Tyro Payments Ltd. · ASX:TYR
Tyro Payments — Investor Presentation (February 2022)
35 slides from Tyro Payments's investor presentation, Feb 21, 2022
Slide 1: H1 FY22 Investor Presentation
H1 FY22 INVESTOR PRESENTATION 21 FEBRUARY 2022
Slide 2: Key Call Outs - H1 FY22
Key Call Outs - H1 FY22 BENDIGO BANK ALLIANCE $15.8B GROSS PROFIT Strong performance RECORD GROWTH tracking to model TRANSACTIONS POSITIVE EBITDA PROCESSED BY TYRO SUPPORTING OUR GROUP MERCHANTS RESULT MERCHANTS DOING THE RIGHT THING Reflecting: 31% 3 Delayed passing on 3 Continued investment (H1 FY
Slide 3: Results Overview - H1 FY22
Results Overview - H1 FY22 Transaction Merchant Financial Performance Numbers Value 68% in merchants to 61,554 (H1 FY21: 36,720) $15.8 B UP 61,554 UP 31% 68% 31% in transaction value to $15.8 billion (H1 FY21: $12.1 billion) $12.1 B 1,279% in loan originations to $36.2 million (H1 FY21: $2.6 million
Slide 4: Results Overview - H1 FY22 (cont.)
Results Overview - H1 FY22 (cont.) Operational Call-Outs How Tyro benefits businesses 3 Appointed as Telstra’s exclusive partner offering merchant acquiring solutions to Telstra’s business customers 3 Bendigo merchants contributed $2.5 billion to Group transaction value 3 Medipass integrated with Ty
Slide 5: Delivering on Growth
DELIVERING ON GROWTH Tyro sh Community nc t Ca n Ad rcha e va ot- Me In- -N t ap rd sen p re Ot rodu Ca Integra /P P ple he ted r N ts m Si ew c Secure Fe Types a PAYMENTS tur Fa c i l i t a in g Pa y m ti o n se ple c u rr st lti Fa en Mu Re its Re li a b l e t pos De C a rd - nd P re s e n t Bra T
Slide 6: Leveraging Our Scalable Platform to Accelerate Growth
Leveraging Our Scalable Platform to Accelerate Growth Tyro is well positioned to continue to accelerate growth over the medium term. 1 2 3 4 Tailored payment solutions for Focussed on operating leverage Strategic partnerships with large Investment in Health verticals drive strong merchant base Gross
Slide 7: Leveraging Our Scalable Platform to Accelerate Growth (cont.)
Leveraging Our Scalable Platform to Accelerate Growth (cont.) 5 6 7 8 Strategic investments to Expansion in eCommerce and other Cross-sell opportunities Expansion into new verticals enhance our platform’s payment types represent upside potential capability Launch of eCommerce in March 2019 Merchant
Slide 8: Financial Performance Analysis
l u e n Va FINANCIAL PERFORMANCE io s a c t ANALYSIS n Tra fi t o s Pr ros G DA IT se EB B a s t C o in g rat e Op i t y uid L i q 8
Slide 9: Financial Performance Analysis
PAYMENTS BUSINESS Financial Performance Analysis H1 FY22 H1 FY21 GROWTH PERFORMANCE $’000 $’000 % Revenue 145,984 107,682 p 35.6% • Transaction Value h 31% Less: Interchange, scheme, • Payments Gross Profit h 25% statutory + h 20% normalised1 integration + support fees (77,926) (53,423) p 45.9% • Gr
Slide 10: Transaction Value Analysis
Transaction Value Analysis $3.6b 50% $0.50b $3.4b • Lockdowns significantly impacted transaction value $3.2b 45% NSW + ACT lockdowns 26 Jun 2021 to 18 Oct 2021 growth $3.0b $0.42b $3.03b 40% • 31% increase in transaction value to $15.8 billion: $2.8b › core Tyro Payments Business up 9.7% to $13.3 bi
Slide 11: Gross Profit Analysis
Gross Profit Analysis Group consists of Tyro core Payments + Banking Tyro core Payments Business Margins as a % of Transaction Value (excludes Bendigo + Medipass) Business, Bendigo + Medipass • Payments Business statutory gross profit (before Bendigo gross profit share) h 25% to $68.1 million (H1 1.
