Cab Payments Holdings Plc · LSE:CABA
Cab Payments — FY2024 Earnings Presentation
39 slides from Cab Payments's earnings presentation, March 2025
Slide 1: 2024 results presentation
2024 results presentation Moving money where it’s needed
Slide 2: Agenda
Agenda 1 Introduction and highlights Neeraj Kapur, Group CEO 2 Financial Performance Neeraj Kapur Neeraj Kapur, David Bee (Chief Commercial Officer), 3 Strategic update Claire Gates (Global Head of Payments) 4 Q&A 2
Slide 3: We are an FX & Payments led business
Highlights Financial Performance Strategic Update Appendix We are an FX & Payments led business… ...but growth needs to come by way of a more sustainable business model Previously Moving towards…. 2023 Income distribution Stability in income A more integrated model… • More clients, geographies, prod
Slide 4: We are executing on our strategy
Highlights Financial Performance Strategic Update Appendix Highlights We are executing on our strategy • Good growth in volumes, market share increasing • 53 new active clients onboarded with 546 total Going forward: active clients Business continues to • Client lending up 3.2x – trade finance & wor
Slide 5: Building on a robust business model
Highlights Financial Performance Strategic Update Appendix Building on a robust business model £37.2bn 546 390 19.2% Volumes Active clients Network counterparties CET1 Ratio +7% vs 2023 +7% vs 2023 +18% vs 2023 2023: 25.5% Strong balance sheet £1.6bn £105m 29% £16.0m Deposit Base Gross Income Adjust
Slide 6: Financial Performance
Financial Performance
Slide 7: Income statement
Highlights Financial Performance Strategic Update Appendix Income statement Performance reflects prior year macro headwinds £m 2023 2024 % FX driven Wholesale FX & Payments FX Wholesale FX 68.5 41.2 (40%) • Challenging macro conditions in Emerging Markets Payments 34.2 27.3 (20%) • Good growth in De
Slide 8: Increasingly diverse income profile
Highlights Financial Performance Strategic Update Appendix Increasingly diverse income profile Building a more predictable and sustainable business Gross Income by product (£bn) Gross Income by client type (£m) Top 5 currency 49% 45% 28% £137m conc. £109m £105m 43 12 2 2 flat Wholesale 43 13 12 FX &
Slide 9: Volumes up, take-rates narrowed by market forces
Highlights Financial Performance Strategic Update Appendix Volumes up Take-rates narrowed by market forces More diversified volume growth reflecting Macro drivers compressed strength and depth of relationships EM take rates Volumes (£bn) Take-rates (bps) Total £35.0bn £34.7bn £37.2bn 24 25 14 13.5 5
Slide 10: Optimising resource to drive strategic growth
Highlights Financial Performance Strategic Update Appendix Optimising resource to drive strategic growth Operating costs up 6% £76.2m £72.1m • Flat staff cost growth 26.6 +15% 30.6 • Other costs driven by – Technology to support larger operations – Property costs associated with larger global footpr
Slide 11: We are re-shaping our work force & strategically upskilling
Highlights Financial Performance Strategic Update Appendix We are re-shaping our work force & strategically upskilling £7-8m £56.1m capex • Expected £12m saving in cash staff costs 10.6 c.(£7m) capex • c. £5m capex proportionally reduces c.(£5m) Broadly flat staff anticipated capex in 2025 P&L cost
Slide 12: The business is cash generative
Highlights Financial Performance Strategic Update Appendix The business is cash generative 2024 absorbed higher capex spend and lower margin performance with cash conversion >50% 2023 2024 Adjusted EBITDA (£m) 64.6 30.8 • Cash conversion >50% Operating FCF (£m) 56.8 15.5 • Higher 2024 Capex reflects
Slide 13: Investing to future-proof our business
Highlights Financial Performance Strategic Update Appendix Investing to future-proof our business Substantial completion of projects in 2024 enables lower project spend going into 2025 and greater focus on product Core Capex £7.0m £12.5m Spend(1) <£8m 29% 40% >50% focus on product 2023 2024 2025 Pro
Slide 14: Well capitalised to support growth
Highlights Financial Performance Strategic Update Appendix Well capitalised to support growth Strong capital base with further capital allocated to drive increased FX payments through trade finance 3.6% 25.5% 1.5% 6.1% 19.2% £116m 2.2% Total regulatory Capital 2023 CET1 Profits and Capex Trade Finan
Slide 15: Key takeaways
Highlights Financial Performance Strategic Update Appendix Key takeaways • Remain profitable and cash generative Financial strength • Strong liquidity with 19.2% CET1 ratio and over £1.6bn in deposits • Large scale operational resilience delivered Investment • Now focused on delivering product and g
