Slide 1: Results for the year ended 31 March 2024
Results for the year ended 31 March 2024 Highly confidential
Slide 2: Agenda
Open Banking Agenda 2 1 Overview 2 Financial review 3 Strategy update 4 Business review 5 Outlook 6 Q&A
Slide 3: FY24 Overview
Open Banking 3 FY24 Overview 1 2 Robust performance underpinning Excellent progress in parcels and our confidence in current year digital payments Delivered £81.3m of underlying EBITDA and made Good momentum in our key growth areas of card further progress towards delivering £100m processing, Open B
Slide 4: Robust financial performance
Robust Open Banking 4 financial performance FY234 FY24 DIVISIONAL HIGHLIGHTS SHOPPING E-COMMERCE Underlying EBITDA1 £61.3m +32.6% £81.3m FY23 FY24 FY23 FY24 £62.0m +3.9% £64.4m £7.3m +61.6% £11.8m net revenue net revenue net revenue net revenue Underlying +21.5% PBT2 £50.8m £61.7m PAYMENTS AND BANKI
Slide 5: Enhancing shareholder returns and efficient capital structure
Open Banking 5 Enhancing shareholder returns and maintaining an efficient capital structure Launch of share buyback programme 1 3-year buyback programme, commencing with at least £20m over next 12 months Potential to increase in years 2 and 3 depending on business performance, market 2 conditions, c
Slide 6: Financial review
Financial review Highly confidential
Slide 7: Robust financial performance
Robust financial performance 7 7 Year ended 31 March 2024 2024 20236 £m £m Change Revenue 306.4 167.7 82.7% Net revenue1 181.0 128.9 40.4% See slide 8 Underlying EBITDA2 81.3 61.3 32.6% Underlying profit before tax3 61.7 50.8 21.5% See slide 9 Adjusting items4 (13.5) (8.2) 64.6% Profit before tax 48
Slide 8: Net revenue growth in all divisions
3.3% net Co ntrevenue growth ind ivis PayPoint Segment 8 inue d ne t re ve nue g ro w t h in all io ns 8 Year ended 31 March 2024 2024 2023 Change Change £m £m £m % Shopping 64.4 62.0 2.4 3.9% - Service fees 19.7 17.9 - Card payments 32.7 31.8 - ATMs & Counter Cash 8.8 9.4 - Other 3.2 2.9 E-commerce
Slide 9: Group PBT vs. previous year
9 Group 2 .1 % inc PBT re as e inview PBT vs. previous year 9 £65m £60m (£2.7m) £10.7m £4.5m £55m (£3.4m) £2.4m (£0.6m) £61.7m £50m £2.6m £55.0m £53.2m £5.6m £50.8m £51.0m £45m 2 £42.6m £40m Reported PBT Exceptional items Adjusting items Group Underlying Net Revenue Net Revenue Net Revenue PayPoint
Slide 10: Cost base to support growth
Cost base tore assupport e s f ro m inve s tgrowth 10 Co s t inc me nt in ke y are as t o d rive re ve nue s 10 £m 125 115 105 £37.2m 95 £119.3m 85 £1.0m (£1.1m) £2.4m £0.6m (£1.5m) £1.6m £1.0m 75 £78.1m £79.7m £80.7m 65 Reported total Asset leasing Investment in Sales Investment in people Financing
Slide 11: Strong cash generation of £57.9m
Strong S t ro ng c as h cash g e ne rat io ngeneration of £57.9m 11 o f £ 2 8 .3 millio n 11 Year ended 31 March 2024 2023 Change £m £m £m Profit before tax 48.2 42.6 5.6 Non cash exceptional items 0.2 1.3 (1.1) Depreciation and amortisation 20.7 10.5 10.2 Share based payments / other 0.6 2.4 (1.8)
Slide 12: Strengthened balance sheet, net debt reduced
Balance S t re ng t he ne d sheet 12 b alanc e s he e t , ne t d e b t re d uc e d b y £ 4 .5 m 12 Mar Mar Change 2024 2023 £m £m £m Goodwill 117.3 117.3 - Other intangible assets 67.1 75.3 (8.2) Property, plant & equipment 33.3 29.3 4.0 Strategic investments and acquisitions (OBConnect/Optus) 4.0 4
Slide 13: Financing and Dividend
Dividend Financ ing & Dividand Financing 13 e nd 13 Dividend declared Net Corporate debt • 19.2p, an increase of 3.2% vs the final dividend declared on of 18.6p per • Net corporate debt was £67.5m and has decreased by £4.9m from the previous share, consistent with progressive dividend policy year. •
Slide 14: Strategy update
Strategy update Highly confidential
