#1FY21 INVESTOR PRESENTATION 26 AUGUST 2021 Tyro Payments Limited ABN 49 103 575 042 tyro tyro ENG tyro tyro ° 19 worldine tyro tyro 390000 ТУН ONIDA#2Our Purpose Setting businesses free to get on with business by simplifying payments + banking solutions Our Mission We eliminate friction with payments + banking solutions, that: Businesses trust Partners advocate Employees are proud of Our community Our Vision To be Australia's: fastest growing most loved + trusted sustainable payments + business banking partner "We are a tech company providing payments + business banking - taking on the big guys" backs 2#3Delivering 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: Significant uplift in transaction value to $25.5 billion (IPO: $17.5 billion) Significant increase in merchants to 58,186 (IPO: 29,031) Sizable addressable market remains - TAM share 3.8% (IPO: 2.7%) Prompted brand awareness spike to 20% (IPO: 10%) Transformational Tyro | Bendigo Bank Alliance completed Acquisition of Medipass to build out our health solution Tyro Connect POS integration hub gaining traction me&u 'tap, order and pay in app' solution a major eCommerce opportunity Launch of Open Banking Paypa Plane - innovative platform for recurring payment opportunities Current offering Planned offering Deposits Merchant Cash Advance Card-Not- Present Simple Multiple Types Tyro Connect Tyro Community In-app Integrated PAYMENTS Reliable Card- Present Secure Fast Recurring Brand / Products 3 Other New Features#4Addressable Market Opportunity Remains Significant Annual transaction value of card payments acquired in Australia ($ billion) 3.8% 3.0% 2.7% 2.2% 1.9% 1.6% 1.4% $490b $6.8b $676b $660b $651b $607b $566b $529b $13.4b $10.6b $8.6b $17.5b $20.1b $25.5b | 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 FY15 FY16 FY17 FY18 FY19 FY20 FY21 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. Card payments in Australia Tyro transaction value Tyro market share of total card payments 4#5MEDIUM TERM TARGET Leveraging Our Scalable Platform to Accelerate Growth Tyro is well positioned to continue to accelerate growth over the medium term. 1 3 2 Tailored payment solutions for verticals drive strong merchant base and transaction value growth Delivering benefits of scale Strategic partnerships with large organisations Gross profit 116.4% 114.2% 110.3% 104.7% 96.1% Number of merchants Transaction value 89.7% 88.2% CAGR - 59% CAGR - 29% 58,186 $25.5b 29,031 $17.5b $32.8m $69.1m $56.0 $46.2m $83.3m $93.5m FY15 IPO FY21 IPO FY21 FY16 FY17 FY18 FY19 FY20 Operating expenses to gross profit margin $119.7m FY21 Normalised results. Bendigo Bank Powered by tyro Other organisations 4 Strategic investments to enhance our platform's capability me&u + Medipass Add new verticals Increase share in existing verticals Increase share of TAM beyond current 3.8% Operating leverage as platform continues to scale Will underpin EBITDA growth and margin expansion Explore opportunities to partner with other organisations to deliver step change in segment share gains Paypa Plane 'Bolt on' opportunities/ partnerships/investments to enhance merchant solutions remain in appetite Demonstrated capability post IPO 5 сл#6MEDIUM TERM TARGET Leveraging Our Scalable Platform to Accelerate Growth (cont.) 5 Expansion in eCommerce and other payment types 6 Cross-sell opportunities represent upside potential Launch of eCommerce in March 2019 Interest income on loans Merchant deposits $75.5m Transaction value up 536% in FY21 Tyro Connect me&u DOORDASH Google MARSELLO RITUAL BOTTY LOOP BumBag Chappy $2.9m $4.2m $26.9m $2.0m $50.5m Launch of AliPay in October 2018 FY19 FY20 FY21 FY19 FY20 FY21 Transaction Merchant Value Count 7 Continued expansion into new verticals 26% (10,201) 35% (13,952) 25% (9,803) 14% (5,740) 11% 45% ($2.8b) ($11.3b) Health Hospitality Retail Other The data only relates to Tyro merchants and excludes Bendigo merchants 35% ($8.7b) 8% ($2.1b) Alipay Enhance offerings leveraged to growth in shifting consumer preferences including eCommerce, alternative payments, ISVs/in-App