Eml Payments Ltd. · ASX:EML
Eml Payments — Investor Presentation (February 2020)
28 slides from Eml Payments's investor presentation, Feb 25, 2020
Slide 1: Investor Presentation ASX announcement
25 February 2020 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 For personal use only Investor Presentation EML Payments Limited (ASX: EML) will be presenting to numerous +61 (07) 3557 1100 investors in the following two weeks, please find attached the Investor Level 12 Presentation. 333
Slide 2: EML Payments H1 FY20 Investor Presentation
For personal use only February 2020 EML Payments EMLH1FY20INVESTORPRESENTATION_D12
Slide 3: Important Notice
For personal use only 01 Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information Business Model & Update about EML’s activities current as at the date of this presentation. This information is given in summa
Slide 4: Our Mission
EML Payments Investor Presentation Our Mission For personal use only We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. – 03
Slide 5: Business Model & Update
Business Model & For personal use only Update
Slide 6: About Us – EML snapshot
EML Payments Investor Presentation About Us – EML snapshot (6 months to 31 December) For personal use only EML is an ASX listed (ASX:EML) GROUP GDV (H1FY20) GROUP REVENUE (H1FY20) GROUP EBITDA (H1FY20) GROUP NPATA (H1FY20) fintech specialising in prepaid stored value products with offices $6.62bn $5
Slide 7: Our Journey
EML Payments Investor Presentation Our Journey For personal use only Incentives Launch of GPR Launch of GPR in Launch of GPR in Launch of largest European + B2B & B2C Cards in Australia UK and Europe North America mall program + Mastercard licence + Launch of + Expand into Poland and Mobile Rewards
Slide 8: EML Salary Packaging and EML Pays videos
EML Payments Investor Presentation For personal use only EML Salary Packaging EML Pays Watch the video here Watch the video here https://www.youtube.com/watch?v=bMatmaPns1c https://www.youtube.com/watch?v=-LRx0NfkJt8 – 07
Slide 9: Consumer finance with innovative EML ControlPay
EML Payments Investor Presentation Consumer finance with Innovative EML ControlPay For personal use only Digital Delegated Real time Payment authorisation load and Solution settlement 1234 5678 9012 3456 VALID THRU 01/21 Name Nameson – 08
Slide 10: Business Model - Sources of revenue
EML Payments Investor Presentation Business Model - Sources of revenue 05 Customer info system authorises transaction and adjusts cardholder account balance For personal use only EML Software 01 EML issues prepaid card Interchange 06 Revenue Transaction authorised Establishment Plastics Fee Physical
Slide 11: Business Model - Barriers to Entry
EML Payments Investor Presentation Business Model - Barriers to Entry For personal use only End to end nd to End payment E processing platform (card issuing, transaction processing, fraud control, settlement and reconciliation) Customers Merchants Regulatory and compliance Information Fraud across t
Slide 12: How we think about growth
EML Payments Investor Presentation How we think about growth For personal use only FY19 GDV Growth Strong Organic Growth Acquisitions GDV growth from existing customers in FY19 at $2.0bn $2.3 Billion 17.5x Constant Growth Drivers Acquisition Multiple (2019) Acquisition pending completion of conditio
Slide 13: Track Record of EBITDA Growth and Growth Drivers
EML Payments Investor Presentation Track Record of EBITDA Growth Growth Drivers 59 Gaming % For personal use only Expand global gaming programs — Launched RoundPeak (USA), bet365 (USA), Star Casino (Italy) and SuperSports (Croatia) 5 YR FIRST HALF EBITDA 37% Organic Salary Packaging CAGR 63% Acquisi
Slide 14: H1 FY20 Business Update
EML Payments Business Model & Update H1 FY20 Business Update Gift & Incentive (G&I) General Purpose Reloadable (GPR) Virtual Account Numbers (VANS) For personal use only 24% GDV Revenue GDV Revenue GDV Revenue $0.84bn $40.1m $1.47bn $13.2m $4.31bn $5.5m $0.66bn (H1FY19) $32.4m (H1FY19) $1.40bn (H1FY
