HUMM GROUP LIMITED — Interim / Quarterly Report 2017

Feb 20, 2017

1H 17 Results Presentation Building for Growth 21 February 2017

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1

1H17 Highlights

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Solid 1H17 result: Cash NPAT $47.5m +18%, volumes +70%, receivables +64%: delivering results with encouraging profit lead indicators 

FY17 performance on track to deliver Cash NPAT in line with estimate $90-$97m 

AU Cards volume growth +48% v pcp and on track for +50% for FY17



Ireland expansion on track: funding lines agreed, platform build on track and building distribution partnerships



AU Commercial leasing rebuild continues: volumes +84%, announcement of new partnership agreements expected in 3QFY17 

Building for growth – Execution on track to build a more sustainable FlexiGroup with profitable organic growth. Anticipated benefits beginning to emerge. 

2

Results Overview

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Clear growth strategies to create a more sustainable, predictable and profitable FlexiGroup

FlexiGroup ($m)	1H16	1H17	Growth v PCP
Cash NPAT1	40.2	47.5	18%
Statutory NPAT 1	37.6	45.9	22%
Volume1	572	975	70%
Closing Receivables1	1,220	1,998	64%
ROE %2	19%	16%	(3%)
Cash Earnings per Share (cents)1	12.5	12.8	2%
Statutory Earnings per Share (cents)1	11.7	12.3	5%

Notes:

1. Continuing Operations only - excludes Enterprise and Think Office Technology (TOT) businesses that are in run-off and held for sale respectively. For 1H16 previously reported Cash NPAT was $44.3m which included $4.1m from discontinued operations. Cash NPAT excludes amortisation of acquired intangibles $1.3m (1H16: $0.9m) and loss contribution from an equity investment $0.3m (1H16: nil). 1H16 also excludes deal acquisition costs of $1.7m.

2. ROE includes the impact of discontinued operations. As previously indicated, re-shaping of profit pool from leasing to cards will step down

ROE but improve future earnings sustainability.

3

1H17 Cash NPAT Bridge Solid Cash NPAT result. NZ Cards in line. Investments to drive ongoing growth

	1H16		1H17
	$40.2m		$47.5m
	(Continuing		(Continuing
	**Operations) **		Operations)
NZ Cards
NZ
Leasing
AU
Leasing
AU Cards
Certegy
Net
Corporate
Debt Costs

4

Impairments

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Improvement driven by move towards lower risk profile segments

Performance

• Core net impairment losses have decreased from 3.7% in 1H16 to 3.1% in 1H17 (3.5% ex-NZ Cards)

• Changes to portfolio mix with addition of NZ Cards improves overall Group loss profile

• Improved collections driven by widescale roll out of cloud based automated platform

• Certegy maintains loss discipline. Net impairment losses have decreased slightly as a result of improved recoveries

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Impairment
Net Impairment Losses 1H16 1H17
/ ANR %
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	Net Impairment Losses	1H16	1H17	pae / ANR %
	Certegy	$9.6m	$9.2m	3.9%
	Australia Cards	$4.1m	$6.0m	3.4%
	New Zealand Cards	n/a	$7.2m	2.3%
	Australia Leasing New Zealand Leasing	$7.6m $0.8m	$7.6m $0.2m	5.4% 0.2%
	Net Impairment Losses (Continuing Operations)	$22.1m	$30.2m	3.1%
	Discontinued Operations Net Impairment Losses	$2.8m $24.9m	$0.4m $30.6m	0.4% 2.9%
	Impairment / ANR % (Continuing Operations)	3.7%	3.1%
	Impairment / ANR %	3.5%	2.9%

FlexiGroup 90+ Days Delinquency

Outlook

• Review of commercial and consumer collections strategies to be completed in 2H

• The Group continues to drive growth in customer segments where it understands the risks and the reward profile aligns with appetite, such as the rollout of Oxipay

