Paypoint Plc · LSE:PAY
Paypoint — H1 2015 Earnings Presentation
42 slides from Paypoint's earnings presentation, Nov 27, 2014
Slide 1: Results for the half year ended 30 September 2014
Dominic Taylor & George Earle Results for the half year ended 30 September 2014 27 November 2014
Slide 2: Agenda
Agenda Highlights 3 Financial review 6 Operational review 11 Summary and future developments 19 Appendices 21 2 Results for the half year ended 30 September 2014
Slide 3: Highlights
Highlights
Slide 4: Half year results summary
Half year results summary Net revenue £m • A solid set of results with progress across all parts of the business • One PayPoint • Mobile and Online combined • Retail working more closely with Mobile and Online 49.3 54.1 57.9 • Net revenue up 7.0%1 and operating profit up 6.0%2 2012 2013 2014 Operati
Slide 5: PayPoint differentiation
PayPoint differentiation True multi-channel capability, providing ease of access; when, where and how the customer needs Business to business • One stop ‘app to bank’ service proposition for our clients • A mobile company that understands payments • A payments company that understands the consumer •
Slide 6: Financial review
Financial review
Slide 7: A solid set of results from continued retail business growth
A solid set of results from continued retail business growth 6 months 6 months Period ended September 2013 2014 £m £m Net revenue1 54.1 57.9 Other cost of sales (8.1) (7.9) Administrative costs (25.1) (27.8) Share of Collect+ JV 0.2 0.2 Operating profit2 21.2 22.4 Investment income less costs 0.1 0.
Slide 8: Net revenue grows by 7.0%
Net revenue grows by 7.0% £m 60 58 £0.0m £1.9m £0.4m 56 £1.5m £57.9m 54 £54.1m 52 50 2013 Top-ups 2014 Bill and general Mobile and Online Retail services 8 Results for the half year ended 30 September 2014
Slide 9: Cash generation and use
Cash generation and use 6 months 6 months Period ended September 2013 2014 £m £m Operating cash flows 24.1 25.9 Working capital (7.0) (8.9) Cash generated by operations 17.1 17.0 Tax paid (5.0) (5.0) Net cash inflow from operating activities 12.1 12.0 Net cash used in investing activities (5.6) (5.2
Slide 10: Financial review - summary
Financial review - summary • Strong balance sheet • Continued growth in: - net revenues - earnings - dividends • Ongoing investment to secure future growth 10 Results for the half year ended 30 September 2014
Slide 11: Operational review
Operational review
Slide 12: Retail Payments and Services
Retail Payments and Services • Strongly differentiated, over-the-counter payment proposition Retail as a percentage of group net revenue: • The network: • UK, Ireland and Romania • Over 36,700 convenience stores open early til late • Major utilities and service companies under long term contracts, w
Slide 13: Retail Payments and Services – UK and Ireland
Retail Payments and Services – UK and Ireland £m UK & Ireland retail net • Bill and general net revenues continued to show growth, 50 revenue bridge despite reduced gas volume 48 £1.8m • Top-ups net revenue increased despite mobile top-up decline 46 £0.3m £0.7m • Retail services net revenue growth d
Slide 14: Retail Payments and Services - Romania
Retail Payments and Services - Romania • Bill payment transactions increased by 53.0% Romania 2013 2014 • Top-ups transactions up by 9.4% reflecting strength of network Transactions (m) 19.3 28.3 • Bill payment market share 18.8% (September 2014), up 5ppts from last September, with significant growt
Slide 15: Collect+
Collect+ • Joint venture with Yodel to transform shopping fulfillment for consumers Collect+ at 100% 2013 2014 • Pioneer and clear market leader in parcel collection and returns through local shops, as convenient alternatives to home delivery or Post Offices Transactions (m) 5.7 8.4 • B2C (Click & C
Slide 16: Collect+
Collect+ • Service developments include: • In-store processes reviewed with a reduction in transaction time, reducing queues and improving customer service , • Partner developments include: • John Lewis Click & Collect+ service rolled out nationwide • Nespresso fully rolled out for return parcels –
Slide 17: Mobile and Online
Mobile and Online • Mobile and Online operating as one business (a combination of Mobile and Online as a PayPoint.net, PayByPhone and Adaptis in March 2014) under percentage of group net revenue: our new PayPoint group brand • Reorganisation progressed satisfactorily 13% • first two new payments pro
Slide 18: Mobile and Online
