ASX Small and Mid-Cap Conference 2020. September 2020 1 - PowerPoint PPT Presentation

ASX Small and Mid-Cap Conference 2020. September 2020 1

Disclaimer This presentatjon (Presentatjon) has been This Presentatjon is for informatjon purposes This Presentatjon contains certain “forward- Forward-looking statements are not prepared by Openpay Group Limited (ACN only and is not a fjnancial product or looking statements”. Forward-looking guarantees of future performance and involve 637 148 200) (Company). Any references to investment advice or a recommendatjon to statements can generally be identjfjed by known and unknown risks, uncertaintjes and “Openpay” or “Group” in this Presentatjon acquire Company shares. The informatjon the use of words such as “may”, “will”, other factors, many of which are outside refer to the Company and its controlled in this Presentatjon has been prepared “expect”, “intend”, “plan”, “estjmate”, the control of Openpay. These forward- entjtjes. by the Company in good faith and with “antjcipate”, “believe”, “contjnue”, looking statements are subject to various risk due care, but the Company does not “objectjves”, “outlook”, “guidance” and factors that could cause Openpay’s actual The informatjon in this Presentatjon contains make any representatjon or warranty, similar expressions. Indicatjons of plans, results to difger materially from the results summary informatjon about Openpay and express or implied, as to the fairness, strategies and objectjves or management, expressed or antjcipated in these statements. its actjvitjes as at 31 August 2020, is correct accuracy, correctness or completeness of sales and fjnancial performance are Readers are cautjoned not to place undue as at the date of this Presentatjon and is of the informatjon, opinions or conclusions also forward-looking statements. These reliance on forward-looking statements, a general nature and does not purport to be contained in this Presentatjon. The statements are based on an assessment of which are current only as at the date of this complete. It should be read in conjunctjon informatjon in this Presentatjon is subject present economic and operatjng conditjons, Presentatjon. with the Company’s other periodic and to change without notjce and, subject to and on a number of assumptjons regarding contjnuous disclosure announcements any obligatjons under applicable law, the future events and actjons that, as at the lodged with ASX. This Presentatjon has Company does not undertake any obligatjon date of this Presentatjon, are expected to been prepared without taking into account to update any informatjon contained in take place. While due care and atuentjon the objectjves, fjnancial situatjon or needs this Presentatjon, including any errors or has been used in preparing any forward- of individuals and is provided expressly on omission, or otherwise arising in connectjon looking statements, any such statements, the basis that you will carry out your own with it. opinions and estjmates in this Presentatjon, independent inquiries into the matuers are based on assumptjons and contjngencies contained in this Presentatjon and make your This Presentatjon includes a number of subject to change without notjce, as are own independent decisions about the afgairs, non-IFRS measures, including EBITDA. These statements about market and industry trends, fjnancial positjon or prospects of Openpay. non-IFRS measures are used by management projectjons, guidance and estjmates. to measure the performance of the business. These measures have not been subject to audit review. 2

Introduction to Openpay. The smarter way to pay – our strongly difgerentjated approach. B2C Buy now. Pay smarter. Merchant – Consumer B2B Openpay for Business: Enterprise Merchant – Business Customer Strong & fmexible platgorm . Enables us to deliver the most fmexible Unique B2B ofgering . Allows companies to manage trade accounts plans in the market. Plan lengths of 2–24 months, up to $20,000 end-to-end, including applicatjons, credit checks, approvals and account management in the one system Key BNPL vertjcals . Focus on industries where we can make a true difgerence – Automotjve, Healthcare and Home Improvement Launch with inaugural client Woolworths . Revenue from the partnership is expected in H1 FY21 Target customers . Finance-savvy and of an older demographic who use our plans as a cashfmow management tool A capital light, low-risk business . It will deliver revenue based on usage which scales with enterprise merchants’ operatjons 3

FY20 key achievements. Some of the ways we delivered on our FY20 strategy. Local market growth Successful UK launch Well funded Launch into B2B Strong people focus Strong growth in Australia Strong and rapid growth IPO and ASX Listjng Launch of Openpay for Strengthened Board and across all industry vertjcals – Dec 2019 Business - capital light, Management teams Signing and launching SaaS-based product Record operatjonal and of enterprise merchant UK debt facility Supported merchants, fjnancial results JD Sports of £25m secured Signing of three-year deal customers and team with Woolworths Group members during COVID-19 Signifjcant wins of new Instjtutjonal placement (Woolworths) merchants and integratjon raises $33.8m at partnerships 50% premium to IPO Sofu launch into new vertjcals: Educatjon and Memberships 4