Contribution from adjacent banking products and growth in lending to accelerate as economy normalises 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 CO 6#71 2 3 up 26% $25.5 B FY21 Financial Highlights - Record Results Delivered | ↑ 26% in transaction value to record $25.5 billion (FY20: $20.1 billion) ↑ 81% in merchants choosing Tyro reaching 58,186 (FY20: 32,176) ↑ 28% gross profit to record $119.4 million (FY20: $93.5 million) Operational leverage - operating costs¹ controlled - ↑ 7.9% vs. gross profit 128% ↑ 424% in EBITDA² to a record $14.2 million (FY20: Loss of $4.4 million) Transaction Value $20.1 B Merchant Numbers 32,176 Gross Profit $93.5 M Liquidity position remains strong - $172.8 million in cash + investments ($188.3 million at 30 June 2020) EBITDA² ($4.4 M) up 81% 58,186 $119.4 M up 28% FY20 FY21 Operating costs accounted for on a normalised basis. Refer to page 9 and page 29. 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 significant one-off costs. Refer to the page 29 for a reconciliation of normalised results to statutory results. Includes merchant deposits of $75.5 million (FY20: $50.5 million) up 424% $14.2 M 7#8FY21 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%) Prompted Brand Awareness • Merchant churn rate of 11.3% (FY20: 11.7%) NPS 21 at 30 June 2021 (30 June 2020: 43) - impacted by connectivity issue Unprompted Brand Awareness 9% eCommerce growth - 1536% to $70 million (FY20: $11 million) 11,813 new merchant applications - averaging ~1,000 per month 1↑13% (FY20: 10,457) Loan originations: • - $25.8 million down 57% (FY20: $60.1 million) ~$20 million originated in the final 3 months of FY21 (pcp: $1.6 million) NPS 21 21 14% FY20 FY21 20% up 6 points 19% up 10 points 43 down 22 points 8#9Results in Overview Transaction Value ↑ 26.4% Gross Profit ↑ 28.1% EBITDA ↑ 424.0% Operating Leverage Achieved STATUTORY NORMALISED¹ STATUTORY FY21 $'000 FY21 $'000 FY20 $'000 GROWTH - NORMALISED FY21 TO FY20 % Payments Business Performance (normalised¹) FY21 $'000 FY20 $'000 GROWTH % Transaction value 25,453,507 20,131,045 26.4% Transaction value Payments revenue and income Lending and investment income 25,453,507 25,453,507 20,131,045 A 26.4% Revenue 230,204 202,826 13.5% Other revenue and income Revenue Less: Direct expenses Gross profit Less: Operating expenses (excl. share-based payments) EBITDA2 229,221 3,222 6,079 238,522 (119,073) 119,449 (122,551) (105,568) 230,204 3,222 202,826 13.5% Gross profit 110,812 86,142 28.6% 1,818 77.2% Banking Business FY21 FY20 GROWTH 6,079 6,031 0.8% Performance $'000 $'000 % 239,505 210,675 13.7% Revenue 3,222 1,818 77.2% (119,771) (117,200) 119,734 93,475 (97,847) 2.2% 28.1% Gross Profit 2,843 1,302 118.4% Operating expenses (excl. share-based payments) - % of gross profit (normalised¹) 7.9% (3,102) 14,166 (4,372) 424.0% Less: Share-based payments expense IPO costs (9,342) (8,779) (10,896) 19.4% 116.4% 114.2% 110.3% 104.7% 96.1% (331) (9,730) 96.6% 88.2% Share of loss from associates (1,119) (1,119) Depreciation & Amortisation (15,364) (15,364) (12,524) 22.7% Bendigo Bank partner revenue share 698 EBIT (29,258) (10,398) (37,522) 72.3% Less: Net interest expense Loss before tax (517) (29,775) (517) (535) 3.4% (10,915) (38,057) 71.3% 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. 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 significant one-off costs. Refer to the page 29 for a reconciliation of normalised results to statutory results. FY16 FY17 FY18 FY19 FY20 FY21 2 6#10• Tyro | Bendigo Bank Alliance • • 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: ✓ card-present transactions ✓ 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 $439.9 million transacted in June 2021 by Tyro | Bendigo Bank Alliance merchants 18,490 Tyro | Bendigo Bank Alliance merchants now serviced by Tyro Number of terminals by banks in Australia¹ ('000) - as at 30 June 2020 (updated for Tyro + Bendigo Bank terminals at 30 June 2021) 244 150 140 132 104 CommBank NAB ANZ Westpac June 2021 Transaction Value share 17% Tyro 24 21 (incl. Tyro