Slide 1: Fourth Quarter and Full Year 2020 Earnings Conference Call
Fourth Quarter and Full Year 2020 Earnings Conference Call March 1, 2021
Slide 2: Disclosures
Disclosures Forward-looking statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncer
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO
Slide 4: 2020 Financial Highlights
2020 Financial Highlights ✓ Total Revenue $511 million - increased 5% Record Results ✓ Adjusted EBITDA* $240 million - increased 6% ✓ Adjusted EPS* $2.07 - increased 6% ✓ Delivered significant operating cash flow of $199 million High Operating Cash ✓ Liquidity of $320 million as of December 31, 2020
Slide 5: Puerto Rico Update
Puerto Rico Update ▪ Banking consolidation expanding merchant relationships Opportunities ▪ Digital trends and product initiatives strengthening ATH ▪ Expanding QR Code to our merchant base Initiatives ▪ Finalizing implementation of new mobile app for EBT users to address most common questions, requ
Slide 6: Latin America Update
Latin America Update ▪ Launched Mercado Libre debit card processing in Mexico ▪ Citibanamex collections platform in production Successful Launch ▪ Santander Chile payment processing in production and approved by Chilean regulators ▪ Banco Popular of Costa Rica renewal and expansion Recent Wins ▪ Ban
Slide 7: Industry Tailwinds
Industry Tailwinds Target Markets are Dominated by Cash1 Mature Market Proxy Key Regions LatAm High-Low • There is a significant growth opportunity in Core LatAm markets and Puerto Rico in the Cash shift towards non-cash 13% Cash 20% Cash payments. 38% Cash 55% Cash • Cash continues to represent 73%
Slide 8: Growth Strategy
Growth Strategy Leverage client base, multi-product offering, presence and capacity ✓ Innovate Expand QR code adoption and other digital solutions ✓ Cross Sell Transition to processing model in Costa Rica, Chile, Mexico ✓ Opportunistic Acquisitions Puerto Rico Chile Costa Rica Mexico Colombia Acquis
Slide 9: Evertec Values
Evertec Values Bloomberg Gender- Equality Index 2021
Slide 10: Financial Summary
Financial Summary Joaquin Castrillo, CFO
Slide 11: Consolidated Results Q4 and Full Year 2020
Consolidated Results Q4 and Full Year 2020 (#039;s in millions, except per share) Q4 2020 Y-O-Y % Full Year Y-O-Y % Revenue $134.2 6% $510.6 5% Adjusted EBITDA $63.9 16% $240.5 6% Adjusted EBITDA margin 47.6% 410 bps 47.1% 70 bps Adjusted Net Income $42.8 23% $151.4 5% Adjusted EPS $0.59 23% $2.07 6% ▪
Slide 12: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q4 2020 Y-O-Y % Full Year Y-O-Y % Revenue $29.3 8% $109.8 3% Adjusted EBITDA $14.6 24% $55.1 17% Adjusted EBITDA margin 49.7% 650 bps 50.2% 590 bps ▪ Q4 revenue increase reflects higher sales volume and higher spread driven by high average ticket as tailwind from
Slide 13: Payment Services, PR and Caribbean
Payment Services, PR and Caribbean (#039;s in millions) Q4 2020 Y-O-Y % Full Year Y-O-Y % Revenue $34.1 5% $124.8 -1% Adjusted EBITDA $19.1 3% $66.9 -15% Adjusted EBITDA margin 56.0% -110 bps 53.7% -890 bps ▪ Q4 revenue reflects impact from ATH Movil & ATH Movil Business growth as shift to digital cont
Slide 14: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q4 2020 Y-O-Y % Full Year Y-O-Y % Revenue $22.0 -% $84.6 -% Adjusted EBITDA $8.9 26% $32.8 7% Adjusted EBITDA margin 40.6% 840 bps 38.7% 240 bps ▪ Q4 revenue reflects impact from client attrition as well as negative impact from FX ▪ Q4 margin benefit
Slide 15: Business Solutions
