Announcement PDF 1H25 Investor Presentation ASX HMY David Stevens CEO and Managing Director Simon Ward CFO All values are in $AUD unless stated otherwise HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 1 Contents 1. 1H25 Highlights & profit guidance 2. About us 3. Financial results 4. Outlook Appendix HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 2 1H25 Highlights & Profit guidance HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 3 1H25 Highlights vs 1H24 (pcp) $2.0m Statutory NPAT Achieved $2.0m statutory profit for the half, up from $0.6m loss. $2.3m Cash NPAT 350% increase driven by operating performance improvements and increasing scale. 6th consecutive positive Cash NPAT half. 13% Cash RoE Well on track for achieving 20% cash return on equity run-rate in 2H25. Lending & book growth Stellare® 2.0 propelled +43% Australian new customer lending growth, driving +4% loan book growth. 9% Portfolio NIM Sustained 1H25 new lending NIM of 10% drove 1H25 total loan book NIM to 9%, back within our 9%-10% target range. Low credit losses Credit losses reduced to 3.7% from 4.2%, and 90+ day arrears remain low at 64bps. 18% Cost to income Automation and increasing scale continue to drive efficiency gains. Capacity for growth Total warehouse capacity over $900m, $21m in unrestricted cash, plus $7.5m in undrawn corporate debt. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 4 FY25 Guidance and FY26 Target FY24 Actual FY25 Guidance FY26 Target Cash NPAT $0.7m $5m $10m+ Cash ROE 2% 20% run-rate in 2H25 13% achieved in 1H25 25%+ FY25 Guidance: $5m Cash NPAT FY26 Target: Accelerated growth ● Stellare® 2.0 rollout completed across both countries, setting up for significant growth in FY26 and beyond ● Stellare® 2.0 helping more prime applicants, plus compounding 140% returning customer annuity, to fuel accelerating book growth ● Net interest margin: 9%-10% ● Net interest margin: 9%-10% ● Cash NPAT: $5m ● Cash NPAT: $10m+ ● Cash Return on Equity run-rate in 2H25: 20% ● Cash Return on Equity: 25%+ HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 5 About us HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 6 Fair, simple, personal loan What sets Harmoney apart Loans up to $70,000, average $18,000 Consumer-direct lending, data driven automation ● AU & NZ’s largest 100% consumer-direct online lender ● Market opportunity >$150bn, current market share <1% ● Our algorithms partner with Google’s to attract prime customers at low cost and our great customer experience sees them returning at Personalised pricing 5.7% - 24.99% One establishment fee, no other fees Up to 7 year loan terms near zero cost ● Deep first party data and AI models deliver prime loan book and >5% Secured and unsecured options Risk Adjusted Income1 ● Funded by 3 of the “big 4” Australian banks plus public securitisations ● Stellare® automation drives a low cost to income, 18% in 1H25 ● Cash return on equity 13% in 1H25, targeting 20% run-rate in 2H25 1. Risk adjusted income (RAI) is income after funding costs and incurred credit losses. Disbursals within minutes Typical uses: Debt consolidation, home renovations, cars, weddings and other life events, education and travel. 7 HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 Data + AI  Automation Every month, over 10,000 new customer applications help us improve our AI and automation 2021 & 2023 High volumes of real-time consumer financial data – combined with our 10+ years of historic data – supercharges training of our AI models, helping us optimise for: ● Highly efficient marketing with Google delivering high volumes of desirable customers at low cost. ● Risk Adjusted Income exceeding 5%, through more accurate assessment of customers. Quality, first-party, consumer-direct data (e.g. bank statements, credit file, ID) to fuel our AI models has been a core feature of Harmoney since inception. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 8 The Harmoney business model maximises customer lifetime value Right customer Great experience Massive scale • Build reliable target customer models through AI and high quality first-party consumer data. • First-class customer experience creates annuity revenue as customers return with minimal customer acquisition cost (CAC). • Exploit tech to build scale, speed, and automation to decouple costs from growth. Harmoney already has a market leading 18% cost to income ratio which continues to reduce. • Integrate models with large-scale platforms (e.g. Google, Microsoft Ads, Facebook) for cost-effective customer acquisition. • Highly automated, streamlined and 100% online process. • Utilise direct customer relationships and segment fit to devise and offer new products and services. 