Tyro Payments Ltd. · ASX:TYR
Tyro Payments — Investor Presentation (February 2024)
31 slides from Tyro Payments's investor presentation, Feb 27, 2024
Slide 1: Investor Briefing H1 FY24 Results
Slide 2: Disclaimer
DISCLAIMER This presentation is provided by Tyro Payments Limited ABN 49 103 575 042 and its controlled entities (variously, “Tyro”, “us”, “we”, “our” and “Group”) and is current at 27 February 2024. It is information given in summary form only and does not purport to be complete. It does not consti
Slide 3: Business update, Financial results, Outlook and Guidance update, Q&A
Slide 4: Business update
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Slide 5: Tyro's vision: leading payments and cashflow management platform
TYRO’S VISION IS TO BE THE LEADING PAYMENTS AND CASHFLOW MANAGEMENT PLATFORM FOR AUSTRALIAN BUSINESSES
Slide 6: H1 FY24
H1 FY24 +2.2% +10.5% +40.6% +5.6 ppt Transaction Value Gross Profit EBITDA EBITDA Margin
Slide 7: Revenue growth and margin improvements
▪ Revenue growth and margin improvements (Gross Profit +10.5%, EBITDA margin +5.6 ppt, Free Cash Flow 17.8x). ▪ Continued operating efficiency driven by digitised processes, right-sized teams and investment in growth areas. ▪ Strong growth in non-discretionary Health (+24.2% TV) and Services (+7.2%
Slide 8: Profit momentum continues
PROFIT MOMENTUM CONTINUES Resilience to the economic environment, delivered strong profit growth Gross Profit $88.9m H1FY23 H2 FY23 H1FY24 |Tyrocore Bendigo Powered-by-Tyro EBITDA’ —@- EBITDA Margin 26.0% 23.3% 20.4% $27.3m $22.8m $19.5m H1FY23 H2 FY23 H1FY24 EBITDA tyro Free Cash Flow 6m H1FY23 H2
Slide 9: Non-discretionary verticals growing strongly
NON-DISCRETIONARY VERTICALS GROWING STRONGLY Tyro core transaction value growth led by Health Services @ Health m Retail = Hospitality H1 FY23 H1 FY24
Slide 10: H1 FY23 H2 FY23 H1 FY24
H1 FY23 H2 FY23 H1 FY24 H1 FY23 H2 FY23 H1 FY24
Slide 11: Multi-product adoption driving customer value
MULTI-PRODUCT ADOPTION DRIVING CUSTOMER VALUE More value for merchants >1in 5 11.9% New leads requesting Tyro (+1.2ppt)' Banking services Multi-product adoption Better customer economics? aa ea Payments only Payments + Deposits Payments + Deposits + Lending ease in gross profit per customer.
Slide 12: Building products customers want
BUILDING PRODUCTS CUSTOMERS WANT Delivering solutions that our merchants want in 2024 Sarah manages a bustling cafe during the day, which transforms to a . [ lement times boutique restaurant at night, all from the same location. Multi-account se Sarah's bank settles into her account after hours the
Slide 13: Virtual debit card for merchants
A few hours before opening, Phil realises the restaurant is low on napkins and needs an urgent order, which he knows he can get with his supplier. He doesn’t have the time to do it herself, and his staff members don’t have an easy way to make purchases on behalf of the business. Merchants with a Tyr
Slide 14: Innovating for the future with Tyro Unified Payments
INNOVATING FOR THE FUTURE WITH TYRO UNIFIED PAYMENTS Bundled Payments + POS * Partnering with our network of POS providers to offer a complete Payments and POS solution, with a simple but flexible fee structure. * Opportunity for merchants to leverage Tyro’s No Cost EFTPOS to recover their EFTPOS fe
Slide 15: Financial results
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Slide 16: Strong financial performance
STRONG FINANCIAL PERFORMANCE Building a resilient and more profitable business Increased Gross Profit Gross profit Up 10.5% Banking 6.8% of GP H1 FY23 H2 FY23 H1FY24 Gross Profit? mPayments mBanking © Corporate 1Underlying expenses exclude one off costs and lending & nonending losses. 2 Prior compar
Slide 17: Performance improved across all key metrics
