Eml Payments Ltd. · ASX:EML
Eml Payments — Goldman Sachs Ninth Annual Small and Mid-Cap Conference (April 2018)
31 slides from Eml Payments's conference presentation, Apr 17, 2018
Slide 1: Goldman Sachs Ninth Annual Small and Mid-Cap Conference
GOLDMAN SACHS NINTH ANNUAL SMALL AND MID-CAP CONFERENCE 17 April 2018
Slide 2: Agenda & Disclaimer
Agenda & Disclaimer 01 ABOUT US PRESENTERS: Rachelle St. Ledger CEO Australia 02 BUSINESS MODEL Rob Shore Group Finance Director 03 OUTLOOK & Investor Relations Manager 04 APPENDIX Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is g
Slide 3: About Us
EML empowering your payments ABOUT US
Slide 4: Who is EML
Who is EML A growing ASX listed FinTech company focused on enhancing their brand partners, by offering innovative accessible prepaid programs – immediately. E ML issue and distribute mobile, virtual and physical card solutions to some of the largest corporate brands around the world E ML’s onsite te
Slide 5: Going Global
GOING GLOBAL We are currently managing: APPROXIMATELY 1,100 CARD PROGRAMS IN 19 COUNTRIES GROUP GDV (FY17) $4.42bn 348% GROUP GDV (HY18) $3.58bn 86% 12 years experience 2 PCI DSS Tier 1 Platforms We have an international presence with offices strategically located to service Australia, UK, Europe, U
Slide 6: EML Timeline
Empowering Payments EML TIMELINE 2011 2013 2015 2017 INCENTIVES INC. GAMING REDIATM REDI ATM PAYWITH REWARDS MOBILE MERCHANT The Plastic Magic Immediately Accessible Winnings Network Integration App & Virtual Benefit Account 2005 2012 2014 2016 2017/18 B2B & B2C CARDS HERITAGE-ISSUED INC. MALL PROGR
Slide 7: Timeline Product & Technology
TIMELINE PRODUCT & TECHNOLOGY EML invest in growth verticals and future opportunities through product and technology innovation. We continue to actively investigate and discover new market niches in the FinTech Industry across all regions, recognising our business units evolve independently of each
Slide 8: Our customers' success is our success
Our customers’ success is our success We enable our customers to deliver value to their customers or employees.
Slide 9: Innovative salary packaging solutions
Innovative salary packaging solutions EML enable McMillan Shakespeare, AccessPay, Paywise, Eziway and Salary Options to offer a tax compliant product to their customers including Mobile Merchant Rewards.
Slide 10: Immediate access to winnings
Immediate access to winnings EML enable our partners including Sportsbet, CrownBet, Ladbrokes and bet365 to drive loyalty while giving their customers instant access to their funds.
Slide 11: Driving loyalty and footfall
Driving loyalty and footfall EML enable our customers to deliver value and drive revenue into their business.
Slide 12: A pioneering program using points as currency
A pioneering program using points as currency We launched a program that merges points, loyalty, rewards, gifts and payments into a mobile app and a single card.
Slide 13: Rewarding merchants & consumers with our mall solution
Rewarding merchants & consumers with our mall solution We are taking our Mobile Merchant Reward Program to the malls to drive consumer engagement and ensure ongoing relevance.
Slide 14: Meeting consumer demand for digital payments
Meeting consumer demand for digital payments EML will be the first non bank self-issuer in Australia providing a secure alternative to cash or card payments.
