Manningham Community Enterprises : presents its 2020/2021 Annual Report to the National Stock Exchange of Australia.

2021 Annual Report

Manningham Community Enterprises Limited

ABN 69 101 174 270

Community Bank • Doncaster East & Templestowe Village

Contents

Chairman's report	2
Senior Manager's report	5
Manager's report	6
Bendigo and Adelaide Bank report	7
Making an impact in our local community	8
Directors' report	10
Auditor's independence declaration	18
Financial statements	19
Notes to the financial statements	23
Directors' declaration	41
Independent audit report	42
NSX report	47

Annual Report Manningham Community Enterprises Limited 1

Chairman's report

For year ending 30 June 2021

Banking is our business… Community is our focus.

This time last year we could not possibly have anticipated the year that lay ahead for us as a society, but as always, we have all shown remarkable resilience and, for our Community Bank company we have not just been resilient, we have flourished and as a result we have been able to be a part of our local community's fight against the impacts of the pandemic on our community and our fellow Manningham residents.

Your Board once again ensured that our focus for the year was on business growth while also ensuring that our efforts in the community were focused on helping those organisations and individuals most affected by COVID-19. Significant assistance was provided to organisations such as Doncare, Onemda, MannaCare, Kevin Heinze Grow, Foodbank Victoria and the Templestowe and Manningham Rotary Clubs to name just a few, all of whom provide direct support into the Manningham community.

The financial performance of both the Doncaster East and Templestowe Village branches has been nothing short of extraordinary with Doncaster East growing its business volume by $74.4 million or 27.8% and Templestowe Village growing by $39.4 million or 22.8% an extraordinary total growth of $113.8 million for the company.

This result is even more extraordinary in light of the financial hardship experienced by so many over the past year. Our amazing staff have continued to provide outstanding service to our valued customers and our community, with the leadership of our Doncaster East Senior Manager, Paul Thompson and our Templestowe Village Branch Manager, Lilian Gomes ensuring that we maintained our growth focus while always having the needs of our customers at the forefront of our approach to every customer enquiry. We must always honour the amazing commitment, professionalism, integrity, determination and compassion of our staff and I thank and congratulate each and every one of them for their outstanding efforts over this past year!

Of course the circumstances of the year, which featured a number of snap lockdowns that made community events impossible to plan, meant that we were unable to be as visible in our community, so our focus was on maintaining verbal and written communication lines with as many of our stakeholder and partner organisations as possible,

to continually reiterate to them that we were here to help should they need us. There is no doubt that this ongoing reassurance assisted us in maintaining strong relationships despite the lack of face-to-face interactions.

The strength of our 2020/21 financial result allowed us to provide significant Sponsorship contributions and Community Enterprise Foundation™ (CEF) Grants during the year such that we took our total Sponsorship payments to $2.219 million and our CEF Grants to $2.004 million since our Doncaster East branch first opened in March of 2003.

Financial results

The Operating result for 2020/21 increased slightly from $300,123 to $324,730 with total revenue decreasing by $8,597 or 0.3% despite the very significant increase in our business volume of $113.8 million or 25.8%.

Additionally, the 2020/21 revenue was positively impacted by the Federal Government's cash flow boost of $37,500 which was $25,000 less than was received in 2019/20 ($62,500) meaning that if we exclude the impact of the cash flow boost in each year, our revenue from all other sources actually increased by only $16,403 or 0.6% despite the 25.8% increase in business volume.

Margin, Fee and Commission Income increased by $51,661 or 2% despite the far greater increase in business

volume and this reflected the historically low interest rate environment in which we operate and the resultant squeeze on margins.

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Chairman's report (continued)

The challenge therefore is to maintain our business volume growth trajectory to ensure that the tighter margin environment does not continue to erode our relative profitability.

Expense management has continued to be a focus again this year with Total Expenses decreasing by $33,204 or 1.39%.

Your Board

My sincere appreciation goes to your 2020/21 Board of Directors - Geoff Roberts (Vice Chair), Ray Barrington, Rod Davitt (Treasurer), Nick Furlong, Max Chapman, Simon Lewis, Brad Dodemond, Deirdre Diamante and Victoria Paouros (Company Secretary). The commitment, expertise, passion, dedication and professionalism of each and every Board member never ceases to amaze me and is one of the reasons why our company is so successful and an outstanding example of what the Community Bank model can achieve.