Strong growth in key metrics. Record Actjve Plans up 229% +229% +141% +52% +98% +64% Record Actjve Customers, up 141%, with increased repeat 824k 319k 2,162 $192.8m $18.0m usage Actjve Merchants up 52% 1,420 Total Transactjon Value $11.0m (TTV) grew to a record $97.3m $192.8m in FY20, 896 133k $6.8m up 98% 250k 82k Revenue for FY20 $60.5m 120k of $18m, up 64% EBITDA 1 loss before FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 signifjcant items 2 of $30.1m well in line Number of Number of Number of Total Revenue with management Actjve Plans Actjve Customers Actjve Merchants Transactjon Value expectatjons 1. EBITDA is a non-IFRS measure that has not been audited but is a key fjnancial metric used by 2. Signifjcant items include fair value calculatjon of fjnancial derivatjves, convertjble notes; management to operate the business at the group level. EBITDA represents Earnings Before share-based payments expense arising on Initjal Public Ofgering; costs of equity raising, 5 Interest Tax Depreciatjon and Amortjsatjon. IPO and share placement.

Rapid UK momentum continues. Signifjcant growth since June 2019 launch. UK Retail opportunity alone: ~£390b 1 +329% +223% Major growth in Openpay UK business from standing start in June 2019 Openpay UK currently trades in 187k 109k online Retail vertjcal only Substantjal opportunitjes exist to move into other Openpay vertjcals Signifjcant growth in Actjve Plans and Actjve Customers Merchant additjons in FY20 included 34k leading brands: The Watch Hut, 44k Masdings and JD Sports. Post year end, The Hut Group H1 H2 H1 H2 FY20 FY20 FY20 FY20 Number of Actjve Plans Number of Actjve Plans Number of Actjve Customers Number of Actjve Customers 1. United Kingdom Offjce of Natjonal Statjstjcs: 6 Retail Sales, Great Britain, July 2019.

The Openpay community. Targetjng mature, fjnancially responsible consumers. 3.7 $272 Overall 20% 20% 16% 5.3 $782 13% 11% 11% $949 9% 5.6 Healthcare Car owners 14.3 Home Improvement $3,919 Home owners 3.5 Retail $201 18-24 25-31 32-38 39-45 46-52 53-59 60+ Customer demographics Average plan length Average transactjon value (ATV) Digital natjves Median age of customers is 38 in ANZ (FY19 39) and 39 in UK Average plan length shortened in FY20 to 3.7 months (FY19 4.0 months) creatjng capital effjciencies Parents Overall ATV has lowered to $272 (FY19 $467) as customers make it routjne to use Openpay across multjple areas of their lives Home Improvement has a signifjcantly higher ATV at an average of $3,919, and now focuses on service led actjvity. Pet owners Consumer product merchants (e.g. Total Tools) have been transitjoned out of the Home Improvement vertjcal into Retail 7

Soft launch into new verticals. Signifjcant pipeline for further growth. New vertjcals: Educatjon New Actjve Signifjcant growth Hard launch and Memberships Merchants pipeline in H1 FY21 In line with IPO strategy, we Launch has been promising Also driven by new partnerships With products that specifjcally conducted a sofu launch into new with a number of Actjve Merchants with Australian Society of Associatjon target the needs of merchants industry vertjcals: Educatjon and established in each new vertjcal Executjves, Sports Community, and customers in these vertjcals Memberships in H2 FY20 among others Select Educatjon & Memberships Merchants: 8

Openpay for Business. Leveraging our platgorm capabilitjes and showcasing exceptjonal B2B innovatjon. A platgorm that unlocks the growth potentjal of business and trade accounts Openpay for Business is a unique SaaS-based capital light, low risk, transactjonal product Clearly difgerentjates Openpay from all other BNPL players and fjnancial services providers Major market opportunity across enterprise segment Supportjng Woolworths Australia with their B2B business Platgorm launching in H1 FY21 From account applicatjons through to reconciliatjon and remituance, Openpay for Business is a B2B platgorm that fully digitjses business and trade accounts, end to end 9