WISR LIMITED — Interim / Quarterly Report 2021

Jul 28, 2021

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ASX RELEASE

Quarterly Activities Report

Quarterly revenue Growth of 234% on pcp delivers a Positive Operating Cash Flow Result

for June

Sydney, 29 July 2021 - Wisr Limited (ASX: WZR) (ACN 004 661 205) (“Wisr”, or the “Company”) is pleased to provide a trading update for the quarter ending 30 June 2021 (Q4FY21). The Company continues to demonstrate the effectiveness of the Wisr business model, delivering 20 consecutive quarters of loan origination growth, an accelerated Q4FY21 of revenue growth, quality loan book metrics leading to an inaugural ABS issue in the quarter and delivering a maiden positive operating cash flow result for the month of June.

Q4FY21 Highlights:

• Operating revenue up: record quarter of $9.7M[1] for Q4FY21, a 234% increase on Q4FY20 ($2.9M) and a 29% increase on Q3FY21 ($7.5M)

• 20 consecutive quarters of growth: record $123M quarter, a 193% increase on Q4FY20 ($42M) and a 27% increase on Q3FY21 ($97M)

• Secured vehicle loan product growth: 64% QonQ, with $36M or 29% of the $123M (Q3FY21 $22M)

• Total loan originations now $611M as at 30 June 2021 (149% growth from pcp), bringing Wisr’s wholly-owned loan book (warehouse and securitised) to $379M, growth of 342% on pcp

• Successful inaugural $225M issue of asset-backed securities (“ABS”), including a AAA-rated senior tranche, delivering a ~50% reduction in Wisr’s cost of funds

• The Wisr Financial Wellness Platform passing 450,000 profiles (80% growth on pcp), with 48,600 profiles added in Q4FY21

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1 Revenue unaudited

Wisr Limited ACN 004 661 205 55 Harrington Street, The Rocks NSW 2000

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CEO COMMENTARY:

Mr. Anthony Nantes, Chief Executive Officer, Wisr said, “It’s an incredible credit to the Wisr team for delivering 20 consecutive quarters of growth and a maiden cash flow break-even month on the back of an exceptional 234% revenue growth, compared to the same period last year. This milestone result should give the market confidence around our marketleading unit economics and our ability to deliver a highly profitable business as we continue to scale.”

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Mr. Nantes continued, “With our national brand campaign underway alongside our sponsorship of the Tokyo Olympic Games coverage, millions of Australians are now being introduced to the Wisr brand for the first time, setting us up for an exciting period of growth in the years to come. We continue to disrupt and take market share from the incumbents in consumer finance, with a superior alternative: a highly automated digital lending experience based on market leading UX, delivered alongside a customer platform focused on improving our customers' financial wellness. Wisr has a unique voice and position in the market and our aspirations are significantly bigger than our medium-term target of a $1B loan book.”

“We’ve taken prudent steps to strengthen our balance sheet with the recent equity raise that was supported by Goldman Sachs. Combined with our inaugural $225M ABS issue, these two transactions put Wisr in an incredibly strong position to extend our technology advantage and aggressively grow lending market share in the years ahead. As we enter the huge market opportunity with our secured vehicle product, Wisr is in prime position to build a company of significant scale, profitability and impact in the Australian consumer loan market, and community in which we operate.” finished Mr. Nantes.

The Company delivered new loan originations of $123M for Q4FY21, a 27% increase on Q3FY21 and a 193% increase on Q4FY20. The quarter continued an unbroken track record of 20 quarters of growth. Wisr has now reached $611M in total loan originations since inception, as the Company scales towards the medium-term target of a wholly owned $1B loan book.

Wisr Limited ACN 004 661 205 55 Harrington Street, The Rocks NSW 2000

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The Wisr Warehouse funding model continued its significant operating benefits for the Company with $9.7M in operating revenue, a 234% increase on Q4FY20 ($2.9M) and a 29% increase on Q3FY21 ($7.5M). For the first time, the Company achieved operating cash flow break-even for the month of June.

Funding and Capital

• Successful completion of significantly supported $55M capital raise through Placement and SPP

• Strongly capitalised with $95.7M in cash and liquid loan assets as at 30 June 2021 ($64.8M unrestricted cash)

• Inaugural $225M asset-backed securities ‘ABS’ transaction, the Wisr Freedom Trust 2021-1, delivering a material reduction in Wisr’s cost of funds since settlement, with a day one weighted average margin of 1.5% + 1M BBSW

• ABS deal achieved AAA Moody’s rating for top tranche and introduced global tier 1 credit market investors, both domestic and international, to the Wisr funding platform

• ABS deal also improved capital efficiency by reducing the required equity contribution to 3.2% from 5.0% (Wisr Warehouse), whilst also driving enhanced Return on Equity

The Company's inaugural $225M ABS transaction , the Wisr Freedom Trust 2021-1, received a AAA Moody’s rating for the top tranche, providing significant external validation of Wisr’s business operations, underwriting capability, loan book quality and the mature stage the business has reached. The transaction has already delivered a material reduction in Wisr’s costs of funds.

Shortly after quarter end the Company successfully completed a $55M equity raise, led by Goldman Sachs as Sole Lead Manager and Underwriter, and included a Share Purchase Plan (SPP) to retail investors. Proceeds from the capital raise will be used to fund loan book growth, technology investment and feature enhancement, and expanding TAM by exploring new markets and growth opportunities.

Wisr Limited ACN 004 661 205

55 Harrington Street, The Rocks NSW 2000

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Strong Credit Performance

• 90+ Day arrears consistently low 0.92% as at 30 June 2021

• Record Q4FY21 average credit score of 780 (Q3FY21 771), reinforcing Wisr’s financial wellness focus and ability to take attract prime credit customers

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Wisr’s market leading credit performance continued with 90+ day arrears at 0.92% as at 30 June 2021. As advised in Q3FY21, Wisr reviewed the Company’s credit decisioning to drive organic growth while optimising profitability.

