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For personal use only - ASX · For personal use only information contained herein. ... FY16 was a...

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General Meeting Placement and rights issue ASX: CV1 For personal use only
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General MeetingPlacement and rights issue ASX: CV1

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Disclaimer

This presentation has been prepared by CV Check Ltd (‘CVCheck’). The information in this presentation is of a general nature and does not purport to be complete, nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act. This presentation may contain statements, opinions, projections, forecasts and other material (forward looking statements), based on various assumptions. Those assumptions may or may not prove to be correct. None of CVCheck, its respective officers, employees, agents, advisers or any other person named in this presentation makes any representation as to the accuracy or likelihood of fulfilment of any forward looking statements or any of the assumptions upon which they are based.

The information contained in this presentation does not take into account the investment objectives, financial situation or particular needs of any recipient and is not financial product advice. Before making an investment decision, recipients of this presentation should consider their own needs and situation and, if necessary, seek independent, professional advice.

To the extent permitted by law, CVCheck and its respective officers, employees, agents and advisers give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this presentation. Further, none of CVCheck and its respective officers, employees, agents and advisers accept, to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this presentation. Any recipient of this presentation should independently satisfy themselves as to the accuracy of all information contained herein.

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Company Background

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Providing verified information to support people in building trust and growing

honest relationships

PurposeF

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Who is CVCheck?

cvcheck.com/tag/trustondemand

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- NZ acquisition completed and integrating well

- Opportunity to follow customers into new markets

- API based systems delivering scalable and lower cost solution

- Need for speed and scale in delivery

- At source verification- Any individual who has worked

or studied internationally requires a check local to that region

Foundation for international expansion

Range of checks across Australia and New Zealand

5 key check categories 190 countries

Turnkey solution

CVCheck1000+ checks

- Police checks- Traffic checks- Employment & verification background checks- Credit, financial & business checks- Tenancy checks

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Cashflow positive by mid

FY18

Marketing @ $150k to $250k per

month

Customer acquisition approach

refined

FY16 was a breakout year for CVCheck

+170% FY16 REVENUE GROWTH

+14% Q4 REVENUE GROWTH

+215% FY16 TOTAL CUSTOMERS

+241% FY16 ORDERS

$4.6mCASH AT 30 JUNE 2016

$12.5m – $13.0mFY17 EXPECTED REVENUE

$5.6m capital raising to execute plan to breakeven

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Average +28% QoQ growth over past 9 quartersF

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High and improving conversion rate

New visitors

Signups

Customers

Strong growth in visitor numbers…

…on average, 18.7% of new visitors sign up to CVCheck

Of 2016 sign ups, 60% of individuals and 69% of corporates convert into paying customers

Over 90% of these customer conversions occur within the first 4 weeks

42k 43k63k 71k 75k 64k 61k 66k

86k106k

83k 73k

Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16

16.0% 16.3% 16.4%18.2% 19.2%

16.5%

21.2%23.0%

20.7%

15.7%

19.5% 21.0%

Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16

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Focus of marketing now on targeted customer acquisition

Brexit and the long Australian Federal election campaign has had an impact on conversion

Spend optimisation

Brand building

Normalisedmarketing spend

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Improving customer metrics across corporate and individual

• 60% conversion rate for new accounts (up from 58% in May)

• Cost of acquisition expected to come down as brand awareness increases

• Average cost of customer acquisition falling

• Convenience, speed and sharing of information crucial

Corporates Individuals

• 69% conversion rate for new accounts (up from 62% in May)

• Active clients across 29 sectors• Marketing drives geographic and cross

industry sales• Integrated customer onboarding process• Individual use of the system drives

corporate interest

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High quality revenue growth, driven by corporatesF

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Technology investment drives scalability and lower cost to serve

Oct-14 TodayMay -16

~4,500checks/month

~20,000checks/month

6Support staff

7Support staff

4.3x increase in monthly checks

1.2x in the number of support staff (to process these checks)

$1.8m technology spend since Oct 14 (focus on automation and scalability)

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Automation delivers unmatched speed and quality

CVCheck – 1 hour

• Automation at the core of the system• Light or no touch points• API integration

• Speed Less waiting time• Accuracy Eliminate manual error• Scale Near unlimited capacity• Service Staff engage with customers

Example – Australian National Police Check

Online Competitor - 24 hours+

Police - 240 hours+

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CVCheck’s police checks access police data through CrimTrac

CrimTrac is the sole entry point for criminal record checks across Australia …

… CVCheck tap into the same database used by the Federal and State Police

WA Police

QLD Police

SA Police

Vic Police

Tas Police

NSW Police

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CVCheck’s police checks continuing to grow…F

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… and supported by “other” checks

Includes:• Traffic checks• Employment & qualifications• Credit & financial and business• Tenancy screening

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Market Opportunity

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Market Drivers – a solution built upon a trusted service

The problems

Increasing need for checks• Increasing fraud and misrepresentation • Global mobility• Individuals becoming proactive

