Eml Payments Ltd. · ASX:EML
Eml Payments — HY2018 Earnings Presentation
26 slides from Eml Payments's earnings presentation, Feb 20, 2018
Slide 1: HY2018 Interim Results
For personal use only HY2018 INTERIM RESULTS
Slide 2: Disclaimer
HY2018 OVERVIEW DISCLAIMER For personal use only Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information about EML’s activities current as at the date of this presentation. This information is given in summa
Slide 3: Agenda
HY2018 OVERVIEW AGENDA For personal use only 01 HIGHLIGHTS Tom Cregan Managing Director & Group CEO 02 FINANCIAL OVERVIEW Bruce Stewart Group CFO 03 OUTLOOK Tom Cregan Managing Director & Group CEO EML Payments Results Presentation Interim FY2018 3
Slide 4: Director Changes
HY2018 OVERVIEW HIGHLIGHTS DIRECTOR CHANGES For personal use only Bob Browning Dr Kirstin Ferguson Melanie Wilson Bob Browning has announced his retirement from Dr Kirstin Ferguson is an independent non- Mrs Melanie Wilson has over 12 years the Board, effective from 20 February 2018. executive direc
Slide 5: Gross Debit Volume (GDV)
HY2018 OVERVIEW HIGHLIGHTS GROSS DEBIT VOLUME (GDV) For personal use only $3.58bn 86% (AUD’ millions) 4,000 Group GDV totalled $3.58bn, an increase of 86% over the prior 3,500 period. Excluding the impact of movement in foreign exchange rates, group GDV would have been approx. $0.1bn higher. 3,000 $
Slide 6: GDV by Region
UK / EUROPE REGION UP AUD209.8m For personal use only 63% on H1FY2017 GDV UP GDV NON-RELOADABLE GDV RELOADABLE $168.9m $40.9m 79% up 31% up 100% on H1FY2017 NORTH AMERICA REGION AUD2,637.9m GDV GDV NON-RELOADABLE GDV RELOADABLE GDV VIRTUAL PAYMENTS $239.9m $1,122.0m $1,276.0m down 6% up 100% up 5% U
Slide 7: Revenue
HY2018 OVERVIEW HIGHLIGHTS REVENUE For personal use only $38.2m 18% (AUD’ millions) Group revenue for HY2018 of $38.2m, up 18% over prior period. 45 40 75% Increase in Australian revenue over prior period 35 Australia increased 75% generating $8.8m in revenue, driven by Salary 30 Packaging vertical.
Slide 8: EBTDA
HY2018 OVERVIEW HIGHLIGHTS EBTDA For personal use only $13.5m 35% (AUD’ millions) 15 Group EBTDA for HY2018 was $13.5m, up 35% on prior period. Adjusting for constant fx rates, primarily in the USA, EBTDA would 12 have been $13.9m. 9 259% Five-year EBTDA CAGR 6 Seasonality on the group’s financials
Slide 9: Stored Value
HY2018 OVERVIEW HIGHLIGHTS STORED VALUE For personal use only $515m $122m (AUD’ millions) 600 Stored value closed at $515m, an increase of $122m or 31% on the prior period. 500 The group generated $1.1m in interest revenue for the period on 400 stored value, which is not a significant contribution d
Slide 10: Results — Year CAGR
HY2018 OVERVIEW HIGHLIGHTS RESULTS — 5 YEAR CAGR For personal use only Gross Debit Volume HY2018 Revenue HY2018 EBTDA HY2018 $3.58bn 114% $38.2m 74% $13.5m 259% (AUD’ millions) (AUD’ millions) (AUD’ millions) 4,000 45 16 3,500 40 14 35 12 3,000 30 10 2,500 25 8 2,000 20 6 1,500 15 4 1,000 10 2 500 5
Slide 11: Business Development
HY2018 OVERVIEW HIGHLIGHTS BUSINESS DEVELOPMENT For personal use only Non-Reloadable: Reloadable: B2B Virtual: EML Payments Results Presentation Interim FY2018 11
Slide 12: Successes - German Malls
HY2018 OVERVIEW HIGHLIGHTS SUCCESSES - GERMAN MALLS For personal use only Signed letter of intent with the largest mall operator in Germany, operating in excess of 90 malls. 5 year agreement for the launch and management of a consumer gift card program. Replaces existing paper voucher program. Subje
Slide 13: Successes - Wijnegem Mall
HY2018 OVERVIEW HIGHLIGHTS SUCCESSES - WIJNEGEM MALL For personal use only 5 year contract to launch a pre-paid consumer gift card program with expected loads in excess of €6.5 million. Replaces existing paper voucher scheme. Over 250 stores, located near Antwerp. The largest shopping centre in Belg
Slide 14: Overview of Presend
HY2018 OVERVIEW HIGHLIGHTS OVERVIEW OF PRESEND For personal use only HISTORY Co-Founded in 2010 by Jon Sederqvist Østmoe (CEO) an experienced payments professional who was previously an international payments consultant and payments product manager. First program launched in Q4 2012 and PRESEND have
