Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q4 2021 Earnings Presentation
34 slides from Euronet Worldwide's earnings presentation, Feb 10, 2022
Slide 1: Fourth Quarter 2021 Financial Results
Fourth Quarter 2021 Financial Results PRESENTERS: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP AND CFO KEVIN J. CAPONECCHI, EVP & CEO EPAY, EFT ASIA PACIFIC & SOFTWARE SCOTT CLAASSEN, GENERAL COUNSEL 9 February 2022 | Slide 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this news release 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
Slide 3: Business Update
Business Update MICHAEL J. BROWN, CHAIRMAN & CEO 9 February 2022 | Slide 3
Slide 4: Defined Terms
Defined 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
Slide 5: Current State of Business
Current State of Business ‣ Euronet finished 2021 with strong consolidated double-digit growth rates in revenue, adjusted operating income and adjusted EBITDA ‣ Strong balance sheet continues to support ATM expansion and digital transformation strategies in epay and Money Transfer ‣ EFT expects to s
Slide 6: EFT European Travel Indicators
EFT European Travel Indicators European Travel Indicators as a Percentage of 2019 85% 83% 83% 82% 79% 79% 77% 76% 73% 74% 71% 70% 71% 69% 70% 66% 65% 69% 61% 51% 50% 49% 43% 40% Projected Flight Levels with a 39% Vaccine 36% 36% 36% 34% 30% Euronet International Withdrawals 28% (2021 as a % of 2019)
Slide 7: Return to Travel Expectations
Return to Travel Expectations ‣ Airlines starting to recover following the easing of Covid Restrictions ‣ EU introduced new individual-based travel restrictions from February 1 ‣ The removal of restrictions is based on three factors: ‣ The Omicron variant is a milder version of COVID-19 and less wor
Slide 8: EFT Quarterly Highlights
EFT Quarterly Highlights ‣ New Countries Launched: ‣ Independent ATM (IAD) Network in Montenegro ‣ Expanded Distribution: ‣ Launched: ‣ Visa debit contactless issuing for Republic Bank of Trinidad and Tobago ‣ Signed: ‣ Asset purchase agreement with AIB bank in Northern Ireland ‣ Network participati
Slide 9: epay Quarterly Highlights
epay Quarterly Highlights ‣ Launched: ‣ Apple with PhonePe and AmazonPay wallets in India ‣ Digital codes of Tinder distributed through Tokopedia Indonesia, one of the largest e-commerce platforms in the country and SEA region ‣ Distribution of Just Eat through digital channel in Germany, Austria, S
Slide 10: Money Transfer Quarterly Highlights
Money Transfer Quarterly Highlights ‣ Network Growth: ‣ Our network reaches: ‣ 510,000 total retail network locations, a 10% increase vs. Q4 2020 ‣ 165 countries ‣ 3.7 billion bank accounts and 439 million wallet accounts ‣ Correspondent Expansion: ‣ Launched 25 new correspondents in 22 countries ‣
Slide 11: Dandelion Update
Dandelion Update ‣ Enabled Xe2Ria rails for B2C and B2B to Indonesia – the first country processing B2B and B2C payments ‣ Launched service with STP in Mexico, creating real-time service to both corporates and individuals to all banks in Mexico ‣ Enabled corporate payments to four new countries: Cos
Slide 12: Euronet Technology Success Update
Euronet Technology Success Update ‣ Signed 21 new agreements worth approximately $78 million in revenue over the next six years ‣ Signed REN Self-Service agreement for Banco Atlantida-Grupo in Honduras ‣ Signed REN Deployment agreement with Trust Bank Singapore Limited ‣ REN will be deployed on the
Slide 13: Financial Highlights Fourth Quarter 2021
Financial Highlights Fourth Quarter 2021 RICK L. WELLER, EVP & CFO 9 February 2022 | Slide 13
Slide 14: Balance Sheet Overview
Financial Highlights Fourth Quarter 2021 Balance Sheet Overview US D 9/30/2021 12/31/2021 (in millions ) Unrestricted Cash $ 1,048.5 $ 1,260.5 ATM Cash 669.7 543.4 Settlement Assets 928.7 1,102.4 Total Assets 4,526.3 4,744.3 Total Debt 1,206.5 1,427.9 Total Debt to Trailing Twelve Month Adjusted EBI
Slide 15: Fourth Quarter 2021 Financial Highlights
Financial Highlights Fourth Quarter 2021 ‣ Revenue - $811.5 million ‣ 15% increase from $706.6 million for Q4 2020 ‣ 18% increase on a constant currency basis ‣ Operating Income - $29.0 million ‣ 42% decrease from $50.2 million for Q4 2020 ‣ 38% decrease on a constant currency basis ‣ Adjusted opera
Slide 16: Three Year Transaction Trend
Financial Highlights Fourth Quarter 2021 Three Year Transaction Trend 9 February 2022 | Slide 16
Slide 17: Same Quarter Prior Year Comparison
Financial Highlights Fourth Quarter 2021 Same Quarter Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 EFT Processing $ 100.4 $ 163.5 $ (21.2) $ 1.8 $ 1.0 $ 25.9 % Change 63% 108% 2490% epay 276.1 286.9 39.9 40.
