Slide 1: FY16 Full Year Results Presentation
23 February 2017 Freelancer Limited FY16 Full Year Results Presentation Matt Barrie Chief Executive Officer
Slide 2: Freelancer delivers a record result
Freelancer delivers a record result with fastest revenue growth since IPO (USD c/c), strong positive group operating cash flow, and first listed full year positive operating EBITDA & NPAT • Record GPV $666m (up 190% on pcp) • Record Net Revenue $52.7m (up 37% on pcp) • Fastest revenue growth since I
Slide 3: Fastest job growth since 2010
Fastest job growth since 2010 (up 53% on pcp) Over 2.6 million projects and contests were posted in the marketplace in 2016 Total Registered Users Total Jobs Posted (Filtered) 22,000,000 10,000,000 20,000,000 18,000,000 8,000,000 16,000,000 23,305,307 10,644,971 (as of 31 December 2016)1 (as of 31 D
Slide 4: Freelancer.com and Escrow.com
Freelancer.com Escrow.com Freelancer.com Escrow.com #1 Online Services Marketplace #1 for Secure Online Payments Over US$3 billion in Over US$3 billion in projects posted escrow transactions 4
Slide 5: Freelancer.com is changing the global dynamics in the marketplace for people
Freelancer.com is changing the global dynamics in the marketplace for people 5
Slide 6: In a trillion dollar market
in a trillion dollar market Hot tip? Letus know TL. News» Video» Events» Crunchbase BULLISH watcn Te Relaunch OF TC’ aulish Today b The future of work is 5 billion customers looking for a good job sf |
Slide 7: We help entrepreneurs build the future
We help entrepreneurs build the future. We help small businesses, startups and entrepreneurs turn that spark of an idea into reality. ve t > SS W freelancer = This CAD Design of a VR Helmet cost soo)
Slide 8: We are changing the developing world
We are changing the developing providing oppo and income. “Thanks to Freelancer.com, | am able t which allows me to spend quality time while making money to meet householt Kelvin Otieno y en KKK a 4.9/5.0 rating, 44 reviews.
Slide 9: Your idea, brought to life in stunning visuals
Your idea, brought to life in stunning visuals. We can make your dreams a reality, no matter how large or small your ambition or budget. se ‘W freelancer This Architectural Design cost 150)
Slide 10: Key financial highlights FY16
Key financial highlights FY16 Record GPV $666.2m (up 190%), Record Net Revenue $52.7m (up 37%), Record Operating Cashflow $4.5m (up 207%) ● First listed positive full year operating EBITDA and NPAT A$m, 31 December year end FY16 FY15 Change Gross Payment Volume1,2 $666.2m $229.3m +190% Net Revenue1
Slide 11: Key marketplace highlights FY16
Key marketplace highlights FY16 Fastest growth in jobs posted since 2010 with 2.6 million new jobs (up 53% on pcp) 31 December year end FY16 FY15 Change % New Jobs in year1 2.6m 1.7m 53% Total Jobs Posted (Filtered)1 10.6m 8.0m 33% New Users (excl. Escrow) 4.6m 3.5m2 31% Total Registered Users 23.3m
Slide 12: Fastest group revenue growth in USD since IPO
Fastest group revenue growth in USD since IPO In constant currency (USD) terms, revenue growth for the group was up 36% in FY16, faster than FY15 & FY14 Freelancer & Group Revenue in USD (millions) Constant Currency1 40 35 30 25 Year USD Net USD % 20 Revenue ($m) growth FY14 23.5 30% Freelancer Free
Slide 13: Net Revenue
Net Revenue Record FY16 net revenue of $52.7m AUD (up 37% on pcp) Net Revenue (A$m) and Gross Margin (%) 52.7 5 0 .0 1 0 0 % ● Record net revenue of $52.7m, up 37% on FY15 87% 87% 88% 87% 87% 86% ● Fastest USD constant currency revenue growth (up 83% 36%) since IPO 4 0 .0 38.6 8 0 % ● Consistently h
Slide 14: Gross Payment Volume (GPV)
Gross Payment Volume (GPV) Gross Payment Volume1 of $666.2m (up 190% on pcp) Gross Payment Volume1 (A$m) and Marketplace Take Rate2 (%) 666.2 7 0 0 .0 2 5 .0 % ● GPV of $666.2m in FY16, up 190% on pcp – $160.3m from core Freelancer marketplace – $505.9m from Escrow.com 6 0 0 .0 2 0 .0 % 5 0 0 .0 506
Slide 15: Cash flow profile FY16
Cash flow profile FY16 Record positive operating cashflow of $4.5m, and while re-investing for growth, cash balances grew 8% to $34.8m Cash Balance (A$m) ● 31 December 2015 cash balance of $32.2m 4.5 0.4 0.1 (1.9) ● Significant growth in positive (0.4) operating cash flow of $4.5m (0.4) ● Acquisitio
Slide 16: Summary profit & loss statement FY16
