Slide 1: FY24 Results Presentation
FY24 Results Presentation. Presenters Ron Hynes. Managing Director & Group CEO James Georgeson. Group CFO 28 August 2024
Slide 2: Disclaimer & Important Notice
Disclaimer & Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background infor mation about EML’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be
Slide 3: FY24 Overview and Highlights
FY24 Overview and Highlights.
Slide 4: FY24 Headlines
FY24 Headlines. Completion of strategic priorities set-out in April 2023 Strong financial result and balance sheet repaired 2.0 Platform in place for EML 2.0 Build for Growth 4 4
Slide 5: FY24 achievements
FY24 achievements. Financial Cost Regulatory performance optimisation remediation Growth (underlying) EBITDA Cost out (cash on cash) Successful completion of PFSL Customer revenue up 6% on PCP 57.1m $ building momentum ($5m H2) (UK) regulatory remediation and from continuing businesses with further
Slide 6: Strong core
Strong core. Market Customer Large and growing total ~1000 customers across addressable market 27 markets With proof EML has a right to Diversified, long-term customer base win in key growing payments across Government, corporate, verticals retail and payroll Leaders in payment solutions Financial P
Slide 7: Reshaped EML
Reshaped EML. By market Key Verticals Retail Corporate Incentives Key Verticals Government G&I Retail Revenues: 70% Corporate Incentives GPR G&I North America Revenues: 11% Europe & UK Revenues: 42% GDV: $13.59B GDV: $5.74B GPR Digital Payments Revenues: 58% Revenues: 19% Key Verticals Human Capital
Slide 8: Prepaid market is expected to hit $5.8T
Prepaid market is expected to hit $5.8T. By 2030* Gift & Incentive General Purpose Reloadable Single use cards TAM 2023 TAM 2023 Multi use cards • Continued growth and adaption to the $716Bn $1069Bn • Accelerated appeal with consumer ongoing trend in digitisation adoption of digital wallets • EML we
Slide 9: FY24 Financial Performance
FY24 Financial Performance. Note: Throughout this presentation, amounts may not sum and change calculations may not equate due to rounding.
Slide 10: Key operating performance metrics
Key operating performance metrics. (continuing operations1). Profit and loss2: FY23 to FY24 A$ 'm FY24 FY23 Change — Revenue increased 18% to $217.3m in FY24, with: Customer revenue 167.5 158.6 6% — customer revenue up 6% as solid growth in GPR and Digital was partly Interest revenue 49.8 25.3 97% o
Slide 11: Gift & Incentive
Gift & Incentive. GDV by FY22 to FY24 Financial performance FY23 to FY24 Commentary GDV A$ 'm 1H24 2H24 FY24 FY23 Change — Customer revenue softer as 2H24 impacted by turnover of several accounts, due to a $1.8bn $1.7bn $1.8bn Customer revenue 36.0 35.7 71.7 69.8 3% variety of reasons. Rebuild of th
Slide 12: General Purpose Reloadable
General Purpose Reloadable. (excl PCSIL) GDV by FY22 to FY24 Financial performance FY23 to FY24 Commentary GDV — Customer revenue up 7% on PCP $7.8bn A$ 'm 1H24 2H24 FY24 FY23 Change notwithstanding growth restrictions in place for $7.8bn the UK business for most of FY24 (lifted in April Customer re
Slide 13: Digital Payments
Digital Payments. GDV by FY22 to FY24 Financial performance FY23 to FY24 Commentary GDV — Customer revenue up 12% on PCP, with A$ 'm 1H24 2H24 FY24 FY231 Change growth largely driven by Sentenial in FY24. $136.8bn $136.8bn Customer revenue 11.8 11.6 23.4 20.9 12% — Sentenial contributed revenue of $
Slide 14: Underlying overheads net of Cost Recoveries
Underlying overheads net of Cost Recoveries. (excl PCSIL) Underlying overheads net of Cost Recoveries were $117.3m, up 14% on PCP. Growth has been arrested, as 2H24 costs were down 8% on 1H24 — Management continue to focus on cost optimisation measures, with initial results evident in 2H24 as overhe
Slide 15: Interest income continues to improve
Interest income continues to improve. $49.8m, + 97% vs. PCP Stored float (by currency) at June 2024 Interest income ($’m) — Interest revenue has increased by 97% to $49.8m reflecting improved market rates and optimisation Other Group (excl PCSIL) activities which have earned higher yields. USD 5% 4%
Slide 16: Cash flow
Cash flow. (excl PCSIL) Underlying operating cash flow was $22.0m in the period EBITDA to Underlying Operating cash flow (A$m) — Underlying EBITDA of $49.0m generated $14.1m of net cash from operations. Excluding the impact of restructuring and remediation costs, net operating cash movement was $22.
