Slide 1: Annual General Meeting
Annual General 21 December 2021 Meeting
Slide 2: Agenda
Agenda Chairman’s Address Managing Director & CEO’s Remarks Fiscal Year 2021 Results Fiscal Year 2022 Update Financials, Outlook, and Priorities
Slide 3: Chairman's Address
Chairman’s Address Barry Lewin Chairman
Slide 4: Chairman's Address
Chairman’s A few words about our CEO, Eric. We knew I would like to thank the wider QuickFee we needed someone with US payments team for their dedicated efforts in an experience as we evolved the focus of our unprecedented working environment. The business, but with Eric, we have found a work they h
Slide 5: Opening Remarks
Opening Remarks Eric Lookhoff Managing Director and Chief Executive Officer
Slide 6: Letter from the CEO
Letter from understanding of our lines-of-business. • Increase our share of total firm First is our core professional services volume through deeper practice portfolio of payments and lending, and management system integrations with second is our newly launched Buy Now, our Connect product, and Pay
Slide 7: Letter from the CEO
Letter from Outlook and Priorities To best align with our go-to-market strategies in professional services and I would like to recognise and thank our employees for their unending commitment to our clients and each the CEO Buy Now, Pay Later and to ensure other during a year of substantial properly
Slide 8: Timeline
Timeline 2009 2016 2019 2020 2021 Founded in Australia Expanded to the Initial public offering COVID-19 impacts QuickFee becomes a United States (IPO) on ASX payments company Bruce Coombes Accelerated shift to Eric Lookhoff joins as President, establishes QuickFee Replicated AU Con
Slide 9: Executive Leadership
Executive Leadership Investment in Leadership Talent Key roles filled across sales and marketing, payments, and technology We have the right talent to execute on our strategy www.quickfee.com 9
Slide 10: Core Shared Values
Core Shared Values Our values are our essence and describe not only who we are on our best days, but how we choose to support our customers every day. These foundational and distinctive behaviours underpin our diversity, inclusion, and community programs. we bring our we are in service we rise, fall
Slide 11: FY 2021 Review
FY 2021 Review
Slide 12: US Lending and Payments
US Lending and Payments US generated growth in lending despite government stimulus measures COVID-19 accelerated growth in Pay Now US Pay Later (US#039;M) US Pay Now (US#039;M) 15.1 668 13.0 8.0 304 3.9 129 44 1.4 1 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 US, traditional lending FY17 FY18 FY19 F
Slide 13: AU Lending and Payments
AU Lending and Payments Australia impacted by effect of government stimulus Pay Now in AU does not drive meaningful revenue due to measures, suppressing the demand for loans banking structure, but does support lending AU Pay Later (A#039;M) AU Pay Now (A#039;M) 49.3 42.0 35.9 44 44 30.8 25.3 28 4 11 FY17
Slide 14: FY 2022 Update
FY 2022 Update
Slide 15: Core Lines of Business
Core Lines of Business PROFESSIONAL SERVICES BUY NOW, PAY LATER (BNPL) www.quickfee.com 15
Slide 16: Professional Services
Professional Services
Slide 17: Australia in Focus
Australia in Focus • QuickFee operates beside two main competitors in AU – FeeSynergy and SmartAR • QuickFee has approximately 40% of the AU market for fee funding • Consolidation and organic growth opportunities exist • Without growth expenditure, AU is expected to be profitable Long established an
Slide 18: US in Focus
US in Focus • QuickFee has no peer at enterprise level of US market (Top 400 firms) • QuickFee operates beside one main competitor in US at lower end of market – AffiniPay which offers no lending product • Volume growth opportunities exist due to digital invoicing shift and practice management integ
Slide 19: Buy Now, Pay Later
Buy Now, Pay Later
Slide 20: BNPL Partnerships and Integrations
BNPL Partnerships and Integrations Building a Serviceable Addressable Market (SAM) for BNPL 116 ISOs signed up as at 30 November 2021 (over 150,000 total potential US merchant locations) 1 + Provides ISOs with a unique product to increase merchant acquisition and take market share + Creates a ‘hol
Slide 21: BNPL Portfolio Activity
BNPL Portfolio Activity Global BNPL annualised backlog (AUD) Signed merchants at period end $6,000,000 $600,000 $5,000,000 $500,000 Processing Volume 897 Gross Income $4,000,000 $400,000 736 $3,000,000 $300,000 $2,000,000 $200,000 577 $1,000,000 $100,000 370 258 291 $- $- 161 234 Q3 FY21 Q4 FY21 Q1
Slide 22: Technology, Operations, and Finance
Technology, Operations, and Finance
Slide 23: Significant Technology Development
