#1H1 FY23 INVESTOR PRESENTATION 28 FEBRUARY 2023 Approved $29.89 tyro tyro Tyro Payments Limited ABN 49 103 575 042#2Disclaimer tyro This presentation is given on behalf of Tyro Payments Limited (Tyro) (ASX:TYR) (ABN 49 103 575 042). Information in this presentation: . is for general information purposes only, and is not an offer or invitation for subscription, or purchase of, or a recommendation to invest in Tyro securities; should be read in conjunction with, and is subject to, Tyro's latest and prior interim and annual reports, including Tyro's Interim Financial Report for the period ended 31 December 2022, and Tyro's market releases on the ASX; includes forward-looking statements about Tyro and the environment in which Tyro operates, which are subject to uncertainties and contingencies outside of Tyro's control and Tyro's actual results or performance may differ materially from these forward looking statements; • includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; may contain information from third parties believed to be reliable, but no representations or warranties are made as to the accuracy or completeness of such information; and includes non-IFRS measures as Tyro believes these measures provide useful information for readers to assist in understanding Tyro's financial performance. Non-IFRS financial measures do not have a standardised meaning and should not be viewed in isolation or considered as substitutes for measures reported in accordance with IFRS or Australian Accounting Standards. These measures have not been independently audited or reviewed. All information in this presentation is current at 31 December 2022, unless otherwise stated. All currency amounts are in Australian dollars, unless otherwise stated. Due to rounding, numbers in this presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 2#3tyro CEO Overview Jon Davey#4A Rejuvenated Tyro Growth Profitability Delivery + Innovation Leadership • tyro Transaction value growth + 37% | Merchant number growth + 9% | Gross profit growth +40% Lending origination growth + 101% Distribution through iconic Australian retailers - Telstra + Australia Post $11 million annualised benefit - cost reduction program • 79.6% operating leverage Positive free cash flow $0.6 million • Statutory net profit $1.1 million Tyro Go launched + Tyro Pro in beta testing Automated on-boarding live Tyro.com enhanced for banking Fiona Pak-Poy elected Chair of the Board Renewed Board - ASX leading board diversity Jon Davey, Tyro Group CEO + new CTO, CPO and Health appointments 4#5Tyro's Value Proposition 4 1 3 999 1. Focus on Industry Verticals Industry specific features and services (eg. Pay@Table, Split Bills, Tipping, BarTab/GuestTab and Health Claiming) Merchant and industry knowledge and recognition Close of day for settlement and billing based on merchant trading days 2 2. Direct Integration to POS Systems • Largest number of direct Point of Sale system integrations - over 330 direct POS integrations Benefits to merchants - greater choice | quick and easy set-up | speed of processing | elevated levels of security | ease of reconciliations 99 3. Banking Licence Only specialised payment provider in Australia with an unrestricted banking licence Ability to provide our own value-adding banking products, including interest-bearing deposit accounts, lending products together with our core payments offering Enables merchants to receive their daily settlements from Tyro on a T+1 basis - Same day with a Tyro Bank Account 4. Local 24/7 Support Australian based customer team offering 24/7 support Serve over 66,800 Australian merchants and provide telephone and digital support 5#6Payments Opportunity 5.4% market share growing at 6x market growth Annual transaction value of card payments acquired in Australia¹ ($'billion) - as at 31 December 2022 Tyro's estimated market share of total card payments acquired in Australia - as at 31 December 2022 ~5.4% market share $741b 4.8% CAGR (31 Dec 2017 31 Dec 2022) ~20.3% segment share ~$197b Health, Hospitality and Retail SMEs tyro = 5.4% 4.4% 3.2% 3.0% 2.4% 2.0% 1.8% 1.5% $670b $658b $654b $634b $585b $546b $510b $7.7b $15.4b $11.9b $9.6b $20.0b $21.2b $29.2b $741b 5-year CAGR of total card payments $40.1b CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 Card payments in Australia Tyro transaction value Tyro market share of total card payments 1 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. 