Eml Payments Ltd. · ASX:EML
Eml Payments — Investor Presentation (November 2024)
34 slides from Eml Payments's investor presentation, Nov 26, 2024
Slide 1: EML 2.0 Strategic Plan Investor Presentation and Trading Update
26 November 2024 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 EML 2.0 Strategic Plan Investor Presentation and Trading Update EML Payments Limited (ASX:EML) (“EML”), is pleased to provide our Strategic Plan FY25-FY28 Investor Presentation. Trading Update +61 (07) 3557 1100 Trading for Q
Slide 2: EML 2.0 Moving money smarter
EML 2.0 Moving money smarter.
Slide 3: Important Notice Disclaimer
Important Notice Disclaimer About Us This presentations has been prepared by EML Payments Limited The information provided in this presentation is provided for EML Payments is a global payments company that operates in (ACN 104 757 904) (EML) and is general background information general information
Slide 4: Solving complex money flows
Solving complex money flows living at the intersection of business, government and consumers... 3
Slide 5: On a mission to power double-digit transaction revenue growth by FY27
…on a mission to power double-digit transaction revenue 1 growth by FY27 4 1. Transaction Revenues, excluding Interest
Slide 6: Getting to Double Digit Growth
Getting to Double Digit Growth Strategic Pillars Strategic Enablers FY28 Single, global operating model ~35% Transforming EML by with new leadership to drive EBITDA Margin moving money smarter growth Revived revenue engine to strengthen 10 - 12% and expand into new markets Transaction Nurture & Grow
Slide 7: The conditions to grow are optimal
The conditions to grow are optimal 6
Slide 8: An attractive and growing market
An attractive and growing market Strong tailwinds and secular trends Operating in a large and growing marketplace Global Digital payments continue to replace cash & paper CAGR Prepaid and $291bn • $38 trillion in cash payments, globally, declining at 4% YOY1 Debit Market 11% $173bn Explosion of Digi
Slide 9: A good business to grow from
A good business to grow from FY241 1,100+ 27 B2B customers Countries An end-to-end, embedded payments issuer operating in 3 of ~$23bn the world’s most highly Gross Debit ~30m Cards Volume valued payments markets ~$200m +$52m Revenue EBITDA ~45% 415 Free Cashflow Team Members 1. Numbers exclude PCSIL
Slide 10: Strength through a diversified revenue mix
Strength through a diversified revenue mix Europe North America Australia FY24 Total Revenue $109m $41m $52m Revenue by Vertical Government Government 45% 0% 1% Retail Retail G&I G&I 31% 58% 15% EmployeeBenefits Employee Benefits 13% 5% 62% Financial Financial Services Services 4% 21% 7% Gaming Gami
Slide 11: Revenue levers across the entire value chain
Revenue levers across the entire value chain Trad. Bank Program Processors BaaS Issuers Managers Program Set Up Program design, technical integration, ✔ licensing % $ Platform Fees ✔ ✔ Monthly/annual Float Interest - Undervalued Issuance • Rates expected to be HIGHER Card/account issuance & monthly/
Slide 12: Unrivaled market-making capabilities
Unrivaled market-making capabilities Smarter capabilities That build value And deliver results1 Means more Moving money Solving payment problems in Perx $9.8m smarter unique ways that adds value to consumers, businesses and CAGR governments Direct to market employee Customised UI and 84% benefit pro
Slide 13: Making us focused, fearless and future ready
Making us focused, fearless and future ready Inception Expansion Stabilisation Transformation Originated in Australia Verticals PFS Regulatory Industrialise First international Feature sets Acquisition Effectiveness Commercialise acquisitions Geographic acquisitions Organisation Strain Digitise + Ex
Slide 14: EML 2.0 A new era of growth: How we will win
EML 2.0 A new era of growth How we will win 13
Slide 15: Activating the new era
Activating the new era Vision Moving money smarter, around the world Mission Simplify complex payment flows for business and government to unlock value for users, worldwide Business Objective Double digit transaction revenue growth by FY27 Now ~24 Months Nurture Accelerate Expand Strategic Pillars S
Slide 16: Strategic Pillars: Winning more than our share of the global market
Winning more than our share of the global market Nurture and Grow the Core $218 Bn • Unlock new revenue with existing customers NOW Prepaid & Debit • Target verticals where we have proven track Existing EML Regions record and win more Accelerate into New Verticals Large, dynamic and $736 Bn • All pr
Slide 17: Strategic Pillars: Ready to serve key verticals
Ready to serve key verticals Now ~12 Months Nurture and grow the core Accelerate into new verticals Examples Employee Government Retail Gaming Financial Insurance Travel Mobility Healthcare Benefits Services Market Size High High Med > High Med High High High Med High Market Growth Med - High Low –
Slide 18: Strategic Pillars: Disciplined market expansion
Disciplined market expansion Key Criteria for Success ü Large/growing economies ü Similar conditions to those we successfully operate in today ü Regulation evolved and broadly consistent to our existing markets ü Enter with strategic partnerships Forecast 2028 GDV* '23 – ’28 (AUD, tril.) CAGR Europe
Slide 19: Three strategic enablers to deliver the plan
Three strategic enablers to deliver the plan 18
Slide 20: A unified global business
A unified global business Global operating model, delivering synergy and improving execution and responsiveness Global Operating Model Strengthened leadership powering growth, heightening urgency and focusing on outcomes Focused revenue engine to nurture the core and win Revived Revenue Engine an ou
Slide 21: Delivering synergies and customer centricity
Delivering synergies and customer centricity From To EML 2.0 Siloed regional operating Centralised operations businesses with no synergies supporting local go-to-market North Global North America Europe Australia Global America Europe Australia Efficiency & cost Leadership Leadership New leadership
Slide 22: Led by a growth-minded executive team
Led by a growth-minded executive team Bryan Lewis Shabab Muhaddes Tom Cronin Chief Operating Officer Chief Revenue Officer Chief Product Officer Seasoned executive with 25 20 years payments expertise 30 years of experience in years extensive global across multiple geographies developing global payme
Slide 23: Scaling our revenue engine
Scaling our revenue engine Build Targeted Broader Commercial GTM Plan Product Set Team More hunters right sized to grow pipeline One unified brand across all markets All products in all regions Revived Revenue Engine Dedicated end-to-end team; accelerating Targeted marketing focused on key Feature-r
Slide 24: Broader global product capabilities
Broader global product capabilities Physical and Virtual Cards Sub accounts Contactless Instant Payments Loyalty All products; all regions A2A Digital ID and P2P Expanded product and feature set EML 2.0 Multi-currency Bill Digital Wallet & Travel One stop shop, Payments Features globally Single Plat
Slide 25: Powered by a smarter, single global tech platform
Powered by a smarter, single global tech platform From To EML 2.0 Three bespoke card One unified highly configurable, account-based platform technology platforms to drive efficiencies and serve complex use cases at scale High technology cost CUSTOMERS base to maintain Highly 3 legacy platforms with
Slide 26: We're already moving smarter
We’re already moving smarter 25
Slide 27: We have achieved a lot in a short time
We have achieved a lot in a short time Cleared Asset Leadership Constraints Simplification Reset Exited Irish business, PCSIL Core business perimeter defined Growth-oriented CEO Completed remediation programme Sentenial sale complete, PCSIL exit A new operating model designed and Delivering EML 2.0
Slide 28: The plan in action
The plan in action Jul 24 Jan 25 Jul 25 Jan 26 Jul 26 Jan 27 Global Operating Model Optimising our operating Opex Investment: $2m - $3m1 model + strengthening Save: $3-5m annualised saving from FY26 leadership Transforming Revived Revenue Engine EML by Building a focused revenue Opex Investment: $2m
Slide 29: Moving the metrics that matter
Moving the metrics that matter 28
Slide 30: Medium term financial outlook
Medium term financial outlook FY26 – FY28 FY281 ~A$95m EBITDA Transaction Cost Base Flat Customer Float Capex ~35% Revenue Growth ~A$105m Interest One-off $12-$15m EBITDA Margin Jan `25-Dec `26 10-12% Yield ↓30-50bps CAGR from FY24 <40% Growth in existing business Savings of $15-$20m • Bulk of abate
Slide 31: Our key metrics will move positively
Our key metrics will move positively Disciplined EBITDA Margin Interest % Revenue 40% operational 30% 35% execution will 30% ~9% 25% ~6% deliver superior 25% 20% financial metrics 20% 15% 15% FY25 FY28 FY25 FY28 Cost to Income EPS 55% 14 12 45% ~10% 10 35% 8 ~2.6x 6 4 Financials 25% 2 FY25 FY28 FY25
Slide 32: Global Operating Model Financials
Global Operating Model Europe North America Australia Group FY24 (A$M) Transaction revenue 72.4 38.6 41.4 152.3 Interest revenue 36.6 2.6 10.5 49.7 Total revenue 109.0 41.1 51.9 202.0 Cost of sales (22.8) (10.1) (16.6) (49.5) Gross Profit 86.2 31.1 35.3 152.5 Underlying business overheads (49.8) (17
Slide 33: Money moves smarter on EML
Money moves smarter on EML Our payment solutions are designed to work smarter, move faster, go further and mean more for our customers, every day. 32
Slide 34: EML Glossary
EML Glossary Abbreviation Meaning Abbreviation Meaning Abbreviation Meaning A2A Account-2-Account EBITDA Earnings Before Interest, Taxes, Depreciation OH Overheads and Amortisation. AASB Australian Accounting Standards Board PCI-DSS Payment Card Industry Data Security EBITDA is equivalent to the net