Zip Co is a digital financial services company, offering innovative and people-centred products. Operating in two core markets – Australia and New Zealand, and the US – Zip offers access to point-of-sale credit and digital payment services, connecting millions of customers with its global network of tens of thousands of merchants.

Zip provides fair, flexible and transparent payment options for its 79,300 merchants and six million active customers as of 30 June 2024. The company’s unsecured consumer lending service offers short- and long-duration instalment products. Revenue is generated from merchants (merchant fees), consumers (predominantly account fees, establishment fees, instalment fees, late fees and interest) and transaction fees (affiliate fees and interchange).

Zip listed on the ASX in 2015 (ZIP). The company is funded by ordinary shares. The receivable assets on its balance sheet are financed predominantly by asset-based financings.

Zip operates a diversified funding strategy ensuring effective management of short- and long-term financing needs. This diversification is achieved via warehouse facilities and capital market transactions provided by domestic and international investors and lenders.

In 2019, Zip established a master trust that includes the rated series and variable funding notes secured by a single pool of receivables. Zip has been a frequent issuer in the Australian ABS market since 2019, with nine public securitisation transactions since establishing the master trust.

Zip is committed to exploring investor demand for ABS transactions in order to further diversify and strengthen its funding sources. The business is continuing to develop and expand its relationships with domestic and international financial institutions and investors.

In a world where customers are experiencing cost-of-living pressures, Zip continues to provide customers with increased value and benefit in managing budget and lifestyle. In 2022, Zip adjusted its strategy to focus on its two core markets with the aim of creating a simpler business with stronger foundations, fast-tracking profitability. Zip has made strong progress executing on its strategic priorities in FY24, delivering four quarters of profitability and achieving normalised cash EBTDA of A$69 million for the year, an improvement of A$117 million on FY23.

Zip’s receivables portfolio continues to demonstrate strong and stable performance, providing a strong platform for continued growth.

During FY24, Zip implemented a number of actions to simplify and strengthen its balance sheet. Highlights include:

• The conversion or extinguishment of all convertible notes.
• Executed a capital-accretive institutional equity placement repaying the remaining A$150 million corporate debt, leaving Zip’s corporate balance sheet debt-free.
• Extended the duration of warehouse financing from 10.2 months to 15 months, providing additional resilience against market uncertainties.

Brian Reid
Group Treasurer and Head of Debt Investor Relations
+61 439 242 677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Brett Nichols
Director, Treasury
+61 412 011 366
This email address is being protected from spambots. You need JavaScript enabled to view it.

www.zip.co/au