TYRO PAYMENTS LIMITED — Audit Report / Information 2021

Feb 21, 2021

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Tyro Payments Limited APS 330 PRUDENTIAL DISCLOSURE

31 DECEMBER 2020

ABN 49 103 575 042

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APS 330 Prudential Disclosure

Table of Contents[1]

Attachment A: Capital Disclosure Template	3
Table 1: Capital Disclosure and Regulatory Capital Reconciliations	3
Attachment B: Main Features of Capital Instruments	6
Table 2: Main Features	6
Attachment C: Risk Exposures and Assessment	6
Table 3: Capital Adequacy	6
Table 4: Credit Risk	6
Table 5: Securitisation	7

1 Table number references as per APS 330

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APS 330 Prudential Disclosure

31 December 2020

Attachment A: Capital Disclosure Template

Table 1: Capital Disclosure and Regulatory Capital Reconciliations

Table 1A: Capital Disclosure

The table should be read in conjunction with Tables 1B and 1C.

Row	Description	31 Dec 2020	Reference
		$’million
Common Equity Tier 1 Capital: instruments and reserves
1	Directly issued qualifying ordinary shares (and equivalent for mutually-	268.8
	owned entities) capital
2	Retained earnings	(107.5)
3	Accumulated other comprehensive income (and other reserves)	30.9	Table 1B
6	Common Equity Tier 1 capital before regulatory adjustments	192.2	Table 1C
Common Equity Tier 1 capital: regulatory adjustments
9	Other intangibles other than mortgage servicing rights (net of related tax liability)	(3.2)	Table 1B
10	Deferred tax assets that rely on future proftability excluding those arising from temporary differences (net of related tax liability)	(13.9)	Table 1B
26	APRA specifc regulatory adjustments (sum of rows 26a, 26b, 26c, 26d,	(11.5)
	26e,26f, 26g, 26h, 26i and 26j)
26f	of which: capitalised expenses	(5.8)	Table 1B
26g	of which: investments in commercial (non-financial) entities that are deducted under APRAprudential requirements	(5.7)	Table 1B
28	Total regulatory adjustments to Common Equity Tier 1	(28.6)
29	Common Equity Tier 1 Capital (CET1)	163.6
45	Tier 1 Capital (T1=CET1+AT1)	163.6	Table 1C
Tier 2 Capital: instruments and provisions
50	Provisions - General Reserve for Credit Losses	1.3	Table 1C
58	Tier 2 capital (T2)	1.3
59	Total capital (TC=T1+T2)	164.9	Table 1C
60	Total risk-weighted assets based on APRA standards	115.5
Capital ratios and buffers
61	Common Equity Tier 1(as a percentage of risk-weighted assets)	142%
62	Tier 1(as a percentage of risk-weighted assets)	142%
63	Total capital(as a percentage of risk-weighted assets)	143%
64	Buffer requirement(minimum CET1 requirement of 4.5% plus capital	6%
	conservation buffer of 1.5% plus any countercyclical buffer requirements
	expressed as a percentage of risk-weighted assets)
65	of which: capital conservation buffer requirement	1.5%
66	of which: ADI-specific countercyclical buffer requirements	0%
68	Common Equity Tier 1 available to meet buffers(as a percentage of risk-	136%
	weighted assets)

All amounts are presented in Australian dollars and rounded to the nearest million.

TYRO PAYMENTS LIMITED – APS330 PRUDENTIAL DISCLOSURE - 31 DECEMBER 2020

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Attachment A: Capital Disclosure (continued)

Table 1B: Balance Sheet Reconciliation

As at 31 December 2020	Statutory Balance Sheet	Adjustment	Regulatory Balance Sheet	Reference
	$’million	$’million	$’million
Assets
Cash and cash equivalents	130.1	-	130.1
Due from other fnancial institutions	38.1	-	38.1
Trade and other receivables	27.7	(1.4)	26.3	Table 1C
Loans	4.4	(0.3)	4.1	Table 1C
Prepayments and other assets	2.7	-	2.7
Net investment in sublease	1.0	-	1.0
Inventories	0.1	-	0.1
Financial investments
Floating rate notes	70.4	-	70.4
Equity investments	3.8	-	3.8	Table 1A Row 26g
Investment in associate	1.9	-	1.9	Table 1A Row 26g
Intangible assets	9.0	-	9.01,2	Table 1A Row 9
				Table 1A Row 26f
Property, plant and equipment	16.6	-	16.6
Right of use assets	3.1	-	3.1
Deferred tax assets	13.9	-	13.9	Table 1A Row 10
Total Assets	322.8	(1.7)	321.1
Liabilities
Deposits	104.0	-	104.0
Trade payables and other liabilities	13.7	-	13.7
Lease liabilities	5.2	-	5.2
Provisions	6.0	-	6.0
Total Liabilities	128.9	-	128.9
Net Assets	193.9	(1.7)	192.2
Equity
Contributed equity	268.8	-	268.8
Reserves	32.6	(1.7)	30.9	Table 1A Row 3
Accumulated losses	(107.5)	-	(107.5)
Total Equity	193.9	(1.7)	192.2	Table 1C

1 Intangible assets of $3.2m are deducted as a regulatory adjustment from the Common Equity Tier 1 Capital under Prudential Standard and APRA’s approval.