Bendigo Bank Alliance merchants) Suncorp June 2021 Merchant # 32% share June 2021 Terminal share 43% OOO 83% Tyro merchants 68% 57% Tyro | Bendigo Bank Alliance merchants 10 1 Source: APRA, Authorised deposit-taking institutions' point of presence statistics, 30 June 2020#11Acquisition 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 P +M +NEM PODICE DINNOITS Invoices +3 PM KA 300 ww AR ede ance Mess+ Unified Multi-Sided Digital Approval + Payments Platform Medipass' digital health payments platform combined with Tyro's card-present solution provides unified health claiming + payments offering - simplify payments + claiming in an extremely complex sector Payment = Claim Significant Scale to Drive our Health Business Enhanced practice management system (PMS) integration 52 Tyro PMS + integrations 18 Medipass PMS integrations Quote ~70 PMS integrations (limited overlap) 9:41 $85.00 Now do you want to pay PRACTICES SERVICE REPORTS ⚫ BUSINESSITTING Pay with Pay $8500 24/01/20 WA $3000 + Medipass 13400 wim Pete's Health $23500 100.00 + NEW INVOICE INVOICES QUOTES $12.00 00.00 Peo PATIENTS $100 So DOCUMENTS 1J-100 BLOO PRACTICES Create a new invoice Select how the service will be paid for Medicare Department of Veterans' Affairs CAPS Allied Private Health Insurance via HICAPS Overseas Health Cover КОМІСАР 20.200 350 50.00 STAFF OHICAPS SERVICES REPORTS icare BUSINESS SETTINGS ndis NDIS icare Workers Insurance Patient funded no insurance MacBook HELP > < 吸 ARGOMEDIPASS.10- ×CLOSE 1 +15% increase in health merchants - limited overlap 9,541 Tyro health + merchants 1,700¹ Medipass health merchants 11.241 (limited overlap) Medipass 20-strong team has joined Tyro's health team to form a new health business unit Includes 1,040 health businesses that use Medipass for digital claiming but do not have a payments settlement relationship with Tyro. 11#12Tyro Connect • Tyro Connect Integration - a hub for apps + POS/PMS systems 000 OOO OOO tyro 1 . 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 • Customer ordering Booking T Logistics Workforce management Loyalty & marketing Reporting & insights 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 POS/PMS integrates Tyro Connect 2-way API platform 4 POS integrations 695,000 transactions processed through platform 124 merchants on platform App integrates 12 Apps signed up . 3 Apps live Piloting a new partnership with a global food delivery platform 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#13me&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 me&u Integrated with 9 leading hospitality POS partners ~30% higher spend per customer using me&u • Merivale Solotel Key hospitality groups using me&u • Howard Smith Wharves • Rockpool Dining Group order & pay. HER Tap, Tap or scan to view our menu. 13#14tyro tyro.com 1300 966 639 worldline YOXIMO tyro 3 def 4 ghi 40 6 mno E 5 pers 280 twy 9 wxyz Menu Stop Corr OK C-E Select a Table Q Print Bi 75 23 22 FY 21 OPERATIONAL REVIEW 2 Table List Refresh 2:21 PM Clerk Settings Restaurant 14#15Payments - Operational Highlights Transaction value Revenue¹ Gross profit¹ MAF margin as a % of Transaction value Step-up in merchant base • FY21 $'000 FY20 GROWTH $'000 % 25,453,507 20,131,045 26.4% 230,204 202,826 13.7% 110,812 86,142 28.6% 0.3437% 0.3205% 2.3bps 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 • 5th 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 churn² 11.3% (FY20: 11.7%) Results in strong transaction value growth Transaction value of $25.5 billion 126% (FY20: $20.1 billion) Excluding Bendigo Bank Alliance contribution of $439.9 million for the month of June 2021 - transaction value 124% - matching 5-year CAGR of 24% eCommerce transaction value of $70.0 million 1536% (FY20: $10.6 million) 1 Refer to page 29 for a reconciliation of normalised results to statutory results. 