Slide 1: QuickFee 2022 Annual General Meeting address, presentation and business update
ASX Release | 21 November 2022 QuickFee 2022 Annual General Meeting address, presentation and business update QuickFee Limited (ASX:QFE) (“QuickFee”) attaches the following documents to be presented at its 2022 Annual General Meeting (“AGM”) today: • Chair’s address; • CEO presentation and script; •
Slide 2: 2022 Annual General Meeting
QuickFee Limited 21 November 2022 2022 Annual General Meeting
Slide 3: Agenda
Agenda Chairman’s address Joint CEO presentation Fiscal Year 2022 review Fiscal Year 2023 update and outlook Meeting formalities
Slide 4: Chairman's address
Chairman’s address Barry Lewin Chairman
Slide 5: Your Board & senior leadership team
Your Board & senior leadership team Focus on professional services talent Key roles filled across professional services Dale Smorgon sales and payments Executive Director technology We have the right talent to grow the business Jennifer Warawa President, North America www.quickfee.com 4
Slide 6: Chairman's address
Chairman’s We also launched our recurring ACH I step down from the role of chairman, product in the US in the final quarter of which I have held since the IPO, at the end FY22 which will provide a recurring ACH of this meeting and hand over the role to revenue stream whilst simultaneously Dale. I am
Slide 7: Joint CEO presentation
Joint CEO presentation Dale Smorgon Executive Director Bruce Coombes Executive Director Simon Yeandle Chief Financial Officer
Slide 8: Joint CEO presentation
Joint CEO presentation Dear shareholders, and law firms, and their clients, embracing e-invoicing and online payments. This continuing structural shift led to new We are pleased to present management’s successful capital raise. Your company remains well-funded; the on our core Professional Services
Slide 9: Joint CEO presentation
Joint CEO completed some transformational presentation technology investments and reduced opex accordingly, we will evaluate any inorganic value-accretive opportunities that accelerate profitability and we have a singular focus on, and a known path to, profitability. So, in conclusion, there are man
Slide 10: FY22 Highlights
FY22 Highlights Transitioning from investment to profitability 16.8 961 15.1 Revenue up 24% to A$10.9m from A$8.8m 668 Record volumes in the US Industry-leading low bad debt levels FY21 FY22 FY21 FY22 Higher margins in the US 38.1 52 44 Strong recovery in Australia 30.8 Strengthened balance sheet an
Slide 11: FY22 Highlights
FY22 Highlights QuickFee on track to achieve run-rate profitability by the end of FY23 within existing cash and borrowing facilities Another strong year in the US for Pay Now and Financing + Pay Now total transaction values (TTV) up 44% to US$961 million (FY21: US$668 million) + Financing up 11% to
Slide 12: FY22 Highlights - Strategy
FY22 Highlights - Strategy We delivered against our strategy Effective go-to-market strategy + Renewed focus on core Professional Services market + QuickFee Connect launched Scalable processing platform + Completed build of payments platform QUBE + Launched automated merchant onboarding platform Imp
Slide 13: Professional Services
Professional Services
Slide 14: Key benefits to professional service firms
Key benefits to professional service firms Cash flow improvement Get paid upfront every time when customers can choose a financing plan quickly and easily. Spend less on collections It shouldn’t take months to get paid for your work. Cut down on collections with payment plans. Close faster with pros
Slide 15: US: FY22 Professional services summary
US: FY22 Professional services summary Fast-growing volumes and profitability within a low credit risk business model More and more accounting and law firms, and their clients, are embracing e-invoicing and online payments This structural shift led to new merchant growth, with active merchants u
Slide 16: AU: FY22 Professional services summary
AU: FY22 Professional services summary Strong recovery in lending There was a strong recovery in client demand for borrowing in FY22, as seen by the 17% increase in active customers to 35,000 vs FY21 and an even higher growth in Financing TTV of 24% to A$38.1 million (FY21 A$30.8 million) The ac
Slide 17: Buy Now, Pay Later discontinuation
Buy Now, Pay Later discontinuation
Slide 18: BNPL discontinued in the US
BNPL discontinued in the US Post FY22 year-end, QuickFee made the decision to cease all BNPL operations in the US BNPL would have required significant further investment to deliver a material profit contribution All US BNPL product development, sales and marketing activities have now ceased + Some U
Slide 19: Technology and Operations
Technology and Operations
Slide 20: Technology and Operations
Technology and Operations A transformational year delivering higher margins Completion of our robust proprietary processing platform Qube + Providing QuickFee’s merchants with a branded point-of-purchase check out gateway, connected to multiple back-end processors and sponsor banks + Better merchant
Slide 21: YTD FY23 Performance and outlook
YTD FY23 Performance and outlook
Slide 22: Strong momentum continuing into FY23
