Australian Finance Group Ltd. · ASX:AFG
Australian Finance — FY2025 Earnings Presentation
36 slides from Australian Finance's earnings presentation, Aug 27, 2025
Slide 1: FY25 Full Year Results
FY25 Full Year Results 12 months to 30 June 2025
Slide 2: Presentation Outline
Presentation Outline Item Presenter Pages FY25 Highlights David Bailey 4–6 Market & operations update David Bailey 7 – 13 Financial update Luca Pietropiccolo 14 – 20 Outlook David Bailey 21 – 26 Q&A Appendices 2
Slide 3: AFG | Over 31 years delivering innovative solutions in the finance industry
AFG | Over 31 years delivering innovative solutions in the finance industry Significant scale in the finance industry $948B 77% 4,200 1 in 10 550k Settlements p.a. in the of residential mortgages originated AFG brokers Residential mortgages in Australia Customers supported Australian finance market1
Slide 4: FY25 Highlights
FY25 RESULTS FY25 Highlights 4
Slide 5: FY25 highlights – delivering on our strategy
FY25 highlights – delivering on our strategy Strong strategy execution, underpinned by a disciplined capital allocation approach. TSR1 of 203% since listing in 2015. STRATEGIC PILLAR 1 STRATEGIC PILLAR 2 STRATEGIC PILLAR 3 Provide market leading Deliver higher margin through Grow our broker network
Slide 6: FY25 financial highlights
FY25 financial highlights Strong earnings growth as we delivered for our brokers, lenders and customers, amid a strengthening market. Momentum accelerated in H2 FY25, with EBITDA of $31m, 26% higher than the first half. Growth v FY24 EBITDA by segment Underlying gross profit per broker1, 2 ▲ 13% $38
Slide 7: Market & operations update
FY25 RESULTS Market & operations update 7
Slide 8: AFG broker network, growing to a record high
AFG broker network, growing to a record high As broker share rises towards 80% and industry consolidation accelerates, AFG has an advantage with growth focused brokers with its tech-enabled, service-led model Consumers continue to prefer broker… …as AFG continues to grow its network… …with broker co
Slide 9: Delivering greater value to our broker network
Delivering greater value to our broker network Investments in product diversity & broker services are providing greater efficiency and value for brokers. Setting us apart in market. AFG Underlying Gross Profit ($k per broker p.a.) Distribution earnings1 up 9% Manufacturing earnings1 up 27% +13% 40 V
Slide 10: Residential outpacing market 1.2x
Distribution Residential outpacing market 1.2x 1 Q4 lodgements up 19% to $28 billion, and July’s growth stronger again – this provides momentum into FY26 as rate cuts expected to stimulate the market Record pipeline Significant scale – represents 1 in 10 Driving consistent book growth Over $100 bill
Slide 11: Diversification provides a broad earnings platform
Distribution Diversification provides a broad earnings platform Diversified products enable brokers to meet a broader range of customer needs, while generating higher margin earnings. 75% of AFG’s earnings from outside the core residential mortgage offering AFG Home Loans1 Providing the platform and
Slide 12: AFG Securities growing volume & improving NIM
Manufacturing AFG Securities growing volume & improving NIM Net interest margin supported by timing of cash rate reductions in H2 FY25 & cost of funds improvements. However, competition remains high affecting front book pricing. AFG Securities2 Settlements Settlements up 65% - in line with record hi
Slide 13: Sustaining market leading credit quality
Manufacturing Sustaining market leading credit quality AFG’s advantage of 31 years industry experience and insights from 1 in 10 mortgages. Disciplined processes sustain AFG Securities’ industry leading credit quality, even as the loan book hits record highs Consistent book growth in FY25 – reaching
Slide 14: Financial update
FY25 RESULTS Financial update 14
Slide 15: Financial results
Financial results $m FY25 FY24 Variance • Reported NPAT up 21% to $35.0m Gross profit 1, 2 142.9 127.7 12% • Gross profit1 up 12% or $15m with growth in both segments (slide 17) Change in trail book future value (3.7) (5.6) 33% • Underlying operating expenses, up 7% or $6m: Operating expenses 2 (96.