2 Merchant number churn of 11.3% is based on Merchants confirmed as leaving Tyro, including those merchants that have gone out of business.. Transaction Value ($'billion) Merchants (#) FY16 - FY20 CAGR +30% 58,186 FY16 - FY21 CAGR +24% $25.5b 18,490 $13.4b $10.6b $8.6b $17.5b $20.1b 39,696 32,176 29,031 23,245 18,329 15,565 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Transaction Value Churn (%) Merchant Number Churn (%) 13.0% 12.3% 9.3% 11.7% 11.7% 8.7% 11.3% 8.0% FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 15#16Payments - Operational Highlights (cont.) Improvement in margins driving gross profit 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 134% Retail vertical transaction value ↑18% Health vertical transaction value ↑13% • Geographical transaction value performance Strong performance in geographies outside of NSW and Victoria: - Queensland 139% - Western Australia 138% · South Australia ↑31% . Victoria impacted by numerous lockdowns through FY21 Period prior to the impact of COVID-19 Card mix - FY21 vs. FY20 5.0% 4.4% 4.2% 4.2% Proportion of International 3.9% 3.7% 3.7% Transaction Vaue 3.3% Proportion of 58% Debit Card 57% 57% Transaction Vaue 56% 56% 55% 3.4% Merchant Count Transaction Value 26% (10,201) 35% (13,952) 25% (9,803) 14% (5,740) 11% ($2.8b) 45% ($11.3b) Health Hospitality Retail Other The data only relates to Tyro merchants and excludes Bendigo merchants 35% ($8.7b) 8% ($2.1b) Geographical transaction value performance FY21 ($ billion) FY20 Growth Proportion of FY21 transaction value ($ billion) % % NSW Victoria 9,475 7,873 20% 37% 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% COVID-19 impacted period 0.8% 0.7% 0.8% 0.7% 0.8% 0.7% 0.6% 0.6% 0.7% 0.7% 0.8% 0.9% 0.8% 0.7% 0.7% 63% 63% 62% 62% 62% 61% 61% 61% 61% 60% 60% 60% 61% 60% 60% 58% 57% 57% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apri May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 16#17Impact of Covid on the Business Continued impact of Covid on Payments Business > Lockdowns continue to significantly impact transaction value growth 1 First national lockdown March 2020 to June 2020 Monthly transaction value growth - FY21 vs. FY20 1 Jun 5-year CAGR -24% 55% > 2 Second major lockdown in Victoria - July 2020 to October 2020 May > 3 Various States go into snap lockdowns - January 2021 to February 2021 Apr (38%) > All States open and no lockdowns - March 2021 to June 2021 4 Mar 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 first 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 Feb Jan Dec (18%) 7% 40% 3% 10% 30% 3 11% 27% 19% 27% 13% 29% Nov 2 10% Oct Sep (4%) Aug Jul (30%) 0 32% 5% 31% 31% 11% 30% 30% FY21 FY20 79% 147% 4 60% 90% 120% 150% 17#18Terminal Connectivity Issue . • Issue identified 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 first move Make good program in action: > > > all financially 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 financial impact of terminal connectivity issue FY21 $'000 SAM TAYLOR 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 VISA tyro 18#19Banking - Operational Highlights Loan Originations Revenue Interest income on loans Fair value gain/(loss) on loans Gross Profit Gross Profit margin as % of Revenue Tyro Business Loan FY21 $'000 FY20 $'000 GROWTH % 25,843 60,107 57.0% 3,222 1,818 77.2% 1,952 4,179 53.3% 1,270 (2,361) 153.8% 2,843 1,302 118.4% 88.2% 71.6% 16.6 points Loan originations ($'million) $11.1m $60.1m $52.2m $25.8m $25.2m Lending loss ($'million) 2.7% 2.1% 1.8% 1.6% 1.0% $0.5m $0.4m $0.2m $1.1m $0.7m $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 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 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Impact of Covid on loan originations $7.3m $6.8m $6.3m ° $5.8m ° $6.4m $5.8m $5.4m Lending loss to originations $8.1m $7.3m $7.4m ° $5.1m $6.5m $1.8m $1.0m $0.7m $0.6m $0.2m $0.4m $0.4m $0.6m $0.3m ° 0 $0.8m $0.4m $0.4m ° ° ° Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY21 FY20 19#20Banking - 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: $0.8 million) Product launched to active banking customers in July 2020 60 active accounts Average interest rate 1.01% Delivering on banking innovation Implemented Mambu's cloud-native banking platform in FY21 Tyro becomes one of the