Slide 15: Progress on delivering £100m EBITDA by end of FY26
Open Banking 15 Progress on delivering £100m EBITDA by end of FY26 Key building blocks to driving new opportunities and sustained growth 1 Parcels and Network Expansion 2 Card processing and major partnership expansion with Lloyds Bank 3 Open Banking and Digital Payments 4 Love2shop and Park Christm
Slide 16: Parcels and network expansion
Parcels Open Banking 16 and network expansion Landmark year for Collect+, with record parcel transactions, net revenue contribution and major 1 partnerships secured to sustain positive momentum on our journey to a 250m+ parcel transaction network: Record year for parcels Journey to 250m+ parcel netw
Slide 17: Card processing and major partnership with Lloyds Bank
Open Banking 17 Card processing and major partnership with Lloyds Bank Positive momentum in cards business, with strengthened proposition and pricing governance, further site 2 growth and new partnership with Lloyds Bank announced: Positive progress in FY24 Lloyds Bank partnership Site growth YOY In
Slide 18: Open Banking and Digital Payments
Open and Banking 18 Open Banking Digital Payments Multichannel payments platform (MultiPay), supporting integrated payments across Open Banking, direct debit, 3 cards and cash: Open Banking MultiPay • 25 clients live for our Open Banking services, including • Record year of new business the Departme
Slide 19: Love2shop and Park Christmas Savings
Open Banking 19 Love2shop and Park Christmas Savings 4 Significant market opportunity for Love2shop division, delivering growth through opening up new channels and partnerships and leveraging MBL platform capability: Delivering growth • Partnerships – expanding reach of Love2shop rewards, engagement
Slide 20: Access to Cash and Local Banking
Access Open to CashBanking 20 and Local Banking Ambition to build Community Cash Access and Banking Network for consumers & SMEs, leveraging our 5 extensive retailer partner network across the UK: Community Cash Access and Banking Network • Key community service delivered through PayPoint retailer p
Slide 21: Community services for retailer partners
Open Banking 21 Community services for retailer partners Unparalleled portfolio of scaled community services for retailer partners, tailored to their business and delivered via 6 our leading technology platform, with further services in development: Parcels Cash Access PayPoint Connect/FMCG Must-hav
Slide 22: Business review
Business review P| PayPoint Group
Slide 23: Shopping: positive performance
Shopping: S ho p p ing Divis io npositive performance 23 23 Shopping Division How we deliver FY23 FY24 Retail Services PayPoint One/Mini, Counter Cash, FMCG, ATMs, Business £62.0m £64.4m Finance, Home Delivery net +3.9% net Card payments revenue revenue Handepay/Merchant Rentals, PayPoint & RSM 2000
Slide 24: Shopping Division: highlights and emerging opportunities
Community services for S MEretailer p ro p o s it io n partners 24 Enha nc ing o ur re t a ile r & 24 Shopping Division Highlights Emerging opportunities Service fee net revenue increased by 10.1% to £19.7million, reflecting growth in the number of revenue- FMCG generating PayPoint One/Mini sites to
Slide 25: E-commerce: strong performance
E-commerce: E- Co mme rc e Divis io nstrong performance 25 25 E-Commerce Division FY23 FY24 How we deliver Consumer pick up, drop off and send £7.3m +61.6% £11.8m No.1 carrier-agnostic Out Of Home (OOH) network, net revenue net revenue with best-in-class technology and consumer experience Leadership
Slide 26: E-commerce Division: highlights and emerging opportunities
