Announcement PDF Half Year Results Presentation 6 months to 31 December 2024 Presentation Outline Item Presenter Pages HY25 Highlights David Bailey 4–7 Market & operations update David Bailey 8 – 15 Financial update Luca Pietropiccolo 16 – 21 Outlook David Bailey 22 – 25 Q&A Appendices 2 AFG 30 years delivering innovative solutions in the finance industry Scale in the finance industry $863B 75% 4,100 1 in 10 550k Settlements p.a. in the Australian Finance market1 of Residential mortgages now through the broker channel2 AFG Brokers across Australia3 Residential mortgages in Australia written by an AFG Broker4 Borrowers supported each year by AFG brokers Diversified business model Distribution (82%)5 Broker platform that connects lenders to borrowers Residential Mortgages Diversified Products $205B $13B vH1 FY24 vH1 FY24 4% Trail book 4% AFG Home Loans trail book Manufacturing (18%)5 Offering financial products for borrowers 3.8 vH1 FY24 8% Number of services per broker Market leading broker technology 1. Source: ABS – Settlement volumes per annum Residential and Commercial 2. Source: MFAA – Broker market share of Australian Residential mortgages 3. Brokers across AFG and Fintelligence (Asset finance) aggregation | AFG Securities Thinktank6 $5.1B $6.4B Asset Finance Broker Services $1.8B vH1 FY24 12% Settlements Experienced management vH1 FY24 vH1 FY24 23% Residential mortgage Loan book | 16% Loan book Strong balance sheet 4. Source: AFG & ABS – AFG brokers write 1 in 10 Australian Residential mortgages 5. Percentage of Gross profit and Other income excluding trail book accounting adjustment 6. 32% ownership in Thinktank, a Residential & Commercial non-bank lender HY25 RESULTS HY25 Highlights AFG highlights – HY25 Dividend yield 5% Underlying ROE 16% Investments & liquid assets $185m A broader platform for earnings growth – recent investments add up to $7m annualised EBITDA from H2 FY25 • Record settlements & lodgements in Residential and AFG Securities – a strong start to 2025 Record number of brokers & volumes • Established correlation between cash rate reductions & credit demand • Brokers and AFG are well placed to gain share in this growing market • 8% growth in Distribution earnings – our lightest capital segment, with ROE of (39%) Distribution earnings continue to grow • Equity investments in 2 broker groups, new proposition supports broker ambitions and delivers new earnings • Increased ownership in Fintelligence to 100%, allowing for new growth options • Recent strategic investments to deliver $5m - $7m annualised EBITDA from H2 FY25 (slide 20) Strategic execution & capital allocation • Manufacturing well positioned for growth, with record loan book size, improving NIM & no losses • Strong balance sheet, with history of successful capital allocation 5 Delivering on our strategic pillars Strengthening the business through purposeful capital allocation 2 1 Grow our broker network +7% Net increase in broker numbers, 1 in 6 Australian broker is an AFG broker 3 Provide market leading broker technology proposition +1.5 hours BrokerEngine Plus delivering 35% productivity improvement for our brokers and NPS of >50 +13% 46% Residential settlement growth, with 61% of volume with major banks AFG brokers subscribing to BrokerEngine Plus, up from 34% H1 FY24 Deliver higher margin through our distribution network +$1b AFG Securities loan book grew to record $5.1bn, up 23% 2.5x AFG Securities settlement growth to $1.4bn, up from $0.6bn in H1 FY24 6 AFG financial highlights – HY25 Distribution earnings up 8% - our largest and highest returning segment Manufacturing earnings set for growth, with improving NIM and record book size Revenue $626m Annuity style earnings +11% Gross profit1 70% $69m +5% Quality cash flow and strong balance sheet Profit before tax $22.3m Diversified income streams +4% Investments and liquid assets $185m Distribution $28.9m +8% +13% residential settlements +$1m broker subscriptions -$1m higher amortisation 1. Gross profit and Other income excluding trail book accounting adjustment EBITDA $24.6m +3% NPAT $15.3m +6% Cash realisation Unrestricted cash Manufacturing Central services % 80 $8.4m $55m $(15.0)m -3% -18% +$2m net interest margin -$2.2m employee cost for new growth initiatives -$0.9m Thinktank contribution +$0.8m reduction in other opex 7 HY25 RESULTS Market & Operations update Industry trends supporting AFG broker growth Brokers are the preferred channel1 growing towards 80%... …with consolidation towards large broker groups3… …underpinning AFG’s growth to record high +3% 67% 69% 72% +7% 75% 3.4k 59% 55% 61% 18% 19% 20% 1H21 1H22 1H23 1H24 1H25 • Customer driven demand, with brokers providing competition and choice • Efficiently delivering over 100k customers to banks p.a., with over 2,000 branches closed since 20182 1. Source: MFAA, Australian Market Dec 2024 2. Source: APRA 2024 Points of Presence Statistics Mar-23 Large +7% Mid-Size 3.7k 3.9k 4.1k 3.1k 3.1k 3.1k 3.2k 3.2k 3.3k 1H21 1H22 1H23 1H24 1H25 27% Mar-24 Small • Technology, strong governance and access to capital are enablers for successful large brokerages AFG Fintelligence • Recent recruitment including several large organisations will contribute ~$2bn settlements p.a. • Our market leading service proposition is a competitive advantage 3. Source: MFAA, Industry Insights Service Report 18. Large groups 6 or more brokers, Small 2 or less brokers 9 Distribution Residential mortgage activity at record level Backed by sustained growth in customer demand for broker, with our technology enabling more efficient brokers Record settlements in H1 FY25 20+ years of consistent book growth +13% • Growth in broker numbers and improving broker efficiency supported by our investment in technology +4% $32b $28b $28b $189b $197b Total settlement volume up 13% to $32 billion $205b • Higher average loan sizes as property prices grow, and mix moves towards new purchase from refinance Closing trail book up 4% to $205 billion • Providing stable & predictable annuity style earnings for future years • Improving runoff in H1 FY25 (27%), below peak (28% at H1 FY22) but still above the long term average Broker payout ratio • Increased 0.3% to 96.3% in H1 FY25 reflecting market trend towards larger broker groups 1H23 1H24 1H25 1H23 1H24 1H25 10 Distribution Business model delivering higher earnings Product diversification provides value to brokers, and generates annuity style Distribution earnings Distribution earnings1 up 5% AFG Underlying Gross Profit ($k per broker p.a.) Continued growth through services & diversified products +4% 42 • Residential: Stable earnings supported by annuity style trail income. 37 36 • Diversified products2: Brokers increasingly adopting wider range of products beyond residential – enabled by technology • Broker services: Higher take up of subscription services. Our capital investment in BrokerEngine Plus platform will boost this in H2 29 29 28 Manufacturing earnings1 up 9% Returned to growth with a record $5.1bn book Broker services CAGR 13% • H1 FY24 decrease driven by lower NIM • Securities book is up 23% compared to December 2023 1H23 1H24 1H25 • Improving NIM with H1 FY25 exit NIM of 114bps (109bps at June 2024) Residential Broker Services Diversified products2 1. Gross profit and Other income excluding trail book accounting adjustment. Manufacturing earnings exclude contribution from investment in Thinktank 2. Diversified products include all products outside of traditional Residential mortgage aggregation margin such as Commercial, White Label, Asset finance, Manufacturing, and fee income Manufacturing 11 Distribution With growing demand for diversified products AFG provides platform & services for brokers to diversify into new products to meet customer needs, driving gross profit up 9% Higher margin white label proposition… …as well as a wide range of products… AFG Home Loans White Label Settlements 880m Brokers writing more than one product Commercial mortgages $2.6bn +8% 1,267m 1H24 Insurance referrals New product partners being identified 54% 950m Commercial Leasing 1H23 1H25 …resulting in increasing