Ovanti Ltd · ASX:OVT
Ovanti — Investor Presentation (July 2022)
32 slides from Ovanti's investor presentation, Jul 21, 2022
Slide 1: Business Strategy Update: The Pathway to Profitability
Business Strategy Update The Pathway to Profitability July 2022
Slide 2: Disclaimer
Disclaimer • Disclaimer for Presentation - The following disclaimer applies to this presentation Actual results, performance or achievements may vary materially from any forward looking (Presentation). This presentation has been prepared by IOUpay Limited ACN 091 192 871 statements and the assumptio
Slide 3: Who We Are
Who We Are We provide fintech services in South East We connect banks, telcos, big brands and their e- Asia (SEA) working with our partners and commerce or in-store merchant networks with merchant networks to capitalise on the their customers online and at the point-of-sale rapid growth and adoption
Slide 4: Overview & Highlights
Overview & Highlights • Corporate Snapshot • Highlights & Achievements • Financial & BNPL Portfolio Metrics • myIOU Merchants & Consumers 4
Slide 5: Corporate Snapshot
Corporate Snapshot Capital Structure Shares on issue1 554,012,065 Share price1 $0.069 Market cap1 $38,226,832 Net Tangible Assets (at 31/05/22)2 $45,475,338 Cash, cash equivalents & trade receivables (at 31/05/22)2 $20,960,393 Debt Nil IOUpay Limited 0.35 40,000,000 Volume Close 0.30 35,000,000 30,0
Slide 6: Highlights & Achievements
Highlights & Achievements Mobile Banking – record monthly transaction Product innovation – to drive growth and scale volumes in Q1FY22 1; infrastructure upgrade • myIOU 2.0 launch – design, functionality & December 2021 positioning for growth security improvements • KA$Hplus – game changing prepaid
Slide 7: Financial & Portfolio Metrics
Financial & Portfolio Metrics BNPL Volume & Revenue (‘000s) Normalised Net Operating Cash Flow ('000s) $30,000 10.00% $2,000 $25,000 $1,500 8.00% $1,000 $20,000 6.00% $500 $15,000 $0 4.00% $10,000 -$500 $5,000 2.00% -$1,000 -$1,500 $0 0.00% -$2,000 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 -$2,500 TTV (past 1
Slide 8: myIOU Merchants & Consumers
myIOU Merchants & Consumers myIOU Store Availability Consumer Engagement with myIOU 5,000 80,000 4,000 60,000 3,000 40,000 2,000 20,000 1,000 0 0 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Stores Signed Stores System Active 1 Downloads (inactive) Account Activations 2 myIOU Acti
Slide 9: Strategy & Plan
Strategy & Plan • Our Strategic Approach to Value Creation • BNPL Malaysia – Our Initial Focus • SEA – The Bigger Picture • Pathway to Profitability 9
Slide 10: Our Strategic Approach to Sustainable Value Creation
Our Strategic Approach to Sustainable Value Creation We have the benefit of hindsight in developing our measured approach to sustainable growth A conservative approach will protect capital with very low credit risk but volumes will be insufficient to deliver the growth necessary for sustainable shar
Slide 11: Malaysia's BNPL Market – Our Initial Focus
Malaysia’s BNPL Market – Our Initial Focus Malaysia BNPL active users Malaysia BNPL GMV3 600,000 in 2021 US$287m in 2021 with CAGR1 24.6% predicted to double to 4m users by to US$601m in 20282 2022 then CAGR 49% from 2022-2028 to Our strategy is to adopt a US$6.5b4 measured approach to growth, ensur
Slide 12: South East Asia (SEA) – The Bigger Picture
South East Asia (SEA) − The Bigger Picture SEA Population Internet economy 679M 350M worth $100B in across 10 countries1 2019… SEA digital consumers have made at least US$170B in one purchase online2 2021… … and is projected to reach $300Bby SEA now has … and 80%of 2025 and well on its 440M them are
Slide 13: Pathway to Profitability
Pathway to Profitability Phase 1 • Protects capital during period proving product model & credit risk Initial growth framework – critical for shareholders & future debt providers phase (FY22) • Provides opportunity to modify & enhance product offering and credit risk profile Phase 2 • Building criti
Slide 14: Capabilities & Product Offering
Capabilities & Product Offering • Capabilities: § Core Capabilities § Platform Capabilities • Transaction Economics • BNPL Economics – Multiplier Effect 14
Slide 15: Core Capabilities – Our Pillars for Successful Growth
