Nayax Ltd.

Investor Presentation • Mar 9, 2022

Nayax Q4 and Full-Year Earnings Presentation

March 9, 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

¹Recurring revenue includes SaaS subscription and payment processing fees ²Based on SaaS revenue and payment processing fees

Multi-Dimensional Challenges across the Ecosystem

• We solve challenges for both consumers and retailers
• For consumers, we facilitate payments across different channels, payment methods, and currencies, in addition to providing loyalty and engagement features
• For retailers, we provide all the previously mentioned features for their consumers
• We also facilitate back-office operations and reporting to help retailers track their business

Leading End-to-End Retail Technology and Payments Platform for Unattended Commerce and Beyond

Comprehensive, end-to-end proprietary technology platform to simplify commerce and payments for retailers while driving growth, optimizing operations, and enhancing consumer engagement

Bringing a Global Solution to the Local Market

4Q 2021 Business and Operational Highlights

** ★★★★★★★
★東東東東東東東
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• Nayax continues as the global industry leader, offering the most innovative, compliant, and secure EMV solutionsannounced first unattended Payment Solution Provider to offer incremental pre-authorization of EMV-compliant multi-vend transactions for food and beverages customers
• Nayax continues momentum with additional deployments of our solution to Tier 1 customers, including: strategic national accounts, like Primo Water and customers that are part of the largest vending franchise group, like Five Star Food Services

Nayax launched our Canadian ecomm shop in Q4 2021 joining our US ecomm shop introduced in early 2021 to continue our global expansion of allowing our customers to purchase our bestin-class cashless solution at any time

Expanding Nayax footprint in Italy by signing our first VAR "Product & Service"

Nayax commenced in rolling out payment solutions for PepsiCo/ Asahi

signed a new agreement with a distributor in Spain and Portugal

Extended the contract with AirServ for an additional three years as main solution provider

Mexico, Bimbo group expanding with Nayax going forward

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

Financial Overview

Powerful Business Model Built on Solid Recurring Revenue

12

Our Business Model is Working

Strong Revenue Growth (\$m)

Strong Gross Profit (\$m)

SAAS revenue and Payment processing fees Integrated POS Sales

Gross profit driven by revenue mix shift to Highlights

Grew YoY 40% as we continue to benefit from strong

and growing recurring revenue.

Highlights

SaaS and payment processing.

Q4 2021 gross margin decline primarily due to the global component shortage and supply chain dynamics.

High Recurring Revenue (\$m) (1)

Existing Customer Expansion (\$m) *

2017 2018 2019 2020 2021

(1) Recurring Revenue: SaaS Revenue and Payment processing fees. * Please see Appendix for definition of existing customer expansion

Consistent Track Record Of Expanding Footprint

Highlights

• 2021 reflects accelerated momentum in customer additions, with YoY growth of 58% and reflected across all geographies.
• Significantly increasing and retaining customer base with high net retention rate at 137% and low churn rate at 2.6%.

Global Cashless Payment Trends Driving Transactions

69% Growth in 2021 YoY

• Growth across all geographies as shifts in customer behavior continued and strong customer expansion resulted in higher transaction processing.

Higher Operating Expenses to Support Strategic Growth Plan

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

Adjusted EBITDA (\$m)

SG&A Expense (\$m) (1)

CAPEX (\$m)

Purchase of property, plant and equipment Capitalized development expenditure

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, full year 2021 Adjusted EBITDA improved to \$1.0M. Q4 2021 Adjusted EBITDA improved to a negative \$0.9M.

Mid-Term and Long-Term Outlook

• Looking ahead, we are very 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	On track to deliver over \$220 million, driven by organic growth and strategic M&A.
Revenue Growth	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%.

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.
• Growing with a global and diverse customer base driving 795M transaction volume in FY 2021.
• 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

IFRS to Non-IFRS

	Year ended as of (U.S. dollars in thousands)		Quarter ended as of (U.S. dollars in thousands)
	2021	2020	Q4 2021	Q4 2020
Loss for the year	(24,769)	(6,083)	(9,992)	(3,085)
Finance expense, net	1,655	3,874	(402)	2,695
Tax (Benefit) expense	632	(15)	618	40
Depreciation and amortization	7,198	5,908	1,867	1,555
EBITDA	(15,284)	3,684	(7,909)	1,205
Share-based compensation	8,850	2,965	3,496	1,234
IPO related expenses	1,879	-	77	-
Equity method investee	538	-	414	-
Adjusted EBITDA	(4,017) (*)	6,649	(3,922) (*)	2,439

(*) Excluding (i) product costs increase due to global components shortage and (ii) bonus plan for non-sales employees that was introduced in Q3 2021, full year 2021 Adjusted EBITDA improved to \$1.0M. Q4 2021 Adjusted EBITDA improved to a negative \$0.9M.

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