PaySauce FY2022 Full Year Result and Annual Report

PaySauce releases FY2022 Annual
Report
Lower Hutt, New Zealand - 30 May 2022
Employment solutions fintech PaySauce (NXZ:PYS) is proud to release its FY2022
Annual Report.
PaySauce CEO Asantha Wijeyeratne said the FY2022 report is a landmark moment,
presenting PaySauce’s breakthrough news of their cash flow positive position for the
final quarter of the year.
“It’s a great achievement, but no surprise to me. We do what we say we’re going to do.
We told the market in 2020 that we’d be cash flow positive and that promise became
our north star. We said we’d build out the team, establish a customer base in a new
market and mature the platform. Likewise we have delivered on that.”
HIGHLIGHTS
● Cashflow positive for the quarter ended 31 March 2022.
● ARR of $4.5M as at 31 March 2022 (83% YoY increase).
● Acquired and fully integrated the SmoothPay business.
● Over 6,000 customers as at 31 March 2022 (79% YoY increase).
● $2M of earned wages accessed through the BNZ PayNow feature in FY2022.
● Total customer LTV of $30M as at 31 March 2022 (96% YoY increase).
● LTV : CAC ratio of 14 : 1 as at 31 March 2022 (67% YoY increase).
Wijeyeratne reflects on the year:
“Making our first acquisition this year was a testament to our commitment to growth
and our certainty that, as a scale-up organisation with skilled leaders, we would fully
leverage the opportunity. Adding and retaining 1,300 customers across Asia-Pacific is
evidence of our successful execution.
As a team, we’ve grown our capability and we’ve invested in systems to support each
division and enable efficient growth. In-market, we’ve established ourselves as a
leading-edge fintech with continued development of innovative features and
diversified our customer base into additional sectors.”

FINANCIAL HIGHLIGHTS
Financial Performance Mar 2022 Mar 2021 Change Change %
Recurring revenue - processing fees (000s) $3,196 $1,928 $1,268 ￪ 66% ￪
Recurring revenue - total (000s) $3,399 $2,096 $1,303 ￪ 62% ￪
Net loss for the period (000s) ($1,282) ($1,688) ($406) ￬ (24%) ￬
Total recurring revenue growth accelerated this year with three key drivers:
● increased organic customer growth;
● increased average processing fees per customer; and
● customers acquired as part of the SmoothPay acquisition.
Interest income increased marginally year on year as the interest rate environment
remained low until the second half of the year when interest rates returned to
pre-COVID levels. When applied to the increased balance of funds held on behalf of
customers, each 1% increase in interest rates delivers $248K in additional interest
income.
Recurring Revenue Metrics Mar 2022 Mar 2021 Change Change %
ARPU at end of period (monthly) $61 $60 $1 ￪ 2% ￪
ARR (000s) $4,466 $2,436 $2,030 ￪ 83% ￪
Revenue per FTE (000s) $110 $69 $41 ￪ 60% ￪
Customer numbers 6,052 3,377 2,675 ￪ 79% ￪
Pricing changes implemented during the year ensured that the overall ARPU remained
consistent, despite the acquisition of 1,300 new SmoothPay customers on substantially
lower ARPU.
Despite the acquisition and pricing changes throughout the year, customer churn
decreased from 0.88% to 0.84% (monthly average) year on year.

Gross margin also improved from 68% to 69% for the year as we’ve continued to build
for scale with new internal systems. Headcount did not change year on year, with 32
FTEs, resulting in an increase in our Revenue per FTE of 60% YoY to $110K per FTE.
OUTLOOK
Wijeyeratne on the year to come:
“On the path to achieving our vision of being the first choice people platform for SMEs
in Oceania, the steps we’re taking this coming year are precise and careful.
We're reinvesting profits back into the business to deliver on our strategic objectives -
investing in infrastructure, systems, process and product best practice to realise even
more efficiencies in the way we do things. We will carry on obsessing over customers,
and extend that obsession to their employees too. Deeper and well designed
relationships with our channels will ensure win-win-win partnerships, and we’ll
continue to build connections with the wider product ecosystem. Honouring diversity
in our crew will remain a priority as we build the team in all departments.”
APPENDICES
● Appendix 1 - NZX Template for Results Announcement to the Market
● Appendix 2 - Annual Report
● Appendix 3 - Investor Presentation

NON-GAAP FINANCIAL INFORMATION
Non-GAAP (Generally Accepted Accounting Principles) financial information does not
have a standardised meaning prescribed by GAAP and therefore may not be
comparable to similar financial information presented by other entities. Non-GAAP
information has not been audited, and is not prepared in accordance with NZ IFRS.
The measures reported by PaySauce are used by management to monitor the
performance of the company and are useful to investors to assess performance.
Non-GAAP measures are defined and explained in the Annual Report.
ENDS
PaySauce is a SaaS fintech platform providing solutions for people at work in 14
jurisdictions across the Asia-Pacific region. We give employers the technology to
digitally onboard, pay and manage employees from any device. Our platform includes
rosters, mobile timesheets, payroll calculations, banking integration, automated
payments, PAYE filing, labour costing, automated general ledger entries and digital
employment contracts.
www.paysauce.com
CONTACT
Please direct any investment queries to investor@paysauce.com .

---

Results announcement
(for Equity Security issuer/Equity and
Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer PaySauce Limited
Reporting Period 12 months to 31 March 2022
Previous Reporting Period 12 months to 31 March 2021
Currency New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
$3,517 Revenue up 60%
Total Revenue $3,517 Revenue up 60%
Net profit/(loss) from
continuing operations
($1,282) Loss down 24%
Total net profit/(loss) ($1,282) Loss down 24%
Interim/Final Dividend
Amount per Quoted Equity
Security
It is not proposed to pay Dividends
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.00059672 $0.01115211
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
PaySauce Limited has no operational activity, and as a result
this announcement is based on the consolidated operations of
its wholly owned subsidiaries PaySauce Operations Limited and
Right Remunerations Limited (together, ‘the Group’ or
‘PaySauce’). Please refer to the comments above, and the
Interim Report and Financial Statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Jaime Monaghan
Contact person for this
announcement
Jaime Monaghan
Contact phone number 0225246366
Contact email address investor@paysauce.com
Date of release through MAP

30 May 2022

Audited financial statements accompany this announcement.

---

Annual Report
YEAR END 31 MARCH 2022
2022
2022
2022
2022
2022

Contents
4
Highlights
6
Chair’s Letter
7
CEO’s Letter
8
Leadership
10
Mission & Values
12
Year in Review
14
Our Partners
16
SaaS Reporting
20
Financials
21Directors’ Report
22Independent Auditor’s Report
26Consolidated Financial Statements
31Notes to the Consolidated Financial Statements
56
Corporate Governance
66
Disclosures
78
Company Directory

$1.97M
PayNow - Earned Wages Accessed
money-bill-wave
arrow-up
83% YOY
Annualised Recurring Revenue (ARR)
$4.5M
arrow-up
79% YOY
Customers
6,052
arrow-up
96% YOY
Total Customer LTV
$30.3M
arrow-up
67% YOY
LTV : CAC Ratio
14.2 : 1
globe-asia
SmoothPay
Acquisition
HIGHLIGHTS

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Annual Report FY2022
Chair’s Letter
Dear fellow shareholders,
My first letter to you as Chair and it’s an honour that I get
to share the breakthrough news of our cash flow positive
position at year end. A position we achieved without
compromising our continued growth.
A huge thanks to Nick Lewis, PaySauce’s previous chair,
and to MOD for stepping up as interim chair this year.
It’s clear that their stewardship has been instrumental in
the company’s performance. Knowing their involvement,
my expectations of the business when I joined, were
high. I anticipated an organisation that recognised the
importance of purpose and passion for customers and
in creating a culture where people thrive, and results are
sustainable. I was right.
A highlight this year was the successful completion of
the acquisition of SmoothPay, adding 1300 customers
to our portfolio and opening up opportunities for
expansion across the Pacific territories and into Australia.
Accelerated quarter-on-quarter revenue growth gives us
options to re-invest back into the company. It also puts
us in a position of strength to seek further inorganic
opportunities to accelerate that growth. And while
we have achieved the milestone of moving earnings
positive, I would note that we may go back to the
market for capital if we believe the opportunity could
significantly lift our growth rate.
As Chair, I look forward to supporting Asantha and
the team as we continue our journey toward industry
leadership. The determination and hard work of the last
year, despite a background of COVID in the community
and other economic uncertainties, saw us tackle many
of the foundational challenges facing a company
moving from startup to scale up. To end the year cash-
flow positive is testament to a well designed product,
supported by excellent service, finding its fit in an
expanding market.
On behalf of the entire board of directors I would like to
thank you for your trust during the year and look forward
to your continued support as shareholders. I also note
the big contribution by the PayForce and thank them
for their efforts in our biggest year ever.
Yours sincerely,
Shelley Ruha
Chair
CEO’s Letter
Dear shareholders,
I’m writing this while I’m briefly in Sri Lanka,
reconnecting with family. I can be here because of the
talented and driven team that I have around me, a team
that together produced an outstanding year end result -
positive cash flow and 83% YoY ARR growth.
Neither of those things - the exemplary team nor the
results - are a surprise to me. They’re the essence of
PaySauce. We do what we say we’re going to do. We
told the market in 2020 that we’d be cash flow positive
and that promise became our north star. We said we’d
expand the team, establish a customer base in a new
market and mature the platform. Likewise we have
delivered on that.
The team grew to 35 this year, including engineering
and customer service talent joining as a result of
the SmoothPay acquisition. We’ve invested in new
leadership in sales and marketing, and product
development and added to our customer support team
to ensure our famous service is maintained.
8.6% of our customer base is now international, using
the goPayroll product we acquired. So our customer
support team are now helping customers across
Australia and the Pacific.
The PayNow feature is now established in the market,
with almost $2m of earned wages being accessed by
employees ahead of payday, for free.
Looking forward it’s clear that here in Aotearoa we
are experiencing extraordinary times when it comes
to economic fundamentals and their impact on the
ecosystem for pay platforms. Economic inflation is
now sitting at around 3x historical wage inflation and
employers are having to move fast or risk losing their
workers. Along with a cooling off of house prices, a new
trajectory for cash rates and the lowest unemployment
rates in over a decade; I’ve never seen a time when
payroll was more critical to the successful functioning of
SME businesses.
These historic times play to our advantage. Going
forward, companies need payroll systems that are agile
and innovative, and give them flexibility. These three
qualities have been woven into our platform from day
one. This means should the labour market dictate new
cadences around salary reviews, fast-tracked wage-
banding or special payments, PaySauce is ready and
able to operationalise them. Watch this space.
I’d like to give a huge thank you to Nick Lewis and Mike
O’Donnell (respectively outgoing and interim chairs this
past year) for the part they played in achieving our goals.
Their advice and guidance was especially appreciated
during our acquisition of SmoothPay.
It’s an honour to have welcomed Shelley as our new
chair in February. Already her fresh insights and
commercial nous are adding huge value in meetings
and the conversations we have around the edges.
It’s now true that we’ve passed start-up, we’re well into
scale-up, but I can promise we’re not taking our foot off
the gas. There are still new customer problems to solve
in new verticals, new partnerships to develop and new
growth goals to achieve. Plus new economic drivers
delivering exciting opportunities. Thanks for your
support as we seize these opportunities and seek to
convert them to shareholder value.
Gratefully yours,
Asantha Wijeyeratne
CEO and Co-Founder

