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WWW.SOLVAR.COM.AU 1 19 June 2025 Scott Baldwin (Managing Director & CEO) Siva Subramani (CFO) Investor Presentation Macquarie Emerging Leaders Conference For personal use only
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WWW.SOLVAR.COM.AU 2 Building a BIGGER & BETTER SOLVAR Purpose Growth Focus To empower people through accessible, responsible, and flexible financial products To provide finance to under served markets overlooked by traditional lenders Organic growth in Money3 and AFS has returned after a period of review and software harmonization The launch of a new commercial business unit will drive Group origination growth Sustainable growth through an expanded product offering, leveraging the Group’s distribution networks Funding cost improvement through more efficient warehouse structures and term funding arrangements Continued assessment and execution of strategic acquisitions, including a stake in Earlypay, expanding Solvar’s commercial reach and strengthening its commercial portfolio. These moves support our focus on scalable growth opportunities WWW.SOLVAR.COM.AU For personal use only
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WWW.SOLVAR.COM.AU 3 Contents Product overview Bennji commercial Distribution channels Performance history Regulatory update Financials Outlook 4 5 6 7 8 9 13 WWW.SOLVAR.COM.AU For personal use only
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WWW.SOLVAR.COM.AU 4 House of Brands WWW.SOLVAR.COM.AU Product Secured & unsecured consumer loans, typically over 24-60 months Consumer and commercial secured lending, typically over 48 – 72 months Secured commercial asset finance Loan Size $2,000 - $100,000 $5,000 - $130,000 $20,000 - $500,000 Target Customer Consumers seeking access to used vehicles for basic transport needs Consumers seeking to upgrade their car, buy a lifestyle asset or a restored vehicle Commercial customers seeking a ute for business purposes Small & medium business owners looking to purchase an asset for business use Typical Loan Purpose Used car loans, personal loans for holiday, car repairs, medical & dental To buy a new or used car, horse float, caravan or camper trailer To buy a light or heavy commercial vehicle, yellow goods, or equipment Loan Book / Size of Addressable Market Loan Book: ~$626m ⁴ Addressable Market: ~$37b ¹ Predicted CAGR – 5.5% per annum Loan Book: ~$207m ⁴ Addressable Market: ~$83b ² Predicted CAGR – 7% Loan Book: ~$100k ⁴ Addressable Market: ~$22b ³ Predicted CAGR – 4.7% 1. Money3 addressable market & CAGR state - Australia Used Car Financing Market Size, Share, Report 2025-2034 2. AFS addressable market & CAGR (converted from USD to AUD)- Australian Automotive Financing Market Size, Share And Forecast 3. Bennji addressable market & CAGR - https://www.expertmarketresearch.com.au/reports/australia-commercial-vehicle-market 4. Loan book values are as of 31 May 2025 Product Overview For personal use only
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WWW.SOLVAR.COM.AU 5 Purpose-Built for Small to Medium Business Bennji is designed for small business. Offering fast approvals, flexible deal structures, frictionless settlements, and a focus on assets overlooked by traditional commercial lenders WWW.SOLVAR.COM.AU Bennji Solvar’s new commercial lending arm Bennji entered the market, settling a 2021 RAM and setting the pace for what’s to come Tech-Enabled, Human-Led It is a modern digital experience backed by real people who understand business needs. A tech- led fresh start, unencumbered by legacy systems, with a digital-first strategy Targeting Underserved Markets Focused on small to medium business owners, tradies, and transport operators seeking funding for utes, vans, light commercial and yellow goods Accelerating Solvar’s Diversification Strategy Bennji expands Solvar’s portfolio further into commercial lending. Unlocking new broker networks, product verticals, and revenue streams. For personal use only
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WWW.SOLVAR.COM.AU 6 WWW.SOLVAR.COM.AU Distribution channels Multiple ways to access the Group’s products 6 Through a network of Brokers covering the whole of Australia Varying levels of relationship between Brokers and the Group exist from full technology integration to simple referral Broker Direct relationship with a small number of key Dealerships that originate loans Dealer Through the revamped AFS website Through partner websites allowing customers to apply for a loan Through several affiliated websites and social media platforms that allows a customer to apply for a loan Direct For personal use only
