Novatti Group Ltd. · ASX:NOV
Novatti — Merger or Acquisition (October 2021)
14 slides from Novatti's merger presentation, Oct 20, 2021
Slide 1: Acquisition of ATX
For personal use only Acquisition of ATX A platform for further expansion in South East Asia 20 October 2021
Slide 2: Disclaimer
Disclaimer For personal use only 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 on 20 October 2021. It is provided in summary and does not purport to be complete. You should not re
Slide 3: Novatti enables businesses to pay and be paid
For personal use only Novatti enables businesses to pay and be paid, from any device, anywhere. From corner stores and startups to global organisations, our solutions will unlock your ambitions. 3
Slide 4: Corporate profile
Corporate profile For personal use only Twelve month share price chart 0.8 0.7 $141.6m 323.8m ~$18.3m $2b+ 0.6 Market Cap1 Total Cash2 Annual 0.5 Shares Transaction Volume3 0.4 0.3 0.2 0.1 125+ 8+ $16.5m+ 400+ $ 0 Employees Markets FY21 Sales B2B Globally Revenue Customers 1 Based on the closing sha
Slide 5: Acquisition of ATX
Acquisition of ATX For personal use only Novatti will acquire ATX – an innovative and fast-growing South-East Asian payments fintech $3m $0.6m 10.2m+ FY21 Annual FY21 EBITDA1 Annual Revenue1 transactions2 10k+ 30k+ 6 years Agents2 Touch Points Existing in Malaysia2 partnership with Novatti 1. Based
Slide 6: ATX – overview
ATX – overview For personal use only • Founded in 2011 in Malaysia* • Novatti partner since 2015 • Recognised as Top 50 rising startup in South East Asia by Tech in Asia • Developed and monetised a B2B2C bill payments ecosystem • Provides e-wallet partners, traditional Payments Aggregator Digital Wa
Slide 7: ATX – strong leadership team
ATX – strong leadership team For personal use only • Led by a group of strong founders and senior management • Importantly, key leadership team, including CEO and Director – Strategy, Sashie Kumar Kelly Koh Founder & CEO Founder & Director - Strategy have committed to future under • Leads commercial
Slide 8: ATX – target markets in Malaysia
ATX – target markets in Malaysia For personal use only • ATX is able to serve a number of Payments Aggregator (B2B) key markets across Malaysia* • Wholesale business (e-wallet, e- commerce, financial services, Value add services for closed loop wallet) • A key target is those markets retailers (B2B2
Slide 9: ATX – financial performance
ATX – financial performance For personal use only Normalised Revenue $3.0m • ATX generated normalised revenue of $2.8m in 3.0 $2.8m FY20 and $3.0m in FY21* • Also produced EBITDA of $0.4m in FY20 and 2.5 $0.6m in FY21, a 50% increase • Potential for accelerated growth under Novatti 2.0 $Millions FY2
Slide 10: Acquisition value proposition
Acquisition value proposition For personal use only Acquisition of ATX provides strategic value to Novatti on several fronts: On-the-ground Strong team Strong deal valuation De-risked through in South East Asia and solutions and growth potential existing partnership The acquisition creates an on-the
Slide 11: Alignment opportunities
Alignment opportunities For personal use only • Novatti and ATX have been partners since 2015* • To date, ATX has focused on leveraging Novatti’s ecosystem, Existing Issuing Acquiring Processing Billing Banking business Prepaid Visa Enabling Including Including Licence particularly technology cards
Slide 12: Platform for SE Asia expansion
Platform for SE Asia expansion For personal use only • Acquisition provides Novatti with a physical presence in Malaysia • Malaysia alone shows strong digital payments growth: o Population of 32m+1 o Digital wallets already representing 13% of point of sale payments compared to 8% in Australia2 o Mo
Slide 13: Transaction summary
Transaction summary For personal use only Novatti will acquire 100% of the shares in ATX for:* • Initial Consideration (at completion) o Cash: MYR12m (AUD$3.96m) o Shares: 3,600,000 new fully paid ordinary Novatti shares of a value equivalent to $1.98m at an issue price of $0.55 per share. Shares is
Slide 14: Summary
Summary For personal use only • Novatti to acquire Malaysia payments fintech ATX - recognised as a top 50 rising startup in South East Asia • Large established payments network, including 30k+ touch points across Malaysia • Revenue circa $3m and EBITDA circa $0.6m (normalised figures)* • Valuation m