WISR FINANCIAL WELLNESS PLATFORM UPDATE:

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The Wisr Financial Wellness Platform continued to grow with more than 48,600 new profiles created in Q4FY21, taking the total to over 450,000 profiles at quarter end, and on the path to 1M customer profiles. This platform allows Wisr to build

Wisr Limited ACN 004 661 205

55 Harrington Street, The Rocks NSW 2000

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better, data-driven relationships with customers at every stage of their lifecycle and has proven to be a highly cost-effective acquisition channel.

Launch of the new www.wisr.com.au website integrates the full suite of products, tools, and resources on the Wisr Financial Wellness Platform. Since launch in May, the refreshed website has resonated strongly with consumers and sponsorship of the Olympic Games Tokyo 2020 coverage offers the ideal platform to introduce Wisr to a national audience for the first time.

APPENDIX 4C QUARTERLY ACTIVITY REPORT COMMENTARY:

Per item 1.10, the net cash used in operating activities was $(0.9)M in Q4FY21 which was a 57% decrease compared to $(2.0)M in Q3FY21. Of particular note is that the Company achieved a positive net cash from operating activities for the month of June . This highlights the improvement in operational leverage as the business continues to expand.

Per item 3.1, the Company undertook a $55M capital raise during the quarter.

Per item 4.6, cash and cash equivalents at the end of Q4FY21 was $92.4M . In addition to the $92.4M, there were circa $3.3M of loans on balance sheet available for sale as at 30 June 2021.

Item 6.1 relates to salary payments to the Board of Directors.

-ends-

This announcement has been approved in accordance with the Company’s Continuous Disclosure Policy and authorised for release by the Board of Directors.

For further investor enquiries, please contact:

Vanessa Chidrawi Company Secretary E: investor@wisr.com.au

About Wisr Limited

Wisr (ASX: WZR) is Australia’s first neo-lender with a commitment to the financial wellness of all Australians, through providing a smarter, fairer and wiser collection of financial products and services. Wisr provides a unique Financial Wellness Platform underpinned by consumer finance products, the Wisr App to help Australians pay down debt, multiple credit score comparison service, combined with content and other products that use technology to provide better outcomes for borrowers, investors and everyday Australians.

For more information visit www.wisr.com.au

Wisr Limited ACN 004 661 205 55 Harrington Street, The Rocks NSW 2000

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Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Wisr Limited ABN 80 004 661 205

Quarter ended (“current quarter”) 30[th] June 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Management fee income 1.3 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.4 Dividends received (see note 3) 1.5 Interest received 1.6 Interest and other costs of finance paid 1.7 Income taxes paid 1.8 Government grants and tax incentives 1.9 Other (provide details if material) 1.10 Net cash from / (used in) operating activities	9,064 242 - (1,534) (1,631) - (3,576) (1,061) - 3 (2,375) - - -	24,305 1,176 - (5,237) (5,975) - (13,122) (3,261) - 12 (6,262) - 381 -
	(868)	(7,983)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property	- - - - -	- - (309) - -

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
(f) other non-current assets 2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) Net movement in customer loans 2.6 Net cash from / (used in) investing activities		- - - - - - - - - (95,088)	- - - - - - - - - (294,052)
		(95,088)	(294,361)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) Payments for right of use asset 3.10 Net cash from / (used in) financing activities		55,000 - 8 (3,076) 105,075 - (1,837) - (194)	55,000 - 108 (3,076) 309,325 (1,675) (2,552) - (349)
		154,976	356,781
4. 4.1 4.2	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.10 above)	33,390 (868)	37,973 (7,983)

ASX Listing Rules Appendix 4C (17/07/20)

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• See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.3 4.4 4.5 4.6	Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	(95,088) 154,976 -	(294,361) 356,781 -
		92,410	92,410
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (restricted cash) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		64,757 - - 27,653	12,282 - - 21,108
		92,410	33,390
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 55 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.			55
			-

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities 587,721 385,792 Credit standby arrangements - - Other (please specify) - - Total financing facilities 587,721 385,792 Unused financing facilities available at quarter end 201,929 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		587,721	385,792
		-	-
		-	-
		587,721	385,792
	The facilities in 7.1 are as follows: - Wisr Warehouse of $361.5m with NAB as senior funder, a cost of funds of circa 3.5%, senior maturity in November 2022 and secured against the loan receivables it funds - Wisr Freedom Trust securitisation with a current balance of $204.7m (amortising loan book) and day one weighted average margin of circa 1.5% + 1 month BBSW - Unsecured Head Co loan facility of $21.5m, with $6.5m drawn, 9.5% pa coupon and maturity in May 2023 In Q1FY18, an off-balance sheet wholesale funding agreement was entered into structured around the whole loan purchase of Wisr originated assets. The balance as at 30 June 2021 was circa $48 million. Wisr continues to manage this loan book but is not using the facility to fund loans at present

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.10) (868) Cash and cash equivalents at quarter end (item 4.6) 92,410 Unused finance facilities available at quarter end (item 7.5) 201,929 Total available funding (item 8.2 + item 8.3) 294,339 Estimated quarters of funding available (item 8.4 divided by item 8.1) 339 Note: if the entity has reported positive net operating cash flows in item 1.10, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. Wisr notes Item 8.3 above is utilised for loan funding as opposed to operating expenses If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(868) 92,410 201,929
		294,339
	Answer:

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

• 8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer:

• 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer:

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 29 July 2021

Authorised by: The Board

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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