Slide 15: Presend Strategic Rationale
HY2018 OVERVIEW HIGHLIGHTS PRESEND STRATEGIC RATIONALE For personal use only Expands European Mall Cost Synergies Earnings Upside Card Portfolio PRESEND outsources most of its operations In FY19, PRESEND is expected to contribute Adds 90+ mall and city/town programs to our to third parties for which
Slide 16: Purchase Price
HY2018 OVERVIEW HIGHLIGHTS PURCHASE PRICE For personal use only EML is protected and the vendor Purchase price is split into 2 separate components, representing a combined total is incented to perform by making maximum of SEK 70m (A$11.1m). We expect this to equate to a forward EBTDA the bulk of the
Slide 17: Profit & Loss of Presend Payments
HY2018 OVERVIEW HIGHLIGHTS PROFIT & LOSS OF PRESEND PAYMENTS For personal use only Revenue Numbers alongside exclude cost and revenue synergies YE APR 2016 YE APR 2017 YE APR 2018 Forecast ($’000s) Audited Audited (pre-synergies) that we expect to drive from May 2018 onwards. METRICS Load volumes $1
Slide 18: Financial Overview: Group Profit & Loss
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS For personal use only Revenue EBTDA IMPACTED BY UNFAVOURABLE USD EXCHANGE RATE MOVEMENTS ($’000s) HY 2017 HY 2018 GROWTH Australia 5,004 8,757 75% Europe 6,665 8,206 23% Eliminating the impact of adverse movements in exchange rates Americas 20,771 21
Slide 19: Financial Overview: Revenue Mix
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS For personal use only Breakage reduced from 59% of revenues in the HY2017 to 41% in HY2018, declining as a percentage as Reloadable and B2B Virtual Payments increased. 4% 9% 3% 10% Interchange revenues increased from 12% to 21% of total revenues, dri
Slide 20: Financial Overview: Gross Margin and Overheads
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS For personal use only Gross Profit Margin Overheads as a % of revenue 75.1% on PCP 40% 8% Down on HY2017 but in line with our AGM guidance as the product Improved 8% to 40% in FY17 as the group continues to see leverage mix shifts towards Reloadable
Slide 21: Financial Overview: Currency
FINANCIAL OVERVIEW GROUP FINANCIALS CURRENCY For personal use only The Group operates in 19 countries with Presend providing access to six countries which EML had no presence in, and now trading in eight currencies. The group operates in eight currencies: AUD, USD, CAD, GBP, EUR, DKK, NOK, SEK The g
Slide 22: Financial Overview: Balance Sheet
FINANCIAL OVERVIEW GROUP FINANCIALS BALANCE SHEET For personal use only Cash & Cash equivalents $34.7m 13% ($’000s) FY 2017 HY 2018 % INCREASE Cash and cash equivalents 39,872 34,697 (13%) Breakage accrued 13,326 19,471 46% Other receivables and other assets 14,923 17,715 19% Cash & Cash equivalents
Slide 23: Financial Overview: Balance Sheet
FINANCIAL OVERVIEW GROUP FINANCIALS BALANCE SHEET For personal use only Breakage accrual increased to $19.5m of which 66% Group has significant tax losses is expected to convert to cash within 12 months The Group has significant tax losses, primarily in Australia Approx. $6.6m of the breakage accrua
Slide 24: Outlook: H2 Outlook
OUTLOOK GROUP FINANCIALS H2 OUTLOOK For personal use only $6.7bn – 7.0bn FY18 Gross Debit Volume ~ 100bps GDV to Revenue conversion metric LuLaRoe volumes in December 2017 to February 2018 trailing lower than We expect the Revenue / GDV metric to remain approximately the previous 6 month average. Gi
Slide 25: Key Data Years: Key Metrics
FINANCIAL OVERVIEW KEY DATA 3 YEARS For personal use only KEY METRICS ($’000s) H1 2015A H2 2015A FY2015A H1 2016A H2 2016A FY2016A H1 2017A H2 2017A FY2017A HY 2018A 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths Headcount (closing) 55 55 55 59 150 150 168 170 170 179 A
Slide 26: Key Data Years: Key Financials
FINANCIAL OVERVIEW KEY DATA 3 YEARS For personal use only KEY FINANCIALS ($’000s) H1 2015A H2 2015A FY2015A H1 2016A H2 2016A FY2016A H1 2017A H2 2017A FY2017A HY 2018A 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths Revenue (includes interest income) $5,079 $9,357 $14,4