Slides
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Annual Meeting 2026 Xero Limited
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Important notice This presentation is given on 27 August 2026 on behalf of Xero Limited (Xero) (ASX:XRO) (Company number NZ 183 0488, ARBN 160 661 183) Information in this presentation: ● is for general information purposes only, and is not an offer or invitation for subscription, or purchase of, or a recommendation to invest in, Xero securities ● should be read in conjunction with, and is subject to, Xero’s latest and prior interim and annual reports, including Xero’s Annual Report for the period ended 31 March 2026, and Xero’s market releases on the ASX ● includes forward-looking statements, including opinions, estimates and indications of, and guidance on, future earnings and financial information about Xero and the environment in which Xero operates, that involve known and unknown risks and which are subject to uncertainties and contingencies outside of Xero’s control — Xero’s actual results, outcomes or performance may differ materially from these statements. Any forward-looking statements are provided as a general guide only and are not guarantees or predictions of future performance or statements of fact. Forward-looking statements provided in this report are based on assumptions and contingencies, including those set out in this report. Other factors which may affect Xero’s outcomes and developments also include: general economic conditions in the markets in which Xero operates; competition in the markets in which Xero operates; the continuing growth in the markets in which Xero operates; the implications of regulatory risks in the businesses of Xero; technological changes taking place in Xero’s industry; future changes to Xero’s products and services; the risk of cyber and data security issues; the geopolitical environment and exchange rates. ● includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance ● may contain information from third parties believed to be reliable, but no representations or warranties are made as to the accuracy or completeness of such information ● includes Non-GAAP measures as we believe they provide useful information for readers to assist in understanding Xero’s financial performance. Non-GAAP financial measures do not have a standardised meaning and should not be viewed in isolation or considered as substitutes for measures reported in accordance with NZ IFRS. These measures have not been independently audited or reviewed T o the maximum extent permitted by law, Xero makes no representation, assurance or guarantee in connection with, and disclaims all responsibility for, the accuracy, completeness or likelihood of fulfilment of any forward-looking statement or any outcome expressed or implied in any forward-looking statement or any assumptions on which a forward-looking statement is based. All information in this presentation is current at 31 March 2026, unless otherwise stated. All currency amounts are in NZ dollars, unless otherwise stated. Due to rounding, numbers in this presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. See page 21 for a glossary of the key terms used in this presentation. 2
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Board of Directors 3 David Thodey, AO CHAIR INDEPENDENT NON-EXECUTIVE DIRECTOR Nominations and Governance Committee (Chair) Audit and Risk Committee Steven Aldrich INDEPENDENT NON-EXECUTIVE DIRECTOR Audit and Risk Committee Susan Peterson INDEPENDENT NON-EXECUTIVE DIRECTOR People and Remuneration Committee (Chair) Nominations and Governance Committee Anjali Joshi INDEPENDENT NON-EXECUTIVE DIRECTOR People and Remuneration Committee Brian McAndrews INDEPENDENT NON-EXECUTIVE DIRECTOR People and Remuneration Committee Nominations and Governance Committee Dale Murray, CBE INDEPENDENT NON-EXECUTIVE DIRECTOR Audit and Risk Committee Mark Cross INDEPENDENT NON-EXECUTIVE DIRECTOR Audit and Risk Committee (Chair) People and Remuneration Committee
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Agenda Sukhinder Singh Cassidy Chief Executive Officer02. CEO update 01. Chair address David Thodey Chair 03. Resolutions 04. Q&A 4
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Using the online platform Voting Get a Voting Card Get a Voting Card Download the Online Guide at xero.com/investors or under Downloads Questions Help number1800 990 363 If you are calling from Australia +61 1800 990 363 If you are calling from outside Australia Ask a question ? 5
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David Thodey Chair Chair address
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CEO update Sukhinder Singh Cassidy Chief Executive Officer
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Rule of 401Adjusted EBITDAOperating revenue 1. Rule of 40 is defined as the sum of annual revenue growth percentage in constant currency and free cash flow margin percentage (free cash flow as a percentage of revenue) 2. For details on calculation see slide 41 3. Refer to slide 44 in appendix for further details Execution across the board: growth, efficiency and US acceleration in FY26 Revenue growth broad based and sustained Strong Adj-EBITDA growth, absorbing Melio investment $757m +18% or +$116m YOY headline (+30% or +$191m YOY organic) 48.5% +4.2pp YOY headline (36.0% Pro-forma)2 $2,753m +31% YOY headline (+21% YOY organic, +19% CC) Organic refers to performance excluding the contribution of Melio in FY263 Pro-forma refers to performance if Xero + Melio were combined for the full period3 8
