XREF LIMITED — AGM Information 2022

Nov 28, 2022

XREF

Annual General Meeting to Shareholders
29th November 2022

The problem

Talent is on the move now more than ever

With high resignations and talent shortages, employers are facing an extremely competitive market.

The solution

Make confident, people-focused decisions at every stage of the talent journey with Xref Enterprise

Recruit only the best and validated talent.

Reduce time to hire and secure top talent fast. Make informed, compliant hiring decisions with Xref's automated reference checking software.

Our next generation platform -Xref Enterprise

Designed and built from the ground up to satisfy the demands of a rapidly changing employment market. A 100% self service, multi language, enterprise platform offered on subscription and easily distributed via single sign on (SSO). Xref's next generation platform comes with all the security and simplicity our clients know and trust. With Exit Surveys already launched, the staged rollout will continue throughout FY2023.

Hire to Retire Solutions

• Candidate References
• Employee Pulse Surveys
• Exit Surveys
• F Trust Marketplace Access
• Talent Pool and People Search

Key Features

• Custom Survey Builder
• Advanced Analytics
• Custom SMS and Email
• Fully Branded and Multi Org
• SSO and ATS Integrations

All new branding

Achieve compliance and hire confidently with additional pre-employment checks via Trust Marketplace. As a growing community of global checking vendors, Trust Marketplace is an aggregator for enhanced due diligence.

Checks available in partnership with

Australian Government Department of Foreign Affairs and Trade

Additional checks

Add checks you wish to request. Powered by Trust Marketplace.

Available

$\checkmark$

Graduate verification check

Verify candidates digital academic credentials with eQuals

Available

ID Document verification check Verify candidates digital academic credentials with eQu

Checks added

Available

Police check Verify candidates digital academic o

• Sector credibility
• Industry data $\bullet$
• Leading technology
• Market opportunity

Above all else, we are...

Profitable

In FY21 Xref recorded its first net profit after tax following a \$10m loss in FY20. In FY22 net profit after tax increased 834% to \$0.73m. This is helped by revenues over the last two years growing by 125%

Xref now has a strong cash position and grew free cash flow by 865% during FY22 whilst at the same time investing \$1.4m into product development. As the business increases sales at a significantly higher rate than overall expenditure, operating leverage continues to improve.

The Group expects further growth in overseas regions will further reduce the impact of seasonality and support continued profitability.

Credible

G2 is the world's largest tech marketplace where businesses can discover, review, and manage the technology they need. G2 is considered the industry standard for comparing enterprise technology platforms, particularly within the North American market.

Xref has ranked first for reference checking software globally against 30 other contenders in G2's latest Spring 2022 report. This accolade is in addition to recently ranking in the Top 10 for Best ANZ software. As a SaaS leader, Xref consistently ranks similarly to market giants such as Atlassian, Canva and Xero.

Xref is also rated highly on Capterra, GetApp and continously receives outstanding reviews on Google in each key region.

Scalable

Xref will continue to invest in growth through data-driven digital marketing with the self-serve initiative continuing to drive inbound leads. Through digital marketing, product innovation and leading customer service, Xref will continue to be a thoughtleader and trusted partner to talent acquisition and HR teams globally.

The staged release of the enhanced platform, including Xref Pulse Surveys and the Trust Marketplace will continue throughout FY2023. These new services will dramatically increase Xref's global addressable market and is expected to grow the North America market via channel partners, wholesale, and self-serve subscription sales.

—

Xref Enterprise

Thank you!

If you have more questions about Xref Enterprise and us as a company, visit our website xref.com

Visit website

XREF

Questions?

ASX Announcement/Press Release: 29th November 2022 Xref Limited (ASX: XF1)

Xref 2022 Annual General Meeting

Chairman's Address - Tom Stianos

Your company has performed well in the financial year ended 30 June 2022. Revenue increased 29% to \$18.6m while also generating positive operating cash flow of \$4.6m. EBITDA also grew 71% to \$1.77m. This gave us the ability to invest in product innovation and marketing.

Last year we launched an exit survey product to complement our core reference checking software and we developed plans to further fill out our offering with engagement surveys and pulse checks during the 2023 financial year. We took a step forward in this regard with the recent acquisition of Voice Project. This acquisition is expected to complete by January 2023 and is forecast to contribute \$4m revenue per year beginning in the second half of FY2023. Voice Project provides a foundation to further develop our offering in the employee engagement category.

Last month we launched our new platform that offers a subscription-based service. We have already begun to migrate some clients from the pre-paid credits model to an annual subscription, however full migration of customers may take more than a year to complete. The board is particularly focused on this as it aims to steadily increase revenue as well as the predictability of revenue.

The Company signed a number of significant contracts during the year including the Graduate Verification Service and the Coles employee identity verification system. The GVS service is exclusive to Xref but will take more than a year to fully ramp up as universities progressively come online.

Last year, a significant part of our Rapid ID revenue came from Crypto clients, and these saw declining demand in the last six months. Happily, we have begun to broaden the client base for our Rapid ID product, which reduces dependence on Crypto clients. This also brings Rapid ID more in line with the core Xref product set.

