Xero : News December 2022

Xero News December 2022

The latest in product, ecosystem, partnerships and business at Xero

DEEP DIVE

We're proud to operate in a way that respects the planet, supports our communities and helps our people thrive. Here are the latest initiatives at Xero that support our ongoing efforts to become more environmentally sustainable.

Xero sets climate targets to work towards a net-zero future

We recently announced emissions reduction targets to 2030, as the next step in our journey towards net-zeroemissions by 2050. These near-term targets build on our existing 'Net Zero @ Xero' carbon reduction program, and align with climate science.

The targets support the Paris Agreement goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels. The targets are:

• 42% reduction in Scope 1 and 2 emissions from FY20 by FY30
• 17% reduction in Scope 3 emissions from FY20 by FY30
• Net-zero*emissions no later than FY50

We will work towards achieving these targets by focusing on the areas of increased renewable energy uptake, being more strategic about business travel, and switching to more sustainable catering wherever possible. We aim to report our performance against these targets in the financial year ending 31 March 2023.

"The climate crisis is affecting all of us, and every business has a role to play in supporting the transition to a net-zero economy. We're proud to be on a carbon reduction journey, and setting these targets provides a clear direction for us to reduce our greenhouse gas emissions, while building on our current initiatives."

STEVE VAMOS

CEO, XERO

Helping UK small businesses to reach net-zero with Ecologi

We're excited to welcomeBristol-basedclimate tech start- up, Ecologi, to the Xero App Store to help service-basedsmall businesses in the UK track and reduce their impact on the environment.

It's more important than ever for the business community to play its part in protecting our planet. During the recently concluded COP27 summit, there was an increased call for stronger action on net-zero. But for smaller businesses, it can be difficult to know where to start.

Ecologi's app will give thousands of service-based small businesses the opportunity to access Ecologi Zero, a simple-to-use and accurate carbon accounting platform for free - enabling them to measure their emissions. This will help to make carbon tracking and climate action more accessible for smaller businesses in the UK.

NEWS

Sukhinder Singh Cassidy appointed as Xero's new CEO

The Board of Xero Limited announced the appointment of Sukhinder Singh Cassidyas Xero's new CEO, from 1 February 2023. Sukhinder will succeed Steve Vamos who, after serving almost five years as CEO, is retiring from the role and plans to return to his previous portfolio in business coaching and leadership development as an advisor, director and investor.

Sukhinder is an experienced Silicon Valley executive, with more than 25 years' global

leadership experience, including as President, Asia Pacific & Latin America at Google; President at StubHub; founder of theBoardlist; founder of

Joyus, where she was CEO; and co-founder of Yodlee. She has significant public and private board experience with multiple companies.

Sukhinder started at Xero on 28 November 2022. She is working closely with Steve

to manage the CEO transition, with Steve remaining available to advise through to the

of May 2023.

*Emissions reduced to a point where fewer than 10 percent of total emissions require abatement through offsets as defined by the Science-Based Targets initiative Net-Zero guidance.

Xero News December 2022

The latest in product, ecosystem, partnerships and business at Xero

NEWS

Xero establishes a technology base in India

In November, we announced that we're establishing a Xero base in India, where there is deep technical talent, to enhance our existing hiring and development programs for technology roles. Through a strategic partnership with Infosys, a global digital services and consulting company, we're setting up a Xero-managed centre of technical talent at an Infosys campus in India.

Over the coming months and years, we plan to grow our technology team in India, focusing initially on attracting engineers and developers to fill roles which will help accelerate our delivery of products and features to benefit our customers.

This is an important step in our strategic approach to increase our team of world- leading technical specialists, to support our continued sustainable growth and the ongoing value we deliver to our customers. At this stage, we don't have any plans to establish a Xero go-to-market function in India.

Our priority is to establish our presence in India and plan the design of our future workplace which will include the usual Xero features that will support our new Xeros to do the best work of their lives. Our plan is to have a mix of Xero and Infosys employees working together in a space that embodies our Xero values and culture.

New collaboration with Intel empowers small businesses

We announced a collaboration with Intel to help empower small businesses owners to better manage their finances. Xero is the only accounting software provider included in the launch of the Intel Software Advantage Program, which helps small businesses gain more visibility over their financial position, so they can grow faster and smarter.

In the United States, Canada, Australia and the United Kingdom, Xero customers who purchase an eligible Intel vPro

• PC (desktop or laptop) will receive an exclusive offer for Xero's cloud accounting solutions. The Intel software bundle for business provides small businesses with access to key software, extended trials, discounts, and app credits worth more than $500 USD.

A new partnership with BMO to streamline bank reconciliation

At Xerocon New Orleans, we announced a new partnership with BMO Financial Group in Canada, and we're excited to share that this partnership has now been extended to customers in the US. Our BMO bank feed is now available for small businesses in the US and Canada, allowing their BMO transactions to automatically flow into Xero once a day.

Xero's half year 2023 financial results

Xero continued to deliver strong growth momentum in its half-yearfinancial results to 30 September 2022(H1 FY23), with more small businesses placing their trust in our cloud technology and open platform to run their business and meet critical compliance needs.

Our H1 FY23 performance highlights include operating revenue growing 30% (27% in constant currency) to $658.5 million, total customer lifetime value increasing 30% to $13 billion, and subscribers up 16% to 3.5 million.

The environment small businesses are operating in around the world remains complex. They continue to navigate and adapt to increasing inflationary and interest rate pressures and challenges in accessing talent, while responding to the evolving needs of their customers. Times like these strengthen the case for small businesses to adopt cloud technology that enables their businesses to be more efficient and effective.

Latest product news

View the latest

product and feature

updates in Xero.

ECOSYSTEM

New additions to the Xero App Store

Last month, we welcomed some new apps to the Xero App Store, including invoice template app Billdu, property management accounts payable solution CondoWorks(Canada, USA) and bulk EFT/batch payment processing app BFI Pay(South Africa).

APP SPOTLIGHT

App Partner Stories: Supporting a (robotic) bird's eye view of analytics

Using robotic birds to keep real birds and people safe? Aerium Analyticsshared how they do it, and how using app partner Projectworkstogether with Xero helped them elevate their business.