Slides
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FY25Full Year Results 12 months to 30 June 2025 For personal use only
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2 Presentation OutlineItem PresenterPages FY25 HighlightsDavid Bailey4 – 6 Market & operations updateDavid Bailey7 – 13 Financial updateLuca Pietropiccolo14 – 20 OutlookDavid Bailey21 – 26 Q&A Appendices For personal use only
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3 $948BSettlements p.a. in the Australian finance market1 77%of residential mortgages originatedthrough the broker channel2 4,200 AFG brokersacross Australia3 1 in 10Residential mortgages in Australia written by an AFG broker4 550kCustomers supportedeach year by AFG brokers | Over 31 years delivering innovative solutions in the finance industryAFG Distribution (81%)5Broker platform connecting lenders to borrowersManufacturing (19%)5Offering financial products for customers $211B 5% Trail book $3.5B 9% Settlements $14B 8% AFG Home Loans trail book 3.8 6% Number of services per broker $5.5B 23% Residential mortgage Loan book $6.8B 17% Loan book Market leading broker technology | Experienced management | Disciplined capitalmanagement1.Source: ABS – Settlement volumes per annum residential and commercial2.Source: MFAA – Broker market share of Australian residential mortgages3.Brokers across AFG and Fintelligence (asset finance) aggregation Residential mortgages AFGSecuritiesAssetfinanceHigher marginproductsBrokerservices Thinktank6 Significant scale in the finance industry Established diversified business model vFY24 vFY24 vFY24 vFY24 vFY24 vFY24 4.Source: AFG & ABS – AFG brokers write 1 in 10 Australian residential mortgages5.Percentage of EBITDA6.32% ownership in Thinktank, a residential & commercial non-bank lender Strong market position underpinned by For personal use only
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4 FY25HighlightsFY25 RESULTS For personal use only
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5 STRATEGIC PILLAR 3Deliver higher margin through our distribution networkSTRATEGIC PILLAR 2 Provide market leading technology propositionSTRATEGIC PILLAR 1Grow our broker network FY25 highlights – delivering on our strategy Strong strategy execution, underpinned by a disciplined capital allocation approach.TSR1 of 203% since listing in 2015. FY25: Delivered record broker numbers & volumes50% users on BrokerEngine Plus, with strong net promoter score approaching 50 $2.5m in annual efficiency gains in AFG Securities 1.Assumes full participation in any capital events and reinvestment of dividends2.Includes investment completed July 2025 +200 Record AFG broker recruits 3 Broker Investments completed2 +23% AFG Securities loan book 58% Brokers writing multiple products3 FY25: Growing scale across a diversified business modelFY25: Enhanced competitive advantage in our broker proposition 3. Products including residential mortgage, commercial mortgage, asset finance, personal loans, insurance For personal use only
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6 FY25 financial highlightsStrong 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. Distribution ▲ 10% to $68m +$10m net interest margin8% reduction in underlying CTI3Improving arrears & no losses -$2m invested in new growth initiatives-$1m one off costs +9% gross profit per broker+17% diversified product margin+$2m broker subscriptions Manufacturing ▲ 53% to $16m Central services $(28)m Underlying gross profit per broker1, 2▲ 13%$38kGross profit1 ▲ 14%$139.2mEBITDA▲ 19%$56.2mReported NPAT▲ 21%$35.0m EBITDA by segmentGrowth v FY24 Investments & liquid assets$182mCashrealisation90%Annuity style earnings73%1.Gross profit and other income2.Per AFG broker3.Cost to income ratio For personal use only
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7 Market & operations updateFY25 RESULTS For personal use only
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8 Core MidLarge AFG Brokers by group size3 59%68%67%75%77% FY21FY22FY23FY24FY25 Total broker market share1 of Residential mortgages 3.1k3.7k3.8k4.0k4.2k FY21FY22FY23FY24FY25AFGFintelligence Consumers continue to prefer broker… AFG broker network, growing to a record high 1.Source: MFAA, Australian Market Mar 20252.Active brokers writing a deal within the last 6 months …as AFG continues to grow its network… +5% 3. Large groups 6 or more brokers, Core with 2 or less brokers4. Source: MFAA, Industry Insights Service Report 19 75 Large broker groups, Average 14 brokers Writing $21m per broker As broker share rises towards 80% and industry consolidation accelerates, AFG has an advantage with growth focused brokers with its tech-enabled, service-led model •Digital investment by lenders continues, yet brokers win share on trust, competition and choice — a structural advantage underpinned by Best Interests Duty. AFG Group active2 brokers •Retiring brokers create a strong acquisition pipeline for large Broker Investments groups•Brokers in large groups represent 27% of total Industry brokers in March 2024 (20% at Mar ‘23)4. AFG highest market share is with Large broker groups …with broker consolidation evident Moving towards 80%+ For personal use only
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9 403438 282729 FY23FY24FY25 AFG Underlying Gross Profit($k per broker p.a.) Delivering greater value to our broker networkInvestments in product diversity & broker services are providing greater efficiency and value for brokers.Setting us apart in market. 1.Gross profit and Other income excluding trail book accounting adjustment. Manufacturing earnings exclude contribution from investment in Thinktank2.Diversified products include all products outside of traditional Residential mortgage aggregation margin such as Commercial, White Label, Asset finance, Manufacturing, and fee income ResidentialDiversified products2ManufacturingBroker Services +13% 75% from diversified earnings Distribution earnings1 up 9%Volume growth, greater diversification & broker services•Residential: Majority is annuity style trail income, providing predictability and platform for growth. Also benefiting from record settlements.•Diversified products2: Brokers adopting products beyond residential – enabled by broker education, technology and Partner Connect•Broker services: Adoption of subscription services, driven by recent investments and ongoing enhancements to meet broker needs Manufacturing earnings1 up 27%Continued growth across FY25, with $5.5bn book•Securities book up 23% compared to June ‘24, with record settlements•Improving FY25 NIM, with the benefit of cash rate reductions flowing to lower H2 funding costs and into FY26 For personal use only
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10 $54B$55B$63B FY23FY24FY25 Residential Settlements $83B$86B$101B FY23FY24FY25 Residential Lodgements Residential outpacing market1 1.2xQ4 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 Distribution +18% +15% •Run-off improved in FY25 at 26% pa, down from peak levels of 28% in FY22 (elevated price competition and cash rate increases) Record pipeline Over $100 billion lodged in FY25Driving consistent book growthGenerating annuity style earnings •Average settlement size +7% to 670k reflecting the continued strength of Australia’s housing market•Represent 1 in 10 Australian mortgages and growing faster than the total Residential market1 Significant scale – represents 1 in 10 Australian mortgages $195B$200B$211B FY23FY24FY25 Residential closing book+6%2 1.Source: Australian Bureau of Statistics: 12% growth for FY252.Long term CAGR since FY21 For personal use only
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11 $4.7k$5.3k$5.8k FY23FY24FY25 Broker services gross margin per AFG broker $13.2B$12.8B$13.8B FY23FY24FY25 AFG Home Loans book •The recent exit of NAB’s Advantedge presents a growth opportunity for AFG Securities. Refresh of Alpha product as a digital bank offering – new options in FY26•White label benefiting from strong growth from 2 new non-bank lenders introduced since June 2022 Diversification provides a broad earnings platformDiversified 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 •Leasing & Asset Finance are key growth areas, supported by Fintelligence acquisition. •Partner Connect program connects brokers with spot & refer partners to accelerate the take-up of additional product classes •BrokerEngine subscribers increased 28% to 3.7k subscribers. This includes 3.0k AFG brokers, representing a take-up rate of 50% of users•Higher take-up of additional services including Marketing, Compliance and PI insurance +8% 1.AFG Home Loans includes AFG funded AFG Securities as well as white label funded products2.Includes Commercial mortgages, Commercial leasing, Consumer asset finance, Personal loans, Insurance AFG Home Loans1has returned to growthTake-up of BrokerEngine Plus driving $2m increase in Broker Services GPProviding the platform and training for brokers to diversify2 Distribution White label complements higher margin AFG SecuritiesPersonal loansCommercial Leasing Commercial mortgages $5bn ▲14%New products coming soon $3.5bn ▲9% settlements (AFG and Fintelligence) Consumer Asset Insurance referrals 58% of brokers write more than 1 product class For personal use only
