Hightech Payment Systems Sa · CSEMA:HPS
Hightech Payment Systems Sa — HPS — H1 2021 Earnings Presentation
40 slides from Hightech Payment Systems Sa's earnings presentation, September 2021
Slide 1: Half-Year Results 2021
HALF-YEAR RESULTS 2021 FINANCIAL COMMUNICATION Casablanca – September 2021 hps-worldwide.com
Slide 2: Summary
SUMMARY 01 2021 HIGHLIGHTS & BACKGROUND 02 ACHIEVEMENTS & FINANCIAL REVIEW 03 OUTLOOK 04 Q&A 05 APPENDICES 1
Slide 3: 2021 Highlights & Background
2021 HIGHLIGHTS & BACKGROUND
Slide 4: World Economy: Economic Growth Confirmed in 2021
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 World Economy: Economic Growth Confirmed in 2021 Developed countries Emerging World countries 6,0% 5,4% 5,6% -1,7% -3,5% -4,7% Source: World Bank Global Economic Prospects June 2021 3
Slide 5: A Worldwide Shift of the industry
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 A Worldwide Shift of the industry … Open Banking Regulation (PSD2) Interoperability and standardization l initiatives Increasing use of Cloud solutions, i ca g lo ents de Re opm Application Programming Interface (APIs) o Personal data protection and ve
Slide 6: … to a new era of growth and development
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 … to a new era of growth and development 72% Regional payment systems PREDOMINANCE OF Multiplication of regional payment systems (Rupay CARD PAYMENT... Share of card payments in non-cash in India, EPI in Europe, Verve Card in Africa) transactions ...AND
Slide 7: Half-Year Highlights
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Half-Year Highlights ICPS & IPRC Acquisitions Ramp up of the Strong impact of with 100 MMAD revenue Processing activity lower currencies contribution per annum exchange rates Increased share of Strengthened R&D recurring revenues investments around Vers
Slide 8: IPRC: High Value Added Services for HPS Clients
COMMUNICATION FINANCIAL HALF-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 custo
Slide 9: ICPS Acquisition: HPS, Africa's Leading Processing Company
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 ICPS Acquisition : HPS, Africa's Leading Processing Company HPS in Africa 1 Technology : PowerCARD 2 Data centers 13 countries +50 experts FUTURE VISION ICPS 1 Technology: PowerCARD 2 Data centers 18 countries ⏵ Establish a Center of Excellence around +
Slide 10: Achievements & Financial Review
ACHIEVEMENTS & FINANCIAL REVIEW
Slide 11: Key figures
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Key figures RECURRING EBITDA CASH REVENUES BACKLOG REVENUES MARGIN POSITION 392 MMAD 245 MMAD 21.1% 579 MMAD 277 MMAD +8.5% +20.0% vs. +21.5 +1.0% + 23.8% ⏵ Strong growth of the ⏵ Strong growth of recurring ⏵ Profitability maintained ⏵ Backlog growth th
Slide 12: H1-2021 Highlights by activity
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 H1-2021 Highlights by activity Processing Solutions +140% & +26.5% pro forma % -4.4% & +3.1% at constant exchange rates 25 3% Switching Payment ATM & Fraud Supervision 13% 18% Projects Maintenance Upselling License ⏵ Strong recovery of the Switching act
Slide 13: Solutions Activity
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Solutions Activity Strategic Directions Highlights Share in Consolidated Revenues ⏵ Anchor our presence by targeting Tier ⏵ PowerCARD Projects 3 banks and ISOs in the US ⏵ Offer our solutions to large European • Growth of +4% • Continued deployment of m
Slide 14: Solutions Activity by region
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Solutions Activity by region Europe Americas Asia Africa H1 2020 28.8% 32.% 33.5% 5.6% Projects Upselling Maintenance License 13
Slide 15: Processing Activity
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Processing Activity Strategic Directions Highlights Share in Consolidated Revenues ⏵ Organic and acquisition-led ⏵ Payment business development in Africa 89.9 MMAD • Organic growth of +130% and the Middle East ⏵ Offer diversification • Cameroon, Chad, C
Slide 16: Evolution of the Electronic Money Market in Morocco in H1 2021
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Evolution of the Electronic Money Market in Morocco in H1 2021 Evolution of equipment over the first Half 2021 17.9 million cards +4% vs. 12/31/2020 19.1 million 48.3 million 9.1 million interoperable withdrawals merchant payments e-Com payments +28.7%
Slide 17: Services Activity
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Services Activity Strategic Directions Highlights Share in Consolidated Revenues ⏵ Diversification of the business ⏵ Slight improvement of the towards high value-added services economic context in France ⏵ Diversification throughout France and establish
Slide 18: Revenues (+8.5%): Summary of Impacts
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Revenues (+8.5%): Summary of Impacts 361.6 422.4 392.4 MMAD MMAD MMAD -4 MMAD +26.6 MMAD -20 MMAD -7.2 MMAD 10 MMAD +28 MMAD -1.1% +7.4% -5.5% -2% -2.75% +17.4 MMAD +7.7% +4.8% NORMALIZED ORGANIC GROWTH +9,4% NORMALIZED GROWTH ONE-OFF IMPACTS +16.8% -8.
