Hightech Payment Systems Sa · CSEMA:HPS
Hightech Payment Systems Sa — HPS — H1 2020 Earnings Presentation
33 slides from Hightech Payment Systems Sa's earnings presentation, Sep 22, 2020
Slide 1: Financial Communication: 2020 Half Year Results
FINANCIAL COMMUNICATION 2020 HALF YEAR RESULTS Casablanca– 22 September 2020
Slide 2: Contents
Contents S1 2020 Highlights & Context Operational & financial business review Prospects 1
Slide 3: S1 2020 Highlights & Context
S1 2020 HIGHLIGHTS & CONTEXT Abdeslam Alaoui CEO
Slide 4: World Economic Outlook: Projections for Growth
UPDATE TO THE WORLD ECONOMIC OUTLOOK, JUNE 2020 World Economic Outlook PROJECTIONS FOR GROWTH GLOBAL ADVANCED EMERGING AND ECONOMY ECONOMIES DEVELOPING ECONOMIES INTERNATIONAL MONETARY FUND 3
Slide 5: Response by HPS to COVID-19
Response by HPS to COVID-19 Staff protection Client support Strengthened Technology resilience • Workplace health and • Strengthened project • Assessment of different • Generalised work from safety measures and and support follow up scenarios to test the home assisted by guidelines offered to our cl
Slide 6: S1 2020 in short
S1 2020 in short Operating revenue Operating income Operating margin Net result Treasury 361.6 61.6 17.0% 49.5 224 M MAD M MAD vs. M MAD M MAD +3.4% +9.4% +16.1% +22.8% + 162% • Strong upswing in Processing • Growing contribution of the • Positive impact of variable • Controlled financial result • O
Slide 7: The payment market in the world
The payment market in the world 1.200 1,045.5 139.3 CAGR Growth 895.5 (2017–22F) (2017–18F) 900 57.7 779.2 111.2 Non-cash transactions (billions) Global 14.0% 11.2% 90.2 54.3 684.1 604.7 74.4 51.1 352.8 MEA 21.6% 17.9% 538.6 48.4 Developing 600 61.9 269.5 208.7 Latin America 6.0% 5.5% 23.5% 49.3 45.
Slide 8: 1st half 2020, pursuing our strategic goals
1st half 2020, pursuing the movement towards meeting our strategic goals Achievements in 1st half 2020 Ambitions Solutions Processing Services Regional diversification Business Diversification Recurring revenue Operational excellence 7
Slide 9: Operational & Financial Review
OPERATIONAL & FINANCIAL REVIEW Brahim Berrada DG Corporate
Slide 10: S1 2020 result highlights
S1 2020 result highlights Group business maintained and strengthened recurring revenues Pursued development Improved operating margin Strengthened liquidity position Net income making strong progress 9
Slide 11: S1 highlights by activity
S1 highlights by activity Processing +17.0% Switching 11,4% Payment Solutions +0.3% 7,7% 19,2% Projects Impact of COVID-19 on Switching activity due to the lockdown in Morocco 3,7% Upselling Growth in payment activity because of 15,9% Maintenance the deployment of the SG project in Africa and the si
Slide 12: Solutions Activity
Solutions Activity Strategic directions Contribution to overall income Anchor our presence by targeting “Tier 3” banks and ISOs in the United States Offer our solutions to major European processors and middle-ranking banks in Europe 240.9 M MAD 72.7% Develop a presence through partnerships in Southe
Slide 13: Solutions Activity by region
Solutions Activity Africa Europe Asia Americas 2019 2019 2019 2019 31.7% 31.3% 32.2% 4.8% 26.4% 34.6% 31.4% 7.8% Upselling Projects Maintenance Licence 12
Slide 14: Processing activity
Processing activity Strategic directions Contribution to overall income Organic growth in the activity and by acquisition in Africa and the Middle East Diversification of the offer 37.4 M MAD 11.4% +17.0% vs. S1 2019 Highlights Business trends in M MAD Payment 37 Deployment of the Société Générale p
Slide 15: Switching Activity S1 2020
Switching Activity S1 2020 Authorisation & Transaction Request -0.87% 2017 2,018 2,019 2,020 +15.7% in Q1 January February March April May June -11.5% Month 2017 2,018 2,019 2,020 January 7,023,914 7,835,032 10,647,483 11,874,580 February 6,356,747 7,025,791 8,919,999 11,287,035 +6% March 7,205,265
Slide 16: Switching Mobile Activity S1 2020
Switching Mobile Activity S1 2020 AAB BCP CAM W-CASH SGMA CIH BMCE M2T CMI NAPS ORANGE INWI IAM MSF ATW FPAY B-CASH CFG Status in production LANA BMCE SOGE- Cash DIGIFI CDM Status in CASH CASH PAIMENT production 1,641 1,225 1,150 Production – Changes to authorisations per month 550 456 402 371 405 3
