Slide 1: QFE Placement
QFE Placement Bruce Coombes, CEO May 2020 QuickFee Limited
Slide 2: Introduction to QuickFee
Introduction to QuickFee QuickFee $ Accountant Client or lawyer PAID IN FULL & MONTHLY LOAN GUARANTEES THE CLIENT S PAYMENTS LOAN • QuickFee provides a payments processing portal with pay in full (PayNow) and payment plans with monthly instalments (PayLater) options available to clients of accountan
Slide 3: QuickFee journey post IPO
QuickFee journey post IPO COVID-19 accelerating trend towards online payments All hing pa men All hing recei able Large opportunity to grow and capi ali e on moderni ing US market and our first mover for profe ional er ice firm advantage • US transactional revenue growth at record levels and acceler
Slide 4: Executive summary
Executive summary QuickFee overview • QuickFee provides a payments processing portal with up front (PayNow) and loan instalment (PayLater) options available to clients of accountants and lawyers (professional service firms) • QuickFee has a proven business model, having financed over A$250m in loans
Slide 5: The journey so far: United States
The journey so far Rapid growth United States United States IPO 9 July 2019 March 2020 % increase Up front (PayNow) monthly portal US$10.7m US$30.1m (March) ▲325% transaction value (FY 2019 average) US$45.5m (April) Lending (PayLater) monthly US$650k US$1.5m (March) ▲131% transaction value (FY 2019
Slide 6: The journey so far: Australia
The journey so far Continued growth Australia Australia IPO 9 July 2019 March 2020 % increase Up front (PayNow) monthly portal A$2.4m (FY 2019 A$3.6m ▲50% transaction value average) Lending (PayLater) monthly A$3.5m (FY 2019 A$4.0m (FY 2020 ▲14% transaction value average) YTD average) • Established,
Slide 7: AU and US charts
AU and US charts Increased activity across all metrics AU PayLater (lending) US PayLater (lending) 9 months ended March 2020 9 months ended March 2020 vs March 2019 (AUD) vs March 2019 (USD) $35.8 $9.1 million million $28.6 million $5.6 million Jul-18 to Mar-19 Jul-19 to Mar-20 Jul-18 to Mar-19 Jul-
Slide 8: Revenue sources
Revenue sources Multiple revenue sources Source Australian market US market Interest and fee income from lending YES YES Platform fees Some YES Transaction income NO YES Credit card processing income NO YES SaaS e-invoicing tool revenue Q3 release Q3 release 8
Slide 9: US strong growth from both existing and new firms
US strong growth from both existing and new firms Strong increase in US lending (PayLater) and US transaction volumes (PayNow) Approximately half the growth in PayNow from existing firms and half from new firms signed up in the past 12 months PayNow transaction PayNow transaction volume volume 4
Slide 10: Big data and automation opportunities
Big data and automation opportunities Significant upside potential through offering e-invoicing (introducing new SaaS revenue opportunity) • Delivery of every invoice for every firm electronically • Ability to upsell to existing client base as more modules are added to technology platform: • Automat
Slide 11: Marketing during COVID-19
Marketing during COVID-19 In person conferences cancelled QuickFee proactively introduced virtual conferences Significant attendances at QuickFee organised webinars 1,100 attendees in week commencing 20 April Positions QuickFee as thought leader Increased inbound enquiry https://www.quickf
Slide 12: US business
US business 12
Slide 13: United States since IPO
United States since IPO Strong sales momentum being achieved US PayLater (lending) 9 months ended March 2020 • Substantial growth in lending up 63% to US$9.1 million in 9 vs March 2019 (USD) months to 31 March 2020 • Enormous growth in PayNow transaction volumes up 325% $9.1 to US$45.5 million in Ap
Slide 14: US market is modernising
US market is modernising Creating significant opportunities for QuickFee • Large opportunity to grow both lending revenue and transactional revenue through the modernisation of the US market • I A alia f a ac i Q ickFee al are loans • Extrapolating this to the US, where March 2020 transactions were
Slide 15: Transaction volume growth charts
Transaction volume growth charts Annualised run rate now US$546 million Value of electronic payments processed Up front (PayNow) monthly portal by QuickFee US (USD) transaction value (USD) during COVID-19 lockdown Week commencing: $9,000,000 9 March: $4.4 million ▲ 16 March: $4.9 million ▲ $8,000,00
Slide 16: US user experience easy-to-use online payment portal 24/7
US user experience easy-to-use online payment portal 24/7 16
Slide 17: AU vs US % of invoices sent electronically
AU vs US % of invoices sent electronically Enormous transformation opportunity in US AU 2020 US 2020 % of invoices sent electronically % of invoices sent electronically % of firms % of firms Source: QuickFee CSAT survey (February 2020) 17
Slide 18: Australian business
Australian business 18
Slide 19: Australian update
Australian update Gaining strong traction in the legal market AU PayLater (lending) • Continued growth building on lending 9 months ended March 2020 $35.8 million lent in 9 months 31 March 2020 up vs March 2019 (AUD) 25% on comparative period • Delivered pre-tax profit of $1 million in 9 months $3
