26 Aug 2021

Tyro FY21 Investor Presentation

FY21 INVESTOR PRESENTATION 26 AUGUST 2021 Tyro Payments Limited ABN 49 103 575 042 Businesses trust Partners advocate Employees are proud of Our community backs We eliminate friction with payments + banking solutions, that: To be Australia’s: fastest growing most loved + trusted sustainable payments + business banking partner Our Mission Our Vision Our Purpose Setting businesses free to get on with business by simplifying payments + banking solutions “We are a tech company providing payments + business banking - taking on the big guys” 2 Delivering against our Growth Plan We have a clear strategy that underpins our growth ambitions. FY21 has seen us execute against a number of elements of that plan: Tyro Community Merchant Cash Advance Brand Other New Features / Products Deposits Tyro Connect M u l t i p l e T y p e s S i m p l e I n t e g r a t e d S e c u r e P a y m e n t R e c u r r i n g I n - a p p C a r d - P r e s e n t F a c i l i t a t i o n P r e s e n t C a r d - N o t - PAYMENTS Current offering Planned offering R e l i a b l e F a s t Signi?cant uplift in transaction value to $25.5 billion (IPO: $17.5 billion) Signi?cant increase in merchants to 58,186 (IPO: 29,031) Sizable addressable market remains - TAM share 3.8% (IPO: 2.7%) Prompted brand awareness spike to 20% (IPO: 10%) Transformational Tyro | Bendigo Bank Alliance completed Acquisition of Medipass to build out our health solution Tyro Connect POS integration hub gaining traction me&u ‘tap, order and pay in app’ solution a major eCommerce opportunity Launch of Open Banking Paypa Plane - innovative platform for recurring payment opportunities P P P P P P P P P P 3 Addressable Market Opportunity Remains Signi?cant Strong track record of growth - above system growth + multiple growth levers to materially increase market share over the medium term CAGR of total card payments in Australia - 5.5% CAGR of Tyro’s annual transaction value - 24.6% Tyro growing at ~ 5x market growth FY20 FY15 FY16 FY17 FY18 FY19 $490b Card payments in Australia FY21 $529b $566b $607b $651b $660b $676b $13.4b $17.5b $20.1b $25.5b $10.6b $6.8b $8.6b Tyro transaction value Tyro market share of total card payments 1.4% 1.6% 1.9% 2.2% 2.7% 3.0% 3.8% Annual transaction value of card payments acquired in Australia ($ billion) Source: RBA C1.1 (Credit and Charge Cards – Original Series – Aggregate Data); RBA C2.1 (Debit Cards – Original Series); RBA C2.2 (Prepaid Cards – Original Series), years ended 30 June and Tyro internal estimates. 4 Leveraging Our Scalable Platform to Accelerate Growth Tyro is well positioned to continue to accelerate growth over the medium term. FY20 FY15 FY16 FY17 FY18 FY19 $32.8m Operating expenses to gross pro?t margin FY21 $46.2m $56.0 $69.1m $83.3m $93.5m $119.7m 89.7% 96.1% 116.4% 114.2% 110.3% 104.7% 88.2% Gross pro?t 1 1 1 Normalised results Delivering bene?ts of scale • Operating leverage as platform continues to scale • Will underpin EBITDA growth and margin expansion 2 Tailored payment solutions for verticals drive strong merchant base and transaction value growth 1 • Add new verticals • Increase share in existing verticals • Increase share of TAM beyond current 3.8% Strategic partnerships with large organisations Strategic investments to enhance our platform’s capability • Explore opportunities to partner with other organisations to deliver step change in segment share gains • ‘Bolt on’ opportunities/ partnerships/investments to enhance merchant solutions remain in appetite • Demonstrated capability post IPO 3 4 IPO FY21 29,031 CAGR - 59% 58,186 IPO FY21 $25.5b CAGR - 29% Number of merchants Transaction value $17.5b Other organisations MEDIUM TERM TARGET 5 Leveraging Our Scalable Platform to Accelerate Growth (cont.) Cross-sell opportunities represent upside potential • Contribution from adjacent banking products and growth in lending to accelerate as economy normalises 6 Expansion in eCommerce and other payment types 5 • Enhance offerings leveraged to growth in shifting consumer preferences including eCommerce, alternative payments, ISVs/in-App Continued expansion into new verticals • Leverage platform to expand into new verticals including trades, accommodation and services • Tyro Go dongle for: › trades vertical › ‘queue buster’ for high volume retail › micro merchants 7 Launch of eCommerce in March 2019 Transaction value up 536% in FY21 Tyro Connect Launch of AliPay in October 2018 FY19 FY21 $2.9m $2.0m Interest income on loans Merchant deposits FY20 $4.2m FY19 FY21 $26.9m $75.5m FY20 $50.5m 25% (9,803) 14% (5,740) 35% (13,952) 26% (10,201) 35% ($8.7b) 45% ($11.3b) 8% ($2.1b) 11% ($2.8b) Health Hospitality Retail Other Transaction Value Merchant Count The data only relates to Tyro merchants and excludes Bendigo merchants MEDIUM TERM TARGET 6 FY21 Financial Highlights - Record Results Delivered h 26% in transaction value to record $25.5 billion (FY20: $20.1 billion) h 81% in merchants choosing Tyro reaching 58,186 (FY20: 32,176) h 28% gross pro?t to record $119.4 million (FY20: $93.5 million) Operational leverage - operating costs 1 controlled - h 7.9% vs. gross pro?t h 28% h 424% in EBITDA 2 to a record $14.2 million (FY20: Loss of $4.4 million) Liquidity position remains strong - $172.8 million in cash + investments 3 ($188.3 million at 30 June 2020) 1 Operating costs accounted for on a normalised basis. Refer to page 9 and page 29. 