July 12th - 2023 Investor Presentation

Enabling Economic Innovation

through Crypto Infrastructure
TSX-V: BNXA | OTCQX: BNXAF | FSE: AC00
Welcome

Forward-looking Statements

This presentation contains "forward-looking statements." The statements contained in this presentation that are not purely historical are
forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. Such statements
are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control and could cause the Company's results to
differ materially from those described. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential,"
"continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These statements include statements regarding
moving forward with executing the Company's global growth strategy. The statements are based upon current beliefs, expectations and assumptions
and are subject to a number of risks and uncertainties, many of which are difficult to predict. The Company is providing this information as of the date
of this presentation and does not undertake any obligation to update any forward-looking statements contained in this presentation as a result of new
information, future events or otherwise, except as required by law. We have based these forward-looking statements largely on our current UK
expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements
should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such
performance or results will be achieved.
Chairman’s Remarks

Domenic Carosa
Chairman
Chairman’s Remarks

● Acknowledgement

● Audit overview

● AGM Update

● Update on resumption of trading

● Looking ahead
Chairman’s Remarks re Audit/CTO
● Core reasons the audit was delayed:

○ Revenue Recognition

○ Liquidity Providers not being SOC compliant

○ Reclassification of “Deposits on Exchanges” to “Receivables at

Exchanges” (especially poignant post FTX collapse)

○ Hyper growth in the business (Transaction volume was up 107% pcp)

To read the detailed TSX release regarding the audit, scan the QR code
Chairman’s Remarks continued
● AGM is now scheduled for September 28th, 2023

● New Auditor has been appointed (PKF Canada)

● Resumption of trading on the TSX Venture Exchange (TSXv) and OTC

(expected to be reinstated from OTC pink sheets back to top tier OTCQX)

● Macro environment has been overall challenging (high interest rates,

recession risks, crypto regulations/scrutiny, crypto volumes decreasing
since the start of CY 2022); Banxa has weathered these headwinds

● Investment Bank Architect Partners (as announced October 6th 2022)

continues to be engaged to assess potential M&A opportunities that the
company has been approached by in the past
 Corporate Snapshot

Banxa Holdings Inc.

TSX-V: BNXA | OTCQX: BNXAF | FSE AC00

BNXA/BNXAF Share Price (July 11th) CAD$0.99 / USD 0.77

Market Cap CAD$45.1M / USD$35.1M

Common Shares Outstanding 45.56M

ESOP for staff 4.45M

Warrants 4.91M

Float (approx) 33M

Revenue run rate (last 9 months

AUD$76m / USD$50m
annualized)

Insider Holdings (approx) 20%

Team Members 123 (Australia (HQ), Philippines, Europe & USA)

Banxa Top Shareholders All %’s are approximate based on available information
and has been rounded to one decimal place

Shareholder % Held
Board / Management 20.0%

Thorney Technologies Fund (Listed on the Australian Stock Exchange ASX: TEK) 7.0%

Qureshi Family Office 5.0%

NGC Ventures Fund (www.Ngc.fund Singapore) 4.6%

CCGF Family Office 3.0%

U & D Angel investor Syndicate 2.8%

Kucoin Exchange (Crypto exchange) 2.2%

DSAH Holdings (Australian tech entrepreneur Danny Wallis) 1.9%

General Research GmbH 1.1%

OK Group/OKEx Exchange (Crypto exchange) 1.1%

 Business Update

Holger Arians
Chief Executive Officer
 Company Snapshot

150+ B2B partners

Established Over 1 million 120+
A$1.4bn including market
in 2014, one of the customers served team members,
crypto sold in leaders Binance,
pioneers in the and 4 million orders globally, operating
FY22(1) Metamask, Ledger
crypto industry completed in 9 countries
& OKX

30 (crypto/money) 133 supported

Large range of local Total cash/liquidity
licenses and Solutions for blockchains and
payment options available as at 31st
registrations CeFi, DeFi, coins with access
leading to very high March 2023 was
globally, with 12 Web3.0, Gaming, to 100’s of millions
approval / circa AUD$12m
more applied and NFT’s, etc users through B2B
conversion rates (USD$8.1m)
pending integrations

(1) FY22 ending 30 June 2022

 Banxa’s Mission is to
build the infrastructure
to extend the benefits of crypto to every
merchant and consumer
in the world.
 Leading products that deliver results for partners
On / Off Ramp
Allows customers to buy and sell crypto
(including stablecoins) using credit cards
and local payment options, easing the
friction on what has traditionally been a
complex user journey. Banxa receives a
fee (circa 3%) from all transactions
processed.
NFT Checkout
Allows customers to easily purchase NFTs
directly via our global network of payment
options. We handle the fiat payments and
compliance side of the journey, and our
partner’s customers receive full
non-custodial ownership of their NFTs
without a crypto intermediary.
Embedded Crypto
Infrastructure
Banxa has started to modularise its
platform to offer even more integrated
services to the digital asset economy,
now also allowing traditional finance or
web2 companies to operate seamlessly
in web3. Banxa can provide payments,
compliance solutions & complex token
fulfillment in different jurisdictions
around the world.
 Banxa is trusted
by the leaders in crypto and Web3
Centralised Exchanges Segment

Wallets, DeFi & NFT Segments Emerging

 The most direct payment methods leading to
the highest conversion rates in market
Europe/ North South
Global APAC Africa
UK America America

Existing
ACH

Local
Payments:

India
Roadmap Open Indonesia
Banking Malaysia
Philippines
Singapore
Vietnam
 Major milestones achieved
Up until 31st March 2023

