Announcement PDF COMPANY UPDATE H1FY25 FEBRUARY 2025 1 SET UP FOR SUSTAINABLE GROWTH Strong loan origination growth Improved loan book performance Expanding margins and EBITDA profitability Well capitalised KEY DRIVERS Structural tailwinds increasing non-bank lender market share and technology-driven automation 2 KEY H1FY25 RESULTS LENDING $170.8M New loan originations FINANCIAL CAPITAL 11.20% Portfolio yield $45.3M Revenue Well capitalised with unrestricted cash of ↑30 bps H2FY24 10.90% ↓1% H2FY24 $45.7M $757M 5.75% $0.8M Wisr loan book as at Dec-24 Portfolio NIM 2 3 EBITDA ↓1.7% Jun-24 $770M ↑0.5% Sep-24 $753M ↑56 bps H2FY24 5.19% ↑$3.3M H2FY24 $2.5M 798 1.55% 1.87% ↑4 Jun-24 794 ↓3 bps Jun-24 1.58% ↓61 bps H2FY24 2.48% Average credit score of total book1 as at Dec-24 On-balance sheet 90+ day arrears Net losses $39.4M $17.9M additional loan repayments4 made via one-time payment feature $15M $10.1M Available to draw from corporate facility to fund future growth in round ups4 used to pay off customer debt $153M 75 ↑66% H1FY24 $103.1M ↑60% H2FY24 $106.7M CUSTOMER Undrawn warehouse capacity Customer Net Promoter Score 1 Total loan book weighted average Equifax credit score is the score at the time of application, includes active loans and excludes loans written off NIM defined as loan book yield less finance costs, excluding corporate facility interest cost and hedge accounting impacts 3 EBITDA defined as earnings before Interest, taxes, depreciation and amortisation. This also excludes corporate facility interest cost, hedge accounting impacts, share based payments expense and non-cash expected credit loss provision movements 4 Since inception 2 3 WISR AT A GLANCE Since 2018, Wisr has supported Australians in reaching their personal and financial goals $2.0B 2 warehouses total loan originations 3 active term deals 1 called term deal We are a sophisticated, purpose-built fintech lender with a proven track record of executing in the debt capital markets Our mission is to improve Australiansʼ financial health by reinventing the consumer finance experience through our award-winning, proprietary technology platform We have strong and diversified distribution channels including an established broker network and direct-to-customer via our proprietary platform 1 2 Total number of customers supported via loans written Based on average comparison of engaged and unengaged Wisr Platform loan customers that are current and not in arrears during H1FY25. 65K Loan customers engaged with the proprietary Wisr platform are total number of customers supported1 27%2 further ahead on their loans 4 AUTOMATION TO SCALE Industry-leading arrears management platform driving losses improvement Automation of loan approval and verification processes ● 78% of loans automatically approved by AI powered decision engine (up from 66% in Dec-23 CREDIT DECISIONS AUTOMATED ● 134% increase in automated loan verification steps in H1FY25 ● Supports scalability by efficiently managing higher volumes without compromising on speed, accuracy or increasing cost EFFICIENCY GROWTH ● New arrears management platform that harnesses the power of scalable data infrastructure ● Data driven arrears management segmentation ● Real-time payment channels, available via the Wisr app, website, and Wisr Agents, offer seamless, convenient payment options PORTFOLIO QUALITY New cloud native loan ledger platform ● Supports strong growth and high transaction volumes ● Reduction in manual processes ● Faster processing of loan servicing and real time account updates ● Improved reporting and decision making OPERATING LEVERAGE SCALABILITY 5 WELL DIVERSIFIED CUSTOMER BASE Where are our customers located? NT 1% Full-time 73% Self-employed 5% QLD 35% WA 16% NSW 22% SA 5% TAS 2% VIC 19% Why are customers coming to us? Our customersʼ employment status ACT 1% Part-time 8% Vehicles1 64% Casual 14% Personal loans Secured vehicle loans 68% 32% of loan book of loan book New loan size average3 Debt consolidation 12% Home improvements and contents 11% Other2 13% Source: Internal Wisr data on loan principal balance, as at Dec-24 1 Comprises Secured Vehicle Loans 32% of total portfolio), and Personal Loans 32% of total portfolio) 2 Includes travel, medical, legal, weddings, and/or mixed purposes 3 For the half ended Dec-24 4 Total loan book weighted