Slide 1: New strategic partnership with Splitit to accelerate growth and Advice Now, Pay Later leadership
New strategic partnership with Splitit (ASX:SPT) to accelerate growth and Advice Now, Pay Later leadership QuickFee capital raising to meet expanded addressable market Bruce Coombes, CEO September 2020
Slide 2: Executive summary
Executive summary Capital raising to fund “Interest Free” product partnership with Splitit (ASX:SPT) to accelerate growth and Advice Now, Pay Later market leadership QuickFee overview • QuickFee operates in the Advice Now, Pay Later sector, providing a transactions processing portal with payment pla
Slide 3: Introduction to QuickFee
Introduction to QuickFee Advice Now, Pay Later Advice Now, Pay Later… bridges the desire of clients to pay over time with the expectation of professional service firms to be paid on time Investor Presentation September 2020 3
Slide 4: How QuickFee's "Interest Free" product works
How QuickFee’s “Interest Free” product works A simple, low cost, low risk solution • Firm sends invoice • Client selects instalment payment option • Client enters credit card details to pay in 4 instalments • Technology takes first ¼ payment, and pre-authorises the remaining 3 payments Investor Pres
Slide 5: Unique powerful combination
Unique powerful combination Compliments existing offerings Technology QuickFee Funding “Interest Free” • Pre-authorisation technology • Full payment to firm at • No recourse contract inception How it works: • Client credit card 1. Client accesses professional • Credit card debits using pre-authorise
Slide 6: Broadening QuickFee's product suite
Broadening QuickFee’s product suite Capturing a greater share of the market Existing solutions New solution PayLater PayNow Interest Free • Full recourse • Online payments • No recourse • Firm credit applies • EFT • Client credit card pre-authorised to protect • Min. firm revenue • Credit card unpai
Slide 7: "Interest Free" product to accelerate growth
“Interest Free” product to accelerate growth Partnership with Splitit enables QuickFee to capture a much greater share of professional services market Expanded market Market Market opportunity advantage Market insight penetration • Capturing greater share of • Client signs up to QuickFee • Payment f
Slide 8: Why are we doing this?
Why are we doing this? Helping customers access advice they need; capturing greater market share California as an example • 55% of Californians experience at least one civil legal problem in their Increase QuickFee’s household each year, and 13% of Californians experience six or more target market b
Slide 9: Significant global opportunity
Significant global opportunity Huge professional services market in the US Accounting sector – estimated revenue Source: IBISWorld Investor Presentation September 2020 9
Slide 10: Increasing the market opportunity
Increasing the market opportunity “Interest Free” product will drive lending growth by opening up new market segments US firm revenue CPA firms Law firms • In the US market, QuickFee currently services firms with >US$1m in annual revenue Firms > $100k 76,895 255,624 – “Interest Free” product will al
Slide 11: "Interest Free" product to accelerate growth strategy
“Interest Free” product to accelerate growth strategy
Slide 12: Multiple revenue sources
Multiple revenue sources COVID-19 accelerating trend towards online payments All things payments, all things receivables for professional service firms Source AU market US market Interest and fee income from lending YES YES Platform fees Some YES Transaction income NO YES Net credit card processing
Slide 13: US market is modernising
US market is modernising Creating significant opportunities for QuickFee • Huge opportunity to grow both lending revenue and transactional revenue with the ‘modernising’ of the US market and our first mover advantage • Growing numbers of new firm sign ups % of invoices sent electronically a leading
Slide 14: COVID-19 accelerated shift to online payments in the US
COVID-19 accelerated shift to online payments in the US Transaction value annualised run rate now US$554m; annualised revenue run rate at US$1.5m Pay in full (up-front payments) weekly transactions processed (USD) since COVID-19 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 15 April $6,00
Slide 15: Pivoting to "next level" technology
Pivoting to “next level” technology Accelerating tech investments to capitalise on market shifts • Structural market shift is underway – Moving ahead professional services firms are “digitising” • QuickFee has ambitious plans to benefit from the market shift – COVID-19 has accelerated this shift – B
Slide 16: Outlook: capitalising on massive US opportunity
Outlook: capitalising on massive US opportunity Becoming a market leader in the Advice Now, Pay Later market • A strengthened financial position, – Investment in technology record new firm sign ups, technology advancements to capitalise on structural enhancements, and investment in shifts people – R
Slide 17: Use of funds and offer structure
Use of funds and offer structure
Slide 18: Use of funds
Use of funds • A$2.8 million – Significant scale up of team for customer acquisitions, 30 June Capital Pro predominantly in the US 2020 raising forma Balance sheet (A$’000) (A$’000) (A$’000) • A$2.0 – Research and development (R&D) for future product releases Current assets • A$12.0 million – Fundin
Slide 19: Offer structure and indicative timetable
Offer structure and indicative timetable Offer structure and • QuickFee will undertake an institutional placement (’placement’) to eligible institutional investors to raise size A$15.0m via the issue of 25.86 million new shares at A$0.58 each. The placement is not underwritten. Ranking • New shares
Slide 20: Offer structure and indicative timetable
Offer structure and indicative timetable SPP record date 7 pm, Wednesday, 16 September 2020 Trading halt 10 am (Sydney time), Thursday, 17 September 2020 – 10 am (Sydney time), Monday, 21 September 2020 Trading halt lifted and ASX announcement 10 am (Sydney time), Monday, 21 September 2020 released
Slide 21: Risks
Risks
Slide 22: Risks
Risks QuickFee specific risks¹ An investment in QuickFee (“Company”) is not risk free. Below are some of the risk factors that should be considered. 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 C
Slide 23: 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 24: Risks (continued)
Risks (continued) QuickFee specific risks¹ The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on its senior management and its key Reliance on key management personnel. Several senior managers have been hired since the IPO and
Slide 25: Risks (continued)
Risks (continued) QuickFee specific risks¹ As with all products, there is no assurance that unforeseen adverse events or defects will not arise in the Company’s products. Adverse events could expose the Company Product liability to product liability claims or litigation, resulting in the removal of
Slide 26: 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 27: 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 controls and rates, Economic conditions and other national and international political circumstances (inclu
Slide 28: Appendix
Appendix QuickFee.
Slide 29: FY20 financial overview
FY20 financial overview Strong growth achieved across key metrics US lending US lending book +63% +52% Revenue US$13.0m +47% US$8.0m US$6.6m US$4.4m FY19 FY20 FY19 FY20 A$8.5m A$5.8m AU lending AU lending book +17% +15% FY19 FY20 A$49.3m A$27.5m A$42.0m A$23.8m FY19 FY20 FY19 FY20 Investor Presentat
Slide 30: Profit & loss (FY20)
Profit & loss (FY20) Record revenue result driven by increased lending and transaction volumes • Strong revenue growth of 47% to A$8.5m, driven by: FY20 FY19 (A$’000) (A$’000) % – Lending growth in the US of 63% to US$13.0m Revenue 8,489 5,779 47% – Lending growth in Australia of 17% to A$49.3m Cost
Slide 31: Contact details
Contact details: Bruce Coombes, CEO Eric Kuret, Investor Relations p: +61 418 286 842 p: +61 3 9591 8904 e: bruce@quickfee.com e: eric.kuret@marketeye.com.au
Slide 32: Disclaimer
Disclaimer The material contained in this document has been prepared by QuickFee Limited ACN 624 448 693 (the Company) and contains general information about the Company’s activities current as at the date of this presentation (17 September 2020). By accepting this document you agree to be bound by