HUMM GROUP LIMITED — Investor Presentation 2012

Aug 8, 2012

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FY12 Investor Presentation

9[th] August 2012

John DeLano Chief Executive Officer and Managing Director

Garry McLennan Chief Financial Officer

Not for distribution or release in the United States or to U.S. persons

Disclaimer

Im ortant Notice p

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 only and does not take into account the investment objectives, financial situation and particular needs of individual investors. 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

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. 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.

Nothing in this presentation constitutes an offer or invitation to issue or sell, or a recommendation to subscribe for or acquire securities in any jurisdiction where it is unlawful to do so. 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. Neither this presentation nor any copy hereof may be transmitted in the United States or distributed, directly or indirectly, in the United States or to any US person including (1) any US resident, (2) any partnership or corporation or other entity organised or incorporated under the laws of the United States or any state thereof, (3) any trust of which any trustee is a US person, or (4) any agency or branch of a foreign entity located in the United States. No securities may be offered, sold or otherwise transferred except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other 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.

2

Agenda

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Highlights and overview – Chief Executive Officer Results analysis – Chief Financial Officer Strategy and Outlook – Chief Executive Officer

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Highlights and Overview

John DeLano Chief Executive Officer

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Group Highlights

Strategy

• Diversification delivers. Expected to drive strong results through FY13 and FY14

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$m FY11 FY12 FY11/12
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Strong Financial Result	Cash NPAT1 52.9 61.3  16% Statutory NPAT 51.8 59.0  14% Volume 695 801  15% Net Operating Cash Flow2 81.7 87.2  7% Annual Fully Franked Dividend 10.5c 12.5c  19%

Growth 5

• Diversified to $5b interest free and credit card market with Lombard acquisition

• Strong NPAT growth through FY14 from lower funding costs and receivables growth

• FY12 result exceeds guidance. FY13 Cash NPAT guidance 11% to 16% growth

Guidance

• Since 2006 IPO, NPAT CAGR +16%. Since GFC +22% CAGR

Notes:

1. Cash NPAT excludes $1.4m of intangible amortisation and $.9m net from one off acquisition costs (relating to Lombard, Paymate, Roam, and other due diligence) and one-off GST refund 2. Net operating cash flow is net of impairment costs

5

Receivables Performance

Receivables growth 24% exceeds 15% volume growth due to longer term

Receivables growth driven by new businesses and term increase to 33 months

Receivables

Growth

	$m FY11 FY12 FY11/12 Small Ticket Lease (Flexirent)1 356 358 1% Interest Free (Certegy) 272 357 31% Large Ticket Lease (Flexi Commercial) 63 155 146% Total Closing Receivables2 707 877 24% Average Term (new business) 30 33 10%

New businesses organically grown or acquired are +60% of receivables[3 ]

Receivables

Contribution

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$372m $691m $920m
FY08 FY11 FY12
Flexirent small $ Lease (incl B2B) Certegy Flexi Commercial large $ Lease Lombard
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Notes:

1. Excludes personal loans of $7m in FY12 and $16m in FY11

2. Includes loans & excludes $50m Lombard receivables

3. Excludes personal loan receivables.

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No Interest Ever business NPAT exceeds acquisition price

Certegy contributes 36% of Group’s FY12 Profit[1] - receivables double in 3 years.

Performance

Certegy Cash NPAT[1] $21.9m up 60%.

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FY12 volumes +17%; receivables +31% as term extends Certegy acquired for $31m and in 3 years delivers

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• $43.4m cumulative NPAT

• Receivables double from $160m to $357m

• Annual NPAT from <$5m to $21.9m

Growth Outlook

New VIP volumes to contribute circa $40m up from $17m. New industries identified and tested as growth and diversification opportunities for FY13/14.

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	No interest ever payment processing primarily in homeowner sector
	Interest Free $m FY11 FY12 FY11/12 Average Term(new business) 25 27 8% Volume2 375 439 17% Closing Receivables 272 357 31% Cash NPAT1 13.7 21.9 60%

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Highly scalable business model (FY12 NPAT +60%; Receivables +31%) due to cost efficiencies.

