Novatti Group Ltd. · ASX:NOV
Novatti — Q3 FY2024 Earnings Presentation
16 slides from Novatti's earnings presentation, Apr 30, 2024
Slide 1: March Quarter FY24 – Activities Update
For personal use only Novatti Group Limited (ASX:NOV) March Quarter FY24 – Activities Update 30 April 2024
Slide 2: Disclaimer
The material contained in this document is a presentation For personal use only of general information about Novatti Group Limited’s activities, current as at 30 April 2024. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes a
Slide 3: Our purpose
Our purpose For personal use only We enable Payment processing Omni-channel payment acceptance Global payments Asian wallets businesses to E-Commerce Cross border payments EFTPOS China Payments - Bpay bills SoftPOS Tap to Pay pay and be Unparalleled paid capabilities Cards Alternative payments Prepa
Slide 4: Our strategy
Our strategy Transformation underway from a group of independent businesses into a focused Payment For personal use only Solutions business, underpinned by positive cashflow target and 3 year 70%+ margin target. Simplify Market and Lift Financial the Business Customer-Led Performance
Slide 5: A new payments team executing the strategy
A new payments team executing the strategy For personal use only Mark Healy Beth Moylan Jason Turnbull Stephen Leeds CEO Head of Marketing Executive GM Head of Business Payments AU/NZ Development (Payments) Experienced global payments Strategic and creative C level executive with a history A payment
Slide 6: FY24 - quarter by quarter progress
FY24 - quarter by quarter progress For personal use only Q1 Q2 Q3 Q4 Simplify Optimise Cost Cost and revenue the business financing reduction measures necessary to deliver positive cashflow
Slide 7: FY24 – Transformation in action
FY24 – Transformation in action For personal use only Simplify the Market Led, Lift Financial Business Customer Focus Performance o Business portfolio re- o New marketing and sales o 3 year 70%+ margin target organised leaders o $4m+ annual cost savings o Payments as core o Streamlined access to pro
Slide 8: Simplified business overview
Simplified business overview For personal use only Payments Payments Technology Investments AU/NZ International Solutions Issuing Alternate Basis 2 International Payments Bank of Australia Cross Border Emersion AUDD Acquiring ATX Enterprise Bill Payments Software TTM Revenue $12.8m $19.5m $6.5m (Jan
Slide 9: Impact – increasing growth off a lower cost base
Impact – increasing growth off a lower cost base* Group Revenue For personal use only $12.4m +21% 14.0 12.0 10.2 10.8 10.7 12.4 9.3 Record Q3 FY24 Increase in quarterly 8.9 AUD $ million 10.0 Group Revenue revenue through FY24 8.0 6.0 4.0 2.0 0.0 $4m+ -23% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3
Slide 10: The Payments AU/NZ opportunity
The Payments AU/NZ opportunity For personal use only Australian businesses Medium and large Businesses that believe they need to businesses said invested in digital improve their payments are critical payments reported payment systems for their digital improved revenue or transformation customer rel
Slide 11: Seeing this in Payments AU/NZ performance
Seeing this in Payments AU/NZ performance For personal use only Number of Customers 20% Customer growth Gross Transactional value (GTV) 24% GTV growth 800 (H1/24 vs PCP) 1,500 (H1/FY24 vs PCP) Number of Customers 600 1,000 $million 400 500 200 0 0 H1 FY22 H1 FY23 H1 FY24 H1 FY22 H1 FY23 H1 FY24 75%
Slide 12: Targeting high-margin revenue
Targeting high-margin revenue In line with positive cashflow target, pursuing higher-margin revenue through a market led For personal use only and customer focused approach. Already having positive impact with new and expanded engagements emerging. Target verticals Leveraging Novatti strengths Early
Slide 13: Target Customers
Target Customers Medium sized companies Software Distributors For personal use only ● Growth ambitions and want a high ● Distributor with integration to trust relationship key verticals ● Require tailored payment solution ● See payments as a revenue generator ● Need support to manage their business
Slide 14: Payments AU/NZ Driver - Acquiring
Payments AU/NZ Driver 1 - Acquiring Provide solutions for businesses to accept, process and For personal use only manage all forms of payments from their customers o Omni-channel experience across online, offline and in-app payments. o Acquiring licenses with Visa, Mastercard, American Express, Asia
Slide 15: Payments AU/NZ Driver – Issuing
Payments AU/NZ Driver 2 – Issuing B2B digital transformation and enabling consumer payment choice drive our solutions. For personal use only Principal license with Visa for AU + NZ: Principal Member o Prepaid and Debit Cards, including multi- currency o General Purpose Reloadable Cards o Gift & Ince
Slide 16: The path forward
The path forward Mid-2024 cash positive target increasingly challenging. Will be For personal use only implementing the costs and revenue measures necessary to achieve positive operating cashflow late in CY24. o Every business area subject to ongoing strategic review and benchmarked against financia