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12 -0.5%1.0%1.5%2.0%2.5%3.0%3.5% FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25 NIM % $1.3B $2.7B $1.6B$1.6B $2.7B FY21FY22FY23FY24FY25 AFG Securities2 Settlements AFG Securities growing volume & improving NIM 1.Based on market share of AFG broker residential volumes2.AFG Securities refers to AFG funded products as a subset of AFG Home Loans. White Label products with a range of funding partners are also included in AFG Home Loans3.32% ownership of Thinktank, a Commercial and Residential non-bank lender Settlements up 65% - in line with record high•Non-bank market share1 increased to 11.6% (FY24: 9.6%)•AFG Securities at 4.3% market share1. Highest result since FY22 which benefitted from abnormal funding market. Strong Q4 provides momentum into FY26•Cost to income ratio improved in FY25 to 54% (FY24: 62%). Significant increase in volumes, but importantly investment in processes and technology delivered cost efficiencies while maintaining service levels Cost of funds (less cash rate) Net interest margin Rate to Customer (less cash rate) 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. +65% Net interest margin up•Net interest margin (NIM) of 116bps (FY24: 113bps). •H2 FY25 NIM of 119bps with BBSW moving lower ahead of anticipated cash rate cuts. Normalised H2 FY25 NIM of 115bps compared to H1 FY25 of 113bps•Cost of funds improved with warehouse renewals and RMBS margins lowerInvestment in Thinktank3 (32%): Thinktank contribution of $2.6m, up $0.5m. •Book increased 17% to $6.8 billion•NIM benefiting from similar thematics as AFG Securities Manufacturing Price competition Benefit from cost of fund reductions For personal use only
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13 3.4 4.8 4.5 4.4 5.5 FY21FY22FY23FY24FY25 AFG Securities Closing book Sustaining market leading credit quality 1.Arrears (including those in hardship) as greater than 30 days past due 2.LVR = Loan-to-value ratio. All prime loans above 80 LVR are covered by individual Lenders mortgage insurance (LMI) 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 •FY25 run-off improved to 35% (FY24: 38%) •Run-off historically increases in a cash rate reduction cycle•Funded through 4 established warehouses and history of RMBS transactions•$1.2 billion RMBS issued in FY25, including inaugural, private placement •Cumulative losses over 15 years of just $268k, and improving arrears •Expected credit loss (ECL) provision prudently increased to $3.7m (FY24: $3.2m), driven by book growth•Working with our borrowers - hardship is stable at 0.5%, in line with Dec ’24 Manufacturing Consistent book growth in FY25 – reaching $5.5 billionExcellent loss history maintained +23% 1.6%Arrears1 (1.9% at June ’24)+95%Book with no adverse credit 37%Balances below $500k87% LVR below 802 Approx half funded through long-term RMBS For personal use only
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14 Financial updateFY25 RESULTS For personal use only
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15 •Reported NPAT up 21% to $35.0m•Gross profit1 up 12% or $15m with growth in both segments (slide 17)•Underlying operating expenses, up 7% or $6m: •Primarily employee costs ($7m): $3m new growth initiatives & converted technology roles; CPI wage growth ($2m), and $2m bonuses •Focus on managing cost growth through ongoing efficiency initiatives•Non-recurring or notable non-cash operating expenses of $6m:•$2.5m : technology projects ($1m), restructure costs ($0.5m) & make good provision ($1m)•$3.1m D&A predominately related to BrokerEngine Plus•$0.5m ECL provision increase from book growth•Share of profit from associates +$0.7m, includes Thinktank (+$0.5m)•Trail book future value change of $(3.7)m (slide 33) Financial results 1.Gross profit and Other income excluding trail book accounting adjustment2. FY24 Gross profit and Operating expenses adjusted for change in classification3. Reconciliation between Reported NPAT and Underlying NPATA detailed on slide 31 $m FY25FY24VarianceGross profit 1, 2 142.9127.712%Change in trail book future value(3.7)(5.6)33%Operating expenses 2 (96.6)(84.2)(15)%Net finance income3.23.9(18)%Share of profit