Butn Limited · ASX:BTN
Butn — Investor Presentation (February 2023)
21 slides from Butn's investor presentation, Feb 24, 2023
Slide 1: 1H23 Results
Butn Limited 1H23 Results @butn
Slide 2: 1H23 highlights on a page
1H23 highlights on a page Record originations, record revenue, positive EBITDA Annual CAGR 32% 1H23 Investor Presentation 2
Slide 3: Our Vision
Our Vision “Butn, your money today.” Partnering for business success. Funding at the click of Butn Butn the home of Business (Bu) + Transactions (Tn) Embedded finance, the future of funding 1H23 Investor Presentation 3
Slide 4: Record originations
Record originations Record originations as growth accelerates with CAGR of +30% • 1H23 origination growth of 68% to $214 million (1H22: $128 million) • Consecutive record quarters in Q1FY23 and Annual CAGR 32% Q2FY23 • December a monthly origination record of $39.3 million, up 57% on pcp • Butn deli
Slide 5: Record revenue
Record revenue Rising revenue supported by record originations and increasing revenue margin • 1H23 revenue was $5.5 million, up 115% on pcp’s $2.5 million • 1H23 revenue exceeds full 12 months FY22 revenue • Annualised FY23 revenue on track to exceed $10 million • Platform revenue more than 25% of
Slide 6: Improved financial results
Improved financial results Return to positive EBITDA, reduced loss, positive operating cash flow • $0.6m positive EBITDA recorded in 1H23, compared with (2.9M) loss in pcp • Recent record growth delivered with no new operational staff demonstrating the operating leverage as the business scales • Tig
Slide 7: Positive platform performance
Positive platform performance Provides scalability, low customer acquisition cost and strong operating leverage at scale • 1H23 platform contribution now +20%, up from ~4% in 1H22 • Platform originations have higher revenue margin, partly driving the substantial increase in 1H23 revenue margin • Dec
Slide 8: Statement of profit and loss
Statement of profit and loss $m 1H23 1H22 $ mvmt % mvmt Notes 1. Increase in 1H23 Revenue reflects: Originations 214 128 86 68% • Originations continuing to grow, with a 68% increase on the pcp; and • Revenue Margin (1H23: 2.6% vs 1H22: 2.0%) have increased Revenue 5.5 2.5 2.9 115% 1 significantly,
Slide 9: Statement of financial position
Statement of financial position $m 31-DEC-22 30-JUN-22 $ mvmt Notes 1. Decrease in Cash from growing the receivables book Cash and cash equiv. 11.0 15.8 (4.8) 1 offset by proceeds from borrowings and cash generated Trade receivables 74.8 55.2 19.6 2 from operating activities Other 0.3 0.3 0.0 2. Inc
Slide 10: Outlook
Key priorities 1H23 Strong operating performance – More of the same • Continued origination and revenue growth • Leverage and deepen existing strategic partnerships, whilst Outlook being open to opportunities • Maintain tight cost control, driving further operating leverage through increased scale •
Slide 11: Investment summary
Investment summary Proven high-growth SME B2B transactional funder, leveraging an innovative FinTech partnership model Massive Opportunity Proven performer Leading Risk-management Australian SME finance +$1.2B in SME B2B Credit and risk management market exceeds $300bn transactions funded over 8 pro
Slide 12: Appendix
Appendix 1H23 Investor Presentation 12
Slide 13: Corporate snapshot
Corporate snapshot ASX code BTN Director Brief bio Suzanne Ewart • Director and business adviser with a strong background in treasury, finance and strategy Share price (15/2/23) 17.5c Non-Exec. Director • Previously senior roles with Fosters’ Group, NAB, Telstra, BTR, Pacific Dunlop, and Market cap
Slide 14: Butn’s capabilities
Butn’s capabilities B2B focused providing flexible, fast in-workflow solutions via strategic partners • Partnership model provides mass • Right tech and people origination and deeply integrated into distribution invoicing and • Leverages existing payments workflow STRATEGIC IN-WORK FLOW trusted part
Slide 15: Embedded finance – the future of funding
Embedded finance – the future of funding Funding where its needed, when needed – “in workflow” “Funding should not be a task outside of how and where businesses transact, requiring extraordinary amounts of time and effort, lengthy decision periods and constraints based on some arbitrary limit review
Slide 16: The growth engine – Butn’s platform
The growth engine – Butn’s platform Differentiated transactional funding approach Our FinTech transactional funding solution digitises and automates the funding process, from customer on- boarding, credit assessment, funding and collection. We integrate with Platform Partners providing us with mass
Slide 17: Butn products
Butn products Butn offers a range of SME B2B funding options Typical end user Seller of goods or services Buyer of goods or services Real estate agent or broker Description: Factoring Buy now pay later (BNPL) Early settlement of commissions Can fund Up to 100% of invoice value Up to 100% of invoice
Slide 18: Industry-low write-offs, proven over many years
Industry-low write-offs, proven over many years Multiple tiers of loss protection and recovery Butn has industry leading credit and risk Numerous checks / processes undertaken at customer management, minimising default risk (non- on-boarding and at transaction funding including: payment or fraud). B
Slide 19: Business drivers
Business drivers Multiple drivers accelerating the Butn opportunity Maintain strong credit and risk management Reduce the cost of processes for low capital to expand non-recoverable margins write-offs Increase transaction Increase access to Maintain a low, volume and value debt and equity to relativ
Slide 20: Disclaimer
Disclaimer This presentation has been prepared by Butn Limited ACN 644 182 883 (“Butn” or the herein. Neither Butn nor any other person accepts any liability and Butn, its related bodies “Company”) and does not constitute or form part of, and should not be construed as, an offer, corporate and their
Slide 21: Contact
Contact Rael Ross Co Founder / Co CEO investors@butn.co 1H23 Investor Presentation 21