Change Financial Ltd · ASX:CCA
Change Financial — FY2021 Earnings Presentation
27 slides from Change Financial's earnings presentation, Aug 31, 2021
Slide 1: Annual Report Presentation
Annual Report Presentation For the year ended 30 June 2021
Slide 2: Disclaimer
Disclaimer Change Financial Important Notice This presentation has been prepared by Change Financial Limited (Change Financial) in good faith. No express or implied warranty is given as to the accuracy or completeness Limited of the information in this document or the accompanying presentation. All
Slide 3: Payments as a Service provider
Payments as a Service provider Change has the vision and Vision Priorities capabilities to simplify payment Simplifying payment experiences experiences worldwide worldwide. Ambition Grow from the Perform with core strong results To be a leading Payments as a Service provider through simple, flexible
Slide 4: Delivering scalable payments solutions
Delivering scalable payments solutions Payments solutions provider, driving innovation in the Banking as a Banking as a Service Service ecosystem. Payments as a Service Payment testing Issuing physical, BNPL, Digital wallets, Transaction Payment Testing All network digital and Apple Pay, Google proc
Slide 5: Company snapshot
Company snapshot Leveraging our people and customer base to grow our payments and testing 16m+ cards 99 different currencies solutions. Scalable payments platform Agnostic payments solutions 96% client retention 8+ years average tenure Sticky client base Highly engaged clients Processing for the maj
Slide 6: Building a strong foundation for growth
Building a strong foundation for growth Transformative year for Change, acquiring world class solutions to extend our payment FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 capabilities. ✓ MasterCard certified ✓ Strategic acquisition to build ✓ Completed Phase 1 of ✓ Pi Pay partnership processor launched in on pay
Slide 7: Global fintech with local expertise
Global fintech with local expertise We have a diverse team of 80 people with local knowledge to support our 136 customers across Athens 36 countries. Los Angeles Santo Domingo Brisbane Melbourne Auckland 136 clients Our offices / staff Our clients Clients in 36 7 Large and growing countries customer
Slide 8: Products
change. Products
Slide 9: Payments as a Service
Payments as a Service Our payments Our payment platform aims to lower the barrier of entry for solutions power banks, fintechs and brands to deliver digital card solutions to card programs their customers. around the globe. Issuing physical, Prepaid, debit Digital wallets, Apple Transaction digital
Slide 10: Tailored payments solutions to suit our clients' needs
Tailored payments solutions to suit our clients’ needs Our technology allows our clients to deliver innovative and market leading card solutions to their customers. “Change’s staff are knowledgeable, professional and cooperative across every project. They have helped us ME Bank’s Digital Experience
Slide 11: Testing platform
Testing platform PaySim enhances Enables financial institutions to test their payment systems to our customers' meet the reliability and performance expectations of their speed to market by customers. PaySim simulates the full transaction lifecycle, delivering automated, enabling banks and fintechs
Slide 12: Testing platform to speed up clients' processes
Testing platform to speed up clients’ processes PaySim is the de By removing the complexity of needing to integrate facto standard for with third party and physical testing devices, the EFTPOS testing in PaySim solution speeds up the testing process, cutting Australia and all costs and delivering se
Slide 13: White Label Mobile Wallet
White Label Mobile Wallet A digital wallet Change recently announced our partnership with SaaS platform for Pi Pay. Under the partnership, Change’s solution fintechs and banks will enable Pi Pay to offer digital acquiring services to deliver world to more than 50,000 merchants, as well as mobile cla
Slide 14: FY21 Results
change. FY21 Results
Slide 15: Financial Performance
Financial Performance Transformative year for the business, Year ended 30 June (US$’000) FY21 Adjustments¹ FY21 FY20 FY21 Actual Actual Combined Actual v FY20 generating strong Proforma² Actual ARR and laying the foundations for Proforma Annualised Revenue 6,313 2,120 8,433 258 2,344% future growth.
Slide 16: Revenue Breakdown
Revenue Breakdown Revenue by Product Revenue by Region Diverse range of customers and Other Products Oceania 26% product usage 5% globally. SE Asia LATAM 46% 17% Expansive regional 60% presence and a 35% USA platform for future 8% growth and expansion. Rest of the World 3% Revenue by Client Type Top
Slide 17: Strategy
change. Strategy
Slide 18: Core strategies to drive growth
Core strategies to drive growth Working with Be famous Be competitive Be different Deloitte, we FY24 analysed our FY22 FY23 products, capabilities and global market Evolve Change’s products and explore Change leads the market with opportunities. growth accelerators innovative payment solutions Objec
Slide 19: A large addressable market for growth opportunities
A large addressable market for growth opportunities We are focusing on US TAM 4 key markets; US, LATAM, SE Asia and $8.3T 6% 153B Oceania. Our Transaction value Transaction volume growth Transaction volume # target countries have a TAM of over USD $10 trillion. LATAM TAM $1.1T 11% 46B 49% Transactio
Slide 20: FY22 Key deliverables for growth
FY22 Key deliverables for growth Our Be Competitive year will focus on integration of our platforms, feature FY22 Q1-Q2 FY22 Q3-Q4 development, partnerships and customer growth. ✓ Payment Card Industry Vertexon SaaS Platform Partnership model enabled Enhanced Customer Support PA-DSS Certificat
Slide 21: Experienced management team
Experienced management team Our management team has extensive payments and financial services experience in multiple international markets. Alastair Wilkie Tony Sheehan Clayton Fossett Vinnie D’Alessandro Arnold Lee Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Produc
Slide 22: Thank you.
Thank you. Get in touch investors@changefinancial.com
Slide 23: Appendix
change. Appendix
Slide 24: Statement of Profit or Loss
Statement of Profit or Loss Year ended 30 June FY21 FY20 US$ US$ Revenue & other income 6,313,343 258,312 Employee benefits expenses (5,451,265) (1,684,449) Advertising & marketing expense (36,616) (41,736) Program expense (297,129) (125,964) Professional services & insurance (555,592) (378,204) Con
Slide 25: Statement of Financial Position
Statement of Financial Position As at 30 June 2021 30 June 2020 US$ US$ Cash and cash equivalents 4,019,001 2,966,200 Trade and other receivables 2,360,898 231,875 Lease receivable – current - 161,980 Other current assets 368,203 5,564 Total Current Assets 6,748,102 3,365,619 Property, plant & equip
Slide 26: Statement of Cash Flows
Statement of Cash Flows Year ended 30 June 30 June 2021 30 June 2020 US$ US$ Receipts from customers 6,091,317 4,102 Payments to suppliers and employees (7,879,153) (3,117,723) Interest received 10,790 22,807 Interest paid (19,549) (22,456) Government grant programs 60,549 230,000 R&D tax offset - 1
Slide 27: Key operating metrics
Key operating metrics Our focus is to grow our ARR for our payments and Average Customer Tenure Customer Retention Revenue Split testing solutions. (years) ARR Project and Licence Loyal customer base who are supportive of our engagement and 30% product strategy. 56% 8.5 8.3 100% 96% 44% 70% 27