Hightech Payment Systems Sa · CSEMA:HPS
Hightech Payment Systems Sa — HPS — FY2021 Earnings Presentation
42 slides from Hightech Payment Systems Sa's earnings presentation, March 2022
Slide 1: Full Year Results 2021
FULL YEAR RESULTS 2021 FINANCIAL COMMUNICATION Casablanca – March 2022 hps-worldwide.com
Slide 2: Summary
SUMMARY 01 MARKET TRENDS 02 2021 HIGHLIGHTS 03 ACHIEVEMENTS & FINANCIAL REVIEW 04 OUTLOOK 05 Q&A 06 APPENDICES 1
Slide 3: Market Trends
MARKET TRENDS
Slide 4: World Economy: Economic Growth Confirmed in 2021
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 World Economy: Economic Growth Confirmed in 2021 Developed countries Emerging World countries 6,5% 5,0% 5,9% -2,0% -3,1% -4,5% Source: International Monetary Fund, January 2022 3
Slide 5: Payment Industry Trends
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Payment Industry Trends Non-cash payments (in billion USD) Non-cash payment outlook by region CAGR (2020-2025) 2 000 CAGR 2021-2025 19% 1 800 1 600 APAC 27,9% 1 400 CAGR 2016-2020 Africa 1 200 13% & Middle East 14,7% 1 000 800 600 Europe 12,8% 400 200
Slide 6: How Banks Plan to Boost Payments Profitability
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 How Banks Plan to Boost Payments Profitability Source: Capgemini World Payment Report 2021 5
Slide 7: 2021 Highlights
2021 HIGHLIGHTS
Slide 8: 2021 Highlights
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 2021 Highlights ICPS & IPRC Acquisitions Ramp up of the Backlog with 100 MMAD revenue Processing activity strengthening contribution per annum Increased share of Strengthened R&D recurring revenues investments around Version 4 7
Slide 9: IPRC: High Value Added Services for HPS Clients
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 IPRC: High Value Added Services for HPS Clients IPRC at a glance Main customers IPRC Activities GAB MONITORING ⏵ Over 7 million cards managed ⏵ Real-time management of ATMs ⏵ 45% of transactions carried out in ⏵ Automatic reporting of incidents to cust
Slide 10: ICPS Acquisition: HPS, Africa's Leading Processing Company
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 ICPS Acquisition : HPS, Africa's Leading Processing Company FUTURE VISION HPS in Africa 1 Technology : PowerCARD 2 Data centers 13 countries +50 experts Establish a Centre of Excellence around ICPS PowerCARD technology in Mauritius for the benefit of c
Slide 11: New Organization to Support Our Growth
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 New Organization to Support Our Growth CHIEF EXECUTIVE OFFICER STRATEGIC COMMITTEE TRANSFORMATION COMMITTEE Abdeslam ALAOUI CORPORATE SERVICES MARKET PAYMENT SERVICES SOFTWARE FACTORY SWITCHING BUSINESS INNOVATION TESTING Brahim BERRADA Nabil IBENBRAHI
Slide 12: Achievements & Financial Review
ACHIEVEMENTS & FINANCIAL REVIEW
Slide 13: Key Figures
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Key Figures RECURRING EBITDA CASH REVENUES BACKLOG REVENUES MARGIN POSITION 833 MMAD 531 MMAD 22.6% 733 MMAD 306 MMAD +14.4% +18.4% vs. 22.0% +28.1% + 36.5% ⏵ Ramp-up of the Processing ⏵ Strong growth of recurring ⏵ Profitability improved ⏵ Growth of t
Slide 14: 2021 Highlights by Activity
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 2021 Highlights by Activity Processing Solutions +111.6% & +18.4% pro forma % +3.6% & +4.6% pro forma 26 2% Switching Payment Monitoring 16% 19% Projects Maintenance ⏵ Strong recovery of the Switching activity in Upselling License Morocco with the easi
Slide 15: Solutions Activity
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Solutions Activity Strategic Directions Highlights Share in Consolidated Revenues ⏵ Defend our market shares in ⏵ PowerCARD Projects 495.8 MMAD historical markets (French • Growth of +32% speaking region in Africa and Middle East) • Continuous executio
