Tyro Payments Ltd. · ASX:TYR
Tyro Payments — H1 FY21 Earnings Presentation
26 slides from Tyro Payments's earnings presentation, Feb 22, 2021
Slide 1: H1 FY21 Investor Presentation
H1 FY21 INVESTOR PRESENTATION 22 FEBRUARY 2021 Tyro Payments Limited ABN 49 103 575 042
Slide 2: Tyro's Ecosystem
Tyro’s Ecosystem Tyro sh Community nc t Ca n Ad rcha e va ot- Me • Tech focused values driven company In- d-N nt ap r se p re Ot oduc Ca s Sim ype /pr • Integrated ecosystem with payments at our core ple P he eT r n ts l tip ew Int • Enhanced by value-adding features + products including: Mul f egra
Slide 3: Tyro at a Glance
Tyro at a Glance • 36,720 merchants Setting businesses free to get on • $12.1 billion in transaction value with business • Australia’s 5th largest merchant acquirer by terminal fleet • $61.2 million gross profit by • EBITDA of $8.5 million simplifying payments + banking • 482 team members - 50% of w
Slide 4: Results Overview - H1 FY21
Results Overview - H1 FY21 Transaction Merchant Financial Performance Value Numbers 36,720 UP h 13.2% in merchants to 36,720 (H1 FY20: 32,450) $12.1 B UP 32,450 13% $11.1 B 10% h 9.5% in transaction value to $12.1 billion (H1 FY20: $11.1 billion) i 93.0% in loan originations to $2.6 million (H1 FY20
Slide 5: Results Overview - H1 FY21 (cont.)
Results Overview - H1 FY21 (cont.) Operational Call-Outs Churn low: • transaction value churn 7.7% (H1 FY20: 8.0%) • merchant churn 10.2% (H1 FY20: 12.0%) h 17% prompted brand awareness (30 June 2020: 14%) NPS 44 as at 31 December 2020 (30 June 2020: 43) Tyro Connect live at 71 merchants - 286,000 t
Slide 6: Financial Performance
Financial Performance • Transaction Value h 9.5% • EBITDA h 464.2% • Gross Profit h 21.6% • Operating Leverage Demonstrated H1 FY21 H1 FY20 GROWTH PAYMENTS BUSINESS H1 FY21 H1 FY20 GROWTH $’000 $’000 % PERFORMANCE $’000 $’000 % Transaction value 12,117,714 11,064,972 p 9.5% Revenue 107,682 113,604 q
Slide 7: Payments - Operational Review
PAYMENTS BUSINESS PERFORMANCE Payments - Operational Review H1 FY21 H1 FY20 GROWTH $’000 $’000 % Transaction value 12,117,714 11,064,972 p 9.5% Revenue 107,682 113,604 q 5.2% Gross Profit 54,259 46,825 p 15.9% Merchant Base Growth MAF margin as a % of Transaction value 0.3946% 0.3545% p 0.4bps • h 1
Slide 8: Payments - Operational Review (cont.)
Payments - Operational Review (cont.) Merchant Count + Transaction Value by Vertical Performance of Core Verticals Merchant 25% 35% 26% 14% Count • Core Health, Hospitality + Retail verticals represent: (8,988) (12,800) (9,639) (5,293) › 86% of merchants › 91% of transaction value Transaction • Hosp
Slide 9: Payments - Operational Review (cont.)
