Announcement PDF A global platform for pre-employment verification. 2021 ASX : XF1 SHAREHOLDER PRESENTATION Welcome to our journey Watch the CEO Welcome Lee-Martin Seymour, Co Founder and CEO | Watch the CEO Welcome on XF1.com 2021 ASX : XF1 SHAREHOLDER PRESENTATION First to market and best in class 02 Global human verification platform 03 e platform of choice globally 04 Client acquisition and retention 05 Organisations that people trust most, trust Xref 06 Global platform interactions 07 Highest rated globally 08 +38% sales growth 09 +50% usage growth 10 Targeting profitable scale 11 Global market opportunity 12 FY22 product roadmap 13 Capital structure 14 Board and management 15 Further resources 16 01 First to market and best in class $15m+ Founded in 2010, publicly listed in 2016 (ASX:XF1) Annual revenue run rate (AUD) 60 full-time employees with an average tenure of 3 years $14m+ Annual cost base 2.4% of all Xref shares owned by Xref employees (excl. founder). 70% of employees own Xref shares. 6,500+ Active users 2m+ Led by founder and largest shareholder, Lee-Martin Seymour Identity verification platform acquired in 2019 (RapidID) Reference checks provided Headcount by department Executive 7.0% Customer Success 10.5% Operations 15.8% Marketing 8.8% Development 29.8% Sales 28.1% Xref Team | Sydney 2021 Headcount by location Canada 8.8% New Zealand 7.0% United Kingdom 5.3% Australia 78.9% 2021 ASX : XF1 SHAREHOLDER PRESENTATION We are an innovative, online tech solution that exists to empower businesses to make great people decisions during the hiring process. With a passionate team behind everything that we do, our vision is to change the way the world hires and make the process a whole lot easier for everyone involved. We’re commi ed to building upon the playful, hard-working culture that we’re known for and will continue to celebrate every new success together. 02 Global human verification platform Product map (current) 47% Xref.com Revenue Growth from Xref’s native platform. Automated Reference Checks Instant ID & Security Checking Integrated Additional Checks 65% 7% 0.3% of total revenue Xref Enterprise Xref’s fully automated online reference checking platform allows employers to request one or multiple references in minutes and receive fast, honest feedback within 24 hours. of total revenue With RapidID, employers know who a candidate really is with biometric identity verification. It securely matches ID documentation to real-time data sources, including government, credit bureau, utility databases and more. Xref acquired RapidID in July 2019. of total revenue Employers can choose from more than 200 global checks and create packages via Xref's integrations with global checking providers. Popular checks include criminal record, right to work and qualification checks. Xref Lite Launched in 2019, Xref Lite has provided prospective clients with the opportunity to create an account, use a free credit and buy credits for future use, all within a ma er of minutes. It has all the power of Xref and is perfect for single-use users who require low volumes, or enterprise clients exploring the platform before enquiring. Xref Lite also allows the Enterprise sales team to focus on clients requiring high-volume and bespoke solutions. 55% Revenue growth from wholesale and channel partners. ATS Integrations Wholesale Partners Open HR Standards API 15.4% 1.82% 10% of total revenue Xref currently has 35 channel partner integrations. An integrated user is someone that accesses Xref from within their Applicant Tracking System (ATS). Global ATS partners include Workday, Oracle Taleo, Bullhorn, JobAdder, Pageup and SmartRecruiters amongst others. 2021 ASX : XF1 SHAREHOLDER PRESENTATION of total revenue Vendors of other checking services are able to offer the Xref automated referencing product via a wholesale agreement to their customers. of total revenue As well as tailored ATS integrations built by Xref, an 'HR Standards' API has been built for clients and partners that wish to build Xref into their own platform or workflow. e use of a publicly available API minimises the impact on Xref's development resources and enables clients to scale faster. 