Mobile and Online Parking vertical: Consumer: • Flagship Mobile and Online consumer product • Opportunity to: • Leader in mobile parking payments in UK, France, • grow our consumer base beyond parking by USA and Canada extending into other verticals, such as utilities • Processed over 120 million tr
Slide 19: Summary and future developments
Summary and future developments
Slide 20: Summary and future developments
Summary and future developments Current year trading is in line with the company’s expectations and provides a strong foundation for future growth We will continue to execute our strategy: • Continued investment into the group payments platform to drive greater multi-channel capability and efficienc
Slide 21: Appendices
Appendices
Slide 22: Appendix 1
Appendix 1 The ‘essence’ of what we do
Slide 23: The 'essence' of what we do
The ‘essence’ of what we do • We process high volume consumer transactions, for multi-channel payments and retail services (e.g. parcels) for clients in vertical markets, through integrated flexible platforms • Payments are typically low value and cover retail, internet and mobile, with money flowin
Slide 24: Appendix 2: PayPoint Intelligent Commerce Platform
Appendix 2 PayPoint Intelligent Commerce Platform
Slide 25: The PayPoint Intelligent Commerce Platform
The PayPoint Intelligent Commerce Platform: Purpose built for the digital connected age Rich functionality includes: Advanced Payments Smart Controls • Payments Acceptance • Powerful Fraud Solution • Innovative Features • Real-Time Management • Enterprise Ready • Easy-to-use Tools • Flexible Integra
Slide 26: Appendix 3: UK retail
Appendix 3 Materials to support the consumer transaction – UK retail
Slide 27: UK Retail: Client media payment
Materials to support the consumer transaction UK Retail: Client media payment 27 Results for the half year ended 30 September 2014
Slide 28: UK Retail: Retail store
Materials to support the consumer transaction UK Retail: Retail store 28 Results for the half year ended 30 September 2014
Slide 29: UK Retail: Retailer external signage
Materials to support the consumer transaction UK Retail: Retailer external signage 29 Results for the half year ended 30 September 2014
Slide 30: UK Retail: In store merchandising
Materials to support the consumer transaction UK Retail: In store merchandising 30 Results for the half year ended 30 September 2014
Slide 31: UK Retail: Terminals, Pin Pads and ATMs
Materials to support the consumer transaction UK Retail: Terminals, Pin Pads and ATMs 31 Results for the half year ended 30 September 2014
Slide 32: UK Retail: Receipts
Materials to support the consumer transaction UK Retail: Receipts Sample E Top-up E Voucher SPAR Tag Utility Transport Ticketing Payment 32 Results for the half year ended 30 September 2014
Slide 33: UK Retail: PPOS virtual terminal
Materials to support the consumer transaction UK Retail: PPOS virtual terminal 33 Results for the half year ended 30 September 2014
Slide 34: UK Retail: New and developing sectors
Materials to support the consumer transaction UK Retail: New and developing sectors Digital content Cash Out 34 Results for the half year ended 30 September 2014
Slide 35: Appendix 4: PayByPhone
Appendix 4 Materials to support the consumer transaction – PayByPhone
Slide 36: PayByPhone: Parking payment via IVR, SMS, mobile web
Materials to support the consumer transaction PayByPhone: Parking payment via IVR, SMS, mobile web 36 Results for the half year ended 30 September 2014
Slide 37: Appendix 5: Collect+
Appendix 5 Materials to support the consumer transaction – Collect+
Slide 38: www.collectplus.co.uk
Materials to support the consumer transaction www.collectplus.co.uk 38 Results for the half year ended 30 September 2014
Slide 39: www.collectplus.co.uk
Materials to support the consumer transaction www.collectplus.co.uk 39 Results for the half year ended 30 September 2014
Slide 40: www.collectplus.co.uk
Materials to support the consumer transaction www.collectplus.co.uk 40 Results for the half year ended 30 September 2014
Slide 41: Collect+: Phone pick up barcode
Materials to support the consumer transaction Collect+: Phone pick up barcode 41 Results for the half year ended 30 September 2014
Slide 42: Collect+: UK network
Materials to support the consumer transaction Collect+: UK network Collect+ live agents • Target network density - 1 Mile urban - 5 Mile rural Over 5,800 locations live 42 Results for the half year ended 30 September 2014