NOVATTI GROUP LIMITED — AGM Information 2021

Nov 23, 2021

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Annual General Meeting Presentation

Peter Cook Managing Director www.novatti.com 24 November 2021

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Disclaimer

The material contained in this document is a presentation of general information about Novatti Group Limited’s activities, current as at the date of this presentation on 24 November 2021.

It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice when deciding if an investment is appropriate.

To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by Novatti Group Limited or any of its related bodies corporate.

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2
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Novatti enables businesses to pay and be paid, from any device, anywhere. From corner stores and startups to global organisations, our solutions will unlock your ambitions.

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Business Overview

• Novatti provides businesses with

• everything they need to pay and be paid

• Focus on mobility through technology – using any device, anywhere

• Cover the complete payments value chain – from issuing payment cards to banking services*

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Issuing Acquiring Processing Billing Banking
Prepaid Visa Enabling Including Including Licence
cards merchants to cross-border automation pending with
accept APRA
payment
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*Licence pending with APRA

Strategy

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Technology
Fintech
Digital
Billing
Wallets
Payments
Team
UK
Licences Partnerships
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• Leveraging our leading B2B ecosystem combining:

• Technology – digital and mobile platforms

• Licences – opening jurisdictions and highlighting trust

• o Partnerships – providing scale without substantial capital

• o Team – leading in-house expertise

• Ecosystem now being monetised as fintechs and businesses utilise Novatti’s capabilities

• Focus now on accelerating expansion

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Supported by key market growth

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Seeing strong growth across key markets:

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11.1m US$699b US$9.2b US$5.3b
9.6m
US$583b
US$6.5b
US$2.4b
Prepaid cards issued in Australia Point-of-sale and e-com Personal remittances Global accounts receivable/payable
June 2018 - March 2021 turnover forecast 2020-2024 to/from Australia 2010-2019 automation market 2020-2027
[Source: RBA] [Source: FIS World Pay] [Source: World Bank] [Source: 360 ResearchReports]
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Prepaid cards issued in Australia
June 2018 - March 2021
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[Source: RBA]
Issuing
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[Source: FIS World Pay]
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Acquiring
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Billing
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Processing

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$2.85b
$1.8b
Resident deposits with neobanks
(Judo, 86 400, Volt) April 2020-2021
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[Source: APRA]

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Banking

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FY21 – new growth strategy

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• Started with $10m capital raising

• Funds were applied to delivering a new growth strategy

• Achievements included:

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New New Zealand Team growth New acquiring Ripple Emersion
partnerships licence and – from 65 to 128 business partnership launched
extending scale Afterpay launched generating in US
partnership revenue in the
Philippines
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FY21 – record results

• FY21 saw Novatti’s revenue results strongest ever

• Annual sales revenue grew 50% to $16.5m

• Annual processing sales revenue grew 73% to nearly $11.3m

• Total annual revenue grew 55% to $18.4m

• Growth in annual sales revenue now averaged 45% across past 3 years, highlighting consistent growth

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Annual Sales Revenue
18
16
+50%
14 on FY20
12
10
8
6
4
2
- $m
FY18 FY19 FY20 FY21
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Annual Processing Sales Revenue
12
10 +73%
on FY20
8
6
4
2
$M
-
FY18 FY19 FY20 FY21
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FY22 – expanded growth strategy

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• Started with $40m+ capital raising

• Now delivering on new, expanded growth strategy:

    Increase presence in Enter new Pursue Strategic Reckon existing markets markets acquisitions investment • • • Visa and Mastercard Ripple partnership Agreement on ATX 19.9% strategic Principal Acquiring expanded into Thailand acquisition investment completed Licences • • • Series A for new banking Pipeline of Discussions begun on New EU services with business - $10.5m opportunities being servicing the needs of launch of Verv committed assessed Reckon customers

• Visa and Mastercard Principal Acquiring Licences

• New EU services with launch of Verv

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FY22 – continued strong growth*

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Quarterly Sales Revenue

• September quarter sales revenue - $5.3m

o Highest-ever

• 49% increase year-on-year

• Payment processing sales revenue - $4.2m

• 10th straight record quarter

• 103% increase year-on-year

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6
5
+49%
Year-on-year
4
3
2
$m Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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Quarterly Processing Revenue

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5
4
3
2
1
$m -
Sep-20 Dec-20 Mar-21 Jun-21 Sep-21
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+103%
Year-on-year
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*All figures throughout this document related to the September quarter remain unaudited unless stated otherwise.

Acquisition of ATX

• Novatti will acquire ATX – a leading South-East Asian payments fintech

• Provides strong business in Malaysia and platform to continue expansion in South East Asia

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2.8X
$3m $0.6m
FY21 Annual FY21 EBITDA [1] Valuation multiple [2]
Revenue [1]
10k+ 30k+ 6 years
Agents [3] Touch Points Existing
in Malaysia [3] partnership
with Novatti
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Customers include:
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1. Based on Normalised Revenue, which is an estimate of Sales Revenue that best aligns with Novatti’s Revenue Recognition policy. Normalised revenue and EBITDA are based on FY21 (July 20 – June 21). AUD$ conversion based on RM:AUD0.33.

2. Valuation multiple based on normalised annual revenue.

3. Data provided by ATX management and subject to final due diligence.

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Acquiring licences

• Novatti’s acquiring business enables merchants to accept payment

• Visa and Mastercard Acquiring Licences

• Bring through larger business opportunities

• Generate higher gross margins over long term

• Already seeing growing customer base

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Acquirer
Merchant
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Bank/Issuer
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Consumer/
Purchaser
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Outlook

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• Main ambition – continue to grow top line revenue

• Deliver on expanded growth strategy:

o New and expanded markets

• Finalise restricted banking licence approval

• Discussions with Ripple on new markets in South East Asia

o Acquisitions

• ATX – complete acquisition and integrate

• Assessing other opportunities in pipeline

o Strategic investment in Reckon

• Discussions begun on servicing the needs of Reckon’s customers

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This presentation has been approved for release to the ASX by Peter Cook, Managing Director

www.novatti.com