first non-major banks to become an active data holder under the Consumer Data Right Awarded the Most Innovative Digital Solution Award recognising Tyro's Business Term Deposit - Australian Banking Innovation Awards Recurring payments to launch in FY22 Merchant deposits - including term deposits ($'million) $26.9m Number of active bank accounts at 30 June 2021 1.3x $75.5m 4,663 $50.5m 3,713 $11.6m $3.9m $0.5m FY16 FY17 FY18 FY19 FY20 FY21 FY20 FY21 Coming soon Awaiting Approval Approve payment of $1,600 to Apollo Catering Ltd? View payments > Banking $10,000.00 xcluding recurring pay & transfers) ved payments: $18,557.90 nt balance PAYMENTS & TRANSFERS Pay & transfer OTHER Recurring pay & transfers Awaiting approval Approved payments Transaction 20 20 20#21OVERVIEW OF FY21 FINANCIAL PERFORMANCE Utiw bib ၁၁ 02 tyro#22Financial Performance - P&L STATUTORY NORMALISED¹ STATUTORY CHANGE FY21 NORMALISED Revenue and income FY21 ($'000) FY21 ($'000) FY20 ($'000) Transaction value 25,453,507 25,453,507 20,131,045 26.4% Payments revenue and income 229,221 230,204 202,826 13.5% Banking income 3,222 3,222 1,818 77.2% Other revenue and income 6,079 6,079 6,031 0.8% > Total revenue 238,522 239,505 210,675 13.7% Payments direct expenses Interest expenses on deposits (118,694) (379) (119,392) (116,684) 2.3% TO FY20 STATUTORY % $4.5 million - JobKeeper ensured no team retrenchments + assisted support to merchants (FY20: $3.9 million) Operating leverage continuing to build Total operating expenses 17.9% vs gross profit ↑28.1% Employee benefits expense ↑11.4% reflecting: > 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 3.1% reflecting: > (379) Total direct expenses (119,073) (119,771) (516) (117,200) 26.6% reduced travel, training and office expenses > 2.2% Gross profit 119,449 119,734 93,475 28.1% Operating expenses: Employee benefits expense (excl. share-based payments) (76,174) (75,365) (67,662) 11.4% > Administrative expenses. (22,903) (16,077) (16,598) 3.1% Contractor and consulting expenses (7,192) (7,192) (5,913) 21.6% > Marketing expenses (5,419) (5,419) (5,716) 5.2% > Lending and non-lending losses (10,863) (1,515) (1,958) offset by increased licencing costs, recruitment costs and growth related expenses Contractor and consulting expenses 121.6% reflect fluid use of contractors to maintain delivery capacity Marketing expenses 5.2%: targeted marketing activity providing increased brand awareness > growth in merchant acquisition of 11.1% Lending and non-lending losses 22.6% to $1.5 million reflecting: $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) 22.6% Total operating expenses (122,551) (105,568) (97,847) 7.9% EBITDA EBITDA¹ (3,102) 14,166 (4,372) 424.0% Share based payments expense (9,342) (8,779) (10,896) 19.4% IPO costs (331) (9,730) > > Share of loss from associates (1,119) (1,119) Net interest expense (517) (517) Depreciation and Amortisation (15,364) (15,364) (535) (12,524) 3.4% Operating leverage significantly increased in FY21 despite COVID-19 and terminal incident Improvement in EBITDA: positive FY21 - $14.2 million at an EBITDA margin to gross profit of 11.8% loss FY20 - $4.4 million Positive operating expense to gross profit margin outcome - 88.2% (FY20: 104.7%) Driven predominantly by growth in transaction value of $5.4 billion 22.7% Bendigo Bank partner share 698 Share-based payments expense Loss before tax (29,775) (10,915) (38,057) 71.3% 19.4% includes $0.6 million in one-time grant of LEPRS partially expensed in FY21 (FY20: $2.4 million) Net loss before tax 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 significant one-off costs. 