Zip Co Ltd. · ASX:ZIP
Zip — Shareholder Meeting (November 2022)
36 slides from Zip's shareholder meeting presentation, Nov 3, 2022
Slide 1: 2022 AGM Presentation
3 November 2022 2022 AGM Presentation Zip Co Limited (ASX: ZIP) (“Zip”, or the “Company”) provides the Company’s 2022 presentation for today’s For personal use only Annual General Meeting. Release approved by the Board. – ENCL - For more information, please contact: Vivienne Lee Director, Investor R
Slide 2: Zip Co Limited Annual General Meeting
For personal use only Zip Co Limited Annual General Meeting 3 November 2022 1
Slide 3: How to ask a question
How to ask a question For personal use only To ask a written question select the Q & A icon Broadcast Vote Q&A Documents Your questions Select the topic your question relates to from the drop-down list Type your question in the text box and press the send button You may enter a question field below
Slide 4: How to vote
How to vote For personal use only When the poll is open, select the vote icon at the top of the screen Broadcast Vote Q&A Documents Items of business To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director You will see a vote confirmation FOR AGAINST ABSTAIN 2B Re-elec
Slide 5: Chair's Address
For personal use only CHAIR’S ADDRESS Diane Smith - Gander, AO 4
Slide 6: Managing Director & CEO's Address
For personal use only MANAGING DIRECTOR & CEO’S ADDRESS Larry Diamond 5
Slide 7: Our Mission and Our Purpose
For personal use only OUR MISSION OUR PURPOSE To be the first payments choice To create a world where people can live everywhere and every day. fearlessly today, knowing they are in control of tomorrow. 6
Slide 8: Strong performance in FY22
Strong performance in FY22 For personal use only TTV ($) Customers1 (#) Revenue2 ($) Cash gross profit ($) Up 51% YoY Up 56% YoY Up 57% YoY Up 12% YoY 8.7b 11.4m 203.7m 620.0m 181.5m 5.8b 7.3m 393.9m 80.1 160.1 m 2.1b 2.1m m 32.3k 55.2k FY20 FY21 FY22 Jun 20 Jun 21 Jun 22 FY20 FY21 FY22 FY20 FY21 FY
Slide 9: FY22 highlights
FY22 highlights For personal use only Achieved strong growth across all key operating metrics: TTV up 51% YoY to $8.7b; Revenue up Growth 57% YoY to $620m; total customers increased 56% YoY to 11.4m and total merchant partners were up 77% YoY to 91k. Launched with Top 100 US Retailers Best Buy and B
Slide 10: We remain committed to our FY23 priorities
We remain committed to our FY23 priorities Growth in core markets (US, ANZ) Improve unit economics Reduce global cost base For personal use only ● Win and scale profitable ● Execute actions across the ● Finalise and implement merchant partnerships credit lifecycle (decisioning, changes to global foo
Slide 11: Momentum continues in 1Q23 Group results
Momentum 1Q23 Group results TTV ($) Active customers2 (#) Revenue ($) continues in For personal use only Up 15% YoY Up 17% YoY Up 19% YoY 2.2b 7.4m 163.2m Q1 FY23 1.9b 136.8m 6.3m 71.7m 0.9b 1Q21 1Q22 1Q23 1Q22 1Q23 1Q21 1Q22 1Q23 Core market1 TTV ($) Transactions (#) Merchants (#) Revenue margin (%
Slide 12: YTD progress against FY23 priorities
YTD progress against FY23 priorities Growth in core markets (US, ANZ) Improve unit economics Reduce cost base For personal use only ● Key enterprise merchants signed ● Revenue margins remained ● Singapore closure complete, UK to or launched so far in FY23 healthy at 7.4% be finalised Q2 include Barn
Slide 13: Actions taken are delivering improved credit performance in core markets
Actions taken are delivering improved credit performance in core markets For personal use only Decisioning and risk management driving bad debts to <2% Bad debts trending to target range on a cohort basis (AU net bad debts written-off, as a % of TTV) (US monthly cohorts 120 day credit loss performan
Slide 14: Zip's unique business model supports strong performance through current market conditions
Zip’s unique business model supports strong performance through current market conditions For personal use only Operating Environment Interest rates Inflation Regulation Implications Higher cost of borrowing Higher cost of living, reduced Potential for increasing discretionary spend regulatory requi
Slide 15: The opportunity remains significant in our core markets
The opportunity remains significant in our core markets For personal use only Opportunity Demand Growth The total addressable market1,3 (TAM) is AU has proven the value Demand continues to drive significant BNPL delivers market penetration ANZ US Consumers and merchants BNPL volumes are growing are
Slide 16: Outlook: Accelerated path to profitability
Outlook: Accelerated path to profitability Key management actions and assumptions Medium term targets (% of TTV) For personal use only ● Profitable TTV growth in FY23 across ANZ and US, reduced RoW Revenue contribution 7.0% - 7.5% ● Full year impact of ANZ repricing initiatives ● Continue to execute
Slide 17: Prior Minutes & Formal Business
For personal use only Prior Minutes & Formal Business 16
Slide 18: How to vote
How to vote For personal use only When the poll is open, select the vote icon at the top of the screen Broadcast Vote Q&A Documents Items of business To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director You will see a vote confirmation FOR AGAINST ABSTAIN 2B Re-elec
