H1 FY23 Financial Performance slide image

H1 FY23 Financial Performance

Reconciliation 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
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