Change Financial Ltd · ASX:CCA
Change Financial — Investor Presentation (August 2022)
35 slides from Change Financial's investor presentation, Aug 3, 2022
Slide 1: Investor Presentation – Capital Raise
For personal use only Investor Presentation – Capital Raise 3 August 2022
Slide 2: Executive summary
Executive summary For personal use only Simplifying payment Critical Payments Global B2B fintech providing solutions for banks & fintechs in 40+ countries experiences globally to Infrastructure Two core products in the banking & payments ecosystem: be a leading PaaS Vertexon (Payments as a Service (
Slide 3: Outlook
Outlook For personal use only Proactive management Revenue Growth Targeting to deliver strong (double digit) revenue growth in FY23 actions to deliver strong Unaudited FY22 revenue approximately US$8.3m (A$12.0m) yet profitable revenue Key drivers of growth: growth Long-standing client base with con
Slide 4: Background: key acquisition has focused strategy as PaaS provider
Background: key acquisition has focused strategy as PaaS provider For personal use only Focussed strategy to Launched payments & card issuing platform targeting US based clients provide financial 2019 Received formal certification as a Mastercard processor in US; only 2nd company in last 20 years in
Slide 5: Change today: delivering scalable payments solutions
Change today: delivering scalable payments solutions For personal use only Payments solutions provider, driving innovation in the Banking as a Service banking ecosystem Payments as a Service Payment testing Physical & Transaction Digital payments Full payment Visa, Mastercard, ATM & POS virtual card
Slide 6: Global fintech with local expertise
Global fintech with local expertise Our offices / staff Our clients For personal use only Diverse team with local knowledge to support Critical payments our loyal & growing infrastructure Deep client integration client base Athens Los Angeles Santo Domingo Global footprint 156 Clients in 41 countrie
Slide 7: Comparable payment infrastructure providers
Comparable payment infrastructure providers For personal use only Strong growth ANZ Landscape Global (outside ANZ) opportunity through 3rd party card issuing & processing capability no longer a core Digital payments driven by post-pandemic ecommerce & addressing gap in focus for Big 4 banks contactl
Slide 8: Key 'building blocks' delivered in FY22
Key ‘building blocks’ delivered in FY22 For personal use only Milestones achieved in Milestone Why it’s important FY22 provide foundations for Launched Vertexon PaaS platform in Oceania in late 2021 accelerated future Launch of Major client wins – 4 NZ financial institutions & 3 US fintechs – onboar
Slide 9: Vertexon: Payments as a Service (PaaS)
Vertexon: Payments as a Service (PaaS) For personal use only u Lowers the barrier of entry for banks & fintechs to deliver innovative digital card solutions to their customers Vertexon powers card programs around the globe Processing Processing & Issuing (P&I) Key Product Cloud hosted; platform used
Slide 10: Vertexon: early in transition but momentum accelerating
Vertexon: early in transition but momentum accelerating For personal use only u Transition from licence model to SaaS is driving an increase in average client value & aligns Change’s & client’s growth Strategic partnerships & issuing capability Estimated Annualised No. of Clients Upside Potential dr
Slide 11: Key recent client wins
Key recent client wins For personal use only Recent wins anticipated 4 NZ Financial Institutions 3 US Fintechs to generate in excess of US$12.9m revenue over Milestone PaaS (P&I) contracts with 3 NZ credit unions Gaining traction in US with 3 fintechs secured as new initial terms & 1 NZ building soc
Slide 12: Vertexon: large global opportunity
Vertexon: large global opportunity For personal use only Large market potential Potential Customer Type Example Customer ANZ US South East Asia LATAM Deal Value (5 yrs) with targeted areas of near-term opportunity BDO Unibank Banks US$1m - $5m 120+ 2,100+ 180+ 400+ (Philippines) Financial institutio
Slide 13: PaySim: critical payments infrastructure testing tool
PaySim: critical payments infrastructure testing tool For personal use only Software facilitates u Simulates the full transaction lifecycle, enabling banks & fintechs to complete end-to-end testing of their payment remote testing platforms & processes without the need for u Enables financial institu
Slide 14: PaySim: diverse blue chip & emerging global client base
PaySim: diverse blue chip & emerging global client base For personal use only Globally recognised u Licence sales are key to future growth & complemented by new SaaS products & features solution simulating over Estimated Annualised No. of Clients Upside Potential 60k transaction Revenue Run Rate var
Slide 15: SaaS Revenue Transition
For personal use only SaaS Revenue Transition
Slide 16: Revenue model transition
Revenue model transition For personal use only Vertexon – Old Revenue Model Vertexon – New Revenue Model Transitioning from Licence Processing Processing & Issuing (P&I) licence & project fee On premise solution – client Cloud hosted – client responsible for Cloud hosted – Change responsible for rev
Slide 17: Vertexon: contract revenue breakdown (indicative only)
