Slide 1: FY21 Investor Presentation
FY21 INVESTOR PRESENTATION 26 AUGUST 2021 Tyro Payments Limited ABN 49 103 575 042
Slide 2: Our Purpose, Mission and Vision
Our Purpose Setting businesses free to get on with business by simplifying payments + banking solutions “We are a tech Our Mission Our Vision company providing We eliminate friction with To be Australia’s: payments + business payments + banking solutions, that: fastest banking - taking on Businesses
Slide 3: Delivering against our Growth Plan
Delivering against our Growth Plan We have a clear strategy that underpins our growth ambitions. FY21 has seen us execute against a number of elements of that plan: Significant uplift in transaction value to $25.5 billion (IPO: $17.5 billion) P Significant increase in merchants to 58,186 (IPO: 29,03
Slide 4: Addressable Market Opportunity Remains Significant
Addressable Market Opportunity Remains Significant Annual transaction value of card payments acquired in Australia ($ billion) 3.8% 3.0% 2.7% 2.2% 1.6% 1.9% Strong track record of growth - above system $676b 1.4% $660b growth + multiple growth levers to materially $651b $607b increase market share o
Slide 5: Leveraging Our Scalable Platform to Accelerate Growth
Leveraging Our Scalable Platform to Accelerate Growth Tyro is well positioned to continue to accelerate growth over the medium term. 1 2 3 4 Tailored payment solutions for Delivering benefits of scale Strategic partnerships with large Strategic investments to verticals drive strong merchant base org
Slide 6: Leveraging Our Scalable Platform to Accelerate Growth (cont.)
Leveraging Our Scalable Platform to Accelerate Growth (cont.) 5 6 7 Expansion in eCommerce and other Cross-sell opportunities represent Continued expansion into new verticals payment types upside potential Launch of eCommerce in March Interest income on loans Merchant deposits 2019 Transaction value
Slide 7: FY21 Financial Highlights - Record Results Delivered
FY21 Financial Highlights - Record Results Delivered up 26% $25.5 B h 26% in transaction value to record $25.5 billion (FY20: $20.1 billion) Transaction Value $20.1 B h 81% in merchants choosing Tyro reaching 58,186 (FY20: 32,176) up 81% 58,186 Merchant h 28% gross profit to record $119.4 million (F
Slide 8: FY21 Operational Call-Outs
FY21 Operational Call-Outs Brand awareness: • Promoted brand awareness 20% (FY20: 14%) up 6 20% Prompted Brand points • Unprompted brand awareness 19% (FY20: 9%) Awareness 14% Churn remains low: • Transaction churn rate of 8.7% (FY20: 8.0%) • Merchant churn rate of 11.3% (FY20: 11.7%) up 10 19% Unpr
Slide 9: Results in Overview
Results in Overview Transaction Value h 26.4% Gross Profit h 28.1% EBITDA h 424.0% Operating Leverage Achieved STATUTORY NORMALISED1 STATUTORY GROWTH - Payments Business FY21 FY20 GROWTH NORMALISED Performance (normalised1) $’000 $’000 % FY21 FY21 FY20 FY21 TO FY20 $’000 $’000 $’000 % Transaction va
Slide 10: Tyro | Bendigo Bank Alliance
Tyro | Bendigo Bank Alliance Number of terminals by banks in Australia1 (‘000) - as at 30 June 2020 (updated for Tyro + Bendigo Bank terminals at 30 June 2021) • Commercial completion - 1 June 2021 244 • Joint objective of alliance to provide Tyro’s best-in-class payments solution to Bendigo Bank’s
Slide 11: Acquisition of Medipass
Acquisition of Medipass • 100% acquisition of Medipass Solutions on 31 May 2021 Unified Multi-Sided Digital Approval + Payments Platform - $22.5 million (~60% cash / ~40% scrip) • Medipass’ digital health payments platform combined with Tyro’s card-present solution provides unified health claiming +
Slide 12: Tyro Connect
Tyro Connect • Tyro Connect Integration - a hub for apps + POS/PMS systems Payments Data (in-store + online) Providing individual merchants with: • A real time feed of all their card transactions Customer ordering Booking • A daily consolidated data share of all their transactions across all locatio
Slide 13: me&u - Leading 'tap, order + pay' Solution
me&u - Leading ‘tap, order + pay’ Solution • ~16% equity investment in me&u (initial investment - $3.5 million), providing rights to be exclusive in-app payment provider • me&u is a leading Australian tap, order + pay in venue solution for the hospitality industry • Established by the founder of Dim
Slide 14: FY21 Operational Review
FY 21 OPERATIONAL REVIEW 14
Slide 15: Payments - Operational Highlights
Payments - Operational Highlights Transaction Value ($’billion) Merchants (#) FY21 FY20 GROWTH $’000 $’000 % FY16 - FY20 CAGR +30% 58,186 Transaction value 25,453,507 20,131,045 p 26.4% FY16 - FY21 CAGR +24% $25.5b 18,490 Revenue1 230,204 202,826 p 13.7% Gross profit1 110,812 86,142 p 28.6% $20.1b 3
Slide 16: Payments - Operational Highlights (cont.)
