Deluxe Corporation · NYSE:DLX
Deluxe — Investor Presentation (December 2020)
22 slides from Deluxe's investor presentation, Dec 11, 2020
Slide 1: Investor Presentation December 2020
Investor Presentation December 2020 © 2020 Deluxe Corporation
Slide 2: Cautionary Statement
Cautionary Statement This presentation highlights management’s intentions, projections, financial estimates or expectations about the company's future strategy or performance and are forward-looking in nature as defined in the Private Securities Litigation Reform Act of 1995. These comments are subj
Slide 3: Our trusted, technology-enabled solutions help businesses thrive
Our trusted, technology-enabled solutions help businesses thrive. 3
Slide 4: Technology Company with Strong Cash Flow
Technology Company with Strong Cash Flow Payments | Cloud Solutions | Promotional Solutions | Checks Focus on capital efficient, Powerful reach, sales and scalable businesses in growth distribution channels markets Recurring revenue model with Revenue diversity & reliable cash flow long-term relatio
Slide 5: A Compelling Investment Opportunity
A Compelling Investment Opportunity Technology Hidden Gem: Payments | Cloud Solutions | Promotional Solutions | Checks Who We Are Purpose Values Customers first | Earn Trust | Create What’s Next | Trusted Business Technology™ company “Champions of business so communities thrive” Deliver for Sharehol
Slide 6: Leading Market Position with Powerful Scale
Leading Market Position with Powerful Scale Existing Relationships +4,000 $2.8T ~4.5M 400K ~4M 150K Financial Institutions Annual payments SMBs New SMBs added Consumers Packages shipped volume each year each day 6
Slide 7: Focus on Profitable, Growth Businesses
Focus on Profitable, Growth Businesses Payments Cloud Solutions Promotional Solutions High Growth Moderate Growth Modest Growth Treasury Management Solutions Data-Driven Marketing Brand Building Platform » Receivables as a service » Sophisticated AI tools » Turn-key branded » Advertising Specialties
Slide 8: Deluxe Helps Companies Across Lifecycle
Deluxe Helps Companies Across Lifecycle Meaningful Cross-Sell Opportunities Start Your Business Brand Your Business Grow Your Business Optimize Your Business Payroll Digital Checks Forms Solutions Website & Payments Hosting Retail Licenses Packaging Data-Driven & IDs Marketing Trademark Print Market
Slide 9: Comprehensive Go-to-Market Sales Strategy
Comprehensive Go-to-Market Sales Strategy “One Deluxe” Go-To-Market Approach Bringing the Best of Deluxe to Every Customer — Unified “Company of Products” Sales Approach Enterprise Account Cross Sell Demand Generation eCommerce Small Business Distribution Model » Millions of annual » Improving indus
Slide 10: Payments
Payments High Growth Segment Enabling Businesses Pay and Get Paid Our Solutions Our Scale Where We Win Why We Win » Lockbox as our foundation Receivables as a Service $2.8T Helping our bank partners and enterprise » Software intelligently matching all payment options customers automate $80B of expen
Slide 11: Cloud Solutions
Cloud Solutions Moderate Growth Segment with Offerings to Start and Manage SMBs & Grow Enterprises Solutions Where We Win Why We Win » Easy to use SaaS Solutions SMBs and FIs—increasing need for digital tools and » Easy to find on-line support to effectively setup and manage business DIY and DIFM mo
Slide 12: Promotional Solutions
Promotional Solutions Platform to Manage and Produce Physical Products Promoting Brand Image Market Growth Where We Win Why We Win Omni-channel distribution; turn-key platform; Flat + SMBs, Enterprises, Global Brands well-curated selection; rapid innovation Turn-Key Branded Solutions Web Storefronts
Slide 13: Checks
Checks Strategic Asset to Self Fund Growth Our Solutions Where We Win Why We Win » Outstanding cash flow self funds » Financial institutions and other » Superior Product — appropriate growth investments AND generates resellers of all sizes. DLX is growing continued investment; design and healthy ret
Slide 14: Strong Financial Performance Amidst COVID-19
Strong Financial Performance Amidst COVID-19 Deluxe Has a Durable Business Model Q3 2020 Results — PAID DOWN $140 MILLION OF DEBT IN OCTOBER Delivering Sales-Driven Growth Improved Financial Strength » Expanding sales pipeline » Declared regular quarterly dividend of $0.30 » Closed 6 of top 25 targe
Slide 15: A Compelling Investment Opportunity
A Compelling Investment Opportunity Technology Hidden Gem: Payments | Cloud Solutions | Promotional Solutions | Checks Who We Are Purpose Values Customers first | Earn Trust | Create What’s Next | Trusted Business Technology™ company “Champions of business so communities thrive” Deliver for Sharehol
Slide 16: deluxe trusted business technology
deluxe trusted business technology
Slide 17: Appendix
Appendix dix
Slide 18: Consolidated Condensed Statements of Income (Loss)
Consolidated Condensed Statements of Income (Loss) $ in millions, except per share amounts (Unaudited) Quarter Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product revenue $298.8 $346.3 $908.2 $1,043.9 Service revenue 140.7 147.3 428.1 442.7 Total revenue 439.5 493.6 1,336
Slide 19: Segment Information
Segment Information $ in millions (Unaudited) Quarter Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Revenue: Payments $74.7 $64.6 $223.9 $193.9 Cloud Solutions 63.8 80.0 193.6 237.2 Promotional Solutions 124.9 156.8 385.7 468.2 Checks 176.1 192.2 533.1 587.3 Total $439.5 $4
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (EBITDA and adjusted EBITDA) Management discloses EBITDA and Adjusted EBITDA because it believes they are useful in Quarter Ended Nine Months Ended September 30, September 30, evaluating the Company's operating performance, as the calculations eliminate th
Slide 21: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Quarter Ended Nine Months Ended Adjusted Diluted EPS September 30, September 30, 2020 2019 2020 2019 Net income (loss) $29.4 ($318.5) ($15.8) ($244.7) By excluding the impact of non-cash items or items that may not Non-controlling interest — — (0.1) — be i
Slide 22: Free Cash Flow
Free Cash Flow $ in millions, except per share amounts (Unaudited) Management believes that free cash flow is an important indicator of cash available for debt service and for shareholders, after making capital investments to maintain or expand the Company’s Nine Months Ended asset base. Free cash f