Slide 1: 2024 Full Year Results
Investor Presentation 2024 Full Year Results 27 February 2025
Slide 2: Acknowledgement of Country
PEPPER MONEY Acknowledgement of Country Pepper Money acknowledges Australia’s First Nations people as the Traditional Custodians of the land and their continuing connection to country, sea and water. We pay respect to their Elders past and present. © Pepper Money Limited. 2
Slide 3: Today's Presenters
PEPPER MONEY Today’s Presenters Mario Rehayem Joined Pepper Money in 2011, and appointed CEO of Pepper Money in 2017 Therese McGrath Joined Pepper Money in 2018 Chief Executive Chief Financial Officer Over 20 years of experience across Officer Over 25 years of international experience banking and fi
Slide 4: CY2024 Performance
PEPPER MONEY CY2024 Performance Originations AUM NIM NPS⁶ outperformed industry Strong growth 2H v 1H CY2024 Well positioned entering 2025 Continued to expand Home Loans: +16 (industry -5) Asset Finance: +39 (industry +16) $7.0bn $19.1bn 1.97% CY2024 Personal Loans: +65 (industry +18) CY2024 Origina
Slide 5: CY2024 Key Achievements
PEPPER MONEY CY2024 Key Achievements Asset Funding Mortgages Finance & Capital Self Managed Super Fund lending Speed to ‘yes’ Public securitisation: $2.7 billion Launched Sharia lending Real time payments Whole Loan Sales program – led the market with 7 transactions: $2.5 billion Credit policy enhan
Slide 6: Mortgages | CY2024
SEGMENT PERFORMANCE Mortgages | CY2024 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) Loan Loss Provision ($m) Including Post Model Overlay 3.9 4.1 +5% PCP 0.0 30.3 0.2 CY2023 CY2024 1.2 21.2 ▪ (9)% 0.2 1.9 2.2 Specific 2.2 2.0 ▪ (15)% Prime 7.6% 7.6% 29.1 ▪
Slide 7: Mortgages | 2H vs 1H CY2024
SEGMENT PERFORMANCE Mortgages | 2H vs 1H CY2024 Originations by Product Weighted Average Indexed LVR³ Weighted Interest Rate⁴ 2H CY2024 Originations¹ 2H CY2024 AUM (close) Specialist $0.1bn 2H CY2024 Portfolio Front Book5 $2.3bn (close) +27% vs 5% Prime 7.5% 7.5% 1H CY2024 40% Prime 55% Near Prime 8
Slide 8: Asset Finance | CY2024
SEGMENT PERFORMANCE Asset Finance | CY2024 Volume Income Credit Quality Originations by Product ($bn) Weighted Interest Rates¹ (%) Loan Loss Provision ($m) Including Post Model Overlay 3.4 2.9 (13)% PCP 89.3 95.7 1.0 1.4 ▪ 32% CY2023 CY2024 1.3 ▪ (39)% 37.5 37.4 Specific 0.8 1.1 ▪ (26)% 58.3 Collect
Slide 9: Asset Finance | 2H vs 1H CY2024
SEGMENT PERFORMANCE Asset Finance | 2H vs 1H CY2024 Originations by Product Originations by Channel Weighted Interest Rate3 2H CY2024 Originations¹ 2H CY2024 Originations¹ 2H CY2024 Portfolio Front Book4 Consumer Auto Broker (close)) $0.4bn $0.2bn Novated Lease Tier A 8.6% 9.3% 13% $1.5bn $0.7bn +3%
Slide 10: Loan & Other Servicing | CY2024
SEGMENT PERFORMANCE Ongoing management and administration Loan & Other Servicing | CY2024 for loan portfolios owned by third parties (non-bank lenders and ADIs) Targeted Segments Administration Whole Loan of Loan Loan Portfolio Sales Portfolios Acquisition 3.3 Servicing AUM Benefits ($bn) CAGR 40% 1
