Credit : Investor Presentation - Market Update

ANALYTICS & DISCIPLINE

Australian / NZ debt buying

•  Large database

•  History of pricing accuracy

•  Purchasing levels vary inversely with pricing

US debt buying

•  Adapted knowledge to US environment

•  Large market opportunity

•  Diversified purchasing across major sellers

Australian / NZ lending

•  Leverage knowledge of consumer

•  Up-front loss provisioning

•  Analytical monitoring

•  Unique statistical underwriting

•  High asset turnover 1

•  Low cost to collect 2

  SUSTAINABILITY & COMPLIANCE

•  High performing on-shore and off-shore platforms

•  Strong technology and use of data

•  Significant productive capacity across two sites

•  Emphasis on payment arrangements and a lower proportion of litigated outcomes

•  Automated decisioning

•  Collection strength

•  High level of efficiency

• 1. H1 FY2022 ratio of cash collections from PDLs to average PDL carrying value in Australian Debt Ledger Purchasing segment of 1.2x

• 2. H1 FY2022 cash costs as a proportion of collections in the Australian Debt Ledger Purchasing segment of 35%

•  No adverse orders or undertakings

•  Low dispute rate

•  $1.5b in ongoing repayment arrangements

•  Low regulator complaint rate

•  Strong client audit outcomes

•  APRs below cap applicable to mainstream credit

•  Regulatory upside - no 'payday loans'

•  Lower pricing disrupting the market

•  Direct from issuer volumes averaging 55 per cent of pre-COVID 5 year average

•  One-offs have filled the gap

•  Acquired payment arrangements now running off

AUS/NZ PDL INVESTMENT

$250m

$200m

$150m

$100m

$50m

$0m

FY2016

FY2017

Direct-from-issuer-purchasesFY2018

FY2019

FY2020

FY2021

FY2022 pipelineBaycorp/Collection House/Radio Rentals

AUS/NZ COLLECTIONS

$400m

$350m

$300m

$250m

$200m

$150m

$100m

$50m

$0m

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021Collections on direct from issuer purchases

Total collections including Baycorp/Collection House/Radio RentalsProjected

FY2022

•  Unsecured credit balances 36 per cent down on pre-COVID levels

•  Loss rates remain at historic lows

AUS INTEREST BEARING CONSUMER CREDIT CARD BALANCES 1

$30bn

$25bn

$20bn

$15bn

$10bn

$5bn

-

Dec-19

Jun-20

Dec-20

Jun-21

Dec-21

• 1. RBA interest bearing consumer credit card balances from C1 (https://www.rba.gov.au/statistics/tables/ )

  AUS BANK CREDIT CARD 90+ DAYS PAST DUE RATES 2

  1.4%

  1.2% 1.0% 0.8% 0.6% 0.4% 0.2%

  -

  Sep-19

  Dec-19

  Mar-20

  Jun-20

  CBANABANZ

• 2. AUS bank credit card 90+ days past due from: ANZ -https://www.anz.com/content/dam/anzcom/shareholder/2021-FY-results-investor-discussion-pack.pdf,

CBA -https://www.commbank.com.au/content/dam/commbank-assets/investors/docs/results/1h22/Investor-Presentation-February-2022.pdf

NAB -https://www.nab.com.au/content/dam/nab/documents/reports/corporate/2021-investor-presentation.pdf

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

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