Notes:

1. Cash NPAT excludes intangible amortisation of $1.1m

2. Volume of $439m includes $5m of Lombard

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Interest Free and credit card business acquisition

Lombard growth +107% as capital constraints removed – positioned to mirror Certegy results

Performance

Lombard acquired June 2012

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• July 2012 volumes increase to $6.9m - up 109% from $3.3m pcp

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• New originations +100%, as IKEA performs ahead of plan

• Credit card growth doubles with onboarding improvement

• Tracking to receivables balance of $99m in FY13

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Growth Outlook

• $5b Interest Free market - Certegy and Lombard have less than 5% share. Capital now available to support Lombard growth.

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• Increase card usage – improved onboarding and enhanced interest free value proposition with increased credit limit.

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Cross sell cards to 700,000 existing and 250,000 new FXL customers. Target is 21,000 new card holders pa: 1% existing base and 5% of new customers. Begins Sept 2012.

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Interest Free originations and credit card business no longer capital constrained

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Closing Receivables $m
Pre GFC Post GFC
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NPAT/ANR expected to mirror Certegy
NPAT / ANR
5.7%
5.2%
4.5%
3.3%
2.5%
1.8%
$50m $75m $140m $200m $250m $300m
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Flexirent Leasing / Mobile Broadband deliver in challenging retail market Non retail sector volume contribution increases to 32% for FY12

Performance

• Flat small ticket leasing growth in challenging retail environment – IT market declined 20% 2[nd] half

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• 32% contribution from non-retail segment e.g. trade equipment, catering equipment, servers / networks etc Blink Mobile Broadband active customers of 81k versus 74k last year

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Growth Outlook

• Continue to capitalise on non-retail opportunities to increase segment contribution

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• Retail volumes expected to be buoyed by Ultrabooks and release of Windows 8

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Small ticket leasing of IT, electronics, and other assets plus Mobile Broadband plans

	Small Ticket $m	FY11	FY12	FY11/12
	Average Term(new business)	34	37	9%
	Volume1	259	260	1%
	Closing Receivables1,2	356	358	1%
	Cash NPAT	36.5	36.5	0%
	Investment in Online	-	(-2.0)
	Cash NPAT	36.5	34.5	-5%

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• Scale efficiencies - Flexirent infrastructure (IT, Call Centre, Credit and Risk, Marketing etc), supports four businesses: small ticket leasing, Vendor Finance, Blink mobile broadband and Paymate

Notes:

1. Volume includes mobile broadband gross access and excess revenue.

2. Closing receivables excludes loans which were $7m as at 30-Jun-12 and $16m as at 30-Jun-11.

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Paymate acquisition – platform for online and mobile payments Leverage system and target high growth mobile payments segment

Performance

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Cut over system from U.S. at end April 2012 – system development completes August 2012

Paymate Timeline

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• Respond to competitor mobile payment launch within 8 weeks with Paymate OnTheGo release

eBay to complete website changes by Sept – marketing campaign planned

IT development: – compliance, stability, speed, Paymate On the Go

Paymate OnTheGo with ROAM – turn a smart phone into a card device. Ideal for mobile, cash based merchants

U.S. market – more mature ROAM and Square dominate

• 2 million mobile devices transacting $10b per year from cash based merchants

• 75% by SME with no prior credit card merchant service

Potential Australian Market

• +2 million small & medium businesses

• The service sector is 85% of value - $390b

• Mobile merchants approximately 10%

Launched Paymate OnTheGo pilot in July

• 400 SME’s signed up & transacting

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Flexi Commercial organic start-up achieves $100m volume forecast

Contributes $4.9m NPAT an increase of 88% on FY11

Performance

Volumes increase to $102m up from $61m driven by:

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• 65 existing and 41 new vendor relationships

• 35% of volume from new relationships

• Growth from print/copier, photo lab, telephony, office networking and software segments

Receivables growth of 146% exceeds volume growth due to longer average term

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Growth Outlook

Higher receivables income on fixed cost base to drive increased profit contribution in FY13.