Slide 11: Business Update: Funding
BUSINESS UPDATE Warehouses Securitisation Whole Loan Sales / Private Term issuances Funding A$10.8bn³ total capacity 21 facilities 4 Public Platforms⁴ (PRS, Pepper Prime, A$44.3bn⁵ total Issuance A$11.2bn+ total funding⁷ Sparkz, Pepper Social) 26 funders Capacity up 16% 24 (includes all 4 major Dece
Slide 12: ESG: We Help People Succeed
BUSINESS UPDATE ESG Customer Wellbeing Community Contribution & Investments Customer NPS¹: outperformed industry average across all products Our Mission Pepper Giving²: $200k provided to communities and organisations Project X: customer experience at the forefront Big G: partnered the Women’s and Gi
Slide 13: Financial Performance
FINANCIALS Financial Performance Volume Income Expenses / FTE Profit Originations ($bn) Net Interest Margin¹ (%) Total Expenses ($m) Profit pre-Tax and Loan loss expense ($m) (3)% (4)% +9% 238.1 246.7 7.3 2.50% 2.55% 7.0 29.2 1.97% 24.8 1.85% 19.4 21.9 3.4 2.9 4.8 11.3 1.57% 1.65% 209.2 192.0 186.6
Slide 14: NIM Movement
FINANCIALS Total NIM Movement +11bps +11bps (0.26%) 0.15% 0.02% (0.06%) 0.34% NIM continued to improved with pricing initiatives 0.03% and product and portfolio mix supporting higher customer rates 2.03% 1.81% 1.92% 2H CY2023 Customer BBSW / Funding 1H CY2024 Customer BBSW / Funding 2H CY2024 (Adjus
Slide 15: Credit Performance | Loan Loss Provisions
FINANCIALS Credit Performance | Loan Loss Provisions Collective Provisions MORTGAGES Reduction is in line with loan portfolio (AUM) and Whole Loan Sale releases and $(6.0) million release in Post Model Overlay. Movement in Loan Book and Coverage Ratio Specific Provisions Remain relatively stable. 90
Slide 16: Credit Performance | Loan Loss Expense
FINANCIALS Mortgages 90+ Day Arrears¹ ² as % of AUM Credit Performance | Loan Loss Expense 1.53% 1.48% 1.47% 1.27% 1.36% 1.16% 1.14% Calendar Year 0.99% 0.88% 0.86% $ Million 2024 2023 Mortgages Specific (4.2) (2.4) Collective4 10.0 6.6 Mortgages loan loss expense 5.8 4.2 Asset Finance Specific (68.
Slide 17: Expenses
FINANCIALS Expenses Calendar Year % 2024 vs $ Million 2024 2023¹ 2023 Employee benefits expense (126.3) (128.6) 2% Marketing expense (15.4) (14.9) (3)% Technology expense (24.6) (23.8) (3)% FTE Movement (#) General and admin expense (20.5) (19.3) (6)% 8% Operating Expense pre-impairment (186.8) (186
Slide 18: Profit & Loss
Calendar Year % FINANCIALS 2024 vs 2023 2023 Profit & Loss $ Million 2024 (Adjusted¹) (Adjusted¹) Interest income 1,436.1 1,377.5 4% Interest expense (1,094.7) (1,039.1) (5)% Net interest income 341.4 338.4 1% Lending fee income 65.6 72.2 (9)% Lending expense (29.5) (29.8) 1% Whole loan sales gain 4
Slide 19: Financial Metrics
Calendar Year % 2024 vs 2024 2023⁵ 2023 FINANCIALS Volume ($ Billion) Financial Originations – Mortgages 4.1 3.9 5% Originations – Asset Finance Metrics Total Originations 2.9 7.0 3.4 7.3 (13)% (3)% AUM lending – Mortgages 10.2 12.6 (19)% AUM lending – Asset Finance 5.6 5.7 (2)% AUM lending 15.9 18.
