Announcement PDF ANNUAL REPORT 2022 WISR LIMITED • ANNUAL REPORT 2022 CONTENTS Our Vision 2 Chairman’s Review 4 CEO’s Review 8 Set up for profitability 12 • FY22 highlights 13 • Wisr has a unique and differentiated strategy 14 • Dual platform strategy is delivering growth and scale 16 • Growth built on consistent high credit quality 18 • Proprietary data algorithm Wisr Score 19 Managing a changing economic environment 20 • Protecting NIM and yield to deliver profit 21 • Focussing on achieving profitability within 12 months 22 • Operational leverage expansion 24 • Strong funding platform 25 • Cash EBTDA 26 • Profitability to be achieved within 12 months 28 Environment, Social and Governance 30 Award-winning momentum 32 Executive Leadership Team 34 Board of Directors 36 Financial report 38 • Directors’ report 39 • Auditor’s independence declaration 63 • Consolidated statement of profit or loss and other income 64 • Consolidated statement of financial position 65 • Consolidated statement of changes in equity 66 • Consolidated statement of cash flows 67 • Notes to the financial statements 68 Directors’ declaration 102 Independent auditor’s report 103 ASX additional information 107 Corporate directory 110 WISR LIMITED • ANNUAL REPORT 2022 OUR VISION IS TO BRING FINANCIAL WELLNESS TO ALL AUSTRALIANS 2 3 WISR LIMITED • ANNUAL REPORT 2022 CHAIRMAN’S REVIEW John Nantes EXECUTIVE CHAIRMAN Dear Shareholders, On behalf of the Wisr Board of Directors, it’s my pleasure to present the Wisr Annual Report for FY22. I’m immensely proud of the prime, low-risk, profitable and growing loan book that Wisr’s business model has delivered in FY22, including the following key achievements: • 24 consecutive quarters of prime-credit growth, surpassing $1.2B in total loan originations • Two consecutive positive operating cash-flow quarters (Q2FY22 and Q3FY22) • Operating revenue of $59M, a 118% increase on FY21 ($27M) • Priced our second ABS deal receiving significant support from the debt market; and • Maintained a strong balance sheet with $71.5M cash (including $23.3M unrestricted cash). Wisr’s robust funding strategy enabled the Company to respond quickly to the rapidly changing debt market conditions in H2FY22. With multiple levers to pull, including raising interest rates on new loans to increase the average yield of our loan book, we are well placed to navigate against a rising interest rate and inflation environment. FY22 has also seen rapid change in societal expectations of businesses in serving the public good. Since inception, Wisr has been a purpose-driven company built around creating a positive impact for Australian consumers. Our purpose guides everything from our business model, strategy and products to our culture and behaviours. Notably, our lending products have no ongoing or early repayment fees, we offer loan terms of 3, 5 or 7 years, and our platform helps customers understand 4 and improve their credit health. We want to support customers to reduce debt faster and improve their financial position. We are proud that Wisr is leading from the front on the key issues shaping today’s society. We are a climate-positive and carbon-neutral workforce that has offset 1,517 tonnes (including the working from home footprint of our staff) through projects that deliver measurable benefits aligned with the aims of the Paris Agreement and the UN Sustainable Development Goals.1 Wisr does not have a gender pay gap. As part of the Workplace Gender Equality Agency (WGEA) reporting requirements, a like-for-like analysis was undertaken on 31 March 2022. The Company found roles were adhering to the published bands per role, regardless of gender and identified no gender pay gaps. In April 2020, the Board set a target to achieve a minimum of 30% female representation on the Board whilst also adding further depth to Wisr’s governance capability. In January 2022, we took the first step by appointing former Deutsche Bank UK Director Cathryn Lyall to the position of Non-Executive Director. The Board’s target was exceeded in March 2022, following the appointment of Kate Whitney, Chief Marketing and Growth Officer, Marley Spoon Australia, to the position of Non-Executive Director. With a female board representation of 40%, the Company is now above the ASX200 average of 34.6%.2 The appointment of Kate and Cathryn is an exciting opportunity for the Company, our stakeholders and customers. Both are highly qualified with diverse experience and are first-time ASX-board appointees. Wisr is very proud to support greater gender diversity on the ASX. A depth of research from Australia and across the globe clearly shows the positive impact of female board membership on a company’s growth and profitability.3 Our high-performance culture at Wisr continued to 1 receive recognition internally and externally. In addition to delivering an average +86 Employee Engagement score for FY22, the Company was awarded