Slide 16: Processing Activity
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Processing Activity Strategic Directions Highlights Share in Consolidated Revenues ⏵ Build a strong HPS processing ⏵ Payment brand in Africa & Middle East 207.1 MMAD • +40% organic growth ⏵ Capture opportunities in other markets • Roll out of new Socié
Slide 17: Services Activity
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Services Activity Strategic Directions Highlights Share in Consolidated Revenues ⏵ Diversification of the business ⏵ Easing of lockdowns and slight towards high value-added economic recovery in France services ⏵ Diversification throughout France ⏵ Reco
Slide 18: Revenues (+14.4%): Summary of Impacts
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Revenues (+14.4%): Summary of Impacts 728.5 849,8 833,3 MMAD MMAD MMAD -5.1 MMAD +11.1 MMAD -16.7 MMAD +69.8 MMAD -27.6 MMAD +39,4 MMAD -0.7% +1.5% -2,3% +9.6% -3.8% +33.9 MMAD +5.4% +4.7% NORMALIZED ORGANIC GROWTH +7.1% NORMALIZED GROWTH ONE-OFF IMPAC
Slide 19: Changes in Operating Expenses
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Changes in Operating Expenses 608 660 689 MMAD MMAD MMAD ⏵ Personnel costs: 365 MMAD (+6.6%) Contained growth linked essentially to recruitments (+10% on a pro forma basis) +10 -10 ⏵ Subcontracting: 138 MMAD (+22,2%) +25 -19 +23 MMAD MMAD MMAD MMAD Inc
Slide 20: Change in Resources
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Change in Resources 548 611 109 806 +19.9% 153 90 86 +27.9% -16.4% +15.7% EXTERNAL GROWTH ORGANIC GROWTH +35.6% +11.5% Resources Recruitments Departures Resources IPRC ICPS Resources 2020 2021 2021 (at constant scope) (new scope) 19
Slide 21: Research & Development
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Research & Development Investment in R&D Strategic Directions for PowerCARD ⏵ Develop an "infinitely scalable" model ⏵ Take advantage of the cloud possibilities to make infrastructure costs more variable – cf. peaks management 103.2 MMAD 12.4%* ⏵ Make
Slide 22: PowerCARD Users Meeting 2021 – Virtual Edition
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 PowerCARD Users Meeting 2021 – Virtual Edition 500+ participants from 131 companies - Platform live all year long - Discussions & Demo sections 21
Slide 23: EBITDA
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 EBITDA +121 MMAD -70 MMAD +75.6% -43.7% ⏵EBITDA 2020 160 211 189 • 160 million MAD MMAD MMAD MMAD • Margin: 22% ⏵Normalized developments • Change in revenues at constant -27 MMAD exchange rates and excluding +11 MMAD -6 MMAD restrictions • Change in ex
Slide 24: Reported EBITDA Evolution in MMAD
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Reported EBITDA Evolution in MMAD 23.4% 22.9% 22.6% 22% 20.2% 189 168 160 152 113 2017 2018 2019 2020 2021 23
Slide 25: Normalized EBITDA Evolution in MMAD
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Normalized EBITDA Evolution in MMAD 27.2% 26.8% 23.4% 22.9% 20.2% 226 195 168 152 113 2017 2018 2019 2020 2021 24
Slide 26: Backlog
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Backlog Processing Solutions 34% 66% 9.1% 24.9% Annual Switching fee Projects Annual Processing fee 20.9% Upselling Annual Monitoring fee Annual Licenses 11.1% 4.2% Annual maintenance fee 2.4% 27.4% 733 ⏵ Backlog of MAD 733 Solutions activity 573 546 5
Slide 27: Strengthened Liquidity Position
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Strengthed Liquidity Position Amounts in MMAD 182 -127 ⏵Cash flow from Operations Continued optimization of WCR thanks to control of projects’ implementation cycle and recovery process 31 -4 306 ⏵Cash flow from Investments Finalization of ICPS and IPRC
