Eml Payments Ltd. · ASX:EML
Eml Payments — H1 FY23 Earnings Presentation
32 slides from Eml Payments's earnings presentation, Feb 22, 2023
Slide 1: Investor Presentation ASX announcement
22 February 2023 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 For personal use only INVESTOR PRESENTATION EML Payments Limited (ASX:EML) (“EML or Company”) is pleased to provide investors with the following presentation. About EML Payments Limited EML Payments is a global payments compa
Slide 2: Half Year 2023 Interim Results
For personal use only Half Year 2023 Interim Results. 22 February 2023
Slide 3: Contents and Important Notice
For personal use only 01 02 Emma Shand. Financial Transformation Managing Director and Group CEO Results Strategy Contents. Update Jonathan Gatt. 03 Interim Group CFO Q&A Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general bac
Slide 4: Financial overview
Financial overview. Revenue1 Business Segment Performance For personal use only $116.6m 2% on PCP Segment GPR Gifting Digital Payments Revenue1 $72.1m $34.0m $10.5m (PCP: $69.6m) (PCP: $37.1m) (PCP: $7.7m) Underlying EBITDA 2 Underlying 59% 80% 89% $13.4m 50% on PCP GP3% (PCP: 56%) (PCP: 81%) (PCP:
Slide 5: Financial Results
For personal use only — 01 Financial Results.
Slide 6: H1 FY23 Financial performance
H1 FY23 Financial performance. For personal use only Key Messages Metric H1 FY23 H1 FY22 Change Revenue up 2% PCP — Interest revenue of $9.4m, vs $2.3m in H1 FY22, offset by lower establishment fees, down $4m on PCP, and impacts of once off GDV $49.4bn $31.6bn 55% service fee and breakage revenue re
Slide 7: Reported vs underlying results
Reported vs underlying results. For personal use only Reported EBITDA1 ($8.2m) $4.6m $13.4m $8.5m — Regulatory remediation and class action costs $8.5m — Fraud costs $8.5m ($8.2m) $8.5m — Restructuring costs and strategy establishment $4.6m Underlying EBITDA2 $13.4m Reported Regulatory Fraud Restruc
Slide 8: Results maintained despite headwinds (GPR)
Results maintained despite headwinds. For personal use only General Purpose Reloadable (GPR) GDV Revenue1 Underlying Gross Profit1 $6.5bn 4% $72.1m 4% $42.6m 8% (H1 FY22: $6.3bn) (H1 FY22: $69.6m) (H1 FY22: $39.1m) — GDV volumes grew $0.2bn, or 4% on the prior year — Underlying growth in the half se
Slide 9: Gift seasonal volumes strong
Gift seasonal volumes strong. For personal use only Gifting GDV Revenue1 Underlying Gross Profit1 $1.1bn 16% $34.0m 8% $27.2m 10% (H1 FY22: $0.9bn) (H1 FY22: $37.1m) (H1 FY22: $30.1m) — Gifting is a seasonal business with majority of — A key contributor were employee benefits programs — Excluding on
Slide 10: Open banking volumes continued growth
Open banking volumes continued growth. For personal use only Digital Payments GDV Revenue1 Underlying Gross Profit1 $41.8bn 71% $10.5m 37% $9.1m 45% (H1 FY22: $24.4bn) (H1 FY22: $7.7m) (H1 FY22: $6.3m) — Sentenial Direct Debit and Open Banking Volumes — Excluding Sentenial, digital payment volumes w
Slide 11: Underlying overheads
Underlying overheads. For personal use only $65.5m 35% $65.5m — Underlying overheads for the Group increased by 35% or $2.1m $17.0m on PCP $1.7m $4.0m $1.5m — Sentenial Group was up $4.7m on PCP, representing the inclusion for the full six months (vs from acquisition date $3.0m in the PCP) and addit
Slide 12: Financial position
Financial position. For personal use only 30 June 31 December Cardholder Corporate ($’000s) 2022 2022 Growth assets/ liabilities balance sheet Cash and cash equivalents 73,699 79,199 7% 79,199 — Cash on hand of $79.2m. During the period Contract asset 21,531 22,229 3% 22,229 we realised our investme
Slide 13: Impairments
Impairments. For personal use only PFS Group Sentenial Group — PFS Group acquisition completed March 2020 with purchase price A$252m, inclusive of — Sentenial Group acquisition announced on 6 April 2021 for A$109m upfront consideration A$40m vendor loan notes payable on 30 June 2024 and 30 June 2025
Slide 14: Financial performance – cash flow
Financial performance – cash flow. For personal use only Cash and Cash Equivalents Cash inflow from the sale of H1 FY23 Underlying Operating Cash Flow Movements Balance Interchecks $79.2m $10.9m $4.2m ($1.6m) $13.6m $8.8m Underlying Operating Cash Capitalised internally Inflows1 developed software $
Slide 15: Continuing benefits from interest
Continuing benefits from interest. For personal use only Interest rates and stored float Stored float at December 2022 4% 3% Overview — As at 31 December 2022, EML held an AUD equivalent of $2.9bn in its stored float, $2.3bn of which was held in cash and a further $0.6bn in highly rated, low-risk bo