broker utilisation Consumer Consumer asset Asset finance finance 56% 58% Personal loans $1.8bn settlements (AFG and Fintelligence) Dec-20 Dec-22 Dec-24 • Supported by 5 white label lenders, including introducing 2 new lenders since Jun 2022 • Leasing & Asset Finance are key growth areas supported by Fintelligence • More brokers are expanding their offering beyond only Residential specialists – particularly larger groups • $8bn white label loan book delivering annuity style earnings • Pipeline of new products for our brokers to cater to evolving customers needs • 58% of brokers now write multiple products, enabled by our investment in technology 12 Distribution Increasing adoption of our value add broker services 78% of brokers take up an additional service along with an increasing take up of our BrokerEngine Plus platform BrokerEngine Subscribers Subscription income1 per broker up 9% to $6k p.a. 3.3k Driven by increased take-up of services 2.5k Platform technology fees - BrokerEngine Plus 2.0k • BrokerEngine Plus, our recent technology investment to provide direct lodgement (first in market) 1.2k Includes 700 nonAFG users • 46% of AFG users are currently using BrokerEngine Plus, up from 34% last year, with higher revenue per user compared to Flex • Enhanced functionality will contribute an additional $1m gross profit p.a. from H2 FY25 and will continue to grow the user base 1H22 1H23 Additional services Broker subscription service take-up • Investing to improve existing services including our marketing service Platform technology • Continuing to develop new value add broker services BrokerEngine Plus 1H24 HY23 1H25 HY24 HY25 34% 46% Additional services 1. Total fees include Platform technology, additional services, as well as other one off fees Marketing services 47% 47% 44% Compliance 61% 63% 64% 13 Manufacturing Billions ($) AFG Securities record settlement growth Volume growth as non-bank market conditions improve AFGS Settlements 2.0 • Non-bank market share1 increased to 10.5% up from 8.2% at Dec 2022 2.5x • Lodgements in Q2 and early CY25 creates a strong H2 settlement pipeline 1.5 4% market share1 in Q2 FY25 1.0 • Scale efficiencies of $2m delivered through investment in process and loan origination platform - maintaining service levels with higher volumes 0.5 Net interest margin improving 1H21 1H22 1H23 1H24 • NIM: H1 FY25 113bps (+2bps on H2 FY24) while improving is expected to remain well below previous historical average of 133bps 1H25 • Cost of funds improved, 3 warehouses renewed at a lower cost. 2025 nonconforming term deal upsized and well supported NIM % 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% Rate to Customer (less cash rate) Cost of funds (less cash rate) Net interest margin Investment in Thinktank3 (32%) • Loan book grew to record $6.4bn from $5.8bn at June 2024 and $0.8bn at time of AFG’s original investment in 2018 • Contribution from Thinktank was $0.4m, 73% below H1 FY24. Result is similarly affected by lower NIM but should benefit from changes in the cash rate cycle 0.5% HY15 HY16 HY17 HY18 HY19 HY20 HY21 HY22 HY23 HY24 HY25 1. Based on market share of AFG brokers Residential volumes 2. AFG Securities refers to AFG funded products within AFG Home Loans. White Label products with a range of funding partners are also included in AFG Home Loans 3. 32% ownership of Thinktank, a Commercial and Residential non-bank lender 14 Manufacturing Growing book, while maintaining credit quality AFGS Closing Book Our deep experience, processes and policies deliver sustained industry leading credit quality +23% 5.1 4.9 4.1 4.0 3.0 Record book growth while maintaining strong portfolio mix • Runoff in H1 FY25 of 36.6%, well below peak of 42.3% in H1 FY24 • 76% of the book are prime mortgages • 38% of balances are below $500k and 89% have an LVR1 below 80% • All prime loans originated above 80% LVR require individual LMI2 1H21 1H22 1H23 1H24 1H25 44 Arrears 90+ Days Arrears 90+ Days Arrears 90+ Days 4 Well provisioned with continued excellent loss performance 2.1% 2.1% 2.1% • Established