average Equifax credit score is the score at the time of application, includes active loans and excludes loans written off What does the average Wisr loan look like? $33,132 Credit score average4 798 6 STRUCTURAL TAILWINDS ● The major banks market share of the Personal and Secured Vehicle Lending market continues to decline Share of total household lending with banks1 ● Their focus is Mortgages and Business Lending, away from Personal Lending 74% market share in Dec-19 down to 61% in Dec-24 ● Two major banks recently exited the Secured Vehicle Lending market ● ABS issuances have increased substantially in the last two years as non-bank lenders increase their Secured Vehicle Lending market share ● These structural tailwinds are creating opportunities for non-bank lenders such as Wisr Market opportunity / TAM3 $46B $12B Wisr market share Wisr market share 0.2% 1.6% Secured Vehicle Loan originations 1 2 3 SVL & Equipment ABS Issuance Breakdown2 Personal Loan originations Source: Reserve Bank of Australia; Personal loans data refers to unsecured lending only Source: Westpac Securitisation and Covered Bond Strategy, Bloomberg Total addressable market size is a management estimate, which includes consumer and commercial lending segments 7 RETURN TO LOAN ORIGINATION GROWTH Loan originations ● The Company delivered strong loan origination growth in H1FY25 66% growth 60% growth ● Wisr grew loan originations to $170.8M, an increase of 66% on H1FY24 $103.1M) and 60% on H2FY24 $106.7M ● A significant scale opportunity exists in target segments $62.1M $108.7M ↑143% ↑40% H1FY24 $25.6M H1FY24 $77.5M Secured Vehicle Loan originations Personal Loan originations Wisr entered moderated loan volumes in Apr-23 $50M Corporate Facility $35M drawn) Wisr back to growth for H1FY25 8 LOAN BOOK AND REVENUE Loan originations (cumulative) Loan book $757M ↑1% growth Sep-24 $753M ● $757M loan book, a 2% decrease on Jun-24 $770M) following a period of moderated loan volume ● However, the loan book grew by 1% compared to Sep-24 $753M) supported by strong origination growth in Q2FY25 ● $171M in loan originations, a 66% increase on pcp $103M) driven by a 143% and 40% increase in SVL and PL originations respectively Revenue Loan originations by product ● $45M revenue, a 1% decline on H2FY24 $46M, primarily due to a lower loan balance, partially offset by improved yield 9 PORTFOLIO MARGIN AND CREDIT QUALITY IMPROVEMENT Portfolio yield Portfolio NIM SVL originations as a % of total originations Portfolio credit score ● Portfolio yield increased by 69 bps to 11.20% H1FY24 10.51% ● Portfolio Net Interest Margin (“NIMˮ) increased by 42 bps to 5.75% H1FY24 5.33%) due to improved yield and funding cost ● The Company continues to maintain the high credit quality of its loan book with a stable portfolio credit score1 of 798 1 Total loan book weighted average Equifax credit score is the score at the time of application, includes active loans and excludes loans written off 10 LOSSES IMPROVING Customer credit scores and 90+ day arrears ● The quality of Wisrʼs portfolio was maintained with its average credit score increasing to 7981 ● Net losses declined for the second consecutive half, reaching $7.2M 1.87% of the average loan book), improving from $10.4M 2.35%) in H1FY24 and $10.0M 2.48%) in H2FY24 ● 90+ day arrears decreased to 1.55% H2FY24 1.58% and remains well-within risk appetite Net losses $ and % 1 Total loan book weighted average Equifax credit score is the score at the time of application, includes active loans and excludes loans written off 11 EXPECTED CREDIT LOSS ECL ECL provision and ECL expense ● As at Dec24, Wisr held a total ECL provision of 2.97%1 ● The 21 bps decrease in ‘provision coverageʼ from 3.18% at Jun-24 is due to the reduction in loan book over the period, stronger recoveries and an improvement in late stage arrears RECONCILIATION OF EXPECTED CREDIT LOSS PROVISION Opening balance at Jul-24 1 This is a balance sheet item and does not impact cash flow. $ % 24.5 3.18% Expected credit loss expense recognised H1FY25 5.2 Net losses 7.2 Closing balance at Dec-24 22.5 2.97% 12 INCOME STATEMENT H1FY25 $M H1FY24 $M Variance $M Variance % 45.3 48.1 2.8 5.8% 23.4 24.4 1.0 4.2% NIM 21.9 23.7 1.8 7.5% NIM % 5.7% 5.3% Net loan losses 7.2 10.4 3.3 31.4% ● Wisr remains focused on operational efficiency, broadly