● Went live with premium partners MetaMask, BitMart, TheGraph, ZenGo and AtomicHub
● Launched local payment methods in Mexico, Argentina, Chile, Colombia, Thailand
● Granted a total of 28 US Money Transmitter Licenses (MTL’s)
● Created fail safes for our US banking relationships post FTX & banking collapses
● Strong presence at key US trade shows delivering strong sales pipeline
● Implemented KYC sharing with merchants, increasing conversion rates by up to 40%
● Further bolstered global sales team with appointment of Ari Last
● Established paid services revenue channel
● Major restructure in 2022 to save costs and focus on sales with the goal of profitability
● Appointed NYC-based Web3 media agency Wachsman as agency on record
Continued progress makes headlines around the globe
 Strategy Update

Tom Chalmers
Chief Product Officer
Growing audiences

General
Markets

Crypto PSPs, fintechs, neobanks,

enablers FINS, technology providers,
gaming, social
Wallets, DeXs,
Centralised marketplaces,
Exchanges entertainment
Major
venues

Addressable segments going forward

Payment plugins → Embedded Finance (2010s)
 Where To Next: Embedded Crypto

We believe that in 5 years time every company will benefit from crypto technology.

This future will unleash massive economic innovation in the world.

Our product philosophy is to enable this to happen in a programmable base platform.

We call this Embedded Crypto

 Financial Update

Holger Arians
Chief Executive Officer
 FY22 Summary (7/1/21 to 6/30/22)

● Watershed year with significant growth in the first half

followed by a dramatic slowdown in the second half (crypto winter)

● 107% growth in Total Transaction Volume (TTV) to AUD$1.425 Billion (USD$964 Million),
up AUD$737 Million (USD$497 Million)

● 56% growth in Revenue to AUD$71.6 Million (USD$48.3 Million), up AUD$25.6 Million (USD$17.3 Million)

● 24% growth in Gross Profit to AUD$20.8 Million (USD$14 Million), up AUD$4 Million (USD$2.7 Million)

● Total comprehensive loss of AUD$16.6 Million (USD$11.5 Million), due to significant investment into expansion plans

● June 2022: Right sized the business with circa 40% cuts to the expense base
FY23 YTD Summary (7/1/22 to 3/31/23) March 2023 Qtr Summary

● Total Transaction Volume (TTV): AUD$167m

(USD$109m), up 12% from prior Qtr

● Revenue: AUD$24.1m (USD$15.8m)

up 21% from prior Qtr

● Gross Profit: AUD$5.2m (USD$3.4m), up 8% from

prior Qtr

● Operating income of AUD$0.6m (USD$0.4m) mainly

due to a write back of share based expenses of
AUD$2.1m (USD$1.38m) up 141% from prior Qtr

● Adjusted EBITDA loss of AUD$0.9m (USD$0.58) up

38% from prior Qtr

● June quarter TTV AUD$217m (USD$145m),

up 30% from prior Qtr
 Strong Turnaround in a challenging Market

> Market slowed down

> Bitcoin price significantly down from ATH
> Banxa’s TTV improved
> Banxa’s Margin stays strong

Source Blockchain.com
Comparable Companies Assessment ($USD)

Latest Estimated Latest Valuation / Last Financing Total Capital

Company Last Deal Date Valuation ($M) LTM Revenue ($M) Revenue Multiple Size ($M) Raised Employees

Banxa 3/21 $35 $50 <1.0x $12 $21 120

Most Comparable Crypto On/Off Ramp Financings

MoonPay 4/22 $3,400 $150 22.7x $555 $648 287

Sardine 9/22 472 ND ND 52 76 104

Ramp 11/22 450 ND ND 70 135 200

Xanpool 11/22 400 65.8 6.1x 41 72 90

ZeroHash 1/22 340 25 13.6x 105 168 137

Transak 5/23 ND ND ND 20 33 76

Most Comparable Crypto On/Off Ramp M&A

Nuvei | Simplex 9/21 350 25 14.0x 7 17.5 172

Source: PitchBook

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Other Comparable Public Companies

EV / Revenue EV / EBITDA
Market Enterprise
Company Cap ($M) Value ($M) LTM 2022 2023E LTM 2022 2023E Business Description
Financial Institution Infrastructure
Fiserv 73,962 94,939 5.7 5.5 5.3 14.3 13.3 12.2 Core processing payments services
FIS 34,622 52,295 3.7 3.4 3.4 8.0 8.1 7.5 Core processing payments services
Jack Henry 11,297 11,482 6.0 5.9 5.5 17.4 17.6 16.9 Core processing payments services
Median 5.7 5.5 5.3 14.3 13.3 12.2
Payments
ACI Worldwide 2,609 3,635 2.6 2.6 2.5 8.5 9.1 8.4 Real-time electronic payments
Block 36,480 36,603 2.2 2.1 1.8 NM 47.7 31.8 Payments platform for SMEs/Consumers
PayPal 83,138 88,714 3.4 3.2 2.8 19.1 13.6 11.4 Internet commerce between parties
Nuvei 7,426 7,209 8.8 8.6 7.2 32.4 21.0 17.2 Provider of payment tech
Adyen 44,195 38,760 5.2 28.6 21.4 55.1 47.3 34.7 Payment platform for merchants
Median 3.4 3.2 2.8 25.8 21.0 17.2
Crypto Exchanges
Coinbase 12,548 9,711 1.3 1.9 2.3 6.4 NM 66.4 Digital asset exchange
Galaxy Digital* 1,625 194 0.2 0.2 0.3 NM NM ND Digital asset bank
Bakkt 362 289 6.7 4.1 3.5 NM NM NM Digital asset exchange
Median 1.3 1.9 2.3 6.4 NM 66.4
Public company data as of 4/27/2023
*Due to negative EV, multiple is based on market cap
CAD to USD conversion price is $0.772 CAD/USD, per 2022 average rate.
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Thank you

Questions