Zip Co Ltd. · ASX:ZIP
Zip — Shareholder Meeting (November 2023)
31 slides from Zip's shareholder meeting presentation, Nov 9, 2023
Slide 1: Zip Co Limited Annual General Meeting
For personal use only Zip Co Limited Annual General Meeting 9 November 2023 1
Slide 2: 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 S
Slide 3: 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 FOR AGAINST ABSTAIN You will see a vote confirmation 2B Re-elect
Slide 4: Chair's address
For personal use only Chair’s address Diane Smith - Gander AO
Slide 5: Group CEO & Managing Director's Address
For personal use only Group CEO & Managing Director’s Address Cynthia Scott 5
Slide 6: 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 7: Zip delivered, executing on all our strategic priorities in FY23
Zip delivered, executing on all our strategic priorities in FY23 For personal use only What we said we would do What we delivered Profitable TTV growth in FY23 across ANZ and US +7% TTV growth across core markets ANZ and US Drive net bad debts to within target range (<2%) Group net bad debts at 2.0%
Slide 8: 1Q24 Group results
1Q24 Group results For personal use only TTV ($) Active customers2 (#) Revenue ($) Up 11.0% YoY Down 1.8% YoY Up 31.9% YoY 2.3b 204.4m 6.3m 6.1m 2.1b 154.9m Zip continued its strong momentum and achieved positive Group cash EBTDA 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 for 1Q24 Transactions (#) Merchants (#)
Slide 9: Zip has clear priorities in FY24 to drive profitable growth
Zip has clear priorities in FY24 to drive profitable growth For personal use only Growth and Product Operational profitability innovation excellence Extending distribution Unlocking new Strengthening our and performance of customer and market platforms and balance core products segments for growth she
Slide 10: Growth and profitability: the US opportunity remains early and significant
Growth and profitability. The US opportunity remains early and significant with Zip demonstrating strong TTV growth in line with For personal use only our strategy US total addressable market 20221 Volume growth2 US cohort losses3 (USDb) (TTV, USD) (% of cohort TTV) 1,688 10,075 +28.9% 2.0 US$11.7t TA
Slide 11: Product innovation: Zip Plus in AU
Product innovation. Product-led innovation is expanding Zip’s offering in AU, unlocking the next horizon of profitable growth For personal use only New AU product - Zip Plus Continued product innovation in the AU market with strong strategic rationale ● Di erentiated customer proposition with increas
Slide 12: Operational excellence: strengthening the balance sheet
Operational excellence. Zip continues to take actions to strengthen its balance sheet For personal use only Liability Receivables Cash and Management funding Liquidity $350.0m reduction in Completed $300.0m Continued execution convertible note rated note issuance in of initiatives to outstanding fac
Slide 13: Outlook: positive Cash EBTDA in FY24
Outlook¹ Zip now expects to achieve positive Cash EBTDA in FY24 For personal use only Key management actions and assumptions for FY24 Medium term targets (% of TTV) Revenue ● Increased revenue margin from new products 8.0 - 9.0 ● Manage net bad debts to optimise transaction margins Cash cost of sale
Slide 14: Prior Minutes & Formal Business
For personal use only Prior Minutes & Formal Business 14
Slide 15: 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 2023. 15
Slide 16: 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 2023, as set out in the Directors’ Report in the Annual Financial Report. Note: the vote on this item is
Slide 17: Election of Cynthia Scott as a Director
For personal use only Item 3(a) ELECTION OF CYNTHIA SCOTT AS A DIRECTOR To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That Cynthia Scott is elected as a Director of the Company in accordance with clause 22.6 of the Company’s Constitution and ASX Listing
Slide 18: Group CEO & Managing Director's Election as a Director
For personal use only Group CEO & Managing Director’s Election as a Director Cynthia Scott 19
Slide 19: Re-election of Larry Diamond as a Director
For personal use only Item 3(b) RE-ELECTION OF LARRY DIAMOND AS A DIRECTOR To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution: “That Larry Diamond, who retires by rotation in accordance with clause 22.10 of the Company’s Constitution, be re‑elected as a Direct
Slide 20: Chief Executive Officer US, Re-election as an Executive Director
For personal use only Chief Executive Officer US, Re-election as an Executive Director Larry Diamond
Slide 21: Diane Smith-Gander – Issue of Restricted Rights under the ZIPNEP
For personal use only Item 4(a) DIANE SMITH-GANDER – ISSUE OF RESTRICTED RIGHTS UNDER THE ZIPNEP To consider and, if thought fit, pass the following 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 $40,000 wor
Slide 22: John Batistich – Issue of Restricted Rights under the ZIPNEP
For personal use only Item 4(b) JOHN BATISTICH – ISSUE OF RESTRICTED RIGHTS UNDER THE ZIPNEP 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 $20,000 w
Slide 23: Approval for Granting of Restricted Rights to Meredith Scott
For personal use only Item 4(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 $20,0
Slide 24: Grant of STVR Shares under the Equity Incentive Plan
For personal use only Item 5 GRANT OF SHORT-TERM VARIABLE REWARD (STVR) SHARES UNDER THE EQUITY INCENTIVE PLAN (EIP) 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
Slide 25: Grant of Long-Term Equity Performance Rights to Cynthia Scott
For personal use only Item 6(a) APPROVAL OF GRANT OF LONG-TERM EQUITY PERFORMANCE RIGHTS TO CYNTHIA SCOTT 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 iss
Slide 26: Grant of Long-Term Variable Performance Rights to Larry Diamond
For personal use only Item 6(b) APPROVAL OF GRANT OF LONG-TERM VARIABLE PERFORMANCE RIGHTS TO 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 27: Grant of Long-Term Performance Rights to Peter Gray
For personal use only Item 6(c) APPROVAL OF GRANT OF LONG-TERM VARIABLE REWARD PERFORMANCE RIGHTS TO 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 t
Slide 28: Poll
For personal use only Poll 38
Slide 29: Other Business, Close of Meeting & Questions
For personal use only Other Business, Close of Meeting & Questions 39
Slide 30: Thank you
For personal use only Thank you. 40
Slide 31: 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