Slide 20: Sources and Uses of Cash
FINANCIALS Calendar Year Sources and Uses of Cash $ Million 2024 Corporate Cash Flow Trust income 298.4 Key Movements: 31 December 2023 to 31 December 2024 Origination fees 49.2 Whole Loan Sale premium 89.1 INFLOW Trust Income Servicing and other income 6.9 Interest income derived from assets under
Slide 21: Balance Sheet
Balance as at FINANCIALS $ Million 31 Dec 2024 31 Dec 2023 Balance Sheet Cash and cash equivalents 1,226.2 1,528.7 Receivables 13.9 21.2 Derivative financial assets 21.0 52.4 Loans and advances 15,991.8 18,379.4 Key Movements: 31 December 2023 to 31 December 2024 Other financial assets 15.3 19.2 Oth
Slide 22: Mission and Vision
PEPPER MONEY Mission and Vision Mission WE HELP PEOPLE SUCCEED We have created a broad range of Vision solutions that deliver value to our customers People’s first choice non-bank We operate with three pillars for success Experience – Performance – and Pillars Brand – that link vision and mission to
Slide 23: The Pepper Money House
PEPPER MONEY The Pepper Money House © Pepper Money Limited. 23
Slide 24: Outlook
PEPPER MONEY Outlook External Factors Pepper Money Response Consumer confidence improving Customer support Pressures still evident as interest Remains key focus and part of our rates are high “X” Factor Interest rate reductions We can originate at scale Will support return to market growth • Funding
Slide 25: Questions & Answers
Questions & Answers
Slide 26: Thank you
Thank you on behalf of all of Pepper Money Pepper Money Limited ABN 55 094 317 665. Australian Finance Services Licence 286655; Australian Credit Licence 286655 Pepper Asset Finance Pty Limited ACN 165 183 317; Australian Credit Licence 458899 © Copyright Pepper Money Limited. All rights reserved.
Slide 27: Appendices
Appendices
Slide 28: The History of Pepper Money
APPENDIX The History of Pepper Money Funding Originations Total AUM Loan Performance $41bn 1 $65bn 2 $19bn 3 0.5% Across 64 transactions from In loans originated from Assets Under Management Cumulative loss4 2003 to December 2024 2000 to December 2024 as at December 2024 % Total Originations5 Founde
Slide 29: Addressable Market
APPENDIX Addressable Market December 2024 Mortgages Asset Finance Total Addressable Market (AUM) $2,717bn ¹ $246bn Conforming: 88% Consumer: $71bn⁴ Non-Conforming: 12%2 Commercial: $175bn⁵ Pepper Money’s ³ ⁶ Market Share (closing AUM) ~0.4% ~2.3% Consumer: ~2.5% Commercial: ~2.2%⁷ Targeted • First h
Slide 30: Glossary & Disclaimer
Glossary & Disclaimer
Slide 31: Glossary of Terms
PEPPER MONEY Glossary of Terms AUM – Lending (closing): Assets under management Employee benefits expense/Total operating income: Total Operating Income: Includes net interest income, originated and serviced (securitised and Pepper Money Employee benefits expenses divided by total operating lending
Slide 32: Disclaimer
PEPPER MONEY Disclaimer Summary information This Presentation contains summary information about Pepper Money Limited (ACN 094 317 665) (Pepper Money) and Certain figures, amounts, percentages, estimates, calculations of value and fractions provided in this Presentation are its activities and is cur
Slide 33: For more information visit www.peppermoney.com.au
Investor Relations Reunion Capital Partners Gordon Livingstone M +61 (0) 417 695 138 E glivingstone@reunioncapital.com.au For more information visit Media Relations www.peppermoney.com.au Sodali & Co Helen Karlis M +61 (0) 419 593 348 E helen.karlis@sodali.com Pepper Money Limited ABN 55 094 317 665