Slide 1: QuickFee Limited Capital Raising Investor Presentation
QUICKFEE LIMITED For personal use only CAPITAL RAISING INVESTOR PRESENTATION May 2024 President, North America, Jennifer Warawa Chief Financial Officer, Simon Yeandle
Slide 2: Important notice and disclaimer
Disclaimer Important notice and disclaimer This presentation (the “Presentation”) is dated 3 May 2024 and has been prepared by QuickFee Limited ACN 624 448 693 Not financial product advice or offer (ASX: QFE) (the “Company”) and its subsidiaries from time to time (“Group”) in connection with the Com
Slide 3: Disclaimer
Disclaimer Forward-looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of Disclaimer future performance. They are subject to known and unknown risks, including the risk factors described under the “Risks” section of this Presentation, unc
Slide 4: Table of Contents
For personal use only TABLE OF CONTENTS I. BUSINESS OVERVIEW 5 II. Q3 FY24 OPERATING HIGHLIGHTS 11 III. OUTLOOK & STRATEGY 15 IV. EQUITY RAISING 26 V. APPENDIX 34
Slide 5: Executive Summary
Executive Summary Quickfee is undertaking a capital raise supported by new and existing shareholders to fund growth in the US and AU loan books + Offers online payments and e-invoicing options designed specifically for professional service firms For personal use only + Integration with leading pract
Slide 6: Business Overview
For personal use only II. BUSINESS OVERVIEW
Slide 7: About QuickFee
About QuickFee Why firms work with QuickFee: Since 2009, QuickFee has offered payments and For personal use only financing for professional services firms, helping They want to Reduce A/R – A/R is the #1 them increase revenue, get paid faster, improve 1 item on the balance sheet for most firms and w
Slide 8: Unique product and payments portfolio
Unique product and payments portfolio Our customers benefit from increased revenue, improved cashflow, reduction in accounts receivable, improved operational efficiency and reduced cost base. For personal use only PAY NOW | ACH/EFT + PAY OVER TIME | QUICKFEE CONNECT | CARD FINANCE AUTOMATION Traditi
Slide 9: Winning with a unique customer value proposition
Winning with a unique customer value proposition For personal use only Traditional ACH and Other ‘Pay Over Other A/R card processors Time’ Finance automation Designed specifically for professional providers platforms service firms No integration with practice management Consumer focused, low Only se
Slide 10: Sizing the US accounting services market opportunity
Sizing the US accounting services market opportunity For personal use only TAM $ 102B > $1M firms SAM $ 84B Firms Servicing B2B Customers (83%) QuickFee Current $10B | $ 1.2B Firms Current accounting firm revenue (9% share of SAM) | Portfolio Transaction volume using QuickFee (12% of rev) www.quickf
Slide 11: Engaging our US target customers
Engaging our US target customers Focus segment: The legal opportunity For personal use only + Professional services with a business-to-business (B2B) focused client base. Primary verticals: + Accounting and Legal, or solution providers to accounting or legal (for example: accounting software or CPA
Slide 12: Q3 FY24 Highlights
For personal use only I. Q3 FY24 HIGHLIGHTS
Slide 13: Strong revenue growth continues, up 36% on pcp
Strong revenue growth continues, up 36% on pcp Strong revenue growth: + Driven by successful execution of core Finance product strategies For personal use only + US Finance revenue up 54% on pcp: Total Transaction Volume (TTV) up 36% and revenue yield up 120 bps + Australia Finance revenue up 50% on
Slide 14: QuickFee Pay Over Time (Finance)
QuickFee Pay Over Time (Finance) AU FINANCE TTV A$M AU FINANCE REVENUE AU FINANCE REVENUE YIELD % A$M Revenue growth driven by both volume and yield 0.4 For personal use only + In both markets, revenue growth has come 0.3 from both TTV growth and yield improvements 13.1 YIELD 15.4% 10.9 TTV 12.3% +
Slide 15: Strong revenue growth expected to continue