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 31 December 2022 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 31 December 2017 to 31 December 2022) to determine a figure as at 31 December 2022. 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 CY22 transaction value. Source: Internal management estimates based on available RBA statistical data available at time of results in Australia - 4.8% 5-year CAGR of Tyro's annual transaction value - 27.6% Tyro growth outpacing market by 6x CO 6#71 Banking Opportunity Total merchants vs. activated accounts 66,884 Total Merchants 6,400 activated Tyro bank accounts <10% Tyro Bank Account Customer Penetration Targeting 20% Banking contribution to Group gross profit by FY27 Banking contribution to Group gross profit 4.4% 3.5% 2.4% 1.4% FY20 FY21 FY22 H1 FY23 20.0% FY27 Interest income on lending product¹ 24.4% Average annualised 18.9% interest income on loans Average annualised interest income on loans H1 FY22 H1 FY23 Significant Opportunity to Grow Banking Business 6,400 activated accounts - <10% of the total merchant base $95.0 million in deposits from 6,400 activated accounts 1,538 total loans drawn down in the period (H1 FY22: 879) - average loan size of ~$47,300 Over 25,000 open but inactive accounts Ability to fund lending + working capital at a stable and attractive cost of funding Access to merchant deposits from an unrestricted banking licence Comparative cost of funding from deposits significantly cheaper than warehouse type funding arrangements Interest income on the lending product is calculated as interest income on loans divided by the average monthly loan balance. ས 7#8AusPost Distribution General Availability (Health Integrated) Enhanced Vertical Specific Product Features Immediate Strategic Priorities PRICING OPTIMISATION PRODUCT INNOVATION General Availability Tyro Go Roll-out to Bendigo Tyro Pro Merchant trial General Availability (non-integrated) Digital Health Cards Banking Telstra Distribution General Availability (Integrated) Android Devices iOS Devices Access to Tyro Web Banking Customer Engagement Zero Cost Acquiring Least Cost Routing Pricing Portfolio Management New Zero Cost Acquiring Product to be Developed for Merchants Looking to Recover Full Cost of Acquiring Enable Least Cost Routing as the Default Option for all Cost+ Customer Profitability Analysis Merchants Customer Repricing and On- Going portfolio management OPERATING EFFICIENCY Operating Costs Cost Reduction Program Automated On- Boarding Digital Self- Service Operating Model Automated On-boarding of new Tyro Go Merchants Terminal Activation Automated On-boarding of Tyro Pro and existing Y-series Terminals Account Management New Operating Model to Drive a Culture of High Performance and Strategic priority delivered on time + performing in-line with expectations Delivery Strategic priority in progress Strategic priority in planning and development phase 80#9H1 FY23 Performance Transaction Value $21.7B 37% GROWTH ON PCP STRONG BALANCE SHEET $0.6M Merchants 66,884 POSITIVE FREE CASH FLOW FOR H1 FY23 H1 FY22: Negative $27.1M H2 FY22: Negative $6.4M Bendigo Transaction Value $2.8B 11% GROWTH ON PCP Churn 9% GROWTH ON PCP 16% GROWTH FOR TYRO CORE Gross Profit $95.2M 40% GROWTH ON PCP ACHIEVEMENT OF STATUTORY NET PROFIT $1.1M H1 FY22: Loss $18.1M H2 FY22: Loss $11.5M Loan Originations 8.9% transaction value churn EBITDA $19.5M H1 FY22: $2.8M +H2 FY22: $7.9M H1 FY23 OPERATING LEVERAGE 