Slide 1: Results for the year ended 31 March 2023
Results for the year ended 31 March 2023 Highly confidential
Slide 2: Agenda
Agenda Open Banking 2 1 Overview 2 Strategy update 3 Financial review 4 Divisional review 5 Outlook 6 Q&A
Slide 3: Strong financial performance with further strategic progress
3 Open performance Strong financial Banking with further strategic progress SHOPPING E-COMMERCE PAYMENTS AND BANKING FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 £58.7m £62.0m £4.9m +46.5% £7.3m £51.5m +9.1% £56.2m net revenue +5.6% net revenue net revenue net revenue net revenue net revenue Net +11.9% £
Slide 4: Strategy update
Strategy update Highly confidential
Slide 5: What are we focused on across the Group?
5 What Open are weBanking focused on across the Group? 1 Creating value and opportunity from the M&A executed over the past 3 years 2 Accelerating the shift from cash to digital payments 3 Driving and investing in key growth areas across the Group over the next 3 years 4 Reviewing our capital alloca
Slide 6: Purposeful execution of a clear strategy focused on growth
6 Open Purposeful Banking execution of a clear strategy focused on growth The Group has materially enhanced its platform, through successful acquisitions and strategic 1 investments. Early M&A and investments (Collect+ and i-movo) are already making a strong contribution to the Group’s financial per
Slide 7: Appreciate Group unlocks new markets and growth for PayPoint
7 Open Appreciate GroupBanking unlocks new markets and growth for PayPoint ü Customer engagement platform, Love2shop Division driving consumer rewards, gifting and retention across multiple channels ü Employee rewards and engagement Core customer Corporate and Consumer Consumer platform, helping bus
Slide 8: How the Group makes money in the Love2shop division
8 Open How the GroupBanking makes money in the Love2shop divison In Love2shop, there are four key revenue streams that drive growth. This is equivalent to similar 1 revenue streams across the rest of the Group Love2shop Segment PayPoint Segment Division Love2shop Shopping E-Commerce Payments & Banki
Slide 9: Love2shop business model summary
9 Open Love2shop Banking business model summary 1 A strong business model, driving future growth in billings, EBITDA and profit Underlying PBT Billings Cash Revenue EBITDA Profit Recognition (excluding adjusting items) Retailer service Retailer service & Immediate Cash 1 management fees & management
Slide 10: Accelerating the shift from cash to digital payments
10 Openthe Accelerating Banking shift from cash to digital payments Strong net revenue growth in digital payments, Highly differentiated payments platform (MultiPay), uniquely 2 with progress driven by MultiPay and i-movo, supporting integrated payments across cash, direct debit, cards, delivering l
Slide 11: Unlocking new customers, markets and growth
11 Open Unlocking Banking new customers, markets and growth 3 The Group’s materially enhanced platform leverages new capabilities to unlock new customers, new markets and new growth opportunities Enabling payments and commerce for the public and private sector, serving millions of consumers across t
Slide 12: Ambition to exceed £100m EBITDA in three years
12 AmbitionOpen Banking to exceed £100m EBITDA in three years (FY25/26) 3 Do we now have the building blocks in place to exceed £100m EBITDA in three years (FY25/26)? 1. Leveraging our materially enhanced platform, with emphasis and investment in growth areas of integrated payments, cards, retail pr
Slide 13: Delivering enhanced shareholder returns
13 Open Delivering Banking enhanced shareholder returns Ultimate measure of our success in the execution of our strategy is the delivery of 4 enhanced returns for our shareholders Converting a strong and growing cash profit into: Efficiently structured balance sheet Necessary investment to support g
Slide 14: Financial review
Financial review Highly confidential
Slide 15: Financial highlights
15 Financial highlights 15 Year ended 31 March FY23 FY22 Continuing operations £m £m Change Revenue 167.7 145.1 15.6% Net revenue1 128.9 115.1 11.9% See slide 17 Underlying EBITDA2 61.3 58.2 5.2% Underlying profit before tax (profit before tax excluding adjusting items) – PayPoint segment3 50.3 48.0
Slide 16: Increase in underlying PBT for PayPoint segment
16 5.7% increase 2.1% increase in PBTin underlying PBT for PayPoint segment 16 £60m £4.7m £55m (£8.1m) £2.4m £0.5m £50m £3.3m (£2.6m) (£2.9m) £2.4m £45m (£5.6m) £53.7m +4.8% £50.3m £50.8m £48.5m £48.0m £40m £45.6m £42.6m £35m Reported PBT Exceptional PBT from Adjusting Underlying Net Revenue Net Rev
Slide 17: Net revenue growth in all divisions
17 Net revenue growth Continued net ininall revenue growth divisions all divisions 17 Year ended 31 March FY23 FY22 Change Change £m £m £m % Shopping 62.0 58.7 3.3 5.6% - Service fees 17.9 16.6 - Card payments 31.8 30.4 - ATMs & Counter Cash 9.4 9.8 - Other 2.9 1.9 E-commerce 7.3 4.9 2.4 46.5% Payme
Slide 18: Cost base to support investment in key areas
18 Cost base to support Cost increases higher from investment in key areasrevenue to drive revenues 18 £m 80 78 76 £2.9m £1.0m (£0.5m) £0.3m 74 £0.7m £2.1m 72 £1.5m 70 £1.4m £78.1m 68 £1.6m £75.2m 66 +12.1% £71.6m 64 £68.7m £67.1m £67.1m 62 60 Tota l cost Invest ment in Asset leasing EBSS fulfilment
Slide 19: Strong cash generation
19 Strong Strong cash cash generationgeneration of £28.3 million of £62.3m 19 FY23 FY22 (from continuing (from continuing operations excluding operations excluding Year ended 31 March exceptional items) exceptional items) FY23 Total FY22 Total £m £m £m £m Profit before tax 42.6 48.5 42.6 48.5 Except