Slide 12: Gross Profit Analysis (cont.)
Gross Profit Analysis (cont.) Bendigo Payments Business • MSF of 83.5bps generated - excludes terminal rental • Gross profit margin of 39.4bps including terminal rental fees and after Bendigo gross profit share • MSF, MAF + gross profit margins in line with expectations as announced to the market in
Slide 13: Operating Cost Base Analysis
Operating Cost Base Analysis H1 FY22 H1 FY21 Growth Normalised operating expenses1 (excl. share-based payments) - H1 FY21 vs. H1 FY22 $’000 $’000 % Normalised operating expenses1: $1.7m $65.3m p $3.9m Employee benefits expense (excl. share-based payments) (45,113) (36,713) 22.9% Administrative expen
Slide 14: EBITDA Analysis
EBITDA1 Analysis • Normalised Tyro core + Bendigo EBITDA EBITDA1 H1 FY22 vs H1 FY21 performance up H1 FY22 vs. H1 FY21 (excluding Medipass + JobKeeper) $4.6m • Impacted by: $4.0m › Medipass which generated an expected EBITDA1 loss of $1.8 million (pre-integration + scale) › 23% increase in employee
Slide 15: Tyro Payments Business Performance
TYRO PAYMENTS BUSINESS PERFORMANCE 15
Slide 16: Tyro Payments Business
Tyro Payments Business Transaction Value ($’billion) Payments Gross Profit1 ($’million) H1 FY22 H1 FY21 GROWTH $’000 $’000 % H1 FY17-H1 FY22 CAGR +25% Bendigo H1 FY17-H1 FY21 CAGR +20% $2.5b Revenue 145,984 107,682 p 35.6% Tyro $65.0m $13.3b Less: Interchange, integration + $12.1b (77,926) (53,423)
Slide 17: Tyro Payments Business (cont.)
Tyro Payments Business (cont.) Merchant Count + Transaction Value by Vertical (Tyro only) Geographical Performance - Tyro only Merchant 24% 36% 25% 15% Count (9,975) (15,246) (10,564) (6,533) • Strong transaction value growth rate outside of NSW + ACT: › 23% average growth rate in states excluding N
Slide 18: Tyro Payments Business - Key Initiatives to Drive Growth
Tyro Payments Business - Key Initiatives to Drive Growth Tyro Go card reader New distribution channels - Telstra New terminal Focus on eCommerce Tyro Connect Investment in Health Business 18
Slide 19: Tyro Payments Business - Tyro Connect
Tyro Payments Business - Tyro Connect • Tyro Connect Integration - a hub for apps + POS/PMS systems Payments Data (in-store + online) Providing a merchant with: • A real time feed of all their card transactions Customer ordering Booking • A daily consolidated data share of all their transactions acr
Slide 20: Tyro Banking Business Performance
TYRO BANKING BUSINESS PERFORMANCE 20
Slide 21: Tyro Banking Business
Tyro Banking Business Loan Originations ($’million) H1 FY22 H1 FY21 GROWTH $’000 $’000 % Average Growth Rate Monthly Analysis Loan Originations 36,213 2,626 p 1,278.8% H1 FY17 - H1 FY22 CAGR +63% 1 July 2021 to 31 December 2021 Revenue 2,561 2,042 p 25.4% $37.4m $36.2m Interest income on loans 1,833
Slide 22: Tyro Banking Business - Key Initiatives to Drive Growth
Tyro Banking Business - Key Initiatives to Drive Growth Open Banking Paypa Plane - scheduled + recurring payments Tyro merchant Open Third Merchant banking data APIs benefits Parties Tiered Lending Automated recurring linked account transfer (aka Smart Sweeping) 3 Creation of new lending hierarchy -
Slide 23: Overview of H1 FY22 Financial Position + Cash Flow
OVERVIEW OF H1 FY22 FINANCIAL POSITION + CASH FLOW 23
Slide 24: Financial Position
