Pushpay Holdings Limited | Annual Meeting 2014

IMPORTANT NOTICE

This presentation is given on behalf of Pushpay Holdings Limited (Pushpay) – Company number: 3481675 | NZAX:PAY.

Information in this presentation:

• is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Pushpay;

• should be read in conjunction with, and is subject to, Pushpay’s Annual Report, market releases, and information published on Pushpay’s website www.pushpay.com;

• includes forward-looking statements about Pushpay and the environment in which Pushpay operates, which are subject to uncertainties and contingencies outside of Pushpay’s control – Pushpay’s actual results or performance may differ materially from these statements;

• includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and

• may contain information from third parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information.

All information in this presentation is current at the date of this presentation, unless stated otherwise.

All currency amounts are in NZ dollars unless stated otherwise.

CHAIRMAN’S ADDRESSBRUCE GORDON

AGENDA

1 Chairman’s Address

2 CEO Presentation

3 Resolutions

4 Questions

CEO PRESENTATIONCHRIS HEASLIP

CEO PRESENTATIONCHRIS HEASLIP

WHAT WE ARECOVERING TODAY

1 FY2014 Performance

2 Highlights

3 Software as a Service (SaaS)

4 Our Focus: The US Faith Sector

5 FY2015 Outlook

6 Run The Red

FY2014 PERFORMANCE

FY2014 PERFORMANCE

$316,000Operating Revenue for the year ended 31 March 2014

$2.0mMonthly Run Rate for the year ended 31 March 2014

158Total Merchants as at 31 March 2014

$2.7mCash Balance as at 31 March 2014, including capital received in advance

$1.6mTotal comprehensive loss for the year attributable to the shareholders of the company for the year ended 31 March 2014

$4.7mTotal Funds raised to 31 March 2014, including capital received in advance

WHERE WE ARE AT

Phase 1 Phase 2 Phase 3

Develop product features to complete an all-in-one offering

Build the sales and marketing engine

Accelerate growth

Since launching our payments solution in the United States (US) in April 2013, Pushpay has developed an all in one offering and now is transitioning to build the sales and marketing engine.

HIGHLIGHTS

HIGHLIGHTS

$15.6mTotal capital raised

$43m per annumAnnualised value of transactions processed through the platform as at 1 August 2014

<1% ChurnFor the trailing 12 months ended 30 June 2014 (Pushpay)

ARPM of $235Average Revenue Per Merchant (Pushpay) per month as at 30 June 2014, which is expected to grow with ZipZap Processing fees coming on stream

150m+ mobile interactionsVia acquisition of Run The Red’s SMS platform in May 2014

ARPC of $3,700Average Revenue Per Client (Run The Red) per month as at 30 June 2014

80%+ international MerchantsAs at 30 June 2014 (Pushpay)

52 staff33 in NZ, 1 in Australia and 18 in the US as at 31 August 2014

260 MerchantsAs at 30 June 2014 (Pushpay)

$325,000 total monthly revenueFor the month of June 2014

SOFTWARE AS A SERVICE (SAAS)

SOFTWARE AS A SERVICE (SAAS)

SAAS GROWTH REQUIRES INVESTMENT

Early stage SaaS companies experience negative cash flow initially due to customer acquisition costs. Each month starts with recurring revenue already locked in from existing customers, and as long as the company maintains low churn, all sales and marketing activity can be focused on new growth.

For this reason early stage SaaS companies require investment to grow.

