Change Financial Ltd · ASX:CCA
Change Financial — H1 2025 Earnings Presentation
25 slides from Change Financial's earnings presentation, Feb 27, 2025
Slide 1: H1 FY25 Investor Presentation
For personal use only H1 FY25 Investor Presentation 27 February 2025
Slide 2: Delivering innovative and scalable payments solutions
Delivering innovative and scalable payments solutions Change leverages innovative and scalable technology to provide tailored payment solutions, card issuing and testing to 150+ Payment solutions banks & fintechs across 40+ countries provider driving Two core products in the banking & payments e
Slide 3: Key Highlights
Key Highlights New and existing PaaS clients driving significant growth in revenue Record H1 revenue New projects and licence wins across Vertexon On-Premises and PaySim clients driven by increasing PaaS revenues US$7.2m 66k+ 78% For personal use only 61% 110% PCP HoH (A$11.4m)1 CURRENT ACTIVE P
Slide 4: Vertexon PaaS Metrics
Vertexon PaaS Metrics PaaS platform scaling Vertexon PaaS platform fully live and operational in Active Cards (thousands) with volumes increasing Australia & NZ 70 as cards migrate to Significant increase in active cards & transaction volumes 60 Change during H1 FY25 50 Processing and issuing at a r
Slide 5: H1 FY25 Financial Results
For personal use only H1 FY25 Financial Results
Slide 6: Delivering strong revenue growth
Delivering strong revenue growth Change is delivering on Revenue (US$m) – H1 vs H2 Revenue by Service Offering (%) FY25 growth in excess 10.6 H1 FY25 Support & Maintenance of 30% Record revenue half Processing & Issuing (PaaS) 8.3 8.7 1% with PaaS revenue Professional Services 6.2 ramp up increasing
Slide 7: Profit & Loss
Profit & Loss Material EBITDA Underlying EBITDA (US$m) – H1 vs H2 improvement driven by FY22 FY23 FY24 FY25 FY25 (ex. US) revenue growth and stable fixed cost base 0.4 - (0.7) (0.5) (1.0) For personal use only (1.6) H1 (0.2) H2 (0.8) H1 (ex. US) (2.4) (1.2) (0.7) H1 FY25 revenue of US$7.2m (A$11.4m)
Slide 8: Balance Sheet
Balance Sheet Cash holdings of US$3.5m (A$5.6m) Additional US$0.9m (A$1.4m) held in cash-backed security guarantees relating to card issuing activities Other non-current assets are security guarantee requirements of Change’s scheme and processing partners to enable PaaS offering For personal use onl
Slide 9: Cashflow
Cashflow Cash receipts of US$7.1m (A$11.3m), up 64% on pcp Exiting the US Growth in PaaS business driving increase and smoothing of operations will realise cash receipts (clients invoiced monthly in arrears) significant cost savings Cash payments to suppliers / employees of US$7.4m (A$11.7m) and ope
Slide 10: Market Opportunity & Outlook
For personal use only Market Opportunity & Outlook
Slide 11: Market Overview – New Zealand
Market Overview – New Zealand Banking in New Zealand is dominated by the Big 4 banks 27 registered banks plus several credit unions & building societies No payment aggregation services providers for smaller players & historically limited innovation outside the Big 4 Banks Estimated that smal
Slide 12: Market Overview – Australia
Market Overview – Australia Australian Annual Transaction Volume by Type of Retail Payment 1 Card based payments now dominate 12 Scheme & EFTPOS Debit Cards Total Number of Transactions transaction volume in 10 Australia 8 (billions) 6 For personal use only 4-Party & 3-Party Credit & Charge Cards 4
Slide 13: Market Overview – Australia (cont.)
Market Overview – Australia (cont.) Whilst the Big 4 banks have a significant position in the Australian card issuing market, there is a materially larger opportunity than in New Zealand Change is seeking to leverage the recent success in the NZ market to target the sizeable AU market Small to
Slide 14: PaySim Market Overview – Global
PaySim Market Overview – Global Extremely powerful modular end-to-end payments testing and certification solution embedded into tier 1 banking and payments institutions globally Core based on global messaging standard ISO8583 Default standard and benchmark for EFTPOS testing in Australia For p
Slide 15: Building the Commercial Team to Drive Growth
Building the Commercial Team to Drive Growth Change has strengthened its sales team with the appointment of 2 x Strategic BDMs in Oceania (starting March 2025) New BDMs will be focused on outbound sales ‘hunting’ for Vertexon (Australia) and PaySim (Global) given the significant market opportuni
Slide 16: Key Focus to Accelerate Growth & Scale
Key Focus to Accelerate Growth & Scale Building momentum as 1 New Client Acquisition the business starts to Vertexon – new PaaS clients in core target markets scale Platform live in Oceania – building reference-ability on the back of marquee NZ client wins PaaS platform scaling which is driving impr
Slide 17: Outlook
Outlook Change is delivering on FY25 growth and financial targets Positive outlook as Change builds Targeting FY25 revenue growth in excess of 30% - ON TRACK momentum and continues to scale Underpinned by significant portion of ‘recurring’ revenue – PaaS and Support & Maintenance (78% of H1 FY
Slide 18: Investment Highlights
Investment Highlights With strong Building Blocks In Place Growth & Scale Focus Marquee Customers foundations in place, Change is focussed on delivering profitable All regulatory and licensing Targeting to deliver revenue growth in Strong validation of PaaS platform with growth requirements for card
Slide 19: Appendix
For personal use only Appendix
Slide 20: Vertexon in the payments process
Vertexon in the payments process Change’s role in the 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 21: Vertexon product offering
Vertexon product offering Vertexon offering can Processing Processing & Issuing be tailored by client to • Provide core technology to enable card issuing and • Provide Processing capability + the following key card offer services that best management including: Issuing capabilities: suit client and
Slide 22: Reducing launch timelines and accelerating PaaS Growth
Reducing launch timelines and accelerating PaaS Growth Program launch PLATFORM LIVE IN PLATFORM LIVE IN timelines reducing NEW ZEALAND AUSTRALIA given PaaS platform NZ Fintech (Processing & Issuing) fully live and NZ Fintech PLATFORM BUILD PHASE BIN sponsorship operational (Issuing only) For persona
Slide 23: PaySim: critical payments infrastructure testing tool
PaySim: critical payments infrastructure testing tool Software facilitates Simulates the full transaction lifecycle, enabling banks & fintechs to complete end-to-end testing of their payment remote testing platforms, processes & scheme rule compliance without the need for Enables financial insti
Slide 24: Important Information
Important Information 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 present
Slide 25: Thank you.
For personal use only Thank you. Get in touch investors@changefinancial.com