W.a.g. Payment Solutions Plc · LSE:EWG
W.a.g. Payment Solutions — FY2021 Earnings Presentation
29 slides from W.a.g. Payment Solutions's earnings presentation, Mar 24, 2022
Slide 1: W.A.G payment solutions plc FY 2021 results
W.A.G payment solutions plc FY 2021 results 24 March 2022 Martin Vohánka / Founder and CEO Magdalena Bartoś / CFO 1
Slide 2: Disclaimer
Disclaimer This presentation comprises certain written materials/slides prepared by W.A.G payment solutions plc (the Company) for the purposes of the Company’s investor relations conference. This document, its contents and the presentation may not be copied, distributed, published, reproduced or pas
Slide 3: 2021 Highlights
2021 Highlights Achieved strong revenue growth and high EBITDA profitability ▪ Financial results in-line with medium term financial guidance Net energy and services sales Adjusted EBITDA €153.1m €69.7m Executed against growth strategy ▪ Delivered growth from existing customers ▪ Continued geographic
Slide 4: Complementary Business Segments
Complementary Business Segments PAYMENT SOLUTIONS MOBILITY SOLUTIONS ▪ Rolled out new Payment Management System ▪ Expanded the acceptance network for roadside service payments 73.9% ▪ Launched mobile payments pilot 26.1% ▪ Offered new supply-chain financing solutions from net revenue ▪ Enabled payme
Slide 5: Response to War in Ukraine
Response to War in Ukraine Humanitarian response ▪ Provided material support for employees and relatives impacted by the war ▪ Organizing donations to charities active in Ukraine Business response ▪ Continously screening sanction updates for immediate compliance ▪ Discontinued fuel sales through acc
Slide 6: Financial Results
Financial Results Magdalena Bartoś / CFO 6
Slide 7: Highly Attractive Financial Profile
Highly Attractive Financial Profile High revenue Large scale and Proven growth track retention and Highly profitable network record diversification 15,020 12.3% >110% 45.5% Active payment solutions customers CAGR 19-21 Average net revenue retention Adjusted EBITDA margin Active payment solutions 201
Slide 8: 2021 Group Financial Highlights
2021 Group Financial Highlights ▪ Revenue growth enhanced by: All figures in € million 2021 2020 YoY% ▪ Organic Net energy and services sales growth at 17.1% Net energy and services sales 153.1 128.6 +19.1% ▪ Net revenue retention at >110% Adjusted EBITDA 69.7 58.6 +18.9% ▪ Increasing penetration in
Slide 9: Robust Net Revenue Growth
Robust Net Revenue Growth 15.6% CAGR 153.1 128.6 40.0 114.6 34.5 33.4 80.2 72.9 113.1 21.2 18.8 94.1 81.2 59.0 54.1 2019 2020 2021 H1 2021 H2 2021 Payment Solutions Mobility Solutions Payment Solutions Mobility Solutions Copyright ©2022 W.A.G. Payment Solutions Notes: All figures in € million 9
Slide 10: EBITDA Bridge
EBITDA Bridge 41% 46% 46% ▪ Adjusted EBITDA growth driven by organic growth in payment solutions (€19m) and mobility solutions 22% CAGR (€2.9m) supported by consolidation of KomTes (€2.6m) (13.4) ▪ Growth in expenses driven by investment into 24.5 69.7 organization and technology to support our stra
Slide 11: Corporate Expenses
Corporate Expenses Reported Adjusted ▪ Employee expenses increased as the Group focused All figures in € million 2021 2020 YoY% 2021 2020 YoY% on priority hires, talent retention, strengthening the structure and remuneration schemes appropriate for Employee expenses (55.7) (41.4) 34.5% (47.1) (39.4)
Slide 12: Capital Expenditure
Capital Expenditure Ordinary High single digit Expanding customer capabilities CapEx % Net 9% 4% 7% % of net revenue Revenue(1) ▪ Enhanced CRM systems Transformational €50m cumulative CapEx (€m) 13.5 16.4 23.3 for 2022-2023 ▪ Improved customer acquisition and retention ▪ Next-Gen ERP implementation
Slide 13: Cash Flow Bridge
Cash Flow Bridge Tax refund working capital movements (29.9) Other working capital movements (14.9) (31.2) Total working capital development (44.8) (38.9) 224.2 14.9 199.9 16.8 (14.5) 29.9 (44.8) 89.0 17.7 (14.6) Cash at 1 Profit before Adjusting Non-cash Adjusting Working Interest, IPO proceeds Cap
Slide 14: Capital Allocation Principles
Capital Allocation Principles Investment in Business Disciplined Prioritise growth Robust Balance Sheet for Organic Growth Strategic M&A over dividends ▪ End-to-end integrated ▪ Looking at accretive ▪ Financial strength providing ▪ No intention to declare ecosystem acquisitions strategic flexibility