2 Tyro uses EBITDA as a non-IFRS measure of business performance, which excludes the non-cash impact of share-based payments expense, share of loss from associates, expenses associated with the terminal connectivity issue and the IPO and other signi?cant one-off costs. Refer to the page 29 for a reconciliation of normalised results to statutory results. 3 Includes merchant deposits of $75.5 million (FY20: $50.5 million) 7 FY20 Transaction Value FY21 $20.1 B up 26% Merchant Numbers Gross Pro?t $25.5 B 32,176 up 81% 58,186 $93.5 M up 28% $119.4 M EBITDA† ($4.4 M) up 424% $14.2 M FY21 Operational Call-Outs Brand awareness: • Promoted brand awareness 20% (FY20: 14%) • Unprompted brand awareness 19% (FY20: 9%) Churn remains low: • Transaction churn rate of 8.7% (FY20: 8.0%) • Merchant churn rate of 11.3% (FY20: 11.7%) NPS 21 at 30 June 2021 (30 June 2020: 43) - impacted by connectivity issue eCommerce growth - h 536% to $70 million (FY20: $11 million) 11,813 new merchant applications - averaging ~1,000 per month h 13% (FY20: 10,457) Loan originations: • $25.8 million - down 57% (FY20: $60.1 million) • ~$20 million originated in the ?nal 3 months of FY21 (pcp: $1.6 million) FY20 Prompted Brand Awareness FY21 14% up 6 points Unprompted Brand Awareness NPS 20% 9% 19% 43 21 up 10 points down 22 points 8 Results in Overview STATUTORY NORMALISED 1 STATUTORY GROWTH - NORMALISED FY21 TO FY20 FY21 FY21 FY20 $’000 $’000 $’000 % Transaction value 25,453,507 25,453,507 20,131,045 p 26.4% Payments revenue and income 229,221 230,204 202,826 p 13.5% Lending and investment income 3,222 3,222 1,818 p 77.2% Other revenue and income 6,079 6,079 6,031 p 0.8% Revenue 238,522 239,505 210,675 p 13.7% Less: Direct expenses (119,073) (119,771) (117,200) p 2.2% Gross pro?t 119,449 119,734 93,475 p 28.1% Less: Operating expenses (excl. share-based payments) (122,551) (105,568) (97,847) p 7.9% EBITDA 2 (3,102) 14,166 (4,372) p 424.0% Less: Share-based payments expense (9,342) (8,779) (10,896) q 19.4% IPO costs (331) - (9,730) q 96.6% Share of loss from associates (1,119) (1,119) - p - Depreciation & Amortisation (15,364) (15,364) (12,524) p 22.7% Bendigo Bank partner revenue share - 698 - p - EBIT (29,258) (10,398) (37,522) p 72.3% Less: Net interest expense (517) (517) (535) q 3.4% Loss before tax (29,775) (10,915) (38,057) p 71.3% Payments Business Performance (normalised 1 ) FY21 FY20 GROWTH $’000 $’000 % Transaction value 25,453,507 20,131,045 p 26.4% Revenue 230,204 202,826 p 13.5% Gross pro?t 110,812 86,142 p 28.6% Banking Business Performance FY21 FY20 GROWTH $’000 $’000 % Revenue 3,222 1,818 p 77.2% Gross Pro?t 2,843 1,302 p 118.4% Transaction Value h 26.4% FY21 FY16 FY17 FY18 FY19 FY20 88.2% 96.1% 116.4% 114.2% 110.3% 104.7% Operating expenses (excl. share-based payments) - % of gross pro?t (normalised 1 ) Gross Pro?t h 28.1% EBITDA h 424.0% Operating Leverage Achieved 1 Normalised results are adjusted for the costs associated with the terminal connectivity issue and M&A activity. Refer to page 29 for a reconciliation of normalised results to statutory results. 2 Tyro uses EBITDA as a non-IFRS measure of business performance, which excludes the non-cash impact of share-based payments expense, share of loss from associates, expenses associated with the terminal connectivity issue and the IPO and other signi?cant one-off costs. Refer to the page 29 for a reconciliation of normalised results to statutory results. 9 • Commercial completion - 1 June 2021 • Joint objective of alliance to provide Tyro’s best-in-class payments solution to Bendigo Bank’s business customers • Full technical + economic separation of Bendigo Bank’s merchant acquiring service to Tyro • Tyro terminals (and where applicable eCommerce facilities) rolling-out to all Bendigo Bank merchant acquiring customers • Tyro exclusively provides merchant acquiring services to current and referred Bendigo Bank customers for both: P card-present transactions P card not-present transactions • Bendigo Bank to continue to provide all other banking services to its customers under the alliance • Initial 10-year term with provision for additional 5-year terms by mutual agreement • Replace Bendigo Bank’s current solution - leverage Tyro’s leading technology + scale • Maximise opportunity to convert more current and future Bendigo Bank business customers to the merchant acquiring alliance • Tyro established a customer support presence in Bendigo Bank Tyro | Bendigo Bank Alliance $439.9 million transacted in June 2021 by Tyro | Bendigo Bank Alliance merchants 18,490 Tyro | Bendigo Bank Alliance merchants now serviced by Tyro June 2021 Merchant # share 32% 68% June 2021 Transaction Value share 83% 17% June 2021 Terminal # share 43% 57% Tyro merchants Tyro | Bendigo Bank Alliance merchants 244 150 140 132 21 CommBank ANZ NAB Westpac Suncorp 104 Tyro (incl. Tyro | Bendigo Bank Alliance merchants) Number of terminals by banks in Australia 1 (‘000) - as at 30 June 2020 (updated for Tyro + Bendigo Bank terminals at 30 June 2021) 1 Source: APRA, Authorised deposit-taking institutions’ point of presence statistics, 30 June 2020 10 Acquisition of Medipass • 100% acquisition of Medipass Solutions on 31 May 2021 - $22.5 million (~60% cash / ~40% scrip) • Digital health payments platform - linking funders, healthcare practitioners + patients • Streamlines claims approval + payment acceptance • Provides greater claiming + payment options to Tyro merchants • Acquisition builds scale, capabilities + enhances our segment position Uni?ed Multi-Sided Digital