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Commercial Leasing through Original Equip. Manufacturers (OEM) and Vendors

	Lease: OEM / Vendor $m FY11 FY12 FY11/12 Average Term(new business) 46 50 9% Volume 61 102 66% Closing Receivables 63 155 146% NPAT 2.6 4.9 88%

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Energy Smart Finance Program (signed Feb 2012) with government funded Low Carbon Australia expected to drive growth in green technologies

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Results analysis Garry McLennan Chief Financial Officer

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Cash NPAT up $8.4m to $61.3m

Strong receivables growth and scale efficiencies underpin 6 year NPAT CAGR of 16%

Performance

FY12 Cash NPAT up 16% on FY11:

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• Strong interest margin from receivables growth of 24%

• Cost to income ratio from 45% to 42% due to scale efficiencies

• Loss performance improves with contribution from high quality commercial / SME and home owner

Outlook

Leveraging existing infrastructure to deliver scale efficiencies and increase returns .

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Lower funding costs from securitisations and lower market interest rates

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Strong volume growth opportunities in commercial and interest free businesses will underpin future earnings growth

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FlexiGroup NPAT Bridge FY11 – FY12 ($m)
13.2 (2.0)
(1.1)
(0.2) (1.4) 61.3
52.9
16% Growth
-
FY11 Cash Net Other Opex Loss Tax FY12 Cash
NPAT Portfolio Income Impairment NPAT
Income
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Impairment Result

Impairment ratio reduced 70 bps despite 24% receivables growth[1]

Performance

• Net impairment losses improved by 70 bps to 3.1% of average net receivables.

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• Business diversification reduces credit risk

• Portfolio mix of lower risk interest free and commercial receivables increases to 56% from 48%

• 90 day plus arrears 0.7% remains flat to pcp

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Outlook

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FY11/12
Net Impairment Losses FY11 FY12
Growth
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Leases	$10.2m	$11.3m	11%
Personal Loans	$3.4m	$1.7m	-50%
Leases/Personal Loans	$13.6m	$13.0m	-4%
Certegy	$8.7m	$9.2m	5%
Loss Provision	$0.9m	$1.4m	50%
Net Impairment Losses	$23.2m	$23.5m	1%
% of Avg Receivables	3.8%	3.1%	(70 bps)

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• Mix of commercial and interest free business expected to be maintained

90 Day Plus Delinquency %

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• Impairment cost to ANR expected to continue at current levels

Notes:

1. 24% receivables growth excludes $50m Lombard receivables.

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Cash Flow Performance

FXL diversification into lower cost rated funding structures almost complete

Performance

• Net Operating cash flows grew 6.7% to $87.2m[1 ]

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• $41.4m investment in funding business growth

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• $20m new corporate facility to provide additional cash support for growth

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• Business acquisition comprised:

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• $1.1m Paymate

• $3.0m Lombard

• $15m Certegy 3 year deferred vendor note

Outlook

• $30m in cash to be generated from $255m Aug securitisation

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• Additional $30m corporate facility approved since 30 Jun 12 to fund future growth

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FlexiGroup Cash Flow Bridge FY12 ($m)
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87.2 (9.5)
(41.4)
20.0 (19.1)
(32.0)
2.0 63.2
56.0
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Notes:

• 1 Net operating cash flow is net of impairment costs.

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Balance sheet well structured

Conservatively geared at 9% - SPV borrowings are non-recourse to FXL

Performance – Recourse Balance Sheet (excl. SPV’s)

FXL has continued to de-leverage, with recourse . Debt/Equity at 9%[1]

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Total equity now $271m compared to $54m at IPO. Return on Equity (cash) at 24%

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Borrowings are matched to contract term.