Slide 17: FY25 Priorities and Outlook
FY25 Priorities and Outlook.
Slide 18: Our Journey
Our Journey. Building EML 2.0 1 Rebuild our sales capability 2 Exploit EML’s right to win Grow Solving today’s Building for Market driven product strategy challenges growth 3 4 Dual horizon tech investment plan - FY24 FY25 Product solve today’s market needs & build Led for the future 5 Refreshed lea
Slide 19: Guidance and outlook
Guidance and outlook. Underlying FY25 EBITDA $54m–$60m guidance* New leadership team currently assessing key work programs Medium term strategic and operational plan to be shared at AGM including: — Market and product focus EML 2.0 — Upweighted management team Building for — Organisational design an
Slide 20: Q&A
Q&A.
Slide 21: Appendix
=MI.. 7 Appendix.
Slide 22: Analyst briefing data: Reconciliation- statutory to management P&L
Analyst briefing data: Reconciliation- statutory to management P&L. Statutory profit and loss FY24 Management profit and loss: Statutory accounts to managements underlying profit and loss Statutory Oth. Inc One offs Underlying A$ 'm FY24 FY23 Revenue from contracts with customers 167.5 - - 167.5 Rev
Slide 23: Analyst briefing data: other income & one off adjustments
Analyst briefing data: other income & one off adjustments. Other income – FY24: Extract from Note A2 of Financial statements One off adjustments – FY24 and FY23 Reported in A$ 'm FY24 FY23 FY24 Underlying Regulatory remediation and class action costs 0.6 14.0 A$ 'm Statutory EBITDA PCSIL Separation
Slide 24: Analyst briefing data: segment profit & loss
Analyst briefing data: segment profit & loss. Segment profit and loss1: FY24 and FY23 FY24 FY23 GPR Digital Continuing GPR Digital Continuing A$ 'm G&I (ex. PCSIL) Payments Corporate Operations PCSIL FY24 G&I (ex. PCSIL) Payments Corporate Operations PCSIL FY23 Customer revenue 71.7 72.4 23.4 167.5
Slide 25: Analyst briefing data: stored value
Analyst briefing data: stored value. Stored float and cash summary A$ 'm FY24 FY23 Total Stored Value (including bonds) - AUD1 2,130.0 2,566.5 Interest revenue 49.8 25.3 Annualised Interest Rate (%)2 ~2.9% ~1.6% Cash opening 71.4 73.7 Operating activities 14.1 (2.6) Investing activities (34.2) (0.9)
Slide 26: Balance sheet
Balance sheet. Balance sheet Cardholder Corporate A$ 'm Jun-24 Jun-23 Change % Funds Balances Cash and cash equivalents 43.1 71.4 (40%) 43.1 Contract assets 51.0 63.2 (19%) 51.0 Intangibles 163.5 192.5 (15%) 163.5 Segregated funds and bond investments 2,147.9 2,576.2 (17%) 2,130.0 18.0 Other assets
Slide 27: Glossary
Glossary. Abbreviation Meaning Abbreviation Meaning Abbreviation Meaning A2A Account-2-Account EBITDA Earnings Before Interest, Taxes, Depreciation TAM Total Addressable Market and Amortisation. AASB Australian Accounting Standards Board EBITDA is equivalent to the net profit/(loss) PCP Prior Compar
Slide 28: Thank you
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