Approval + Payments Platform • Medipass’ digital health payments platform combined with Tyro’s card-present solution provides uni?ed health claiming + payments offering - simplify payments + claiming in an extremely complex sector Payment Claim Quote Signi?cant Scale to Drive our Health Business • Enhanced practice management system (PMS) integration • +15% increase in health merchants - limited overlap • Medipass 20-strong team has joined Tyro’s health team to form a new health business unit 52 Tyro PMS integrations + 18 Medipass PMS integrations = ~70 PMS integrations (limited overlap) Tyro health merchants 9,541 + 1,700 1 Medipass health merchants = 11,241 (limited overlap) 1 Includes 1,040 health businesses that use Medipass for digital claiming but do not have a payments settlement relationship with Tyro. 11 Customer ordering Booking Logistics Workforce management Loyalty & marketing Reporting & i nsights POS/PMS integrates Tyro Connect 2-way API platform App integrates • Tyro Connect Integration - a hub for apps + POS/PMS systems Payments Data (in-store + online) Providing individual merchants with: • A real time feed of all their card transactions • A daily consolidated data share of all their transactions across all locations • Insight into new vs repeat card usage Sales Data Providing individual merchants with: • Sales data feeds from their POS/PMS • Ability to match their sales data to transactions + cards across all locations Integrations Data Providing individual merchants with: • Overview of app activity across their locations • Ability to match payment data to their loyalty integrations • Single view of their customer across channels (in-store + online) • 12 Apps signed up • 3 Apps live • Piloting a new partnership with a global food delivery platform • 695,000 transactions processed through platform • 124 merchants on platform • 4 POS integrations Tyro Connect 12 me&u - Leading ‘tap, order + pay’ Solution • ~16% equity investment in me&u (initial investment - $3.5 million), providing rights to be exclusive in-app payment provider • me&u is a leading Australian tap, order + pay in venue solution for the hospitality industry • Established by the founder of Dimmi - Stevan Premutico • Enables customers to view menus, order and pay for meals via their mobile phone • Solution improves customer experience, frees up wait staff and increases order value and frequency • Foundation app on Tyro Connect platform • In June 2021 me&u commenced migrating their in-App payments to Tyro’s eCommerce platform - will progressively roll-out in H1 FY22 ~30% higher spend per customer using me&u Integrated with 9 leading hospitality POS partners Key hospitality groups using me&u • Merivale • Solotel • Howard Smith Wharves • Rockpool Dining Group 13 FY 21 OPERATIONAL REVIEW 14 Payments - Operational Highlights FY21 FY20 GROWTH $’000 $’000 % Transaction value 25,453,507 20,131,045 p 26.4% Revenue 1 230,204 202,826 p 13.7% Gross pro?t 1 110,812 86,142 p 28.6% MAF margin as a % of Transaction value 0.3437% 0.3205% p 2.3bps Step-up in merchant base • 58,186 merchants at 30 June 2021 - up 81% (FY20: 32,176) • 18,490 Bendigo Bank merchants on-boarded on 1 June 2021 • Average run rate of ~1,000 new merchants applications per month • 5 th largest merchant acquiring bank in Australia by terminal numbers - 104,827 terminals • Current NPS of 21 - down from 43 at 30 June 2020 impacted by terminal incident • Prompted brand awareness of 20% - up from 14% at 30 June 2020 Low merchant churn • Stability in churn metrics: › Transaction value churn 8.7 % (FY20: 8.0%) › Merchant number churn 2 11.3% (FY20: 11.7%) Results in strong transaction value growth • Transaction value of $25.5 billion h 26% (FY20: $20.1 billion) • Excluding Bendigo Bank Alliance contribution of $439.9 million for the month of June 2021 - transaction value h 24% - matching 5-year CAGR of 24% • eCommerce transaction value of $70.0 million h 536% (FY20: $10.6 million) $25.5b $8.6b $10.6b $13.4b $17.5b FY21 FY16 FY17 FY18 FY19 $20.1b FY20 FY16 - FY21 CAGR +24% FY20 FY19 FY21 8.0% 9.3% 8.7% Transaction Value ($’billion) Transaction Value Churn (%) 15,565 18,329 23,245 29,031 FY21 FY16 FY17 FY18 FY19 32,176 FY20 FY16 - FY20 CAGR +30% 39,696 18,490 58,186 Merchants (#) Merchant Number Churn (%) FY20 FY19 FY21 11.7% 11.7% 11.3% FY18 13.0% FY17 12.3% 1 Refer to page 29 for a reconciliation of normalised results to statutory results. 2 Merchant number churn of 11.3% is based on Merchants con?rmed as leaving Tyro, including those merchants that have gone out of business. . 15 Payments - Operational Highlights (cont.) Improvement in margins driving gross pro?t • 0.8075% Merchant Service Fee ( MSF ) (FY20: 0.8953%) • 0.3437% Merchant Acquiring Fee ( MAF ) (FY20: 0.3205%) • Change in card mix to debit cards driving lower MSF but higher MAF • 44% of transaction value generated from merchants on a cost+ arrangement & 56% on a Blended/Normalised arrangement (FY20: 45% / 55%) Performance from core verticals • Core Health, Hospitality and Retail verticals drive: - 85% of merchants - 91% of transaction value • Hospitality vertical transaction value h 34% • Retail vertical transaction value h 18% • Health vertical transaction value h 13% Geographical transaction value performance • Strong performance in geographies outside of NSW and Victoria: - Queensland h 39% - Western Australia h 38% - South Australia h 31% • Victoria impacted by numerous lockdowns through FY21 25% (9,803) 14% (5,740) 