BikeExchange : Quarterly Appendix 4C and Activity Report

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BIKEEXCHANGE (ASX: BEX)

QUARTERLY APPENDIX 4C AND ACTIVITY REPORT

28th January, 2022

Melbourne, Australia - BikeExchange Limited (ASX: BEX) ('BikeExchange'), a leading global operator of online cycling marketplaces connecting brands, retailers and distributors with customers, announced today its Appendix 4C and activity report for the December 2021 quarter and the fnancial half year ended 31 December 2021.

FINANCIAL HIGHLIGHTS

BikeExchange continued to deliver solid growth across all key metrics, including the highest ever transaction volumes for a half year period.

METRICS	H1 FY22 v H1 FY21	Q2 FY22 vs Q2 FY21
Lookthrough total	$13.8 million (up 46%)	$7.0 million (up 37%)
transaction value (TTV)
Lookthrough revenue	$2.6 million (up 21%)	$1.4 million (up 12%)
●	Lookthrough	$1.4 million (up 15%)	$0.7 million (up 19%)
	subscription
	revenue
●	Lookthrough	$0.9 million (up 57%)	$0.5 million (up 11%)
	e-Commerce
	commissions
	revenue
Transaction volumes	18,412 (up 18%)	9,300 (up 13%)
Average order value	$645 (up 32%)	$638 (up 21%)
Total active retail	1,734 (up 20%)	1,734 (up 5% over Q1'22)
accounts
Average commission rates	7.5% (up from 7.2%)	7.8% (down from 10.0%)

The fnancial information included in this report represents lookthrough information comprising the BEX Group and 50% of the Columbian Joint Venture. The Directors believe this information better represents the aggregated activity and results on the platform.

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REGIONAL PERFORMANCE

• Australia recorded solid e-Commerce transaction volumes through the quarter driving 22% TTV growth for the quarter vs pcp and 33% growth vs H1 FY21.
• Europe continued its growth with 60% TTV growth for the quarter vs pcp and 83% up on H1 FY21, refecting solid demand for bikes.
• North America delivered 9% TTV growth in the quarter and 4% increase on H1 FY21, driven by additional e-Commerce accounts.
• TTV in Colombia decreased by 16% for Q2 FY22 due to payment technology issues, which have been addressed in Q2.

STRATEGIC AND OPERATIONAL HIGHLIGHTS

• Acquired 100% of Kitzuma Corp in December 2021 - a ready to ride bicycle logistics business based in North America with a scalable business model across BikeExchange's global operations.
• Signed a non-binding indicative ofer to acquire the remaining 50% of BikeExchange Colombia S.A.S., which will see BikeExchange own 100% of the entity. Expected to complete in February 2022.
• Continued focus on executing the strategy of sellers, stock and transactions including key executive appointments:
• • Rebecca Boxall, Chief Customer Ofcer
  • Joe McArdle, Head of Seller Success
  • Andreas Liertz, Regional and Sales Lead, Europe

Commenting on the performance, Global CEO Mark Watkin said:

"BikeExchange continued to deliver solid growth during the quarter with a signifcant uplift in the volume and value of transactions driving a strong increase in lookthrough revenue and total transaction value. Our focus on sellers, stock, and transactions is guiding this momentum, while our acquisitions are fuelling our e-Commerce frst strategy, in line with our vision of making it easy for customers to buy and sell all things bike.

"Our online marketplace continues to resonate with customers with more bike purchases on our e-Commerce site than ever before. We recorded an 18% increase in transaction volume in H1 FY22 - the highest ever for a half year period - and average order value increased 32% to $645. Quality of stock and e-commerce enabled listings continues to grow, ofering customers greater choice with a wide variety of bikes across the whole price spectrum.

"Website trafc remained strong with an annualised 21 million sessions for the half as we focused on converting visitors to transactions. The business is seeing more normalised levels of overall website trafc, after the high peaks experienced in the initial COVID lockdown periods in 2021, with trafc 26% above the comparable period for H1 FY20.

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"Improving customer conversion has been key over the last six months and we are pleased to see conversion continue to increase to 0.20% from 0.13% in H1 FY21.

"Enquiry lead volumes, totaling an annualised $1.3 billion in value for the half, continue to present signifcant e-Commerce conversion opportunities.

"Our retail network is expanding, with a 20% increase in active retail accounts to 1,734 compared with December 2020. As a result, our lookthrough subscription revenue increased 15% on H1 FY21 and 9% on Q1 FY22.

