Change Financial Ltd · ASX:CCA
Change Financial — FY2022 Earnings Presentation
25 slides from Change Financial's earnings presentation, Aug 31, 2022
Slide 1: Investor Presentation FY2022 Full Year Results
Investor Presentation FY2022 Full Year Results 31 August 2022
Slide 2: Executive summary
Executive summary Simplifying payment Critical Payments Global B2B fintech providing solutions for 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 & vir
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 Payments as a Service Payment testing Physical & Transaction Digital payments Full payment Visa, Mastercard, ATM & POS virtual card processing for all (A
Slide 4: 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 5: 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 without the need for u Enables financial institutions to test their pa
Slide 6: Global fintech with local expertise
Global fintech with local expertise Our offices / staff Our clients Diverse team with local knowledge to support Critical payments our loyal & growing infrastructure Deep client integration client base Athens Los Angeles Santo Domingo Global footprint 156 Clients in 41 countries Brisbane Scalable pa
Slide 7: FY22 Financial Results
change. FY22 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 $8.3m FY21 FY22 platform for future growth and expansion $6.3m (1.2) 4.5 (1.7) 4.2 H1 H2 H1 H2 (1.4) (0.8) 3.8 2.1 $(2.6)m $(2.5)m FY21 FY22 Revenue by Region (%) Revenue by Service
Slide 9: Profit & Loss
Profit & Loss Profit & Loss Summary Recent Vertexon PaaS Key Comments (US $000's) FY22 FY21 Var % client wins will Revenue 8,316 6,313 31.7% Record FY22 revenue of US$8.3m (A$12.1m), up 31.7% pcp contribute to revenue COGS - - n/a FY21 revenue included 9 months of strategic acquisition growth in FY2
Slide 10: Profit & Loss – strong H2 revenue driving EBITDA improvement
Profit & Loss – strong H2 revenue driving EBITDA improvement FY22 Profit & Loss - H1 vs H2 Strong focus on (US $000's) H1 FY22 H2 FY22 Var % Key Comments delivering profitable Revenue 3,769 4,548 20.7% H2 FY22 revenue of US$4.5m (A$6.5m), driven by revenue growth EBITDA (1,672) (843) (49.6%) convers
Slide 11: Revenue model transition
Revenue model transition Vertexon – Old Revenue Model Vertexon – New Revenue Model Transitioning from Licence Processing Processing & Issuing (P&I) licence & project fee On premise solution – client Cloud hosted – client responsible for Cloud hosted – Change responsible for revenue model to a respon
Slide 12: Vertexon: contract revenue breakdown (indicative only)
Vertexon: contract revenue breakdown (indicative only) Example client (prepaid card program) New Model (SaaS) Material revenue uplift Example illustrates an indicative Old Model from transition to SaaS program of 25k prepaid cards. Processing & Revenue Stream (US$) Type Licence Processing model over
Slide 13: Balance Sheet
Balance Sheet Balance Sheet Recent capital raising (US $000's) FY22 FY21 Key Comments will strengthen the Cash & equivalents 1,501 4,019 Cash balance boosted post 30 June 2022, via A$5.72m capital financial position and Receivables 1,791 2,361 raising by way of: enable continued Other current assets
Slide 14: Cashflow
Cashflow Cashflow Continued investment (US $000's) FY22 FY21 Key Comments in core products to Receipts from customers 9,047 6,091 Strong cash receipts from customers albeit variances from deliver future revenue Payments to suppliers / employees (10,782) (7,879) quarter to quarter due to growth Other
Slide 15: FY22 Operational Results
change. FY22 Operational Results
Slide 16: Key 'building blocks' delivered in FY22
Key ‘building blocks’ delivered in FY22 Milestones achieved in Milestone Why it’s important FY22 provide foundations for Launched Vertexon PaaS platform in Oceania in late 2021 accelerated future Launch of Major client wins – 4 NZ financial institutions & 3 US fintechs – onboarding underway, go-live
Slide 17: Key recent client wins
Key recent client wins Recent wins anticipated 4 NZ Financial Institutions 3 US Fintechs to generate in excess of US$12.9m revenue over Milestone PaaS (P&I) contracts with 3 NZ credit unions Gaining traction in US with 3 fintechs secured as new initial terms & 1 NZ building society PaaS (P&I) client
Slide 18: Vertexon: early in transition but momentum accelerating
Vertexon: early in transition but momentum accelerating u Transition from licence model to SaaS is driving an increase in average client value & aligns Change’s & client’s growth Strategic partnerships & issuing capability Estimated Annualised No. of Clients Upside Potential driving increase in valu
Slide 19: 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 20: PaySim: diverse blue chip & emerging global client base
PaySim: diverse blue chip & emerging global client base Globally recognised u Licence sales are key to future growth & complemented by new SaaS products & features solution simulating over Estimated Annualised No. of Clients Upside Potential 60k transaction Revenue Run Rate variations Established sa
Slide 21: Future Outlook
change. Future Outlook
Slide 22: FY23 Operational Milestones
FY23 Operational Milestones Clear operational 1 Business readiness for direct card issuing in Oceania roadmap to delivering Australian Financial Services Licence (AFSL) – approval expected in H1 FY23 (will enable direct issuing in Australia) shareholder value Complete the establishment of Risk / Com
Slide 23: FY23 Financial Milestones
FY23 Financial Milestones Proactive management Revenue Targeting to deliver strong (double digit) revenue growth in FY23 actions to deliver strong Growth Key FY23 drivers of revenue growth: yet profitable revenue growth Long-standing client base with contracted revenue Recently contracted PaaS clien
Slide 24: 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 25: Thank you.
Thank you. Get in touch investors@changefinancial.com