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5

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FY17 Scorecard Progress on Track	FY17 Scorecard Progress on Track
AU Cards scale	Major contract gained to drive scale in AU Cards business  Store roll out complete Volumes and new customer acquisitions ahead of expectation
Funding strategy	Funding strategy being developed to support growth AU Cards growth utilising available capital Alternative funding structures being considered as scale is achieved
Oxipay launch	Build and launch low touch, consumer friendly payment product into market Some technical issues delayed launch to Q4 FY17 Relationships with a number of retailers signed with more imminent
FPF Acquisition	Integrate and maximise performance of FPF acquisition  Business now rebranded as Flexi Cards NZ Business performing in line with expectations Focus on rebuilding and reinvigorating sales
Management strengthened	Board and management team to be strengthened, aligned with key areas of focus  2 new Board Directors appointed in 1H with significant financial services experience Key roles in executive team appointed during 1H
Certegy	Growth strategy to be developed for Certegy excluding Energy Storage Major new relationships signed Growth strategy WIP: opportunities emerging
Non-core businesses	Exit non-core businesses and redeploy capital TOT sale process progressing Enterprise portfolio in run-down with focus on maximising value
Commercial	Commercial finance offer rebuilt and gaining traction in AU market Volume momentum established Value proposition and sales processes rebuilt Significant opportunities in managed services

6

Cards AU Performance

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Significant volume and receivables growth as competitive advantages leveraged

Volume Growth

• Volume growth 1H17 v 1H15 of 105% (43% CAGR)

• Growth driven by leveraging strategic partnerships with major retailers and enhancements to customer value proposition

• Technology investment also underpinned growth through market leading originations platform

• Flight Centre contract live August 2016

Receivables Growth

• Receivables growth 1H17 v 1H15 of 78% (34% CAGR)

• Card spend per customer is key growth driver – this has increased by ~25% since 1H15 as a result of leveraging data on customer behaviour to deliver compelling and relevant offers

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Cards AU Volume
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+43% CAGR
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Cards AU Receivables
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+34% CAGR
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7

Cards AU Performance

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Profitability of segment has lagged growth in volume due to product construct

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Cards AU Segment Volume & Cash NPAT
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• Full FY17 will be impacted by ~$3m investment in Flight Centre partnership

• Profitability impacted by lag between customer acquisition and profitability as a result of Interest Free term offered as customer acquisition tool

• Rapid customer acquisition leads to a temporary increase in the share of interest free receivables in the portfolio as customer mix is weighted to early stages of the lifecycle

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Cards AU Receivables Mix
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• Over time expect interest free / interest bearing mix to normalize towards historical average driving revenue growth from significantly increased receivables

• Lead profit indicators are improving: average card spend is increasing, card activation is increasing and portfolio average Interest Free duration is decreasing

8

Cards AU Performance

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Cards now 52% of group receivables with expected future state 60-65%

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Group receivables by segment
1H15 1H17 Medium Term
NZ
NZ
NZ Leasing Leasing
Leasing AU Certegy AU Certegy
Leasing
Leasing
AU
Certegy
Leasing
AU
AU NZ
NZ Cards
Cards Cards
AU Cards
Cards
Cards 19% Cards 52% Cards 60-65%
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Impact on Group Capital Requirement

• Cards AU receivables to double within 3 years

• Significant funding lines in place but requires cash to support warehouse funding facilities

• Reset of capital management required to sustainably support growth

• Strong profit growth anticipated (18-24 months)

9

Capital Management

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Strategic growth in Cards businesses requires increased cash support

Funding Requirement and Dividend Policy

• FY17 interim dividend declared at 3.85c per share (FY16 interim 7.25c)

• Dividend payout ratio rebased to 30-40% of Cash NPAT (previously 50-60%)

• DRP reactivated for 1H17 interim dividend – founding shareholder and chairman will take up the DRP for 50% of his holding

• Reset in capital management allows growth to be funded sustainably during rapid growth phase in AU Cards

• Funding lines in place but increased cash support required

• Expect Cards revenue and profitability to grow significantly in the medium term

Outlook

• Scope to optimise existing Cards funding structures

• Rebalance facilities to access existing liquidity

• Reduced dividend distributions provide sufficient equity for ongoing growth

• Funding strategy under review to reduce cost and improve efficiency of capital usage

• Cards receivables expected to grow ~50% across FY17

10

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Segment Review and Growth Initiatives

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Building for Growth

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Build Infrastructure Deliver Identify Build - People Profitable Market Competitive - Product Investment Growth Opportunity Strengths - Processes in Growth and - Partnerships Returns - Systems • Originations process • Funding for growth • Timing difference AU Cards   enhancements • Alternative structures as between customer growth • New backend platform scale is achieved and profitability NZ Cards     • Sales and marketing capability key focus • Certegy     Growth strategy WIP • Commercial processes • Appropriate funding to • Re-establishing volume AU Leasing   reimagined support managed momentum • Platform in progress services offering • Focus on returns • Maximising existing • Scope for increased   partnerships  volume share from

