JAYRIDE GROUP LIMITED — Interim / Quarterly Report 2020

Oct 28, 2020

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September Quarter Results and Appendix 4C Improved Cash Flows as Travel Recovery Continues

29th October 2020 – Jayride Group Limited (ASX: JAY) (“Jayride” or the “Company”),​ the world leading global travel marketplace for airport transfers, presents its Quarterly Business Review and Appendix 4C for the quarter ended 30th September 2020 (Q1 FY21).

• Underlying cash performance has improved to $(0.90)M in Q1 FY21, from $(1.88)M in Q3 FY20, an improvement of 52% over two quarters since the onset of COVID-19

• Net cash flow improved to $(0.26)M in Q1 FY21, from $(2.61)M in Q3 FY20, an improvement of 90%

• Passenger Trips Booked grew to 16K, growth of 163% in Q1 FY21 vs prior quarter

• Net Revenue grew to $104K, growth of 397% in Q1 FY21 vs prior quarter

• GPAPA grew to $80K, growth of 208% in Q1 FY21 vs prior quarter

• Following completion of the quarter, Jayride has raised $1.5M in a successful placement to existing and new institutional and sophisticated investors, and launched an SPP to raise an extra $1.0M

Co-founder and Managing Director Rod Bishop, said​ : ​ “Our Q1 FY21 quarter shows ongoing recovery, backed by a strong cash performance. Net cash flow improved to $(0.26)M for the quarter due to significant ongoing improvements in underlying performance and key grants received. The global travel recovery is continuing and Jayride has now grown passenger trips booked for six months since the COVID-19 low in April.

“Subsequent to the end of the quarter we have successfully completed a fully subscribed Placement with support from existing shareholders including sophisticated and institutional investors. This is a strong endorsement of Jayride’s strategy and ability to grow and capture market share as the travel recovery continues. We are pleased to invite all shareholders to participate in our Share Purchase Plan at the same offer price as the Placement.”

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Jayride Group Limited (ACN 155 285 528)

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Improved Cash Flows

Cash flow has significantly improved over two quarters since the onset of COVID-19. Net cash flow improved to $(0.26)M in Q1 FY21, from $(2.61)M in Q3 FY20, an improvement of 90%. Underlying cash performance has improved for the second consecutive quarter to $(0.90)M in Q1 FY21, from $(1.88)M in Q3 FY20, an improvement of 52%.

These improvements are due to three factors:

• $7M in cost savings implemented in March and further savings implemented across Q4 and Q1

• The completion of payments of traveller refunds and transport obligations in Q3 and Q4, and

• The successful receipt of grants across Q1, including R&D Tax Incentive, JobKeeper, Cash Boost, and Export Market Development Grant (Total of $0.96M)

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$AUD	Net	Interest	Grants	Receipts	Other	Underlying
M’s 1	cash flows			movement	Flows	performance
Q3	$(2.61)	$(0.09)	–	$(0.60)	$0.04	$(1.88)
Q4	$(0.99)	$(0.07)	$0.33	$(0.56)	$0.31	$(1.00)
Q1	$(0.26)	$(0.06)	$0.96	$(0.05)	$(0.22)	$(0.90)

Jayride has outperformed the forecast presented in the Company’s previous Quarterly Business Review released to market on 23rd July 2020. Underlying Performance, Interest, and Grants were all better than

1 Underlying Performance equals Net Cash Flows less Interest, Grants, Receipts Movement, Other Financing and Investing Flows. Receipts Movement is the difference between Net Revenues and Cash Receipts from Customers. Other cash flows of $0.31 in Q4 FY20 and $(0.22) in Q1 FY21 are one off cash flows that relate to the end of Jayride’s office lease including return of bond and makegood.

Previous disclosures calculated Underlying Performance from Net Operating Cash Flows only, and did not include Financing and Investing Cash Flows. This disclosure now includes all cash flows to allow investors to easily compare the current period with prior periods.

Jayride Group Limited (ACN 155 285 528)

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forecast; and as expected, no further significant Receipts Movement took place as transport payments and traveller refund obligations from the onset of COVID-19 had been paid in previous quarters.

On 30th September 2020, the Company held $701K of cash and cash equivalents.

Following the end of quarter the Company has completed a successful, fully subscribed, $1.5M Placement, and launched a $1.0M Share Purchase Plan, to raise a maximum total of $2.5M of new funds.

Jayride also has $1.0M of undrawn debt under its existing loan facilities, and the support of its debt providers. The Company does not expect to draw upon this headroom at this time.

Related parties of the Company, including the Managing Director and some other Directors, were paid remuneration in the amount of $69K during the September quarter.

In FY21 and going forward, the Company has made a change to the categorisation of cash flows in its Appendix 4C to reconcile more completely to the Company’s audited financial statements. Those changes include accounting for leases split across operating and financing flows, and accounting for engineering, research and development split across operating and investing flows.