79.6% H1 FY22: 95.9% H2 FY22: 90.2% 9.0% TRANSACTION VALUE CHURN IN H1 FY22 $72.7M 101% GROWTH ON PCP Value of Banking licence evident as business scales activated 6,400 accounts SIGNIFICANT OPPORTUNITY FOR GROWTH WITH ONLY 10% OF MERCHANT BASE ACTIVATED FOR BANKING#10Payments Business - Overview Transaction Value ($'billion) Merchant Numbers¹ (#) 1 H1 FY18 H1 FY23 CAGR +27% 37% 31% $21.7b 10% 30% 31% 24% $12.1b $11.1b $8.5b $6.5b $5.3b $15.8b Merchant Churn (%) 9% 68% 13.7% Bendigo 16,717 11.9% H1 FY18 H1 FY23 CAGR +26% 11.8% 12.0% 11.7% Bendigo 18,236 13% Tyro 50,167 10.2% 10.1% 23% 27% Tyro 43,318 36,720 23% 32,450 26,351 Churn by merchant numbers Churn by transaction value 20,778 16,943 liill 9.3% 9.0% 8.9% 8.0% 7.7% H1 FY17 H1 H1 H1 FY18 FY19 H1 FY20 FY21 H1 FY22 H1 FY23 H1 FY17 H1 FY18 H1 FY19 FY20 H1 H1 FY21 H1 FY22 H1 FY23 H1 H1 FY17 FY18 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 • Strong transaction value growth - up 37% Record half-year growth 5-year CAGR at 27% Benefit of external factors COVID lockdowns inflation and absence of Tyro core transaction value $18.9 billion - up 42% with average merchant size of ~$750,000 Bendigo transaction value $2.8 billion - up 11% with average merchant size of ~$350,000 Hospitality up 60% | Health up 32% | Retail up 24% Debit cards and LCR 49% | Credit cards 39% | EFTPOS 10% | International 2.3% Tyro core merchant growth - up 16% 8,473 new applications (H1 FY22: 7,391) - Tyro Core generating 7,583 + Bendigo 890 of applications Record monthly new applications received in August 2022 -1,603 H1 FY23 averaging ~1,400 per month Strongest growth in Health up 24% Largest Tyro core vertical by merchant number Hospitality with 34% followed by Health (29%) and Retail (22%) Micro 29% | Small 55% | Medium 13% | Large 3% Industry leading low transaction value churn - 8.9% Transaction value churn of 8.9% down from 9.0% in H1 FY22 Merchant number churn of 11.7% up from 10.1% in H1 FY22 The Bendigo customer base decreased by 1,519 merchants, however that decrease includes approximately 1,000 merchants who were in transit at reporting date and were neither recorded on Bendigo or Tyro systems. 10#11Banking Business Loan Originations ($'million) 1 - H1 FY19 H1 FY23 CAGR +37% - 227% $10.5m Overview 101% 1,279% $72.7m 82% 97% $37.4m $36.2m (93%) $20.6m $3.2m H1 H1 FY17 FY18 H1 FY19 H1 FY20 $2.6m H1 FY21 H1 H1 FY22 FY23 Merchant Deposits - Transaction and Term Deposit Accounts ($'million) $21.6m $41.6m $104.0m $100.8m $95.0m $9.5m $2.2m H1 FY17 H1 FY18 H1 FY19 H1 H1 H1 H1 FY20 FY21 FY22 FY23 • Record lending originations of $72.7 million - up 101% Lending originations averaging ~$3 million per week Interest income of $5.2 million (pcp: $1.8 million) Net interest margin¹ averaging 23.2% (pcp: 17.6%) Lending loss to originations well managed - 1.2% (pcp: 0.3%) Total loans held at 31 December 2022 - $44.5 million (30 June 2022: $39.5 million) Average loan drawdown ~$47,300 (pcp: $41,200) Average tenure of loans - 6 months Positive growth in activated accounts - up 5.4% 6,400 activated accounts (pcp: 6,074) Significant opportunity for growth with only ~10% of merchant base activated Average balance of ~$14,000 per transaction account Average balance of ~$60,500 per term deposit account Average interest rate on transaction account of 1.07% (pcp: 0.25%) Average interest rate on term deposit account of 2.24% (pcp: 0.70%) Deposits of $95.0 million provides headroom for future loan-book growth 11 Net interest margin is calculated as interest income on loans less interest expense on deposits divided by the average monthly loan balance before fair value adjustments.