from associates2.92.231%Profit before tax48.744.011%EBITDA 56.247.419%Reported NPAT 3 35.029.021% Financial metricsUnitsFY25FY24VarianceNet cash from operating activities$m35.938.8(7)%Underlying EPScps15.113.413%Dividends % of Underlying NPATA%6060-Underlying ROE%19179%Net Interest Marginbps1161133%Average FTE#3123043%Underlying Cost to Income 2, 4%59602% •Fully franked final dividend of 5.3cps, record date is 9 September 2025 and payable on 8 October 2025. •FY26 dividend payout ratio between 50% to 70% of adjusted NPAT5. •Provides flexibility for reinvestment when justified by returns, with capital allocation decisions responsive to evolving market conditions 4. Underlying Operating Expenditure less Depreciation & Amortisation costs / (Gross Profit (adjusted for Trail) + Other Income)5.Adjusted NPAT = Underlying NPAT (see slide 31), excluding equity accounted earnings from associates, replacing them with cash dividends received For personal use only
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16 •Represents 81%1 of EBITDA•Growth in broker service fees following investment in platform technologies as well as higher volume across distribution products•Includes 2 completed Broker investments in H2 with 3rd acquisition completed 1 July 2025. •Opex2 increase of $5m including $0.7m conference expenses & higher employee costs Investments delivering growth across segments $68M+10% on FY24$16M-$28M DistributionManufacturingCentral servicesEBITDA FY25 Underlying ROE 15%Underlying ROE 39% +53% on FY24-13% on FY24 •Underlying ROE increased to 15% (FY24: 12%) with efficient growth & capital allocation•Additional $10m net interest margin•$2m higher opex2 from ECL provision and employee costs as volumes lifted. Includes $0.5m non-recurring costs •Underlying CTI improves 8% •Includes various centralised support functions, including Technology, Finance and HR•$1m non-recurring opex increase related to make good provision•$2m underlying opex increase for increase in performance bonuses, CPI increase and technology efficiency initiatives 1.EBITDA excluding Central2.Operating expenses excluding depreciation & amortisation Investments driving growth in volumes, services and earningsStrong book growth, scalable processes & well provisionedInvestment in capability to deliver new growth initiatives For personal use only
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17 Distribution: up 9% across the diversified business model•Residential margin increased $0.4m, with record volumes outpacing growth in payout ratio for upfront commissions•Diversified products margin up 17% including AFG Home Loans trail book growth, up 8%, increase in technology fees and other product commission•Asset finance aggregation driven by higher broker payouts affected by an acceleration in FY25•Subscription income increased by 13% due to continued growth in take-up of BrokerEngine and additional broker services•Other income includes higher sponsorship income which offsets conference expenses Diversification accelerating earnings growth 1.Gross profit and Other income excluding trail book accounting adjustment. Central gross profit includes inter-segment commission eliminations2.Retained % = (1- Payout ratio %) 3.Diversified product commissions includes white label, commercial and personal loans4.Includes Marketing, Compliance, Professional Indemnity insurance & Fintelligence Ambition $m (unless otherwise stated)FY25FY24Var $Var %Gross profit1 142.9127.715.212%Distribution113.3104.48.99%Residential upfront14.513.31.210%Settlements ($bn)63.555.28.315%Retained2 (%) 3.8%4.0%(0.2%)(4%)Residential trail17.718.5(0.8)(4)%Average book ($bn)205.0196.58.54%Retained2 (%) 5.3%5.8%(0.5%)(9%)Diversified products3 40.234.45.817%Asset finance aggregation12.513.8(1.3)(9%)Subscription income4 21.018.72.313%Other income7.35.81.526%Manufacturing29.522.66.930%AFG Securities NIM58.147.710.422%AFG Securities average book ($bn)5.04.20.819%NIM (bps)11611333%AFG Securities commission(25.0)(23.1)(1.9)(8)%AFG Securities settlements ($bn)2.71.61.165%Other fees / costs(3.6)(2.0)(1.6)(78)% Manufacturing: up 30% on the back of book growth•+$9m from a higher average book size of $5.0bn across FY25•+$1m NIM increased in FY25, benefitting from timing of BBSW reducing in advance of expected cash rate reduction• -$2m for other costs increase attributable to higher volumes such as settlement related costs including valuation fees and legal costs For personal use only
