FY20 Results 27 August 2020 Contents For personal use only - PowerPoint PPT Presentation

For personal use only FY20 Results 27 August 2020

Contents For personal use only Section 1 Overview and performance summary 3 Section 2 Operational update 7 Section 3 Financials, funding and credit 13 Section 4 23 Outlook Section 5 Additional information 27

For personal use only Due to COVID-19 travel and on site photography restrictions, stock images are in use ≈ “Prospa’s support during the pandemic was just great, and better than my bank. My jewellery store is inside a Section 1 hotel, which has been closed since April. Prospa put me on a Overview & reduced repayment plan, which was very helpful. I’m still able to do business with my performance customers but not face to face like I normally would.” summary Maria, SA, Australia

Our Purpose We are Australia’s #1 online lender to small business, 1 disrupting a market segment that has traditionally been underserved For personal use only Beau Bertoli Greg Moshal Peter Loosmore CRO and Co-Founder CEO and Co-Founder Interim Chief Financial Officer Who we are What we do Why we exist • • • Online small business lender Mission: help small businesses to prosper Australian small businesses are underserved by traditional banks • • Established in 2012, founders remain in the Fast and flexible cash flow solutions • business Product offering delivers to customer • Decisions and funding often by the next expectations of speed and service • Early mover with #1 position ¹ and a scale business day • advantage in a fragmented market Technology and access to capital are • Leveraging our technology and data, and enabling disruptors to meet these • Advanced technology platform with look for opportunities to innovate expectations proprietary credit decision engine • Operate a multi-channel distribution • Headquartered in Sydney, Australia network #1 28,750 $1.6b+ 10,000+ +77 64% customers since inception 2 loans originated since inception 2 Customer NPS 3 repeat business 4 in Australia 1 Distribution Partners 2 1. Prospa is ranked #1 in Australia in the Non-bank Financial Services category on independent review site TrustPilot with a TrustScore of 4.9 and over 5,434 reviews as at 12 August 2020. Prospa is ranked #1 in New Zealand in the Non-bank Financial Services category on independent review site TrustPilot with a TrustScore of 4.9 and over 546 reviews as at 12 August 2020. 2. Total unique customers in Australia and New Zealand since inception, as at 30 June 2020. Total active customers at 30 June 2020 is 13,342. 3. Net Promoter Score was in excess of +77 for FY20. 4. 64% represents the repeat rate for eligible customers only (where eligible customers are defined as not having defaulted on their Prospa loan), based on the average monthly repeat rates for the 25-month period of 1 June 2015 to 30 June 2017. 4 Cohorts originated after March 2017 are still in the process of seasoning and therefore excluded from this analysis.

FY20 Overview Resilient performance during challenging times Finan Fi ancial al For personal use only ons 1 Origina Or nations Av Avg. . Gross Loan ans Re Revenue $450.9m -10.1% $433.3m +35.7% $142.1m +4.2% Q1-3 Q1 3 $4 $429.0m m +3 +31.6% ow 2 Sta Statu tuto tory EBITDA DA Operating Op ng Ca Cash F h Flow Fu Funding Fac Facilities es ($19.5m) $33.8m +100% $442.9m at 30 June Ex Excl. . for orward look ooking COVID Unr Unres estricted ed Cas ash Unused Unu ed Fac acilities es provision & loan receivabl pr ble adj dj. $4.0m $55.3m +90.7% $114.1m at 30 June Operationa Op onal First warehouse facility Maintained a Two new credit products in NZ and further Net Promoter Score introduced to market diversification in AU in excess of +77 1. Originations from all sources, including Small Business Loan, Line of Credit, Back to Business Loan, Back to Business Line and ProspaPay; and all geographies including Australia and New Zealand. 2. Cash flow is prior to loan write-offs. 5 3. All references to dollars in this document are in AUD unless otherwise indicated. 4. All percentage comparisons on this slide are comparisons to the same period in the prior corresponding year.

