Austriacard Holdings Ag · ATHEX:ACAG
Austriacard — 9M 2024 Earnings Presentation
34 slides from Austriacard's earnings presentation, Nov 14, 2024
Slide 1: Corporate Presentation 9M 2024 Financial Results
CORPORATE PRESENTATION 9M 2024 Financial Results November 14, 2024
Slide 2: Contents
CONTENTS 1 AUSTRIACARD Group Overview 2 9M 2024 Performance 3 Industry Overview & Market Trends 4 Appendix
Slide 3: Overview
Leading mid-size international card and secure chip solutions provider, expanding fast its digital transformation solutions. Started as specialty printer 127 years ago in Greece; post acquisition of AUSTRIACARD in 2007 and other businesses in recent years, is now a Vienna HQ diversified group. Offer
Slide 4: Key Group Figures
KEY GROUP FIGURES Adj. Revenue Adj. EBITDA Adj. Net Income (Adjusted for IAS 29 Hyperinflation) €298.3mn €43.1mn €16.8mn 9M 2024 9M 2024 9M 2024 Net Debt Employees NET DEBT / Adj. EBIDTA €104.0mn ~2,500 1.9X 9M 2024 9M 2024 9M 2024 4
Slide 5: Key Milestones 1897-2024
KEY MILESTONES 1897-2024 2015 Commercial launch 2007 of Austrian 2021 digital wallet solution - Acquisition of Acquisition of NITECREST UK Austria Card GmbH 2019 - Acquisition of Cloudfin 1994 - Acquisition of 2013 TAG SYSTEMS Listing of INFORM P. LYKOS 2024 Acquisition of 1897 HOLDINGS S.A. 2009 th
Slide 6: Solid M&A Track Record
SOLID M&A TRACK RECORD EXPANDING OUR PRODUCT OFFERING & GEOGRAPHIC FOOTPRINT > Following the transformative acquisition of AUSTRIACARD in 2007, the Group has proceeded to further accretive acquisitions, expanding its geographical reach and solutions portfolio. Company Country Date Description April
Slide 7: Operational Footprint
OPERATIONAL FOOTPRINT USA Norway INDUSTRIAL PRESENCE IN 9 COUNTRIES UK UK, Andorra, Spain, Austria, Germany Poland Poland, Romania, Greece, Türkiye, US AUSTRIA Czech Republic Romania Croatia Serbia Andorra Spain Greece Türkiye SALES OFFICES Jordan Norway, Czech Republic, Germany, Croatia, Serbia, Jo
Slide 8: Our Solutions Portfolio
OUR SOLUTIONS PORTFOLIO DIGITALIZATION, SECURE CHIP & PAYMENT SOLUTIONS, DOCUMENT LIFECYCLE MANAGEMENT Digital Transformation Secure Chip Document Lifecycle Technologies & Payment Solutions Management Public & Private sector Secure Smart Cards Digital Printing Digitization, e-Archiving Artificial In
Slide 9: Growth Strategy
GROWTH STRATEGY 1 2 GEOGRAPHIC & MARKET PRODUCTS & SERVICES SHARE EXPANSION PORTFOLIO ENHANCEMENT • New focus markets: US, UK, MEA • Payment and Banking solutions as a service • Cross-selling and up-selling to existing clients • Product Innovation: Biometric, metal cards • Continued leadership in sp
Slide 10: An Expanding Digital Transformation Technologies Portfolio: Indicative Projects
AN EXPANDING DIGITAL TRANSFORMATION TECHNOLOGIES PORTFOLIO: INDICATIVE PROJECTS • Greek State RRF projects: (Pension System (e-EFKA) archives digitization, Merchant Marine Ministry archives digitization, National Health System archives digitization) • Greek Banks, Greek Telcos: DoB applications for
Slide 11: Our Engines of Growth
OUR ENGINES OF GROWTH DIGITAL SECURE CHIP DOCUMENT TRANSFORMATION & PAYMENT LIFECYCLE TECHNOLOGIES SOLUTIONS MANAGEMENT • RRF public sector digitalization • Leadership as payment card • Security printing solutions for projects. provider for challenger banks governments in MEA • AI applications & Dat