ParcelsEnha and Network o ur re t a ile r &Expansion 26 nc ing S ME p ro p o s it io n 26 E-commerce Division Highlights Emerging opportunities Record year for Collect+ as parcel transactions grew Expanded carrier strongly by 77.5% to 100.1 million (FY23: 56.4 million), relationships including regul
Slide 27: Payments & Banking: underlying digital growth
Payments Pa yme nt s & Ba& Banking: underlying digital growth 27 nking Divis io n 27 How we deliver Payments & Banking Division FY23 FY24 Digital • Open Banking and MultiPay digital payments platform Cash through to digital -4.8% £56.2m £53.5m • Gifting, gaming and Neobanks Cash • Bill payments and
Slide 28: Payments & Banking: MultiPay continued growth
Continued Enha ncMultiPay ing o ur re t a ile r growth 28 & S ME p ro p o s it io n 28 Payments & Banking Division Highlights Emerging opportunities Continued growth through our MultiPay platform, with New business growth underlying net revenue increasing by 29.3% to £5.3 1 build a more systematic a
Slide 29: Love2shop: positive full year contribution
Love2shop: Pa yme nt s & Ba nkingpositive full year contribution 29 Divis io n 29 How we deliver Love2shop Division FY23 FY24 Love2shop • The UK’s leading digital platform for employee £3.4m* £51.3m and customer rewards NM net net Park Christmas Savings revenue revenue • The UK’s biggest Christmas S
Slide 30: Park Christmas Savings return to growth
Park Christmas Savings return to growth 30 30 Love2shop Division Highlights Emerging opportunities Park Christmas Savings returned to growth, delivering Love2shop channel and £162.6 million of billings for the Christmas 2023 season, partnership expansion an increase of 1.2% versus the prior year (Ch
Slide 31: Outlook
Outlook P| PayPoint Group
Slide 32: Outlook
Outlook 32 Out lo o k 32 The streamlining of our organisational structure and delivery of our FY24 financial performance are important 1 building blocks to achieving our financial targets, including the delivery of £100 million EBITDA by the end of FY26 In the current year, consumer behaviour across
Slide 33: Q&A
Q&A 33 Q&A 33 Q&A Results for the year ended 31 March 2024
Slide 34: Appendix
Appendix P | PayPoint Group
Slide 35: Simplified overview of the business
Open Banking 35 Simplified overview of the business Multichannel payments platform and the delivery of community services through our retailer & SME networks Payments Network & Services Device Card Service Fee payments Digital Cash payments Love2shop vouchers, Open Banking rewards and Parcels Cash P
Slide 36: Investment case
Investment case 36 Ye ar o n ye ar vie w ac ro s s d ivis io ns and s ub - d ivis io ns 36 Multichannel payments platform and the delivery of community PayPoint Group services through our retailer & SME networks 1 Clear path to delivering £100m EBITDA by end of FY26 2 Leading multichannel payments p
Slide 37: Business division mapping
Business Bus ine s s d ivis io ndivision mapping 37 map p ing 37 Division Sub-division Lower level PayPoint One/EPoS Retail Services Counter Cash/ATMs Handepay/Merchant Rentals card payments Shopping and leasing Card payments PayPoint card payments RSM 2000 card payments E-Commerce E-Commerce Collec
Slide 38: Year on year view across divisions and sub-divisions
YOY Ye ar o n view ye ar vie w across divisions and sub-divisions 38 ac ro s s d ivis io ns and s ub - d ivis io ns 38 Net revenue Division Sub-division FY24 FY23 Retail Services £31.7m £30.2m Shopping Card payments £32.7m £31.8m E-Commerce E-Commerce £11.8m £7.3m Digital £13.8m £15.8m Payments & Ba
Slide 39: Adjusting items
Adjusting Financ ing & Divid eitems 39 nd 39 Year ended 31 March 2024 2024 2023 £m £m Exceptional items 5.2 5.6 - Legal fees 2.1 - Restructuring costs 2.0 - Refinancing costs 1.1 0.3 - Acquisition costs (Love2shop) - 4.1 - Impairment loss on associate (Snappy Shopper) - 1.2 Adjusting items 8.3 2.6 -