Core Capabilities – Our Pillars for Successful Growth Innovation Business Marketing Credit & Risk Wholesale debt M&A Core Capabilities (Intellectual Property) Development Management funding Trusted & secure Highly targeted Digital & social Sophisticated e-KYC Experienced team in Highly credentialed,
Slide 16: IOUpay Platform Capabilities
IOUpay Platform Capabilities Third Party Integration 8 1 Secure Communication Fast & easy integration for third party To existing customers; Originate new access & large customer community customers; Data driven product offers & rollouts marketing campaigns; Cyber threat & data protection; Secure &
Slide 17: myIOU Transaction Economics
myIOU Transaction Economics • Example transaction for a purchase of $100 (TTV1) • Merchant Payment: $95.00 (TTV less NTR) • Typical BNPL transaction over 2 month term with 30% deposit ($30) • Capital Outlay: $65.00 (Merchant Payment less Deposit) • Monthly instalments of $35 ($70 / 2 months) • Trans
Slide 18: BNPL Portfolio Economics − Multiplier Effect
BNPL Portfolio Economics − Multiplier Effect $ $ Portfolio Mechanics1 • Dynamic cycling of BNPL portfolio optimises return on capital Ø Upfront 30% deposit plus MDR means less than 70% of TTV is required to fund each transaction Ø When capital is returned to portfolio via monthly instalments it is i
Slide 19: Key Drivers for Success
Key Drivers for Success Pine Labs – Large Merchant Community KA$Hplus Card – Game Changer Shariah Compliance – Catalyst for Expansion IDSB – Investing in Growth • Strategic Investment • Collaborating for Value Creation 19
Slide 20: Pine Labs – Large Merchant Community
Pine Labs – Large Merchant Community • Pine Labs is a leading merchant commerce platform across India & SEA • In Malaysia, Pine Labs provides financing and ‘last-mile’ retail transaction technology to large global brands as well as major regional and local enterprises • Master Partner Services Agree
Slide 21: KA$Hplus Card − The Anytime-Anywhere Game Changer
KA$Hplus Card − The Anytime-Anywhere Game Changer KA$Hplus expands Merchant coverage New customer acquisition Existing myIOU customers merchant base to all VISA- includes purchases made − access to all VISA- − digital banking style approved merchants globally providing cross- approved merchants is a
Slide 22: Shariah Compliance − The Birth of myIOU Islamic
Shariah Compliance − The Birth of myIOU Islamic • To access Islamic financing and BNPL opportunities within industry best practice for Shariah principles requires certification from a Shariah Advisor licensed by the Securities Commission Malaysia • Certification scheduled for September quarter • Onc
Slide 23: IDSB – Strategically Aligned Investment
IDSB – Strategically Aligned Investment1 Compelling investment fundamentals Access to bank customer communities & debt capital to service them • Broadens base of consumer finance & Unique competitive advantage over collections capabilities to meet longer traditional institutional lenders term vision
Slide 24: IDSB − Collaborating for Strategic Value Creation
IDSB − Collaborating for Strategic Value Creation The Company’s investment in IDSB unlocks a range of commercial partnership opportunities which position IOUpay for diversified growth along the consumer finance value chain. Working together with a focus on each others’ competitive strengths presents
Slide 25: Outlook
Outlook • Our Roadmap • Value Opportunity 25
Slide 26: Our Roadmap
. Our Roadmap • Organic growth post-COVID economy • Large communities (e.g. • Phase 3 Portfolio • Pine Labs – ‘go live’ Banks) Scale Commercial • Phase 2 Portfolio Scale • IDSB Bank Expansion • myIOU Islamic – certification & launch • IDSB BNPL Rollout • IDSB BNPL Rollout & Bank Expansion • Preparat
Slide 27: Value Opportunity
Value Opportunity Pathway to deliver shareholder value Focus on Consistent Performance • BNPL Receivables growth • Margins & portfolio ROCE above expectations, low NPL • Underlying BNPL business cash flow positive for two consecutive quarters • Clear plan with a pathway to profitability Significant
Slide 28: Thank You
Thank You
Slide 29: Appendix
Appendix 29
Slide 30: In the Media
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Slide 31: myIOU Campaigns & Influencers
myIOU Campaigns & Influencers Campaigns & Product Shoutout Celebrities & KOL 31
Slide 32: myIOU Social Media & Merchant Displays
myIOU Social Media & Merchant Displays Social Media Posting Banners Designs 32