Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q4 2020 Earnings Presentation
33 slides from Euronet Worldwide's earnings presentation, Feb 10, 2021
Slide 1: Fourth Quarter & Full Year 2020 Financial Results
Fourth Quarter & Full Year 2020 Financial Results Presenters: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP & CFO KEVIN J. CAPONECCHI, EVP & CEO EPAY, EFT ASIA PACIFIC & SOFTWARE SCOTT CLAASSEN, GENERAL COUNSEL
Slide 2: Forward-looking statements
Statements contained in this presentation 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 statements as a result of a
Slide 3: Business Update
BUSINESS UPDATE
Slide 4: Definitions of non-GAAP and constant currency 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 changes in for
Slide 5: Exiting 2020 and entering 2021 with significant momentum
Exiting 2020 and entering 2021 with significant momentum • Strong balance sheet enabled the Company to commit to innovations in areas such as digital payments early in 2020 and remain committed to keeping our people. • The diversity of our people, geography, products, and technology provided a solid
Slide 6: Partnership with AMBER Alert Europe; ATMs in the Community Program
Partnership with AMBER Alert Europe • Agreement to publish missing persons alerts on ATM screens in the Netherlands, Spain, and other countries. • 2020 success in Spain: 87 alerts, 458 phone calls, 8 missing people located. ATMs in the Community Program • Fills void in rural European communities whe
Slide 7: International transactions vs. Europe international flights
1 Weekly Withdrawals in Domestic Focused Markets Weekly International Withdrawals 2 Europe Road Travel (Austria, Croatia, Denmark, Germany, Switzerland) (Austria, Bulgaria, Croatia, Cyprus, Czech, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Malta, Netherlands, Norway, Poland, Portugal
Slide 8: Expanded Distribution, Product Diversity, ATM Rollforward
Expanded Distribution • Purchased 700 ATMs from the Bank of Ireland. • Dolphin Debit renewed and expanded ATM outsourcing with Murphy USA convenience stores (260 existing, 450 new US ATMs). • Launched networks and/or signed participation agreements in Lithuania, Romania, Poland, and Spain. Product D
Slide 9: epay: Launched and Signed
Launched • Microsoft Xbox subscriptions with Telstra in Australia and SK Telecom in Korea. • Partnership with Shopee to distribute Microsoft 365 in Indonesia, Malaysia, Philippines, and Singapore. • Twitch, the world’s leading live video streaming service for gamers, across 24 digital retailers in 1
Slide 10: Money Transfer network and correspondent growth
Growth in Send and Payout Network, Correspondents, and Locations • Our network reaches: 159 countries, 464,000 total network locations, a 17% increase vs. Q4 2019. Correspondent Expansion • Signed 15 new correspondent agreements across 14 countries: signed with e-Sewa to offer payout services in Nep
Slide 11: REN Foundation and REV Payments Cloud
REN Foundation and REV Payments Cloud • Migrating Cosmos Bank from its existing system to our modern payment platform and enabling the bank to become a participant in India's real time payment network. • Continue to on-board participant financial institutions to the Mozambique national payment switc
Slide 12: REV Payments Cloud with Amazon Pay and Google Pay
REV Payments Cloud with Amazon Pay and Google Pay • Both digital wallets connect to our epay services through the REV Payments Cloud. • REV provides a single API access for multiple services like mobile top-up processing, bill payments, gaming codes, and other similar services. • REV also enables ne
Slide 13: Financial Highlights Fourth Quarter 2020
FINANCIAL HIGHLIGHTS FOURTH QUARTER 2020
Slide 14: Cash, assets and debt
USD (in millions) 12/31/2019 12/31/2020 Unrestricted Cash $ 786.1 $ 1,420.3 ATM Cash 665.6 411.1 Settlement Assets 1,013.1 1,140.9 Total Assets 4,657.7 4,926.7 Settlement Obligations 1,013.1 1,140.9 Total Debt 1,111.0 1,451.0 Net Debt to Trailing Twelve Month Adjusted EBITDA Multiple 0.5X 0.1X 14
Slide 15: Q4 2020 consolidated results
Revenue - $706.6 million • 2% increase from $693.7 million for Q4 2019 • 2% decrease on a constant currency basis Operating income - $50.2 million • 53% decrease from $107.2 million for Q4 2019 • 56% decrease on a constant currency basis Adjusted operating income - $50.8 million • 53% decrease from
Slide 16: Q4 KPIs
+11% +61% +9% 1,000,000,000 800,000,000 35,000,000 900,000,000 700,000,000 30,000,000 800,000,000 600,000,000 700,000,000 25,000,000 500,000,000 600,000,000 20,000,000 500,000,000 400,000,000 15,000,000 400,000,000 300,000,000 300,000,000 10,000,000 200,000,000 200,000,000 5,000,000 100,000,000 100,
Slide 17: Q4 results by segment
