Paypoint Plc · LSE:PAY
Paypoint — FY2015 Earnings Presentation
36 slides from Paypoint's earnings presentation, May 28, 2015
Slide 1: Results for the year ended 31 March 2015
Dominic Taylor & George Earle Results for the year ended 31 March 2015 28 May 2015
Slide 2: Agenda
Agenda 2 Results summary 3 Update on strategy 4 Financial review 8 Operational review 13 Summary and future developments 20 Appendices 22 Results for the year ended 31 March 2015
Slide 3: Results summary
Results summary 3 Net revenue £m • Good results with progress across the business • Net revenue1 up 8.3% and operating profit2 up 9.1% • Retail continues to grow with net revenue up 10.1%: • UK & Ireland retail network net revenue increased 9.3% 105.7 113.7 123.1 • Romanian bill payment transactions
Slide 4: Update on strategy
Update on strategy
Slide 5: Our track record of innovation to drive differentiation
Our track record of innovation to drive differentiation 5 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2015… Bill payment Mobile top-ups ATMs Dr/Cr Parcels Cash out Products and services New services Money transfer Net settlement Multi-channel New SIMs energy multi-channel product products PayC
Slide 6: Building on our strengths
Building on our strengths 6 • Unprecedented change presents PayPoint with further opportunity to help clients and retailers serve consumer needs • Omni channel choices • Convenience and quality • Mobile technology/apps • Community service hub • Consumer choice • Core retail technology • Multi-channe
Slide 7: Focussed multi-channel future
Focussed multi-channel future 7 • FinTech businesses are in an arms race of investment Source: Goldman Sachs • Board has decided to sell our parking and online payment processing businesses within Mobile and Online: • Mobile and Online funding requirements suit a different investor • Sale will reali
Slide 8: Financial review
Financial review
Slide 9: Good results from continued retail growth
Good results from continued retail growth 9 Year ended March 2014 2015 % £m £m change Net revenue1 113.7 123.1 8.3 Other cost of sales (16.8) (18.1) 7.7 Administrative costs (52.7) (56.9) 8.0 Collect+ (share of JV) 0.9 1.3 Operating profit2 45.4 49.5 9.1 Investment income less costs 0.8 0.1 Profit b
Slide 10: Net revenue grows by 8.3%
Net revenue grows by 8.3% 10 £m 130 £(0.6)m 125 £0.6m £4.4m 120 £123.1m £5.0m 115 110 £113.7m 105 100 2014 2015 Top-ups Bill and general Mobile and Online Retail services Results for the year ended 31 March 2015
Slide 11: Cash generation and use
Cash generation and use 11 Year ended March 2014 2015 £m £m Operating cash flows 50.8 56.3 Working capital 5.0 (2.7) Cash generated by operations 55.8 53.6 Tax and interest paid (10.4) (8.7) Net cash inflow from operating activities 45.4 44.9 Net cash used in investing activities (12.7) (9.9) Cash s
Slide 12: Financial review - summary
Financial review - summary 12 • Strong balance sheet • Outlook good for retail growth - Net revenue: retail services opportunities, network expansion - Other cost of sales: increasing depreciation and amortisation - Administrative expenses: continued investment in Mobile and Online until sale and VA
Slide 13: Operational review
Operational review
Slide 14: Retail Payments and Services
Retail Payments and Services 14 • Strongly differentiated, over-the-counter payment proposition Retail 2014 2015 • The network: Transactions (m) 635 667 • UK, Ireland and Romania • Over 37,500 convenience stores open early til late Average spend per • Major utilities and service companies under long
Slide 15: Retail Payments and Services – UK & Ireland
Retail Payments and Services – UK & Ireland 15 UK & Ireland retail net • Bill and general net revenues continued to show growth, 105 revenue bridge despite reduced gas volume • Top-ups net revenue increased despite mobile top-up decline 100 £4.4m £0.6m • Retail services net revenue growth of 20.3% d
Slide 16: Collect+
