Tyro Payments Ltd. · ASX:TYR

Tyro Payments — Investor Presentation (February 2025)

33 slides from Tyro Payments's investor presentation, Feb 26, 2025

  1. Slide 1: Investor Briefing H1 FY25 Results

    INVESTOR BRIEFING H1 FY25 Results 26 February 2025 Tyro Payments Limited ABN 49 103 575 042

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation is provided by Tyro Payments Limited (ABN 49 103 575 042) and its controlled entities (variously, “Tyro”, “us”, “we”, “our” and “Group”) and is current at 26 February 2025. It is information given in summary form only and does not purport to be complete. It does not cons

  3. Slide 3: Introduction and Summary

    INTRODUCTION AND SUMMARY Jon Davey CEO and Managing Director

  4. Slide 4: Where We've Come From

    WHERE WE’VE COME FROM Gross profit1 EBITDA2 Profit before tax3 18% CAGR 12x $21.7m 10.5 112.0 33.0 68.1 -11.2 2.8 H1 FY22 H1 FY25 H1 FY22 H1 FY25 H1 FY22 H1 FY25 4.1% margin 29.5% margin 1 Gross profit (normalised), displayed in $ millions. 18% CAGR for 3 years to H1 FY25. 2 EBITDA and EBITDA margin

  5. Slide 5: Growth in Health and Improved Operating Efficiency

    GROWTH IN HEALTH AND IMPROVED OPERATING EFFICIENCY Tyro Health is large, Our operating efficiency has and growing fast improved significantly2 Tyro discretionary Tyro Health verticals at IPO today1 >90% $7.1bn >$7bn $6.5bn c.70% $2.4bn FY19 Health FY19 Retail FY19 Hospitality FY25 Health H1 FY22 H1

  6. Slide 6: On Track to Deliver FY25 Guidance

    ON TRACK TO DELIVER FY25 GUIDANCE GROSS PROFIT1 EBITDA MARGIN1 FY25 GUIDANCE: $218m – $226m (3-7% growth) FY25 GUIDANCE: c.28% H1 FY25 H1 FY25 $112.0m (+6.5% vs PCP) 29.5% Payments +6.0% supported by higher payment margin. Strong EBITDA margin supported by gross profit growth and continued cost disc

  7. Slide 7: H1 FY25 Results: Key Themes

    H1 FY25 RESULTS: KEY THEMES INVESTING IN KEY BUILDING BLOCKS FOR FUTURE GROWTH with positive momentum on integrated payments and banking strategy HIGHER EBITDA FROM TOP-LINE GROWTH AND EFFECTIVE COST MANAGEMENT On track to deliver FY25 guidance WELL POSITIONED TO DELIVER PROFITABLE GROWTH while navi

  8. Slide 8: Investing in the Building Blocks for Growth in Payments

    INVESTING IN THE BUILDING BLOCKS FOR GROWTH IN PAYMENTS We’re modernising our fleet with next-generation terminals and developing new terminals for SME sub-segments SOME MERCHANTS • 3G shutdown successfully navigated WANT US TO PROVIDE A DEVICE • Tyro Pro and Pro Key rolling out across our network •

  9. Slide 9: Giving Merchants More Ways to Get Paid

    GIVING MERCHANTS MORE WAYS TO GET PAID 9

  10. Slide 10: We Continue to Grow Fast in Tyro Health

    HOUSEHOLD HEALTH TYRO HEALTH WE CONTINUE TO SPEND TTV GROW FAST IN $100bn+ $7bn+ TYRO HEALTH per annum1 Run-rate2 Growing at: Growing at: 1 Source: ABS Monthly Household Spending Indicator December 2024. 3- year CAGR from December 2021 to December 2024. 2 >$7bn annual TTV run-rate based on H1 FY25 T

  11. Slide 11: Investing to Take Greater Share of Health Payments

    OMNICHANNEL EXPERIENCE TYRO HEALTH NEXT-GEN ONLINE TERMINAL INVESTING TO TAKE GREATER SHARE OF HEALTH PAYMENTS 11

  12. Slide 12: Positive Trends Demonstrate Merchants Value Banking Proposition

    POSITIVE TRENDS DEMONSTRATE THAT MERCHANTS VALUE BANKING PROPOSITION >2,200 >25% Front-book adoption2 25% New active accounts1 21% 15% +34% 11% Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 8,987 7,643 6,015 6,725 Net promotor score3 5,362 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 24 62 Tyro Bank A