The first four months of FY23 has seen slower growth of new credit sales. Consequently, overall sales are in line with the corresponding period last year. Despite this, and helped by the broadening of our revenue base, we forecast group revenue for the first half of FY23 to be approximately 10% up on last year. H1 revenue from our core Xref business is forecast to be 18% up on PCP, while RapidID H1 revenue is forecast to be down 16% due to the decline in demand from crypto clients.

The company continues to invest in product development and improving our offering, much of this work is aimed at generating profitable growth well beyond the current financial year. In the meantime, we aim to fund these developments from operating cash flow.

To give you a more comprehensive presentation of our plans I would now like to introduce our CEO Lee-Martin Seymour.

CEO's Address - Lee-Martin Seymour

Talent remains on the move and employers are facing an extremely competitive market. Employers need to move quickly to hire the best talent, so having the right processes in place to make confident hiring decisions has never been more important. Salary requirements, changes due to tenure and sector as well as role and geographic changes have all contributed to a chaotic employment market.

Leaders in the sector are questioning legacy processes and seeking new technology solutions to tackle the pressures of remote working, talent sourcing and candidate verification, whilst increasing engagement and retention and combating attrition.

Xref is extending its pre-employment offering with the launch of a full-service, hire-to-retire enterprise SaaS platform for employers called "Xref Enterprise". The Xref Enterprise platform extends Xref's addressable market tenfold and will shift Xref's global business model away from being solely usage-based, allowing Xref to decouple its revenue recognition from recruiting trends.

Offering the Enterprise platform on a subscription basis only will help decouple our revenue away from seasonal recruitment trends and market downturns. As we extend our offering we make a move away from traditional credit prices and top-ups. Enterprise subscriptions and added self-service features will aid growth in North America, a focus of our strategy.

In unison with our new platform launch, we have launched the Trust Marketplace that encompasses ID checks from RapidID, the new Graduate Verification Scheme and additional checks such as criminal, right to work and employment checks via our partner network. The Trust Marketplace brings together a range of Online Trust products in an agnostic, API-only Marketplace. All Trust Marketplace products will be available via Xref Recruiter and (the new) Enterprise platforms.

Recruit, Retain, Remember Your people - the all-new website, Xref.com has been released and it formally introduces the Exit Survey platform which was recently launched as well as Pulse Survey which is coming soon. The site showcases testimonials and Xref's impeccable ratings from all around the world and celebrates our history and the people that have driven our success.

Xref has established a leadership position in automated applicant reference checking. Last year, Xref launched its exit survey product, and now with the acquisition of Voice Project, it accelerates the launch of its Pulse and Engagement Survey offering to complete the hire-to-retire product portfolio.

Xref will pay \$2m cash from its existing cash reserves at completion plus up to \$2m in script on the 1st and 2nd anniversaries following completion, conditional on performance. The acquisition will add approximately \$4 million to Xref's revenues and increase staff from 85 to 100. Voice Project is profitable and is forecast to be EPS accretive to Xref.

The 2022 financial year delivered increased profit as well as operating cash flow. Net profit after tax grew to \$729,575, EBITDA increased to \$1.77m (\$1.04m in FY2021) and cash generated from operations was \$4.62m (\$2.32m in FY2021).

Our best-in-class credibility as a leading online brand is evidenced by our continued ranking as the #1 reference checking company on G2. On this review platform, our customers have awarded us an average 4.7 star rating. This is further supported by our global Google review rating of 4.8 stars, Capterra reviews also place us with 4.7 stars.

Our continual product development and the launch of our subscription service points to the scalability of our platform. The new subscription model is an opportunity for growth as we expand our customer base.

While recruitment activity has slowed, our product offering has expanded. We forecast sales for the first half to be in line with H1 last year. Nevertheless, our sales team activity is high with strong lead flow, albeit with time to close sales extended due to market conditions.

Meanwhile, activity by clients on the platform continues and revenues for Xref are forecast to be up 18% in the first half. Furthermore, the Voice Project acquisition bootstraps our launch into Engagement and Pulse and immediately adding \$4 million revenue in a full year. Revenue for the group (including Rapid ID) is forecast to grow 10% in the first half compared to PCP.

Xref has enjoyed six profitable quarters to date and it continues to have a positive outlook. For this reason, the Australian Securities Exchange (ASX) no longer requires Xref to provide Appendix 4C Quarterly Cash Flow Reports. Xref will, however, continue to provide regular business updates to the market.

Xref will also continue to invest in growth through data-driven digital marketing with the self-serve initiative continuing to bring inbound leads. Through digital marketing, product innovation and leading customer service, Xref will continue to be a thought leader and trusted partner to talent acquisition and HR teams globally.

Our digital-first approach has been vital to our growth and the Company's results not only reflect the critical nature and demand for the Xref platform and services but demonstrate the dedication and professionalism of the Xref team.

I am incredibly proud of the many strategic decisions the team made during FY22, which resulted in our strongest position to date. Our executive and senior leadership team were critical to our success.

This announcement has been approved by the board of directors of Xref Limited.

To learn more, please visit

Website: xref.com Investor Centre and Presentation: xf1.com Twitter: @xf1 Email: investors@xf1.com