CREDIBLE LABS INC BUY. Partnership Marketing Strategy Paying Off EVENT COMPANY UPDATE HIGHLIGHTS INVESTMENT VIEW. Q4 Activities Report.

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1 CREDIBLE LABS INC BUY Partnership Marketing Strategy Paying Off Diversified Financials / Other Diversified Financial Services 31 January 2019 COMPANY UPDATE Ticker CRD Stock Price $0.750 Target Price $1.470 Forecast Capital Return 96.0% Forecast Dividend Yield 0.0% Estimated Total Return - 12 Mth Forward 96.0% Company market data Market Cap. $194.2m Free Float (%) 51.0 Enterprise Value $153.1m 52 Week Range $ $1.27 Shares Out m Avg. Daily Value $0.0m Estimates changes 2017a 2018e 2019e 2020e Core NPAT - old (5.1) (17.0) (19.7) (18.0) Core NPAT - new (5.1) (16.0) (17.6) (17.8) % Change nm nm nm nm Core EPS dil. ( ) - old (1.9) (6.2) (6.8) (6.8) Core EPS dil. ( ) - new (1.9) (6.2) (6.8) (6.8) % Change nm nm nm nm DPS ( ) - old DPS ( ) - new % Change All figures are in US Dollar unless otherwise specified. Share price performance Credible Labs Inc vs. AS51 (rebased index) EVENT Q4 Activities Report. HIGHLIGHTS CRD originated a second consecutive quarter of record closed loan volume ( CLV ) in Q4 of $368m (+108% YoY). Q4 CLV was up 4% on Q3, despite the fact that Q3 is seasonally strongest quarter in student loan origination. The muted seasonality impact implies strong growth in the personal loans and student loan refinancing marketplaces to completely offset the seasonal decline in student loan origination. CRD s mortgage refinancing footprint has now expanded to 34 states representing 77% of mortgage originations in the US following its launch in September We expect the mortgage vertical to ramp up significantly over the next few years, similar to CRD s experience in student loan refinancing and personal loans. CRD also stated that the mortgage purchase vertical is set to launch in 1H19. Importantly, CRD will be able to leverage its existing software investment, lender panel and broker licensing from mortgage refinancing which provides for a much more efficient development roadmap. INVESTMENT VIEW We think Credible enters 2019 with a significantly de-risked commercialisation profile following the strong finish to The rapid growth in CLV demonstrated strong execution in repositioning the marketing strategy towards partnership channels as well as the successful ramp-up of the substantially larger personal loans vertical. Additionally, Credible will also have the mortgage refinancing marketplace ramping up following its launch in September 2018 with management seeking to capitalise on its first mover advantage as a lender-integrated marketplace. Our target price increases to $1.47 as we factor in higher CLV following the Q4 result. Y/E Dec a 2018e 2019e 2020e Analyst Brendon Kelly, CFA Brendon.Kelly@moelisaustralia.com EBITDA (5.1) (16.0) (16.5) (15.4) EV/EBITDA nm nm nm nm Core NPAT (5.1) (16.0) (17.6) (17.8) Core EPS (Diluted) ( ) (1.9) (6.2) (6.8) (6.8) P/E nm nm nm nm EPS growth % 10.2% (0.3%) DPS ( ) Yield 0.0% 0.0% 0.0% 0.0% DPS growth Dividend Payout Ratio 0.0% 0.0% 0.0% 0.0% All figures are in US Dollar. MOELIS AUSTRALIA SECURITIES PTY LTD AFS LICENCE

