Novatti Group Ltd. · ASX:NOV
Novatti — Shareholder Meeting (February 2024)
15 slides from Novatti's shareholder meeting presentation, Feb 14, 2024
Slide 1: Novatti Group Limited General Meeting
For personal use only Novatti Group Limited (ASX:NOV ) GM 14 February 2024
Slide 2: Disclaimer
The material contained in this document is a presentation of For personal use only general information about Novatti Group Limited’s activities, current as at the date of this presentation on 14 February 2024. It is provided in summary and does not purport to be complete. You should not rely upon it
Slide 3: GM today – why we are here
GM today – why we are here For personal use only o Proposed capital raising of up to $5.5m ▪ Convertible note facility for up to $3.5 million (subject to shareholder approvals) ▪ Share purchase plan (SPP) to raise up to $2 million o These initiatives support the delivery of Novatti’s strategy, parti
Slide 4: The digital payments opportunity
The digital payments opportunity* For personal use only 45% 83% 81% Australian Businesses that Medium and large businesses invested in digital enterprises said digital acknowledge the payments payments are critical need to improve technologies report for their digital their current improved customer
Slide 5: Unparalleled capabilities in place
Unparalleled capabilities in place For personal use only Acquiring Issuing Cross Border Payments Omni-channel payment Visa prepaid, debit and gift cards, International transfer payments acceptance for merchants: digital wallets and end-to-end network for businesses in 20+ eComm, embedded and in-stor
Slide 6: Our strategy
Our strategy We are transforming from a diverse portfolio of independent businesses into a coherent For personal use only Payment Solutions company, underpinned by positive cashflow target and 3 year 70%+ margin target. Simplify Market and Lift Financial the Business Customer-Led Performance
Slide 7: Strategy execution
Strategy execution Methodically implementing this strategy quarter by quarter across FY24 – early focus has For personal use only been simplifying the business and getting costs down Q1 Q2 Q3 We are here Simplify Optimise Cost the business financing reduction
Slide 8: Actions taken across FY24
Actions taken across FY24 For personal use only o Established 3 year 70%+ margin target o Strategic review assessing all business areas against financial goals o Business portfolio re-organised o Internal restructure - new talent into key roles o Streamlined sales process and access to multiple prod
Slide 9: Results are real – revenue up, expenses down
Results are real – revenue up, expenses down Making strong progress towards mid-2024 cashflow positive target For personal use only Revenue Novatti Group 12.0 10.8 10.7 10.2 9.3 8.9 10.0 +12.5% 11% 8.0 H1 FY24 revenue H1 FY24 6.0 growth on prior half expense reduction 4.0 2.0 0.0 Q2 2023 Q3 2023 Q4
Slide 10: Next stage: market led, customer focus
Next stage: market led, customer focus For personal use only Payments is a competitive, complex industry dominated by specialised incumbents operating at scale. Novatti must be market and customer led. Our future growth will derive from the Fusion of our product ecosystem, targeting opportunities re
Slide 11: Actions taken – new payments team in place
Actions taken – new payments team in place For personal use only Mark Healy Jason Turnbull Stephen Leeds Beth Moylan CEO Executive GM Head of Business Development Head of Marketing Payments AU/NZ Payments AU/NZ Payments AU/NZ Experienced global payments C level executive with a history A payments sa
Slide 12: The Novatti approach
The Novatti approach For personal use only Exploit our strengths Targeted customers o Tech and compliance in place o Customers with complex payment needs that require our o Our AU/NZ Licenses tech/guidance/expertise o Willingness to provide a tailored solution that o Digital payment solutions provid
Slide 13: Actions taken
Actions taken Land and expand in vertical (repeat) Cross-sell to existing customers For personal use only Content and campaign marketing being undertaken to grow Novatti has 1000+ customers that can be targeted for cross- awareness of tightly coupled solution within specific verticals selling produc
Slide 14: Unlocking value
Unlocking value For personal use only Payments Payments Technology Investments AU/NZ International Solutions Issuing Alternate Basis 2 International Payments Bank of Australia Cross Border Emersion Acquiring AUDD ATX Novatti BillPay Enterprise Software TTM Revenue $12.8m $19.5m $6.5m (Jan 23 - Dec 2
Slide 15: The path forward
The path forward For personal use only Simplify and focus o Operating cash flow positive target - mid 2024 o Continue to improve margins - 3 year target 70%+ o Implementing approx. $4m cost saving program o Finalise strategic review - focus business on payments o Drive growth through Fusion - cross