credit assessment process and insights from 30 years 1.5% 1.5% • Cumulative losses over 15 years of just $268k • Loss provision increased $0.2m to $3.5m because of book growth • Average offset balance of $38k per customer, in line with June 2024 1.5% 1.5% 1.5% 1.3% 0.8% 0.8% 0.8% 0.8% • Arrears3 improved to 1.6% at December 2024, from 1.9% June 2024 AFG 1 Non-Bank 2 33 AFG (Dec-23) AFG Non-Bank (Dec-24) Non-Bank 1 Non-Bank 2Non-Bank Non-Bank 1. LVR = Loan-to-value ratio 2. LMI = Lenders mortgage insurance 3. Arrears as greater than 30 days past due 4. Data sourced from most recent publicly disclosed financial reports, as at 31 December 2024; Arrears calculated as 90 days past due as a percentage of total credit exposure 15 HY25 RESULTS Financial update Financial results $m HY25 HY24 Variance Gross profit 1 69.2 66.2 4% Change in trail book future value (1.1) (2.0) (46)% Operating expenses (48.5) (45.2) 7% Net finance income 2.2 2.2 - Share of profit from associates 0.5 1.3 (65)% Profit before tax 22.3 22.6 (1)% • Amortisation +$1.0m relating to technology projects Reported EBITDA 24.6 23.9 3% • Wages +$3.5m primarily technology roles converted from consultants, new growth initiatives & sales teams Reported NPAT 2 15.3 14.4 6% • Reported NPAT of $15.3m, up 6% • Gross profit1 up $3m or 4%: • Manufacturing +$1.1m through record book growth • Distribution +$2.6m, services income & diversified products • Thinktank down $0.9m to $0.4m, affected by lower NIM • Operating expenses $3.3m higher: • Lower consultancy costs $0.7m and IT expense $0.5m Financial metrics Units HY25 HY24 Variance • Change in trail book future value of $(1.1)m (slide 33) Net cash from operating activities $m 13.5 14.3 (6)% • Fully franked interim dividend of 3.8cps, record date is 7 March 2025 and payable on 9 April 2025 Underlying EPS cps 6.2 6.6 (6)% Dividends % of Underlying NPATA % 60 60 - Temporary reduction in dividend payout ratio to 50% to 60% expires at end of FY25 Underlying ROE % 16 18 (2) Net Interest Margin bps 113 116 (3) Average FTE 3 # 325 301 8% Underlying Cost to Income 4 % 64 63 (1) • 1. Gross profit and Other income excluding trail book accounting adjustment 2. Reconciliation between Reported NPAT and Underlying NPATA detailed on slide 31 3. Average for reporting period 4. Total Operating Expenditure less Depreciation & Amortisation costs / (Gross Profit (adjusted for Trail) + Other Income) 17 Investments underpin Distribution growth, with AFG Securities book growth and improving NIM Distribution Manufacturing Central services Profit before tax (PBT) HY25 $29 M +8% on HY24 Underlying ROE 39% • Represents 78%1 of PBT – in line with FY24 • Growth in broker service fees following investment in platform technology • Future growth expected from strategic investments & innovation • Opex increase of $1.8m reflects amortisation and higher employee expenses Investments delivering earnings growth in broker service fees 1. Profit before tax excluding Central $8 M -3% on HY24 -$15 M -18% on HY24 Underlying ROE 12% • Underlying ROE of 12%. Improving NIM is an opportunity to increase this • Book has grown to a record $5.1bn – AFG Securities gross profit $1m higher • Flat operating expenses including $2m lower cost through efficiency improvement • Includes various centralised cost support functions, including Technology, Finance and HR • $2m increase employee expenses in additional capability across areas such as technology and supporting new growth initiatives • $0.9m lower Thinktank investment earnings Strong book growth, improving NIM while maintaining credit quality Investment in capability to deliver new initiatives 18 Distribution represents 82% of gross profit Subscription income delivered 12% growth Distribution: up 5% with growth in volumes and subscriptions • • • • • Residential margin down $0.2m overall with higher settlements and trail book offset by higher payout ratios impacting margin Diversified products margin up $1.6m including AFG Home Loans trail book growth, up 4% to $13.1bn Asset finance aggregation down $0.4m