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Outlook

$30m additional corporate debt approved since reporting date

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Summarised Balance Sheet
FlexiGroup FlexiGroup
as at 30 June 2012 Excl. SPV's incl SPV's
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	Cash at Bank 63.2 63.2 Receivables 65.9 909.8 Investment in unrated notes in securitisation vehicles 95.6 - Other Assets 60.2 60.2 Goodwill and Intangibles 108.9 108.9
	Total Assets 393.8 1,142.1
	Borrowings 23.9 792.1 Cash Loss Reserves available to Funders - (19.9) Other Liabilities 99.1 99.1
	Total Liabilities 123.0 871.3
	Total Equity 270.8 270.8 Gearing 9% N/A

Notes:

1. Gearing = Recourse borrowings as a percentage of FlexiGroup equity

Explanatory Notes:

1. FXL’s lease and interest free receivables are funded by non-recourse borrowings from Banks and securitisation vehicles

2. Non-recourse borrowings equals FlexiGroup’s total borrowings of $792.1m less borrowings ($23.9m) which have recourse to FlexiGroup Limited

3. Non-recourse borrowings are secured against FXL’s lease and interest free receivables and cash security in Special Purpose Entities (SPV’s)

4. The cash security provided by FXL represents restricted cash at bank and Loss Reserves on FXL’s balance sheet

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Funding

Strong support from banks and institutions, funding diversified to 8 sources

Performance

New committed facilities and securitisations provide diversity in funding to support growth.

Funding Facilities

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New facilities of $261m approved in FY12

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• $255m securitisation completed in early August 2012 for Certegy receivables

• Rated by Moodys and Fitch ($191m rated AAA, $28m rated AA)

• All AAA, AA, A, BBB and BB notes totalling $242m fully sold with multiple institutional bidders for all notes

Outlook

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• FXL has committed bank facilities in place to support growth

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• Reviewing opportunities for further securitisations and other debt capital market issuances to further increase diversification of funding

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FlexiGroup Receivables Funding Strategy

Capital Market capability demonstrated by this week’s $255m Certegy securitisation

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Originate Warehouse Package Sell
Funded by bank Receivables are Rated Notes are sold
Originate Certegy
securitisation Packaged & rated by to Institutional
receivables
warehouse Moody’s & Fitch Investors
Bank Class A1 - $89.25m F1+sf/P-1(sf)
Funding
at
“AAA” & Class A2 - $102m AAAsf/Aaa(sf)
“AA” internal
rating Rated Notes sold Class B - $28.05m AAsf/Aa2(sf)
to Institutional
Investors
Class C - $11.47m Asf/A2(sf)
Class D - $6.38m BBBsf/Baa2(sf)
Class E - $5.1m BBsf/Ba2(sf)
FXL Class F - $12.75m NR
Investment $12.75m
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Results

• Capital Efficiency – frees up $30m+ in cash (FXL retains 5% investment ($12.75m) vs c$45m in bank warehouses

Lower cost of funds[1 ] – F1 notes sold at 70bpts; AAA notes sold at 150bpts

Funding diversity – 8 Institutions invested when sold to the market

Notes:

1. On a like for like basis – margins are over BBSW

18

Strategy and Outlook

John DeLano Chief Executive Officer

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Diversification and Innovation Culture are the core of strong result FXL strategy at a glance (see Appendix for detail)

Culture of Innovation drives diversification

Leverage core Identify an infrastructure Innovate to Organic startunderserviced IT, contact centre, drive growth up or accretive market collections, sales & and profit acquisition training

3 acquisitions, 2 startups = diversified product suite

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Shift from Retail point of sale to diversified B2B, B2C, Online

Diversification drives high volume growth

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FY08 FY10 FY12
$269 million $549 million $801 million
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Since IPO, strong results consistently exceeding expectations

EPS, DPS, TSR performance consistently in Top Quartile of ASX 300

Consistently met forecast since IPO – NPAT CAGR 16%

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Cash NPAT $m
Forecast
61.3
52.9
41.6
32.3 33.5
29.3
FY07 FY08 FY09 FY10 FY11 FY12
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Receivables 5 Year CAGR of 14%

