Ann: FY21 Results Presentation, page-10

Really looking forward to the webinar today.
Key takings from these announcements which I'm absolutely bullish about:

ü Record $18.4m in total revenue – up 55% on FY20

ü Record $16.5m in annual sales revenue – up 50% on FY20

ü Record $11.2m+ in annual processing sales revenue – up 73% on FY20

ü Annual sales revenue grows an average of 45% across the past three years

ü Novatti’s team growing from 65 to 128

Actively assessing acquisition opportunities

ü New banking business launch ready - aiming for regulatory approval by end of November 2021 (we have a date now, which is a massive announcement/statement, we can begin a countdown. Information contained like this in all 3 announcements highlights this is approved IMO).

v Agreements with- Apple Pay, Samsung Pay, Google Pay, Ripple & Afterpay NZ this year.

v Emersion Launcing in the US- We will now begin to see revenue generated in the US after our investment, which will increase EBIT and REVENUE.

v we will seek to increase our presence in existing markets, enter new markets, pursue a range of acquisition opportunities, and open new opportunities to explore synergies with Reckon Limited, following our investment in a 19.9% strategic stake.- This has only just happened, 12 months from now this will be massive for Novatti.
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New market licences During the June FY21 quarter, Novatti announced that it had been selected by Afterpay to deliver its payment card program in New Zealand. Novatti’s partnership with Afterpay in New Zealand highlighted how once regulatory approval to operate in a particular jurisdiction is obtained, Novatti is able to monetise this investment quickly. This is a model that Novatti believes it can replicate in other jurisdictions, unlocking new addressable markets. Work here is already underway, with Novatti applying for:
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ü European Union (EU) – E-money Licence: which would enable Novatti to issue a range of financial products in the EU.

ü Singapore - Major Payment Institution Licence: which would enable Novatti to provide payment services without being subject to specified thresholds. In seeking to capture a share of these new addressable markets, Novatti would leverage its existing customer and contact network in both regions, including Emersion, which has operated in Singapore for several years.

The above here highlights appetite for growth in international business, with it brings bigger markets and bigger opportunity. To already be having this mindset highlights the confidence within the company itself, backing their product and team to grow market depth.

Potential acquisition pipeline:

A key pillar of Novatti’s expanded growth strategy, funded through the recent capital raising, is the pursuit of new acquisitions. Novatti has developed a pipeline of potential acquisitions and continues to assess a number of opportunities.

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Please tell me more!!!!!

P&L Reporting:

Revenue up substantially $16.48M V $11.04M Previous + 50%

Employee Benefits- Grew team +100% from year previous – 65-128 approx, this is always going to inflate the Employee benefits and costs to the business. This is required for expansion into other countries and growth in our own.


Assets:
In my opinion a companies assets are extremely important if you are to put a value on their health.
Total Assets from the year previous grew almost 100%- incredible growth number from a small cap Fintech company.

FY 2021 $63.78M v FY 20 $32.83M




All in all i am overly impressed with the result and the strength Novatti have built with their fundamentals.
FY 21 was about growth and acquisition to build the blocks for launching their product and company.
Novatti have commercial agreements with excellent companies such as: Ripple, Afterpay, Marqeta, among many others.
Emersion revenue numbers will begin to come through FY22 reporting as it went live only 6 weeks ago (approximately), as we know the potential growth and numbers in the US will be excellent, the product has already been well received.

Neo Banking APRA Banking License: We now have a date on when the license will drop- Before end of November- this is excellent for every Novatti investor as we now have a solidified date in our reporting which we didn't have previously. This will create another revenue streamed business for Novatti & will create even bigger opportunities.

As we know, disruptive technology is the future as highlighted in multiple financial reviews and discussions. Novatti are on the cusp of a great business, all the fundamentals and team have been created to succeed, now we wait and watch them execute!


have a great day Novatti Fam!