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Annual Report FY2022
Leadership
Gavin Thompson
DIRECTOR
(NON-INDEPENDENT)
Gavin is a founder and director of Catalyst IT, New
Zealand’s largest open-source IT service provider. His
background is in software development and delivery,
and he has over 30 years’ experience in software
systems in the manufacturing, engineering, financial,
and government sectors. Gavin is also a director on the
board of Catalyst Cloud, a company which grew from an
infrastructure platform for the Catalyst business into a
provider of cloud services for Aotearoa.
Gavin is passionate about open source and open
standards software and systems which allow a
collaborative and effective approach to delivering
secure, resilient and innovative solutions.
Shelley Ruha
INDEPENDENT DIRECTOR
AND CHAIR
Shelley joined the PaySauce board in February 2022,
and brings extensive governance experience within
fintech, large scale technology infrastructure, payments
innovation, banking, wealth management, and venture
capital including directorships with JB Were, The
Icehouse and BNZ Agricapital.
Current governance roles include Chair of Tax Gift
and NZ Rural Land Management, and directorships at
Heartland Bank, Hobson Wealth and Partners Life.
She has also had an extensive executive career
leading large, complex businesses in New Zealand,
with revenues over $1bn and 1200 employees; and in
disciplines including Technology, Operations, Product,
Property and Procurement.
Jacqueline Cheyne
INDEPENDENT NON-EXECUTIVE
DIRECTOR, AUDIT & RISK
COMMITTEE CHAIR
Jackie is a professional director with a focus on finance,
risk and sustainability. She is currently on the boards
of Stride Property Group and NZ Green Investment
Finance and is Chair of Snow Sports NZ. Jackie is on
the board of the XRB and chairs the steering group
leading the project for the development of climate risk
disclosure standards in New Zealand. Jackie is also a
member of the FMA’s audit oversight committee and
MBIE’s Risk and Assurance committee.
Jackie was previously an assurance partner at Deloitte
for over 12 years and led Deloitte NZ’s sustainability
service line. Jackie is a Chartered Member of the
Institute of Directors and a Fellow of the Institute of
Chartered Accountants.
Michael “MOD”
O’Donnell
INDEPENDENT NON-EXECUTIVE
DIRECTOR
Mike “MOD” O’Donnell is a professional director, writer
and advisor with a background in fintech, ecommerce
and news media.
MOD is chair of New Zealand’s largest craft brewery
Garage Project, deputy chair of New Zealand Trade
and Enterprise and deputy chair of global online music
company Serato. He’s also a director of KiwiWealth,
Radio New Zealand, www.realestate.co.nz and The New
Zealand Hi-Tech Trust.
MOD is an independent weekly business columnist for
Stuff Media and the host of TVNZ series “Start Me Up”.
He was previously Chief Operating Officer of Trade Me,
Chief Operating Officer of vWork and Head of Wholesale
Investment at Gareth Morgan Investments.
Asantha Wijeyeratne
EXECUTIVE DIRECTOR,
CEO AND CO-FOUNDER
Asantha has over 20 years’ experience of unparalleled
focus on helping small businesses navigate the difficult
landscape of effective payroll. His formal background in
accounting combined with his ‘people first’ attitude has
seen him successfully build a number of businesses into
market leadership positions.
Most notably, Asantha was the driving force behind the
creation and growth of SmartPayroll and SmartBooks
which he grew to service close to 10,000 SMEs in NZ
before he left in December 2013.
Asantha’s obsession is the small business sector with
a tech and customer service focus. He loves seeing
someone with determination and passion turn an idea
into a business that supports them, their families and
the wider community. He gets a lot of enjoyment from
making tech work to help business owners succeed.
In recognition of his contribution to business and the
community, he was awarded a Queens Service Medal
(QSM) in the New Year’s honours list in 2013 and is a
finalist in Ernst & Young’s 2021 Entrepreneur of the Year
(winner yet to be announced at time of writing!)
Jaime Monaghan
CFO
Jaime has a powerhouse background in leadership and
finance, with a former role as Head of Insurance at Trade
Me and eight years in Kiwibank’s Finance team. She
brings incisive commercial acumen to our financial and
strategic planning.
Mathew Stokes
COO
As a lifelong learner and student of successful
organisations, Mat believes in the maxim that ‘culture
eats strategy for breakfast’. As a leader, Mat’s biggest
priority is building and nurturing culture. His track
record ranges from managing integrations with major
international corporates to building innovative startups.
Troy Tarrant
CTO AND CO-FOUNDER
Troy has over 20 years experience in IT development,
product design and architecture - ten of those years
focused solely on HR and payroll applications. He’s
worked on projects across the board, from small
business to government. He’s built PaySauce to enable
rapid development, security and scale.

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Annual Report FY2022
Our Mission
The straight-up provider of effortless
solutions for people at work.
Do good and be honest
We act ethically and never
knowingly cause harm. We lend a
hand and we care for our customers
and our community. We’re honest,
fair and we prioritise people. We
strive for transparency - we’re up-
front about what we do. We’ve
earned our customers’ trust and
confidence because we really know
our stuff, but at the same time we
hold ourselves accountable, own our
mistakes and then learn from them.
Respect and include
We make technology but our
biggest focus is on people. We
value everyone’s ideas and input
and we treat everyone right. We
think difference and variety are
pretty cool, and we won’t stand
for bullying, discrimination or
narrow-mindedness. We listen to
our partners, customers, team and
stakeholders and we make sure our
decisions drive the outcomes that
they need.
Fun and fresh
We’re a wee bit quirky and we go
our own way. We keep each other
humble and we call it like we see
it. We’re always professional, but
we’re down-to-earth and we’re good
company. We’re serious about what
we do - but we don’t take ourselves
too seriously.
Simple and smart
We work really hard to make tricky
stuff easy, and we proactively solve
real problems for our customers.
We’re always improving and
innovating, and we’re never
“finished” - we can always do more
and get better. We’re curious, driven
and dedicated, looking for the
simplest answers to the trickiest
questions. We love to be pioneering
and bold, but we never over-
complicate anything or fix what’s
not broken.
Resourceful and
results-oriented
We’re ambitious but grounded,
and our decisions are shrewd and
data-driven. We’re motivated by
success and we’re always working
to create the returns to fuel a
healthy, sustainable business. We
strategically prioritise tasks and
tactics in order to regularly deliver
outcomes, because we know
that what gets produced is more
important than what gets planned.
We’re adaptive, agile and unafraid to
take a calculated risk, while always
arming ourselves with the best
information available.
heartuniversal-accessseedlinglightbulbchess-knight
Our Values

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Annual Report FY2022
Year In Review
Company
Recurring revenue accelerated in every quarter this year
- thanks to a consistent increase in PaySauce customer
numbers and increased average processing fees.

The SmoothPay acquisition brought us another 1300
customers and access to Australia and the Pacific, as
well as expertise in international payroll development.
Following the acquisition we aligned pricing across
the two product lines and executed this change with
minimum disruption.

Internally we transitioned from a legacy CRM
and helpdesk systems to an enterprise customer
management and phone management solution. The
platform gives us transparency across all customers,
efficiencies in communication and the ability to
automate many manual processes. All part of scaling up.
Community
We watched with delight the expansion of PayNow, the
feature within the PaySauce mobile app that allows
employees to access funds they’ve already earned,
effectively letting them choose their own payday on
demand. This year, our customers’ staff accessed $1.97
million of wages, who otherwise may have resorted to
predatory payday lenders. To the best of our knowledge
we remain the only service worldwide that provides
earned wage access as a native component of a payroll
solution.
In line with our value #DoGoodAndBeHonest we
donated, alongside a collaboration of NZ tech
companies, to UNICEF Aotearoa to support their COVAX
programme. The initiative ensured frontline and health
workers in the low- and middle-income countries where
UNICEF works had access to the COVID vaccine.
This year 3900 donations were made to 48 charities
through our payroll giving feature. That’s over $87,000
of donations that qualified for the automatic tax rebate,
another effortless way we help employees and their
favourite charities win.
Over 100 of our favourite charities and not for profit
organisations received free payroll services this year, a
generous helping of PaySauce for those who need it.
Customers
We’re still doubling down in dairy and the majority of
new customers are coming from the dairy and wider
rural sectors, so it’s fair to say that we’re hitting the
mark with our customers ‘out in the field’. We remain
committed to that sector but it’s pleasing to see efforts
to diversify have had an effect: after rural our fastest
growing sectors are now construction and retail.
40% of our current customers came to us via an
accounting partner. We’re continuing to invest in
those channels, with an increased focus on engaged
partnerships that deliver commercial returns via our
newly launched partner programme.
We ran two customer satisfaction surveys (NPS) in 2022
- receiving an excellent score of 60 and a very positive
41, respectively. With the benchmark for Business to
Business Software at 40 we’re in good shape. Churn
held fast at 0.84%, well below the industry average,
which reinforces the satisfaction scores.
Crew
There’s been a few comings and goings this year
as we restructured our teams to allow for scale-up
specialisation and added leaders accordingly. We
embedded our annual performance review cycle,
empowering team leaders with the tools to motivate
and reward their people. One reward we’re super stoked
about is the Employee Share Scheme, which will see our
employees become shareholders over time.
Year In Preview
On the path to achieving our vision of being the first choice people
platform for SMEs in Oceania, the steps we’re taking this coming
year are precise and careful.
We’re reinvesting profits back into the business to deliver on our
strategic objectives - investing in infrastructure, systems, process
and product best practice to realise even more efficiencies in the
way we do things. We will carry on obsessing over customers, and
extend that obsession to their employees too. Deeper and well
designed relationships with our channels will ensure win-win-win
partnerships, and we’ll continue to build connections with the wider
product ecosystem. Honouring diversity in our crew will remain a
priority as we build the team in all departments.
The PayForce got out and about in between lockdowns
at several events including the iconic Fieldays, where
we caught up with customers and gave attendees the
scoop on Xero for Farming, our alliance with Xero and
Figured. It was an extra special year for us - when we
attended back in 2018 we were a teeny new player that
no one had heard of. This year we had a whole crew on
site, and got to shine in the main pavilion with our big
brand peers alongside.

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Annual Report FY2022
Our Partners
We’re going fast, but we’re not going alone. Our partners
- alliance, channel and integration - are all vital to our
success. We’re grateful for their support and inspiration
as honorary members of the PayForce.
Big shout outs in particular to:
Federated Farmers and Dairy Women’s Network and
Taranaki Rugby Football club for keeping us connected
to our rural communities.
BNZ for the passion they bring to our mutual PayNow
project.
Xero, Figured, Reckon, Farm Focus, Akahu and Tatou for
innovative integrations that delight our customers.
This year we recommitted to our partners with a freshly
designed programme of support, co-promotions and
accreditation alongside Chartered Accountants Australia
& New Zealand.
Jules Benton (CEO, DWN), Asantha Wijeyeratne (CEO, PaySauce) & Trish Rankin
(Chair, DWN) enjoying the sun.
BNZ and PaySauce take aim at Payday lenders with PayNow
Taranaki win 2021 NPC Championship

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SaaS Reporting
The business results reported below provide an overview
of the performance of the business in a format that we
believe is useful for readers to assess the performance of
PaySauce as a SaaS business.
Non-Generally Accepted Accounting Principles (Non-
GAAP) measures have been included and should not
be viewed in isolation, nor considered as substitutes for
measures reported in accordance with New Zealand
Equivalents to International Financial Reporting
Standards (NZ IFRS).
20222021
$000s$000s
Processing Fees3,1961,928
Interest Income203168
Recurring Revenue3,3992,096
Cost to Serve(1,057)(681)
Gross Margin2,3421,415
Gross Margin %69%68%
Other Interest Income739
Other Revenue11164
Total Other Revenue118103
Customer Acquisition(624)(639)
Research & Development(556)(337)
General & Administration(2,135)(1,936)
Interest Expense(25)(33)
Earnings Before Tax, Depreciation and Amortisation(880)(1,427)
Earnings Before Tax, Depreciation and Amortisation Margin %(26%)(68%)
Depreciation & Amortisation(419)(261)
Income Tax17-
Net Loss for the period(1,282)(1,688)
20222021YOY Change
Recurring revenue for the period - Total ($000s)3,3992,09662%
ARR at end of period ($000s)4,4662,43683%
FTEs32320%
Revenue per FTE ($000s)1106960%
20222021YOY Change
Customers at end of period6,0523,37779%
Churn % (monthly average) for the period0.84%0.88%(4%)
ARPU (monthly) at end of period ($)61602%
CAC (per addition) for the period ($)(352)(539)(35%)
LTV per customer at end of period ($)5,0224,5999%
Total customer LTV at end of period ($000s)30,39315,53196%
LTV:CAC Ratio at end of period14.28.567%
Revenue Metrics
Customer Metrics
Mar ‘18Mar ‘19Mar ‘20Mar ‘21Mar ‘22Sep ‘20Sep ‘21Sep ‘17Sep ‘18Sep ‘19
Annualised Recurring Revenue (ARR)
$4,466K
March 2022
$2,436K
March 2021
83%
ARR GROWTH
SmoothPay
Interest
PaySauce

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The above categories are
explained below:
Processing Fees
This category represents the revenue generated from
customers who pay a monthly or annual subscription
to use our software as a service. There are no significant
estimates and revenue is recognised when the software
service is supplied.
Interest Income
This category represents the interest earned from funds
held on behalf of our payroll customers which are held
on deposit. As customers pay their PAYE through to us
each pay run, we hold these funds and generate interest
on the balance before the payment is due to Inland
Revenue. As interest earned on these funds grows
directly in relation to our customers, we consider this an
additional stream of recurring revenue.
Cost to Serve
The category includes those costs which are related to
serving our customers through the use of our software
products, and the availability of our customer support
team. Costs included are those such as cloud hosting
expenses, maintenance of our software products, bank
fees charged per customer transaction, and customer
support.
Other Revenue
This category includes revenue that is not recurring
revenue and includes grants received and other services
revenue.
Other Interest Income
This category includes non-recurring interest earned on
deposits and investments other than payroll customer
funds.
Customer Acquisition
This category includes those costs which are related
to acquiring new customers. Costs included are those
such as sales and marketing, implementation and
onboarding of customers to our system, discounts and
referral fees. These costs are expensed as incurred as
they do not relate to any specific customer or contract
for services. These costs exclude those relating to the
inorganic growth from the acquisition of SmoothPay
during the period.
Research & Development
This category includes those costs which are related to
researching and developing new solutions and solving
problems for our existing and future customers. Costs
included are predominantly software development
salaries.
It should be noted that measuring these costs between
years is not an accurate reflection of the actual spending
on research and development for PaySauce due to
the timing of these costs being capitalised. The reader
should also consider the amount of intangible assets
recognised during the financial year as detailed in the
full financial statements.
General & Administration
This category captures all of the other elements of
running the business. Costs included are those such as
management remuneration, director fees, office running
costs, finance and administration, legal and consulting
expenses, and other overhead costs.