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Closing Receivables $m
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927
707
593
540
472 482
FY07 FY08 FY09 FY10 FY11 FY12
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Return on equity of 24%

Dividend payout 50%-60%

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Total Equity $m
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Fully franked annual dividend
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271
233
206
119
99
84
FY07 FY08 FY09 FY10 FY11 FY12
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12.5c
10.5c
7.5c
6.0c
FY09 FY10 FY11 FY12
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Forecasting is accurate due to visibility of committed income

73%[1] of income locked in at start of year

Consistent trend of Portfolio income[2] / ANR

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Income by receivables source
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Portfolio Income $m

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73% 51%
Repeat
Existing Repeat
New
New Existing
Current year Following year
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29% weighted average of ANR
218
192
178
156
FY09 FY10 FY11 FY12
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Combined with underlying receivables growth

Drives predictable NPAT result - a 3 year 22% CAGR

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Receivables [3] $m
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877
540
18% CAGR
FY09 FY12
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Cash NPAT $m
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61.3
33.5
22% CAGR
FY09 FY12
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Notes

• 1 Typically 73% of income is predominantly locked in (from existing receivables) 2 Portfolio income excludes borrowing costs and losses

• 3 FY12 Excludes $50m Lombard receivables

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Strong NPAT growth is sustainable

Receivables growth of 18% is expected to continue through FY14

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Certegy and Flexi Commercial volumes are increasing the duration of the Group's receivables portfolio

Slower run-off, as a result, is driving faster portfolio growth from new volume

• Historical receivables growth rates (18% 3 year CAGR) can be sustained from materially lower levels of new business

Minimum new business growth is required in FY13 to achieve 18% receivables growth

The outlook for new business remains strong

Receivables Bridge

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18% 3 year CAGR 18% Growth
1,090
49
927 (270)
50
384
707 (222) 392
540 44%
of Rec
55%
ofRec
Lombard
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Notes

1 New business volumes net of current year run-off, mobile broadband and Certegy merchant fee revenues

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Strong NPAT growth is sustainable

Borrowing Costs reduce as FXL exits higher cost GFC funding

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Post GFC funding paradigm requires more FXL capital - asset level gearing from 107% to 84%

• Owned receivables have increased. No funding costs for owned receivables

• Owned receivables funded by retained operating cash, corporate borrowings and proceeds of securitization

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Asset gearing reduces Owned receivables increase
FY06 FY07 FY08 FY09 FY10 FY11 FY12
107.7% 105.2% 101.3% 100.2%
91.1%
82.9% 84.9%
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Cost of funds reduce with transition from higher cost GFC funding to lower cost securitization.

Interest Expense / Avg Borrowings to reduce 170bps from FY11

Interest expense / avg borrowings $m Interest expense $m

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Total borrowing costs 9% 3 year CAGR compared to 18% receivables growth.

Expect cost of fund and borrowing cost trend to continue through FY14

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Outlook: Strong NPAT growth is sustainable

FY13 guidance 11% to 16% with continued performance yielding strong FY14 result

Summary FY13 NPAT Impact Net income from receivables growth and funding cost benefits expected to deliver $11m additional NPAT

Partially offsetting incremental income are costs of $1 - $4m from two initiatives:

• Investment in shared services to leverage scale across the group (e.g. credit, systems, operations)

• “Paymate OnTheGo” marketing investment to secure share in high growth new market

				FY13
		Prior year Cash NPAT		61
		Receivables growth - 18% CAGR		7
		Funding Costs Benefit		4
		Shared services initiatives and Paymate OnTheGo		(1-4)
		End of Year		68 - 71

Outlook for FY13

FY13 Guidance is 11% to 16% NPAT growth ($68m to $71m) - increasing in FY14 as income and opex savings from the above initiatives are realised.

