Nayax Ltd.

Investor Presentation • Aug 17, 2022

Nayax Q2 2022 Earnings Presentation

August 17, 2022

Important Disclosure

• This presentation is intended to provide information only and is not, and should not be considered, as an offer to purchase or sell the Company's securities, or a proposal to receive such offers. In addition, this presentation is not an offer to the public of the Company's securities.
• The information in this presentation is provided for convenience only. It does not contain comprehensive information, but merely summary information in a condensed form. This presentation does not and is not intended to replace a careful inspection of the Company's Financial Statements, as reported or will be report to the Israeli Securities Authority via the Magna distribution site and the Company's immediate reports released thereby (the "Company's Reports"), and is not a basis and should not be used as a basis for making any decisions in relation to the Company, including any decision to purchase securities of the Company. Any such decision should be based on the Company's Reports and following the receipt of appropriate professional advice. The information provided in this presentation is not, and should not be considered to be, a recommendation or an opinion of any kind in relation to an investment in the Company, whether legal, financial, tax, economic or otherwise. This presentation does replace the need for a potential investor to collect and analyze further independent information for their due consideration. Every potential investor must obtain their own independent advice and guidance, in connection with a potential investment in the Company, including tax advice which takes into account the investor's own tax position.
• This presentation includes forecasts, estimates, assessments and other information pertaining to future events and/or matters, whose materialization is uncertain and is beyond the Company's control, and which constitute forward looking statements (as contemplated in the Securities Law, 5728-1968), including Company's expectations and evaluations relating to the Company's business targets and strategy, the success of trials and the integration of the Company's technology in various systems and industries, the advantages of the Company's existing and future products, timetables regarding completion of the Company's developments and the expected commencement of production, sales and distribution of the Company's products and technology, the Company's intentions in relation to various industries, the Company's intentions in relation to the creation of collaborations and engagements in licensing agreements, production and distribution in various countries. Forward looking statements, as mentioned, are uncertain and are based on expectations and assumptions that the Company's management has made in light of its industry experience and perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances, and on information and data that the Company's management had on the date of preparing this presentation and which the Company is not obliged to update and/or to change in order to reflect events and/or circumstances which occur after the date of preparation of the presentation.
• In addition, the presentation includes data published by various bodies, and data provided to the Company in the framework of cooperation engagements, whose content was not independently verified by the Company, such that the Company is not responsible for the accuracy or completeness of such date or whether the data is up-to-date, and Company takes no responsibility for any reliance on the data.
• Forward looking statements, as mentioned, may include, inter alia, forecasts, targets, evaluations and/or estimates relating to future events and/or matters, whose realization is not certain and which are affected by various factors which are not under the Company's control and which the Company is unable to evaluate in advance.
• Whether the forward looking statements materialize will be subject to and affected by, inter alia, various risk factors which characterize the Company's operations, as well as from macro-economic developments and external factors which affect its operations, which cannot be evaluated and are not under the Company's control. The Company believes that this risks includes, inter alia, risks that the Company will not have sufficient working capital; that there will be delays in the initiation and progress of the Company's development efforts; that the Company will be unable to establish collaborations; that the Company's products may not generate sufficient revenues; changes in the overall economy; the duration and severity of the COVID-19 (coronavirus) pandemic and its impact on the Company and on the local and global economy and the Company's ability to manage and develop its business; and other such events which cannot be estimated in advance and which are beyond the Company's control.
• Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove to be incorrect, the Company's actual operating and financial performance may differ in material respects from the performance projected in these forward-looking statements. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance.
• The Company does not confirm or undertake that the information appearing in this presentation is complete or accurate. The Company, its employees, officers and its shareholders will not be responsible for damages and/or losses which may arise as a result of the use of the information contained in this presentation. The Company is not responsible for any changes to the economic, financial or legal situation relating to the Company and its business. The Company does not undertake to update and/or change forecasts and/or evaluations included in the presentation in order that they will reflect events and/or circumstances which apply after the date of the presentation's preparations. No persons have been authorized to make any representations regarding the information contained in this presentation, and if given or made, such representations should not be considered as authorized. The content of this presentation does not bind the Company or its managers and they have the right to change any item described in the presentation relating to the Company, at their sole discretion.
• The Company and its licensors have proprietary rights to trademarks used in this Presentation. Solely for convenience, trademarks and trade names referred to in this Presentation may appear without the "®" or "™" symbols, but the lack of such references is not intended to indicate, in any way, that the Company will not assert, to the fullest extent possible under applicable law, its rights or the rights of the applicable licensor to these trademarks and trade names. This Presentation also contains trademarks, trade names and service marks of other companies, which are the property of their respective owners and are used for reference purposes only. Such use of other parties' trademarks, trade names or service marks should not be construed to imply, a relationship with, or an endorsement or sponsorship of the Company by any other party.

