Nayax Ltd. · TASE:NYAX
Nayax — Investor Day (March 2023)
62 slides from Nayax's investor day presentation, Mar 23, 2023
Slide 1: Nayax Capital Markets Day: Reaching New Heights
Nayax Capital Markets Day Reaching New Heights Today’s Agenda March 23, 2023 1
Slide 2: Agenda
Agenda 8:25 AM Introductions & Agenda – Virginea Stuart Gibson, IR 8:30 AM International Customer Video 8:35 AM Scaling to New Heights – Yair Nechmad, Co-Founder & CEO 9:15 AM Extending our Product Portfolio and Market – Keren Sharir, CMO 9:35 AM Break 9:50 AM Executing our Go-To-Market Strategy – K
Slide 3: Important Disclosure
3 Important Disclosure • This presentation is intended to provide general information only and is not, and should not be considered, as an offer to purchase or sell the Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, we undertake no C
Slide 4: Customers' Testimonial Video
Customers’ Testimonial Video 4
Slide 5: Scaling to New Heights
Scaling to New Heights Yair Nechmad Co-Founder and CEO 5
Slide 6: Advancing Our Mission is Yielding Positive Results
Advancing Our Mission is Yielding Positive Results Number of Customers (Thousands) Nayax has consistently added ~4k new customers per Q during 2022 47 42 38 34 30 OUR VISION Redefining commerce to benefit communities around the world Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Revenue ($m) Reported CAGR
Slide 7: Consistently Strong Financial and Operational Results
Consistently Strong Financial and Operational Results Global Scale Growth Offices in 9 countries and Dec. 2021: 517K/ Dec. 2022: 725K 42% Q4.2022 distributors in 46 markets managed and connected devices recurring revenue(1) YoY growth Devices in Dec. 2021: 30K/ Dec. 2022: 47K 57% Q4.2022 customer Yo
Slide 8: 8
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Slide 9: Retail Payment Trends and Challenges
Retail Payment Trends and Challenges 1 Digital payments 5 Loyalty 2 Omnichannel solution hybrid shopping 6 Personal shopping experience 3 Self-service 7 Local and sustainable 4 Scarcity of employees 8 Social media, ranking and influencers 9
Slide 10: Addressing the Unattended Opportunity has Substantial Barriers to Entry
Addressing the Unattended Opportunity has Substantial Barriers to Entry Capturing local markets with Omni-channel solution to low fixed cost every retailer Comprehensive, Integrations with unattended end-to-end solutions machines in multiple verticals Proprietary Integrated Global payments POS devic
Slide 11: Payments: Then and Now
Payments: Then and Now Credit card imprinters Digital Payments 11
Slide 12: Payment is the Center of Gravity
Payment is the Center of Gravity More than just a transaction! • Operation • Loyalty Payments Mobile Personalized Manage • Data Transaction Data Consumers 12
Slide 13: Nayax's platform increases sales and decreases costs for retailers
13 Nayax’s platform increases sales and decreases costs for retailers Omni-Channel Acceptance, Consumer Telemetry and Software Engagement & Loyalty Dynamic Routing/ Pricing Integrated Loyalty and Inventory POS Marketing Management Programs Consumers Retailers Suppliers Reporting Remote Cashless Inst
Slide 14: Long-Term Market Opportunity
Long-Term Market Opportunity 14 14
Slide 15: Large Underpenetrated Core Market with Long Runway for Increased Acceptance of Cashless
Large Underpenetrated Core Market with Long Runway for Increased Acceptance of Cashless Cashless payment volume in unattended retail estimated to …with vending machines representing 55bn of the 123bn significantly increase globally from 2020 to 2025… market for unattended retail by 2025 Growth: € 12
Slide 16: "One Nayax" Strategy: End-to-End Platform Expanding TAM and Driving SaaS