Slide 18: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights Fourth Quarter 2021 Same Quarter Prior Year Comparison – Constant Currency Adjusted Operating US D (in millions) Revenue Adjusted EBITDA Income Q4 2020 Q4 2021* Q4 2020 Q4 2021* Q4 2020 Q4 2021* EFT Processing $ 100.4 $ 168.3 $ (21.2) $ 1.2 $ 1.0 $ 26.1 % Change 68% 106% 2510% e
Slide 19: Full Year 2021
Financial Highlights Full Year 2021 RICK L. WELLER, EVP & CFO 9 February 2022 | Slide 19
Slide 20: Balance Sheet Overview
Financial Highlights Full Year 2021 Balance Sheet Overview US D 12/31/2020 12/31/2021 (in millions ) Unrestricted Cash $ 1,420.3 $ 1,260.5 ATM Cash 411.1 543.4 Settlement Assets 1,140.9 1,102.4 Total Assets 4,926.7 4,744.3 Total Debt 1,451.0 1,427.9 Total Debt to Trailing Twelve Month Adjusted EBITD
Slide 21: Full Year 2021 Financial Highlights
Financial Highlights Full Year 2021 ‣ Revenue - $2,995.5 million ‣ 21% increase from $2,482.7 million for 2020 ‣ 18% increase on a constant currency basis ‣ Operating Income - $184.0 million ‣ 295% increase from $46.6 million for 2020 ‣ 284% increase on a constant currency basis ‣ Adjusted Operating
Slide 22: Three Year Transaction Trend
Financial Highlights Full Year 2021 Three Year Transaction Trend 9 February 2022 | Slide 22
Slide 23: Prior Year Comparison
Financial Highlights Full Year 2021 Prior Year Comparison USD (in millions) Adjusted Operating Revenue Adjusted EBITDA Income 2020 2021 2020 2021 2020 2021 EFT Processing $ 468.8 $ 591.2 $ (44.8) $ (0.4) $ 39.2 $ 90.5 % Change 26% 99% 131% epay 835.5 1,011.4 96.7 122.9 104.6 131.4 % Change 21% 27% 2
Slide 24: Prior Year Comparison – Constant Currency
Financial Highlights Full Year 2021 Prior Year Comparison – Constant Currency Adjusted Operating US D (in millions) Revenue Adjusted EBITDA Income 2020 2021* 2020 2021* 2020 2021* EFT Processing $ 468.8 $ 578.9 $ (44.8) $ 0.6 $ 39.2 $ 89.4 % Change 23% 101% 128% epay 835.5 989.1 96.7 121.1 104.6 129
Slide 25: Closing Remarks
Closing Remarks MICHAEL J. BROWN, CHAIRMAN & CEO 9 February 2022 | Slide 25
Slide 26: Supplemental Data
Supplemental Data 9 February 2022 | Slide 26
Slide 27: Reconciliation to Adjusted Operating Income and Adjusted EBITDA, Q4 2021
Supplemental Data Reconciliation of Net Loss to Operating Income (Expense), Adjusted Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended December 31, 2021 EFT Money Corporate Processing epay Transfer Services Consolidated Net loss $ (3.1) Add: Income tax expen
Slide 28: Reconciliation to Adjusted Operating Income and Adjusted EBITDA, Q4 2020
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating (Loss) Income to Adjusted Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Three months ended December 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 70.
Slide 29: Reconciliation to Adjusted Operating Income and Adjusted EBITDA, Full Year 2021
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Twelve months ended December 31, 2021 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 70.5
Slide 30: Reconciliation to Adjusted Operating Income and Adjusted EBITDA, Full Year 2020
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Loss to Operating (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Twelve months ended December 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net loss $ (3.3) Ad
Slide 31: Constant Currency Reconciliation by Segment, Q4 2021
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Revenue, Adjusted Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) (unaudited - in millions) Three months ended ended December 31, 2021 EFT Money Corporate Processing epay Tran
Slide 32: Constant Currency Reconciliation by Segment, Full Year 2021
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Revenue, Adjusted Operating (Loss) Incomeand Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) Twelve months ended ended December 31, 2021 EFT Money Processing epay Transfer Corporate Consolidated Revenue $ 5
Slide 33: Reconciliation of Adjusted Earnings per Share
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Year Ended Three Months Ended December 31, December 31, 2021 2020 2021 2020 Net income (loss) attributable to Euronet Worldwide, Inc. $ 70.7 $ (3.4) $ (3
Slide 34: Thank You
Thank You EURONET WORLDWIDE, INC. 9 February 2022 | Slide 34