  13. Slide 13: High Performing Team to Drive Next Phase of Growth

    HIGH PERFORMING TEAM TO DRIVE NEXT PHASE OF GROWTH EVOLVING OUR TECH OPERATING MODEL RECENT LEADERSHIP HIRES Focus on improving execution, creating greater capacity for investment, and driving a digital-first customer experience HIGH PERFORMANCE CULTURE Embedding a growth and innovation Emma Burke S

  14. Slide 14: Financial Performance

    FINANCIAL PERFORMANCE Emma Burke CFO

  15. Slide 15: Top-Line Growth and Continued EBITDA Margin Expansion

    TOP-LINE GROWTH AND CONTINUED EBITDA MARGIN EXPANSION GROSS PROFIT1 GROWTH On-track3 IMPROVING EBITDA MARGIN On-track3 CONTINUED STRONG CASH GENERATION Gross Profit ($m) EBITDA ($m) and EBITDA margin (%) 2 Free Cash Flow ($m) +6.5% 29.5% 45 30.0% 26.0% 40 25.0% 35 +20.6% 20.4% 30 20.0% 25 112.0 15.0

  16. Slide 16: Gross Profit Growth Driven by Payments

    GROSS PROFIT GROWTH DRIVEN BY PAYMENTS Gross Profit1 ($m) Pricing transformation Non-discretionary TTV growth Roll-off of higher cost funding Higher company cash balance 4.9 0.5 0.6 10.5 0.2 112.0 105.2 H1 FY24 Payments Revenue Payments Direct Banking Revenue Deposit Costs Corporate & Other H1 FY25

  17. Slide 17: Top-Line Driven by Improved Margin and Growth in Health

    TOP-LINE DRIVEN BY IMPROVED MARGIN AND GROWTH IN HEALTH PAYMENT MARGIN1 (basis points) PAYMENTS TTV ($bn) 22.2 22.0 45.3 Bendigo -10.7% 44.7 2.5 2.2 42.7 1.7 1.7 Non-discretionary 41.8 +11.1% 40.7 3.1 (incl. Health) 3.6 5.4 5.3 Tyro core 37.1 37.6 +0.3% Core discretionary -3.2% 33.8 33.7 9.5 9.1 32.

  18. Slide 18: Improved Returns Across Lending and Deposits

    IMPROVED RETURNS ACROSS LENDING AND DEPOSITS Banking gross profit $7.8m (+9.1% vs PCP) HIGHER BANK ACCOUNT BALANCES GROWTH IN LOAN ORIGINATIONS IMPROVED RETURNS3 Tyro Bank Account balances ($m) 1 Loan originations2 +5% +10% 28.4% 20.6% 14.2% 84.1 74.7 10.2% 80.1 67.9 3.1% 2.2% H1 FY24 H1 FY25 H1 FY2

  19. Slide 19: Expenses Well Managed Leading to Improved Operating Efficiency

    EXPENSES WELL MANAGED LEADING TO IMPROVED OPERATING EFFICIENCY Operating expenses as % of gross profit 1 81.6% 75.3% 72.1% 70.3% 69.0% YoY growth Continued improvement in operating efficiency 112.0 +6.5% 105.2 105.6 Disciplined expense management creating capacity for investment 98.0 95.2 34.7 H2 ex

  20. Slide 20: Robust Balance Sheet with High Levels of Capital and Liquidity

    ROBUST BALANCE SHEET WITH HIGH LEVELS OF CAPITAL AND LIQUIDITY TOTAL CAPITAL ($M) & TOTAL CAPITAL RATIO (%) LIQUID ASSETS ($M) AND MINIMUM LIQUIDITY HOLDING RATIO (%) 65% 73% 56% 57% 49% 180 80.00% 180 60.00% 160 53% 60.00% 160 40.00% 140 40.00% 140 20.00% 12 0 20.00% 12 0 0.00% 100 0.00% 100 -20.00

