Credit Clear : CCR Q4FY22 ACTIVITY REPORT AND APPENDIX 4C

For personal use only

20 July 2022

ASX Announcement

Credit Clear June Quarterly

Activity Report & Appendix 4C

RECORD QUARTER WITH REVENUE UP 41%

QoQ AND 160% PCP TO $8.63 MILLION

Key highlights:

• Credit Clear achieved record quarterly revenue of $8.63m1 in Q4FY22 up 41% quarter on quarter (QoQ) and 160% vs prior corresponding period (PCP)
• Record monthly revenue of $3.12m1 achieved in June and Revenue Run Rate climbs to $37.44m p.a.2
• May and June were consecutive operationally profitable3 months
• 60 new client wins for the quarter including several new clients that are expected to become top 10 clients by revenue
• Strong balance sheet with cash position of $10.2m at bank
• A significant increase in the number of accounts in arrears being referred to Credit Clear
• The Company will provide a Shareholder and Investor Briefing today at 11am, please clickhere to join the briefing

Australian receivables management solution provider Credit Clear Limited (ASX: CCR) ("Credit Clear" or the "Company") is pleased to announce that it achieved record revenue of $8.63m in Q4FY22, up 41% QoQ and 160% vs PCP.

Record monthly revenue of $3.12m was achieved in June taking Credit Clear's annualised revenue run rate to $37.44m.

In addition to record revenue, Credit Clear has reported consecutive months of operational profitability2 in May and June 2022, through continued growth and a disciplined approach to its ongoing investment in technology.

New sales and pipeline

Credit Clear signed 60 new clients in Q4FY22, including several clients that the company expects to become top ten clients by revenue. Notable clients include a financial services provider, a state government service provider, and a large water utility.

The sales pipeline has strengthened considerably during the quarter, with Credit Clear's award-winning technology supported by hybrid end-to-end collections and

Credit Clear Limited		W: creditclear.com.au		ABN: 48604797033
Level 4, 6 Riverside Quay		E: [e-mail]		ACN: 604797033	1
Southbank VIC 3006		P: 1300 909 934		ASX CODE: CCR

For personal use only

legal recoveries resonating particularly well with materially significant potential clients.

New opportunities include negotiations with a large Australian bank, a tier 1 Australian insurer and several large utility opportunities, where growing pressure on customers due to rising inflation is having an impact.

International update

South Africa - During the quarter several key data and technical projects have been completed that are typical of large, complex organisations on a digitisation journey. Message delivery rates and engagement are broadly consistent with Australian metrics and email messages have recently been added to the workflow. Techub is progressively adopting a "digital-first" approach and providing Credit Clear the opportunity to process untreated portfolios.

UK and Singapore - Credit Clear has progressed discussions in the UK with a large multinational BPO and Collection Agency regarding a partnering and teaming agreement. In Singapore the Company is pursuing a licensing agreement with a large APAC debt collection provider.

Technology performance

A significant champion / challenger test during the quarter provided further validation of Credit Clear's award-winning Artificial Intelligence (AI) technology. Credit Clear's AI-driven software, which predicts the next best channel, message and timing to use, has delivered a 35% uplift in collections for a toll road operator in Q4FY22. The case study measured optimised workflows using SMS, Email, and dialler calls, using the Credit Clear platform and the same message templates. The differentiator between the two treatments was the use of Credit Clear AI to decide which action to take next for a particular customer, based on what had already happened to date.

Outlook

With operational profitability, a strong balance sheet and cash at bank of $10.2m, and an economic environment where the cost of living is increasing at a rate well ahead of wage growth, Credit Clear is well positioned to continue delivering accelerated growth into FY23.

Andrew Smith, Credit Clear CEO, said:

"In 2022 Credit Clear has positioned itself to lead the market as a hybrid end-to-end credit management company. We've done this by providing a 'best-of-both' offering that sees award-winning AI technology combined with an experience-led and customer centric service offering. The uplift in performance produced for our clients has been quantifiably proven in recent case studies and is contributing towards greater referral volumes from existing clients, and an influx of new clients that we have signed in thepast few months.

