Eml Payments Ltd. · ASX:EML
Eml Payments — H1 FY2017 Earnings Presentation
27 slides from Eml Payments's earnings presentation, Feb 23, 2017
Slide 1: 1HFY17 Financial Results
For personal use only 1HFY17 Financial Results Wednesday, February 23, 2017
Slide 2: Disclaimer
1HFY17 Investor Presentation - Disclaimer For personal use only Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information about EML’s activities current as at the date of this presentation. This information is
Slide 3: A leader in prepaid payment technology
1HFY17 Investor Presentation - General For personal use only A leader in prepaid payment technology EML Payments Limited is an ASX listed (ASX:EML) financial services company, specialising in prepaid stored value products, with offices in Brisbane, Australia, Birmingham, United Kingdom and Kansas Ci
Slide 4: Global Reach and Banking Partners
1HFY17 Investor Presentation – General European Global Reach Banking Partners For personal use only Partnerships 100 Canadian Banking Partners USA/CAN 20 UK/EU Australian Banking Partners 42 AUS United States Banking Partners Australia Netherlands France Germany Ireland Italy Belgium Spain United Ki
Slide 5: Strategic Partnerships
1HFY17 Investor Presentation – General For personal use only Strategic Partnerships USA UK/EU CAN Operating in 5 currencies Partnerships Canadian Dollar (CAN) Pound Sterling (GBP) AUS USA Dollar (USD) Australian Dollar (AU) Euro (EU) Scheme Partners 5
Slide 6: Sales Verticals
1HFY17 Investor Presentation – Sales Verticals For personal use only Sales Segments Shopping Incentive & Retail Reloadable B2B Virtual Mall Gift Solutions Gift Card Solutions Disbursement (GPR) Payments Consumer & Employee Retail Incentives Gift Cards AU UK EU US/C AU UK EU US/C AU UK* EU US/C UK EU
Slide 7: Strong First Half Financial Result
1HFY17 Investor Presentation – Financials For personal use only Strong First Half Financial Result $32.4m 78.4% $9.96m $9.64m REVENUE GROSS MARGIN EBITDA OPERATING CASH FLOW +207% INCREASE ON +1.5% GROSS MARGIN +226% INCREASE +$9.3m INCREASE PCP IMPROVEMENT ON PCP ON PCP ON PCP 2017 © EML Payments L
Slide 8: Key Metrics
1HFY17 Investor Presentation – Key Metrics For personal use only Result Driven By Organic Growth In Key Metrics $1.93B 11.0m $392.8m $31.8m GROSS DEBIT VOLUME ACTIVE ACCOUNTS STORED VALUE BALANCES CASH ON BALANCE SHEET +389% OVER PCP +168% OVER PCP +$4.87m / +18% OVER PCP +403% OVER PCP ACROSS ALL A
Slide 9: Executive Summary
For personal use only Investor Presentation – Executive Summary EBITDA Up 226% to A$9.96m Revenue Up 207% to $32.4m • All regional business units contributed positive EBITDA to the group • 85% of revenues generated offshore and 90% of revenues are recurring. result. • Gaming revenues circa 7% of Gro
Slide 10: Key Programs Contracted In 1HFY17
1HFY17 Investor Presentation – Business Development For personal use only Key Programs Contracted In 1HFY17 GPR (General Purpose Reloadable) Non-Reloadable B2B Payment USA: Caesars Entertainment Bellevue Malls (USA) Sprint AUS: McMillan Shakespeare Limited Horizon Malls (USA) Clarcor AUS: Renewed Sp
Slide 11: Key Programs Contracted Post 1HFY17
1HFY17 Investor Presentation – Business Development For personal use only Key Programs Contracted Post 1HFY17 GPR (General Purpose Reloadable) Non-Reloadable B2B Payment AUS: Access Pay (Salary Packaging) EU: Dundrum Mall (Ireland) AUS: Eziway (Salary Packaging) AUS: The Star Entertainment Group Ren
Slide 12: Business Development Commentary: General Purpose Reloadable
1HFY17 Investor Presentation – Business Development For personal use only Over 300,000 GPR cards issued in Australia. Gaming programs represented only 7% of Group Revenue. Business Development Salary Packaging programs in Australia projected to load $700m in FY18 across Commentary more than 120,000
Slide 13: Business Development Commentary: Non-Reloadable
1HFY17 Investor Presentation – Business Development For personal use only B2B Gift card volumes in Australia marginally lower but softness has extended Business Development into the 2HFY17. if continued it will lower projected FY18 breakage and therefore EBITDA by $0.4-0.5m. Commentary Non-Reloadabl
Slide 14: Business Development Commentary: B2B Payments
1HFY17 Investor Presentation – Business Development For personal use only Business Development Economic model for EML is a net share of gross interchange revenues which is in the range of 250 bps. Commentary B2B Payments Conversion rates are the key driver – ie, of $1B in potential B2B payments, wha
Slide 15: Corporate Commentary
1HFY17 Investor Presentation – Corporate For personal use only Included in the ASX-300 in September 2016. Corporate Commentary Re-branded to EML Payments Limited and now operating under this brand in all regions, product and sales verticals. Increased our equity investment in PayWith Worldwide Inc.