35% (13,952) 26% (10,201) 35% ($8.7b) 45% ($11.3b) 8% ($2.1b) 11% ($2.8b) Health Hospitality Retail Other Transaction Value Merchant Count The data only relates to Tyro merchants and excludes Bendigo merchants 3.7% 57% Jul 2019 3.7% 57% Aug 2019 3.3% 58% Sep 2019 3.9% 56% Oct 2019 4.2% 56% Nov 2019 4.4% 55% Dec 2019 5.0% 57% Jan 2020 4.2% 57% Feb 2020 3.4% 58% Mar 2020 0.8% 0.7% 0.8% 61% Apr 2020 62% May 2020 61% Jun 2020 Proportion of International Transaction Vaue Proportion of Debit Card Transaction Vaue COVID-19 impacted period Period prior to the impact of COVID-19 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 0.7% 0.7% 0.6% 0.8% 0.6% 0.7% 0.7% 0.7% 0.7% 0.8% 0.9% 0.8% 63% 63% 62% 62% 60% 60% 61% 61% 60% 61% 60% 60% Geographical transaction value performance FY21 FY20 Growth Proportion of FY21 transaction value ($ billion) ($ billion) % % NSW 9,475 7,873 20% 37% Victoria 5,141 4,731 9% 20% Queensland 5,556 4,004 39% 22% Western Australia 2,526 1,824 38% 10% South Australia 1,037 789 31% 4% Other (including Tyro | Bendigo Bank Alliance) 1,719 910 89% 7% Card mix - FY21 vs. FY20 16 Impact of Covid on the Business Continued impact of Covid on Payments Business • Lockdowns continue to signi?cantly impact transaction value growth › First national lockdown March 2020 to June 2020 › Second major lockdown in Victoria - July 2020 to October 2020 › Various States go into snap lockdowns - January 2021 to February 2021 › All States open and no lockdowns - March 2021 to June 2021 Assistance to our Merchants • Repayment holidays provided to support borrowers experiencing hardship during extended lockdowns • Terminal rental relief to impacted merchants - $ 1.0 million in rental relief provided • Outbound contact program provides merchants awareness of support available and making support team available 24/7 Safety of our Team • All team members worked from home during mandated lockdowns • Access to JobKeeper for the ?rst quarter of FY21 enabled us to keep our entire team employed • Providing employees paid leave to receive a Covid vaccination should they choose to get vaccinated (30%) 0 30% 60% 90% 120% 150% 55% 79% 147% 40% 10% 11% 19% 13% 10% 5% (4%) 11% 7% (18%) (38%) 3% 30% 27% 27% 29% 32% 31% 31% 30% FY21 FY20 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 5-year CAGR - 24% Monthly transaction value growth - FY21 vs. FY20 1 1 2 2 3 3 4 4 17 Terminal Connectivity Issue • Issue identi?ed on 5 January 2021 • 70% of Tyro’s merchants were unaffected by the incident • 18-year history with no equivalent event • Event does not sit comfortably with Tyro’s DNA • Impacted merchants - › 11% of merchants partially impacted (multi-terminal outlets with at least one functioning unit) › 19% of merchants were fully impacted • Developing dongle failover solution for every merchant - industry ?rst move • Make good program in action: › all ?nancially impacted merchants invited to register with Tyro to enable remediation claims to be assessed › ~85% of merchants that sought remediation already settled - balance being progressed › the remediation process remains available for claims - providing a fast + straightforward process without the costs, delay + uncertainty inherent in legal proceedings • FY21 ?nancial impact of terminal connectivity issue FY21 $’000 P&L impact Discount on merchant service fee and terminal rental waivers 1,323 Staff costs related to the incident 217 Direct logistics costs and other costs related to the incident 2,737 Provision for remediation 9,008 FY21 P&L impact 13,285 Additional capex costs 1,600 18 Banking - Operational Highlights Tyro Business Loan • $25.8 million in loan originations (FY20: $60.1 million) • Auto approval suspended due to COVID 1 July 2020 to 31 Jan 2021 - $3.2 million in originations in this period vs. $43.8 million pcp • Since January 2021 originations averaging ~$4 million per month • Record $8.1 million in originations in May 2021 • Positive non-cash fair value adjustment $1.2 million - partial reversal of previous adjustment as risks of COVID on loan balances diminished • Average loan size $35,500 (FY20: $32,200) | Average tenure 6.6 months (FY20: 5.7 months) • $15.4 million loans on the balance sheet at 30 June 2021 (FY20: $11.9 million) • 2.7% lending loss to originations - equating to $0.7 million in lending loss i 36.4% (FY20: 1.8%, $1.1 million) Scaling our Banking products to our entire merchant base • All 39,696 of Tyro’s merchants (excluding Bendigo Bank Alliance merchants) can now check their eligibility for a loan through the Tyro app (compared to ~7,500 merchants in prior periods) • A manual credit team review can be conducted if eligibility is not met through the automated process to determine eligibility • First loan amounts increased from a maximum eligible loan amount of $50k to $100k Loan originations ($’million) FY21 FY20 GROWTH $’000 $’000 % Loan Originations 25,843 60,107 q 57.0% Revenue 3,222 1,818 p 77.2% Interest income on loans 1,952 4,179 q 53.3% Fair value gain/(loss) on loans 1,270 (2,361) p 153.8% Gross Pro?t 2,843 1,302 p 118.4% Gross Pro?t margin as % of Revenue 88.2% 71.6% p 16.6 points $25.8m $11.1m $25.2m $52.2m FY21 FY16 FY17 FY18 FY19 $60.1m FY20 Impact of Covid on loan originations Lending loss ($’million) FY20 FY19 FY21 $1.1m $0.5m $0.7m 2.1% 1.6% 1.0% 2.7% 1.8% FY18 FY17 $0.4m $0.2m Lending loss to originations Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY21 FY20 $0.2m $0.4m $0.3m $0.4m $0.7m $0.6m $0.6m $1.0m $1.8m $5.1m $8.1m $6.5m $6.3m $5.8m $5.8m $7.3m $5.4m $6.8m $6.4m $7.3m $7.4m $0.8m $0.4m $0.4m 19 Banking - Operational Highlights (cont.) Tyro Bank Account • $72.5 million in deposits on the balance sheet at 30 June 2021 (FY20: $49.7 million) • 4,603 active accounts • Average account balance of $15,750 (FY20: $13,800) • Average interest rate 0.43% (FY20: 1.3%) Tyro Term Deposit Account • $3.0 million in term deposits on the balance sheet at 30 June 2021 (FY20: $0.8 million) • Product launched to active banking customers in July 2020 • 60 active accounts • Average interest rate 1.01% Merchant deposits - including term deposits ($’million) FY17 FY18 FY19 FY16 FY21 FY20 $3.9m $11.6m $26.9m $50.5m $0.5m $75.5m FY20 FY21 4,663 3,713 1.3x Number of active bank accounts at 30 June 2021 Delivering on banking innovation Implemented Mambu’s cloud-native banking platform in FY21 Tyro becomes one of the ?rst non-major banks to become an active data holder under the Consumer Data Right Awarded the Most Innovative Digital Solution Award recognising Tyro’s Business Term Deposit - Australian Banking Innovation Awards Recurring payments to launch in FY22 Coming soon P P 20 OVERVIEW OF FY21 FINANCIAL PERFORMANCE Revenue and income • $4.5 million - JobKeeper ensured no team retrenchments + assisted support to merchants (FY20: $3.9 million) Operating leverage continuing to build • Total operating expenses h 7.9% vs gross pro?t h 28.1% • Employee bene?ts expense h 11.4% re?ecting: › net increase in headcount and full-year impact of prior year increases (FY21: 533 vs FY20: 476) › 4.4% annualised average salary increase from January 2021 • Administrative expenses i 3.1% re?ecting: › reduced travel, training and of?ce expenses › offset by increased licencing costs, recruitment costs and growth related expenses • Contractor and consulting expenses h 21.6% re?ect ?uid use of contractors to maintain delivery capacity • Marketing expenses i 5.2%: › targeted marketing activity providing increased brand awareness › growth in merchant acquisition of 11.1% • Lending and non-lending losses i 22.6% to $1.5 million re?ecting: › $0.7 million in lending losses (FY20: $1.1 million) - 2.1% loss to loan origination ratio › $0.8 million in non-lending losses (FY20: $0.9 million) EBITDA • Operating leverage signi?cantly increased in FY21 despite COVID-19 and terminal incident • Improvement in EBITDA: › positive FY21 - $14.2 million at an EBITDA margin to gross pro?t of 11.8% › loss FY20 - $4.4 million • Positive operating expense to gross pro?t margin outcome - 88.2% (FY20: 104.7%) • Driven predominantly by growth in transaction value of $5.4 billion Share-based payments expense • i 19.4% includes $0.6 million in one-time grant of LEPRs partially expensed in FY21 (FY20: $2.4 million) Net loss before tax • Normalised net loss before tax $10.9 million (FY20: $25.9 million) - Refer to Attachment 1 on page 29 • Statutory net loss before tax $29.8 million (FY20: $38.1 million) Financial Performance - P&L 1 Refer to page 29 for a reconciliation of normalised results to statutory results. Tyro uses EBITDA as a non-IFRS measure of business performance, which excludes the non-cash impact of share-based payments expense, share of loss from associates, expenses associated with the terminal connectivity issue and the IPO and other signi?cant one-off costs. STATUTORY NORMALISED 1 STATUTORY CHANGE FY21 NORMALISED TO FY20 STATUTORY % FY21 ($’000) FY21 ($’000) FY20 ($’000) Transaction value 25,453,507 25,453,507 20,131,045 p 26.4% Payments revenue and income 229,221 230,204 202,826 p 13.5% Banking income 3,222 3,222 1,818 p 77.2% Other revenue and income 6,079 6,079 6,031 p 0.8% Total revenue 238,522 239,505 210,675 p 13.7% Payments direct expenses (118,694) (119,392) (116,684) p 2.3% Interest expenses on deposits (379) (379) (516) q 26.6% Total direct expenses (119,073) (119,771) (117,200) p 2.2% Gross pro?t 119,449 119,734 93,475 p 28.1% Operating expenses: Employee bene?ts expense (excl. share-based payments) (76,174) (75,365) (67,662) p 11.4% Administrative expenses (22,903) (16,077) (16,598) q 3.1% Contractor and consulting expenses (7,192) (7,192) (5,913) p 21.6% Marketing expenses (5,419) (5,419) (5,716) q 5.2% Lending and non-lending losses (10,863) (1,515) (1,958) q 22.6% Total operating expenses (122,551) (105,568) (97,847) p 7.9% EBITDA 1 (3,102) 14,166 (4,372) p 424.0% Share based payments expense (9,342) (8,779) (10,896) q 19.4% IPO costs (331) - (9,730) q - Share of loss from associates (1,119) (1,119) - p - Net interest expense (517) (517) (535) q 3.4% Depreciation and Amortisation (15,364) (15,364) (12,524) p 22.7% Bendigo Bank partner share - 698 - p - Loss before tax (29,775) (10,915) (38,057) p 71.3% 22 Operating Metrics as a % of Transaction Value Operating Metrics 0.9292% 0.9531% 0.9403% 0.9269% 0.8953% 0.8075% 0.5170% 0.6151% 0.5905% 0.5251% 0.4861% 0.4147% 0.5065% 0.5436% 0.5379% 0.5559% 0.5365% 0.4244% 0.5377% 0.5283% 0.5170% 0.4759% 0.4643% 0.4704% 0.4000% 0.4500% 0.5000% 0.5500% 0.6000% 0.6500% 0.7000% 0.7500% 0.8000% 0.8500% 0.9000% 0.9500% 1.0000% FY16 FY17 FY18 FY19 FY20 FY21 MSF as a % of Transaction Value Operating expenses as a % of Transaction Value Interchange + Scheme Fees as a % of Transaction Value Gross Pro?t as a % of Transaction Value EBITDA Margin expansion to 11.8% (negative 4.7% in FY20) Merchant Service Fee (MSF) re?ects : • Full year impact of lower MSF, higher margin debit cards • Full-year run rate of reduced usage of higher MSF (but higher