Pepper Money : CY2021 Annual Report

Appendix 4E 2021

For personal use only

Appendix 4E

Company details

Name of entity:	Pepper Money Limited (formerly Pepper Group Pty Limited)
ACN:	094 317 665
ABN:	55 094 317 665
Reporting period:	For the year ended 31	December 2021 (the 'year')
Prior comparative period:	For the year ended 31	December 2020

Results for announcement to the market

All comparisons to year ended 31 December 2020:

				$M
Net interest income from continuing operations	Up	4.1%	to	366.6
Total operating income from continuing operations	Up	17.8%	to	375.8
Net profit after income tax from continuing operations	Up	31.5%	to	130.7

Dividends

The Directors have approved a final dividend in respect of the financial year ended 31 December 2021 of 9 cents per ordinary share which will be paid on 14 April 2022 to shareholders on the share register as at 15 March 2022.

No interim dividend in respect of the year ended 31 December 2021 was paid or declared (31 December 2020: $Nil).

	2021	2021
	Amount per security	Franked amount per security
Final dividend	9 cents	9 cents
Interim dividend	Nil	Nil

Net tangible assets per ordinary share

Net tangible assets per ordinary share is calculated using tangible assets and the number of shares on issue at the reporting date.

	31 December	31 December
	2021	2020
	$	$
Net tangible assets per ordinary share	1.29	2.56

Explanation of results

A reference in this Appendix 4E to the 'Group' is a reference to Pepper Money Limited and its controlled entities.

This information should be read in conjunction with the consolidated financial statements for the year ended

31 December 2020 and with any public announcements made in the period by the Group in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the Australian Securities Exchange ('ASX') Listing Rules.

i

Pepper Money

Following a corporate restructure, which completed on 31 March 2021 (the 'Restructure'), Pepper Money Limited listed on the ASX effective 25 May 2021, and is 60.59% owned by Pepper Group ANZ Holdco Limited ('Holdco'). Holdco is independently a wholly-owned subsidiary of Pepper Global Topco Limited ('Topco'). As part of the Restructure, all Pepper Group businesses outside of Australia and New Zealand ('ANZ') were sold to other subsidiaries of Topco.

onlyAdditional information supporting the Appendix 4E disclosure requirements can be found in the Director's report and the financial statements for the period.

Pro-forma earnings from continuing operations

To reflect the Group's Pro-forma earnings the net profit after tax ('NPAT') has been adjusted to separate one-off items associated with the Initial Public Offering ('IPO'). Management believe the disclosure of the Pro-forma NPAT provides additional insight into the underlying performance for the period, by excluding one-off,non-recurring items.

The following table reconciles the Group's statutory NPAT to the unaudited Pro-forma NPAT for the year in accordance with Australian Accounting Standards ('AASB').

		Year ended
		31 December	31 December
		2021	2020
		$M	$M
	Statutory NPAT	130.7	99.4
use	-	(0.8)
personal	Standalone costs
Redundancy and other restructuring	-	3.0
Employee remuneration plans	(0.2)	(3.0)
Public company costs	(0.2)	(1.8)
Corporate debt costs	7.9	12.4
Offer costs	8.6	0.1
Tax impact of adjustments	(4.9)	(3.0)
Pro-forma NPAT	141.9	106.3

Details of entities over which control has been gained or lost during the year

Refer to Note 16(E) for further details.

Details of associate investments and joint venture entities

The Group did not have any associates or joint venture entities during the year.

Foreign entities

The financial information presented for foreign entities which are consolidated is presented in accordance with AASB.

ForResults commentary

Commentary on the results for the year is contained in the press release accompanying this statement and the Operating and Financial Review contained within the Annual Report.

Audit

This report is based on the financial report audited by Deloitte Touche Tohmatsu.

Michael Culhane

Chair

Sydney, 24 February 2022

ii

For personal use only

Annual Report 2021

Pepper Money

onlyContents

Highlights

Chair's Letter

Board of Directors

useCEO's Letter Executive Team

Operating and Financial Review Directors' Report Remuneration Report

personalConsolidated Financial Statements Directors' Declaration Independent Auditor's Report Shareholder Information Glossary of Terms

Corporate Directory

For

ifc

3

6

9

12

16

32

38

69

138

139

142

145

149

Highlights

Listed 25 May 2021

Pepper Money is one of Australia and New Zealand's largest non-bank lenders and our mission is to help people succeed.

Helping customers succeed

288,900

Customers now helped by Pepper Money1

Record originations

$8.5bn

Our People	Recognised by
Engagement	our Partners
+80	Lender
	Non-bank of the Year
	& Best Specialist
Top 10% of
high preforming
companies globally

Diversity F|M - 53|47

Annual Report 2021

personal use only

Australia's largest electric		Supporting our communities
vehicle lender		Assisting families by funding properties
Facilitating more than 3,800 tonnes		that have saved 27% in CO2 emissions
reduction of greenhouse gas emissions		through our Green Bond program

Record results		Record NPAT
AUM		Pro-forma
$17.0bn 13% YoY	$141.9m 34%
Lending AUM up 19% to $15.8bn
Total Operating income		Statutory
$375.8m	18%	$130.7m	31%

For

Investing in Pepper Money

New platforms & processes

ISO27001 compliant

Digital tools supporting record volumes PPS and Pepper Resolve.

Funding - supporting growth

Funding capacity

$9.9bn

up 31%

Deep and diversified investor base, with over 100 local and offshore

Strong dividend yield

5.5%

annualised2

1. Cumulative customers helped from 2014 to 31 December 2021.
2. Dividend yield based on average share price from time of IPO to year end (25 May - 31 December 2021).

1