Trips Recovery Continues led by Northern Hemisphere

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Bookings continue to increase, and refunds continue to decrease

	Trips	Revenues	Revenues	Net	Trips	Revenues
Quarter	Booked	Booked	Refunded	Revenues	Growth %	Growth %
Q4 FY20	6,100	$121,800	$(100,900)	$20,900
Q1 FY21	15,900	$185,200	$(81,300)	$103,900	+163%	+397%

Jayride Group Limited (ACN 155 285 528)

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Jayride’s revenue recovery continues in Q1. Net Revenue grew to $103,900 for Q1 FY21, up from $20,900 in the preceding Q4 FY20, growth of 397% quarter-over-quarter. Passenger trips booked increased, revenues booked increased, refunds decreased, and variable costs remained low.

The Company’s recovery continues to be driven by global demand with over 90% of trips being sourced from outside Australia.

Jayride’s sales and marketing focus is on regions where travel corridors are open, including North America and Europe. Jayride continues to source travellers from North American and European markets, for domestic and regional travel within those markets. The Company will continue to focus there as well as on other soon-to-open travel corridors including Australia-New Zealand, Singapore, Taiwan, and Japan.

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Gross Profit after Paid Acquisition (GPAPA) grew to $80,000 for Q1 FY21, up from $26,000 in the preceding Q4 FY20, growth of 208% quarter-over-quarter. This recovery in Company performance is expected to continue into Q2 FY21 and onwards into CY21.

Three Tailwinds to Recovery - Ongoing Progress

Jayride’s outlook assumes that the COVID-19 virus continues for the foreseeable future, and that travellers during this “new normal” will be purpose-driven with heightened needs for health security and duty-of-care.

In this new travel environment, door-to-door rides build traveller confidence and travellers will prefer to pre-book high-quality health-secure ride services for confidence.

Jayride Group Limited (ACN 155 285 528)

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Jayride sees three complementary tailwinds to recovery: The ​ cyclical ​ recovery as travel restrictions ease, an improvement in Jayride’s ​ competitive​ positioning in the market, and an acceleration of the ​ structural trend from offline to online booking of rides.

In Q1 FY21 progress was made to develop and capture benefits from each tailwind.

Tailwind Cyclical recovery from restrictions easing Improved competitive position Accelerating structural trend to online booking

Q1 FY21 Positive outlook for CY21 Net relaxation of restrictions across Northern Hemisphere Upcoming “safe” travel corridors including Australia to New Zealand, Singapore, Taiwan and Japan Winning new travel brand partners across Q1 FY21 Continued increase in B2B sales and marketing to win new travel brands, and optimise B2C websites to retain travellers, increase conversion rates, and win organic traffic New partners implementing Jayride have never previously had a transfers solution Continued marketing of the benefit of door-to-door rides in rebuilding traveller confidence to support our partner’s flight and hotel sales.

Successful Capital Raise

Following the end of quarter Jayride has completed a successful, fully subscribed, $1.5M Placement, and launched a $1.0M Share Purchase Plan, to raise a maximum total of $2.5M of new funds. The funds raised from the successful capital raising will allow the Company to invest to capture market share as the travel recovery continues.

Positive Outlook and Key Priorities

Jayride has a positive outlook of continued recovery with the opportunity to capture market share in CY21.

The Company’s key focus in the short-term is winning market share from other online competitors, both through signing new B2B partnerships and winning organic web traffic from search engines.

In parallel, the Company continues to invest in its core Booking Website IP for future scale, including: Development of its website to retain travellers, through the launch of new membership systems; and to improve conversion rates through targeted transport contracting and exclusives in key travel corridors including reopening destinations.

In latest trading, the Company looks forward to continued recovery into the December holiday season, with October Passenger Trips Booked set to exceed September.

Jayride Group Limited (ACN 155 285 528)

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For more information please contact

Rod Bishop

Managing Director Email: corporate@jayride.com

ASX release authorised by Rod Bishop, Managing Director, Jayride Group Limited.

About Jayride Group Limited

Jayride.com is the world’s leading publicly listed airport transfers marketplace, where travellers compare and book rides around the world. With Jayride.com, travellers can compare and book with 3,700+ ride service companies, servicing 1,600+ airports in 110+ countries around the world, including the Americas, Europe, Middle East, Africa, Asia and the Pacific.

The Jayride.com platform aggregates ride service companies and distributes them to travellers at Jayride.com; and via travel brand partners including other technology platforms, travel agencies and wholesalers. These travel brands implement Jayride APIs to sell door–to–door ride services that build traveller confidence and defend their core travel business.

Founded in 2012, Jayride.com is headquartered in Sydney, Australia.

For more information, please visit www.jayride.com

Forward-looking statements

This announcement contains forward-looking statements that involve risks and uncertainties. Indications of, and guidelines or outlook on, future earnings, distributions or financial position or performance and targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources are also forward-looking statements. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions and estimates regarding future events and actions that, while considered reasonable as at the date of this announcement and are expected to take place, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, the directors and management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are subject to various risk factors that could cause actual events or results to differ materially from the events or results estimated, expressed or anticipated in these statements.

Jayride Group Limited (ACN 155 285 528)

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