Slide 1: QuickFee Limited FY21 results presentation
QuickFee Limited FY21 results presentation 26 August 2021 Eric Lookhoff, MD & CEO Simon Yeandle, CFO
Slide 2: A merchant acquirer and loan originator for service businesses
A merchant acquirer and loan originator for service businesses For the commercial and professional service provider who demands flexible payment options for their customers, QuickFee delivers a personalised payment experience that enables your business to grow and stay competitive. As your trusted p
Slide 3: FY21 highlights
FY21 highlights Major progress achieved across technology and US$0.7bn A$8.8m A$6.3m QuickFee products Growth in US Continued revenue Gross profit Instalments PayNow growth growth Record results in transactions launched key US market 4% 10% 811 firms signed 119% Lending volumes impacted by gov
Slide 4: Executing against our strategy
Executing against our strategy 1. Execute a robust and effective go-to- 2. Build a highly scalable and market strategy underpinned by clear user-friendly processing platform brand positioning, precision demand generation, and high-velocity sales • Connect is just one example of the many integrations
Slide 5: Executing against our strategy
Executing against our strategy 3. Develop an improved economic model 4. Attract a highly engaged, experienced, which is expected to deliver greater motivated and high-performing team transactional margin and higher of payments and lending professionals processing yields across lending and payments •
Slide 6: FY21 financial highlights
FY21 financial highlights 26 August 2021 www.quickfee.com 6
Slide 7: FY21 overview – QuickFee US
FY21 overview – QuickFee US US business continues to benefit from structural shifts to online payments US lending (US$M) US PayNow (US$M) US active customers US active merchants +114% +51% +20% +119% 579 668.4 195k 15.6 13.0 383 304.6 91k FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY21 lending up 20% t
Slide 8: FY21 overview – QuickFee Australia
FY21 overview – QuickFee Australia Lending impacted by government stimulus; positive signs for FY22 AU lending (A$M) AU PayNow (A$M) AU active customers AU active merchants -37% -0.2% +2% +4% 29.7k 30.3k 533 513 49.3 44.5 44.4 31.2 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 Lending in Australia was imp
Slide 9: Group profit & loss
Group profit & loss A$M FY21 FY20 $+/- %+/- Interest revenue 4.7 5.7 (1.0) (18)% Results reflect commitment to invest in Interest expense (1.0) (1.6) 0.6 38% future growth Net interest revenue 3.7 4.1 (0.4) (10)% Revenue from contracts with customers 4.1 2.8 1.3 46% • Total revenue (interest revenue
Slide 10: Balance sheet
Balance sheet A$M FY21 FY20 $+/- %+/- Cash and cash equivalents 21.3 15.0 6.3 42% Balance sheet remains strong Loan receivables 25.8 35.3 (9.5) (27)% Payment processing receivables 0.9 1.0 (0.1) (10)% • Successful completion of A$17.5 million share Trade and other current assets 1.1 0.6 0.5 83% plac
Slide 11: FY21 operational overview
FY21 operational overview 26 August 2021 www.quickfee.com 11
Slide 12: US payments platform delivering growth
US payments platform delivering growth US payments TTV* (US$M) • Scalable platform and upside 250 opportunity FY21 Revenue US$2.2m • ACH and card are profitable 200 TTV up 119% over FY20 Avg tx size US$2,084 • High, and increasing, operating FY20 margins due to low operational Revenue US$1.2m fixed
Slide 13: Lending
Lending Australia impacted by effect of government stimulus US generated growth in lending despite measures, suppressing the demand for loans government stimulus measures AU lending (A$M) US lending (US$M) 15.6 49.3 42.0 13.0 35.9 31.1 25.3 8.0 3.9 1.4 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY
Slide 14: QuickFee Instalments gaining momentum
QuickFee Instalments gaining momentum QFI merchants No credit application US • Substantially increases the addressable market available 577 process required • Low risk ‘buy now, pay later’ (BNPL) payment plans for service businesses • Focusing on more expensive and necessary purchases: the average t
Slide 15: Integration
Integration We are bringing many integrations to market, all necessary to deepen our merchant relationships and create greater lifetime value • Integrations with third party software and merchants: • Cements relationships; connects to the systems our customers already use • Provides higher processin
Slide 16: Integration – Connect
