Cass Information Systems, Inc · NASDAQ:CASS
Cass Information Systems — Investor Presentation (2021)
34 slides from Cass Information Systems's investor presentation, 2021
Slide 1: The Power to Deliver Solutions
The Power to Deliver Solutions Around the world, leading enterprises rely on Cass for our vertical expertise, processing power, and global payment network to execute critical financial transactions while driving greater control and efficiency across critical business expenses. 2021 INVESTOR PRESENTA
Slide 2: Contents
Contents Forward-Looking Statements 3 Cass at a Glance 4 Financial Highlights 6 Interest Rate Trends 8 Key Earnings Growth Strategies 9 Growth and Performance Trends 10 How Cass Creates Value 17 Shareholder Information 32 Board of Directors 33 Executive Officers 34 www.cassinfo.com | © 2021 Cass Inf
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “poten
Slide 4: Cass At A Glance
Cass At A Glance TOTAL ASSETS MARKET CAP $2.2B $610M TOTAL REVENUE GLOBAL OPERATIONS $145M Global service locations As of 12/31/20 www.cassinfo.com | © 2021 Cass Information Systems 4
Slide 5: About Cass
About Cass Cass is a leading provider of integrated information THE CASS MISSION and payment management solutions. Cass enables enterprises to achieve visibility, control, To be a strong, and efficiency in their supply chains, communications networks, facilities, and other operations. Disbursing mor
Slide 6: Five-Year Financial Highlights
Five-Year Financial Highlights Net Revenue Net Income Diluted Earnings/Share Key Points: (in millions of dollars) (in millions of dollars) (in dollars) Profitability and 2.07 revenue declined in 2.03 148.3 157.2 145.0 30.3 30.4 1.73 2020 due to historically 125.5 135.3 25.0 25.2 1.63 1.68 24.3 low i
Slide 7: Five-Quarter Financial Highlights
Five-Quarter Financial Highlights Net Revenue Net Income Diluted Earnings/Share (in millions of dollars) (in millions of dollars) (in dollars) 7.5 0.52 38.9 38.1 37.1 6.4 6.4 33.9 35.7 5.4 5.8 0.43 0.40 0.44 Key Points: 0.37 Pandemic impacts were clearly felt in 2Q20, though performance improved in
Slide 8: 10-Year UST and Federal Funds Rate
10-Year UST and Federal Funds Rate 3.5 3 UST Rate Key Points: A decline in interest 2.5 rates and/or an extended period of low rates has 2 a negative impact on our Percent revenue, as less interest 1.5 income is earned on our payables and 1 deposit balances. 0.5 Federal Funds Rate 0 2012 2013 2014 2
Slide 9: Key Earnings Growth Strategies
Key Earnings Growth Strategies Improve Achieve Improve Return on Organic Efficiency and Funding Core Growth Effectiveness Improve return on funding Achieve organic growth in Continue to evaluate options despite the persistent low our core business lines of to become more efficient and interest rate
Slide 10: Five-Year Balance Sheet Growth
Five-Year Balance Sheet Growth Loans Payments in Advance Deposits (in millions of dollars) of Funding (in millions of dollars) (in millions of dollars) 892 1,051 722 773 Key Points: 665 686 206 195 722 757 161 622 678 139 Our loan growth in 2020 105 included $109.0 million of PPP loans. 2016 2017 20
Slide 11: Five-Year Transaction Growth
Five-Year Transaction Growth Transportation Invoice Expense Management Payment and Processing Transaction Volume Invoice Transaction Fee Revenue (in millions) Volume (in millions) (in millions of dollars) 35.5 37.5 36.0 34.4 33.2 27.7 28.7 27.5 27.3 102.2 108.0 97.2 23.5 93.3 83.7 Key Points: Invoic
Slide 12: Five-Quarter Transaction Growth
Five-Quarter Transaction Growth Key Points: Transportation Invoice Expense Management Payment and Processing Transaction Volume Invoice Transaction Fee Revenue Transportation volumes (in millions) Volume (in millions) (in millions of dollars) bottomed during 2Q20 8.66 8.95 7.12 6.96 27.4 27.1 and re
Slide 13: Five-Year EPS Trend
Five-Year EPS Trend (diluted) Earnings per share (diluted) Dividends declared per share $0.60 Key Points: The pandemic caused $0.50 EPS to contract in 2020. $0.40 EPS improved from a low point in 2Q20 as volumes accelerated $0.30 from the height of the pandemic. $0.20 Dividends have increased signif
Slide 14: Five-Year Book Value Per Share
Five-Year Book Value Per Share (in dollars) 18.15 16.82 15.27 15.72 14.09 Key Points: Book value per share growth continued as a result of sustained profitability. 2016 2017 2018 2019 2020 www.cassinfo.com | © 2021 Cass Information Systems 14
Slide 15: 10-Year CASS Stock Performance
10-Year CASS Stock Performance 80 70 Key Points: 60 While Cass stock price declined as a result of the 50 negative impact the pandemic had on our Share Price 40 revenue and overall profitability, recovery has 30 been strong and steady starting in 2Q20. 20 10 0 2012 2013 2014 2015 2016 2017 2018 2019
Slide 16: Regulatory Capital
Regulatory Capital Key Points: Cass Commercial Bank Cass Information Systems Basel III Requirement All regulatory capital 20.21% levels are strong Common Equity Tier 1 Risk-Based at December 31, 2020 20.41% and well above Basel III requirements. 20.21% Tier 1 Risk-Based Cass Information 20.41% Syste
Slide 17: How Cass Creates Value
How Cass Creates Value At Cass, we provide the means to accept We are the trusted third party, validating highly diverse inputs spanning paper, digitized pricing and contractual agreements. documents, digital data, and data feeds in We are recognized by the high level of multiple formats. service we
Slide 18: Freight Audit and Payment
Freight Audit and Payment Description of Business Value Proposition Multi-national corporations rely on Cass to We empower our customers to understand, control, provide increasingly sophisticated solutions and optimize their transportation costs. Clients that enable best practices in transportation
Slide 19: 2020 Highlights
FREIGHT AUDIT AND PAYMENT 2020 Highlights 2020 presented several unprecedented Despite these challenges, we were able to achieve the challenges. The manufacturing sector, which is following key accomplishments: the largest portion of our customer base, was hit significantly by the COVID-19 pandemic.
