Slide 1: Investor Presentation FY23 Full Year Results
For personal use only Investor Presentation FY23 Full Year Results 31 August 2023
Slide 2: Executive Summary
Executive Summary Simplifying payment Critical Payments Global B2B fintech providing solutions for 150+ banks & fintechs in 40+ countries experiences globally to Infrastructure Two core products in the banking & payments ecosystem: be a leading PaaS Vertexon (Payments as a Service (PaaS)): physical
Slide 3: Change today: delivering scalable payments solutions
Change today: delivering scalable payments solutions Payments solutions provider driving innovation in the Banking as a Service banking ecosystem For personal use only Payments as a Service Payment testing Physical & Transaction Digital payments Full payment Visa, Mastercard, ATM & POS virtual card
Slide 4: Vertexon in the payments process
Vertexon in the payments process Change’s role in the u Processing: An Issuer (Change’s client) using the Vertexon Processing: Customer pays with card (all card networks payments process Platform (technology only) to manage their cards – client is supported) & purchases goods/services from merchant
Slide 5: Vertexon product offering
Vertexon product offering Vertexon offering can Processing Processing & Issuing (P&I) be tailored by client to • Provision of core technology to enable card issuing and • Provide processing capability + the following key card Issuing offer services that best management including: capabilities: suit
Slide 6: PaySim: critical payments infrastructure testing tool
PaySim: critical payments infrastructure testing tool Software facilitates u Simulates the full transaction lifecycle, enabling banks & fintechs to complete end-to-end testing of their payment remote testing platforms, processes and scheme rule compliance without the need for u Enables financial ins
Slide 7: FY23 Financial Results
For personal use only FY23 Financial Results
Slide 8: Financial Dashboard
Financial Dashboard Geographically diverse Revenue (US$m) – H1 vs H2 EBITDA (US$m) – H1 vs H2 client base providing a $8.7m FY21 FY22 FY23 $8.3m +4.7% platform for future growth and expansion $6.3m (1.2) (1.1) 4.4 4.5 (1.7) (0.2) For personal use only 4.2 $(1.3)m 4.3 (1.4) 3.8 H1 (0.8) 49% H1 2.1 H2
Slide 9: Profit & Loss
Profit & Loss Profit & Loss Summary Revenue growth and Key Comments (US $000's) FY23 FY22 Var % realigned cost base Revenue 8,709 8,316 4.7% FY23 revenue of US$8.7m (A$13.6m), up 4.7% on pcp driving improved COGS - - n/a Modest growth driven by new licences and uplift in EBITDA Gross Profit 8,709 8,
Slide 10: Revenue model transition
Revenue model transition Vertexon – Old Revenue Model Vertexon – New Revenue Model Transitioning from Licence Processing Processing & Issuing (P&I) licence & project fee On premise solution – client Cloud hosted – client responsible for Cloud hosted – Change responsible for revenue model to a respon
Slide 11: Balance Sheet
Balance Sheet Balance Sheet Recent capital raisings Key Comments (US $000's) FY23 FY22 have strengthened the Cash & equivalents 5,351 1,501 Cash balance of US$5.4m (A$8.4m) boosted during the year by: Company’s financial Receivables 2,121 1,791 US$3.9m capital raising in August / September 2022 (exc
Slide 12: Cashflow
Cashflow Cashflow Continued investment (US $000's) FY23 FY22 Key Comments in core products to Receipts from customers 9,548 9,047 Cash receipts expected to smooth over time as PaaS clients go-live deliver future revenue Payments to suppliers / employees (10,194) (10,782) (expect to invoice monthly i
Slide 13: FY23 Operational Results
For personal use only FY23 Operational Results
Slide 14: Operational Milestones
Operational Milestones Milestones achieved in Milestone Details FY23 provide foundations Substantial progress completing necessary regulatory and compliance milestones (refer following slide for accelerated future on Vertexon issuing capabilities) growth Direct issuing First cards issued for three o
Slide 15: Vertexon issuing capabilities
Vertexon issuing capabilities The majority of key Change has completed the majority of the necessary regulatory and licensing requirements to enable card issuing in NZ, enablers for card issuing Australia and the US in Australia, New Zealand Upon completion of the two remaining items shaded orange (
Slide 16: Outlook
For personal use only Outlook
Slide 17: FY24 Operational Milestones
FY24 Operational Milestones Shared Success & Growth Clear and focussed 1 operational roadmap to Transition NZ card programs to Change which will drive transactional revenues – H1 FY24 deliver shareholder Onboard US clients once platform operational in market – H1 FY24 value Drive new client wins by
Slide 18: Outlook
Outlook u Profitable revenue growth Focused execution and delivery to achieve u Realigned cost base has positioned Change to deliver profitable revenue growth in FY24+ success u Despite initial delays with NZ clients, they are now onboarded with first live cards issued and transition of cardholders
Slide 19: Appendix
For personal use only Appendix
Slide 20: Vertexon: Payments as a Service (PaaS)
Vertexon: Payments as a Service (PaaS) u Lowers the barrier of entry for banks & fintechs to deliver innovative digital card solutions to their customers Vertexon powers card programs around the globe Processing Processing & Issuing (P&I) Key Product Cloud hosted; platform used to manage card & Clou
Slide 21: Vertexon: contract revenue breakdown (indicative only)
Vertexon: contract revenue breakdown (indicative only) Example client (prepaid card program) New Model (SaaS) Material revenue uplift Example illustrates an indicative Old Model from transition to SaaS program of 25k prepaid cards. Processing & Revenue Stream (US$) Type Licence Processing model over
Slide 22: Vertexon: large global opportunity
Vertexon: large global opportunity Large market potential Potential Customer Type Example Customer ANZ US South East Asia LATAM Deal Value (5 yrs) with targeted areas of near-term opportunity BDO Unibank Banks US$1m - $5m 120+ 2,100+ 180+ 400+ (Philippines) Financial institutions2 First CU (NZ) US$0
Slide 23: Disclaimer
Disclaimer Change Financial Important Notice This presentation has been prepared by Change Financial Limited (Change Financial) in good faith. No express or implied warranty is given as to the accuracy or completeness Limited of the information in this document or the accompanying presentation. All
Slide 24: Thank you.
Thank you. For personal use only Get in touch investors@changefinancial.com