 AU Leasing 

• Scope for increased volume share from existing partners

• Maximising existing

•  partnerships 

• NZ Leasing • TELA contract renewal

• • Product & Brand in market • Sales team in place • •

• Oxipay  Targeting sectors that are Online shopping cart  value accretive Integration continues • Platform near complete •

• Ireland  • Partnerships progressing • Credit license

NZ Leasing

• Multi product strategy

Oxipay

• Drives customer acquisition

• Partnerships progressing • Credit license • Local funding facility • New product to transform near completion scale and profitability

• application progressing

12

Segment Overview

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Business mix changing - Cards now makes up 52% of overall receivables

Volume by segment

Receivables by segment

Cash NPAT by segment

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Combined Cards AU & NZ
$1,040m
52%
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Note:

All data refers to continuing operations – see slide 26 for full reconciliation of Volume, Receivables and Cash NPAT.

13

Australia Cards

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48% increase in total volume v pcp

Key highlights

• Receivables growth $118m +44%

• New business volumes (Interest Free and Card Spend) up $77m (+48%) to $238m

• Cash NPAT decreased by 19% v PcP driven by an investment of $1.5m in setup costs with FCTG. Normalising for this Cash NPAT is up $0.3m, an increase of 5% v pcp

Growth Outlook

• Flight Centre Travel Group partnership successfully launched

• Streamlined customer origination process implemented across Lombard partners which delivers improved user experience and increased customer and retail partner advocacy. To be rolled out across Once dealers 2H17

• Apple Pay enabled for all AU cards customers, providing an opportunity for incremental card spend through the digital wallet

• Increased investment in customer marketing resulting in uplift in activation and usage rates, realising Interest Income earlier in customer lifecycle

• Cash NPAT/ANR metric set to recover over time

• Significant shift in volume mix towards shorter average interest free term – drives interest income earlier

	Interest free cards finance offered through retail point of sale
	Australia Cards, $m 1H16 1H17 Growth v PCP
	Total Volume $161m $238m 48% Closing Receivables $271m $389m 44% Cash NPAT1(excluding Flight Centre) $6.2m $6.5m 5% Cash NPAT1 $6.2m $5.0m (19%) Cash NPAT/ANR % 4.9% 2.9% (2%)

Notes

1. Cash NPAT excludes amortisation of acquired intangibles $0.2m (1H16 $0.4m).

Cards Interest Free Term Mix (# customers)

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14

New Zealand Cards

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Volume and receivables growth underpinned by the launch of two scheme cards

Key highlights

• FPF acquisition completed during 2H16

• Cash NPAT $13.3m, estimated full year NPAT on acquisition $27.7m

• Net portfolio income in line with expectations underpinned by the launch of Q MasterCard and Flight Centre MasterCard, and lower cost of funds

• Increased customer repayments have moderated receivables growth

• Impairment losses have remained historically low with arrears continuing to perform well

	Interest free cards finance offered through retail point of sale
Note 1.	s 1H17 Cash NPAT excludes amortisation of acquired intangibles of $0.1m (1H16: nil) 1 New Zealand Cards, $m 1H17 Volume $310m Closing Receivables $651m Cash NPAT $13.3m Cash NPAT/ANR % 4.2% Cash NPAT (NZD) $14.0m

Growth Outlook

• Q Card relaunched with enhanced functionality and global acceptance as a MasterCard – transition will take 12-18 months

• White label Flight Centre card launched in December

• Sales and marketing capability is key focus

15

Certegy

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Cash NPAT up 1% on stable receivables and volumes

Key highlights

• Business performance stable - Cash NPAT growth of 1%, achieved through highly scalable platform and cost control

• Solar volumes remain stable at ~$15m per month as penetration % of national installations increase

Growth Outlook

• Growth strategy being developed - identified 3 strategic products for release late 2017/18

• Key focus on Targeted Industry Integration into POS systems to further expand new customer base

• Ongoing development of Ezi-Living product continues to gain market share within home renovation sector, with further tailored offerings being launched in July 17 (high value / lower risk)

• Heads of Agreement signed with national market leader to expand penetration in medical sector to 3,000+ dentists

• Solar Energy installations reach 140,000 customers – ready for domestic mass adoption of Energy storage systems

• Volume momentum positive into 2H17 - Q2 stronger than Q1

		No interest ever payment
		processing primarily in homeowner sector
	Certegy, $m	1H16 1H17 Growth v PCP
	Volume	$280m $278m (1%)
	Closing Receivables	$484m $478m (1%)
	Notes Cash NPAT	$17.5m $17.6m 1%
	1. Cash NPAT excludes amortisation of acquired intangibles $0.2m (FY15 nil).