Payments - Operational Highlights (cont.) Merchant 26% 35% 25% 14% Count Improvement in margins driving gross profit (10,201) (13,952) (9,803) (5,740) • 0.8075% Merchant Service Fee (MSF) (FY20: 0.8953%) • 0.3437% Merchant Acquiring Fee (MAF) (FY20: 0.3205%) Transaction • Change in card mix to debit
Slide 17: Impact of Covid on the Business
Impact of Covid on the Business Continued impact of Covid on Payments Business Monthly transaction value growth - FY21 vs. FY20 • Lockdowns continue to significantly impact transaction value growth 4 › First national lockdown March 2020 to June 2020 1 5-year CAGR - 24% 1 55% Jun 7% › 2 Second major
Slide 18: Terminal Connectivity Issue
Terminal Connectivity Issue • Issue identified on 5 January 2021 • 70% of Tyro’s merchants were unaffected by the incident • 18-year history with no equivalent event • Event does not sit comfortably with Tyro’s DNA • Impacted merchants - › 11% of merchants partially impacted (multi-terminal outlets
Slide 19: Banking - Operational Highlights
Banking - Operational Highlights Loan originations ($’million) Lending loss ($’million) FY21 FY20 GROWTH 2.7% $’000 $’000 % 2.1% $60.1m 1.8% Loan Originations 25,843 60,107 q 57.0% 1.6% 1.0% Revenue 3,222 1,818 p 77.2% $52.2m Interest income on loans 1,952 4,179 q 53.3% $1.1m Fair value gain/(loss)
Slide 20: Banking - Operational Highlights (cont.)
Banking - Operational Highlights (cont.) Delivering on banking innovation Tyro Bank Account • $72.5 million in deposits on the balance sheet at 30 June 2021 (FY20: $49.7 million) Implemented Mambu’s cloud-native banking platform • • 4,603 active accounts Average account balance of $15,750 (FY20: $13
Slide 21: Overview of FY21 Financial Performance
OVERVIEW OF FY21 FINANCIAL PERFORMANCE
Slide 22: Financial Performance - P&L
Financial Performance - P&L STATUTORY NORMALISED1 STATUTORY CHANGE FY21 Revenue and income NORMALISED TO FY20 • $4.5 million - JobKeeper ensured no team retrenchments + assisted support to merchants (FY20: $3.9 FY21 FY21 FY20 STATUTORY ($’000) ($’000) ($’000) % million) Transaction value 25,453,507
Slide 23: Operating Metrics
Operating Metrics Operating Metrics as a % of Transaction Value 1.0000% Merchant Service Fee (MSF) reflects: 0.9531% 0.9403% • Full year impact of lower MSF, higher margin 0.9500% 0.9292% 0.9269% debit cards 0.8953% 0.9000% • Full-year run rate of reduced usage of higher MSF (but higher cost) intern
Slide 24: Financial Position
Financial Position 30 JUNE 2021 30 JUNE 2020 Strong balance sheet underwrites continued growth $’000 $’000 ASSETS Cash + Financial Investments Cash1 103,712 122,190 • Decrease in cash due to Loans to merchants 15,387 11,921 › Capex on terminals of $18.3 million Other current assets 20,560 18,278 › $
Slide 25: Trading Update
TRADING UPDATE 25
Slide 26: Trading Update
Trading Update1 PAYMENTS BUSINESS: • Transaction value to 20 August $3.64 billion, up 24% on pcp › Victoria h48% Weekly Transaction Value Growth - FY22 › NSW i30% 40% › Queensland h12% 35% › WA h14% 32% 30% 28% 28% › SA h6% 26% 24% 24% 24% › Other (includes Bendigo Bank Alliance) h437% 25% 22% 20% 1