"One Nayax" Strategy: End-to-End Platform Expanding TAM and Driving SaaS Embedded payment solution Embedded financing solution Converting loyalty assets to Omni channel marketing platform currency Innovative platform for Family Entertainment Electric vehicle platform Self checkout platform Centers a
Slide 17: 5-Year Roadmap to $1bn Revenue & Profitability
5-Year Roadmap to $1bn Revenue & Profitability $1bn Revenue Target Long Term Growth Model & $1bn Profitability Framework +35% revenue growth driven Continue to Pursue targeted by secular expand and strategic FY27 – FY28 Target tailwinds internationally M&A Emerging, high- growth verticals Revenue Gr
Slide 18: Strategy for Sustained Long-Term Growth
Strategy for Sustained Long-Term Growth Pursue targeted and strategic M&A Continue to expand internationally Win new large enterprise and SMB customers globally Enter emerging, high-growth verticals Continue to innovate and develop new solutions Retain and grow with existing customers 18
Slide 19: Extending our Product Portfolio & Market
Extending our Product Portfolio & Market Keren Sharir CMO 19
Slide 20: Nayax Offers a Complete End-To-End Solution
Nayax Offers a Complete End-To-End Solution Integrated POS Cashless Payments Management Consumer Loyalty All-in-one cashless card Global, localized & Telemetry Suite & Engagement reader and telemetry payment acceptance for SaaS management system for Digital marketing platform device maximized enhanc
Slide 21: Product Portfolio by Category
POS Cashless Management Loyalty & Consumer Payment & Telemetry Engagement VPOS Touch EMV Payment MoMa 2.0 Onyx Prepaid system Nayax Core DOT (DCS 2.0) Scan to Pay UNO 8/10 EV Meter Core Nova Market Payments API Nova 55 / 45 Nayax Retail Core Nova 156 Management API Devices API Data 21
Slide 22: How Does it Work?
How Does it Work? Our Eco-System Operator Pulse MDB CCI Back Office & Telemetry Cellular / Ethernet Payment Engine / WiFi Consumer Device Nayax Data Center Payment Gateway / Bank Lynx Retail API Cortina VCCS (JVMA) OCPP API Gateway API MARSHALL 3rd party ERP Retail POS Payment App 22
Slide 23: Any Vertical, One Value Proposition
Any Vertical, One Value Proposition 23
Slide 24: End-to-End Platform, Expanding TAM and Driving SaaS
End-to-End Platform, Expanding TAM and Driving SaaS Complete Platform 24
Slide 25: Our Product Roadmap
Our Product Roadmap Enhancing the Core What is 2023 going to Penetrate new Verticals look like? Invest in innovative platforms 25
Slide 26: Enhancing the Core
Enhancing the Core — +t y= N f eeletly ® — ail as |= a il pelee Lt ponare =—— 7 = = L] i il
Slide 27: Elevating our Core Offering
Elevating our Core Offering Management POS and Cashless Payments 27
Slide 28: Sample of our Enhanced Features 2023
Sample of our Enhanced Payment Integrations Features 2023 2023 Q1 Q2 Q1 Conecs - France Incremental Authorization *Age-verification Accepting the leading 4 EMV-based meal Reduce your default credit, increase acceptance Offer age restricted products vouchers in France, thus providing more rate and ma
Slide 29: Pioneering new solutions
Expanding our TAM Pioneering new solutions 29
Slide 30: Penetrate New Verticals
Penetrate New Verticals Bar Games Parking Forecourt Uno-Plus Low power VPOS Touch / Complete Solution – Solution Scan2pay attended - unattended 30
Slide 31: Nayax
Nayax
Slide 32: Innovative Platform
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Slide 33: EV Meter Solutions
EV Meter Solutions EV Meter Core Nayax Payment Solutions Tailor-Made Solutions EV Charging Stations • Operations Management • Billing & Clearing • POS for card present • A white-labeled suite • Residential • Energy Management System transactions • Dedicated app • Commercial • Driver Services • Card
Slide 34: How Can Weezmo Help?