Strong momentum continuing into FY23 Q1 FY23: Continuing solid performance across both Pay Now and Financing US + Pay Now Total Transaction Values (TTV) up 34% to US$242 million, driven by firm sign-ups and organic growth + 27% growth in active firm numbers + ACH TTV up 37% to US$200 million (Q1 FY2
Slide 23: Strong momentum continuing into FY23
Strong momentum continuing into FY23 Q2 FY23 to-date (1 October 2022 to 15 November 2022) Professional services focus delivering continuing growth + US Pay Now TTV up 38% vs. 1 October 2021 to 15 November 2021* + US Financing TTV up 19% vs. 1 October 2021 to 15 November 2021* + AU Financing TTV up 5
Slide 24: Liquidity and path to profitability
Liquidity and path to profitability QuickFee remains on track to achieve run-rate profitability by end of FY23 within existing cash and borrowing facilities FY23 Group TTV seasonality Continued growth from focus on US professional services Q2 and Q4 are traditionally the higher volume months + North
Slide 25: Strategic priorities and outlook - 1
Strategic priorities and outlook - 1 Leverage our most valuable asset – our footprint in the CPA and legal markets Continuing tailwinds driving growth in both US Pay Now and Financing + Prevailing economic conditions increasing demand for lending + Primary focus is sales and marketing into the profe
Slide 26: Strategic priorities and outlook - 2
Strategic priorities and outlook - 2 Leverage our most valuable asset – our footprint in the CPA and legal markets Recovery in Australia well underway + Drive further growth in well-established family law and disbursement funding books + Jim’s Group product expanded to other homeowner services in Au
Slide 27: Conclusion
Conclusion Demonstrable strength of the low- Connect and integrations with risk core business model through practice management software customer retention and growth solutions will drive greater over the pandemic penetration of existing accounting base Surge in online payment adoption within US pro
Slide 28: Meeting formalities: Resolutions
Meeting formalities: Resolutions
Slide 29: Resolution 1 - Adoption of remuneration report
Resolution 1 - Adoption of remuneration report “That, for the purposes of section 250R(2) of the Corporations Act and for all other purposes, approval is given for the adoption of the remuneration report as contained in the Company’s annual financial report for the financial year ended 30 June 2022.
Slide 30: Resolution 2 - Election of Director – Michael McConnell
Resolution 2 - Election of Director – Michael McConnell “That, for the purpose of clause 14.4 of the Company’s Constitution, ASX Listing Rule 14.5 and all other purposes, Michael McConnell, being eligible for election, is elected as a Director of the Company.” Proxy results: Proxy's For Against Tota
Slide 31: Resolution 3 – Ratification of Placement
Resolution 3 – Ratification of Placement “That, for the purposes of ASX Listing Rule 7.4 and for all other purposes, Shareholders ratify the issue of 36,500,000 fully paid ordinary shares under ASX Listing Rule 7.1 and ASX Listing Rule 7.1A by the Company at $0.10 per share on 13 May 2022 to certain
Slide 32: Resolution 4 – Approval of Director participation in the Placement
Resolution 4 – Approval of Director participation in the Placement “That, for the purposes of ASX Listing Rule 10.11 and for all other purposes, approval is given for the issue of up to 3,500,000 fully paid ordinary shares by the Company at $0.10 per share to Dale Smorgon (and/or his nominee/s) in a
Slide 33: Resolution 5 – Approval to issue Performance Rights to Bruce Coombes
Resolution 5 – Approval to issue Performance Rights to Bruce Coombes “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, approval is given for the issue of up to 2,278,359 Performance Rights to Bruce Coombes (and/or his nominee/s) under the QuickFee Performance Rights and O
Slide 34: Resolution 6 – Approval to issue Performance Rights to Michael McConnell
Resolution 6 – Approval to issue Performance Rights to Michael McConnell “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, approval is given for the issue of up to 967,262 Performance Rights to Michael McConnell under the QuickFee Performance Rights and Option Plan on the
Slide 35: Resolution 7 – Approval of additional share issue capacity under ASX Listing Rule 7.1A
Resolution 7 – Approval of additional share issue capacity under ASX Listing Rule 7.1A “That, pursuant to and in accordance with ASX Listing Rule 7.1A and for all other purposes, the Shareholders of the Company approve the issue up to that number of Equity Securities equal to 10% of the issued capit
Slide 36: Disclaimer
Disclaimer The material contained in this document has been prepared readers are cautioned not to place undue reliance on these by QuickFee Limited ACN 624 448 693 (‘company’) and forward-looking statements. No representation is made as contains general information about the company’s to the accurac
Slide 37: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia Active customer Any customer who has transacted with QuickFee in the relevant period Active merchant Any merchant that has had a transaction with QuickFee in the relevant period
Slide 38: Contact Details
Contact Details: • Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com • Eric Kuret, Investor Relations p: +61 3 9591 8904 e: eric.kuret@automicgroup.com.au www.quickfee.com 37