03 e platform of choice globally Unique platform features Integration services Xref lite (100% self-service, free to get started) Integrated with 35+ global talent management platforms People search (talent pooling from referees) HR standards public API support for bespoke integrations Template builder (multi-language, free access) Wholesale integrations with checking providers Instant ID checking (via RapidID) Integrated additional checks Privacy & security Multi-Language & accessibility ISO27001 : Global data security certification 100% multi-language platform Automated fraud checking Free multi-language template builder Multi-region micro services Infrastructure 24/7 multi-language support Privacy compliant to GDPR standards Custom translation services WCAG 2.1 compliant Advanced analytics Automated content & sentiment scoring Detailed life cycle analysis Competency benchmarking “ e SmartRecruiters and Xref integration allows us to access our entire recruitment process from one place. It’s made our process fast and accurate. e ease of use combined with the support offered by both companies is fantastic.” Tailored platform performance reporting 2021 ASX : XF1 SHAREHOLDER PRESENTATION 04 Client acquisition and retention Lead Generation +260% Increase in marketing qualified leads compared to FY20 Direct marketing Referral marketing Content marketing Sales Conversion Xref Lite +62% Digital marketing tools, including PPC, SEO and online customer reviews have driven traffic to Xref-owned assets, boosted brand salience and enhanced platform credibility online. e development and amplification of thought leadership content alone has accounted for 60% of leads. User Adoption Customer Success Features and benefits Platform optimisation Return on Investment Enterprise Account Management Product marketing References and testimonials Price and quantity growth 2021 ASX : XF1 SHAREHOLDER PRESENTATION Wholesale marketing Direct sales have been driven through leads generated by the Xref sales, account management and customer success teams, as well as joint marketing activities with integrated ATS and background checking partners. Direct sales Xref sales teams in Australia, New Zealand, the United Kingdom and Canada focus on converting enterprise leads. Once a new client has been onboarded and has started to use the platform, the sales team hands over the management of the client to the account management team. Enterprise Sales Team Increase in revenue as a result of improved platform adoption Channel marketing With Xref Lite, a user can create an account and use a free credit, then buy credits for future use and change the way their company references, all within a ma er of minutes. It has all the power of Xref and is perfect for single-use users who require low volumes, or enterprise prospects exploring the platform before enquiring. Increase in total sales compared to FY20 +36% Direct Sales Direct Marketing 05 Organisations that people trust most, trust Xref 1,200 Active clients globally 63% Joined within the last three years 50% Revenue contribution from tier #1 clients Client Size Tier #1 Tier #2 10.8% 10.5% Tier #3 Tier #4 18.9% 59.8% 15.0% 22.5% 26.2% 4 Years 5+ Years 18.3% 18.1% 16.0% 16.8% New Zealand Australia 9.2% 57.9% Client Age 1 Year 2 Years 3 Years Client Locations North America Europe 2021 ASX : XF1 SHAREHOLDER PRESENTATION 06 Global platform interactions Europe Staff Addressable Market (Labour Force) Annual sales contribution 4 120M 7% North America Staff 5 Addressable Market (Labour Force) 180M Annual sales contribution 11% 6.3m 1m+ Total user platform interactions Users exchanging data in 2021 2021 ASX : XF1 SHAREHOLDER PRESENTATION Australia & New Zealand Staff 51 Addressable Market (Labour Force) Annual sales contribution 15M AU71% NZ11% 07 Highest rated globally “Xref makes us a well-oiled recruitment machine and allows us to pass benefits on to clients.” “Xref provides data analytics that wasn’t possible with our previous approach.” “Xref frees up time for more strategic talent acquisition tasks.” Ratings & Awards Google rating 4.7 Capterra rating 4.7 G2 rating 4.6 "Xref improves the professional appearance of our organisation to potential recruits.” “With Xref we are able to identify potentially fraudulent activity by candidates.” “A fantastic solution for any busy recruitment team.” Watch video customer stories 2021 ASX : XF1 SHAREHOLDER PRESENTATION 08 +38% sales growth