Slide 17: Services Activity
Services Activity Strategic directions Contribution to overall income Diversification of activity towards high added value services Diversification in French territory and establishment of regional agencies 52.3 M MAD 15.9% -5.9% vs. S1 2019 Highlights Business trends in M MAD Impact of the lockdown
Slide 18: Diversification of the offer & strengthening of recurring revenues
Diversification of the offer & strengthening of recurring revenues In M MAD +9.3 361.6 Solutions 349.5 +0.6 -3.3 +5.4 Deployment of important projects Growth in Upselling with existing clients Several clients entered into maintenance, generating strong growth in maintenance revenue Processing Deploy
Slide 19: Geographic footprint and regional diversification
Geographic footprint and regional diversification Europe 38.7% Americas 3.5% Asia 23.4% Africa 34.4% Africa Europe Asia Americas S1-2020 S1-2020 S1-2020 S1-2020 113.1 M MAD 126.9 M MAD 76.8 M MAD 11.5 M MAD -21,7% vs. S1-2019 +30.9% vs. S1-2019 +11.8% vs. S1-2019 -11.1% vs. S1-2019 18
Slide 20: Operational excellence
Operational excellence In M MAD Staff expenses Increase in total payroll due to change in the workforce combined with an increase in salaries in S2-2019 361.6 External expenses Decrease in sales travel expenses and expenses related to events (fairs & exhibitions) Increase in rental expenses relating
Slide 21: R&D in 2020 and beyond...
Le budget 2020 prévoit le renforcement de l équipe QA afin de poursuivre les efforts commencés en 2018 pour déployer les best practices du test dans tous les départements Produit et Projet avec comme objectif une automatisation totale des tests Il est à noter que depuis la mise en place de l équipe
Slide 22: PowerCARD Roadmap
Strengthening of R&D efforts PowerCARD Roadmap 48.6 M MAD +17.4% vs. S1 2019 End of life 2020 2021 2022 2023 2024 PowerCARD v4 PowerCARD v3.X PowerCARD v2 21
Slide 23: Backlog in S1 2020
Backlog in S1 2020 21% Processing 11.7% 14.7% 7.8% 1.6% Projects Switching (1 year) 23.3% 3.4% Upselling Run Payment (1 year) Maintenance (1 year) Projects 79% Click Fees (1 year) 37.5% Solutions Backlog of more than 473 MDH, representing more than 132% of total income in Growth in the share of Proc
Slide 24: Treasury flow
Treasury flow In M MAD +135 +16 224 -14 85 Treasury Activities Investments Financing Treasury start 2020 June 2020 23
Slide 25: Operational Performance
Operational Performance PCI-DSS BCP Certification Implementation BCP triggered at all sites in March 2020 No activity interruption Maintained client activity with no disruption 24
Slide 26: Prospects
PROSPECTS
Slide 27: S2 2020 Prospects
S2 2020 Prospects The Group benefits from a unique position given Resilience of Group activity limiting the impacts related to the Covid-19 crisis the diversity and resilience of its portfolio. While managing the disruptions linked to the Covid-19 force majeure situation, HPS plans in To continue im
Slide 28: Conclusion
Conclusion Business resilience Solid operational performance Continuation of the initiatives in our strategic plan 27
Slide 29: Annexes
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Slide 30: Scope of Consolidation
Scope of Consolidation Consolidated Corporate Accounts Financial Comptes Comptes Comptes Comptes Comptes Statements Comptes Comptes Comptes Comptes Comptes Consolidés Comptes Consolidés Comptes Comptes Comptes Comptes Consolidés Consolidés Consolidés Consolidés Comptes Consolidés Consolidés Sociaux
Slide 31: Consolidated income statement S1 2020
Consolidated balance sheet (revenues and Consolidated balance sheet (revenues and expenses) 30/06/2020 30/06/2019 Var Operating revenue 359,611,114 349,542,992 2.88% expenses) S1 2020 Turnover 330,519,833 328,265,601 0.69% Other operating revenues 29,091,281 21,277,391 36.72% Operating expenses -298
Slide 32: S1 2020 Consolidated cash flow statement
S1 2020 Consolidated cash flow statement CASH FLOW STATEMENT NET PROFIT (group share) 30/06/2020 47,754,232 31/12/2019 93,796,375 Elimination of net income and expenses without effect on available cash - Depreciation allowances 10,686,992 19,702,875 -Change in deferred income taxes -597.152 -1,143,1
Slide 33: HPS _
HPS _