Novatti Group Ltd. · ASX:NOV
Novatti — Q2 FY24 Earnings Presentation
9 slides from Novatti's earnings presentation, Jan 31, 2024
Slide 1: December Quarter FY24 – Activities Update
For personal use only Novatti Group Limited (ASX:NOV) December Quarter FY24 – Activities Update 31 January 2024
Slide 2: Disclaimer
The material contained in this document is a presentation of For personal use only general information about Novatti Group Limited’s activities, current as at the date of this presentation on 31 January 2024. It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: Our Mission
For personal use only Novatti enables businesses to pay and be paid from any device, anywhere. Our Mission From corner stores and start-ups to global organisations, our solutions will unlock your ambitions.
Slide 4: Q2 FY24 - key numbers
Q2 FY24 - key numbers* 12.0 Revenue Novatti Group 10.8 10.7 10.2 9.3 For personal use only 10.0 8.9 $10.7m 8.0 AUD million Q2 FY24 6.0 Group Revenue 4.0 2.0 -10% 0.0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Expense reduction QoQ Group Expense (excluding margin) 14 12.2 12 $10.8m 10 9.2 8.0 AUD millio
Slide 5: FY24 - quarter by quarter progress
FY24 - quarter by quarter progress Pivot underway from a diversified portfolio of independent businesses into a streamlined Payment For personal use only Solutions company, underpinned by positive cashflow target and 3 year 70%+ margin target We are here Q1 Q2 Q3 Simplify Optimise Cost the business
Slide 6: Results so far
Results so far Actions completed For personal use only ü Strategic review assessing all business areas against Gross Margin Payments AU/NZ financial goals 50% 45% ü Business portfolio re-organised 45% 43% 44% ü Internal restructure - new talent into key roles 40% 40% ü Streamlined sales process and
Slide 7: Q2 - Optimise financing
Q2 - Optimise financing Overview For personal use only ü Self-funding initiatives to remove operating costs ü Optimisation and divestment where required Action taken in Q2 ü 19.9% Reckon stake divested $10.5m >$1m o Creating greater flexibility to execute strategic review Corporate bond Cumulative g
Slide 8: Q3 – Cost reduction focus
Q3 – Cost reduction focus For personal use only Cost reduction Capital raising ü Strong mindset in the business ü Capital raising of up to $5.5m* ü Progress already made with 10% QoQ o Convertible note for up to $3.5m expense reduction in Q2 o Share Purchase Plan for up to $2m ü Approx. $4m annual c
Slide 9: The path forward
The path forward Simplify and focus For personal use only ü Operating cash flow positive target - mid 2024 ü Implement approx. $4m cost saving program ü Complete capital raising to optimise financing ü Finalise strategic review - focus business on payments ü Integrated sales - focus on cross selling