PERFORMANCE IMPROVED ACROSS ALLKEYMETRICS tyro $'000 unless stated otherwise Hi FY23 GROWTH Total Transaction Value $21.7 Payments Gross Profit 88,247 Banking Gross Profit 4,572 Corporate Gross Profit 2,341 Gross profit! (normalised) 95,160 Operating expenses! (normalised) (74,565) Lending and non-l
Slide 18: Payments at the core of our business
PAYMENTS AT THE CORE OF OUR BUSINESS Tyro core TV growth Tyro core Bendigo Powered-by-Tyro H1 FY23 H1FY24 H1FY23 H1 FY24 Payments Gross Profit Payments Gross Profit L $78.0m | f $84.9m j ( $10.2m f $7.8m } mHospitality m Retail mHealth Services Tyro core margin strengthening 92.4 bps 88.0 bps 92.4 b
Slide 19: Banking improving customer economics
BANKING IMPROVING CUSTOMER ECONOMICS Loan originations and Deposits Up 17.7% : i H1FY23 H1FY24 Dec 22 Dec 23 Loan originations Deposits Tncluding lending losses and funding costs. 2 Represents spread achieved by investing excess deposits. Banking and Corporate return metrics Average Loan Average Exc
Slide 20: Operating expense breakdown
Customer Support 18% Product Development Sales & 45% Marketing 18% Corporate 19%
Slide 21: Strong financial position
STRONG FINANCIAL POSITION Strong liquidity position Free Cash Flow $150.0m $128.9m $117.4m HI FY23 H2 FY23 H1FY24 Total cash and other investments! ‘Cash and financial investments excluding equity investments. 2H1 FY22 calculated under the previous capital regime. The new capital regime came into ef
Slide 22: Financial summary
tyro FINANCIAL SUMMARY ~/ Increased gross profit Disciplined cost management ~ Improved profitability and cash generation
Slide 23: Outlook and Guidance update
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Slide 24: Updated guidance
FY24 tyro UPDATED GUIDANCE Earnings guidance range for FY24 Transaction value $43 billion to $44 billion Gross Profit? (after Bendigo commission) $208 million to $215 million Continued Positive Free Cash Flow® EBITDA® (before share-based payments) $54 million to $58 million Targeted EBITDA margin* ~
Slide 25: H1 FY24 Summary
H1 FY24 SUMMARY V ) Delivering strong profitability and non-discretionary vertical growth Y ) Ongoing cost discipline driving sustainable operating efficiency YY) More resilient business creating opportunities for growth
Slide 26: Q&A
tyro Q&A Jon Davey Prav Pala CEO & MANAGING CHIEF FINANCIAL DIRECTOR OFFICER
Slide 27: Appendix
tyro APPENDIX
Slide 28: Reconciliation of statutory to normalised results
RECONCILIATION OF STATUTORY TO NORMALISED RESULTS tyro NORMALISATION ADJUSTMENTS, 000m ste thers since croutons timer, ne gmind revaluation Total revenue 254,382 - (17,324) - 237,058 Payments direct expenses (127,657) (3,135) - - (130,792) Interest expenses on deposits (1,099) - - - (1,099) Total di
Slide 29: Financial position
FINANCIAL POSITION $000 unless stated otherwise 31 Dec 2023 30 Jun 2023 Assets Cash and financial investments 153,908 132,906 Loans to merchants 39,828 50,526 Property, plant and equipment 47,438 42,785 Intangible assets and goodwill 101,933 126,502 Right-of-use assets 24,607 26,344 Other current as
Slide 30: Free cash flow
FREE CASH FLOW’ $'000 unless stated otherwise HIFY24 HIFY23 Change Operational cash flows EBITDA 27,348 19,456 7,892 Capital expenditure (15,014) (17,024) 2,010 Rent (1,435) - (1,435) Bendigo top-up payment? - - - Working capital movements (632) (388) (144) Total operational cash flows 10,367 2,044
Slide 31: Payments business - supplementary information
PAYMENTS BUSINESS - SUPPLEMENTARY INFORMATION tyre TRANSACTION VALUE MERCHANT COUNT Performance by vertical HI FY24 HI F Y23 GROWTH Brora H1 FY24 (#) H1FY23 (#) GROWTH $'million $'million % (%) % Hospitality 9,455 9,286 1.8% 42.6% 16,333 17,072 (4.3%) Retail 5,393 5,508 (2.1%) 24.3% 10,850 10,783 0.
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