Q1 FY2021 Investor Presentation...7 The way businesses pay and get paid The Largest Electronic...

Investor BriefingNovember 2020

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W H A T W E D O

We make complex business payments simple, smart and secure.

Pay and get paid Engage and innovate Predict and protect Connect and manageStreamline payment processes

across global business for efficiency, security and visibility

A comprehensive suite of solutions created to acquire, strengthen and

grow profitable relationships

User monitoring and behavioral analysis combine to detect

fraud and reduce risk

A full suite of connectivity solutions to lower complexity, improve

visibility and promote innovation and growth

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PAYER PAYMENTRECIPIENT

Business Payment Complexity

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Business Payment Complexity

PAYER’S BANK PAYMENTRECIPIENT’S BANK

CORRESPONDENT BANKS

CARD ISSUER BANK MERCHANT ACQUIRER’S BANK

CARD NETWORK

NATIONAL BANK NATIONAL BANK

PROPRIETARYNETWORK

Paper draft, ACH or wire transfer

Commercial card

SWIFTmessage

Paper draft, ACH or wire transfer

ACH or wire transfer

Paper draft, ACH or wire transfer

PAYER PAYMENTRECIPIENT

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Investment Highlights

$360 million SaaS business masked by $100 million traditional revenue

Market-leading provider of cloud-based business payments market

Massive market opportunity with accelerating adoption and strong market tailwinds

Large, diverse customer base with high retention and significant up-sell traction

Multiple drivers of sustainable, long-term growth with upside to model

Exceptional financial profile with tremendous embedded revenue opportunity and high visibility

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Well Positioned for $25B+ Revenue Opportunity

Banking Platforms$2-3B

Legal Spend Management$0.5B

Treasury & Receivables$1-2B

$15-20B

Total$20-25B+

Business Payments$15-20B

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The way businessespay and get paid

The Largest Electronic Payment Network for Businesses

425,000+Members in network

$200+ Billionin payments processed annually

The Paper Problem

63%of organizations still make more than half of their payments by paper check

67%of businesses say “smarter” systems that drive more efficiencies are necessary for AP’s success1

75%of organizations that were victims of payment fraud experienced check fraud2

B2B Payments Made Simple, Smart & Secure

Paymode-X helps businesses easilyautomate accounts payable

PAYERS accelerate payment automation, improve payment security and monetize AP spend

VENDORS streamline receivables with convenient electronic payments and remittance

1 The State of ePayables 2018 by Ardent Partners2 2017 AFP Payment Fraud & Controls Survey

BANKS provide clients with innovative payment capabilities, grow market share and expand revenue opportunities

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Market-leading commercial banking & payments platform empowers banks to engage intelligently with customers, deliver a unified experience and acquire, deepen and grow profitable relationships.

Digital Banking IQ

Aité Survey of Cash Management Vendors

Best in Class

“The vendor to beat”

User Interface and Experience

Analytics

Helping Banks Grow Organically &Defend vs. Digital Disruption

BANKS GET• Intelligent engagement platform, with integrated insights & analytics

• Market-leading payments and cash management capabilities

• Embedded intelligence, simplicity & usability

BANK’S COMMERCIAL CUSTOMERS GET• Proactive insights and engagement from their banking relationship managers

• Integrated, market-leading payments and cash management solutions

• Tools to help manage their finances

• Easy-to-use and customizable digital interface

• Works with SMB business and accounting software

Leadership Position

8Best Partner

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Legal Spend Management

The leading way insurancecompanies manage their legalspend and relationships

Streamlining and Automating Relationships with Law Firms

LEGAL INVOICE AND SPEND MANAGEMENT

Paid as a percentage of legal bill

Saves up to 8% of billings

Reduces administrative expense by 30 – 50%

PARTNERSELECT

Choose the right lawyer for a right matter at the right rate

Advanced analytics – improve case outcomes

Leadership Position

Top-Tier Client Base

300+ Clients

200+ Insurance Companies

13,500+Law Firms

98%Retention Rate

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O U R B U S I N E S S M O D E L

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$189

$224

$255

$301

$331 $343 $349

$394

$422

$442

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

• Building a scale subscription based SaaS business

• Focus and investments – both product and GTM – are aligned with SaaS subscription imperative

• Deemphasize non-subscription revenue streams

A Growing SaaS Business

Total revenues

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$134 $139 $137

$159 $160 $148

$126 $132 $126

$103

$55

$85

$118

$141

$171 $195 $223

$262

$296

$339

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Non-Subscription revenue

• Revenue mix is increasingly SaaS and subscription based

• Some traditional revenues remain and will continue based on product set and customer profile

• Five-year CAGR of (8%) for traditional revenues to some degree masks overall strong growth in more valuable subscription revenue

A Growing SaaS Business

Subscription revenue

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$134 $139 $137

$159 $160 $148

$126 $132 $126

$103

$55

$85

$118

$141

$171

$195

$223

$262

$296

$339

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Non-Subscription streams

• Current run rate of over $360 million in subscription revenue

• Executing on plan to drive consistent 15-20% subscription growth and achieve $500 million subscription revenue in 2-3 years

• Focused product and GTM investments to expand TAM and drive future growth

A Growing SaaS Business15-20% Growth

Subscription revenuesTargeting 15-20% Growth

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Strong SaaS Financial & Operational Metrics

Subscription ARR Scale $362MRun Rate

High Margin 76%Incremental Margin

Total Addressable Market $20-25BAnd growing

EBITDA Margin 21%

Subscription Growth 15-20%Target

Gross Retention 97%

Revenue Visibility 93% Net Retention 100%+

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FY21 Value Creation

Enterprise value assumes a 2.5x multiple on non-SaaS revenues.

SaaS Revenue Multiples 6.0x 7.0x 8.0x 9.0x 10.0x

Enterprise Value $2.6B $3.0B $3.4B $3.8B $4.2B

Stock price $63 $72 $82 $91 $101

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SaaS Revenue Multiples 6.0x 7.0x 8.0x 9.0x 10.0x

Enterprise Value $3.2B $3.7B $4.2B $4.7B $5.2B

Stock price $74 $85 $97 $108 $120

Value realization at $500 million in SaaS Revenues

Enterprise value assumes a 2.5x multiple on non-SaaS revenues.

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Sustained Value Creation

Revenue Visibility• Visibility into 93% of future revenues

• 97% customer retention

Growth & Momentum• 15% five-year CAGR on subscription revenues

• Multiple near-term opportunities to drive meaningful growth in large $20-25B TAM

Attractive Profitability• Attractive subscription incremental gross margins of 76%

• 21% EBITDA margins

Strong Free Cash Flow• Strong cashflow & balance sheet

• Flexibility for strategic M&A

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Investment Highlights

$360 million SaaS business masked by $100 million traditional revenue

Market-leading provider of cloud-based business payments market

Massive market opportunity with accelerating adoption and strong market tailwinds

Large, diverse customer base with high retention and significant up-sell traction

Multiple drivers of sustainable, long-term growth with upside to model

Exceptional financial profile with tremendous embedded revenue opportunity and high visibility

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T H A N K Y O U