Summary profit & loss statement FY16 Positive operating EBITDA and NPAT, improved marketing efficiency as % of revenue (A$m) FY16 FY15 Change ● Continued strong revenue and gross profit growth, 31 Dec y/e Actual Actual up 37% on pcp Net Revenue 52.7 38.6 37% ● Gross margins in line with prior period
Slide 17: Summary balance sheet FY16
Summary balance sheet FY16 Strong, growing balance sheet, no net debt (A$m) FY16 FY15 Change ● Total cash at period end of $34.8m, no net debt 31 Dec y/e Actual Actual ● Escrow.com additionally holds approximately $25 million in Cash and cash equivalents 34.8 32.2 8% cash, in trust, off balance shee
Slide 18: Company
Freelancer Limited COMPANY 18
Slide 19: Freelancer's Online Economy in 2013
Freelancer’s Online Economy in 2013 Note: Sample of projects awarded in 2013. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 19 freelancers. Thicker lines indicate a higher volume of work. White dots indicat
Slide 20: Freelancer's Online Economy in 2014
Freelancer’s Online Economy in 2014 Note: Sample of projects awarded in 2014. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 20 freelancers. Thicker lines indicate a higher volume of work. White dots indicat
Slide 21: Freelancer's Online Economy in 2015
Freelancer’s Online Economy in 2015 Note: Sample of projects awarded in 2015. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 21 freelancers. Thicker lines indicate a higher volume of work. White dots indicat
Slide 22: Freelancer's Online Economy in 2016
Freelancer’s Online Economy in 2016 Note: Sample of projects awarded in 2016. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 22 freelancers. Thicker lines indicate a higher volume of work. White dots indicat
Slide 23: Global, Multilingual, Multicurrency
Global, Multilingual, Multicurrency 53 Regional Websites (added 14 in FY16) 34 Supported Languages 28 Supported Currencies (added 8 in FY16) Languages Currencies Afrikaans Norsk-Bokmål USD JMD VND Bahasa Indonesia Nederlands NZD CLP AED Bahasa Malaysia Polski AUD MXN ARS বাংলা Português GBP IDR BDT
Slide 24: Marketplace dynamics FY16
Marketplace dynamics FY16 “Every job, every country, every language, every currency, at any time” Top country sources for completed projects in FY161 ● Over 950 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, Manufacturing, Mechanical Engineering 29% United States 38% Austr
Slide 25: Revenue Model
Revenue Model Freelancer’s revenue is driven by users posting jobs – as a project or a contest ● For employers it’s free to post a project, free to review bids, free to talk and review samples – 3% project commissions paid by employers when a project is awarded and accepted ● For freelancers it’s fr
Slide 26: 3D rendering of a villa from 2D floor plan
3D rendering of a villa from 2D floor plan for $100 26
Slide 27: Chocolate package design
‘W freelancer Hire Freelancers ~ Work~ MyProjects- Help~ | Q Searc Home > My Projects Chocolate package (front) design €100 EUR Description Entries 54 total entries COCONUT louisecurtis AlamgirBhuiyan Entry #49 ghielzact Entry #41 kvinke Entry #38 Entry #33 ghielzact mikeBq ghielzact Entry #35, Entr
Slide 28: Packaging Design cost
Wireelancer “This Packaging Design cost. €100 ——_— _*
Slide 29: Logo Design cost
oN e : CHROMOSOLE CH ROMOSOLE a SSA RENN Tale Se EON ‘WY free fancer This Logo Design cost e10
Slide 30: Label Design cost
BEARDS¢ BARAKAH DIRECTIONS: 1. PLAGE 4 DROPS OF ‘ONTO YOUR ‘SIMMONDSIA CHINENSIS (0)084 INGREDIENTS: se ‘W freelancer This Label Design cost
Slide 31: Wall Menu Design cost
FRESH MENU SELECTION BREAKFAST ‘SERVED IAM -7:50PH SERVED 7AM - 10:30AM 2sI0es + FOUNTAIN ORIN 3 SIDES + FOUNTAN DRINK 2 SIDES + FOUNTAIN RINK 2 SIDES + FOUNTAIN ORINK Beir aslo IeAT +2 00s ‘aneats2ecos SMeate2ec0s “Tons “roast “Toner , 253 pier) 59 2SIOES + FOUNTAIN BRINK 2105S + FOUNTAN ORINK * CO
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Slide 33: Maxima Cafe
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Slide 35: Website Design & Build cost
> veePrLoarnc ‘W freelancer This Website Design & Build cost ©
Slide 36: First Floor
First Floor Ground Floor li i E | oat j Beir
Slide 37: 3D Handrail for an EVA spacewalk
37 “Y freelancer Hire Freelancers Work Manage Help Q AUD $356 EA ®@ # 3D Handrail for an EVA spacewalk Entries 121 total entries View: (121) All Entries > Sort by: Relevance + | Hi by Miguel3D by BlackRiddles by Electrojesus by Jeffersonben ti 6 Entry #28 Entry #15 by speedmaster96 by gmidethi by se
Slide 38: NASA got this 3D CAD modelling
NASA got this 3D CAD modelling for | \
