CPI Card Group Inc. · NASDAQ:PMTS
CPI Card — Investor Presentation (March 2016)
19 slides from CPI Card's investor presentation, March 2016
Slide 1: March 2016
cpi card group: March 2016
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended and “forward-looking information” within the meaning of Canadian securiti
Slide 3: CPI is a North American Leader in Payment Card Solutions
CPI is a North American Leader in Payment Card Solutions Market Leadership Attractive Financial Profile #1 Market Position $374 million & 29% CAGR(1) in the Net Sales U.S. Prepaid Debit Card market FY2015 #1 Market Position $96 million & 52% CAGR(1) in the highly attractive Adjusted EBITDA U.S. Smal
Slide 4: CPI Serves a Large and Growing Market
CPI Serves a Large and Growing Market Increasing Participation Large and Growing of Card Payments Addressable Market U.S. Payment Transactions U.S. Card Production Volume ~38% ~69% 1.4BN ~4% Card-Based in Card-Based in 2019E ‘14-’19E CAGR 2005 2018E CPI is at the Center of Powerful Long-term Trends
Slide 5: Comprehensive Card Solutions and Services
Comprehensive Card Solutions and Services EMV Financial Non-EMV Card Data Instant Card Tamper-Evident Payment Cards Payment Cards Personalization Issuance Systems Security Packaging Solutions • Feature a chip that • Utilize magnetic • Encoding information • In branch financial • Solutions designed i
Slide 6: Key Investment Highlights
Key Investment Highlights Leading Market Positions Long-term, Trusted Customer Relationships Well-Positioned for EMV Conversion in the United States Comprehensive End-to-End Suite of Offerings Multiple Drivers of Growth Attractive Financial Model 5
Slide 7: Leading Industry Positions / Long-Term, Trusted Customer Relationships
Leading Industry Positions / Long-Term, Trusted Customer Relationships Industry Experience and Know-How A Market Leader in North America with over 20 Years of Experience #1 Market U.S. Prepaid Debit Card Position market Long-Term, Trusted Customer Relationships Average Tenure With Top 5 Customer
Slide 8: U.S. EMV Conversion
U.S. EMV Conversion Drivers of EMV Conversion Card Volume – U.S. Market(1) (in millions) CAGR 1,360 1,393 1,423 4% 1,249 1,305 1,150 (15%) 31% 30% 29% 41% Enhanced Payment 58% Security 83% 39% 69% 70% 71% 59% 42% 17% 2014 2015E 2016E 2017E 2018E 2019E Global Interoperability of the Acceptance Networ
Slide 9: Highly Visible and Recurring Demand
Highly Visible and Recurring Demand 2014 Total Annual Card Issuance Detail(1) (% of total cards issued) Existing Card Replacement Significant annual recurring 12% card demand 16% 53% Vast majority of cards issued annually replace existing cards 19% Expiration (53%) Card life shorter than Lost / Stol
Slide 10: Well Positioned for Long-Term Growth and Expansion
Well Positioned for Long-Term Growth and Expansion Leverage Existing Expand to New Customers Customer Base and Offerings Selectively Pursue Expand Strategic Innovate Reach in Acquisitions Further and Enhance Card Market Penetrate Suite of Grow with Existing Solutions Existing Customer Customers Base
Slide 11: Dual-Interface Growth Beyond Initial EMV Conversion
Dual-Interface Growth Beyond Initial EMV Conversion Momentum of Dual-Interface Dual-Interface EMV ASP of $2.00 EMV cards issued in the U.S. to date primarily have been Contact EMV cards Contact EMV Dual-Interface EMV card issuance ASP of $1.00 growing globally: Magnetic Stripe ASP of $0.20 Dual-Inte
Slide 12: Substantial Cross-Selling Opportunities
Substantial Cross-Selling Opportunities Comprehensive End-to-End Solutions Long-term, Trusted Customer Relationships EMV Financial Payment Cards Non-EMV Financial Payment Cards and Retail Gift Cards Large Issuers Instant Card Issuance Systems Card Data Personalization Tamper-Evident Security Small I
Slide 13: Continuous Innovation and Product Enhancement
Continuous Innovation and Product Enhancement Broad Range of Innovative Payment Solutions Tamper-Evident Packaging Card@Once® Instant Issuance Innovative products protect CPI’s customers’ Patented technology allows branches to cards from fraud prior to sale instantly issue fully personalized debit c
Slide 14: Acquisitions Have Added Growth and Strengthened Market Positions
Acquisitions Have Added Growth and Strengthened Market Positions Acquisition Rationale Delivered Enhance Existing 2014 End-to-End solutions • Extended 2012 personalization Strengthen Market capabilities in • Expanded Position secure Small Issuer 2010 capabilities market including Instant Issuance St
Slide 15: Attractive Financial Profile
Attractive Financial Profile • High revenue visibility with strong industry trends Strong Growth Profile • Net sales CAGR of 29% (FY2012 – FY2015) • Adjusted EBITDA CAGR of 52% (FY2012 – FY2015) • Scale and efficiency further enhanced by continued top line growth Significant Operating • Adjusted EBI
Slide 16: Strong Historical Performance
Strong Historical Performance Net Sales Adjusted EBITDA Adjusted Net Income ($ in millions) ($ in millions) $96 ($ in millions) $47 $374 $261 $242 $54 $196 $184 $23 $159 $38 $101 $31 $99 26% $13 20% 21% 17% $10 $133 $95 $102 $85 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 Services Pr
Slide 17: Quarterly Financial Highlights
Quarterly Financial Highlights Quarterly Revenue $ in millions 2014A 2015A $108 $88 $96 $94 $77 $77 $53 $43 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 YoY 82% 80% 39% 6% growth Quarterly Adjusted EBITDA $ in millions 2014A 2015A $33 $25 $20 $22 $18 $17 $10 $5 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15
Slide 18: Appendix
Appendix cpicard group: | 17
Slide 19: Non-GAAP Adjustments
Non-GAAP Adjustments ($ in millions) Year Ended Dec 31, Q1 Q2 Q3 Q4 YE Dec 31, Q1 Q2 Q3 Q4 YE Dec 31, 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 Net Income from Continuing Operations $8.7 $11.2 $0.5 $3.1 $6.8 $5.6 $16.0 $6.0 $12.2 $14.8 ($1.6) $31.3 Depreciation and Amortization 10.