Announcement PDF ASX:SPX Q4 FY24 Business Update Investor Webinar 25 July 2024 Spenda Limited (The Company) Disclaimer This presentation contains certain statements that may constitute forward looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Spenda anticipates or expects may or will occur in the future (in whole or in part) should be considered forward looking information. In some cases, forward looking information is identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intent”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions. Such information may involve, but is not limited to comments with respect to expectations, planned operations or future actions. These forward-looking statements are based on currently available information as of the date of this presentation but are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward looking information. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement. A number of risks, uncertainties and other factors could cause actual results to differ materially from the results discussed in the forward-looking information, including but not limited to, the following: • Risks associated with reliance on key personnel; • Financial health of Spenda and its related cash flows; general industry and market conditions and growth rates; legislative and regulatory developments; • General economic conditions and levels of economic activity; • Global financial conditions; • Financing risks; • Degree of competition in the industry; • Risks associated with the development of projects; and • Changes in employee relations; and control of costs and expenses. The material in this presentation is general information about Spenda’s activities current as at the date of the presentation. The presentation comprises information regarding Spenda that is given in summary form and does not purport to be complete. Nothing in this presentation should be construed as a recommendation by Spenda to purchase securities, or an offer for subscription or purchase of securities. Information in this presentation should not be considered advice and does not take into account the investment objectives, financial situation or needs of a particular investor. These matters should be considered with or without professional advice when deciding if an investment is appropriate. Forward looking information reflects Spenda’s current beliefs and is based on information currently available to Spenda and on assumptions it believes to be reasonable. The forwardlooking information is made as of the date of this presentation. Prospective investors should not read forward looking information as guarantees of future performance or results and should not place undue reliance on forward looking information. Nothing in this presentation is, or should be relied upon as, a promise or representation as to the future. All references to currency are in AUD unless otherwise specified. Key Highlights in Q4 FY24 Q3 cash receipts from customers of $1.81m, up 49% on pcp and up 26% qoq Continued execution in the key strategic channels across the significant pipeline of work Total payment volumes on Spenda's platform up 161% on pcp, from $96m in FY23 to $250m in FY24 Acquisition of Limepay to accelerate growth trajectory Cash balance of $9.8m at 30 June 2024 Growth trend expected to continue in FY25 UNIQUE CUSTOMER VALUE PROPOSITION Spenda is an innovative software company providing electronic payment solutions across supply chains and trading networks. Spenda is both a software solutions provider and a payment processor. Spenda's mission is to deliver customers the ultimate platform with an integrated set of capabilities that disrupt single product vendors and enable us to scale revenues whilst delivering a compelling ROI to our customers. Spenda + Limepay • Superior Sales & Distribution – we have networks of customers ready to utilise the Lime capabilities • Access to Debt – Which has hampered Lime’s growth • Resources – that enable us to scale • Software Capabilities – that are ready to ship. • Unique Development Resources – This is an elite, highly complimentary team of developers. • Quick Wins – with Customers that neither of us could win alone. Quote ➜ acceptance ➜ supply of good or service ➜ invoice ➜ transaction integration Payment or payment arrangement ➜ merchant settlement Spenda's Land and Expand Model Aggregated B2B Marketplace Customer Retailer Aggregator Supplier / Wholesaler Manufacturer Spenda's strategy is to disintermediate supply chains and aggregator networks with an ecosystem that solves problems throughout the whole supply chain or network. Spenda's business model is to offer bundled solutions across the network and generate revenue from a combination of SaaS, payments and