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18 Investments generating growth in H2, up 25%Capital investment contributing to higher H2 FY25Annualised earnings Fintelligence•Brought forward increasing ownership to 100%+$1m BrokerServices•Recent technology investment delivering new functionality of core broker technology including BrokerEngine Plus+$1mSubscription income BrokerInvestments•$6m invested in 2 broker groups in December 2024. Further investment announced in July 2025+$0.7m - $1.0mAcquired earnings (2 groups) AFG Securities•Book growth to $5.5 billion which is supported by $35m invested in subordinated notes •Run-off increases during cash rate reduction cycle, and needs to be managed+$5m - $6mNet interest margin(from higher book) Capital invested has accelerated earnings in H2, with an annualised contribution of an additional $12 million EBITDA $24.2m$23.2m$24.9m $31.3m H1 FY24H2 FY24H1 FY25H2 FY25 EBITDA+26% For personal use only
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19 •Unrestricted cash provides flexibility in a dynamic environment•Trail book net asset is a significant source of embedded value•Strategic investments are carried at cost, and not reflective of market value •Strategic investments are regularly reviewed for return adequacy, with RoC at 17%1 •Our strategy enables invested capital growth where returns are compelling •Strong balance sheet risk settings and predictable cash generating model provides funding optionality•Prudent liquidity settings provide flexibility to respond to macroeconomic conditions •Trail commissions provide highly predictable and actuarily proven earnings •Highly integrated broker services generate repeatable cashflows •Cyclical NII provides leverage to positive cash rate and volume trends Our strong financial position provides capacity to invest where returns are compelling Liquidity and high performing investments $64m unrestricted cash$87m trail net asset$49m strategic investments Cash generation : predictable and diversified cash flows $24m pa trail book $21msubscription income pa$58mNet interest income (NII) Capacity to fund growth $12mnet cash90% cash conversion Headroom to target gearing 1.Return on capital excluding Thinktank investment For personal use only
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20 Capital allocation frameworkfocused on maximising long term value and shareholder returns Long term value creationShare price appreciationCash returns Strategic fitEPS accretionValuation multiples, IRRReturn on Capital Optionality Shareholder Portfolio Investment Disciplined capital allocation delivering sustained shareholder valueFocused reinvestment to capture growth opportunities, with capital allocation guided by 4 principlesContinuous review / recycle capital Allocate capital to strategically aligned assets, delivering returns above internal hurdle rates (Return on capital > WACC) Preserve balance sheet strengthMaintain financial capacity to execute on attractive opportunities and respond to a changing environment, while minimising the cost of capital Deliver predictable earnings growth Drive earnings growth through margin expansion, efficiency gains, and new capital to AFGS book growth and Broker Investments Deploy surplus capital to shareholdersPrioritise reinvestment for long-term growth and return surplus capital when compelling growth opportunities are limited 1 2 3 4 For personal use only
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21 OutlookFY25 RESULTS For personal use only
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221.Source ABS – Mean value of dwellings March 20252.Implied target set from the National Housing Accord 1%2%3%4%5%201420152016201720182019202020212022202320242025 Funding costs3 A-Rated Funding costs (less cash rate)Cash rateSource: RBA 6%9% (5%) - 5% 10% 15% Jun-21Dec-21Jun-22Dec-22Jun-23Dec-23Jun-24Dec-24 Annual credit growth HousingCommercial Robust foundation for further market growthWith cash rate reductions improving market confidence & activityNon-bank funding costs currently decreasing in the cash reduction cycle Source: ABS 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 Remains belowlong term average Housing credit growth continues into 2025 Lack of supply impacting house affordability – house prices rising 4% pa1 50100150200250300 FY17FY19FY21FY23FY25 Buildings commenced construction Source: ABS Supply remains below target2 3. Using A rated funding costs to represent the debt securities market – the main funding source of non-bank lenders For personal use only