Slide 20: Balance sheet strengthened, net debt reduced
20 Balance sheet Strengthened – reflecting balance Appreciate sheet, net debt acquisition reduced by £4.5m 20 Appreciate Mar Mar Change Mar 2023 2022 2023 £m £m £m £m Goodwill 117.3 57.7 59.6 59.6 Other intangible assets 75.3 36.0 38.5 40.2 Net investment in finance lease receivables 1.7 4.4 (2.7) -
Slide 21: Financing & Dividend
21 Financing & Dividend Financing & Dividend 21 Financing & future outflows Dividend declared • Financing facilities have been renegotiated with existing banks (Barclays, BOI, Lloyds) to • 18.6p, an increase of 3.3% vs the final dividend declared on 26 May facilitate the Appreciate Group acquisition
Slide 22: Divisional review
Divisional review P| PayPoint Group
Slide 23: Shopping division: strong performance
23 Shopping division: strong performance Shopping Division 23 Shopping Division FY22 FY23 Key drivers Provision of digital solutions, technology £58.7m +5.6% £62.0m Growth in PayPoint One and net revenue net revenue service fee and payment services for SMEs and retailers Strong card payment to deliv
Slide 24: Enhancing our retailer & SME proposition
24 Enhancing ourourretailer Enhancing & SME retailer & SME proposition proposition 24 FY23 Progress Shopping Division • SME and retailer proposition enhanced across Handepay and PayPoint card services: new Android terminal launched in Handepay, supported by one-month contracts and next day settlemen
Slide 25: E-commerce division: continued momentum
25 E-commerce division: continued momentum E-Commerce Division 25 Key drivers E-Commerce Division FY22 FY23 Development of e-commerce Collect+ is our £4.9m £7.3m delivery platform yielding +46.5% net revenue strong year on year transaction technology-based net revenue growth platform to deliver best
Slide 26: Strong parcels growth and carrier service expansion
26 Strong Strong parcels growth parcels growth and carrier service expansion 26 E-Commerce Division FY23 Progress • New partnerships launched in Q4 FY23 with Yodel for store-to-store parcels and InPost for locker to store parcels • Partnership launched with Wish.com in H1 FY23, one of the largest ec
Slide 27: Payments & Banking division: digital growth
27 Payments & Banking Payments & Banking Division division: digital growth 27 Payments & Banking Division Key drivers FY22 FY23 We deliver a channel Built payment channel agnostic platform, £51.5m £56.2m supporting diversification to digital agnostic payment net revenue net revenue platform that giv
Slide 28: Strong digital performance
28 Strong digital performance 28 Payments & Banking Division FY23 Progress • Continued strong progress in digital transactions, and further expansion of our client relationships, including launching direct debit with POBL Housing, our new PayPoint OpenPay service with Ovo and our Confirmation of Pay
Slide 29: Love2shop division
29 Love2shop division 29 Love2shop Division FY23 Progress* • Park Christmas Savings completed fulfilment of its Christmas 2022 order book - this was 2% lower than prior year, a significant improvement on recent trends and ahead of expectations, underpinned by record levels of retention and conversio
Slide 30: Building a delivery focused and inclusive organisation and culture
30 Building a delivery Building a delivery focused focused organisation and inclusive organisation and culture 30 FY23 Progress PayPoint Group • Good progress against our ESG programme, including all employees paid a minimum of the Real Living Wage delivered in July 2022, and Diversity, Equity and I
Slide 31: Outlook
Outlook P| PayPoint Group
Slide 32: Outlook
32 Outlook Outlook 32 • Our enhanced platform and expanded capabilities across the Group, combined with our business-wide partnership philosophy and intensity of execution, give the Board confidence in delivering further progress in the current financial year and meeting expectations. • The opportun
Slide 33: Investment case
33 Investment case Year on year view across divisions and sub-divisions 33 PayPoint Group Enabling payments and commerce for the private and public sector 1 Materially enhanced platform and capabilities, underpinned by partnership philosophy 2 Strong SME and retailer partner proposition 3 Expanded i
Slide 34: Q&A
34 Q&A Q&A 34 Q&A Results for the year ended 31 March 2023
Slide 35: Appendix
Appendix Pp | PayPoint Group
Slide 36: Business division mapping
36 Business Business divisiondivision mapping mapping 36 Division Sub-division Lower level PayPoint One/EPoS Retail Services Counter Cash/ATMs Handepay/Merchant Rentals card payments Shopping and leasing Card payments PayPoint card payments RSM 2000 card payments E-Commerce E-Commerce Collect+ parce
Slide 37: Year on year view across divisions and sub-divisions
37 YOY Year onview year view across divisions across divisions and sub-divisions and sub-divisions 37 Net revenue Division Sub-division FY23 FY22 Retail Services £30.2m £28.3m Shopping Card payments £31.8m £30.4m E-Commerce E-Commerce £7.3m £4.9m Digital £15.7m £7.8m Payments & Banking Cash through
Slide 38: EBITDA
38 EBITDA Year on year view across divisions and sub-divisions 38 EBITDA/Underlying EBITDA (£m) Year ended 31 March 2023 Year ended 31 March 2022 Profit before tax 42.6 48.5 Add back: Net interest expense 2.6 2.0 Depreciation 4.9 4.8 Amortisation – including 5.6 5.8 amortisation on acquired intangib