Eml Payments Ltd. · ASX:EML
Eml Payments — FY2020 Earnings Presentation
44 slides from Eml Payments's earnings presentation, Aug 19, 2020
Slide 1: Investor Presentation
19 August 2020 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 Investor Presentation +61 (07) 3557 1100 Level 12 EML Payments Limited (ASX: EML) is pleased to provide investors with the 333 Ann Street following presentation. Brisbane QLD 4000 EML Payments Limited ACN 104 757 904 About EML
Slide 2: FY2020 Financial Results
FY2020 Financial Results 19 August 2020
Slide 3: Important Notice
EML Payments FY2020 Financial Results 02 Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 01 (EML) and is general background information about EML’s activities current as at the date of this presentation. This information is given in summary fo
Slide 4: About Us – EML Snapshot
EML Payments FY2020 Financial Results 03 About Us – EML Snapshot GROUP GDV (FY20) GROUP REVENUE2 (FY20) OPERATE IN EML is an ASX listed (ASX:EML) 28 444 Payments Technology company operating $13.88bn $121.6M 54% 25% COUNTRIES EMPLOYEES proprietary processing platforms that enable Fintech disruption,
Slide 5: Business Update
Business Update =—MI.. Money in Motion
Slide 6: FY20 Highlights
EML Payments FY2020 Financial Results 05 FY20 Highlights — Record underlying EBITDA of $32.5m (excludes — Acquired and commenced integration of Prepaid Financial acquisition costs) up 10% from $29.7m in FY19 Services (Ireland) Limited ('PFS'), which pivots the group to generating the majority of Rev
Slide 7: PFS Acquisition
EML Payments FY2020 Financial Results 06 PFS Acquisition Acquisition Summary Business Summary $264.8 million Upfront enterprise valuation — $157.3 million paid in cash Leading e-Money Attractive BaaS technology — $67.2 million equity consideration: held in voluntary escrow until April company and Ba
Slide 8: PFS Acquisition
EML Payments FY2020 Financial Results 07 PFS Acquisition Banking-as-a-Service Trading Update 43% of GDV — Online / mobile banking — PFS experienced COVID-19 impacts PFS GROSS DEBIT VOLUME BY MONTH and real-time payments to Banking-as-a-Service ('BaaS')and — Issuance of IBANs multi-currency program v
Slide 9: Trading update - GDV Trends
EML Payments FY2020 Financial Results 08 Trading update - GDV Trends Gift & Incentive General Purpose VANs Monthly Gross Debit Volume Reloadable Monthly Gross Debit Volume (July 2018 - June 2020) Monthly Gross Debit Volume (July 2018 - June 2020) FY19 Seasonal (July 2018 - June 2020) trading 43% FY2
Slide 10: Business Development Update
EML Payments FY2020 Financial Results 09 Business Development Update. EML empowers payments for major companies across multiple industries. We are targeting growing sectors Gift & Incentive Disbursements as a Service Fintech and Banking ControlPay as a Service in FINTECH, Rewards and Incentives with
Slide 11: New Business Update
EML Payments FY2020 Financial Results 10 New Business Update Gift & Incentive Fintech and Banking Salary as a Service ControlPay Disbursements as a Service as a Service Devengo provides employers the ability to pay their employees on a flexible basis, as well as Digital Payment Solution Program mana
Slide 12: FY20 Business Update
EML Payments FY2020 Financial Results 11 FY20 Business Update GDV SEGMENT COUNTRIES CUSTOMER INDUSTRY YIELD REVENUE GP% GP/ACCOUNT $13.88bn Malls 62% G&I REVENUE $1.17bn AU EU NA 581bps $68.2M 82.1% $5.44 $121.6M PCP $1.06bn PCP 627bps PCP $66.4M PCP 78.9% Incentive 38% YIELD 88bps GPR Disbursements
Slide 13: FY20 Business Update
EML Payments FY2020 Financial Results 12 FY20 Business Update Gift & Incentive General Purpose Reloadable (GPR) Virtual Account Numbers (VANS) (Including PFS for 1 April to 30 June 2020) 24% GDV Revenue GDV Revenue GDV Revenue $1.17bn $68.2M $4.23bn $41.9M $8.47bn $10.7M $1.06bn (FY19) $66.4M (FY19)
Slide 14: Our Journey
EML Payments FY2020 Financial Results 13 Our Journey — Incentives — Launch of GPR — Launch of GPR in — Launch of GPR in — Launch of largest in Australia UK and Europe North America European mall program — B2B & B2C Cards — Mastercard licence — Launch of — Expand into Poland Mobile Rewards — E xpande
