Laybuy : Investor Presentation Q1 FY23 Results and Strategic Update

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Strategic Update

Laybuy (ASX:LBY)

& Q1 FY23 Results

29 July 2022

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Important Notice and Disclaimer

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The material contained in this document is a presentation of general information about the activities of Laybuy Group Holdings Limited (ARBN 642 138 476) and its subsidiaries (Laybuy) current as at the date of this presentation.

The information is provided in a summary form, does not purport to be complete and should not be relied upon as advice for investment purposes. This presentation is for information purposes only and is not financial product advice or a recommendation to acquire Laybuy shares.

This presentation does not take into account the investment objectives, financial position or needs of any particular investor. Independent advice should be sought before making any investment decision.

The information in this presentation has been prepared by Laybuy in good faith and with due care, but Laybuy does not make any representation or warranty, express or implied, as to the fairness, accuracy, correctness or completeness of the information, opinions or conclusions contained in this presentation.

The information in this presentation is subject to change without notice and unless required by law, Laybuy assumes no obligation to update this presentation or its contents for any matter arising or coming to Laybuy's notice after the date of this presentation.

Certain statements in this presentation may constitute forward-looking statements or statements about future matters that are based on management's current expectations and beliefs. Such statements are typically identified by words such as 'may', 'could', 'believes', 'estimates', 'expects', 'anticipates', 'intends' and other similar words. These statements are subject to risks and uncertainties that are difficult to predict and are based on assumptions as to future events that may not prove accurate. Actual results may differ materially from what is expressed in this presentation.

To the maximum extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining to act as a result of this presentation or its contents is accepted by Laybuy or any of its officers, employees or agents.

The distribution of this presentation outside of Australia may be restricted by law and any such restrictions should be observed.

All numbers are stated in New Zealand dollars (NZ$) and relate to the quarter ended 30 June 2022 (Q1 FY23) or the year ended 31 March 2022 (FY22).

Comparisons relate to the quarter 30 June 2021 (Q1 FY22 or prior comparative period, "PcP") or the year ended 31 March 2021 (FY21 or year on year, "YoY") unless stated otherwise.

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Strategic Review Findings

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Strategic review completed reaffirming Laybuy's commitment to both the UK and ANZ business.

Review confirms pathway to profitability providing assurance on the sustainability of the business model.

Sale or partial sale of the business currently not in the best interests of shareholders or our people.

Success in fraud prevention programme has

provided Board alternative options.

Initiating major cost reduction programme that will see profitability achieved across the Group by Q4 FY23.

Laybuy will reduce headcount by one third delivering significant savings to the business.

Reduction in costs, alongside continued investment in fraud prevention, will remove need for capital raise in the medium-term.

Laybuy on track to be one of, if not the first, profitable pure play BNPL provider on the ASX.

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Our Strategyto Achieving Profitability

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Saving to invest

We have been working across the business to identify areas where we can improve efficiencies, reduce costs and reprioritise spending so that we are investing in those areas that have a strong return on investment and support our pathway to profitability.

Increasing our quality customers and merchants

We will focus on increasing and retaining quality customers and partnering with the right merchants in the right verticals. We have tightened our approach to credit risk and will focus on those merchants who are best able to support our growth and who are least likely to attract fraudulent activity.

Reducing fraudulent activity

We will continue to take proactive action to improve the security of our platform, including investing in fraud prevention and intelligence software.

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Company Restructure

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Restructure reflects reorientation of strategy from high-growth to achieving profitability in the short-term.

Headcount will be reduced by one third (approx. 45 employees).

Majority of impacted staff from Auckland Head Office, with a number of roles also impacted in the UK and Australia.

New structure streamlines operations and minimal impact anticipated on customers and merchants.

Delivers significant savings that will be pragmatically invested into the business, in areas where there is a high return on investment.

05	Laybuy Strategic Update & Q1 FY23 Results