Slide 16: Strategic Update
Strategic Update
Slide 17: Good strategic progress
Highlights Financial Performance Strategic Update Appendix Good strategic progress • New leadership in place and executing 390 Network counterparties 80% 546 Active clients of which 53 Of our network utilised • +18% vs new active clients Business model is strong 2023: 72% +7% vs 2023 2023 • Relation
Slide 18: We are part way through our journey
Highlights Financial Performance Strategic Update Appendix We are part way through our journey 2024 strategy focus areas Where we are now Status Key hires made: CFO, COO, Experienced Global Identify and fill key leadership roles and skills Leadership gaps Head of Sales, Head of Payments, Head of Ban
Slide 19: Long term structural opportunities
Highlights Financial Performance Strategic Update Appendix Long term structural opportunities • Increasing presence in markets with fast growing economies – >4% Africa, Latin America, Middle East-North Africa GDP Growth • Driving new and improved Central Banks relationships to gain 30 superior acces
Slide 20: A 12-18 month transformation program
Highlights Financial Performance Strategic Update Appendix A 12 - 18 month transformation program Good early strategic progress after discovery, test and learn phase in 2024 Business transformation Oct-24 Jan-25 Dec-25 Objective • Steady growth business based on sound market fundamentals Proactive s
Slide 21: Our customers come to us because we are a strong partner
Highlights Financial Performance Strategic Update Appendix Our customers come to us because we are a strong partner • Specialist in hard-to-reach markets Revenue per active client • Strong client loyalty – 30+ year relationships • Differentiated offerings <£100k Potential to >£500k p.a • Integrated
Slide 22: New income initiatives in 2025 driving sustainable growth
Highlights Financial Performance Strategic Update Appendix New income initiatives in 2025 driving sustainable growth Offering more to our FX & Payments clients Enhanced payments $ FX Derivatives functionality • Helping our clients money go further • Helping clients to hedge longer term fluctuations
Slide 23: Trade Finance drives client loyalty and strong economics
Highlights Financial Performance Strategic Update Appendix Trade Finance drives client loyalty and strong economics… …and generates better FX pricing Strong use cases: FX, Payments & Banking revenues • Unlocks friction of trading with emerging markets £535m • Quicker and larger trade transactions 20
Slide 24: …and we have a capital light scaling strategy
Highlights Financial Performance Strategic Update Appendix …and we have a capital light scaling strategy A journey to achieve true scale • Scale origination through existing relationships Scalability 1 CAB Own Capital Limited • Market leading execution capability through highly experienced team Asse
Slide 25: We are enhancing our payments capabilities
Highlights Financial Performance Strategic Update Appendix We are enhancing our payments capabilities B2B Payments is evolving, clients want payments to reach more people across multiple channels with speed and transparency Pay-in Pay-out Value-add • +53 corridors on • Real-time • Multi-option VISA
Slide 26: Journey to be the leading B2B Payment Solution Provider in emerging markets
Highlights Financial Performance Strategic Update Appendix We are on a journey to be the leading B2B Payment Solution Provider in emerging markets Annual Today payment Phase 3 volume Phase 2 • Solid technical foundation Phase 1 • Flexibility – new products, new markets £50bn+ £30bn • Gowing coverage
Slide 27: We are reshaping the business to deliver growth
Highlights Financial Performance Strategic Update Appendix We are reshaping the business to deliver growth An enhanced business model driving significant growth 1 Relationship led 2 Technology driven 3 Geographically diverse Underpinned by our four-pillar strategy Network Clients Platform Invest and
Slide 28: Appendix
CAB | PAYMENTS
Slide 29: The CAB Payments investment case
Highlights Financial Performance Strategic Update Appendix The CAB Payments investment case Serving large growth Differentiated service Diverse and growing markets proposition B2B client base Leading emerging markets Strong opportunity for growth Driving social change FX infrastructure and operation
Slide 30: P&L – management basis
Highlights Financial Performance Strategic Update Appendix P&L – management basis £m H1 2024 H2 2024 2024 H1 2023 H2 2023 2023 Wholesale FX 22.9 18.3 41.2 37.8 30.7 68.5 Payments 14.1 13.2 27.3 16.8 17.4 34.2 Payments FX 7.0 5.6 12.6 10.4 9.5 19.9 Other payments 7.1 7.6 14.7 6.4 7.9 14.3 Banking 18.
