Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q1 2022 Earnings Presentation
27 slides from Euronet Worldwide's earnings presentation, Apr 27, 2022
Slide 1: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results PRESENTERS: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP AND CFO SCOTT CLAASSEN, GENERAL COUNSEL 26 April 2022 | Slide 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this news release that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking
Slide 3: Business Update
Business Update MICHAEL J. BROWN, CHAIRMAN & CEO 26 April 2022 | Slide 3
Slide 4: Defined Terms
Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of
Slide 5: Current State of Business
Current State of Business ‣ Euronet delivered first quarter results with strong consolidated double-digit growth rates in revenue, operating income and adjusted EBITDA ‣ Strong balance sheet continues to support ATM expansion and digital transformation strategies in epay and Money Transfer ‣ EFT res
Slide 6: War in Ukraine
War in Ukraine ‣ We continue to express our solidarity with our Ukrainian employees and all Ukrainian citizens, and we have undertaken many measures to support our Ukrainian colleagues and to ensure their safety ‣ In doing so, we have deployed multi-level support for Ukrainian citizens and refugees:
Slide 7: EFT European Travel Indicators – as a Percentage of 2019
EFT European Travel Indicators – as a Percentage of 2019 26 April 2022 | Slide 7
Slide 8: EFT Quarterly Highlights
EFT Quarterly Highlights ‣ Expanded Distribution: ‣ Launched: ‣ JCB card acceptance on our ATM network in Ireland ‣ Signed: ‣ ATM network participation agreement with Mediolanum Bank, a digital bank in Italy ‣ ATM driving, POS outsourcing and card issuing agreement with Lovcen Bank in Montenegro ‣ A
Slide 9: Piraeus Bank Merchant Acquiring (PBMA) Purchase
Piraeus Bank Merchant Acquiring (PBMA) Purchase ‣ Transaction Overview: ‣ €300m ($330m) purchase price ‣ 20% share of Greek in-store acquiring volume, 40% share of Greek digital acquiring volume ‣ 205k POS terminals, 170k merchants ‣ Piraeus will provide distribution and shared services as part of a
Slide 10: epay Quarterly Highlights
epay Quarterly Highlights ‣ Launched: ‣ Google Play at Cdiscount, 2nd largest online retailer in France ‣ Apple content distributed on PayTM wallet in India ‣ Mobile top-up on Tata Group-led digital platform “Tata Neu” in India ‣ In Spain/Portugal, launched various branded payment content in large r
Slide 11: Money Transfer Quarterly Highlights
Money Transfer Quarterly Highlights ‣ Network Growth: ‣ Our network reaches: ‣ 495,000 total retail network locations, a 4% increase vs. Q4 2021 ‣ 164 countries ‣ 3.6 billion bank accounts and 443 million wallet accounts ‣ Correspondent Expansion: ‣ Launched 18 new correspondents in 17 countries ‣ L
Slide 12: Dandelion Update
Dandelion Update ‣ Direct connection to Single Euro Payments Area (SEPA) adding corporate payments to 43 new countries and territories ‣ Corporate transactions grew from 25 to 81 countries and territories with expansion to: ‣ SEPA (mentioned above): 43 ‣ WAEMU zone: Benin, Burkina Faso, Cote d’Ivoir
Slide 13: Euronet Technology Success Update
Euronet Technology Success Update ‣ Real-time payments integration agreement with East West bank in Philippines ‣ REN switch, self-service and POS merchant management for Banking Network Suriname (BNETS) ‣ Integrated payment gateway offering for Spachee Pty, a Botswana-based fintech that works with
Slide 14: Financial Highlights First Quarter 2022
Financial Highlights First Quarter 2022 RICK L. WELLER, EVP & CFO 26 April 2022 | Slide 14
Slide 15: Financial Highlights First Quarter 2022: Balance Sheet Overview
Financial Highlights First Quarter 2022 Balance Sheet Overview USD 12/31/2021 3/31/2022 (in millions) Unrestricted Cash $ 1,260.5 $ 986.5 ATM Cash 543.4 644.4 Settlement Assets 1,102.4 1,037.4 Total Assets 4,744.3 4,898.3 Total Debt 1,427.9 1,768.2 Total Debt to Trailing Twelve Month Adjusted EBITDA
Slide 16: Financial Highlights First Quarter 2022
Financial Highlights First Quarter 2022 ‣ Revenue - $718.5 million ‣ 10% increase from $652.7 million for Q1 2021 ‣ 15% increase on a constant currency basis ‣ Operating Income - $36.7 million ‣ 253% increase from $10.4 million for Q1 2021 ‣ 288% increase on a constant currency basis ‣ Adjusted EBIT
Slide 17: Three Year Transaction Trend
Financial Highlights First Quarter 2022 Three Year Transaction Trend 26 April 2022 | Slide 17
Slide 18: Same Quarter Prior Year Comparison
Financial Highlights First Quarter 2022 Same Quarter Prior Year Comparison USD (in millions) Revenue Operating (Loss) Income Adjusted EBITDA Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 EFT Processing $ 87.1 $ 145.6 $ (40.1) $ (6.3) $ (18.1) $ 16.0 % Change 67% 84% 188% epay 242.3 235.8 29.2 26.2
Slide 19: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights First Quarter 2022 Same Quarter Prior Year Comparison – Constant Currency USD (in millions) Revenue Operating (Loss) Income Adjusted EBITDA Q1 2021 Q1 2022* Q1 2021 Q1 2022* Q1 2021 Q1 2022* EFT Processing $ 87.1 $ 154.1 $ (40.1) $ (7.3) $ (18.1) $ 16.4 % Change 77% 82% 191% epa
Slide 20: First Quarter Adoption of New Accounting Standard
First Quarter Adoption of New Accounting Standard ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” ‣ The new accounting standard requires potentially convertible shares for convertible bonds to be treated as fully diluted, regardless of the share price, an
Slide 21: Closing Remarks
Closing Remarks MICHAEL J. BROWN, CHAIRMAN & CEO 26 April 2022 | Slide 21
Slide 22: Supplemental Data
Supplemental Data 26 April 2022 | Slide 22
Slide 23: Reconciliation of Net Income to Operating Income and Adjusted EBITDA
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Three months ended March 31, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 8.2 Add: Income tax expense 17.2 Add: Tota
Slide 24: Reconciliation of Net Loss to Operating Income and Adjusted EBITDA
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Loss to Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Three months ended March 31, 2021 EFT Money Corporate Processing epay Transfer Services Consolidated Net loss $ (8.7) Add: Income tax expense 6.1 Add: Total o
Slide 25: Reconciliation to Constant Currency Amounts by Segment
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Revenue, Operating (Loss) Income and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) (unaudited - in millions) Three months ended ended March 31, 2022 EFT Money Corporate Processing epay Transfer Services C
Slide 26: Reconciliation of Adjusted Earnings per Share
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Three Months Ended March 31, 2022 2021 Net income (loss) attributable to Euronet Worldwide, Inc. $ 8.2 $ (8.7) Foreign currency exchange loss 5.5 4.0 Int
Slide 27: Thank You
Thank You EURONET WORLDWIDE, INC. 26 April 2022 | Slide 27