Solid Volume growth forecast in FY13 from:

• Lombard Interest Free acquisition - no longer capital constrained

• Repeat volumes accelerate with increased opening receivables base

• No Interest Ever (Certegy), and Vendor Finance with continued solid growth

Continued focus on value accretive acquisition opportunities

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Appendix 1 - Detailed Statutory Profit & Loss

A$ MILLION	FY11	FY12
Total portfolio income	215.0	241.2
Interest expense	(52.1)	(59.5)
Net Portfolio Income	**162.9 **	**181.7 **
Other income	7.9	5.0
Operating Income (before impairment)	**170.8 **	**186.7 **
Impairment losses	(22.3)	(22.1)
Loss provision	(0.9)	(1.4)
Operating Income (after impairment)	147.6	163.2
Payroll and related expenses	(50.2)	(48.2)
Depreciation & amortisation expenses	(5.1)	(6.3)
Other expenses	(21.4)	(23.8)
Total Expenses	(76.7)	(78.3)
Net Profit Before Tax	**70.9 **	**84.9 **
Tax expense	(18.0)	(23.6)
Cash Net Profit After Tax1	**52.9 **	**61.3 **
Non-recurring acquisition costs net of one-off GST refund	0.0	(0.9)
Amortisation of acquired intangibles & access rights	(1.1)	(1.4)
Statutory Net Profit After Tax	**51.8 **	**59.0 **

Notes:

1. Cash NPAT excludes $1.4m (2011 $1.1m) of intangible amortisation and $.9m net from one off acquisition costs (relating to Lombard, Paymate, Roam, and other due diligence) and one-off GST refund.

26

Appendix 2 - Detailed Statutory Balance Sheet

A$ MILLION	Jun-11 Jun-12 Jun-11 Jun-12 56.0 63.2 56.0 63.2 707.4 926.6 152.9 178.3 (13.9) (17.2) (13.9) (17.2) 693.5 909.4 139.0 161.1 43.5 45.5 43.5 45.5 0.2 0.2 0.2 0.2 0.1 0.3 0.1 0.3 3.4 5.1 3.4 5.1 8.4 9.5 8.4 9.5 79.9 88.7 79.9 88.7 17.5 20.2 17.5 20.2 902.5 1,142.1 348.0 393.8 610.4 792.1 20.6 23.9 (35.3) (19.9) (0.0) (0.0) 575.1 772.2 20.6 23.9 15.0 0.0 15.0 0.0 29.8 39.9 29.8 39.9 11.3 13.6 11.3 13.6 4.3 4.3 4.3 4.3 0.2 2.9 0.2 2.9 33.6 38.4 33.6 38.4 669.3 871.3 114.8 123.0 233.2 270.8 233.2 270.8 76.6 88.1 76.6 88.1 (0.3) (1.2) (0.3) (1.2) 156.9 183.9 156.9 183.9 233.2 270.8 233.2 270.8 Excluding SPV's
Assets Cash at bank Loans and receivables Allow ance for losses Other receivables Rental equipment Inventory Plant and equipment Deferred tax assets Goodw ill Other intangible assets
Total Assets
Liabilities Borrow ings Loss reserve Net borrow ings Vendor note Payables Current tax liability Provisions Derivative financial instruments Deferred tax liabilities
Total Liabilities
Net Assets
Equity Contributed equity Reserves Retainedprofits
Total Equity

27

A endix 3 - Detailed Statutor Cash Flows pp y

A$ MILLION	FY11	FY12
Cash flows from operating activities
Net interest received	137.3	152.7
Other portfolio income	97.7	103.3
Payments to suppliers and employees	(98.8)	(71.7)
Borrow ing costs	(49.4)	(56.3)
Taxation received/(paid)	18.0	(17.3)
Net cash inflow provided from operating activities	**104.8 **	**110.7 **
Cash flows from investing activities
Capital expenditure	(8.8)	(9.5)
Payments for business acquisitions	0.0	(4.1)
Net (increase)/decrease in:
Customer loans	(80.1)	(87.4)
Receivables due from customers	(55.8)	(110.6)
Net cash outflow from investing activities	(144.7)	(211.6)
Cash flows from financing activities
Dividends paid	(26.2)	(32.0)
Proceeds from issue of shares on vesting of share options	0.0	2.0
Payment of vendor note on Certegy acquisition	0.0	(15.0)
Net increase / (decrease) in:
Borrow ings	32.9	137.7
Loss reserves	14.4	15.4
Net cash (outflow)/inflow from financing activities	**21.1 **	**108.1 **
Net (decrease)/increase in cash and cash equivalents	(18.8)	**7.2 **
Cash and cash equivalents at the beginning of the year	**74.8 **	**56.0 **
Cash and cash equivalents at the end of the year	**56.0 **	**63.2 **