Succession planning has long been a focus of the Board and during the year we were fortunate to obtain the services of Kerrydan Flory who joined the Board as a Board Associate. Kerrydan has already been a great asset for the Board having brought a broad skill set to all interactions at the Board level and we look forward to welcoming him as a Board Director in the future.

Board Committees

The Marketing Committee of Carly Kluge, Ray Barrington, Paul Thompson, Lilian Gomes, Lisa Jones and led by Geoff Roberts has continued to ensure that we maximize every opportunity to grow our business in the face of very difficult times.

The Committee has embraced the challenge of Marketing in a time of great uncertainty but has nonetheless provided significant support to our branch teams whilst also embracing the re-focussing of our Sponsorship and CEF funding towards the short term survival of our partner organisations and their long term growth and development post

the pandemic.

With very little face-to-face interaction possible over the past year, the special skill set and expertise that Carly Kluge brings to our organisation has been crucial in maintaining momentum with our marketing. Carly's unique set of skills provides our company with expertise that we would otherwise be unable to access and on behalf of all Board members and staff, I thank her sincerely for her input to the growth and development of Manningham Community Enterprises Limited (MCEL).

The Human Resources (HR) Committee of Geoff Roberts, Ray Barrington, Brad Dodemond, Paul Thompson and led by Simon Lewis continues to support our Managers and staff to ensure that they are able to concentrate their efforts into business development knowing that the HR Committee is there to support them.

The Governance Committee of Victoria Paouros, Brad Dodemond, Nick Furlong, Rod Davitt and led by Deirdre Diamante again continued to provide a Governance Framework that has ensured the absolute integrity of everything that MCEL does and also a superb framework for the strategic leadership of the company during 2020/21 and into the future.

The Finance Committee under the leadership of Rod Davitt has continued to add rigour to MCEL's financial stewardship and with the superb work of our bookkeeper, Pam Tremlett, we are assured of accurate, timely and relevant financial reporting, analysis and advice to the Committee and the Board.

The Committee of Rod Davitt, Geoff Roberts, Max Chapman, Pam Tremlett and Paul Thompson are to be thanked for their commitment to best practice financial governance.

The Youth Engagement Committee of Victoria Paouros, Brad Dodemond and Nick Furlong has been severely curtailed in its activity this year due to the impact that the pandemic has had on schooling such that when schools are able to be teaching in the classroom the disruption has been such that their concentration has been on catching up with academic work rather than focusing on community development work that would otherwise have been possible.

The Committee has still been able to focus its efforts on maintaining relationships so that as soon as 'normality' returns to the education sector they will be able to recommence Youth development programs.

Annual Report Manningham Community Enterprises Limited 3

Chairman's report (continued)

Our future focus

Here for good!

We have enjoyed a significant growth period during 2020/21 and it has set us up wonderfully for the future. We are now a business of $554 million and continue on a course to ultimately exceed $1 billion and be the bank of choice in the Manningham community as relationships with our Community Partners remain strong and we continue to forge new relationships as people and organisations come to understand the benefits of the Community Bank model.

Relationships with many levels within Bendigo and Adelaide Bank Limited (BABL) at both the Head Office, State and Regional level remain strong and a number of members of our Board have taken up roles within the Community Bank structure at BABL.

Our Board is committed to growth and to this end we have taken the recent decision to strengthen our mobile banking presence with the appointment of Suganthi Ramalingam as a Business Development Manager across both branches and with the impending return of Lauren Bagala at Templestowe Village branch, albeit on a part-time basis, we have in place the necessary structures to continue our growth trajectory.

Our focus for the immediate future is to provide as much support as possible for the vulnerable within our community and for those who are struggling with the impact of this pandemic.

We will also be looking to support local social support organisations that are also feeling the impact of increased demand for services and in some cases reduced funding, as philanthropic and fundraising opportunities become more scarce.

All of this will occur in a difficult financial environment where business growth may be compromised by the economic environment, however, your Board and staff will continue to work tirelessly for your Community Bank and all we ask in return is that you also take every opportunity to advocate on our behalf.

Finally, I want to acknowledge all of my fellow Board members and our staff as it is their hard work, enthusiasm, passion, commitment and professionalism that makes being a part of this amazing banking model so rewarding and such a privilege.

Ian Goldsmith

Chairman

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