Gratifii Ltd · ASX:GTI
Gratifii — Merger or Acquisition (August 2022)
24 slides from Gratifii's merger presentation, Aug 11, 2022
Slide 1: Hachiko Acquisition Presentation
Hachiko Acquisition Presentation Presented August 2022
Slide 2: Disclaimer
Disclaimer All currency amounts in this presentation are in Australian Dollars (AUD). This presentation has been prepared by Gratifii Limited (ABN 47 125 688 940) (“Gratifii”). Each recipient of this presentation is deemed to have agreed to accept the qualifications, limitations and disclaimers set
Slide 3: Executive Summary
Executive Summary Gratifii is acquiring Hachiko, a specialised loyalty and rewards marketing agency, creating an ‘end-to- end’ loyalty and rewards provider • Gratifii will acquire Hachiko Pty Limited (“Hachiko”), a specialised loyalty and rewards marketing agency • The acquisition is funded via a mi
Slide 4: Executive Summary
Executive Summary Gratifii is acquiring Hachiko, a specialised loyalty and rewards marketing agency, creating an ‘end-to- end’ loyalty and rewards provider PF EBITDA of +$0.3m, FY22A Revenue (A$m) FY22A EBITDA (A$m) assuming $0.6m of identified synergies 0.6 Pro-forma Financial Metrics 19.3 12.1 (0.
Slide 5: Corporate Snapshot
Corporate Snapshot Gratifii has transformed into a leading loyalty and rewards provider About Gratifii Limited (ASX:GTI) Gratifii (ASX:GTI) is an ASX-listed technology company that enables businesses to drive customer engagement with loyalty and rewards programs. The core product, Mosaic™, is a cust
Slide 6: Strategic Rationale
Strategic Rationale
Slide 7: Why Acquire Hachiko?
Why Acquire Hachiko? Opportunity to disrupt the Loyalty space with a unique blend of loyalty, rewards and engagement To respond to increasing market demands for personalised customer experiences, Gratifii has an opportunity to differentiate with stronger focus on customer engagement. Options include
Slide 8: As One Group
AS 56 6 ONE Talented Offices around people the World GROUP 85 WE ARE: Enterprise customers $19M+ FY22 Annual turnover (unaudited) A blend of best-in-class loyalty brands This combined strength puts Gratifii in a far better position to help more customers and employees the world over, to power up the
Slide 9: Business Model
Business Model Gratifii charges clients a combination of retainer, SaaS fees and a margin on rewards Front End Loyalty Engine Rewards Web Development / Member Suite of SaaS API modules that power Source and supply of market leading Suite of SaaS API modules that Engagement / Marketing loyalty and re
Slide 10: Immediate Growth Opportunities
Immediate Growth Opportunities Hachiko provides and unlocks immediate growth opportunities SaaS Opportunity Gratifii’s core SaaS module up to $1.5m p.a. Require Gratifii’s (Neat Ideas) Rewards Opportunity rewards ~$3.0m+ p.a. Hachiko’s ‘front end’ To win & service medium expertise sized enterprise c
Slide 11: Hachiko and Gratifii Synergies
Hachiko and Gratifii Synergies Two businesses that strongly complement each other The integration of Hachiko into Gratifii will form Australia/New Zealand’s only fully integrated, end-to-end loyalty and rewards service provider Gratifii / Hachiko as a client of Gratifii Hachiko Neat Ideas Hachiko
Slide 12: Pro-forma Financials
Pro-forma Financials This acquisition will increase Gratifii’s scale, with combined pro-forma FY22A (unaudited) revenue of ~$19m and EBITDA of ~($0.3m) Gratifii Hachiko MergeCo FY22A revenue breakdown A$'000 FY22A FY22A FY22A Gratifii - Pre-acquisition SaaS 2,255 - 2,255 On-boarding On-boarding 174
Slide 13: Filling the Gaps in the Gratifii Org-chart
Filling the Gaps in the Gratifii Org-chart Member engagement expertise to round up the Gratifii solution Strategy Data Sales Operations Rewards & Content Technology Engagement Managed Partnerships Acquisition Development Product Delivery Website/UX Marketing Service Hachiko Opportunity Presentation,
Slide 14: Expanded Management Team
Expanded Management Team to drive growth Iain Dunstan Mark Justin Sarah Fallon Daniel Donna Managing Director Schoombie Jefferies CEO Neat Ideas Nissen Adam & CEO CTO COO Head of Sales CEO Hachiko A blend of best-in-class loyalty brands Hachiko Opportunity Presentation, Aug 2022 14
Slide 15: Hachiko Overview
Hachiko Overview
Slide 16: About Hachiko
About Hachiko Hachiko is a well-established specialised loyalty and rewards marketing agency with a very strong footprint in IT What is Hachiko? Revenue Model Hachiko is a specialised loyalty and rewards marketing agency Hachiko charges a monthly retainer 21 staff with operations in Australia (S
Slide 17: Hachiko Content Examples
Hachiko Content Examples Click on the screen for an example case study Convincing design & marketing skill and a credible brand with aligned values Hachiko Opportunity Presentation, Aug 2022
Slide 18: What does Hachiko do?
What does Hachiko do? Hachiko is a loyalty marketing company with ~35 enterprise customers Building & Delivering a Campaign Engaging the Sales Channel Rewarding the Sales Channel Design & Creative Generate Competition Merchandise Website development Challenge the channel with clear and Extensive cat
Slide 19: Hachiko Expertise
Hachiko Expertise Highly experienced, loyalty and rewards professionals joining Gratifii Patrina Kerr Donna Adam Patrina Kerr founded Hachiko in Donna Adam is a highly motivated 2012 with the vision to create a world and experienced channel leader class loyalty-led marketing agency. and joined Hachi
Slide 20: Hachiko Financial Overview
Financial Overview Gross revenue ($m) EBITDA ($m) FY20A-FY22A CAGR: 15.6% FY20A-FY22A CAGR: 76.5% 7.2 0.65 6.7 0.61 5.4 0.20 FY20A FY21A FY22A FY20A FY21A FY22A FY22A gross revenue FY22A gross revenue by Hachiko sources industry Chart Title Marking Setup income - 2% Trade Retail Distribution Loyalty
Slide 21: Transaction Summary
Transaction Summary
Slide 22: Transaction and Funding Structure
Transaction and Funding Structure Gratifii is acquiring Hachiko on an attractive multiple with limited dilution A$m Hachiko equity value 3.59 Acquisition EV Hachiko cash and net working capital adjustments 0.56 Cash consideration funded from: • $1.250m share placement Hachiko acquisition enterprise
Slide 23: Powerful Benefits
POWERFUL BENEFITS Better Stronger Greater Innovation Engagement Rewards Our union allows us to blend the best-in- Whilst we’ll retain our individual names and each offer class people, programs, technology and our business-as-usual services, we will work together as rewards to better serve our client
Slide 24: Results You'll Love
RESULTS YOU’LL LOVE WELCOME TO THE GRATIFII GROUP! The best technology for a smarter, faster customer experience, is combined with exciting curated rewards at a remarkable Iain Dunstan – CEO & Managing Director value point, and delivered by an experienced managed services team with proven marketing