Slide 31: Other Key KPIs
Highlights Financial Performance Strategic Update Appendix Other Key KPIs £m 2024 2023 % £m 2024 2023 % Capital & investment Income by client type EMFI (£m) 59.4 59.6 - Core Capex (£m) 12.5 7.0 79% IDO (£m) 15.0 28.9 (48%) Capital intensity (% of total income) 14% 5% Major Market Banks (£m) 2.4 5.8
Slide 32: Four pillar strategy to diversify with sustainable growth
Highlights Financial Performance Strategic Update Appendix Four pillar strategy to diversify with sustainable growth 1 Network Strengthen breadth and depth of network • Improved diversification 2 Clients Deepen existing relationships, expand the client base • Sustainable growth Leverage the banking
Slide 33: Corridor performance
Highlights Financial Performance Strategic Update Appendix Corridor performance Volumes improved in H2 however margins declined due to supply / demand factors Volume and take rate by corridor Take Rate Mix Shift Volume (£bn) Take Rate (%) Volume (£bn) Take Rate (%) Currency Type H1’24 H2’24 H1’24 H2
Slide 34: Bank remains well capitalised
Highlights Financial Performance Strategic Update Appendix Bank remains well capitalised Strong capital base however utilisation driven by increased trade finance balances vs FY23 (all figures in £m) 31 December 2024 Available growth capital £9.7m, 8% • Capital base increased to £116m (2023: £107m)
Slide 35: Capital
Highlights Financial Performance Strategic Update Appendix Capital The group’s overall and available capital has significantly increased over the past 3 years whilst seeing increased capital allocation to operational risk and credit exposures Operational risk Standardised calculation for risk as per
Slide 36: Alternative performance measures (1/2)
Highlights Financial Performance Strategic Update Appendix Alternative performance measures (1/2) Alternative Performance How the metric is used Calculation Definition Measure Gross Income or As noted in previous years, as a growing organisation, the Group’s focus Total income, net of interest expen
Slide 37: Alternative performance measures (2/2)
Highlights Financial Performance Strategic Update Appendix Alternative performance measures (2/2) Alternative Performance How the metric is used Calculation Definition Measure Adjusted The Group consider the Adjusted EPS to better reflect the base line of shareholder value on a go Adjusted Profit Af
Slide 38: Blue chip clients
Highlights Financial Performance Strategic Update Appendix Blue chip clients CAB Payment segments include many of the most important players in emerging market payments • Includes UN organisations, development banks and western governments along with charities IDOs • Tend to be FX clients send aid f
Slide 39: Contact details
A black background with a black square Description automatically generated with medium confidence www.cabpayments.com CAB Payments Holdings plc. Authorised as a Financial Holding Company by the info@cabpayments.com Prudential Regulation Authority under Firm Reference Number 959213. Company registere