Hightech Payment Systems Sa · CSEMA:HPS
Hightech Payment Systems Sa — HPS — FY2020 Earnings Presentation
32 slides from Hightech Payment Systems Sa's earnings presentation, March 2021
Slide 1: Annual Results 2020
FINANCIAL COMMUNICATION Casablanca - March 2021 ANNUAL RESULTS 2020
Slide 2: Content
Content Highlights & Achievements & Context 2020 Financial Review Outlook Appendices 1
Slide 3: Highlights & Context 2020
Abdeslam ALAOUI ISMAILI CEO HPS Group HIGHLIGHTS & CONTEXT 2020
Slide 4: World Economy: Economic Growth in 2020 & Outlook
World Economy: Economic Growth in 2020 & Outlook Developed World Emerging & Countries Developing Countries 5,0% 4,0% 3.3% 2020e 2021f 2020e 2021f 2020e 2021f -2.6% -4.3% -5.4% Source : World Bank Global Economic Prospects Jan-2021 3
Slide 5: Impetus of Fundamental Trends Impacting the Payment Industry
Impetus of Fundamental Trends Impacting the Payment Industry -13%: Decrease in cash Contactless payment usage post usage in volume in 2020 vs. pre-COVID 19 USA 51% (vs. 30%) Germany 56% (vs. 35%) Northern Europe 75% (vs 57%) Changes in consumer behaviour post COVID-19 with a direct impact on the pay
Slide 6: The Payment Market in the World
The Payment Market in the World Non-Cash Transactions (billions) 1,045.5 139.3 CAGR Growth 895.5 (2017–22F) (2017–18F) 57.7 779.2 111.2 Global 14.0% 11.2% 90.2 54.3 684.1 604.7 74.4 51.1 352.8 MEA 21.6% 17.9% 538.6 48.4 Developing 61.9 269.5 208.7 Latin America 6.0% 5.5% 23.5% 49.3 45.5 43.1 161.1 1
Slide 7: 2020 Highlights
2020 Highlights Resilience of Strengthening the First concrete results group's activities cash position of the external and strengthening growth ambition recurring revenues Impact of the Continued R&D evolution of the momentum dollar on revenues 6
Slide 8: IPRC Acquisition: Strengthening Control of the ATM Transaction Value Chain
IPRC Acquisition: Strengthening Control of the ATM Transaction Value Chain IPRC in Brief Main Customers IPRC Activities ATM monitoring ⏵ Over 7 million cards managed ⏵ Real-time management of ATMs ⏵ 45% of transactions in Morocco ⏵ Automatic reporting of incidents to customers ⏵ Real-time updating o
Slide 9: ICPS Acquisition: HPS to Become Africa's Leading Processing Company
ICPS Acquisition: HPS to Become Africa's Leading Processing Company HPS in Africa 1 Technology: PowerCARD 2 data centers 13 countries +50 expert ICPS 1 Technology: PowerCARD Project 2 data centers 18 countries objectives +100 expert ⏵ Build a Centre of Excellence around PowerCARD technology in Mauri
Slide 10: Achievements & Financial Review
Brahim BERRADA Managing Director Corporate Services ACHIEVEMENTS & FINANCIAL REVIEW
Slide 11: 2020 in Brief
2020 in Brief Operating Recurring Operating Backlog Cashflow Income Revenue Margin 728.5 453.8 16.5% 572.8 223.6 MMAD MMAD vs. MMAD MMAD +1.2% +10.8% +17.6% +10.9% + 161.8% ⏵ Strong growth in the ⏵ Growing contribution of ⏵ R&D investment up despite ⏵ Sustained commercial ⏵ Optimized cash management
Slide 12: 2020 Highlights per Activity
2020 Highlights per Activity 14% Processing +46.5% Switching Payment 71% 6% Solutions -2,1% / +1.5% ⏵ Strong progress in Payment with the 17% Constant exchange rate boarding of new SG affiliates and the 8% Projects Maintenance signature of new clients on the Processing platform Upselling Licence ⏵ S
Slide 13: Solutions
Solutions Strategic Orientations Highlights Contribution to Consolidated Revenue ⏵ Anchor our presence by targeting ⏵ Strong growth of recurring Tier 3 banks and ISOs in the US ⏵ Offering our solutions to large revenues including maintenance and Upselling 485.5 MMAD 71.1% European processors and mid
Slide 14: Solutions by region
Solutions Africa Europe 2020 2020 33,0 % 24.7 % Asia Americas 2020 2020 33.9 % 8.5 % 24,6% 36,4% 31,6% 7,3% Projects Upselling Maintenance License ⏵ Africa ⏵ Europe ⏵ Asia ⏵ Americas - Sustained activity in South Africa - Deployment of the Tier1 project in - Confirmation of the growth region's - New
Slide 15: Processing
Processing Strategic Orientations Highlights Contribution to Consolidated Revenue ⏵ Organic and acquisitive business ⏵ Payment development in Africa and the - Boarding of 4 new affiliates of Middle East Société Générale in 2020 98.2 MMAD 14.4% ⏵ Diversification of supply - Signing of new contracts i
Slide 16: Evolution of Electronic Money in Morocco in 2020