Slide 16: FY23 - Financial guidance
FY23 - Financial guidance. For personal use only Revenue Underlying EBITDA – H1 FY23 to FY23 Guidance Bridge $235m - $245m $6-10m ($2-9m) (FY22: $234.1m) Gross profit margin ~$13.4m $26-34m ~67% (FY22: 68%) Overheads $13.4m $133m - $140m (FY22 $108.4m) H1 FY23 H2 FY23 Add: GP Less: Cost Underlying U
Slide 17: Strategy Update
For personal use only — 02 Strategy Update. — 16 emlpayments.com
Slide 18: A new chapter for EML
A new chapter for EML. Our transformation strategy For personal use only Transformation Pillars Enablers Purpose, Values & Culture Elevate Elevate EU and UK remediation efforts, embedding a strong risk aware culture Product-led Streamline Streamline customer and operational Tech Capabilities effecti
Slide 19: Elevate Strategy
Elevate Strategy. Elevate EU & UK remediation efforts, embedding a strong risk aware culture For personal use only Calendar Q1 2021 - Q3 2022 Q4 2022 - Q1 2023 Q2 2023 Q3 - Q4 2023 Remediation Additional remediation and Embed, QA Resolution of any residual issues and PCSIL Remediation program execut
Slide 20: Elevate Progress
Elevate Progress. Elevate EU, PCSIL Ireland Elevate UK, PFS UK For personal use only Distributor Review to be completed Risk Matrix Approved & Data Platform Launched, Board Governance by end of February Enterprise Wide Risk Elevate as a Priority Strengthened Review of business models and key Assessm
Slide 21: Streamline Strategy
Streamline Strategy. Streamline Customer & Operational Effectiveness For personal use only Transform customer journey and service Right-sized organisation and structure aligned to strategy － Automated onboarding and lifecycle management － Revise and embed purpose and values － Customer segmentation a
Slide 22: Streamline Progress
Streamline Progress. Strategic Initiatives Underway For personal use only Transform customer journey and service Right-sized organisation and structure aligned to strategy － Customer segmentation, profitability & risk profiling commenced － New global leadership structure; Org rollout Feb and March －
Slide 23: Reposition for Growth Strategy
Reposition for Growth Strategy. Reposition the base and evolve from prepaid cards into an embedded finance leader in 4 key sectors For personal use only Customer Proposition EML’s 4 sectors represent over 70% of Feature rich embedded payments with end-to-end business management, global total address
Slide 24: Reposition for Growth Progress
Reposition for Growth Progress. Early wins on repositioning our growth strategy, as the embedded finance partner of choice For personal use only New HCM & Payroll product suite launched – New HCM product suite launched with digital marketing campaign – New HCM client Ceridian has gone live with two
Slide 25: Q&A
For personal use only — 03 Q&A. — 24 emlpayments.com
Slide 26: Analyst briefing data
For personal use only Analyst briefing data. — 25 emlpayments.com
Slide 27: Analyst briefing data
Analyst briefing data. For personal use only Key Financials ($’000s) H1 FY21 H2 FY21 FY21 H1 FY22 H2 FY22 FY22 H1 FY23 6 months 6 months 12 months 6 months 6 months 12 months 6 months Headcount (closing) 486 540 540 584 642 642 586 Total Stored Value (including bonds) - AUD $1,844,262 $2,103,963 $2,
Slide 28: Analyst briefing data
Analyst briefing data. For personal use only Key Financials ($’000s) H1 FY21 H2 FY21 FY21 H1 FY22 H2 FY22 FY22 H1 FY23 6 months 6 months 12 months 6 months 6 months 12 months 6 months General Purpose Reloadable $4,874,500 $4,868,096 $9,742,596 $6,264,905 $6,089,917 $12,354,823 $6,543,731 Gifting $75
Slide 29: Analyst briefing data
Analyst briefing data. For personal use only Key Financials ($’000s) H1 FY21 H2 FY21 FY21 H1 FY22 H2 FY22 FY22 H1 FY23 6 months 6 months 12 months 6 months 6 months 12 months 6 months Revenue (includes interest income) $95,329 $98,847 $194,176 $114,416 $117,964 $234,119 $116,648 Underlying Gross pro
Slide 30: Glossary
For personal use only Glossary. — 29 emlpayments.com
Slide 31: Glossary
Glossary. For personal use only Abbreviation Meaning Abbreviation Meaning Abbreviation Meaning A2A Account-2-Account EBITDA Earnings Before Interest, Taxes, Depreciation OH Overheads and Amortisation. AASB Australian Accounting Standards Board PCI-DSS Payment Card Industry Data Security EBITDA is eq
Slide 32: Thank you
For personal use only Thank you.