How Can Weezmo Help? Digital marketing We help retail marketers get the marketing insights they need to increase their revenue. Both in-store and online. + eCommerce In-store Post-purchase engagement Same budget, Seamless experience One single bigger revenue across all cannels platform 34
Slide 35: Serving More than 800 Global Brands
Serving More than 800 Global Brands 80% 43% 56% 41% Increase of Higher spend Monthly growth say that connecting online data with loyal customers in repeat customers in newsletter signups offline purchases is their BIGGEST marketing insights challenge What Do Retail Marketers Have to Say? Q12: What i
Slide 36: Product Portfolio Key Takeaways
Product Portfolio Key Takeaways 1 Enhancing our solution 2 Strengthens competitive positioning and increase customer loyalty 3 Capturing more verticals and markets 36
Slide 37: Executing Our Go-To-Market Strategy
Executing Our Go-To-Market Strategy 37 37
Slide 38: Efficient Sales Channels Tailored to Different Customers
Efficient Sales Channels Tailored to Different Customers, Cost Effective Market Capture Channel Operator Category Direct Sales • Enterprise sales team of 35 managers covering 9 markets • Global inside sales team targeting SMBs and Nano assistance Distributor/Partner • Licensed distribution partners
Slide 39: How Do We Enable Growth?
How Do We Enable Growth? Growing customers’ Bringing New Business installed base Leads Upsell – Cross Sell 1. SMB accounts 1. Increase their number of devices 2. Enterprise accounts (Nayax Capital) 3. New verticals and businesses 2. New offering 4. Nano merchants – eShop and ▪ Tigapo automated onboa
Slide 40: Winning Globally and Locally
Winning Globally and Locally Carly Furman CEO, North America 40
Slide 41: Bringing a Global Solution to the Local Market
Bringing a Global Solution to the Local Market Strong Track Record of Retaining & Growing Low Customer Global Reach Winning Clients Customers Concentration YoY Revenue Churn Rate Top 3, 6% Rest of the World 3.7% 3.6% 12% 3.2% 3.0% Top 4-10, 6% Europe 2.6% 40% Top 11-20, 5% Australia 10% 2018 2019 20
Slide 42: 2022 Key Milestones
2022 Key Milestones North America International More than doubled Expanded our the number of US international customers in 2022 Extended footprint with Canteen presence Launched in UAE and Corporate and Five Star New Zealand Expanded Reseller network in In Australia, partnered with 7- multiple verti
Slide 43: Our Continuous Goals
Our Continuous Goals Growth Building a transparent, cohesive, and data-driven sales organization with Profitability efficient processes. Customer Retention 43
Slide 44: Proven Growth
Proven Growth Land and Expand 100 Existing Customer Expansion ($m) (1) 95 90 85 80 75 70 Expand 65 Land Close 60 55 50 45 40 35 30 Solving pain points with Increase revenue organically 25 20 a scalable, solution- through additional 15 driven sales approach penetration and offerings 10 5 0 2017 2018
Slide 45: End-to-End Offering Across the Full Product Portfolio
End-to-End Offering Across the Full Product Portfolio Management Loyalty & Consumer Integrated POS Payments & Telemetry Engagement Suite Payment Integration System Integrations App integrations and loyalty Pulse solution campaigns Example: Example: Example: Example: Support for custom Large bott
Slide 46: RideOn – Australia
RideOn – Australia Amusement and Kiddie Ride Operator Challenge: Increase their revenue and bottom line Solution: Integrated our VPOS Touch with their pulse machines. Utilizing our device screens to offer multiple pricing options and count-up mode Conclusion: RideOn saw a 30% lift in revenue across
Slide 47: End-to-End Offering Across the Full Product Portfolio
End-to-End Offering Across the Full Product Portfolio Management Loyalty & Consumer Integrated POS Payments & Telemetry Engagement Suite Payment Integration System Integrations App integrations and loyalty Pulse solution campaigns Example: Example: Example: Example: Support for custom Large bott
Slide 48: Westbahn - Austria
Westbahn - Austria Austria’s second-largest train company Challenge: No cashless solution for Coffee Machines on board Solution: DOT QR Readers and Cortina External Prepaid Fully integrated digital experience 130 VPOST deployed Conclusion: Nayax developed a fast and secure easy to manage prepaid sol
