W.a.g. Payment Solutions Plc · LSE:EWG

W.a.g. Payment Solutions — FY2022 Earnings Presentation

35 slides from W.a.g. Payment Solutions's earnings presentation, Mar 16, 2023

Slide 2: Disclaimer
Disclaimer This presentation comprises certain written materials/slides prepared by W.A.G payment solutions plc (the Company) for the purposes of the Company’s investor relations conference. This document, its contents and the presentation may not be copied, distributed, published, reproduced or pas
Slide 5: 2022 Highlights
2022 Highlights Strong financial performance Good progress on strategic priorities Net energy and Growth from • Implementing agile sales team model services sales existing customers • Maintained strong net average revenue retention >110%. €190.9m +24.6% YoY • Expanded into Germany with an experience
Slide 6: Connecting the CRT industry together into one transparent ecosystem
Connecting the CRT industry together into one transparent ecosystem Fragmented CRT1 ecosystem Energy Finance & Original equipment Regulators Freight operators & Fleet management & toll payments insurance manufacturers & authorities exchanges & data aggregators Creating Fairer transparency distributi
Slide 7: The CRT industry needs a digital and operational transformation
The CRT industry needs a digital and operational transformation Complex Analogue Fragmented Constrained Environmental impact v 30+ < 13% >90% Limited 9% administrative of road transport of operators are access to finance of greenhouse gas tasks for every companies are SMEs and lack restricts earning
Slide 8: Our journey to an integrated end-to-end digital platform
Our journey to an integrated end-to-end digital platform 2023+ 3. Integration 2017 2022 Delivering integrated end-to-end 2. Accumulation platform, driving efficiency and 1995 2016 supporting decarbonisation Acquiring and developing a broader 1. Expansion suite of services, with data at the • AI, dat
Slide 10: Strong financial profile
Strong financial profile Large scale Proven growth High revenue Highly profitable and network track record retention and cash generative 16,950 13.4% >110% 42.8% Active payment CAGR 20-22 Average net Adjusted EBITDA solutions customers Active payment solutions revenue retention margin customer growt
Slide 11: 2022 Financial highlights
2022 Financial highlights € million FY 2022 FY 2021 YoY% • Organic revenue growth of 19.4%, driven by: Net energy and services sales 190.9 153.1 +24.6% • Growth from existing customers through strong average net revenue retention Payment solutions 134.8 113.1 +19.2% (>110%) • Effective cross-selling
Slide 12: Investment in talent and technology capabilities
Investment in talent and technology capabilities Corporate expenses1 Adjusted Employee expenses: € million 2022 2021 YoY% • Costs related to changes in management structure and strengthening talent Employee expenses (59.8) (47.1) 26.9% • Implementing remuneration schemes appropriate for a PLC compan
Slide 13: Adjusted EBITDA profitability sustained
Adjusted EBITDA profitability sustained (€m) Organic Inorganic Incremental growth growth costs 45.5% 83.5 45.6% 85.1 42.8% Margin +13.8 Margin Copyright ©2023 W.A.G payment solutions plc Notes: (1) Other opex year on year increase includes return to travel and other costs post Covid-19, inflation, m
Slide 14: On-track with our technology transformation programme
On-track with our technology transformation programme Capital expenditure (€m) 43.2 2022 progress on transformational capex Transformational Enhancing our sales channels 33.8 capex • Developing social truck navigation (e.g €50m cumulative RoadLords) 25.5 for 2022-2023 • Building indirect channel pro
Slide 15: Strong cash flow generation
Strong cash flow generation (€m) Operating Investing Financing activities activities activities 44.3 (104.3) (14.6) 35.6 (17.7) 26.9 (13.9) 28.0 (60.1) Receivables and payables movement (4.4) Inventory movement (10.2) (44.2) Total working capital development (14.6) (18.2) 224.2 146.0 Cash at 1 Janua
Slide 16: Disciplined debt management
Disciplined debt management Committed debt1 amortisation profile Interest rate swaps Facility A of €150m: • €120m effective payable interest rate of €320m 0.1%, expires 2024 • €30m effective payable interest rate of €266m 2.7%, expires 2027 Facility B of €180m hedged by interest rate swaps €215m Int
Slide 17: Strong financial profile
Strong financial profile Capital allocation Robust Disciplined Prioritise growth principles Balance Sheet Strategic M&A over dividends Integrated end-to-end Focus on deleverage in Accretive M&A to No intention to declare digital platform near-term strengthen our platform a dividend in the near term
Slide 18: Medium-term financial guidance unchanged
Medium-term financial guidance unchanged Net Adjusted Capex Leverage revenue EBITDA % target • Organic net revenue • Adjusted EBITDA • Ordinary capex at • Leverage target of growth between margin from mid- around high single 1.5x–2.5x over the high-teens and low- forties trending to digit % of net m
Slide 20: Our updated strategic framework; integration and platform delivery
Our updated strategic framework; integration and platform delivery Our purpose To make commercial road transport clean, fair and efficient Attract Engage Monetise Retain Strategic pillars Be in Drive Grow Expand platform every truck customer centricity core services capability Multi-channel Integrat
Slide 21: Building an integrated end-to-end digital platform
Building an integrated end-to-end digital platform 2023 product and tech priorities Customers Business Truck driver Fleet Merchants Enhancing our sales channels owner dispatcher & partners • Integrate digital front end • Focus on enhancing customer’s digital journey Sales channels Expanding product
Slide 22: Our platform will unlock further value for customers
Our platform will unlock further value for customers Continue to grow With new capabilities Current Finance Loads All solutions solutions solutions solutions Efficiency, Cashflow Revenue Carbon savings & improvements increase reduction convenience Integrated end-to-end digital platform Copyright ©20
Slide 23: Our platform will help make the CRT clean, fair and efficient
Our platform will help make the CRT clean, fair and efficient Our sustainability strategy… … will help us reach our environmental targets Business operations Climate action Reduce GHG emmisions By 2040 By 2050 from own operations1 by Customer success Achieve zero direct GHGs Net zero emissions busin
Slide 24: Summary and Priorities for 2023
Summary Priorities for 2023 Summary and Achieved strong revenue Integrating businesses acquired and EBITDA growth, in line Priorities for 2023 with medium-term guidance Drive scale through customer acquisition and cross sell Continue to expand our Finalise our transformational geographical footprint
Slide 27: Revenue model
Revenue model Payment solutions Mobility solutions Re-occurring transaction-based revenue streams Re-occurring transaction, recurring subscription and other fee-based revenue streams Vehicle information Smart Other adjacent Energy payments Toll payments Tax refund (Incl. telematics) routing services
Slide 28: Proven resilience through the cycle
Proven resilience through the cycle Global COVID-19 Russia war financial crisis pandemic in Ukraine 191 153 129 115 74 60 41 35 26 20 11 14 15 6 9 4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net revenue (€m) Brent Oil Price ($/bbl.) EU GDP Growth (%) • Proven tr
Slide 29: Inelo at a glance
Inelo at a glance One-stop-shop integrated mobility solutions platform for heavy fleet transportation companies Overview Network & Scale(3) Technology ~54% ~87,000 Proprietary technology Fleet Management Systems (FMS) Connected trucks solution FY2021 Revenue in FMS(1) Inelo HQ Adds mission critical
Slide 30: Strategic rationale
Strategic rationale More connected • Leader in Poland, the largest CRT market in Europe, with critical mass in Slovenia, trucks Croatia and Serbia Stronger • Presence in 16 Western and Central European countries in total Builds scale geographic • Adds approximately 87,000 connected trucks(1), with ~
Slide 31: Inelo’s complementary financial profile
Inelo’s complementary financial profile Inelo Enlarged Group €26.4m €20.6m Near-term enlarged Group Net Revenue split FY2021 Revenue(1) HY2022 Revenue(3) with 38.5% y-o-y growth ~55% €10.9m €9.0m FY2021 Adjusted EBITDA(1) (2) HY2022 Adjusted EBITDA (2)(3) ~45% 41.4% 43.8% Mobility solutions Payment
Slide 32: Net revenue geographical split
Net revenue geographical split Southern Central Cluster 4% Cluster 18% 20% Czech Republic Poland Other Central Cluster Portugal 16% Other Western Cluster Romania 15% Other Southern Cluster Not specified 4% 14% 9% Western Cluster Copyright ©2023 W.A.G payment solutions plc 32

