Wex Inc. · NYSE:WEX
Wex — Investor Presentation (November 2021)
26 slides from Wex's investor presentation, Nov 16, 2021
Slide 1: WEX Inc. Investor Presentation
WEX Inc. Investor Presentation November 16, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This deck contains forward-looking statements, including statements regarding: assumptions underlying the Company's future financial performance, future operations; future market and growth opportunities and expectations; expectations for future revenue performance, future
Slide 3: Overview of WEX
$112 $364 2015 2020 $195 $278 2015 2020 $548 $918 2015 2020 Overview of WEX We are a financial technology solutions provider focused on simplifying the complexities of payment systems by providing seamless, integrated and data-driven offerings for our customers FLEET SOLUTIONS TRAVEL & CORPORATE SOL
Slide 4: WEX by the Numbers
WEX by the Numbers GLOBAL PRESENCE 4 TRACK RECORD OF PERFORMANCE We provide scalable payments solutions to millions of customers, partners and end-users around the world across our fleet, corporate payments, travel and health businesses, and have a track record of creating value for shareholders 200
Slide 5: History of Shareholder Value Creation at WEX
5 History of Shareholder Value Creation at WEX 2000s 2010s 2020s EARLY GROWTH AND IPO BUILDING SCALE AND DIVERSIFYING DISRUPTION OF PANDEMIC AND INVESTING FOR FUTURE GROWTH 2005 Wright Express IPO 2012 Name change to WEX to reflect transformation and growth 2014 Acquisition of Evolution1 2016 Acquis
Slide 6: Investment Highlights
6 Investment Highlights We have leading technology, customers, and people that all continue to drive strong shareholder value GROWTH ENGINE, IN LARGE MARKETS TECH PLATFORMLEADERSHIP POSITION PEOPLE Well-positioned in very large addressable markets Proven track record delivering strong revenue and ea
Slide 7: WEX Has Core Competencies That Have Led to Our Success
7 WEX Has Core Competencies That Have Led to Our Success We drive organic growth across each of our end-markets by leveraging our core strengths Tech Platform ▪ Continuously improving and upgrading our proprietary tech stack ▪ Large and unique data asset with robust capabilities Scale & Resilience ▪
Slide 8: Our Addressable Markets Are Large, With Big Expansion Opportunities
8 Our Addressable Markets Are Large, With Big Expansion Opportunities Leveraging tech platform to expand our opportunity Strong Secular Tailwinds ▪ 5-10% market growth, outpacing GDP Opportunities to Expand Addressable Market ▪ New products ▪ New customer segments ▪ New geographies 1. Currently addr
Slide 9: Our Fleet Segment
9 Our Fleet Segment We are a leader in fleet vehicle payment processing services with solutions that are specifically designed for the needs of large fleets, government fleets, over-the-road carriers and small businesses MARKET CHARACTERISTICS WEX’S POSITION IN THE MARKET CORE SOLUTIONS KEY DIFFEREN
Slide 10: Electric Vehicle (EV) Transition Presents a Significant Opportunity
10 Electric Vehicle (EV) Transition Presents a Significant Opportunity As our customers transition to the “new” mixed fleet, WEX is positioned to help them manage their end-to-end reporting and payment needs On-Route Universal EV and Fuel Payment Solution At Work Depot/Workplace Charging At Home Hom
Slide 11: Our Travel & Corporate Payment Solutions Segment
11 Our Travel & Corporate Payment Solutions Segment We are a global leader in travel & corporate payment solutions, developing and providing technology that enables customers to manage complex payments ▪ Embedded payments, including virtual card platform ▪ Accounts payable automation ▪ Commercial ca
Slide 12: Volumes in Travel & Corporate Payment Solutions Segment Continue to Grow
12 Volumes in Travel & Corporate Payment Solutions Segment Continue to Grow Our Travel & Corporate Payment Solutions model is highly efficient, resilient, and the foundation for us to extend our lead as the world emerges from COVID-19 ▪ Steady Corporate Payments net interchange rate ▪ Travel volumes
Slide 13: Our Health & Employee Benefits Segment
