Announcement PDF ASX:SPX Q1 FY25 Business Update Investor Webinar 8 November 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. 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All references to currency are in AUD unless otherwise specified. Key Highlights in Q1 FY25 Record Q1 cash receipts from customers of $1.92m, up 157% on pcp and up 6% qoq Limepay acquisition completed on September 20, 2024 Payment volumes of $74m up 20% on pcp, excluding $34m processed by subsidiary Limepay Limepay’s PV for Q1 FY25 was $40m, generating revenue of $664k Lessn payment processing agreement to add $50m pa payment volume SwiftStatement launch to generate $1.4m license fee and targeting $18m in ARR by September 2025 UNIQUE CUSTOMER VALUE PROPOSITION Spenda is an innovative software company with an integrated set of capabilities that enable trading networks to buy, sell and pay more efficiently. Re-defining Invoicing In traditional invoicing, the process of creating invoices and receiving payments can be lengthy and often it looks like this: B2B trading is often hampered by inefficiencies that stem from disconnected systems and manual processes. These challenges include: • inventory mismanagement • slow and error-prone financial reporting Create invoice Print, post or email invoice Send invoice to accounts team Input to financial system Review and approve Pay invoice • cumbersome payment processes These inefficiencies result in: • increased operational costs, • delayed payments, and • financial discrepancies, Resulting in lengthy reconciliation processes that lead to slower cash flow and higher administrative costs. 1. Create the invoice 2. Print and post it (or send via email) 3. Buyer receives and sends it to their accounts team 4. Accounts team inputs invoice into financial system 5. The invoice is reviewed and approved 6. The invoice is paid SwiftStatement – Transactions re-imagined SwiftStatement provides a comprehensive approach to supply chain productivity that optimises invoice delivery and accounts reconciliation through robust financial integration, overlaid with embedded payment solutions. Digital: Automated sending and receiving of invoices directly between Capricorn and its Member network via the Spenda platform eliminates manual data entry and minimizes errors. Integration: Embedded into SwiftStatement is robust financial integration that reduces reconciliation administrative overhead by up to 10 hours. Payments: Once finalised, embedded payment solutions will facilitate seamless payment processing. This includes support for various payment methods, ensuring that payments are handled efficiently and securely. ERP Receive Integrated Member Statement Spenda ecosystem Send Consolidated Supplier Statement SwiftStatement enables automation of invoicing, reconciliation, and payment confirmations, reducing administrative burdens and accelerating cash flow. Spenda's products throughout the supply chain or network Customer Retailer SOE Payment Aggregated B2B Marketplace Supplier / Wholesaler Aggregator Accounts Payable Accounts Receivable Payment Manufacturer Accounts Payable Accounts Receivable Accounts Payable Accounts Receivable Payment Marketplace Payment Marketplace • Preacquisition, LimePay derived the bulk of its revenue from online B2C payment processing. • Post acquisition, we have integrated the Limepay capabilities to improve and scale Spenda’s overall payments capabilities across the value chain. • SwiftStatement is AR & AP Collaboration. It ensures the buyer and seller are on the same financial page. SwiftStatement makes payments sticky. This allows us to displace incumbent vendors. SwiftStatement – Target SaaS Revenue impact Assumption Membership +30,000 10% 25% 50% 75% 90% Charging $99/month 3,000 7,500 15,000 22,500 27,000 $26,730,000 $32,076,000 Member Income (pm) $99 Annual Income / Member $1,188.00 Potential Income $35,640,000 DSD (Cohort 1) SaaS Fee $100,000/pm Total Target Sep 2025 $3,564,000 $8,910,000 $17,820,000 $1,200,000 $19,020,000 Spenda + Limepay Superior Sales and Distribution We have networks of customers ready to utilise the Lime capabilities Access to Debt Lime can utilise Spenda finance facilities Resources Highly skilled payments team Quote Acceptance Supply of good or service Invoice Transaction Integration Payment or payment arrangement Merchant settlement Software Capabilities That are ready to ship Quick Wins Cross pollination of products through customer base Solution Spenda’s financial integration capabilities highlight how our software not only enhances supply chain productivity, but also modernises financial processes through automation and seamless transaction handling. Benefits Operational Efficiency: Reduce operational costs by up to 15% and improve delivery times by 20% through optimized supply chain management. Financial Accuracy: Minimize errors and streamline financial reporting by integrating real-time supply chain data with accounting platforms. Enhanced Cash Flow: Speed up payment processing and improve cash flow with our integrated payment solutions and automated invoicing. Comprehensive Oversight: Achieve a complete view of both supply chain and financial performance, leading to better decision-making and strategic planning. Reduced Administrative Costs: Lower administrative overhead and increase productivity through automated financial processes, eInvoicing, and efficient payment handling. Layering revenue streams Implementation Implementation and set up fees SaaS Further penetration across the supply chain for each client • Start with Head Office and payment flows to and from the buyer network • Expand payment solutions to supplier network for early payment discounts • Install POS terminals at retail transaction (either in-store or online) to capture payment flow from end-consumers • The payment flow from end-consumers would generally be the largest component in a supply chain and grow over time Subscription fee-based model, with tiered pricing plans based on the size and needs of the business Transaction processing Transaction processing revenue from customer payments processed through our network Layered revenue potential across the supply chain Revenue from End-Consumer Revenue from Head Office to Supplier Finance Embedded credit / finance payment options Revenue from Head Office to Buyer Time Consistent quarterly growth in payments volume on Spenda platform $108m $120 $100 $250m ($M) $80 $96m $60 $40 $20 $0 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 • Payment volume on Spenda's platform was up 20% on pcp, from $61m in Q1 FY23 • Total payment flow is expected to continue growing in FY25 with Limepay PV of $40m in Q1 FY25 (green) If we do nothing and maintain just our current business, we will grow pay flow by 60% Q1 FY25 Consistent growth in cash receipts $2.6m $3,000 $5.4m $2,500 $3.5m $2,000 ($000) $1,500 $1,000 $500 $0 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 • Cash receipts was up 157% on pcp, from $750k in Q1 FY24 • Total cash receipts in Q1 FY25 $1.92m (including Limepay - $2.6m) With the Limepay acquisition, if you annualise the Spenda Q1 result, we will see 100% growth With LMI and DSD revenues starting, annual revenue growth will be a minimum of 175% Acquisitions FY25 layering sustainable SaaS / payments ARR FY26: Scaled operations and significant revenues from existing networks. FY26 FY24: Layering revenue across the supply chain in new verticals. FY25 FY23: New foundation customers to validate model. FY27 FY27: New Channels and platform driven customer growth. FY24 FY22: Secured technology, people & capital. Customers & Partnerships FY25: Sustainable recurring revenue & cash generation. Underpinned by SaaS and scaled with the monetisation of payments. Upcoming operational milestones in H1 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 enable Carpet Court stores to manage their quote-to-install payment flow and scale up of consumer payment services Integrate Limepay and onboard customers • Integrate Limepay into transaction flow at customer payment event Commercial launch of Capricorn DSD project • 3rd milestone payment relates to the onboarding of the first cohort of suppliers, expected Q1 FY25 • Commencement of $100k per month SaaS software licensing fee Continued roll out of Spenda AP bundled with AirPlus facilities SwiftStatement launch and scaling Growth trend to continue in FY25 • Maximise revenue opportunities across group customers Thank you. Authorised by the Managing Director Spenda Limited investors@spenda.co