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23 22.3k Sep20Mar21Sep21Mar22Sep22Mar23Sep23Mar24Sep24 Brokers in Australia 3.4k1.9k 2.3k 1.5k 20172024 Bank branch numbers Major citiesRegional Brokers are increasingly integral to the market Brokers are the most important channel for lenders Source: APRA 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. 41% of branches closed (300+ pa) •While some lenders invest in their digital direct channel, brokers form the dominant channel Consumers value the broker channel – providing competition & choice •Average mortgage sizes are increasing, while cost of living pressure remains – brokers achieve an average 0.35% rate reduction1 Brokers needs are evolving, and industry consolidation expected to continue 1.Deloitte 2025 Value of Mortgage and Finance Brokering report2.Consumer Data Right Source: MFAA •AFG has the balance sheet position to continue to invest in the broker proposition to meet evolving needs – extending our advantage for growth focused brokers Increasing demand 0%20%40%60%80% CybersecurityCreditassessmentGen AICDR Proportion Brokers using key technology1 Source: Deloitte With further opportunities for brokers to utilise technology Delivered through technology 2 For personal use only
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24 Record start to FY26 volumes * Comparison of July lodgements 36% 14% 26% 27% 9%15% July 2025 change on July 2024 20% Distribution•Residential lodgements up 25% on July 2024, with settlements also being a record high, up 15%oGrowth across all statesoWA growth was highest, but also strong in NSW & VIC, the largest markets•AFG Home Loans lodgements down 9% on July 2024 with lower white label volumes Manufacturing•AFG Securities lodgements up 15% on July 2024 Market conditions continuing to support Residential mortgage market growth.July 2025 was AFG’s highest Residential lodgement month on record with over $10 billion. For personal use only
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25 Residential settlement growthNumber of equity broker investments15%3 8% CAGR35 Broker service income mix1 Underlying cost to income20%59%30%<50% AFG Securities book sizeAFG Securities NIM$5.5bn116bps$9bn120bps Medium term outlookPositioned to deliver against our strategyOur history of innovation leveraging technology and disciplined capital allocation supports earnings growth and shareholder returns. Remaining responsive to evolving market conditions 1.As a percentage of Distribution underlying gross profit Provide market leading technology MeasureCurrentFY29 Aspiration STRATEGIC PILLAR 3Deliver higher margin through our distribution network STRATEGIC PILLAR 2 Provide market leading technology proposition STRATEGIC PILLAR 1Grow our broker network For personal use only
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26 AFG positioned to capture growth opportunitiesCash rate reductionsStrong labour marketPopulation growth Credit growth acceleratingFalling non-bank funding costsConstrained housing supply 31 years experience - Australia’s first aggregator, with a lending businessProducts & services that deepen broker loyalty & network growthGood return on capital investedStrong leadership & balance sheet Value creation MacroSector Evolving industryAFG difference Favourable market conditions, with external factors to monitorEnvironment for revenue growth, but shaped by policy settings Industry consolidation (broker, aggregator, lender)Lender dependence on brokers as branches closeTechnology investment to meet evolving needsEmerging trends favour large integrated aggregators given investments requiredProven execution provides resilience through market cycles For personal use only
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27 AppendicesFY25 RESULTS For personal use only
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28 David Bailey, CEO23 years A fairer financial future being delivered by an experienced executive team Lisa Bevan, COO27 years Luca Pietropiccolo, CFO3 years Sam McCready, CDO20 yearsDom Di Gori, Exec GM Consumer lending25 yearsThem Lam, Head of Sales & Distribution24 yearsYears denotes the years of finance industry experience For personal use only