Strong revenue growth expected to continue GROUP REVENUE BY QUARTER (A$M) 'LAST 12 MONTHS' ROLLING For personal use only 5.1 GROUP REVENUE (A$M) 4.9 18.5 17.2 15.8 4.3 4.2 14.0 14.8 13.0 11.9 3.7 3.6 3.2 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24
Slide 16: Outlook & Strategy
For personal use only III. OUTLOOK & STRATEGY
Slide 17: Unlocking transformational growth in the US
Unlocking transformational growth in the US Drive Cost Effective Growth QuickFee Finance For personal use only Through Automation Revenue yields on the Finance Leverage automation across all product are approximately 25x functional areas to ensure we are those of Pay Now. driving growth in the most
Slide 18: US Finance revenue up 54% in Q3 FY24 on pcp
US Finance revenue up 54% in Q3 FY24 on pcp US FINANCE 'LAST 12 MONTHS ROLLING' TTV QuickFee Finance is a key differentiator in competitive payments (US$M) 26.2 market For personal use only 24.4 22.0 Revenue yields on the Finance product are approximately 25x 20.9 19.3 those of Pay Now 17.8 18.7 200
Slide 19: Q3 FY24 Operational metrics in the US
Q3 FY24 Operational metrics in the US + US Active Customers up 14% to 97,000 and US Active Firms up 3% to 689 on pcp + The strategic decision to focus on the core, higher-margin Finance product, in conjunction with a refreshed sales strategy with For personal use only incentive alignment on commissi
Slide 20: Australia: Continued strong organic growth
Australia: Continued strong organic growth AU FINANCE 'LAST 12 MONTHS' ROLLING TTV (A$M) 53.4 QuickFee well established as a market leader, with 51.2 For personal use only 48.5 ~40% of the AU market for fee funding 44.5 46.4 41.5 39.1 + AU Finance revenue up 50% on pcp + Strong organic growth throug
Slide 21: Q3 FY24 Operational metrics in Australia
Q3 FY24 Operational metrics in Australia + AU Finance TTV up 20% on pcp to $13.1 million + AU Active Customers up 25% on pcp to 15,000, AU Active Firms stable on pcp at 411 For personal use only + Legal disbursement funding TTV (included within Finance TTV) continues to be a growing component of the
Slide 22: On the path to profitability
On the path to profitability For personal use only Path to profitability 9.3 + Track record of revenue growth 7.9 6.9 6.1 5.7 4.7 4.9 4.5 4.3 4.2 4.5 + Track record of gross profit growth 3.2 3.1 3.4 + Cost base stable -2.6 -2.7 -2.7 -3.7 + Year-on-year EBTDA growth -5.2 -5.5 expected to continue fo
Slide 23: Stabilised cost base
Stabilised cost base Operating expenses (A$M) Underlying operating expenses 10.5 9.7 0.5* reduced in H1 FY24 vs H1 FY23. For personal use only 8.4 8.3 7.7 7.9 5.8 G&A expenses increased in H1 FY24 by $0.2 million vs H2 FY23 due to share- H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 based
Slide 24: Fixed cost leverage effect
Fixed cost leverage effect Variable costs: For personal use only + Mainly comprise AU card processing and US ACH Indicative impact of fixed cost leverage on processing costs and interest hypothetical future half-yearly year-on-year revenue growth of 30-40% + Are approximately 30% - 35% of revenue +
Slide 25: Cash and loan book growth funding
Cash and loan book growth funding Cash and liquidity For personal use only + A$3.2 million cash on hand, with borrowing capacity of a further A$23.2 million from existing facilities available to fund future loan book growth, as at 31 March 2024 + QuickFee has adequate headroom to achieve sustainable
Slide 26: Outlook
Outlook Focus on reaching profitability + Positive momentum in key metrics For personal use only + Continue to manage cost base carefully + Focus on fastest path to profit: QuickFee Finance and Connect solutions + Expect stronger H2 FY24 than H1 FY24 Focus on unlocking transformational growth in the
Slide 27: Equity Raising Overview
For personal use only IV. EQUITY RAISING OVERVIEW
Slide 28: Equity Raising Overview
Equity Raising Overview QuickFee is raising A$4.25 million via the issuance of approximately 53.1 million fully paid ordinary new shares (“New Shares”) at an Offer Price of A$0.08 per New Share (“the Offer”), comprising: For personal use only + A Two-Tranche Institutional Placement (“Placement”) to
Slide 29: Equity Raising Overview (cont.)
