Slide 1: 1H 2016 Financial Results
For personal use only 28 July 2016 Freelancer Limited 1H 2016 Financial Results Matt Barrie Chief Executive Officer
Slide 2: Freelancer delivers another record result with positive operating cash flow
Freelancer delivers yet another record result with strong positive For personal use only operating cash flow and positive operating EBITDA for 1H16 • Record 1H Net Revenue $26.2m (up 56% on pcp) • Five year revenue CAGR 52% (FY10-15) • Record 1H GPV $354.9m (up 453% on pcp) • Positive 1H Operating C
Slide 3: Freelancer.com and Escrow.com
Freelancer.com Escrow.com For personal use only Freelancer.com Escrow.com #1 Online Services Marketplace #1 for Secure Online Payments Over US$3.0 billion in ~US$3.0 billion in projects posted escrow transactions
Slide 4: For personal use only
Por perS@nal use only Wrreetancer
Slide 5: Million users
For personal use only MILLION USERS ara W freelancer
Slide 6: Financial highlights 1H16
Financial highlights 1H16 Freelancer delivers yet another record result with accelerating revenue and GPV growth, and positive operating EBITDA For personal use only ● Record Net Revenue of $26.2m in 1H16 (up 56% on pcp, above 5-year CAGR of 52%) – acceleration from 1H15 growth of 41% year on year,
Slide 7: Financial summary 1H16
Financial summary 1H16 Record net revenue $26.2m (+56%), record GPV $357.1m (+453%), operating cash flow positive $4.5m For personal use only A$m, 30 June half year end 1H16 1H15 Change Net Revenue1($m) 26.2 16.8 56% Gross Payment Volume1,2 ($m) 354.9 64.1 453% Take rate3 (%) 7.4 26.24 nm Gross marg
Slide 8: Continuation of outstanding marketplace growth (Freelancer.com)
Continuation of outstanding marketplace growth (Freelancer.com) Continues to experience exceptional growth in users and total jobs posted For personal use only Total Registered Users1 8,000,000 Total Jobs Posted (Filtered) 1 18,000,000 7,000,000 16,000,000 As at 30 June 2016 As at 30 June 2016 ~20 m
Slide 9: Marketplace dynamics 1H16
Marketplace dynamics 1H16 Freelancer continues to break new records and accelerate its growth trajectory For personal use only ● Key milestones of ~20 million users and >9 million jobs posted. ● Passed US$3.0 billion of all time posted project and contest value in the core business and US$2.975 bill
Slide 10: Jobs Posted per Month
Jobs Posted per Month1 1H16 was an exceptional half for posted jobs 250 10.0 For personal use only Total per month (thousands) Cumulative (millions) 223 9.3 218 9.1 206 208 8.9 200 9.0 200 8.7 185 8.4 8.2 8.0 8.0 7.9 7.7 151 150 151 7.6 149 146 150 144 143 142 7.4 139 7.3 135 7.1 7.0 122 122 118 119
Slide 11: Accelerating payments growth (Escrow.com)
Accelerating payments growth (Escrow.com) One million users have conducted more than 764,000 transactions to date For personal use only Total number of users Total number of transactions 1,000,000 As at 30 June 2016 As at 30 June 2016 ~1.0m, added ~761k, added 40,679 in 1H16 30,372 in 1H16 800,000 6
Slide 12: Liquidity: >70% of projects get a bid within seconds
Liquidity: >70% of projects get a bid within 60 seconds (supply) Number of bids on projects Average number of bids in 1 hour Number of entries in contests For personal use only Actual completed projects Actual contest entries 3D Interior Design 3D Helmet Design 3D Growler Mobile App Mockup Music Alb
Slide 13: Freelancer.com highlights during 1H16
Freelancer.com highlights during 1H16 Over 1,460 material incremental changes were made to Freelancer.com and 380 for Escrow.com in 1H16 • For personal use only Payments – addition of Chinese Yuan, addition of key new gateways including AliPay and UnionPay (China), iDEAL (Netherlands), SOFORT Bankin
Slide 14: Escrow.com highlights during 1H16