-$6,000

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

1 2 3 4 5 6 7 8 9 10 11

14

12

13 15 16

CUSTOMER ACQUISITION COST (CAC)CASH FLOW BUILDS OVER TIME

CUMULATIVE CASH FLOW FOR A CUSTOMERSource: Pushpay (2014, June)

Breakeven

MONTHS

CU

MU

LAT

IVE

CA

SH

FLO

W (

NZ

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Negative Cash Flow

Customer Acquisition Cost (CAC): $6,000

Monthly Recurring Revenue: $500

Note: CAC only includes Sales, Marketing and Implementation Costs

CASH FLOW GROWTHREQUIRES INVESTMENT

COMPANY CASH FLOW BASED ON DIFFERENT GROWTH RATES

Source: Pushpay (2014, June)

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

5 10

25 3530

15 20MONTHS

CA

SH F

LOW

(N

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)

Customer Acquisition Cost (CAC): $6,000

Monthly Recurring Revenue: $500

Note: CAC only includes Sales, Marketing and Implementation Costs

Growth Rate: 10 More Customers Per Month

Growth Rate: 2 More Customers Per Month

Growth Rate: 5 More Customers Per Month

CHURN

Churn is recurring revenue lost from Merchants

•An important metric for SaaS companies is revenue retention or low churn. High churn, ultimately, places a ceiling on growth. Example: If a company has total revenue of $10m, grows revenue at a rate of $1m per annum and has churn of 10% per annum, growth diminishes to zero.

•Pushpay currently has churn of less than 1% for the trailing twelve months ending 30 June 2014, and our aim is to keep churn to less than 5% over the medium to long term.

AVERAGE REVENUE PER MERCHANT (ARPM)

ARPM is $235 as at 30 June 2014, which is expected to grow with ZipZap Processing fees coming on stream.ZipZap Processing also gives us the dual benefit of faster implementation of new Merchants, which increases cash flow.

THE BENEFITS OF SAAS

1. Revenue is recurring2. Customers implemented correctly are unlikely to

leave3. Annual Revenue Per Merchant (ARPM) increases

as engagement increases4. Research and Development (R&D) decreases over

time as a percentage of revenue (mature companies have R&D of <15%)

5. Huge economic value can be created as the business scales

Good investments appropriately made will result in true free cash flow generation over time.

OUR FOCUS: THE US FAITH SECTOR

OUR FOCUS: THE US FAITH SECTOR

WE HAVE A BEACHHEADIN THE US FAITH SECTOR

•The US Faith Sector consists of over 314,000 churches•Many large well known US churches already use Pushpay•This provides excellent case studies and thought leadership to the rest

of the market•The US Faith Sector lacks a market leading mobile payments provider•There are no nimble well funded start-ups addressing this market•As a well funded new entrant we have a global focus with 70%+ of our

clients located in the US. We expect this to continue to increase over time•It takes a long time to build a large application such as payments and

thus far our strategy is working well

FAITH MARKET KEY HIRES

Tim Abare SVP - Partnerships•30+ years experience in Non-Profit

and corporate organisations•US Faith Sector thought leader•Tim was the Chief Operating

Officer for a US-based Non-Profit organisation, with a staff of 240 people across 14 countries, which in 2013 and 2014 delivered record- setting top and bottom line growth

•Tim is responsible for developing and implementing Pushpay’s channel partnership strategies and the development and execution of Pushpay’s overall sales growth plan

John Utley VP - Sales•John is a sales leader and multiple

Chairman’s Club winner with 15+ years of sales and marketing experience in SaaS

•John has helped grow revenue for two privately held companies to IPO on the NASDAQ and the NYSE

•He has successfully managed large sales teams with hundreds of direct reports

WHY THE US FAITH SECTOR?MARKET OPPORTUNITY

Over NZD$150m in Annual Revenues

*US Census Bureau (2012). Statistical Abstract of the United States: 2012

314,000* Churches x

20%Market Share(Aspirational Goal)

=62,800 Churches x $2,400 ARPM

Annualised

TECHNOLOGY STACKRECENT RELEASES

Recent additions to the Pushpay technology stack:

•Amex / Discover – delivered July 2014•NZ Bank Payments – delivered August 2014•US Bank Payments – delivered September 2014•ZipZap Processing – delivered September 2014

With these key platform features now in place, Pushpay has begun to build its sales engine through both direct sales channels and reseller channels in the US Faith Sector.

