Laybuy : Q3 FY22 Quarterly Activities Update and Appendix 4C

For personal use only

ASX ANNOUNCEMENT (ASX: LBY)

27 January 2022

Q3 FY22 Activities Update and Appendix 4C

Laybuy Group Holdings Limited (ASX:LBY)("Laybuy", the "Company") is pleased to provide its quarterly business activities update and Appendix 4C for the quarter ended 31 December 2021 ("Q3 FY22").

All numbers are stated in New Zealand dollars ("NZ$") and comparisons relate to the quarter ended 30 September 2021 ("Q2 FY22" or quarter on quarter, "QoQ") or the quarter ended 31 December 2020 ("Q3 FY21" or year on year, "YoY"), unless otherwise stated.

Q3 Results Highlights

• Laybuy achieved record Annualised GMV1 of NZ$1.1 billion for Q3 FY22, reaching its GMV target for FY22. Annualised GMV is up 51% YoY.
• United Kingdom (UK) GMV at NZ$170 million for Q3 FY22, up 70% YoY.
• Active Customers2 reached 930,000, up 35% YoY. UK active customers up 50% YoY.
• Active Merchants3 reached 12,900, up 61% YoY. UK active merchants up 166% YoY.
• Partners for Growth (PFG) debt facility has been finalised and first drawdowns commenced, strengthening Laybuy's GMV growth capacity in the UK.
• Laybuy affirms revenue targets for FY22
• 2,000 merchants added in Q3 including:

1. UK App Exclusives: GAP, Timberland, River Island, KENZO, ellesse, Lego, Tottenham Hotspur, Under Armour and Foot Locker.

1. UK integrated merchants: Hexxee, UKSoccershop, Dam Health, Creps Locker and Bodybuilding Warehouse.

• 1. ANZ merchants: Kathmandu (NZ), PAS Group, Bing Lee, Brand Collective and PVG Group Australia.
• Implemented platform enhancements to support continued efficiency and drive strong ongoing performance.

1. Gross Merchandise Value (GMV), annualised GMV for the quarter multiplied by 4.
2. An 'Active Customer' is a customer who has made a purchase through the Laybuy platform within the 12 months prior to the relevant period.
3. An 'Active Merchant' is a merchant who has received payment for a purchase through the Laybuy platform within the 12 months prior to the relevant

period.

Laybuy Group Holdings Limited | ARBN 642 138 476
74 Taharoto Road, Takapuna
Auckland, New Zealand
Laybuy.com	1

For personal use only

Managing Director Gary Rohloff commented: "We are delighted that the third quarter has seen Laybuy continue to deliver exceptionally strong growth, reaching its target of annualised GMV of NZ$1 billion ahead of schedule.

"The UK market, in particular, saw very strong GMV growth in December eclipsing the traditional peak month of November, and was up 68% compared with December 2020. This helped deliver record GMV this quarter.

"Our continuing and sustained growth demonstrates that our business strategy is robust and continuing to deliver strong results. For example, in the past 12 months alone, we have added nearly 5,000 active merchants and over 250,000 new active customers across ANZ and the UK.

"Our growth pipeline remains strong and will be driven, in part, by our App Exclusives Platform (the Affiliate Marketing Network), which was launched in August. The platform currently provides our customers with access to more than 300 brands and, in time, will enable access to more than 5,000 of the UK's largest brands. This will see Laybuy cement its place as one of the top three BNPL providers in the large UK retail market.

"We are delighted that we are continuing to see sustained growth in Q3 FY22, which has allowed us to reach our target of NZ$1 billion of annualised GMV and affirm our revenue targets."

Laybuy Group Holdings Limited | ARBN 642 138 476
74 Taharoto Road, Takapuna
Auckland, New Zealand
Laybuy.com	2

For personal use only

Key Operating and Financial Metrics

The table below presents the Laybuy Group's (the "Group's") key operational metrics for Q3 FY22 as compared to Q2 FY22 and Q3 FY21, which have been prepared based on unaudited results.