Escrow.com highlights during 1H16 The Escrow.com team has made major progress in the re-architecture of the legacy Escrow.com platform for growth • For personal use only Record key metrics in 1H16: added 40,679 users (up 18.7% on pcp) and 30,372 transactions (up 20% on pcp). • Operations: secured le
Slide 15: Group highlights during 1H16
Group highlights during 1H16 Multiple award wins and research initiation by UBS For personal use only UBS Investment Bank initiates research coverage • Initiation report published in April 2016. Continues to dominate awards • Won 2 Webby Awards including Best Employment Website & People’s Voice, as
Slide 16: Revenue growth
Revenue growth Record 1H16 net revenue of $26.2m, up 56% on prior corresponding period For personal use only Net Revenue (A$m) and Gross Margin (%) 26.2 ● Record 1H16 Net Revenue of $26.2m, up 56% on 1H15 2 5 .0 1 0 0 % – Freelancer core contribution: $21.8m, up 30% on 1H15 87% 87% 88% 88% 88% 87% –
Slide 17: Gross payment volume
Gross payment volume Record Gross Payment Volume1 (GPV) of $354.9m (up 453% on pcp) driven by Escrow.com contribution For personal use only 354.9 Gross Payment Volume1 (A$m) 3 5 0 .0 ● Record GPV of $354.9m up 453% on 1H15 +453% ● Freelancer core marketplace segment growth of 26% on pcp – contributi
Slide 18: Escrow.com financial performance
Escrow.com financial performance 1H16 & FY15 significant step up on historical financial performance For personal use only Revenue (US$ ‘000) Gross Payment Volume (GPV) (US$) 7,000 450,000,000 20% growth in 2015 34% growth in 2015 13% 5-year CAGR1 400,000,000 18% 5-year CAGR1 6,000 350,000,000 5,000
Slide 19: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) 1H 2015 1H 2016 Change ● Record 1H16 Net Revenue of $26.2m, up 56% on 1H15 Half-year to 30 June Actual Actual – Freelanc
Slide 20: Summary balance sheet
Summary balance sheet Strong balance sheet and no net debt For personal use only (A$m) 2H 2015 1H 2016 Change ● Total cash of $35.2m on balance sheet as at 30 June 2016 Actual Actual ● Additional $26.3m of cash held off balance sheet, in trust, as Cash and cash equivalents 32.2 35.2 9% part of Escro
Slide 21: Cash flow profile
0.2 Cash flow profile Re-investing for growth, with positive operating cashflow of $4.5 million in 1H16 For personal use only Cash Balance/Flows (A$m) ● 31 December 2015 cash balance of $32.2m 0.2 0.3 (1.3) ● Positive operating cashflow of $4.5m 4.3 0.6 ● Exchange rate impacts on cash 0 primarily re
Slide 22: Key operational highlights 1H16
Key operational highlights 1H16 Moved Escrow.com head office to San Francisco and continued investment in talent to drive growth in FY16 For personal use only Total staff of 469 FTE at 30 June 2016, up 7% from 440 as at 31 December 2015 22
Slide 23: Outlook statement for the full year
Outlook statement for the full year FY16 will be an exceptional year for the Company with a full year contribution from Escrow.com For personal use only • Freelancer’s marketplace business is acyclical. The global financial crisis led to the original emergence of the online crowdsourcing and freelan
Slide 24: Unique investment thematics
Unique investment thematics Freelancer Limited (ASX:FLN) is a unique exposure to: For personal use only ● The on-demand and crowdsourced economy ● Rapidly increasing internet penetration of emerging markets ● The rise of online education ● Rising sophistication in emerging markets labour ● Software
Slide 25: Company
For personal use only Freelancer Limited COMPANY
Slide 26: Build that business you've always wanted
For personal use only LOGO DESIGNS FROM $30 Build that business you've always wanted. You bring the vision, we have the talent, tailored to your budget.