Today's Speakers

Yair Nechmad CEO and Co-Founder Sagit Manor CFO

Company Overview

Nayax (TASE: NYAX) at a Glance

(1) Recurring revenue includes SaaS subscription and payment processing fees (2) Based on SaaS revenue and payment processing fees Doesn't include OTI figures except for our office locations

The Nayax Eco-System

Nayax's platform increases sales and decreases costs for retailers

Bringing a Global Solution to the Local Market

¹ Based on SaaS revenue and payment processing fees

Does not include OTI figures

Recent Announcements

• Five Star expansion: Nayax as their cashless partner and Vendsys being chosen as their vending management systems
• Compass Group expansion: Extended contract to manage beyond the existing 50,000 point-of-sale (POS) devices. Compass manages 200,000 unattended POS devices
• EV Meter finished a successful proof of concept project in California partnering with PG&E - Pacific Gas and Electric

Nayax started first roll out and processing for Tier 1 customer Dallmayr in the UAE

Nayax has finished certification phase and shipped first batch of units to expand into New Zealand

expand their footprint in Europe signing two new deals with Amarla – a licensee of leading global fashion brands and Notos – a licensee of American Eagle Outfitters in Greece

• Nayax and Cover Group, one of the leading buying groups in the vending segment in the UK have reached a mutual agreement to become the preferred payment solution supplier to the Cover Group
• Nayax Nova family (retail): Nayax and E-Service rolled out first Nova 55 retail terminal

EV Meter introduce its Multi-Family Residences (Multi Dwelling) solution for EV charging systems lunching the solutions in over than 30 different sites.

Land and Expand Yielding Higher Customer Loyalty

Existing Customer Expansion (\$m) (1) (2)

(1) Please see Appendix for definition of existing customer expansion. (2) 2022 numbers includes 12 month run rate (H2 of 2021 and H1 of 2022)

10

Financial Overview

Powerful Business Model Built on Solid Recurring Revenue

(1) SaaS revenue and payment processing fees as % of total revenue

Does not include OTI figures

12

Our Business Model is Working

Strong Revenue Growth (\$m) High Recurring Revenue (\$m) (1)

Gross Profit (\$m)

Gross profit attributed to revenue shift consisting of SaaS and payment processing. Q2 2022 gross margin reflects the ongoing disruption caused by the global component shortage and supply chain dynamics Highlights

Strong Q2 revenue. Grew 33% YoY as we continue to benefit from strong

and growing hardware and recurring revenue.

Highlights

Strong Gross Recurring Profit (\$m)

(1) Recurring Revenue: SaaS Revenue and Payment processing fees. Does not include OTI figures

Highlights

revenue

High recurring

consisting of SaaS revenue and payment

processing fees. Grew by 47% YoY.

Consistent Track Record Of Expanding Footprint

• Grew by 38% YoY in 2022.

devices across all geographies.