cost) international credit card usage - lockdown of international borders • Excludes terminal rental & other payments revenue Interchange Fees + Scheme Fees • Decrease due to: › decreased direct costs of debit cards due to competition › full year run rate of lower cost debit cards being 61% of total transaction value (FY20: 58%) › lower usage of international credit cards Operating leverage highlighted as gross pro?t grows • Scalability demonstrated despite COVID-19 and terminal incident • Operating leverage is highlighted as revenue grows 23 Financial Position 30 JUNE 2021 30 JUNE 2020 $’000 $’000 ASSETS Cash 1 103,712 122,190 Loans to merchants 15,387 11,921 Other current assets 20,560 18,278 Financial investments 69,068 69,761 Property, plant and equipment 26,027 17,266 Intangible assets and goodwill 140,867 5,367 Other non-current assets 20,508 19,056 TOTAL ASSETS 396,129 263,839 LIABILITIES Customer deposits 75,481 50,542 Other current liabilities 35,614 19,351 Commissions payable to Bendigo Bank 102,273 - Non-current liabilities 2,097 4,227 TOTAL LIABILITIES 215,465 74,120 NET ASSETS 180,664 189,719 Contributed equity 274,436 265,763 Accumulated losses and reserves (93,772) (76,044) TOTAL EQUITY 180,664 189,719 1 Cash includes all cash and cash equivalents and amounts due from other ?nancial institutions Strong balance sheet underwrites continued growth Cash + Financial Investments • Decrease in cash due to › Capex on terminals of $18.3 million › $13.5 million cash consideration for 100% acquisition of Medipass - represents 60% of total consideration of $22.5 million › $9 million upfront consideration for Bendigo Bank Alliance › $1.9 million cash consideration for the acquisition of 20% in Paypa Plane • Positive cash generated from operations $0.3 million (before terminal purchases and Banking) Capital Expenditure - PP&E • FY21 full-year capex on terminals of $18.3 million (FY20: $6.9 million) • $10.6 million total depreciation (FY20: $9.5 million) - increase due to investment in terminals • FY22 forecast capex of ~$34 million Intangible Asset Recognised on Bendigo Bank Alliance • Recognised $111.8 million intangible asset relating to Bendigo Bank customer contracts for the 10-year Bendigo Bank Alliance - corresponding $102.3 million liability recognised for future commission payments to Bendigo Bank • Provisionally recognised $13.7 million goodwill, $5.5 million software and $2.9 million in customer relationships on acquisition of Medipass - Purchase price allocation to be ?nalised in FY22 • $1.8 million total amortisation (FY20: $0.2 million). Other current liabilities • $9.0 million provision for future remediation of merchants for terminal incident • $5.5 million timing difference for the settlement of scheme fees, commissions and other accruals 24 TRADING UPDATE 25 Trading Update 1 Weekly Transaction Value Growth - FY22 26% 19% 28% 32% 0 5% 10% 15% 20% 25% 30% 35% 40% FY21 1 - 2 Jul 2021 3 - 9Jul 2021 10 - 16 Jul 2021 YTD Aug 2021 24% 24 - 30 Jul 2021 11% 17 - 23 Jul 2021 24% 28% 31 Jul - 6 Aug 2021 7 - 13 Aug 2021 22% 7 - 13 Aug 2021 24% PAYMENTS BUSINESS: • Transaction value to 20 August $3.64 billion, up 24% on pcp › Victoria h 48% › NSW i 30% › Queensland h 12% › WA h 14% › SA h 6% › Other (includes Bendigo Bank Alliance) h 437% • Record eCommerce transaction value achieved for July 2021 - $35.1 million • Tyro | Bendigo Bank Alliance transaction value for July 2021 - $420.2 million • Payments gross pro?t for July 2021 up 34% to $10.2 million (pcp: $7.6 million) BANKING BUSINESS: • Loan originations to 20 August $8.8 million, h 1,656% ($0.5 million in pcp) • Deposit balances of $84.2 million at 31 July 2021, h 34% ($62.8 million in pcp) 1 These numbers are based on unaudited management accounts that have not been independently reviewed or veri?ed. 26 Looking Ahead “…our experience has been that businesses rebound rapidly as normality returns and we remain optimistic as vaccination rates increase...” “It is an exhilarating time to be a Tyro, we have achieved a lot in the last year, but it is the opportunity in front of us that remains large and exciting...” “We have a mix of features and products in train that will continue to build out our payments centric ecosystem…” “With the digital claiming capabilities...available via Medipass, we have an opportunity in combination with our existing health solution, to create the leading uni?ed claiming and payments platform for Australian healthcare practitioners...” “We have created IP in our model for Bendigo Bank...with potential applicability to other market opportunities. We continue to have appetite for ‘bolt on’ acquisitions...to gain scale, leverage our platform or capabilities, enhance our market position or supplement our ecosystem.” Extracted from Tyro Payments Limited FY21 Media Release 26 August 2021. Quotes from CEO | Managing Director • Continued bene?t from Bendigo Bank Alliance on transaction values • Challenges of COVID-19 continue in the immediate term • Expectation of rapid rebound from Covid-19 volatility - vaccinations are key • Continued focus on assisting our merchants in their recovery journeys • Signi?cant TAM exists - focus on increasing share of TAM beyond current 3.8% • Appetite to continue investing to capture segment share growth opportunities - step-up in operational and capex investment in key projects areas: • Tyro Go dongle • eCommerce platform • Next generation terminal • Deploy IP in Alliance model to other market