Tyro Payments Ltd. · ASX:TYR
Tyro Payments — Investor Day (April 2017)
20 slides from Tyro Payments's investor day presentation, Apr 6, 2017
Slide 1: 2017 Investor Roundtable
Welcome to the 2017 Investor Roundtable 6 April 2017 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 2: Safe Harbor
Safe Harbor This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such risks or uncertainties materialise or if any of the assumptions prove incorrect, Tyro Payments Limited’s (Tyro) products, services, features, performance and results (
Slide 3: Agenda
Agenda 1. Welcome Kerry Roxburgh, Chairman 2. Strategy Gerd Schenkel, Chief Executive Officer 3. 1H Results Review Prav Pala, Chief Financial Officer 4. Q&A Executive Team 3 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 4: Welcome
Welcome Kerry Roxburgh Chairman 4 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 5: Strategy
Strategy Gerd Schenkel Chief Executive Officer 8 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 6: We had a successful half
We had a successful half Progress on many fronts • Continued our growth trajectory • Maintained attractive customer economics • Maintained low risk profile • Invested in future growth 9 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 7: Leadership team renewal
Leadership team renewal Four new members Gerd Schenkel Praveenesh Pala Justin Mitchell Kareem Al-Bassam Natalie Dinsdale CEO Chief Financial Officer Chief Risk Officer Director of Product Director of Marketing Joined Tyro Oct 2016 Joined Tyro 2014 Company Secretary Joined Tyro Jan 2017 Joined Tyro Jan 2
Slide 8: We are building a 'Services Platform' for Australian SMEs
We are building a ‘Services Platform’ for Australian SMEs Technology based and scalable 11 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 9: We operate in three very large markets
We operate in three very large markets Current focus on growing existing product portfolio Sources: RBA: Credit & charge card payments. APRA. RBA: Sub $2M Business Lending. Macquarie research estimate. 12 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 10: We have three competitive advantages
We have three competitive advantages 1. Technology mindset and capability 2. Banking licence 3. Highly integrated product portfolio – within itself and the broader ecosystem 13 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 11: First Half Results
First Half Results Prav Pala Chief Financial Officer 14 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 12: Financial review for the half year ended Dec 2016
Financial review for the half year ended 31 Dec 2016 Profitability Balance Sheet Transaction volume $ 5,253 M Cash and Investments $ 99 M Revenue $ 59 M Total assets $ 142 M Total operating income $ 28 M Total liabilities $ 14 M Total operating income (% of Txn 54 bps Total regulatory capital $ 117 M
Slide 13: Changes since comparative half year
Changes since comparative half year Reinvest for growth Profit movement from 16 HY1 to 17 HY1 ($M) Income growth of $6.6M Expense growth of $10.8M Reinvestments • Expanded workforce by 40% • Business growth including terminals 5 (7) • Premises 2 (4) (0.2) (3) (2) 16 HY1 Acquiring income Investment St
Slide 14: We continued our growth journey
We continued our growth journey Customers (#) Transaction volume ($M) Revenue ($M) +18% +23% +28% Percentage increases as compared to half year ended 31 December 2015 17 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 15: We maintained attractive customer economics
We maintained attractive customer economics Gross margin (bps) Average merchant turnover1 ($ '000p.a.) +3 1 Total transaction volume processed / Average number of merchants trading over the year. 18 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 16: We invested for future growth
We invested for future growth Product delivery spend ($M) Sales & Marketing spend ($M) 88 132 157 186 217 Headcount 39 49 48 61 64 Product delivery comprises total spend on: • Engineering and Test • Operations and Security • Product Management 19 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 17: We maintained a low risk profile
We maintained a low risk profile Acquiring & lending net losses ($k) GRCL $550 $489 $387 $397 $358 $367 103 64 46 42 (1) (6) 41 14 HY1 14 HY2 15 HY1 15 HY2 16 HY1 16 HY2 17 HY1 Acquiring & lending net losses General reserve for credit losses 20 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 18: We maintained a strong capital position
We maintained a strong capital position Total regulatory capital ($M) Total capital adequacy ratio 21 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 19: Q&A Executive Team
Q&A Executive Team 22 Tyro 2017 Investor Roundtable | www.tyro.com
Slide 20: 2017 Investor Roundtable
2017 Investor Roundtable 6 April 2017 Tyro 2017 Investor Roundtable | www.tyro.com