with settlement growth offset by higher broker payout Subscription income increased by 12% as driven by continued increasing take-up of BrokerEngine and additional broker services Other income affected by timing of sponsorship income which is offset by conference expenses Manufacturing: Strong book growth, with NIM improving • Higher average book size of $5.1bn impact +$3.0m • Lower NIM rate at 113bps for H1 FY25, impact -$0.6m • Other costs increase attributable to settlement related costs including valuation fees and legal costs 1. Gross profit and Other income excluding trail book accounting adjustment. Central gross profit includes inter-segment commission eliminations 2. Retained % = (1- Payout ratio %) $m (unless otherwise stated) HY25 HY24 Var $ Var % Gross profit1 69.2 66.2 2.9 4% Distribution 56.5 53.9 2.6 5% Residential upfront 7.1 6.9 0.2 2% Settlements ($bn) 31.8 28.2 2.7 13% Retained2 (%) 3.7% 4.0% (0.3%) (7%) Residential trail 9.0 9.4 (0.4) (4%) Average book ($bn) 202.2 195.5 6.6 3% Retained2 (%) 5.5% 5.9% (0.5%) (8%) Diversified products3 19.6 18.0 1.6 9% Asset finance aggregation 6.6 7.0 (0.4) (5%) Subscription income4 10.1 9.0 1.1 12% Other income 4.1 3.5 0.6 18% Manufacturing 13.0 11.9 1.1 9% AFG Securities NIM 26.8 24.4 2.4 10% AFG Securities average book ($bn) 4.8 4.2 0.5 13% NIM (bps) 113 116 (3.0) (3%) AFG Securities commission (12.2) (11.7) (0.5) 4% AFG Securities settlements ($bn) 1.4 0.6 0.9 147% Other fees / costs (1.7) (0.9) (0.8) 94% 3. Diversified product commissions includes white label, commercial and personal loans 4. Includes Technology, Marketing, Compliance, Professional Indemnity insurance & Fintelligence Ambition 19 Purposefully allocating capital to progress strategic priorities Recent investments and industry outlook support new earnings from H2 FY25 up to $7m annualised EBITDA Current investment • $11m invested - increased ownership to 100% from December 2024 Annualised EBITDA +$1.0 - 1.5m Fintelligence Distribution • Continued growth in settlements, but margin pressure across the market Increased ownership • Recent technology investment delivers new functionality, with more coming +$0.8 - 1.0m • Increased broker efficiency delivering greater BrokerEngine Plus penetration BrokerEngine Plus new features • $6m invested – minority equity positions in 2 broker groups in December 2024 +$0.7 - 1.0m Broker services Broker Investments • Pipeline of opportunities in H2 FY25 & beyond Manufacturing • $39m invested in subordinated notes to support book growth Acquired earnings +$3 - 4m AFG Securities • Higher book at December at $5.1bn (H1 FY25 average of $4.8bn) From higher book 20 Strong financial position to grow shareholder returns Well capitalised balance sheet and high cash generating assets create the capacity to fund growth Preserving liquidity History of consistent cash generation Delivering returns on equity and long term value Cash & restricted cash Strong cash flow generation $57m capital invested2 30 200 25 Millions ($) Millions ($) 150 100 50 20 15 10 5 - 1H24 Cash Unrestricted 2H24 1H25 1H24 2H24 1H25 Technology projects BrokerEngine Cash Restricted • $55m unrestricted and $116m restricted cash (AFGS Trusts). Debt facility of $54m primarily for Fintelligence acquisition • Intra-month working capital cycle reduces unrestricted cash by up to c$30m per month Fintelligence Broker Investments • 80% cash conversion, impacted by timing of payments. Cash conversion is 99% since Jun 23 • $28m technology investment. Includes BrokerEngine Plus, data and digital trust • Dividend payout ratio policy of 70-80%. Temporary reduction to 50% to 60%1 • $29m related to acquisitions. HY25 includes $11m for remaining equity in Fintelligence, as well as $6m for initial 2 Broker Investments 1. Announced as part of FY23 results, for up to 24 months to support increased investment, which peaked in FY24 2. From July 2022 to December 2024 21 HY25 RESULTS Outlook Market conditions supporting our strategy Change in the cash rate cycle has historically supported both Distribution volumes