Smartpay : Investor Presentation

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Shaw and Partners Presentation

SMARTPAY HOLDINGS LIMITED

2 December 2021

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DISCLAIMER STATEMENT

This presentation may contain certain statements and projections provided by or on behalf of Smartpay Group (Smartpay) with respect to anticipated future undertakings. Any forward-looking statements reflect various assumptions by or on behalf of Smartpay. Accordingly, these statements are subject to significant business, economic and competitive uncertainties and contingencies associated with the business of Smartpay which may be beyond the control of Smartpay which could cause actual results or trends to differ materially, including but not limited to competition, industry downturns, inability to enforce contractual and other arrangements, legislative and regulatory changes, sovereign and political risks, ability to meet funding requirements, dependence on key personnel and other market and economic factors. Accordingly, there can be no assurance that any such statements and projections will be realised. Smartpay makes no representations as to the accuracy or completeness of any such statement of projections or that any projections will be achieved and there can be no assurance that any projections are attainable or will be realised.

Additionally, Smartpay makes no representation or warranty, express or implied, in relation to, and no responsibility or liability (whether for negligence, under statute or otherwise) is or will be accepted by Smartpay or by any of their respective officers, directors, shareholders, partners, employees, or advisers (Relevant Parties) as to or in relation to the accuracy or completeness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or any omission from this presentation or of any other written or oral information or opinions provided now or in the future to any interested party or its advisers. In furnishing this presentation, Smartpay undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

Except to the extent prohibited by law, the Relevant Parties disclaim all liability that may otherwise arise due to any of this information being inaccurate or incomplete. By obtaining this document, the recipient releases the Relevant Parties from liability to the recipient for any loss or damage which any of them may suffer or incur arising directly or indirectly out of or in connection with any use of or reliance on any of this information, whether such liability arises in contract, tort (including negligence) or otherwise.

This document does not constitute, and should not be construed as, either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in Smartpay.

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AGENDA

1	2	3
Business	Key Metrics / Points	Recent Half Year
Results and
Overview	of Difference
Commentary

4	5
Summary and	Questions
Outlook

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OVERVIEW

Smartpay is a merchant facing, in-store EFTPOS payments provider

We have a significant position in the New Zealand payments market and a fast-growing Australian business

"I really liked the simplicity of SmartCharge

and how the surcharge fees were

automatically calculated."

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• Leading NZ EFTPOS provider
• >30,000 terminals
• Predominantly fixed monthly revenue model
• • Growth Market
  • Transactional Revenue Model
  • <0.5% current market share (1m terminal market)

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AUSTRALIAN ACQUIRING MARKET - Quick Look	5
244,000	Legacy Providers	Disrupters

	150,000	150,000				§	250k SME market opportunity
		115,000	132,000				Legacy providers blind spot
					63,000
				21,000		8,100
		Non					75% Institutional /
		Banks
+8.4	-0.7	-2.0	-4.5	-0.6	+43	+61	Medium Enterprise

Currently served by major banks;	Current Smartpay
- 'hygiene factor', basic payment solution	25% Addressable
- lack of organizational / customer centric agility
- complex pricing structures	SME Opportunity

• structured for 'top end of town'
• no ability to properly contest technical 'arms race'
• incumbents focused on issuing cards and consumer credit

Source: APRA, Authorised deposit-taking institutions points of presence statistics, 30 June 2019; AusPayNet, Device Statistics EFTPOS Statistics, 30 June 2019. Other providers (labelled 'Non-banks' include terminals of other providers who are members of the Australian Payments Network https://www.auspaymentnet.com.au/about/participant-members for example, Ayden and First Data. Does not include non-bank payment providers who are not members of the Australian Payments Network (for example, Square).