  21. Slide 21: Statutory Profit Supported by Lower Non-Recurring Items

    STATUTORY PROFIT SUPPORTED BY LOWER NON-RECURRING ITEMS Predominantly relating Statutory profit before tax ($m) to Bendigo-related EBITDA1 $5.6m higher adjustments 1.5 0.3 0.7 6.8 3.1 5.0 1.7 10.3 5.1 H1 FY24 Gross profit Operating Lending & non- Share-based Depreciation & Impairment of Bendigo-rela

  22. Slide 22: Summary

    SUMMARY TOP-LINE EBITDA MARGIN ON TRACK FOR GROWTH EXPANSION FY25 GUIDANCE 22

  23. Slide 23: Outlook

    OUTLOOK Jon Davey CEO and Managing Director

  24. Slide 24: Uniquely Positioned to Deliver Profitable Growth

    UNIQUELY POSITIONED TO DELIVER PROFITABLE GROWTH WE WILL LEVERAGE OUR STRENGTHS SCALABLE, PROPRIETARY TARGETED INTEGRATED PAYMENTS PAYMENTS TECH DISTRIBUTION CHANNELS AND BANKING TO DELIVER PROFITABLE GROWTH GROWTH IN IMPROVED IMPROVED ADDRESSABLE MARKET CUSTOMER ECONOMICS PROFITABILITY EXTERNAL ENV

  25. Slide 25: On Track to Deliver FY25 Guidance

    ON TRACK TO DELIVER FY25 GUIDANCE GROSS PROFIT1 EBITDA MARGIN1 FY25 GUIDANCE: $218m – $226m FY25 GUIDANCE: c.28% MEDIUM-TERM TARGET: Rule of 40 from FY262 1 Gross profit and EBITDA margin on normalised basis. 25 2 Refer to FY24 Investor Briefing presentation for further detail on Rule of 40. Capture

  26. Slide 26: Q&A

    Q&A Jon Davey Emma Burke CEO and Managing Director CFO

  27. Slide 27: Appendix

    Sixx APPENDIX Ss

  28. Slide 28: Summary of Financial Performance

    SUMMARY OF FINANCIAL PERFORMANCE H1 FY25 H1 FY24 Change $’000 $’000 % Transaction value 21,971,420 22,173,537 (0.9%) Revenue (normalised)1 248,310 237,058 4.7% Payments direct expenses (including Bendigo Alliance gross profit share) (135,730) (130,792) 3.8% Interest expense on deposits (598) (1,099)

  29. Slide 29: Reconciliation of Statutory to Normalised Results

    RECONCILIATION OF STATUTORY TO NORMALISED RESULTS Normalisation adjustments H1 FY25 Bendigo Alliance gross profit H1 FY25 $’000 unless stated otherwise Investment in associate Statutory share Normalised Total revenue 248,310 248,310 Payments direct expense (130,958) (4,772) (135,730) Interest expens

  30. Slide 30: Financial Position

    FINANCIAL POSITION $’000 unless stated otherwise 31 December 2024 30 June 2024 Assets Cash and financial investments1 155,449 165,042 Loans to merchants 38,838 39,325 Property, plant and equipment 55,851 51,334 Intangible assets and goodwill 91,239 97,772 Right-of-use assets 21,830 23,630 Other curr

  31. Slide 31: Free Cash Flow

    FREE CASH FLOW $’000 unless stated otherwise H1 FY25 H1 FY24 Change Operational cash flows EBITDA 32,996 27,348 5,648 Non-cash adjustments (1,257) 600 (1,857) Capital expenditure (17,353) (15,014) (2,339) Rent payments (2,292) (2,139) (153) Working capital movements (3,124) (428) (2,696) Free cash f

  32. Slide 32: Supplementary Information: Payments

    SUPPLEMENTARY INFORMATION: PAYMENTS Transaction Value (TTV) Merchant Count H1 FY25 H1 FY24 Change Proportion of H1 FY25 H1 FY24 Change Performance by vertical $’million $’million % H1 FY25 TTV # # % Hospitality 9,058 9,455 (4.2%) 41.2% 15,955 16,333 (2.3%) Retail 5,314 5,393 (1.5%) 24.2% 10,586 10,8

  33. Slide 33: Thank You

    THANK YOU

Tyro Payments — Investor Presentation (February 2025) on 6ix