Slide 16: PayWith Investment
1HFY17 Investor Presentation – PayWith Investment For personal use only EML acquired a 5% stake in PayWith Worldwide LLC (“PayWith”) when we acquired Store Financial Services in North America. Increased Ownership Stake in PayWith Worldwide Inc PayWith is a financial technology company focused on bui
Slide 17: Financials and Key Metrics
For personal use only Financials and Key Metrics
Slide 18: Key Metrics: Group GDV
For personal use only 1HFY17 Investor Presentation – Key Metrics Key Metrics Group Results: Total GDV (A$ millions) Total Gross Debit Volume (A$ millions) Group Results: Total GDV (A$ millions) Total Group Graph split by region Total Group split by product type 2500.0 2500.0 2500.0 2000.0 2000.0 200
Slide 19: Key Metrics: Regional Gross Debit Volume
For personal use only 1HFY17 Investor Presentation – Key Metrics Key Metrics Regional (Australia): Regional (U.K/Europe): Regional (North America): Total Gross Debit Volume Total Gross Debit Volume Total Gross Debit Volume (A$ Millions) (GBP£ Millions) (USD$ Millions) 350.0 1200.0 80.0 300.0 1000.0
Slide 20: Key Metrics: Active Accounts, GDV, Stored Value
For personal use only 1HFY17 Investor Presentation – Key Metrics Key Metrics Total Number of Active Accounts (millions) Total Gross Debit Volume Stored Value Graph split by region (A$ millions) (A$ millions) Graph split by region Graph split by region 12.0 2500.0 450.0 400.0 10.0 2000.0 350.0 8.0 30
Slide 21: Key Metrics: Revenue as a % of GDV
For personal use only 1HFY17 Investor Presentation – Key Metrics Key Metrics Australia Revenue Europe Revenue North American Revenue as a % of GDV as a % of GDV as a % of GDV 7.0% 1.6% 3.0% 6.0% 1.4% 2.5% 1.2% 5.0% 2.0% 1.0% 4.0% 1.5% 0.8% 3.0% 0.6% 1.0% 2.0% 0.4% 0.5% 1.0% 0.2% 0.0% 0.0% 0.0% H1201
Slide 22: Financial Results: Graphs By Region
1HFY17 Investor Presentation – Financial Results Financial Results For personal use only Graphs By Region Group Results: Revenue Group Results: Gross Profit Group Results: EBITDA (A$ millions) (A$ millions) (A$ millions) Graph split by region Graph split by region Graph split by region 35.0 30.0 12.
Slide 23: Financial Results: Total Group
1HFY17 Investor Presentation – Financial Results Financial Results For personal use only Total Group Group Results: Revenue / GDV (%) Revenue (A$ millions) & Gross Margin (%) Total Group 35.0 80% 3.00% 30.0 2.50% 75% A$ millions 25.0 2.00% 20.0 1.50% 70% 2.80% 2.60% 15.0 + 2.8% + 1.7% 1.00% 1.70% 10
Slide 24: Group EBITDA per Share and Impact of Currency
1HFY17 Investor Presentation – Financials Group Results: For personal use only Financials Impact of Currency EBITDA per share Negative EBITDA Impact of $1.0m in First Half 3 Year growth in Group EBITDA per share Revenue Split by source currency (%) 4.5 15% 4.0 33% EBITDA / Share (cents per Share) 3.
Slide 25: Consolidated Profit & Loss
1HFY17 Investor Presentation - Financials Consolidated Profit & Loss For personal use only 31 Dec 2016 31 Dec 15 ($000s) % Increase Six Months Ending Six Months Ending Australia 5,004 3,606 39% Europe 6,665 6,954 -4% Americas 20,771 0 - Total Revenue 32,440 10,560 207% Australia 3,608 2,829 28% 13.8
Slide 26: Group Balance Sheet & Cash Flow
1HFY17 Investor Presentation - Financials Group Balance Sheet & Cash Flow For personal use only ($000s) 31 December 2016 30 June 2016 % Increase Cash and cash equivalents 31,811 26,942 18% Breakage accrued 13,207 8,816 50% Other receivables and other assets 15,549 8,266 88% The cash balance as at 31
Slide 27: Investment Fundamentals
1HFY17 Investor Presentation – Investment Fundamentals For personal use only Investment Fundamentals Sales Pipeline Revenue Acceleration Scale We generate revenues from programs that are Significant market potential exists in all of our Gross margins averaging 78% and upwards of 90% directly sold by