TruFin : 2021 Q1 Investor Presentation

Investor presentation

January 2021

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2020 FY unaudited results

Financial highlights from continuing operations:

⚫ Revenues (unaudited):	approximately £14.6m (£7.3m FY19, 100%
	growth)
⚫ Loss before tax (unaudited):	not more than £8.4m (£9.3m FY19)

Commentary on current trading

•

•

•

All subsidiaries performing robustly within their niches

Substantially de-risked over the last year, despite the global pandemic and lockdown

Group is fully funded to achieve profitability

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TruFin: integrated financial solutions

Government bodies - £95bn of annual spend¹

Games				Accountants
			- £58bn
developers
			invoice
- $149bn
			finance
market4
			market²

Financial advisors - £470bn market³

Sources: ¹ LGiU, 2017-18; ² ABFA, quarterly issuance in the UK; ³ Platforum, as of 2017; 4 Newzoo Global games Market Report

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Oxygen is positioned to dominate a vast market

Huge market

Market leader

Scalable solution

Resilient revenue

• £74bn total local government spend1
• £178bn total other public sector2
• >£1trn spend in adjacent markets3
• c.100 clients, 35 local govt. clients
• c.20% share of local government market
• £27m invoice discounts achieved to date
• >£22bn spend in Oxygen's client base
• >3,000 onboarded suppliers
• 4.6m invoices transacted in 2020
• 5 year contracts
• 94% client retention
• c.90% contracted recurring revenue

Source: 1 Local Authority Transparency Data; 2 Central Government Public Sector spend, 'Gowling WLG 'Institute for Government' report 2018'; 3 UK Infrastructure, UK Utilities and US public sector markets

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Oxygen: demand continues to build

Oxygen contracted procurement spend (£bn) and annual net transaction
25		spend (£m)	Dec-20: Contracted	700
			procurement spend of £22.6bn
					600
20
					500
15					400
10					300
					200
5
Q1-16: Acquisition of				100
	Oxygen
0					0
Dec-15	Dec-16	Dec-17	Dec-18	Dec-19	Dec-20

Contracted procurement spend		Annual net transaction spend

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Oxygen's growth underpinned by existing clients

Oxygen's expected revenue by client cohort

c.80%

of revenue over the next
five years is expected to
be contributed by	Post-2021
existing clients
	2021

2020

2016-19

Clients transacting pre-2016

2020

2021

2022

2023

2024

2025

Expected revenues from clients already signed

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Satago software gets SMEs paid faster

Unpaid invoices (#)

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Number of unpaid invoices by days overdue

78%

reduction in unpaid invoices over a month after being due

0	15	30	45	60	75	90	105	120
				Days overdue (#)
		Without Satago software enabled		With Satago software enabled

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Satago software subscribers continue to grow

Satago subscriber growth (#) and annualised revenue from

those subscriptions (£k)

£700k				5,000
				4,500
£600k
				4,000
£500k				3,500
£400k				3,000
				2,500
£300k				2,000
£200k				1,500
				1,000
£100k
				500
£0k				0
Dec-19	Mar-20	Jun-20	Sep-20	Dec-20
	Annualised revenue (£k)	Subscribers (#)

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Satago opens up new lending avenues with Lloyds

Lloyds SME customers

Lloyds working capital

division

Satago's technology enables Lloyds' working capital division to more efficiently

serve a large roster of SME clients

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Vertus' loan book growth has been supported by TruFin

	14				12%
(£m)	12				10%
Vertus loan book growth	10			Sep-19		Vertus asset yield
			8%
			Bank facility
			closed
8
				6%
6	April-18
TruFin invests
				4%
4
2				2%
	0				0%
	Dec-16	Dec-17	Dec-18	Dec-19	Dec-20

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Vertus is building momentum in spite of Covid-19

Vertus' near term pipeline (£m)

16

15.6

1.8 Negotiation

14

12.4

12

5.0	Term sheet offered

10

8
6			3.9	Term sheet accepted
4			3.0	Submitted to credit
2
			1.9	Awaiting draw
0
	Current loan book	Near term pipeline

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Playstack revenue growth

• TruFin's recent revenue upgrade predominantly due to Playstack
• Powered by Mortal Shell, Playstack has surpassed revenue forecasts for 2020
• Won two significant contracts with major technology platforms
• Playstack's investment beginning to bear fruit

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Playstack's Interact Platform: game sponsorship

Brands are looking to

Games are looking for

marketing revenues in a

acquire customers

non-intrusive manner

Brand 1		Game 1
Brand 2	Game 1	Game 2
sponsored
	by Brand 1
Brand 3		Game 3

The Interact Platform integrates a brand into a game, resulting in non-intrusive marketing

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TruFin's Vision: dominate niches through partnerships

Trusted adviser of UK county councils and

conduit for services to them

Platform for

Leading

brands and

technology

games to

provider for

working capital

partner

provision

First choice source of

lending services to the IFA market

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Strategic priorities

Realise potential

Profitable growth

Fully funded

⚫

⚫

⚫

Provide stable environment for subsidiaries

Growth, but not at all costs

Group fully funded to reach profitability

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Disclaimer

THIS PRESENTATION AND ITS CONTENTS ARE STRICTLY CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND DEPENDENCIES, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR TO ANY RESIDENT THEREOF, OR ANY OTHER JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. THIS PRESENTATION IS NOT AN OFFER OR INVITATION TO BUY OR SELL SECURITIES.

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Disclaimer

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