Adjusted Operating Revenue Adjusted EBITDA USD (in millions) Income Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 EFT Processing $ 194.9 $ 100.4 $ 52.5 $ (21.2) $ 71.9 $ 1.0 % Change -48% -140% -99% epay 218.0 276.1 33.6 39.9 35.3 42.2 % Change 27% 19% 20% Money Transfer 281.9 331.6 33.0 45.6 41.3
Slide 18: Q4 results by segment, constant currency
Adjusted Operating Revenue Adjusted EBITDA USD (in millions) Income Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 EFT Processing $ 194.9 $ 97.6 $ 52.5 $ (20.3) $ 71.9 $ 1.1 % Change -50% -139% -98% epay 218.0 265.2 33.6 37.9 35.3 40.1 % Change 22% 13% 14% Money Transfer 281.9 321.3 33.0 43.0 41.3
Slide 19: Financial Highlights Full Year 2020
FINANCIAL HIGHLIGHTS FULL YEAR 2020
Slide 20: Full year 2020 consolidated results
Revenue - $2,482.7 million • 10% decrease from $2,750.1 million for 2019 • 10% decrease on a constant currency basis Operating income - $46.6 million • 90% decrease from $475.2 million for 2019 • 91% decrease on a constant currency basis Adjusted operating income - $153.2 million • 68% decrease from
Slide 21: Full year KPIs
+7% +55% +2% 3,500,000,000 3,000,000,000 140,000,000 3,000,000,000 120,000,000 2,500,000,000 2,500,000,000 100,000,000 2,000,000,000 2,000,000,000 80,000,000 1,500,000,000 1,500,000,000 60,000,000 1,000,000,000 1,000,000,000 40,000,000 500,000,000 20,000,000 500,000,000 0 0 0 KPI KPI KPI 2018 2019 2
Slide 22: Full year results by segment
Adjusted Operating Revenue Adjusted EBITDA USD (in millions) Income 2019 2020 2019 2020 2019 2020 EFT Processing $ 888.7 $ 468.8 $ 295.4 $ (44.8) $ 367.2 $ 39.2 % Change -47% -115% -89% epay 769.4 835.5 89.3 96.7 96.2 104.6 % Change 9% 8% 9% Money Transfer 1,096.1 1,183.8 134.6 144.4 167.2 179.1 % C
Slide 23: Full year results by segment, constant currency
Adjusted Operating Revenue Adjusted EBITDA USD (in millions) Income 2019 2020 2019 2020 2019 2020 EFT Processing $ 888.7 $ 469.9 $ 295.4 $ (45.6) $ 367.2 $ 38.5 % Change -47% -115% -90% epay 769.4 833.9 89.3 95.5 96.2 103.4 % Change 8% 7% 7% Money Transfer 1,096.1 1,176.0 134.6 141.7 167.2 176.6 % C
Slide 24: Closing Remarks
CLOSING REMARKS
Slide 25: Supplemental Data
SUPPLEMENTAL DATA
Slide 26: Non-GAAP financial measures
In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency, adjusted operating income, adjusted EBITDA and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues
Slide 27: Three months ended December 31, 2020
Three months ended December 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 70.4 Less: Income tax expense (15.0) Less: Total other expense, net (5.2) Operating income (expense) $ (21.2) $ 39.9 $ 45.0 $ (13.5) 50.2 Add: Acquired intangible asset impairment cha
Slide 28: Three months ended December 31, 2019
Three months ended December 31, 2019 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 106.6 Add: Income tax expense 2.9 Less: Total other expense, net (2.3) Operating income (loss) $ 52.5 $ 33.6 $ 33.0 $ (11.9) 107.2 Adjusted operating income (loss) (1) 52.5 33.6 33.0
Slide 29: Twelve months ended December 31, 2020
Twelve months ended December 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net loss $ (3.3) Add: Income tax expense 11.5 Add: Total other expense, net 38.4 Operating income (loss) $ (66.7) $ 96.7 $ 59.7 $ (43.1) $ 46.6 Add: Acquired intangible assets and goodwill impair
Slide 30: Twelve months ended December 31, 2019
Twelve months ended December 31, 2019 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 346.7 Add: Income tax expense 87.2 Add: Total other expense, net 41.3 Operating income (expense) $ 296.7 $ 89.3 $ 134.6 $ (45.4) $ 475.2 Add: Post-acquisiton charge (1.3) - - - (1.3)
Slide 31: Three months ended December 31, 2020 constant currency
Three months ended ended December 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Revenue $ 100.4 $ 276.1 $ 331.6 $ (1.5) $ 706.6 Add: Estimated foreign currency impact * (2.8) (10.9) (10.3) - (24.0) Revenue - Constant Currency $ 97.6 $ 265.2 $ 321.3 $ (1.5) $ 682.6 Adjus
Slide 32: Twelve months ended December 31, 2020 constant currency
Twelve months ended ended December 31, 2020 EFT Money Processing epay Transfer Corporate Consolidated Revenue $ 468.8 $ 835.5 $ 1,183.8 $ (5.4) $ 2,482.7 Add: Estimated foreign currency impact * 1.1 (1.6) (7.8) - (8.3) Revenue - Constant Currency $ 469.9 $ 833.9 $ 1,176.0 $ (5.4) $ 2,474.4 Adjusted
Slide 33: Adjusted earnings reconciliation
Year Ended Three Months Ended December 31, December 31, 2020 2019 2020 2019 Net income attributable to Euronet Worldwide, Inc. $ (3.4) $ 346.8 $ 70.2 $ 106.5 Foreign currency exchange loss 3.8 (2.7) (13.9) (10.6) Intangible asset amortization 22.9 20.4 5.8 5.1 Share-based compensation 22.0 21.5 7.5