Laybuy : Continues Strong Growth for 1H FY22, Revised FY22 Guidance

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ASX ANNOUNCEMENT (ASX: LBY)

23 November 2021

Laybuy continues strong growth for the first half of FY22 and provides revised FY22 revenue guidance

Laybuy Group Holdings (ASX:LBY)("Laybuy", the "Company") is pleased to provide its Half Year Report for the six months ended September 2021 (H1 FY22). Laybuy has reported strong GMV and revenue growth, with record momentum continuing into October and November 2021. The Company is also providing an update to its FY22 guidance for revenue and a correction to the results for the quarter ending September 2021 (Q2 FY22).

All numbers are stated in New Zealand dollars ("NZ$") and comparisons relate to the six months ended 30 September 2021 ("H1 FY22" or prior comparative period, "PcP" or year on year ("YoY"), unless otherwise stated.

Highlights

• GMV reached a record NZ$391 million for 1H FY22, or annualised GMV of NZ$782 million, an increase of 60% YoY.
• United Kingdom GMV almost doubled YoY in 1H FY22, reaching annualised GMV of NZ$415 million, up 95% YoY.
• Laybuy remains on track to achieve annualised GMV of $1 billion, with NZ$989 million annualised for October 2021, 119% above October 2020.
• Record income for the half year of NZ$21.2 million, or annualised income of NZ$42.4m, up 60% YoY.
• For the half year, Net Transaction Margin (NTM) was 1.5%, down from 1.7% PcP.
• Updated revenue guidance for FY22 of 60-70% growth on FY21, with the UK expected to be 75-85%up YoY.

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

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• Correction to September quarter results include defaults which increased to 3.0% for Q2 FY22 (restated from 2.2%) which in turn resulted in a decrease in Net Transaction Margin (NTM) to 1.0% for Q2 FY22 (restated from 1.9%).
• Laybuy App Exclusives (Affiliate Marketing Network) continues to grow following its successful launch in the UK during the quarter, providing customers with access to more than 170 new household brands and enabling Laybuy to add more than 5,000 merchants in a wide range of verticals in the future.
• Active Customers reached 889,000, up 57% YoY. UK active customers up 90% YoY.
• Active Merchants reached 11,700, up 86% YoY. UK active merchants up 332% YoY.
• New debt facility with US specialist lenders Partners for Growth (PFG) of £30 million to support UK loan book growth and provides substantially greater availability and flexibility for draw downs.
• Increase in Kiwibank facility limit to NZ$30 million and increase in LVR to further support ANZ loan book growth to 80% (previously 75%).

Managing Director Gary Rohloff commented: "The first half of FY22 has continued to see Laybuy deliver strong growth, particularly in our focus market of the UK. In the first months of this financial year, we have almost doubled GMV in the UK, which has helped achieve record group GMV of $391 million in the first half of the year. Our active customers are up 57% and our active merchants have increased by 86%.

"This continued strong growth means that we remain on-track to achieve GMV of $1 billion this financial year, supported by the successful launch of the Laybuy App Exclusives (the Affiliate Marketing Network), which provides Laybuy with yet another differentiator to access growth in the UK. Initially launching with 160 merchants in late August, it now has over 170 active merchants and has the ability to increase to 5,000 over time across a wide range of verticals.

"While the Laybuy App Exclusives has given Laybuy a significant uplift in GMV in the UK, it has resulted in a lower than anticipated average commission earned. Late fees as a percentage of GMV are lower than the prior comparative period. As a result, Laybuy is targeting global revenue growth of 60-70% this financial year. Our forecast annualised GMV remains unchanged at NZ$1 billion."

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

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"Our focus remains firmly focussed on growing our UK market, which continues to present enormous opportunities to Laybuy. We are one of the top three BNPL providers in the UK and we expect to see revenue growth of between 75-85%. To support continued revenue growth in the UK, we have also established a dedicated team focussed on maximising commercial arrangements and optimising revenue."

Key Operating and Financial Metrics

The table below presents the Laybuy Group's (the "Group's") key operational metrics1 for 1H FY22 compared to 1H FY21.

