Tyro Payments Ltd. · ASX:TYR
Tyro Payments — H1 FY2019 Earnings Presentation
23 slides from Tyro Payments's earnings presentation, Feb 28, 2019
Slide 1: Tyro FY19 Half Year Investor Presentation
Welcome to the Tyro FY19 Half Year Investor Presentation 28 February 2019 2019 © Tyro Payments Limited TYRO FY19 HALF YEAR INVESTOR PRESENTATION| FEB 2019 | TYRO.COM
Slide 2: Important Notice
Important Notice • This presentation may contain forward-looking statements that involve • Neither Tyro nor any other person makes any representation (express risks, uncertainties, and assumptions. If any such risks or uncertainties or implied) as to the accuracy or completeness of this presentation
Slide 3: Items of Business
Items of Business 1. Key Achievements + Highlights Robbie Cooke, CEO 2. H1 Results Analysis Prav Pala, CFO 3. Trading Update + Initiatives Robbie Cooke, CEO 4. Chairman’s Update Kerry Roxburgh, Chairman 5. Q&A 3 TYRO FY19 HALF YEAR INVESTOR PRESENTATION| FEB 2019 | TYRO.COM
Slide 4: Key Achievements + Highlights
Key Achievements + Highlights Robbie Cooke Chief Executive Officer 4 TYRO FY19 HALF YEAR INVESTOR PRESENTATION| FEB 2019 | TYRO.COM
Slide 5: Tyro's DNA
Tyro’s DNA • We are a challenger at heart with an absolute focus on: – disrupting the status quo for the benefit of our customers; – re-engineering banking and payments to remove friction; – putting our customers at the centre of all that we do. • We work with some amazing businesses and are genuine
Slide 6: Tyro's Segment Share 5th Largest
Tyro’s Segment Share 5th Largest Payments EFTPOS Terminals Month Transaction Volume - Dec 2018* Jun 2018 Terminals (‘000) CAGR ’14-’18 (%) CBA 266 (1%) 2.9% Total market1 $60b ANZ 164 6% All verticals + size NAB 151 (4%) businesses Westpac 138 4% Tyro 40 23% ~8-10% Bendigo 11% $17-20b 39 Target addr
Slide 7: Growth Across Key Indicators
Growth Across Key Indicators Customers1 Transaction Volume2 Revenue3 (PCP %, CAGR %, #) (PCP %, CAGR %, $m) (PCP %, CAGR %, $m) 35% 31% 33% 29% 30% 25% 27% 26% 28% 27% 24% 23% 23% 21% 18% 26,351 8,534 91.1 +24% +27% +29% 20,778 6,504 71.6 16,944 5,253 59.1 14,402 46.3 4,257 11,502 3,366 8,931 34.9 2
Slide 8: Key Performance Indicators
Key Performance Indicators Sales Applications Core Platform Availability Customer Churn1 (#) (6 month average %) (%) +26% 0.033% -1.8pp 4,821 99.999% 13.7% 11.9% 3,839 2,424 2,022 2,064 99.966% H1 H1 H1 H1 H1 H1 H1 H1 H1 FY15 FY16 FY17 FY18 FY19 FY18 FY19 FY18 FY19 8 Source: Internal Data. Note: 1)
Slide 9: Key Performance Indicators
Key Performance Indicators Loan Originations Deposit Balance Staff Headcount1 ($m) ($m) (#) +128% +15% +97% 20.6 21.6 428 373 349 242 10.5 9.5 164 106 3.2 2.2 0.0 0.1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 9 Source: Internal Da
Slide 10: Payments + Banking Operations
Payments + Banking Operations Payments Deposits Loans • A record 6 months with • Fee-free interest-bearing • Cash-flow based unsecured $8.5 billion transacted, up business bank account. loan repaid via a pre-agreed 31% on prior comparative • 1,734 active Tyro Bank percentage of daily EFTPOS period.