Slide 16: Investments delivering growth across segments
Investments delivering growth across segments Distribution Manufacturing Central services EBITDA FY25 $68 M +10% on FY24 $16 M +53% on FY24 -$28 M -13% on FY24 Underlying ROE Underlying ROE 39% 15% • Represents 81%1 of EBITDA • Underlying ROE increased to 15% (FY24: • Includes various centralised su
Slide 17: Diversification accelerating earnings growth
Diversification accelerating earnings growth $m (unless otherwise stated) FY25 FY24 Var $ Var % Distribution: up 9% across the diversified business model Gross profit1 142.9 127.7 15.2 12% • Residential margin increased $0.4m, with record volumes outpacing Distribution 113.3 104.4 8.9 9% growth in p
Slide 18: Investments generating growth in H2, up 25%
Investments generating growth in H2, up 25% Capital invested has accelerated earnings in H2, with an annualised contribution of an additional $12 million EBITDA EBITDA +26% Capital investment contributing to higher H2 FY25 Annualised earnings $31.3m Fintelligence • Brought forward increasing ownersh
Slide 19: Our strong financial position provides capacity to invest where returns are compelling
Our strong financial position provides capacity to invest where returns are compelling Cash generation : predictable and diversified cash flows • Trail commissions provide highly predictable and actuarily proven earnings $24m $21m $58m • Highly integrated broker services generate repeatable cashflow
Slide 20: Disciplined capital allocation delivering sustained shareholder value
Disciplined capital allocation delivering sustained shareholder value Focused reinvestment to capture growth opportunities, with capital allocation guided by 4 principles 1 Capital allocation framework Continuous review / recycle capital focused on maximising long term value and shareholder returns
Slide 21: Outlook
FY25 RESULTS Outlook 21
Slide 22: Robust foundation for further market growth
Robust foundation for further market growth Multiple cash rate reductions are forecast in the medium term, supporting a strong outlook for Residential & Commercial. Although market conditions are subject to a dynamic macroeconomic environment Lack of supply impacting house With cash rate reductions
Slide 23: Brokers are increasingly integral to the market
Brokers are increasingly integral to the market Consumers & lenders value the competition and choice that brokers provide as market share increases towards 80%. AFG has the broker proposition to support brokers’ evolving needs. Consumers value the broker channel – Brokers are the most Brokers needs
Slide 24: Record start to FY26 volumes
Record start to FY26 volumes Market conditions continuing to support Residential mortgage market growth. July 2025 was AFG’s highest Residential lodgement month on record with over $10 billion. Comparison of July lodgements July 2025 change on July 2024 Distribution • Residential lodgements up 25% o
Slide 25: Positioned to deliver against our strategy
Medium term outlook Positioned to deliver against our strategy Our history of innovation leveraging technology and disciplined capital allocation supports earnings growth and shareholder returns. Remaining responsive to evolving market conditions Measure Current FY29 Aspiration STRATEGIC PILLAR 1 Re
Slide 26: AFG positioned to capture growth opportunities
AFG positioned to capture growth opportunities Favourable market conditions, Environment for revenue growth, with external factors to monitor but shaped by policy settings Cash rate reductions Credit growth accelerating Strong labour market Macro Sector Falling non-bank funding costs Population grow
Slide 27: Appendices
FY25 RESULTS Appendices 27
Slide 28: A fairer financial future being delivered by an experienced executive team
A fairer financial future being delivered by an experienced executive team David Bailey, CEO Lisa Bevan, COO Luca Pietropiccolo, CFO 23 years 27 years 3 years Sam McCready, CDO Dom Di Gori, Exec GM Them Lam, 20 years Consumer lending Head of Sales & Distribution 25 years 24 years Years denotes the y
Slide 29: Settlements and Loan Book
Settlements and Loan Book Settlements ($m) FY25 FY24 FY23 FY25 v FY24 FY25 v FY23 Residential 63,464 55,181 53,630 15% 18% AFGHL 4,394 3,564 3,604 23% 22% White Label 1 1,687 1,927 2,023 (12%) (17%) AFG Securities 1 2,707 1,637 1,581 65% 71% Commercial 5,059 4,453 3,783 14% 34% Leasing and Asset fin
Slide 30: Key metrics
Key metrics $m (unless otherwise stated) Units 2H25 1H25 2H24 2H25 v 1H25 2H25 v 2H24 Operating income Distribution 454.9 479.6 383.7 (5)% 18% Key movements Manufacturing 169.0 161.3 142.2 5% 19% Central (14.0) (15.3) (11.7) 8% (20)% • Distribution operating income up 18% on H2 FY24, with record res
Slide 31: Reported NPAT to Underlying NPATA reconciliation
Reported NPAT to Underlying NPATA reconciliation Key movements $m FY25 FY24 FY25 v FY24 Reported NPAT 35.0 29.0 6.0 • The trail commission adjustment represents the non-cash change in the carrying value of the Amortisation of acquired intangible assets 2.4 2.4 - trailing commissions contract assets
Slide 32: AFG holds $182m in liquid assets and high performing investments
AFG holds $182m in liquid assets and high performing investments Key movements $m Jun 2025 Jun 2024 Variance Unrestricted cash 63.7 67.4 (3.7) • Net unrestricted cash of $12m, down from $21m at June 2024 Debt facility (51.7) (46.7) (5.0) • Trail book net asset at $86.8m with the reduction Net unrest
Slide 33: Trail book asset
Trail book asset The table below outlines key assumptions used to value trail commissions Key movements Key Assumptions Jun 2025 Jun 2024 Average loan life Between 3.6 and 4.2 years Between 3.5 and 4.3 years • Trailing commissions are received from lenders on settled loans over the life of the loan
Slide 34: Summary Balance Sheet
Summary $m Jun 2025 Jun 2024 Variance Balance Sheet Assets Unrestricted cash 63.7 67.4 (3.7) Restricted cash 160.1 154.2 5.9 Key movements Trade and other receivables 15.2 13.0 2.2 Other assets 4.5 5.4 (0.9) • Unrestricted cash, which consists of cash at bank and short Contract assets 1,176.2 1,137.
Slide 35: AFG Securities – Loan quality
AFG Securities – Loan quality LVR Loan Balance Geographic distribution 1% 3% 6% 12% 20% 10% 24% 11% 15% 31% 53% 34% 27% 28% 25% LVR <70% LVR 70%-80% <$250k $250k - $500k LVR 80%-90% LVR >90% $500k - $750k $750k - $1m VIC NSW QLD WA SA ACT/TAS/NT >$1m 35
Slide 36: Important Disclaimer
Important Disclaimer This presentation contains general information which is current as at 26 August 2025. The information is intended to be a summary of Australian Finance Group Ltd (AFG) and its activities as at 30 June 2025 and does not purport to be complete in any respect. The information in th
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