Credit Clear Limited		W: creditclear.com.au		ABN: 48604797033
Level 4, 6 Riverside Quay		E: [e-mail]		ACN: 604797033	2
Southbank VIC 3006		P: 1300 909 934		ASX CODE: CCR

For personal use only

International expansion is an important part of our growth story, and I'm pleased to say that our technology is being received in other markets with the same enthusiasm that we have seen in Australia. We are in meaningful discussions with several global organisations that could provide Credit Clear with low-cost,high-scale internationalpartnership opportunities.

We exit the 2022 financial year as a profitable market-leading company and our intention is to reinvest profits for growth. With a strong cash balance and an increasingly supportive economic environment Credit Clear is positioned to deliver

strong growth across every business unit in FY2023."

- ENDS -

Note1: The financial results for Q4FY22 are unaudited

Note2: Revenue run rate is calculated on annualised June actual revenue

Note3: Operational profit excludes non-operational items such as redundancies, one-off legal matters and capital raising fees

This ASX announcement was approved and authorised for release by the Board of Credit Clear.

Investor and Media Enquiries Warrick Lace [e-mail][phone]

About Credit Clear

Credit Clear Limited is an Australian technology company that has developed a digital billing and communication platform that helps organisations drive smarter, faster and more efficient financial outcomes by changing the way customers manage their re-payments through a user experience that the market demands in a digital age, powered by award winning artificial intelligence.

Credit Clear manages customer accounts across a range of industries including transport, financial services, insurance, government and utilities. The Company is based in Australia with headquarters in Melbourne and offices in Sydney, Brisbane, Adelaide and Perth.

www.creditclear.com.au

	Credit Clear Limited		W: creditclear.com.au		ABN: 48604797033
	Level 4, 6 Riverside Quay		E: [e-mail]		ACN: 604797033	3
	Southbank VIC 3006		P: 1300 909 934		ASX CODE: CCR

For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Credit Clear Limited

ABN	Quarter ended ("current quarter")
48 604 797 033	June 2022

Consolidated statement of cash flows	Current quarter	Year to date
		$A'000	(12 months)
			$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	7,802	19,513
1.2	Payments for
	(a) research and development

1. product manufacturing and operating costs

	(c)	advertising and marketing	(79)	(211)
	(d)	leased assets	(373)	(1,177)
	(e)	staff costs	(4,859)	(14,441)
	(f) administration and corporate costs	(5,420)	(11,818)
1.3	Dividends received (see note 3)
1.4	Interest received	6	17
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Government grants and tax incentives	841	841
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operating	(2,082)	(7,276)
	activities

2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(a)	entities	(265)	(27,224)
	(b)	businesses
	(c)	property, plant and equipment	(120)	(293)
	(d)	investments
	(e)	intellectual property	(258)	(1,152)
	(f)	other non-current assets

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
2.2	Proceeds from disposal of:
	(a)	entities
	(b)	businesses
	(c)	property, plant and equipment
	(d)	investments
	(e)	intellectual property
	(f)	other non-current assets
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investing	(643)	(28,669)
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

(excluding convertible debt securities)

7,500

37,000

3.2 Proceeds from issue of convertible debt securities

3.3	Proceeds from exercise of options
3.4	Transaction costs related to issues of	(350)	(1,553)
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings		3,000
3.6	Repayment of borrowings	(3,046)	(3,046)

3.7 Transaction costs related to loans and borrowings

3.8 Dividends paid

3.9 Other (provide details if material)

3.10 Net cash from / (used in) financing	4.104	35,401
activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

	period	8,825	10,748
4.2	Net cash from / (used in) operating	(2,082)	(7,276)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(643)	(28,669)
	(item 2.6 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.