Deluxe Corporation · NYSE:DLX
Deluxe — Investor Presentation (March 2022)
29 slides from Deluxe's investor presentation, March 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022 © 2022 Deluxe Corporation
Slide 2: Cautionary Statement
Cautionary Statement Statements made in this presentation concerning Deluxe, the company’s or management’s intentions, expectations, outlook or predictions about future results or events are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such
Slide 3: Deluxe Platforms Help Businesses Succeed in 3 Core Areas
Deluxe Platforms Help Businesses Succeed in 3 Core Areas 1. Pay with Ease 2. Get Paid Faster 3. Grow Profitably Payables as a Service (Deluxe Receivables as a Service Data-Driven Marketing Payment Exchange - DPX) Automate payment processing and cash Actionable data, analytics and campaign Send digit
Slide 4: Scale & Growth in Big Markets: Payments and Data
Scale & Growth in Big Markets: Payments and Data OUR SOLUTIONS WHERE & HOW WE WIN WHY WE WIN CURRENT SCALE Payables as a Service (DPX) Selling to Enterprises and » Non-disruptive to AP 1. Send digital payouts and remittance data without friction SMBs directly and through FIs and industry-specific »
Slide 5: 4 Clear Segments: Payments | Cloud | Promo | Checks
4 Clear Segments: Payments | Cloud | Promo | Checks Diversification, Growth, and Strong, Predictable Cash Flow $2.2B $436M Growth Drivers DLX Diversified Revenue 2021 Proforma 2021 Proforma 2021 Proforma Revenue1 Adjusted EBITDA1 +3.6% year-over-year Scaled distribution model and channels Promo, 25%
Slide 6: Power of One Deluxe Model: Exceptional Reach
Power of One Deluxe Model: Exceptional Reach Targeting Enterprises and Small Businesses 4,000 financial 100+ integrated Business partners Direct-to-business Marketplaces institution partners software providers Vertical-Specific Affiliates 4M Small-Medium and platform Preferred partner for Integrated
Slide 7: One Deluxe Results & Opportunity
One Deluxe Results & Opportunity » Sales-driven growth in FY 2021 - first time in nearly a decade » Sold 13 of largest 20 deals of the last decade, and largest in company history - during COVID » First American acquisition • Tripled new bank deals within first 180 days • Accelerated growth from hist
Slide 8: Driving Innovation Through Robust Technology Platforms
Driving Innovation Through Robust Technology Platforms Pay with Ease Get Paid Faster Grow Profitably Fast Deployments Integrated APIs to enable speedy implementations and Accessible access to infrastructure in Scalable Easily access front and minutes Access to effectively back-end portals anytime, l
Slide 9: Successfully Executing Growth Strategy
Successfully Executing Growth Strategy Four Pillars Driving Future Growth Promotional Growth Sales Solutions Checks Businesses Profitability • Unified Go-To-Market sales • Focus on growing • Continue to improve • Capture new market share approach Payments and Data distribution cost model • Executing
Slide 10: Positioned for Long-Term Growth
Positioned for Long-Term Growth Established Strong Foundation What’s Next Built sales organization Continue to scale distribution model • Unified view of the customer • Sell-through partners • Leverage existing customers to cross-sell • Expand into new verticals additional products • Added customer
Slide 11: Appendix
dlx« Appendix
Slide 12: Payments Growth Fueled by Innovation
Payments 2021 Proforma Revenue1 $645M 2021 % Proforma Company 30% Payments Growth Fueled by Innovation Revenue » Fastest Growing Segment in Strong Secular Growth Industry 2021 Adjusted EBITDA 21% Margin Enabling Businesses of all Sizes to Pay, Get Paid, and Grow Profitably Expected LT Growth High-si
Slide 13: Differentiation: Leading With Technology and Distribution
Payments Differentiation: Leading With Technology and Distribution Platform Scale Distribution Scale $3.0T $27B+ $25B+ 4,000 receivables transactions1 processing volume payments disbursed financial institution partners » Unrivaled scale » Top 10 non-bank acquirer » 3 million suppliers and » 180 of t
