Eml Payments Ltd. · ASX:EML
Eml Payments — FY2022 Earnings Presentation
30 slides from Eml Payments's earnings presentation, Aug 22, 2022
Slide 1: Investor Presentation
22 August 2022 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 INVESTOR PRESENTATION EML Payments Limited (ASX: EML) is pleased to provide investors with the following presentation ahead of its Annual Results and Investor briefing for the full year ended 30 June 2022. +61 (07) 3557 1100 Le
Slide 2: FY22 Financial Results
FY22 Financial Results. AUGUST 2022
Slide 3: Important Notice
01 Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information about EML’s activities current as at the date of this pres- entation. This information is given in summary form and does not purport to be complete.
Slide 4: Group Performance Overview
01 Group Performance Overview Emma Shand - Managing Director & Group CEO
Slide 5: FY22 Overview
EML Payments FY22 Financial Results 04 FY22 Overview Business Segment Performance GDV Segment GPR G&I Digital Payments $80.2bn 308% GDV $12.4bn $1.3bn $66.6bn (FY21: $9.7bn) (FY21: $1.1bn) (FY21: $8.8bn) REVENUE1 Revenue1 $148.1m $68.4m $17.6m $234.1m (FY21: $113.5m) (FY21: $70.2m) (FY21: $10.3m) 21
Slide 6: Planning for the Future: My First 100 days
EML Payments FY22 Financial Results 05 Planning for the Future: My First 100 days — Prioritised meeting with and listening to stakeholders - employees, customers, shareholders, investors, regulators and partners in Australia, Europe, the UK and United States — Immediate focus – protecting the base t
Slide 7: Strategic Initiatives Executed in First 30 days
EML Payments FY22 Financial Results 06 Strategic Initiatives Executed in First 30 days — Combining North American and European Gift & Incentive businesses to drive operational efficiency, enhance product and customer focus and accelerate new business — Separation of global risk and compliance to fos
Slide 8: Financial Performance
02 Financial Performance Rob Shore - Group CFO
Slide 9: Key Results
EML Payments FY22 Financial Results 08 Key Results — GDV increased 308% to $80.2bn — Gross Profit Margin1 of 68%, up 1% on — Total Overheads were $125.8m, including (FY21 $19.7bn), including contribution from FY21 as the Group benefitted from AMF fee $16.9m of non-recurring costs in relation to Sent
Slide 10: FY22 Financial Results
EML Payments FY22 Financial Results FY22 Financial Results GDV up 308% driven through acquisition of Sentenial, which contributed $56.8bn. Excluding Sentenial GDV grew Measure FY22 FY21 Change $3.7bn or 19% on the prior year. GDV $80.2bn $19.7bn 308% Revenue increased $39.9m, or 21% on FY21. Excludi
Slide 11: GPR - Continued Growth through European Challenges
EML Payments FY22 Financial Results 10 GPR - Continued Growth through European Challenges GDV Revenue1 Gross Profit1 $12.4bn (FY21: $9.7bn) 27% $148.1m (FY21: $113.5m) 30% $90.0m (FY21: $65.7m) 37% — Strong growth in GDV volumes primarily in — High levels of demand for our products continued — GP wa
Slide 12: G&I - Recovery from COVID-19 impacts
EML Payments FY22 Financial Results 11 G&I - Recovery from COVID-19 impacts GDV Revenue1 Gross Profit1 $1.3bn (FY21: $1.1bn) 21% $68.4m (FY21: $70.2m) 3% $54.6m (FY21: $57.0m) 4% — G&I is a seasonal business with majority — G&I revenue was down 3% year on year — Gross Profit was down 4% primarily at
Slide 13: Digital Payments - Expansion of product into open banking
EML Payments FY22 Financial Results 12 Digital Payments - Expansion of product into open banking GDV Revenue1 Gross Profit1 $66.6bn (FY21: $8.8bn) 654% $17.6m (FY21: $10.3m) 71% $14.9m (FY21: $7.6m) 95% — Sentenial Direct Debit and Open Banking — Sentenial contributed $7.7m of revenue in the 9 — Add
Slide 14: Underlying Overheads
EML Payments FY22 Financial Results 13 Underlying Overheads Underlying Overheads rose as we invested in our European business 1 $108.4m 41% FY22 Quarterly Expenses Growth $6.4m $3.5m $6.2m $8.4m $7.1m $31.4m $108.4m $28.6m $25.2m $23.2m $76.8m FY21 costs Sentenial Employee Professional ICT Other FY2
Slide 15: Reported vs Underlying Results