Collect+ 16 • Customers are increasingly looking for Collect+ as an important service within the retail offering • Collect+ service is highly rated by consumers , • Several key new retail relationships are due to be launched in spring/summer 2015 • Bringing the offline and online retail experience t
Slide 17: Collect+
Collect+ 17 • Joint venture with Yodel to transform shopping fulfillment for consumers Collect+ at 100% 2014 2015 • Pioneer and clear market leader in parcel collection and returns through local shops, as convenient alternatives to home delivery or Post Offices Transactions (m) 13.6 18.8 • B2C (Clic
Slide 18: Retail Payments and Services - Romania
Retail Payments and Services - Romania 18 • Bill payment transactions increased by 36.8% Romania 2014 2015 • Bill payment market share 20% (March 2015), up 5ppts from March 2014, with significant growth opportunities Transactions (m) 44.7 59.6 supported by national advertising campaigns to increase
Slide 19: Mobile and Online
Mobile and Online 19 • Only 12% of group net revenue • Transaction growth was 10.0% , net revenue down Mobile and Online 2014 2015 3.8% partly due to the loss of Westminster parking Transactions (m) 132 145 • Parking vertical: • Flagship Mobile and Online consumer product Transaction value (£m) 4,90
Slide 20: Summary and future developments
Summary and future developments
Slide 21: Summary and future developments
Summary and future developments 21 Current year trading is in line with the company’s expectations and provides a strong foundation for future growth The sale of our parking and online payment processing businesses enables focus on multi-channel payments and services where we have retail networks Pa
Slide 22: Appendices
Appendices
Slide 23: Appendix 1
Appendix 1 The ‘essence’ of what we do
Slide 24: The 'essence' of what we do
The ‘essence’ of what we do 24 • We process high volume consumer transactions, for multi-channel payments and retail services (e.g. parcels) for clients in vertical markets, through integrated flexible platforms • Payments are typically low value and cover retail, internet and mobile, with money flo
Slide 25: Appendix 2
Appendix 2 Materials to support the consumer transaction UK retail
Slide 26: UK Retail: Client media payment
Materials to support the consumer transaction UK Retail: Client media payment 26 Results for the year ended 31 March 2015
Slide 27: UK Retail: Retail store
Materials to support the consumer transaction UK Retail: Retail store 27 Results for the year ended 31 March 2015
Slide 28: UK Retail: Terminals, Pin Pads and ATMs
Materials to support the consumer transaction UK Retail: Terminals, Pin Pads and ATMs 28 Results for the year ended 31 March 2015
Slide 29: UK Retail: PPOS virtual terminal
Materials to support the consumer transaction UK Retail: PPOS virtual terminal 29 Results for the year ended 31 March 2015
Slide 30: UK Retail: New and developing sectors
Materials to support the consumer transaction UK Retail: New and developing sectors 30 Digital content Cash Out Results for the year ended 31 March 2015
Slide 31: Appendix 3
Appendix 3 Materials to support the consumer transaction Collect+
Slide 32: www.collectplus.co.uk
Materials to support the consumer transaction www.collectplus.co.uk 32 Results for the year ended 31 March 2015
Slide 33: www.collectplus.co.uk
Materials to support the consumer transaction www.collectplus.co.uk 33 Results for the year ended 31 March 2015
Slide 34: www.collectplus.co.uk
Materials to support the consumer transaction www.collectplus.co.uk 34 Results for the year ended 31 March 2015
Slide 35: Collect+: Phone pick up barcode
Materials to support the consumer transaction Collect+: Phone pick up barcode 35 Results for the year ended 31 March 2015
Slide 36: Over 5,800 locations live
Materials to support the consumer transaction Collect+: UK network 36 Collect+ live agents Target network density - 1 Mile urban - 5 Mile rural Over 5,800 locations live Results for the year ended 31 March 2015