Earnings Before Tax, Depreciation and
Amortisation
This is calculated by adding back depreciation,
amortisation and income tax expense to the amounts
reported in the NZ IFRS-based financial statements.
PaySauce believes that this measure provides useful
insights to measure the performance of PaySauce as a
SaaS business.
Earnings Before Tax, Depreciation and
Amortisation Margin %
Earnings Before Tax, Depreciation and Amortisation
Margin % calculates Earnings Before Tax, Depreciation
and Amortisation as a percentage of Recurring Revenue.
SaaS Metrics & Definitions
These SaaS metrics are prepared and defined to provide
readers with useful information about the performance
of PaySauce as a SaaS business.
Non-Generally Accepted Accounting Principles (Non-
GAAP) measures have been included, and should not
be viewed in isolation, nor considered as substitutes for
measures reported in accordance with New Zealand
Equivalents to International Financial Reporting
Standards (NZ IFRS).
Recurring Revenue
Recurring revenue is revenue that is expected to repeat
each period into the future.
For PaySauce, this is directly linked to the number
of customers and the pays that they run using the
PaySauce payroll products. There are currently two
sources of recurring revenue - processing fees and
interest income.
There is a direct correlation between the number
of customers processing payroll with PaySauce, and
the amounts of revenue derived from these streams
(allowing some variation due to elements such as
interest rates and number of employees per pay run).
There is no significant estimate or judgement applied
by management when recognising revenue arising from
these streams.
MRR
Monthly recurring revenue is the total recurring revenue
for the last calendar month of the reporting period.
ARR
Annual recurring revenue is the monthly recurring
revenue (MRR), multiplied by 12.
Gross Margin
The gross margin, when discussed as a SaaS term, is the
recurring revenue of the business, less the cost to serve
customers. This is often then expressed as a percentage,
where the gross margin is divided by the recurring
revenue.
Churn (monthly)
Churn is expressed as a percentage calculated as the
net reduction of customers in a calendar month divided
by the total customers at the start of that month.

ARPU
Average revenue per user (monthly) is the total recurring
revenue for the month, divided by the total customers
processing payroll that month.
CAC (per addition)
Customer acquisition cost (per addition) is the total
cost of acquiring customers for the period, divided by
the number of new customers processing payroll that
were acquired during the period. Excludes inorganic
growth through the acquisition of SmoothPay during
the period.
LTV
Lifetime value is the estimated value of a customer
over its lifetime with PaySauce. This is calculated by
taking the ARPU multiplied by the gross margin %, then
divided by the churn %.
Total Customer LTV
Total customer lifetime value is the lifetime value
multiplied by the total customers.
LTV : CAC Ratio
This ratio reflects the return on investment for customer
acquisition. It is calculated by dividing the lifetime value
of a customer by the customer acquisition cost (per
addition).
Revenue per FTE
This metric measures the total revenue generated
over the period, divided by the number of full-time
equivalent (FTE) employees at PaySauce at the end of
the period.

20
PaySauce Limited
21
Annual Report FY2022
Directors’ Report
The Board of Directors have pleasure in presenting the annual report of PaySauce Limited, incorporating the
consolidated financial statements and the independent auditor’s report, for the year ended 31 March 2022.
In the opinion of the directors of PaySauce Limited, the consolidated financial statements and notes on pages 26 to 55:
• comply with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”) and present fairly the
consolidated financial position of the Group as at 31 March 2022 and the results of their operations and cash
flows for the year ended on that date; and
• have been prepared using appropriate accounting policies, which have been consistently applied and
supported by reasonable judgements and estimates.
The directors consider that they have taken adequate steps to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide
reasonable assurance as to the integrity and reliability of the consolidated financial statements.
For and on behalf of the Board of Directors:
Shelley Ruha
30 May 2022
Chair
Jacqueline Cheyne
30 May 2022
Chair of Audit & Risk Committee
FINANCIALS

22
PaySauce Limited
23
Annual Report FY2022
Independent
Auditor’s Report
To the Shareholders of PaySauce Limited
Report on the Audit of the
Consolidated Financial
Statements
Opinion
We have audited the consolidated financial statements
of PaySauce Limited (the “Company”) and its subsidiaries
(“the Group”) on pages 26 to 55 which comprise the
consolidated statement of financial position as at
31 March 2022, and the consolidated statement of
comprehensive income, consolidated statement of
changes in equity and consolidated statement of
cash flows for the year then ended, and notes to the
financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated financial
statements present fairly, in all material respects, the
financial position of the Group as at 31 March 2022
and its financial performance and cash flows for the
year then ended in accordance with New Zealand
Equivalents to International Financial Reporting
Standards (NZ IFRS) issued by the New Zealand
Accounting Standards Board.
Basis for Opinion
We conducted our audit in accordance with
International Standards on Auditing (New Zealand)
(ISAs (NZ)) issued by the New Zealand Auditing and
Assurance Standards Board. Our responsibilities under
those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We
are independent of the Group in accordance with
Professional and Ethical Standard 1 (Revised) Code of
Ethics for Assurance Practitioners issued by the New
Zealand Auditing and Assurance Standards Board, and
we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that
the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Other than in our capacity as auditor we have no other
relationship with, or interests in, the Company or any of
its subsidiaries.
Key Audit Matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in
our audit of the consolidated financial statements of
the current period. These matters were addressed in
the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion
on these matters. We have determined the matters
described below to be the key audit matters to be
communicated in our report.
Why the audit matter is significant
Intangible Assets – internally developed software
Intangible assets carrying value of $1,586,000 at 31 March 2022
($905,000 31 March 2021) included computer software and
software in development and customer relationship additions
that arise from a business acquisition at 31 May 2021.
The Group is a Software as a Service (“SaaS”) provider which
incurs significant expenditure in development, upgrading and
maintaining of software.
NZ IAS 38 Intangible Assets outlines the criteria for
capitalisation of costs associated with developing the software
including whether the software will generate future economic
benefits as disclosed in Note 5. Capitalised software costs are
recognised at cost and subsequently amortised over their
estimated useful lives. Costs that do not meet the criteria for
capitalisation are expensed to profit or loss as incurred.
Capitalisation of appropriate costs and estimates of useful
life require significant judgement and therefore have been
included as a key audit matter.
Intangible asset additions in the year also included customer
relationships $354,000 and software $205,000 acquired from
a business combination as disclosed in Note 5 and 18. NZ
IFRS 3 business combination accounting requires fair value
measurement and recognition of all significant acquired assets
and liabilities. These significant intangible assets acquired
involved significant management judgement and estimation
when recognised at acquisition date and measured at fair
value.
Employee Share Scheme
During the year the Company approved an employee share
scheme for staff. This has resulted in the recognition of
$199,000 of employee cost in the year ended 31 March 2022
with an increase in the share based payment reserve of
$131,000 and recognition of related employee tax obligations of
$68,000.
Due to the complexity of accounting arising from accounting
standard NZ IFRS 2 Share Based Payments and the degree of
judgements and estimates required by management, we have
determined this to be a key audit matter.
How our audit addressed the key audit
matter
We evaluated the appropriateness of additions that have
been capitalised costs or acquired as intangible assets and
managements estimate of useful life by:
• Inquiry of management, evaluating costs that have been
capitalised with respect to the criteria outlined in NZ IAS
38 Intangible Assets. We obtained an understanding of the
nature of the costs incurred including the application of
the software in the business to generate future economic
benefits.
• Checked costs capitalised and annual amortisation
charged for mathematical accuracy including sensitivity
analysis on rates applied.
• Assessed managements estimate of the useful life of
intangible assets for reasonableness based upon the
expected future period of use of the asset.
• Agreed a sample of costs capitalised for appropriate
sufficient audit evidence.
• Assessed managements methodology and key inputs and
estimates when determining the fair value of acquired
intangible assets in the business combination acquisition.
Obtaining sufficient appropriate audit evidence.
• Where managements fair value methodology included
an assessment of an assets independent discounted
future cash flows, we reviewed the methodology and
key judgements for accuracy and reasonableness and
consulted as appropriate with our internal corporate
finance expert.
• Reviewed disclosures in the financial statements for
reasonableness and appropriateness.
We evaluated the appropriateness of recognition and
measurement of employee share based payments by;
• Reviewing board minutes and other announcements
in respect of communications of the scheme including
review and assessment of the approved scheme
arrangement documentation.
• Obtained managements expert report prepared by PWC
providing advice on the accounting, measurement and
recognition of the employee share scheme. Reviewed the
report for reasonableness obtaining sufficient appropriate
audit evidence for key judgements and estimates made by
management.
• Assessed the methodology and reasonableness of fair
value measurements of share options.
• Reviewed disclosures in the financial statements for
reasonableness and appropriateness.

24
PaySauce Limited
25
Annual Report FY2022
Other Information
The Directors are responsible for the other information.
The other information comprises the Chair & CEO letter,
leadership, mission & values, year in review, partner
network, Saas reporting and corporate governance
and related disclosures but does not include the
consolidated financial statements and our auditor’s
report thereon. Our opinion on the consolidated
financial statements does not cover the other
information and we do not express any form of audit
opinion or assurance conclusion thereon.
In connection with our audit of the consolidated
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we
have performed, we conclude that there is a material
misstatement of this information, we are required to
report that fact. We have nothing to report in this regard.
Directors’ responsibilities for the
Consolidated Financial Statements
The Directors are responsible on behalf of the Group
for the preparation and fair presentation of the
consolidated financial statements in accordance
with NZ IFRS issued by the New Zealand Accounting
Standards Board, and for such internal control as
the Directors determine is necessary to enable the
preparation of consolidated financial statements that
are free from material misstatement, whether due to
fraud or error.
In preparing the consolidated financial statements,
the directors are responsible on behalf of the Group
for assessing the Group’s ability to continue as a going
concern, disclosing, as applicable, matters related
to going concern and using the going concern basis
of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the Audit of
the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that
an audit conducted in accordance with ISAs (NZ) will
always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of the auditor’s responsibilities for
the audit of the financial statements is located on the
External Reporting Board’s website at: https://www.xrb.
govt.nz/assurance-standards/auditors-responsibilities/
audit-report-1/
Restriction on use of our report
This report is made solely to the Company’s
shareholders, as a body. Our audit work has been
undertaken so that we might state to the Company’s
shareholders, as a body those matters which we are
required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone
other than the Company and its shareholders, as a body,
for our audit work, for this report or for the opinion we
have formed.
Grant Thornton New Zealand Audit Partnership
K Price, Partner
Auckland
30 May 2022

26
PaySauce Limited
27
Annual Report FY2022
The above statement should be read in conjunction with the accompanying notes.The above statement should be read in conjunction with the accompanying notes.
20222021
Notes$000s$000s
Operating revenue83,5172,198
Expenses
Employee expenses9(2,928)(2,395)
Other expenses12(1,444)(1,197)
Depreciation and amortisation4,5(419)(261)
Finance costs11(25)(33)
Total expenses(4,816)(3,886)
Net loss before income tax(1,299)(1,688)
Tax benefit1317-
Net loss for the period(1,282)(1,688)
Other comprehensive income--
Total comprehensive loss for the period(1,282)(1,688)
Loss per shareCentsCents
Basic loss per share7(0.93)(1.24)
Diluted loss per share7(0.93)(1.24)
20222021
Notes$000s$000s
Assets
Current assets
Cash and cash equivalents2226,25521,756
Deposits1,675-
Trade receivables8119
Other assets392165
Total current assets28,40321,940
Non‑current assets
Property, plant and equipment4137401
Intangible assets51,586905
Total non‑current assets1,7231,306
Total assets30,12623,246
Liabilities
Current liabilities
Trade and other payables454299
Funds due to customers and IRD2227,33819,965
Employee benefits282201
Other liabilities29124
Lease liabilities6643
Total current liabilities28,43120,532
Consolidated Statement of
Comprehensive Income
for the year ended 31 March 2022
Consolidated Statement of
Financial Position
as at 31 March 2022

28
PaySauce Limited
29
Annual Report FY2022
For and on behalf of the Board of Directors, who authorised the issue of these Consolidated Financial Statements on
30th May 2022:
Shelley Ruha
30 May 2022
Chair
20222021
Notes$000s$000s
Non‑current liabilities
Lease liabilities-282
Employee benefits27-
Total non‑current liabilities27282
Total liabilities28,45820,814
Net assets1,6682,432
Equity
Share capital613,03912,652
Reserves131-
Accumulated losses(11,502)(10,220)
Equity attributable to the owners of the Company1,6682,432
Attributable to equity holders of the Company
Share‑based
payment
reserve
Share
Capital
Accumulated
losses
Total
Notes$000s$000s$000s$000s
Balance as at 1 April 2021‑12,652(10,220)2,432
Comprehensive loss
Net loss for the period‑‑(1,282)(1,282)
Other comprehensive income‑‑--
Total comprehensive loss‑‑(1,282)(1,282)
Transactions with owners
Share-based payments, net of tax19131--131
Issue of ordinary shares6-387-387
Total transactions with owners131387‑518
Balance as at 31 March 202213113,039(11,502)1,668
Balance as at 1 April 2020‑10,774(8,532)2,242
Comprehensive loss
Net loss for the period--(1,688)(1,688)
Other comprehensive income----
Total comprehensive loss‑‑(1,688)(1,688)
Transactions with owners
Issue of ordinary shares6-1,878-1,878
Total transactions with owners‑1,878‑1,878
Balance as at 31 March 2021‑12,652(10,220)2,432
Consolidated Statement of
Financial Position (cont.)
as at 31 March 2022
Consolidated Statement of
Movements in Equity
for the year ended 31 March 2022
The above statement should be read in conjunction with the accompanying notes.The above statement should be read in conjunction with the accompanying notes.
Jacqueline Cheyne
30 May 2022
Chair of Audit & Risk Committee

