customers in hardship and lower net loss of $9.1m.

• Closing customer loans of $454.9m, down 21.3%, in line with volume and paydown activity.

New Zealand Cards Cash NPAT for FY21 of $28.1m, up 28.9% with:

• Volume down by 7.4% due to the impact of COVID-19, largely on long-term interest free travel merchant activity with everyday spend up.

• Gross income of $135.4m, down 7.3% (FY20: 146.1m) from lower interest, fee and insurance income.

• Net operating income of $107.3m, down 0.8% (FY20: $108.2m) as lower gross income was offset by a decrease in interest expense of 27.1%.

• Impairment losses of $19.4m, down 42.6% (FY20: $33.8m), largely from the partial write back of COVID19 provision reflecting improvements in economic outlook.

• Closing customer loans of $639.9m, down 8.7% and in line with decrease in volume.

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AU CARDS
121%
$597m
(30%)
$434m
$16.8m
$417m
$7.6m
$163m
TRAVEL
FY20 FY21 FY20 FY21
VOLUME CASH NPAT
`
NZ CARDS
29%
(7%)
$28.1m
$751m
$21.8m
$695m
FY20 FY21 FY20 FY21
VOLUME CASH NPAT
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FY21 RESULTS // 19 AUGUST 2021

Commercial and Leasing //

Benefits of a diversified portfolio.

• Cash NPAT of $22.3m, up 431.0% in (FY20: $4.2m).

• Volume up 55.6% driven by strong origination growth in Australia, solidifying the strategy to focus on lending via the broker channel.

• Strong credit quality in 1H21 SME lending maintained in 2H21 while increasing volumes significantly.

• Net operating income of $76.1m, up 1.3% (FY20: $75.1m), with growth in Australia Commercial of 47.0% predominantly offset by the run-off of the Consumer Leasing portfolio. Interest expense remained broadly similar despite the significant increase in volume and is reflective of lower funding costs.

• Impairment losses of $4.2m, down 84.4% (FY20: $27.0m) as net loss decreased $3.1m and the partial release of the COVID-19 provision. This performance is a result of improved credit decisioning.

• Operating expenses excluding marketing of $40.2m, down 3.1% (FY20: $41.5m) from the reduced costs associated with the Consumer Leasing product in run-off, offset by the increased activity in AU Commercial.

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56%
431%
`
$540m
$22.3m
$347m
$4.2m
FY20 FY21 FY20 FY21
VOLUME CASH NPAT
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FY21 RESULTS // 19 AUGUST 2021

Operating expenses //

Increased investments for growth.

• FY21 operating expenses of $186.9m, up 5.9% on FY20.

• Payroll expense down $3.9m. This includes removal of duplicate roles and functions and an increase in Government incentive payments of $3.3m, partially offset by normalised level of employee incentive payments.

• Other operating expenses up $0.9m with higher cost associated with investment in overseas expansion activities, partially offset by reducing 20 products to four.

OPERATING EXPENSES FY21 VERSUS FY20 (A$M)

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186.9
7.1
6.3
176.5 3.9
0.9
`
FY20 Payroll Other opex Marketing D&A 1 FY21
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• Marketing expenses of $30.0m, up $6.3m, from the investment in increasing brand awareness.

• Depreciation costs of $22.9m, up $7.1m on FY20 reflecting investment in new product development.

• Cost base excluding marketing and depreciation decreased in FY21 although cost to income ratio impacted by net operating income decrease.

• Investment in international expansion will drive a moderate short-term increase in the cost to income ratio, with a continued focus on reducing core operational costs.

• Depreciation and amortisation.

• Cost to income is calculated on a Cash NPAT basis by dividing total expenses (operating, marketing, employment, depreciation and amortisation) by net operating income (gross income, less interest expense and direct cost of origination).

• Operating expenses in commentary based on Cash NPAT.