#12tyro Detailed Financial Performance Prav Pala, CFO#13Key Financial Performance Metrics Gross Profit ($'million) $95.2m $80.4m $68.1m $58.6m EBITDA ($'million) $5.7m $2.8m $7.9m $19.5m Free Cashflow - before Banking ($'million) ($27.1m) $0.6m ($6.4m) ($46.0m) H2 H1 H2 H1 H2 H1 H2 H1 H2 FY21 FY22 FY22 FY23 FY21 FY22 FY22 FY23 FY21 H1 FY22 H2 FY22 H1 FY23 13#14Financial Performance Analysis H1 FY23 H1 FY22 GROWTH PAYMENTS BUSINESS $'000 $'000 % Revenue 209,423 145,984 43.5% H1 FY23 $'000 H1 FY22 $'000 GROWTH % Less: Interchange, scheme, integration + support fees (117,492) (77,926) 50.8% Transaction value 21,693,388 15,826,286 37.1% Gross profit (statutory) 91,931 68,058 35.1% Payments revenue and income 209,423 145,984 43.5% Less: Bendigo gross profit share (4,377) (4,446) 1.6% Add: Bendigo support fees 693 1,350 48.7% Banking revenue (including fair value gain/(loss)) 4,461 2,561 74.2% Gross profit2 (normalised) 88,247 64,962 35.8% Other revenue and income¹ (normalised) 2,706 667 306.2% Revenue¹ (normalised) 216,590 149,212 45.2% Less: Direct expenses (117,746) (78,053) 50.9% H1 FY23 BANKING BUSINESS Less: Bendigo gross profit share and support fees² (3,684) (3,096) 19.0% $'000 H1 FY22 $'000 GROWTH % Gross profit² (normalised) 95,160 68,063 39.8% Interest income 5,237 1,833 185.6% Less: Operating expenses (excl. share-based payments) (75,704) (65,291) 16.0% Fair value (loss)/gain on loan (776) 728 206.6% EBITDA³ (normalised) 19,456 2,772 601.0% Revenue 4,461 2,561 74.2% Less: Share-based payments expense (3,970) (3,720) 6.7% Less: Depreciation and amortisation (11,625) (9,949) 16.8% Less: Interest expense on deposits Gross profit (254) (127) 99.0% 4,207 2,434 A 72.9% EBIT (normalised) Less: Net interest expense 3,861 (740) (10,897) 135.4% (296) 150.6% H1 FY23 Profit/(loss) before tax (normalised) 3,121 (11,193) 127.9% OTHER REVENUE AND INCOME $'000 H1 FY22 $'000 GROWTH % Investment income 2,971 336 783.7% Other revenue and income Less: me&u fair value gain Gross profit2 (normalised) 3,709 331 1,020.5% (3,974) 2,706 667 100.0% 306.2% 1 2 3 4 Normalised other revenue and income is adjusted for the fair value gain of $4.0 million on the recognition of me&u as a financial asset. Normalised gross profit is adjusted for Bendigo support fees of $0.7 million associated with transition of Bendigo merchants to the Tyro platform, the Bendigo gross profit share of $4.4 million not deducted from statutory gross profit but deducted to calculate normalised gross profit and a fair value gain on the recognition of me&u as a financial asset. Refer to page 18 for a reconciliation of statutory to normalised 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 losses from associates, change in accounting treatment of investments and one-off costs to implement the cost reduction program and any M&A related spend. Refer to page 18 for a reconciliation of statutory to normalised results. EBIT and normalised net profit before tax excludes the non-cash accounting impact of the Bendigo Alliance, expenses associated with the change in accounting treatment of investments and one-off costs to implement the cost reduction program and any M&A related spend. Refer to page 18 for a reconciliation of statutory to normalised results. 14#151 Margin Analysis Tyro Core Payments Business¹ Margins as a proportion of Transaction Value (bps) 100.0 95.0 91.2 87.5 88.0 90.0 84.0 85.0 81.6 80.8 79.7 80.0 75.0 70.0 65.0 60.0 55.0 50.0 44.8 43.4 42.3 42.9 42.4 45.0 41.3 41.3 40.0 36.0 > 33.0 33.5 33.3 33.4 35.0 31.3 32.2 30.0 25.0 20.0 15.0 10.0 5.0 H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 MSF Net MAF Margin Payments Gross Profit Margin Tyro Core Payments business consists of Tyro merchants inclusive of Medipass merchants from 31 May 2021 (excluding Bendigo). MSF up 4.0bps on H2 FY22 and 7.2bps on H1 FY22: > > Implemented price increases in March 2022 and September 2022 to account for scheme and interchange fee increases from Q4 FY22 Addition of new micro and small merchants driving MSF up Net MAF up 0.1bps on H2 FY22 and 1.2bps on H1 FY22: > > Benefit of price increases flowed through to net MAF Countered by increase in international card usage at a higher direct cost International cards represent 2.3% of total transaction value for H1 FY23 compared