Significant Technology Development QuickFee Unified Business Engine (QUBE) We completed initial development of our proprietary processing services (QUBE) beginning with BNPL. Remaining migrations over FY22 will include ACH/EFT, Card and Lending. Major technology Kepler: our new ‘merchant direct’
Slide 24: Operations
Operations Improved merchant experience Online Strengthened underwriting with use of 30+ tools Merchant + KYC business and owner identity verification + Bank validation Application New workflow system + + Sales enablement to follow up abandoned applicants + Abandonment email notifications to i
Slide 25: Liquidity
Liquidity Northleaf Capital Partners funding deal Delivers US$70 million-equivalent multi-currency receivables facility US$40 million committed first lien facility, consisting of a US$5 million revolver and a US$35 million term loan Liquidity An additional optional US$30 million accordion feat
Slide 26: Outlook and Priorities
Outlook and Priorities
Slide 27: Q2 FY22 to-date
Q2 FY22 to-date (to 30 November 2021) Professional services US Pay Now up 62% for Q2 FY22 to-date; November a new record at US$83M US Pay Later up 22% for Q2 FY22 to-date AU Pay Later up 24% for Q2 FY22 to-date BNPL 59 new ISO sign-ups in Q2 FY22 to-date, total now 116: (30 September 2021 to
Slide 28: Outlook and Priorities
Outlook and Priorities Leverage our Focus on our most valuable assets: most valuable assets + Grow our core AU and US professional services customer base with account- based marketing Execute go-to- market strategy + Increase penetration of our existing portfolio opportunity with integrations
Slide 29: Outlook and Priorities
Outlook and Priorities Manage cash Steady reduction in cash burn for the rest of FY22 and FY23 burn FY22 could see OPEX increase 30–40% over FY21 with a full 12 months Drive increased of FY21 staff hires payment volume Have sufficient cash and funding well into FY23, based on current Shi
Slide 30: Conclusion
Conclusion Lending volumes rebounding Demonstrable strength of from effects of COVID-19 Integrations with practice the core business model stimulus in both AU and US management software through customer solutions will drive greater retention and growth over penetration of existing the pandemic captu
Slide 31: Meeting formalities
PAY NOW PAY LATER formalities Gi
Slide 32: Resolution - 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 2021.
Slide 33: Resolution - Election of Director – Bruce Coombes
Resolution 2 - Election of Director – Bruce Coombes “That Bruce Coombes, who was Managing Director between 15 February 2018 and 1 July 2021 retires in accordance with clause 14.2 of the Company’s Constitution and being eligible for election, is elected as a Director of the Company.” Proxy results: P
Slide 34: Resolution - Re-election of Director – Dale Smorgon
Resolution 3 - Re-election of Director – Dale Smorgon “That for the purpose of 14.2 of the Company’s Constitution, Dale Smorgon, a Director, retires by rotation, and being eligible for election, is re-elected as a Director of the Company.” Proxy results: Proxy's For Against Total Abstain discretion
Slide 35: Resolution – Approval to issue performance rights to Eric Lookhoff
Resolution 4 – Approval to issue performance rights to Eric Lookhoff “That, for the purposes of ASX Listing Rule 10.14 and for all other purposes, approval is given for the issue of 2,483,957 Performance Rights to Eric Lookhoff under the QuickFee Performance Rights and Option Plan on the terms and c
Slide 36: Resolution – Approval to issue options to Neu Capital Australia Pty Ltd
Resolution 5 – Approval to issue options to Neu Capital Australia Pty Ltd “That, for the purposes of ASX Listing Rule 7.1 and for all other purposes, approval is given for the Company to issue 500,000 options to Neu Capital Australia Pty Ltd (and/or its nominee/s), on the terms and conditions set ou
Slide 37: Resolution – Approval of Performance Rights and Option Plan
Resolution 6 – Approval of Performance Rights and Option Plan “That the Company’s Performance Rights and Option Plan (PROP) be approved by the Company for all purposes and that approval be given in accordance with ASX Listing Rule 7.2 Exception 13(b) for the issue of a maximum of 17,000,000 securiti
Slide 38: Resolution - Approval of additional share issue capacity under 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 39: 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 40: 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 CC Credit card Connect QuickFee’s internal product name for its point-of-payment integration, e-i
Slide 41: 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 www.quickfee.com 41