13 Our Health & Employee Benefits Segment Our Health & Employee Benefit Solutions segment is comprised of our healthcare payment products and SaaS platforms with which we address the complex healthcare market 500+ Fortune 1000 Companies on WEX Health Cloud2 $3B+ in HSA Assets2 16.9M SaaS Accounts2 ▪
Slide 14: Vectors for Future Value Creation
14 Vectors for Future Value Creation Win New Customers Digital channels Grow Share Of Wallet Cross-selling Expand & Diversify Offering EV Small businesses Broaden Global Footprint Europe & APAC Strategic M&A Disciplined & opportunistic 1 2 3 4 5 Everything we do is book-ended by customers and our pe
Slide 15: Capital Allocation Strategy
15 Capital Allocation Strategy We are careful and thoughtful stewards of capital, investing in the opportunities we believe will generate the best returns while maintaining appropriate leverage and opportunistically returning capital to shareholders ACCRETIVE M&A ▪ Strong track record of executing a
Slide 16: M&A Strategy and Opportunities
16 M&A Strategy and Opportunities We have a strong track record of accelerating growth through strategic M&A, and will continue to use accretive acquisitions as a means of expanding our reach and enhancing our technology, talent and solutions PRODUCT EXPANSION ▪ Provide partners and customers with a
Slide 17: Track Record of Strong Financial Performance Pre-Pandemic
17 Track Record of Strong Financial Performance Pre-Pandemic Prior to the pandemic, we delivered ten consecutive years of revenue growth and multiple consecutive years of adjusted net income growth $854 $1,012 $1,249 $1,493 $1,724 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2015
Slide 18: Robust Recovery from Pandemic Across All Segments
18 Robust Recovery from Pandemic Across All Segments Strategic initiatives taken during the pandemic have provided a solid foundation and positioned us well for a post-pandemic business environment FLEET SOLUTIONS TRAVEL & CORPORATE SOLUTIONS HEALTH & EMPLOYEE BENEFIT SOLUTIONS $278 $204 $286 $0.0 $
Slide 19: Medium- and Long-Range Financial Targets
19 Medium- and Long-Range Financial Targets1 Strategic investment and innovation combined with our customer-centric culture has positioned us to grow and capture market share, and we remain confident in our ability to achieve our long-term growth targets ORGANIC REVENUE GROWTH: 8% - 12% TOTAL REVENU
Slide 20: Our Commitment to ESG
20 Our Commitment to ESG Our focus on ESG is embedded in our culture, integral to our long-term strategy, and underpinned by our core values ▪ Minimize our energy and waste footprint ▪ Give customers solutions and data to optimize fuel consumption ▪ Position and partner to lead in the expected trans
Slide 21: Recent Achievements and Quarterly Highlights
Recent Achievements and Quarterly Highlights Our results through the third quarter reflected strong execution from the WEX team, positive trends across the business and strong demand for our platform and services as we continued to invest in new solutions to meet customers’ needs BUILDING FOR THE FU
Slide 22: Investment Highlights
22 Investment Highlights We have leading technology, customers, and people that all continue to drive strong shareholder value GROWTH ENGINE, IN LARGE MARKETS TECH PLATFORMLEADERSHIP POSITION PEOPLE Well-positioned in very large addressable markets Proven track record delivering strong revenue and e
Slide 23: Appendix
Appendix
Slide 24: WEX Non-GAAP Reconciliation
24 WEX Non-GAAP Reconciliation The Company's non-GAAP adjusted net income for 2020 and 2021 excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, legal settle
Slide 25: Reconciliation of GAAP net income to adjusted net income
25 Reconciliation of GAAP net (loss) income attributable to shareholders to adjusted net income attributable to shareholders 2021 Year-to-Date 2020 2019 2018 2017 2016 2015 (In thousands) Net (loss) income attributable to shareholders 11,897$ (243,638)$ 99,006$ 168,295$ 160,062$ 23,499$ 76,196$ Unre
Slide 26: Reconciliation of GAAP operating income to adjusted operating income
26 Reconciliation of GAAP operating income attributable to shareholders to adjusted operating income attributable to shareholders September 30,2021 June 30,2021 March 31,2021 (In thousands) Operating income 100,822$ 82,278$ 50,541$ Unallocated corporate expenses 20,977 17,174 16,209 Acquisition-rela