Slide 1: Creating a new, connected ecosystem for commerce
Know Your Transaction Creating a new, connected ecosystem for commerce Investor presentation June 2019 | Identitii Limited | ASX:ID8
Slide 2: Disclaimer and important notice
Disclaimer and important notice This presentation has been prepared by Identitii Limited (ABN 83 603 107 044) (Identitii, The information contained in this presentation is subject to change without notice and Identitii Company) based on information available to it as at the date of this presentation
Slide 3: Board of Directors
Board of Directors. Michael Aston Nicholas Armstrong Peter Lloyd Martin Rogers Independent Non-Executive Chairman Executive Director Independent Non-Executive Director Non-Executive Director CEO & Co-founder Mike is an experienced company director, executive Peter has a wealth of experience in advis
Slide 4: Today.
Today. Part One Part Two Part Three How we have turned Our business, Financials a problem into an and how we’ll grow and Q&A opportunity Investor Presentation | June 2019 | 4 ASX:ID8
Slide 5: Today.
Today. Part One Part Two Part Three How we have turned Our business, Financials a problem into an and how we’ll grow and Q&A opportunity Investor Presentation | June 2019 | 5 ASX:ID8
Slide 6: The problem: $9 trillion locked up on corporate balance sheets
The problem: $9 trillion is locked up on corporate balance sheets because of missing payment information.1 71% A burden on business The benefits of information is being sent over This requires humans in the If this cash can be freed up, legacy channels today – fax, chain, and is a huge pain point co
Slide 7: Friction exists at every step as information moves in a linear chain
Friction exists at every step as information moves in a linear chain. SUPPLIER SUPPLIER BUYER BUYER 1. Supplier generates invoice 2. Sends 3. Buyer 4. Buyer Invoice No validates Delays occur to prepares No payment via email acknowledgement invoice clarify invoice or payment & reminders or of invoice
Slide 8: Without information, payments are meaningless.
Without information, payments are meaningless. Investor Presentation | June 2019 | 8 ASX:ID8
Slide 9: Identitii aims to enrich payments with missing information
Identitii aims to enrich payments with missing information... Current With Overlay+ Vandelay Industries Also supported: • Invoices • statements • letters • photographs • live-chat-style real- time interactions Investor Presentation | June 2019 | 9 ASX:ID8
Slide 10: By creating an ecosystem for suppliers, buyers, banks and regulators to share information
By creating an ecosystem for suppliers, buyers, banks and regulators to share information. TRADITONAL BANKING PEER-TO-PEER ECOSYSTEM A linear payments chain with limited visibility Direct communication between any party, with data flowing in multiple directions CONSUMER SUPPLIER BANK MERCHANT CORPOR
Slide 11: Powered by the Corda Enterprise blockchain
Powered by the Corda Enterprise blockchain . 3 Leveraging an existing banking network to reach scale. Open source. Enterprise scale. Run by financial institutions. Investor Presentation | June 2019 | 11 3. Corda is an open source blockchain protocol supported by R3. The Corda Network is a publicly-a
Slide 12: Overlay+ is Identitii's software platform that enables connectivity to the ecosystem
Overlay+ is Identitii’s software platform that enables connectivity to the ecosystem. ADMIN OPERATOR UI Internal Web Application programming IDENTITY interface (API) API ERP ENTERPRISE MANAGEMENT RESOURCE PLANNING DATA API API MOBILE STORE APP BLOCKCHAIN / API API API WEB CORDA APP THIRD PARTIES Inv
Slide 13: We use tokenisation to identify important data
We use tokenisation to identify important data - with no change to legacy systems. Customs documents Credit checks CONSUMER Direct Debit Mandates Documents Fraud Alerts Incorporation documents SUPPLIER Invoices KYC KYC/KYT Payment advice BANK Payments TOKEN Permissioned information Purchase orders S
Slide 14: A global bank: an Identitii client since 2017
Case study. A global bank: an Identitii client since 2017. Following Growing customer completion of Phase 1, relationship and contract Phase 2 commenced in expansion under the Global March 2019 generating Framework Agreement additional revenue for commenced March 2017. Identitii. Live with corporate
Slide 15: Overlay+ for banks
Use case example #1 Overlay+ for banks. Identitii partners with leading banks to build, deploy and activate payment ecosystems that enable them to develop pioneering products and services for their customers. Admin UI ADMIN Features Benefits OPERATOR UI • Analytics • Improved operational efficiency
Slide 16: Overlay+ apps
Use case example #2 Overlay+ apps. Overlay+ apps allow consumers, SMEs and corporates to interact with Overlay+ in a customisable user experience. Software Features Benefits Development MOBILE APP • Direct Debit Mandate management • Simplified approval and onboarding process Kit • Spend management •
Slide 17: Today.