Slide 27: Job examples
For personal use only Freelancer Limited JOB EXAMPLES
Slide 28: Job examples
For personal use only Freelancer Limited JOB EXAMPLES
Slide 29: Freelancer.com is changing the global dynamics in the marketplace for people
For personal use only Freelancer.com is changing the global dynamics in the marketplace for people 29
Slide 30: 3D model design of a VR helmet for $500
3D MODEL DESIGN OF A VR HELMET FOR $500 We help entrepreneurs build the future. W We help small businesses, startups and entrepreneurs turn that spark of an idea into reality °W freelancer
Slide 31: Changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportu and © income. (4 é, After two years I've been doing really well on Freelancer.com. The earnings are very good and now IJ havea lot of respect among my friends a mily members. Thanks Freelancer for ev erything! l
Slide 32: 160 million jobs could be carried out remotely
For personal use only “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
Slide 33: Global, Multilingual, Multicurrency
Global, Multilingual, Multicurrency For personal use only 52 Regional Websites 34 Supported Languages 21 Supported Currencies Languages Currencies Afrikaans 日本語 USD CLP NZD Bahasa Indonesia 한국어 AUD JMD PHP Bahasa Malaysia Norsk-Bokmål CAD IDR PLN বাংলা Nederlands EUR MXN SGD Català Polski GBP SEK BR
Slide 34: Freelancer's Online Economy in 2014
Freelancer’s Online Economy in 2014 For personal use only 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 34 freelancers. Thicker lines indicate a higher volume of wo
Slide 35: Freelancer's Online Economy in 2015
Freelancer’s Online Economy in 2015 For personal use only 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 35 freelancers. Thicker lines indicate a higher volume of wo
Slide 36: Marketplace dynamics
Marketplace dynamics “Every job, every country, every language, every currency, at any time” For personal use only Top country sources for completed projects in 1H161 ● c.900 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, United States Manufacturing, Mechanical Engineering
Slide 37: Revenue Model
Revenue Model Freelancer’s revenue is driven by users posting jobs – as a project (outsourcing) or a contest (crowdsourcing) For personal use only ● 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 proje
Slide 38: Board of Directors
Board of Directors Technology focused entrepreneurial board with successful exits to major global corporations. For personal use only Matt Barrie Darren Williams Simon Clausen Chief Executive Officer & Chairman Non-Executive Director Non-Executive Director BE (Hons I) BSc (Hons I) GDipAppFin MAppFin
Slide 39: Senior management team
Senior management team Specialists in growth, finance, operations, infrastructure, international execution, compliance and engineering For personal use only Neil Katz Christopher Koch Peter Phillips Greg Robinson Matt O’Kane Nicholas de Jong Adam Byrnes Sebastián Siseles Chief Financial Deputy Chief
Slide 40: Job examples
For personal use only Freelancer Limited JOB EXAMPLES
Slide 41: For personal use only
41 For personal use only
Slide 42: 3D rendering of a villa from 2D floor plan for $100
3D rendering of a villa from 2D floor plan for $100 For personal use only 42
Slide 43: Website for Fresh Futures for $277
Website for Fresh Futures for $277 For personal use only 43
Slide 44: Paper towel design and render for CAD $55
Paper towel design and render for CAD $55 For personal use only 44 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/
Slide 45: Create a logo for Raidfox
45 ‘Wf freelancer Hire Freelancers Work Manage Help (o] AUD $ EA @ & Create a logo for Raidfox Entries 435 Total entries View: (435) All Entries > Sortby: Relevance > | 3 | 32 | BD Raidfox”™ To ed ‘<) Fox by paxslg by paxslg by Starwinner by taganherbord ti Entry #304 Entry #76 RAIDF@X Raid by thefr
Slide 46: 3D Rendering contest
» freelancer Hire Freelancers © Work — Manage Help Q avossse” EST A @ & 3D Rendering of my pent! Entries 30 Total Entries View: (30) All Entries + Sort by: Relevance $ | {i by archmamun by SDBclndia by asviridenko92 by WaOne1987 Entr Entry #9 Entry #8 Entry #26 kkk kk v2 8 kkk kk v2 kkk kk v1 m2 kkk
Slide 47: For personal use only
47 For personal use only
Slide 48: Design me Metallic Street Furniture
48 ¥ freelancer’ Hire Freelancers Work Manage Help (o] AUD $ ea bo fit , Design me Metallic Street Furniture Entries 50 ‘total entries View: (50) All Entries + Sort by:Relevance > iH | by kvp77 by aniketSs by RajAsodia by BruteF tr Entry #2 Entry #1 by headplate by aniketSS by kvp77 by zacky250 Entr
Slide 49: For personal use only
49 For personal use only
Slide 50: 3D Handrail for an EVA spacewalk
50 ‘Wf freelancer Hire Freelancers Work Manage Help Q avossse" ES A @® $3 3D Handrail for an EVA spacewalk Entries 121 total Entries View: (124) All Entries + Sort by:Relevance > | ii) Hi | by Miguel3D by BlackRiddles by Electrojesus by Jeffersonben r tr Entry #28 Entry #1 by speedmaster96 by gmidel
Slide 51: For personal use only
For personal use only
Slide 52: Robonaut delivered February 2011 to the ISS
For personal use only Robonaut 2 delivered February 2011 to the ISS. Pictured here with Zero-G leg upgrade which will allow EVA spacewalks via external handrails.