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29 Settlements and Loan Book 1.Is a subset of AFG Home Loans (AFGHL)2.Includes Fintelligence settlements as well as AFG broker settlements Settlements ($m)FY25 FY24FY23FY25 v FY24FY25 v FY23Residential63,46455,18153,63015%18%AFGHL4,3943,5643,60423%22%White Label 1 1,6871,9272,023(12%)(17%)AFG Securities 1 2,7071,6371,58165%71%Commercial 5,0594,4533,78314%34%Leasing and Asset finance 23,4643,1712,6119%33%Loan BookResidential210,505200,478194,5465%8%AFGHL13,79512,80813,1508%5%White Label 1 8,3158,3668,675(1%)(4%)AFG Securities 1 5,4804,4424,47523%22%Commercial14,75613,23411,94212%24% For personal use only
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30 Key metrics 1.Average for reporting period2.Total Operating Expenditure less Depreciation & Amortisation costs / (Gross Profit (adjusted for Trail) + Other Income)3.Adjustment between Net interest income and commission cost of sales $m (unless otherwise stated)Units2H251H252H242H25 v 1H252H25 v 2H24Operating incomeDistribution454.9479.6383.7(5)%18%Manufacturing169.0161.3142.25%19%Central (14.0)(15.3)(11.7)8%(20)%Total 609.9625.6514.2(3)%19%ProfitabilityTrail Book Net Asset86.889.590.6(3%)(4%)Residential Upfront Payout Ratio%96.196.396.10.2%-NIM bps1191131115%7%Operating CostsEmployee Costs28.127.924.4(1)%(13)%IT 5.14.66.4(11)%20%Total Operating Costs49.147.640.2(3%)(22)%Average FTE1 #3023253067%1%Underlying Cost to Income Ratio2%5663587%2%Credit QualityTotal Losses0.00.00.0OtherBrokers#4,2494,1104,0393%5%Underlying ROE%22.015.918.138%22%Net interest income adjustment3 8.58.37.82%9% Key movements•Distribution operating income up 18% on H2 FY24, with record residential volumes, as well as growth in diversified products•Manufacturing operating income up 5% on H1 FY25, with closing book up 10% to $5.5 billion and higher NIM benefiting from anticipated cash rate reductions•Total Operating Costs up $1.5m compared to H1 FY25 however is lower excluding $1.4m increase in D&A, and $1.5m one off costs for make good provision & staff restructure costs•Underlying cost to income (CTI) ratio improved to 56% in H2 FY25 compared to 63% in H1 For personal use only
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31 Key movements•The trail commission adjustment represents the non-cash change in the carrying value of the trailing commissions contract assets and liability. Additional information in relation to trail book accounting and key assumptions are provided on slide 33•The net change in fair value of the put / call liability for Fintelligence represents the movement following the acquisition of the remaining equity•Tax adjustment in FY24 related to Fintelligence / BrokerEngine•Increase in lease make good provision and staff restructure expenses were one off expenses incurred in FY25 Reported NPAT to Underlying NPATA reconciliation $m FY25FY24FY25 v FY24Reported NPAT35.029.06.0Amortisation of acquired intangible assets2.42.4-Trail commission adjustment2.63.9(1.3)Net change in fair value put/call option(0.3)-(0.3)One off non-recurring expenses1.1-1.1Deferred tax adjustment on put/call revaluation-0.8(0.8)Underlying NPATA40.836.14.7 For personal use only
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32 $m Jun 2025Jun 2024VarianceUnrestricted cash63.767.4(3.7)Debt facility (51.7)(46.7)(5.0)Net unrestricted cash12.020.7(8.7)Trail book 86.890.6(3.7)Investments 48.639.78.9Subordinated notes34.939.3(4.3)Net unrestricted cash, trail book & investments182.4190.2(7.9) Cash reconciliationUnrestricted cash63.767.4(3.7)Restricted cash (Securities)160.1154.25.9Total cash 223.8221.62.2 Key movements•Net unrestricted cash of $12m, down from $21m at June 2024•Trail book net asset at $86.8m with the reduction representing slightly elevated run-off assumption. Key assumptions are provided on slide 33•Investments are valued at carrying value as per the balance sheet and include broker investments in FY25•Subordinated notes value relates to the notes held by AFG in the Securities loan book which is $5.5bn at June 2025 AFG holds $182m in liquid assetsand high performing investments For personal use only
