Butn Limited · ASX:BTN
Butn — Investor Presentation (February 2022)
19 slides from Butn's investor presentation, Feb 28, 2022
Slide 1: Growing Momentum
Growing Momentum 1H22 Results – 28 February 2022 Butn Limited Investor Presentation
Slide 2: Our Vision
Our Vision “Butn, your money today.” Partnering for business success. Funding at the click of Butn Butn the home of Business (Bu) + Transactions (Tn) Embedded finance, the future of funding 1H22 Investor Presentation 2
Slide 3: Embedded Finance – the future of funding
Embedded Finance – the future of funding Funding where its needed, when needed – “in workflow” “Funding should not be a task outside of how and where businesses transact, requiring extraordinary amounts of time and effort, lengthy decision periods and constraints based on some arbitrary limit review
Slide 4: Butn’s capabilities
Butn’s capabilities Focused on SMEs with a flexible and fast in-workflow solution via strategic partners • Partnership model provides mass • Right tech and people origination and deeply integrated into distribution invoicing and • Leverages existing payments workflow STRATEGIC IN-WORK FLOW trusted p
Slide 5: Our growth focus – the Butn platform
Our growth focus – the Butn platform Differentiated transactional funding approach Our FinTech transactional funding solution digitises and automates the funding process, from customer on- boarding, credit assessment, funding and collection. We integrate with Platform Partners providing us with mass
Slide 6: Growth
Growth History of Origination growth, CAGR of +20%, including through COVID-19 • 1H22 origination growth of 30% to $127.6 million (1H21: $98.0 million). • Consecutive record quarters in Q1FY22 and Q2FY22 • December a monthly origination record of $25 million, up 44% on pcp. • 1H22 revenue was up 12%
Slide 7: Industry-low write-offs, proven over many years
Industry-low write-offs, proven over many years Multiple tiers of loss protection and recovery Butn has industry leading credit and risk Numerous checks / processes undertaken at customer management, minimising default risk (non- on-boarding and at transaction funding including: payment or fraud). B
Slide 8: Successfully restructuring debt, driving margins
Successfully restructuring debt, driving margins Reducing funding costs, increasing headroom and extending funding flexibility As foreshadowed at the time of IPO, Butn Cost of debt commenced positively restructuring its debt: decreasing with • September 2021, Butn restructured its 2018-1 last debt s
Slide 9: Positive platform performance
Positive platform performance Provides scalability, low customer acquisition cost and strong operating leverage at scale • In August 2021, the |Butn invoice finance product went live to a small initial group of ~$8k, up from ~$5k MYOB Business users. Positive month-on- month origination growth. • In
Slide 10: Business drivers
Business drivers Multiple drivers accelerating the Butn opportunity Maintain strong credit and risk management Reduce the cost of processes for low capital to expand non-recoverable margins write-offs Increase transaction Increase access to Maintain a low, volume and value debt and equity to relativ
Slide 11: Outlook
Key Priorities Strong 1H22, leveraging the foundations and growth platform established in FY21 Continued origination and revenue growth (#1 priority) Scaling of existing and future platform partners Outlook Cautiously positive on economic reopening as COVID-19 eases Laser focus on maintaining robust
Slide 12: Investment summary
Investment summary Proven high-growth SME B2B transactional funder, leveraging an innovative FinTech partnership model Massive Opportunity Proven performer Leading Risk-management Australian SME finance $700m+ in SME B2B Credit and risk management market exceeds $300bn transactions funded over 5 pro
Slide 13: Appendix
Appendix 1H22 Investor Presentation 13
Slide 14: Corporate snapshot
Corporate snapshot ASX code BTN Director Brief bio Suzanne Ewart • Director and business adviser with a strong background in treasury, finance and strategy Share price (31/12/21) 34c Non-Exec. • Previously senior roles with Fosters’ Group, NAB, Telstra, BTR, Pacific Dunlop, and Market cap (31/12/21)
Slide 15: Statement of financial position
Statement of financial position Sound balance sheet to support future growth $m 31-DEC-21 30-JUN-21 $ mvmt % mvmt Notes 1. Increase in Cash from the $20M IPO (less Cash and cash equiv. 23.8 15.5 8.3 54% 1 costs and shareholder loan repayments), Trade receivables 37.5 30.0 7.5 25% 2 offset by an incr
Slide 16: Statement of profit and loss
Statement of profit and loss Revenue increase and spend investment for long term growth $m 1H22 1H21 $ mvmt % mvmt Notes 1. Increase in HY22 Revenue reflects: Originations 127.6 98.0 29.6 30% • Originations continuing to grow, with a 30% increase on the pcp; and • Revenue Margin declining through th
Slide 17: Butn products
Butn products Butn offers a full spectrum of SME B2B funding options Typical end user Seller of goods or services Buyer of goods or services Real estate agent or broker Description: Factoring Buy now pay later (BNPL) Early settlement of commissions Can fund Up to 100% of invoice value Up to 100% of
Slide 18: Disclaimer
Disclaimer This presentation has been prepared by Butn Limited ACN 644 182 883 (“Butn” or the herein. Neither Butn nor any other person accepts any liability and Butn, its related bodies “Company”) and does not constitute or form part of, and should not be construed as, an offer, corporate and their
Slide 19: Contact
Contact Rael Ross Co Founder / Co CEO C/O Investor Relations Gabriella Hold gabriella.hold@marketeye.com.au 1H22 Investor Presentation 19