Slide 53: For personal use only
For personal use only
Slide 54: 2016 Freelancer & NASA team up
= we 2016 4 FREELANCER & NASA TEAM UP 4 : TO PUSH THE BOUNDARIES . personal ggeuOr\7ie = | | OF HUMAN INNOVATION . In the latest set of challenges, we will designing a robotic arm for the —@p Astrobee, the next generation of free flying robots on the International Space Station. — 50+ 88 (© 7 CHALLE
Slide 55: Product update
For personal use only Freelancer Limited PRODUCT UPDATE
Slide 56: Beautiful Products
For personal use only Beautiful Products
Slide 57: Mobile
Mobile For personal use only 82% of projects are now touched by mobile
Slide 58: Contests
Contests For personal use only 66 entries per 50% of the contests Give feedback and get contest on average receive their first entry exactly what you need in the first hour with real time chat
Slide 59: Local Jobs
Local Jobs For personal use only 60% of local jobs get a quote in under an hour. Anywhere in the world.
Slide 60: Freelancer Tools
Freelancer Tools For personal use only Improved interface 48% increase in active Audio & video chat for project conversations on the now available management platform (YoY)
Slide 61: Million users have transacted US$3 billion through Escrow.com
For personal use only 1 million users have transacted US$3 billion securely through Escrow.com
Slide 62: Warrior Forum
=~ FORUM [= > ELC Redefined. 2) The Vault. =) aa —_— @ - @3Rsae The #1 Internet Marketing Forum Since 1997 1,107,939+ 9,765,737+ 902,008+ USERS POSTS DISCUSSIONS
Slide 63: Startcon
ie STARTCON Sean Ellis Founder of GrowthHa@Gkers Australia’s Biggest Startup & Growth Conference
Slide 64: Industry drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS
Slide 65: The other 55% of the world's population are about to join the Internet
For personal use only The other 55% of the world’s population are about to join the Internet. 65
Slide 66: It's 2016
It’s 2016 The other four billion are connecting at a tremendous pace For personal use only ● World population1: 7,259,902,243 Internet Users by Development Level 2005-2015E2 Number on the Internet: 3,366,261,156 (46.4%) North America Europe 313 million users 604 million users 88% penetration 74% pen
Slide 67: 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 For personal use only 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 s
Slide 68: For personal use only
freelancer = Hire Freelancers Work © MyProjects —Help Q Search ‘AUD $184 pufutama Illustrator | 2D Animator | Concept Artist —_._ Passionate award winning Director and Animato! from written descriptions or early concepts into more refined Illustrations, 2D Animations, as well as App and Game Assets.
Slide 69: 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 For personal use only ● Every industry is being disrupted rapidly, and becoming Advertising dominated by soft
Slide 70: The world is repeating itself years later
For personal use only The world is repeating itself 20 years later 70
Slide 71: Escrow.com
For personal use only Freelancer Limited ESCROW.COM
Slide 72: Payments you can trust
For personal use only Payments you can trust. The world’s #1 provider of secure online payments. US$3 billion of transactions protected.
