Slide 1: Q4 2023 Earnings Presentation
Q4 2023 Earnings Presentation March 6, 2024
Slide 2: Disclaimers
Disclaimers 2 Forward Looking Statements This presentation contains forward - looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although the Company believes that its plans, intentions, and
Slide 3: Summary
Summary Full y ear 2024 n et s ales is expected to be in the range of $ 408 mm to $ 428 mm a nd adjusted EBITDA of $147mm to $157mm Approved a repurchase program for up to $40 million of the Company’s outstanding shares of common stock, warrants and/or convertible notes over three years to provide u
Slide 4: Key Highlights – New Metal Card Programs
Key Highlights – New Metal Card Programs 4 Trade Republic – Europe Echo Mirror Banque Palatine – Europe BPCE Subsidiary Regions Bank – US Traditional Bank Kotak – Asia India Expansion BMW – US Automobile Card Fan Inc – US College Athlete Card Step – US Credit Building Card Neon Bank Club – US FinTec
Slide 5: Key Highlights – Customers Marketing New Programs
Key Highlights – Customers Marketing New Programs 5
Slide 6: Recent Trends across Payment Cards
Recent Trends across Payment Cards 1 American Express & JP Morgan Chase Earnings Presentations 2 American Express Earnings Presentations CompoSecure’s Largest Customers Report Continued Purchase Volume Growth vs. Prior Year Year over Year Purchase Volume Growth 1 6 American Express Completed Another
Slide 7: Card Issuer and Payment Network Sentiment
Card Issuer and Payment Network Sentiment 1 Q4 ‘23 Earnings Transcripts 2 PR Newswire – 2/19/24 “ as long as we have a line of sight into high credit quality premium cardmembers, we will continue to be out there aggressively acquiring cardmembers . And, you know, that range will be where we see that
Slide 8: Arculus Capabilities
Arculus Capabilities The Arculus premium metal card can combine functionality of both a credit/debit payment card and a secure authentication token or cold storage wallet 8 Arculus Authenticate Arculus Cold Storage Hardware - bound PassKey authenticator • Secure login on any iPhone, Android phone, o
Slide 9: Financial Services Leaders' Perceptions on Fraud Prevention & Authentication
Financial Services Business Leaders Perceptions and Expectations for Fraud Prevention & User Authentication 9 68% Plan to increase spending on fraud monitoring and detection 69% Agreed that enhanced authentication methods would save time and resources 62% Leaders have future plans for enhancing cybe
Slide 10: Financial Overview
@ Financial Overview
Slide 11: Q4 2023 Results
Q4 2023 Results $37.2mm Q4 ‘23 Q2 YTD ‘22 Net Sales $99.9mm 37.2% $31.0mm 52.9% $93.8mm $22.4mm 53.6% $30.6mm 32.6% 7% Record domestic quarter offset by lower international sales 39% (66 bps) 22% 461 bps Net Income Gross Margin Adjusted EBITDA 1 Adjusted EBITDA Margin 1 Q4 ‘22 % Change Commentary 1
Slide 12: Full Year 2023 Results
Full Year 2023 Results $145.0mm FY ‘23 Q2 YTD ‘22 Net Sales $390.6mm 37.1% $112.5mm 53.5% $378.5mm $131.8mm 58.0% $136.2mm 36.0% 3% Record net sales year driven by continued strong US demand offset by international business impacted by global economic conditions (15%) (451 bps) 6% 114 bps Net Income
Slide 13: Net Sales Trend
$79 $74 $78 $84 $86 $15 $22 $21 $13 $14 $94 $95 $99 $97 $100 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 International Domestic Net Sales Trend International mix for the full year was 18% of total net sales, in line with long range view of business of approximately 20% In millions International Domestic 13%
Slide 14: Balance Sheet (Unaudited)
Balance Sheet (Unaudited) Source: Company financials Note: Financial position has been derived from CompoSecure’s consolidated financial statements for the quarters ended Decembe r 3 1, 2023 and December 31, 2022 respectively 14 Q4 2022A Q4 2023A ($mm) Assets Current Assets $14 $41 Cash & cash equiv
Slide 15: Statement of Cash Flows (Unaudited)