COST TO INCOME RATIO[2]

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55%
48%
49%
44%
46%
41% 42%
39%
38%
FY19 FY20 FY21
CTI reported CTI - ex marketing CTI - ex marketing and depn
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FY21 RESULTS // 19 AUGUST 2021

Net loss and provisions //

Credit performance driving provision reduction.

Net loss[1] of $88.9m, down 18.4%:

• BNPL down $10.3m despite volume growth with the continued benefit from investments in a scalable credit origination engine including the bespoke BNPL serviceability model.

• AU Cards down $9.1m from high paydown in discontinued products and improved credit and group fraud controls.

• NZ Cards up $2.5m with greater receivables being generated by new open loop scheme cards with higher loss rates than legacy closed loop books which had very low loss rates.

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NET LOSS MOVEMENT (PRE-TAX) ($M)
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109.0
10.3
9.1
2.5 3.1
88.9
FY20 BNPL AU Cards NZ Cards Commercial and FY21
` Leasing
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COVID-19 OVERLAY BALANCE MOVEMENT (PRE-TAX) ($M)
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• Commercial and Leasing down $3.1m despite strong volume growth as a result of investment in credit decisioning.

COVID-19 overlay[2] provision on balance sheet as at 30 June 2021 of $21.6m, down 50.0%:

• BNPL up $0.9m with reversal of humm provisions offset by an increase in provisions against new products including bundll .

• NZ Cards down $4.9m reflecting improvements in economic outlook.

• AU Cards and Commercial and Leasing provision reversal in line with portfolio performance.

• Net loss comprises gross write offs less bad debt recoveries.

• Macro and other overlays.

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0.9 11.4
43.3
4.9
6.3
21.6
FY20 BNPL AU Cards NZ Cards Commercial and FY21
Leasing
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FY21 RESULTS // 19 AUGUST 2021

Credit risk management //

Portfolio continuing to improve.

BNPL

• Net loss/ANR down 190bps to 4.4%.

• Lower net loss driven by reduced humm ‘Big things’ arrears and portfolio performance from improvements to the credit decisioning engine and improvement of group fraud controls.

AUSTRALIA CARDS

• Net loss/ANR down 20bps to 4.3% due to strong credit performance, especially in discontinued products, offset by a decrease in receivables. The decline in receivables arose from higher levels of repayment.

NEW ZEALAND CARDS

• Net loss/ANR up 80bps to 4.0%, reflecting the Mastercard® Scheme portfolio performance and reduction in receivables.

COMMERCIAL AND LEASING

• Net loss/ANR down 90bps to 1.6% despite strong receivables growth from SME lending reflecting higher credit quality in Australia Commercial.

GROUP

• Net loss/ANR down 60bps to 3.5% with all portfolios improving except NZ Cards.

NET LOSS/ANR

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BNPL 5.7% 6.3% 4.4%
FY19 FY20 FY21
5.0%
AU CARDS 4.5% 4.3%
FY19 FY20 FY21
`
2.1%
4.0%
NZ CARDS 3.2%
FY19 FY20 FY21
2.5%
COMMERCIAL 4.2% 1.6%
AND LEASING
FY19 FY20 FY21
4.2% 4.1%
GROUP 3.5%
FY19 FY20 FY21
Note: Net loss includes bad debts and loss recoveries.
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FY21 RESULTS // 19 AUGUST 2021

Wholesale funding facilities //

Headroom to fund future growth.

• Well established funding platform a strategic differentiator against peers with increased capacity to support growth.

• Record $1b of ABS issuance during FY21.

• Successful humm Australian securitisation issuances of $250m executed in October 2020 and $260m executed in June 2021, including green ABS notes.

• humm group has now issued over $540m of green ABS notes (certified by the Climate Bonds Standard Board) across seven transactions since 2016.

• Upsized $450m flexicommercial securitisation transaction executed in March 2021, humm group's largest issuance to date. The deal was supported by a pool of secured SME lending receivables driving further capital efficiency for the Australia Commercial and Leasing business.