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) 22#23Operating Metrics Operating Metrics as a % of Transaction Value 1.0000% 0.9500% 0.9292% 0.9000% 0.8500% 0.8000% 0.7500% 0.7000% 0.9531% 0.9403% 0.9269% 0.8953% 0.8075% Merchant Service Fee (MSF) reflects: 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 0.6500% 0.6151% > EBITDA Margin expansion to 11.8% (negative 4.7% in FY20) 0.5905% 0.6000% 0.5559% 0.5377% 0.5436% 0.5379% 0.5365% 0.5500% 0.5170% 0.5283% 0.5251% 0.4861% 0.5000% 0.5170% 0.4704% 0.5065% 0.4500% 0.4759% 0.4643% 0.4000% FY16 FY17 FY18 MSF as a % of Transaction Value -Interchange + Scheme Fees as a % of Transaction Value FY19 FY20 0.4244% 0.4147% FY21 -Operating expenses as a % of Transaction Value Gross Profit as a % of Transaction Value Operating leverage highlighted as gross profit grows Scalability demonstrated despite COVID-19 and terminal incident Operating leverage is highlighted as revenue grows 23 23#24Financial Position 30 JUNE 2021 $'000 30 JUNE 2020 $'000 ASSETS Cash¹ Loans to merchants 103,712 122,190 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 TOTAL ASSETS 396,129 19,056 263,839 LIABILITIES 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 finalised 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 Customer deposits 75,481 Other current liabilities 35,614 50,542 19,351 Commissions payable to Bendigo Bank 102,273 Non-current liabilities 2,097 TOTAL LIABILITIES 215,465 4,227 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 financial institutions 24 24#25TRADING UPDATE tech21 on tyro 25 25#26Trading Update¹ PAYMENTS BUSINESS: • Transaction value to 20 August $3.64 billion, up 24% on pcp > Victoria 148% Weekly Transaction Value Growth - FY22 > NSW 30% > Queensland 112% 40% 35% > WA ↑14% > SA 16% > Other (includes Bendigo Bank Alliance) 1437% 30% 26% 25% 32% 28% 28% 24% 24% 24% 22% 19% • Record eCommerce transaction value achieved for July 2021 - $35.1 million 20% 15% 11% • Tyro | Bendigo Bank Alliance transaction value for July 2021 - $420.2 million 10% 5% • Payments gross profit for July 2021 up 34% to $10.2 million (pcp: $7.6 million) 0 FY21 1-2 Jul 2021 3- 9Jul 2021 10 16 Jul 2021 17 - 23 Jul 2021 24-30 Jul 31 Jul - 6 Aug 7-13 Aug 2021 2021 2021 7-13 Aug 2021 YTD Aug 2021 • BANKING BUSINESS: Loan originations to 20 August $8.8 million, 11,656% ($0.5 million in pcp) • Deposit balances of $84.2 million at 31 July 2021, 134% ($62.8 million in pcp) 1 These numbers are based on unaudited management accounts that have not been independently reviewed or verified. 26#27Looking Ahead • • • • • • • Continued benefit 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 Significant 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 "...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 unified 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 27 22#28GENERAL medipass Dashboard Pete's Health Summary for HICAPS Health Services Dashboard Claims Week $ Claims & payments Claims status Payments Week Quotes 4 3 75% Approved Patients BUSINESS $180.00 $153.00 25% Declined - $102.00 Practices Staff Daily transactions Services Business settings $300 $250 $200 MICHELLE BRASIER Profile $150 Account settings 5100 Help → Logout $50 SUPPLEMENTARY MATERIALS HAND GEL KILLS GERME PAST 375m Week Create a claim Period: Past week ▾ Payments status Week $120.00 100% Approved 0% Declined Week 28#29FY21 STATUTORY TERMINAL CONNECTIVITY ($'000) ISSUE ($'000) BENDIGO BANK PARTNER REVENUE SHARE ($'000) Transaction value 25,453,507 Payments revenue and income 229,221 983¹ Banking income 3,222 Other revenue and income 6,079 Total revenue 238,522 983 Payments direct expenses (118,694) (698) Interest expenses on deposits (379) Total direct expenses (119,073) (698) Attachment 1 - Reconciliation of Statutory P&L to Normalised P&L ADJUSTMENTS IPO RELATED SHARE BASED PAYMENTS EXPENSE ($'000) FY21 NORMALISED ($'000) 25,453,507 230,204 3,222 6,079 239,505 (119,392) (379) (119,771) 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 SIGNIFICANT ONE-OFF COSTS ($'000) Gross profit 119,449 983 (698) 119,734 Operating expenses: Employee benefits expense (excl. share-based payments) (76,174) 2172 5924 (75,365) Administrative expenses (22,903) 2,7372 4,0894 (16,077) Contractor and consulting expenses (7,192) (7,192) Marketing expenses (5,419) (5,419) Lending and non-lending losses (10,863) 9,3483 (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) 29 Net loss before tax (29,775) 13,285 5,012 563 (10,915) 29#30Attachment 2 - Cash Flow