Market Update

Serko Limited, Saatchi Building, Unit 14D 125 The Strand, Parnell, Auckland, New Zealand
PO Box 47-638, Ponsonby, T: +64 9 309 4754, F: +64 9 377 0545, investor.relations@serko.com
Incorporated in New Zealand ARBN 611 613 980


Market Release
3 April 2020
Market Update
Serko confirms strong cash balance position and signals tight cost management

Serko Limited (NZX/ASX:SKO) announced today:
• Business travel disruption arising as a result of Covid-19 has significantly impacted travel
transactional revenue however Serko is in a strong cash balance position following its
capital raising in October 2019:
o Serko’s cash balance remains strong at $42 million (as at 31 March 2020).
o Serko has no exposure to refunds or credits for cancelled or postponed travel.
o Cost reduction initiatives are in place targeting an average cash burn rate of no
more than $2 million per month through to the end of FY21.
o Modeling for FY21 has been prepared with the conservative assumption that
travel restrictions remain in place.

• Serko has implemented an immediate cost reduction program that removed non-
essential expenditure and scaled down operating expenses, such as cost of sales and
hosting, in proportion to reduced customer activity and lower transaction volumes. Serko
continues to review all costs and will make additional cuts and reductions where
possible.

• Serko will retain its core development teams but has achieved cost savings through a
reduction of external contractors and rationalisation of non-essential staff. Government
subsidy programs in New Zealand, Australia and the United States are being pursued to
support employee salary costs.

• Serko is utilising the travel shutdown period to further strengthen its core technology
and expects to be well positioned for global growth when business travel resumes.

• Through this period Serko is retaining a strong focus on the safety and wellbeing of
its people. Serko’s team has adapted well to remote working with minimal disruption to
working practices.

• Serko presently does not have any debt facilities and does not consider it is necessary to
obtain any debt funding.

Serko Limited, Saatchi Building, Unit 14D 125 The Strand, Parnell, Auckland, New Zealand
PO Box 47-638, Ponsonby, T: +64 9 309 4754, F: +64 9 377 0545, investor.relations@serko.com
Incorporated in New Zealand ARBN 611 613 980



§ Full Year Results for the period ended 31 March 2020 will take longer than normal to
finalise given the unprecedented economic situation. A revised date for the Full Year
Results Announcement will be provided in the coming weeks.

For and on behalf of Serko Limited by the Board

Ends

Investor Relations Enquiries:
Susan Putt
Chief Financial Officer
Phone: +64 21 388 009
Email: investor.relations@serko.com


About Serko
Serko is a leading travel and expense technology solution, used by over 6,000 corporate entities and Travel
Management Companies who combined book more than A$6bn of travel a year through Serko’s platforms.
Zeno is Serko’s next generation travel management application, using intelligent technology, predictive
workflows and a global travel marketplace to transform business travel across the entire journey.
Listed on the New Zealand Stock Exchange and the Australian Stock Exchange (NZX:SKO). Serko employs more
than 250 people worldwide, with its HQ in New Zealand, and offices across Australia, China, and the U.S.
Visit https://www.serko.com/ for more information