Paysafe Limited · NYSE:PSFE
Paysafe — H1 2017 Earnings Presentation
22 slides from Paysafe's earnings presentation, Aug 8, 2017
Slide 1: 2017 Half Year Results
2017 HALF YEAR RESULTS August 8th 2017
Slide 2: Forward-looking statements and basis of presentation
HALF YEAR RESULTS 2017 1 Certain statements in this document are forward-looking statements. These forward-looking statements speak only as at the date of this document. These statements concern, or may affect, future matters and include matters that are not facts. Such statements are based on curre
Slide 3: Financial Review
HALF YEAR RESULTS 2017 2 FINANCIAL REVIEW $m H1 15 H2 15 H1 16 H2 16 H1 17 Revenue 223.0 390.4 486.7 513.5 538.7 – Organic CC YoY%1 12% 14% 20% 21% 12% Adjusted EBITDA2 49.9 102.7 144.2 156.6 169.2 – Adjusted EBITDA margin 22.4% 26.3% 29.6% 30.5% 31.4% Adjusted FD EPS ¢3 10.5 14.4 20.1 22.0 24.7 Adj
Slide 4: Asia Gateway and MCPS pro-forma
HALF YEAR RESULTS 2017 3 FINANCIAL REVIEW MCPS pro-forma incl. debt costs, $m Asia Gateway $m before synergies Revenue 76 Revenue 167 Reported YoY 20% Reported YoY 3% Adj EBITDA 30 Adj EBITDA 25 Adj EBIT 29 Adj EBIT 18 Adj profit before tax 29 Adj profit before tax 9 Adj profit after tax 29 Adj prof
Slide 5: Group revenue and gross margin
HALF YEAR RESULTS 2017 4 FINANCIAL REVIEW 54% 55% 56% H1 17 gross margin: 600.0 45% 50% 60.0% 50.0% 56% 500.0 400.0 34 40.0% 30.0% 20.0% (H1 16: 54%) 300.0 183 10.0% 514 539 487 0.0% 200.0 390 -10.0% Reported gross margin 100.0 223 -20.0% Pro-forma revenue -30.0% Reported revenue 0.0 -40.0% H1 15 H2
Slide 6: Payment Processing revenue and gross margin
HALF YEAR RESULTS 2017 5 FINANCIAL REVIEW 300.0 42% 42% 45.0% H1 17 gross margin: 39% 37% 37% 42% 40.0% 250.0 Processing 35.0% 200.0 2 30.0% 6 25.0% (H1 16: 39%) 150.0 20.0% 264 231 237 100.0 202 15.0% 173 Reported gross margin 10.0% 50.0 Pro-forma revenue 5.0% Reported revenue 0.0 0.0% H1 15 H2 15
Slide 7: Digital Wallets revenue and gross margin
HALF YEAR RESULTS 2017 6 FINANCIAL REVIEW 81% 73% 76% 74% 80.0% 73% H1 17 gross margin: 81% 70.0% 150 60.0% 14 50.0% 100 40.0% (H1 16: 76%) 66 164 159 147 30.0% 50 109 20.0% Reported gross margin 50 10.0% Pro-forma revenue 0 0.0% Reported revenue H1 15 H2 15 H1 16 H2 16 H1 17 Reported revenue YoY %
Slide 8: Prepaid revenue and gross margin
HALF YEAR RESULTS 2017 7 FINANCIAL REVIEW H1 17 gross margin: 52% 53% 52% 51% 52% 150.0 50% 50.0% 40.0% 100.0 (H1 16: 52%) 18 30.0% Pro-forma gross margin 50.0 107 105 108 111 20.0% Reported gross margin 76 10.0% Pro-forma revenue Reported revenue 0.0 0.0% H1 15 H2 15 H1 16 H2 16 H1 17 Reported reve
Slide 9: Fee revenue and gross profit by division
HALF YEAR RESULTS 2017 8 FINANCIAL REVIEW $m H1 16 H2 16 H1 17 Revenue Fee revenue* Payment Processing 231.2 236.6 264.4 Prepaid Payment 22% Processing Digital Wallets 146.7 164.4 159.1 47% Prepaid 105.5 108.3 110.8 Investment income 3.4 4.4 4.4 Total 486.7 513.5 538.7 Digital Gross profit Wallets P
Slide 10: Revenue by division, geography and vertical
HALF YEAR RESULTS 2017 9 FINANCIAL REVIEW Division Geography Vertical Payment E-commerce Online N. America & other gambling Processing Prepaid 30% 50% 45% 49% Europe 21% 44% Digital Wallets Asia / 30% ROW 26% Gaming 5% Fee revenue excludes revenue from investment income. | Definitions in relation to
Slide 11: Vertical mix by division
HALF YEAR RESULTS 2017 10 FINANCIAL REVIEW Payment Digital Prepaid Processing Wallets E-commerce & Online E-commerce & Online E-commerce & Online other gambling other gambling other gambling 68% 31% 39% 57% 22% 62% Gaming Gaming 1% 16% Gaming 5% Fee revenue excludes revenue from investment income. |