2 QUARTERLY ACTIVITES UPDATE Highlights Credible originated record CLV of $368m in Q4 (+108% YoY, +4% QoQ). This was impressive growth as it completely muted any impacted of seasonality in student loan origination as was experienced in the previous year (4Q17 CLV -22% QoQ). The strong growth was attributed to student loan refinancing and personal loans. While Credible did not provide a breakdown of closed loan volume by product, we anticipate that personal loans contributed a much larger share of the closed loan volume mix in Q4 relative to previous quarters as it ramps up off a lower base. The overall opportunity in personal loans is significantly higher than student loan refinancing with annual originations of $110bn and $10bn respectively. Overall, we think the Q4 growth offers strong validation of management s focus on its proprietary partnership marketing channels following a flat 1H18 as the company pulled back on spend following a significant increase search engine advertising costs. CLV from Credible s marketing partnerships was up 175% between 4Q17 and 4Q18. Figure 1: Closed Loan Volume (US$m) Q17 4Q17 1Q18 2Q18 3Q18 4Q18e Growth - QoQ (22%) 10% (3%) 89% 4% Growth - YoY n/a ~(1%) 56% 108% Source: Company, Moelis Analysis Other key highlights included: Cumulative user accounts of 1.26m (+77% YoY, +16% QoQ). As the product base expands, there will be an opportunity for Credible to capitalise on its user base for efficient cross-selling opportunities. Financial partners of 40 at year end (Moe estimate, +54% YoY, + 5% QoQ). Adding lender depth improves conversion through better pricing for consumers and allowing Credible to monetise prospective borrowers that may have otherwise been turned away (e.g. through adding sub-prime lenders). Mortgage refinancing now licensed in 34 states following September 2018 launch. We expect mortgages to become the dominant driver of Credible s business over the longer term given the scale of the opportunity ($1,700bn annual originations vs student loan refinancing $10bn). Purchase mortgage marketplace launch expect in 1H19. Our estimates had previously factored in purchase mortgage from Importantly, Credible will be able to leverage its existing software investment, lender panel and broker licensing from mortgage refinancing which provides for a more efficient and expedited development roadmap. Positive operating cash flow. This was the first quarter Credible had been OCF positive. Although noting this included $2.3m of receivables unwinding, we think this highlights the scalability of the platform and strong cost discipline. Strong cash position. Credible has a cash position of $29.6m as a December which we estimate will give it at least 2.5 years of cash to pursue ongoing growth. 2

3 Credible s appeal to marketing partners and its ability to pay for advertising inventory greatly increases as it improves conversion rates through expanding its lender panel, product verticals and geographic coverage. We think this will create a strong network effect across its marketing which will generate ongoing revenue growth in the future. Changes to Estimates Credible has guided to growth in employees in 2019 being similar to 2018 (increase from 100 to 122 people, +22%). This highlights the scalability of the platform given that we expect revenue growth of 51% in We have raised our revenue and closed loan volume estimates for Credible to reflect the higher than expected growth in Q4. Note that we only assume $0.9m in revenue from mortgages in Figure 2: Estimate Changes Year End Dec 2017a 2018e 2019e 2020e Closed Loan Volume (US$m) Previous 787 1,002 1,516 2,321 New 787 1,105 1,665 2,395 Change % % 9.9% 3.2% Revenue (US$m) Previous New Change % - 8.5% 8.6% 3.9% Source: Company, Moelis Analysis 3

4 Valuation Since we initiated in October 2018, CRD s 2019e EV/Sales has de-rated from 4.5x to 2.8x. CRD now trades at a discount to its peers on a forward EV/Sales basis. Given that near term multiples attribute zero value to the mortgage verticals during its ramp up, this effectively gives investors a free call option on mortgages. This is despite the fact that the market opportunity in mortgages (~US$17bn) is larger than student loans, personal loans and credit cards combined (~US$16bn). Additionally, we think recent M&A transaction multiples provide downside protection to the current share price. Figure 3: Trading Comps Price EV Sales (USDm) EBITDA (USDm) EV/Sales (x) EV/EBITDA (x) Company Local USD /20 Δ Credible % (15.7) (16.5) (15.4) 4.3x 2.8x 2.0x nm nm US Financial/Real Estate Marketplaces LendingTree , ,017 1, % x 4.1x 3.5x 20.7x 16.9x Zillow Group ,904 1,318 1,851 2, % x 3.2x 2.6x 26.8x 20.6x UK Financial Marketplaces MoneySupermarket , % x 4.3x 4.0x 11.5x 10.8x AU Miscellaneous Marketplaces Carsales.com , % x 6.7x 6.3x 14.6x 13.6x iselect % x 0.7x 0.6x 5.8x 5.2x Domain , % x 3.9x 3.6x 13.0x 11.3x Freelancer % x 4.7x 3.9x 55.0x 27.1x REA Group , % x 10.8x 9.7x 18.3x 16.3x Webjet , % x 3.8x 3.2x 11.0x 8.7x Median 1, % x 4.3x 3.8x 13.8x 12.4x Source: Moelis Analysis, Factset 4