Slide 39: We push the boundaries of human innovation
a ‘Y freelancer We push the boundaries of human innovation Our freelancers helped NASA design a robotic arm for the Astrobee, a next generation free flying robot on the International Space Station. rod 3 NEY 88 casts | | SO Fuswer
Slide 40: Liquidity: 4.2m bids/month
Liquidity: 4.2m bids/month, >78% of projects get bid within 60s Number of bids on projects Average number of bids in 1 hour Number of entries in contests Actual completed projects Actual contest entries 3D Interior Design 3D Helmet Design 3D Growler Mobile App Mockup Music Album Cover Healthy Chips
Slide 41: Contests
Contests by Pencey by Jhepordo Entry # 13 Entry # 21 13 15 32 10 71 entries per 70% of the contests Give feedback and get contest on average receive their first entry exactly what you need within the first two hours with real time chat 41
Slide 42: Mobile
Mobile Over 1 million downloads of the Android app. Over 79% of projects touch mobile during the project lifecycle. Payments have now been added to the apps.
Slide 43: Local Jobs
Local Jobs 60% of jobs receive a Average time to first bid Local jobs on average quote in less than has been reduced to 15 receive 7 bids. one hour. Globally. minutes. Globally. Globally. 43
Slide 44: Tools
Tools Users with chat threads increased >100% year on year. 61% of freelancers respond to an employer chat within one hour. Globally. Native audio & video chat launched.
Slide 45: Stunning Community Content
Stunning Community Content High quality content across a range of technical areas generated from our community of 23 million skilled professionals. 45
Slide 46: Nubelo & Prolancer acquisitions
Nubelo & Prolancer acquisitions We expanded leadership in the Latin Adding 750,000 registered users and 122,000 American, Spanish and Portuguese markets by posted projects to the 1.8 million users and acquiring the Nubelo and Prolancer freelancing 502,000 projects in these markets already on marketp
Slide 47: 1 million users have transacted over US$3 billion
1 million users have transacted over US$3 billion securely through Escrow.com Licensed, audited & bonded = 0% chargebacks 47
Slide 48: You wouldn't sell your car with PayPal
You wouldn’t sell your car with PayPal 48
Slide 49: eBay: Only use Escrow.com
In fact, eBay doesn’t think so either: “Important: Only use Escrow.com” 49
Slide 50: Escrow.com secures a wide range of transaction types
Escrow.com is used to secure a wide range of transaction types 50
Slide 51: Where the Internet is bought and sold
Where the Internet is bought and sold 51
Slide 52: Escrow.com highlights FY16
Escrow.com highlights FY16 Reaching the end of a significant period of investment rebuilding Escrow.com’s processes & systems ● Revamped site - released a new mobile responsive and multilingual front end ● Added new payment methods for international users, and increased payment processing times to t
Slide 53: The #1 Internet Marketing Forum Since 1997
The #1 Internet Marketing Forum Since 1997 1,213,452+ 9,959,391+ 944,554+ USERS POSTS DISCUSSIONS 53
Slide 54: Australia's Largest Startup & Growth Conference
Australia’s Largest Startup & Growth Conference
Slide 55: Awards in 2017
Awards in 2017 Official Honoree - Best Practices th Annual Webby Awards 2016 ‘Top 50 Tech Pioneers Australia and New Zealand, 2016 STEVIE WINNER. Gold Stevie for Company of the Year - Business of Professional Sewvices Large ‘The 2016 International Busnes ‘awards ‘iver Stevie for Utilities & Services
Slide 56: Board of Directors
Board of Directors Technology focused entrepreneurial board with successful exits to major global corporations. Matt Barrie Darren Williams Simon Clausen Chief Executive Officer & Chairman Non-Executive Director Non-Executive Director BE (Hons I) BSc (Hons I) GDipAppFin MAppFin MSEE BSc (Hons I) PhD
Slide 57: Senior management team
Senior management team Specialists in growth, finance, operations, infrastructure, international execution, compliance and engineering Neil Katz Christopher Koch Peter Phillips Amir Massoudi Greg Robinson Sarah Tang Adam Byrnes Sebastián Siseles Chief Financial Deputy Chief Vice President, Director,
Slide 58: Outlook statement FY17
Outlook statement FY17 Freelancer is continuing its exceptional growth and its path to profitability ● Freelancer is continuing its exceptional growth, with record net revenue and GPV in FY16; and this will continue in FY17 ● Freelancer is experiencing the fastest job growth since 2010 (up 53% on pc