• Successful refinance of NZ$89.5m soft-bullet notes under the NZ Cards program in April 2021, with a further material issuance of NZ$240m of notes under the program in August 2021 at record low pricing.

• Mezzanine funding of $70m secured in support of the Australia Cards portfolio in January 2021 releasing significant amount of capital.

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$3,381m
$2,903m
$2,754m $975m
$433m $648m
`
$2,321m
$2,255m $2,407m
FY19 FY20 FY21
Drawn balance
Undrawn balance
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FY21 RESULTS // 19 AUGUST 2021

Corporate debt facilities //

Growth underpinned by balance sheet flexibility.

• Substantially strengthened the balance sheet to position humm group for growth.

• A portion of the FY21 capital raise proceeds utilised to repay corporate borrowings.

• humm group secured commitments of A$110m under a new three year syndicated revolving loan facility to replace the existing bilateral corporate debt facilities with undrawn commitments of A$197m.

• The reduced facility size is more suited to humm group’s current debt needs and will have a positive effect on the amount of undrawn fees.

• Nil net corporate gearing at 30 June 2021 with significant headroom under syndicated revolving loan facility.

• Unrestricted cash of $107.6m, a significant increase on pcp (FY20: $14.5m).

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$100m
$130m
`
$110m
36%
29%
$98m $67m 0%
FY19 FY20 FY21
Drawn balance
Undrawn balance
Gearing ratio %
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1. Gearing is recourse (corporate) borrowings as a percentage of equity excluding intangible assets.

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FY21 RESULTS // 19 AUGUST 2021

SUMMARY.

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FY21 RESULTS // 19 AUGUST 2021

// Moving forward

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• humm group has numerous growth initiatives including international expansion, new product growth and new partnerships.

• humm group will be holding an investor day on 27 October 2021 where it will provide a full strategic update alongside volume and other measures for FY22.

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FY21 RESULTS // 19 AUGUST 2021

APPENDICES.

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FY21 RESULTS // 19 AUGUST 2021

NPAT reconciliation //

hummgroup($m)	FY21	FY20	FY19	v PCP%
Cash NPAT	68.4	30.9	76.1	121.4%
Non-cash items
Amortisation of acquired intangible assets	2.1	3.3	2.9	(36.4%)
Share plan cancelation expense	1.6	–	–	100.0%
Sale of Think Office Technology	1.2	–	(2.2)	100.0%
Impairment of other intangible assets	–	1.1	7.5	(100.0%)
Investment in associate - held for sale	2.7	–	–	100.0%
Redundancy and restructure	1.6	3.5	–	(54.3%)
Other costs (customer remediation matters and historical tax and accountingmatters)	(0.9)	(0.1)	6.2	800.0%
Profit after income tax on statutory basis	60.1	23.1	61.7	160.2%

`

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FY21 RESULTS // 19 AUGUST 2021

Profit and Loss ($m)	FY21	FY201	FY19	v PCP %
Interest income	337.2	359.4	352.8	(6.2%)
Fee and other income	103.3	114.9	139.5	(10.1%)
Gross income	440.5	474.3	492.3	(7.1%)
Cost of origination	(26.8)	(28.6)	(19.6)	(6.3%)
Interest expense	(74.2)	(89.3)	(100.6)	(16.9%)
Net operating income	339.5	356.4	372.1	(4.7%)
Depreciation and amortisation expenses	(25.8)	(19.0)	(17.1)	35.8%
Employment expenses	(81.1)	(86.0)	(90.5)	(5.7%)
Marketing expenses	(30.0)	(23.7)	(14.7)	26.6%
Receivables and customer loan impairment expenses	(58.7)	(146.7)	(87.5)	(60.0%)
Other operating expenses	(62.0)	(53.9)	(71.4)	15.0%
Profit before income tax	81.9	27.1	90.9	202.2%
Income tax expense	(21.8)	(4.0)	(29.2)	445.0%
Statutory profit/(loss) after income tax	60.1	23.1	61.7	160.2%
Non-cash items	8.3	7.8	14.4	6.4%
Cash NPAT	68.4	30.9	76.1	121.1%
Basic earnings per share (cents)	12.0	5.3	15.9	126.4%
Cash earnings per share (cents)	13.7	7.3	19.7	87.7%
Volume	2,687.5	2,482.7	2,556.0	8.2%
Closing receivables and customer loans	2,742.6	2,562.4	2,640.0	7.0%