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WWW.SOLVAR.COM.AU 7 Performance history Australia 114 124 190 172 223 227 216 183 211 0 50 100 150 200 250 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 AUDm 11% CAGR 359 384 417 429 487 540 583 597 628 63459 84 113 137 171 187 194 197 207 359 443 500 543 624 711 769 791 825 841 150 350 550 750 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 Q3 FY25 AUDm M3 AFS 21% CAGR Growing Australian Operations + Long term origination, loan book and income growth + Yield trend is driven by increase in mix of near prime customers in both AFS and M3 + Cost of Funds (COF) increase is driven by base rate movements while funder margin reduced during this period + Australian operations will replace New Zealand contribution in FY26 + Completion of software simplification in AFS paves the way for market share growth in FY26 + The conclusion of Money3 regulatory matters is enabling renewed focus on operations and cost management 54 59 68 70 77 83 89 89 93 0 20 40 60 80 100 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 AUDm 15% CAGR 5.4% 6.9% 7.8% 8.1% 22.5% 18.1% 15.3% 14.5% 27.8% 25.1% 23.1% 22.5% 0% 5% 10% 15% 20% 25% 30% 35% FY22 FY23 FY24 H1 FY25 COF NIM WWW.SOLVAR.COM.AU 7 Loan Book Yield Australia - Lending Income For personal use only
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WWW.SOLVAR.COM.AU 8 WWW.SOLVAR.COM.AU Regulatory Update • On 6 February 2025, the trial started in respect to the proceeding against Money3 • The hearing has now completed, and the Court will deliver judgment in the coming months • In March 2024, the Commerce Commission commenced proceedings making allegations that Go Car Finance contravened its responsible lending obligations with respect to certain loans under the Credit Contracts and Consumer Finance Act 2003 (CCCFA) • Go Car Finance denies that it has breached its obligations and is defending the claim – the hearing will take place in August 2026 8 Commerce Commission of New Zealand Australian Securities and Investment Commission (ASIC) For personal use only
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Financials 9 For personal use only
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WWW.SOLVAR.COM.AU Highlights Australia H1 FY25 Results H1 FY25 + Technology simplification in AFS will improve efficiency and broker experience to support growth in originations + Focused on the launch of the Group’s new commercial product offering + Increased Australian leverage allowed Group to repay higher cost debt in New Zealand + Focus on NIM and technology consolidation moderated H1 origination growth in AFS 10 Interest Income1 $93.1m 4.6% increase on pcp Loan Book $824.7m 7.1% increase on pcp Originations $211.4m 2.0% decrease on pcp Bad Debt 4.0% Increase from 3.9% in FY24 NPAT2 (normalised) $15.9m Cash Collections $233.7m 7.9% increase on pcp (annualised) 1 Interest income includes fees & charges, from loan and related products that are integral to the loan and bank interest income 2 After adjusting for legal fees associated with the ongoing legal action, pcp omitted as prior to decision to discontinue GCF For personal use only
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WWW.SOLVAR.COM.AU Debt Structure Funding the Group’s expansion Funding & Capital Management Sustainable and scalable funding Executing strategy • Lowering funder margins • ABS issuance commenced • Funder diversification across warehouse Facilities & Headroom • $280m in available headroom with the capacity to increase limits • Increased facility limits in Jun-25 by ~$50m Equity available to support loan book growth Prudent capital management • Available equity utilised to reduce debt levels • Excess equity deployed in share buyback 11 139 468 280 0 200 400 600 800 1000 Q3 FY25 AUD m ABS Warehouse Headroom 5.3% 4.4% 4.0% 4.0% 0% 1% 2% 3% 4% 5% 6% FY22 FY23 FY24 FY25 84% 73% 71% 72% 0% 20% 40% 60% 80% 100% FY22 FY23 FY24 FY25 Debt Stack Funder Margin Leverage For personal use only
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WWW.SOLVAR.COM.AU 12 WWW.SOLVAR.COM.AU Loan Book Quality Stable bad debts – Stable credit quality (Australia) 4.4% 3.4% 3.9% 4.0% 0% 1% 2% 3% 4% 5% FY22 FY23 FY24 H1 FY25 Bad debts on Loan Book 56.4% 57.6% 56.4% 58.0% 25.8% 23.6% 22.6% 24.9% 14.3% 14.6% 16.4% 13.8% 3% 4% 5% 3% 0.4% 0.1% 0.0% 0.0% FY25 Q3 FY24 FY23 FY22 Strong Good Watch list Sub-standard Credit impaired Stable loss experience despite high inflationary environment Interest rate reduction and contained inflation is expected to reduce bad debts Bad debts are expected to trend down to between 3.0% - 4.0% in the medium term Bad debts trending down Maintaining credit quality through challenging macroeconomic conditions and inflationary environment 82.2% in Strong and Good category - Improved from FY24 (81.2%) Maintaining credit quality 12 For personal use only
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Outlook 13 For personal use only
