Novatti Group Ltd. · ASX:NOV
Novatti — Q1 FY25 Earnings Presentation
13 slides from Novatti's earnings presentation, Oct 30, 2024
Slide 1: Sept Quarter FY25 – Activities Update
For personal use only Novatti Group Limited (ASX:NOV ) Sept Quarter FY25 – Activities Update 30 October 2024
Slide 2: Important Information
Important Information This document has been prepared by Novatti Group Limited (Novatti) for information This document may include statements or information relating to past performance of the purposes about Novatti and its subsidiary companies (Novatti Group). It should be read in Novatti Group. An
Slide 3: Our Purpose: We enable businesses to pay and be paid
For personal use only We enable businesses Our Purpose to pay and be paid, from any device, anywhere. 3
Slide 4: Competitive advantage is Total Payment Solutions
Competitive advantage is Total Payment Solutions A full payments stack and ability to offer E2E solutions for customers For personal use only Acquiring Omni-channel payment Issuing acceptance for merchants: Visa prepaid, debit and gift online, embedded and in-store cards, digital wallets and program
Slide 5: Our strategy
Our strategy Transformation from a group of independent businesses into a focused Total Payment Solutions For personal use only business. Underpinned by positive cashflow and 3 year 70%+ margin targets. Simplify Market Led, Lift Financial the Business Customer-Focus Performance 5
Slide 6: Transition underway to positive cashflow
Transition underway to positive cashflow For personal use only COST REDUCTIONS • A further $2.8m cost reduction to be implemented in Q2 FY25 STRATEGIC PARTNERSHIPS • Provide volume and operating leverage over existing fixed cost base POSITIVE CASHFLOW AND GROSS MARGIN EXPANSION ASSET SALES • Identif
Slide 7: Q1 FY25 – Initiatives implemented
Q1 FY25 – Initiatives implemented For personal use only Simplify the Market Led, Lift Financial Business Customer Focus Performance o IBoA interest sold - o Commenced brand o QoQ reduction in normalised $2.87m refresh & repositioning net operating cash outflow to o Clearing historic liabilities o Tr
Slide 8: Q1 FY25 – turnaround impact continuing
Q1 FY25 – turnaround impact continuing * Novatti Group Revenue and ex IBoA & AUDD Total Costs* 17.2 For personal use only 18 $12.9m $7m+ 16 14 12.3 14.0 13.5 12.8 13.4 13.6 14.4 AUD million Q1 FY25 Annualised cost 12 12.9 Group Revenue reduction implemented 10 11.3 11.4 10.3 – New record 8 9.3 8.9 1
Slide 9: Q1 FY25 – cash use reducing
Q1 FY25 – cash use reducing For personal use only Sept 24 4C Normalisation adjustment Normalised Sept 24 4C $4.6m $'000 $'000 $'000 Cash at end Receipts from customers 28,690 28,690 of Q1 FY25 Product manufacturing and operating (25,999) (25,999) Staff Costs (4,534) 1,360 Historic PAYG and staff exi
Slide 10: Q1 FY25 – Focused on positive cashflow target
Q1 FY25 – Focused on positive cashflow target For personal use only Further cost reduction Continued growth o Streamlining and automation enables o Targeting mid-sized merchants and further $2.8m in annualised cost savings to integrated software partners come in Q2 FY25: • Internationals entering AU
Slide 11: Growth opportunity ahead - Payments AU/NZ
Growth opportunity ahead - Payments AU/NZ For personal use only Australian businesses Medium and large Businesses that believe they need to businesses said invested in digital improve their payments are critical payments reported payment systems for their digital improved revenue or transformation c
Slide 12: Opportunity plays to our strengths
Opportunity plays to our strengths For personal use only Payments Payments Technology Investments AU/NZ International Solutions Issuing Alternate Basis 2 International Payments Bank of Australia Cross Border Key growth Emersion market AUDD Acquiring ATX Enterprise Bill Payments Software Divested in
Slide 13: The path forward
The path forward For personal use only o Novatti brand refresh and repositioning in Q2 FY25 o Entry and penetration of target verticals and segments o Further $2.8m in annualised costs identified to be removed in Q2 FY25 o Payments AU/NZ supply chain restructure to improve gross margin – retain a 70