Slide 1: Results for the half year ended 30 September 2023
Results for the half year ended 30 September 2023 Highly confidential
Slide 2: Agenda
Open Banking Agenda 2 1 Overview 2 Financial review 3 Strategy update 4 Divisional review 5 Outlook 6 Q&A
Slide 3: H1 FY24 Overview
Open Banking 3 H1 FY24 Overview Resilient financial performance delivered with significant progress in parcels, 1 card processing, Open Banking and a return to growth in Park Christmas Savings Results testimony to transformation of business over the past 3-4 years, 2 delivered against significant he
Slide 4: Resilient financial performance with further strategic progress
ResilientOpen financialBanking 4 performance with further strategic progress SHOPPING E-COMMERCE PAYMENTS AND BANKING LOVE2SHOP H1 H1 H1 H1 H1 H1 H1 H1 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 H1 H1 £30.8m £32.1m £3.0m £5.1m £25.7m £25.1m £17.5m FY23 FY24 net +4.2% net +71.8% N/A net net net -2.3% ne
Slide 5: Financial review
Financial review Highly confidential
Slide 6: Financial highlights
Financial highlights 6 6 Half year ended 30 September 2023 2022 £m £m Change Revenue 126.5 75.4 67.8% Net revenue1 79.8 59.5 34.1% See slide 8 Underlying EBITDA2 31.1 28.3 9.9% Underlying profit before tax (profit before tax excluding adjusting items)3 21.8 23.6 (7.5)% See slide 7 Adjusting items4 (
Slide 7: Group underlying PBT bridge versus previous year
7 Half 2 .1 % year inc re as eGroup in PBT PBT view vs. previous year 7 £28m £27m (£1.6m) £26m £2.1m £1.0m (£2.4m) £25m £1.3m £24m (£0.4m) £23m £1.1m (£1.8m) £26.4m £22m £1.5m £25.4m £2.8m increase on H1 FY23 £24.9m £21m (4.7%) £23.6m £23.6m £20m £21.8m £21.0m £19m 2 £18m Reported PBT Exceptional Ad
Slide 8: Continued net revenue growth in all divisions
4.7% net Co ntrevenue growth ind ivis PayPoint Segment 8 inue d ne t re ve nue g ro w t h in all io ns 8 Half year ended 30 September 2023 2022 Change Change £m £m £m % Shopping 32.1 30.8 1.3 4.2% - Service fees 9.7 8.9 - Card payments 16.4 15.9 - ATMs & Counter Cash 4.5 4.8 - Other 1.5 1.2 E-commer
Slide 9: Cost base to support higher investment in key revenue drivers
Cost base tore assupport e s f ro m inve s thigher me nt in ke yrevenue 9 Co s t inc are as t o d rive re ve nue s 9 £m 60 55 50 £19.3m 45 40 £0.4m £58.0m £0.5m £1.0m (£1.1m) £0.9m 35 30 £38.7m £37.0m £35.9m £35.9m £36.8m £37.3m 25 20 Reported costs HY Remove adjusting Rebased cost HY Asset leasing
Slide 10: Cash generation of £15.6m
Cash S t ro ng c generation of £15.6m 10 as h g e ne rat io n o f £ 2 8 .3 millio n 10 Half year ended 30 September 2023 2022 Change £m £m £m Profit before tax 17.2 21.0 (3.8) Exceptional items 0.6 1.5 (0.9) Depreciation and amortisation 9.7 4.7 5.0 Share based payments / other 0.7 0.3 0.4 Working c
Slide 11: Balance sheet
11 Balance S t re ng t hesheet – reflecting ne d b alanc e s he e t , ne t d eAppreciate b t re d uc e d b y £acquisition 4 .5 m 11 Sept Mar Change 2023 2023 £m £m £m Goodwill 117.3 117.3 - Other intangible assets 71.2 75.3 (4.1) Net investment in finance lease receivables 0.9 1.7 (0.8) Property, pl
Slide 12: Financing & Dividend
Financing Financ ing & Divid e& nd Dividend 12 12 Financing & future outflows Dividend declared • Financing facilities have been renegotiated with existing banks (Barclays, BOI, Lloyds) to • 19.0p, an increase of 2.2% vs the final dividend declared on of 18.6p facilitate the Appreciate Group acquisi
Slide 13: Strategy update
Strategy update Highly confidential
Slide 14: Unlocking new customers, markets and growth
Open Banking 14 Unlocking new customers, markets and growth The Group’s materially enhanced platform leverages new capabilities to unlock new customers, new markets and new growth opportunities Enabling payments and commerce for the public and private sector, serving millions of consumers across the
Slide 15: Five key areas to deliver £100m EBITDA in three years