Slide 19: Changes in Operating Expenses
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Changes in Operating Expenses 300 315.4 333.6 MMAD MMAD MMAD ⏵ Personnel costs: 163 MMAD Contained growth linked essentially to recruitments ⏵ Subcontracting: 59.5 MMAD Increase in subcontracting to support the R&D effort +18.2 and as part of the streng
Slide 20: Change in Resources
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Change in Resources 548 573 758 105 +19% 32 80 57 -6% +15% +10% EXTERNAL GROWTH ORGANIC GROWTH +32% +4.5% Resources Recruitments Departures Resources IPRC ICPS Resources H1-2020 H1-2021 H1-2021 (at constant scope) (new scope) 19
Slide 21: Research & Development
COMMUNICATION FINANCIAL HALF-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 57.2 MMAD 14.6%* ⏵ Make al
Slide 22: PowerCARD Users Meeting 2021 – Virtual Tour
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 PowerCARD Users Meeting 2021 – Virtual Tour 500+ participants from 131 companies - Platform live all year long - Discussions & Demo sections RESULTATS SEMESTRIELS 2021 21
Slide 23: EBITDA
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 EBITDA 77.8 118.5 82.6 ⏵EBITDA H1-2020 +60.8 MMAD -20 MMAD MMAD MMAD MMAD • 77.8 million MAD +16.8% -7.1% • Margin: 21.5% -18 MMAD ⏵Normalized developments • Change in revenues at constant exchange -10 MMAD rates and excluding restrictions • Change in e
Slide 24: EBITDA evolution
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 EBITDA evolution Amount in MMAD 23% 21.5% 21.1% 20.1% 18.4% 82.6 77.8 74.1 56.4 49.6 H1-2017 H1-2018 H1-2019 H1-2020 H1-2021 23
Slide 25: Backlog
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Backlog Processing Solutions 35% 65% 4% Projects Switch annual fees 3% 13% Upselling Payment annual fees 17% 18% Maintenance Projects Annual licenses Supervision annual fees 11% 3% 31% In MMAD ⏵ Backlog of MAD 579 ⏵ Continuous growth of million, represe
Slide 26: Strengthened Liquidity Position
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Strengthed Liquidity Position In MMAD ⏵Cash flow from Operations Improvement of working capital and maintaining control over the project 90,7 -121,1 implementation cycle and the collection process 87,3 -3,7 276,7 ⏵Cash flow from Investments Finalization
Slide 27: Change in Net Debt 2017-2021
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Change in Net Debt 2017-2021 Amounts in MMAD 2017 2018 2019 2020 H1-2021 0 MMAD -21.4 -21.5 -51.1 -76.1 -111.6 26
Slide 28: Outlook
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Slide 29: Outlook 2021
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Outlook 2021 Continued Strong Organic Maintaining the R&D effort Improvement in normalized Revenue Growth around V4 EBITDA, but caution for 2021 • Strong improvement in Pipeline • Version 4 to be a strong growth driver • EBITDA improvement on a normaliz
Slide 30: Mid-Term Outlook
COMMUNICATION FINANCIAL HALF-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 the • Pursue an external growth
Slide 31: Conclusion
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Conclusion Solid outlook and strengthening Successful integration of new Continued deployment of our fundamentals acquisitions and continuation of the Strategic Plan Initiatives external growth strategy 30
Slide 32: Q&A
Q&A
Slide 33: Appendices
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Slide 34: Scope of Consolidation
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Scope of Consolidation Consolidated Corporate Financial Accounts Statements Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Consolidés Consolidés Comptes Comptes Consolidés Consolidés Consolidés Consolidés Comptes
Slide 35: Consolidated P&L statement at June 30, 2021 in MAD
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Consolidated P&L statement at June 30, 2021 in MAD 06/30/2020 CONSOLIDATED INCOME STATEMENT in MAD 06/30/2021 06/30/2020 Change Change Proforma Operating Revenues 392 413 227 361 590 613 8.4% 391 925 673 0.1% Turnover 366 729 188 318 600 683 15.0% 348 9
Slide 36: Consolidated Cash Flows Statement at June 30, 2021 in MAD
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Consolidated Cash Flows Statement at June 30, 2021 in MAD CASH FLOW STATEMENT 06/30/2021 12/31/2020 Change NET INCOME (group share) 36 835 208 84 393 879 -56.4% Elimination of net non-cash income and expenses - Depreciation and amortization 15 463 304 2
Slide 37: Consolidated Balance Sheet – Assets
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Consolidated Balance Sheet at June 30, 2021 in MAD – Assets CONSOLIDATED BALANCE SHEET – ASSETS 06/30/21 12/31/20 Change Fixed Assets 293 841 092 186 410 028 57.6% Goodwill 107 737 846 - NA Intangible assets 89 248 846 89 781 771 -0.6% Property, plant a
Slide 38: Consolidated Balance Sheet – Liabilities
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Consolidated Balance Sheet at June 30, 2021 in MAD – Liabilities CONSOLIDATED BALANCE SHEET – LIABILITIES 06/30/21 12/31/20 Change Shareholders’ Equity 492 605 725 494 307 750 -0.3% - Capital 70 359 900 70 359 900 0.0% - Share premium 31 623 410 31 623
Slide 39: Subsidiaries' Performance at June 30, 2021 in MAD
COMMUNICATION FINANCIAL HALF-YEAR RESULTS 2021 Subsidiaries’ Performance at June 30, 2021 in MAD In MAD June 30, 2021 June 30, 2020 Operating Operating Operating Operating Subsidiaries Net Income Net Income Revenue Income Revenue Income Full Consolidation (Morocco) HPS SA 294 442 632 35 055 099 44 9
Slide 40: hps-worldwide.com
hps-worldwide.com HPS – Head Office Casablanca Nearshore Park, Shore 1 1100, bd Al Qods – Sidi Maârouf 20270 Casablanca – Morocco Phone: + 212 529 045 000 Contact invest@hps-worldwide.com