Expected Sales history *Actual Prepaid Credits 10% Growth 15 When clients purchase credits (credit sales) to use the candidate referencing platform, the value of their purchases is recognised as unearned income. When they pay for the credits, the cash is recognised as cash receipts. Once the credits are used by the client (usage), Xref recognises the value of the credits used as revenue (recognised revenue). COVID-19 Impact 10 snoilliM $ 5 Postpaid Checks 307% Growth 0 FY 2016 FY 2017 FY 2018 FY 2019 FY2021 Sales by client cohort (year joined) FY 2020 FY 2021 (Actual & Expected) Subscription Sales breakdown FY 2021 19.3% FY 2018 20.2% Postpaid Checks 24% FY 2020 13.8% FY 2017 15.3% Subscriptions 6% FY 2019 16.0% Pre FY 2017 15.4% Prepaid Checks 70% *Actual: Sales up to April 30th 2021. 2021 ASX : XF1 SHAREHOLDER PRESENTATION Post-pay arrangements have been negotiated with legacy clients, high users or tailored partnership agreements. Payment for postpaid checks is on a monthly basis. 77% Growth Platform access subscriptions allow a customer to pay monthly on a 12-month agreement. e subscription has a capped amount of credits available for use during the subscription term. Growth figures: FY2021 compared to FY2020 09 +50% usage growth Expected Revenue - Recognised on Usage *Actual Xref.com 38% Growth 12.5 Users accessing the native Xref platform via either the Xref Lite or Enterprise version. 10 COVID-19 Impact Integrated Additional Checks 7.5 snoilliM $ 251% Growth Fully automated checks, such as ID, criminal record and Working With Children checks, are available via Xref and consumed by both native and integrated users. 5 2.5 Wholesale Partners 0 FY 2016 FY 2017 FY 2018 Usage Breakdown FY 2019 FY 2020 FY 2021 (Actual & Expected) 15% Growth Vendors of other checking services are able to offer the Xref automated referencing product via a wholesale agreement to their customers. Usage Splits Wholesale Partners 1.8% Australia 74% Additional Checks 7.2% New Zealand 11% Channel Partners 25.4% Europe 6% Xref.com 65.6% North America 9% *Actual: Sales up to April 30th 2021. 2021 ASX : XF1 SHAREHOLDER PRESENTATION Channel Partners 59% Growth Xref currently has 35 channel partner integrations. An integrated user is someone that accesses Xref from within their Applicant Tracking System (ATS). Growth figures: FY2021 compared to FY2020 10 Targeting profitable scale 20 Cash Inflows Reduced Cash Outflows R&D grant 15 COVID-19 subsidy snoilliM $ Cash from sales 10 Since November 2019, Xref’s primary focus has been on preserving cash and reaching cash flow break even. Key initiatives have included: 5 Redirecting marketing efforts from sales support to online lead generation has led to a 66% reduction in marketing cost 0 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY21 (expected) 20 Cash Outflows Corporate 15 Platform costs snoilliM $ Leases 10 Marketing COGS Wages 5 Building efficiencies in the acquisition, onboarding, support and growth of clients has led to a reduction in headcount and in turn a 34% reduction in wages and salaries Adopting a working from home policy has reduced occupancy costs by 44%. As the business increases sales at a significantly higher rate than overall expenditure, operating leverage continues to improve. 0 FY 2016 FY 2017 FY 2018 FY 2019 2021 ASX : XF1 SHAREHOLDER PRESENTATION FY 2020 FY21 (Expected) 11 Global market opportunity Expanding the Xref addressable market Exitees Xref has helped the industry reinvent the way feedback is collected during the recruitment stage. Now, we are working with some of the largest organisations in the world to develop new, innovative products that offer unique employment insights. Organisations are exploring ways to continue to request feedback throughout the employment and exit stages, to be er understand the talent moving through their business. Assessing organisational performance by consistently collecting employee feedback and bringing back to the organisation is essential to understanding changes over time. Extending the Xref platform across the full hire to retire journey increases the addressable market exponentially and allows organisations to enjoy the benefits of Xref across their business. +330m Exitees in Xref key markets Employees +440m Employees in Xref key markets Candidates (Xref today) 90m Candidates in Xref key markets Expanding addressable market *figures based on the annual labour force across AU, NZ, US, CA, UK and EU as measured by the data.oecd.org and assuming a 15% a rition rate. Exitees calculated using the 15% a rition rate across the last 5years. is, therefore, represents an organisations alumni community. 