to 0.6% in H1 FY22 and 1.5% in H2 FY22. Gross profit margin maintained: > > Payments gross profit margin diluted due to fixed terminal rental income over increased transaction value for the period Total H1 FY23 terminal rental of $16.9 million - up 11% compared to transaction value up 37% 15#16Achieving Operating Leverage Gross Profit (normalised) 116.4% $56.0m 114.2% $69.1m 110.3% 104.7% $93.5m $83.3m 92.8% 88.2% $119.7m FY17 FY18 FY19 FY20 FY21 1 Refer to page 21 for FY23 Guidance. $148.5m FY22 79.6% 79% $95.2m ~$187m to -$191m H1 FY23 FY23 > Operating Expenses to Gross Profit Margin Guidance¹ Operating Expenses ($'million) 24% 11% 4% $75.7m $72.5m $65.3m H1 FY22 H2 FY22 H1 FY23 tyro 16#17Achieving Positive Free Cash Flow Free Cash Flow¹ $'000 H1 FY23 FY22 $'000 EBITDA 19,456 10,667 Capital expenditure (17,024) (33,482) Rent (2,788) Redundancy payments (1,240) Remediation (221) (5,041) Bendigo payment (3,536) Other (388) 633 Free Cash Flow 583 (33,547) Free cash flow is calculated before changes in banking funds and timing differences relating to net scheme receivables. It is calculated as EBITDA before share based payments adjusted for non-cash items in Tyro's working capital movements, statutory adjustments (including rent payments) and capital expenditure including internally generated intangibles. Terminal capital expenditure includes both new and replacement terminals. tyro 17#18Reconciliation of Statutory to Normalised Results NORMALISATION ADJUSTMENTS H1 FY23 STATUTORY BENDIGO ALLIANCE GROSS PROFIT SHARE $'000 Total revenue Payments direct expenses Interest expenses on deposits Total direct expenses Gross profit BENDIGO ALLIANCE TRANSITIONAL INVESTMENT IN ASSOCIATES & $'000 220,564 (117,492) (4,377)¹ 6932 (254) (117,746) (4,377) 693 102,818 (4,377) 693 (3,974) COSTS $'000 MINORITY INTERESTS $'000 COST REDUCTION PROGRAM AND M&A $'000 H1 FY23 NORMALISED $'000 (3,974)7 216,590 (121,176) (254) (121,430) 95,160 Operating expenses: Employee benefits expense (excl. share-based payments) (48,933) 1,2403 (47,693) Contractor and consulting expenses (8,764) 1,0054 Administrative and other expenses (16,387) 8834 Marketing expenses (3,609) Operating expenses before lending and non-lending losses (77,693) 3,128 (7,759) (15,504) (3,609) (74,565) Lending and non-lending losses (1,139) (1,139) Total operating expenses (78,832) 3,128 (75,704) EBITDA 23,986 (4,377) 693 (3,974) 3,128 19,456 Share-based payments (3,970) (3,970) Share of losses from associates 132 (132) Depreciation and amortisation (17,213) 5,5885 (11,625) EBIT Net interest expense Net profit before tax 2,935 1,211 693 (4,106) 3,128 3,861 (1,835) 1,0956 (740) 1,100 2,306 693 (4,106) 3,128 3,121 Summary of adjustments 1. Bendigo Alliance gross profit share - reflects economic reality of transaction and is treated as a commission in normalised results. 2. Bendigo Alliance transition fees payable in the interim period while merchants are transferred from the Bendigo platform to the Tyro platform. 3. Employee redundancy costs incurred as part of the cost reduction program 4. One-off costs incurred relating to change of control offers received 5. Amortisation accounted for at the completion of the Bendigo Alliance on a straight line basis over a 10-year period. 6. Non-cash interest accounting charge relating to the Bendigo Alliance. 7. Recognition of me&u investment as a financial asset at fair value instead of an investment in associate. 18#19Trading Update¹ PAYMENTS BUSINESS: • Strong start to H2 FY23 Transaction value 1 January 2023 to 24 February 2023 - $6.3 billion, up . 