Way 2 Vat Ltd · ASX:W2V
Way 2 Vat — Investor Presentation (February 2024)
35 slides from Way 2 Vat's investor presentation, Feb 28, 2024
Slide 1: Global VAT/GST Refunds – Capital Raising Presentation February 2024
GLOBAL VAT/GST REFUNDS AI Technology-Driven Solution Capital Raising Presentation – February 2024
Slide 2: Table of Contents
Table of Contents 1. Investment highlights and growth strategy 2. Competitive advantage 3. Technology overview 4. Equity raising overview
Slide 3: Investment highlights and growth strategy
Investment highlights and growth strategy
Slide 4: Executive summary
Executive summary Company overview • Established in 2016, Way2VAT (W2V:ASX) is a global fintech company headquartered in Tel Aviv with offices in the United Kingdom, Spain and Romania. • Way2VAT owns and operates a patented artificial intelligence technology that powers the world’s first fully autom
Slide 5: Investment highlights
Investment highlights Growth opportunity • VAT/GST is a consumption tax levied on goods and services in numerous countries around the world and ANNUAL TRANSACTION in an large accounts for ~30% of all tax collected in OECD countries. VOLUME (A$M) addressable • There are approximately 170 countries cu
Slide 6: FY23 financial highlights
FY23 financial highlights* $3.1M $23.7M Record revenue up Record transaction 64% on pcp volume up 11% on pcp (FY22: $1.88m) (FY22: $21.33m) 78.6% $3.57M Gross margin Trade receivables (FY22: 77%) (as at 31/12/23) * Unaudited
Slide 7: Growth strategy
Growth strategy Building on strong momentum Clear strategy to differentiate through IP protected AI technology to address a global market of unclaimed VAT/GST valued at $20 billion per year Meeting unmet market needs with new AI compliance technology through expanded product suite Targeting existing
Slide 8: Competitive advantage
Competitive advantage
Slide 9: Increase VAT/GST recovery with WAY2VAT AI-technology
Increase VAT/GST recovery with WAY2VAT AI-technology End-to-end fully optimized, automated VAT/GST reclaim solution Patented AI technology Proven solution, simple digital integration More money for your bottom line
Slide 10: AIA – Automatic Invoice Analysis
An automated Global VAT/GST refund solution using image processing and artificial intelligence Global Local AP(suppliers) VAT/GST VAT/GST VAT/GST AIA Automatic Invoice Analysis • Extracting relevant fields and items for VAT/GST refund claims using leading image processing technology
Slide 11: World's only fintech company automating global VAT/GST reclaim processing
World’s only fintech company automating global VAT/GST reclaim processing through image processing and AI LON Every month 1M TLV invoices recovered BCN automatically CRA Market potential Enterprise clients $20B 345+
Slide 12: Reclaiming in 40 countries, 20 languages
Reclaiming in 40 countries, 20 languages Australia Austria Belgium Bulgaria Croatia Cyprus C. Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Japan Latvia Lithuania Luxembourg Malta Netherlands New Zealand Norway Poland Portugal Romania Serbia Slovakia Slovenia S
Slide 13: 345+ enterprise customers and growing
345+ enterprise customers and growing
Slide 14: New significant global enterprise clients in 2023
New significant global enterprise clients in 2023 Pharmaceuticals Food production Shoes Electronics Movie production Financial advisory Seafood Tourism Home security Internet services Television production While none of these individual new contracts are material in their own right, the smooth integ
Slide 15: Technology Overview
Technology Overview
Slide 16: Six patents, based on AI tech providing protection for 20 years
Six patents, based on AI tech providing protection for 20 years
Slide 17: Advanced AI capabilities for VAT/GST recovery
Advanced AI capabilities for VAT/GST recovery SEGMENTATION Claimable IMAGE DATA TO INVOICE EXTRACTION "CLAIM- ABILITY" CHECK Unclaimable IMAGE FILES INVOICE IMAGE INVOICE DATA VALID INVOICE Lost potential Image Manipulation Cleanup Validation Image to line matching Duplicates Claimable Expense type
Slide 18: Advanced AI capabilities for VAT/GST recovery
Advanced AI capabilities for VAT/GST recovery An automated analysis of VAT/GST in all types of invoices VAT/GST ‘claimability’ detection • Intelligent scanning detects whether the information is a claimable receipt or not • VAT/GST ID validation • Using visual-linguistic analysis of the images • App
Slide 19: Integration with your expense platform