Slide 12: 9M 2024 Performance
CONTENTS 1 AUSTRIACARD Group Overview 2 9M 2024 Performance 3 Industry Overview & Market Trends 4 Appendix
Slide 13: 9M 2024: Expansion in New Markets Drives Strong Operating Performance
9M 2024: EXPANSION IN NEW MARKETS DRIVES A STRONG OPERATING PERFORMANCE • Q3 2024 Group Adj. Revenues increase by 29.6%, 9M 2024 by 14.0% to €298.3mn. • Near tripling of Digital Transformation revenues, strong growth in Document Lifecycle Management from MEA projects and in Secure Chip & Payment fro
Slide 14: Effect of IAS 29 (Hyperinflation)
EFFECT OF IAS 29 (HYPERINFLATION) The application of IAS 29 (Hyperinflation) with respect to our Türkiye-based operations, together with share option plan and FX effects, led Reported 9M 2024 Results to differ from Management 9M 2024 Results, which are used by the Company to monitor its performance.
Slide 15: 9M 2024 Results
9M 2024 RESULTS STRONG OPERATING PERFORMANCE ADJ. REVENUES ADJ. EBITDA & MARGIN Amounts in € mn Amounts in € mn Adj. Revenues increased by 14.0% in 9M 24 compared to 9M 23 due to strong growth in: Adjusted EBITDA increased by 18.1% for a margin of 14.4% due to the: • Digital Transformation revenues
Slide 16: 9M 2024 Geographical Segments Performance
9M 2024 GEOGRAPHICAL SEGMENTS PERFORMANCE (in €mn) WESTERN EUROPE, CENTRAL EASTERN TÜRKIYE, MIDDLE EAST NORDICS, AMERICA EUROPE & DACH & AFRICA Amounts in € mn • Western Europe, Nordics, Americas revenues growth accelerates significantly, and a decline of 3.6% in H1 24 is transformed into a strong 1
Slide 17: Working Capital Evolution & Effect of Covid in Inventories
WORKING CAPITAL EVOLUTION & EFFECT OF COVID IN INVENTORIES Supply chain disruptions during Covid led to severe semiconductor shortage, reflected in ACAG’s abnormally low 2022 inventory level. Process of normalizing Working Capital continues. 17
Slide 18: Low Leverage Enhanced Dividend
LOW LEVERAGE ENHANCED DIVIDEND * Amounts in € *2022 Divident adjusted for issued bonus shares Dividend paid in July 2024 for FY2023: Following leverage increase to finance • €0.10/share, €3.6mn total accretive acquisitions, now Net Debt/Adj. EBITDA has declined below the 2X target Dividend policy: •
Slide 19: 2018-23 KPIs
2018-23 KPIS: RAPIDLY GROWING ADJ. REVENUES, ADJ. EBITDA, NET INCOME (€ mn) Source: Group’s financial statements 19
Slide 20: AUSTRIACARD Performance Since Initial Listing
AUSTRIACARD PERFORMANCE SINCE INITIAL LISTING OF INFORM LYKOS (€ mn) Performance: Revenues 35X and EBITDA 21X since the Group’s inception 20
Slide 21: AUSTRIACARD Shares Placement
AUSTRIACARD SHARES PLACEMENT INCREASING FREE FLOAT TO 28% ACAG SHAREHOLDERS • On April 30, 2024 majority shareholder N. Lykos, together with other 27.7% shareholders placed 15% of the company’s shares Free Float • ACAG was listed 14 months ago without an IPO, thus the placement practically marks the
Slide 22: Competitive Strengths & Key Investment Themes
AUSTRIACARD: COMPETITIVE STRENGTHS & KEY INVESTMENT THEMES COMPETITIVE STRENGTHS INVESTMENT THEME • Diversified solutions portfolio with fast • Active in the most attractive, fast growing growing technology segment industry markets • Highly skilled employee base, strong R&D • Combining superior orga