Today. Part One Part Two Part Three How we have turned Our business, Financials a problem into an and how we’ll grow and Q&A opportunity Investor Presentation | June 2019 | 17 ASX:ID8
Slide 18: Our revenue streams
Our revenue streams. API CALL FEES Fee per API call, $0.01<$0.10 scalable BASE LICENCE PROFESSIONAL SERVICES Up to US$50k per recurring month, includes One-off charges, support and customisation training maintenance. and installation Investor Presentation | June 2019 | 18 ASX:ID8
Slide 19: Our two-pronged approach to growth
Our two-pronged approach to growth. Banks: Driving Corporates: Driving Identitii license fees transaction volume • Banks have a one-to-many relationship • Corporates and SMEs in Asia-Pacific are model i.e. 1 bank with access to many already preparing for open banking.6 corporate customers, making th
Slide 20: Our 'Bank as a Partner' (BaaP) growth strategy
Our ‘Bank as a Partner’ (BaaP) growth strategy builds upon our global bank partnership. STAGE 1 STAGE 2 STAGE 3 Expand the existing global bank Develop partnerships with Develop bank partnerships partnership banks in Asia Pacific globally Live in India | Launching in Focusing on key markets: Austral
Slide 21: Our corporate engagement strategy
Our corporate engagement strategy. TOTAL NON CASH PAYMENT TRANSACTIONS GLOBALLY (2020F)1 All numbers are forecasts. 763b 1 non cash transactions globally Initial focus is on the Australian 513b1 market to drive transaction non cash transactions in APMEA & all of Europe volume. Engaging directly with
Slide 22: Cumulative potential revenue from a typical bank
Example Cumulative potential revenue from a typical bank and an increase in transaction volume over time. Note that this is an example only. This is not to be used for forecasting. Excludes one-off charges. 1200 API call fee Base licence and maintenance fee 1000 800 USD (‘000) 600 100% year-on-year
Slide 23: Identitii's Overlay+ solution is well-positioned vs. competitive offerings
Identitii’s Overlay+ solution is well-positioned vs. competitive offerings. HighRadius leverages Overlay+ enables banks Centrifuge is an open, Truelayer builds financial AI-based Autonomous and corporates to securely decentralised platform Ordo is an end-to-end fully apps that connect to bank System
Slide 24: Upcoming catalysts
Upcoming catalysts. Further bank New licences and Future Overlay+ Strategic partners revenue growth releases partnerships Investor Presentation | June 2019 | 24 ASX:ID8
Slide 25: Summary
Summary. Identitii helps release the estimated US$9tn Industry initiatives such as Open Banking locked up on corporate balance sheets Expanding relationship with existing and the increasing competitiveness of globally because of missing payment customer, plus growing sales pipeline. FinTechs mean ba
Slide 26: Today.
Today. Part One Part Two Part Three How we have turned Our business, Financials a problem into an and how we’ll grow and Q&A opportunity Investor Presentation | June 2019 | 26 ASX:ID8
Slide 27: Capital structure and register composition
Capital structure and register composition. Capital structure Share register composition Directors and employees 33.5% ASX code ID8 Top 20 83.7% Date listed 17 October 2018 Mr Nicholas Armstrong (Co-founder) 17.2% Share price 1 A$0.41 Regal Funds Management (Sydney) 11.41% Ordinary shares on issue1
Slide 28: Financials
Financials. Cash at 31 March 2019: A$5.9 million Revenue generating, no debt Cash receipts increasing, 216% growth in 3Q19 to $300k Cash burn approximately A$0.5 million per month A$1.2 million R&D tax incentive grant expected in August 2019 Continued receipts from customers expected A$6m spent on R
Slide 29: Know Your Transaction
Know Your Transaction ASX:ID8
Slide 30: Industry trends one: Open Banking
Industry trends one: Open Banking. 86% 80% of large corporations of banks have already are already participating invested in Open Banking in Open Banking for SMEs and Corporate ecosystem platforms or customers or plan to do plan to do so in 2019. so in 2019. 50% 75% of banks expect Open of large cor
Slide 31: Industry trends two: ISO 20022 Migration
Industry trends two: ISO 20022 Migration. ISO 20022 is the global messaging standard for financial business transactions. Migration has far-reaching implications for all banks, corporates and other important financial stakeholders 1; Target2 consolidation in Europe and the start of the SWIFT coexist
Slide 32: Industry trends three: FATF16
Industry trends three: FATF16. FATF is a global taskforce designed to reduce financial crime, with many member countries transposing the recommendations into local regulations.1 FATF Recommendation 16, for example, requires financial institutions to provide information not just about the originator