Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q1 2021 Earnings Presentation
23 slides from Euronet Worldwide's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Financial Results
First Quarter 2021 Financial Results PRESENTERS: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP AND CFO KEVIN J. CAPONECCHI, EVP & CEO EPAY, EFT ASIA PACIFIC & SOFTWARE SCOTT CLAASSEN, GENERAL COUNSEL 28 April 2021 | Slide 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking
Slide 3: Business Update
Business Update MICHAEL J. BROWN, CHAIRMAN & CEO 28 April 2021 | Slide 3
Slide 4: Defined Terms
Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of
Slide 5: Current State of Business
Current State of Business ‣ Momentum continued into 2021: ‣ Strong balance sheet continues to support digital expansion and enabled the pending acquisition of Piraeus Bank’s Merchant Acquiring Business ‣ Two of the three segments reported exceptional double-digit earnings growth ‣ Business Highlight
Slide 6: EFT European Travel Indicators
EFT European Travel Indicators ‣ European travel indicators show actual travel is ahead of January forecasted levels through March ‣ According to the UN World Tourism Organization, there was a spike in actual air reservations and hotel bookings in February and March 2021 ‣ According to the European
Slide 7: EFT Quarterly Highlights
EFT Quarterly Highlights ‣ Expanded Distribution: ‣ Agreed to purchase Piraeus Bank Merchant Acquiring business in Greece ‣ Signed agreement with Bank of Philippine Islands (BPI) to convert 300 existing bank-branded ATMs to Euronet ATMs ‣ Signed ATM network participation agreements with four additio
Slide 8: epay Quarterly Highlights
epay Quarterly Highlights ‣ Launched: ‣ Microsoft end user fulfillment platform as a service in 50 countries worldwide ‣ Fame Hype, a white label platform for gaming influencers, via digital channels in 14 countries ‣ DAZN streaming sporting event subscriptions in Brazil, Japan & the U.S. ‣ Google P
Slide 9: Money Transfer Quarterly Highlights
Money Transfer Quarterly Highlights ‣ Network Growth: ‣ Our network reaches: ‣ 475,000 total retail network locations, an 18% increase vs. 1Q 2020 ‣ 159 countries ‣ 3.6 billion bank accounts and 200 million wallet accounts ‣ Correspondent Expansion: ‣ Launched 13 new correspondents in 13 countries ‣
Slide 10: Euronet Technology Success Update
Euronet Technology Success Update ‣ Signed agreement with Standard Chartered Bank to launch “Nexus”, a new banking as a service solution in Indonesia ‣ REN is helping SCB connect to leading e- commerce marketplaces in the country to offer financial products and payment solutions ‣ Signed REN Connect
Slide 11: Financial Highlights First Quarter 2021
Financial Highlights First Quarter 2021 RICK L. WELLER, EVP & CFO 28 April 2021 | Slide 11
Slide 12: Financial Highlights First Quarter 2021: Balance Sheet Overview
Financial Highlights First Quarter 2021 Balance Sheet Overview USD 12/31/2020 3/31/2021 (in millions) Unrestricted Cash $ 1,420.3 $ 1,145.4 ATM Cash 411.1 339.9 Settlement Assets 1,140.9 960.3 Total Assets 4,926.7 4,350.8 Total Debt 1,451.0 1,154.3 Total Debt to Trailing Twelve Month Adjusted EBITDA
Slide 13: Financial Highlights First Quarter 2021
Financial Highlights First Quarter 2021 ‣ Revenue - $652.7 million ‣ 12% increase from $583.9 million for Q1 2020 ‣ 7% increase on a constant currency basis ‣ Operating Income - $10.4 million ‣ 67% decrease from $31.6 million for Q1 2020 ‣ 70% decrease on a constant currency basis ‣ Adjusted EBITDA
Slide 14: Three Year Transaction Trend
Financial Highlights First Quarter 2021 Three Year Transaction Trend 28 April 2021 | Slide 14
Slide 15: Same Quarter Prior Year Comparison
Financial Highlights First Quarter 2021 Same Quarter Prior Year Comparison USD (in millions) Revenue Operating Income Adjusted EBITDA Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 EFT Processing $ 145.8 $ 87.1 $ 4.9 $ (40.1) $ 25.2 $ (18.1) % Change -40% -918% -172% epay 172.9 242.3 16.5 29.2 18.3
Slide 16: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights First Quarter 2021 Same Quarter Prior Year Comparison – Constant Currency USD (in millions) Revenue Operating Income Adjusted EBITDA Q1 2020 Q1 2021* Q1 2020 Q1 2021* Q1 2020 Q1 2021* EFT Processing $ 145.8 $ 83.8 $ 4.9 $ (36.8) $ 25.2 $ (16.0) % Change -43% -851% -163% epay 172
Slide 17: Closing Remarks
Closing Remarks MICHAEL J. BROWN, CHAIRMAN & CEO 28 April 2021 | Slide 17
Slide 18: Supplemental Data
Supplemental Data 28 April 2021 | Slide 18
Slide 19: Reconciliation Net Loss to Operating Income and Adjusted EBITDA, Q1 2021
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation Net Loss to Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Three months ended March 31, 2021 EFT Money Corporate Processing epay Transfer Services Consolidated Net loss $ (8.7) Add: Income tax expense 6.1 Add: Total othe
Slide 20: Reconciliation of Net Income to Operating Income and Adjusted EBITDA, Q1 2020
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended March 31, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 1.7 Add: Income tax expense 2.4 Less: T
Slide 21: Reconciliation to Constant Currency Amounts by Segment
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Revenue, Operating Loss (Income) and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) (unaudited - in millions) Three months ended ended March 31, 2021 EFT Money Corporate Processing epay Transfer Services C
Slide 22: Reconciliation of Adjusted Earnings per Share
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Three Months Ended March 31, 2021 2020 Net (loss) income attributable to Euronet Worldwide, Inc. $ (8.7) $ 1.9 Foreign currency exchange loss 4.0 18.8 In
Slide 23: Thank You
Thank You EURONET WORLDWIDE, INC. 28 April 2021 | Slide 23