`

1. Restated for IFRIC.

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FY21 RESULTS // 19 AUGUST 2021

Balance Sheet ($m)	FY21	FY20	FY19	v PCP %
Cash and cash equivalents	218.2	157.5	143.1	38.5%
Receivables and customer loans1	2,653.1	2,452.6	2,577.4	8.2%
Equity and other investments	9.6	14.3	13.7	(32.9%)
Other assets	22.1	21.8	10.5	1.4%
Current and deferred tax assets	46.3	49.9	26.3	(7.2%)
Goodwill	239.2	239.9	244.3	(0.3%)
Other intangible assets	110.9	102.3	102.0	8.4%
Total assets	3,299.4	3,038.3	3,117.3	8.6%
Payables	56.2	67.3	58.0	(16.5%)
Borrowings	2,406.5	2,295.1	2,387.7	4.9%
Provisions	21.8	20.5	22.9	6.3%
Other liabilities	44.7	62.2	28.5	(28.1%)
Current and deferred tax liabilities	11.1	14.8	4.1	(25.0%)
Total liabilities	2,540.3	2,459.9	2,501.2	3.3%
Equity	759.1	578.4	616.1	31.2%
Gearing2	0.0%	28.7%	36.3%	(LRG)
ROE3	10.2%	5.1%	12.3%	510bps

`

1. Includes other debtors as disclosed in the statutory accounts.

2. Gearing is recourse (corporate) borrowings as a percentage of equity excluding intangible assets. 3. Calculated based on Cash NPAT.

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FY21 RESULTS // 19 AUGUST 2021

Consolidated Cash Flow ($m)	FY21	FY20	FY19	v PCP %
NPAT	60.1	23.1	61.7	160.2%
Share-based payments	2.7	0.2	0.7	1,250.0%
Depreciation and amortisation	25.8	19.0	17.1	35.8%
Impairment of other intangible assets	-	1.5	10.5	(100.0%)
Impairment losses on loans and receivables	58.7	145.2	87.5	(59.6%)
Impairment and profit on sale adjustment – investment in associate held for sale	5.5	-	2.2	100.0%
Changes in customer loans and receivables	(263.2)	(47.1)	(350.3)	458.4%
Changes in other operating assets and liabilities	(1.8)	(3.7)	(9.9)	(51.4%)
Other non-cash movements	1.6	0.3	4.4	433.3%
Operating cash flow	(110.6)	138.5	(184.9)	(179.9%)
Purchase of intangibles and property, plant and equipment	(29.1)	(31.7)	(26.7)	(8.2%)
Purchase of investments	(2.2)	-	-	100.0%
Investing cash flow	(31.3)	(31.7)	(26.7)	(1.3%)
Dividends paid	(19.5)	(15.2)	(28.8)	28.3%
Proceeds from share issuance, net of transaction costs	111.3	-	25.1	100.0%
Cash payments relating to finance lease liability	(5.4)	(3.1)	N/A1	74.2%
Net movement in non-recourse borrowings	184.4	(43.3)	236.1	(525.9%)
Repayment of corporate borrowings	(152.3)	(371.5)	(234.0)	(59.0%)
Drawdown of corporate borrowings	84.9	341.6	226.7	(75.1%)
Financing cash flow	203.4	(91.5)	225.1	(322.3%)
Effects of exchange rate changes on cash and cashequivalents	(0.8)	(0.9)	1.5	(11.1%)
Net increase/(decrease) in cash	61.5	15.3	13.4	302.0%

