Announcement PDF Xref Limited’s 13 November 2023 Annual General Meeting (AGM) Chairman’s Address – Thomas Stianos The 2022-23 financial year (FY23) saw your Company make significant investments in capability and functionality. During the year we: • acquired Voice Project Pty Ltd, in January 2023. This accelerated our launch of the engagement survey product; • launched our Enterprise Platform, offering reference checks, pulse checks and exit surveys. The Enterprise Platform already has over 1,000 users and is expected to be a key growth driver for Xref; • launched Trust MarketPlace, a single site providing access to a suite of checking services, including identity checks, graduate verifications, police checks and government document verification services (DVS). The Company plans to add more information vendors to Trust MarketPlace, such as the recently-signed “Certn”; • implemented a new billing system allowing clients to use Xref via a SaaS subscription service; and • released Survey Builder on the Enterprise Platform allowing clients to custom build over 500 staff surveys to-date. The business continues to innovate and invest in its products, which increases the size of our addressable market, and lays the foundation for ongoing growth in years to come. During FY23, the Company’s revenue increased 10% to $20.4 million, aided by $1.8 million from the Voice Project acquisition. Xref generated a positive operating cash flow of $0.5 million in FY23. However, $4.5 million of cash was invested in developing new capability including: • $1.5 million to acquire Voice Project; and • $2.5 million on product development. These investments, as well as financing costs, led to our cash balance reducing from $11.67 million at 30 June 2022 to $6.83 million at 30 June 2023. In the first quarter of FY24 the Company continues to experience softer demand, but we are encouraged by the strong adoption of subscription sales, which are ahead of budget and now represent over 80% of all sales. Due to the success of subscription sales in the first quarter of FY24 and the significant opportunity that this represents, the Board has now resolved to continue to invest in developing this attractive market. This may involve investing more cash than is generated by operations in FY24 and Xref may, as a result, need to extend and increase its debt facility. The AGM presentations have been authorised for release by the Board. Xref Limited (ASX:XF1) ACN 122 404 666 Level 2, 68-72 Waterloo Road, Macquarie Park, NSW 2113 Australia Phone: +61 2 8244 3099 Email: contact@xref.com Website: xref.com 2023 Annual General Meeting ASX: XF1 Investor Presentation 2023 Our past success predicts our future We reinvented reference checking and continue to challenge the status-quo across the entire talent journey Xref /ɛksrɛf/ to measure the point at which two paths cross Credibility The companies the world trusts, trust Xref. Users love us. Based on our 2023 customer satisfaction survey Over a decade of being the #1 reference automation platform, globally. 92% 91% 35+ Rated #1 with over 2,000 reviews. Xref is rated #1 globally for Reference Checking across G2, Capterra, GetApp and Google Our delivery timeline Product acquisitions Delivering best in class and first to market innovation to the Employment sector since 2010 Xref target automated technology platforms that provide faster go-to-market opportunities, stepped revenue growth and increased addressable market. Automated referencing Channel Integrations Reference Sentiment Reference platform launched today 1.3m people provide feedback across 195 countries. Today, 33% of revenue originates from clients that collect Xrefs via an integration. So far, 2 million reference reports have been measured by a natural language sentiment algorithm resulting in reduced time reading reports. Free Template Builder Reference Fraud Algorithm Lite - Self Serve Platform Over 40,000 reference templates have been built saving 1000's of operational hours internally as well as providing a constant lead flow. Over 50,000 people have been identified as committing reference fraud therefore saving organisations time and money. Since launching, 6000 new clients have signed up and used a credit card to start their journey with Xref. Acquired RapidID Ex E 2.6m ID checks were completed in 2022, 85% of checks were requested by the employment sector. Since rebranded as a part of Trust Marketplace. Exit Surveys can help reduce attrition and improve retention. Avgerage response rate of 65%, with 20% of departing employees opting-in for rehire. Enterprise platform launched as a subscription based, self service, hire to retire feedback platform. it Surveys RapidID c uired 2019 A q ntroduce ID into the employment sector. DVS License, Platform. Early Revenue. I $2.6m $1.5m 2.6m nterprise Platform oice Project V c uired 2022 A q Trust Marketplace aunched a global marketplace of 3rd party checks including: ID checks, criminal and working rights. L Launched Engage Xref Engage (previously Voice roject) offers surveys across the entire talent lifecycle: Onboarding, Employee Engagement, Leadership 360, Pulse and Exit Surveys. P Acquired Voice Project athers long-form employee engagement feedback. Over 4 million respondents. Integrated and rebranded into Xref's suite of products as Xref Engage G Pulse Surveys Xref Pulse Surveys completes the Enterprise lineup of products and allows unlimited use of customisable short-form engagement surveys. aunch engagement surveys, market credibility, 20 years of sector data, analytics Platform, Profitable, 1000 clients. L $1.7m $4m 277k Group Profitability Group Net Profit NPAT Net Loss Group Revenue $3.36m Group Revenue Xref Revenue Trust Marketplace Revenue Increase Engage Revenue 10% “Operations delivered a cash surplus of $0.5m but after taking