Prospa’s response to COVID-19 challenges Resilient business model supported by a prudent and active approach to managing the business during challenging times For personal use only Supporting our Protecting the wellbeing Diversified Balance sheet customers of our People funding strength Amendments to warehouse Diverse range of local and Strong liquidity position with Focus on health, safety and facilities completed to enhance international senior and junior $55.3 million of unrestricted cash wellbeing of employees ability to provide customers funders Overhead and employee cost BCP activated with 100% up with support during COVID-19 Support to provide extended reductions - tighter cost controls time for 100% of team working Flexible customer relief policy relief for customers remotely Conservative approach to credit implemented $90 million investment allocation loss provisions Talent retention program Proactive customer outreach under SFSF from AOFM 2 Financial Planning and Analysis Q4 Employee engagement 86% 1 and automatic deferrals for $223 million allocation in SME function established to improve sectors most impacted Loan Guarantee Scheme scenario planning and focus on Customer rehabilitation yield management strategy executed 1. Internal Pulse survey, 86% percent of Prospa people would recommend Prospa as a place to work. 6 2. ‘SFSF’ is the Structured Finance Support Fund and ‘AOFM’ is the Australian Office of Financial Management.

For personal use only Due to COVID-19 travel and on site photography restrictions, stock images are in use ≈ “Prospa really, really helped. It has gone a long way to helping us survive those hard days, Section 2 especially when the revenue dropped to 0% just like that. The support from Prospa Operational was way better than what my bank offered even though I had Update all my property fully mortgaged to them. Shariff, Hawke’s Bay, NZ

A proven and resilient business model Prospa’s competitive advantage For personal use only Scale #1 online lender to small business 1 Technology Significant leverage across key Data driven credit model with 450+ business drivers data points assessed Large proprietary database with credit data from ~100,000 application data sets High quality customer intermediary and strategic partner experience Funding Drives predictability Advanced risk management – quick Institutional funding structure response to challenges in current Opportunity to further improve funding market efficiency Diverse range of local and international Distribution senior and junior funders AOFM investment of up to $90 million Multi-channel distribution network: – 10,000+ Distribution Partners – Direct customer acquisition – Ecosystems with strategic partners Underpinned by our risk management and compliance framework 1. Prospa is ranked #1 in Australia in the Non-bank Financial Services category on independent review site TrustPilot with a TrustScore of 4.9 and over 5,434 reviews as at 12 August 2020. Prospa is ranked #1 in New Zealand in the Non-bank 8 Financial Services category on independent review site TrustPilot with a TrustScore of 4.9 and over 546 reviews as at 12 August 2020).

Prospa: a cohesive small business focused platform We build cashflow products and services that allow small businesses to GROW and RUN their businesses and help For personal use only them PAY for goods and services AU Small Business Loan from $5k to $300k with terms up to 36 months A revolving Line of Credit facility up to $100k, with a renewable 12 month term Government Guaranteed Small Business Loan from $5k to $250k with terms up to 36 months until 30 September 2020 Government Guaranteed revolving Line of Credit facility up to $100k, with terms up to 36 months. until 30 September 2020 Mobile App with Pay Anyone functionality Small Business Loan from NZ$5k to NZ$300k with terms up to NZ 24 months 9

Portfolio is well diversified at 30 June 2020 Portfolio diversification supports risk management strategy For personal use only AU NZ Number of years trading 3 8% Business Loan 1 Line of Credit Business Loan 11% 26% 1-3 NZ $24k $26k $39k 4-7 8-10 13% 11-15 Average loan amount Average facility limit Average loan amount 16-20 20+ Average term Average term Average utilisation rate 28% 12 months 13% 13.6 months 56% 2 Portfolio by industry 3 Portfolio by geography 3 0% 8% 5% Retail 4% ACT 18% 3% Wholesaling 13% NSW Building And Trade 6% 34% NT Professional Services QLD 13% 8% Hospitality SA Other 26% TAS Financial Services And Insurance VIC 1% 17% Transport WA 24% 14% Manufacturing 2% NZ 5% 1. Average fresh capital originated, excluding re-financed amounts. 2.Utilisation rate is the active utilisation rate, which is the life to date amount used as a proportion of the active life to date total facility limit 10 3.All portfolio data includes Australia and New Zealand and is current as at 30 June 2020. Based on number of loans disbursed..