Evertec, Inc. · NYSE:EVTC
Evertec — Investor Presentation (August 2022)
27 slides from Evertec's investor presentation, August 2022
Slide 1: Investor Presentation
Investor Presentation August 2022
Slide 2: Forward-looking Statements; Use of Non-GAAP Measures
Forward-looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, an
Slide 3: Investment Highlights
Investment Highlights 1 Business Overview 2 Performance Highlights & Trends 3 Strategic Transformation 4 Financial Summary Appendix
Slide 4: Business Overview
1 Business Overview 28% evertec
Slide 5: Business Overview
Business Overview Revenue Leading provider of products and solutions across merchant ($ in millions) acquiring, payment processing, and business process management 19A – 21A CAGR: 10% $590 $612 $487 $511 Serves a diversified customer base of financial institutions, merchants, corporations and go
Slide 6: Comprehensive Suite of Value-Adding Payment Services
Comprehensive Suite of Value-Adding Payment Services Merchant Acquiring Risk Management A wide range of solutions to accept Analytical and integral fraud payments in-store, online, on apps and management solutions, designed to through other channels improve your business decision-making Acquiring Pr
Slide 7: Mission Critical Services Provide for Re-Occurring Revenue Profile
Mission Critical Services Provide for Re-Occurring Revenue Profile Payment Services Payment Services Merchant Acquiring Business Solutions PR & Caribbean LATAM Segment Revenue Segment Revenue Segment Revenue Segment Revenue $ in millions $ in millions $ in millions $ in millions $244 $217 $235 $144
Slide 8: Growing Digital Platform
Growing Digital Platform Evertec’s ATH Network PlacetoPay: Evertec’s Digital Payments Platform Active Presence Launching Payment interface through Own and operate PIN debit Web Checkout Lightbox functionality Analyzing / Sizing Services 2,000+ ATMs providing a network enabling merchants to host of v
Slide 9: Key Partnerships and Target Industries
Key Partnerships and Target Industries Target Industries Payment acceptance and • Acquired 65% stake in Processa, a diversified payment processor business solutions designed 2016 Colombia • Remaining participation held by Compensar, Colombia’s second largest Merchants for merchants in the retail, so
Slide 10: Experienced Management Team
Experienced Management Team Mac Schuessler Joaquin Castrillo Luis A. Rodríguez President and CEO EVP and Chief Financial Officer EVP and Chief Legal and +10 years of experience with Evertec Administrative Officer +7 years of experience with Evertec. Formerly with PwC in the Banking and Capital +7 ye
Slide 11: Performance Highlights & Trends
Performance Highlights & Trends
Slide 12: Successful Execution on Geographic Diversification
Successful Execution on Geographic Diversification Evertec continues to leverage its strength in existing markets to win new opportunities throughout LATAM 2015 Today Dominican Republic Dominican Republic Mexico Puerto Rico Mexico Puerto Rico Panama Panama Guatemala Guatemala Costa Rica Costa Rica C
Slide 13: Leading Payments Provider in Attractive, Underpenetrated Markets
Leading Payments Provider in Attractive, Underpenetrated Markets Commentary GDP ($ in billions)(2) We believe we are the: Puerto Rico 103 Leading merchant acquirer in the Caribbean / Central America Costa Rica 62 Leading card issuer processor & ATM network in the Caribbean Peru 202 One of the
Slide 14: Resilient Performance Despite Macro Headwinds
Resilient Performance Despite Macro Headwinds Despite multiple Puerto Rican headwinds, Evertec has continued to grow 13.3% 8.8% 9.5% 6.5% 2.9% 1.1% 1.1% 1.5% 1.0% (1.0%) (1.3%) (2.9%) (4.1%) (3.9%) Δ% in Evertec's revenues from Puerto Rico Δ% in Puerto Rico’s Gross Domestic Product 2015 2016 2017 20
Slide 15: Capital Allocation Framework
Capital Allocation Framework Invest for Target leverage of Return Capital to growth 2.0x – 3.0x Shareholders • Significant cash flow generation • Financial covenant of up to 4.0x • Current annual dividend of ~$14M(1) • Capacity to execute on strategic M&A total secured net leverage ratio as • ~$35M
Slide 16: Disciplined Financial Policy and Proven Ability to De-lever
Disciplined Financial Policy and Proven Ability to De-lever Evertec is committed to sustaining a balanced credit profile while achieving profitable growth Proven Ability to Reduce Debt & Leverage ($ in millions) $742 $699 $674 $663 $625 $545 $533 $501 $469 $458 4.0x 3.6x 3.5x 3.4x 3.3x 2.3x 2.1x 1.9
Slide 17: Strategic Transformation
3 Strategic Transformation 28% evertec
Slide 18: Strategic Initiatives to Drive Growth
Strategic Initiatives to Drive Growth Merchant Acquiring Payment Services (PR & Caribbean) 1 2 Create leading digital payment experience by Leverage local capabilities to develop expanding ATH Móvil‘s value proposition and market specific products integrating PlacetoPay gateway Optimize pricin
Slide 19: Our Strategic Transformation
Our Strategic Transformation Identified strategic imperatives since 2015 1 2 3 4 5 Expand Accelerate Transform BPOP Invest in and geographic product Strengthen BPOP relationship & improve service footprint in Latin development and relationship increase M&A & infrastructure America through innovation
Slide 20: Strengthening Our Relationship with Popular
Strengthening Our Relationship with Popular Recent Transaction Details Financial Impact 10-year extension of Merchant Acquiring to 2035 Revenue share to be accounted as an expense to the Merchant Acquiring segment, reducing margin post-closing Revenue share with Popular Evertec will give Pop
Slide 21: Financial Summary
4 Financial Summary
Slide 22: Key Financial Highlights
Key Financial Highlights Revenue ($ in millions) Adj. EBITDA ($ in millions) $590 $612 $487 $511 $295 $294 $226 $240 2019 2020 2021 LTM 6/30/2022 2019 2020 2021 LTM 6/30/2022 % % 7% 5% 16% 9% 45% 47% 50% 48% growth margin CapEx ($ in millions)1 Non-GAAP Adj. EPS $2.74 $2.69 $1.96 $2.07 $60 $67 $66 $
Slide 23: Appendix
an ig Appendix i < A AG _~ “8 evertec
Slide 24: Non-GAAP Reconciliation Summary
Non-GAAP Reconciliation Summary The non-GAAP measures referenced in this release material are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not m
Slide 25: Non-GAAP Reconciliation Annual Results Summary
Non-GAAP Reconciliation Annual Results Summary GAAP Net Income to Adjusted EBITDA ($ in millions) 2018 2019 2020 2021 LTM Q2 2022 Net Income $ 86.6 $ 103.7 $ 104.9 $ 161.1 $ 148.8 Income tax expense 12.6 13.0 19.0 20.6 27.1 Interest expense, net 29.3 27.6 23.5 20.9 20.2 Depreciation and amortization
Slide 26: Non-GAAP Reconciliation Annual Results Summary
Non-GAAP Reconciliation Annual Results Summary Net Debt to Adjusted EBITDA ($ in millions) 2018 2019 2020 2021 LTM Q2 2022 Unrestricted Cash ($69.9) ($111.0) ($202.6) ($266.3) ($285.0) Total Debt 545.3 533.4 501 468.6 457.9 Net Debt $475.40 $422.40 $298.40 $202.30 $172.90 Adjusted EBITDA 212.5 226.2
Slide 27: the technology of possibility
the technology of possibility