Business Solutions (#039;s in millions) Q4 2020 Y-O-Y % Full Year Y-O-Y % Revenue $60.5 6% $235.0 8% Adjusted EBITDA $30.3 21% $114.8 18% Adjusted EBITDA margin 50.1% 630 bps 48.9% 390 bps ▪ Q4 revenue reflects benefit from COVID related services, increased volumes and completed projects for Popular ▪
Slide 16: Corporate and Other
Corporate and Other (#039;s in millions) Q4 2020 Y-O-Y % Full Year Y-O-Y % Adjusted EBITDA ($9.0) 26% ($29.2) 5% % of Total Revenue 6.7% (110) bps 5.7% 0 bps ▪ Q4 corporate expense increased due to timing of corporate initiatives ▪ For the full-year corporate expenses as a % of revenue were flat to las
Slide 17: Roll Forward of 2020 Cash Balance
Roll Forward of 2020 Cash Balance ($ in millions) Operating Activities CapEx $199 ($49) Debt & Other Repurchases ($38) & Dividends Ending ($22) Balance Beginning $221 Balance $131 2019-12-31 0 0 0 0 2020-12-31 (1) Includes $17M in restricted cash. (2) Includes $18M in restricted cash. (3) Includes n
Slide 18: Debt Summary
Debt Summary (#039;s in millions) 12/31/2020 12/31/2019 Unrestricted Cash $202.6 $111.0 Total Debt $501.1 $533.4 Term A Loan (2023 Maturity) L+175bps $190.0 $209.0 Term B Loan (2024 Maturity) L+350bps $309.5 $321.8 Revolver; $125M (2023 Maturity) L+175bps — — Other $1.6 $2.6 Net Debt $298.4 $422.3 Weig
Slide 19: Full Year 2021 Outlook
Full Year 2021 Outlook (#039;s in millions, except per share) Low High Total Revenue $533 $544 Growth % 4% 7% Adjusted EPS $2.15 $2.23 Growth % 4% 8% GAAP EPS - Diluted $1.58 $1.66 Capital Expenditures $50 Assumptions Adjusted EBITDA Margin 46% 47% Tax rate 13% 13% Share Count for EPS 73.1 73.1 19
Slide 20: Q&A
Q&A
Slide 21: Non-GAAP Financial Information
Non-GAAP Financial Information The non-GAAP measures referenced in this release material are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not me
Slide 22: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Quarter ended December 31, Year ended December 31, (Dollar amounts in thousands, except share data) 2020 2019 2020 2019 Net income $ 32,370 $ 25,043 $ 104,851 $ 103,700 Income tax expense 3,451 2,957 19,002 12,975 Interest expense, net 5,908 6,267
Slide 23: Reconciliation of Q4 2020 Segment Non-GAAP Results
Reconciliation of Q4 2020 Segment Non-GAAP Results Quarter Ended December 31, 2020 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (Dollar amounts in thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 34,139 $ 21,963 $ 29,257 $
Slide 24: Reconciliation of 2020 Segment Non-GAAP Results
Reconciliation of 2020 Segment Non-GAAP Results Year Ended December 31, 2020 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate (Dollar amounts in thousands) Caribbean Latin America Acquiring, net Solutions and Other (1) Total Revenues $ 124,771 $ 84,641 $ 109,788 $ 234,
Slide 25: Reconciliation of Q4 2019 Segment Non-GAAP Results
Reconciliation of Q4 2019 Segment Non-GAAP Results Quarter Ended December 31, 2019 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (Dollar amounts in thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 32,634 $ 21,920 $ 27,185 $
Slide 26: Reconciliation of 2019 Segment Non-GAAP Results
Reconciliation of 2019 Segment Non-GAAP Results Year Ended December 31, 2019 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 125,544 $ 84,453 $ 106,388 $ 216,662 $ (45,673)
Slide 27: Outlook Summary and Reconciliation to Non-GAAP Adjusted EPS
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2020 2021 Outlook Actual (Dollar amounts in millions, except share data) Revenues $ 533 to $ 544 $ 511 Earnings per Share (EPS) (GAAP) $ 1.58 to $ 1.66 $ 1.43 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted EP