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● Equipped Xeros with AI education + automation tools to increase internal productivity ● Continued simplifying our organisational matrix to empower our regions ● Evolved our product and technology team structure positioning Xero for future success ● JAX available to all eligible users globally2 supporting new AI features — over 500k customers have adopted ● Partnered with Anthropic to integrate Claude’s advanced AI reasoning directly into Xero ● Released live in-product chat capability for customers3 with access to immediate AI-powered answers ● Optimised sales motions and scaled data-driven marketing across direct and partner channels ● Added Syft Analytics for Xero partners into eligible business plans ● Enhanced direct acquisition strategy by improving the Xero mobile experience ● Launched bill payments powered by Melio ● Introduced Xero Analytics with customisable AI powered insights ● Launched US embedded payroll solution (beta) through Gusto ● Introduced Xero Simple for MTD for IT1 3x3 traction accelerating with payments scale, US stepchange and focus on innovative AI solutions Win the 3x3 A winning GTM playbook Focused bets to win the future Unleash Xero(s) to win 1. In the UK 2. In beta 3. In the US, and those in their first 90 days in UK + ANZ 9
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Strong US progress allows us to step up brand investment in FY27 $186m FY24 FY25 FY26 $136m 13% 273k1 314k Pro-forma Xero + Melio US gross profit ($m) 373k 25% 30% FY24 FY25 FY26 $112m 1. FY24 adjusted for long idle subscribers removed in H1 FY25 to assist in showing underlying growth trends, for further detail refer to page 29 of Xero’s FY26 Annual Report Xero US standalone ● On track to achieve synergies & deliver FY28 run-rate break even STRONG MELIO PROGRESS Revenue growth (%) Customers (000s) ● Incremental spend of up to NZ$55m, bringing planned FY27 total to US$50m FY27 US BRAND SPEND 10
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Agent capabilities across JAX External integrations into Xero Deterministic engine SMBs + ABs Xero app: Financial operations for SMBs GTM layer Vertical platform layer LLMs Infrastructure layer General AI assistants Xero GTM: ~5m+ customers & growing Foundation Enterprise LLMs (Anthropic, OpenAI, Google) are an input into our value chain Accounting Payroll Payments Ecosystem Customer context Global scale Xero’s SMB customers are not billed by seats Domain expertise 3 JTBD combined = more effective and efficient System of record = ‘Source of truth’ T rusted experts in compliance Deep infra capabilities Xero’s opportunity is to be the trusted O/S for the agentic era Data layer Enriched & verified data across 1st party & 3rd party sources Bank feeds T ax APIs Payment rails Ecosystem Detect Record Reconcile Comply 20yrs of data New distributionchannel for Xero Xero’s competitive advantages 11
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Melio is expected to reach Adj-EBITDA breakeven on a run-rate basis in H2 FY286,7 Xero reiterates its FY28 aspirations and Melio breakeven guidance The combined business is expected to significantly accelerate US revenue growth and gives us the opportunity to more than double Xero’s FY25 group revenue in FY28 excluding anticipated revenue synergies1, 2 This outcome is expected to support our aspiration to deliver greater than Rule of 40 outcomes for the group in FY283, 4, 5 1. Anticipated FY28 revenue synergies are expected to be ~US$70m, for more detail refer to page 27 of the Investor Presentation lodged with the ASX on 25 June 2025. Assuming constant currency conversion of NZ$/US$ 0.57, NZ$/AU$ 0.91 and NZ$/GBP 0.46 2. FY25 revenue was NZ$2,103m. This statement applies to FY28 only and no implication should be made relating to any other financial year 3. In the interim period prior to FY28, Xero expects to deliver below Rule of 40 outcomes on a pro-forma basis (pro-forma refers to adjusting for inorganic revenue growth benefits from the time of transaction completion by comparing to a prior year revenue base that fully incorporates Melio's revenue) 4. Assessed including both expected revenue and expected cost synergies outlined on page 27 of the Investor Presentation lodged with the ASX on 25 June 2025 5. Rule of 40 is defined as the sum of annual revenue growth percentage in constant currency and FCF margin percentage (free cash flow as a percentage of revenue) 6. Melio Adj-EBITDA definition aligns with the Xero group definition, for further detail refer to page 25 of Xero’s FY26 Annual Report. This guide aligns with Xero’s assumptions outlined in its FY28 aspiration statement and excludes synergies 7. Run-rate breakeven refers to at least one month of positive Adj-EBITDA contribution to the Xero group during the referenced period 12
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FY27 Outlook FY27 Operating revenue is expected to be between $3,620m and $3,730m FY27 Adjusted-EBITDA is expected to be between $860m and $920m This includes incremental US Brand spend of up to ~NZ$55m Over FY27 Xero expects a higher than historical weighting towards H2 Product capitalisation rate expected to be similar to long term range. D&A expense estimated at ~$465m Refer to FY26 Investor Pack for further details including supporting assumptions and qualitative commentary 13
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Resolutions 14
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Resolution 1 Auditor’s fee and expenses That the board is authorised to fix the fees and expenses of Ernst & Young as auditor for the ensuing year *34,075 of which are held by the Chair of the Meeting who intends to vote in favour of the resolution For 114,278,523 98.55% 1,631,896 1.41% 49,664 0.04% Against Discretionary* 15