Slide 15: Current Trading and Outlook
Current Trading and Outlook ▪ Net energy and services sales for Q1 estimated at least €39m ▪ Eurowag has been able to respond dynamically and pro-actively to evidencing strong LTM growth at approximately 19% YoY emerging risks and opportunities given: ▪ Q1 22 growth of approximately 12% y/y has been
Slide 16: Summary Financial Guidance
Summary Financial Guidance ▪ Organic net revenue growth between high teens and low twenties over the medium term NET REVENUE GROWTH ▪ Expect both payment solutions and mobility solutions to grow at a similar pace over the medium term ▪ Adjusted EBITDA margin from mid forties trending to high forties
Slide 17: Strategic Update
Strategic Update Martin Vohánka / Founder and CEO 17
Slide 18: Substantial Market Opportunity
Substantial Market Opportunity Growing serviceable addressable market driven by CRT digitalisation Vast Road Mobility Markets Serviceable addressable market(1) (net revenue in €bn) €361bn 13% ~3x increase Energy payments Total transaction value 2020-27 TTV CAGR 25-40 in Europe by 2027(2) €33bn 7% To
Slide 19: Enabling Growth for Customers and Partners
Enabling Growth for Customers and Partners MERCHANTS BUSINESS OWNERS AND PARTNERS ▪ Data-driven insights to Truck drivers Fleet dispatchers Backoffice ▪ Driving traffic in energy support business sales network decisions ▪ Network of fuel stations ▪ Manage the entire fleet ▪ Estimate the cost of a tr
Slide 20: Powerful Flywheel Effect
Powerful Flywheel Effect Customer Data Integrated payments and mobility platform ▪ Creating lasting customer relationships PAYMENT MOBILITY ▪ Deeply entrenching Eurowag into the SOLUTIONS SOLUTIONS operations of carriers ▪ Enabling Eurowag to grow share of wallet Building a powerful flywheel effect:
Slide 21: Millions of Data Points
Millions of Data Points A tech platform leveraging data will underpin growth and industry innovation ▪ Credit-risk management Deep and detailed customer data creates further sales opportunities, increasing ▪ Data sources optimized per country (ACAS) the lifetime value of each customer and bringing e
Slide 22: Responsibility and Sustainability
Responsibility and Sustainability ▪ Building a better-connected Our industry industry Reduce direct emmisions by Increase female representation Innovating structural solutions to ▪ Increasing access to low carbon among senior managers to empower the CRT industry's transition to a low-carbon future ▪
Slide 23: Multiple Drivers for Sustained Long-Term Growth
Multiple Drivers for Sustained Long-Term Growth Embedded in guidance Upside to guidance Growth Geographic Go-to Digital Accretive from existing expansion market channel platform M&A customers and penetration expansion development Industry tailwinds Consolidating market shares Digital, telesales and
Slide 24: Key Takeaways
Key Takeaways ▪ Achieved strong revenue growth and high EBITDA profitability in line with medium-term guidance ▪ Strengthened balance sheet to support further growth following the IPO ▪ Delivering on technology transformation with disciplined execution of CAPEX plan ▪ Exploring options to facilitate
Slide 25: Q&A
Q&A investors@eurowag.com Copyright ©2022 W.A.G. Payment Solutions 25
Slide 26: Appendix
Appendix 26
Slide 27: Revenue Model
Revenue Model Payment solutions Mobility solutions Re-occurring transaction-based revenue streams Re-occurring transaction, recurring subscription and other fee-based revenue streams Vehicle information Other adjacent Energy payments Toll payments Tax refund Smart routing (Incl. telematics) services
Slide 28: Comprehensive Go-To-Market Strategy
Comprehensive Go-To-Market Strategy BUILDING BECOMING Multi-channel sales strategy ONBOARDING A RELATIONSHIP A TRUSTED PARTNER Full control of the client acquisition Digital campaign Data analytics to build rich picture of customer activity process - direct “pitching”, on- boarding, sales and post-s
Slide 29: Differentiated Integrated CRT Offering
Differentiated Integrated CRT Offering International oil Fuel card issuers Telematics and Eurowag is a comprehensive network companies and single and other truck Fleet Management Logistics built to serve the CRT industry product providers service providers providers brokers / DFF Integrated - bind c
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