opportunities • Continuing appetite for ‘bolt on’ acquisitions - gain scale, leverage platform or capability add 27 SUPPLEMENTARY MATERIALS 28 Attachment 1 - Reconciliation of Statutory P&L to Normalised P&L ADJUSTMENTS FY21 STATUTORY ($’000) TERMINAL CONNECTIVITY ISSUE ($’000) BENDIGO BANK PARTNER REVENUE SHARE ($’000) SIGNIFICANT ONE-OFF COSTS ($’000) IPO RELATED SHARE BASED PAYMENTS EXPENSE ($’000) FY21 NORMALISED ($’000) Transaction value 25,453,507 - - - - 25,453,507 Payments revenue and income 229,221 983 1 - - - 230,204 Banking income 3,222 - - - - 3,222 Other revenue and income 6,079 - - - - 6,079 Total revenue 238,522 983 - - - 239,505 Payments direct expenses (118,694) - (698) - - (119,392) Interest expenses on deposits (379) - - - - (379) Total direct expenses (119,073) - (698) - - (119,771) Gross pro?t 119,449 983 (698) - - 119,734 Operating expenses: Employee bene?ts expense (excl. share-based payments) (76,174) 217 2 - 592 4 - (75,365) Administrative expenses (22,903) 2,737 2 - 4,089 4 - (16,077) Contractor and consulting expenses (7,192) - - - - (7,192) Marketing expenses (5,419) - - - - (5,419) Lending and non-lending losses (10,863) 9,348 3 - - - (1,515) Total operating expenses (122,551) 12,302 - 4,681 - (105,568) EBITDA (3,102) 13,285 (698) 4,681 - 14,166 Share-based payments (9,342) - - - 563 (8,779) IPO costs (331) - - 331 - - Share of loss from associates (1,119) - - - - (1,119) Depreciation and Amortisation (15,364) - - - - (15,364) Bendigo Bank partner share - - 698 - - 698 EBIT (29,258) 13,285 - 5,012 563 (10,398) Net interest expense (517) - - - - (517) Net loss before tax (29,775) 13,285 - 5,012 563 (10,915) Summary of adjustments 1. MSF discount and terminal rental waiver provided to merchants impacted by the terminal connectivity issue 2. Additional employee costs and logistics costs incurred dealing with terminal incident in January 2021 3. Remediation 4. Legal and consulting costs incurred for the Bendigo Bank Alliance and the Medipass acquisition 5. IPO expense run-off 29 Attachment 2 - Cash Flow Analysis FY21 FY20 $’000 $’000 Net payments income 110,120 86,513 Net interest income 2,603 5,548 Other income 6,069 4,264 Employee expenses paid (75,125) (70,263) Terminals purchased (16,360) (7,176) Other operating expenses and IPO costs paid (30,635) (43,477) Movement in net schemes and other receivables (7,650) 8,867 Operating cash ?ows (excluding banking) (10,978) (15,724) Net movement in customer loans (2,918) 294 Net increase in deposits 24,939 23,624 Cash ?ows from operating activities 11,043 8,194 Net investment in term deposits, ?nancial and equity investments (395) (42,775) Net capital expenditure (excluding terminals) (1,205) (1,663) Payments for recognised intangible assets (28,076) (3,082) Other investing activities 376 405 Cash ?ows from investing activities (29,300) (47,115) Payments for lease liabilities (5,069) (4,815) Proceeds from exercise of share options 4,059 3,913 Proceeds from issue of shares (net of transaction costs) - 119,994 Cash ?ows from ?nancing activities (1,010) 119,092 Net movement in cash and cash equivalents (19,267) 80,171 Effect of foreign exchange rates on cash and cash equivalents 27 (310) Cash and cash equivalents at beginning of year 103,761 23,900 Cash and cash equivalents at end of year 84,521 103,761 Positive cash generation from operations Operating Cash Flows: • $5.0 million positive cash generation from the business before terminal purchases + contribution from Banking deposits and loans • Payments for terminals of $16.4 million • Net increase in Banking products of $22.0 million re?ecting growth in deposits + net repayment of loans Investing + Financing Cash Flows: • Cash from merchant deposits to be used to fund merchant cash advance • Payments for intangible assets re?ects the investment in the Bendigo Bank Alliance + Medipass + investment in technology + building customer relationships • Payment for investment in Paypa Plane of $1.9 million 30 Attachment 3 - Capturing Card-Present Terminal Market Share Source: APRA, Authorised deposit-taking institutions points of presence statistics, 30 June 2020; AusPayNet, Device Statistics EFTPOS Statistics, 30 June 2020. Note: Other providers (labelled ‘Other non-bank AusPayNet members’) include terminals of other providers who are members of the Australian Payments Network (for example, Adyen and First Data), a self-regulated body set up by industry participants, with rules that cover cards, cheques, direct entry, and high value payments. Does not include non-bank payment providers who are not members of the Australian Payments Network (for example, Square). Discrepancies between totals and the sum of components shown in the ?gure above are due to rounding. 