`

1. Leasing accounting changes were implemented prospectively from FY20.

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FY21 RESULTS // 19 AUGUST 2021

	BNPL		AU CARDS	AU CARDS	NZ CARDS	NZ CARDS	COMMERCIAL AND LEASING	COMMERCIAL AND LEASING	HUMMGROUP	HUMMGROUP
FY20 Profit and Loss ($m)	Published	Restated	Published	Restated	Published	Restated	Published	Restated	Published	Restated
Interest income	93.9	93.9	86.9	86.9	120.8	120.8	58.6	62.4	360.2	364.0
Fee and other income	27.6	27.8	28.1	27.9	25.3	25.3	33.9	33.9	114.9	114.9
Gross income	121.5	121.7	115.0	114.8	146.1	146.1	92.5	96.3	475.1	478.8
Cost of origination	(3.2)	(6.6)	(11.5)	(11.8)	(10.0)	(10.2)	(0.0)	-	(24.7)	(28.6)
Interest expense	(20.3)	(20.3)	(20.1)	(20.1)	(27.7)	(27.7)	(21.2)	(21.2)	(89.3)	(89.3)
Net operating income	98.0	94.8	83.4	82.9	108.4	108.2	71.3	75.1	361.1	361.1
Marketing expense	(10.0)	(11.3)	(4.1)	(3.2)	(8.0)	(8.0)	(1.5)	(1.2)	(23.7)	(23.7)
Operating expenses	(33.9)	(39.3)	(44.2)	(37.9)	(42.2)	(39.4)	(42.5)	(43.8)	(162.7)	(160.4)
Impairment losses on receivables and customer loans	(48.9)	(50.5)	(35.5)	(33.9)	(33.8)	(33.8)	(27.0)	(27.0)	(145.2)	(145.3)
Amortisation of acquired intangible assets	(0.2)	(0.2)	0.0	0.0	(2.5)	(2.5)	(0.6)	(0.6)	(3.3)	(3.3)
Impairment of other intangible assets	(0.5)	(0.5)	(0.1)	(0.1)	(0.2)	(0.2)	(0.7)	(0.7)	(1.5)	(1.5)
Profit before income tax	4.5	(7.0)	(0.4)	7.8	21.7	24.4	(1.0)	1.9	24.7	27.1
Income tax expense	(0.5)	2.6	0.6	(1.6)	(4.6)	(5.3)	1.2	0.3	(3.3)	(4.0)
Statutory profit/(loss) after income tax	4.0	(4.4)	0.2	6.2	17.1	19.1	0.2	2.2	21.4	23.1
Non-cash items	1.7	1.7	1.4	1.4	2.7	2.7	2.0	2.0	7.8	7.8
Cash NPAT	5.7	(2.7)	1.6	7.6	19.8	21.8	2.2	4.2	29.2	30.9

In the published FY20 financial statements, bundll was represented in AU Cards and NZ Cards, and humm pro was represented in Commercial and Leasing. bundll and humm pro products have been represented in the BNPL segment in the restated column. In addition, the FY20 restated numbers also include a retrospective adjustment for the impacts of International Financial Reporting Interpretation Committee (“IFRIC”) guidance on cloud computing costs which reduced software amortisation by $1.7m (after tax).

