Paysafe Limited · NYSE:PSFE
Paysafe — FY2015 Earnings Presentation
25 slides from Paysafe's earnings presentation, Mar 16, 2016
Slide 1: 2015 annual results
2015 annual results 16th March 2016
Slide 2: Legal disclaimer
Legal disclaimer Certain statements in this document are forward-looking statements. These forward-looking statements speak only as at the date of this document. These statements concern, or may affect, future matters and include matters that are not facts. Such statements are based on current expec
Slide 3: Strong finish to a transformational year
Strong finish to a transformational year Joel Leonoff President & Chief Executive Officer
Slide 4: Highlights
Highlights • 2015 revenue $613m, up 68% reported, 13% pro-forma constant currency • Adjusted EBITDA $153m, 25% margin • Transformative and accretive acquisition of Skrill • Integration ahead of pace • Reducing concentration of major merchant Asia Gateway revenue continued throughout 2015 • Rebranded
Slide 5: Paysafe today: delivering end-to-end payment solutions
Paysafe today: delivering end-to-end payment solutions 1 Enabling merchants to accept online and 1 Skrill and NETELLER wallet offerings 1 paysafecard provides cash vouchers, alternative payments securely at scale provide merchants with more than 100 enabling consumers to pay online payment options a
Slide 6: Building a platform for future success
Building a platform for future success • Paysafe has delivered another strong performance amid a rapidly-evolving payments industry • Ongoing focus on innovation with an emphasis on emerging technologies, particularly mobile • We will pursue accretive acquisitions aligned to our strategic priorities
Slide 7: 2015 annual results
2015 annual results Brian McArthur-Muscroft Chief Financial Officer
Slide 8: 2015 financial highlights
2015 financial highlights $m H2 14 H2 15 2014 2015 2015 PRO FORMA Revenue 205.9 390.4 365.0 613.4 830 Growth YoY% 53% 90% 44% 68% 4% Pro-forma CC YoY% 14% 14% 18% 13% 13% Adj. EBITDA 47.1 102.7 86.1 152.6 205 Adj. EBITDA margin 22.9% 26.3% 23.6% 24.9% 25% Cash conversion before Payments Working Capi
Slide 9: Group reported and pro-forma revenue
Group reported and pro-forma revenue $ million Proforma 390 Reported 206 223 135 159 118 H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 2014 2015 Revenue growth YoY % 50% 35% 34% 53% 40% 90% 44% 68% Pro-forma growth CC* 33% 32% 23% 14% 12% 14% 18% 13% Pro-forma CC excl. MMAG* 29% 26% 18% 18% 18% 15% 18% 16% 68
Slide 10: Fee revenue by geography
Fee revenue by geography 26% 38% 45% 61% 29% Asia / ROW N. America 43% Europe 35% 16% 45% 23% 20% 19% H1 14 H2 14 H1 15 H2 15 pro-forma Fee revenue excludes revenue from investment income; i.e. interest income 10
Slide 11: H2 2015 pro-forma fee revenue
H2 2015 pro-forma fee revenue Division Geography Vertical PAYMENT EUROPE ONLINE PREPAID PROCESSING 45% GAMBLING 23% 48% 44% N. AMERICA 29% E- COMMERCE DIGITAL & OTHER WALLETS 46% 29% ASIA / ROW GAMING 26% 10% Fee revenue excludes revenue from investment income; i.e. interest income 11
Slide 12: Payment Processing
Payment Processing Processing 300 45.0% $ million 37% 39% 39% 37% 37% 37% 40.0% 250 35.0% Proforma revenue200 30.0% 25.0% 150 Reported 20.0% revenue 100 202 15.0% 157 173 117 10.0% Pro-forma50 103 90 gross margin 5.0% 0 0.0% H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 2014 2015 Reported revenue YoY % 45% 34
Slide 13: Digital Wallets
Digital Wallets 74% 71% 72% 73% 72% 80.0% $ million 70% 150 70.0% Proforma 60.0% revenue 50.0% 100 40.0% Reported revenue 30.0% 50 109 20.0% Pro forma gross margin 41 48 50 10.0% 28 32 0 0.0% H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 2014 2015 Reported revenue YoY % 74% 39% 46% 53% 20% 127% 50% 78% Pro-fo