Integration with your expense platform Forms Countries Automated forms Tax authorities filled per country receive automated Computer requirements. reports. Integration invoice Mobile app Scanner Qualified Data Customer [Report] Submission Domestic VAT results provided Claims submitted through in for
Slide 20: Visibility and control dashboard
Visibility and control dashboard • Multi-year platform providing visibility across all historic invoices. • Multi-currency across all clients’ operating jurisdictions. • Multi-lingual in all languages the client operates in. • Expenses easily segmented into business units and countries. • Provides ‘
Slide 21: Way2VAT updated product suite
Way2VAT updated product suite Our world-first AI-driven ERP providers Multinationals automated auditing product Accounting firms Others AI-AP Compliance (invoice VAT/GST tax compliance validation technology) Increased filing Value compliance and Increased compliance and reduced risk reduced risk (th
Slide 22: AI-AP Compliance overview
AI-AP Compliance overview
Slide 23: AI-AP Compliance – what it does
AI-AP Compliance – what is does www.way2vat.com
Slide 24: AI-AP Compliance - what it checks for
AI-AP Compliance - what it checks for • Lack of VAT invoices or other evidence • Import VAT/GST • Invoices not paid after more than six months • Reverse charge • VAT/GST on deposits/advance payments • Motor vehicle expenses • Claiming VAT/GST twice • Supplies of staff • Recovering VAT/GST incorrectl
Slide 25: AI-AP Compliance – how it works
AI-AP Compliance – how it works Information extraction using advanced Information extraction architecture and pre-training method for and enrichment checks AI checks multiple items document understanding several items including across each invoice Invoice V Receipt Classifier VAT Calculation Item br
Slide 26: Customisable client reports
Customisable client reports
Slide 27: Key benefits
Key benefits Completeness Unlike manual auditing, which is random or selective, our automated checks provide full coverage on each transaction. Speed Manual review is time-consuming while automation generates section able output quickly, allowing plenty of time to respond. Cost-effective The automat
Slide 28: Equity raising overview
Equity raising overview
Slide 29: Equity raising overview
Equity raising overview Way2VAT is raising approximately A$5.25m via Placement and SPP expected to accelerate recent company initiatives undertaken to expedite the pathway to profitability • Placement to raise approximately A$4.25m comprising of: • Placement of new fully paid ordinary shares (“New S
Slide 30: Use of funds and pro forma cash
Use of funds and pro forma cash USE OF FUNDS A$M PRO-FORMA CASH A$M Working Capital $4.85 Cash Balance1 $0.70 Transaction Costs $0.40 Convertible Notes2 $1.10 Total Capital Raised $5.25 Capital Raising3 $5.25 Pro Forma Cash Balance4 $7.05 1 Cash balance as at 31 December 2023 2 Proceeds from convert
Slide 31: Offer timetable
Offer timetable Indicative capital raising timetable1 Date (AEDT) Trading Halt Monday, 26th February 2024 Record Date for SPP 7.00pm Tuesday, 27th February 2024 Capital Raising announced and trading halt lifted Wednesday, 28th February 2024 Settlement of the Tranche 1 Placement Tuesday, 5th March 20
Slide 32: Key risks
Key risks Future Capital Needs and Additional Funding a risk that expansion initiatives may result in additional costs and risks, or may not deliver the outcomes At present, Way2VAT is not operating on a cash flow positive basis, meaning it is reliant on raising intended. Way2VAT’s strategy depends
Slide 33: Key risks
Key risks Reliance on tax agents and representatives adversely impact Way2VAT’s reputation. Any factors that diminish Way2VAT’s reputation could result Way2VAT’s business and operations is largely dependent on various third parties, including its tax in clients or other parties ceasing to do busines
Slide 34: Key risks
Key risks Employee recruitment risk and retention by Way2VAT’s intellectual property rights. Way2VAT’s competitors may then be able to offer identical Way2VAT ability to effectively execute its growth strategy depends upon the performance and or very similar services or services that are otherwise c
Slide 35: Foreign selling restrictions
Foreign selling restrictions This document does not constitute an offer of New Shares and Attaching Options of the Company in any jurisdiction in • is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act; which it would be unlawful. In particular, this document may not