140% in subsequent lending New customer 4.8/5 overall rating E.g. Initial loan $20,000 then subsequent borrowing of an additional $28,000, total $48,000 Harmoney Harmoney application loan >58,000 reviews HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 9 Experienced & shareholder aligned leadership team Deep FinTech experience, large shareholdings (Board & Management 30%) and long term incentive share plan. Long term commitment with average tenure 7+ years across the leadership team. David Stevens Chief Executive Officer Simon Ward Chief Financial Officer Brad Hagstrom Chief Operating Officer Richard Wyke Chief Digital Officer Glen MacKellaig Chief Marketing Officer 20+ years of experience in financial services. A highly experienced public company CEO specialising in consumer and commercial finance in Australia and NZ. Previously CEO of ASX listed Humm Group (FlexiGroup). 15+ years of CFO experience and 19+ years experience in financial services across Australia, NZ and Europe. 25+ years of financial services experience across Australia and NZ. Previously Operations Manager of ASX listed Humm Group (Flexigroup). 18+ years of experience in financial services technology and software development in the UK and NZ. 15+ years of experience in financial services digital marketing in Australia, NZ, UK and Canada. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 10 Financial results HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 11 Cash NPAT growth 350% 1H25 1H24 Change Loan book $783m $756m 4% Revenue $64m $60m 7% 9.0% 9.2% 20bps reduction Risk adjusted income 5.3% 5.0% 30bps improvement Acquisition to originations ratio 3.2% 3.3% 10bps improvement Cost to income ratio 1 18% 21% 300bps improvement Statutory NPAT $2.0m $(0.6m) $2.6m Cash NPAT $2.3m $0.5m 350% Net interest income 1. 1H25 new lending >10% To align Cost to income ratio costs with Cash NPAT, and with peer group ratios, non-cash share based payments and depreciation and amortisation costs are now excluded. Cost to income for 1H25 including those costs is 20%, down from 24% pcp. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 12 Stellare 2.0 driving loan book growth and revenue growth Revenue growth of 7% on pcp Revenue growth ● Stellare 2.0 driving a re-acceleration in loan book growth, with the loan book up +4% on pcp. CAGR 26% ● AU loan book up +14% on pcp, now 57% of Group. ● NZ loan book down -6% on pcp, but originations increased +14% on prior half following 2Q25 platform update after government’s repeal of overly prescriptive affordability regulations. ● Revenue grew by $4m to $64m, up +7% on pcp, driven by loan book growth and higher average portfolio interest rate, increasing from 16.1% pcp to 16.8%. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 13 Interest margin up and credit losses down Margin after credit losses 5.3% ● Interest rate on loan book up to 16.8%. ● Funding rate down to 8.1%. ● Loan book NIM back up to 9%, with new lending NIM >10% through the half. ● Credit losses down to 3.7%. ● Risk adjusted margin (after credit losses) up to 5.3%, back within our targeted 5%-6% range. HARMONEY ©2025 1H25 INVESTOR PRESENTATION Margin drivers all positive NIM 9%, Risk adjusted margin 5.3% 20 FEBRUARY 2025 14 Credit performance strengthening Credit losses down 50bps ● Deep consumer-direct data and AI credit models delivering prime loan book. ● Prime portfolio with 72% employed in professional, office or trades roles and 87% aged 30+. ● Credit losses down 50bps from pcp to 3.7%, on improved Australian scorecard implemented in FY22 and continuing low New Zealand losses. Annualised loss rate Low 90+ day arrears 1.49% ●●● Australian Market Avg.* ● Consistently low 90+ day arrears, 0.64% as at 31 December 2024. 0.64% ⎯ Harmoney 1H25 ⎯ Harmoney FY24 *Source: Equifax Australian Consumer Credit Demand Index 2024 Q4, Personal Loan series. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 15 Stellare ® automation powers scalability Scalability drives profitability ● Loan book up +4%, revenue up +7%, while cash operating costs reduced -9%. Cost to income ratio at 18% Cost to income % Loan book $ ● Highly automated Stellare® platform driving further cost to income ratio improvement from 21% to 18%. ● Cash NPAT up +350% to $2.3m, sixth consecutive Cash NPAT profit half. ● Cash return on equity (RoE) 13%, on track for targeted 20% Cash RoE run-rate in 2H25. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 16 Harmoney is capitalised for significant growth without raising any equity Current cash supports $1.2b loan book Reinvested profits fund loan book growth beyond $1.2b Loans available for sale1 Unrestricted Cash Supports 50% growth to $1.2b loan book Undrawn Corp Debt ● Growing profits fund future loan book growth, (i.e. $1m profit funds $25m loan book growth). ● 1H25 profits funded loan book growth maintaining cash reserves. ● Capital efficient with borrowings 96% of loan book. Warehouse Equity Funds current $780m loan book ● Diversified funding from 3 of Australia’s “big-4” banks and an established ABS issuer. 1. Loans available for sale are $3m of receivables available for sale into a warehouse thereby effectively being a cash equivalent. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 17 Outlook HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 18 Every month 10,000 customers apply with Harmoney Stellare 2.0 helps more of them than ever before Australian new originations 1H25 vs 1H24 Stellare 2.0 new decision engine In Stellare® 1.0 an applicant looking for $5,000 was assessed in a similar way to someone looking for $70,000. Stellare® 2.0's advanced algorithms apply the same risk appetite credit policies but with refinement of the unique customer risk profile. We were able to offer For every 10,000 Australians who apply for a loan with Stellare 2.0 1,250 loans in 1H25 90% Increase Stellare 1.0 HARMONEY ©2025 650 loans in 1H24 1H25 INVESTOR PRESENTATION 10,000 people come to Harmoney every month. Stellare® 2.0 supports a wider range of people and loan sizes, resulting in safely making 600 more offers per month in 1H25 than in 1H24. 20 FEBRUARY 2025 19 Strategic Priorities New core platform to drive growth and expand capability to convert on new opportunities Platform Conversion NZ Stellare 2.0 launch AI driven personalisation Retirement of Stellare 1.0 Partner API integration HARMONEY ©2025 1H25 INVESTOR PRESENTATION New opportunities New lending products/features e.g. Increase to $100k max loan 2H25 Partnerships 20 FEBRUARY 2025 Margin Pricing optimisation engine Process automation 20 Market Cap vs Business value Existing loan book value + Business value at 31 December 2024 ● Proprietary, highly automated Stellare® 2.0 customer acquisition and credit assessment engine. Over 10,000 new applicants create an account every month. ● Existing customer base return for 140% in additional lending, at near zero cost. ● Loan book growing at >10% NIM and >5% risk adjusted income (income after funding costs and credit losses). ● Proven scalability with 18% cost to income and falling. ● Diversified funding from 3 of the “big-4” Australian banks and an established asset backed security issuance program. $120m+ $70m+ Risk adjusted income embedded in existing loan book* $51m $50m Market Capitalisation 18 Feb 2025 Net cash & Warehouse Equity HARMONEY ©2025 income and assets embedded * Applies typical repayment experience. Risk adjusted income calculated on contracted repayment schedule is significantly higher. 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 21 FY25 Guidance and FY26 Target FY24 Actual FY25 Guidance FY26 Target Cash NPAT $0.7m $5m $10m+ Cash ROE 2% 20% run-rate in 2H25 13% achieved in 1H25 25%+ FY25 Guidance: $5m Cash NPAT FY26 Target: Accelerated growth ● Stellare® 2.0 rollout completed across both countries, setting up for significant growth in FY26 and beyond ● Stellare® 2.0 helping more prime applicants, plus compounding 140% returning customer annuity, to fuel accelerating book growth ● Net interest margin: 9%-10% ● Net interest margin: 9%-10% ● Cash NPAT: $5m ● Cash NPAT: $10m+ ● Cash Return on Equity run-rate in 2H25: 20% ● Cash Return on Equity: 25%+ HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 22 Join our Investor Hub: harmoney.com.au/invest ● Investor Hub is the best way to stay informed and connected with all things ASX: HMY. ● Comment and ask questions directly to Harmoney’s leadership team and see other investors questions and responses. ● See videos accompanying our ASX announcements, interviews, research reports, and webinars. ● Join our mailing list to receive the latest news and updates from Harmoney by email. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 23 Appendix HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 24 $783m Loan Book Loan purpose HARMONEY ©2025 Employment status Region 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 25 Shareholder composition: 30% management owned plus 10% shareholder aligned long term incentive plan 30% management owned Long term incentive share plan ● Long term incentive share plan 10% of share capital. Post-IPO Investors 32% ● Targets aligned with long term shareholder growth. Substantial shareholders Pre-IPO Investors 38% Founder & management 30% 5% At 31 January 2025 Neil Roberts Founder & Director 18.6% Heartland Bank Ltd Pre-IPO Investors 10.1% Lookman Family Trust Pre-IPO Investors 8.9% Lisa Capital Pty Ltd Pre-IPO Investors 7.9% Trade Me Limited Pre-IPO Investors 7.5% 26 HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 Profit and loss 6 Months ended 6 Months ended 6 Months ended 31 December 2024 30 June 2024 31 December 2023 $'000 $'000 $'000 64,428 61,340 60,323 Interest income Other income 16 808 70 Total income 64,444 62,148 60,393 Interest expense 30,046 29,822 26,026 Incurred credit losses 14,238 15,056 15,643 Risk adjusted income 20,160 17,270 18,724 Customer acquisition expenses 6,199 5,178 5,414 Net operating income 13,961 12,092 13,310 Personnel expenses 5,361 5,728 5,297 Customer servicing expenses 2,777 2,710 3,208 Technology expenses 2,347 2,284 2,670 General and administrative expenses 1,196 1,202 1,629 Cash operating expenses 11,681 11,924 12,804 Income tax (expense) / benefit Cash NPAT ¹ - - - 2,280 168 506 Non-cash adjustments Movement in expected credit loss provision 767 (331) 533 Share based payment expenses (298) (1,374) (114) Depreciation and amortisation expenses (741) (11,060) (1,522) Statutory profit / (loss) after income tax 2,008 (12,597) (597) 2H24 includes a one-off $9.5m impairment of internally developed software, on the launch of Stellare® 2.0, and retirement of Stellare® 1.0, platforms 1 Cash NPAT provides a more accurate representation of the underlying profitability of the business, adjusting for the impact of non-cash items, most significantly the movement in expected credit loss provision, which is a non-cash provision for credit losses that may occur in future financial years from the existing loan book. With GAAP requiring recognition of an expected credit loss provision expense immediately on origination of a new loan, without any indication of loan impairment and significantly ahead of recognition of the interest income priced to compensate for the expected level of credit loss risk, the expected credit loss provision expense will suppress statutory net profit during periods of loan book growth, all other things being equal. HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 27 Key operating and financial metrics 6 Months ended 6 Months ended 6 Months ended 31 December 2024 30 June 2024 31 December 2023 Total originations ($'000) 191,339 161,277 165,932 New customer originations ($'000) 117,179 102,130 93,379 Existing customer originations ($'000) 74,160 59,147 72,553 Loan book (period end) ($'000) 782,819 758,129 756,329 Loan book (average) ($'000) 767,993 759,403 748,939 Average interest rate (%) 16.8% 16.4% 16.1% Average funding rate (%) 8.1% 8.2% 7.2% Net interest income (%) 9.0% 8.5% 9.2% Risk adjusted income (%) 5.3% 4.3% 5.0% Loan book value and growth Loan book quality Incurred credit loss ($'000) 14,238 15,056 15,643 Incurred credit loss to average gross loans (%) 3.7% 4.0% 4.2% Provision rate (%) 4.5% 4.8% 4.8% Customer acquisition to origination ratio 3.2% 3.2% 3.3% Costs to income ratio 18% 21% 26% Productivity metrics HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 28 Cash Flow 6 Months ended 6 Months ended 6 Months ended 31 December 2024 30 June 2024 31 December 2023 $'000 $'000 $'000 Cash flows from operating activities Interest received 63,486 60,097 59,220 Interest paid (29,233) (29,716) (27,527) Fee income earned / (rebated) 66 362 (1,076) Payments to suppliers and employees (18,375) (15,703) (21,169) Net cash generated by operating activities 15,944 15,040 9,448 Net advances to customers (41,184) (22,552) (25,302) Payments for software intangibles and equipment (2,279) (2,382) (2,330) Net cash used in investing activities (43,463) (24,934) (27,632) 37,435 7,114 13,329 - - 2,500 (277) (267) (250) Net cash generated by financing activities 37,158 6,847 15,579 Cash and cash equivalents at the beginning of the period 37,744 40,982 43,454 Net decrease in cash and cash equivalents 9,639 (3,047) (2,605) Cash flows from investing activities Cash flows from financing activities Net proceeds from finance receivables borrowings Proceeds from corporate debt Principal element of lease payments Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of the period (150) (191) 133 47,233 37,744 40,982 29 HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 Balance Sheet Cash and cash equivalents Trade and other assets 31 December 2024 30 June 2024 $'000 $'000 31 December 2023 $'000 47,233 37,744 40,982 3,853 2,959 2,671 Finance receivables 786,839 761,471 758,861 Expected credit loss provision (36,500) (35,782) (36,646) Property and equipment 2,611 2,938 3,372 Intangible assets 6,292 4,491 12,831 Deferred tax assets 12,628 10,633 11,740 - 525 - 823,674 784,115 793,957 Derivative financial instruments Total assets Payables and accruals 5,674 5,101 4,792 Borrowings 775,263 739,546 737,276 Lease liability 2,712 3,010 3,280 Derivative financial instruments 6,559 - 3,091 Total liabilities 790,208 747,657 748,439 Net assets 33,466 36,458 45,518 Share capital 124,561 124,561 124,561 Foreign currency translation reserve (899) (622) (80) Share based payment reserve 4,792 4,463 2,961 Cash flow hedge reserve (4,703) 349 (2,228) Accumulated losses (90,285) (92,293) (79,696) Equity 33,466 36,458 45,518 30 HARMONEY ©2025 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 Important notice and disclaimer The material in this presentation is provided for general information purposes only and is current as at the date of this presentation. It is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation or offer to acquire Harmoney shares or other securities. It is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should assess their own financial circumstances and seek professional legal, tax, business and/or financial advice before making any investment decision. The information in this presentation does not purport to be complete. It should be read in conjunction with Harmoney’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Harmoney Group’s business and operations, market conditions, results of operations and financial condition, specific provisions and risk management practices. Such forward looking statements involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of Harmoney Group and which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date thereof. Past performance is not indicative of future performance. HARMONEY ©2025 No representation or warranty, express or implied, is made as to the fairness, completeness, accuracy, adequacy or reliability of information, opinions or conclusions in this presentation, including the financial information. To the maximum extent permitted by law, none of Harmoney, or its related bodies corporate, or their respective directors, officers, employees, contractors or agents, accept liability or responsibility for any loss or damage resulting from the use or reliance on this presentation or its contents or otherwise arising in connection with it by any person, including, without limitation, any liability from fault or negligence. The financial information in this presentation has not been audited. This presentation contains certain non-IFRS measures that Harmoney believes are relevant and appropriate to understanding its business. Investors should refer to the 1H25 Interim Report for further details. All values are expressed in Australian dollars unless otherwise stated. All intellectual property rights in this presentation are owned by Harmoney. 1H25 INVESTOR PRESENTATION 20 FEBRUARY 2025 31