two prestigious awards in the 2022 AFR Best Places to Work Awards - rising to #2 in the Banking, Superannuation & Financial Services category and taking out the Most Outstanding Practice for the Diversity & Inclusion Award. BUILDING FINANCIAL STRENGTH Throughout FY22, Wisr continually reviewed the Company’s credit decisions to drive strong organic growth while optimising the profitability of the loan book. At 30 June 2022, Wisr had a total loan book of $803M (FY21: $432M). Operating revenue grew to $59M, a 118% increase on FY21 ($27M), while operating expenses increased by 47%, demonstrating continued operational leverage. This also drove Wisr’s maiden positive operating cash flow and Cash EBTDA quarter (Q2FY22). Revenue growth and continued scaling delivered a second consecutive positive operating cash-flow quarter (Q3FY22). The Company generated Cash EBTDA of $(7.2)M in FY22, a 30% improvement on FY21 ($(10.2)M) and an increase in loss before tax of 13% to $(19.9)M (FY21 $(17.6)M), predominantly driven by the material non-cash provision for expected credit loss expense of $16.4M (FY21 $7.9M) due to the significant growth in the loan book. Wisr wrote a record level of prime quality credit during FY22 while achieving 90+ day arrears of 0.98% as at 30 June 2022 (Q4FY21: 0.65%). The Company is well capitalised with $71.5M cash ($23.3M unrestricted cash) and $8.2M liquid loan assets as at 30 June 2022. The liquid loan assets are sold into the warehouse trusts at regular intervals and are relevant to the Company’s capital position. Through partnership with trace https://www.our-trace.com/our-projects 2 https://www.moneymanagement.com.au/news/financial-planning/gender-diversity-lagging-asx-boards#:~:text=The%20ASX%20200%20in%202015,It%20was%20now%20at%20 33.1%25. 3 In October 2011, the non-profit research organisation, Reibey Institute, reported that over three- and five-year periods, ASX500 companies with women directors delivered significantly higher return on equity (ROE) than those companies without any women on their boards (6.7% higher over three years and 8.7% higher over five years) respectively. 5 WISR LIMITED • ANNUAL REPORT 2022 LOOKING FORWARD TO THE YEAR AHEAD To maintain a strong balance sheet and be set on a path to being profitable within 12 months1, the Company has increased loan pricing and reduced operating costs. Whilst we expect these operational initiatives will see the Company’s growth moderate in FY23, we believe this is a prudent path for the business given the macroeconomic backdrop. We are confident that Wisr’s prime loan book, our differentiated purpose-built business model and the high-performance culture of the entire Wisr team, positions the Company to deliver strong financial performance through the cycle. To our shareholders, on behalf of the Wisr Board, we sincerely thank you for your ongoing support. Lastly, I would like to thank the Board, Executive Management and all of Wisr’s staff for their continued support, vision and expertise as we continue improving Australia’s consumer credit experience. 1 Profitability is on a run-rate Cash EBTDA basis and is subject to broader market conditions, including any significant volatility events, the level of global inflation and interest rates, and the impact of any geopolitical events. 7 6 7 WISR LIMITED • ANNUAL REPORT 2022 CEO’S REVIEW Anthony Nantes CHIEF EXECUTIVE OFFICER In FY22, despite the macroeconomic challenges of inflation and subsequent interest rate rises, we reaffirmed Wisr’s place as one of Australia’s fastestgrowing and most innovative companies. We are a growth Company and will be a growth Company for the next decade or more as we seek to materially increase our share of the c. $150B consumer finance market in Australia. We delivered $611M in newly originated prime-credit loans at an annual growth rate of 67%, and all built on a foundation of high credit quality, which sets us up well as we head into a period of economic uncertainty. We extended our safe, consistent loan growth to 24 consecutive quarters, surpassing $1.2B in total loan originations; grew operating revenue by 118% to $59M and increased our loan book by 103% to $780M. These results and how we have managed the Company allowed us to deliver two positive operating cash-flow quarters, clearly demonstrating we were well on the way to profitability before the change in market conditions dramatically affected our cost base and margins. We have rapidly responded to these changed conditions, making several decisions to correct our course back through profitability and protect our margins as we go forward. We climbed 66 places to #12 in the AFR Fastest Starters and placed #21 in the Deloitte Technology Fast 50 Awards. We welcomed one of Australia’s largest institutional fund managers as a mezzanine investor in the Wisr Warehouse (WH1) and priced our second ABS transaction ($250M) with a weighted average margin of 2.23% over