Eml Payments Ltd. · ASX:EML
Eml Payments — FY2021 Earnings Presentation
53 slides from Eml Payments's earnings presentation, Aug 17, 2021
Slide 1: FY21 Results Investor Presentation and FY22 Guidance
17 August 2021 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 FY21 Results Investor Presentation and FY22 Guidance EML PAYMENTS LIMITED (ASX: EML) (“EML”) is pleased to provide investors with the following presentation ahead of its Annual Results and Investor Presentation for the full yea
Slide 2: FY2021 Financial Results
17 AUGUST 2021 FY2021 Financial Results.
Slide 3: Important Notice
01 Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information about EML’s activities current as at the date of this FY21 Financial Results presentation. This information is given in summary form and does not pu
Slide 4: Mission. Vision. Purpose.
EML Payments FY2021 Financial Results 03 Mission. We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. Vision. Purpose. To offer customers Inspiring a feature rich, fully transformative embedded payment
Slide 5: About Us
EML Payments FY2021 Financial Results 04 About Us EML is an ASX listed (ASX: EML) Payments Technology company operating We operate in a trillion dollar industry proprietary processing platforms that enable Fintech disruption Global: Global: Group GDV 5 Year GDV CAGR 5 Year EBITDA CAGR Payment cards
Slide 6: Record Financial Results
EML Payments FY2021 Financial Results 05 Record Financial Results GDV $19.7bn 42% UNDERLYING EBITDA2 Operating Cashflow $53.5m 65% $48.8m 121% UNDERLYING Revenue1 NPATA2 Cash At Bank $194.2m $32.4m $141.2m 60% 54% 19% 1 Revenue is stated excluding the impacts of AASB3 Business Combinations 2 Underly
Slide 7: Financial Performance.
O1 =M@MI.. Financial Performance. Money in Motion
Slide 8: Financial Performance
EML Payments FY2021 Financial Results ($’000s) FY20 FY21 GROWTH RESTATED Financial Performance GDV 13,875,936 19,678,390 42% TOTAL REVENUE1 121,630 194,176 60% Revenue conversion bps 88bps 99bps 13% A record year. GROSS PROFIT 88,746 130,376 47% GP margin 73% 67% (6%) OVERHEAD EXPENDITURE (Incl. R&D
Slide 9: Segment Performance
EML Payments FY2021 Financial Results 08 Segment Performance General General Purpose Purpose Reloadable Reloadable (GPR)Use cases - Banking as a service, Software as a service, Neo-lending, Multi-currency, Government, Non Governmental Organisations (GPR) Highlights Revenue GP% Yield — GDV grew $5.5b
Slide 10: Gross Debit Volume (GDV)
EML Payments FY2021 Financial Results 09 Gross Debit Volume (GDV) General Purpose Gift & Incentive Virtual Account Reloadable (GPR) (G&I) Numbers (VANs) GDV $19.7bn 42% $9.7bn $1.1bn $8.8bn 130% 6% 4% GDV by Segment (A$m) $19.7bn • GDV growth from both acquisition and • Challenging trading condition
Slide 11: Revenue
EML Payments FY2021 Financial Results 10 Revenue General Purpose Gift & Incentive Virtual Account Reloadable (GPR) (G&I) Numbers (VANs) Revenue 1 $194.2m 60% $113.5m $70.2m $10.3m 171% 3% 4% GDV by Segment (A$m) $194.2m • PFS contributed $78.3m, up from • Volumes impacted by lockdowns • Yields remai
Slide 12: Gross Profit
EML Payments FY2021 Financial Results 11 Gross Profit General Purpose Gift & Incentive Virtual Account Reloadable (GPR) (G&I) Numbers (VANs) Gross Profit $130.4m 47% $65.7m $57.0m $7.6m 163% 0.5% 10% Gross Profit Margin by Segment $130.4m • Gross Profit margins for the GPR • Gross Profit margins for
Slide 13: Overheads
EML Payments FY2021 Financial Results 12 Overheads • H1 FY21 Guidance was for overheads to be $76-80m. Overheads (excluding CBI related costs) Overheads 1 finished at the lower end of this range. $76.8m 37% • Overheads for the Group increased 37% on PCP. PFS contributed an additional $20.0m (excludi