Slide 23: Industry Overview & Market Trends
CONTENTS 1 AUSTRIACARD Group Overview 2 9M 2024 Performance 3 Industry Overview & Market Trends 4 Appendix
Slide 24: Payment Card Business Expansion Continues Unabated
INDUSTRY OVERVIEW & MARKET TRENDS PAYMENT CARD BUSINESS EXPANSION CONTINUES UNABATED VISA cards outstanding (bn) MASTERCARD cards outstanding (bn) Transaction on VISA networks (bn) Transaction on MASTERCARD networks (bn) Source: VISA and MASTERCARD results releases 24
Slide 25: Visa & Mastercard Share Price Performance
INDUSTRY OVERVIEW & MARKET TRENDS VISA & MASTERCARD SHARE PRICE PERFORMANCE VISA share price evolution ($) MASTERCARD share price evolution ($) Judging from the share price performance of Visa and Mastercard, the market believes that payment cards will continue being the dominant means of payment go
Slide 26: Fintech: Challenger Banks
INDUSTRY OVERVIEW & MARKET TRENDS FINTECH: CHALLENGER BANKS GLOBAL FINTECH REVENUES PROJECTION TOP 5 EUROPEAN CHALLENGER BANKS 2022-2028 BASED ON CUSTOMERS (JUNE 2024) Amounts in $ bn Source: McKinsey – October 2023 • Neo and Challenger Banks, the drivers of Fintech, have been increasing very fast i
Slide 27: ACAG Is the Leader in Smart Cards for Fintech in Europe
INDUSTRY OVERVIEW & MARKET TRENDS ACAG IS THE LEADER IN SMART CARDS FOR FINTECH IN EUROPE, AND GROWING IN NORTH AMERICA EUROPE NORTH AMERICA • Number of Challenger Bank cards issued in • Number of Challenger Bank cards issued in Europe in 2023: 62.5 million (From zero in 2017) North America in 2023:
Slide 28: Digital Transformation Market
INDUSTRY OVERVIEW & MARKET TRENDS DIGITAL TRANSFORMATION MARKET GLOBAL GREECE Amounts in $ bn 450 digital transformation projects DRIVERS for the period 2021-2026 supported by CAGR €6.4 billion of EU Recovery Fund Money 21.0% • Rising adoption of big data • Demand for tools combining several heterog
Slide 29: Appendix
CONTENTS 1 AUSTRIACARD Group Overview 2 9M 2024 Performance 3 Industry Overview & Market Trends Appendix 4 Historical Financial Statements / Management
Slide 30: Group's Historical Financial Statements: Consolidated Balance Sheet
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET 30
Slide 31: Group's Historical Financial Statements: Consolidated Income Statement
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT 31
Slide 32: Group's Historical Financial Statements: Consolidated Cash Flow Statement
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW STATEMENT 32
Slide 33: Highly Experienced Management Team
HIGHLY EXPERIENCED MANAGEMENT TEAM AN INTERNATIONAL TEAM WITH DEEP & COMPLEMENTARY EXPERIENCE Nikolaos Lykos Manolis Kontos Markus Kirchmayr Jon Neeraas Burak Bilge Dimitris Tzelepis Dr. Mohamed Chemloul Chairman of the Group CEO Group Chief EVP Western Europe, EVP Türkiye, Middle East Executive Dir
Slide 34: Disclaimer
DISCLAIMER This presentation is made by AUSTRIACARD (the “Company”) for you as This presentation contains forward-looking statements, which involve intended recipient and is strictly confidential. It is furnished to you solely risks and uncertainties. These statements may be identified by words for