Ann: May 2020 Business Update Presentation, page-14

Geez, blink and I missed it! Only starting to take a proper look, but after the call these are the 'further DD' questions I have in my mind. Mostly relate to how much of the growth is really temporal due to COVID-19 lockdowns & govt stimulus vs real structural dynamics which can turn into longer term growth:

1) CY made the point that the first move with SZL's merchant take on has been singular. However, over time - like credit card networks - you will probably see a number dual installs down the track. Ok to thrive in a singular network but how does SZL compete when a bigger player like an APT tries to cut its lunch and offer merchants a better price? What will drive 'stickiness' to SZL vs another BNPL platform, or will it just come down to price & product range / versatility as BNPL scales up.

2) Is all the government stimulus in the US providing some kind of false sense of security to people to consume/make purchases while in lockdown.

3) The areas where CY was seeing growth, eg: leisure, outdoor, exercise, how much of this is 'one-off/temporal' (eg: buying that set of weights to do your exercise) vs structural growth

4) No in store presence - query how structural the shift to e-commerce will be as a result to COVID-19. Ultimately that could depend on how long people are contained in a restrained scenario - habits and behaviours become more entrenched the longer humans have to adopt them. Understand they are looking into it - but does in store presence drive brand awareness & perhaps attract an older (more financially conservative) client base

5) No enterprise / big retail exposure - CY's comment that they are all too busy focusing on their operations, is that right? Why wouldn't the big end of town want to be re-positioning for a greater share of e-commerce volumes. Perhaps I misunderstood his response. Query how SZL's pure exposure to mid size/SME plays out.

I'm sure there's already answers to this in prospectus etc, but any thoughts/pointers appreciated!

GS