Slide 12: Geographic mix by division
HALF YEAR RESULTS 2017 11 FINANCIAL REVIEW Payment Digital Prepaid Processing Wallets Rest of World Europe N. Asia / ROW Rest of World 6% 11% America 30% 33% Europe 2% 66% N. America N. America 1% Europe 59% 92% Fee revenue excludes revenue from investment income. | For the Processing division, with
Slide 13: Adjusted income statement
HALF YEAR RESULTS 2017 12 FINANCIAL REVIEW $m H1 16 % rev % YoY H2 16 % rev % YoY H1 17 % rev % YoY Revenue 486.7 100% 118% 513.5 100% 32% 538.7 100% 11% Gross profit 260.6 53.5% 158% 282.2 55.0% 44% 301.5 56.0% 16% − Salaries excl SBP 61.8 12.7% 124% 69.7 13.6% 45% 74.5 13.8% 20% − Other administra
Slide 14: Balance sheet
HALF YEAR RESULTS 2017 13 FINANCIAL REVIEW $m 31 Dec 15 30 Jun 16 31 Dec 16 30 Jun 17 Non current assets 1,569.3 1,602.2 1,552.3 1,645.3 Cash & cash equivalents 117.9 160.2 231.2 272.2 Restricted cash 29.1 33.9 31.9 20.7 Cash held as reserves 14.5 16.9 35.9 18.5 Settlement assets 51.9 47.3 64.6 53.5
Slide 15: Cash flow
HALF YEAR RESULTS 2017 14 FINANCIAL REVIEW $m H1 15 H2 15 H1 16 H2 16 H1 17 Op. CF before movements in working capital 45.0 82.8 129.4 166.1 162.2 Operating working capital cash flow 0.2 (6.3) (16.1) 39.1 (24.0) Op. CF before payments working capital 45.2 76.5 113.2 205.1 138.2 Payments working capi
Slide 16: Adjusted free cash flow and cash conversion
HALF YEAR RESULTS 2017 15 FINANCIAL REVIEW $m H1 15 H2 15 H1 16 H2 16 H1 17 Adj. EBIT 43.3 89.9 129.2 139.1 152.1 Adj. depreciation & amortisation 6.7 12.8 14.9 17.6 17.2 Adj. EBITDA 49.9 102.7 144.2 156.6 169.2 Working capital movement 0.2 (6.3) (16.1) 39.1 (24.0) Less restructuring cost not yet pa
Slide 17: Appendix
Appendix
Slide 18: Transaction volumes
HALF YEAR RESULTS 2017 17 APPENDIX Pro-forma Reported H1 15 H2 15 H1 16 H2 16 H1 17 Payment Processing 8.2 8.9 11.2 11.2 12.4 – Revenue / volume 2.2% 2.3% 2.1% 2.1% 2.1% Digital Wallets 9.7 10.2 11.3 11.6 10.7 – Revenue / volume 1.2% 1.2% 1.3% 1.4% 1.5% Prepaid 1.4 1.3 1.4 1.4 1.4 – Revenue / volume
Slide 19: Capex and depreciation and amortisation
HALF YEAR RESULTS 2017 18 APPENDIX $m H1 15 H2 15 H1 16 H2 16 H1 17 PP&E 3.7 2.0 7.9 5.0 5.7 − % sales 1.7% 0.5% 1.6% 1.0% 1.1% Capitalisation of development 3.2 9.7 13.0 14.5 16.9 − % sales 1.5% 2.5% 2.7% 2.8% 3.1% Other intangible 0.0 5.1 6.6 6.7 5.2 − % sales 0% 1.3% 1.3% 1.3% 1.0% Capex 7.0 16.7
Slide 20: Debt and net debt
HALF YEAR RESULTS 2017 19 APPENDIX – €14m payment during H1 17 and effect of $m 30 Jun 16 31 Dec 16 30 Jun 17 exchange rate fluctuation Current portion of long-term debt & cap lease 31.3 29.7 48.2 – Net debt to LTM adjusted EBITDA of 0.8x at Long-term debt and capital lease 489.3 451.2 460.9 period
Slide 21: Profit after tax to adjusted profit reconciliation
HALF YEAR RESULTS 2017 20 APPENDIX $m H1 15 H2 15 H1 16 H2 16 H1 17 Profit after tax 2.4 5.0 64.5 77.5 73.7 Tax 2.2 2.2 10.0 16.0 15.3 Profit before tax 4.6 7.2 74.5 93.4 89.0 Foreign exchange loss 5.8 3.9 6.4 0.4 7.0 Acquisition, restructuring, and other exceptional costs 16.5 21.3 6.5 2.1 1.5 Shar
Slide 22: Paysafe Group plc contact details
Paysafe Group plc Registered Office & Headquarters Queen Victoria House 41-43 Victoria Street Douglas IM1 2LF Isle of Man +44 (0) 1624 698700 Andrew Griffin, SVP Market Intelligence and Investor Relations JJ Aiston, Investor Relations Manager: +44 (0) 20 3826 9854 / investorrelations@paysafe.com Bri