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33 -20406080100120 FY22FY23FY24FY25 Millions ($) Key movements•Trailing commissions are received from lenders on settled loans over the life of the loan based on the outstanding loan book balance•The net present value of our future trail commissions, represent recurring income, without having to perform further services•Future trail commissions had a NPV of $86.8m at June 2025 ($90.6m at June 2024)•The valuation is assessed on a six-monthly basis, with movements in valuation recorded in the P&L•The main valuation driver are run-off rates and volumes. Run-off in FY25 below peak 2022 level, but remains above the long-term historical average•The discount rate applied to each tranche is applied across the life of the loan. Any current movements in the discount rates willonly affect the latest trail commission tranche•The discount rate is calculated as the risk-free rate + counterparty risk factor Trail book assetThe table below outlines key assumptions used to value trail commissions The chart below shows the change in the net trail book asset over time 1.Discount rates once set are not adjusted during the life of the loan. The spread in discount rate captures loans settled in previous as well as the current financial year2.The percentage paid to brokers is set at the time of settlement of the loan Key AssumptionsJun 2025Jun 2024Average loan life Between 3.6 and 4.2 yearsBetween 3.5 and 4.3 yearsDiscount rate per annum1 Between 4.0% and 13.5%Between 4.0% and 13.5%Percentage paid to brokers2 Between 85% and 96.1%Between 85% to 95.9% For personal use only
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34 Key movements•Unrestricted cash, which consists of cash at bank and short term deposits, of $64m•Restricted cash, which primarily represents amounts held in special purpose securitised trusts and series on behalf of the warehouse funders and the bondholders increased to $160m with a growing loan book•Contract Assets primarily represents our trail book commission asset and is partially offset by the trail book commission liability recorded in Trade and Other payables.•Loans and advances represents the AFG Securities program, with the debt facility represented in Interest bearing liabilities•Growth in investment in associates as this includes new minority broker groups investments in FY25•Non-interest bearing liabilities included the Fintelligence put / call option at June 2024 Summary Balance Sheet$m Jun 2025Jun 2024VarianceAssetsUnrestricted cash63.767.4(3.7)Restricted cash160.1154.25.9Trade and other receivables15.213.02.2Other assets 4.55.4(0.9)Contract assets1,176.21,137.338.9Loans and advances5,493.74,452.41,041.3Investment in associates48.639.78.9Goodwill 61.161.1-Intangible assets44.446.8(2.4)Total assets7,067.55,977.31,090.2LiabilitiesTrade and other payables1,186.31,148.737.6Interest bearing liabilities5,612.94,565.31,047.6Employee benefits7.56.80.7Non interest bearing liabilities-11.8(11.8)Deferred tax liability23.224.4(1.2)Other liabilities15.513.22.3Total liabilities 6,845.45,770.21,075.2Net assets 222.1207.115.0EquityShare capital 102.1102.1-Reserves 8.9(4.6)13.5Retained earnings111.196.914.2Non controlling interest-12.7(12.7)Total equity 222.1207.115.0 For personal use only
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35 6% 31% 28% 15% 20% Loan Balance <$250k$250k - $500k$500k - $750k$750k - $1m>$1m 24% 25%27% 11%10%3% VICNSWQLDWASAACT/TAS/NT Geographic distribution 53%34% 12%1%LVR LVR <70%LVR 70%-80%LVR 80%-90%LVR >90% AFG Securities – Loan quality For personal use only
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36 Important DisclaimerThis 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 this presentation is not a recommendation or advice about shares in AFG (or any other financial product or service). It is not intended to influence or be relied upon by any person in making a decision in relation to AFG shares (or any other financial product).This presentation does not take into account the objectives, financial situation or needs of any particular investor. You should consider your own objectives, financial situation and needs when considering this presentation and seek independent investment, legal, tax, accounting or such other advice as you find appropriate before making any financial or investment decision.This presentation contains some forward-looking statements. Such statements only reflect views held by AFG as at the date of this presentation and are subject to certain risks, uncertainties and assumptions. Actual events and results may vary from the events or results expressed or implied in these statements. You should not place undue reliance on any of these statements.No representation or warranty is made in respect of the accuracy or completeness of any information in this presentation, or the likelihood of any of the forward-looking statements in the presentation being fulfilled.For further information visit: www.afgonline.com.au or contact:Alison ClarkeHead of Corporate Communications+61 402 781 367 For personal use only