Slide 1: WEX Fourth Quarter 2020 Earnings
WEX Fourth Quarter 2020 Earnings February 24, 2021
Slide 2: WEX Forward-Looking Statements
WEX Forward-Looking Statements These earnings materials contains forward-looking statements, including statements regarding: assumptions underlying the Company's future financial performance, future operations; future growth opportunities and expectations; expectations for future revenue performance
Slide 3: 4Q2020 Highlights
4Q2020 Highlights 4Q2020 Segment Revenue Growth Vs. 4Q2019 US Healthcare up 12% (1) (1) (1) -9.7% -22.0% +6.4% Fleet Travel & Corporate Health & Employee Benefits Note: In the fourth quarter of 2019, we had a negative $14 million revenue recognition adjustment that also reduced sales and marketing e
Slide 4: Full Year 2020 Highlights
Full Year 2020 Highlights 2020 Segment Revenue Growth Vs. 2019 US Healthcare up 18% (1) (1) (1) -11.6% -24.5% +14.6% Fleet Travel & Corporate Health & Employee Benefits 4 (1) Health and Employee Benefits segment represents US Healthcare purchase volume only
Slide 5: Strategy Highlights
Strategy Highlights STRATEGIC PILLARS OUR VALUES INNOVATION / EXECUTION / INTEGRITY / RELATIONSHIPS / COMMUNITY 2020 HIGHLIGHTS • Strong new customer signings in each line of business • Continued to experience strong organic revenue growth in US Healthcare and Corporate Payments • Cloud migration co
Slide 6: Executing on the WEX Strategy
Executing on the WEX Strategy CONTINUE TO WIN IN THE MARKETPLACE 2021 TECHNOLOGY FOCUS • Data Lake • Machine Learning • Artificial Intelligence • Microservices • Cloud Native Capabilities 6
Slide 7: Weekly Volume Metrics
Weekly Volume Metrics Fleet Payment Processing Gallon Volume & Travel and Corporate Payments Spend Volume Key Updates • Year-to-date domestic fuel price is $2.55 • Volume from eNett and Optal showing same pattern as WEX travel volumes over the last several months 7
Slide 8: Weekly Volume Metrics
Weekly Volume Metrics SaaS Account Growth and Health Spend Volume Key Updates • SaaS account growth - driver of 2/3 of revenue - remains strong US Health Spend Volume % Change Y-o-Y 8
Slide 9: WEX Full Year and Fourth Quarter 2020 Financial Results
WEX Full Year and Fourth Quarter 2020 Financial Results 9
Slide 10: Company Results - Full Year 2020
Company Results - Full Year 2020 Annual revenue down due to the impacts of COVID 19 2020 2019 $ ∆ Yr/Yr % ∆ Yr/Yr (In thousands except per share data) Total Revenue $1,559,869 $1,723,691 $(163,822) (9.5)% Net (loss) income attributable to ($243,638) $99,006 $(342,644) NM shareholders Net (loss) inco
Slide 11: Company Results - 4Q 2020
Company Results - 4Q 2020 Sequential improvement in revenue shows slow return of demand 4Q20 4Q19 $ ∆ Yr/Yr % ∆ Yr/Yr (In thousands except per share data) Total Revenue $398,990 $440,045 $(41,055) (9.3)% Net (loss) income attributable to $(234,200) $54,446 $(288,646) NM shareholders Net (loss) incom
Slide 12: Revenue Breakdown - 4Q 2020
Revenue Breakdown - 4Q 2020 OTR, Corporate Payments and US Health Business bright spots in 2020 4Q20 4Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $398,990 $440,045 ($41,055) (9.3)% Segment Revenue Fleet Solutions $235,379 $260,773 ($25,394) (9.7)% Travel and Corporate Solutions $74,690 $95,700 ($21,010) (
Slide 13: Fleet Solutions
Fleet Solutions Solid OTR revenue and transaction growth offset by declines in local fleets 4Q20 4Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 235,379 260,773 (25,394) (9.7)% Payment Processing Revenue ($) 98,955 103,831 (4,876) (4.7)% Finance Fee Revenue ($) 53,373 71,015 (17,642) (24.8)% All
Slide 14: Travel and Corporate Solutions
Travel and Corporate Solutions Continued strength from US corporate payments business 4Q20 4Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 74,690 95,700 (21,010) (22.0)% Payment Processing Revenue ($) 62,376 80,986 (18,610) (23.0)% All Other Revenue ($) 12,314 14,714 (2,400) (16.3)% Purchase Volu
Slide 15: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions Strong US Health revenue growth 4Q20 4Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 88,921 83,572 5,349 6.4% Payment Processing Revenue ($) 14,985 14,395 590 4.1% Account Servicing Revenue ($) 64,432 57,142 7,290 12.8% All Other Revenue ($) 9,504 12,035 (2,5
Slide 16: Selected Operating Expenses
Selected Operating Expenses Selected Operating Expenses (GAAP) (In thousands) 4Q20 4Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Processing costs $ 111,889 $ 111,543 $ 346 0.3% Service fees $ 12,954 $ 13,679 $ (725) (5.3)% Provision for credit losses $ 11,592 $ 18,194 $ (6,602) (36.3)% Operating interest $ 3,659 $ 10,15
Slide 17: Tax Rate
Tax Rate Key Updates ANI tax rate of 22.4% vs 24.7% last year • Benefit from Jurisdictional earnings mix • Benefit from finalizing U.S. tax return GAAP tax rate of 7% vs 26.9% last year • Company's loss position impacted by non-deductible expenses 17
Slide 18: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates • Corporate cash1 balance was approximately $642 million • Remaining borrowing capacity of $818 million on credit facility 2 • Redemption of $400M 4.75% notes planned for March 2021 • Leverage ratio 3.7X, up from 3.5X in Q4 last year due to the acquisition
Slide 19: Appendix
Appendix 19
Slide 20: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation The Company's non-GAAP adjusted net income excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, legal settlement, stock-based com
Slide 21: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 per per diluted per diluted diluted per diluted (In thousands except per share data) share share share share Net (loss) income attributable to shareholders $ (234,200) $ (5.30) $ 54,446 $ 1.24 $ (