Slide 19: Annual Financial Report, Directors' Report and Auditor's Report
For personal use only Item 1 ANNUAL FINANCIAL REPORT, DIRECTORS’ REPORT AND AUDITOR’S REPORT To receive and consider the Annual Financial Report of Zip and its consolidated entities and the Reports of the Directors and Auditor for the financial year ended 30 June 2022. 18
Slide 20: Remuneration Report
For personal use only Item 2 REMUNERATION REPORT To consider and, if thought fit, pass the following as an Ordinary Resolution: To adopt the Remuneration Report for the financial year ended 30 June 2022, as set out in the Directors’ Report in the Annual Financial Report. Note: the vote on this item
Slide 21: Election of Ms Meredith Scott as a Director
For personal use only Item 3(a) ELECTION OF MS MEREDITH SCOTT AS A DIRECTOR To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That Ms Meredith Scott is elected as a Director of the Company in accordance with clause 22.6 of the Company’s Constitution and AS
Slide 22: Re-election of Mr Peter Gray as a Director
For personal use only Item 3(b) RE-ELECTION OF MR PETER GRAY AS A DIRECTOR To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That Mr Peter Gray, who retires by rotation in accordance with clause 22.10 of the Company’s Constitution, be re-elected as a Direc
Slide 23: Ratification of Prior Issues of Securities in Connection with the Placement
Item 4 For personal use only RATIFICATION OF PRIOR ISSUES OF SECURITIES IN CONNECTION WITH THE PLACEMENT To consider and, if thought fit, pass the following as an Ordinary Resolution: “That the allotment and prior issue of 78,285,139 Shares issued to institutional, sophisticated and professional inv
Slide 24: Approval for Granting of Restricted Rights to Diane Smith-Gander
For personal use only Item 5(a) APPROVAL FOR THE GRANTING OF RESTRICTED RIGHTS TO DIANE SMITH-GANDER To consider and, if thought fit, pass the following, each as an Ordinary Resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and all other purposes, for the issue of up to
Slide 25: Approval for Granting of Restricted Rights to John Batistich
For personal use only Item 5(b) APPROVAL FOR THE GRANTING OF RESTRICTED RIGHTS TO JOHN BATISTICH To consider and, if thought fit, pass the following, each as an Ordinary Resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and all other purposes, for the issue of up to $20,
Slide 26: Approval for Granting of Restricted Rights to Meredith Scott
For personal use only Item 5(c) APPROVAL FOR THE GRANTING OF RESTRICTED RIGHTS TO MEREDITH SCOTT To consider and, if thought fit, pass the following, each as an Ordinary Resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and all other purposes, for the issue of up to $16,
Slide 27: Approval of Equity Incentive Plan and Issue of Securities
For personal use only Item 6(a) APPROVAL OF EQUITY INCENTIVE PLAN (EIP) AND ISSUE OF SECURITIES To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That, for the purposes of ASX Listing Rule 7.2 Exception 13(b) and for all other purposes, the EIP and the iss
Slide 28: Approval of Potential Termination Benefits
For personal use only Item 6(b) APPROVAL OF POTENTIAL TERMINATION BENEFITS To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That the giving of benefits to any current or future holder of a managerial or executive office in the Group to which sections 200B
Slide 29: Grant of Long-Term Equity Performance Rights - Larry Diamond
For personal use only Item 7(a) GRANT OF LONG-TERM EQUITY PERFORMANCE RIGHTS UNDER THE EIP - LARRY DIAMOND To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and all other purposes, for the i
Slide 30: Grant of Long-Term Equity Performance Rights - Peter Gray
For personal use only Item 7(b) GRANT OF LONG-TERM EQUITY PERFORMANCE RIGHTS UNDER THE EIP - PETER GRAY To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and all other purposes, for the issu
Slide 31: Grant of Long Term Incentive Performance Rights - Larry Diamond
For personal use only Item 8(a) GRANT OF LONG TERM INCENTIVE PERFORMANCE RIGHTS UNDER THE EIP - LARRY DIAMOND To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and all other purposes, for th
Slide 32: Grant of Long Term Incentive Performance Rights - Peter Gray
For personal use only Item 8(b) GRANT OF LONG TERM INCENTIVE PERFORMANCE RIGHTS UNDER THE EIP - PETER GRAY To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That approval is given for the purposes of ASX Listing Rule 10.14 and all other purposes, for the i
Slide 33: Poll
For personal use only Poll 32
Slide 34: Other Business, Close of Meeting & Questions
For personal use only Other Business, Close of Meeting & Questions 33
Slide 35: Thank you
For personal use only Thank you. 34
Slide 36: Disclaimer and important notices
Disclaimer and important notices For personal use only The information contained in this presentation has been prepared by Zip Co Limited ACN 139 546 428 (Company). This presentation may contain certain “forward looking statements”. Forward risks, uncertainties and other factors, many of which are o