Slide 14: Underlying EBITDA
EML Payments FY2021 Financial Results 13 Underlying EBITDA $53.5m As outlined on slide 26, the Group 65% ON PCP $11.4m has been working with the CBI in relation to regulatory concerns it 5 Year EBITDA CAGR 60% raised in May 2021. EML's response to the CBI on these matters has had a meaningful impact
Slide 15: Underlying EBITDA to Underlying NPATA
EML Payments FY2021 Financial Results 14 Underlying EBITDA to Underlying NPATA 53,526 9,626 UNDERLYING 4,967 325 3,556 UNDERLYING 2,667 EBITDA NPATA 32,385 $53.5m $32.4m 65% ON PCP 54% ON PCP EBITDA Depreciation Share Non Cash Finance Other FV on Tax Acquisition NPATA & Based Amortisation Costs Inco
Slide 16: Financial Position
EML Payments FY2021 Financial Results 15 Financial Position 30 June CARDHOLDER CORPORATE ($’000s) 2020 30 June 2021 GROWTH ASSETS/ LIABILITIES BALANCE SHEET Restated Cash and cash equivalents 118,381 141,228 19% 28,187 113,041 Contract asset 22,344 16,363 (27%) 16,363 Cash on hand of $141.2m, with n
Slide 17: Restatement of Acquisition PFS
EML Payments FY2021 Financial Results 16 Restatement PFS of Acquisition Acquisition Update As noted in our 30 July 2021 announcement, the Group became aware of historical deficiencies in connection with the accelerated conversion to cash of dormant funds and expired eMoney. As a result of the pre-ac
Slide 18: Financial Performance – Cash Flow
EML Payments FY2021 Financial Results 17 Financial Performance – Cash Flow $46.7m Underlying Operating Cash Inflows1 Cash & Cash Equivalents $141.2m 87% Underlying EBITDA to Underlying Operating Cashflow conversion FY21 Underlying Operating Cash Flow Movements FY21 $26.0m Underlying EBITDA $53.5m Ca
Slide 19: FY2022 - Financial Guidance
EML Payments FY2021 Financial Results 18 FY2022 - Financial Guidance Gross Debit Volume The Group expects Underlying EBITDA1 $93bn – $100bn to be in a range of (FY21: $19.7b) A$58m – $65m Revenue $220m – $255m for FY22 (FY21: $194.2m) Underlying EBITDA1,2 Assumptions: $58m – $65m 01 02 (FY21: $53.5m
Slide 20: Business Update
02 =MI.. Business Update Money in Motion
Slide 21: FY21 Highlights
EML Payments FY2021 Financial Results 20 FY21 Highlights — Signed and launched major new customers in all verticals with sales pipeline momentum evident in all markets (refer following pages). — As part of Project Accelerator, announced the acquisition of Sentenial Limited in April 2021. Sentenial,
Slide 22: Sentenial Update
EML Payments FY2021 Financial Results 21 Sentenial Update — EML Payments Limited (EML) entered into a binding agreement to acquire 100% of Sentenial Group ('Sentenial') for an enterprise value of €70m (AUD110.9m)(Upfront Enterprise Value), plus an earn-out component of up to €40m (AUD63.3m) (Earn-ou
Slide 23: New Contracts and Program Launches
EML Payments FY2021 Financial Results 22 New Contracts and Program Launches SALES PIPELINE GPR GPR 85 95 +$10.5bn 121 TOTAL CONTRACTS 144 Projected year 3-4 GDV SIGNED of which NEW PROGRAMS 21 Programs implemented IMPLEMENTED Expected GDV IN FY21 VANS $2.7b at maturity G&I VANS G&I 3 33 3 46 313 dea
Slide 24: Business Development Update
EML Payments FY2021 Financial Results 23 Business Development Update Government & NGO Programs EML continues to see our solutions being used for During FY21 the benefit of communities in multiple countries. — EML managed 576 Government and NGO programs across the US, UK, Australia and Europe — EML d
Slide 25: Key Program Launches
