Ann: HUM 3Q21 business update, page-12

How far have we come in 9mths based on this update; only negative seems to be the card spend holding back revenue growth ........ but it will when travel is allowed as FLT might be the only retailer left by then.

• Transaction volumes FY2020 of $2.5 billion across continuing products in FY20, up 16% on FY19
Rev 3rd Qtr 20/21 $662.3 x 4 = $2.648B as a run rate; small but margins supposedly continue to improve in general.
• Record transaction volume for BNPL segment in March 2021 of $100.8m, with 3Q21 volume of $255.3m, up 33.0% on pcp
• Commercial and Leasing volume of $142.2m, up 61.7% on pcp
• Cards (Australia and New Zealand) volume of $264.8m, down 26.5% on pcp although spend
returning to key volume categories. This has to be basically all about no travel spend - it will come though as the pent up demand grows daily. More merchants 1,111 and greater digital penetration 303.9 app downloads in 3rd Qtr

• Net losses FY20 across all products of 4.1%, a 10bps improvement on FY19 which was 4.2%. Now they tell us its 3.1% thats a material saving and what about the overlay provision.
• Improved net loss (gross write offs net of recoveries) of $18.7m, down 31.4% on Qtr 3 19/20

• FY20 Cash NPAT $29m Cash NPAT included a macro overlay provision of $31m (post tax) relating to the projected
impact of economic conditions due to the COVID-19 pandemic
• Cash NPAT before this provision $60m - are they using this nos to base FY20/21 or the $29m when they say FY20/21 will be lower. Would be great if its the $60m, plus ............ what of the $31m do they no longer need and can write back to profit.
NPAT might be lower but not by much considering what is implied in these points.

• Total hummgroup customers of 2.7m as at 31 March 2021, up 40.0% on pcp. Interest free instalment customers 2.1 million Trans-Tasman 23/6/20 update) - more and more people appear to be providing positive feedback on Humm in particular.

• Market launch into the United Kingdom on track for this financial year
• Appointment of Canada Country Head, Mr Tim Moulton, and launch in 1H22 - has plenty of experience and was aligned with Mastercard through Brim Financial.

End result for me - I have bought more rightly or wrongly !
AA cannot be that wrong and now RJ - your turn its your strategy.