Liberty Financial : LFG Appendix 4D and FY22 Half Year Financial Statement

28 February 2022

Markets Announcement Office onlyASX Limited

LIBERTY GROUP APPENDIX 4D AND FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2021

In accordance with ASX Listing Rule 4.2A and the Corporations Act 2001 (Cth), Liberty Group (ASX:LFG) encloses Appendix 4D and the financial report for the half year ended 31 December 2021.

The following associated documents will be provided separately for lodgement:

use1. Media Release; and

2. Investor presentation for the half year ended 31 December 2021. Authorised for disclosure by the Board.

personalInvestor contact: Peter Riedel

[phone]

i [e-mail]

About the Liberty Group

Liberty Group is a leading diversified finance company in Australia and New Zealand. Its businesses include residential and commercial mortgages, motor vehicle finance, personal loans, business loans, broking services, general insurance and investments. Since 1997, Liberty has raised more than $36 billion in global capital markets and helped more than 600,000 customers get financial.

For

For personal use only

LIBERTY GROUP1

APPENDIX 4D

For the half-year ended 31 December 2021

Results for announcement to the market
(All comparisons to half-year ended 31 December 2020)	$m	Up/down	Movement %
Revenue from ordinary activities	440.6	up	1.7%
Profit after tax from ordinary activities attributable to members	116.4	up	40.3%
Net profit after tax attributable to members	116.4	up	40.3%

	31 December	31 December
Reconciliation of statutory net profit after tax to underlying	2021	2020
net profit after tax and amortisation	$m	$m
Statutory net profit after tax	116.4	83.0
Amortisation of IP	5.9	5.9
Statutory net profit after tax and amortisation	122.3	88.9
IPO-related adjustments
Personnel expenses	-	20.1
Costs of the offer	-	12.4
Total adjustments	-	32.5
Tax effect of adjustments	-	(3.7)
Underlying net profit after tax and amortisation	122.3	117.7
		Amount per
		stapled
		security
Distribution information		(cents)
Interim 2022 distribution per stapled security		21.0
Record date for determining entitlement to interim distribution	30 November 2021
Payment date of interim distribution	15 December 2021

The Liberty Group Distribution Reinvestment Plan does not apply to the FY22 interim distribution.

Dividend information

No interim 2022 dividend was declared or paid during the half-year ended 31 December 2021.

	31 December	31 December
	2021	2020
Net tangible assets per stapled security	$	$
Net tangible assets per stapled security	2.69	2.36

Additional information

Additional information supporting the Appendix 4D disclosure requirements can be found in the Directors' Report and the consolidated financial statements for the half-year ended 31 December 2021.

This report is based on the consolidated financial statements for the half-year ended 31 December 2021 which has been reviewed by KPMG.

1 Liberty Group is a stapled entity comprising Liberty Financial Group Limited ABN 59 125 611 574 and Liberty Financial Group Trust ARSN 644 813 847 (Trust) and their respective controlled entities.

For personal use only

LIBERTY GROUP

INTERIM REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

The information contained in the interim report for the half-year ended 31 December should be read in conjunction with the Liberty Group's 2021 Annual Report.

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LIBERTY GROUP

CONTENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

CONTENTS
Directors' Report	2
Auditor's independence declaration	5
Consolidated statement of profit or loss and other comprehensive income	6
Consolidated statement of changes in equity	7
Consolidated statement of financial position	8
Consolidated statement of cash flows	9
Notes to the consolidated financial statements:
1.	Reporting entity	10
2.	Basis of preparation	10
3.	Changes in significant accounting policies	11
4.	Determination of fair values	13
5.	Financial risk management	15
6.	Segment information	26
7.	Other finance income	28
8.	Finance expense	28
9.	Personnel expense	28
10.	Other expenses	28
11.	Income tax expense	28
12.	Share-based payment arrangements	29
13.	Trade receivables and other assets	32
14.	Financial assets	32
15.	Other investments	32
16.	Cash and cash equivalents	33
17.	Intangible assets	33
18.	Payables	33
19.	Financing	34
20.	Capital and reserves	34
21.	Related parties	36
22.	Capital commitments and contingencies	38
23.	Events subsequent to balance date	38
Directors' Declaration	39
Corporate Directory	40
Independent Auditor's Review Report	41

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For personal use only

LIBERTY GROUP

DIRECTORS' REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

The directors present their report together with the consolidated financial report of Liberty Financial Group Limited (the "Company") and the Liberty Financial Group Trust ("LFGT") and their respective controlled entities (together the "Liberty Group"), for the period ended 31 December 2021 and the auditor's report thereon. Liberty Fiduciary Ltd is the responsible entity of LFGT ("RE").

Liberty Group is formed as a stapled entity, a combination of a share in the Company and a unit in LFGT. The ASX ticker code is LFG.

Directors

The directors of the Liberty Group at any time during or since the end of the financial period were:

Independent

Richard Longes (Chair)

Peter Hawkins

Leona Murphy

Executive

James Boyle

Sherman Ma

All directors held office throughout the six months ended 31 December 2021 unless stated otherwise.

Company secretary

Peter Riedel

Principal activities

The Liberty Group conducts activities and makes investments in the financial services industry including but not limited to specialty lending, finance and insurance brokering, receivables servicing, consumer insurance underwriting, real estate and funds management across Australia and New Zealand. There have been no significant changes in the nature of the Liberty Group's activities during the financial period ended 31 December 2021.

Results and review of operations

The consolidated profit after income tax for the six months to 31 December 2021 was $116,450,000 (six months to 31 December 2020: $83,003,000). The Liberty Group had financial assets under management as at 31 December 2021 of $12.5 billion (30 June 2021: $12.2 billion).

Total income increased from $433.1 million in 1H21 to $440.6 million in 1H22 as a result of the following:

• Interest income decreased by $2.3 million (0.7%) from $314.0 million to $311.7 million due to:
• • an increase in average financial assets of 4.4%, from $11.9 billion to $12.4 billion; which was more than offset by
  • a reduction in average interest income yield from 5.25% to 4.99% due to a reduction in average interest rates across the portfolio.
• Fee, commission and other income increased by $9.8 million (8.2%) from $119.2 million to $129.0 million mainly due to:
• • an increase in commission income of $12.1 million due to higher loan originations; partly offset by
  • a reduction in other income due non-recurring profit on business combinations of $1.0 million in 1H21.

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