Slide 15: Business Model
SS eM empowering your payments BUSINESS MOD
Slide 16: Key Drivers
KEY DRIVERS Non-Reloadable: Reloadable: B2B Virtual Payments: Non-Reloadable cards issued through specific Reloadable, EMV-enabled prepaid debit cards, A flexible and efficient way to manage the segments such as shopping malls, incentive provide instant access to funds 24x7x365 with accounts payable
Slide 17: Sources of Revenue
SOURCES OF REVENUE 05 Customer info system authorises transaction and adjusts cardholder 01 Interchange account balance EML issues prepaid card Revenue EML Transaction Fees Software Establishment Fee 04 06 FX Fee Transaction Transaction 4% 9% request authorised 02 03 Transaction data captured sent t
Slide 18: Significant barriers to entry
Significant barriers to entry Public facing products & solutions: Non-reloadable Virtual Reloadable Mobile Merchant Mobile payments Rewards Non-public facing INFORMATION TECHNOLOGY REGULATORY AND COMPLIANCE ACROSS THE GLOBE operations: 2 in-house, prepaid, processing platforms LEVEL 1 PCI-DSS Level
Slide 19: Key Earnings HY2018 Results
KEY EARNINGS HY2018 RESULTS — 5 YEAR CAGR Gross Debit Volume HY2018 Revenue HY2018 EBTDA HY2018 $3.58bn 114% $38.2m 74% $13.5m 259% (AUD’ millions) (AUD’ millions) (AUD’ millions) 4,000 45 16 3,500 40 14 35 12 3,000 30 10 2,500 25 8 2,000 20 6 1,500 15 4 1,000 10 2 500 5 0 0 0 -2 HY2014 HY2015 HY201
Slide 20: Key Earnings FY2017 Results
KEY EARNINGS FY2017 RESULTS — 5 YEAR CAGR Gross Debit Volume 2017 Revenue 2017 EBTDA 2017 $4.4bn 101% $58.0m 63% $14.5m 237% (AUD’ millions) (AUD’ millions) (%) (AUD’ millions) 16 30 5000 60 14 50 4000 12 5 40 10 3000 8 30 -20 6 2000 20 4 2 1000 10 -45 0 0 0 -2 FY2013 FY2014 FY2015 FY2016 FY2017 FY2
Slide 21: Key Earnings Profit & Loss
KEY EARNINGS PROFIT & LOSS Gross Profit Margin Overheads as a % of revenue 75.1% on PCP 40% 8% Down on HY2017 but in line with our AGM guidance as the product Improved 8% to 40% in FY17 as the group continues to see leverage mix shifts towards Reloadable and B2B Virtual Payments. Our long term on it
Slide 22: Outlook
EML empowering your payments OUTLOOK
Slide 23: Outlook Long Term
OUTLOOK LONG TERM EML operates in large, fast growing markets and holds a relatively small NORTH AMERICA market share, offering significant REGION EUROPE REGION market potential in future years. US$ US$ Global Trends2: 2.6bn EML GDV 2017 156m EML GDV 2017 Growing shift towards non-cash payments US$
Slide 24: Outlook
OUTLOOK The growth model for EML has been consistent since inception as a The key financial metrics for EML have been consistent since public company in 2011 inception as a public company in 2011 EML identify and monetise difference applications for our prepaid GDV to Revenue conversion correlates w
Slide 25: Outlook
OUTLOOK EML reaffirms our February guidance, as follows: General Outlook $6.7bn – 7.0bn FY18 The company has historically used GDV as a proxy for market Gross Debit Volume guidance, however with significant variances between segments this is no longer optimal. ~ 100bps GDV to Revenue conversion metr
Slide 26: Q&A
2 5 E = & 3 g 2 Py 2: 3 & Lus Q&A
Slide 27: Appendix
EML empowering your payments APPENDIX
Slide 28: Key Earnings 3 Years
KEY EARNINGS 3 YEARS KEY METRICS ($’000s) H1 2015A H2 2015A FY2015A H1 2016A H2 2016A FY2016A H1 2017A H2 2017A FY2017A HY 2018A 6 mnths 6 mnths 12 mnths 6 mnths 6 mnths 12 mnths 6 mnths 6 mnths 12 mnths 6 mnths Headcount (closing) 55 55 55 59 150 150 168 170 170 179 Average Headcount for the period
Slide 29: Key Earnings 3 Years
KEY EARNINGS 3 YEARS KEY FINANCIALS ($’000s) H1 2015A H2 2015A FY2015A H1 2016A H2 2016A FY2016A H1 2017A H2 2017A FY2017A HY 2018A 6 mnths 6 mnths 12 mnths 6 mnths 6 mnths 12 mnths 6 mnths 6 mnths 12 mnths 6 mnths Revenue (includes interest income) $5,079 $9,357 $14,437 $10,560 $12,751 $23,311 $32,
Slide 30: Appendix Regulations / Laws
APPENDIX REGULATIONS / LAWS EML abides by over 52 regulations / laws across Australia, UK, Europe, US and Canada. AUSTRALIA: UK & EUROPE: US Corporations Act 2001 Data Protection Act 1988 Federal Credit Card Accountability Responsibility State Consumer Protection, Gift & Abandoned/ and Disclosure (C
Slide 31: Thank you
Presented by Rachelle St.Ledger CEO Australia Mobile: +61 448 018 393 Email: rstledger@emlpayments.com.au Rob Shore Group Finance Director & Investor Relations Manager Mobile: +61 419 590 128 Email: rshore@emlpayments.com.au Thank you. Tom Cregan Managing Director & Group CEO Mobile: +61 488 041 910
EML Payments — Goldman Sachs Ninth Annual Small and Mid-Cap Conference (April 2018) on 6ix