Change Financial Ltd · ASX:CCA
Change Financial — H1 FY24 Earnings Presentation
23 slides from Change Financial's earnings presentation, Feb 28, 2024
Slide 1: Investor Presentation H1 FY24 Results
For personal use only Investor Presentation H1 FY24 Results 28 February 2024
Slide 2: Delivering innovative & scalable payments solutions
Delivering innovative & scalable payments solutions u Change leverages innovative and scalable technology to provide tailored payment solutions, card issuing and testing to 150+ Payments solutions banks & fintechs across 40+ countries provider driving u Two core products in the banking & payments ec
Slide 3: H1 FY24 Summary
H1 FY24 Summary Successful validation ALL building blocks Completed ALL necessary regulatory and licensing requirements for issuing in NZ, US & AU and de-risking of now in place NZ: material de-risking of the business with the PaaS platform fully operational Vertexon PaaS US: PaaS platform live with
Slide 4: H1 FY24 Financial Results
For personal use only H1 FY24 Financial Results
Slide 5: Financial Dashboard
Financial Dashboard Revenue growth and Revenue (US$m) – H1 vs H2 EBITDA (US$m) – H1 vs H2 stable cost base driving $8.3m $8.7m FY21 FY22 FY23 FY24 improved EBITDA $6.3m (0.7) 4.4 (1.2) (1.1) % 4.5 +31 +5% (1.7) For personal use only 4.2 (0.2) $(1.3)m 3.8 4.3 4.5 (1.4) (0.8) 2.1 H1 H1 FY21 FY22 FY23
Slide 6: Profit & Loss
Profit & Loss Profit & Loss Summary Well positioned to scale Key Comments (US $000's) H1 FY24 H1 FY23 Var % the business incurring Revenue 4,472 4,280 4.5% H1 FY24 revenue of US$4.5m (A$6.9m1), up 5% on pcp only minimal COGS - - n/a Modest growth driven by professional services revenue incremental c
Slide 7: Revenue model transition – financial benefits to be seen in H2 FY24
Revenue model transition – financial benefits to be seen in H2 FY24 Vertexon – Old Revenue Model Vertexon – New Revenue Model Transitioning from licence & project fee Licence Processing Processing & Issuing (P&I) revenue model to a On premise solution – client Cloud hosted – client responsible for C
Slide 8: Balance Sheet
Balance Sheet Balance Sheet Material investment in Key Comments (US $000's) Dec 23 Jun 23 Vertexon PaaS platform Cash & equivalents 3,152 5,351 Cash balance of US$3.2m (A$4.9m¹) during the period to Receivables 1,674 2,121 Excludes additional cash backed security guarantees of US$0.5m enable go-live
Slide 9: Cashflow
Cashflow Cashflow Continued investment (US $000's) H1 FY24 H1 FY23 Key Comments in core products, Receipts from customers 4,362 4,607 Cash receipts of US$4.4m (A$6.8m¹), down 5% on pcp particularly Vertexon, Payments to suppliers / employees (5,421) (5,378) Decrease primarily attributable to delayed
Slide 10: Key Achievements
For personal use only Key Achievements
Slide 11: Vertexon PaaS Metrics
Vertexon PaaS Metrics After a significant Significant progress migrating NZ financial institution clients Total Cards on Issue and cards to Change period of investment, 21,000 Change now has live Key milestone and driver of early growth in PaaS metrics 18,000 clients processing and 15,000 Auckland C
Slide 12: Delivering on Key Milestones
Delivering on Key Milestones Clear and focussed 1 Shared Success & Growth operational roadmap to Transition NZ card programs to Change which will drive transactional revenue growth – IN PROGRESS deliver shareholder value 19,000+ cards issued to PaaS clients with migrations expected to continue throu
Slide 13: Delivering on Key Milestones (cont.)
Delivering on Key Milestones (cont.) Clear and focussed 2 Operational Excellence operational roadmap to Achieve go-live for NZ EFTPOS acceptance – COMPLETE deliver shareholder value Strengthen core operations and capabilities – compliance, security, fraud & transaction monitoring – COMPLETE Now well
Slide 14: Outlook
For personal use only Outlook
Slide 15: H2 FY24 Operational Milestones
H2 FY24 Operational Milestones Clear and focussed 1 Shared Success & Growth operational roadmap to Complete migration of NZ financial institution client cardholders to Vertexon deliver shareholder Targeting to have 40,000+ cards on the NZ platform by June 2024 value Complete onboarding of contracted
Slide 16: Investment Highlights
Investment Highlights Following a significant Building Blocks Now Entering Growth & Scale Marquee Customers period of investment, In Place Phase Change is entering the commercialisation Completed all regulatory and licensing H1 FY24 revenue of US$4.5m (A$6.9m) Early validation of PaaS platform via p
Slide 17: Appendix
For personal use only Appendix
Slide 18: Vertexon in the payments process
Vertexon in the payments process Change’s role in the u Processing: An Issuer (Change’s client) using the Vertexon Processing: Customer pays with card (all card networks Platform (technology only) to manage their cards – client is the supported) & purchases goods/services from merchant payments proc
Slide 19: Vertexon product offering
Vertexon product offering Vertexon offering can Processing Processing & Issuing be tailored by client to • Provide core technology to enable card issuing and • Provide Processing capability + the following key card offer services that best management including: Issuing capabilities: suit client and
Slide 20: Vertexon issuing capabilities
Vertexon issuing capabilities All regulatory and Change has completed all necessary regulatory and licensing requirements to enable card issuing in Australia, NZ and the US licensing requirements Change can now issue debit and prepaid cards in Australia, NZ and the US for card issuing in Mastercard
Slide 21: PaySim: critical payments infrastructure testing tool
PaySim: critical payments infrastructure testing tool Software facilitates u Simulates the full transaction lifecycle, enabling banks & fintechs to complete end-to-end testing of their payment remote testing platforms, processes & scheme rule compliance without the need for u Enables financial insti
Slide 22: 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 23: Thank you.
Thank you. For personal use only Get in touch investors@changefinancial.com