Slide 14: Prepaid
Prepaid $ million 50% 51% 50% 50% 50% 51% 150 50% Proforma revenue 40% 100 30% Reported revenue 50 20% 76 Pro forma 10% gross margin 0 0% H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 2014 2015 Pro-forma CC* growth 17% 29% 16% 8% 12% -2% 12% 5% 5% Pro-forma $ figures impacted by weak euro revenue base 2015 pr
Slide 15: Paysafe reported divisional summary
Paysafe reported divisional summary H2 2015 $m 2014 2015 H1 15 H2 15 Revenue Payment Processing 274.7 375.1 173.0 202.0 Digital Wallets 89.6 159.1 49.8 109.4 Fee Revenue Gross profit Prepaid 76.4 76.4 Interest income 0.7 2.8 0.2 2.5 Total 365.0 613.4 223.0 390.4 Gross profit Payment Processing 112.5
Slide 16: Adjusted income statement
Adjusted income statement $m H1 15 % rev % YoY H2 15 % rev % YoY 2014 % rev % YoY 2015 % rev % YoY Revenue 223.0 100.0% 40% 390.4 100.0% 90% 365.0 100.0% 44% 613.4 100.0% 68% Gross profit 100.9 45.2% 25% 195.6 50.1% 102% 177.7 48.7% 42% 296.5 48.3% 67% Salaries excl SBP 27.6 12.4% 27% 48.1 12.3% 94%
Slide 17: Capital spending
Capital spending $m H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 2014 2015 PP&E 1.0 3.6 2.9 0.4 3.7 2.0 3.3 5.7 % sales 0.9% 2.7% 1.8% 0.2% 1.7% 0.5% 0.9% 0.9% Capitalisation of development 2.0 2.2 2.5 2.9 3.2 9.7 5.4 12.9 % sales 1.7% 1.6% 1.5% 1.4% 1.5% 2.5% 1.5% 2.1% Other intangible 2.3 2.4 0.0 2.4 0.0 5
Slide 18: Summarised balance sheet
Summarised balance sheet $m H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 Non current assets 66.3 65.6 63.5 294.8 298.0 1,569.3 Cash & cash equivalents excl. rights issue 84.1 129.3 139.8 109.9 113.3 117.9 Rights issue cash 685.3 Total cash & cash equivalents 84.1 129.3 139.8 109.9 798.6 117.9 Restricted cash
Slide 19: Net debt
Net debt $m 2015 Current portion of LT debt and capital lease 30.9 LT debt and capital lease 493.3 • 3.5x covenant net debt to EBITDA at time of Deferred financing fees* 21.6 acquisition announcement, reduced to 2.1x at Deferred cash consideration 3.3 year end Total debt 549.2 • EUR500m debt issuanc
Slide 20: Summary IFRS cash flow statement
Summary IFRS cash flow statement $m H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 Profit after tax 14.4 17.1 27.5 30.2 2.4 5.0 Tax 1.1 0.2 0.0 1.3 2.2 2.2 Profit before tax 15.5 17.3 27.5 31.5 4.6 7.2 Depreciation and amortisation 6.5 7.0 7.4 13.7 14.8 36.5 FX, exceptional gains and losses 3.8 3.3 4.0 2.8 22.
Slide 21: Cash conversion
Cash conversion $m H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 2014 2015 Adj EBIT 20.5 21.5 33.2 41.0 43.2 89.9 74.3 133.2 Adj depreciation & amortisation 4.8 5.4 5.8 6.1 6.7 12.8 11.8 19.4 Adj EBITDA 25.3 26.9 39.0 47.1 49.9 102.7 86.1 152.6 Working capital movement2 -0.2 4.0 -3.0 3.8 0.2 -6.3 0.8 -6.0 Les
Slide 22: Paysafe
22 — Paysafe AETELLER Gpaysafecad % PAYOLUTION XOVS Paysafe
Slide 23: Appendix
Appendix Paysafe™
Slide 24: Enhanced disclosure: pro-forma division transaction volume
Enhanced disclosure: pro-forma division transaction volume $ billion H1 14 H2 14 H1 15 H2 15 Payment Processing 8.3 8.3 8.2 8.9 Rev / volume 2.0% 2.0% 2.2% 2.3% Digital Wallets 9.1 9.8 9.7 10.2 Rev / volume 1.2% 1.2% 1.2% 1.2% Prepaid 1.5 1.5 1.4 1.3 Rev / volume 7.8% 7.6% 7.7% 7.3% Transaction volu
Slide 25: IFRS profit after tax reconciliation
IFRS profit after tax reconciliation $m H1 13 H2 13 H1 14 H2 14 H1 15 H2 15 2014 2015 Profit after tax 14.4 17.1 27.5 30.2 2.4 5.0 57.7 7.4 Tax 1.1 0.2 0.0 1.3 2.2 2.2 1.3 4.4 Profit before tax 15.5 17.3 27.5 31.5 4.6 7.2 59.0 11.8 Foreign exchange (gain) / loss -0.2 -0.7 -0.1 3.1 5.8 3.9 3.0 9.7 Ac