Slide 1: Fourth Quarter and Full Year 2021 Conference Call
Fourth Quarter and Full Year 2021 Conference Call February 24, 2022
Slide 2: Disclosures
Disclosures Forward-looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncer
Slide 3: Business Summary
Business Summary Mac Schuessler, President and CEO
Slide 4: Agenda
Agenda 01 2021 Highlights and Recent Announcements 02 Strategic Transformation ✓ Imperatives since 2015 ✓ Highlights from Popular announcement ✓ Highlights from Latin America announcements 03 Puerto Rico environment 04 Latin America environment 05 Financial Results 06 2022 Outlook 4
Slide 5: Highlights: 2021 and recent announcements
Highlights: 2021 and recent announcements ✓ Total Revenue $590 million - increased 16% Record Financial ✓ Adjusted EBITDA* $295 million - increased 23% Results ✓ Adjusted EPS* $2.74 - increased 32% ✓ Popular agreements extensions and sale of certain assets Key Strategic Steps ✓ Expansion of key Lati
Slide 6: Strategic transformation: Imperatives since 2015
Strategic transformation: Imperatives since 2015 Invest in & improve service & infrastructure 1 ▪ Rebuild reputation in the region through focus on service and delivery ▪ Design organization and metrics for better execution and relationship management ▪ Invest in and refresh infrastructure, operatio
Slide 7: Strategic transformation: Focus and agility to win
Strategic transformation: Focus and agility to win Transaction Details Strategic Rationale Evertec and Popular have agreed to key contract extensions: ❑ 10-year extension of Merchant Acquiring to 2035 ❑ Re-establishment of long-term relationship with our Transform ▪ Revenue share with Popular larges
Slide 8: Strategic transformation: Key Highlights from Latin America Announcements
Strategic transfomation: Key Highlights from Latin America Announcements ▪ Largest online marketplace in Latin America and owns the leading online payment solution Mercado Pago ▪ Evertec exceeded card issuing projections by over 300% Expanded our relationship ▪ Confidence in Opportunities for future
Slide 9: PR environment: Indicators Improving
PR environment: Indicators Improving The recent influx of federal funds, market conditions, along with stronger fiscal and operational management in PR are positively impacting Economic Indicators … +3.8% Economic 140 122.5 The EAI increased by 3.8% in the 118.0 Activity 120 past year Index (EAI) 0
Slide 10: PR environment: Incremental Federal Funds
PR environment: Incremental Federal Funds For years 2022 and 2023, we are expecting an incremental influx of around $10B annually in federal funds, which represents 14%-15% of PR’s GNP Economic Impact of Package Detail 2021 ($B) 2022 ($B) 2023 ($B) 2022-23 funds Disaster Total: $70.62*B Main sectors
Slide 11: PR environment: Debt Restructuring
PR environment: Debt Restructuring After the recent judicial approval of the PR debt restructuring plan, the total debt has reduced from ~$70B pre-PROMESA to ~$34B PR debt pre-PROMESA and after restructuring* (US$ billions) -51.4% Main benefits from restructuring: 70 Other 2 ▪ Provide macroeconomic
Slide 12: LatAm environment: Opportunities in Large, Underpenetrated Regional Markets
LatAm environment: Opportunities in Large, Underpenetrated Regional Markets GDP Macro trends and drivers: Puerto Rico ▪ Size of most economies in LatAm are at least 2x as Costa Rica large as the Puerto Rico economy Peru ▪ Card penetration in the region is significantly lower than Chile mature market
Slide 13: LatAm Environment: Leveraging Regional Presence for Growth
LatAm Environment: Leveraging Regional Presence for Growth 2015 Today Mexico Dominican Republic Mexico Dominican Republic Puerto Rico Puerto Rico Guatemala Guatemala Costa Rica Costa Rica Panama Panama Colombia Peru* Brazil Acquisition of BBR opens Peru Chile Uruguay 2015 Today LatAm Revenues ~$38M
Slide 14: Financial Summary
Financial Summary Joaquin Castrillo, Chief Financial Officer
Slide 15: Results Q4 and Full-Year 2021
Results Q4 and Full-Year 2021 (#039;s in millions, except per share) Q4 2021 Y-O-Y % 2021 Y-O-Y % Revenue $ 155.2 16% $ 589.8 16% Adjusted EBITDA $ 75.9 19% $ 294.8 23% Adjusted EBITDA margin 48.9% 130 bps 50.0% 290 bps Adjusted Net Income $ 52.6 23% $ 199.7 32% Adjusted EPS $ 0.72 22% $ 2.74 32% ▪ Q4
Slide 16: Merchant Acquiring
Merchant Acquiring (#039;s in millions) Q4 2021 Y-O-Y % 2021 Y-O-Y % Revenue $ 37.2 27% $ 144.0 31% Adjusted EBITDA $ 18.6 28% $ 72.9 34% Adjusted EBITDA margin 50.0% 30 bps 51.3% 110 bps ▪ Q4 revenue growth driven by holiday seasonality comeback, continued effect from Federal stimulus and impact from
Slide 17: Payment Services, PR and Caribbean
Payment Services, PR and Caribbean (#039;s in millions) Q4 2021 Y-O-Y % 2021 Y-O-Y % Revenue $ 41.8 22% $ 155.4 25% Adjusted EBITDA $ 23.7 24% $ 89.9 34% Adjusted EBITDA margin 56.8% 80 bps 57.9% 420 bps ▪ Q4 revenue growth driven by increased transactional revenue from POS processing and ATH Network t