Payments - Operational Review (cont.) Transaction Value Growth - FY16 to H1 FY21 Monthly Analysis Continued Impact of COVID-19 Restrictions on Merchants Average Growth Rate 1 January 2020 to 31 December 2020 H1 FY16 - H1 FY20 CAGR +27% 35% 30% 31.1% 30.7% 29.7% 29.6% 28.0% 25% 26.5% 26.2% 26.7% Vict
Slide 10: Banking - Operational Review
Banking - Operational Review BANKING BUSINESS PERFORMANCE H1 FY21 H1 FY20 GROWTH $’000 $’000 % Loan Originations 2,626 37,407 q 93.0% Revenue 2,042 2,570 q 20.5% Tyro Business Loan Interest income on loans 1,040 2,336 q 55.5% • $2.6 million in loan originations (H1 FY20: $37.4 million) Fair value ga
Slide 11: Tyro Connect
Tyro Connect Apps Signed up to Tyro Connect The Solution • Integration hub for apps + POS systems • Enables hospitality businesses to easily integrate + more effectively use the apps they need to thrive in today’s competitive market • A ‘plug and play’ platform software solution • Addresses merchant
Slide 12: Overview of H1 FY21 Financial Performance
OVERVIEW OF H1 FY21 FINANCIAL PERFORMANCE 12
Slide 13: Financial Performance - P&L
Financial Performance - P&L H1 FY21 H1 FY20 Growth Revenue $’000 $’000 % • Payments revenue + lending income down as a result of COVID-19 impact Transaction value 12,117,714 11,064,972 p 9.5% • $4.5 million from JobKeeper scheme ensured no team retrenchments Payments revenue and income 107,682 113,6
Slide 14: Operating Metrics
Operating Metrics Operating Metrics as a % of Transaction Value 1.0000% Merchant Service Fee (MSF) Reflects: 0.9418% 0.9350% • Increase in lower MSF debit card usage - 0.9500% 0.9138% 0.9133% 0.9118% driven by COVID 0.9000% 0.8654% • Reduction in higher MSF international credit card usage - COVID im
Slide 15: Financial Position
Financial Position 31 DEC 2020 30 JUN 2020 $’000 $’000 Strong Balance Sheet Underwrites Continued Growth ASSETS Cash1 168,204 122,190 Cash + Financial Investments Loans to merchants 4,379 11,921 • Increase in cash from increased customer deposits + Other current assets 31,410 18,278 repayment of cus
Slide 16: Cash Flow Analysis
Cash Flow Analysis H1 FY21 H1 FY20 $’000 $’000 Cash flows from Payments business 53,968 47,279 Operating Cash Flows: Net interest received 1,054 2,840 • Positive cash generation from Payments operation before contribution from Other income received 6,666 649 Banking operation Payments to employees,
Slide 17: Trading Update
TRADING UPDATE 17
Slide 18: Terminal Connectivity Issue
Terminal Connectivity Issue Issue identified on 5 January 2021 Impact of Terminal Connectivity Issue on Transaction Value 70% of Tyro’s merchants were unaffected by the incident Operations back at pre-incident levels 18-year history with no equivalent event Total Connected Terminals - 100% Baseline
Slide 19: Trading Update
Trading Update1 • Challenged start to H2 with terminal connectivity issue Weekly Transaction Value Growth - H2 FY21 • Focus now on assisting merchants impacted • Transaction value growth rates promising • State-based lockdowns continue to impact transaction value 20.0% 17.5% Payments Operation: 17.5
Slide 20: Supplementary Materials
SUPPLEMENTARY MATERIALS 20
Slide 21: Attachment 1 - Terminal Market Share
Attachment 1 - Terminal Market Share Number of terminals by banks + other providers in Australia (‘000) - as at 30 June 2020 (updated for Tyro terminals at 31 December 2020) • 68,338 terminals at 31 Dec 2020 h 16% (H1 CAGR (30 June 2014 — 30 June 2020) FY20: 58,993) • Terminal numbers up 9% in the p
Slide 22: Attachment 2 - Market Share in Growing Total Addressable Market
Attachment 2 - Market Share in Growing Total Addressable Market Annual transaction value of card payments acquired in Australia1 ($ billion) - Tyro’s estimated market share of total card payments acquired in Australia - as at 30 June 2020 as at 31 December 2020 4.0% ~3.0% 3.5% market share 3.5% $660
Slide 23: Attachment - Banking Products
Attachment 3 - Banking Products Digital Banking Deposit Accounts - Gaining Traction Tyro Business Loan - Merchant Cash Advance • Products: • An unsecured merchant cash advance to assist merchants finance working › A fee-free, interest-bearing transaction account capital + investment needs › A term d
Slide 24: Attachment 4 - Liquidity + Capital Adequacy
Attachment 4 - Liquidity + Capital Adequacy 162% Total Capital Ratio • Capital ratio of 143% at 31 December 2020. Ratio decreased $179m from 162% at 30 June 2020 due to strategic investments $166m • Reduction in ratio at 31 December 2020 reflects the increase 145% $165m 143% in risk weighted assets
Slide 25: 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, 22 February 2021. The information in the presentation is given for informational purposes only, is in summary form and does not purport to
Slide 26: 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