Ann: AVG 2021 AGM Addresses & Presentation, page-6

Since we are discussing the impacts of FX movements particularly currency pair of GBP/AUD, where AVG has most of it exposure (130 million of annual sales), would like to refer everyone to page 58 of the latest 2021 annual report.

It states that a 10% reduction in the AUD will lead to 4.7 mill increase in profits for the pair GBP. Against the EURO pair almost a mill in currency gain.

However, when you look at the forward contracts entered into the average forward hedge rate against the pound is 53cents of which 23 mill is within 12 months and 15 million from 12 - 24 months. The current exchange rate against the pound is 0.5289 taking this from Bloomberg. In other words currently, the forwards are “in the money” as the AUD is trading lower than the forward rates, although it is a minimal gain.

So from a currency perspective, the current spot rate against the pound unless the AUD weakens further isn’t likely to produce much of a currency gain on revaluations