Eml Payments Ltd. · ASX:EML
Eml Payments — FY2019 Earnings Presentation
32 slides from Eml Payments's earnings presentation, Aug 21, 2019
Slide 1: FY2019 Financial Results
FY2019 Financial Results 21 August 2019
Slide 2: Important Notice
Important Notice 01 This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information Business Update about EML’s activities current as at the date of this presentation. This Tom Cregan information is given in summary form and does no
Slide 3: EML Mission Statement
FY2019 Financial Results EML Mission Statement We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. —03
Slide 4: FY2019 Financial Results
FY2019 Financial Results —04
Slide 5: About Us – EML Snapshot
FY2019 Financial Results About Us – EML Snapshot EML is an ASX listed (ASX:EML) GROUP GDV (FY19) GROUP REVENUE (FY19) GROUP EBITDA (FY19) financial services company specialising in prepaid stored value products with offices in $9.03bn $97.2m $29.1m Australia, United Kingdom, Europe, 34% 37% 40% Unit
Slide 6: FY19 Highlights
Business Update FY19 Highlights — Record underlying EBITDA of $29.1m — Acquired and succesfully integrated PerfectCard DAC, (including acquisition costs of $0.6m), transitioning to self issuance in Europe utilising Irish up 40% from $20.8m in FY18. e-money licence. PFC exceeded acquisition case for
Slide 7: FY19 Business Update
Business Update FY19 Business Update Gift & Incentive General Purpose Reloadable (GPR) Virtual Account Numbers (VANS) 24% GDV Revenue GDV Revenue GDV Revenue $1.06bn $66.4m $2.74bn $23.9m $5.23bn $6.4m $0.74bn (FY18) $46.6m (FY18) $3.35bn (FY18) $21.6m (FY18) $2.67bn (FY18) $2.4m (FY18) Revenue up 4
Slide 8: Our Journey
FY2019 Financial Results Our Journey Incentives Launch of GPR Launch of GPR in Launch of GPR in Launch of largest + B2B & B2C Cards in Australia UK and Europe North America European mall program + Mastercard licence + Launch of + Expand into Poland Mobile Rewards and UAE + Expansion into + Expanded
Slide 9: EML continues to sign and launch programs
FY2019 Financial Results EML continues GIFT CARD to sign and launch programs across all three segments Unique Gift For Taxi Travel Payments Intu See overleaf for Conditions of Use Prepaid card Divipay 1234 5678 9000 0000 Valid thru 01/22 SATOSHI NAKAMOTO —09
Slide 10: Track Record of EBITDA Growth
FY2019 Financial Results Track Record of EBITDA Growth 82 % Growth Drivers 5 YR 32% Acquisition Gaming Expand European and North American EBITDA CAGR programs 68% Organic Salary Packaging Transition contracted benefit accounts Gift and Incentive +$8.3m Expand mall programs and use of instant gift FY
Slide 11: Our Progress – Gaming GPR
FY2019 Financial Results Our Progress – Gaming GPR North America Following a successful first launch and signing of our Ladbrokes, second customer in North Sportsbet bet365 Betsson contract America, this region continues to launch in launch signed, GVC offer strong growth prospects in 13 Australia i
Slide 12: Reloadable cards for the sports betting segment continue to scale globally
FY2019 Financial Results Reloadable cards for the sports betting segment continue to scale globally prepaid 4000 1234 5678 9010 prepaid JOHN SMITH prepaid 4000 1234 5678 9010 4000 1234 5678 9010 JOHN SMITH JOHN SMITH prepaid GOOD THRU 4000 1234 5678 9010 JOHN SMITH GOOD THRU GOOD THRU VALID THRU GOO
Slide 13: Our Progress – Malls
FY2019 Financial Results Our Progress – Malls Countries Following the acquisition of FEC we have now entered into Win ECE, Built Poland and UAE, taking the adding 90 instant gift, total number of countries we SFUK shopping incentive and operate in to 23 and opening Acquisition malls in promotion new
Slide 14: Gift and Incentive Growth Opportunities
FY2019 Financial Results Gift and Incentive Growth Opportunities Instant Reward EML introduced the first of c. 662 centres its kind Rewards promotion c. 55 centres in collaboration between Marvel Stadium, Disney, ESPN, and Seventh Beam to c. 196 centres deliver $100 Marvel gift cards directly to win
Slide 15: Our Progress – Salary Packaging
FY2019 Financial Results Our Progress – Salary Packaging SmartGroup Transition Launched with In 2019 we announced the contract five contracted End year with Smartgroup to transition the partners, on- with 133,000 remainder of their portfolio. We boarded 112,000 benefit expect to have completed the b
Slide 16: Contracted Total Addressable Market
