Araxi Limited · JSE:AXX
Araxi — Capital Appreciation — Investor Presentation (July 2023)
30 slides from Araxi's investor presentation, Jul 20, 2023
Slide 1: Unlock the Stock
Unlock the Stock 20 July 2023 1
Slide 2: International
We are a financial technology company that seeks to serve and partner with established and emerging financial enterprises and other large corporates International Payments Software 2
Slide 3: Investment Case
✓ Strong Secular Growth Trends Capital Appreciation’s Investment ✓ Large Market Opportunity – Domestic and International Case ✓ Trusted Partner to Blue-Chip Clients ✓ Demonstrated Leadership and Track Record An extremely strong ✓ Deliberate focus on and investment in the future foundation on which t
Slide 4: Expanding Representative Blue-Chip Clients
Expanding Representative Blue-Chip Clients Financial Services Retail Healthcare Telecoms Logistics Delivering services in over 20 countries 4
Slide 5: Everything Digital
Everything Digital The new, post-Covid world General Payments Software ✓ Increased interest in digitalisation ✓ Substantial demand for payment ✓ Increasing demand for Synthesis terminals and Responsive offerings ✓ Increased understanding of strategic importance and ✓ Strong demand for Android ✓ Dema
Slide 6: CTA Snapshot
CTA Snapshot General Payments Revenue Acquiring, developing The Payments division manages payment infrastructure, delivers payment technology and growing innovative solutions and a lay-by platform on behalf of leading financial services, 48% institutions technologies & Payments has grown its termina
Slide 7: Growth Continues Across the Group
Growth Continues Across the Group Total terminal estate up 18% Payments Annuity Revenue up 24% Payments revenue sources 37% 6yr CAGR (now >50% of Payments’ revenue) 328 12% 277 Sale of terminals 217 R million ‘000s 185 Terminals rental income 140 268.6 49% Maintenance and support 216.5 92 34% servic
Slide 8: FY 2023 Financial Performance
FY 2023 Financial Performance Characterized by 4 factors ✓ Exceptional Revenue growth in Software ✓ Payments resilience despite delays in new terminal orders owing to economy ✓ Substantial investment for growth ✓ Expected credit loss provision related to GovChat 8
Slide 9: Investing for Tomorrow
Investing Launch of Halo Dot offering in for international markets Launch of Dashpay Glass in South R30m Tomorrow Africa, both including advertising & marketing International expansion in Europe Substantial investment expensed Net new employee hires (97 YoY) in current period R36m Responsive acquisi
Slide 10: Sustainable Cash Flow From Operations Supports Dividends
Sustainable Cash Flow From Operations Supports Dividends Resilient HEPS excl ECL (cents per share) Revenue growth restrained by delays in terminal orders Profits impacted by substantial early developmental cost of R109m for future growth 13.40 13.40 13.19 7.44 6-year operating cash flow of R1.2 bill
Slide 11: Payment Services Offered
Payment Services Offered Customers can select packages or selected services a la carte Devices Software Activations & Logistics Call Centre • Stand alone: counter-top and • Software development and testing • Asset management • Product support portable • R&D • Key injection • Problem identification •
Slide 12: Global View of Terminal Demand
Global View Drivers of Ongoing Demand of Terminal Demand ✓ Growing Market – Increase in terminal enabled retail footprint ✓ Enhanced Technology 136 million ✓ Increased Functionality – Provide terminals shipped in 2021 % YoY merchants enhanced services Geography Volume (m) Change ✓ Terminal Envy – Me
Slide 13: Continued Product Evolution
Continued Product Evolution Full end-to-end solution available in components – branded or on white label basis Halo Dot SDK is a software development Halo Dot Plus allows you to apply kit that allows integrators to embed a your brand to a pre-certified app and contactless payments into their own rap
Slide 14: Driving Real Results
Driving Real Results Still early days . . . “Save Now, Buy Later > 900 FY22 Unit of Measurement YoY Growth Merchants Payment Plans created QTY Thousands + 569.40% Tens of millions 95% Merchant Order Value User Sign Up QTY Tens of thousands + 446.01% + 635.58% Completion rates Transaction Revenue Ten
Slide 15: Software Operating Units
Software Operating Intelligent Data Managed Services Payment Technology • Data Intelligence is critical to (MSP) & Cryptography Units drive business success • 24 x 7 x 365 support and • Responsible for Keystone and • Our team of Machine Learning management of high availability Halo Dot development a
Slide 16: Global Market for Cloud Continues to Grow