Slide 27: Looking Ahead
Looking Ahead • Continued benefit from Bendigo Bank Alliance on transaction values • Challenges of COVID-19 continue in the immediate term “…our experience has been that businesses rebound rapidly as normality returns and we remain optimistic as vaccination rates increase...” • Expectation of rapid
Slide 28: Supplementary Materials
@ $ 2 2 Creda ete Health IENTARY Create a claim 28
Slide 29: Attachment 1 - Reconciliation of Statutory P&L to Normalised P&L
Attachment 1 - Reconciliation of Statutory P&L to Normalised P&L ADJUSTMENTS Summary of adjustments FY21 TERMINAL BENDIGO BANK IPO RELATED SHARE FY21 1. MSF discount and terminal rental waiver STATUTORY CONNECTIVITY PARTNER REVENUE SIGNIFICANT BASED PAYMENTS NORMALISED provided to merchants impacted
Slide 30: Attachment 2 - Cash Flow Analysis
Attachment 2 - Cash Flow Analysis FY21 FY20 Positive cash generation from operations $’000 $’000 Net payments income 110,120 86,513 Operating Cash Flows: Net interest income 2,603 5,548 • $5.0 million positive cash generation from the business before terminal purchases + Other income 6,069 4,264 con
Slide 31: Attachment 3 - Capturing Card-Present Terminal Market Share
Attachment 3 - Capturing Card-Present Terminal Market Share Number of terminals by banks and other providers in Australia (‘000) - as at 30 June 2020 (updated for Tyro terminals at 30 June 2021) CAGR (30 June 2015 — 30 June 2020) • 104,827 terminals at 30 June 2021 - up 67% from FY20 (3%) (6%) 2% 0%
Slide 32: Attachment 4 - Capturing Market Share in Growing Total Addressable Market
Attachment 4 - Capturing Market Share in Growing Total Addressable Market Annual transaction value of card payments acquired in Australia1 ($ billion) - Tyro’s estimated market share of total card payments acquired in Australia - as at 30 June 2021 as at 30 June 2021 4.0% ~3.8% 3.8% market share $67
Slide 33: Attachment 5 - Our Competitive Strengths
Attachment 5 - 1. Software-led approach to payments, based on a core proprietary technology Our Competitive Strengths platform 6. A values-led and talented team 2. Seamless direct integration with a significant number of POS systems 5. Focus on providing best- in-class service to tens of 3. A focus
Slide 34: Attachment 6 - Liquidity & Capital Adequacy
Attachment 6 -Liquidity & Capital Adequacy Total Capital Ratio decreased to 73% as a result of: 162% • ~$40 million Bendigo Bank Commission Guarantee under the Bendigo Bank Alliance and $9 million upfront consideration paid $166m • ~$22.5 million Medipass intangible recognised on acquisition offset
Slide 35: Disclaimer
Disclaimer The material in this presentation is general background information about Tyro Payments Limited (Tyro) and is current at the date of the presentation, 26 August 2021. The information in the presentation is given for informational purposes only, is in summary form and does not purport to b
Slide 36: Investor Relations contact details
Investor Relations contact details: Giovanni Rizzo Phone: +61 (0) 439 775 030 Email: grizzo@tyro.com Address: 1/155 Clarence St, Sydney NSW 2000 Company website: tyro.com