FY2019 Financial Results Salary Packaging Update Salary Packaging Benefit Accounts EML is the largest provider 175k 350,000 of payment solutions to BENEFIT the Salary Packaging ACCOUNTS industry with more than 175,000 benefit accounts at June 2019 already in market. 250k 250,000 Total Addressable Ma
Slide 17: Consumer finance with delegated authority
FY2019 Financial Results Consumer finance with delegated authority 0 1 2 3 4 5 6 34 5678 9 12 Digital Real time VALID 01/21 Delegated THRU Payment load and Name Nam eson authorisation Solution settlement EML’s innovative solution Through delegated authorisation EML provides With Instabank, consumers
Slide 18: The People Behind Our Business
Business Update The People Behind Our Business - Appointed Group's first Chief People Officer - Revised STIP plan - First staff engagement survey completed - Launched employee communications program STAFF* 275 COUNTRIES 23 OFFICES* 5 Primary office locations + 5 satellite locations PEOPLE IN I.T. RO
Slide 19: FY19 Financial Results
FY19 =M@MI.. Financial Results Money in Motion
Slide 20: Financial Overview – Profit & Loss
FY2019 Financial Results Financial Overview – Profit & Loss ($’000s) GDV FY2018 6,752,210 FY2019 9,030,911 GROWTH 34% $9.03bn Record Gross Debit Volume, up 34% on prior year driven by G&I and VANs segments TOTAL REVENUE 71,020 97,195 37% Revenue conversion bps 105bps 108ps 3bps GROSS PROFIT GP margi
Slide 21: Gross Debit Volume (GDV)
FY2019 Financial Results Gross Debit Volume (GDV) GDV by Segment (A$m) GIFT & INCENTIVE $1.1bn Signed and launched 90 shopping malls in Germany in October 2018, full year contribution in FY20. 5 Year CAGR Acquired PerfectCard (4 July 18) contributed $83.9m GDV. 94% 44% Flex-e-Card (acquired 28 June
Slide 22: Revenue
FY2019 Financial Results Revenue FY19 Revenue by Segment Total Revenue (A$m) $97.2m 37% The adoption of AASB15 has had no impact on the GPR 5 Year CAGR 97 full FY19 financial statements as guided by management. 7% G&I VANS 61% 87% 25% Generated from recurring 71 revenue streams $84.6m from recurring
Slide 23: Gross Profit Margins
FY2019 Financial Results Gross Profit Margins GROSS PROFIT MARGIN Gross Profit Margins Gross Profit by Segment 75.1% consistent with PCP Group Interest G&I 6% GPR G&I VANS GPR 22% In line with our expectations, driven by: VANS —— Transitioned majority of our European business GP Margin to self issua
Slide 24: Overhead Expenditure
FY2019 Financial Results Overhead Expenditure OVERHEADS AS A % OF REVENUE 46% 2% 3% 7% 5% 6% 9% Overhead expenditure as a percentage of revenue declined to 9% 46%, as revenue growth outpaced overheads growth 7% Overheads expenditure of $43.9m was up $11.3m on prior year. FY18 5% FY19 8% Acquisitions
Slide 25: Income Statement
FY2019 Financial Results Income Statement ($’000s) GDV FY2018 6,752,210 FY2019 9,030,911 GROWTH 34% $29.1m 40% Record Group EBITDA in FY19 of $29.1m, EBITDA (A$m) 5 Year CAGR TOTAL REVENUE 71,020 97,195 37% Revenue conversion bps 105bps 108ps 3bps is inclusive of $0.6m acquisition costs. 82% GROSS P
Slide 26: Balance Sheet
FY2019 Financial Results Balance Sheet 30 June 30 June % ($’000s) 2018 2019 CHANGE Cash on hand of $33.1m, with $15m of debt. Underlying Cash and cash equivalents 39,006 33,085 (15%) operating cashflow of $22.1m, excluding one time Contract asset 19,826 31,828 61% accelerated breakage, converted at
Slide 27: Financial Overview – Cash flow
FY2019 Financial Results Financial Overview – Cash flow H1 FY19 Underlying Cashflow Movements CASH & CASH EQUIVALENTS $33.1m 15% 30,000 FY19 ($7.1m) EBITDA $29.1m Cash & Cash equivalents decreased $6m from 30 June 2018 due to investing outflows of $44.0m in relation to the acquisitions of 20,000 FY1
Slide 28: Q&A
Q&A
Slide 29: Key Data
Key Data =MI.. Money in Motion
Slide 30: Key Data - 3 Years
FY2019 Financial Results Key Data - 3 Years Key Metrics ($’000s) H1 2017 H2 2017 FY2017 H1 2018 H2 2018 FY2018 H1 2019 H2 2019 FY2019 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths Headcount (closing) 168 170 170 184 182 184 236 275 275 Average Headcount for the period 158 169
Slide 31: Key Data - FY17-FY19
FY2019 Financial Results Key Data - FY17-FY19 Key Financials ($’000s) H1 2017 H2 2017 FY2017 H1 2018 H2 2018 FY2018 H1 2019 H2 2019 FY2019 6mnths 6mnths 6 mnths 6mnths 6mnths 6 mnths 6mnths 6mnths 12 mnths Revenue (includes interest income) $27,947 $30,013 $57,960 $33,908 $37,112 $71,020 $47,194 $50
Slide 32: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com