Slide 59: Unique investment thematics
Unique investment thematics Freelancer Limited (ASX:FLN) is a unique exposure to: ● Massive market: $5 trillion TAM ● The on-demand and crowdsourced economy ● Increasing internet penetration of emerging markets ● Rising sophistication in emerging markets labour ● Software & mobile eating the world ●
Slide 60: Industry Drivers
Freelancer Limited INDUSTRY DRIVERS 60
Slide 61: The other 50% of the world's population are about to join the Internet
The other 50% of the world’s population are about to join the Internet. 61
Slide 62: It's 2017
It’s 2017 The other four billion are connecting to the Internet at a tremendous pace ● World population1: 7,340,159,492 Internet Users by Development Level 2005-2015E2 Number on the Internet: 3,675,824,813 (50.1%) North America Europe 320 million users 615 million users 89% penetration 74% penetrati
Slide 63: Developing world self-educating to raise socio-economic status
Developing world self-educating to raise socio-economic status The wealth of human knowledge is available online 86% of users of top 10 US sites are already foreign1 ● Five billion people live on $10 a day or less ● The first thing they are looking to do online is raise their socio-economic status ●
Slide 64: Illustrator | 2D Animator | Concept Artist
freelancer Work MyProjects Help Q Search AUD $184 pufutama Illustrator | 2D Animator | Concept Artist —_-.&_ Passionate award winning Director and Animator, with strong ability to translate from written descriptions or early concepts into more refined Illustrations, 2D Animations, as well as App and
Slide 65: Software is eating the world
Software is eating the world “We are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy”1 ● Every industry is being disrupted rapidly, and becoming Advertising dominated by software companies ● White
Slide 66: The world is repeating itself 20 years later
The world is repeating itself 20 years later 66
Slide 67: How big is the market?
Freelancer Limited HOW BIG IS THE MARKET? 67
Slide 68: 160 million jobs, or about 11% of services jobs
“160 million jobs, or about 11% of the projected 1.46 billion services jobs worldwide, could in theory be carried out remotely, barring any constraints in supply” * * McKinsey Global Institute, The Emerging Global Labor Market, Part I: The Demand for Offshore Talent in Services. 68
Slide 69: Estimated demand for Web Design services
Estimated demand for Web Design services (mid-high OECD) Freelancer’s global web design revenue opportunity estimated as $2.7 billion per annum ($10.5b GPV) ● Freelancer’s estimated global web design revenue opportunity at c.$2.7 billion ($10.5b GPV). ● This is as a replacement of existing business
Slide 70: Estimated demand from mid-high income OECD SMEs
Estimated demand from mid-high income OECD SMEs Global small business revenue opportunity estimated as $38 billion per annum (602 million projects, $135 billion GPV) ● There are about 28 million small businesses in the US 420-510 million – 22 million of these are informal non-employers MSMEs globall
Slide 71: Estimated demand from Consumers
Estimated demand from Consumers Engaged active users on major product marketplaces are low hanging fruit for online services. Major product marketplaces as a proxy of consumer demand indicates TAM of A$50 billion (835 million projects, $180 billion GPV) GPV of Taking A$180 billion 300 million active
Slide 72: Estimated supply of professional labour
Estimated supply of professional labour in the developing world 370 million people, or 10% of the 3.7 billion working age population in the developing world have a tertiary qualification ● 2010 global working age population: 3.7 billion, labour force: 2.9 billion1 Educational attainment (2010) % wor
Slide 73: Estimated demand from Local Jobs in the US
Estimated demand from Local Jobs in the US Freelancer’s expansion into 100 categories of Local Jobs expands the total addressable market by up to $800 billion ● Online services is already a huge market, with enormous future potential – McKinsey Global Institute has estimated that “160 million jobs,
Slide 74: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Freelancer Limited (ACN 141 959 042) (Freelancer or the Company). The information contained in this presentation is current at the date of this presentation. The information is a summary overview of the current activities of the