Thorn Group Ltd - Results Presentation - Half Year Ended 30 September 2018

Business Finance 12 Sep-18 Mar-18 Sep-17 ‘18 to ‘17 Originations $m 84.6 95.2 113.7 (25%) Receivables, net 1 $m 333.2 326.1 295.5 12% Revenue 2 $m 21.5 21.9 16.9 27% EBIT $m 13.5 14.4 9.8 38%  Origination growth constrained by credit availability until mezzanine investor introduced.  Rates maintained, revenue growth 27% on pcp.  Costs controlled so revenue growth fell mostly to the bottom line. EBIT up 38% to $13.5m.  Arrears increasing as book matures but in focus. Same credit screening, security position, and diversification in book.  AASB 9 impact on provisioning. Notes 1. Net receivables book has been restated for prior periods to show the net of lease receivables, trade receivables and provisions for doubtful debts. 2. The Group has made a voluntary change in accounting policy and accordingly amended the presentation of balances. This has also been reflected in the comparative. 113.7 95.2 84.6 3.9 3.6 3.2 - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 - 20.0 40.0 60.0 80.0 100.0 120.0 Sep-17 Mar-18 Sep-18 Volume ('000) Finance Lease Originations ($m) Equipment Finance Volume Originations Volume ('000) 27% 10% 11% 11% 8% 7% 6% 3% 3% 16% Asset Categories Financed Motor Vehicles Fitness Machinery Telephony Furniture Commercial Kitchen IT Equipment AV system Printers & Copiers Other