Finseta Plc · LSE:FIN
Finseta — Cornerstone FS — Investor Presentation (December 2023)
28 slides from Finseta's investor presentation, December 2023
Slide 1: Premium Payment Solutions
PREMIUM PAYMENT SOLUTIONS
Slide 2: Disclaimer
Disclaimer The information contained in this confidential document and communicated during any delivery of the presentation, including the talks given by the presenters, any question and answer session and any document or material distributed at or in connection with the presentation (the “Presentat
Slide 3: Overview
Overview
Slide 4: Experienced Leadership
Experienced Leadership James Hickman Judy Happe Jordanna Curtis CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER CHIEF OPERATIONS OFFICER Over 25 years in the Financial Services Judy has extensive experience of raising Jordanna is an experienced projects and industry with the last 20 years' experienc
Slide 5: About Cornerstone
About Cornerstone Proprietary technology platform WHAT WE DO? Currency risk management, payment and electronic account services 58+ KEY CURRENCIES Solving currency and Innovating through payment challenges partnerships and expanding its payment for businesses and 150+ capabilities individuals around
Slide 6: Market Opportunity and Market Focus
Market Opportunity Market Focus Global payment market $1.98 Trillion $3.3 Trillion WE ARE FOCUSED ON HIGH THE GLOBAL PAYMENTS GLOBAL PAYMENTS VALUE HIGH MARGIN MARKET WAS WORTH IN REVENUES ARE TRANSACTIONS SERVICING 2021* FORECAST TO INCREASE BOTH CONSUMER AND TO BY 2026* BUSINESS CUSTOMERS. *The 20
Slide 7: Our Technology
Our Technology In-house Stable and High-Priority platform Scalable Security Front office system, which allows Deployed on Amazon Web The platform and APIs are customers to self-service. Services (AWS) and built within a secured using OAuth2 / OpenId microservices architecture. Connect methodologies
Slide 8: Financial Highlights
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Slide 9: Financial Highlights: Half-yearly revenue
Financial Highlights Half-yearly revenue £/000 4,000 +90% 3,602 3,500 2,926 3,000 H1 23 OVER H1 22 874 2,500 2,000 1,896 1,465 ACTIVE CUSTOMERS 1,500 +23% customers who traded 1,000 837 through Cornerstone in the 12 months to 30 500 H1 23 OVER H2 22 June 2023 - H1 21 H2 21 H1 22 H2 22 H1 23 H1 21 H2
Slide 10: Financial Highlights: Positive EBITDA
Financial Highlights Positive EBITDA GROWTH £'000 H1 21 H2 21 H1 22 H2 22 H1 23 H1 23 vs H1 22 H1 23 vs H2 22 Revenue 837 1,465 1,896 2,926 3,602 90% 23% Gross Profit 319 868 1,169 1,768 2,196 88% 24% Adjusted costs (1,022) (1,448) (1,719) (2,087) (2,006) 17% -4% Adj. EBITDA* (703) (579) (550) (319)
Slide 11: Financial Highlights: Operating and Net Profit
Financial Highlights Operating and Net Profit MOVEMENT £'000 H1 21 H2 21 H1 22 H2 22 H1 23 H1 23 vs H1 22 H1 23 vs H2 22 Adj. EBITDA (703) (579) (550) (319) 190 740 510 Other operating income - - - 31 184 184 153 £138k Profit on disposal of OPERATING PROFIT - - - - 207 207 207 subsidiary Share-based
Slide 12: Financial Highlights: H1 Cash flow
Financial Highlights H1 Cash flow £’000 £114k OPERATING CASH INFLOW £134k CASH GENERATION 12 CONFIDENTIAL | COPYRIGHT 2023
Slide 13: Financial Highlights: Balance Sheet Overview
Financial Highlights Balance Sheet Overview MOVEMENT £'000 H1 21 H2 21 H1 22 YoY HoH Total assets 2,839 4,377 4,531 1,692 154 RETURNED TO NET ASSET POSITION Cash 283 682 816 533 134 Loan notes - (2,398) (2,173) (2,173) 225 Net Debt 283 (1,716) (1,356) (1,639) 360 Deferred consideration reserve - (95
Slide 14: Financial Highlights: A transitional half year
