Slide 1: H1 FY22 Results
16 February 2022 H1 FY22 Results Managing Director and Chief Executive Officer, Eric Lookhoff Chief Financial Officer, Simon Yeandle
Slide 2: H1 FY22 Highlights
H1 FY22 Highlights Continued growth in all key metrics A stronger half-year in the US for Pay Now and Financing: + Pay Now total transaction values (TTV) up 48% to US$423 million (H1 FY21: US$285 million) Record volumes in + Financing up 4% to US$8.2 million (H1 FY21: US$7.9 million) the US + Av
Slide 3: The Transition to a Profitable Payments Company
The Transition to a Profitable Payments Company 2009 2016 2019 2020 2021 Founded in Australia Expanded to the Initial public offering COVID-19 impacts QuickFee becomes a United States (IPO) on ASX Payments Company Bruce Coombes Accelerated shift to Eric Lookhoff joins as President, est
Slide 4: Core Lines of Business
Core Lines of Business PROFESSIONAL SERVICES BUY NOW, PAY LATER (BNPL) www.quickfee.com 4
Slide 5: Professional Services
Professional Services
Slide 6: US: H1 FY22 Professional Services Summary
US: H1 FY22 Professional Services Summary US professional services business continues to grow Expanded go-to-market strategy has delivered: + New merchant growth, taking advantage of the structural shifts to online payments + Increased share of existing merchant volumes, via account-based marketin
Slide 7: AU: H1 FY22 Professional Services Summary
AU: H1 FY22 Professional Services Summary Steady recovery in lending There was a steady recovery during H1 FY22, with growth in both customer and merchant numbers. We continued to expand our customer and merchant base at a higher rate than FY21; active customers were up 5% vs H1 FY21 (FY21 was u
Slide 8: Practice Management Integrations
Practice Management Integrations QuickFee integrations broaden our merchant relationships, create greater lifetime value, and will expand our current 13% penetration level Integrations with third party software and merchants: + Cement relationships; connect to the systems our customers already use
Slide 9: Buy Now, Pay Later
Buy Now, Pay Later
Slide 10: BNPL: H1 FY22 Summary
BNPL: H1 FY22 Summary ISO strategy is building the foundations for accelerated growth We have signed 128 independent sales organisations (ISOs) in H1 FY22. Merchant growth of 64% in the US and 26% in AU; total signed merchants now at 946 and 295 respectively. Annualised ‘run-rate volume backlo
Slide 11: BNPL Portfolio Activity
BNPL Portfolio Activity Global BNPL annualised backlog (A#039;M) Signed merchants 7.0 700000 1,000 6.0 600000 946 800 6.1 5.0 0.6 500000 736 5.4 600 4.0 4.6 400000 577 0.4 400 3.0 0.4 300000 370 200 258 295 2.0 200000 234 2.3 161 1.0 0.2 100000 - Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 - 0 31 Mar 21 30 Jun 21
Slide 12: BNPL Portfolio Valuation
BNPL Portfolio Valuation Volume backlog formula 31 December 2021 (US$) 31 December 2021 (A$) 1 STEP Estimate Signed merchants at 31 December 2021 946 295 processing Life-to-date activation rate 20% 26% Life-to-date engagement rate 35% 22% volume Life-to-date transaction velocity 1.9 1.3 Life-to-date
Slide 13: H1 FY22 Financial Highlights
H1 FY22 Financial Highlights
Slide 14: Group Profit and Loss
Group Profit and Loss H1 H1 Results reflect commitment to invest in A#039;M FY22 FY21 $+/- %+/- future growth Interest revenue 2.4 2.6 (0.2) (8)% Interest expense (0.3) (0.6) 0.3 50% Net interest revenue 2.1 2.0 0.1 5% Total revenue (interest revenue + revenue from contracts) up 5% to A$4.7 Revenue f
Slide 15: Group Balance Sheet
Group Balance Sheet 31 Dec 30 June A#039;M 2021 2021 $+/- %+/- Balance sheet remains strong and Cash and cash equivalents Loan receivables (current) 11.6 27.8 21.3 25.8 (9.7) 2.0 (46)% 8% well-funded Payment processing receivables 1.3 0.9 0.4 44% Trade and other current assets 1.2 1.1 0.1 9% Total curr
Slide 16: Technology and Operations
Technology and Operations
Slide 17: Technology and Operations
Technology and Operations QuickFee Unified Business Engine (QUBE) We completed initial development of our proprietary processing services (QUBE) beginning with BNPL. Remaining US migrations over FY22 will include ACH, Card and Financing Major Kepler: our new ‘merchant direct’ application platform