Analysis FY20 Positive cash generation from operations FY21 $'000 $'000 Net payments income Net interest income Other income 110,120 2,603 6,069 86,513 Operating Cash Flows: 5,548 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 flows (excluding banking) (10,978) (15,724) Net movement in customer loans (2,918) 294 Net increase in deposits 24,939 23,624 . Cash from merchant deposits to be used to fund merchant cash advance Cash flows from operating activities 11,043 8,194 • Net investment in term deposits, financial and equity investments (395) Net capital expenditure (excluding terminals) (1,205) (42,775) (1,663) . $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 reflecting growth in deposits + net repayment of loans Investing + Financing Cash Flows: Payments for intangible assets reflects the investment in the Bendigo Bank Alliance + Medipass + investment in technology + building customer relationships Payment for investment in Paypa Plane of $1.9 million Payments for recognised intangible assets Other investing activities (28,076) 376 (3,082) 405 Cash flows 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 flows from financing 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 30#31Attachment 3 - Capturing Card-Present Terminal Market Share Number of terminals by banks and other providers in Australia ('000) - as at 30 June 2020 (updated for Tyro terminals at 30 June 2021) CAGR (30 June 2015 - 30 June 2020) (3%) 244 (6%) 2% 0% • 104,827 terminals at 30 June 2021 - up 67% from FY20 30% (8%) n/m 11% • Tyro has 73,151 terminals at 30 June 2021 • Tyro | Bendigo Bank Alliance has 31,676 terminals at 30 June 2021 150 140 132 104 21 n/m Commonwealth National Australia Bank of Australia Australia Bank and New Westpac Banking Tyro (incl. Bendigo) Suncorp- Metway Other banks¹ Zealand Corporation Banking Group 115 Other non- bank AusPayNet members² 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 figure 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 AusPay Net (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. 31#32Attachment 4 - Capturing Market Share in Growing Total Addressable Market Annual transaction value of card payments acquired in Australia¹ ($ billion) - as at 30 June 2021 ~3.8% market share $677b · Tyro's estimated market share of total card payments acquired in Australia - as at 30 June 2021 4.0% 3.5% 5.1% CAGR (30 June 2016- 3.0% 30 June 2021) 2.5% ~14% market share ~$180b Health, Hospitality and Retail SMEs 2.0% 1.9% 1.6% 1.5% 1.4% 1.0% 0.5% 2.2% 2.7% 3.0% 3.8% FY15 FY16 FY17 FY18 FY19 FY20 FY21 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 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 figure 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. Source: Internal management estimates based on available RBA statistical data available at time of results 32 32#33Attachment 5 - Our Competitive Strengths 1. Software-led approach to payments, based on a core proprietary technology platform 6. A values-led and talented team 5. Focus on providing best- in-class service to tens of thousands of Australian businesses 999 999 ooo || 000 2. Seamless direct integration with a significant number of POS systems 3. A focus on core verticals 4. Broad and direct access to the Australian financial system through licences and memberships 33 33#34Attachment 6-Liquidity & Capital Adequacy 162% $166m 73% $102m $84m FY20 FY21 Total Regulatory Capital Total Risk Weighted Assets Total Capital Ratio $115m · 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 office > Reduction in cash space 34#35Disclaimer · 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, financial 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 figures 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 identified 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 financial 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#36Investor Relations contact details: Giovanni Rizzo Phone: +61 (0) 439 775 030 Email: [email protected] Address: 1/155 Clarence St, Sydney NSW 2000 Company website: tyro.com