and Manufacturing margin Importance of the broker channel to banks continues to increase Mortgage volumes are increasing and benefit from change in the cash rate cycle Funding used by non-banks historically lower in a rate reduction cycle Annual Credit Growth Funding Costs1 Bank branch numbers (k) 4.3 4.0 Continuing reduction 3.6 3.4 5% 15% Increasing Housing credit growth in 2024 10% 4% 3% Moving below long term average 2% 5% 1% Source: APRA 1. Using A rated funding costs to represent the debt securities market – the main funding source of non-bank lenders Source: ABS Cash rate A-Rated Funding Costs (less cash rate) Jan-24 Jan-23 Jan-22 Jan-21 Jan-20 Jan-19 Jan-18 Jan-17 Jan-16 Jan-15 Dec-24 Jun-24 Dec-23 Commercial - Jan-14 Housing Jun-23 (5%) Dec-22 FY24 Jun-22 FY23 Dec-21 FY22 Jun-21 FY21 Dec-20 - Source: RBA 23 Medium term outlook Competition & choice for brokers, customers & lenders Our strong history of innovation and effective capital allocation positions us to deliver earnings growth and shareholder returns Strategic Pillar Grow our broker network Provide market leading technology Deliver higher margin through our Distribution 1. As a percentage of Distribution underlying gross profit Measure Current FY29 Aspiration Residential settlement growth 13% 8% CAGR Number of equity broker investments 2 35 Broker service income mix1 20% 30% Underlying cost to income 70% <50% AFG Securities book size $5.1bn $9bn AFG Securities NIM 114bps 120bps 24 Strategically positioned to deliver earnings growth Growth strategy based on 3 strategic pillars Delivering earnings growth, with improving market conditions Credit market conditions improving Expected sustained growth in credit activity supporting all segments Grow our broker network Provide market leading technology Deliver higher margin through Distribution Broker is a critical channel, 75% share growing to over 80% AFG will continue to add brokers, grow share & earnings per broker Record AFGS loan book, with growth expected to continue Higher book size contributing between $3m to $4m EBITDA p.a. Continued investment in portfolio, diversifying earnings Recent investments adding between $2m to $3m EBITDA p.a. To deliver our purpose: Fairer financial future for all 25 HY25 RESULTS Appendices A fairer financial future being delivered by an experienced executive team David Bailey, CEO Lisa Bevan, COO Luca Pietropiccolo, CFO 21 years 26 years 2 years Sam McCready, CDO Damian Percy, GM Securitisation Them Lam, Head of Sales & Distribution 22 years 23 years 19 years Finance industry experience 27 Continuing momentum in H2 FY25 Strong growth in volumes across Residential mortgages, as well as for AFG Securities through growing broker numbers and market conditions Comparison of January lodgements January 2025 change on January 2024 Distribution • Residential lodgements up 26% on January 2024 with record high settlements • Growth across all states • WA & QLD recording highest growth • VIC volumes have returned to strong growth • AFG Home Loans lodgements down 7% on January 2024 25% 38% 21% 23% Manufacturing * • AFG Securities lodgements up 26% on January 2024 and settlements 31% higher than January 2024 14% 7% 26% 28 Settlements and Loan Book Settlements ($m) 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 Residential 31,840 26,981 28,200 18% 13% AFGHL 2,388 2,102 1,462 14% 63% White Label 1 950 1,046 881 (9%) 8% AFG Securities 1 1,437 1,055 582 36% 147% Commercial 2,568 2,064 2,389 24% 7% Thinktank 96 72 61 34% 57% Leasing and Asset finance 2 1,758 1,596 1,575 10% 12% Residential 204,848 200,478 196,547 2% 4% AFGHL 13,142 12,808 12,600 3% 4% White Label 1 8,082 8,366 8,491 (3%) (5%) AFG Securities 1 5,059 4,442 4,109 14% 23% Commercial 14,177 13,234 12,778 7% 11% Loan Book 1. Is a subset of AFG Home Loans (AFGHL) 2. Includes Fintelligence settlements as well as AFG broker settlements 29 Key metrics 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 Distribution 479.6 383.7 429.5 25% 12% Key movements Manufacturing 161.3 142.2 141.6 13% 14% • $m (unless