"We acquired US-based 'Ready to Ride' bike delivery company Kitzuma in December 2021. This unique company removes the need for a box or construction of a bike upon delivery, which is a key friction point in the customer journey. Servicing all major regions of North America, Kitzuma is a highly complementary business to BikeExchange's ofering and provides a value-add service for retailers, brands, and customers. Kitzuma is globally scalable and can be replicated in other markets, and we are excited about the growth potential for the business.

"During the quarter, we also announced the signing of a Non Binding Indicative Ofer to acquire the remaining 50% of BikeExchange Colombia S.A.S that we did not own. This allows us to capture the growing interest in bikes from Colombians and also provides a platform to expand into other LatAm regions and is expected to complete in February 2022.

"Our executive team has been further bolstered by the appointment of Rebecca Boxall as Chief Customer Ofcer in North America, Joe McArdle as Head of Seller Success in Australia, and Andreas Liertz as Regional and Sales Lead for Europe. Rebecca, Joe and Andreas will drive growth through retailer sales acquisition and on-site transactions."

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Q2 FY22 FINANCIAL PERFORMANCE - REVENUE & TTV

1. TTV and Revenue by geography

Record e-Commerce orders in ANZ while Europe continues strong growth BikeExchange delivered a solid result across all four of its geographic hubs - ANZ, North America, Europe (Germany, Belgium and Netherlands), and Latin America (Colombia). In particular, ANZ achieved record e-Commercetransaction volume in the quarter, refecting improving customer conversion rates. Subscription revenues also increased quarter on quarter and on pcp, with total ANZ TTV up 22% and revenues up 21% on pcp.

Europe remained the strongest performer, with a 60% increase in TTV to $4.1 million and a 25% increase in revenue on pcp to $0.7 million. While all revenue categories grew, e-Commerce transaction value recorded particularly good growth, refecting continued strong demand for bikes in Europe.

North America TTV grew 9% on pcp whilst revenues declined 37% on pcp for the quarter, refecting inventory challenges, retailer supported promotional activities and a change in the mix of retailer commissions compared to the previous fnancial year. The focus for the sales and seller success teams continues on e-Commerce frst enablement and integration with quality sellers and products.

TTV in Colombia decreased by 16% for Q2 FY22 due to payment technology issues, which have been addressed by the end of Q2. The Group's share of revenue in BikeExchange Colombia grew 22% on pcp for the quarter due to loosening supply constraints increasing contracts delivered in the quarter.

2. TTV and Revenue by category

e-Commerce growth continues with record order volumes

Lookthrough e-Commerce commission revenue grew by 11% on pcp in Q2 FY22 and 57% for H1 FY22. The strong growth rate demonstrates BikeExchange's execution of its e-Commerce frst strategy. H1 is a seasonally slower quarter for e-Commerce as Europe and North America enter winter, with only 34% of FY21 gross e-Commerce transaction value delivered in H1 FY21. Order volumes of 9,300 in Q2 FY22 represent a six quarter high for the Group, and 18,412 in H1 FY22 is the highest recorded by the Group for any half-year period.

Average commission rates were solid at 7.8% in the quarter. Average order value for H1 FY22 increased by 32% and 21% on Q2 FY21, which can be attributed to the continued shift in product mix towards more bikes being sold during this period.

Trafc conversion rates improved to 0.24% in Q2 FY22 (H1 FY22: 0.20%) from 0.15% on pcp, despite a 28% decrease in website trafc to 10.5 million sessions for the half (including BikeExchange Colombia). This refects the improving quality of trafc and our focus on

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customer conversions. The business is also seeing more normalised levels of overall trafc, after the high peaks experienced in the initial COVID lockdown periods, with trafc 26% above the comparable period in H1 FY20.

Subscription revenues

Group lookthrough subscription revenues continued to show growth, with Q2 revenues up 19% on pcp and 9% higher than Q1 FY22. This was supported by improvements in underlying Active Retail Accounts, which increased ~20% since 31 December 2020 and Average Revenue Per Account up 5% on pcp for the quarter. Premium retailer and brand packages contributed to ARPA increasing 6% on pcp in Q2.

Media and Other Services revenues

Lookthrough Media and Other Services revenues for Q2 FY22 decreased by 9% on pcp, largely due to timing of the delivery of several signifcant industry partnership procurement contracts in BikeExchange Colombia vs the prior year.

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