Slide 73: Escrow.com's Online Economy in 2014
Escrow.com’s Online Economy in 2014 For personal use only Note: Sample of transactions. The pink lines indicate where Escrow transactions are being originated by buyers, and the blue lines indicate where transactions are being fulfilled by sellers. 73 Thicker lines indicate higher volume. White dots
Slide 74: Escrow.com's Online Economy in 2015
Escrow.com’s Online Economy in 2015 For personal use only Note: Sample of transactions. The pink lines indicate where Escrow transactions are being originated by buyers, and the blue lines indicate where transactions are being fulfilled by sellers. 74 Thicker lines indicate higher volume. White dots
Slide 75: You wouldn't sell your car with PayPal
You wouldn’t sell your car with PayPal For personal use only 75
Slide 76: In fact, eBay doesn't think so either
In fact, eBay doesn’t think so either: For personal use only “Important: Only use Escrow.com” 76
Slide 77: Escrow.com is used to secure a wide range of transaction types
Escrow.com is used to secure a wide range For personal use only of transaction types
Slide 78: Licensed, bonded, audited, 0% chargebacks
For personal use only Audited Licensed 0% chargebacks Bonded 78
Slide 79: Escrow.com 5-step trust process
Escrow.com is the only licensed, bonded & audited secure online solution that protects both the buyer and the seller with a simple, 5-step trust process For personal use only 1 2 3 4 5 Buyer & seller Buyer pays Seller ships Buyer accepts Escrow.com agree to terms Escrow.com merchandise the merchandi
Slide 80: Escrow.com secures transactions from $100 to $10,000,000+
Escrow.com For personal use only secures transactions from 1975 Piper PA-23-250 securely sold through Escrow.com $100 to $10,000,000+ Transact in 2004 Fountain 38 LX securely sold through Escrow.com US Dollars or Euros 2003 Ferrari Enzo securely sold through Escrow.com
Slide 81: Escrow.com makes import / export simple
Escrow.com For personal use only makes import / export simple No more expensive & complicated letters of credit
Slide 82: Industrial & heavy equipment sold through Escrow.com
Industrial & heavy equipment sold through Escrow.com For personal use only 2014 FANUC 2006 Caterpillar Industrial Robot D5N Dozer
Slide 83: Escrow.com protects jewellery and fine art sales
For personal use only Escrow.com protects the sale of jewellery and fine art including the purchase of Andy Warhol’s “Queen Elizabeth Suite”
Slide 84: Escrow.com protects the supply of services
Escrow.com also For personal use only protects the supply of services such as as holiday rentals or designing a website
Slide 85: Where the Internet is bought and sold
Where the Internet is bought and sold For personal use only
Slide 86: How big is the market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET?
Slide 87: Estimated demand for Web Design services alone
Estimated demand for Web Design services alone Freelancer’s global web design revenue opportunity estimated as $2.7 billion per annum ($10.5b GPV) For personal use only ● Freelancer’s estimated global web design revenue opportunity at c.$2.7 billion ($10.5b GPV) ● This is as a replacement of existin
Slide 88: Estimated demand from Small Businesses
Estimated demand from Small Businesses Global small business revenue opportunity estimated as $31.9 billion per annum (571 million projects, $122 billion GPV) For personal use only ● There are about 28 million small businesses in the US 420-510 million – 22 million of these are informal non-employer
Slide 89: 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 c.$54 billion (900 million projects, $200 billion GPV) For personal use only GPV of Taking c.$200 bi
Slide 90: Estimated supply of professional labour in the developing world
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 For personal use only ● 2010 global working age population: 3.7 billion, labour force: 2.9 billion1 Educational a
Slide 91: Estimated demand from Local Jobs
Estimated demand from Local Jobs Freelancer’s expansion into 100 categories of Local Jobs expands the total addressable market by up to $800 billion For personal use only ● Online services is already a huge market, with enormous future potential – McKinsey Global Institute has estimated that “160 mi
Slide 92: 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