Global Market for Worldwide market share of leading cloud infrastructure service providers in Q3 2022 Cloud 34% Continues 21% to Grow . . . 11% 5% Up 24% YoY 3% 3% SA market expects 30% 2% 4-year CAGR 2% *includes platform as a service (PaaS) and infrastructure as a Capital Appreciation’s service (I
Slide 17: The Value of Cloud Transcends IT
The Value Of Cloud 1 Rejuvenate Transcends IT $340 billion • IT cost optimization • Risk reduction • Core-operations digitization Estimated at more than US$1 trillion 2 Innovate $750 billion • Innovation-driven growth Source: McKinsey & Company - Independent third-party research data (Omnicom Group
Slide 18: AI – It's Here and Reliant on Cloud
Generative Sentiment Analysis Algorithms Data Science Reinforcement Learning AI – it’s Here Predictive Learning Automation Analysis Machine Learning Data and Reliant Processing Chat GPT Language GPT 3 Algo Natural on Cloud AI Recommendation Systems Chatbots Robotics Generative AI LLM Big Deep Artifi
Slide 19: Everyone's Assistant
Everyone’s If you are wondering what to use Assistant ChatGPT for here is a poem it just wrote...share with Brad. Diane. In a world where fetch is a delight, There’s Lucy, our dog, shining so bright. She doesn’t retrieve like others might, A poem generated about Brad’s family dog But her cuteness fi
Slide 20: Simply Astonishing!!!
Simply Astonishing!!! Time Taken to Reach 100 Million Users Time Taken to Reach 1 Million Users (Months) (Days) 1 400 90 80 1 200 70 100 million 1 000 60 users within 50 60 days 800 1 277 40 78 600 70 61 30 912 912 55 400 730 41 20 30 395 10 200 304 76 213 2 9 152 0 5 0 20 Sources: UBS / Yahoo Finan
Slide 21: Getting To Know Dariel
Getting To Know Dariel Services Cloud Practice Partners App Development Digital Transformation Active Clients Building for Converting for Cloud Cloud Integration Audit/Review Leveraging for Using the Cloud Cloud Cloud Managed Services “Engineered software is an art” – Malcolm Rabson, Dariel Managing
Slide 22: International Highlights
International ✓ International revenue up 177% Highlights ✓ Offices in Amsterdam gaining momentum ✓ Halo Dot ✓ Intelligent Data Considerable progress in ✓ Focused effort to further diversify the establishing an customer base international presence ✓ Enhanced access to international opportunities ✓ Ne
Slide 23: Use Case
Use Case Solution Automated quality assurance system that parses verbiage to check agent compliance How a top 5 bank has Using: scaled to meet • An inference pipeline using multiple AWS services to process text with a Transformer language model regulatory • Analytics dashboard to ingest the results
Slide 24: Use Case
Use Case Capitec approached Responsive to partner in the redesign and development of their public facing website. The goal was to be more customer centric and to drive new client acquisition from a Africa’s First Optimizely Digital retail banking perspective. Experience Cloud Responsive enabled and
Slide 25: PayShap
PayShap Cloud Division The PayShap platform was launched in March 2023 and was built to BankservAfrica address key goals recognised by the South African Reserve Bank (SARB) and Payments Association of South Africa (PASA) to deliver a low-value, instant consumer-to-consumer payment service that can r
Slide 26: RegTech for South African financial services
RegTech for RegTech Division South African Solution financial services Synthesis built a central reporting function that collates data from all business units to prepare a unified view of the & insurance giant customer from the group's perspective and then sends it on to SARS to meet its regulatory
Slide 27: Growth Strategy
Organic growth opportunities are plentiful for a Payments business with an established base, immense Growth industry knowledge and deep technical expertise Strategy ✓ Grow market for devices ✓ Continue to take market share in established segments ✓ Support existing clients ✓ Refresh industry’s legac
Slide 28: Growth Strategy
Boundless opportunity for a business with an established Software track-record in thought-leadership and innovation Growth ✓ Leverage partnerships – New and existing - Confluent, Strategy AWS , GCP - to grow domestically and internationally ✓ Grow license revenue – from proprietary software solution
Slide 29: General Prospects
General ✓ A broad range of organic and acquisitive growth opportunities available to Capital Appreciation Prospects ✓ Acquisition activity will depend on strategic fit as well as valuations ✓ Economic climate is impacting our clients and remains present in our planning Capital Appreciation is well ✓
Slide 30: Q&A Thank you
KX Q&A Thank you [A
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