Novatti Group Ltd. · ASX:NOV
Novatti — Q4 FY24 Earnings Presentation
12 slides from Novatti's earnings presentation, Jul 31, 2024
Slide 1: June Quarter FY24 – Activities Update
For personal use only Novatti Group Limited (ASX:NOV) June Quarter FY24 – Activities Update 31 July 2024
Slide 2: Important Information
Important Information This document has been prepared by Novatti Group Limited (Novatti) for information This document may include statements or information relating to past performance of the purposes about Novatti and its subsidiary companies (Novatti Group). It should be read in Novatti Group. An
Slide 3: Our purpose
Our purpose For personal use only We enable Payment processing Omni-channel acceptance Global payments Asian wallets businesses to E-commerce Cross border payments EFTPOS China Payments - Bpay bills SoftPOS Tap to Pay pay and be Unparalleled paid capabilities Cards Alternative payments Prepaid and D
Slide 4: Our strategy
Our strategy Transformation underway since start of FY24 – shifting from a group of independent For personal use only businesses into a focused Payment Solutions business. Underpinned by positive cashflow and 3 year 70%+ margin targets. Simplify Market Led, Lift Financial the Business Customer-Focus
Slide 5: FY24 – Initiatives implemented
FY24 – Initiatives implemented For personal use only Simplify the Market Led, Lift Financial Business Customer Focus Performance o Payments now core o New marketing and sales o $1.8m Q4 net operating cash under new strategy leadership reduction against Q3 o Integrating the o Streamlined access to o
Slide 6: Q4 FY24 – turnaround impact showing
Q4 FY24 – turnaround impact showing* Group Revenue For personal use only 14 $1.8m $4m+ 12.4 12.5 12 10.9 10.7 10.2 9.3 8.9 Q4 net operating cash Annualised cost 10 AUD million reduction against Q3 reduction implemented 8 6 4 2 $12.5m +23% 0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4
Slide 7: FY24 – turnaround impact clear
FY24 – turnaround impact clear For personal use only Annual Revenue and Expenses (ex IBOA) 50.0 46.5 45.0 $46.5m +19% 40.0 39.0 FY24 revenue Increase 36.6 – new record in annual 35.0 32.5 AUD $ million 29.4 revenue 30.0 29.0 25.0 -21% -38% 20.0 Decrease in annual Q4 YoY cash 15.0 operating expenses
Slide 8: Q1 FY25 – Focused on positive cashflow target
Q1 FY25 – Focused on positive cashflow target For personal use only Further cost reduction High margin revenue o $3m in annualised cost savings to come in o Targeting mid-sized merchants and Q1 FY25: integrated software partners • Removal of wholesale Cross Border • Internationals entering AU/NZ mar
Slide 9: Pursuing high-margin revenue
Pursuing high-margin revenue In line with positive cashflow target, pursuing higher-margin revenue through a market led For personal use only and customer focused approach. Target verticals Building on Novatti strengths Early results Education o Building on a known brand and o 15% increase in mercha
Slide 10: Growth opportunity ahead - Payments AU/NZ
Growth opportunity ahead - Payments AU/NZ For personal use only Australian businesses Medium and large Businesses that believe they need to businesses said invested in digital improve their payments are critical payments reported payment systems for their digital improved revenue or transformation c
Slide 11: Opportunity plays to our strengths
Opportunity plays to our strengths For personal use only Payments Payments Technology Investments AU/NZ International Solutions Issuing Alternate Basis 2 International Payments Bank of Australia Cross Border Key growth Emersion market AUDD Acquiring ATX Enterprise Bill Payments Software Divested in
Slide 12: The path forward
The path forward For personal use only o Further $3m in annualised costs identified to be removed in Q1 FY25 o IBoA cost reduction in Q1 FY25 o Pipeline of 500+ new merchants expected to be onboarded by end of H1 FY25 o Further optimisation and divestment decisions expected following strategic revie