into account non-cash items such as share “Despite softening market conditions our revenue grew 10% to $20.4m, aided by a $1.8m contribution from based payments, depreciation and amortisation an NPAT loss of $3.36m was incurred.” Voice Project in the second half.” Growth of SaaS H1 v H2 ARR SaaS Revenue Other Revenue 430% Cashflow Cash Operating Cash Surplus Bank Cash Collections 5m flow of $0.5m, and during the year $4.0m of cash was invested in quire Voice Project and $2.5m on product development).” “Xref generated positive operating cash model. As a result, Annualised Recurring Revenue (ARR) grew 430% to $5.6m at June 2023 since the developing new capability, (including $1.5m to ac Enterprise Platform clients.” Cash at $0. “The focus in FY2023 was transitioning clients to the new Enterprise Platform and the SaaS business launch of that Enterprise Platform which included both legacy clients from Xref Recruiter and newly won Expenses 1.3 million people gave references on 0.6m candidates in 2023 New hires represent a small percentage of the overall employees within any company. Pre-employment references limit growth to around 10% of the total employment sector. 0.6m Our new enterprise platform increases our addressable market with current clients tenfold. Xref's key clients referenced 0.6 million candidates in 2022 suggesting that, based on hiring trends and platform adoption, they represent over 7 million employees and they also have the opportunity to survey a further 3 million ex-employees who have left over the last 5 years. 10m Xref's new platform can perform multiple surveys across the 440m employees that work in Xref's key markets. Xref's current clients represent 2% of the total addressable market in Xref key regions. This equates to 90 million candidates, 440 million employees and 330 million ex-employees. *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% attrition rate. Ex-Employees are calculated using a 15% attrition rate across the last 5 years. 440m Xref : Hire to Retire Survey Platform Recruit Recruit Reduce time to hire and secure top talent fast. Make informed, compliant hiring decisions with Xref’s automated reference checking software and additional checks provided by Xref's Trust Reference checking Marketplace. Engage Retain Boost retention and drive positive change using smart tools for Employee Engagement, Leadership Search Talent pool Trust 360, Onboarding, and Pulse Surveys. Remember Exit surveys Improve retention by collecting and analysing exit feedback to enhance organisational performance over time. Search Improve retention by collecting and analysing exit feedback to enhance organisational performance over time. Remember Pulse survey Retain Growth Strategy Xref's current clients offer a 10x growth opportunity Additional checks from Employee Engagement Reference, Pulse and global partners. with Expert Advice Exit Surveys. Strategy: Offer API only, post paid checks Strategy: Use Xref's Pulse Surveys to via Xref's Enterprise platform, checking Strategy: Migrate Xref's current introduce advanced engagement survey vendors and direct clients seeking Digital customers to the new subscription tools to current and new global clients. Trust services. over time by offering Pulse and Exit Impact Scenario: Surveying 10% of Impact Scenario: Increase vendors and Survey tools. employees that exist in current Xref range of checks offered via channel clients would grow Engage revenue partners including Xref will further grow 400%. the 2.6 million annual checks taken today. an opportunity to survey 6m employees Go-to-market via current clients, digital Go-to-market via vendors, resellers, Xref and ex-employees. marketing, subscription. Enterprise and digital marketing. platform and increase share of wallet Impact Scenario: Current clients who reference 0.6m candidates a year have Reference Pulse Exit Bringing the winning formula to the rest of the talent journey Leveraging our best-in-class automated referencing software to deliver further value across the talent journey with Pulse and Exit Surveys. Request Collect Analyse Create your survey using a template of HRapproved questions or compile your own customised questionnaire. Xref will automatically collect feedback from the recipient and any subsequent feedback givers. Results are analysed and presented in easyto-understand graphs. Compare organisational performance metrics to uncover action-orientated insights. Xref Enterprise Subscription-based Enterprise feedback platform for self-service Reference Checks, Pulse and Exit Surveys. Key features Build and send surveys in bulk Multi-language and multi-region Progress updates and completion reports Advanced analytics Research backed survey templates and question libraries Trust Marketplace As a growing community of global checking vendors, Trust Marketplace is an aggregator for enhanced due diligence in the online trust environment. Key features Vendor agnostic Offered by API only Growing vendor community Available via Xref Enterprise, integrated directly to end users or resold via checking partners Customisable integrations Xref Engage Employee engagement survey and data analytics platform (formerly Voice Project). Key features Maintain full control to create, send and receive your survey Receive expert advice to achieve your organisational goals Tailor your survey to your needs with an easyto-use platform Deep analytics of survey answers through Data Studio Backed by scientific research Our team Xref Employees score their level of engagement at 81% Employee engagement survey conducted May 2023 Driven by a growth mindset 114 84% 19 45% 55% 0% We are people-first. As an innovative, online tech solution, Xref empowers organisations to make great people decisions based on data-driven feedback collected throughout the talent