one-month BBSW. Continuing to originate credit assets of the highest quality is paramount within the current market uncertainty, as is the broad support of the debt market. I’m incredibly proud of the results we have achieved. It’s a phenomenal validation of our purpose-built 8 business model, prudent treasury and underwriting methodology and the capability of the widely recognised high-performing Wisr Team. Financial Wellness Platform: Our proprietary channel passed 647,000 profiles (43% growth on pcp) and is well on the path to 1M customer profiles. FY22 PERFORMANCE HIGHLIGHTS ACCELERATING THE PATH TO PROFITABILITY Originations: 24 quarters of growth with total new loan originations up 67% to $611M as at 30 June 2022 (FY21: $366M). Robust growth back-ended the year, with loan originations of $344M in H2; 28% growth on H1 $267M. To navigate market conditions in the best position possible, we have prudently and proactively adjusted our strategy and cost base to position the Company for long-term sustainable growth. Revenue: The Company delivered operating revenue growth of 118% to $59M for the year ending 30 June 2022 (FY21: $27M). Funding: The $225M Wisr Secured Vehicle Warehouse (WH2), backed by National Australia Bank, launched in October 2021. In January 2022, the successful refinancing of WH1 mezzanine investor AOFM by IFM was finalised, and funding increased from $350M to $450M in April 2022. In March 2022, WH2 committed funding was raised from $225M to $300M and $400M in July 2022. Wisr Freedom Trust securitisation: The second ABS transaction for the Company, the $250M Wisr Freedom Trust 2022-1 (made up of personal loans), received a AAA Moody’s rating for the top two tranches and a weighted average margin of 2.23% over one-month BBSW, freeing up $250M capacity in $450M WH1. On-balance sheet loan book: Growth of 103% to $780M (FY21: $384M) and on-balance sheet portfolio 90+ day arrears of 0.98% at 30 June 2022 (FY21: 0.65%). Innovation: The proprietary credit score Wisr Score, built utilising advanced data analytics, was launched in February 2022, optimising Wisr’s customer riskadjusted return to deliver a more profitable business. The floating BBSW has been hedged since the inception of warehouse funding facilities in November 2019. To ensure we maintain and protect margin and profitability, in response to the realised and predicted increase in Cost of Funds (COF), we have been lifting loan rates consistently and, as a bank has been, passing on the rising interest rates on new loans to customers throughout Q4FY22 and into FY23. We have made material reductions in operating costs and raised our yield by around 340bps to protect our Net Interest Margin (NIM) as we enter FY23 to deliver profitability in the short-term and moderate our growth ambitions to focus on the path to profitability. By taking prudent steps, implementing rate and pricing levers, tightening credit in line with risk appetite and significant material reductions in operating costs, Wisr is in the strongest position to navigate market conditions and still deliver a strong revenue growth trajectory over the next 12 months and positively impact Cash EBTDA. We have our sights set firmly on moving through breakeven and into sustainable profitability as our next goal. Our credit decisions and products are prime-skewed to bank-grade customers, and we’re prepared to respond quickly and navigate changing market conditions. 9 WISR LIMITED • ANNUAL REPORT 2022 FY23 OUTLOOK We are a growth Company and will be a growth Company for the next decade or more as we seek to materially increase our share of the c. $150B consumer finance market in Australia. However, in the short term, we have prioritised achieving profitability within 12 months1 over accelerating growth. We are well-capitalised and building sustainable revenue. The strategic adjustments of pausing all new credit product expansion, innovation and go-tomarket expenditure will drive the push to profitability further as we continue to demonstrate the strong and safe fiscal management we are known for. Our competitive advantage, a purpose-led model that improves financial wellness and goes far beyond the traditional lending experience, attracting Australia’s most creditworthy customers, has never been more relevant. As consumers demand fairer financial products and services due to cost-of-living pressures and rising rates, Wisr is well-placed and wellresourced to meet the demand. To our Wisr shareholders, our funders and stakeholders, thank you for your continued support of our purpose-led business model and belief in our mission to improve the financial wellness of all Australians. To our amazing Wisr Team, thank you for delivering 24 consecutive quarters of growth, a world-class high-performance culture, and your resilience in rapidly changing conditions. I would also like to thank our Board, and my whole Executive Team, for your continued support and expertise. Together, we will embrace the opportunities waiting for us in FY23, deliver a highly profitable business with a prime customer base and forever change how Australians experience consumer finance. 