Open Banking 15 Unlocking new customers, markets and growth Focus on 5 key areas of Group’s enhanced platform, driving new opportunities, growth and enabling the delivery of £100m EBITDA in three years (FY26): 1 Parcels and Network Expansion 2 Open Banking and Digital Payments 3 Love2shop and Park C
Slide 16: Expanding Collect+ network to support growth
Openthe Banking 16 Expanding Collect+ network to support growth Identifying in-fill opportunities, complementing existing Collect+ network coverage, to strengthen estate 1 and increase convenience for consumers: Three expansion areas Our unique strengths Transport locations Attractiveness of 1 lever
Slide 17: New strategic partnership with Yodel and Vinted
Open partnership Banking with Yodel and Vinted 17 New strategic 1 Multi-year agreement will see significant transaction growth processed through the recently launched Collect+ Store to Store service, as well as Store to Home: Growth in Vinted driven by dramatic rise in popularity of selling and sour
Slide 18: Digital payments acceleration across sectors
Open Banking 18 Digital payments acceleration across sectors Highly differentiated payments platform (MultiPay), uniquely supporting integrated payments across cash, direct 2 debit, cards, Open Banking and support tools, and driving future growth across multiple sectors: POBL Housing Sheffield City
Slide 19: Growth in Open Banking
GrowthOpen Banking 19 in Open Banking Leading enterprise-level Open Banking solutions, opening up new sectors, revenue streams and enhancing our 2 PayPoint OpenPay proposition: PayPoint is now one of the UK’s Top 10 leading Open Banking payment processors for PISP COP AIS PISP (Confirmation of Payee
Slide 20: Leveraging the PayPoint network to drive new sales channels
Open Banking 20 Leveraging the PayPoint network to drive new sales channels 3 Love2shop Physical Gift Card Rollout PayPoint Park Super Agent Rollout 2,600+ 1,500+ multiple retailer sites now live for retailers recruited Christmas 2023 (as of 15 November 2023) • Exclusive partnership with The Federat
Slide 21: Driving incremental billings growth in Love2shop
Open Banking 21 Driving incremental billings growth in Love2shop 3 Expansion of Love2shop Essentials and Corporate Future Opportunities Now Live Card Factory x New Corporate API’s and Love2shop added to Government Frameworks Love2shop Partnership • Investment in IT to develop • Rollout of joint Gree
Slide 22: Continuing importance of access to cash in communities
Open Banking 22 Continuing importance of access to cash in communities PayPoint plays a vital role in delivering innovation and serving 4 community cash access and banking services across the UK: Cash Usage in the UK* • Cash deposit and withdrawal services for • 5.4m adults are still cash dependant
Slide 23: Community service provision to drive value to retailers
Open Banking 23 Community service provision to drive value to retailers Vital service provision and commerce enablement for retailer partners, offering technology and choice of 5 customisable services tailored to their business and community: FMCG Parcel Services Access to Cash Net Promoter Score +4
Slide 24: Divisional review
Divisional review P| PayPoint Group
Slide 25: Shopping division: strong performance
Shopping S ho p p ing Divis iodivision: strong performance 25 n 25 Shopping Division H1 FY23 H1 FY24 Key drivers Provision of digital solutions, technology £30.8m £32.1m Growth in PayPoint One and +4.2% and payment services net revenue net revenue service fee for SMEs and Strong card payment retaile
Slide 26: Enhancing our retailer & SME proposition
Enhancing Enha ncour retailer re t a ile r & S& MESME p ro p o s itproposition 26 ing o ur io n 26 Shopping Division H1 FY24 Progress • Further enhancements delivered to our SME and retailer proposition: • good growth in our FMCG consumer engagement proposition, PayPoint Engage, delivering brand cam
Slide 27: E-commerce division: continued momentum
E-commerce E- Co mme rc e Divis iodivision: continued momentum 27 n 27 Key drivers E-Commerce Division H1 FY23 H1 FY24 Development of e-commerce delivery Collect+ is our £3.0m +71.8% £5.1m platform yielding strong year on year net revenue transaction growth technology-based net revenue platform to d