28

FlexiGroup Overview

FlexiGroup is a diversified financial services group providing point of sale interest free, no interest ever, leasing, vendor programs, credit card and other payment solutions to consumers and businesses

Background	 Founded in 1988 leasing office equipment to business  Leading provider of consumer/small business retail point-of-sale finance  Diversified products include: interest free, credit card, no interest eve~~r, vendor~~ finance / commercial leasing, mobile broadband, online & mobile payment services	30 Jun YE(A$m) FY09 FY10 FY11 FY12
		Notes: 1 FY12 Closing Receivables includes $50m Lombard receivables 2 Cash NPAT pre amortisation of Certegy intangibles. FY10 cash NPAT excludes $18.4m tax credit relating to re-setting of cost base of assets FXL FY13 Guidance: Cash NPAT 11% – 16% growth Closing Receivables1 540 593 707 927 growth na 10% 19% 31% Revenue 184 204 223 246 growth na 11% 9% 10% EBITDA 53 63 76 91 margin 10% 11% 11% 10% EBIT 48 58 71 85 margin 9% 10% 10% 9% Cash NPAT2 34 42 53 61 growth na 22% 27% 16%
Market High performance culture Balance sheet  IPO in 2006  ASX200 stock (effective 20 July 2012) with market cap of approximately A$900m  2ndin ASX300 for total shareholder returns for 4 years(ASX 300 Industrials excl. Mining)  Well capitalised with strong balance sheet capacity – return on equity 24% – highly diversified funding with committed facilities from Australian and International institutions to support growth  Talented management team with capability to manage much larger organisation  Australia and New Zealand Best Employers — AON Hewitt  Australia’s Best Contact (Call) Centre — ATA Award  International IT Award — ICMG Architecture Excellence Acquisitions  Management with significant acquisition experience, have successfully acquired:  Lombard Finance Interest Free and Visa card business in Jun 2012  Paymate online and mobile payment business in Dec 2011  Certegy in 2008 – has outperformed management expectations  Conservative approach to acquisitions - target accretive, high volume, retail point of sale similar to Certegy Distribution platform  700,000 finance customers, 11,000 active retailers, 81,000 broadband subscribers, $927million in receivables  Distribution network across multiple industries, including strong relationships with: – AGL Solar, Husqvarna, Toys-R-Us, Apple resellers, M2 Commander, Harvey Norman, Noel Leeming, GPD, Kitchen Connection, IKEA and Fantastic Group Strong risk profile  eRisc award winning credit assessment system  20 years experience in consumer & business credit embedded in scoring systems
Acquisitions

29

Flexigroup Overview

Strategy: Diversification and Innovation Culture are the core of strong result

Culture of Innovation drives diversification

Identify an underserviced market

Leverage core infrastructure IT, contact centre, collections, sales & training

Innovate to drive growth and profit

Organic start-up or accretive acquisition

Driving high volume growth through segment diversification

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FY08 FY10 FY12
$269 million $549 million $801 million
54% 36% 45% 34%
100%
10% 21%
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30

Flexigroup Overview

Strategy: Delivers 3 acquisitions, 2 organic startups and a diversified product suite

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Credit card to Consumer
Business to Consumer
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• Trading since 1989, acquired Oct 08

• Trading since 2002, acquired May 2012

• Interest free & cheque guarantee products offered in diverse industries

• Interest free point of sale card finance company

• Retail partners are offered interest free product and customers are cross sold a Visa card