Statement of Cash Flows (Unaudited) Source: Company financials Note: Cash flows have been derived from CompoSecure’s consolidated financial statements for the twelve months ended December 31, 2023 and 2022 respectively 15 FY 2022A FY 2023A ($mm) Cash flows from operating activities $132 $113 Net inc
Slide 16: Q4 Earnings per Share: GAAP
Q4 Earnings per Share: GAAP 19.4mm Basic Q2 YTD ‘22 GAAP Net Income $31.0mm $0.17 $3.3mm 1 Three months ended 12/31/23 Three months ended 12/31/22 $31.0mm $3.3mm 2 19.4mm $0.17 $22.4mm $22.4mm $2.2mm 3 $2.2mm 4 16.1mm 16.1mm $0.14 $0.14 Net Income used in EPS Total Shares used in EPS Earnings per Sh
Slide 17: Full Year Earnings per Share: GAAP
Full Year Earnings per Share: GAAP 18.7mm Basic Q2 YTD ‘22 GAAP Net Income $112.5mm $1.03 $19.2mm 1 Twelve months ended 12/31/23 Twelve months ended 12/31/22 $112.5mm $34.1mm 2 35.3mm $0.96 $131.8mm $131.8mm $18.7mm 3 $36.7mm 4 15.4mm 32.6mm $1.21 $1.13 Net Income used in EPS Total Shares used in EP
Slide 18: Q4 Adjusted Earnings per Share
Q4 Adjusted Earnings per Share 79.3mm 3 Basic Q2 YTD ‘22 GAAP Net Income $31.0mm $0.29 $23.1mm 1 Three months ended 12/31/23 Three months ended 12/31/22 $31.0mm $23.1mm 1 90.4mm 4 $0.26 $22.4mm $22.4mm $17.7mm 2 $17.7mm 2 76.4mm 3 88.3mm 5 $0.23 $0.20 Adjusted Net Income Total Shares used in EPS Adj
Slide 19: Full Year Adjusted Earnings per Share
Full Year Adjusted Earnings per Share 78.6mm 3 Basic Q2 YTD ‘22 GAAP Net Income $112.5mm $1.12 $88.0mm 1 Twelve months ended 12/31/23 Twelve months ended 12/31/22 $112.5mm $88.0mm 1 90.4mm 4 $0.97 $131.8mm $131.8mm $83.0mm 2 $83.0mm 2 75.7mm 3 88.0mm 5 $1.10 $0.94 Adjusted Net Income Total Shares us
Slide 20: 2024 Guidance
2024 Guidance Providing full year net sales and adjusted EBITDA guidance Net Sales Adjusted EBITDA 1 2023A $391mm $145mm 1 Adjusted EBITDA is a non - GAAP financial metric. For a reconciliation of Adjusted EBITDA to the most - comparable GAAP metric, plea se see the Appendix to this presentation $40
Slide 21: 2024 Company Objectives
2024 Company Objectives Grow and diversify metal payment cards while delivering exceptional quality to our customers Innovate across products, processes and platforms to differentiate from competition and continue emphasis on environmental impact Drive Arculus Authenticate and Cold Storage by demons
Slide 22: Investor Relations Contact
Investor Relations Contact ir.composecure.com Sean Mansouri 720 - 330 - 2829 ir@composecure.com 22 22
Slide 23: Appendix
@ Appendix /
Slide 24: Summary Equity Capitalization Table
CompoSecure, Inc. (Nasdaq: CMPO) Summary Equity Capitalization Table (with net exercise model) As of December 31, 2023 Holders # of Shares Issued & Outstanding # of Shares Issued & Outstanding Public Shareholders: Class A 19.4mm 19.4mm Historic CompoSecure Owners : Class B 60.0mm 60.0mm Subtotal 79.
Slide 25: Statement of Operations (Unaudited)
Statement of Operations (Unaudited) Source: Company financials Note: Operating results have been derived from CompoSecure’s consolidated financial statements for the three and twelve month s e nded December 31, 2023 and 2022 respectively 25 FY 2022A FY 2023A Q4 2022A Q4 2023A ($mm) Revenue $378 $391
Slide 26: Non-GAAP Adjusted EBITDA Reconciliation (Unaudited)
Non - GAAP Adjusted EBITDA Reconciliation (Unaudited) Source: Company financials Non - Cash Equity Awards : Equity based expenses related to the equity incentive plan Non - Cash Mark - to - Market Adjustments : Related to changes in fair value of liabilities for warrants, earnouts and derivatives as
Slide 27: Non-GAAP EPS Reconciliation (Unaudited)
Non - GAAP EPS Reconciliation (Unaudited) Source: Company financials 1 Assumes treasury stock method, valuation at assumed FMV of $18.00 2 Includes options, RSUs, and ESPP shares 27 Twelve months ended 12/31/2022 Twelve Months Ended 12/31/2023 Three Months Ended 12/31/2023 DILUTED BASIC DILUTED BASI