1) Not material. No other bank reported by APRA had terminal numbers exceeding 191 terminals (being the Regional Australia Bank) at 30 June 2020; 2) Calculated by taking the total number of terminals reported in market by AusPayNet (Device Statistics – EFTPOS Statistics, 30 June 2020 and subtracting the sum of terminals provided by all domestic banks as reported by APRA in the above source. Number of terminals by banks and other providers in Australia (‘000) - as at 30 June 2020 (updated for Tyro terminals at 30 June 2021) 244 150 140 132 21 n/m 115 Commonwealth Bank of Australia Australia and New Zealand Banking Group National Australia Bank Westpac Banking Corporation Suncorp- Metway Other banks 1 Other non- bank AusPayNet members 2 (3%) (6%) 2% 0% 30% (8%) n/m 11% CAGR (30 June 2015 — 30 June 2020) 104 Tyro (incl. Bendigo) • 104,827 terminals at 30 June 2021 - up 67% from FY20 • Tyro has 73,151 terminals at 30 June 2021 • Tyro | Bendigo Bank Alliance has 31,676 terminals at 30 June 2021 31 Annual transaction value of card payments acquired in Australia 1 ($ billion) - as at 30 June 2021 Source: RBA C1.1 (Credit and Charge Cards – Original Series – Aggregate Data); RBA C2.1 (Debit Cards – Original Series); RBA C2.2 (Prepaid Cards – Original Series); internal company data. 1 Includes the total value of transactions acquired in Australia for credit and charge cards, and debit cards and the total value of transactions for prepaid cards. While our payments product can be used by businesses across different verticals and size of merchants, we provide our assessment of annual transaction value for small and medium-sized enterprises in our core verticals of Health, Hospitality and Retail. This has been estimated by multiplying the count of SMEs in these core verticals at 30 June 2020 by the estimated proportion of these merchants that accept card payments and average transaction values by vertical per merchant across ‘card-present’ and ‘card-not-present’ by reference in particular to our aggregated merchant data, and applying a growth rate (based on CAGR of total industry transaction value acquired from 30 June 2015 to 30 June 2020) to determine a ?gure as at 30 June 2021. Market sizes and subsets of those amounts are provided to illustrate their sizes relative to our relevant performance metrics and do not imply that we could achieve 100% penetration of them. Market share is based on our FY21 transaction value. Attachment 4 - Capturing Market Share in Growing Total Addressable Market Tyro’s estimated market share of total card payments acquired in Australia - as at 30 June 2021 Source: Internal management estimates based on available RBA statistical data available at time of results FY16 FY17 FY18 FY19 FY20 FY15 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 3.0% 1.4% 1.6% 1.9% 2.2% 2.7% FY21 3.8% $677b 5.1% CAGR (30 June 2016 — 30 June 2021) ~$180b Health, Hospitality and Retail SMEs ~14% market share ~3.8% market share 32 Attachment 5 - Our Competitive Strengths 1. Software-led approach to payments, based on a core proprietary technology platform 2. Seamless direct integration with a signi?cant number of POS systems 3. A focus on core verticals 4. Broad and direct access to the Australian ?nancial system through licences and memberships 5. Focus on providing best- in-class service to tens of thousands of Australian businesses 6. A values-led and talented team 33 Attachment 6 -Liquidity & Capital Adequacy Total Capital Ratio decreased to 73% as a result of: • ~$40 million Bendigo Bank Commission Guarantee under the Bendigo Bank Alliance and $9 million upfront consideration paid • ~$22.5 million Medipass intangible recognised on acquisition offset by $7.3 million in shares issued in consideration • $9.0 million provision for future merchant remediations • Total Capital Ratio remains multiples above APRA’s Prudential Capital Requirement Total risk weighted assets increased by $13 million • Net investment in terminals • Offset by: › Unwinding of lease for head of?ce space › Reduction in cash FY21 FY20 $115m $84m $166m $102m Total Regulatory Capital Total Risk Weighted Assets Total Capital Ratio 73% 162% 34 Disclaimer The material in this presentation is general background information about Tyro Payments Limited (Tyro) and is current at the date of the presentation, 26 August 2021. The information in the presentation is given for informational purposes only, is in summary form and does not purport to be complete. It is intended to be read by a professional analyst audience in conjunction with Tyro’s other announcements to ASX, including the FY21 Media Release, Appendix 4E and Annual Report. It is not intended to be relied upon as advice to current shareholders, investors or potential investors and does not take into account the investment objectives, ?nancial situation or needs of any particular shareholder or investor. No representation is made as to the accuracy, completeness or reliability of the presentation. Tyro is not obliged to, and does not represent that it will, update the presentation for future developments. All currency ?gures are in Australian dollars unless otherwise stated. Totals may not add up precisely due to rounding. This presentation contains statements that are, or may be deemed to be, forward looking statements. These forward-looking statements may be identi?ed by the use of forward-looking terminology, including the terms “believe”, “estimate”, “plan”, “target”, “project”, “anticipate”, “expect”, “intend”, “likely”, “may”, “will”, “could” or “should” or similar expressions, or by discussions of strategy, plans, objectives, targets, goals, future events or intentions. Indications of, and guidance on, future earnings and ?nancial position and performance are also forward-looking statements. You are cautioned not to place undue reliance on such forward-looking statements. Such forward looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Tyro which may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. 35 Investor Relations contact details: Giovanni Rizzo Phone: +61 (0) 439 775 030 Email: grizzo@tyro.com Address: 1/155 Clarence St, Sydney NSW 2000 Company website: tyro.com

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