Novatti Group Ltd. · ASX:NOV
Novatti — Investor Presentation (April 2020)
18 slides from Novatti's investor presentation, Apr 20, 2020
Slide 1: Investor Update, 20 April 2020
ASX: NOV APR 2020 INVESTOR UPDATE NOVATTI GROUP LIMITED (ASX:NOV) 20 APRIL 2020
Slide 2: Disclaimer Important Notice
ISCLAIMER Important Notice The material contained in this document is a presentation of general information about Novatti Group Limited’s activities current as at the date of this presentation, 20 April 2020. It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: Corporate Overview and Key Metrics
NOVATTI GROUP LIMITED Key Metrics ASX Ticker NOV Corporate Overview Market cap @ $0.135 (as at 17 Apr 2020) $35.88m • Proven, robust, financial technology Ordinary shares on issue* 173.6m (* in addition, circa 9m shares awaiting shareholder • Continuing strong growth profile approval for Emersion ac
Slide 4: Strategy to Create Long-Term Value for Shareholders
STRATEGY TO CREATE LONG-TERM VALUE FOR SHAREHOLDERS Build partnerships Grow recurring revenues with major networks - Emersion acquisition - Visa - Rent.com.au partnership - Decta Focus on large market segments - Cross border payments Operate into - Card issuing large economies - Payments processing
Slide 5: Key FY20 Goals
ASX: KEY FY20 GOALS NOV • Continued strong revenue growth • Growing proportion of transaction processing • Continued growth of local and international business networks and partnerships • Progression of bank licence application and business launch
Slide 6: FY19 Financial Highlights
FY19 FINANCIAL HIGHLIGHTS Novatti Group Revenue Strong revenue growth Diversified revenues Primarily recurring and transactional revenues
Slide 7: Dec 2019 Financial Highlights
DEC 2019 FINANCIAL HIGHLIGHTS 01 02 03 04 Cash on hand at end of Core business continues Total revenue was $4.96m for Payment processing revenue quarter - $2.2m growth - payment December half year, up 29% expected to continue to grow processing revenue for Dec from the corresponding half in strongly
Slide 8: FY20 Operational Highlights
ASX: FY20 OPERATIONAL HIGHLIGHTS NOV 01 02 03 04 Growth in core products Continuing growth in Emersion acquisition Extensive R&D on International networks, to increase exposure Blockchain and Flexewallet, Flexepin, to business ChinaPayments, Basis2, B2B partnerships and Compliance platforms clients
Slide 9: Building the Networks and Partnerships for Future of Banking
BUILDING THE NETWORKS AND PARTNERSHIPS FOR FUTURE OF BANKING Remittance and Cross-Border Alternative Card Issuing Bank Partners Payments Payments • Direct Card Issuing • Prepaid Cards • Corporate Cards • International Bill Payments Money Transfer Operators • P2P Payments • Global Settlements
Slide 10: Regulatory
REGULATORY Australian Financial Australian Securities & AUSTRAC E-Money Issuing Complaints Authority Australian Stock Investment Commission Registration License (AFCA) Exchange • Australian Financial Remittance Network Authorised Electronic Money Member Public Listing VISA Partner & Services Licence
Slide 11: Remittance and Cross-Border
REMITTANCE AND CROSS-BORDER ~ World Bank ranking of 11th largest remittance sending country globally, compared to 19th in 2011 ~ In 2017, USD 16.8bn was sent from Australia to other countries. Substantial growth from USD 3.7bn in 2011 ~ China was preferred destination country with USD 3bn, followed
Slide 12: Card Issuing, Program Management
CARD ISSUING, PROGRAM MANAGEMENT ~ US$19.6B in 2019 to reach $31.2B by 2023 ~18.5% increase prepaid market during 2014-2018 ~12.4% predicted increase during forecast period of 2019 - 2023 • Visa principal partner-card issuer • Tailored prepaid cards issued through Vasco Pay subsidiary • First progra
Slide 13: Emersion Acquisition Rationale
EMERSION ACQUISITION RATIONALE Emersion is a leading provider of Customer Engagement, Payment, Provisioning and Subscription Billing solutions. Emersion empowers teams to work remotely and securely, helping them Engage their customers, Integrate their systems and Automate their billing and payment p
Slide 14: Emersion Overview Value Creation
EMERSION OVERVIEW Emersion integrates diverse business systems (e.g. Accounting, Payment Gateways, Suppliers, Vendors and Internal Systems). This means that manual and time consuming processes like subscription billing, invoicing, payment processing, collections and reporting can be automated. This
Slide 15: Transaction Overview
TRANSACTION OVERVIEW Enterprise value: Multiple: Transaction type: $2.6m 2 x ARR Asset purchase Consideration Transition & Integration Savings and Growth • Shares – 16,725,000 shares • Bolt on acquisition • Strong technology and staffing synergies • Cash – $1,000,000 in monthly • Cultural alignment
Slide 16: Compelling Value Acquisition
COMPELLING VALUE ACQUISITON Revenue Recurring revenue Cashflow Circa $2m with significant >80% of revenue is recurring Positive cash flow. potential for further growth, including during COVID-19 APAC presence Novatti Revenue Synergy Savings Local Melbourne based Enhances ongoing revenue To be reinve
Slide 17: Bank Licence Update
BANK LICENCE UPDATE Final submission lodged March 2020 – APRA Core management team November 2019 advised pause on continuing to develop approvals due to customer and COVID-19 partnership base ready for launch ASX:
Slide 18: Contact
ASX: CONTACT NOV Peter Cook Peter Pawlowitsch CEO Chairman peter.cook@novatti.com peter.pawlowitsch@novatti.com +61 411 111 153 +61 419 299 302 www.novattigroup.com investor@novattigroup.com This presentation has been approved for release to the ASX by Peter Cook, Managing Director.