2 Capitalised expenses of $5.8m are deducted as a regulatory adjustment from the Common Equity Tier 1 Capital under Prudential Standard

All amounts are presented in Australian dollars and rounded to the nearest million.

TYRO PAYMENTS LIMITED – APS330 PRUDENTIAL DISCLOSURE - 31 DECEMBER 2020

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Attachment A: Capital Disclosure (continued)

Table 1C: Capital Reconciliation

Regulatory Capital Reconciliation	31 Dec 2020	Reference
	$’million
Contributed equity	268.8
Retained and current year's earnings	(107.5)
Reserves	32.6
Total Equity per Balance Sheet	193.9
General reserves for credit losses	(1.7)	Table 1B
Total Equity per Regulatory Balance Sheet	192.2	Table 1A Row 6
Deferred tax assets in excess of deferred tax liabilities	(13.9)
Capitalised expenses	(5.8)
Equity exposures in commercial (non-fnancial) entities	(5.7)
Other intangibles other than mortgage services rights	(3.2)
Tier 1 Capital	163.6	Table 1A Row 45
General reserve for credit losses - Standardised approach (to a	1.3	Table 1A Row 50
maximum of 1.25% of total credit RWA)
Total Capital	164.9	Table 1A Row 59

All amounts are presented in Australian dollars and rounded to the nearest million.

TYRO PAYMENTS LIMITED – APS330 PRUDENTIAL DISCLOSURE - 31 DECEMBER 2020

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Attachment B: Main Features of Capital Instruments

Table 2: Main Features

The main features of capital instruments are updated on an ongoing basis and are available at the Regulatory Disclosures section on the Company’s website: https://www.tyro.com/about-tyro/investors/

Attachment C: Risk Exposures and Assessment

Table 3: Capital Adequacy

Risk weighted assets	31 Dec 2020	30 Sep 2020
	$’million	$’million
Bank & other fnancial institutions	48.3	43.2
Business lending	3.8	5.4
Government	-	-
Other	51.1	42.3
Total credit risk	103.2	90.9
Operational risk	12.3	10.4
Total risk weighted assets	115.5	101.3
Capital adequacy ratios	31 Dec 2020	30 Sep 2020
	%	%
Common Equity Tier 1 Capital	142%	163%
Tier 1 Capital	142%	163%
Total Capital	143%	165%

Table 4a: Credit Risk - Total Gross & Average Credit Risk Exposures

Credit risk exposure by major types	Total	Total
	31 Dec 2020	30 Sep 2020	Quarter Average
	$’million	$’million	$’million
Cash and liquid assets	130.1	116.6	123.3
Investment securities	70.4	66.3	68.4
Due from other fnancial institutions	38.1	38.4	38.3
Loans	4.4	6.0	5.2
Other assets	51.2	43.7	47.4
Credit risk exposure by portfolio	Total	Total
	31 Dec 2020	30 Sep 2020	Quarter Average
	$’million	$’million	$’million
Government	58.6	54.5	56.5
Bank & other fnancial institutions	180.7	168.8	174.8
Business lending	3.8	5.4	4.6
Corporate	-	-	-
Other	51.1	42.3	46.7

All amounts are presented in Australian dollars and rounded to the nearest million.

TYRO PAYMENTS LIMITED – APS330 PRUDENTIAL DISCLOSURE - 31 DECEMBER 2020

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Attachment C: Risk Exposures and Assessment (continued)

Table 4b: Credit Risk - Impaired assets, Past due loans, Provisions and Write-offs

Impaired and past due facilities by portfolio	31 Dec 2020	30 Sep 2020
	$’million	$’million
Past due facilities	-	-
Impaired facilities	0.8	0.5
Specifc provisions	0.2	0.1
Charges for specifc provisions	0.2	-
Write-offs	0.2	0.5

Table 4c: Credit Risk - General Reserve for Credit Losses

General reserves for credit losses	31 Dec 2020	30 Sep 2020
	$’million	$’million
Reserve for credit losses	1.7	1.7
Collectiveprovision for impairment	N/A	N/A
Table 5: Securitisation
Securitisation exposures	31 Dec 2020	30 Sep 2020
	$’million	$’million
Total amount of exposures securitised	N/A	N/A
Recognised gain/(loss) on sale	N/A	N/A
Aggregate amount of off-balance sheet securitisation exposures	N/A	N/A

All amounts are presented in Australian dollars and rounded to the nearest million.

TYRO PAYMENTS LIMITED – APS330 PRUDENTIAL DISCLOSURE - 31 DECEMBER 2020

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FINANCIAL STATEMENTS (cont’d)

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TYRO PAYMENTS LIMITED – APS330 PRUDENTIAL DISCLOSURE - 30 JUNE 2020

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