Slide 28: Change in Net Debt 2017-2021
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Change in Net Debt 2017-2021 Amounts in MMAD 2017 2018 2019 2020 2021 0 MMAD -21.4 -21.5 -51.1 -111.6 -179.9 27
Slide 29: Outlook
OUTLOOK
Slide 30: Strategic Initiative Plan
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Strategic Initiative Plan Payment activities Switching activities Business Innovation IN-HOUSE OFFER • Take advantage of HPS's unique position to • Build a B2B2C offer to address Fintech • Defend our position in historical markets: evolve from a techno
Slide 31: Outlook for 2022
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Outlook for 2022 Continued Strong Maintaining the R&D Profitability improvement Organic Revenue Growth effort around V4 • Strong improvement in Pipeline • Version 4 to be a strong growth driver • EBITDA improvement on a normalized • Strengthening clien
Slide 32: Mid-Term Outlook
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Mid-Term Outlook Continued strong organic Continued improvement Growth acceleration through revenue growth of profitability external growth • Partnership with Capgemini should • The definitive lifting of restrictions and • Pursue an external growth str
Slide 33: Conclusion
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Conclusion Solid outlook and Successful integration of new Continued deployment of our strengthening fundamentals acquisitions and continuation of the Strategic Plan Initiatives external growth strategy 32
Slide 34: Q&A
Q&A
Slide 35: Appendices
APPENDICES —
Slide 36: Scope of Consolidation
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Scope of Consolidation Consolidated Statutory Accounts Statements Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes ComptesComptes Comptes Consolidés Consolidés Consolidés Comptes Comptes Consolidés Consolidés Consolidés Consolidé
Slide 37: Consolidated P&L Statement in MAD
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Consolidated P&L Statement in MAD 31/12/2020 P&L STATEMENT 31/12/2021 31/12/2020 Variation Variation PROFORMA Operating Revenues 833 329 233 728 485 158 14% 800 466 938 4% Turnover 796 695 604 674 068 852 18% 746 082 487 7% Change in product inventorie
Slide 38: Consolidated Cash Flows Statement in MAD
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Consolidated Cash Flows Statement in MAD CASH FLOW STATEMENTS 31/12/2021 31/12/2020 NET INCOME (group share) . 98 853 277 84 393 879 Elimination of net non-cash income and expenses - Depreciation and amortization 33 048 322 22 912 855 - Change in defer
Slide 39: Consolidated Balance Sheet in MAD – Assets
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Consolidated Balance Sheet in MAD – Assets CONSOLIDATED BALANCE SHEET – ASSETS 31/12/2021 31/12/2020 Fixed Assets 293 636 527 186 410 028 Goodwill 103 589 946 - Intangible assets 89 980 610 89 781 771 Property, plant and equipment 38 175 789 40 461 825
Slide 40: Consolidated Balance Sheet in MAD – Liabilities
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Consolidated Balance Sheet in MAD – Liabilities CONSOLIDATED BALANCE SHEET – LIABILITIES 31/12/2021 31/12/2020 Shareholders’ Equity 556 582 145 494 307 750 - Capital 70 359 900 70 359 900 - Share premium 31 623 410 31 623 410 - Consolidated reserves 35
Slide 41: Subsidiaries' Performance in MAD
FEEL GOOD ABOUT PAYMENTS FULL YEAR RESULTS 2021 Subsidiaries’ Performance in MAD 2021 2020 Operating Operating Operating Operating SUBSIDIARIES Net Income Net Income Revenue Income Revenue Income Full Consolidation (Morocco) HPS SA 613 754 290 72 235 220 76 555 397 589 572 595 86 755 675 72 356 116
Slide 42: Contact
hps-worldwide.com Contact invest@hps-worldwide.com