Pepper Money : Annual General Meeting - Address and Presentation

ASX Announcement

28 April 2022

Pepper Money (ASX:PPM)

Pepper Money Limited Annual General Meeting - Address and Presentation

Attached are the following documents to be presented at the Company's Annual General Meeting being held today:

• • Address from the Chair, Mr Michael Culhane;

• • Address from the CEO, Mr Mario Rehayem;

• • AGM Presentation Slides; and

• • Proxies received on each resolution.

The annoucement has been authorised for release by the Company Secretary.

For further information:

Company Secretary

John Williams

Pepper Money Limited T: [phone]

ENDS

About Pepper Money

Pepper Money is one of Australia and New Zealand's leading non-bank lenders. It was established in 2000 as a specialist residential home loan lender in Australia with a focus on providing innovative home loan solutions to customers that were being underserved by traditional lenders. Pepper Money today has a broad product offering of residential home loans, asset finance commercial real estate and novated leases in Australia and residential home loans in New Zealand. For more information visithttps://www.pepper.com.au

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ASX Release

28 April 2022

Pepper Money Limited

Chair Address

And

Chief Executive Officer's Update Annual General Meeting

Thursday 28 April 2022, at 2.00pm

CHAIR'S ADDRESS TO SHAREHOLDERS

It is my pleasure to speak to you today about the achievements of Pepper Money in calendar year 2021.

Despite the challenging circumstances of the past 18 months, our team has delivered strong results in our first-year listing on the ASX.

Pepper Money's purpose is to "help people succeed" and we look to put our customers at the heart of everything we do. We believe it is that focus which helps distinguish us from our competitors.

During 2021 we helped a further 59,780 customers with their financing needs bringing the total number of customers Pepper Money has helped to more than 288,900 from 2014 to the end of 2021.

This result sets, sets us up well to meet our target of helping 500,000 customers by the end of calendar year 2023.

Importantly, we were able to deliver this customer growth while maintaining our industry leading turn-around times and our customer satisfaction ratings. Pepper Money leads the market when compared to banks and non-banks for customer satisfaction with 69% of our home loan customers, and 4 out of 5 of our asset finance and personal loan customers, highly satisfied.

2021 also saw the Company continue to grow our distribution footprint and we now have over 18,000 accredited brokers in our mortgage business and 2,092 accredited distribution partners in our asset finance business.

The growth in calendar year 2021 saw us achieve record originations of $8.5 billion dollars for calendar year 2021 with our highest ever annual total originations for both Mortgages and Asset Finance.

These combined achievements resulted in a strong financial result for the year and saw Pepper Money deliver Pro-forma Net Profit After Tax of $141.9 million dollars. This result was a 34% increase on the prior comparable period and exceeded our IPO forecast by $21.2 million, or 18%.

Given the strength of these results your Board was pleased to announce a full year dividend to shareholders of 9 cents a share, which was at the top end of the range we disclosed in our Prospectus.

The recently announced deal to acquire a majority stake in Stratton Finance will give us an additional platform to drive originations growth in the coming years. Mario will provide more detail about the Stratton opportunity in his CEO Update.

We continue to strengthen our Environmental, Social and Governance Framework to provide a quantifiable guide for our people and stakeholders on the standards we seek to uphold. Pepper Money has built strong foundations of supporting the community, embedding good corporate governance, and lending responsibly to our customers.

Our Green Bond program, our market leading position in Pepper Money Electric Vehicle lending, and our community out-reach programs which we support via our Pepper Giving initiative are just part of the way that we seek to have a positive impact on our key stakeholders and the environment.

Diversity and inclusion has always been part of Pepper Money's DNA and I am proud of how our diversity and inclusion strategy is supported by our guiding principles of Allyship, Celebrate, & Educate. These principles and our commitment to diversity and inclusion translates directly into our employee profile as demonstrated by our workforce as at 31 December 2021:

• • our team is 53% female, 47% male;

• • 18% of our employees identify as part of the LGBTQIA+ community;

• • they come from 24 cultures and speak 57 languages; and

• • they practice 22 different religions.

Before I conclude, I would like to take this opportunity to thank my fellow Directors for their support over the last twelve months. I have very much enjoyed working with them in our first year since listing and appreciate the diverse skills and insights each of them brings to our deliberations. As a Board we believe that we have a good mix of skills and experience to set the strategy for the business, and to assist management to deliver on that strategy.

I look forward to collaborating with each of them over the rest of calendar year 2022 and beyond.

As you know from our Notice of Meeting, I am standing for re-election today along with my fellow Director, Justine Turnbull, who is also the Chair of our Remuneration and Nomination Committee. I will ask Justine to say a few words when we come to the formal part of the meeting.

I would also like to thank Mario, his Executive team and all of our employees across Australia, New Zealand and the Philippines who have contributed to the success that the Company has achieved over the last 12 months, particularly in light of the challenges presented by the COVID-19 pandemic. It is through our people first and foremost that we are able to deliver on our strategy.

Finally, I would also like to thank you our shareholders, for investing in Pepper Money and continuing to support the growth we have seen in 2021. We appreciate your support and look forward to delivering on our strategy.

I will now hand over to Mario, CEO, to give his address.

CEO UPDATE: MARIO REHAYEM

Thank you, Mike and good afternoon to everyone joining us today.

I would also like to acknowledge the Traditional Owners of the lands from where we are joining this webcast today, and pay my respects to Elders past, present and emerging.

It is hard to believe that the business has not yet celebrated its first anniversary of listing on the ASX - given all that has been achieved since then, particularly given the challenges we have all faced from global pandemic to the recent extreme rains, resulting in floods. To our partners and customers who have been impacted by these events know we stand to support you.

Today I am very pleased to report on Pepper Money's strong performance across all metrics in calendar year 2021 and the team's delivery of our results.

As you have heard me say, at Pepper Money our mission is simple - it's to help people succeed.

We focus on creating financial inclusion, by challenging the way loans are designed and distributed.

We focus on customers of all walks of life including the underserved and undervalued - those customers that traditional banks do not best serve.

Our values provide the guide to how we do business and how we interact with our customers, stakeholders, and each other.

The strength of Pepper Money's calendar year 2021 financial results is down to our ability to deliver on our strategy.

Through our ongoing focus on helping the underserved customer we continue to seek ways to deliver a better experience for our partners and their customers. We do this through our purpose-built technology platform and digital tools, and our ability to leverage data to manage credit risk and identify business opportunities, all supported by our diverse sources of funding supporting our growth.

In calendar year 2021 we continued to deliver on our strategy which has supported our ability to drive profitable growth.

Key highlights for calendar year 2021 include:

• • Pepper Money welcomed 59,780 new customers - a growth of 48% on 2020; and

• • in line with our commitment to help the underserved, 50% of new customers were self-employed and small business owners;

• • Mortgage originations of $6.4 billion a growth of 89% on the prior comparable period - or PCP - and Asset Finance originations of $2.1 billion a growth of 70% on PCP:

  • o the investment made in technology for scaled growth has enabled us to deliver record originations across all our products;

  • o in a period of intense competitive activity and record low interest rates our Mortgage business in Australia delivered 2.6 times systems growth in the second half of calendar year 2021 following our strong first half systems growth of 2.3 times; and.