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WWW.SOLVAR.COM.AU FY25 Outlook Financial Operations Market • Forecast normalised NPAT of $34m • Anticipate paying a final dividend of 6 cents per share • Bennji commercial launch ~ $1m loan book in FY25 – expected to drive a material uplift in FY26 • Completion of ASIC trial with finding expected to be handed down in CY25 • New Zealand run-down progressing as anticipated • The Bennji Commercial product has launched, with volumes growing • AFS Technology simplification is driving efficiency and broker experience – Q3FY25 New Originations up 26% on pcp • Labour market remains tight with low unemployment • Regulatory action driving consolidation in higher credit risk segment • Consumer demand improving post Federal election, extended Easter break and beginning of the rate cutting cycle • Declining used car prices driving affordability 14 “At Solvar, we focus on doing the work that matters; measured growth, disciplined execution, and backing our people to deliver.” — Scott Baldwin, CEO For personal use only
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Thank You! CEO & Managing Director Scott Baldwin +61 3 7031 6019 s.baldwin@solvar.com.au Chief Financial Officer Siva Subramani +61 3 7031 6018 s.subramani@solvar.com.au For personal use only
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WWW.SOLVAR.COM.AU 16 New Zealand Portfolio in run off as planned Loan Book Operations Outlook • Loan book repaying as planned • Loan book estimated to be NZD 30-40 million EOFY 2026 • All debt in New Zealand repaid • Funds repatriated to fund expansion of Australian operations • Significant reduction in headcount over FY25 • Operations now managed by Australia- based personnel • Anticipate exit from lease mid 2026 0 50 100 150 200 250 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H2 FY25 • Funds from consolidated operations repatriated to Australia and used in share buy back and funding Bennji growth. • Anticipate full exit in FY27 WWW.SOLVAR.COM.AU 16 NZDm For personal use only
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WWW.SOLVAR.COM.AU 17 Glossary of Terms A$ or $ - Australian dollars Active customer - A customer with an outstanding balance ASIC – Australian Securities and Investment Commission AFCA – Australian Financial Complaints Authority AFIA – Australian Finance Industry Association AFS – Automotive Financial Services business unit ARCA – Australian Retail Credit Association AU - Australia CAGR – Compound Annual Growth Rate ComCom – Commerce Commission of New Zealand DPS – Dividend Per Share EPS – Earnings Per Share EBITDA – Earnings Before Interest Tax Depreciation and Amortisation FSCL – NZ Financial Services Complaints Limited GCF – Go Car Finance business unit GM – General Manager HEM – Household Expenditure Measure H1 – Results relating to the first half of the financial year, July - December H2 – Results relating to the second half of the financial year, January – June Loan Book – Gross written loans, as defined in section 6, of the annual accounts M3 - Money3 business unit NED – Non-Executive Director NPAT – Net Profit After Tax NIM – Net Interest Margin NAF – Net Amount Financed: The amount of credit advanced to a customer in respect to their loan NTA – Net Tangible Assets NZ$ - New Zealand dollars NZ – New Zealand PCP – Prior Corresponding Period: A comparison of the results for the same period during the previous reported period, typically the previous financial year TMD – Target Market Determination RBA – Reserve Bank of Australia RBNZ – Reserve Bank of New Zealand RoE – Return on Equity YoY – Year on Year comparison of performance WWW.SOLVAR.COM.AU 17 For personal use only
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WWW.SOLVAR.COM.AU 18 18 The content of this presentation has been prepared by Solvar Limited (the Company) for general information purposes only. Any information included in this presentation on future financial performance, including industry sectors, income, profit and employment types, represent estimates of management. These views are inherently uncertain and Solvar takes no responsibility for the accuracy of such views. Any recommendations given are general and do not take into account your personal circumstances and therefore are not to be taken as a recommendation or advice to you. You should decide whether to contact your financial adviser so a full and complete analysis can be made in respect to your personal situation. Whilst all care has been taken compiling this presentation neither the Company nor any of its related parties, employees or directors give any warranty with respect to the information provided or accept any liability to any person who relies on it. Disclaimer WWW.SOLVAR.COM.AU 18 For personal use only