30
PaySauce Limited
31
Annual Report FY2022
20222021
Notes$000s$000s
Cash flows from / (used in) operating activities
Receipts from customers3,0622,121
Interest received177221
Taxes refunded818
Payments to suppliers and employees(3,888)(3,444)
Interest paid(25)(34)
Net cash used in operating activities before increase in funds
due to customers and IRD
22(666)(1,118)
Increase in funds due to customers and IRD227,3746,515
Net cash from operating activities176,7085,397
Cash flows from / (used in) investing activities
Funds on deposit(1,675)1,650
Investment in intangible assets(433)(494)
Purchases of property, plant and equipment(42)(36)
Other investing activities(27)-
Net cash from / (used in) investing activities(2,177)1,120
Cash flows from / (used in) financing activities
Net proceeds from issue of shares-1,703
Repayments of principal portion of lease liability(32)(39)
Repayments of other borrowings-(14)
Net cash from / (used in) financing activities(32)1,650
Net increase in cash and cash equivalents4,4998,167
Cash and cash equivalents at beginning of the period21,75613,589
Cash and cash equivalents at end of the period26,25521,756
Consolidated Statement of
Cash Flows
for the year ended 31 March 2022
Notes to the Consolidated Financial
Statements
For the year ended 31 March 2022
1. General information
PaySauce Limited (the “Company” or “PaySauce”), is a for-profit limited liability company, domiciled and incorporated
in New Zealand and registered under the Companies Act 1993. The company is an FMC Reporting Entity for the
purpose of the Financial Markets Conduct Act 2013. PaySauce is listed on the New Zealand Stock Exchange (“NZX”)
that trades under the ticker PYS.
The Group provides Software as a Service (SaaS) solutions for people at work in 14 jurisdictions across the Asia-Pacific
region. Providing employers the technology to digitally onboard, pay and manage employees from any device.
The PaySauce platform includes rosters, mobile timesheets, payroll calculations, banking integration, automated
payments, PAYE filing, labour costing, automated general ledger entries and digital employment contracts.
The consolidated financial statements for the Company and its subsidiaries (the “Group”) for the year ended 31 March
2022 were authorised in accordance with a resolution of the directors for issue on 30 May 2022 and are audited.
2. Summary of significant accounting policies
BASIS OF PREPARATION
These consolidated financial statements have been prepared:
• in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”)
• in accordance with New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”) and
other applicable Financial Reporting Standards, as appropriate for profit oriented entities
• in accordance with International Financial Reporting Standards (“IFRS”)
• in accordance with the requirements of the Financial Markets Conduct Act 2013;
• on the basis of historical cost;
• in New Zealand dollars (NZD) with all values rounded to the nearest one thousand dollars ($1,000) unless
otherwise stated;
• on the assumption that the Group is a going concern.
There were no new standards, amendments or interpretations issued in the financial period which would materially
impact the financial statements.
a. Basis of consolidation
The Group financial statements incorporate the financial statements of the Company and its subsidiaries as at 31
The above statement should be read in conjunction with the accompanying notes.

32
PaySauce Limited
33
Annual Report FY2022
• Intangible Assets (Note 5)
• Employee Share Scheme (Note 19)
• Tax Expense (Note 13)
• Business Combinations (Note 18)
COVID-19
Management considers that COVID-19 did not have a significant negative impact on the business operations,
financial performance, nor the financial position of the Group for the year ended 31 March 2022. Management has
made this judgement by looking at a range of indicators - and has not seen any material negative impacts on the
following key indicators:
• Customer churn
• Customer size
• New customers
• Aged receivables
• Losses of major partnerships.
Management continues to assess any impact on the business operations, financial performance, and financial
position of the Group. With COVID-19 now prevalent in the community, there is increased operational impact
as people remain home either sick or isolating. At this stage, management does not consider there to be any
significant risk to the Group. The factors which management considered in forming this judgement are as follows:
• PaySauce introduced a COVID-19 Risk Management policy to protect staff, minimising risk of infection and
transmission;
• PaySauce’s business operations are always ready to operate with minimal interruption upon enactment of our
Business Continuity Plan (BCP);
• The PaySauce product is cloud-based, which enables customers to continue to use the service uninterrupted
from any device;
• PaySauce has not seen a trend of customers requesting deferred payment options, partly due to the nature of
our billing (at a point in time as the service is provided, automatically deducted), and that the cost is relatively
small on a monthly per customer basis compared to other business expenses;
• Payroll is the core of our service provision, and is an essential service for New Zealand businesses.
Going concern
The consolidated financial statements have been prepared on a going concern basis.
The Group made a net loss before tax of $1.282 million for the year ended 31 March 2022 (2021: $1.688 million), has
equity at 31 March 2022 of $1.668 million (2021: $2.432 million) and net current assets/(liabilities) of $0.028 million
(2021: $1.408 million). Toward the end of the reporting period, revenue had grown sufficiently to cover the operating
costs of the Group. The Group also has total debt facilities of $0.90 million to draw upon as required.
The Directors consider after making due enquiry and having regard to the circumstances which they consider
reasonably likely to affect the Group for the foreseeable future, which is not less than 12 months from the date these
financial statements are approved for issue, that the going concern assumption is valid.
March 2022. All subsidiaries are wholly owned and controlled by the Company as at 31 March 2022 and have a
reporting date of 31 March 2022 (note 21).
All transactions and balances between the Group are eliminated on consolidation. Amounts reported in the
financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting
policies adopted by the Group.
b. Foreign currency translation
Functional and presentation currency
Items included in the consolidated financial statements of the Group’s entities are measured using the currency
of the primary economic environment in which the entity operates (New Zealand). The consolidated financial
statements are presented in New Zealand dollars ($), which is the Group’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions or valuation where items are re-measured.
c. Goods and Services Tax (GST)
All revenue and expense transactions are recorded exclusive of GST. Assets and liabilities are similarly stated exclusive
of GST, with the exception of receivables and payables, which are stated inclusive of GST.
d. Leases
Payments associated with short-term leases and leases of low-value assets are recognised on a straight line basis
as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets
comprise IT-equipment and small items of office furniture.
PaySauce modified the right-of-use asset and associated lease liability for the property lease at 21-23 Andrews
Avenue, Lower Hutt as at 31 March 2022, as the Group no longer intends to exercise their option to extend the lease
of this premises which is up for renewal within the next 12 months.
3. Use of critical accounting estimates and judgements
The preparation of the consolidated financial statements requires PaySauce to make a number of judgements,
estimates and assumptions. Estimates and underlying assumptions are reviewed on an on-going basis.
Information about critical judgements and significant estimates used in applying accounting policies that have the
most significant effect on the amounts recognised in the consolidated financial statements are included below and
in the following notes:

34
PaySauce Limited
35
Annual Report FY2022
Items of computer, office equipment, leasehold improvements are measured at cost less accumulated depreciation
and accumulated impairment losses.
A vehicles category was presented in the financial statements for the year ended 31 March 2021, showing fully
depreciated motor vehicles that were disposed of in that period. The change in disclosure by no longer including
this category for the comparative period does not impact the reporting results of operations.
Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is
integral to the functionality of the related equipment is capitalised as part of that equipment.
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss within the
Statement of Comprehensive Income.
Depreciation is recognised in profit or loss on a straight line basis over the estimated useful lives of each item of
equipment.
The depreciation rates for the current and comparative years of significant items of property, plant and equipment
are as follows:
Office equipment8.5 - 67%
Leasehold improvements10 - 25%
Computer equipment21 - 40%
Depreciation methods, useful lives and residual values are reviewed at each reporting period and adjusted if
appropriate.
The carrying values of property, plant and equipment are reviewed annually for impairment when events or changes
in circumstances indicate the carrying value may not be recoverable.
The carrying value for the right-of-use asset associated with the property lease at 21-23 Andrews Avenue, Lower Hutt
was modified along with the corresponding lease liability following a change in circumstances in the outlook of the
tenure of lease for the property (refer to note 2 (d)).
4. Property, plant and equipment
Right‑of‑use
Asset (Property)
Office
Equipment
Leasehold
Improvements
Computer
EquipmentTotal
$000s$000s$000s$000s$000s
Year ended 31 March 2022
Opening net book value30335756401
Acquisitions---22
Additions(5)1013036
Disposals/modifications(189)--(5)(194)
Depreciation(51)(15)(1)(41)(108)
Closing net book value5830742137
As at 31 March 2022
Cost2038011156450
Accumulated depreciation(145)(50)(4)(114)(313)
Net book value5830742137
Year ended 31 March 2021
Opening net book value35339871471
Additions-10-2636
Disposals---(2)(2)
Depreciation(50)(14)(1)(39)(104)
Closing net book value30335756401
As at 31 March 2021
Cost3967110128605
Accumulated depreciation(93)(36)(3)(72)(204)
Net book value30335756401

36
PaySauce Limited
37
Annual Report FY2022
5. Intangible assets
Development
in progress
Computer
Software
Customer
RelationshipsTotal
$000s$000s$000s$000s
Year ended 31 March 2022
Opening net book value213692‑905
Acquisitions-205354559
Additions-20-20
Development costs recognised as an asset255158-413
Development in progress recognised as Software(68)68--
Amortisation-(252)(59)(311)
Closing net book value4008912951,586
As at 31 March 2022
Cost4001,6843542,438
Accumulated amortisation-(793)(59)(852)
Net book value4008912951,586
Year ended 31 March 2021
Opening net book value46517‑563
Development costs recognised as an asset305189-494
Development in progress recognised as Software(138)138--
Amortisation-(152)-(152)
Closing net book value213692‑905
As at 31 March 2021
Cost2131,234-1,447
Accumulated amortisation-(542)-(542)
Net book value213692‑905
Finite life intangible assets
Acquired computer software licences and costs associated with developing computer software are capitalised on
the basis of the costs incurred to acquire and bring the specific software into use. All intangible assets of PaySauce
are finite life intangible assets.
Development expenditure initially recognised as an expense is not recognised as an asset in subsequent periods.
Costs associated with maintaining computer software programs are recognised as an expense as incurred.
Developed and acquired software is measured at cost less accumulated amortisation and impairment losses, if any.
Amortisation is recognised in the Statement of Comprehensive Income on a straight-line basis and the rates for the
current and comparative years are 20 - 67%.
The customer relationships acquired as part of the SmoothPay business combination (note 18) were recognised as
a finite life intangible asset and measured at acquisition date fair value. At balance sheet date these are measured
at cost less accumulated amortisation and impairment losses. Amortisation is recognised in the Statement of
Comprehensive Income on a straight-line basis and the rates for the current and comparative years are 20 - 67%.
Key estimates and judgements
Capitalisation of intangible assets
Management considers the time and associated salary cost of development staff to fall under the classification of
development expenditure for assessment purposes in accordance with the principles outlined below. No indirect
people costs, nor weighting of overheads is applied in these calculations.
Development expenditure is capitalised if, and only if the Group can demonstrate all of the following:
• its ability to measure reliably the expenditure attributable to the asset under development;
• the product or process is technically and commercially feasible;
• its future economic benefits are probable;
• its ability to use or sell the developed asset; and
• the availability of adequate technical, financial and other resources to complete the asset under development.
The intangible assets included in the acquisition of business and assets of SmoothPay during the year were valued
at fair value refer to note 18 - Business Combinations.
Accounting for finite life intangible assets
At each reporting date, the useful lives and residual values of finite life intangible assets are reviewed for indicators
of impairment. As at 31 March 2022, the assets were assessed for indicators of impairment, taking into account the
condition of the assets, expected period of use of the assets by the Group, and expected disposal proceeds from any
future sale of the assets. Management’s assessment concluded that there were no indicators of impairment.
New assets acquired during the period were assessed by management as having useful lives as follows:
• Acquired customer relationships - 5 years
• Acquired software - 5 years
Development in progress has been assessed for indicators of impairment by reviewing the nature of the events
that originally gave rise to the recognition of the asset, the estimation of future generation of cash flows and any
anticipated changes to the business or product circumstances. Management’s assessment concluded that there
were no indicators of impairment of this asset as at 31 March 2022.

