HUMM GROUP LIMITED — Earnings Release 2021

Jan 28, 2021

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29 January 2021

humm Half Year 2021 Trading Update

humm group limited (ASX: HUM) (“ humm group” or “the Company”) today provides a trading update in relation to its unaudited financial results for the half year ended 31 December 2020 (“1H21”).

Based on unaudited accounts, humm group expects to report 1H21 Cash Net Profit After Tax[1] (“NPAT”) of $43.4m, up 25.8% on pcp (1H20: $34.5m). Growth in Cash NPAT was driven by:

• management’s continued focus on reducing underlying costs with operating expenses of $87.2m excluding loan impariment expense, down 11.1% (1H20: $98.1m);

• loan impairment expense of $25.0m, down 35.3% on pcp (1H20: $38.6m) as a result of:

  • lower actual losses and strong recoveries leading to a net loss of $40.0m, down 12.0% (1H20: $45.5m). This reflects the benefit of continued investment in developing a superior credit decision platform and adopting a customer-centric approach to managing hardships and collections during the pandemic; and

  • a $4.3m after tax benefit from releasing a proportion of the COVID-19 macro overlay provision booked in FY20 (total provision booked of $30.9m after tax);

• continued strong profitability in the Commercial & Leasing and Cards segments; and

• continued top line growth in Buy Now Pay Later, with total Company customers of over 2.6m, a growth of 40.4% or 750,000 on pcp.

While humm group’s credit performance remains robust, the Company continues to take a prudent approach by monitoring the potential impact on arrears and losses from changes to government stimulus, and remains well provisioned for the future.

In 2H21 humm group will be making new investments in marketing and people as it enters two international markets. As a result, the Company expects 2H21 Cash NPAT to be lower than 1H21.

humm group will report its 1H21 results on Wednesday 24 February 2021.

Authorised for release by the humm group Board of Directors.

-ENDS-

1 Cash NPAT reflects the reported net profit after tax adjusted for material infrequent items and the amortisation of acquired intangibles.

humm group limited ACN 122 574 583 Level 7, 179 Elizabeth St, Sydney NSW 2000 Tel.+61-2-8905-2000

Investor Relations Contact

Suk Hee Lee – Head of Investor Relations +61 433 343 888

Media Contact

Roger Newby – Domestique Consulting +61 401 278 906

ABOUT HUMMGROUP

humm group is a diversified full service payments company with leading offerings in buy now pay later, revolving credit and SME finance. Serving a broad footprint of millennial spenders, through to young families and small and medium businesses, it facilitates purchases for over 2.6 million customers.

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