Novatti Group Ltd. · ASX:NOV
Novatti — Q2 FY2025 Earnings Presentation
12 slides from Novatti's earnings presentation, Jan 31, 2025
Slide 1: December Quarter FY25 – Activities Update
For personal use only Novatti Group Limited (ASX:NOV) December Quarter FY25 – Activities Update 31 January 2025
Slide 2: Important Information
Important Information This document has been prepared by Novatti Group Limited (Novatti) for information purposes This document may include statements or information relating to past performance of the Novatti about Novatti and its subsidiary companies (Novatti Group). It should be read in conjuncti
Slide 3: Our Purpose
For personal use only We enable businesses Our Purpose to pay and be paid, from any device, anywhere. 3
Slide 4: Competitive advantage is Total Payment Solutions
Competitive advantage is Total Payment Solutions A full payments stack and ability to offer E2E solutions for customers For personal use only Acquiring Omni-channel payment Issuing acceptance for merchants: online, Visa prepaid, debit and gift embedded and in-store cards, digital wallets and program
Slide 5: Our strategy
Our strategy Transformation from a group of independent businesses to a focused Total Payment Solutions business. For personal use only Underpinned by positive operating cashflow & 3 year 70%+ margin targets* Simplify Market Led, Lift Financial Performance the Business Customer-Focus *Operating cash
Slide 6: Positive operating cashflow on track for H2 FY25
Positive operating cashflow on track for H2 FY25* Expect to come within $30k of positive monthly operating cashflow in January and remain on track to achieve For personal use only positive operating cashflow for the half-year ending June 2025* COST REDUCTIONS • $ 9.8 m in annualize d c ost s r em ov
Slide 7: Q2 FY25 – initiatives implemented
Q2 FY25 – initiatives implemented For personal use only Simplify the Market Led, Lift Financial Business Customer Focus Performance o Further clearing historic o Brand refresh & o High quarterly revenue liabilities repositioning to launch in maintained at $12.9m - up 30% February 2025 YoY o Further
Slide 8: Q2 FY25 – results highlight closing in on turning point
Q2 FY25 – results highlight closing in on turning point* For personal use only Novatti Group Revenue and Total Costs ($m)** $12.9m $9.8m+ 18 17.2 Q2 FY25 Total annualised cost 16 14.0 13.5 13.4 13.6 14.4 13.7 14 12.3 12.8 AUD million Group Revenue reduction now 12 12.9 12.9 – up 30% YoY implemented
Slide 9: Q2 FY25 – cash used to strengthen balance sheet
Q2 FY25 – cash used to strengthen balance sheet For personal use only Reported Q2 Normalisation Normalised FY25 cashflow adjustments Q2 FY25 $6.25m cashflow $’000 $’000 $’000 Cash at end of Q2 FY25 Receipts from customers 25,357 25,357 Product manufacturing and operating (22,951) (22,951) Staff Cost
Slide 10: Q3 FY25 – driving growth in key areas
Q3 FY25 – driving growth in key areas For personal use only Continued streamlining o Non-core assets under sale process Core Non-core Market led, customer focus o Brand refresh to launch in February 2025 incorporating customer feedback Payments Payments Technology Investments o New website demonstra
Slide 11: Where the growth lies - Payments AU/NZ
Where the growth lies - Payments AU/NZ For personal use only Australian businesses Medium and large Businesses that invested believe they need to businesses said in digital payments improve their payment payments are critical reported improved systems for their digital revenue or customer transforma
Slide 12: The path forward
The path forward For personal use only o Achieve positive operating cashflow* o Major cost reduction program now implemented - focus shifts to driving growth from core Payments AU/NZ: • Brand refresh and repositioning go live in February 2025 • Continued penetration of target verticals and segments