Slide 18: Outlook and Priorities
Outlook and Priorities
Slide 19: Outlook and Priorities
Outlook and Priorities Leverage our Continued momentum in professional services: most valuable assets + Catalyst for shift to digital invoicing and payments Further + Increase US market share through further penetration of accounting firm penetration in alliances and associations accounting ve
Slide 20: Conclusion
Conclusion Lending volumes rebounding Demonstrable strength of from effects of COVID-19 Integrations with practice the core business model stimulus in both AU and US management software through customer solutions will drive greater retention and growth over penetration of existing the pandemic captu
Slide 21: Questions
16 February 2022 PAY NOW PAY LATER Questions mn
Slide 22: Disclaimer
Disclaimer The material contained in this document has been prepared readers are cautioned not to place undue reliance on these by QuickFee Limited ACN 624 448 693 (‘company’) and forward-looking statements. No representation is made as contains general information about the company’s to the accurac
Slide 23: Glossary
Glossary ACH Automated Clearing House A type of electronic bank-to-bank payment in the US, equivalent to EFT in Australia APR Annual percentage rate The annual rate of interest on payment plans or loans CC Credit card Connect QuickFee’s internal product name for its point-of-payment integration, e-i
Slide 24: Contact Details
Contact Details: • Eric Lookhoff, CEO p: +61 2 8090 7700 e: eric.lookhoff@quickfee.com • Simon Yeandle, CFO p: +61 2 8090 7700 e: simon.yeandle@quickfee.com • Eric Kuret, Investor Relations p: +61 3 9591 8904 e: eric.kuret@marketeye.com.au www.quickfee.com 24
Slide 25: Appendix
PAY NOW Ww ea Appendix 16 February 2022
Slide 26: US Profit and Loss
US Profit and Loss Results reflect commitment to invest in H1 H1 future growth A#039;000s FY22 FY21 $+/- %+/- Interest revenue 721 805 (84) (10)% Interest expense - (269) 269 100% Interest revenue was down 10%, consistent with a shorter average loan term in H1 FY22 (9.0 months vs 9.8 months in FY20 a
Slide 27: AU Profit and Loss
AU Profit and Loss Lending recovery still to show in revenue H1 H1 A#039;000s FY22 FY21 $+/- %+/- Interest revenue 1,678 1,824 (146) (8)% Interest income down 8% reflecting the tail of the FY21 lending decrease; Q1 FY22 interest revenue was down on pcp, but Q2 FY22 interest revenue was flat Interest
Slide 28: Group Cash Flow
Group Cash Flow H1 H1 A#039;M FY22 FY21 $+/- %+/- Results reflect commitment to invest in Interest, fees and charges from customers (inclusive of future growth GST) 4.8 4.5 0.3 7% Payments to suppliers and employees (inclusive of GST) (10.4) (6.5) (3.9) (60)% Interest paid (0.2) (0.6) 0.4 67% Changes
Slide 29: Liquidity
Liquidity Well funded with adequate liquidity and growth capacity 31 Dec 2021 proforma with 31 Dec 30 June Liquidity + growth capacity has increased post 31 December 2021 to A$52.8 A#039;M Northleaf 2021 2021 million from A$33.0 million at 30 June 2021. QuickFee announced during H1 FY22 that it has
Slide 30: Reconciliation from Adjusted EBITDA to Operating Loss
Reconciliation from Adjusted EBITDA to Operating Loss A$ H1 FY22 H1 FY21 Adjusted EBITDA* per slide 14 (7,125,473) (2,611,939) Depreciation and amortisation included in general and administrative expenses in Appendix 4D (205,619) (232,562) Operating loss for the period per Appendix 4D (7,331,092) (2
Slide 31: Historical metrics – US
Historical metrics – US FY20 FY21 FY22 Total transaction volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY20 Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Professional services US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M US#039;M Pay Now ACH 29.1 43.9 73.0 48.9 106.8 155.7 228.7
Slide 32: Historical metrics – AU
Historical metrics – AU FY20 FY21 FY22 Total transaction volumes (TTV) Q1 Q2 H1 Q3 Q4 H2 FY20 Q1 Q2 H1 Q3 Q4 H2 FY21 Q1 Q2 H1 Professional services A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M A#039;M Pay Now EFT 3.1 3.4 6.5 2.8 4.0 6.8 13.3 3.5 3.5 7.0 2.8 4.0 6.8 13