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

W.a.g. Payment Solutions — H1 2023 Earnings Presentation

29 slides from W.a.g. Payment Solutions's earnings presentation, Sep 7, 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: 2023 H1 highlights
2023 H1 highlights Strong financial performance ➢ Robust organic double-digit growth; demonstrating resilience of our business model Net revenue €119.1m ➢ Macroeconomic headwinds impacted the CRT industry across Europe: +36.9% YoY organic growth +14.4% YoY • High inflation and interest rates • Slowd
Slide 6: Progress towards building our integrated end-to-end digital platform
Progress towards building our integrated end-to- end digital platform To make commercial road transport clean, fair and efficient Attract Engage Monetise Retain Be in Drive Grow Expand platform every truck customer centricity core services capability • 3rd OEM deal signed, • Improving customer self-
Slide 8: 2023 H1 financial highlights
2023 H1 financial highlights H1 2023 H1 2023 H1 2022 YoY% YoY% € million organic organic • Strong net revenue growth; robust underlying performance and contribution Net revenue 119.1 98.3 87.0 +36.9% +14.4% from acquisitions • Organic revenue growth of 14.4%, driven Payment solutions 72.4 71.4 63.5
Slide 9: Adjusted EBITDA growth supported by M&A; investing in business transformation
Adjusted EBITDA growth supported by M&A; investing in business transformation (€m) Organic growth Inorganic growth 40.7% 43.3% 21.6% 21.6% 46.9% 47.1% 42.2% Margin Margin Margin Margin Margin Margin Margin +43.5% +21.6% Copyright ©2023 W.A.G payment solutions plc Notes: (1) Other operating income re
Slide 10: Technology transformation programme on track to complete end of FY23
Technology transformation programme on track to complete end of FY23 Capital expenditure (€m) 43.2 Change in capex mix following acquisitions • H1 23 €5.6m ordinary capex spend on Inelo and Webeye 33.8 - ~ 40% is spent on onboard units (OBUs) 25.5 • Capex mix change; ~26% of ordinary capex spend on
Slide 11: Record investment year
Record investment year (€m) Operating Financing Investing activities activities activities Copyright ©2023 W.A.G payment solutions plc Notes: (1) Non-cash adjustments include primarily depreciation and amortisation, interest expenses and impairment losses of financial assets. (2) Cash adjustments in
Slide 12: Stable net working capital despite growth of business
Stable net working capital despite growth of business (€m) 500 10% 400 8% 300 6% 200 4% • As a percentage of gross revenue1, net working 100 2% capital is small • Remained stable despite growth of business 0 0% • Trade receivables increased in H1 23 due to seasonality, with December being our quiete
Slide 13: Increase in net debt driven by acquisitions and business transformation investment
Increase in net debt driven by acquisitions and business transformation investment (€m) Net Net debt movements in the first half 0.1x 2.9x Leverage(1) of the year Liquidity €381m €235m • Acquisitions relate to payments made Headroom(2) to Inelo on completion and payments related to Webeye • As expec
Slide 14: Updated medium-term financial guidance
Updated medium-term financial guidance Adjusted Net revenue Capex Leverage target EBITDA % • Near term, market • FY23 margin levels • €50m transformational • Committed to return to headwinds expect expected to be in- programme to complete within leverage target growth rates to be line with FY 2022 a
Slide 16: Good progress made on our strategic priorities; integration and platform delivery
Good progress made on our strategic priorities; 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-c
Slide 17: Post merger integration roadmap
Post merger integration roadmap Integration phases Integrate key corporate functions Integrate sales teams Internal systems and process integration Product bundles Phase to start in: FY23 FY24 Hardware unification FY25 Migration onto new platform Copyright ©2023 W.A.G. Payment Solutions 17
Slide 18: Investing in our integrated end-to-end digital platform
Investing in our integrated end-to-end digital platform Enhancing our sales channels Customers Business Truck driver Fleet Merchants • Enhancing our customer self-care portal to owner dispatcher & partners support our digital sales channel • Customer journey mapping for new platform Sales channels E
Slide 19: Creation of an industry-unique data platform
Creation of an industry-unique data platform Truck Truck, trailer, routing, information position, utilisation etc Social, behaviour, Driver compliance, etc • Industry first data platform information • Data covers every touch point for a customer journey Toll, tax refund, • Supporting the digitisatio
Slide 20: Unlocking further value for customers
Unlocking 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 ©2023 W.A.G paymen
Slide 21: H1 summary and priorities
H1 23 summary Priorities for H2 23 H1 summary and priorities Delivered robust double-digit Integrate acquired businesses, extract synergies through cross-sell organic growth, despite the opportunities macroeconomic headwinds Finalise our transformational capex programme Made good progress on buildin
Slide 24: Disciplined debt management
Disciplined debt management Committed debt amortisation profile Interest rate swaps Facility A of €150m: • €120m effective payable interest rate of 0.1%, expires 2024 €339m • €30m effective payable interest rate of €309m 2.7%, expires 2027 Facility B of €180m: €249m • Effective payable interest rate
Slide 25: 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 26: 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 27: 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 28: Net revenue geographical split
Net revenue geographical split Southern Cluster Central Cluster 3% Czech Republic 16% Poland 25% Other Central Cluster 15% 19% Portugal 21% 21% 15% Other Western Cluster 16% 14% Romania 6% 14% Other Southern Cluster 4% 12% 5% 5% Not specified Western Cluster Copyright ©2023 W.A.G payment solutions p

W.A.G payment solutions — H1 2023 Earnings Presentation on 6ix

W.a.g. Payment Solutions — H1 2023 Earnings Presentation

Slide 1: Interim results 2023

Slide 2: Disclaimer

Slide 3: Agenda

Slide 4: Introduction and highlights

Slide 5: 2023 H1 highlights

Slide 6: Progress towards building our integrated end-to-end digital platform

Slide 7: Financial results

Slide 8: 2023 H1 financial highlights

Slide 9: Adjusted EBITDA growth supported by M&A; investing in business transformation

Slide 10: Technology transformation programme on track to complete end of FY23

Slide 11: Record investment year

Slide 12: Stable net working capital despite growth of business

Slide 13: Increase in net debt driven by acquisitions and business transformation investment

Slide 14: Updated medium-term financial guidance

Slide 15: Strategic update

Slide 16: Good progress made on our strategic priorities; integration and platform delivery

Slide 17: Post merger integration roadmap

Slide 18: Investing in our integrated end-to-end digital platform

Slide 19: Creation of an industry-unique data platform

Slide 20: Unlocking further value for customers

Slide 21: H1 summary and priorities

Slide 22: Q&A

Slide 23: Appendix

Slide 24: Disciplined debt management

Slide 25: Revenue model

Slide 26: Proven resilience through the cycle

Slide 27: Our platform will help make the CRT clean, fair and efficient

Slide 28: Net revenue geographical split

Slide 29: Our unique suite of services and our customer's journey