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Certegy Volume Mix ($m)
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16

Australia Leasing

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Cash NPAT down 20% driven by shift in product mix. Rebuild of Commercial underway with promising pipeline.

Key highlights

• Cash NPAT decrease as anticipated primarily driven by receivables mix

• Commercial rebuild continues with volumes increasing significantly in 1H17 +84%

Growth Outlook

Point of Sale

• Lease product modifications to provide greater customer value

• Opportunities in channels for multi product strategy. Enhanced value for buyers and sellers with a full product suite including Cards and Oxipay

		Leasing	of IT, electronics	of IT, electronics
		and other assets through
		Point of	Sale, Dealers Vendors	and
	Australia Leasing, $m	1H16	1H17	Growth v PCP
	Volume	$85m	$103m		21%
	Point of Sale Commercial	$60m $25m	$57m $46m		(5%) 84%
	Closing Receivables	$290m	$287m		(1%)
	Point of Sale	$171m	$167m		(2%)
	Commercial	$119m	$120m		1%
	Cash NPAT (Continuing Operations)1	$11.9m	$9.5m	(20%)
	Cash NPAT	$16.0m	$11.6m	(28%)
	Cash NPAT/ANR % (Continuing Operations)	8.0%	6.8%	(1.2%)

Notes

1. 1H17 Cash NPAT excludes amortisation of acquired intangibles of $0.2m (1H16: $0.3m) and profit contribution from a minority interest $0.3m (1H16: nil). 1H16 also excluded acquisition costs of $1.7m.

Commercial

• Rebuild of Commercial product offer progressing strongly underpinning 84% volume growth v pcp

• Proven commercial finance leadership team recruited with focus on delivering managed services offering, new partnership agreements imminent

Cash NPAT & Receivables growth

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17

New Zealand Leasing

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8% Cash NPAT increase driven by receivables growth

Key highlights

• Cash NPAT at $5.6m +8%

• Margin decrease due to increased exposure to lower risk government contracts in portfolio

• Receivables growth of +10%

		Leasing of IT, electronics	Leasing of IT, electronics	Leasing of IT, electronics
		and other assets
	New Zealand Leasing, $m Volume	1H16 $46m	1H17 $46m	Growth v PCP 0%
	Closing Receivables	$175m	$193m	10%
	Cash NPAT	$5.2m	$5.6m	8%
	Cash NPAT/ANR % Cash NPAT (NZD)	6.1% $5.7m	5.7% $5.9m	(0.4%) 4%

Notes

1. 1H17 Cash NPAT excludes amortisation of acquired intangibles of $0.5m (1H16: $0.4m).

Growth Outlook

• Scope for organic growth: diverse and integrated customer base offers significant opportunity to deploy ‘direct to customer’ sales model across all sectors

• Further growth available in SME and Education

• Managed services product offering in large customer base

Cash NPAT & Receivables Growth

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18

Oxipay launching into market Q4 FY17

Next Steps

Progress Update

• Front and back end processes complete utilising existing Certegy platform

• Integration into online shopping carts Q4 FY17

• Oxipay branding in market with marketing plan complete

• Acquisition marketing execution to accelerate growth

• Relationships with a number of new retailers signed with more imminent

• Continued business development targeting value accretive sectors

• Existing sellers to provide Oxipay as an incremental solution for customers. Strong relationships competitive advantage versus peers

• Continue to leverage existing sales team to drive multi product solution which includes Oxipay product

• Offers key differentiation in product variables

• Effective customer lifecycle management that leverages large customer base

• Pricing model finalised that leverages existing Certegy credit decision processes. Proven to reduce risk and increase transaction values

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19

Ireland project on track

Next Steps

Progress update

• Operating in Republic since 2008

• Final testing and implementation – go live expected Q4

• Merchant footprint increased from 100 stores to 400 over the last 12 months

• Package final elements of application for submission

• Scalable cloud based lending platform nearing completion (live Q4)