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Annual Report FY2022
6. Share capital
DateDetailsNotesNumber of Shares$000s
1 April 2021Opening Balance137,026,27812,652
Share based paymenti1,416,164348
Share based paymentii141,37739
31 March 2022Closing Balance138,583,81913,039
1 April 2020Opening Balance131,341,12110,774
Rights issueiii3,430,2451,153
Rights issueiv1,647,237550
Employee share issuev607,675175
31 March 2021Closing Balance137,026,27812,652
Fully paid up, ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares are recognised as a deduction from equity, net of any tax effects.
i. On 31 May 2021: PaySauce acquired the business and assets of SmoothPay Limited. PaySauce issued 1,416,164
ordinary shares as consideration for the purchase, issued at a price of $0.2648 per share, totalling a purchase
price of $0.375 million. Directly attributable costs totalled $0.027 million, bringing the net share issue to $0.348
million.
ii. On 31 December 2021: PaySauce issued ordinary shares to remunerate and align the interests of a new director
with PaySauce shareholders ahead of their formal appointment to the Board. There was no vesting period, and
the shares were issued subject to the Director continuing to hold office until voted in by shareholders at the
Annual Shareholders Meeting. The allotment on 31 December 2021 resulted in 141,377 shares being issued at a
price of $0.2847 per share, satisfying remuneration arrangements to the value of $0.04 million expensed in the
consolidated statement of comprehensive income . Directly attributable costs totalled $0.001 million, bringing
the net share issue to $0.039 million.
iii. On 30 April 2020: PaySauce completed the second allotment of shares under its rights issue shortfall. The
allotment on 30 April 2020 resulted in 3,430,245 shares being issued at a price of $0.34 per share, a net raise of
$1.153 million after directly attributable costs.
iv. On 15 May 2020: PaySauce completed the final allotment of shares under its rights issue shortfall. The allotment
on 15 May 2020 resulted in 1,647,237 shares being issued at a price of $0.34 per share, a net raise of $0.550
million after directly attributable costs. This completed the fully subscribed rights issue.
v. On 31 March 2021: PaySauce issued ordinary shares to employees as part of remuneration arrangements under
employment agreements. This was a share based payment for accrued bonuses, there were no vesting periods
or conditions, and were all equity settled and expensed to the profit and loss. The allotment on 31 March 2021
resulted in 607,675 shares being issued at a price of $0.2875 per share, satisfying remuneration arrangements to
the value of $0.175 million.
Dividends
No dividends were declared or paid during the reporting period (2021: None).
Capital Risk Management
The Group considers its capital to comprise its fully paid up, ordinary share capital and accumulated retained
earnings.
When managing capital, management’s objective is to achieve optimal long term capital returns to shareholders
and benefits for other stakeholders. Management also aims to maintain a capital structure that ensures the lowest
cost of capital available to the Group.
7. Earnings / (loss) per share
There are no financial instruments on issue that will dilute the basic earnings per share amounts for the year ended
31 March 2022.
Basic earnings per share is calculated by dividing the profit / (loss) attributable to equity holders of the Company by
the weighted average number of fully paid up ordinary shares on issue during the period.
20222021
Basic earnings per share
Net loss used in calculating earnings per share ($000s)(1,282)(1,688)
Weighted average number of ordinary shares for basic earnings per share138,241,759135,940,949
Basic loss per share (cents)(0.93)(1.24)

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PaySauce Limited
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Annual Report FY2022
8. Operating revenue
20222021
$000s$000s
Revenue from contracts with customers
Processing fees3,1961,928
Other services revenue6044
Revenue from other sources
Interest income210207
Other revenue5119
Total operating revenue3,5172,198
There are no significant estimates or judgements surrounding recognition of revenue.
Revenue from contracts with customers
Processing fees
Revenue from processing fees includes both fixed and incremental components based on the number of
employees and pays processed for the customer. Revenue is recognised at the point in time the service is provided,
which is when the customer’s payroll has been processed.
Other services revenue
Revenue from sales of digital contracts are recognised when the customer has used the service. Revenue is
recognised at the point in time the service is provided, which is when the customer uses the contract builder
application.
Revenue from other sources
Interest income
Interest income is generated from the balance of PAYE funds held due to IRD is determined to be operating
revenue by the Group. Interest income is accrued using the effective interest rate method.
Other revenue
Other revenue is recognised upon completion of services at a point in time.
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related
service is provided.
Research & development costs capitalised, and amortisation of intangible assets categories were presented under
this section in the financial statements for the year ended 31 March 2021. We have changed the disclosure this year,
and this information is already included in note 5. The change in disclosure does not impact the reporting results of
operations.
9. Employee expenses
20222021
$000s$000s
Employee benefits/entitlements2,6302,354
Employee benefits/entitlements - share based payments200-
Fringe benefit tax3224
Other employee expenses6617
Total employee expenses2,9282,395
10. Research & Development
20222021
$000s$000s
Research & development costs expensed
(included in note 9 - Employee Expenses under Employee benefits/entitlements)
556337
Total research & development556337

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Annual Report FY2022
11. Finance Costs
12. Other expenses
20222021
$000s$000s
Interest paid-2
Finance cost - Interest on lease2531
Total finance costs2533
20222021
$000s$000s
Advertising, PR and Marketing109111
Audit Fees6957
Communications and subscriptions221158
Customer and transactional335245
Directors’ fees177146
Professional services11559
Office running, rent and insurance12094
Other overheads101192
Infrastructure and security14472
Travel5363
Total other expenses1,4441,197
13. Tax expense
Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to
the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive
income.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
• temporary differences related to investments in subsidiaries and jointly controlled entities to the extent that it is
probable that they will not reverse in the foreseeable future; and
• taxable temporary differences arising on the initial recognition of goodwill.
The Group has not recognised any deferred tax in accordance with the key estimates and judgements below.
Key estimates and judgements
The Group holds tax losses of $8.844 million as at 31 March 2022 (2021: $7.291 million) available to carry forward,
subject to shareholder continuity being maintained. Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available to use against the asset. These are reviewed at each reporting
period and adjusted if appropriate. Management has assessed that no losses are to be recognised as deferred tax
assets as at 31 March 2022 as the Group is not yet profitable and for the foreseeable future expects to reinvest profits
back into the business.
20222021
$000s$000s
(a) Income Tax
Net Loss before tax for the period(1,282)(1,688)
Tax Losses Carried Forward(7,290)(5,847)
Permanent Differences9333
Temporary Differences(281)(89)
Tax Losses to Carry Forward(8,844)(7,291)
(b) Deferred Tax
Opening Deferred Tax Liability‑‑
Increases to Deferred Tax Liability(99)-
Decrease to Deferred Tax Liability17-
Closing Deferred Tax Liability(82)‑
The allocation of other expenses has been improved to provide the reader with a more accurate representation
of the expenditure incurred. The disclosure for the year ended 31 March 2022 has also changed from what was
presented in the group financial statements to align the comparative period disclosure with the newly created
categories. The change in disclosure does not impact the reporting results of operations, for the categories
presented on the face of the financial statements.

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Annual Report FY2022
14. Key management personnel and related parties
Key management personnel compensation
Key management personnel are defined as those persons having authority and responsibility for planning,
directing and controlling the activities of the Group, directly or indirectly and include the Directors, the
Chief Executive Officer and the Executive Leadership Team.
The table below summarises remuneration paid to key management personnel.
20222021
$000s$000s
Directors’ fees215146
Short term employee benefits784836
Total key management personnel compensation999982
Related party transactions and balances
A number of key management personnel, or their related parties, hold positions in other entities that result in them
having control or significant influence over the financial or operating policies of those entities. A number of those
entities subscribe to services provided by the Group. None of the related party transactions are significant to either
party, and are completed on arm’s length terms. Outside of these transactions, and the Directors’ fees and short
term employee benefits noted above, all other related party transactions are outlined below:
PaySauce Limited entered into a standby debt facility agreement with Director Gavin Thompson during the
period. The facility totals $0.25M and can be drawn on demand, within two years from the date of the agreement
(December 2021). The agreement is made at arm’s length, with the interest rate linked to the floating interest rate of
ASB Bank Limited. As at 31 March 2022, no funds have been drawn.
20222021
Related party transactions during the period$000s$000s
Consulting services supplied by entities controlled by related parties
Catalyst.Net Limited6-
Cloud hosting services supplied by entities controlled by related parties
Catalyst Cloud Limited10572
20222021
Related party balances payable at period end$000s$000s
Directors’ Fees1117
Cloud Hosting Services97
20222021
Related party balances receivable at period end$000s$000s
Prepaid Directors’ Fees33-

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PaySauce Limited
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Annual Report FY2022
15. Financial instruments
The Group’s financial assets mainly comprise of Cash and Cash Equivalents. Cash and Cash Equivalents comprise
cash on hand and demand deposits and are measured at amortised cost. Other longer term deposits not meeting
the cash and cash equivalents criteria are classified separately as Deposits. Cash and Cash Equivalents includes
funds collected from customers as a PAYE intermediary (note 22).
Classification and measurement of financial liabilities
The Group’s financial liabilities include trade and other payables, funds due to customers and IRD, and other
liabilities (including an overdraft facility used to operate our BNZ PayNow feature).
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method.
(a) Categories of Financial Assets & Liabilities
The carrying amounts presented in the statement of financial position relate to the following categories of assets
and liabilities.
20222021
Financial assets$000s$000s
Financial assets at amortised cost
Cash and cash equivalents26,25521,756
Deposits1,675-
Trade and other receivables8119
Total financial assets28,01121,775
20222021
Financial liabilities$000s$000s
Financial liabilities at amortised cost
Funds due to customers and IRD27,33819,965
Trade and other payables390266
Other liabilities29124
Total financial liabilities28,01920,255
The Group is exposed to a variety of financial risks. The financial risks arise from the business activities of the Group.
The specific financial risks that the Group is exposed to are discussed below.
(b) Market Risk
(i) Credit risk
As a SaaS business with minimal credit exposure, credit risk is relatively low relating to revenue received from
customers and any associated trade receivables. For other financial assets (including cash and bank balances), the
Group minimises credit risk by dealing exclusively with high credit rating counterparties.
Credit risk concentration profile
The Group manages credit risk by placing its cash and short term investments with high quality financial institutions.
The majority of the Cash and Cash Equivalents are held with ASB Bank and BNZ, both of which have a credit rating
of A+ from Fitch, AA- from Standard & Poor’s, and A1 from Moody’s.
Exposure to credit risk
As the Group does not hold any collateral, the maximum exposure to credit risk is represented by the carrying
amount of the financial assets as at the end of the reporting period.
(ii) Liquidity risk
Liquidity risk arises mainly from business activities. The Group manages liquidity risk by ensuring cash flow is
planned ahead of time, and funding is planned and organised when required, to ensure the Group will be able to
meet its financial obligations. The following table sets out the maturity profile of the financial liabilities as at the end
of the reporting period based on contractual undiscounted cash flows (including interest payment computed using
contractual rates or, if floating, based on the rate at the end of the reporting period):
Carrying amountTotal0‑6 months
$000s$000s$000s
Year ended 31 March 2022
Funds due to customers and IRD27,33827,33827,338
Trade and other payables390390390
Other liabilities291291291
Total28,01928,01928,019
Year ended 31 March 2021
Funds due to customers and IRD19,96519,96519,965
Trade and other payables266266266
Other liabilities242424
Total20,25520,25520,255

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PaySauce Limited
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Annual Report FY2022
(iii) Interest rate risk
PaySauce’s interest rate risk arises from the interest that it earns from its cash and cash equivalents. These funds are
subject to variable interest rates that expose PaySauce to cash flow interest risk rate. PaySauce does not currently use
any derivative products to manage interest rate risk.
As at balance date, none of the funds were held in deposits subject to interest periods of greater than 12 months.
An analysis of the sensitivity of the Group’s earnings due to movements in interest rates is shown below.
The above information is calculated by applying the effective movement to the average balance of cash and cash
equivalents. Cash and cash equivalents and Deposits totalled $27.93 million as at 31 March 2022 (2021: $21.76
million).
20222021
Effect on net profit before tax$000s$000s
Each 100 basis point increase in interest rate248185
Each 100 basis point decrease in interest rate(248)(185)
16. Fair values of financial assets and liabilities
The carrying values of short term financial assets and liabilities approximate their fair values. Short term financial
assets include cash, trade and other receivables and related party receivables.
17. Reconciliation of net loss after tax to net cash flows from
operations
20222021
$000s$000s
Net Loss after taxation(1,282)(1,688)
Add back / (deduct) non-cash & non-operating items:
Depreciation & amortisation419261
Loss on disposal of fixed assets43
Share based payment expense170175
Other non-cash & non-operating items(97)-
(786)(1,249)
Movement in working capital:
(Increase)/decrease in Trade and other receivables(62)161
(Increase)/decrease in Other assets(225)(2)
Increase/(decrease) in Funds due to customers and IRD7,3746,515
Increase/(decrease) in Trade and other payables156(24)
Increase/(decrease) in Employee benefits10714
Increase/(decrease) in Other liabilities144(18)
Net cash inflow from operating activities6,7085,397

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PaySauce Limited
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Annual Report FY2022
18. Business combinations19. Employee Share Scheme
Business combinations are accounted for using the acquisition method. The acquisition method involves
recognising at acquisition date the identifiable assets acquired, the liabilities assumed and any non-controlling
interest, separate from Goodwill. The cost of an acquisition is measured as the aggregate of the consideration
transferred, which is measured at acquisition date fair value.
The Group acquired the business and assets of SmoothPay Limited on 31 May 2021. SmoothPay provides cloud-
based payroll software as a service solutions to New Zealand, Australia and the Pacific Islands. The acquisition was
undertaken to align with PaySauce’s strategic objective of accelerating customer growth - expanding the group’s
market share in New Zealand and to overseas markets.
The consideration and identifiable net assets in the acquisition are measured at fair value. As the transaction was a
purchase of business assets and liabilities rather than equity, there was no non-controlling interest to consider. The
fair value of the purchase consideration of SmoothPay was $0.375 million. This consisted of PaySauce (NZX:PYS) fully
paid up ordinary shares issued at a value of $0.375 million. The volume of the 1,416,164 shares issued was based on
the 20-day volume weighted average share price of PaySauce preceding the transaction date, $0.2648 per share.
The difference between the fair value of the consideration and the fair value of the net assets acquired was not
material, therefore no Goodwill has been recognised.
SmoothPay contributed $0.21 million in operating revenue and $0.19 million in net profit for the year ended 31
March 2022. As the acquisition took place early in the current reporting period, the group revenue and earnings that
would have been recorded if the acquisition had taken place at the beginning of the group reporting period would
not have been materially different.
The acquisition related costs consisted of legal, consulting, and share issue costs totalling $0.027 million which were
offset against the share capital issued, reducing the net increase in share capital to $0.348 million.
The acquisition accounting has resulted in the following purchase price allocations:
The group provides benefits to employees in the form of share-based payment transactions, whereby employees
render services in exchange for shares or right over shares (‘equity settled transactions’) and/or cash settlements
based on the value of equity instruments of the group (‘cash settled transaction’). The cost of the transaction is
spread over the period in which the employees provide services and become entitled to the awards.
The cost of the equity-settled transactions with employees is measured by reference to the fair value of equity
instruments at the date at which they are granted. The cost of equity-settled transactions is recognised in the
statement of financial performance together with a corresponding increase in equity.
The fair value of the cash-settled transactions is determined at each reporting date and the change in fair value is
recognised in the income statement with a corresponding increase in the liability.
On 31 March 2022 the directors approved a new share scheme under which certain awards were granted to
employees who had been employed by the Group for more than six months. Under the share scheme, employees
are entitled to a number of shares based on a dollar value specified within their offer sheet.
The receipt of the shares is subject to two vesting conditions. The first being a service condition
(remaining employed or engaged under contract for personal service by PaySauce at the relevant vesting
dates) and the second being a non-market performance condition, (which requires PaySauce to achieve
100% of its budgeted EBIT for FY22). Under the vesting schedule one third of the shares vest on issue
date, the second third vest one year from the issue date and the balance will vest two years from the
issue date.
Shares may be paid up by a Discretionary Bonus or in cash. The Company will determine the amount of any
Discretionary Bonus based on the achievement of 100% of the budgeted EBIT for FY22 and the employee’s
achievement of their personal KPI objectives. The payment and amount of the Discretionary bonus will be decided
and communicated by the Company at its sole discretion.
No individual employee will be entitled to a Discretionary Bonus that could fully settle all the vested shares. Any
Discretionary Bonus will be used to fully pay up as many vested shares as possible. Each individual grantee will
therefore receive partly free shares and partly share options. Set out below is a summary of the shares and share
options granted under the scheme:
31 May 2021
Purchase price allocations$000s
Tangible assets acquired2
Liabilities assumed(186)
Intangible Assets - Software Development205
Intangible Assets - Customer Relationships354
Net assets acquired375
Purchase consideration
Fully paid up ordinary shares issued375
Total consideration transferred375
Number of Shares
Grant DateVesting Date
Balance at
beginning of
the year
Granted
during the
year
Vested
during the
year
Forfeited
during the
year
Balance at
the end of
the year
20 May 202231 March 2022-274,362274,362-274,362
20 May 202231 March 2023-274,806--274,806
20 May 202231 March 2024-274,802--274,802
Total‑823,970274,362‑823,970