targeting a cost-to-income ratio of c. 25% to 27% at a $1B loan book, with further improvements anticipated as the business continues to scale Risk adjusted margin 14.8 13.3 1.5 11.3% Opex 13.9 13.1 0.8 6.3% ● Corporate facility costs increased with a higher drawn balance of $35M on the new corporate facility in H1FY25 H1FY24 $25M - previous facility) EBITDA 0.8 0.2 0.6 417.1% Corporate facility finance costs 3.5 1.9 1.5 77.3% Cash NPAT 2.6 1.8 0.8 46.1% Cost to income ratio2 31% 27% ● EBITDA increased to $0.8M H1FY24 $0.2M) driven by stronger loan unit economics and a reduction in net losses, which helped offset the impact of lower revenues during the period ● Opex increased by 6.3% to $13.9M, reflecting incremental investment to support current origination growth 66% increase vs. H1FY24) and future loan origination growth ● With loan book expansion realised in Q2FY25, the business will start to benefit from increasing operating leverage as revenue scales alongside the loan book 1 2 Finance costs excludes HeadCo facility interest costs and hedge accounting. Cost to income ratio defined as operating expenses/revenue. Revenue Finance costs1 13 MATURE FUNDING PROGRAM SUPPORTS GROWTH ● WH1 Personal Loan WH) has $400M of committed funding $85M undrawn), while WH2 Secured Vehicle WH) has committed funding of $250M $68M undrawn) Funding at 31Dec-24 ● The corporate facility has committed funding of $50M $15M undrawn) ● Wisr has raised $875M across four ABS transactions Freedom21 (successfully called), Freedom22, Independence23 and Freedom23 ● Work progressing on a third warehouse (mixed PL and SVL with new senior and mezzanine funders 1 Call dates are forecasted based on expected prepayment rates and actual dates may vary Corp Facility WT1 WT2 F22 I23 F23 % drawn 70% 79% 73% 100% 100% 100% Facility start Jun-24 Oct-19 Oct-21 Jun-22 Feb-23 Dec-23 Facility expiry / call date1 Jun-27 Sep-25 Aug-25 Sep-25 Sep-26 Jul-27 Products Corp PL SVL PL SVL PL 14 WELL CAPITALISED Cash held in warehouses and term deal trusts: ● Undistributed customer loan repayments (principal and interest) ● Unutilised funds from note subscriptions (predominantly third-party debt) ● Use of funds restricted to funding loans and operating warehouses and term deals e.g. Trustee fees Total cash on balance sheet $51.9M Cash on hand available for any business purpose Undrawn corporate facility available to fund the Companyʼs ongoing growth plans Wisr equity investment in funding trusts: ● PL Warehouse $16.6M ● SVL Warehouse $5.8M ● Freedom22 $5.5M, projected call date1 Sep-25 ● Independence23 $8.4M, projected call date1 Sep-26 ● Freedom23 $9.8M, projected call date1 Jul-27 1 Call dates are forecasted based on expected prepayment rates and actual dates may vary As at 31Dec-24 15 EXECUTIVE SUMMARY Strong loan origination growth ✓ Loan originations increased by 66% to $170.8M H1FY24 $103.1M ✓ Loan book growth realised in Q2FY25 after a period of moderated loan volume and now on the pathway to a $1B loan book ✓ We reaffirm our guidance of 75%+ loan origination growth in FY25 KEY DRIVERS Structural tailwinds increasing non-bank lender market share and technology-driven automation Improved loan book performance ✓ Net losses improved by 61 bps to 1.87% H2FY24 2.48% Expanding margins and EBITDA profitability ✓ Continued portfolio margin improvement with yield of 11.20% H1FY24 10.51%) and NIM of 5.75% H1FY24 5.33%) to deliver a highly profitable business at scale Well capitalised ✓ Well capitalised for growth with $17.9M of unrestricted cash and $15M undrawn corporate facility ✓ 90+ day arrears stable at 1.55% Jun-24 1.58%) and remains well-within risk appetite ✓ EBITDA profitable at $0.8M H1FY24 $0.2M ✓ Work progressed on third warehouse (mixed PL and SVL) with a new senior funder 16 QUESTIONS FOR YOUR SMART PART 17 ADDITIONAL INFORMATION FOR YOUR SMART PART 18 INCOME STATEMENT STATUTORY In H1FY25, revenue of $45M declined 6% vs. PCP. This was driven by a lower loan balance during the period, partially offset by an increase in portfolio yield, 69 bps to 11.20%. Employee expenses increased by 14% to $8.7M in H1FY25 8% on a cash basis1), reflecting incremental investment to support current and future loan origination growth. With loan book expansion realised in Q2FY25, the business will benefit from increasing operating leverage as revenue scales alongside the loan book. The $8.4M loss arising from changes in fair value of cash flow hedging instruments is driven by fair value changes of the derivative financial instrument during the period. 