	Group (NZ$'m)4	Q3 FY22	Q2 FY22		Q3 FY21		% increase	% increase
			QoQ	YoY
	GMV	$275m	$206m		$183m		33%	51%
	Annualised GMV5	$1,100m	$825m		$730m	33%	51%
	Active Customers	930,000	889,000		687,000		5%	35%
	Active Merchants	12,900	11,700		8,007		10%	61%
	Income	$13.5m	$10.8m		$9.5m	25%	42%
	Net Transaction Margin	0.0%	1.0%		1.3%		(100bps)	(130bps)
	(NTM) as % of GMV
	Gross Losses as % of GMV	(4.0%)	(3.1%)		(2.8%)		(90bps)	(120bps)
	UK (NZ$'m)
	GMV	$170m	$111m		$100m		53%	70%
	Annualised GMV	$678m	$446m		$401m	53%	70%
	Active Customers	606,000	566,100		407,000		7%	50%
		3,400			1,264
	Active Merchants	2,900			16%	166%
	ANZ (NZ$'m)
	GMV	$105m	$95m		$82m	11%	28%
	Annualised GMV	$421m	$380m		$328m	11%	28%
	Active Customers	324,000	322,400		280,000	1%	16%
	Active Merchants	9,500	8,800		6,743	8%	41%

1. FX rates used to calculate UK/AU results to NZD equivalent: converted NZD/GBP at 0.51 and NZD/AUD at 0.95 for Q3 FY22
2. Annualised GMV equals the quarter GMV multiplied by four.

Laybuy Group Holdings Limited | ARBN 642 138 476
74 Taharoto Road, Takapuna
Auckland, New Zealand
Laybuy.com	3

Gross Merchandise Value (GMV)

Quarterly GMV by region (NZ$m)

Annualised quarterly GMV (NZ$m)

ANZ UK

275

1,100

206

183 184

161

117 127

26 30 36 34 43 49 64 70

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY19 FY19 FY19 FY19 FY20 FY20

FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22

824

730 738

645

467 508

103 121 146 135 174 194 257 282

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY19 FY19 FY19 FY19 FY20 FY20

FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22

Key Highlight:

• Record growth continued in Q3 FY22, with Laybuy reporting NZ$275 million of GMV, exceeding its FY22 target of NZ$1 billion annualised GMV. This is an increase of 51% YoY, with the UK up 70%.

Active Customers and Merchants

Active Customers by region ('000)

Active Merchants by region ('000)

personal use only

829

756

687

568

473

405

316

118 147 171 196 224 253

1.5 2.0 2.6 3.2 3.7 4.3 4.9 5.2 5.7

11.7

10.4

9.1

8.0

6.3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY19

FY19

FY19

FY19

FY20

FY20

FY20

FY20

FY21

FY21

FY21

FY21

FY22

FY22

FY22

For

Key highlights:

• Strong momentum in active customers, reaching nearly 930,000 at the end of December.
• Active merchants saw a significant increase in the UK, up 166% on prior year with more than 300 now active via App Exclusives.

Laybuy Group Holdings Limited | ARBN 642 138 476
74 Taharoto Road, Takapuna
Auckland, New Zealand
Laybuy.com	4

Regional performance

only

Laybuy UK

UK GMV ( £m)

£24m

£14m

£2m £2m £7m

£87m

£52m £46m £49m £56m

£30m

UK Active Customers ('000)

	566	606
	517
	463
	407
	298
	212
	154
	76
14	29

personal use

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
FY20	FY20	FY20	FY20	FY21	FY21	FY21	FY21	FY22	FY22	FY22

UK Active Merchants

										3,400
									2,900
								2,314
							1,785
						1,264
			335	442	676
90	149	240
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
FY20	FY20	FY20	FY20	FY21	FY21	FY21	FY21	FY22	FY22	FY22

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3
FY20	FY20	FY20	FY20	FY21	FY21	FY21	FY21	FY22	FY22	FY22

Key Merchants

For

Key highlights:

• Strong growth in the UK was supported by an increase of 166% in active merchants and 51% in active customers compared to Q3 FY21.
• New merchants added in Q3 include:
  UK App Exclusives: GAP, Timberland, River Island, KENZO, ellesse, Lego, Tottenham Hotspur, Under Armour and Foot Locker
  UK direct integrated merchants: Hexxee, UKSoccershop, Dam Health, Creps Locker and Bodybuilding Warehouse
• Laybuy's card technology continues to power UK growth, with GMV achieved through Tap to Pay increasing 100% between Q2 and Q3, while our virtual card supported more than 600,000 transactions through Laybuy App Exclusives since its launch in late August 2021.

Laybuy Group Holdings Limited | ARBN 642 138 476
74 Taharoto Road, Takapuna
Auckland, New Zealand
Laybuy.com	5