• Complete DD and documentation

• Irish credit license application progressing

• Experienced employee seconded to Ireland to facilitate product launch

• Local funding line terms agreed

• Enhance local knowledge base to deliver business growth

• Built scale and capability in local management and sales team

• Finalise value proposition and agree commercial terms

• Local credit, risk and compliance resources recruited

• Finalise scope of product and customer offering

• Negotiations progressing with major international retailer

• Ongoing discussions with existing channel partners to expand product offering

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20

Conclusion

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 Building for growth – Execution on track to build a more sustainable FlexiGroup with profitable organic growth. Anticipated benefits beginning to emerge

• Solid 1H17 result: Cash NPAT $47.5m +18%, volumes +70%, receivables +64% – delivering results with encouraging profit lead indicators

• Dividend policy rebased to provide capital to sustainably support growth

• Significant opportunities for organic growth in Cards, Ireland and Commercial leasing

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• Key focus: Review funding strategy to support further growth and continued rollout of Cards, execution of Irish strategy and Commercial leasing

Appendices

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|||
|---|---|
|Section|Page|
|Funding overview|23|
|Cash Flow overview|24|
|Balance Sheet overview|25|
|Segment Performance Overview|26|
|Consolidated Statutory Income Statement|27|
|Consolidated Statutory Balance Sheet|28|
|Consolidated Statutory Cash Flows|29|
|FY17 Cash NPAT Bridge (from FY16 results presentation)|30|
|Group Overview|31|

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Funding

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Committed support from banks and institutions, diverse funding sources

Funding Structure

• Continued focus on maintaining an optimised and conservative funding structure

• Underpinned by multiple committed debt facilities, matched term and rate structures for wholesale debt and an active debt capital markets presence

• Strong and stable relationships with 6 Australian institutions providing revolving committed facilities

• Additional warehouse facility was set up during 1H17 for new MasterCard product in NZ Cards

• Overall funding rate decreased driven predominantly by lower benchmark rates

Outlook

• Group has substantial unused committed revolving facilities to fund growth

• It will continue to securitise through its ABS program to decrease cost of funds, improve capital efficiency and maintain diversification of funding sources

• In February 2017, Group completed a $265m Certegy securitisation issuance

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Funding Facilities ($m)
489 503 Dec-16 Drawn $2,054m
177
14286 84 35%
722 4%
930
9%
1,071
813
52%
Jun-16 Dec-16
Undrawn Corporate Retail Debentures Securitisation Bank Warehouse Facilities
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Securitisation supports cost of funds improvements
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23

Cash Flow

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Strong operating cash flow supports investment into receivables growth

Performance

• Cash at bank was $187m as at 31 December 2016

• Operating cash flow generation of the business continues be the major source of funds for investment into receivables growth

• No securitisations done during 1H17, next regular issuance completed in February 2017

• Corporate borrowings were used to offset capital requirements throughout securitisation cycle and to support significant growth in AU Cards portfolio

• Capital expenditure includes the final stage of a major IT system upgrade project in NZ Cards

Outlook

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Cash Flow Bridge 1H17 ($m)
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• Dividend payout to adjusted to 30-40% of Cash NPAT (from 50-60%)

• Investment into receivables and unrated notes in securitisation vehicles to support portfolio growth

Note:

1. Restricted cash represents balances on collection accounts, which are held as part of the Group’s funding arrangements and are not available to the Group as at reporting date

24

Balance Sheet

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Redesigning balance sheet to fund growth with optimal leverage

Performance

• Recourse Debt/Equity at 82% after increased corporate facility drawn down to partly fund FPF acquisition

• SPV borrowings are non-recourse to Group

• Borrowings are matched to customer contract term

Outlook

• 77% of total borrowings (including hedged positions) are fixed rate, which provides protection against underlying movements in base interest rates