23% on pcp > Victoria ↑ 27% > NSW ↑ 28% Queensland ↑ 24% > WA ↑ > SA ↑ 22% 44% > Other (includes Bendigo Alliance) ↑ 5% BANKING BUSINESS: • Loan originations 1 January 2023 to 24 February 2023 - $22.5 million, up 30% on pcp GROUP: • Normalised gross profit for January 2023 up 39% to $15.4 million (pcp: $11.1 million) • EBITDA for January 2023 - $3.6 million • Operating leverage for January 2023 - 76.6%² ....1234 tyro 45482% Both the months of December and January typically have a lower expense base as leave provisioning credits are taken to the Statement of Profit and Loss. The operating leverage is not indicative of performance for the remainder of the year. 19 1 These numbers are based on unaudited management accounts that have not been independently reviewed or verified. 2#20FY23 Guidance Re-Affirmed¹ Earnings guidance range for FY23¹: Transaction Value² FY23 GUIDANCE RANGE Positive Free Cash Flow¹: $42.5 billion to $43.5 billion Gross profit³ (after Bendigo commission) $187 million to $191 million Targeted operating leverage ~79% EBITDA5 (before share-based payments) $37 million to $41 million Targeted EBITDA margin ~21% tyro Targeting positive free cash flow exiting FY23 (after all operating expenses + capital expenditure) 1 This FY23 guidance includes forward-looking statements. Refer below. 2 H1 FY23 had 3 national public holidays while H2 FY23 has 8 national public holidays 3 4 5 6 Gross profit is stated as normalised gross profit, namely adjusted for Bendigo Alliance support fees associated with transition of Bendigo merchants to the Tyro platform. Bendigo gross profit share is not deducted from statutory gross profit but deducted to calculate normalised gross profit. Operating leverage is measured as operating costs (including lending and non-lending losses) divided by gross profit (after Bendigo commission). Tyro uses EBITDA as a non-IFRS measure of business performance, which excludes the non-cash impact of share-based payments expense, share of losses from associates, and other significant one-off costs. Free cash flow is calculated before changes in banking funds and timing differences relating to net scheme receivables. It is calculated as EBITDA before share based payments adjusted for non-cash items in Tyro's working capital movements, statutory adjustments (including rent payments) and capital expenditure including internally generated intangibles. Terminal capital expenditure includes both new and replacement terminals. Forward-Looking Statements Tyro's financial expectations and guidance included in this announcement are subject to there being no material deterioration in market or macroeconomic conditions, and are based on a number of key assumptions which may not prove to be correct, or which may change over time, including no lockdowns, no material changes to current business plan and no material change in the regulatory environment. During the ordinary course of business, the Group is exposed to credit risk, operational risk, market risk and liquidity risk. For details on the management of these risks, please refer to the Annual Report including the Financial Report for the year ended 30 June 2022. Certain statements contained in this announcement are forward-looking statements or statements about future matters, including indications and expectations of, and guidance and outlook on, the future earnings, financial position and/or performance of Tyro. These statements are based on information available as at the date of this announcement, and involve known and unknown risks and uncertainties and other factors (many of which are beyond the control of Tyro). No representation is made or guarantee given that the occurrence of any of the events expressed or implied in these statements will actually occur. Actual future events may vary from these forward-looking statements and it is cautioned that undue reliance should not be placed on any forward- looking statement. 