Slide 49: End-to-End Offering Across the Full Product Portfolio
End-to-End Offering Across the Full Product Portfolio Management Loyalty & Consumer Integrated POS Payments & Telemetry Engagement Suite Payment Integration System Integrations App integrations and loyalty Pulse solution campaigns Example: Example: Example: Example: Support for custom Large bott
Slide 50: MOL Group - Hungary
MOL Group - Hungary MOL Group is a Major European Oil & Gas Company • 30 countries • 25,000 employees Challenge: Integrate multiple national loyalty programs and send data to their ERP system Solution Using LYNX API and Nayax’s Amazon SQS services to transfer data Conclusion: Nayax provided a comp
Slide 51: End-to-End Offering Across the Full Product Portfolio
End-to-End Offering Across the Full Product Portfolio Management Loyalty & Consumer Integrated POS Payments & Telemetry Engagement Suite Payment Integration System Integrations App integrations and loyalty Pulse solution Projects campaigns Example: Example: Example: Example: Support for custom L
Slide 52: Leading Bottler - Israel
Leading Bottler - Israel Challenge: • Digital wallet • Deep customer engagement • Clearing services Solution • SDK for their app • Special campaigns & offerings • Support & streamline processes Conclusion: • +80% increase in sales • +50% increase in customers 52
Slide 53: David Hartig, Five Star Food Service
David Hartig FIVE YSTAR 53
Slide 54: Path to Profitability
Path to Profitability Sagit Manor CFO 54
Slide 55: Powerful business model built on solid recurring revenue
Powerful business model built on solid recurring revenue Embedded Payment Multi Layers of Value Creation Purchase fee per sold Hardware connected POS “Lock in” SaaS Monthly Subscription Fee (SaaS) per connected POS 60%+ Recurring Revenue Processing fee as % of transaction Payments volume • Consisten
Slide 56: 2022 Nayax By Numbers
2022 Nayax By Numbers 725K $174M/46% 47% Managed and Connected POS devices Revenue/Increase 2022 over 2021 Recurring Revenue 2022 over 2021 40% 48% 42% 30 725 27 devices in 000's 51 25 685 47 41 23 21 in $000's 595 34 34 IN $000’S 553 20 21 517 16 13 11 25 27 30 21 23 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Slide 57: 2022 strategic investments - Building the foundation for growth
2022 strategic investments - Building today the foundation for tomorrow’s growth Solution innovation Automation and infrastructure • Enhanced efficiency and productivity from new implemented • Complete end-to-end platform in place to support global customer systems and tools expansion and internatio
Slide 58: Consistently Higher Recurring Revenue Supports the Underlying Growth
58 Consistently Higher Recurring Revenue Supports the Underlying Growth in our Business Revenue Growth ($m) Recurring Revenue Revenue Growth Growth ($m)($m) CAGR: 37% 235-240 174 ~40% 47% 105 69 119 Revenue $M/Gross Margin % 71 60/31% 79 48 64 37/33% 63% ~60% 49 35 28 105 24 71 45/79% 36 44 34/81% 2
Slide 59: 2022 Diverse Revenue Sources
2022 Diverse Revenue Sources Top 3, 6% Rest of the World Top 4-10, 6% 12% Europe SAAS Revenue 40% 26% Top 11-20, 5% Australia 10% Integrated POS Sales 40% Customer mix Geographies Revenue mix 2022 Top 21-50, 10% 2022 2022 Payment SMB, 73% Processing Fees North America 34% 38% 59
Slide 60: Initiates 2023 Outlook
Initiates 2023 Outlook Revenue HW Gross OPEX Adj. EBITDA Margin $235-$240M (At least 35%) Improvement to Slight growth of 5% Reaching breakeven Recurring Revenue ~60% mid-teens 2023 Guidance Assumptions • Continued execution of strategic growth plans; benefits of secular trends in digital payments.
Slide 61: Path to $1Bn Revenue and Profitability
Path to $1Bn Revenue and Profitability 5 Year Outlook Revenue Gross Margin Adj. EBITDA +35% Core/Growth engines +50% from Core/Growth +30% % of Recurring Revenue engines ~65% - 70% Long-Term Assumptions • Continued execution of strategic growth plans; benefits of secular trends in digital payments.
Slide 62: Thank You
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