Evolution of Electronic Money in Morocco in 2020 Evolution of Interoperable Number of Cards Card Transactions ATM Network Transactions Processed by HPS Switch vs. 2019 17.2 million cards 385.4 million transactions 7.734 units +1.0 million vs. 2019 -7.3% vs. 2019 +121 installations vs. 2019 Withdrawa
Slide 17: Services
Services Strategic Orientations Highlights Contribution to Consolidated Revenue ⏵ Diversification of the activity ⏵ Impact of containment measures towards high value-added services on project deployment ⏵ Diversification across France and ⏵ Establishment of a continuity plan 99.6 MMAD 14.6% launch o
Slide 18: Exchange Rates Effects on the Business Growth
Exchange Rates Effects on the Business Growth In MMAD ⏵Solutions +3,7% -1,5% Deployment of major projects (ABSA, Tier1 client) despite the impact of the 719,6 +26,9 +31,2 728,5 lockdown -18,0 +1,2% -10,3 -8,5 -3,3 Several clients entered maintenance, generating strong growth in maintenance revenues
Slide 19: Geographic Footprint & Regional Diversification
Geographic Footprint & Regional Diversification Europe Americas 31,9% 6,0% Asia 23,9% Africa 2020 2020 38,2% Africa 262,1 M MAD Europe 219,3 M MAD -11,8% vs. 2019 +6,3% vs. 2019 2020 2020 Asia 164,4 M MAD Americas 41,1 M MAD +10,9% vs. 2019 +75,0% vs. 2019 18
Slide 20: Operating Expenses
Operating Expenses In MMAD 728.5 ⏵Staff Controlled evolution of personnel costs, in line with business growth Strengthening of the workforce with the 4% growth of our staff ⏵External Costs Decrease in sales-related trips and event costs (trade shows -311.9 & exhibitions) in the context of the pandem
Slide 21: R&D – Sustained Effort
R&D – Sustained Effort Strategic directions for PowerCARD ⏵ "Infinite" scalability requirement; ⏵ Leverage the possibilities offered by the cloud to diversify infrastructure costs even more, particularly with regards to peaks management; 92.7 MMAD 12.7% ⏵ Make all PowerCARD processing real-time to m
Slide 22: Evolution of the Backlog & Situation at the End of 2020
Evolution of the Backlog & Situation at the End of 2020 Processing Solutions In MMAD 20% 80% 11% 25% beyond one 9% 25% 2020 75% at one year year 573 Projects 3% Upselling +10.9% Maintenance 20% Click Fees 2019 516 31% Switching Payment ⏵ Backlog of MAD 575 million, representing a strong increase in
Slide 23: Strengthening the Cash Flow Position
Strengthening the Cash Flow Position In MMAD ⏵Operations Optimisation of working capital and control of the project 36.3 0.9 223.6 implementation cycle 126.2 -25.3 Strengthening efforts in the area of collection and control of payment periods ⏵Investments Slight decline in investment in tangible & i
Slide 24: Outlook
OUTLOOK
Slide 25: 2021 – Outlook
2021 – Outlook The resilience of all Group’s activities and the strengthening of its fundamentals achieved in the context of the crisis, are positive indicators to approach with confidence 2021, which should see he recovery of the economy at the global level. The R&D dynamic that distinguishes the H
Slide 26: Conclusion
Conclusion Business Resilience Strengthening the Continuation of our Fundamentals Strategic Plan Initiatives 25
Slide 27: Appendices
APPENDICES
Slide 28: Consolidation Scope
Consolidation Scope Consolidated Corporate Accounts Accounts Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Comptes Consolidés Consolidés Comptes Comptes Comptes Comptes Consolidés Consolidés ConsolidésConsolidés Consolidés Comptes Consolidés Sociaux Sociaux Sociaux
Slide 29: Performance of Subsidiaries in 2020
Performance of Subsidiaries in 2020 In MAD 2020 2019 Subsidiaries Operating Income Operating Result Net Result Operating Income Operating Result Net Result Full Consolidation (Morocco) HPS SA 589 572 595 86 755 675 72 356 116 568 333 873 98 703 266 72 005 289 HPS Switch 57 881 281 28 132 344 20 070
Slide 30: Consolidated Income and Expenditure Accounts – 2020
Consolidated Income and Expenditure Accounts – 2020 CONSOLIDATED INCOME AND EXPENDITURE ACCOUNTS in MAD 2020 2019 Variation Operating Income 728 485 158 719 485 158 1.2% Turnover 681 841 053 688 775 864 -1,0% Other operating Income 46 644 105 30 824 403 51.3% Operating Expenses - 607 637 718 -592 68
Slide 31: Consolidated Cash Flow Statement – 2020
Consolidated Cash Flow Statement – 2020 CASH FLOW STATEMENT 31/12/2020 31/12/2019 Net Income 84 393 880 93 796 375 Elimination of non-cash or non-operational net income and expenses - - Depreciation and amortization 22 912 855 19 702 875 - Change in deferred taxes - 475 407 - 1 143 132 - Gain or los
Slide 32: HPS
HPS /