20 20#21OW! 023 Karipi APPENDIX Supporting Supplementary Information Jeans for Genas RIMUT Jeans Genes Volunteer 8 Juons for Cand VOLUNTEER DINESH (AN) TIN LUMI NEED YOUR HELP G for Const $5 NEED YOUR HELP $5 19 SE REEL AQTU#22Financial Position Balance Sheet Reflective of Prudent Capital Management Cash + Financial Investments Total cash and FRNs of $117.4 million (30 June 2022: $122.8 million) Movement of negative $5.4 million in cash and FRNs reflecting: positive free cash flow of $0.6 million $5.1 million inflow from banking cash flows + $2.0 million inflow primarily from the redemption of a convertible note offset by outflow of $13.1 million relating primarily to timing differences in net scheme receivables Other current assets Increase in other current assets of $32.6 million primarily reflective of an increase in scheme and other receivables Capital Expenditure H1 FY23 capex on terminals of $10.2 million (H1 FY22: $8.8 million) - continued roll- out for Bendigo fleet + roll-out of Tyro Go and Tyro Pro Capitalisation of software development costs of $6.6 million (H1 FY22: $2.2 million) Depreciation and amortisation for H1 FY23 of $17.2 million (H1 FY22: $15.5 million) - increase on a statutory basis mainly reflects depreciation on increased terminal fleet and amortisation of additional software development costs - Depreciation and amortisation on a normalised basis - $11.6 million (H1 FY22: $9.9 million) FY23 full year capex expected to be in line with previous guidance $35 million Other current liabilities Increase in other current liabilities of $21.4 million reflective of $19.7 million increase in the merchant clearing account and scheme, interchange and commission fees payable 31 DEC 2022 $'000 30 JUN 2022 $'000 ASSETS Cash¹ Loans to merchants Financial investments . 51,438 51,583 44,464 39,504 69,948 72,695 > Property, plant and equipment 45,081 41,452 Intangible assets and goodwill 130,093 132,033 Right of use assets 29,343 31,158 > Other current assets 59,339 26,735 Other non-current assets 15,059 14,928 TOTAL ASSETS 444,765 410,088 LIABILITIES Customer deposits 95,011 Commissions payable to Bendigo Bank 89,855 83,273 92,781 Other current liabilities 62,007 40,626 Non-current liabilities 32,516 33,808 • TOTAL LIABILITIES 279,389 250,488 NET ASSETS 165,376 159,600 Contributed equity 279,422 Accumulated losses and reserves (114,046) 278,798 (119,198) • TOTAL EQUITY 165,376 159,600 1 Cash includes all cash and cash equivalents and amounts due from other financial institutions 22 22#23Liquidity + Capital Adequacy Analysis 143% $186m $173m $165m 73% $115m $84m $115m 45% 39% 34% $78m $76m $72m H1 FY21 H2 FY21 H1 FY22 H2 FY22 Total regulatory capital Total Risk Weighted Assets $220m H1 FY23 Total Capital Ratio Liquidity Total cash and investments of $117.4 million (30 June 2022: $122.8 million) Sufficient to support the Group through to positive free cash flow exiting FY23 Total Capital Ratio Total capital ratio of 34% at 31 December 2022. Movement from 39% at 30 June 2022 reflecting: > > $31 million increase in net scheme receivables at 31 December 2022 increase in lending book ($44.5 million versus $39.5 million at June 2022) Total Capital Ratio significantly above APRA Prudential Capital Requirement Positive impact on capital ratio following Tyro adopting new Basel III capital requirements from 1 January 2023 - pro forma total capital ratio of 39% at 31 December 2022 under new Basel III capital requirements Capex FY23 full year capex expected to be in line with previous guidance $35 million 23#24Reconciliation of Free Cash Flow to Statutory Cash Flow from Operating Activities tyro H1 FY23 FY22 $'000 $'000 Free cash flow¹ (before banking) Add back: Bendigo payment Add back: Rent Add back: Capital expenditure (excluding terminals) Less: Timing differences in net scheme receivables 583 (33,547) 3,536 2,788 5,826 20,653 (13,059) (2,451) Net cash flows used in operating activities excluding loans and deposits (6,650) (9,021) 1 Free cash flow is calculated before changes in banking funds and timing differences relating to net scheme receivables. It is calculated as EBITDA before share based payments adjusted for non-cash items in Tyro's working capital movements, statutory adjustments (including rent payments) and capital expenditure including internally generated intangibles. Terminal capital expenditure includes both new and replacement terminals. 