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Resolution 2 Re-election of Mark Cross That Mark Cross, retiring from office as a director of Xero at the close of the Meeting and, being eligible, be re-elected as a director of Xero *35,023 of which are held by the Chair of the Meeting who intends to vote in favour of the resolution For 95,192,842 82.10% 20,702,726 17.86% 50,612 0.04% Against Discretionary* 16
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Resolution 3 Increase the non-executive directors’ fee capThat, approval be given for all purposes, including clause 25.1 of Xero’s Constitution and ASX Listing Rule 10.17, for the maximum aggregate amount of remuneration that may be paid to non-executive directors of Xero from be increased by NZ$1,000,000, from NZ$3,300,000 to NZ$4,300,000 per annum Note: A voting exclusion applies to this resolution *15,422 of which are held by the Chair of the Meeting who intends to vote in favour of the resolution For 115,199,468 99.43% 632,930 0.55% 30,811 0.03% Against Discretionary* 17
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Resolution 4 Re-approval of the US Incentive Scheme That the Xero Limited USA Incentive Scheme, as amended and restated by the Board on 13 May 2026 be approved *14,057 of which are held by the Chair of the Meeting who intends to vote in favour of the resolution For 110,370,196 95.28% 5,439,860 4.70% 29,446 0.03% Against Discretionary* 18
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Resolution 5 Adoption of the Remuneration Report That the Remuneration Report contained in the FY26 Annual Report be adopted Note: Xero is putting this resolution to shareholders voluntarily as a matter of good governance. This is an advisory resolution and the outcome of the vote will not bind the Board or Xero. A voting exclusion applies to this resolution *16,040 of which are held by the Chair of the Meeting who intends to vote in favour of the resolution For 34,014,469 29.35% 81,836,253 70.62% 31,229 0.03% Against Discretionary* 19
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People and Remuneration Committee Chair address Susan Peterson Independent Non-Executive Director People and Remuneration Committee (Chair)
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Q&A
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Glossary Adjusted EBITDA Adjusted EBITDA (a non-GAAP financial measure) is provided as Xero believes it provides useful information for users to understand and analyse the underlying business performance. Adjusted EBITDA is calculated by adding back net finance expense, depreciation and amortisation, and income tax expense, as well as certain non-cash, revaluation, other accounting adjustments and one-off charges to net profit/(loss) Average revenue per customer (ARPC) Average revenue per customer (ARPC) is calculated as AMRR at 31 March divided by the number of customers at that time and divided by 12 to get a monthly view Constant currency (CC) Constant currency comparisons for revenue are based on average exchange rates for the 12 months ended 31 March 2025. Comparisons for ARPC, AMRR and L TV on a constant currency basis use exchange rates at 31 March 2025 3x3 strategy A key strategic priority for Xero in FY25-27, Win the 3x3 refers to our focus on completing the 3 core jobs to be done (Accounting, Payments and Payroll) across our 3 primary markets (Australia, UK & US) Customers Customers include Xero customers and Melio direct payments customers. A Xero customer means each unique subscription to a Xero-offered product that is purchased by a customer (eg, small business owner or accounting partner), and which is, or is available to be, deployed in supporting an underlying entity (eg, a business or trust). Customers that have multiple subscriptions to integrated products on the Xero platform are counted as a single customer. The Melio direct payments customer number is a Quarterly Active Customer metric, defined as a user that was monetised during that period by either making a payment and/or paying subscription fees during the final quarter of the reporting period. Melio’s direct payments customer metric does not include any customers associated with syndication partnerships, as these are third-party relationships. Free cash flow (FCF) Free cash flow (FCF) is defined as cash flows from operating activities less cash flows used for investing activities excluding cash used for acquisitions of, and investments into, businesses and strategic assets GAAP Generally accepted accounting practice GTM A go-to-market (GTM) strategy details the action plan for reaching target customers and achieving competitive advantage for specific products or services. It encompasses strategies for sales, marketing, distribution, pricing and customer engagement JAX ‘Just Ask Xero’, Xero’s GenAI powered smart business companion JTBD Jobs to be done (JTBD) reflect the jobs that are most important to current customers and possible future customers of Xero from their perspective, and agnostic of Xero. It reflects the awareness among customers of what it takes to ensure a business survives and thrives LLMs Refers to Large Language Models Organic Organic refers to performance excluding the contribution of Melio in FY26 Pro-forma Pro-forma statements are unaudited and are created to illustrate the impact if Melio and Xero were combined from the start of Xero’s 2024 Financial Year. Financial information contained in this Presentation on a pro-forma basis is unaudited, other than information relating only to Xero or the Group, or unless otherwise stated Rule of 40 Rule of 40 is defined as the sum of annual revenue growth percentage in constant currency and free cash flow margin percentage (Free cash flow as a percentage of revenue) 23
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Simon Fitzgerald Communications simon.fitzgerald@xero.com +61 460 294 680 Contact Nicole Mehalski Investor Relations nicole.mehalski@xero.com +61 400 947 145