Financial Highlights A transitional half year £'000 H2 22 H1 23 Adjusted EBITDA (319) 190 Operating profit (2,647) 138 Net profit (2,592) 35 Cash flow from operations (855) 114 Cash flow excluding fundraising* (985) 134 Net assets (90) 396 *Cash flow excluding fundraising is cash generated in the pe
Slide 15: Our Strategy
> Our Strategy
Slide 16: Our Strategy
Our Strategy Expanding our Geographic and Market footprint Enhancing our product capabilities Futureproofing the business 16 CONFIDENTIAL | COPYRIGHT 2023
Slide 17: Our Strategy: Expanding our Geographic and Market footprint
Our Strategy 58+ Expanding our Geographic and Market footprint KEY CURRENCIES 150+ COUNTRIES CUSTOMERS CAN SEND FUNDS TO Creation of Custom Delivering our existing Expanding the Cornerstone Solutions Sales Team product to new markets Payment Network Restructuring of UK sales Expanding our relationsh
Slide 18: Our Strategy: Enhancing our product capabilities
Our Strategy Global eIDV SCREENING Enhancing our product capabilities eKYC/eKYB ONBOARDING TOOL Card programme launch Customer focused product Compliance System 2024 growth Development Hire of Card Expert to Implementation of customer Investment in create and drive Card feedback processes, case depl
Slide 19: Our Strategy: Futureproofing the business
Our Strategy CANADA REGULATORY Futureproofing the business LICENCE (2024) UAE REGULATORY LICENCE (2024) Payment Diversification In House Team Growth Regulatory Expansion Utilising our Global Hiring of experts to Commencement of Payments network to build complete senior programme to expand up payment
Slide 20: Summary
Summary
Slide 21: Summary
Summary Profitable Significant Regulatory People Innovation strategic permissions through partnership progress & expertise Expect full year 2023 to be significantly Confident existing funding position is ahead of market expectations sufficient to support existing growth plans 21 CONFIDENTIAL | COPYR
Slide 22: Investment Case
Investment Case 1. 2. 3. 4. 5. Large market Strong growth Established Strong regulatory Diversified opportunity under new scalable and compliance revenue streams clear long- technology framework and term strategy platform permissions 22 CONFIDENTIAL | COPYRIGHT 2023
Slide 23: Thank you
Thank you ANY QUESTIONS 23 CONFIDENTIAL | COPYRIGHT 2023
Slide 24: Appendix
Appendix 24 CONFIDENTIAL | COPYRIGHT 2023
Slide 25: Experienced Board
Experienced Board Gareth Edwards Simon Bullock John Burns NON EXECUTIVE CHAIRMAN NON EXECUTIVE DIRECTOR NON EXECUTIVE DIRECTOR Gareth is a qualified solicitor and was previously a Over 30 years’ experience in CFO and other John Burns has over 40 years’ experience in the partner at law firm Pinsent M
Slide 26: Experienced Leadership
Experienced Leadership James Hickman Judy Happe Jordanna Curtis Bill Newton Rob O’Brien Arindam Ray CHIEF EXECUTIVE CHIEF FINANCIAL CHIEF OPERATIONS OFFICER CHIEF INFORMATION OFFICER CHIEF COMMERCIAL OFFICER CHIEF TECHNOLOGY OFFICER OFFICER OFFICER Over 25 years in the Judy has extensive Jordanna is
Slide 27: Our Technology
Our Technology Public APIs (BFF ) Core Services Event Bus Op erat i on Core appli cat i ons Cornerstone web apps Account A ccount management Pricing AWS VPC with Trade journal single AWS O A uth2 i dent i ty Financial service integration Kubernetes API Bank journal Logging, telemetry, Intergrations
Slide 28: ESG Progress
ESG Progress Effective Governance Learning and Employee Survey and Charity Sponsorship with Structure Development Scheme culture committee Involvement social focus Consumer Duty Available to all staff Run annual Employee Conducted Macmillan Ladies European Tour Committee: Established a Survey to enc
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