Slide 14: Strong Market Position Winning Against Point Solutions Providers
Payments Strong Market Position Winning Against Point Solutions Providers Deluxe Payments Optimizing how businesses pay, get paid, and grow profitably A compelling product portfolio showing a Our Competitors clear end vision for customers Payables as a Payroll and Receivables Merchant Lockbox Servic
Slide 15: Market: Underpenetrated and Massive Opportunity
Payments Market: Underpenetrated and Massive Opportunity Pay with Ease Get Paid Faster Payables as a Service Receivables as a Service Convert paper to digital payouts and evolve to Automating payment processing and cash integrated payables for application for all receivables is a $ 25T $ 11T $5-10B
Slide 16: Transforming Into a Scaled Payments Company
Payments Transforming Into a Scaled Payments Company The largest acquisition in Deluxe’s 100+ year history Scaled payment processor that provides partners ACQUISITION RATIONALE and merchants with a full suite of payment solutions: FAPS was selected out of 60+ potential acquisition targets analyzed M
Slide 17: Payments Becoming a Larger Portion of Revenue and Adjusted EBITDA
Payments Payments Becoming a Larger Portion of Revenue and Adjusted EBITDA Revenue Total Segment Adjusted EBITDA1 Payments is ~30% of DLX Pro Forma 2021 Revenue Payments is ~22% of DLX Pro Forma 2021 Total Segment Adjusted EBITDA Pro Forma 2021 Deluxe Pro Forma 2021 Deluxe 2019 Deluxe including Firs
Slide 18: Cloud Solutions: Data-Driven Growth
Cloud Solutions Cloud Solutions: Data-Driven Growth » Moderate Growth Segment to Grow Enterprises and Start / Manage SMBs Our Solutions Where We Win Why We Win Data Analytics FIs and Enterprises • Sophisticated AI tools 2021 $262M Revenue Full-service, omni-channel, Shifting to highly targeted campa
Slide 19: Promotional Solutions: Tech-Driven Platform
Promo Promotional Solutions: Tech-Driven Platform » Modest growth segment helping businesses manage their brand and physical corporate-branded merchandise Our Solutions Where We Win Why We Win • SMBs • Omni-channel distribution 2021 $546M Platform to Manage a • Enterprises • Well-curated selection R
Slide 20: Checks: Trusted, Long-Term Relationships Drive Cross-Sells
Checks Checks: Trusted, Long-Term Relationships Drive Cross-Sells » Rich Cash-Generating Segment Funding Deluxe’s Overall Growth Solutions Where We Win Why We Win Strong cash flow organically Growing market • Superior Product – appropriate continued 2021 $703M funds growth AND investment; design and
Slide 21: Deluxe Competitive Landscape
Deluxe Competitive Landscape Promotional Promotional Payments Cloud Checks Payments Cloud Products Checks Products • Fiserv, FIS, Global Payments • LegalZoom, BizFilings, IncNow • Web to Print and Local Printers • Harland Clarke, Main Street • Paychex, ADP, Paycor, Gusto, • Cimpress/VistaPrint, • En
Slide 22: Investor Contact
Investor Contact Tom Morabito Vice President, Investor Relations tom.morabito@deluxe.com 22
Slide 23: Reconciliations
dlx« Reconciliations
Slide 24: Consolidated Condensed Statements of Income
Consolidated Condensed Statements of Income in millions, except per share amounts (Unaudited) 24
Slide 25: Segment Information
Segment Information in millions (Unaudited) The segment information reported here was calculated utilizing the methodology outlined in the Notes to Consolidated Financial Statements included in the company's 25 Annual Report on Form 10-K for the year ended December 31, 2021.
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin in millions (Unaudited) 26
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS dollars and shares in millions, except per share amounts (Unaudited) 27
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Pro Forma Adjusted EBITDA In millions (Unaudited) 28
Slide 29: deluxe.
deluxe. trusted payments & business technology