• Increases sales volumes for retailers

• No interest (ever) payable by the customer

• Visa card subsequently used for everyday retail purchases

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Retail and Online to
Business to Business
Consumer & SME
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• Trading since 1988, IPO Dec 2006

• Recruited an experienced industry team in Nov 09

• OEM / Vendor leasing to business

• Lease and mobile broadband offered in IT, electrical & other channels

• Increase sales volumes for OEMs / Vendors

• Online & mobile payment solutions via Paymate

• Affordable, tax deductible means for customers to acquire assets

• Preserves margin for the retailer / merchant

• Customers get loaner, protect & affordable monthly payments

Key metrics

• $360 million receivables

• 27 month avg term (new)

• ~ 20-30% growth%

Key metrics

• $50 million receivables

• 24 month avg term (new)

• High growth

Key metrics

• $358 million receivables

• 37 month avg term (new)

• low growth

Key metrics

• $155 million receivables

• 50 month avg term (new)

• High growth

Small business & retail “No Interest Ever”

Retail point-of-sale Interest Free

Retail / Online point-of-sale Lease, Mobile Broadband & mobile payment solutions

OEM & vendor lease to commercial accounts

31

Flexigroup Overview

Strategy: Shift from retail point of sale to diversified financial services

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Established High Growth FXL Segments
Acquisition
Growth in Online $37b forecast in 2013.
Note:
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1. Indicative split based on receivables
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32

Flexigroup Overview

Strategy: Deep and talented management team with experience to run much larger organisation

	FXL Management Team		Previous role and scale	Experience vs FXL
	Garry McLennan CFO 4 years, 35 staff – receivables $927m		COO/CFO - HSBC Australia 500 staff - $30b total assets	15 times
	Jeff McLean
	Head of Operations – 5 yrs 45 staff – receivables $927m		Head of Operations - Credit Corp 320 Staff - $70m revenue p.a.	7 times
	Marilyn Conyer Head of Marketing 6 yrs, 8 staff – volume of $260m		Marketing Director - Optus Business 100 staff - $1.4b technology provider	8 times
	Anthony Roberts Head of Vendor Finance 3 yrs ,14 staff , receivables of $155m		General Manager - CIT Corp. Financial Services 80 staff - receivables of $350m	6 times
	Michelle Pombart Head of Human Resources 3 yrs, 5 staff, total staff pool 600		Head of Communication - Vodafone Australia 10 Staff - revenue of $2.2b total staff of 2,000	4 times
	Ben Taylor Head of Innovation & Product Dev.		Commercial Manager - AOL Australia 120 Staff - 180k customers.	7 times
	10 yrs, 2 staff

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Flexigroup Overview

Strategy: Deep and talented management team with experience to run much larger organisation

	FXL Management Team	Previous role and scale	Experience vs FXL
	David Stevens
	Head of Finance & Planning 5 yrs, 26 staff – receivables $927m	Senior Manager – PricewaterhouseCoopers 80 staff – 1.3b revenue	3 times
	Peter Lirantzis
	CIO 6 mths, 45 staff – IT initiatives $5m	Head of IT Customer Assisted Services - Westpac 350 staff - $50m IT change initiatives	7 times
	Rob May General Manager – Certegy Finance 13 yrs,120 staff – receivables $357m	Sales Director – Equifax Australia 107 staff – 30,000 customers	Expert
	Jane Scotcher
	Head of Retail Sales 10 yrs, 28 staff, $200m in sales	Previous FlexiGroup roles - Channel Marketing Manager, Salary Packaging business development	Expert
	Dean Hutton
	General Manager – Lombard Finance 10 yrs, 59 staff – receivables $50m	Operations Manager – FAI Finance 40 staff – receivables $100m	Expert
	Andrew Pipolo Head of Ecommerce 1 yr, 7 staff , payments of $20m	Managing Director – PayPal APAC 20 staff – payment volume $1b, 5 million customers	15 times
	Brad Hagstrom Head of Contact Centre 6 yrs, 180 Staff, $260m sales	Sales / Operations – GE Money 50 Staff - $450m revenue	2times

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