Slide 20: Australian user experience
Australian user experience 20
Slide 21: Placement and use of funds
Placement and use of funds 21
Slide 22: Use of funds
Use of funds • A$6.0 million Fund increased loan book • Strong anticipated growth of lending book (equity portion of loans) as a result of the impact of COVID- cii acc i g fi m a d hei clie ca h fl • Reduce risk of any potential COVID-19 impact of restriction on credit availability and lower gearing
Slide 23: Offer structure and indicative timetable
Offer structure and indicative timetable Equity raising • Q ickFee ill de ake a i i i al laceme Offe eligible i i i al i e ai e A m • With a A$7.5m capital raising, pro forma gross financing capacity post the completion of the Offer will be US$21m Use of proceeds • The proceeds of the Placement will
Slide 24: Risks
Risks 24
Slide 25: Risks
Risks QuickFee specific risks1 A i e me i Q ickFee C m a i i k f ee Bel ae me f he i k fac ha h ld be c ide ed There is a risk of potential failure of clients or firms to meet their obligations at the appropriate time with respect to loans granted to them. The Company will seek to monitor and manage
Slide 26: Risks (continued)
Risks (continued) QuickFee specific risks1 The financial services sector in Australia is undergoing a significant period of political and regulatory scrutiny and expected regulatory change. Future changes to law or regulation, or potential changes to law or regulation which oblige industry participa
Slide 27: Risks (continued)
Risks (continued) QuickFee specific risks1 The Company operates in Australia and the US, and may do business in other international jurisdictions at a later date. The C m a eai c ld he ef e be bjec a mbe f i k i he e i gl bal e a i i cl di g li ical and economic instability in International operatio
Slide 28: Risks (continued)
Risks (continued) QuickFee specific risks1 The ac i i ie f he C m a ma e l i di e i h hi d a ie i cl di g i h limi a i he C m a i e rs, competitors, regulators, partners, distributors, customers, directors, officers and employees, and service providers. The Company may incur substantial costs in con
Slide 29: Risks (continued)
Risks (continued) QuickFee specific risks1 The Company faces various risks in conducting its business and may lack adequate insurance coverage or may not have the relevant insurance coverage. The Company proposes to arrange and maintain insurance coverage for its employees, as well as directors and
Slide 30: Risks (continued)
Risks (continued) QuickFee specific risks1 General economic conditions, laws relating to taxation, new legislation, trade barriers, movements in interest and inflation rates, currency exchange Economic conditions and other controls and rates, national and international political circumstances (inclu
Slide 31: Appendix
Appendix 31
Slide 32: Why clients choose QuickFee payment plans
Why clients choose QuickFee payment plans We kne e needed a le el f acc n ing ad ice e c ldn aff d hil al investing in the product development itself; QuickFee meant we could set up the b ine f nda i n he igh a beca e i hel ed ead he c I all ed deal i h a ca hfl h age We e i ed a l f k be carried ou
Slide 33: Leadership team
Leadership team Investment in the US and AU team Barry Lewin Bruce Coombes Dale Smorgon Non-Executive Chairman Chief Executive Officer Non-Executive Director James Drummond Francesco Fabbrocino Richard Formoe Andreas Dewing Corey Struve Chief Operating Officer Chief Technology Officer Chief Revenue
Slide 34: QuickFee AU Profit or loss unaudited
QuickFee Australia Pty Ltd QuickFee AU Profit or loss unaudited For the months ended March March A Interest revenue calculated using the effective interest rate method , ,0 Revenue from contracts with customers 0 , Cost of sales ( , , ) Gross profit Other income , Other gains/(losses) – net , Operat
Slide 35: QuickFee AU Balance sheet unaudited
QuickFee Australia Pt Ltd QuickFee AU Balance sheet unaudited As at March March A ASSETS Current assets Cash and cash equivalents Loan receivables Other receivables Other current assets Total current assets Non current assets Propert plant and equipment Deferred ta assets Other non current assets To
Slide 36: QuickFee US Profit or loss unaudited
QuickFee Group LLC QuickFee US Profit or loss unaudited For the months ended March March US Interest revenue calculated using the effective interest rate method , Revenue from contracts with customers , Cost of sales ( , ) Gross profit Other income , Other gains/(losses) – net ( ,0 ) Operating expen
Slide 37: QuickFee US Balance sheet unaudited
Q ickFee Gro p LLC Q ickFee US Balance shee na di ed As a March March US ASSETS C rren asse s Cash and cash equivalents , , Loan receivables , , Other receivables , Other current assets , To al c rren asse s Non c rren asse s Property, plant and equipment , Other non-current assets , To al non c rre
Slide 38: Contact details
Contact details: Bruce Coombes, CEO P: +61 418 286 842 E: bruce@quickfee.com 38
Slide 39: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about QuickFee Limited activities current as at the date of this presentation (5 May 2020). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment