Nayax Ltd. · TASE:NYAX
Nayax — Investor Day (May 2022)
69 slides from Nayax's investor day presentation, May 20, 2022
Slide 1: Capital Markets Day
Capital Markets Day Attending the Unattended May 20, 2022 1
Slide 2: Agenda
Agenda 8:25AM Introductions & Agenda – Virginea Stuart Gibson, IR 8:30AM Company Overview, TAM and Growth Strategy – Yair Nechmad, Co-Founder & CEO 9:15AM Nayax Technology – David Ben Avi , Co-Founder & CTO 9:30AM Nayax Platform, GTM & Case Studies – Keren Sharir, CMO & Carly Furman, CEO NA 10:15AM
Slide 3: Disclaimer
Disclaimer Confidential Information This presentation has been prepared by Nayax Ltd. (the “Company”) on a confidential basis for the exclusive use of the party to whom the Company delivers this presentation (such party, together with its subsidiaries and affiliates, the “Recipient”). This presentat
Slide 4: What our customers say about us
What our customers say about us + 4
Slide 5: Company and Strategic Overview
Company and Strategic Overview Yair Nechmad Co-Founder and CEO 5
Slide 6: Leading payment company capturing market share
Leading payment company capturing market share Our mission Organic CAGR: 39% Simplify commerce and payments for retailers while driving growth, optimizing 119 operations, and enhancing consumer engagement 79 64 Our vision 49 Our platform empowers retailers to 32 provide consumers with digital paymen
Slide 7: Nayax (TASE: NYAX) at a glance
Nayax (TASE: NYAX) at a glance Global Scale Growth Offices in 8 countries and 2021: 517K/ Q1.2022: 553K 67% Q1.2022 recurring revenue1 YoY distributors in 44 markets managed and connected devices growth Devices in 62 countries 2021: 30K/ Q1.2022: 34K 62% Q1.2022 customer YoY growth end customers 140
Slide 8: Proven track record of growth and innovation
Proven track record of growth and innovation Acquisition Acquisition Monyx launched 200K connections Monyx Wallet 2.0, VPOS Company founded Opened offices Opened offices Fusion, Onyx launched Company listed on TASE (NYAX) 2005 2015 2017 2019 2021 2010-2014 2016 2018 2020 2022 Opened offices Acquisit
Slide 9: Multi-dimensional challenges across the ecosystem
Multi-dimensional challenges across the ecosystem Omni-Channel Back Office / Operations Unattended In-store Mobile Online Reporting Accounting Inventory Multiple Payment Method Consumers Retailers Data Analytics / Management Multiple Payment Currencies Analytics Cash flow Business Loyalty & Consumer
Slide 10: Leading end-to-end retail technology and payments platform for unattended commerce and beyond
Leading end-to-end retail technology and payments platform for unattended commerce and beyond Telemetry and Payments Management Suite Software Suite Loyalty & Marketing Integrated POS Suite 10
Slide 11: Nayax’s platform increases sales and decreases costs for retailers
Nayax’s platform increases sales and decreases costs for retailers Omni-Channel Acceptance, Consumer Telemetry and Software Engagement & Loyalty Dynamic Routing/ Pricing Integrated Loyalty and Inventory POS Marketing Management Programs Consumers Retailers Suppliers Reporting Remote Cashless Instant
Slide 12: Bringing a global solution to the local market
Bringing a global solution to the local market Strong Track Record of Retaining & Growing Low Customer Global Reach Winning Clients Customers Concentration YoY Revenue Churn Rate 3.2% 3.0% 3.7% 3.3% Top 3, 4% Rest of the World Europe 2.6% 2.8% Top 4-10, 7% 12% 43% Top 11-20, 6% Australia 2018 2019 2
Slide 13: Growing with our customers
13 Growing with our customers 85 80 75 70 Land and 65 60 Expand 55 Yielding 50 45 Higher $M 40 35 Customer 30 25 Loyalty 20 15 10 5 - 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 13
Slide 14: Market Opportunity
Market Opportunity 14
Slide 15: Paradigm shift
Paradigm shift Global Cash Usage(1) (%) • Treat payments as strategic, create opportunities to increase 41% 33% “ revenue and profit 49.5% of unattended consumers use unattended solutions because they are • Adopt personalization 2021 2022 faster capabilities for consumer Electronic Payments(1) ($m)
Slide 16: Global cashless unattended transaction value expected to triple over next five years
Global cashless unattended transaction value expected to triple over next five years Cashless Payments Transaction Value By Vertical (€bn) Cashless Payments Transaction Value By Region (€bn) 3x (€bn) Absolute Growth 3x Absolute Growth (€bn) (€bn) 140.0 (2015- (20- 140 (20-25F) (2015-20) 20) €123bn 2
Slide 17: Nayax differentiates through its focus and breadth of platform
Nayax differentiates through its focus and breadth of platform Consumer Global Management Seamless Omni- Engagement and Reach Suite Deployment channel Loyalty 17
Slide 18: Addressing the unattended opportunity has substantial barriers to entry
Addressing the unattended opportunity has substantial barriers to entry Substantial Barriers To Entry Comprehensive, end-to- Integrations with unattended end solutions machines in multiple verticals Proprietary Integrated Global payments acceptance POS devices network Addressing SME and Large instal
Slide 19: Blue ocean - large market opportunity in unattended Retail
Blue ocean - large market opportunity in unattended Retail Our Opportunity LONG-TERM Opportunity Benefitting from 2025 Opportunity Strong Tailwinds NAYAX 2021 REVENUE: $119M 19
Slide 20: Broader retail market - significant opportunity to expand TAM
Broader retail market - significant opportunity to expand TAM SME POS Products and Solutions Spend1 CAGR: ~9% $54B Entering retail market $33B with strong offering 2020 2026 1Source: Analysys Mason “Point of sale vendors must look beyond e-commerce to drive revenue growth in the SMB segment” (Septem
Slide 21: Strategy for sustained long-term growth
Strategy for sustained long-term growth Pursue targeted and strategic M&A Continue to expand internationally Win new large enterprise and SME customers globally Enter emerging, high-growth verticals Continue to innovate and develop new Retain and grow with solutions existing customers 21
Slide 22: Nayax culture & values
Nayax culture & values More than 600 employees in 11 countries Own It Listen and Communicate Growth: 286% 613 550 # of Employees 396 293 214 159 44 79 104 Act Honesty 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 22 Source: company data
Slide 23: Our Continuous Growth
Our Continuous Growth 23
Slide 24: Follow the Yellow POS Road in 60+ Countries…
Follow the Yellow POS Road in 60+ Countries… 24
Slide 25: Uninterrupted track record of growth
Uninterrupted track record of growth Consistent & strong organic growth Number of Managed and Number of Transactions Revenue Growth ($m) Connected Devices (thousands) (millions) CAGR: 28% CAGR: 42% CAGR: 39% 795 119 517 371 79 340 470 451 64 265 218 295 49 196 32 2017 2018 2019 2020 2021 2017 2018 2
Slide 26: Rapidly growing recurring revenue base
Rapidly growing recurring revenue base And expected to continue to grow over time 60% Recurring Revenue Mix ($m) Fueled by High Customer Stickiness CAGR: 35% CAGR: 44% 119 30 48 2.6% 79 19 Churn Rate 64 14 49 35 Recurring 28 10 revenue rapidly 32 24 71 growing to 7 137% 13 Net Retention 19 24 35 43
Slide 27: Nayax platforms approaching retailers from all angles
Nayax platforms approaching retailers from all angles Unattended Retailer Instore Payment Online Ecommerce 27
Slide 28: Nayax Technology
Nayax Technology David Ben Avi Co-Founder and CTO 28
Slide 29: Nayax Unattended Technology
Nayax Unattended Technology 29
Slide 30: What are Nayax’s Key Technology Principles?
What are Nayax’s Key Technology Principles? Global infrastructure based on Nayax’s proprietary core 1 technology Security, reliability, redundancy, high availability and fast 2 responsiveness is Nayax’s expertise Agile organization to support innovation, rapid development and 3 frequent releases 4 M
Slide 31: The Nayax Eco-System
The Nayax Eco-System Operator Pulse MDB CCI Back Office & Telemetry Cellular / Ethernet / WiFi Payment Engine Consumer Device Nayax Data Center Payment Gateway / Bank Lynx Retail API Cortina VCCS (JVMA) OCPP API Gateway API MARSHALL 3rd party ERP Retail POS Payment App 31
Slide 32: Typical Transaction Flow Overview
Typical Transaction Flow Overview CONSUMER NAYAX DEVICE NAYAX SERVER ACQUIRER 1 2 3 Pays via card Initiates Encrypted Encrypted reader POS transaction with Nayax transaction data Servers 4 NAYAX SERVER ACQUIRER CARD ISSUER CARD SCHEME 7 6 5 Sends approval Processes & Generates an to Nayax Approves t
Slide 33: Nayax Network Flow and Site Topology
Nayax Network Flow and Site Topology Secure Tunnel 2WAY IPSEC VPN 33
Slide 34: IT Infrastructure and Security Information
IT Infrastructure and Security Information Privacy Department Information Security Regulations & standards Aligned with GDPR (EU Privacy Laws) Certified PCI DSS L1 service provider Aligned with CCPA (California Privacy Laws) Certified ISO 27001:2013 - Procedures and processes Aligned with Israeli Pr
Slide 35: Product Innovation and Go-to-Market
Product Innovation and Go-to-Market Carly Furman Keren Sharir CEO, North America CMO 35
Slide 36: Platform Video
