Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q2 2022 Earnings Presentation
24 slides from Euronet Worldwide's earnings presentation, Jul 28, 2022
Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results PRESENTERS: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP AND CFO HOPE GREGG, ASSOCIATE GENERAL COUNSEL 27 July 2022 | Slide 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this news release that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking
Slide 3: Defined Terms
Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of
Slide 4: Financial Highlights Second Quarter 2022
Financial Highlights Second Quarter 2022 RICK L. WELLER, EVP & CFO 27 July 2022 | Slide 4
Slide 5: Financial Highlights Second Quarter 2022
Financial Highlights Second Quarter 2022 ‣ Revenue - $843.3 million ‣ 18% increase from $714.7 million for Q2 2021 ‣ 28% increase on a constant currency basis ‣ Operating Income - $101.1 million ‣ 236% increase from $30.1 million for Q2 2021 ‣ 279% increase on a constant currency basis ‣ Adjusted EB
Slide 6: Balance Sheet Overview
Financial Highlights Second Quarter 2022 Balance Sheet Overview USD 3/31/2022 6/30/2022 (in millions) Unrestricted Cash $ 986.5 $ 1,014.9 ATM Cash 644.4 890.8 Settlement Assets 1,037.4 1,057.4 Total Assets 4,898.3 5,195.5 Total Debt 1,768.2 2,094.0 Total Debt to Trailing Twelve Month Adjusted EBITDA
Slide 7: Same Quarter Prior Year Comparison
Financial Highlights Second Quarter 2022 Same Quarter Prior Year Comparison USD (in millions) Revenue Operating Income (Loss) Adjusted EBITDA Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 EFT Processing $ 113.5 $ 249.0 $ (25.3) $ 54.8 $ (3.1) $ 80.5 % Change 119% 317% 2497% epay 243.9 227.7 27.2 2
Slide 8: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights Second Quarter 2022 Same Quarter Prior Year Comparison – Constant Currency* USD (in millions) Revenue Operating Income (Loss) Adjusted EBITDA Q2 2021 Q2 2022* Q2 2021 Q2 2022* Q2 2021 Q2 2022* EFT Processing $ 113.5 $ 277.5 $ (25.3) $ 60.9 $ (3.1) $ 89.4 % Change 144% 341% 2984%
Slide 9: Foreign Currency Changes since 2019
Foreign Currency Changes since 2019 27 July 2022 | Slide 9
Slide 10: Rollforward Expectations
Rollforward Expectations 27 July 2022 | Slide 10
Slide 11: Business Update
Business Update MICHAEL J. BROWN, CHAIRMAN & CEO 27 July 2022 | Slide 11
Slide 12: Everything has changed, but nothing has changed…
Everything has changed, but nothing has changed… ‣ Everything has changed… ‣ The travel and hospitality industries did not adequately prepare for high demand for travel ‣ The conflict in Ukraine has become a longer-term problem with a significant global impact ‣ Inflation has risen to 40-year histor
Slide 13: EFT Quarterly Highlights
EFT Quarterly Highlights ‣ Expanded Distribution: ‣ Launched: ‣ Independent ATM Network in Iceland ‣ Multi-currency prepaid platform for EbixCash, one of India’s leading financial exchanges specializing in travel and forex ‣ Signed: ‣ Agreement with the Spanish Post Office to install at least 1,500
Slide 14: epay Quarterly Highlights
epay Quarterly Highlights ‣ Launched: ‣ Digital distribution of branded payments through Aircash, a leading mobile wallet in Europe ‣ T-Mobile activation program to independent dealer channel in the US ‣ iTunes in the two largest e-commerce platforms in Turkey, Hepsiburada and Trendyol ‣ Digital dis
Slide 15: Money Transfer Quarterly Highlights
Money Transfer Quarterly Highlights ‣ Network Growth: ‣ Our network reaches: ‣ 504,000 total retail network locations, a 3% increase vs. Q2 2021 ‣ 182 countries and territories* ‣ 3.6 billion bank accounts and 442 million wallet accounts ‣ Correspondent Expansion: ‣ Launched 20 new correspondents in
Slide 16: Update
Update Dandelion has garnered interest from banks, Fintechs, MSBs, & Payments companies. Dandelion signs ACBB Atlantic Community Bankers Bank enhances operations of 400+ US financial institutions, representing $500+ billion (US) in assets. Our real-time bank payments network grew 79% Q2 Countries Q1
Slide 17: Euronet Technology Success Update
Euronet Technology Success Update ‣ Signed open loop issuer processing and switching agreement with GXS (Grab Digital Bank) in Singapore ‣ Signed digital payment and issuer processing agreement with Bank Neo Commerce in Indonesia ‣ Signed card processing and BIN sponsorship agreement with Kimobill O
Slide 18: Conclusion
Conclusion ‣ Our balance sheet remains strong providing stability and flexibility in our operations ‣ The underlying fundamentals of our business are strong ‣ The EFT travel recovery has been robust and will continue as issues across the travel industry are resolved ‣ epay continues to expand mobile
Slide 19: Supplemental Data
Supplemental Data 27 July 2022 | Slide 19
Slide 20: Supplemental Data
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended June 30, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 57.1 Add: Income tax expense 20.7 Add: T
Slide 21: Supplemental Data
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Three months ended June 30, 2021 EFT Money Corporate Processing epay Transfer Services Consolidated Net Income $ 8.6 Add: Income tax expense 12.4 Add: Total
Slide 22: Supplemental Data
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Revenue, Operating (Expense) Income and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) (unaudited - in millions) Three months ended ended June 30, 2022 EFT Money Corporate Processing epay Transfer Services
Slide 23: Supplemental Data
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Three Months Ended June 30, 2022 2021 Net income attributable to Euronet Worldwide, Inc. $ 57.3 $ 8.6 Foreign currency exchange loss (gain) 14.7 (0.1) In
Slide 24: Thank You
Thank You EURONET WORLDWIDE, INC. 27 July 2022 | Slide 24