Slide 1: FY23 Financial Results Presentation
For personal use only FY23 FINANCIAL RESULTS PRESENTATION Gratifii Limited (ASX: GTI) September 2023
Slide 2: Disclaimer
Disclaimer All currency amounts in this presentation are in Australian Dollars (AUD). This presentation has been prepared by Gratifii Limited (ABN 47 125 688 940) (“Gratifii”). Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set
Slide 3: Financial Summary FY23
FINANCIAL SUMMARY FY23 For personal use only 6 consecutive halves of revenue growth FY23 REVENUE FY23 FULL CASH AT 30 CASH RECEIPTS SHARES ON FROM YEAR POSITIVE JUNE 2023 2-YEAR CAGR ISSUE ORDINARY OPERATING TO END OF ACTIVITIES CASH FLOW FY23 1,323m SHARE PRICE $29.9m $0.5m $1.69m* 89% $0.0101 MARK
Slide 4: Gratifii's Unique End-to-End Solution
GRATIFII’S UNIQUE END-TO-END SOLUTION Gratifii is Australia’s only provider of end-to-end Loyalty (software & services) and Rewards For personal use only Enterprises want: Loyal Customers expect: LOYAL CUSTOMERS REWARDS SOLUTIONS • Gratifii has developed a • Gratifii provides Enterprises market-lead
Slide 5: Target Operating Model
TARGET OPERATING MODEL Gratifii has a target to charge new clients a combination of SaaS fees, service fees and a margin on rewards to For personal use only generate an average margin of 20-22% Loyalty Platform Rewards Fees earned: SaaS & Service fees Margin on rewards Typical revenue per Every doll
Slide 6: Gratifii's Loyal Customers
Gratifii’s Loyal Customers For personal use only New clients in FY23 FY23 investor presentation 6
Slide 7: Gratifii has quickly established itself as a leading provider of end-to-end loyalty & rewards
Gratifii has quickly established itself as a leading provider of ‘end- to-end’ loyalty & reward solutions to the Australian market. For personal use only THEN NOW FUTURE FY2021 FY2023 FY2024 + Australia’s only ‘end-to- Offering Loyalty Software Offering end’ loyalty and rewards Offering Continued de
Slide 8: FY23 Financial Highlights
FY23 Financial Highlights Strong organic growth profile For personal use only • Organic growth accounted for 61% of FY23 FY22 Change revenue growth and 39% from Hachiko Total Revenue $30.2m $12.1m* ▲ 150% acquisition Revenue from • Revenue growth was offset by $0.9 million $29.9m $12.1m* ▲ 148% ordi
Slide 9: Key Indicators: Sustainable Profitability
KEY INDICATORS SUSTAINABLE PROFITABILITY Capable of self-funding Gratifii’s strong growth profile For personal use only Revenue Margin Clients & Users R&D Expenditure Currently ~$32m Margin to improve • Currently integrating R&D of $3.0m in FY23 (annualised) • Clients taking whole significant contra
Slide 10: Quarterly Cash Receipts (#039;000)
QUARTERLY CASH RECEIPTS ($’000) For personal use only 10,000 9,313 9,000 Q4FY23 included a special EOFY ~$1.7m 8,000 rewards program with Mitsubishi. 7,000 7,613 5,867 6,000 5,524 5,748 5,000 FY23 4,000 3,120 3,265 3,895 RECORD 3,000 2,000 1,769 CASH 1,197 1,000 648 682 656 RECEIPTS - Q1 Q2 Q3 Q4 Q1
Slide 11: Key Cash Highlights
Key Cash Highlights FY23 record cash receipts of $26.5m (+139% on FY22) The record FY23 result is a culmination of various factors including: For personal use only o Accelerated uptake of all products from new and existing clients o The strong result highlights the countercyclical nature of Gratifii
Slide 12: FY23: A Transformational Year
FY23: A Transformational Year ✓ Key client projects delivered: For personal use only • Niterra • Rest Superannuation • FAB Group • Cornerstone Health • Student Edge • Seagrass Boutique Hospitality Group ✓ Surpassed 150,000 active users on Mosaic platform ✓ RACV signed and phase 1 built and delivered
Slide 13: Diversified, High Quality Client Base
Diversified, CLIENTS BY INDUSTRY CLIENTS BY PROGRAM TYPE High Quality Client Base For personal use only Retail B2B* IT 13% Resources 36% 31% 8% Financial Member End-to-end loyalty services 12% Consumer 19% 7% solution Other Health Employee 28% 7% 33% • Delivering loyalty Automotive 6% services and r
Slide 14: Key FY23 Operational Highlights
Key FY23 Operational Highlights Transformational 3-year contract signed with RACV • Contract expected to generate ~$8.8m in additional revenue in For personal use only FY24* and represents Gratifii’s largest SaaS contract to date. Contract anticipated to deliver ~$13.0m revenue in FY25* Acquisitions
Slide 15: Record Year for New Clients Going Live
Record Year for New Clients Going Live ✓ Niterra: Launched to approx. 5,000 independent garages For personal use only and workshops: https://powerperks.com.au/ ✓ FAB Group: Gone live with Caci branded clinics to sell their Murad and Skin Smith products: www.caciverse.co.nz ✓ RACV: Phase One built an
Slide 16: Record Year for Client Delivery
For personal use only RECORD YEAR FOR CLIENT DELIVERY Cementing our position as Australia’s only full-service solution delivering loyalty, content and service through a single platform. FY23 investor presentation 16
Slide 17: Outlook - 1QFY24 & Beyond
Outlook - 1QFY24 & Beyond Operating Cashflow • Positive Operating Cashflow: FY23 = $0.5m For personal use only Delivery of Phase 2 of the RACV contract during H1FY24: • Upon completion of Phase 2 of the project in 3QFY24, Gratifii anticipates it will transition to cashflow positive. 1QFY24 – Seasona
Slide 18: Outlook - 1QFY24 & Beyond
Outlook - 1QFY24 & Beyond R&D Expenditure • R&D expenditure forecast to normalise at $0.4m per quarter by Q3-Q4FY24 post RACV Phase 2 delivery For personal use only • Base level R&D team/expenditure to be reduced from current $200k per month to $90k per month from Jan 2024. Strong start to FY24 • Ju
Slide 19: Major emerging opportunity with member organisations
Major emerging opportunity with member organisations For personal use only GRATIFII’S SOLUTIONS DEPLOYED IN THREE MAJOR SECTORS CONCENTRATED EXTENSIVE SIGNIFICANT MARKETS REACH OPPORTUNITIES AUSTRALIAN Deals executed with 3 Access to 3.8m of Provide members MOTORING CLUBS of 7 organisations 8.9m mem
Slide 20: Powering Loyalty Success
POWERING LOYALTY For personal use only SUCCESS WELCOME TO THE GRATIFII GROUP! Best-in-class loyalty platform for a smarter, faster customer experience, combined with exciting curated rewards at a remarkable value point, and delivered by an experienced managed services team with proven marketing prow