Platform Video 36
Slide 37: Nayax Platform
= hae OS Platform aaa
Slide 38: Leading end-to-end retail technology and payments platform for unattended commerce and beyond
Leading end-to-end retail technology and payments platform for unattended commerce and beyond Telemetry and Payments Management Suite Software Suite Loyalty & Marketing Integrated POS Suite 38
Slide 39: Global payments acceptance network maximizes sales
Payments Suite Global payments acceptance Covering the most used payment network maximizes sales methods ▪ Connections and capabilities to deliver enterprise payments Schemes ▪ International payment network helping customers maximize payment conversion and acceptance across multiple countries • Merc
Slide 40: Nayax’s integrated POS is a key competitive differentiator
Integrated POS Nayax’s integrated POS is a key competitive differentiator ▪ Integrated POS devices enable the acceptance of digital payments Branded Integrated POS solutions for a vast array of retailers’ needs ▪ Devices hardware and software is designed and developed in-house with Nayax’s own speci
Slide 41: Telemetry and management software suite provides full visibility to retailers
Telemetry and Management Software Suite Telemetry and management software suite provides full visibility to retailers Accessible and easy-to-use telemetry ▪ Proprietary software management suite serves as a central intelligence hub for our and management solutions customers ▪ Customers can remotely
Slide 42: Loyalty & marketing suite drives incremental revenue
Loyalty & Marketing Suite Loyalty & marketing suite drives incremental revenue Consumer Links to POS & Ordering Engagement Systems ▪ Proprietary consumer engagement marketing and loyalty platform Mobile & Web Promotions & Instant ▪ Front-end: Monyx Wallet, an e-wallet that allows consumers to make e
Slide 43: The goal: increase retailers' bottom line
The goal: increase retailers' bottom line Higher labor Recurring productivity customers Decreased Increased costs revenues 43
Slide 44: Nayax Emerging, High-growth Verticals
Nayax Emerging, High-growth Verticals 44
Slide 45: Our platform delivers differentiated in-store solutions
Our platform delivers differentiated in-store solutions ▪ Platform also delivers attended retail POS and payment systems, leveraging its differentiated global payment infrastructure and software platform ▪ Developing a complete management suite for attended market with marketing capabilities, loyalt
Slide 46: Introducing Weezmo
Introducing Weezmo The marketing insights platform for retailers Giving retailers the tools to engage with their customers and increase ROI by connecting the online and in-store attribution and gaining full visibility of their customers’ journeys. Digital Case study: marketing In-store Physical Digi
Slide 47: EV Meter - complete EV charging solutions for your charging network
EV Meter - complete EV charging solutions for your charging network Residential & Commercial environments EV Charging Stations HIVE – Management Platform Payment Solutions A universal charging stations, A smart cloud-based management A built-in payment solutions accepting designated for residential
Slide 48: Tigapo
Tigapo Innovative payment and management platform for FECs & Amusement Routes Leveling up the operators’ game by offering players a customized and engaging experience. in longer sessions, increased spending, and a higher percentage of Resulting repeat players Mobile app Kiosk Tigapo’s Redemption Clo
Slide 49: Go-to-Market Strategy
9 “ 9 Go-to-Market eee Strate V7 Oy
Slide 50: Nayax answering all retailers needs
Nayax answering all retailers needs
Slide 51: We’ve got you covered
We’ve got you covered Order stock to Collect stock in Receive & load warehouse warehouse stock to truck Backorder Stock machine Manage business Drive to machine stock with items and employees location Cashless operations / cash Provide refunds Collect expired items Collect collection to consumer and
Slide 52: Multichannel GTM strategy addressing the global opportunity
Direct Sales Multichannel GTM strategy addressing Enterprise Sales Team Inside Sales Team Marketing Global sales team of 30 Global team of 20 SEO Webinars the global opportunity 10 languages spoken 7 languages spoken Covering 8 markets Colleague/ PPC Influencers referrals Online Shop Social Affiliat
Slide 53: Managing our CAC and growth
Managing our CAC and growth Local high touchpoint - high revenue Order operation High automation & CSM onboarding Generated Leads Conversion Midsize KYC and Contract Ongoing growth efforts Low automation – webinars, meetups, promos, new features, product launches, newsletters, email Lower value oppo