otherwise stated) Units Operating income Distribution operating income up 25% on H2 FY24, driven by increased Residential Settlements and loan book size Central (15.3) (11.7) (8.7) 30% 76% Total 625.6 514.2 562.4 22% 11% • Manufacturing operating income up 14% on H1 FY25, due to an increased book size to $5.1bn Trail Book Net Asset 89.5 90.6 94.2 (1%) (5%) • Total Operating Costs up 8% on H1 FY24, due to increase employee costs for investment in technology and new strategic initiatives, as well as increased amortisation in H1 FY25 • • Underlying cost to income (CTI) ratio was 2% higher on H1 FY24 at 64% Dividend of 3.8 cents per share represents a yield of 4.9% in H1 FY25 Profitability Residential Upfront Payout Ratio % 96.3 96.1 96.0 0.2% 0.3% NIM bps 113 111 116 2% (2%) Employee Costs 27.9 24.4 24.3 14% 15% IT 4.6 6.4 5.0 (28%) (8%) Total Operating Costs 48.6 40.9 45.2 19% 8% Operating Costs Average FTE1 # 325 306 301 6% 8% Underlying Cost to Income Ratio2 % 64 59 63 8% 2% 0.0 0.0 0.0 Credit Quality Total Losses Other Brokers # 4,110 4,039 3,850 2% 7% Underlying ROE % 15.9 18.1 17.6 (12%) (10%) Dividend Yield3 % 4.7 5.8 4.9 (19%) (4%) 1. Average for reporting period 2. Total Operating Expenditure less Depreciation & Amortisation costs / (Gross Profit (adjusted for Trail) + Other Income) 3. Based on share price as at 21 February 2025, 30 June 2024, 23 February 2024 30 Reported NPAT to Underlying NPATA reconciliation Key movements $m HY25 HY24 HY25 v HY24 • Reported NPAT 15.3 14.4 0.9 Amortisation of acquired intangible assets 1.2 1.2 - Trail commission adjustment 0.7 1.4 (0.7) Net change in fair value put/call option (0.3) - (0.3) - 0.9 (0.9) 16.9 17.9 (1.0) • • 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 during the half Deferred tax adjustment on put/call revaluation Underlying NPATA Tax adjustment in H1 FY24 related to Fintelligence / BrokerEngine 31 AFG holds $185m in liquid assets and high performing investments Key movements $m • Net unrestricted cash of $11m, down from $17m at December 2023 • Trail book net asset at $89.5m with the reduction representing recent elevated runoff. Key assumptions are provided on slide 33 • Investments are valued at carrying value as per the balance sheet • Subordinated notes value relates to the notes held by AFG in the Securities loan book which is $5.1bn at December 2024 Dec 2024 Dec 2023 Variance Unrestricted cash 54.8 65.9 (11.1) Debt facility (44.3) (49.2) 5.9 Net unrestricted cash 10.6 16.7 (6.1) Trail book 89.5 94.2 (4.7) Investments 46.2 38.8 7.4 Subordinated notes 38.8 37.5 1.3 Net unrestricted cash, trail book & investments 185.1 187.2 (2.1) Unrestricted cash 54.8 65.9 (11.1) Restricted cash (Securities) 115.7 144.7 (29.0) Total cash 170.5 210.6 (40.2) Cash reconciliation 32 Trail book asset The table below outlines key assumptions used to value trail commissions Key movements Key Assumptions Dec 2024 Dec 2023 • Trailing commissions are received from lenders on settled loans over the life of the loan based on the outstanding loan book balance Average loan life Between 3.6 and 4.2 years Between 3.5 and 4.4 years Discount rate per annum1 Between 4.0% and 13.5% Between 4.0% and 13.5% Percentage paid to brokers2 Between 85% and 96.0% Between 85% to 95.7% • 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 $89.5m at Dec 2024 ($90.6m at Jun 2024) The chart below shows the change in the net trail book asset over time • The valuation is assessed on a six-monthly basis, with movements in valuation recorded in the P&L • The main valuation drivers are run-off rates and new business. While run-off in H1 FY25 was above the long-term average, it was below the peak levels in FY22 and FY23 • The discount rate is calculated as the risk-free rate + counterparty risk factor 100 Millions ($) • The discount rate applied to each tranche is applied across the life of the loan. Any current movements in the discount rates will only affect the latest trail commission tranche 120 80 60 40 20 0 1H22 1H23 1. Discount rates once set are not adjusted during the life of the loa