Current systems are old• Hard to obtain checks, many windows• Slow, manual process• Hard copy results lead to delays• Expensive• Lack of customer support and visibility• Insecure - open to fraud

The solution

• One-stop shop for all checks• Fast automated process• Instant result access online• Digital results – unlimited use• Cost effective• Local customer support• 100% visibility – live tracking• Simple and secure sharing

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Targeting a growing verification market of $650m+

• CVCheck has primarily focussed on promotion to the Police Check market in Australia• When taking into account the broader verification market, the potential Australian market is

much larger at $350m+• Police checks alone in key markets across the UK and NZ total $300m+• Significant greenfield opportunities exist across broader verification categories and

geographies

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Market Opportunity inAustralia

Police Check MarketOpportunity in UK

Police Check MarketOpportunity in NZ

Total Market Opportunity

$ m

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Australia –all checks

UK & NZ police checks

Broader addressable

market

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Potential Market

$350.7 m

Australian Verification Market

Police Checks

$180.0m

Rental History Checks

$40.0m

Traffic Checks

$5.8m

Credit, Financial and Business Checks

$14.7m

Employment Screening

$110.3m

Excludes Greenfield opportunities

Sources: CrimTrac, Australian Bureau of Statistics, AHRI, Australian Occupation Matrix, DHS (Vic), NSW Department of Family and Community Services, QLD Housing Services, SA Consumer and Business Services, and various news reports

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Police check market in the UK & NZ ~ $300m+

NZ market opportunity $18m• 450k police checks conducted in NZ every

year• At the CVCheck price point this represents

an $18m market opportunity

UK police check market $282m • 4m+ checks per annum• There are two major sources of police checks in

the UK• DBS is the major repository for police

checks;• For international travel, many countries

require a check from ACRO Criminal Records Office

UNITED KINGDOM

Sources: DBS governing body of police checks in UK, ACRO Criminal Records Office, Department of Justice NZ

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Resumé Check Acquisition

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CVCheck entered NZ through acquisition of Resumé Check

• Complementary screening and verification business

• Over 300 corporate clients in NZ

• Purchase price of NZ$2m– Upfront payment – combination of shares and cash– Earn out for FY17 and FY18 – 6.2x historical EBITDA

• Acquisition earnings accretive before integration costs– Positive EBITDA contribution expected in FY18

• Management team secured and key to regional growth plans

• Strong business development activity since completion

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Broad customer base, with deep corporate relationships

• Leading supplier of screening and background checks in NZ

• Targeting NZ corporates, over 300 clients

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Resumé Check – strong revenue growth, with positive EBITDA

Source: Resumé Check management accounts (unaudited)All figures in NZ$, year end 31 March

302k371k

476k

620k

784k

1,131k

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

FY11 FY12 FY13 FY14 FY15 FY16

Resumé Check Revenue (NZ$)

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Significant operational and strategic synergies

Partnering with a market leader in New ZealandNew geography

Operations across additional time zones to further enhance CVCheck’s service to its customersBroaden operational footprint

Significant new revenue streams, with large corporate customers that operate both in NZ and AustraliaLeading customer base

Strong management that have a long standing relationship with CVCheck, and deep cultural fitStrong local management

Drive NZ growth and efficiencies through use of CVCheck technology platformTechnology synergies

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Part of the overall CVCheck growth strategy

• Direct to business and consumer marketing• Enhanced customer and web experience• Growth in outbound sales activities

Organic Growth

• Exploring strategic partnerships to accelerate growth• Acquisition and tech rollout blueprint honed by

experience in NZ• Cross sell across NZ and AU

Strategic Growth

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CVCheck secures exclusive right to provide Child Worker’s Safety Checks in NZ• NZ Vulnerable Children Act 2014 (the Act)

– Under the Act, any individual working with children in an organisation that receives state funding must be adequately safety checked

– Under the Act, such workers require safety checks every 3 years– CVCheck appointed exclusive provider for the NZ Ministries of

Health, Education, and Social Development

• Specific groups required to use CVCheck’s service include:– Health: GP owner operators; Locum doctors and nurses; Dentists;

Lead maternity carers and midwives– Education: Early childhood owner operators– Social Development: sole contractors whose work involves children

(such as holiday program workers)

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Further capital raising to fund CVCheck through breakeven

• $4.0m placement @$0.13– $0.7m settling immediately– $3.3m subject to refresh of placement capacity at the EGM on 10

August

• $1.6m fully underwritten rights issue @$0.13– 1 for 17 non-renounceable entitlement with record date in early

August– Opportunity for existing shareholders to participate

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Leadership

Steve CarolanManaging Director

Rod SherwoodDirector, Acting CEO, CFO

Chris BrownNon Executive Chairman

Reina NichollsNon Executive Director

Colin BoyanDirector, CIO

Craig SharpDirector, General Counsel

CVCheck’s Board

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ContactRod Sherwood(08) [email protected]

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