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Slide 2: FY18 key metrics: customers, retail partners, volume, cash NPAT
Customers Retail Partners Volume 1,024k, +5% 46k, +8% $2,284m, +17% 975k 1,024k 42k 46k 1,952 2,284 FY17 FY18 FY17 FY18 FY17 FY18 Cash NPAT Receivables Dividends per share (cents) $88.2m, (5%) $2,383m, +10% 7.70, +0% 93.0 88.2 2,168 2,383 7.70 7.70 FY17 FY18 FY17 FY18 FY17 FY18 2
Slide 3: Our Key Strategic Themes
DUR d KEY OTRATEGIC THEMES In building a sustainable growth orientated business > Organic customer and retailer growth is the fundamental driver of our shareholder value We are building digital solutions that simplify and improve the way we interact with our customers and retailers By consolidating
Slide 4: Key Strategic Themes - Grow
O KEY STRATEGIC THEMES - GROW We said we needed to grow, we have delivered phase one KEY INITIATIVES CURRENT STATUS > 2H FY18 volume growth v pcp +10%. Seller base increased YoY by 4% > VIP marketing saw strong growth in repeat usage > Certegy — investing to grow Ezi-pay by increasing our seller bas
Slide 5: Skye Card launched mid 2018
SKYE CARD LAUNGHED MID 2018 Market leading customer value proposition fo] GS) UeT More time to pay 90 days Interest Free on every card purchase as compared to the standard 45-55 days More flexibility & control Customers can convert purchases of $250 or more to an Interest Free Instalment Plan (SkyeP
Slide 6: Key Strategic Themes - Digitise
O KEY STRATEGIC THEMES - DIGITISE Improving our customer experience is crucial — we’ve invested strongly this year KEY INITIATIVES CURRENT STATUS > Digital acceptance rolled out across seller network > 60% of all transactions now digital end to end > Seller app roll out complete > End to end digitis
Slide 7: Certegy Ezi-Pay digitisation progress
CERTEGY EZ1-PAY DIGITTSATION PROGRESS SSR Digitisation agenda driving results Postaigitisation DIGITISATION IMPACT > 60% ofall contracts are settled digitally end to end (previously 0%) Within 24 hours (previously up to 7 days) > Significant progress made on digitisation of Certegy > NPS consistentl
Slide 8: Key Strategic Themes - Optimise
O KEY STRATEGIC THEMES - OPTINIOE By becoming more efficient we will drive our cost to income ratio towards 40% OPTIMISE KEY INITIATIVES > Creation of a target IT systems architecture and consolidating back end systems > Creation of consolidated AU marketing team to leverage our strong retailer and
Slide 9: FlexiGroup Financial Results
FLEXIGROUP FNNEIAL RESUS
Slide 10: FY18 Results
FYL8 RESULTS : Results delivered at higher end of guidance FlexiGroup ($m) FY17 FY18 oe, Underlying Cash NPAT 93.0 90.7 (2%) Restructuring Costs absorbed (after tax) - (2.5) n/a Cash NPAT! 93.0 88.2 (5%) Volume 1,952 2,284 17% Closing Receivables 2,168 2,383 10% ROE %2 14.5% 13.6% (6%) NOTES:1. Cash
Slide 11: Statutory NPAT to Cash NPAT Reconciliation
STATUTORY NPAT TO GASH NPAT RECONCILIATION This year saw a dedicated effort to identify and remediate past consumer leasing issues > Per announcement to ASX on 7 Feb 2018, decision taken to retire existing Flexirent FlexiGroup ($m) FY17 FY18 vPCP % Consumer Lease product and launch new . . product i
Slide 12: Volume, receivables and Cash NPAT
Volume Volume Trend $541m, +3% 2H18 +10% v 2H17 527 541 249 267 274 FY17 FY18 2H17 1H18 2H18 Closing Receivables Cash NPAT $492m, +1% $32.0m, (5%) 467 492 33.6 32.0 FY17 FY18 FY17 FY18 12
Slide 13: Active customers, volume, receivables, Cash NPAT
Active Customers Volume 184k, +22% $740m, +39% +23% 2yr CAGR 122k 151k 184k 534 740 FY16 FY17 FY18 FY17 FY18 Closing Receivables Cash NPAT $649m, +34% $7.2m, (26%) Impact of short term collections issues 483 649 9.7 7.2 FY17 FY18 FY17 FY18 13
Slide 14: Active Customers and Volume (NZD)
Active Customers Volume (NZD) 481k, +18% $710m, +14% 408k 481k 622 710 FY17 FY18 FY17 FY18 Closing Receivables (NZD) Cash NPAT (NZD) $707m, +9% $31.9m, +9% 650 707 29.3 31.9 FY17 FY18 FY17 FY18 14
Slide 15: Volume, Closing Receivables, Cash NPAT, NPS
Volume Closing Receivables $104m, (6%) $152m, (4%) 111 104 158 152 FY17 FY18 FY17 FY18 Cash NPAT FlexiRent/Lisa NPS $0.4m, (92%) +31 NPS 34 35 31 31 16 0 -3 -2 -1 -2 -2 -1 5.6 0.4 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY17 FY18 15