Slide 28: Strong parcels growth and carrier service expansion
Strong Sparcels t ro ng p arc e ls g growth 28 ro w t h and c arrie r s e rvic e e xp ans io n 28 E-Commerce Division H1 FY24 Progress • Excellent transaction volumes, achieving milestone of a 2 million parcels week in August, driven by continued growth in Vinted, the launch of Consumer Send for Fed
Slide 29: Payments & Banking division: digital growth
Payments & Banking division: digital growth 29 Pa yme nt s & Ba nking Divis io n 29 Payments & Banking Division Key drivers H1 FY23 H1 FY24 We deliver a channel Built payment channel agnostic platform, £25.7m £25.1m supporting diversification to digital agnostic payment net revenue net revenue platf
Slide 30: Strong digital performance
Strong digital performance 30 30 Payments & Banking Division H1 FY24 Progress • Continued progress in digital net revenue, with growth of +9.1% versus H1 FY23 • Further expansion of our client relationships with our enhanced integrated payments platform, including: • launching with POBL Housing and
Slide 31: Love2shop division: return to growth
Love2shop division: return to growth 31 Pa yme nt s & Ba nking Divis io n 31 Love2shop Division H1 FY24 Key drivers We provide employee and customer £17.5m rewards and prepaid net revenue Growth and investment in Corporate rewards and savings solutions to engagement platform thousands of 21.9% Retur
Slide 32: Love2shop division progress
Love2shop division 32 32 Love2shop Division H1 FY24 Progress • Park Christmas Savings - a return to growth in billings for the first time since 2018, with the best retention rate for direct customers delivered to date of 77.9% and a growth in the agency size to an average of 4.49 savers per agent. I
Slide 33: Building a delivery focused and inclusive organisation
33 Building Build ing a d ea livedelivery ry f o c us e d o rgfocused and anis at io n and c ult ure inclusive organisation 33 PayPoint Group H1 FY24 Progress • Good progress against our ESG programme, with new hybrid cars introduced to our fleet in April 2023, replacing diesel company cars and petr
Slide 34: Outlook
Outlook P| PayPoint Group
Slide 35: Outlook
Outlook 35 Out lo o k 35 • We have delivered strong results in a growing number of key areas in the first half. Our enhanced platform and expanded capabilities across the Group, combined with our business-wide partnership philosophy and intensity of execution, give the Board confidence in delivering
Slide 36: Investment case
Investment case 36 Ye ar o n ye ar vie w ac ro s s d ivis io ns and s ub - d ivis io ns 36 PayPoint Group Enabling payments and commerce for the private and public sector 1 Materially enhanced platform and capabilities, underpinned by partnership philosophy 2 Strong SME and retailer partner proposit
Slide 37: Q&A
Q&A 37 Q&A 37 Q&A Results for the half year ended 30 September 2023
Slide 38: Appendix
Appendix P | PayPoint Group
Slide 39: Business division mapping
Business Bus ine s s d ivis io ndivision mapping 39 map p ing 39 Division Sub-division Lower level PayPoint One/EPoS Retail Services Counter Cash/ATMs Handepay/Merchant Rentals card payments Shopping and leasing Card payments PayPoint card payments RSM 2000 card payments E-Commerce E-Commerce Collec
Slide 40: Year on year view across divisions and sub-divisions
YOY Ye ar o n view ye ar vie w across divisions and sub-divisions 40 ac ro s s d ivis io ns and s ub - d ivis io ns 40 Net revenue Division Sub-division H1 FY24 H1 FY23 Retail Services £15.7m £15.0m Shopping Card payments £16.5m £15.8m E-Commerce E-Commerce £5.1m £3.0m Digital £6.4m £5.9m Payments &
Slide 41: EBITDA
EBITDA 41 Ye ar o n ye ar vie w ac ro s s d ivis io ns and s ub - d ivis io ns 41 EBITDA/Underlying EBITDA (£m) Half year ended 30 Sept 2023 Half year ended 30 Sept 2022 FY24 FY23 Profit before tax 17.2 21.0 Add back: Net interest expense 3.6 1.0 Depreciation & Amortisation – 9.7 4.8 including amort