Financial Position Strong Balance Sheet Underwrites Continued Growth 31 DEC 2021 30 JUNE 2021 $’000 $’000 Cash + Financial Investments ASSETS • Total cash and financial investments of $157.4 million (30 June 2021: $172.8 Cash1 86,729 103,712 million). Loans to merchants 21,112 15,387 Other current a
Slide 25: Cash Flow Analysis
Cash Flow Analysis H1 FY22 H1 FY21 $’000 $’000 Net payments income 70,035 53,968 Operating Cash Flows: Net interest income 2,042 1,054 • Operating cash flows (excluding banking) of negative $26.4 million (H1 FY21: Other income 851 6,666 negative $4.8 million). The increase includes: Employee expense
Slide 26: Liquidity + Capital Adequacy Analysis
Liquidity + Capital Adequacy Analysis 162% Liquidity • Sufficient liquidity in place to continue to fund growth $179m 143% $173m strategy $166m 145% $165m Total Capital Ratio • Well capitalised at a total capital ratio of 45%. Movement $123m from 73% at 30 June 2021 due to: 89% $115m $115m › 55 Mark
Slide 27: Trading Update
TRADING UPDATE Invoices mars a neeerensen & Medipass Create a new invoice @ HE RGEMEDIPASSIO = Pete's Health Select how the service will be paid for = ‘quores leis pedal | PATIENTS DOCUMENTS a PRACTICES STARE senvices REPORTS BUSINESS SETTINGS
Slide 28: Trading Update
Trading Update1 PAYMENTS BUSINESS: • Transaction value 1 January 2022 to 18 February 2022 - $4.5 billion, up 40% on pcp › Victoria h26% Weekly Transaction Value Growth - H2 FY22 › NSW h13% 45% › Queensland h18% 45% 43% › WA h28% 41% 41% 40% › SA h13% 36% 35% › Other (includes Bendigo Bank Alliance)
Slide 29: Looking Ahead
Looking Ahead • Full year transaction value contribution from Bendigo • Return of workers to Nations CBDs - positive bias for card-present transactions • Return of international travel • Recover scheme/interchange fee increases • Significant TAM exists - focus on increasing share of TAM beyond curre
Slide 30: Supplementary Materials
SUPPLEMENTARY MATERIALS 30
Slide 31: Attachment 1 - Reconciliation of Statutory to Normalised Results
Attachment 1 - Reconciliation of Statutory to Normalised Results NORMALISATION ADJUSTMENTS Summary of adjustments H1 FY22 BENDIGO BANK BENDIGO BANK H1 FY22 1. Bendigo Alliance gross profit share - reflects economic reality of STATUTORY PARTNER GROSS TRANSITIONAL INVESTMENT IN NORMALISED transaction
Slide 32: Attachment 2 - Capturing Card-Present Terminal Market Share
Attachment 2 - Capturing Card-Present Terminal Market Share Card Present Segment Share by EFTPOS Terminal Count by ADI (#’000), June 2020 vs June 2021 ~76% of Total (717,000 of 941,000 terminals) 0% 244 244 (1%) Includes Bendigo reported terminals • Includes Adyen, (31,676) First Data (incl. 188 186
Slide 33: Attachment 3 - Capturing Market Share in Growing Total Addressable Market
Attachment 3 - Capturing Market Share in Growing Total Addressable Market Annual transaction value of card payments acquired in Australia1 ($ billion) - Tyro’s estimated market share of total card payments acquired in Australia - as at 31 December 2021 as at 31 December 2021 4.4% 3.2% ~4.4% 3.0% $65
Slide 34: Disclaimer
Disclaimer The material in this presentation is general background information about Tyro Payments Limited (Tyro) and is current at the date of the presentation, 21 February 2022. The information in the presentation is given for informational purposes only, is in summary form and does not purport to
Slide 35: 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
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