Slide 16: Volume, Closing Receivables, Cash NPAT
Volume Closing Receivables $148m, +58% $285m, +9% 94 148 260 285 FY17 FY18 FY17 FY18 Cash NPAT $13.0m, +15% 11.3 13.0 FY17 FY18 16
Slide 17: Volume, Closing Receivables, Cash NPAT (NZD)
Volume (NZD) Closing Receivables (NZD) $91m, (3%) $170m, (10%) 94 91 189 170 FY17 FY18 FY17 FY18 Cash NPAT (NZD) $9.8m, (14%) 11.4 9.8 FY17 FY18 17
Slide 18: Customers
Customers 5k YTD Flexi-Fi launched Q1 Q2 Q3 Q4 18
Slide 19: Group Impairment and Total Arrears
Group Impairment / ANR % Total Arrears / Receivables 2.7% 3.1% 3.5% 2.9% 3.0% 9.4% 9.0% 12.0% 10.7% 9.7% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 19
Slide 20: Corporate Debt, Dividends and Wholesale Funding Facilities
Corp Debt Facilities Dividends per share (cents) Wholesale Funding Facilities Drawn Undrawn Gearing (%) Drawn Undrawn $2,607m $2,586m $46m $528m $51m $92m $703m 67% 53% 36% $55m $55m $1,904m $2,059m $142m $126m $104m $45m $45m 17.8 17.8 14.5 7.7 7.7 0% 0% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17
Slide 21: Cost Management
COST MANAGEMENT Cost reduction and efficiencies to drive cost to income ratio towards 40% > Significant restructuring undertaken in 1H18 ctions taken FY18 have generated $8m in annual leading to $3.6m (pre-tax) restructuring costs run rate savings/revenue generat absorbed in results > Rationalisatio
Slide 22: FlexiGroup Business Outlook
FLEXIGROUP BUSINESS OUTLOOK
Slide 23: Strategic Themes in FY19 - Grow
STRATEGIC THEMES IN FYL9 - GROW Accelerate growth momentum on increased core volume run rate KEY INITIATIVES FOR FY19 NEXT STEPS > Focusing on sector specific expansion including health and retail through skilled sales force with detailed sector knowledge > Certegy — utilise our strengths in key mar
Slide 24: Strategic Themes in FY19 - Digitise
STRATEGIC THEMES IN FYL9 - DIGITISE Digitisation of business delivering growth KEY INITIATIVES FOR FY19 NEXT STEPS > Maximise take up of digital originations > End to end digitisation of Certegy > Implement further product and UX enhancements > Launch Certegy seller app to enhance engagement and val
Slide 25: Strategic Themes in FY19 - Optimise
STRATEGIC THEMES IN FYL9 - OPTIMISE Continuing opportunities to drive efficiency KEY INITIATIVES FOR FY19 NEXT STEPS > Continue to execute short term management remediation plan » Enhance AU Cards collections capability > Develop strategic options for AU collections > Develop direct marketing automa
Slide 26: Half-year trends 1H17 to 2H18
278 267 274 249 1H17 2H17 1H18 2H18 358 382 296 238 1H17 2H17 1H18 2H18 57 54 52 52 1H17 2H17 1H18 2H18 99 49 45 49 1H17 2H17 1H18 2H18 48 51 46 40 1H17 2H17 1H18 2H18 362 349 325 298 1H17 2H17 1H18 2H18 26
Slide 27: Cash NPAT Guidance
Cash NPAT Guidance 100 (+13%) 88 95 (+8%) FY18 FY19 27
Slide 28: Summary & Conclusions
SUMMARY & CONCLUSIONS x Consistent focus on key issues driving profit growth alll > = ave = Ed FY18 results Investment Capitalise on our Drive Cash NPAT delivered at higher end in growth and technologies, funding growth in FY19 and of guidance range focus on our 3 key and distribution beyond strateg
Slide 29: FlexiGroup Appendix
FLEXIGROUP PPEOIEE
Slide 30: Provision (AUDm) AASB 139 to AASB 9 transition
AASB 9 Transition Adjustment 140 Model risk factors 120 Macro factors Later stage arrears Provision (AUDm) 100 80 Mid stage arrears 60 40 20 Fully performing & Early stage arrears 0 Group AASB 139 Group AASB 9 30
Slide 31: Consolidated Statutory Income Statement
CONSOLIDATED STATUTORY INCOME STATEMENT > Interest expense decrease driven by Sy ba eae improved funding facilities and repayment Total portfolio income $462.8 $460.4 (1%) of corporate debt Interest expense ($102.0) ($98.0) (4%) . . 9 Net portfolio income $360.8 $362.4 0% > Impairment expenses up sl
Slide 32: Wholesale Funding Facilities
Wholesale Funding Facilities 2,607 2,586 703 528 1,904 2,059 FY17 FY18 Drawn Undrawn 32
Slide 33: Important notice and disclaimer
No recommendation, offer, invitation or advice Jurisdiction This presentation is not a financial product or investment advice or recommendation, offer or invitation by The distribution of this presentation including in jurisdictions outside Australia, may be restricted by law. any person or to any p