Integration – Connect Connect is just one example • Connect begins with the CCH Practice Manager integration, the most widely used practice management system (PMS) for US enterprise grade accounting firms • No third party cost for CCH accounting integration • CCH Axcess (entire CCH suite in the clou
Slide 17: Significant progress with technology development
Significant progress with technology development • Connect – beta has launched Major technology • We completed development of our proprietary processing services (‘QUBE’) for ACH and and processing credit card (PayNow), augmenting our current third-party model platform development across • We have i
Slide 18: Significant investment in building the team
Significant investment in building the team Key roles filled across sales and marketing, payments, and technology We have the right talent to execute on our strategy 26 August 2021 www.quickfee.com 18
Slide 19: QuickFee’s core shared values
QuickFee’s core shared values Who we are on our Humanity – we bring our humanity to every conversation with an best days and how open heart and an open mind we choose to support our Care – we care for our people and the communities in which we customers every day serve Serve – we are in service to o
Slide 20: Strategy and outlook
Strategy and outlook 26 August 2021 www.quickfee.com 20
Slide 21: Strategy and outlook
Strategy and outlook FY21 was another year of significant progress for QuickFee Becoming a leading • We have achieved substantial evolution of our technology and products player in online payments for the • We have delivered record results in the key US market services industry We have strong founda
Slide 22: Questions
Questions 26 August 2021 www.quickfee.com 22
Slide 23: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia APR Annual percentage rate The annual rate of interest on payment plans or loans EFT Electronic funds transfer An Australian domestic payments network that facilitates the transf
Slide 24: Appendix
Appendix 26 August 2021 www.quickfee.com 24
Slide 25: USA P&L
USA P&L US$ 000s FY21 FY20 $+/- %+/- Interest revenue 1,424 1,259 165 13% • Interest revenue up 13% Interest expense (521) (518) (3) (1)% Net interest revenue 903 741 162 22% • Revenue from contracts up 62% reflecting strong growth in payments business Revenue from contracts with customers 3,061 1,8
Slide 26: Australia P&L
Australia P&L US$ 000s FY21 FY20 $+/- %+/- Interest revenue 3,324 4,469 (1,145) (26)% • Interest income down 26% reflecting lending decrease of Interest expense (455) (1,117) 662 59% 37% Net interest revenue 2,869 3,352 (483) (14)% • Interest expense savings of A$662k (59%) due to lower Revenue from
Slide 27: Cash flow
Cash flow A$M FY21 FY20 $+/- %+/- Interest, fees and charges from customers (inclusive of GST) 8.7 8.5 0.2 2% Improved cash position Payments to suppliers and employees (inclusive of GST) (15.7) (8.7) (7.0) (80)% Interest paid (1.0) (1.6) 0.6 38% • Negative net operating cashflow is Income taxes pai
Slide 28: Liquidity
Liquidity Well funded with adequate liquidity and growth capacity A$M FY21 FY20 $+/- %+/- • Liquidity + growth capacity has increased A$5.3 million to A$33.0 million Cash and cash equivalents 21.3 15.0 6.3 42% Undrawn available facilities 1.3 (5.5) 6.8 123% • Discussions are well advanced with a lea
Slide 29: Larger margin expansion opportunities
Larger margin expansion opportunities • Highly scalable payments platform and operating infrastructure FY19 FY20 FY21 Interest income 4.5 5.7 4.7 • Payment processing fees are expected to reduce Revenue from contracts with customers 1.2 2.8 4.1 proportionately with volumes Total revenue 5.7 8.5 8.8
Slide 30: Reconciliation from adjusted EBITDA to operating loss
Reconciliation from adjusted EBITDA to operating loss A$ FY21 FY20 Adjusted EBITDA* per slide 9 (7,916,672) (3,496,974) Depreciation and amortisation included in general and administrative expenses in Appendix 4E (451,414) (297,263) FY20 IPO expenses in Appendix 4E, below operating loss line - 812,8
Slide 31: Disclaimer
Disclaimer The material contained in this document has been prepared by QuickFee Limited ACN 624 448 693 (‘company’) and contains general information about the Company’s activities current as at the date of this presentation (26 August 2021). By accepting this document, you agree to be bound by the
Slide 32: Contact details
Contact details: • Eric Lookhoff, CEO p: +61 2 8090 7700 e: eric.lookhoff@quickfee.com • 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@marketeye.com.au