1 Profitability is on a run-rate Cash EBTDA basis and is subject to broader market conditions, including any significant volatility events, the level of global inflation and interest rates, and the impact of any geopolitical events. 7 10 11 WISR LIMITED • ANNUAL REPORT 2022 SET UP FOR PROFITABILITY 12 FY22 HIGHLIGHTS $611M $1.2B $59M $(7)M in new loan originations Total loan originations in Operating revenue Cash EBTDA 67% on pcp 118% on pcp Wisr wholly-owned loan book up 103% to $780M (FY21 $27M) 647K+ 0.98% $250M Wisr Financial Wellness Platform profiles On-balance sheet 90+ day arrears ABS transaction, Wisr Freedom Trust 2022-1, 2.23% over onemonth BBSW (FY21 $366M) 43% on pcp (FY21 451K) as at 30 June 2022 (FY21 0.65%) Settled 20 June 2022 30% improvement on pcp (FY21 $(10)M) Market-leading net promoter scores +76 +86 Business NPS Employee Engagement FY22 results and subsequent Q1FY23 decisions, sets the Company on a path to be profitable within 12 months1 Wisr well capitalised with $71.5M cash balance includes $23.3M unrestricted cash at 30 June 2022 Delivered two positive operating cash flow quarters in Q2FY22 and Q3FY22 (before the rapid change in market conditions) Recognition by AFR Best Places to Work (#2 for category) and overall #1 for Diversity & Inclusion Strong growth backending the year, with loan originations of $344M in H2; 28% growth on H1 $267M $250M ABS transaction, Wisr Freedom Trust 2022-1, and AAA rating from Moody’s No gender pay gap and 40% female Board representation achieved Wisr Secured Vehicle Warehouse (WH2) launched in October 2021 1 Profitability is on a run-rate Cash EBTDA basis and is subject to broader market conditions, including any significant volatility events, the level of global inflation and interest rates, and the impact of any geopolitical events. 13 WISR LIMITED • ANNUAL REPORT 2022 WISR HAS A UNIQUE AND DIFFERENTIATED STRATEGY Digital lending platform Wisr’s unique competitive advantage Financial wellness platform 14 Our tech, data, analytics and highperformance culture are genuine competitive advantages Loan Origination in FY22 was a record $611M (up 67% pcp), delivering: • $1.2B loans written since inception (Q1FY17) • 24 consecutive quarters of new loan origination growth • Revenue of $59M (up 118% pcp) • 103% pcp loan book growth (now $780M) Significant room for growth is evident in the current business: • With more room to win in competitive channels The success of the Financial Wellness Platform can be leveraged, in-line with our existing budget for this strategy: • The data is highly valuable • Our ability to further optimise risk for growth and profitability • It is delivering tangible benefits for customers that engage with it • It is already providing a significant ROI for us and setting us up for larger opportunities • Demonstrated effectiveness of the Wisr Financial Wellness Platform as our most cost-effective channel for loan origination 15 WISR LIMITED • ANNUAL REPORT 2022 DUAL PLATFORM STRATEGY IS DELIVERING GROWTH AND SCALE Lending Platform Financial Wellness Platform (Profiles1) 1 Financial Wellness Platform has grown to over 647K users and will continue to grow as Company approaches target of 1 million profiles 16 Wisr quarterly loan book growth1 Accelerating revenue growth 1 Loan Book includes all loans in WH1, WH2, Freedom Trust 2021-1, Freedom Trust 2022-1 and balance sheet, excludes off-balance sheet of $22.7M as at 30 June 2022 17 WISR LIMITED • ANNUAL REPORT 2022 GROWTH BUILT ON CONSISTENT HIGH CREDIT QUALITY Strong credit quality has been achieved in FY22 with prime1 average credit scores and less than 1% on-balance sheet 90+ day arrears. Wisr loan customer average credit score With 24 consecutive quarters of best-in-class responsible lending compliance, focus on prime and super prime credit, maintaining a tight credit policy, delivering a decrease in provisioning over time and arrears and credit loss levels being well inside internal targets, Wisr is prepared to navigate market conditions. The framework is already in place to manage credit quality through the cycle, including controls such as: On-balance sheet portfolio 90+ day arrears2 • Early warning indicators • Proprietary Wisr Score, which provides a more accurate view of a customer’s financial standing and optimises risk-adjusted return • Increased use of digital data with automated rules around account conduct • Adoption of Fortiro to identify potential fraud and limit early default receivables • Credit policy changes with a greater hindsight review of historical arrears and tightening credit in line with risk appetite • Ongoing investment in collection processes 1 Prime credit score = 726-832 and Superprime credit score = 833-1200; source Equifax https://www.equifax.com.au/personal/what-good-credit-score 2 On-balance sheet portfolio arrears, excludes off-balance sheet. 