62% of the movement is due to utilisation of the hedge, with remaining movement driven by market interest rate changes. This is in line with AASB 9 Hedge Accounting requirements, which has impacted the cash flow hedge reserve resulting in a non-cash impact to the Profit and Loss for H1FY25. This has resulted in the total comprehensive loss for the period attributable to owners of Wisr Limited of $11.1M, an improvement on H1FY24 $15.8M. 1 H1FY25 $'000 H1FY24 $'000 Variance $'000 Variance % 45,309 48,113 2,805 6% 8,689 7,633 1,056 14% Marketing expense 214 184 30 16% Customer processing costs 1,815 1,656 158 10% Other expenses 3,224 3,644 421 12% Finance costs 26,987 26,744 243 1% Depreciation and amortisation expense 805 582 223 38% Provision for expected credit loss expense 5,180 8,274 3,094 37% Share based payment expense 1,100 1,106 6 1% Loss before income tax 2,706 1,711 995 58% Changes in fair value of hedging instruments entered into for cash flow hedges 8,407 14,127 5,720 40% Total comprehensive income is attributable to: Owners of Wisr Limited 11,113 15,837 4,725 30% REVENUE Revenue EXPENSES Employee benefits expense1 OTHER COMPREHENSIVE INCOME LOSS On a cash basis (including amounts capitalised as ‘Payments for technology assetsʼ), employee benefits expense increased by 8% in H1FY25 19 STATUTORY NPAT TO CASH NPAT AND EBITDA RECONCILIATION H1FY25 $'000 H1FY24 $'000 Statutory NPAT 2,706 1,711 Less: ECL provision benefit 1,972 2,156 Add: Share based payments expense 1,100 1,106 Add: Depreciation and amortisation 805 582 Add: Non-cash hedge accounting expense 170 398 2,603 1,782 Add: Head co finance costs 3,451 1,946 EBITDA 848 164 Cash NPAT 20 BALANCE SHEET STATUTORY Net Assets of $38.0M, a $10.0M decrease 30Jun-24 $48.0M, was largely driven by the movement in the derivative financial instruments balance by $8.6M to $5.3M 30Jun-24 $13.9M. As part of the hedging strategy, Wisr enters derivative financial instruments (interest rate swaps) to manage its funding exposure to interest rate risk. In line with AASB 9 Hedge Accounting requirements, the derivative financial instrument is fair valued at reporting date. The movement is a non-cash impact as the interest rate swaps are revalued in line with standards. 31Dec-24 $'000 30Jun-24 $'000 Variance $'000 Variance % Cash and cash equivalents 51,919 62,363 10,444 17% Trade and other receivables 255 1,177 923 78% Loan receivables 741,511 750,699 9,188 1% Other assets 1,884 1,449 434 30% 93 118 25 21% Right of use assets 4,071 130 3,941 3036% Related party loan 300 300 - - Derivative financial instruments 5,297 13,874 8,577 62% Intangible assets 8,653 8,361 292 3% 813,983 838,472 24,489 3% ASSETS Property, plant and equipment Total assets LIABILITIES The $3.9M increase in Right of Use Asset, and corresponding increase in Lease Liability relate to the AASB 16 lease accounting treatment for a new office lease executed by the Company in Dec-24, following conclusion of the existing office lease. Trade and other payables 1,836 1,422 414 29% Provision for employee benefits 1,209 1,237 27 2% Lease liability 4,181 145 4,036 2780% Borrowings 768,782 787,680 18,898 2% NTA per ordinary security of 2.11c, a 1.22c decrease 30Jun-24 3.33c) was largely driven by the movement in the derivative financial instrument balance (outlined above). Total liabilities 776,008 790,485 14,477 2% NET ASSETS 37,975 47,988 10,013 21% 146,008 145,216 791 1% 9,618 17,716 8,098 46% Accumulated losses 117,651 114,945 2,706 2% TOTAL EQUITY 37,975 47,988 10,013 21% EQUITY Issued capital Reserves 21 CASH FLOW H1FY25 $'000 H1FY24 $'000 Variance $'000 Variance % 44,126 47,282 3,156 7% 13,647 13,596 51 0% 30,479 33,686 3,207 10% Interest received 810 753 56 7% Management fees received 997 66 932 1421% 25,090 25,082 8 0% 7,196 9,423 2,227 24% Payments for plant and equipment 38 15 23 152% Payments for technology assets 777 1,170 394 34% Net movement in customer loans 3,498 73,194 69,696 95% Net cash from investing activities 2,684 72,009 69,326 96% Proceeds from Wisr Warehouse borrowings 63,520 200,800 137,280 68% Repayment of Wisr Warehouse