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Annual Report FY2022
20. Segment reporting
The Group is organised into one reportable operating segment only, being SaaS based employment and payment
solutions for people at work in 14 jurisdictions across the Asia-Pacific region, primarily within New Zealand. Providing
employers the technology to digitally onboard, pay and manage employees from any device. The PaySauce platform
includes rosters, mobile timesheets, payroll calculations, banking integration, automated payments, PAYE filing,
labour costing, automated general ledger entries and digital employment contracts. The chief operating decision
maker has been identified as the Board of Directors, as it makes all key strategic resource allocation decisions (such
as those concerning acquisition, divestment and significant capital expenditure).
Overseas revenue earned is not material and no separate geographical segment has been reported.
21. Investments in subsidiary
The Company had the following subsidiaries at 31 March 2022:
Entity Name
Date of
incorporation
Nature of
business
Equity
held
Value
held
Country of
incorporation
Balance
date
%$
PaySauce Operations Limited07/01/2015SaaS
employment
solutions
100309,278New Zealand31 March
Right Remuneration Limited22/01/2015PAYE
Intermediary
100-New Zealand31 March
Payroll.Kiwi Limited01/08/2017Employee
Share Scheme
Bare Trustee
100-New Zealand31 March
Only PaySauce Operations Limited and Right Remuneration Limited are consolidated in these consolidated
financial statements, as Payroll.Kiwi Limited is a non-trading company.
Weighted average exercise price of share options
Grant DateVesting Date
Balance at
beginning of
the year
Granted
during the
year
Vested
during the
year
Forfeited
during the
year
Balance at
the end of
the year
20 May 202231 March 2022-$0.2842$0.2842-$0.2842
20 May 202231 March 2023-$0.2842--$0.2842
20 May 202231 March 2024-$0.2842--$0.2842
Total‑$0.2842*$0.2842‑$0.2842
*Share strike price at grant date.
The weighted average fair value of options granted during the year, determined using the Black-Scholes valuation
model, was $0.057 per option as at 31 March 2022 (2021: Nil).
The inputs into the model were the market share price at grant date, the exercise price as shown above, expected
annualised volatility of 28%, a dividend yield of 0%, and expected option life of between 2.8 and 4.8 years, and an
annualised risk-free interest rate of 3.39%.
The volatility input is based on a statistical analysis of historical daily share prices, with 28% representing the
annualised volatility over the past 6 months. The impact on the fair value of the options would not have been
materially different had a different time period been chosen.
441,347 options were issued at the end of the period, of which 274,362 shares have been exercised and paid via
a discretionary bonus approved in May 2022, leaving 147,412 share options remaining exercisable. The 147,412
remaining exercisable share options represent the PAYE which will be settled by the Group on each employee’s
behalf. As a result, a PAYE liability has been accrued as follows:
Number of Share options
Grant DateVesting Date
Balance at
beginning of
the year
Granted
during the
year
Vested
during the
year
Forfeited
during the
year
Balance at
the end of
the year
20 May 202231 March 2022-147,412147,412-147,412
20 May 202231 March 2023-146,968--146,968
20 May 202231 March 2024-146,967--146,967
Total‑441,347147,412‑441,347
20222021
Share‑based payment liabilities$000s$000s
Current42-
Non-current26-
Total share‑based payment liabilities68‑

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Annual Report FY2022
22. Funds due to customers and IRD
As a PAYE intermediary, PaySauce collects funds from clients which are payable to both clients’ employees (as the
employees’ net wages and salaries) and the IRD (as the applicable PAYE, student loan and other IRD liabilities).
These funds are included in PaySauce’s cash and deposit balances and in accordance with section RP6 of the
Income Tax Act 2007, PaySauce can earn interest on these funds, but the funds must only be used as follows:
• Payment of net salary or wages to employees of PaySauce’s clients.
• Payment of IRD obligations resulting from pays run on PaySauce software to the IRD, including PAYE
deductions, student loan deductions, superannuation contributions and any other amount of tax withheld from
a payment of salary or wages to IRD.
Under the financial reporting standards movements in these funds do not meet the definition of either investing
or financing activities and so must be classified as operating cash flows. However as stated above the use of these
funds is restricted and they cannot be used to cover other PaySauce expenses, the company has therefore presented
operating cash flows in the Cash Flow Statement as both before and after this movement in funds. The value of
restricted funds at reporting date is represented by funds due to customers and IRD as disclosed in the Statement
of Financial Position.
23. Contingencies
As at 31 March 2022 the Group had no contingent liabilities or assets (2021: $nil)
24. Events occurring after the reporting period
The Group arranged $0.65 million bank term debt facility, expected to be drawn in June 2022. No other adjusting or
significant non-adjusting events have occurred between the reporting date and the date of authorisation.

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Annual Report FY2022
CORPORATE
GOVERNANCE
This section is structured around the principles detailed
in the Code, and explains how PaySauce is applying
the Code’s recommendations. PaySauce documents
referred to in this section are also available online at
https://www.paysauce.com/investor/
Strong corporate governance protects the
Company and as a result our shareholders,
customers, staff, and stakeholders. Our
approach to the recommendations
outlined in the NZX Corporate Governance
Code (the Code) are set out below.
The Board considers that, as at 30 May 2022, the
Company complied with the recommendations set by
the NZX Corporate Governance Code, unless stated in
the sections outlined below, or in PaySauce’s Corporate
Governance Code.

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Annual Report FY2022
Principle 1
Code of ethical
behaviour
“Directors should set high standards of
ethical behaviour, model this behaviour
and hold management accountable for
these standards being followed throughout
the organisation.”
Code of ethics
Our code of ethics exists to help our directors, senior
management, and employees with not just doing well,
but doing good.
This sets the standard of conduct for all our people. It’s
intended to support decision-making that aligns with
PaySauce’s values, business goals, and legal and policy
obligations. The board approves the code of ethics,
which covers:
• conflicts of interest
• accepting gifts or benefits
• protecting company assets
• complying with laws and policies
• maintaining confidentiality
• valuing personnel
• transparency
All new directors and employees receive a copy of the
code of ethics.
Securities trading policy
PaySauce respects the integrity of New Zealand’s
financial markets and insider trading laws. Our securities
trading policy outlines how those laws apply, and the
rules we’ve put in place to help ensure our people follow
the law.
Principle 2
Board composition
and performance
“To ensure an effective board, there should
be a balance of independence, skills,
knowledge, experience.”
The board of directors
The directors are responsible for the corporate
governance practices of the company. The board’s
practices are detailed in the Company’s corporate
governance code, which lays out protocols for board
operations.
This code complies with the relevant recommendations
in the NZX Corporate Governance Code, and is reviewed
annually.
The board’s primary role is to represent and promote
the interests of shareholders, ultimately adding long-
term value to the company’s shares.
The board carries out its responsibilities according to the
following mandate.
• the Board shall have a minimum number of three
directors and a maximum of 10;
• the Board shall have at least two directors ordinarily
resident in New Zealand;
• the Board shall maintain at least two Independent
Directors (as defined in the NZX Main Board Listing
Rules). Where there are eight or more directors, the
board will maintain three or one-third (rounded
down to the nearest whole number) of the total
number of directors, whichever is the greater;
• a majority of the directors should not be executives
of the Company;
• a director should not have any significant conflict
Directors, certain employees, and related parties need
approval from PaySauce to trade in the company’s
shares. Trading is limited to defined “trading windows”.
The directors’ shareholdings and trading of shares
during the year by the directors is published under
Directors’ disclosures. A director or senior manager must
advise the NZX promptly if they trade in the company’s
shares.
of interest that is potentially detrimental to the
Company, other than and to the extent dealt with in
the Corporate Governance Code of the Company;
• the Board seeks diversity in the skills, attributes and
experience of its members across a broad range of
criteria, to represent the diversity of shareholders,
business types and regions in which the Company
operates; and
• the Board elects a Chair, and can replace them at
any time.
• Management must provide the board with accurate
information within the timeframe required for the
board to effectively discharge its duties.
• The effectiveness and performance of the board
and its individual members should be re-evaluated
annually.
As at 31 March 2022 the Board comprised of five
Directors:
• Asantha Wijeyeratne – Executive Director and CEO
• Gavin Thompson – Non-executive Director
• Jacqueline Cheyne – Independent Director (Chair of
Audit & Risk Committee)
• Michael O’Donnell – Independent Director
• Shelley Ruha – Independent Director (Chair of
Board)
Independence of directors is determined by assessing
the directors against the following factors:
• Not currently, or historically (within 3 years)
employed in an executive role with PaySauce;
• Not currently holding a senior role in a provider of
material professional services to PaySauce;
• No current material business relationship (i.e. as a
supplier or customer) to PaySauce;
• Not currently a substantial product holder of
PaySauce or a senior manager of a product holder
of PaySauce;
• No current material contractual relationship with
PaySauce, other than as a director;

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• No close family ties with anyone who would fall into
the above categories;
• Has not been a director of PaySauce for a length of
time that may compromise independence.
Nicholas Lewis resigned as an Independent Director and
Chair of the Audit & Risk Committee, effective 30 Sept
2021.
Michael O’Donnell held the role of Interim Chair of the
Board, effective 1 October 2021 to 17 February 2022.
Shelley Ruha joined the Board as an Independent
Director and Chair of the Board, subject to shareholder
approval at the next Annual Shareholder Meeting,
effective 17 February 2022.
More information on the directors, including their
relevant interests, and shareholdings, is provided in the
Directors’ disclosures section of this report and is on the
company’s website.
Day-to-day management of PaySauce is delegated to
the Chief Executive and the Executive team.
The board’s responsibilities
The primary responsibilities of the board are to:
• provide overall governance and strategic leadership;
• oversee management’s implementation of the
Company’s strategic objectives and performance;
• oversee the development, adoption and
communication of a clear strategy for the Company;
• oversee accounting and reporting systems and
ensure the quality and independence of the
Company’s external audit process;
• adopt and regularly review the risk management
framework;
• appoint a Chair of the Board and the CEO;
• review and approve the Company’s operating
budgets and major capital expenditure;
• adopt and review the Company’s remuneration
policy and other corporate governance documents;
• ensure compliance with the Company’s constitution,
continuous disclosure obligations, and the relevant
laws, listing rules and regulations and auditing and
accounting principles;
• implement and periodically review the Company’s
Code of Ethics, foster high standards of ethical
conduct and personal behaviour and hold
accountable those who engage in unethical
behaviours;
• periodically assess its own effectiveness in carrying
out these functions and the other responsibilities of
the Board.
On appointment to the board by the shareholders, new
directors sign a written agreement that covers the terms
of their appointment.
Every year, the board and sub-committees critically
evaluate their own performance and processes. This
will identify any training opportunities for individual
directors to maintain relevant and up-to-date skills for
their role.
Independent professional advice
With the prior approval of the Chair, each director may
seek independent legal and professional advice, at the
company’s expense, about any aspect of PaySauce’s
operations to assist in fulfilling their duties as a director.
Diversity
The PaySauce board and management are determined
that all staff and all eligible candidates for vacant
positions should have equal opportunity to demonstrate
their skills and experience. This forms the basis of our
diversity policy.
PaySauce embraces uniqueness in our people and
welcomes diversity. We believe that difference builds
resilience and innovation. We encourage our employees
to be curious and open-minded, embracing wide-
ranging perspectives and working to meet the needs of
individuals.
Our approach to diversity is to continually develop a
work environment that supports equality, exchange and
inclusion. We believe in accommodating, rather than
minimising, the different needs of our people.
The Board has considered the need for measurable
objectives for diversity and determined that it is not
yet appropriate to set measurable objectives due to
market conditions and the stage of the company’s
development. That decision will be reconsidered
annually. When appropriate the Board, or a committee
appointed by the Board, will set measurable objectives
for achieving diversity (which, at a minimum, will
address gender diversity). The Board will annually
review those objectives and the Company’s progress in
achieving them. Despite being a small team, there is
diversity across age, gender identity, race, first language,
religion and mobility.
We have achieved the following gender diversity as at 31
March 2022:
Directors
Executive
Leadership TeamEmployees
As at 31 March 2022
Male3312
Female2117
Total5428
As at 31 March 2021
Male438
Female1120
Total5428
Female
Directors
Executive Leadership Team
Employees
Male