Highlights

Global Cashless Payment Trends Driving Transactions

70% Growth in 2022 YoY

• Growth across all geographies as shifts in customer behavior continued and strong customer expansion

Higher Operating Expenses to Support Strategic Growth Plan

R&D Expense (\$m) (1)

Adjusted EBITDA (\$m)

SG&A Expense (\$m) (2)

Depreciation and Amortization (\$m)

(1) Excluding share-based compensation

(2) Excluding (i) product costs increase due to global components shortage and (ii) bonus plan for non-sales employees that was introduced in Q3 2021, Q2 2022 Adjusted EBITDA improved to a positive \$1.3M Does not include OTI figures

Mid-Term and Long-Term Outlook

• Looking ahead, we remain excited about our strong long-term growth drivers and the large market opportunities ahead of us.
• Our durable business model is demonstrated by our diverse customers, verticals and geographies. With strong secular tailwinds and with our industry-leading net revenue retention rate, we believe we have a clear opportunity to drive revenue growth in the future.

Mid-Term Outlook
Revenue	Reaffirming mid-term outlook of \$220 million, driven by organic growth and strategic M&A.
Revenue Growth	Reaffirming target of 35% Main growth drivers: customer growth; market penetration and continued expansion of our platform.
Long-Term Outlook
Gross Margins	Target of 50% Main drivers: providing leasing options for IoT POS and growing SaaS revenue and payment processing fees
Adjusted EBITDA	Approximately 30%.

Guidance as of August 17, 2022. Any usage of slide on a subsequent date does not constitute guidance re-confirmation as of such subsequent date. Refer to Cautionary Statement for a discussion of factors that could cause actual results to differ materially from outlook. Mid-term defined as over the next 3-5 years.

Strategy for Sustained Long-term Growth

Nayax continues to execute its strategic growth plan while remaining focused on balancing top line growth with a path to profitability

Summary

• Leading, best-in-class global payments platform for unattended commerce with a complete end-to-end solution.
• Highly talented team with focused execution on achieving strategic priorities.
• Large total addressable market driven by the strong secular tailwinds with multiple growth levers.
• Strong and consistent growth with high recurring revenues from SaaS and payment processing.
• Well capitalized with a clear path to profitability.
• Continue to balance top-line growth with focus on profitability.

Appendix

CAPEX growth due to additional capitalization

Capex (\$m)

21

IFRS to Non-IFRS (*)

	Quarter ended as of (U.S. dollars in thousands)
	Q2 2022	Q2 2021
Loss for the year	(10,349)	(5,860)
Finance expense, net (1)	1,499	1,626
Tax (Benefit) expense	235	108
Depreciation and amortization	1,929	1,759
EBITDA	(6,686)	(2,366)
Share-based compensation	2,059	2,190
IPO related expenses	866	1,545
Equity method investee (2)	570	57
Adjusted EBITDA	(3,191)	1,425

(*) Excluding (i) product costs increase due to global components shortage and (ii) bonus plan for non-sales employees that was introduced in Q3 2021, Q2 2022 Adjusted EBITDA improved to a positive \$1.3M.

(1) Finance expenses reduced primarily due to foreign currencies exchange rate impact. (2) Equity method investee grew due to Tigapo increased cost from acquisition closed on July 2021

Does not include OTI figures

Key Definitions

• Managed and Connected Devices that are operated by our customers.
• End Customers Customers that contributed to Nayax revenue in the last 12 months.
• Recurring Revenue SAAS revenue and payment processing fees.
• Dollar-based net retention rate Measured as a percentage of revenue from returning customers in a given year as compared to the revenue from such customers in the prior year, which reflects the increase in revenue and the rate of losses from customer churn.
• Revenue churn The percentage of revenue lost as a result of customers leaving our platform in the last 12 months.
• Existing Customer Expansion Revenue generated within a given cohort over the years presented. Each cohort represents customers from whom we received revenue for the first time, in a given year.
• Adjusted EBITDA Defined as net income (loss) before other income (expense), interest income (expense), foreign exchange gain (loss), income taxes, and depreciation and amortization, adjusted to exclude the effects of share-based compensation expense and certain nonrecurring expenses that management believes are not indicative of ongoing operations, consisting primarily of Equity method investee expenses and other indirect charges associated with our initial public offering.

Thank you!

IR Contact: ir@nayax.com

Website: ir.nayax.com