2021 ASX : XF1 SHAREHOLDER PRESENTATION 12 FY22 product roadmap Automated Reference Checks Integrated checks Xref ID (RapidID Rebrand Due FY22) Xref.com Key Business Model - Prepaid Xref Credits. Additional Integrated Checks Employee Pulse Checks Exit Surveys Due for release Q1 FY2022 Due for release Q2 FY22 100% Self Service Platform Extension Business Model: Subscription Tiers (with the ability to add prepaid Xref credits and postpaid additional checks.) Channel Partners Wholesale Partners HRIS Integrations Payroll Integrations Xref currently has 35 channel partner integrations. An integrated user is someone that accesses Xref from within their Applicant Tracking System (ATS). Vendors of other checking services are able to offer the Xref automated referencing product via a wholesale agreement to their customers. Many of the ATS platforms that Xref integrates with, such as Workday and Oracle, have HRIS platforms that manage the employee’s journey through the organisation. Insights collected via Xref could be requested and reviewed via their platform of choice. Xref Exit requests could be added to the traditional termination procedure actioned from within an organisation’s payroll platform, offering benefits to the departing employee and greater insights to the employer. 2021 ASX : XF1 SHAREHOLDER PRESENTATION 13 Capital structure (29 April 2021) Top 5 Shareholders 182.3m Quoted shares $48.31m Market capitalisation at 26.5c 21.2m options Being 12,800,000 options at $0.70 exercise price, 889,394 options at $0.585 exercise price, 448,396 options at $0.66 exercise price, 4,000,000 options at $0.18 exercise price and 3,038,242 options at $0.35 exercise price. ese options expire on dates between 3 July 2021 and 1 May 2024. 31.17m Lee Seymour, Founder CEO as West Riding Investments PTY LTD <SEYMOUR FAMILY A/C> & SEYMOUR SUPERANNUATION HOLDINGS <SEYMOUR SUPERFUND A/C> 30.86m 20.96m 18.16m 6.59m Squirrel Holdings Australia PTY LTD Griffiths Family A/C National Nominees LIMITED Netwealth Investments LTD Wrap Services A/C HSBC Custody Nominees (Australia) LTD Substantial Institutional Holder 14.3m warrants Issued on 31 July 2020, with an exercise price of $0.35 each (subject to adjustment in accordance with the Warrant Deed) and may be exercised any time up to 24 July 2024, being the date that is seven days before the termination date (31 July 2024) of the related $5 million secured debt facility. 2021 ASX : XF1 SHAREHOLDER PRESENTATION 8.8% 14 Board and management BOARD Brad Rosser Nigel Heap Robert Waring Non-Exec Chairman Non-Exec Director Company Secretary James Solomons Sharon Blesson David Haines Karina Guerra CFO CTO GM RapidID Group Marketing Director EXECUTIVE Lee-Martin Seymour CEO Co-Founder, Exec Director A serial entrepreneur with over twenty years of experience building brands, developing technology, developing people and driving sales. Lee is the largest Xref shareholder and is passionate about pioneering positive change within the global employment sector. Linkedin KEY CONTACTS Place of business Auditors Share registry Corporate Advisory Investor Relations Xref Ltd (Head and Registered Office), Suite 13, 13 Hickson Rd Dawes Point, NSW 2000 Crowe Sydney Level 15 1 O’Connell Street Sydney, NSW 2000 Computershare Investor Services Pty Ltd 452 Johnston Street Abbotsford, Victoria 3067 TMT Partners Aurora Place, Level 27/88 Phillip St, Sydney, NSW 2000 e Capital Network Level 14 234 George Street Sydney, Australia, 2000 xref.com crowe.com/au computershare.com/au tmtpartners.com.au thecapitalnetwork.com.au 2021 ASX : XF1 SHAREHOLDER PRESENTATION 15 Further resources Credentials Products G2 ratings Xref Website Google reviews Xref Lite h ps://www.xref.com/ h ps://pages.xref.com/xref-lite-trial.html Capterra Xref Client Case studies Getapp RapidID h ps://www.rapidid.com/ Xref Template Builder h ps://www.xref.com/platform/reference-templates Reports Interim Report 2021 FY21 Q3 Update Investor Center 2021 ASX : XF1 SHAREHOLDER PRESENTATION 16