Slide 11: H1 Results Analysis
TYRO H1 Results Analysis Prav Pala Chief Financial Officer 11 TYRO FY19 HALF YEAR INVESTOR PRESENTATION| FEB 2019 | TYRO.COM
Slide 12: Key Financial Metrics
Key Financial Metrics Transaction Volume1 Revenue2 Operating Expenses EBITDA3 Net Loss (PCP %, $m) (PCP %, $m) (PCP %, $m) (PCP %, $m) (PCP %, $m) +31% +27% 8,534 91.1 6,504 71.6 +20% 48.9 40.8 -7% -14% H1 H1 H1 H1 H1 H1 FY18 FY19 FY18 FY19 FY18 FY19 (4.1) (4.4) (6.7) (7.7) H1 H1 H1 H1 FY18 FY19 FY1
Slide 13: Operating Income – H1FY19
Operating Income – H1FY19 H1FY19 H1FY18 Movement Movement Key Results $'000 $'000 $'000 % Acquiring revenue 88,123 69,169 18,954 27% Banking revenue 1,301 687 614 89% Other revenue 1,629 1,782 (153) (9%) Total revenue 91,053 71,638 19,415 27% Less: Scheme, interchange and support fees (49,393) (37,0
Slide 14: Operating Expenses – H1FY19
Operating Expenses – H1FY19 H1FY19 H1FY18 Movement Movement Key Results $'000 $'000 $'000 % Employee benefits expense (exc. SBP) 29,465 26,378 3,087 12% Administrative expenses 12,815 9,610 3,205 33% Marketing expense 1,829 980 849 87% Bank fee and other expenses 173 100 73 73% Operating expenses be
Slide 15: Financial Review – H1FY19
Financial Review – H1FY19 H1FY19 H1FY18 Movement Movement Key Results $'000 $'000 $'000 % Total revenue 91,053 71,638 19,415 27% Net operating income 41,159 34,199 6,960 20% Operating expenses before non-cash items (44,282) (37,068) (7,214) (19%) EBITDA (4,373) (4,089) (284) (7%) Non-cash items1 (4,
Slide 16: Strong Balance Sheet for Growth
Strong Balance Sheet for Growth H1FY19 H2FY18 Movement Movement Capital Position ($m) Key Results $'000 $'000 $'000 % 162% Cash + 75,888 85,473 (9,585) (11%) Investments 139% Total Assets 148,008 139,558 8,450 6% 107% Total Liabilities 44,635 30,017 14,618 49% 105 96 89 Capital 88,990 96,473 (7,483)
Slide 17: Trading Update + Initiatives
GELATO MESSINA Trading Update + Initiatives Robbie Cooke Chief Executive Officer 17 TYRO FY19 HALF YEAR INVESTOR PRESENTATION| FEB 2019 | TYRO.COM
Slide 18: Initiatives Update
Initiatives Update Tap & Save Platform Mar 2018 Tyro launched Tap & Save. Coming General availability of the first Apr 2018 Recommended deadline for Soon use case – integrated loyalty. least-cost routing by the House Pilot of the integrated booking of Representatives.1 use case. Dec 2018 Over 6,000
Slide 19: Coming Soon
Coming Soon Alipay Ecommerce Brand Refresh • Deal signed with Alipay. • Single settlement and • Encapsulate the essence • Gold Coast International reporting across online and ambition of Tyro. Airport + Sydney Airport and in-store channels. • Cross-company project now live, with Heinemann • Speed, r
Slide 20: Momentum Continuing in January 2019
Momentum Continuing in January 2019* Jan 2019 Jan 2018 Customers YTD (#)1 Movement +26% Key Results YTD YTD % 20,892 26,384 16,835 1 Customers (#) 26,384 20,892 26% 31-Jan-17 31-Jan-18 31-Jan-19 Transaction Volume YTD ($m)2 Transaction Volume ($m)2 9,978 7,585 32% +32% 7,585 9,978 6,108 Revenue ($m)
Slide 21: Outlook for H2 FY19
Outlook for H2 FY19 New and some increased costs in H2, relating to: • step-up in marketing activity; • continued development of Tyro Platform; • ecommerce solution; • additional headcount. 21 TYRO FY19 HALF YEAR INVESTOR PRESENTATION| FEB 2019 | TYRO.COM
Slide 22: Q&A
SoCal Q&A 22 TYRO | FEB 2019 | TYRO.COM
Slide 23: Thank you
Thank you 2019 © Tyro Payments Limited TYRO FY19 HALF YEAR INVESTOR PRESENTATION| FEB 2019 | TYRO.COM