Tyro Payments Ltd. · ASX:TYR
Tyro Payments — H1 FY23 Earnings Presentation
19 slides from Tyro Payments's earnings presentation, Mar 17, 2023
Slide 1: H1 FY23 Retail Shareholder Webinar
H1 FY23 RETAIL SHAREHOLDER WEBINAR 17 MARCH 2023 Tyro Payments Limited ABN 49 103 575 042
Slide 2: Chair's Introduction
Chair’s Introduction Fiona Pak-Poy 2
Slide 3: Board and Management Renewal
Board and Management Renewal • Fiona Pak-Poy elected Chair of the Board • 3 new Non-executive Directors Board Renewal • Depth of experience in payments, technology, banking, risk management, customer excellence, governance, and strategy • ASX leading board diversity • Jon Davey appointed Tyro Group
Slide 4: Interest in Acquiring Tyro
Interest in Acquiring Tyro November 2021 October 2022 February 2023 December 2019 January 2021 Global re-rating of tech Interest received from Potentia granted Tyro lists on ASX @ Terminal Connectivity stocks - increasing other third parties access to due $2.75/share Issue interest rate environment
Slide 5: CEO Overview
tyre CEO Overview Jon Davey
Slide 6: A Rejuvenated Tyro
A Rejuvenated Tyro • Transaction value growth + 37% | Merchant number growth + 9% | Gross profit growth + 40% Growth • Lending origination growth + 101% • Distribution through iconic Australian retailers - Telstra + Australia Post • $11 million annualised benefit - cost reduction program • 79.6% ope
Slide 7: Tyro's Value Proposition
Tyro’s Value Proposition 1 1. Focus on Industry Verticals • Industry specific features and services (eg. Pay@Table, Split Bills, Tipping, BarTab/GuestTab and Health Claiming) • Merchant and industry knowledge and recognition • Close of day for settlement and billing based on merchant trading days 2.
Slide 8: Payments Opportunity
Payments Opportunity 5.4% market share growing at 6x market growth Annual transaction value of card payments acquired in Australia1 ($’billion) - Tyro’s estimated market share of total card payments acquired in Australia - as at 31 December 2022 as at 31 December 2022 5.4% ~5.4% 4.4% market share $7
Slide 9: Banking Opportunity
Banking Opportunity < 10% Tyro Bank Account Customer Penetration Targeting 20% Banking contribution to Group gross profit by FY27 Total merchants vs. activated accounts Banking contribution to Group gross profit Interest income on lending product1 66,884 20.0% 24.4% Total Merchants Average annualise
Slide 10: Immediate Strategic Priorities
Immediate Strategic Priorities INNOVATION Tyro Go Roll-out to Bendigo General Availability Telstra Distribution AusPost Distribution General Availability General Availability General Availability Enhanced Vertical PRODUCT Tyro Pro Merchant trial (non-integrated) (Integrated) (Health Integrated) Spec
Slide 11: H1 FY23 Performance
H1 FY23 Performance Transaction Value Merchants Gross Profit EBITDA $21.7B 66,884 $95.2M $19.5M 9% GROWTH ON H1 FY22: $2.8M 37% GROWTH ON PCP 40% GROWTH ON PCP PCP H2 FY22: $7.9M 16% GROWTH FOR TYRO CORE ACHIEVEMENT OF STRONG BALANCE SHEET STATUTORY NET PROFIT H1 FY23 OPERATING LEVERAGE $0.6M POSITI
Slide 12: Detailed Financial Performance
Detailed Financial Performance Prav Pala, CFO
Slide 13: Key Financial Performance Metrics
Key Financial Performance Metrics Gross Profit ($’million) EBITDA ($’million) Free Cashflow - before Banking ($’million) $95.2m $19.5m $80.4m $68.1m $0.6m $58.6m ($6.4m) $7.9m $5.7m ($27.1m) $2.8m ($46.0m) H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 FY21 FY22 FY22 FY23 FY21 FY22 FY22 FY23 FY21 FY22 FY22 FY2
Slide 14: Margin Analysis
Margin Analysis Tyro Core Payments Business1 Margins as a proportion of Transaction Value (bps) • MSF up 4.0bps on H2 FY22 and 7.2bps 100.0 on H1 FY22: 91.2 › Implemented price increases in March 2022 95.0 87.5 88.0 and September 2022 to account for scheme 90.0 84.0 and interchange fee increases fro
Slide 15: Achieving Operating Leverage
Achieving Operating Leverage 116.4% 114.2% 110.3% 104.7% Operating Expenses ($’million) 92.8% 88.2% 79.6% 79% 24% ~$187m 11% to ~$191m 4% Gross Profit (normalised) $75.7m $148.5m $72.5m $65.3m $119.7m $95.2m $93.5m $83.3m $69.1m $56.0m H1 H2 H1 FY22 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY22 H1 FY23 FY
Slide 16: Trading Update
Trading Update1 PAYMENTS BUSINESS: • Strong start to H2 FY23 • Transaction value 1 January 2023 to 24 February 2023 - $6.3 billion, up 23% on pcp › Victoria h 27% › NSW h 28% › Queensland h 24% › WA h 22% › SA h 44% › Other (includes Bendigo Alliance) h 5% BANKING BUSINESS: • Loan originations 1 Jan
Slide 17: FY23 Guidance Re-Affirmed
FY23 Guidance Re-Affirmed1 Earnings guidance range for FY231: FY23 GUIDANCE RANGE Positive Free Cash Flow1: Transaction Value2 $42.5 billion to $43.5 billion • Targeting positive free cash flow6 exiting FY23 (after all Gross profit3 (after Bendigo commission) $187 million to $191 million operating e
Slide 18: Disclaimer
Disclaimer This presentation is given on behalf of Tyro Payments Limited (Tyro) (ASX:TYR) (ABN 49 103 575 042). Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, or purchase of, or a recommendation to invest in Tyro secu
Slide 19: Investor Relations contact details
Investor Relations contact details: Giovanni Rizzo Phone: +61 (0) 439 775 030 Email: grizzo@tyro.com Address: 18/55 Market St, Sydney NSW 2000 Company website: https://investors.tyro.com