Group (NZ'm)	1H FY22	1H FY21	Movement	%
UK GMV	$208m	$106m	$102m	95%
ANZ GMV	$183m	$139m	$44m	32%
Gross Merchandise Value (GMV)	$391m	$245m	$146m	60%
Income	$21.2m	$13.3m	$7.9m	60%
Net Transaction Margin (NTM)	$5.7m	$4.1m	$1.6m	39%
NTM % of GMV	1.5%	1.7%	(20bps)
Defaults % of GMV	(2.6%)	(2.5%)	(10bps)
Normalised EBITDA2	($16.3m)	($8.1m)	($8.2m)	(103%)
Loss after tax3	($22.6m)	($26.4m)	$3.8m	15%
Active customers4	889,000	568,000	321,000	57%
Repeat customers5	66%	63%	30bps
Active merchants4	11,700	6,300	5,400	86%

1. Non-GAAPmeasures have been included as we believe they provide useful information for users of the financial statements that assist in understanding Laybuy's financial performance. The non-GAAP financial information does not have a standardised meaning prescribed by IFRS and therefore may not be comparable to similar financial information presented by other entities. The non-GAAP financial information has not been subject to audit or review.
2. Normalised EBITDA excludes one-off items such as the cost associated with the IPO, one-off recruitment cost, fair value movements on convertible notes and share-based payments. EBITDA and Normalised EBITDA also excludes Interest Expense on Debt Facilities (included in Net Transaction Margin).
3. Statutory Loss After Tax in line with IFRS.
4. Active is defined as having transacted at least once in the last 12 months.
5. A customer who has made more than one purchase through the Laybuy platform within the 12 months prior to the end of the relevant period.

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

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Gross Merchandise Value (GMV)

GMV by region (NZ$m)	Annualised GMV (NZ$m)
		ANZ		UK	391m			782m
			344m			688m
					245m			490m
					135m			269m
					92m			184m
		56m	70m		112m	140m
	H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22		H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22

Laybuy's GMV for 1H FY22 was a record NZ$391 million, with annualised GMV of NZ$782 million, up 60% YoY. The UK contributed significantly to this uplift, with annualised UK GMV of NZ$415 million - up 95% YoY. This strong growth in the UK was supported by an increase of 332% in active merchants and 90% in active customers compared to 1H FY21.

The Laybuy App Exclusives launched at the end of August and resulted in over 80,000 transactions in September, with a large portion of our existing customers using the Laybuy App to shop at some of the world's leading and most recognised brands, using our Mastercard/ EML product. The App Exclusives is a product differentiator and is set to enhance Laybuy's merchant growth strategy in the UK.

The launch of the App Exclusives has been accompanied with a campaign in the UK to raise awareness amongst key consumer groups of the new offering, pivoting the business from a traditional B2B marketing business to a B2C marketing business.

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

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Active Customers and Merchants

Active Customers by region ('000)				Active Merchants by region
			NZ & AU	889						NZ & AU					11,743
			UK	756						UK					9,126
				568
														6,323
403										5,204
												4,283
253								3,189
196				2,021
147
	H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 H2 FY21 H1 FY22			H1 FY19	H2 FY19	H1 FY20	H2 FY20	H1 FY21	H2 FY21	H1 FY22

Active customers increased to 889,000 in 1H FY22, an increase of 321,000 on 1H FY21. The growth was particularly strong in the UK, as Laybuy continues to deliver on its strategic initiatives by broadening its merchant offering further supported by the launch of the App Exclusives.

Active merchants have reached 11,700 in 1H FY22, an increase of 5,400 on 1H FY21. The UK had particularly strong growth, with an increase of 332% YoY. The App Exclusives launched in late August and already has over 170 merchants active, with the ability to increase to 5,000 over time.

Over the past year, Laybuy has on-boarded a large number of Active Merchants, reflective of its investment in resources in both the UK and ANZ for acquiring and onboarding new merchants. This strong growth is expected to continue and drive increased customer acquisitions and increased purchasing frequency, both of which will contribute to substantial GMV growth as customers continue to use Laybuy as a preferred payment method at checkout. Laybuy continues to increase its brand awareness through major sporting partnerships including Manchester United, Manchester City and Arsenal football clubs in the UK, and Super Rugby clubs in New Zealand.

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