Slide 54: Nayax North America & Customer Case Studies
Nayax North America & Customer Case Studies Carly Furman CEO, North America 54
Slide 55: North America Market
= = ivi North ® America Market NN
Slide 56: US market leader with accelerated growth trajectory
US market leader with accelerated growth trajectory Statistics from March 2021 to March 2022: • 68% Increase in customers • 42% Increase in managed and connected devices • 98% Increase in transaction volume 56 Source: company data
Slide 57: Market leader- our sales approach
Market leader- our sales approach Multi-channel and multi-vertical selling strategy • Direct strategic partnerships • Experts in the unattended market Enterprise & VIP customers • Solve our customers' communicated pain points US sales team • Education-based sales approach SMBs eCom /inside sales tea
Slide 58: Case study: Innovative Vending Solutions (IVS)
Case study: Innovative Vending Solutions (IVS) USA, Canada and Israel (and Global presence and 10K+ Locations Purchased 10K+ Nayax devices with a expanding into system (massage chairs and plan for growth in the next Qs EU) kiddie strollers) Challenges Faced Outcome Nayax increased our sales by over
Slide 59: Case Study: Five Star Food Services
Case Study: Five Star Food Services largest Canteen Franchise Purchased 25K+ Nayax devices with a USA Global presence and 75K+ Locations plan for growth in the next Qs; using system VendSys Challenges Faced Outcome Nayax increased our average + Using our loyalty campaigns by SKU to leverage supplier
Slide 60: Case Study: EV Charging
Case Study: EV Charging USA & Smart open payment, Rapid expansion of 10K+ Nayax devices deployed nationally Canada easily integrated the open charging by the largest CPO networks on infrastructure multiple OEM chargers Challenges Faced Outcome + CPOs to reach a larger pool of EV drivers and meeting
Slide 61: Financial Overview
Financial Overview Sagit Manor CFO 61
Slide 62: Powerful business model build on solid recurring revenue
Powerful business model build on solid recurring revenue Embedded Payment Multi Layers of Value Creation Purchase fee per sold Hardware connected POS “Lock in” SaaS Monthly Subscription Fee (SaaS) per connected POS 60%+ Recurring Revenue Processing fee as % of transaction Payments volume • Consisten
Slide 63: Execution on Strategy Resulting Consistent & Strong Growth
Execution on Strategy Resulting Consistent & Strong Growth Just Starting our journey around the world HighRevenue Growth Recurring ($m)($m) Revenue Revenue by Region ($m) CAGR: 35% 119 CAGR: 43% 119 14 13 Rest of the World 48 79 79 71 50% 64 3 67% 8 40 Australia 49 35 28 44 26 34 24 36 71 23 11 25 4
Slide 64: Superior Payment Processing Economics
Superior Payment Processing Economics Dominating the attractive Merchant Acquirer segment of Unattended POS Attractive Payments Take Rate Blended Gross Profit ($m) 60 2,000 2.6% 2.6% 1,800 48 Historical 50 2.4% 1,600 1,400 2.0% 2.2% 1,425 2.1% 40 37 8 ~25% GM 1,200 1.6% 11 30 27 Highly 1,000 698 769
Slide 65: Higher Operating Expenses to Support Strategic Growth Plan
Higher Operating Expenses to Support Strategic Growth Plan R&D Expense ($m) SG&A Expense ($m) CAGR: 53% CAGR: 44% 17 38 2 17 25 8 66% 50% 19 7 1 15 9 5 1 5 13 8 12 0 0 3 5 21 8 5 7 16 6 0 3 5 5 11 3 8 7 5 2018 2019 2020 2021 Q1 2021 Q1 2022 2018 2019 2020 2021 Q1 2021 Q1 2022 Payroll & Related Expen
Slide 66: Highly Visible Path to profitability and $1Bn Revenue
Highly Visible Path to profitability and $1Bn Revenue Long Term Growth Model & Profitability Framework +35% annual revenue growth ~FY23-FY24 ~FY27-FY28 Target Highly visible growth fueled by new REVENUE GROWTH +35% +35% connected devices % of RECURRING REVENUE ~60% - 65% ~65% - 70% Global scale and
Slide 67: Nayax in Numbers
Nayax in Numbers Strong growth, high recurring revenue, and winning market share Consistent Top Line Growth Strong Recurring Revenue1 High Recurring Margins Growth 35%+ 67%+ 55%+ Revenue CAGR (2018-2021) SAAS and processing fees Q1.22 Over Q1.21 Q1.22 Significant Customer Growth High Net Retention R
Slide 68: Thank You
Thank You 68
Slide 69: Key definitions
69 Key definitions • Managed and Connected – Devices that are operated by our customers. • End Customers – Customers that contributed to Nayax revenue in the last 12 months. • Recurring Revenue – SAAS revenue and payment processing fees. • Dollar-based net retention rate - Measured as a percentage o