W.A.G payment solutions — FY2022 Earnings Presentation on 6ix

W.a.g. Payment Solutions — FY2022 Earnings Presentation

Slide 1: Full year 2022 results

Slide 2: Disclaimer

Slide 3: Agenda

Slide 4: Introduction and highlights

Slide 5: 2022 Highlights

Slide 6: Connecting the CRT industry together into one transparent ecosystem

Slide 7: The CRT industry needs a digital and operational transformation

Slide 8: Our journey to an integrated end-to-end digital platform

Slide 9: Financial results

Slide 10: Strong financial profile

Slide 11: 2022 Financial highlights

Slide 12: Investment in talent and technology capabilities

Slide 13: Adjusted EBITDA profitability sustained

Slide 14: On-track with our technology transformation programme

Slide 15: Strong cash flow generation

Slide 16: Disciplined debt management

Slide 17: Strong financial profile

Slide 18: Medium-term financial guidance unchanged

Slide 19: Strategic update

Slide 20: Our updated strategic framework; integration and platform delivery

Slide 21: Building an integrated end-to-end digital platform

Slide 22: Our platform will unlock further value for customers

Slide 23: Our platform will help make the CRT clean, fair and efficient

Slide 24: Summary and Priorities for 2023

Slide 25: Q&A

Slide 26: Appendix

Slide 27: Revenue model

Slide 28: Proven resilience through the cycle

Slide 29: Inelo at a glance

Slide 30: Strategic rationale

Slide 31: Inelo’s complementary financial profile

Slide 32: Net revenue geographical split

Slide 33: Countries in which we operate

Slide 34: Our unique suite of services and our customer’s journey

Slide 35: Contact us