	FlexiGroup FlexiGroup excl. SPV's incl. SPV's Dec-15 Summarised Balance Sheet	FlexiGroup FlexiGroup excl. SPV's incl. SPV's 57.5 57.5 129.0 129.0 43.1 2,103.1 204.3 - 55.5 55.5 428.7 428.7 14.0 14.0 932.1 2,787.8 177.0 2,054.3 - (21.6) 108.5 108.5 1.7 1.7 287.2 2,142.9 644.9 644.9 82% n/a 27% n/a 16% n/a Dec-16
	Cash at bank 41.7 41.7 Cash at bank (restricted) 95.5 95.5 Receivables and customer loans 110.6 1,427.8 Investment in unrated notes in securitisation vehicles 155.7 - Other assets 50.2 50.2 Goodw ill and intangibles 207.8 207.8 Disposalgroupheld for sale - -
	Total assets 661.5 1,823.0
	Borrow ings - 1,184.5 Cash loss reserve available to funders - (23.0) Other liabilities 83.7 83.7 Disposalgroupheld for sale - -
	Total liabilities 83.7 1,245.2
	Equity 577.8 577.8
	Gearing (based on Net Tangible Assets) 0% n/a
	Gearing (based on Total Equity) 0% n/a
	ROE(i) 19% n/a

• Remaining 23% of borrowings relate to AU Cards, a portion of NZ Cards and the corporate facility which are funded off a floating rate. Group has the ability in Cards to vary the customer rates to match any underlying change in official interest rates

25

Segment Performance Overview

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Certegy Australia Cards New Zealand Cards Australia Leasing New Zealand Leasing Net Corporate Debt Costs Total FlexiGroup (Continuing Operations) Discontinued Operations Total FlexiGroup	1H16 1H17 Growth v PCP $280m $278m  (1%) $161m $238m  48% $0m $310m  0% $85m $103m  21% $46m $46m  0% $572m $975m  70% $45m $3m  (93%) $617m $978m  59% Volume	1H16 1H17 Growth v PCP $484m $478m  (1%) $271m $389m  44% $0m $651m  0% $291m $287m  (1%) $175m $193m  10% $1,220m $1,998m  64% $236m $174m  (26%) $1,456m $2,172m  49% ClosingReceivables	1H16 1H17 Growth v PCP $17.5m $17.6m  1% $6.2m $5.0m  (19%) $0.0m $13.3m  0% $11.9m $9.5m  (20%) $5.2m $5.6m  8% ($0.6m) ($3.5m)  483% $40.2m $47.5m  18% $4.1m $2.1m  (48%) $44.3m $49.6m  12% Cash NPAT1	Cash NPAT / ANR %
				1H16 1H17 Growth v PCP
				7.3% 7.4%  0.1% 4.9% 2.9%  (2.1%) 0.0% 4.2%  4.2% 8.0% 6.8%  (1.2%) 6.1% 5.7%  (0.4%)
				6.7% 4.9%  (1.8%)
				3.4% 2.1%  (1.2%)
				6.1% 4.7%  (1.4%)

Notes 1. Cash NPAT adjustments are detailed in individual segment results

26

Consolidated Statutory Income Statement

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27

Consolidated Statutory Balance Sheet

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	A$ MILLION	Dec-15 Dec-16 Dec-15 Dec-16 137.2 186.5 137.2 186.5 1,456.0 2,171.9 138.8 111.9 (28.2) (68.8) (28.2) (68.8) 1,427.8 2,103.1 110.6 43.1 41.3 47.7 41.3 47.7 - - 155.7 204.3 3.9 1.3 3.9 1.3 5.0 6.5 5.0 6.5 153.1 321.6 153.1 321.6 54.7 107.1 54.7 107.1 - 14.0 - 14.0 1,823.0 2,787.8 661.5 932.1 1,184.5 2,054.3 - 177.0 (23.0) (21.6) - - 1,161.5 2,032.7 - 177.0 31.8 50.4 31.8 50.4 9.4 7.9 9.4 7.9 6.0 7.7 6.0 7.7 4.2 12.4 4.2 12.4 4.4 9.9 4.4 9.9 27.9 20.2 27.9 20.2 - 1.7 - 1.7 1,245.2 2,142.9 83.7 287.2 577.8 644.9 577.8 644.9 307.9 356.8 307.9 356.8 4.3 19.9 4.3 19.9 265.6 268.2 265.6 268.2 577.8 644.9 577.8 644.9 Excluding SPV's
	Assets Cash at bank Loans and receivables Allow ance for losses Net receivables Other receivables Investment in unrated notes in securitisation Inventory Plant and equipment Goodw ill Other intangible assets Disposalgroupheld for sale
	Total Assets
	Liabilities Borrow ings Loss reserve Net borrow ings Payables Current tax liability Provisions Derivative financial instruments Contingent and deferred consideration Net deferred tax liabilities Disposal group held for sale
	Total Liabilities
	Net Assets
	Equity Contributed equity Reserves Retainedprofits
	Total Equity

