Announcement PDF Compliance. Simple. Investor Presentation 18 July 2024 Authorised by: Trent Lund Chief Executive Officer trent.lund@wrkr.com.au Wrkr Ltd ACN 611 202 414 Level 3, Suite 1, 104 Commonwealth St Surry Hills NSW 2010 Wrkr Ltd Entity: ASX: Wrkr Ltd WRK Share Price: $0.031* Market Cap: CEO: CFO: Board: Top 50 Shareholders: Web: www.wrkr.com.au Office: 104 Commonwealth Street, Surry Hills, Sydney 2010 ~$39.42m* Staff: 42 Trent Lund (Director) Karen Gilmour Emma Dobson (Chair) Paul Collins Randolf Clinton Jillian McGregor (CoSec) Locations: ~85% *Accurate as at market close 16/06/2024 Sydney, Melbourne Quick Facts $8 ARPU Product Mix: Onboarding Pay & Super Processing Compliance report lodgment Licence & Credential checks Revenue mix: SaaS User License Transaction Fees Float interest income Licence Fees Support & Maintenance Services (consulting) *Based on unaudited financials for the full FY2024 $5.2m* ARR 500k ~$9m-$10m* Direct SaaS Users Total Revenue $9.2m* Operating Expenses 2.9m Total licenced users The problem: There are two areas where employer compliance obligations are complex, lead to significant reputational risk and fines by regulators. In both, hiring and payment of employees there are steps that require third party licenced operators such as Wrkr to complete the process. Hiring an employee Paying an Employee Identity verification Work rights TFN Check Tax declaration Super choice Default fund Bank details Licenses Credentials Vevo API ASTO DSP T1 State & Federal lic/WWC/ID Pay processing Disbursement processing Super contribution Super Confirmation (ATO) Single Touch Payroll report lodgement Payment reconciliation Error reporting and correction PII /CDR ISO/SOCII Cyber GNGB Gateway/Clearing House AFSL non cash payments ATO DSP STP2, Rollovers Who needs to solve this problem: The complexity of these compliance moments requires deep integration to federal and state government data sources, holding of specialised licences and ownership of technology. Hiring an employee Identity verification Work rights TFN Check Tax declaration Super choice Default fund Bank details Licences Credentials Super Funds SMSF Service Providers HRM Systems & Implementers Payroll Providers Employers Contract Labour Hire Small Business Owners Paying an Employee Pay processing Disbursement processing Super contribution Super Confirmation (ATO) Single Touch Payroll report lodgement Payment reconciliation Error reporting and correction Wrkr solves employee compliance moments in a branded mobile experience From paper, errors, time, data risks to…digital, mobile, secure, data completion with real-time attestation Employer branded Mobile friendly Secure, data driven consent Real-time attestation Wrkr mobile application screen (in customer brand) Our technology provides a ‘one stop shop’ for compliance management Example application home screen Our integrated applications, being served from a single platform, simplifies the experience for Employers. One secure application to manage compliance moments between employers and their employees for: Pay Super & SMSF contributions STP and other ATO services Onboarding and certification Continuous compliance checks Our MUFG Retirement Solutions (formerly Link Group), build for “Industry Funds” balances shared benefits and competitive differentiation by: A Fund branded example of the Wrkr application MUFG contract management and aggregated pricing Fully funded integration to MUFG Aspire™ admin platform Full integration to MUFG support processes and tools Fund branding and configuration Employer experience designed with Fund Member onboarding designed with Fund Available catalogue of compliance moments from Wrkr Additional services and custom industry solutions built in collaboration with individual funds The MUFG & Wrkr Contract provides potential access to some of Australia’s largest funds Australian Market: Approx 16m contributing members (~14.5m Employees / >19.4m Jobs ) MUFG Australian Clients (using Aaspire Admin platform) and their estimated >7m* contributing members: Australian Super 2.4m* Rest Super 1.4m* Hostplus 1.4m* CBUS ~1m* Hesta ~1m* SCH Online Users 600K* *Estimates are based on contribution flows that vary by quarter. ● MUFG Industry Funds share the same Administration platform and support model, that could benefit from a single integrated clearing house and gateway by Wrkr ● Industry funds have the highest pay frequency (most impacted by Payday Super reforms) ● Industry funds support employers with the highest turnover of staff (requiring efficient onboarding) FY24 Financial Highlights FY24 compared to FY23 Operating Cash Flows +$340k 190% -$376k Cash Receipts from Customers $9.51m 46% $6.52m Cost to Income Ratio 0.95 36% 1.29 ● Positive net operating cash flows achieved for the first time since Wrkr was listed in 2016 demonstrating: ○ Commitment to driving cost efficiencies; ○ Capitalising on the investment to date in the multi-cloud, multi-jurisdictional capabilities of the Wrkr platform; ○ Growth in revenues from the MUFG contracts and SMSF Hub; ○ Retention of key platform licence customers and a stable return on the existing clearing house, payments and single touch payroll products ○ Careful management of working capital and investment in growth ● Cost to income ratio (12 mths rolling) excludes interest, depreciation & amortisation, cost of employee share schemes, costs relating to changes in share capital, impairment of patents, convertible notes costs, and the fair value movement of the convertible notes embedded derivative. ● ● FY24 figures are unaudited and may be subject to change Figures compared to FY23 Historical financial results by financial year $6.57m ↑43% $2.31M ↑42% $9-$10m ↑>40% $4.60M ↑120% $1.73m $1.43m ↓17% FY19 FY20 FY21 FY22 FY23 1,727,694 1,426,490 2,031,560 4,597,852 6,575,048 -1,168,743 -1,748,754 -1,740,736 -1,429,093 -1,558,236 -13,022,078 -3,666,012 -3,788,972 -4,346,885 -4,172,908 -823,783 -1,474,061 -2,046,248 -1,624,324 -375,610 1,460,240 990,954 2,731,435 1,276,551 4,108,448 Operating Revenue FY19 to FY24 Operating Revenue EBITDA NPAT Operating Cash flows Cash at Bank Note: Figures as per historical Statutory Financial Statements. FY24 Projection Financial outlook ● Projected FY24 net operating revenues between $9m to $10m ● Continue focus to improve financial performance targeting positive EBITDA in FY25 ● Continue to balance our investment between short term revenue generation and long term growth ● With less than 24 months before PayDay Super, Wrkr will invest alongside MUFG in providing commercials and implementation planning options for MUFG’s broader Fund clients. ● With a strong interest in our Industry Solution, Wrkr expects resource planning to be