5 Credible Labs Inc ( ) Market Cap: $194m Last Price: $0.750 Target Price: $1.470 Buy Y/E Dec 31 Profit and Loss (US$m) 2016a 2017a 2018e 2019e 2020e Valuation Summary Revenue Current Mkt Capitalisation Growth % 55.7% 39.8% Shares on Issue EBITDA - (5.1) (16.0) (16.5) (15.4) Last Price Growth % 2.8% (6.3%) Dep'n & Amort (1.7) (2.6) 12 Mth Target Price EBIT - (5.1) (16.0) (18.1) (18.0) Total Estimated 12 Mth Return 96.0% Growth % 13.3% (0.9%) 12 Mth Fwd Capital Return 96.0% Net Interest Expense Mth Fwd Dividend Yield 0.0% Profit Before Tax - (5.1) (16.0) (17.6) (17.8) Tax Valuation Ratios 2016a 2017a 2018e 2019e 2020e Tax Rate (%) - 0.0% 0.0% 0.0% 0.0% EPS (Underlying) ( ) - (1.9) (6.2) (6.8) (6.8) Minorities Growth % 10.2% (0.3%) NPAT (Underlying) - (5.1) (16.0) (17.6) (17.8) Growth % 10.1% 1.0% P/E (x) - nm nm nm nm One-Off Items Small Industrials (ex Fin's) - 0.0x 0.0x 0.0x 0.0x NPAT (Reported) - (5.1) (16.0) (17.6) (17.8) Premium / (Discount) nm nm nm nm nm EPS (Underlying) ( ) - (1.9) (6.2) (6.8) (6.8) EV/EBITDA (x) n/a nm nm nm nm Growth % 10.2% (0.3%) Small Industrials (ex Fin's) - 0.0x 0.0x 0.0x 0.0x Premium / (Discount) nm nm nm nm nm Balance Sheet (US$m) 2016a 2017a 2018e 2019e 2020e Cash DPS ( ) Inventory Growth Current Receivables Yield (%) - 0.0% 0.0% 0.0% 0.0% PPE Payout Ratio (%) - 0.0% 0.0% 0.0% 0.0% Intangibles Franking (%) % 100.0% 100.0% 100.0% Other Total Assets NTA Current Payables NTA/Share (US$) ST Debt LT Debt Performance Ratios 2016a 2017a 2018e 2019e 2020e Provisions ROA - 0.0% (39.3%) (58.4%) (48.5%) Other ROE - 0.0% (43.8%) (72.1%) (62.5%) Total Liabilities ROIC - 0.0% (251.5%) (190.3%) (131.6%) Net Assets Equity & Reserves Net Debt (Cash) (US$m) - (43.9) (29.6) (12.9) (12.7) Retained Profits - (15.4) (31.6) (49.3) (67.1) Net Debt/EBITDA (x) - 0.0x 0.0x 0.0x 0.0x Shareholders' Equity ND/(ND + Equity) (%) - 0.0% (392.3%) (112.4%) (80.3%) Minorities Interest Cover (x) - 0.0x (45.8x) (35.6x) (104.4x) Total Equity Working Capital (0.2) (0.2) (0.3) Cashflow (US$m) 2016a 2017a 2018e 2019e 2020e Working Capital/Sales (%) - 0.0% (0.7%) (0.6%) (0.6%) EBITDA - (5.1) (16.0) (16.5) (15.4) Net Interest Cash Flow Metrics 2016a 2017a 2018e 2019e 2020e Tax FCF/Share (US$) - (0.03) (0.06) (0.09) (0.09) in Working Capital Price/FCPS (x) - nm nm nm nm Other Free Cash Flow Yield (%) - (5.5%) (12.0%) (15.9%) (16.1%) Operating Cash Flow - (5.1) (11.9) (15.9) (15.1) Gross Cash Conversion - 0.0% 60.0% 66.3% 60.5% Growth % 33.6% (4.7%) Capex/Sales (%) - (11.9%) (16.9%) (14.3%) (12.4%) Capex - (2.4) (4.4) (5.7) (6.9) Capex/Depreciation (x) - 0.0x 0.0x 0.0x 0.0x Acquisitions Divestments Margins 2016a 2017a 2018e 2019e 2020e Other (0.5) EBITDA - (26.0%) (62.2%) (41.0%) (27.5%) Investing Cash Flow - (2.3) (4.8) (5.7) (6.9) EBIT - (26.0%) (62.2%) (45.2%) (32.1%) Equity Raised NPAT - (26.0%) (62.2%) (44.0%) (31.8%) Dividends Paid Net Borrowings Valuation Methodology Other (0.1) WACC (%) 12.5% Financing Cash Flow (0.1) Discounted Cash Flow Valuation FX / Non Cash Items Sum-of-the-Parts Valuation Change in Cash (16.8) (21.6) (6.1) Average Valuation Mth Target Price Free Cash Flow - (7.5) (16.2) (21.6) (22.1) Source: Company data, IRESS, Moelis Australia research estimates 31-Jan-19 5

