Eml Payments Ltd. · ASX:EML
Eml Payments — H1 FY2021 Earnings Presentation
31 slides from Eml Payments's earnings presentation, Feb 17, 2021
Slide 1: Investor Presentation
17 February 2021 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 Investor Presentation +61 (07) 3557 1100 EML Payments Limited (ASX: EML) is pleased provide investors with the Level 12 following presentation. 333 Ann Street Brisbane QLD 4000 EML Payments Limited About EML Payments Limited
Slide 2: Half Year 2021 Interim Results
Half Year 2021 Interim Results. 17 February 2021
Slide 3: Important Notice
01 Business Update & Growth Outlook 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 presentation. This 02 information is given in summary form an
Slide 4: Mission. Vision. Purpose.
EML Payments H1 FY21 Interim Results 03 Mission. We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. Vision. Purpose. To offer customers Inspiring a feature rich, fully transformative embedded payment
Slide 5: H1 FY21 Snapshot
EML Payments H1 FY21 Interim Results 04 H1 FY21 Snapshot Operating in EML is an ASX listed (ASX:EML) Payments Technology 28 486 company operating proprietary processing platforms Countries Employees that enable Fintech disruption, with offices in Australia, United Kingdom, Europe, and the United Sta
Slide 6: A Strong Start
EML Payments H1 FY21 Interim Results 05 A Strong Start GDV EBITDA1 Operating Cashflow $10.2bn $28.1m $34.8m 54% 42% 329% Revenue1 NPATA2 Cash At Bank $95.3m $13.2m $136.5m 61% 30% 15% (30 June 2020) 1 Revenue and EBITDA are stated excluding the impacts of AASB3 Business Combinations, a full reconcil
Slide 7: Segment Performance
EML Payments H1 FY21 Interim Results 06 Segment Performance General GeneralPurpose Reloadable Purpose (GPR) Reloadable (GPR) Use cases - Banking as a service, Salary as a service, Gaming, Earned Wage Access, Neo-lending, Multi-currency, Government, Non Governmental Organisations Highlights Revenue G
Slide 8: Business Update & Growth Outlook
H1 FY21 Interim Results Business Update & Growth Outlook.
Slide 9: Track Record of Continued Growth
EML Payments H1 FY21 Interim Results 08 Track Record of Continued Growth GPR GDV G&I GDV July – December July – December 56% 5 YR EBITDA CAGR $72m $56m $71m $75m $124m $352m July Aug Sept Oct Nov Dec VANs GDV July – December HY1 FY17 HY1 FY18 HY1 FY19 HY1 FY20 HY1 FY21 GDV $1.9bn $3.6bn $4.2bn $6.6b
Slide 10: Malls GDV down $104.1m, offset by higher breakage rates
EML Payments H1 FY21 Interim Results 09 Malls GDV down $104.1m, offset by higher breakage rates minimising Gross Profit impact Canada: United Kingdom: — Level 4 restrictions in place from mid — Non-essential retail closed from mid December prohibiting all non-essential December activity and non-esse
Slide 11: Incentives continued to grow, offsetting weaker trading conditions in Mall vertical
EML Payments H1 FY21 Interim Results 10 Incentives continued to grow, offsetting weaker trading conditions in our Mall vertical GDV +11% Incentives North America Australia United Kingdom & Europe +13% +15% +8% GDV GDV GDV Diversification of earnings risk across the portfolio of countries and program
Slide 12: Operational Highlights
EML Payments H1 FY21 Interim Results 11 Operational Highlights Business Development Momentum EML Retail Salary Packaging Launched 64 new programs Commenced roll-out of new EML Retail Exited H1 with over 280,000 active accounts, platform for our mall clients in Europe, up 47% on PCP and up 20% on 30
Slide 13: Operational Highlights
EML Payments H1 FY21 Interim Results 12 Project Accelerator Operational Highlights Home Office Project Accelerator launched July 2020 Government Continued to progress program, Investment in technology totalling $10-15m over FY21-FY22 with Phase 1 now in-market and full Continued to support governmen
Slide 14: Financial Results
H1 FY21 Interim Results Financial Results.