COMPETITION

Incumbents in the market are:•CRM providers with poor payment offerings•Merchant providers who do not provide software (only merchant facilities)•Text giving solutions (such as Kindrid) only offer mobile payments

without online and kiosk payments•The largest competitor in the faith sector is SecureGive who have a

complete offering and 3,000+ church customersHow we stack up:•Until early September our product was lacking critical features such

as Amex/Discover acceptance and ACH (American bank payments)•Now that we have these features we have a more complete offering

than our largest competitors•Additional feature releases in Q4 will position us further ahead of

competitors

COMPETITION

Apple Pay•Doesn’t affect our business•Apple’s aim is to be a consumer champion and digital identity provider•Their aim is to sell more phones and increase loyalty with existing Apple users•Apple’s role in payments is to collect consumer information (i.e. the credit

card details) and pass it on to the merchant processor•This is a very limited role in the facilitation of transactions. This provides a

great consumer experience for Apple Pay enabled transactions, but misses so many pieces of value that merchants require

•For example merchants still need that information to be integrated into their CRMs/Databases

• In short – Apple is really only operating at the very tip of the iceberg of payments and based on the suggestion above (that their aim is to be the digital identity provider of choice via the phone) they won’t get in the middle of customer/merchant relationships

FY2015 OUTLOOK

FY2015 OUTLOOK

We are on track to achieve both 600 merchants and $8.3m in monthly payment transaction volume by 31 December 2014.

FY2015 OUTLOOK

•Feature releases are on track•With same sized churches we expect ARPM to increase as

we transition Merchants across to ZipZap Processing•We expect conversion ratios to increase because of

new pricing propositions aimed specifically at smaller merchants

•Churn remains <1%•Our strategic channel partnerships will start delivering

leads in October 2014

RUN THE RED

RUN THE RED

DRIVING MOBILE ENGAGEMENT

In May 2014, Pushpay acquired the business assets of Run The Red Limited providing a technology stack that compliments payments and gives Pushpay access to 150m+ enterprise consumer messaging interactions.Run The Red:•Integrates text messaging with core business applications using its SMS

Gateway•Can facilitate personalised communication leading to payments & other

mobile commerce experiences•Clients include, Westpac, Sky TV, Vodafone, Z Energy, The Department

of Internal Affairs and Facebook•Is a profitable business which Pushpay believes adds significant value to

the Pushpay opportunity

CLIENT VALUE PROPOSITIONDRIVING MOBILE ENGAGEMENT

•Engagement is key to increasing new sales, basket spend and sales frequency for Clients.

•Run The Red helps create a seamless platform for enterprises to link payments to their marketing and service messaging to consumers.

NZ & AUSTRALIANENTERPRISE SOLUTIONS

•Noah Hickey has been hired as General Manager - Enterprise Solutions. Noah is a business development professional. Prior to joining Pushpay he was Head of Distribution for Huljich Wealth Management from 2008-2011 and Head of Business Development and Sales for Fisher Funds from 2011-2014. Noah is responsible for developing and implementing Enterprise level relationships in both NZ and Australia

•We are developing relationships with large NZ Non-Profits such as Ronald McDonald House, St Johns and CanTeen to use Pushpay

•A joint Run The Red / Pushpay enterprise offering is in the pipeline for release in late 2015

•Run The Red continues to win large Clients and grow their contribution to the Pushpay opportunity

RESOLUTIONS

RESOLUTIONS

RESOLUTIONS

Resolution 1: That Mr Douglas Kemsley be reelected as a Director of Pushpay.

Resolution 2: That Mr Eliot Crowther be reelected as a Director of Pushpay.

Resolution 3: That the Board be authorised to fix the fees and expenses of Deloitte as auditor in the ensuing year.

QUESTIONS

QUESTIONS

Pushpay Holdings Limited | Annual Meeting 2014