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Consolidated Statutory Cash Flows

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	A$ MILLION	Dec-15 Dec-16 182.2 250.2 (61.7) (84.3) (32.5) (51.5) (23.4) (13.6) 64.6 100.8 (11.7) (11.9) (1.5) (3.5) - (2.4) - (1.7) (57.1) (157.3) 14.4 38.8 (55.9) (138.0) (27.4) (27.0) 146.2 - (0.7) - 43.0 52.0 (88.0) (17.0) (79.0) 41.1 3.2 0.3 (0.1) - (2.8) 49.4 5.9 12.2 130.3 174.4 1.0 0.6 137.2 187.2 137.2 186.5 0.0 0.7 137.2 **187.2 **
	Cash flows from operating activities Interest and fee income received Payments to suppliers and employees Interest paid Income taxes paid
	Net cash inflows from operating activities
	Cash flows from investing activities Payment for purchase of plant & equipment and softw are Payment for deferred consideration relating to business acquisitions Payment for business acquisitions Payment for equity investment Net movement in: Customer loans Receivables due from customers
	Net cash outflows from investing activities
	Cash flows from financing activities Dividends paid Proceed from equity raising, net of transaction cost Treasury shares purchased on market Draw dow n of corporate borrow ings Repayment of corporate borrow ings Net movement in non-recourse borrow ings Net movement in loss reserves on borrow ings Cash settlement on vesting of options
	Net cash inflows/(outflows) from financing activities
	Net increase in cash and cash equivalents
	Cash and cash equivalents at the beginning of the half-year
	Effects of exchange rate changes on cash and cash equivalents
	Cash and cash equivalents at end of the half-year
	Reconciliation of cash and cash equivalents: Cash and cash equivalents on the statement of financial position Cash and cash equivalents in disposal group Cash and cash equivalents per above

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FY17 Cash NPAT Estimate

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FY17 impacted by full year FPF contribution, growth investments & POS lease decline

NZ Leasing Net Corporate Debt Costs AU Leasing Certegy AU Cards NZ Cards FY16 $97.0m FY17 Estimate $90-97m Estimate 20-22 Estimate 1-6 Key assumptions: - Oxipay (see slide 26) - Ireland (see slide 27) - Commercial Non-core Enterprise NPAT generated in run-off excluded from Cash NPAT definition going forward FY17 Underlying $99-106m	FY16 $97.0m	Estimate Estimate	FY17 Underlying $99-106m		FY17 Estimate $90-97m

1. Exchange rate used for New Zealand of $1.00 AUD = $1.08 NZD

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Group Overview

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

Australia Australia New Zealand New Zealand
Certegy
Cards Leasing Leasing Cards
----- End of picture text -----

	Retail and				Retail point of sale			Leasing - Point of		Leasing - Point of	Retail point of sale
	homeowner “No				Interest Free Cards			sale, SME and		sale, SME and		Interest Free Cards
	Interest Ever” payment plan				Visa card subsequently used			Vendor program Key segments		Education Key segments	Mastercard subsequently used for
	Key segments				for everyday retail			technology retailers,		education and		everyday retail
	domestic solar,	home			purchases			OEM vendors		government sectors,		purchases
	improvement and high margin retail				Key segments major furniture retailers,					technology vendors	Key segments major retailers, technology,
	1.5m customers have				travel and home							furniture and travel
	used product				improvement
	Key metrics				Key metrics			Key metrics		Key metrics		Key metrics
	$478 million				$389 million			$287 million		$192 million		$652 million
	receivables				receivables			receivables		receivables		receivables
	308,000 Customers				131,000 Customers			170,000 Customers		51,000 Customers		410,000 Customers

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Disclaimer

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Important Notice

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 FlexiGroup Limited (“ FlexiGroup ”) in any jurisdiction. This presentation contains general information about FlexiGroup 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 FlexiGroup’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 FlexiGroup. 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. FlexiGroup does not undertake to update any forward looking statements contained in this presentation. To the maximum extent permitted by law, FlexiGroup 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 FlexiGroup 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 FlexiGroup securities is subject to investment and other known and unknown risks, some of which are beyond the control of FlexiGroup. FlexiGroup does not guarantee any particular rate of return or the performance of FlexiGroup securities.

All amounts are in Australian dollars unless otherwise indicated.

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