18 PROPRIETARY DATA ALGORITHM WISR SCORE With $1.2B in loans written, Wisr has significant customer data to optimise and internalise our lending engine and risk-return profile. Through the February 2022 launch of our proprietary credit score platform and algorithm, the Wisr Score, we will be able to make smarter, faster and more profitable decisions. Utilising advanced data analytics, the Wisr Score will drive significantly better outcomes for Wisr in the coming years as it delivers: faster decisions, a more scalable business, a better customer experience, a better risk-adjusted portfolio and a more profitable business. WISR PROPRIETARY PROFILE DATA WISR PROPRIETARY FINANCIAL DATA Provides a more accurate view of a customer’s financial standing (compared to the traditional bureau score) Improves credit decision automation ADDITIONAL ADVANCED DATA ANALYTICS Optimises risk-adjusted return (increase lending without increasing the net loss margin), making Wisr more profitable 19 WISR LIMITED • ANNUAL REPORT 2022 MANAGING A CHANGING ECONOMIC ENVIRONMENT 20 PROTECTING NIM AND YIELD TO DELIVER PROFIT Between April and September 2022, the blended hedged BBSW cost increased by c. 80 bps. In response, Wisr has increased the front book weighted average yield by c. 340 bps between April and September 20221. Wisr is well prepared to mitigate current market conditions and absorb BBSW increases while still earning a very healthy Net Interest Margin (NIM) with multiple levers, including raising interest rates on new loans. Since the inception of warehouse funding facilities in November 2019, Wisr has hedged the floating component of its cost of funds – the BBSW. Wisr will continue to lift yield and pricing in the market to protect profitability and NIM. Loan origination yield and BBSW 1 August and September are forecast based on anticipated loan volume, corresponding yield and BBSW 21 WISR LIMITED • ANNUAL REPORT 2022 FOCUSSING ON ACHIEVING PROFITABILITY WITHIN 12 MONTHS FY22 results and subsequent FY23 decisions, sets the Company on a path to be profitable within 12 months1 Wisr is a growth Company and will remain a growth Company for the next decade or more. However, prudent fiscal management is required at this time, and the Company will be right-sized and fully focussed on achieving profitability in the shortest path possible. Recognising current market conditions, Wisr is focussed on delivering both profitability in the shortterm and sustainable long-term profitability. To maintain a strong balance sheet and deliver a highly profitable business, we must navigate market conditions in the best position possible. As such, we have prudently and proactively adjusted our strategy and cost base to position the Company for long-term sustainable growth. 1 Profitability is on a run-rate Cash EBTDA basis and is subject to broader market conditions, including any significant volatility events, the level of global inflation and interest rates, and the impact of any geopolitical events. 22 Focus on near-term profitability • Significant reduction in short-term lending growth aspirations in response to the macro environment • Switching from high to moderate growth will positively impact Cash EBTDA • Front book yield will continue to lift to ensure the Company achieves strong NIM and profitability Cost management • A material reduction in employee expenses and headcount • A material reduction in external spend Strategic adjustments • Pausing all new credit product expansion and goto-market expenditure • Exited any continued support for Arbor in the EU market and any short-term growth ambitions for geographical expansion • An overall material reduction in investment in the Wisr Financial Wellness Platform 23 WISR LIMITED • ANNUAL REPORT 2022 OPERATIONAL LEVERAGE EXPANSION FY22 P&L Waterfall The operational leverage of the core Wisr lending platform continued to expand while the Company invested in the Financial Wellness Platform, further innovation and the build and launch of more products. Revenue 118% Operating revenue growth in FY22 vs FY21 under the Wisr Warehouse funding model and on the back of 24 consecutive quarters of loan origination growth 24 Core opex Opex related directly to the core personal and secured vehicle loan business from application to settlement Growth opex Predominantly consists of investment into the Wisr Financial Wellness Platform and investment into the build and preparation to launch new products Other Includes Public Company costs and one-off items including the Tokyo Olympics brand campaign Non-cash Includes ECL provision, share based payments and depreciation STRONG FUNDING PLATFORM • WH1 has $450M of committed funding and an undrawn capacity of $307M • Wisr has now delivered two personal loan ABS