EML Payments FY2022 Financial Results 14 Reported vs Underlying Results $34.3m $16.9m Reported EBITDA 1 19% ON PCP $51.2m — Class Action and CBI related costs $16.9m $34.3m Underlying EBITDA 2 $51.2m 4% ON PCP Reported CBI Costs and Underlying EBITDA class action EBITDA FY22 related defence FY22 pro
Slide 16: Financial Position
EML Payments FY22 Financial Results 15 Financial Position CARDHOLDER CORPORATE ($’000s) 30 June 2021 30 June 2022 GROWTH ASSETS/ LIABILITIES BALANCE SHEET Cash on hand of $73.7m. Cash reduced during the period from $27.8m injected into to the UK cardholder Cash and cash equivalents 141,228 73,699 (4
Slide 17: Financial Performance – Cash Flow
EML Payments FY22 Financial Results 16 Financial Performance – Cash Flow $25.7m Cash and Cash Equivalents $73.7m Underlying Operating Cash Inflows1 FY22 Underlying Operating Cash Flow Movements 50% Underlying EBITDA to Underlying Operating Cashflow conversion. $46.7m $27.9m $25.7m $55.8m Cash Outflo
Slide 18: Central Bank interest rates continue to rise
EML Payments FY22 Financial Results 17 Central Bank interest rates continue to rise Interest Rates and Stored Float Interest Rates and Stored Float Overview — EML benefits as interest rates rise due to our large Stored Value Float GBP EUR — As at 30 June 2022, EML held an AUD equivalent of $2.2bn in
Slide 19: Outlook, Opportunity and Focus
03 Outlook, Opportunity and Focus Emma Shand - Managing Director & Group CEO
Slide 20: FY23 Outlook
EML Payments FY22 Financial Results 19 FY23 Outlook Revenue — Excluding the non-recurring component of AMF, FY22 revenue was $216.2m which is starting point for FY23 — GPR – continued demand for our products including in Government Welfare, employee benefits and on- demand pay. The European business
Slide 21: Opportunity and Focus
EML Payments FY22 Financial Results 20 Opportunity and Focus Protecting and Expanding the Base — Expansion of GDV footprint with strategic customers such as PCS (France), Correos (Spain) and UK Home office — Launch new contracted programs, including employee benefits for Up Spain, Correos’ Youth Cul
Slide 22: Q&A
=—MI.. Q&A Money in Motion
Slide 23: Analyst Briefing Data
ou =MIL. Analyst Briefing Data Money in Motion
Slide 24: Analyst Briefing Data - Underlying EBITDA to Underlying NPATA
EML Payments FY22 Financial Results 23 Analyst Briefing Data - Underlying EBITDA to Underlying NPATA (11,381) UNDERLYING (2,991) (165) 6,084 (10,646) UNDERLYING EBITDA 51,151 NPATA $51.2m 32,052 $32.1m 4% ON PCP 1% ON PCP FV on Impairment Depreciation Non Cash Gain on Financial Expense for Underlyin
Slide 25: Analyst Briefing Data - FY20-FY22
EML Payments FY22 Financial Results 24 Analyst Briefing Data - FY20-FY22 Key Metrics ($’000s) H1 2020 H2 2020 FY 2020 H1 2021 H2 2021 FY 2021 H1 2022 H2 FY22 FY 2022 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths 6mnths 12 mnths Headcount (closing) 272 444 444 486 540 540 584 642 642 Total St
Slide 26: Analyst Briefing Data - FY20-FY22
EML Payments FY22 Financial Results 25 Analyst Briefing Data - FY20-FY22 Key Financials ($’000s) H1 2020 H2 2020 FY 2020 H1 2021 H2 2021 FY 2021 H1 2022 H2 2022 FY 2022 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths 6mnths 12 mnths General Purpose Reloadable $1,465,909 $2,768,260 $4,234,169 $
Slide 27: Analyst Briefing Data - FY20-FY22
EML Payments FY22 Financial Results 26 Analyst Briefing Data - FY20-FY22 Key Financials ($’000s) H1 2020 H2 2020 FY 2020 H1 2021 H2 2021 FY 2021 H1 2022 H2 2022 FY 2022 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths 6 mnths 12 mnths Revenue (includes interest income) $59,156 $62,474 $121,630
Slide 28: Glossary
05 =MI.. Glossary Money in Motion
Slide 29: Glossary
EML Payments FY22 Financial Results 28 Glossary Abbreviation Meaning Abbreviation Meaning A2A Account-2-Account GPR General Purpose Reloadable AASB Australian Accounting Standards Board G&I Gift and Incentive ACPR Autorite de Controle Prudential et de Resolution (France) GDV Gross Debit Volume AFSL
Slide 30: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com