Austriacard Holdings Ag · ATHEX:ACAG
Austriacard — Q1 2024 Earnings Presentation
35 slides from Austriacard's earnings presentation, May 31, 2024
Slide 1: Corporate Presentation Q1 2024 Financial Results
CORPORATE PRESENTATION Q1 2024 Financial Results May 31, 2024
Slide 2: Our Vision
OUR VISION Through our resilience & innovation, we aim for an authentic world. At the heart of our business is the desire to do right for people and the planet, to help build an authentic world for everyone. It’s in our DNA to constantly adapt and to be there for society, from this generation to the
Slide 3: Contents
CONTENTS 1 AUSTRIACARD Group Overview 2 Q1 2024 Performance & 2024 Guidance 3 Industry Overview & Market Trends 4 Appendix
Slide 4: Overview
Technology company active in secure chip & payment solutions, digital transformation technologies, document lifecycle management. 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.
Slide 5: Key Group Figures
KEY GROUP FIGURES Adj. Revenue Adj. EBITDA Adj. Net Income (Adjusted for IAS 29 Hyperinflation) €89.7mn €13.7mn €5.0mn Q1 2024 Q1 2024 Q1 2024 Net Debt Employees NET DEBT / Adj. EBIDTA €102.6mn ~2,700 2.1X Q1 2024 Q1 2024 Q1 2024 5
Slide 6: Key Milestones
KEY MILESTONES 1897-2024 2015 Commercial launch 2007 of Austrian 2021 digital wallet solu- tion - Acquisition of Acquisition of NITECREST UK Austria Card GmbH 2019 - Acquisition of 2024 Cloudfin 1994 - Acquisition of Acquisition of 2013 TAG SYSTEMS LSTech Listing of INFORM P. LYKOS Acquisition of 18
Slide 7: Operational Footprint
OPERATIONAL FOOTPRINT USA Norway OPERATING FACILITIES 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, J
Slide 8: 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 9: 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 Added
Slide 10: Our Solutions Portfolio
OUR SOLUTIONS PORTFOLIO DIGITALIZATION, SECURE CHIP & PAYMENT SOLUTIONS, DOCUMENT LIFECYCLE MANAGEMENT Digital Transformation Secure Chip Document Lifecycle Technologies & Payment Solutions Management Business Intelligence Secure Smart Cards Digital Printing & Intelligent Data Fabric Artificial Inte
Slide 11: Q1 2024 Performance & 2024 Guidance
CONTENTS 1 AUSTRIACARD Group Overview Q1 2024 Performance 2 & 2024 Guidance 3 Industry Overview & Market Trends 4 Appendix
Slide 12: Q1 2024 at a Glance
Q1 2024 AT A GLANCE • Group Adj. Revenue increased by 1.4%, driven by Digital Transformation Technologies growth and postal distribution services consolidation in Romania, with growth of Secure Chip & Payment solutions to be reflected in the balance of the year. • Improved sales mix and higher avera
Slide 13: 2024 Guidance
2024 GUIDANCE • Pipeline for the rest of the year is strong with many important contracts signed during the period that will positively affect performance from Q2 2024 onwards. • We expect 2024 Adj. Revenue to grow by approx. 10% and Adj. EBITDA by a higher percentage (approx. 10%-12%), further enha
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 Q1 2024 Results to differ from Management Q1 2024 Results, which are used by the Company to monitor its performance.