lending across different products. Spenda's products throughout the supply chain or network Customer Aggregated B2B Marketplace Retailer SOE Payment Widget Aggregator Accounts Receivable Accounts Payable Payment Widget Supplier / Wholesaler Manufacturer Accounts Receivable Accounts Payable Accounts Receivable Accounts Payable Payment Widget Marketplace Payment Widget Marketplace Spenda has bundled solutions for: • Network engagement – eInvoicing, dispute management, B2B payments • Demand side engagement – Standard Operating Environment (SOE) and B2C payments • Supply side engagement – Procurement and early settlement discounts Steady increase in payments volume on Spenda platform PAYMENTS VOLUME FY23 & FY24 2-Year Trend 30,000,000 26,523,831 PAYMENTS VOLUME (A$) 25,000,000 24,614,749 23,982,087 19,907,064 20,000,000 20,477,261 22,354,631 22,320,235 21,420,472 18,459,257 17,947,858 17,763,052 15,490,240 14,847,801 15,000,000 16,015,391 12,352,901 11,041,547 10,000,000 5,230,679 5,000,000 3,055,521 3,442,562 5,743,679 7,437,821 6,455,454 4,285,013 4,010,377 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 MONTH • Total payment volume on Spenda's platform was up 160% on pcp, from $96m in FY23 to $250m in FY24 • Primarily due to increased volumes through the Carpet Court network • Total payment volume was up 30% qoq from $54m in Q3 FY24 to $70m in Q4 FY24 • Total payment flow is expected to continue growing in FY25 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Building a strong foundation for long-term sustainable revenue growth • Continuing strong growth in AirPlus facilities with both new and existing clients • Total approved limits of $6.5m at 30 June 2024, with a further $2.6m in the application phase • Revenue generated from AirPlus facilities up from $35k in Q3 FY24 to >$200k in Q4 FY24 • Continued growth in Spenda AP adoption and AirPlus facilities expected in FY25 • Stable payment B2B volume of ~$20m per month on Spenda's platform from roll out of Spenda AR to Carpet Court Head Office, in line with expectations • Expect continued roll out of B2C payments • Planned SOE roll out in September quarter, enabling Carpet Court stores to manage their quote-to-install payment flow and the scale up of consumer payment services • Successful completion of 2nd performance milestone for the Capricorn DSD project • Commercial launch of new payment infrastructure on track for 1H FY25 • Over half of $1.3m in initial development fees now received • 3rd milestone payment for onboarding of first cohort of suppliers expected in Q1 FY25, which will trigger the $100k per month SaaS software licensing fee • Continued work on other strategic digital initiatives Limepay Acquisition Structure Spenda has executed a binding term sheet to acquire 100% of the issued capital in Limepay for up to $8m in an all-scrip transaction • The total purchase price is contingent on the achievement of specific performance milestones • If all milestones are achieved, it will add a minimum of $7.2m in ARR Acquisition Price All-scrip transaction Up to $8m Consideration in 4 tranches All consideration shares will be issued subject to shareholder approval for the purpose of ASX listing rule 7.1. Tranche 1 $2.48m Paid on completion 1-year voluntary escrow Script: 248m FPO @ 1.21c Tranche 2 $0.78m - Deferred consideration upon receipt of Limepay’s FY24 R&D refund of ~$0.72m expected by end 2024 Tranche 3 $2.4m - Deferred consideration at an issue price of the greater of $0.0175 or a 10% discount to the 90-day VWAP for Spenda shares, upon Limepay achieving Annualized Rolling 3-month average revenue (“ARR”) of at least $4.8m for three consecutive months Tranche 4 $2.4m - Deferred consideration at an issue price of the greater of $0.0225or a 10% discount to the 90-day VWAP for Spenda shares, upon Limepay achieving Annualized Rolling 3-month average revenue (“ARR”) of at least $7.2m for three consecutive months Upcoming operational milestones in Q1 FY25 Commercial launch of Capricorn DSD project • 3rd milestone payment relates to the onboarding of the first cohort of suppliers, expected Q1 FY25 Delivering the SOE solution for the Carpet Court store network • The rollout of the SOE is expected to start in 1H FY25 • This will trigger the $100k per month SaaS software licensing fee • This will enable Carpet Court stores to manage their quote-to-install payment flow and scale up of consumer payment services Integrate Limepay acquisition and onboard new customers Continued roll out with eBev Continued roll out of Spenda AP bundled with AirPlus facilities Growth trend to continue in FY25 Thank you. Approved by the Managing Director spenda.co Spenda Limited 605, 275 Alfred Street, North Sydney, NSW 2060 1300 682 521 investors@spenda.co