journey. With a passionate team behind everything that we do, Xref's vision is to change the way organisations collect and action feedback from their people. We're growing rapidly with plenty of exciting new developments in play. We remain committed to further building upon a fun, yet hardworking culture that celebrates every new success together. Department headcount Global staff distribution Development Australia Sales & Account Mgt New Zealand Customer Success Europe Operations North America Marketing Pakistan The Xref values Driven by ambition A big heart Positively charged Outlook During FY24 Xref will continue to focus on executing its product innovation strategy, delighting its customers and rewarding and retaining its employees. By further engaging its current clients Xref will increase share of wallet by offering its extended services and continue to attract new clients to increase revenue growth. Xref will measure its progress against these strategic priorities by building on the following opportunities: Xref Enterprise: With a much larger addressable market and aggressive go-to-market strategy, we expect the enterprise platform will have an opportunity to grow revenue over time by migrating current clients to Xref Enterprise and continuing to attract new clients. During FY24 Xref intends to increase the expected growth of Reference requests, and thereby increase its ARR. Lee-Martin Seymour A typical client now has the opportunity to extend their use of Xref past recruitment, which tends only to be 15% of their business, to cover 100% of their employees with Pulse and a further 10% of exiting employees, helping to recruit, retain and remember their talent. Board Thomas Stianos Xref Engage (formerly Voice Project) collected feedback from 174,000 employees across 271 key clients last year. Now integrated to Xref we have the opportunity to introduce Engage across 2,100 accounts which represent at least 6 million employees. Xref intends to grow surveys taken, new clients, and revenue as a result. Nigel Heap Robert Waring Trust Marketplace: As we increase the number of background checking vendors in the Marketplace (such as the newly signed Certn) we will, in turn, integrate those checks via Trust Marketplace into Xref Enterprise. This presents an opportunity to introduce all global customers to a suite of checking services that we have not been able to offer before. 12,000 background checks were consumed via Xref Recruiter last year which demonstrated the demand from clients to have all feedback, including background verifications in one place. The average margin for Trust Marketplace is 42% due to the majority of checks being for Identity and via the government document verification service (DVS). It is expected that as vendors and checks grow the margin will increase. Xref intends to share news about new partners, when the integration to Xref Enterprise is complete, margin growth and the increase in checks taken. There are also cost strategies in place to offset expected expense growth in FY24 such as reducing marketing spend, relying on self- service features, extending the development team overseas and improving internal processes in a more efficient way. Management Despite the tough global economic conditions, we remained resilient, and persevered with our strong focus on product innovation whilst keeping costs at an optimal level. With proven demand for our product, successful completion of the hire-to-retire strategy and the conversion to a SaaS business model, Xref elevates to a new level of competitiveness. We thank you for your support and we look forward to continue delivering on our future growth initiatives and company vision. Lee-Martin Seymour Sharon Blesson James Solomons Peter Langford Top 5 Shareholders Company overview Capital structure 31.73 m Lee Seymour, Founder CEO & Exec Director 186.2 m $39.1 m 29.81 m 27.16 m 13.26 m 10.30 m 17.6 m 11.4 m Substantial Institutional Holder 6.2% Xref and the environment Environment, Social and Governance (ESG) Environment Paperless automation Work From Home policy AWS Microservices Infrastructure COVID-19 Management Social Platform accessibility Fraud detection Multi-language capabilities Employee health and safety Governance Publicly-listed company GDPR compliance ISO27001 Regional data governance Further resources Credentials G2 Ratings Products Xref Website Key Contacts Place of business Corporate Advisory Google reviews Capterra Xref Lite Xref client case studies Getapp Reports xref.com Auditors Trust Marketplace crowe.com/au Engage Investor Snapshot Share registry FY2023 Annual Report Xref Corporate Governance Policy RapidID www.automic.com.au tmtpartners.com.au Investor Information Xf1.com Investorhub.xf1.com Disclaimer This presentation has been prepared by Xref Ltd. The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, Xref has not considered the objectives, financial position or needs of any particular recipient. Xref strongly suggests that investors consult a financial advisor prior to making an investment decision. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Xref, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation. This presentation includes “forward looking statements” within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of the words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” “guidance” and other similar expressions. Indications of, and guidance on, future earning or dividends and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Xref and its officers, employees, agents or associates, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward looking statements and Xref assumes no obligation to update such information. This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of Xref have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.