Payright : Investor Presentation Warehouse Funding and Capital Raise

Warehouse Facility & Capital Raising

April 2022

© PAYRIGHT LTD 2022

© PAYRIGHT LTD 2022

Disclaimer

and important information

The following notice and disclaimer apply to this investor presentation ("Presentation") and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation.

The information contained in this Presentation is general background information about Payright Limited (ACN 605 753 535) (the "Company") and its activities as at the date of this Presentation. This Presentation has also been prepared in connection with the Company's proposed $9.5 Million capital raising, consisting of $1.5 Million private placement of fully paid ordinary shares at $0.18 ("New Shares") ("Placement") and $8 Million issue of convertible notes to eligible investors ("Notes"). The Notes will be issued in accordance with the requirements of the Australian Securities and Investments Commission ("ASIC") Corporations (Sale Offers: Securities Issued on Conversion of Convertible Notes) Instrument 2016/82.

This Presentation is in summary form and does not purport to be complete. It should be read in conjunction with the Company's other periodic and continuous disclosure announcements. It is not financial product advice and does not take into account the investment objectives, financial situation or particular needs of individual investors. These should be considered, with or without professional advice, before deciding if an investment in the Company is appropriate. The information contained in this Presentation may include information derived from publicly available sources that has not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information in this Presentation or any assumptions on which it is based.

Not an offer

This Presentation is for information purposes only and is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or any other law (and will not be lodged with ASIC) nor does it form part of, and should not be construed as, any present or future invitation, recommendation or offer to purchase or sell securities of the Company or an inducement to enter into investment activity in any jurisdiction. No part of this presentation nor the fact of its distribution should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. If there is any subsequent offering of any securities of the Company, it will be made pursuant to a separate and distinct offering documentation. Any decision to purchase securities in the context of an offering of securities (if any) should be made solely on the basis of information contained in the offering documentation published in relation to such offering. This Presentation is being communicated to selected persons who have professional experience in matters relating to investments for information purposes only and does not constitute a recommendation regarding any securities of the Company. Other persons should not rely or act upon this presentation or any of its contents.

This Presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction in which such an offer would be illegal. The New Shares and the Notes have not been, and will not be, registered under the US Securities Act of 1933 (US Securities Act) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the New Shares and Notes may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws. The distribution of this Presentation in jurisdictions outside Australia may also be restricted by law and any such restrictions should be observed.

Investment risk

An investment in the Company is subject to known and unknown risks, some of which are beyond the control of the Company, including possible delays in repayment and loss of principal and income invested. The Company does not guarantee any particular rate of return or the performance of the Company, nor does it guarantee the repayment of capital from the Company or any particular tax treatment. Persons should have regard to the section "Key Risks" in this Presentation.

All amounts are in Australian dollars unless otherwise indicated.

Forward-looking statements and forecasts

This Presentation may contain forward-looking statements, including the Company's expectations about the performance of its business. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believe", "estimate", "plan", "project", "anticipate", "expect", "intend", "likely", "may", "will", "could" or "should" or, in each case, their negative or other variations or other similar expressions, or by discussions of strategy, plans, objectives, targets, goals, future events or intentions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

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 the Company and which may cause actual results to differ materially from those expressed or implied in such statements. Readers are cautioned not to place undue reliance on any forward-looking statements. Actual results or performance may vary from those expressed in, or implied by, any forward-looking statements. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements. The Company does not undertake to update any forward-looking statements contained in this Presentation, to the maximum extent permitted by law.

Financial information in this Presentation is prepared on a consistent basis to the Company's Annual Financial Report, which is prepared in accordance with Australian Accounting Standards.

Approved by the Board of Directors of Payright Limited

Executive summary

1. Overview	• Payright is an embedded consumer point-of-sale finance provider, utilised by our trusted network of Australian and New Zealand merchants • Revenue deferred and recognised over the lifetime of the loan (like Personal Loan products) providing guaranteed and sustainable future income
2. Strong Growth Profile	• H1 FY22 Gross Receivables $89.9 Million, up 64% on prior corresponding period (pcp) (H1 FY21: $54.7 Million) • H1 FY22 Revenue $7.9 Million, up 36% on pcp (H1 FY21: $5.8 Million), with a further $16.8M of contracted revenue to be recognised in future periods • Six consecutive quarters of record loan origination/GMV growth
3. $125m Warehouse Facility	• Signed new $125M warehouse facility with senior lender Goldman Sachs and mezzanine arranger iPartners • Interest rate of approximately 5%, resulting in ~5.5% reduction versus current borrowing facilities
4. Path to Profitability	• It is anticipated the new warehouse facility will be expanded to provide all of the debt funding to reach our AU target break-even receivables balance of ~$200M+
5. Capital Raising	• Capital Raising of $9.5M consisting of: $1.5M strategic equity placement to Cornerstone of fully paid ordinary securities at $0.18 per share; and $8.0M issue of convertible notes. • Placement shares to be issued at a 20% premium to the last close price • Proceeds used to facilitate the transition to our warehouse facility, inclusive of one-off related costs, in addition to growth and working capital

*The aggregate $125 million in warehouse funding is made up of $100 million committed from Goldman Sachs as the senior lender, $18.75 million committed from iPartners as the mezz arranger, with Payright retaining the remaining 5% as an equity note. See 'Use of Proceeds', page 22.

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+Subject to the agreement of the lenders

The Payright difference

Loans originated through a trusted and rapidly growing merchant network

Supporting sectors underserviced by BNPL: Home Improvement,

Education, Photography, after-market Automotive, Health & Beauty and Retail

Embedded into the merchant's sale process, offering real time credit assessment and decisioning at the time of transaction

Revenue deferred and recognised over the lifetime of the loan (like

Personal Loan products) providing sustainable future income

A stable customer demographic, typically older than the broader sector demographic with more secure employment and residential status than reported by BNPL providers

*Information from publicly available sources as at Feb 2022.

Traditional Pay-In-4 BNPL

Traditional Consumer Lender

^The AFIA BNPL Code of Practice requires credit checks (or equivalent) for loans over $2,000.

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Payright has a proven business model

We offer flexible lending finance solutions to merchants and customers

Payright specialises in funding considered purchases at point of sale

Diversified merchant mix

Flexible payment terms tailored to suit the customer's needs

Business overview

A point of sale finance provider, utilised by our trusted network of Australian and New Zealand merchants so customers can spread the cost of their purchases over time

Overview

Payright is an established player in the rapidly growing consumer lending industry with operations across Australia and New Zealand

Providing interest-free finance solutions to encourage point of sale conversion

Transaction sizes typically from $1,000 up to $20,000 with an ATV of ~$3,500

Payright's trusted merchant network distributes our interest free payment plans in sectors traditionally under-serviced by BNPL and personal loan providers

Customers have the ability to select a repayment frequency to suit their circumstances, with terms ranging from 2 months to 60 months for larger purchases

Our Vision

Be the one-stop shop for everyone's payments and lending needs by making payments frictionless, flexible, and affordable.