24 24#25Operating Cost Base Analysis H1 FY23 H1 FY22 Growth $'000 $'000 % Operating expenses¹ (excl. share-based payments) - H1 FY23 vs. H1 FY22 Operating expenses¹: $3.8m Employee benefits expense (excl. share-based payments) 47,693 45,113 5.7% $4.6m Contractor and consulting expenses 7,759 5,705 36.0% $65.3m Administrative and other expenses 15,504 10,965 41.4% Marketing expenses 3,609 2,998 20.4% Lending and non-lending losses 1,139 510 123.3% Total operating expenses 75,704 65,291 16.0% Employee benefits expense up 5.7% reflecting: > Full period impact of prior period remuneration reviews > Headcount reductions made in October 2022 benefiting November and December 2022 > 24 permanent roles made redundant | 31 contractors off-boarded Contractor and consulting expenses up 36.0% reflecting: > Increased cost for contractors working on Tyro Go and Tyro Pro prior to projects going live Administrative and other expenses up 41.4% reflecting: > $2.0 million increase in terminal management and logistics due > $1.4 million increase in new licences including investment in cyber-security and hosting Lending + non-lending losses up 123.3% reflecting: > $0.9 million in lending losses (H1 FY22: $0.1 million) - still well within risk appetite > $0.2 million in non-lending losses (H1 FY22: $0.4 million) Operating expenses excludes one-off costs to implement the cost reduction program and any M&A related spend. Refer to page 18 for a reconciliation of statutory to normalised results. H1 FY22 Operating Expenses¹ Increase in H1 FY23 employee, contractor + consulting Increase in H1 FY23 terminal management + logistics and other operating costs costs $1.4m Increase in H1 FY23 software licencing costs $0.6m $75.7m Increase in H1 FY23 lending and non-lending losses H1 FY23 Operating Expenses¹ 25#26Payments Business - Supplementary Information 1. Geographical Performance (Tyro core only): tyro Geographical Transaction value performance NSW Victoria Queensland Western Australia South Australia Tasmania ACT NT H1 FY23 $'million H1 FY22 $'million GROWTH PROPORTION OF % TYRO CORE TV (%) 2. Performance by Vertical (Tyro core + Bendigo): 6,776 4,253 59% 36% 4,467 2,941 52% 23% 4,125 3,294 25% 22% 1,839 1,550 19% 10% 807 601 34% 4% 335 295 14% 2% 392 257 53% 2% 169 129 31% 1% GROWTH H1 FY22 (#) % H1 FY23 $'million H1 FY22 $'million GROWTH % PROPORTION OF TOTAL TV (%) MERCHANT COUNT H1 FY23 (#) Performance by Vertical Hospitality 9,286 5,804 60% 43% 17,072 15,246 12% Retail (now excludes pharmacy) 5,508 4,427 24% 25% 10,783 9,990 8% Health (including Medipass and pharmacy) 2,527 1,914 32% 12% 14,306 11,549 24% Service/Other 1,589 1,175 35% 7% 8,006 6,533 23% Bendigo 2,783 2,506 11% 13% 16,717 18,236 (8%) 26#27Payments Business - Supplementary Information (cont.) 3. Payments Card Mix (Tyro core only): FY20 to H1 FY23 Period prior to the impact of COVID-19 5.0% Proportion of 4.2% International 3.4% Transaction Vaue COVID-19 lockdown impacted period tyro Absence of COVID-19 lockdowns 1.8% 1.7% 1.4% 1.7% 1.9% 2.8% 2.6% 2.3% 1.9% 2.0% ………………….............. 1.0% 1.1% 0.8% 0.8% 0.7% 0.8% 0.8% 0.8% 0.9% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 0.5% 0.5% 63% 63% 63% 62% 62% 62% 62% 62% 62% Proportion of 61% 61% 61% 61% 60% 60% 60% 61% 60% 60% 60% 61% 60% 60% 60% 59% Debit Card 58% Transaction Vaue 57% 57% 60% 61% 60% 60% 60% 59% 57% 57% Jan 2020 Feb 2020 Mar 2020 Apr May Jun Jul Aug Sep Oct Nov 2020 2020 2020 2020 2020 2020 2020 2020 Dec 2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 2022 4. Breakdown of Pricing Structure (Tyro core only): By Transaction Value H1 FY23 By Merchant Numbers H1 FY22 H1 FY22 H1 FY23 Cost + 44% 44% 11,994 11,503 Blended/normalised 56% 56% 38,173 31,815 22 27#28Investor Relations contact details: Giovanni Rizzo Phone: +61 (0) 439 775 030 Email: [email protected] Address: 18/55 Market St, Sydney NSW 2000 Company website: https://investors.tyro.com