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FY21 RESULTS // 19 AUGUST 2021

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// Interest free shopping for everything, everywhere, everyday

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----- Start of picture text -----

•
Buy Now Pay Later “Always interest free”
‘000s High-value,
long terms plans
•
Available at humm merchants only
•
Up to $30,000
‘00s
• `
Repay over 2.5 – 60 months Low-value,
short term plans
• ‘0s
3 min to apply and get approved <2 <24 <60
Plan length (months)
•
75% of purchases by customers 35+
humm anything from $1 to $30K
•
Little things ATV ~$275
•
Big things ATV ~$3,900 Pay in set instalments from
five fortnights to five years
1. All information relates to humm Australia for FY21.
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FY21 RESULTS // 19 AUGUST 2021

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// Interest free shopping for everything, everywhere, everyday

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• COMPETITORS

• • Long term interest free, up to $50k

• • Up to 90 days interest free on all transactions

• • Use anywhere Mastercard is accepted `

• • Payment terms up to 60 months

• • Better suited to an in-store consultative salesperson application Personal loans

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FY21 RESULTS // 19 AUGUST 2021

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// Interest free shopping for everything, everywhere, everyday

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• Buy Now Pay Later for small business

• Use anywhere Mastercard is accepted

• Up to $30,000

• 3 min to apply and get approved

• Pause payments for 30 days; or

• Pay in 6, 9, 12 monthly equal instalments

• Monthly membership fee

MARKETS WE’RE DISRUPTING

Business Credit Cards

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`

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FY21 RESULTS // 19 AUGUST 2021

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// Interest free shopping for everything, everywhere, everyday

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MARKETS WE’RE DISRUPTING

• Personal Debit Cards

• Buy Now Pay Later “Everywhere”

• • Use anywhere Mastercard is accepted

• Everyday purchases, no minimum spend

• `

• 3 min to apply and get approved

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• No less than 2 weeks to repay

• Consumer pays model: Snooze or bundll

• super for additional repayment time

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FY21 RESULTS // 19 AUGUST 2021

Disclaimer //

No recommendation, offer, invitation or advice

This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in humm group in any jurisdiction. This presentation contains general information about humm group only in summary form and does not take into account the investment objectives, financial situation and particular needs of individual investors. The information in this presentation does not purport to be complete. Investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified financial adviser having regard to their objectives, financial situation and needs before taking any action. This presentation should be read in conjunction with humm group’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange.

Exclusion of representations or warranties

The information contained in this presentation may include information derived from publicly available sources that has not been independently verified. No representation or warranty, express or implied, is made as to the accuracy, completeness, reliability or adequacy of any statements, estimates, opinions or other information, or the reasonableness of any assumption or other statement, contained in this presentation. Nor is any representation or warranty, express or implied, given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, prospective statements or returns contained in this presentation. Such forecasts, prospective statements or returns are by their nature subject to significant uncertainties and contingencies many of which are outside the control of humm group. Any such forecast, prospective statement or return has been based on current expectations about future events and is subject to risks, uncertainties and assumptions that could cause actual results to differ materially from the expectations described. Readers are cautioned not to place undue reliance on forward looking statements. Actual results or performance may vary from those expressed in, or implied by, any forward looking statements. humm group does not undertake to update any forward looking statements contained in this presentation. To the maximum extent permitted by law, humm group and its related bodies corporate, directors, officers, employees, advisers and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use or reliance on

anything contained in, or omitted from, this presentation.

Jurisdiction

The distribution of this presentation including in jurisdictions outside Australia, may be restricted by law. Any person who receives this presentation must seek advice on and observe any such restrictions. This document is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment. In particular, the document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of humm group have not been, and will not, be registered under the US Securities Act of 1933 (as amended) (“Securities Act”), or the securities laws of any state of the United States. Each institution that reviews the document that is in the United States, or that is acting for the account or benefit of a person in the United States, will be deemed to represent that each such institution or person is a “qualified institutional buyer” within the meaning of Rule 144A of the Securities Act of 1933, and to acknowledge and agree that it will not forward or deliver this document, electronically or otherwise, to any other person. No securities may be offered, sold or otherwise transferred except in compliance with the registration requirements of applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of applicable securities laws.

Investment Risk

An investment in humm group securities is subject to investment and other known and unknown risks, some of which are beyond the control of humm group. humm group does not guarantee any particular rate of return or the performance of humm group securities. All amounts are in Australian dollars unless otherwise indicated.

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THANK YOU.

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