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Principle 3
Board committees
“The board should use committees
where this will enhance its effectiveness
in key areas, while still retaining board
responsibility.”
Audit and Risk Committee
The Audit and Risk Committee (“ARC”) assists the board
in financial reporting, and risk and financial/secretarial
compliance.
The ARC makes recommendations to the board
on appointing external auditors to ensure their
independence. The ARC also monitors 5-yearly rotation
of the lead audit partner.
The ARC facilitates communication between the board
and external auditors. The committee’s responsibilities
include:
• reviewing the appointment of the external auditor,
the annual audit plan, and addressing auditor
recommendations
• reviewing publicly released dividend proposals and
financial information
• ensuring that appropriate financial systems and
internal controls are in place.
The ARC must include at least three directors, and
consist of only non-executive directors and have a
majority of independent directors. At least one member
must be a director with an accounting or financial
background.
Principle 4
Reporting and
disclosure
“The board should demand integrity in
financial and non-financial reporting, and
in the timeliness and balance of corporate
disclosures.”
Reporting and disclosure
The board is committed to providing accurate, thorough,
and timely information to existing shareholders and to
the market. This means all investors can make informed
decisions about PaySauce.
As an NZX listed company, PaySauce must comply with
disclosure requirements under the NZX Main Board
Listing Rules. PaySauce recognises the importance
of these requirements in providing equal access for
all investors, or potential investors, to price-sensitive
information.
The disclosure and communications policy outlines
PaySauce’s obligations to meet disclosure requirements.
It also covers related issues, including external
communications.
PaySauce has not provided detailed reporting on
environmental, economic and social sustainability risks.
Whilst paysauce is not yet captured by the mandatory
climate risk disclosure reporting regime that is due to
commence in 2023, management does not consider the
business has material exposure to climate risk given the
nature of our business and the increasing diversification
of our customer base.
The Chair of the Board cannot also be the Chair of the
ARC. The current members are Jacqueline Cheyne
(Chair), Michael O’Donnell, and Gavin Thompson,
of which Jacqueline and Michael are independent
directors.
The committee usually invites the Chief Executive,
Chief Financial Officer, Chief Operating Officer, Finance
Manager, and at least twice a year invites the external
auditors to attend ARC meetings.
PaySauce publishes key governance and other relevant
documents in the investor centre of our website: https://
www.paysauce.com/investor/
Announcements made to the NZX and reports are also
posted on the company’s website.

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Principle 5
Remuneration
“The remuneration of directors and
executives should be transparent, fair and
reasonable.”
The board is responsible for setting individual directors’
fees, and monitoring the remuneration of the Chief
Executive and Executive Team.
PaySauce has in place a remuneration policy, outlining
the key principles that influence remuneration
practices. This can be found in the Company’s Corporate
Governance Code, located on the Company’s website
(at the date of this report, located in section 15 of the
Company’s Corporate Governance Code at https://www.
paysauce.com/investor/).
Further details and disclosures are outlined in the
disclosures section of this document.
Principle 6
Risk management
“Directors should have a sound
understanding of the material risks faced
by the issuer and how to manage them.
The board should regularly verify that
the Company has appropriate processes
that identify and manage potential and
material risks.”
The board is responsible for overseeing internal controls
to manage key risks, and has overall responsibility for
managing risk.
The company maintains a risk register to identify and
manage risk. The Executive Team is responsible for
maintaining this register, and reporting to the board on
a regular basis.
Through the ARC, the board considers the
recommendations of external auditors. The board sees
that those recommendations are investigated and
appropriate action is taken, where necessary.
Principle 7
Auditors
“The board should ensure the quality
and independence of the external audit
process.”
The Audit and Risk Committee (“ARC”) makes
recommendations to the board to appoint an
external auditor. The committee also monitors the
independence and effectiveness of the external auditor,
and reviews and approves any non-audit services they
perform.
The committee meets with the external auditor at least
twice a year to approve the terms of engagement, audit
partner rotation (at least every 5 years) and audit fee,
and to review and provide feedback on the annual audit
plan.
The committee routinely meets with PaySauce’s external
auditor, Grant Thornton, without management present.
Grant Thornton also attends PaySauce’s ASM.
The company continually monitors its internal control
environment.
Principle 8
Shareholder rights
and relations
“The board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer.”
Information for shareholders
The company seeks to help investors understand its
activities, by communicating effectively and providing
clear and balanced information. In addition to interim
and annual reporting, the company also chooses to
release quarterly trading updates to the market.
The company website (www.paysauce.com) provides
an overview of the business and information about
its activities. This includes details of the company’s
services, latest news, investor information, key corporate
governance information, and copies of significant NZX
announcements. The website also provides profiles of
the directors and the Executive Team.
Shareholders have the right to vote on PaySauce’s
major decisions, in line with the requirements of the
Companies Act 1993 and the NZX Main Board Listing
Rules.
Communicating with shareholders
PaySauce works to keep investors well informed, and
regularly provides information about current operations
and future plans. This is achieved through our NZX
market announcements and presentations to retail
investors.
PaySauce sends notice of the ASM to shareholders, and
publishes it on the company website at least 28 days
before the meeting each year.

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Employee remuneration
The table below sets out the number of PaySauce Group employees and former employees who received
remuneration and other benefits, including non-cash benefits and share-based remuneration in excess of $100,000
per annum. Director remuneration is not included in the table below, and instead set out in a separate section
below.
Donations
Cash donations of $5,000 were made by the Group during the year ended 31 March 2022 (2021: $Nil). Donations
in kind of over $110,000 were also given to over 120 charities and non-profit organisations during the period (2021:
$65,000, and 70).
20222021
Remuneration range# Employees# Employees
$100,000 - $109,99922
$110,000 - $119,999-1
$120,000 - $129,99922
$130,000 - $139,999-1
$160,000 - $169,999-1
$170,000 - $179,99911
$190,000 - $199,9991-
$200,000 - $209,9991-
$210,000 - $219,9991-
$250,000 - $259,999-1
$280,000 - $289,999-1
DISCLOSURES

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Board meeting attendance
Board meetings are held in person and/or by teleconference. The Directors attended the following board meetings
during the year ended 31 March 2022:
Note - If a director was not a member of a particular committee at the time of the relevant meetings ‘-‘ has been
recorded.
* Nicholas Lewis resigned as an Independent Director and Chair of the Board, effective 30 September 2021.
** Shelley Ruha joined the Board as an Independent Director and Chair of the Board, subject to shareholder approval
at the next Annual Shareholder Meeting, effective 17 February 2022.
Directors’ share transactions
Directors disclosed, pursuant to section 148 of the Companies Act 1993 and Part 5 of the Financial Markets Conduct
Act 2013, the following acquisitions and disposals of relevant interest in PaySauce ordinary shares during the year
ended 31 March 2022:
DirectorBoard Meetings AttendedARC Meetings Attended
Asantha Wijeyeratne14 of 14-
Gavin Thompson13 of 143 of 3
Jacqueline Cheyne14 of 143 of 3
Michael O’Donnell13 of 143 of 3
Nicholas Lewis*8 of 81 of 1
Shelley Ruha**2 of 2-
Director
Registered holder /
associated entity
Number
of shares
acquired /
(disposed)ConsiderationDateNotes
Asantha WijeyeratneUpakara Family
Trust
(200,000)$0Dec-21Off-market sale of
shares - gifted for no
consideration
Asantha WijeyeratneUpakara Family
Trust
(368,333)$110,500Nov-21Off-market sale of shares
Asantha WijeyeratneUpakara Family
Trust
(666,667)$200,000Dec-21Off-market sale of shares
Michael O’DonnellMichael O’Donnell34,135$10,559Jun-21On-market purchase of
shares
Jacqueline
Robertson Cheyne
New Zealand
Depository
Nominee
16,747$5,000Nov-21On-market purchase of
shares
Jacqueline
Robertson Cheyne
New Zealand
Depository
Nominee
17,183$5,000Dec-21On-market purchase of
shares
Shelley RuhaNew Zealand
Depository
Nominee
141,377$40,250Dec-21Issued prepaid shares
in lieu of director
remuneration

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Directors’ remuneration
The total Directors’ fees and other remuneration received by the Directors for the period ended 31 March 2022 is
outlined below:
Executive Director remuneration
Asantha Wijeyeratne is the Chief Executive Officer, and held this position as at 31 March 2022. He did not receive
any remuneration in his capacity as a Director, but was remunerated as Chief Executive Officer. He received
remuneration and benefits of $215,470 (2021: $179,032).
Insurance of Directors and Officers
PaySauce has a Directors’ and officers’ liability insurance policy in place. This provides insurance for the liabilities of
the Directors and officers for acts or omissions in their capacity as Directors or employees. The insurance policies do
not cover dishonest, fraudulent, malicious, or wilful acts or omissions.
20222021
DirectorDirector fees
Other
remunerationTotalDirector fees
Other
remunerationTotal
Asantha WijeyeratneNil$213,470$213,470Nil$179,032$179,032
Gavin Thompson$40,000Nil$40,000$16,667Nil$16,667
Jacqueline Cheyne$45,000Nil$45,000$23,750Nil$23,750
Michael O’Donnell$51,520Nil$51,520$16,667Nil$16,667
Nicholas Lewis*$37,917Nil$37,917$62,083Nil$62,083
Shelley Ruha**$40,250Nil$40,250NilNilNil
* Nicholas Lewis resigned as an Independent Director and Chair of the Board, effective 30 September 2021.
** Shelley Ruha joined the Board as an Independent Director and Chair of the Board, subject to shareholder approval
at the next Annual Shareholder Meeting, effective 17 February 2022. PaySauce issued ordinary shares to the value
of $40,250 to Shelley remunerate and align her interests with PaySauce shareholders ahead of Shelley’s formal
appointment to the Board.
General Disclosures of Interest
DirectorCompanyNature of interest
Asantha WijeyeratneBuzz Hospitality LimitedDirector
Catalyst IT LimitedShareholder
Cloud Investments LimitedDirector & Shareholder
Manuka Café LimitedDirector
Payroll.Kiwi LimitedDirector
PaySauce LimitedDirector & Shareholder
PaySauce Operations LimitedDirector
Right Remuneration LimitedDirector
Wijeyeratne & Co LimitedDirector & Shareholder
Gavin ThompsonCatalyst Cloud LimitedDirector
Catalyst IT LimitedDirector & Shareholder
Catalyst.Net LimitedDirector
PaySauce LimitedDirector & Shareholder
PaySauce Operations LimitedDirector
Jacqueline CheynePaySauce LimitedDirector & Shareholder
Stride Property LimitedDirector
New Zealand Green Investment FinanceDirector
External Reporting BoardBoard Member
Snow Sports NZChair
Broader PerspectivesDirector
Ministry of Business Innovation and
Employment
Audit & Risk Committee Member
Financial Markets AuthorityMember of the Audit Oversight
Committee
Christchurch City councilAudit & Risk Committee Member

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General Disclosures of Interest (cont.)
DirectorCompanyNature of interest
Michael O’DonnellPaySauce LimitedDirector
Realestate.co.nz LimitedDirector
Brewwell LimitedDirector
Radio New Zealand LimitedDirector
NZ Trade + Enterprise / G2GDeputy Chair
Serato Audio Research LimitedDeputy Chair
Stuff MediaNational Columnist
Kiwi Wealth GroupDirector
KiwiWealthDirector
High Tech New ZealandTrustee
CabinetChair of the Cybersecurity Advisory
Committee
Nicholas Lewis*8 Interactive LimitedShareholder
Celsias LimitedShareholder
Common Ledger LimitedShareholder
Dropit LimitedShareholder
Good Bitches Baking TrustTrustee
Kiwi Insurance LimitedDirector
Learnspring LimitedShareholder
Let Use It LimitedShareholder
PaySauce LimitedFormer Director & Shareholder
PaySauce Operations LimitedFormer Director
Pioneer Energy LimitedDirector
PledgeMe LimitedShareholder
RayGun LimitedShareholder
RightWay LimitedShareholder
Woodward Partners LimitedDirector & Shareholder
DirectorCompanyNature of interest
Shelley RuhaPaySauce LimitedDirector, Independent Chair &
Shareholder
TaxGift LimitedChair
New Zealand Rural Land Management
Limited
Independent Chair
Hobson Wealth Holdings LimitedIndependent Director
Hobson Wealth Partners LimitedIndependent Director
Partners Group Holdings LimitedIndependent Director
Partners Life LimitedIndependent Director
Heartland Bank LimitedIndependent Director
9 Spokes International LimitedIndependent Director
* Nicholas Lewis resigned as an Independent Director and Chair of the Board, effective 30 September 2021.
Note - In some cases, shareholding indicated above may not be held directly. Furthermore, there may be
subsidiaries of the above entities in which the Directors are also interested, without necessarily being a Director,
Shareholder, or Officer of that entity.
Director interests in shares
Directors held the following relevant interests in PaySauce ordinary shares at 31 March 2022:
DirectorSecurities held by Director or associated entity
Asantha Wijeyeratne39,348,461
Gavin Thompson2,276,978
Jacqueline Cheyne62,851
Michael O’Donnell34,135
Nicholas Lewis*847,809
Shelley Ruha141,377
* Nicholas Lewis resigned as an Independent Director and Chair of the Board, effective 30 September 2021.