Slide 15: Acquisition of Prepaid Financial Services (Ireland) Limited
EML Payments Investor Presentation Acquisition of Prepaid Financial Services (Ireland) Limited ('PFS') — EML has entered into a binding agreement to acquire 100% of PFS for an enterprise value of £226 million (A$423 million) (Upfront Enterprise Value), For personal use only plus an earn-out componen
Slide 16: PFS at a Glance and Key Investment Highlights
EML Payments Investor Presentation PFS at a Glance Key Investment Highlights For personal use only PFS’ prepaid payments and digital banking capabilities, regulatory Electronic Money Institution status in the UK and Europe alongside flexible software enables financial institutions and non-financial
Slide 17: PFS Solution Suite
EML Payments Investor Presentation PFS Solution Suite For personal use only Digital Banking & Government, Local Corporate Solutions Multi-Currency Instant Issue Current Accounts Authority & NGO & Incentive Schemes Travel Cards & GPR 43% of GDV 42% of GDV 7% of GDV 6% of GDV 1% of GDV Online / mobile
Slide 18: H1 FY20 Financial Results Review
H1 FY20 For personal use only Financial Results Review
Slide 19: Financial Overview – Profit & Loss
EML Payments Investor Presentation Financial Overview – Profit & Loss ($’000s) H1FY19 H1FY20 GROWTH For personal use only $6.62bn Record Gross Debit Volume, GDV $4.14B $6.62B 60% TOTAL REVENUE 47,194 59,156 25% up 59% on prior year driven Revenue conversion bps 1.14% 0.89% (21%) by G&I and VANs segm
Slide 20: Balance Sheet
EML Payments Investor Presentation Balance Sheet For personal use only 30 June 31 December % ($’000s) 2019 2019 CHANGE Cash on hand of $256.8m, with no debt following the Cash and cash equivalents 33,085 256,812 676% repayment of $15m in December 2019. EML raised approx. Contract asset 31,828 32,713
Slide 21: Financial Overview – Cash flow
EML Payments Investor Presentation Financial Overview – Cash flow For personal use only CASH & CASH EQUIVALENTS H1 FY20 Underlying Cashflow Movements 20,000 $256.8m 676% H1FY20 EBITDA Cash & Cash equivalents increased $223.7m from 30 June 2019 including $19.7m cash inflows from a capital raise of $2
Slide 22: Outlook & FY2020 Guidance
Outlook & FY2020 For personal use only Guidance
Slide 23: FY2020 - Financial Guidance excluding PFS
EML Payments Investor Presentation FY2020 - Financial Guidance excluding PFS The Group expects Assumptions: For personal use only EBITDA1 to be in a range of 01 03 A$39.5m-$42.5m Underlying EBITDA now excludes acquisition costs in FY20 and prior Declining global interest rates negatively impacting i
Slide 24: Financial Guidance - pro forma including PFS
EML Payments Investor Presentation Financial Guidance - pro forma including PFS 65,000 01 Acquisition of PFS is subject to satisfactory For personal use only completion of certain conditions precedent, including regulatory approval from CBoI (Ireland) and FCA (UK) PFS pro forma 02 Pro forma view pre
Slide 25: Q&A and Thank you
Q&A and Thank you For personal use only Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com Subscribe to investor news at emlpayments.com/investors
Slide 26: Key Data
For personal use only Key Data
Slide 27: Key Data - Years
EML Payments Investor Presentation Key Data - 3 Years For personal use only Key Metrics ($’000s) H1 2018A H2 2018A FY2018A H1 2019A H2 2019A FY2019A H1 2020A 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths Headcount (closing) 184 182 184 236 275 275 272 Average Headcount for the period 174 185
Slide 28: Key Data - FY18-FY20
EML Payments Investor Presentation Key Data - FY18-FY20 For personal use only Key Financials ($’000s) H1 2018 H2 2018 FY2018 H1 2019 H2 2019 FY2019 H1 2020 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths Revenue (includes interest income) $33,908 $37,112 $71,020 $47,194 $50,001 $97,195 $59,156