6 RESEARCH & SALES RESPONSIBILTIES Equities Equities Research Simon Scott Head of Equities Real Estate Elliot Leahey Operations Manager Hamish Perks Jack Dyson Desk Assistant Edward Day Jacqui Irons Corporate Broking Ronan Barratt Industrials Equities Sales & Trading Sean Kiriwan Angus Murnaghan Sarah Mann Ian McKenzie Brendon Kelly Bryan Johnson Tom Tweedie Jason Bailey Andrew Harvey Sam Clark Mitchell Hewson - Head of Execution Aaron Payne - Real Estate firstname.lastname@moelisaustralia.com DISCLOSURE APPENDIX ANALYST CERTIFICATION The analyst, Brendon Kelly, responsible for the content of this research report, in whole or in part, certifies that with respect to the companies or securities that the individual analyses, that (1) the views expressed in this report accurately reflect his or her personal views on the subject companies and securities, and (2) no part of his or her compensation was, is, or will be directly or indirectly linked to the specific recommendations or views expressed in this research report. I declare that: a) to the best of my knowledge I am not in receipt of inside information and the research does not contain inside information; and b) no other part of Moelis Australia has made any attempt to influence the research. COMPANY SPECIFIC DISCLOSURES This report was prepared solely by Moelis Australia Securities Pty Ltd. ASX did not prepare any part of the report and has not contributed in any way to its content. The role of ASX in relation to the preparation of the research reports is limited to funding their preparation, by Moelis Australia Securities Pty Ltd, in accordance with the ASX Equity Research Scheme. ASX does not provide financial product advice. The views expressed in this research report may not necessarily reflect the views of ASX. To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and no responsibility or liability is accepted by ASX as to the adequacy, accuracy, completeness or reasonableness of the research reports. RATING DEFINITIONS All companies under coverage are assigned a rating of Buy, Hold or Sell based on the expected 12 month total return estimated by the analyst(s). The total return is a combination of the estimated capital gain or loss, in addition to the estimated 12 month forward dividends or distributions. In relation to all companies that Moelis Australia Securities conducts research coverage on the relevant total return bands that derive the ratings are: Buy: >15% Hold: 5% to 15% Sell: <5%. RATINGS DISTRIBUTION TABLE Distribution of Ratings as at 31 January 2019 SELL HOLD BUY 5.3% 40.4% 52.6% 6

7 Rating and Price Target History: Credible Labs Inc ( ) as of 30/01/2019 GENERAL TERMS OF USE FOR MOELIS RESEARCH REPORTS Research reports have been prepared by Moelis Australia Securities Pty Ltd ( Moelis Securities ), ACN , AFS Licence , a Participant of the ASX Group and Chi-X and the intellectual property relating to the content vests with Moelis Securities unless otherwise noted. GENERAL DISCLAIMER AND DISCLOSURES Disclaimer The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, its accuracy is not guaranteed, and except to the extent that liability cannot be excluded, Moelis Securities does not accept any liability for any direct or consequential loss arising from relying upon the content in this document. This document is not an offer or solicitation of an offer to buy or sell any security or to make any investment. 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