Vertexon: contract revenue breakdown (indicative only) For personal use only Example client (prepaid card program) New Model (SaaS) Material revenue uplift Example illustrates an indicative Old Model from transition to SaaS program of 25k prepaid cards. Processing & Revenue Stream (US$) Type Licence
Slide 18: Investment highlights
Investment highlights For personal use only Simplifying payment Critical Payments Global B2B fintech providing solutions for banks & fintechs in 40+ countries experiences globally to Infrastructure Two core products: Vertexon (PaaS) & PaySim (payment testing) be a leading PaaS Deep client integratio
Slide 19: Capital Raising
For personal use only Capital Raising
Slide 20: Capital Raising Overview
Capital Raising Overview For personal use only A$5.7m capital raise Transaction Overview providing pathway to Offer Size A$5.72m, via the issue of approximately 114.5 million fully paid ordinary shares positive monthly EBITDA Placement to raise A$0.75m via the issue of approximately 15.0 million ful
Slide 21: Indicative Capital Raising Timetable
Indicative Capital Raising Timetable1 For personal use only Key Events Key Dates Trading halt Monday, 1 August 2022 Announcement of Placement & Entitlement Offer Wednesday, 3 August 2022 Record date for the Entitlement Offer 7:00pm (AEST) Monday, 8 August 2022 Settlement of New Shares issued under t
Slide 22: Appendix
For personal use only Appendix
Slide 23: Tailored PaaS solutions to suit our clients' needs
Tailored PaaS solutions to suit our clients’ needs For personal use only Vertexon enables Vertexon ‘On Premise’ Solution Vertexon ‘Cloud’ Solution clients to deliver innovative & market leading card solutions to their customers ME Bank’s Digital Experience BDO Cards & BNPL NZ Financial Institutions
Slide 24: A large addressable market for growth opportunities
A large addressable market for growth opportunities For personal use only Focussed on 4 key US TAM markets; US, LATAM, SE Asia & Oceania with a $8.3T 6% 153B combined TAM of Transaction value Transaction volume growth Transaction volume # >US$10 trillion LATAM TAM $1.1T 11% 46B 49% Transaction value
Slide 25: Management team
Management team For personal use only Management team has extensive payments & financial services experience Alastair Wilkie Tony Sheehan Clayton Fossett Vinnie D’Alessandro Arnold Lee CEO & Managing Director Chief Financial Officer Chief Operating Officer Chief Product Officer Chief Technology Offi
Slide 26: Board
Board For personal use only Recently strengthened board with experienced payments & business executives Alastair Wilkie Ben Harrison Eddie Grobler Ian Leijer Tom Russell CEO & Managing Director Chairman Non-Executive Director Non-Executive Director Alternate Director to Chairman Alastair is an exper
Slide 27: Key Risks, Underwriting & Offer Restrictions
For personal use only Key Risks, Underwriting & Offer Restrictions
Slide 28: Disclaimer
Disclaimer For personal use only Item Description Disclaimer This investor presentation (“Presentation”) has been prepared by Change Financial Limited (ACN 150 762 351) (“Change” or the “Company”) and is dated 1 August 2022. This Presentation has been prepared in relation to a proposed capital raisi
Slide 29: Disclaimer
Disclaimer For personal use only Item Description Disclaimer Except where otherwise mentioned, all dollar values are in Australian dollars (“A$”). Any pro-forma financial information provided in this Presentation is for illustrative purposes only and is not represented as being indicative of Change’
Slide 30: Disclaimer
Disclaimer For personal use only Item Description Disclaimer To the maximum extent permitted by law, each of Change, the Underwriters and their respective affiliates and related bodies corporate and each of their respective directors, officers, partners, employees, agents and advisers (together, the
Slide 31: Key Risks - General
Key Risks - General For personal use only Risk Description Key Risks There are risks involved with participating in the Offer and holding Shares in Change. Certain of these risks are specific to an investment in the Company and others are specific to investing in and holding shares. The occurrence o
Slide 32: Equity Capital Raising Risk
Equity Capital Raising Risk For personal use only Equity underwriting risk Key Risks The Company entered into an offer management and underwriting agreement with the Joint Lead Managers, being Henslow Pty Ltd and MST Financial Services Pty Ltd (“Underwriter”) in respect of the Placement and the Enti
Slide 33: Risks related to an investment in Change
Risks related to an investment in Change For personal use only Risk Description Key Risks The Company maintains insurance within ranges of coverage the Company believes to be consistent with industry practice and having regard to the nature of activities being conducted. No assurance, Insurance risk
Slide 34: International Offer Restrictions
International Offer Restrictions For personal use only Location Description Offer Restrictions WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised b
Slide 35: Thank you. Get in touch
For personal use only Thank you. Get in touch investors@changefinancial.com
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