Equity Raising Overview (cont.) Two-Tranche Placement to raise up to approximately $3.75 million via the issue of approximately 46.9 million New Shares to Professional and Sophisticated investors, comprising: For personal use only + Approximately $3.4 million via the issue of approximately 42.5 mill
Slide 30: Equity Raising Overview (cont.)
Equity Raising Overview (cont.) + While the SPP is not underwritten, the Company intends to receive binding commitments (“SPP Shortfall Commitments”) one or more investors who participate in the Placement (the “SPP Shortfall Investors”), to subscribe for up to an additional A$0.5 million of new, ful
Slide 31: Sources and Uses of Funds
Sources and Uses of Funds Proceeds will be used to fund growth in loan books. Sources of Funds A$m % For personal use only Placement (Tranche 1) $3.4m 79.0% Placement (Tranche 2) $0.4m 9.3% SPP $0.5m 11.7% Total $4.3m 100.0% Uses of Funds A$m % Lending book growth $4.0m 93.0% Costs of the Offer $0.3
Slide 32: Timetable
Timetable Trading Halt Wednesday, 1 May 2024 Institutional Placement opens Wednesday, 1 May 2024 For personal use only Final bids due with the right to close early 12:00pm Thursday, 2 May 2024 Placement Confirmation Letters and CARD Forms due 7:00pm Thursday, 2 May 2024 Record Date for the SPP 7:00p
Slide 33: Pro Forma Capital Structure
Pro Forma Capital Structure Capital Structure For personal use only % No. of Securities Securities issued in No. of Securities Issued share capital % (on an undiluted (pre-equity raising) equity raising (post-equity raising) basis) Existing investors 275,064,852 100.0% - 275,064,852 83.8% Other secu
Slide 34: Pro Forma Balance Sheet (undiluted)
Pro Forma Balance Sheet (undiluted) A#039;M 31 December 2023 Capital raising Pro forma Cash and cash equivalents 3.9 4.0 7.9 Loan receivables (current) 46.5 - 46.5 For personal use only Trade and other current assets 1.0 - 1.0 Total current assets 51.4 4.0 55.4 Loan receivables (non-current) 1.3 - 1.3
Slide 35: Appendix
For personal use only V. APPENDIX
Slide 36: Risks: QuickFee Specific Risks
RISKS QUICKFEE SPECIFIC RISKS An investment in QuickFee (“Company”) is not risk free. Below are some of the risk factors that should be considered in connection with the Company, the Capital Raising and other general market risks. For personal use only There is a risk of potential failure of clients
Slide 37: Risks: QuickFee Specific Risks
RISKS QUICKFEE SPECIFIC RISKS The commercial lending sector in the US is regulated on a State by State basis. QuickFee US’s loan contract designates California as the state law that governs the transaction. For personal use only US States fall into two categories: (i) States where the law does not g
Slide 38: Risks: QuickFee Specific Risks
RISKS QUICKFEE SPECIFIC RISKS The Company operates in Australia and the US, and may do business in other international jurisdictions at a later date. For personal use only The Company’s operations could therefore be subject to a number of risks inherent in global operations, including political and
Slide 39: Risks: QuickFee Specific Risks
RISKS QUICKFEE SPECIFIC RISKS Through the ordinary course of business, the Company collects a wide range of confidential information from its customers (including personal, financial and credit related information). The cyber threat to companies in Australia, the United States and around the world i
Slide 40: Risks: Capital Raising and Investment Risks
RISKS CAPITAL RAISING AND INVESTMENT RISKS Existing shareholders who do not participate in the Capital Raising will have their percentage shareholding in the Company diluted. Depending on the size of a shareholder’s For personal use only existing holding, a participating shareholder may still be dil
Slide 41: Risks: Capital Raising and Investment Risks
RISKS CAPITAL RAISING AND INVESTMENT RISKS As a publicly-listed company on ASX, the Company is subject to general market risk that is inherent in all securities listed on a stock exchange. After the end of the relevant Price of Shares escrow periods affecting Shares in the Company, a significant sal
Slide 42: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of New Securities of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Austral
Slide 43: Contact Details
For personal use only CONTACT DETAILS Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com Katie Mackenzie, Investor Relations p: +61 455 502 197 e: kmackenzie@belleviewir.com.au