Slide 15: Q1 2024 Results
Q1 2024 RESULTS EBITDA MARGIN AT HIGHEST HISTORICAL LEVEL ADJ. REVENUES ADJ. EBITDA & MARGIN Amounts in € mn Amounts in € mn Revenue increased by 1.4% in Q1 24 compared to Q1 23 due to: Adjusted EBITDA increased by 2.2% for a margin of 15.2% due to the: • Growth in Digital Transformation projects in
Slide 16: Business Developments
BUSINESS DEVELOPMENTS WESTERN EUROPE, CENTRAL EASTERN TÜRKIYE / MIDDLE EAST NORDICS, AMERICAS EUROPE & DACH AND AFRICA • Supply of leading challenger bank with a • Renewal of 5-year and 3-year contracts with two of • Addition of one of the largest banks in the country as significant number of metal
Slide 17: Q1 2024 Geographical Segments Performance
Q1 2024 GEOGRAPHICAL SEGMENTS PERFORMANCE (in €mn) WESTERN EUROPE, CENTRAL EASTERN TURKIYE, MIDDLE EAST NORDICS, AMERICA EUROPE & DACH & AFRICA Amounts in € mn • Western Europe, Nordics, Americas segment revenue declined by 25.0% due to lower cards, technical sales. • Central Eastern Europe & DACH p
Slide 18: 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 The semiconductor supply is becoming normalized and inventories rise to normal levels 18
Slide 19: Low Leverage Enhanced Dividend
LOW LEVERAGE ENHANCED DIVIDEND Amounts in € Following leverage increase to finance • The Board plans to propose to the June 2024 AGM the accretive acquisitions, now Net Debt/Adj. distribution of a €0.10/share dividend for FY2023 EBITDA has declined around the 2X target. • Dividend policy: Distribute
Slide 20: 2018-23 KPIs
2018-23 KPIS: RAPIDLY GROWING ADJ. REVENUES, ADJ. EBITDA, NET INCOME (€ mn) ADJ. REVENUES ADJ. NET INCOME ADJ. EBITDA ADJ. EBITDA MARGIN Source: Group’s financial statements 20
Slide 21: AUSTRIACARD Performance Since Initial Listing
AUSTRIACARD PERFORMANCE SINCE INITIAL LISTING OF INFORM LYKOS (€ mn) Performance of Revenues 35X and EBITDA 21X since the Group’s initial listing 21
Slide 22: AUSTRIACARD Shares Placement
AUSTRIACARD SHARES PLACEMENT INCREASING FREE FLOAT TO 28% ACAG SHAREHOLDERS • On April 30, 2024 majority shareholder N. Lykos, together with other 28.1% 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 23: Competitive Strengths & Key Investment Themes
AUSTRIACARD: COMPETITIVE STRENGTHS & KEY INVESTMENT THEMES COMPETITIVE STRENGTHS INVESTMENT THEME • Diversified portfolio of services with increasing • Active in the most attractive, fast growing emphasis in technology solutions industry markets • Highly skilled employee base, strong R&D • Combining
Slide 24: Industry Overview & Market Trends
CONTENTS 1 AUSTRIACARD Group Overview 2 Q1 2024 Performance & 2024 Guidance 3 Industry Overview & Market Trends 4 Appendix
Slide 25: Payment Card Business Expansion Continues Unabated
INDUSTRY OVERVIEW & MARKET TRENDS PAYMENT CARD BUSINESS EXPANSION CONTINUES UNABATED VISA cards outstanding (bn) MASTERCARD cards outstanding (bn) MASTERCARD cards outstanding (bn) 3.4 CAGR+5.0% CAGR+5.2% 3.2 3.0 2.8 2.6 2.4 2.2 2.0 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Transaction
Slide 26: Visa & Mastercard Share Price Performance
INDUSTRY OVERVIEW & MARKET TRENDS VISA & MASTERCARD SHARE PRICE PERFORMANCE VISA share price evolution since 2017 ($) MASTERCARD share price evolution since 2017 ($) Judging from the share price performance of Visa and Mastercard, the market believes that payment cards will continue being the domina
Slide 27: Fintech: Challenger Banks
INDUSTRY OVERVIEW & MARKET TRENDS FINTECH: CHALLENGER BANKS GLOBAL CHALLENGER BANKS REVENUES TOP 5 EUROPEAN CHALLENGER BANKS Amounts in $ bn IN 2024 BASED ON CUSTOMERS Amounts in $ bn AUSTRIACARD CLIENT CAGR 278.8 46.5% 41.5 33 25 21 17.3 17.1 12.3 12.1 28.3 6.2 4.5 2021 2022 2023 2024 2025 2026 202
Slide 28: 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 29: 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 30: Appendix
CONTENTS 1 AUSTRIACARD Group Overview 2 Q1 2024 Performance & 2024 Guidance 3 Industry Overview & Market Trends Appendix 4 Historical Financial Statements / Management
Slide 31: Group's Historical Financial Statements: Consolidated Balance Sheet
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET 31.12.2021 = 31.12.2022 01.01.2022 Amounts in € thousands 31/3/2024 31/12/2023 30/9/2023 30/6/2023 31.03.2023 * restated restated Assets Property, plant and equipment and right of use assets 96,785 96,275 93,801 93,144 91,291 90,418
Slide 32: Group's Historical Financial Statements: Consolidated Income Statement
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT Q4 2022 1-12 2022 Q3 2022 1-9 2022 Q2 2022 H1 2022 Amounts in € thousands Q1 2024 Q1 2023 * Q4 2023 restated 1-12 2023 restated Q3 2023 restated 1-9 2023 restated Q2 2023 restated H1 2023 restated FY 2022 restated Revenue 91,765 8
Slide 33: Group's Historical Financial Statements: Consolidated Cash Flow Statement
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW STATEMENT 01.01.- 01.01.- 01.01- 01.01-31.12.2022 01.01- 01.01-30.09.2022 01.01- 01.01- 01.01.- 01.01.- Amounts in € thousands 31.3.2024 31.3.2023 * 31.12.2023 restated 30.09.2023 restated 30.06.2023 30.06.2022 31.3.2022 31.12.2022 Cash
Slide 34: 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 35: 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