EML Payments FY2021 Financial Results 24 Key Program Launches AptPay VGW Zeller GPR – Canada Social Gaming – US BaaS – AU EML's first GPR program Social entertainment platform Offers an all-in-one payments in Canada. Disbursement that combines online social and financial services solution for progra
Slide 26: Key Program Launches (cont.) Key Program Wins
EML Payments FY2021 Financial Results 25 Key Program Launches (cont.) Key Program Wins CherryHub A startup FinTech providing a digital ecosystem that connects payments and loyalty for customers onto a single card at leisure and hospitality venues Salary Packaging Zenith in Australia. Payroll – AU GP
Slide 27: Regulatory Update
EML Payments FY2021 Financial Results 26 Regulatory Update CBI Update — EML operates in highly regulated markets around the world including Australia, the United Kingdom, Europe, and the United States. — EML works hard to meet our evolving regulatory requirements in each market and to maintain colla
Slide 28: Regulatory Update
EML Payments FY2021 Financial Results 27 Regulatory Update CBI Update (cont.) — Actions undertaken since EML's acquisition of PCSIL include: • Additional Directors now sitting on the PCSIL Board, including an independent non-Executive Chairman • Implementation of “GBG Predator”, a sophisticated tran
Slide 29: Strategy Update
03 =—MI.. Strategy Update Money in Motion
Slide 30: Strategy delivering growth
EML Payments FY2021 Financial Results 29 Strategy delivering growth Digital Product Strategy Global Technology Infrastructure Creating a universal experience & global platform, Investing in our global technology architecture Investing in strategic partnerships that help EML building out a feature ri
Slide 31: Our product is our platform.
EML Payments FY2021 Financial Results Our product is our platform. Our platform is one of the most feature Payment Solution Suite rich payments platforms globally. Issuer Processor Program Manager Partnerships EMLConnect – Developer Hub Analytics and Insights Portals and UX Platform Management Cards
Slide 32: FY2021 Achievements
EML Payments FY2021 Financial Results 31 FY2021 Achievements Digital Product Strategy Invested in global Built EML CONNECT Enhanced & expanded Launched open Enhanced regional On track to product management (launching FY22) our account based banking proposition in product offerings, launch VISA talen
Slide 33: A new data-driven digital sales model
EML Payments FY2021 Financial Results 32 A new data-driven digital sales model NEW WEBSITE & DEVELOPER HUB In FY22 the new website & a brand new EML Developer Hub developer hub will launch, making it easier for new customers to get the most out of our products INSIGHT DRIVEN LEADS This year we integ
Slide 34: Interchecks
EML Payments FY2021 Financial Results 33 Interchecks Launched our first customer — A fully customisable non-card payment platform giving businesses the choice of how they pay and get paid A fully customisable non-card payment platform — Invested USD2M @ USD20M pre money — Completed integration — Lau
Slide 35: Hydrogen
EML Payments FY2021 Financial Results 34 Hydrogen Platform went live this year — A banking and finance A true out-of-the-box prepaid consumer card solution powered by EML platform that embeds finance solutions for fintechs and SMBs through no/low cost options — Invested USD5M @ USD40M pre money — Co
Slide 36: Open banking will fundamentally change the way we move money
EML Payments FY2021 Financial Results 35 Open banking will fundamentally change the way we move money over the next decade The EML Nuapay product suite couples open banking data enrichment with instant account payment capability to create a modern friction-free digital user experience.