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Substantial product holderShares held% of issued shares
Wijeyeratne & Company Limited27,750,43320.02%
Perpetual Trust Limited21,466,66715.49%
Gondolin Trust16,729,63112.07%
Cloud Investments Limited11,598,0288.37%
New Zealand Central Securities7,475,7065.39%
Substantial product holders
The substantial product holders in PaySauce ordinary shares as at 31 March 2022 were as follows:
RankShareholders/InvestorsShares held% of issued shares
1Wijeyeratne & Company Limited27,750,43320.02%
2Perpetual Trust Limited21,466,66715.49%
3Gondolin Trust16,729,63112.07%
4Cloud Investments Limited11,598,0288.37%
5New Zealand Central Securities7,475,7065.39%
6New Zealand Depository Nominee3,200,1912.31%
7Ian Stewart Frame & Pamela Anne Frame2,652,7651.91%
8Charlotte Anne Lockhart2,485,1831.79%
9Gavin Thompson2,276,9781.64%
10Woodward Family2,120,0001.53%
11Krishnakumar Guda1,870,0001.35%
12Equilibriumca Trustees Limited1,781,8421.29%
13Bhagwanji Bhula Rama1,645,0001.19%
14FNZ Custodians Limited1,507,3521.09%
15Malcolm William Campbell1,500,0001.08%
16Hugh Anthony Pradeep Fernando1,471,1021.06%
17Cloud Investments Two Limited1,457,5571.05%
18Matthew Gardner1,416,1641.02%
19Victoria Ann Taylor1,201,7700.87%
20David Russell Stewart & Adrienne Ruth Stewart1,158,0000.84%
Twenty largest equity security holders
The 20 largest holders of PaySauce ordinary shares as at 31 March 2022 were as follows:

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ShareholdersShares
Size of holding (shares)Number%Number%
1 - 10,00098375.10%1,800,7331.30%
10,001 - 50,00022216.96%5,116,6813.69%
50,001 - 100,000433.28%3,552,9522.56%
100,001 - 500,000322.44%8,193,0375.91%
500,001 - 1,000,00090.69%7,156,0475.16%
1,000,001 and over201.53% 112,764,36981.37%
Totals1,309100.00%138,583,819100.00%
Spread of security holders
The spread of holders of PaySauce ordinary shares as at 31 March 2022 are listed below:
NZX waivers from listing rules
No waivers were granted to PaySauce by NZX during the year ended 31 March 2022, and there were no waivers that
PaySauce relied upon during this period.

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COMPANY
DIRECTORY
Directors:
Asantha Wijeyeratne
Gavin Thompson
Jacqueline Cheyne
Michael O’Donnell
Shelley Ruha
Registered Office:
21-23 Andrew Avenue
Lower Hutt, 5010
New Zealand
Website:
www.paysauce.com
Auditor:
Grant Thornton New Zealand Audit Limited
Stock Exchange:
NZX
Share Registrar:
Link Market Services Limited
80 Queen Street
Auckland, 1010
New Zealand
NZ Company Number:
1719868
NZBN:
9429034458099

www.paysauce.com


---

Results Presentation
YEAR ENDED 31 MARCH 2022

Disclaimer
●The information in this presentation is of a general nature and does not constitute financial product advice, investment advice
or any other recommendation. Nothing in this presentation constitutes legal, financial, tax or other advice.
●This presentation should be read in conjunction with, and is subject to PaySauce’s Annual Report, market releases and
information published on PaySauce’s website - www.paysauce.com
●This presentation may contain forward looking statements about PaySauce and the environment in which PaySauce
operates, which are subject to uncertainties and elements outside of PaySauce’s control - PaySauce’s actual results or
performance may differ materially from these statements. PaySauce gives no warranty or representation as to its future
financial performance or any future matter.
●This presentation may include statements relating to past performance, which should not be regarded as a reliable indicator
for future performance.
●This presentation may include information from third parties believed to be reliable; however, no representations or
warranties are made as to the accuracy or completeness of such information.
●While reasonable care has been taken in compiling this presentation, none of PaySauce nor its subsidiaries, directors,
employees, agents or advisors (to the maximum extent permitted by law) gives any warranty or representation (express or
implied) as to the accuracy, completeness or reliability of the information contained in it, nor takes any responsibility for it. The
information in this presentation has not been and will not be independently verified or audited.
●No person is under any obligation to update this presentation at any time after its release to you or provide you with further
information about PaySauce.

Please refer to the Appendix for definitions of key metrics used in this presentation.
All currency amounts are in New Zealand Dollars unless stated otherwise.

FY22 result highlights
All key SaaS performance metrics continued to improve ...
... delivering positive operating cash flows in the final quarter
83% YOY
Annualised Recurring Revenue (ARR)
$4.5M
SmoothPay
Acquisition
79% YOY
Customers
6,052
96% YOY
Total Customer LTV
$30.3M
$1.97M
PayNow - Earned Wages Accessed
67% YOY
LTV : CAC Ratio
14.2 : 1

4
PaySauce at a glance
PaySauce provides SaaS solutions for people at work in 14 jurisdictions across the Asia-Pacific region
PaySauce is
Connected
Automated Payday
filing
Integrated Accounting
Solutions
Partnering with time
capture solutions
PaySauce leverages
Channels
Strategic relationship
with Federated
Farmers
Strong advocacy
throughout rural
community
PaySauce has large
Market opportunity
1 in 4 employing dairy
farms
Growing fast in
construction, hospo,
retail
6,052 customers with
over 60,000
employees
Strategic relationship
with CAANZ
PaySauce is Results
Oriented
Cash flow positive in
Q4
$2m earned wages
accessed early
Entered markets
overseas
Streamlined banking
Earned Wage Access
with BNZ
40% of customers
from accounting firms
Strategic Partnership
with Xero and Figured
Huge International
TAM
9% of customers are
international
Acquired SmoothPay
Transformed from
startup to scaleup

Business Update

SmoothPay Acquisition
●Successfully completed 31 May 2021
●Added 1,300 customers to our portfolio
●Expanded our customer footprint into the Pacific territories and Australia
●9% of our customer base is now international using the goPayroll product
●Added expertise in international payroll development
●Successfully aligned pricing across the two product lines post acquisition
●For a consideration of $375k of PaySauce ordinary shares, being a 1.5x
revenue multiplier

PaySauce evolved with the changed operating conditions
Business Impacts
●Growing compliance burdens for
SMEs, particularly in response to
COVID payments
●Companies need cloud-based
payroll systems that are agile and
innovative, and give them
flexibility to work from multiple
locations
●Interest income received on PAYE
funds held on behalf of customers
drives up ARPU
●Customers’ staff advocate for
PaySauce when they change
employer

Response & Positioning
Operating Conditions
●COVID impacted
employer/employee
engagement as staff isolated
●Economic inflation at around 3x
historical wage inflation
●Interest rates trended up towards
the end of the year
●Lowest unemployment rates in
over a decade resulted in wage
and salary cost pressures
●Employers having to move fast or
risk losing their workers in an
increasingly competitive labour
market

“I’ve never seen a time when payroll was more critical to the successful functioning
of SME businesses” Asantha Wijeyeratne (PaySauce CEO)
Response & Positioning
●PaySauce continues to invest in
people and product as the
business transitions from start up
to scale up
●PaySauce is uniquely positioned
to benefit as the demand for
salary reviews, fast-tracked
wage-band reviews or special
payments continues to increase
●PaySauce continue to treat
customers’ staff as customers

Invested in scalable growth
People and product
●Acquired the goPayroll product and key talent in the SmoothPay acquisition
●R&D accounted for 16% of FY22 operating revenue
●Invested in people and internal customer service systems - enhancing our ability
to scale our support team and provide a better customer experience
●Continued our investment in new channels - with an increased focus on our
newly launched partner programme
●Enhanced the user experience through partner integrations, removing friction
and attracting new customers
We’re reinvesting profits back into the business building for
scalable growth

●PaySauce is the only payroll company with whom Xero, ASB and BNZ partner
●Industry experts like Dairy Womens Network and Federated Farmers have gained us
access to the first targeted vertical, being the rural sector
●Our modern platform allows rapid integrations with specialist solutions such as Akahu,
Tatou, Figured and Xero, Farm Focus and Reckon which remove friction for our customers
●Accounting partners take advantage of our strategic partnership with CAANZ and a tiered
programme of support and co-promotion which adds increased benefit to our mutual
customers
Partner network

Large and growing TAM
●SMEs constitute over 90% of all businesses by number in all OECD countries
1

●New Zealand is home to >100,000 Micro entities (employing 1-5 employees ) that employ >240K staff
●Australia is home to 700,000 Micro entities (1-4 staff) - of these >92,000 were created in 2020-21 alone
●PaySauce had 3,500 NZ Micro entities and 50 Australian Micro entities as active customers as at 31 March 2022
●Payroll software is becoming a necessity for SMEs - paying staff and Inland Revenue accurately and on time are
business-critical functions
●Real time and remote access is now critical: In 2021, the use of Cloud payroll exceeded that of in-house processes.
2

●The SME compliance burden is growing as a result of an international shift towards payday reporting of tax
obligations like Single Touch Payroll (STP) in Australia and Fair Pay Agreements or awards in both New Zealand and
Australia.
●This growing compliance burden is expected to increase the frequency of PAYE filing obligations for SMEs = growth
opportunity for PaySauce
1 OECD SME Outlook Highlights Policy Highlights
2 2021 Global Payroll Complexity Index

Financial Results

*excludes funds due to customers and the IRD, collected in performing our role as a PAYE intermediary,
FY22 result summary
FY22 ($000s)FY21 ($000s)% change
Total recurring revenue3,3992,096 62% ￪
Gross margin2,3421,49565% ￪
Gross margin %69%68%1pp ￪
Loss before tax, depr & amort(881)(1,427)(38%) ￬
Net loss(1,282)(1,688)(24%) ￬
Cash receipts from customers3,0622,12144% ￪
Net operating cashflow*(666)(1,118)(40%) ￬

Accelerating ARR growth rates
●PaySauce processing fees
have grown at an accelerated
pace in the last four quarters
●Interest rates have returned
to pre-COVID levels and will
have an increasing impact on
overall ARR
●Price increases applied to the
acquired SmoothPay
business with take full affect
when all annual subscriptions
have renewed

Quarterly Revenue Growth continues to accelerate
●Achieved operational break-even in the last quarter
●Revenue growth accelerated with increased customers
and increased ARPU
●Price increases on processing fees kept ARPU
sufficiently high to offset the lower average ARPU on
the 1,300 customers acquired through the SmoothPay
acquisition
●Interest income was flat as the interest rate decline
offset balance growth. Interest rates returned to
pre-COVID levels towards the end of the year
●Normalised* expense growth remains constant
between 16% and 23%
●Introduced an ESS to align staff incentives with
company objectives
●Careful stewardship of shareholder funds has kept
expenses flat over the quarter
*FY22 Employee Share Scheme cost ($200k) excluded

Customer growth drives significant increase in total customer LTV
YoY improvements
Customers ↑ 79%
Churn ↓ .04 pp
Margin % ↑ 1 pp
ARPU ↑ 2%

Total Customer LTV
FY22
$30.4M
Total Customer LTV
FY21
$15.5M
96% ↑ YoY
$14.9M
Driven by

Appendix

Glossary
Recurring Revenue: Recurring revenue is revenue that is expected to repeat each period into the future. For PaySauce, this is directly linked to the number of
customers, their size, and the number of pays they run using the PaySauce payroll products. There are currently two sources of recurring revenue - processing fees and
interest income.

ARR: The total recurring revenue for the last calendar month of the reporting period, multiplied by 12.

ARPU (monthly): Average revenue per user (monthly) is the total recurring revenue for the month, divided by the total customers processing payroll that month.

Gross margin: When discussed as a SaaS term, is the recurring revenue of the business, less the cost to serve customers. This is often then expressed as a percentage,
where the gross margin is divided by the recurring revenue.

Churn (monthly): Churn is expressed as a percentage calculated as the net reduction of customers in a calendar month divided by the total customers at the start of
that month.

LTV: Lifetime value is the estimated value of a customer over its lifetime with PaySauce. This is calculated by taking the monthly ARPU multiplied by the gross margin
percentage, then divided by the monthly churn percentage.

Total Customer LTV: Total customer lifetime value is the lifetime value multiplied by the total customers.

LTV : CAC: This ratio reflects the return on investment for customer acquisition. It is calculated by dividing the lifetime value of a customer by the customer acquisition
cost (per addition).

PayNow: A unique feature in the PaySauce mobile application, which lets employee’s access the money they’ve already earned, effectively letting them choose their
own payday on demand. Refer to paysauce.com/paynow for further details.

Note - the terms and metrics above are Non-Generally Accepted Accounting Principles (non-GAAP) measures and should not be viewed in isolation, not considered
substitutes for measures reported in accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS). Refer to the PaySauce
Annual Report for further information.