Novatti Group Ltd. · ASX:NOV
Novatti — FY2020 Earnings Presentation
21 slides from Novatti's earnings presentation, Aug 27, 2020
Slide 1: FY20 results presentation
Digital banking 27 August 2020 FY20 results presentation
Slide 2: Important notice
Important notice The material contained in this document is a presentation of general information about Novatti Group Limited’s activities, current as at the date of this presentation, 27 August 2020. It is provided in summary and does not purport to be complete. You should not rely upon it as advic
Slide 3: FY20 performance highlights
FY20 performance highlights +60% $2b+ +50% Growth in processing revenue on previous financial year Value of transactions Approx average annual revenue growth for 3 years processed annually +33% Total revenue growth on previous financial year 3
Slide 4: About Novatti
Novactcti About Novatti
Slide 5: Who we are
Who we are Novatti is a leading digital banking and payments company. Through our innovative technology, and a global network, we enable every person to transact from any device, anywhere. In doing so, we position our customers to thrive as we shift to a digital, cashless society. 5
Slide 6: Business overview
Business overview Novatti has been methodically developing and acquiring the complementary capabilities to provide consumers with a fully digital banking service. In addition to creating a complete business based on digital banking, each of Novatti’s business units operate successfully on their own,
Slide 7: Why – cash is dying, the future is digital
Why – cash is dying, the future is digital We strongly believe that the shift to a cashless society will accelerate. “The way in which Australians are making payments is changing and new payment methods are emerging, often enabled by mobile technology.” Consumer Payment Behaviour in Australia, Reser
Slide 8: How Novatti makes money
How Novatti makes money Technology has enabled consumers to make purchases digitally, without cash. Novatti provides the technology platforms and services that enable these transactions to take place, on any device. Revenue streams include: Payment card issuing Digital payment Payment processing
Slide 9: FY20 - financial performance
FY20 - financial performance 9
Slide 10: Total revenue growth
Total revenue growth +50% Total annual revenue increased 33% to $11.86 million Averaged approx 50% total revenue growth each of the past three years Approx average Underpinned by continued growth in annual revenue core processing business growth for 3 years Total annual revenue 12 10 8 6 4 2 0
Slide 11: Processing growth
Processing growth $2b+ Novatti’s core business revenue grew 60% Five consecutive quarters of record processing revenue Positioned for growth post-COVID-19 Value of transactions processed annually Quarterly processing revenue 2.25 2 1.75 1.5 1.25 1 0.75 0.5 0.25 0 Jun 18 Sep 18 Dec 18 March 19
Slide 12: Cashflow
Cashflow +$12m Cashflow continues to strengthen Net cash used narrowed to just $16,000 in June quarter, down from $543,000 in March quarter Focus remains on using cash for growth Cash available* $2.6 million available at end of June quarter and $10.2 million share placement complete Curren
Slide 13: FY20 - operational performance
FY20 - operational performance 13
Slide 14: Launch of Visa card issuing business
. Launch of Visa card issuing business Culmination of a multi-year development campaign In September 2019, Novatti awarded Principal Issuer Licence by Visa Enabled Novatti to issue and distribute both physical and digital Visa cards 14
Slide 15: Strategic partnerships
Strategic partnerships Continued Novatti’s successful history of strategic partnerships with tier-one players in key markets: Partnerships spotlight Global payments leader Marqeta chose ChinaPayments enables Chinese Novatti as its partner to launch its prepaid residents to pay more than 35,000 card
Slide 16: Strategic acquisitions
Strategic acquisitions Novatti successfully acquired and integrated Emersion, with performance beating expectations Emersion combines diverse applications, including subscription billing, payments and provisioning, into existing business platforms FY21 expected to be a strong year for Emersion
Slide 17: Building the digital payments bank
Building the digital payments bank The culmination of all Novatti’s capabilities 1in4 will be a fully-digital banking service Novatti is developing a borderless, digital- only neobank Will leverage more than 100,000 Banking customers either customers through Novatti’s partners switched or seri
Slide 18: FY21 - outlook
Novactcti FY21 - outlook
Slide 19: FY21 - key objectives
FY21 - key objectives Drive further payments processing growth Continue strong total revenue growth Deliver new strategic partnerships Build payments banking services 19
Slide 20: Contact
Contact Novatti invites investors to keep up to date with news, events and industry research by joining the Novatti mailing list at: https://www.novattigroup.com/subscribe For further information, please contact: Peter Cook Managing Director Novatti Group Limited peter.cook@novatti.com +61 411 111 1
Slide 21: Appendix - company overview
Appendix - company overview Key metrics (as at 25 August 2020) 12 month share price history 0.45 ASX ticker NOV 0.4 0.35 0.3 Market cap @ $0.265 $59.9m 0.25 0.2 0.15 0.1 Ordinary shares on issue 226,085,499 0.05 0 $ Top 20 Shareholders 63.15% 21