transactions - Freedom21 and Freedom22 • WH2 has $300M of committed funding, increased to $400M in July 2022 and an undrawn capacity of $125M (post increase) • The Head Co Loan commitment has reduced from $21.5M to $6.5M given the strong balance sheet position. $6.5M was drawn upon inception • Inaugural SVL ABS transaction to be undertaken in FY23, creating additional funding capacity within WH2 • Third warehouse of c. $200M to be originated in FY23 with new senior funder and ability to fund both PL and SVL • For both WH1 and WH2, the senior funder is National Australia Bank (NAB). In WH1, IFM sits alongside the existing mezzanine funder MA Financial Group. In WH2, Revolution Asset Management is the mezzanine funder • Second ABS transaction (Freedom22) settled for $250M in June 2022, creating additional funding capacity within WH1. The year-end balance was $229M 25 WISR LIMITED • ANNUAL REPORT 2022 CASH EBTDA • In FY22, the Company continued on the path to profitability, with a Cash EBTDA of $(7.2)M, a 30% improvement from $(10.2)M in FY21 • The continued operational leverage in the business is evidenced through 118% operating revenue growth compared to 47% for operating expenses • Net loan write offs represent 1.2% of the average loan book balance for FY22, which is well within management expectations • Interest expense increased 146%, driven by 67% loan origination growth and 103% loan book growth, along with higher funding costs • The interest expense represents c. 3.2% of the average loan book balance for FY22 FY22 ($’000) FY21 ($’000) Variance 59,392 27,575 118% Operating expenses (40,972) (27,943) 47% Net loan write offs (6,852) (2,227) 208% Interest expense (18,754) (7,614) 146% Cash EBTDA (7,186) (10,209) 30% Revenue 26 27 WISR LIMITED • ANNUAL REPORT 2022 MODERATE GROWTH PROFITABILITY TO BE 1 ACHIEVED WITHIN 12 MONTHS Strong and prudent growth delivered Prime $780M Loan Book heading to $1B, FY22 operating revenue up 118% on the back of 24 consecutive quarters of loan growth. Growth rate to be tempered to achieve profitability within 12 months1. On track to be profitable within 12 months On-balance sheet arrears less than 1% (0.98%), decrease in provisioning over time, with last 7-year focus on prime and super prime credit only, setting the Company up well to thrive through a change in domestic economic conditions Significant opex reduction delivered Material reductions in opex, headcount, internal and external spend, and pausing or exiting fully growth spend initiatives. Fast levers pulled to protect margin / NIM In response to the rising cost of funds, Wisr has increased the front book weighted average yield by c. 340 bps between April and September 20222. Loan unit economics managed and protected through increased front book rates, back book hedging, and maintaining prime credit quality and loss metrics. Unique strategy to deliver rewards in challenging times Over 647K Australians in proprietary Financial Wellness Platform, reduces customer acquisition cost, drives loan conversion, improves customer financial wellbeing and opens up new revenue models. 1 Profitability is on a run-rate Cash EBTDA basis and is subject to broader market conditions, including any significant volatility events, the level of global inflation and interest rates, and the impact of any geopolitical events. 2 August and September are forecast based on anticipated loan volume, corresponding yield and BBSW 28 “We are a growth company and will continue to be a growth company for the next decade or more, but in the short term we’ve prioritised achieving profitability within 12 months over accelerating growth.” Anthony Nantes CHIEF EXECUTIVE OFFICER 29 WISR LIMITED • ANNUAL REPORT 2022 ENVIRONMENT, SOCIAL AND GOVERNANCE E Purpose-led companies outperform in long-term value creation (TSR) because purpose unites employees and customers – profits and purpose are inextricably linked1. Wisr’s purpose guides everything from our business model, strategy and products to our culture and behaviours. We exist to improve the financial wellness of all Australians. Wisr is proud to have ESG in our DNA and at the centre of everything we do. S G 1 Blackrock’s Larry Fink: “Profits,” https://www.linkedin.com/pulse/my-2019-letter-ceos-inextricable-link-between-purpose-larry-fink/ 30 Carbon neutral • Climate-positive and carbon-neutral workforce • Offset 1,517.4 tonnes (including staff WFH footprint) through projects that deliver measurable benefits aligned with the aims of the Paris Agreement and the UN Sustainable Development Goals1 • PL and SVL products used for purchase of EVs and second-hand vehicles. PL purpose includes solar infrastructures (e.g. panels and batteries), and sustainable home renovation products (e.g. insulation, building materials, appliances, water tanks) Social opportunity • Wisr does not have a gender pay gap2 • In April 2020, the Company’s Board set a target to achieve a minimum of