critical and will look at various options to support concurrent deployments. Wrkr & industry trends Strong contracted base 500K direct users, ART Super, MUFG, Rest Super Positioned for growth (SaaS) MUFG deal provides potential access to Australian Super, Hostplus, CBUS, Hesta and several smaller funds. Strong financial management Revenue growth year-on-year for 3 years and cost to income ratio improvements achieved. Market Leading tech Technology in use across Federal & State Government bodies and leading Super Funds. Regulatory tail winds Proposed PayDay Super reforms are set to double ‘Super’ transactions and open a software change moment across Australian businesses. Favourable market conditions Interest rates are high, generating increased float income. Population growth and immigration is high. Industry dynamics M&A activity, Super performance tests, increased cyber threats, and PayDay Super preparation is driving investment programs in Super, HR/Payroll sector. Thank you & Questions wrkr.com.au Management Team Trent Lund Karen Gilmour Joe Brasacchio Jean-Paul Seow Greg Tonner CEO and Managing Director CFO CTO (Comply Path Founder) Head of Commercial and Alliances Head of Growth Trent has over 25 years experience in technology and innovation. Trent is also CEO of Unlocked Ventures and holds numerous advisory board roles in technology & business. Karen has over 15 years experience in senior finance management positions across banking & finance, commodities and construction across Australia and UK. Joe has over 20 years of experience in leading high profile digital transformations, co-design in open Data Standards development, building RegTech platforms and venturing. Jean-Paul has over 15 years experience covering commercial, strategy and venturing. Worked across FS, Telco, Retail and Postal industries across AU, Asia and US. Greg is a strong leader with over 25 years in executing growth strategies in the software and technology sectors across Asia and the UK. Greg was CEO and led the transformation of the Queensland Cowboys. Board Emma Dobson Paul Collins Randolf Clinton Jillian McGregor Non-Executive Chair Non-Executive Director Non-Executive Director Company Secretary Summary information Financial data This presentation contains summary information about Wrkr Ltd (Company) (ASX: WRK) and its activities as at the date of the presentation. The information in this presentation is of a general nature and does not purport to be complete or contain all information that a prospective investor should consider when evaluating an investment decision in the Company or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth) (Corporations Act). This presentation should be read in conjunction with the Company's other periodic news releases or ASX disclosure documents as available from time to time. All financial information in this presentation is in Australian dollars ($ or AUD) unless otherwise stated. Investors should note that this presentation may contain pro forma historical and forward looking financial information. The pro forma and forward looking financial information and the historical information, provided in this presentation is for illustrative purposes only and is not represented as being indicative of the Company’s views on its future financial condition and/or performance. Forward looking statements This presentation contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements of the Company to be materially different from those expressed or implied in this release including, amongst others, changes in general economic and business conditions, regulatory environment, results of advertising and sales activities, competition, and the availability of resources. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation. Except as required by law, the Company assumes no obligation to update or correct the information in this presentation. To the maximum extent permitted by law, the Company and its subsidiaries and officers do not make any representation or warranty as to the likelihood of fulfilment of any forward-looking statements and disclaim responsibility and liability for any forward-looking statements or other information in this presentation. Not an offer of securities or financial products This presentation is not a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with ASIC) or any other law. This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities or any financial product nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this presentation but must make its own assessment of the Company and conduct its own investigations and analysis. Before making an investment in the Company, a prospective investor should consider whether such an investment is appropriate to their particular investment objectives and financial situation and seek appropriate advice, including legal, taxation and financial advice appropriate to their jurisdiction and circumstances. The pro forma financial information has been prepared by the Company in accordance with the recognition and measurement principles of Australian Accounting Standards (AAS) and the Company’s adopted accounting policies of applicable accounting standards and other mandatory reporting requirements in Australia. Investors should also note that any pro forma financial information does not purport to be in compliance with Article 11 of Regulation S-X of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Such information does not purport to comply with Article 3-05 of Regulation S-X. Investors should be aware that certain financial measures included in this presentation are ‘non-IFRS financial information’ under ASIC Regulatory Guide 230: ‘Disclosing non-IFRS financial information’ published by ASIC and also ‘non-GAAP financial measures’ within the meaning of Regulation G under the U.S. Securities Exchange Act of 1934, as amended, and are not recognised under AAS and International Financial Reporting Standards (IFRS). The non-IFRS financial information / non-GAAP financial measures include EBITDA and EBIT. The Company believes the non-IFRS financial information / non-GAAP measures provide useful information to users in measuring the financial performance and conditions of the Company. The non-IFRS financial information / non-GAAP financial measures do not have a standardised meaning prescribed by AAS or IFRS. Therefore, the non-IFRS financial information is not a measure of financial performance, liquidity or value under the IFRS and may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with AAS or IFRS. Investors are cautioned, therefore, not to place undue reliance on any non-IFRS financial information / non-GAAP financial measures included in this presentation.