Slide 18: Payment Services, Latin America
Payment Services, Latin America (#039;s in millions) Q4 2021 Y-O-Y % 2021 Y-O-Y % Revenue $ 28.3 29% $ 106.0 25% Adjusted EBITDA $ 11.5 29% $ 42.5 30% Adjusted EBITDA margin 40.7% 10 bps 40.1% 140 bps ▪ Q4 revenue growth driven by client implementations completed earlier in the year and organic growth
Slide 19: Business Solutions
Business Solutions (#039;s in millions) Q4 2021 Y-O-Y % 2021 Y-O-Y % Revenue $ 64.4 6% $ 243.8 4% Adjusted EBITDA $ 30.2 -% $ 116.5 1% Adjusted EBITDA margin 46.9% -320 bps 47.8% -110 bps ▪ Q4 revenue increase primarily driven by a $3.0M hardware and software sales, increase in digital channel volumes,
Slide 20: Corporate and Other
Corporate and Other (#039;s in millions) Q4 2021 Y-O-Y % 2021 Y-O-Y % Adjusted EBITDA $ (8.1) 10% $ (28.0) 4% % of Total Revenues 5.2% (150) bps 4.7% (100) bps ▪ Q4 Corporate and Other Adjusted EBITDA favorable when compared to prior year due to a decrease in certain personnel costs and lower professio
Slide 21: Roll Forward of 2021 Cash Balance
Roll Forward of 2021 Cash Balance ($ in millions) (1) Includes $18 million in restricted cash (2) Includes $20 million in restricted cash (3) Includes short-term borrowing repayments of $2 million, long-term debt repayments of $32 million and $9 million of withholding taxes paid on share-based compe
Slide 22: Debt Summary
Debt Summary (#039;s in millions) 12/31/21 12/31/20 Unrestricted Cash $266.3 $202.6 Total Debt $468.6 $501.1 Term A Loan (2023 Maturity) L+175bps $171.6 $190.0 Term B Loan (2024 Maturity) L+350bps $295.8 $309.5 Revolver $125M (2023 Maturity) L+175bps $— $— Other $1.2 $1.6 Net Debt $202.3 $298.4 Weight
Slide 23: Popular Transaction Impacts
Popular Transaction Impacts Transaction Details Financial Impact ❑ 10-year extension of Merchant Acquiring to 2035 ❑ Revenue share to be accounted as an expense to the MAB ▪ Revenue share with Popular segment reducing margin post-closing Extension of ❑ CPI concession to be retroactively credited to
Slide 24: 2022 Outlook
2022 Outlook* (#039;s in millions, except per share) Low High Total Revenue $591 $600 Adjusted EPS $2.47 $2.56 GAAP EPS - Diluted $1.84 $1.93 Capital Expenditures $60 $60 Assumptions Adjusted EBITDA Margin 44.5% 45.5% Tax rate 13% 14% Share Count used to compute Adjusted EPS 69.6 69.6 *Preliminary 2022
Slide 25: Q&A
Q&A
Slide 26: Non-GAAP Financial Information
Non-GAAP Financial Information The non-GAAP measures referenced in this release material are supplemental measures of the Company’s performance and are not required by, or presented in accordance with, accounting principles generally accepted in the United States of America (“GAAP”). They are not me
Slide 27: Reconciliation of GAAP to Non-GAAP Operating Results
Reconciliation of GAAP to Non-GAAP Operating Results Three months ended December 31, (Dollar amounts in thousands, except share data) 2021 2020 Net income $ 41,188 $ 32,370 Income tax expense 6,088 3,451 Interest expense, net 5,016 5,908 Depreciation and amortization 18,979 17,757 EBITDA 71,271 59,4
Slide 28: Reconciliation of Q4 2021 Segment Non-GAAP Results
Reconciliation of Q4 2021 Segment Non-GAAP Results Three months ended December 31, 2021 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 41,766 $ 28,322 $ 37,157 $ 64,369 $ (
Slide 29: Reconciliation of 2021 Segment Non-GAAP Results
Reconciliation of 2021 Segment Non-GAAP Results Year Ended December 31, 2021 Payment Payment Services - Services - Puerto Rico Latin Merchant Business Corporate ( in thousands) & Caribbean America Acquiring, net Solutions and Other (1) Total Revenues $ 155,392 $ 105,963 $ 143,965 $ 243,807 $ (59,331
Slide 30: Reconciliation of Q4 2020 Segment Non-GAAP Results
Reconciliation of Q4 2020 Segment Non-GAAP Results Three months ended December 31, 2020 Payment Services - Payment Puerto Rico & Services - Merchant Business Corporate and (In thousands) Caribbean Latin America Acquiring, net Solutions Other (1) Total Revenues $ 34,139 $ 21,963 $ 29,257 $ 60,510 $ (
Slide 31: Reconciliation of 2020 Segment Non-GAAP Results
Reconciliation of 2020 Segment Non-GAAP Results Year Ended December 31, 2020 Payment Payment Services - Services - Puerto Rico Latin Merchant Business Corporate (Dollar amounts in thousands) & Caribbean America Acquiring, net Solutions and Other (1) Total Revenues $ 124,771 $ 84,641 $ 109,788 $ 234,
Slide 32: Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share
Outlook Summary and Reconciliation to Non-GAAP Adjusted Earnings per Share 2021 2022 Outlook(1) Actual (Dollar amounts in millions, except share data) Revenues $ 591 to $ 600 $ 590 Earnings per Share (EPS) (GAAP) $ 1.84 to $ 1.93 $ 2.21 Per share adjustment to reconcile GAAP EPS to Non-GAAP Adjusted