Slide 15: Financial Performance
EML Payments H1 FY21 Interim Results 14 Financial Performance ($’000s) H1 FY20 H1 FY21 GROWTH GDV 6,616,240 10,212,313 54% A record start. TOTAL REVENUE 1 59,156 95,329 61% Revenue conversion bps 89bps 93bps 4% GROSS PROFIT 1 44,803 67,252 50% RECORD RECORD GP margin 76% 71% (5%) GDV NPATA 1,2 OVERH
Slide 16: Gross Debit Volume (GDV)
EML Payments H1 FY21 Interim Results 15 Gross Debit Volume (GDV) General Purpose Gift & Incentive Virtual Account Reloadable (GPR) (G&I) Numbers (VANs) GDV $4.87bn $0.75bn $4.59bn $10.21bn 54% 233% 11% 6% GDV by Segment (A$m) $10.2bn • GDV growth from both acquisition • Challenging trading condition
Slide 17: Revenue
EML Payments H1 FY21 Interim Results 16 Revenue General Purpose Gift & Incentive Virtual Account Reloadable (GPR) (G&I) Numbers (VANs) Revenue 1 $54.4m $35.0m $5.8m $95.3m 61% 314% 13% 5% Revenue by Segment (A$m) $95.3m • Revenue growth driven by PFS • Volume impacted by lockdowns & • Stable revenue
Slide 18: Gross Profit & Overheads
EML Payments H1 FY21 Interim Results 17 Gross Profit & Overheads General Purpose Gift & Incentive Virtual Account Reloadable (GPR) (G&I) Numbers (VANs) Gross profit $34.1m $28.8m $4.2m $67.3m 50% 290% 11% 23% • Overheads for the Group increased on PCP due to the impacts of the 12% acquisition of PFS
Slide 19: EBITDA to NPATA
EML Payments H1 FY21 Interim Results 18 EBITDA to NPATA 28,05428,0544,638 28,0544,638 28,054 4,638 28,054 28,054 4,638 28,0544,638 4,6384,638 28,054 4,638 5 Year EBITDA 2,876 2,876 2,876 701 701 2,876 701 2,876 2,876 2,876 701 701 701 701 2,876 701 EBITDA CAGR 56% $28.1m 3,519 3,519 3,519 3,519 3,51
Slide 20: Financial Position
EML Payments H1 FY21 Interim Results 19 Financial Position 31 CARDHOLDER 30 June December ASSETS/ CORPORATE Cash on hand of $136.5m, with no secured debt. ($’000s) 2020 2020 GROWTH LIABILITIES BALANCE SHEET Cash and cash equivalents 118,381 136,530 15% 136,530 Contract asset down $2.7m due to lower
Slide 21: Financial Performance – Cash Flow
EML Payments H1 FY21 Interim Results 20 Financial Performance – Cash Flow Cash & Cash Equivalents $35.1m $136.5m Underlying Operating Cash Inflows1 H1 FY21 Underlying Operating Cash Flow Movements 125% EBITDA to Underlying Operating $40,000 Cashflow conversion $0.1m $2.9m H1 FY21 $2.8m AMF-REC H1 FY
Slide 22: FY2021 Guidance
H1 FY21 Interim Results FY2021 Guidance.
Slide 23: FY2021 - Financial Guidance
EML Payments H1 FY21 Interim Results 22 FY2021 - Financial Guidance Revenue The Group expects EBITDA1 Represents growth of $180.0m – $190.0m 54%-66% to be in a range of (FY20: $121.6m) A$50.0m – $54.0m over PCP of $32.5m EBITDA1 for FY21 $50.0m – $54.0m (FY20: $32.5m) NPATA2 Assumptions: $30.0m – $3
Slide 24: H1 FY21 Interim Results Q&A
H1 FY21 Interim Results Q&A.
Slide 25: Analyst Briefing Data
H1 FY21 Interim Results Analyst Briefing Data.
Slide 26: Analyst Briefing Data - FY19-FY21
EML Payments H1 FY21 Interim Results 25 Analyst Briefing Data - FY19-FY21 Key Metrics ($’000s) H1 2019 H2 2019 FY2019A H1 2020 H2 2020 FY2020 H1 2021 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths Headcount (closing) 236 275 275 272 450 450 486 Total Stored Value (including bonds) $636,216 $49
Slide 27: Analyst Briefing Data - FY19-FY21
EML Payments H1 FY21 Interim Results 26 Analyst Briefing Data - FY19-FY21 Key Financials ($’000s) H1 2019 H2 2019 FY2019 H1 2020 H2 2020 FY2020 H1 2021 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths General Purpose Reloadable $1,392,659 $1,346,678 $2,739,337 $1,465,909 $2,768,260 $4,234,169 $4
Slide 28: Analyst Briefing Data - FY19-FY21
EML Payments H1 FY21 Interim Results 27 Analyst Briefing Data - FY19-FY21 Key Financials ($’000s) H1 2019 H2 2019 FY2019 H1 2020 H2 2020 FY2020 H1 2021 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths Revenue (includes interest income) $47,194 $50,001 $97,195 $59,156 $62,474 $121,630 $95,329 Gro
Slide 29: Analyst Briefing Data - Guidance FY21
EML Payments H1 FY21 Interim Results 28 Analyst Briefing Data - Guidance FY21 ACTUAL GUIDANCE RANGE Key Financials ($’000s) H1 FY 2021 FY 2021 6mnths 12mnths GDV $10,212,313 - Revenue $95,329 $180,000 -$190,000 Gross profit $67,252 - Overheads ($39,198) ($76,000) - ($80,000) EBITDA $28,054 $50,000 -
Slide 30: Our Journey
EML Payments H1 FY21 Interim Results 29 Our Journey Launch of GPR in North America + Launch of Mobile Rewards Incentives Launch of GPR in + Expansion into Scandinavia Launch of largest + B2B & B2C Cards Launch of GPR UK and Europe in Australia European mall + Mastercard licence program EML launches
Slide 31: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com