borrowings 83,593 257,760 174,167 68% Transaction costs related to loans and borrowings 94 873 780 89% Payments for lease liabiliies 156 441 285 65% Net cash used in financing activities 20,323 58,275 37,952 65% Net (decrease)/increase in cash and cash equivalents 10,444 23,157 33,601 145% Cash and cash equivalents at the beginning of the financial half-year 62,363 53,577 8,786 16% Cash and cash equivalents at the end of the financial half-year 51,919 76,734 24,815 32% Unrestricted cash at the end of the financial half-year 17,920 19,895 1,975 9.9% CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees STATUTORY Net cash from operating activities decrease driven by a lower loan balance during the period driving lower receipts from customers. Net cash from investing activities reduction in H1FY25 driven by improvement in loan book decline in the period vs PCP as the Company returns to growth and turns the loan book around. Net cash used in financial activities decrease driven by lower relative loan book decline in H1FY25 vs. FY1FY24. Interest and other finance costs paid Net cash from operating activities CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES 22 H1FY24 H2FY24 H1FY25 FY23 FY24 Originations $M 103 107 171 495 210 PL originations $M 77 83 109 319 161 SVL originations $M 26 23 62 176 49 29,606 30,163 33,132 30,301 29,886 847 770 757 931 770 Portfolio yield % 10.51% 10.90% 11.20% 10.17% 10.90% Portfolio NIM % 5.33% 5.19% 5.75% 5.46% 5.19% Portfolio weighted average credit score 794 794 798 794 794 Front book weighted average credit score (exit month) 788 822 832 770 822 Net losses % of average receivables 2.35% 2.48% 1.87% 1.57% 2.53% 90 day arrears % of average receivables 1.31% 1.58% 1.55% 1.25% 1.58% ECL provision coverage % of closing receivables 2.90% 3.18% 2.97% 2.87% 3.18% 48.1 45.7 45.3 91.9 93.8 24.4 24.7 23.4 43.8 49.1 NIM 23.7 21.0 21.9 48.0 44.7 Net loan losses 10.4 10.0 7.2 14.5 20.4 Risk adjusted margin 13.3 11.0 14.8 33.5 24.2 Operating costs 13.1 13.4 13.9 33.9 26.5 EBITDA 0.2 2.5 0.8 0.4 2.3 Corporate facility finance costs 1.9 2.6 3.5 2.3 4.6 Cash NPAT 1.8 5.1 2.6 2.7 6.9 Cost to income ratio 27% 29% 31% 37% 28% 20 28 18 22 28 - 15 15 15 15 25 35 35 35 35 LOAN BOOK KEY FINANCIALS AND METRICS Average originations balance Closing loan book balance $M CREDIT QUALITY FINANCIALS $M Revenue Finance costs FUNDING AND LIQUIDITY $M Unrestricted cash Undrawn corporate facility Corporate facility 23 DISCLAIMER No investment advice or offer of shares This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose in any shares of Wisr, in any jurisdiction. Risks and assumptions This presentation contains statements (including forward-looking statements), opinions, projections, forecasts and other material, based on various assumptions. Whilst this presentation was prepared with care and attention, those assumptions may or may not prove to be correct. All forward-looking statements, whilst considered reasonable by Wisr at the date of this presentation, involve known and unknown risks, assumptions and uncertainties, many of which are beyond Wisrʼs control. There can be no assurance that actual outcomes will not differ materially from those stated or implied by these forward-looking statements, and readers are cautioned not to place undue weight on such forward-looking statements. To understand more about the risks and uncertainties faced by Wisr refer to the 2024 Annual Report. ABN 80 004 661 205 Statements about past performance are not necessarily indicative of future performance. To the extent required by law, neither Wisr of any of its directors, officers, employees and agents give any warranty, representation or guarantee as to the accuracy or likelihood of fulfillment of any forward-looking statement in this presentation or assumption upon which any part of this presentation is based or the accuracy, completeness or reliability of the information contained in this presentation. Non-GAAP financial measures A number of non-GAAP financial measures are used in this presentation. You should not consider any of these in isolation from, or as a substitute for, the information provided in the audited consolidated financial statements, which are available at: www.wisr.com.au Dollar estimates All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. 24