Slide 20: Shippers Who Trust Cass
FREIGHT AUDIT AND PAYMENT Shippers Who Trust Cass www.cassinfo.com | © 2021 Cass Information Systems 20
Slide 21: Facility Expense Management Services
Facility Expense Management Services Description of Business Value Proposition Cass processes and pays customers’ invoices Clients rely on accurate utility usage and cost data to for electricity, gas, water, and waste, plus make informed risk management and expense more than 50 other facility-relate
Slide 22: 2020 Highlights
FACILITY EXPENSE MANAGEMENT SERVICES 2020 Highlights Managing through the challenges of 2020 was Additional accomplishments included the following: difficult for many of our end user clients, perhaps most acutely for those in retail, § Maintained fast and accurate throughput of manufacturing, and ho
Slide 23: Telecom, Mobility, and Cloud Expense Management
Telecom, Mobility, and Cloud Expense Management Description of Business Value Proposition Cass delivers outsourced, value-added Clients choose Cass’s telecom and cloud management solutions for telecom expense management solutions to achieve multiple cross-functional objectives. (TEM), managed mobili
Slide 24: 2020 Highlights
TELECOM, MOBILITY, and CLOUD EXPENSE MANAGEMENT 2020 Highlights As businesses coped with the economic This, and the following, were our key accomplishments in 2020: ramifications of the COVID-19 pandemic, particularly in Q2 and Q3 of 2020, many § Delivered uninterrupted, high levels of service while
Slide 25: Major Customers
TELECOM, MOBILITY, and CLOUD EXPENSE MANAGEMENT Major Customers www.cassinfo.com | © 2021 Cass Information Systems 25
Slide 26: Integrated Financial Solutions
Integrated Financial Solutions Description of Business Value Proposition The Cass Integrated Financial Solutions (IFS) Our clients leverage the combination of our sophisticated group develops and markets solutions for platform and payment processing abilities to achieve companies who initiate or rec
Slide 27: 2020 Highlights
INTEGRATED FINANCIAL SOLUTIONS 2020 Highlights 2020 presented both challenges and IFS achieved the following key accomplishments: opportunities for IFS. The COVID-19 pandemic created the need for more companies to § Continued to deliver on-time payments and necessary outsource and convert payments t
Slide 28: Major Customers
INTEGRATED FINANCIAL SOLUTIONS Major Customers www.cassinfo.com | © 2021 Cass Information Systems 28
Slide 29: Cass Commercial Bank
Cass Commercial Bank Description of Business Value Proposition Cass Commercial Bank provides customized Cass Bank clients rely on our value-added approach to financial services products, on a national level banking partnerships that leads to trusted advisor to faith-based ministries and McDonald’s r
Slide 30: 2020 Highlights
CASS COMMERCIAL BANK 2020 Highlights Joining thousands of banks across the The year saw many other key achievements as well: U.S., Cass Commercial Bank was honored to support its community in 2020 by § Flawlessly executed the United States Paycheck Protection Program participating in the government’
Slide 31: Gyve Generosity Services
Gyve Generosity Services Description of Business Value Proposition Gyve Generosity Services provides the Using the Gyve platform, faith-based organizations can resources, tools, vision, and coaching that offer their members six new, modern methods for enable faith-based organizations to increase cha
Slide 32: Shareholder Information
Shareholder Information CORPORATE HEADQUARTERS INVESTOR RELATIONS TRANSFER AGENT Cass Information Systems, Inc. Security analysts, investment Shareholder correspondence 12444 Powerscourt Drive, Suite 550 managers, and others seeking should be mailed to: Saint Louis, Missouri 63131 financial informat
Slide 33: Board of Directors
Board of Directors Eric H. Brunngraber Benjamin F. (Tad) Edwards, IV Joseph D. Rupp Chairman, President, and Chairman, Chief Executive Lead Director and Retired Chairman, Chief Executive Officer Officer, and President, President, and Chief Executive Officer, Benjamin F. Edwards & Company Olin Corpor
Slide 34: Executive Officers
Executive Officers Eric H. Brunngraber Dwight D. Erdbruegger Martin H. Resch Chairman, President, and President, Cass Executive Vice President Chief Executive Officer Commercial Bank and Chief Operating Officer Mark A. Campbell Gary B. Langfitt Matthew S. Schuckman President, Transportation Presiden
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