Slide 37: Open banking is gaining momentum globally
EML Payments FY2021 Financial Results 36 Open banking is gaining momentum globally, due to disruptive technology, regulatory changes 29.8% and instant account payments, leading to more CAGR in global real-time payments innovation & competition in financial services (2020-25) Global forecast - A2A pa
Slide 38: Open banking encompasses two core capabilities
EML Payments FY2021 Financial Results 37 Open banking encompasses two core capabilities Send & Receive Send & Receive Real-Time Real-Time Bank Account Payments Transactional Banking Data Non Scheme Payments Open Banking Data Enrichment Objective: to create a faster, safer Objective: to help increase
Slide 39: Nuapay have established themselves as a market leader in open banking
EML Payments FY2021 Financial Results 38 Nuapay have established themselves as a market leader in open banking Full suite of account payment products Feature rich solutions — Open banking: AISP & PISP — Fully configurable white-label — Direct Debits — Refunds — Credit Transfers — Instalments — Insta
Slide 40: Customers can top up their gaming account in under 30 seconds
EML Payments FY2021 Financial Results 39 Customers can top up their gaming account in under USE CASE 30 seconds & collect winnings or payouts instantly This experience surpasses existing payments which can take up to 2-3 minutes to complete and sometimes 3-5 business days to clear funds, with onerou
Slide 41: Nuapay is transforming recurring bill payments
EML Payments FY2021 Financial Results 40 Nuapay is transforming recurring bill payments USE CASE Leading innovative product that digitises the direct debit experience powered STEP 1 STEP 2 STEP 3 STEP 4 COMPLETE by open banking — Ability to verify bank account ownership in real-time — No more paper
Slide 42: A new modern and effortless payroll & earned-wage-access solution
EML Payments FY2021 Financial Results 41 A new modern and effortless payroll & earned-wage-access USE CASE solution for both employers & employers An integrated solution that provides a superior customer experience — Instant & flexible payment options — One stop portal to for full visibility & to re
Slide 43: A fully white label solution for customers to pay you
EML Payments FY2021 Financial Results 42 A fully white label solution that creates a fast USE CASE & safe way for your customers to pay you SIMPLE FAST 80% of payers say open Customers pay in as banking is “easier” or little as 20 seconds “as easy as” PayPal (half the time a card takes!) MOBILE NATI
Slide 44: By combining our capabilities we create a world-first platform
EML Payments FY2021 Financial Results 43 By combining our capabilities we create a world-first platform to offer customers ultimate choice EML CUSTOMERS NUAPAY CUSTOMERS Banks & Financial BNPL & Lenders Fintechs & Neo Banks Retail Software Platforms Fintechs Services Payroll & Payouts & Gaming Rewar
Slide 45: Our people propel our performance
EML Payments FY2021 Financial Results 44 Our people propel our performance Commitment Strengthened to building Build for global our ethical a diverse scale & agility business & inclusive practices business — Talent acquisition continued — Maintained our 50:50 — In 2021 we've taken additional through
Slide 46: Sustainability.
EML Payments FY2021 Financial Results 45 Sustainability. Our Commitment EML is proud to have Our metrics 2021 2020 2019 converted 20% of our plastic card Headcount (permanent employees) 540 444 266 orders to an ecofriendly option Employee engagement score 66% 70% 68% Complying with Actively pursuing
Slide 47: QSA
O4 =MI.. QSA Money in Motion
Slide 48: Analyst Briefing Data
05 =MI.. Analyst Briefing Data Money in Motion
Slide 49: Analyst Briefing Data - FY19-FY21
EML Payments FY2021 Financial Results 48 Analyst Briefing Data - FY19-FY21 Key Metrics ($’000s) H1 2019 H2 2019 FY2019A H1 2020 H2 2020 FY2020 H1 2021 H2 2021 FY 2021 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths Headcount (closing) 236 275 275 272 450 450 486 540 540 Total St
Slide 50: Analyst Briefing Data - FY19-FY21
EML Payments FY2021 Financial Results 49 Analyst Briefing Data - FY19-FY21 Key Financials ($’000s) H1 2019 H2 2019 FY2019 H1 2020 H2 2020 FY2020 H1 2021 H2 2021 FY2021 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths General Purpose Reloadable $1,392,659 $1,346,678 $2,739,337 $1,
Slide 51: Analyst Briefing Data - FY19-FY21
EML Payments FY2021 Financial Results 50 Analyst Briefing Data - FY19-FY21 Key Financials ($’000s) H1 2019 H2 2019 FY2019 H1 2020 H2 2020 FY2020 H1 2021 H2 2021 FY2021 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths Revenue (includes interest income) $47,194 $50,001 $97,195 $59,
Slide 52: Analyst Briefing Data - Guidance FY22
EML Payments FY2021 Financial Results 51 Analyst Briefing Data - Guidance FY22 EML GROUP GUIDANCE RANGE Key Financials ($’000s) FY2021 FY2022 General Purpose Reloadable $9,742,596 Gift & Incentive $1,106,303 Virtual Account Numbers $8,829,487 GDV $ 19,678,390 $93bn - $100bn Revenue $ 194,176 $220m -
Slide 53: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com