Slide 15: Growth Drivers and Track Record of Growth
EML Payments FY2020 Financial Results Growth Drivers 14 Track Record of Growth BANKING AS A SERVICE — Continued growth in Baas programs driven by increasing fragmentation of the traditional banking sector FINTECH 65 — Partnering with disruptive new technology players across a variety of industries %
Slide 16: Gift and Incentive COVID-19 Impact
EML Payments FY2020 Financial Results 15 Gift and Incentive COVID-19 Impact Mall programs in our Gift & Incentive segment were negatively impacted by mall closures, social distancing and unmanned kiosks leading to lower GDV in March through June. We remain cautious in our outlook for the immediate 1
Slide 17: Salary Packaging Update
EML Payments FY2020 Financial Results 16 Salary Packaging Update Salary Packaging Benefit Accounts Salary Packaging is a specialised prepaid Payroll card for healthcare and 350,000 233k not for profit workers. Contracted to transition BENEFIT 300,000 ACCOUNTS EML is the largest provider of payment s
Slide 18: Strategy Update – Accelerator
Strategy Update – Accelerator
Slide 19: Mission. Vision. Purpose.
EML Payments FY2020 Financial Results 18 Mission. We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. Vision. Purpose. To offer customers Inspiring a feature rich, fully transformative embedded payment
Slide 20: The Pillars of Acceleration
19 The Pillars of Acceleration – How we will ‘Accelerate’ our strategy! Global Technology FinLabs Infrastructure — Enhancement of EML products/technology through partnership/purchase — One global application layer — Target investments in key feature/ — One integration touchpoint functionality EML wa
Slide 21: Acceleration Strategy
EML Payments FY2020 Financial Results 20 Integrate fintech We may invest Use our fintech Partner with solutions, white and / acquire fintech partnerships for disruptive fintechs label and extend our partners distribution feature set Acceleration Strategy Take our enhanced product We will use our VAN
Slide 22: Interchecks is our first FinLabs investment
EML Payments FY2020 Financial Results 21 Interchecks is our first finlabs investment Minority investments in early stage fintech companies that can accelerate our global growth via: — Expanding our range of payment solutions to include non-card Co-Founders: Dylan Massey, Bob Chevlin and Brandon Whit
Slide 23: Fostering innovation and cutting-edge technology
EML Payments FY2020 Financial Results 22 Fostering innovation and cutting-edge technology At FIS, we foster the ideation and development of disruptive digital solutions that empower financial clients and commerce. Our iLabs are designed for idea sharing that shortens time-to-market on new applicatio
Slide 24: We provide mission critical infrastructure to the fintech industry
EML Payments Project Accelerator 23 We provide mission critical infrastructure to the fintech industry. Companies selling insurance digitally or providing data analytics Payments processing, card and software for (re)insurers Sales and trading, analysis developers and subscription and infrastructure
Slide 25: EML.CON Global virtual event
EML Payments FY2020 Financial Results 24 CON GLOBAL Premiere EML Virtual Event Date: 29th October 2020 Speakers will include: Click here to register for EML.CON Partners, Customers, Capital Markets, Schemes, FinLabs, Industry Experts, Global Perspective
Slide 26: Our people and culture sets us apart
EML Payments FY2020 Financial Results 25 Our people and culture sets us apart People are Diversity, Sustainability at the heart inclusion program of EML & talent launched — Over 440 talented people — 50:50 Executive Leadership — Commitment to responsible and across Australia, Europe Team gender repr
Slide 27: EML will eliminate 26 million plastic cards by 2023
EML Payments F¥Y2020 Financial Results HEMLChangeForGood #DemandToBePlasticFree #EcoWayToPay EML will eliminate 26 million plastic cards by 2023. That's 250,000kg or the weight of 56 elephants, elephant &6.elephants 4,400kg 250,000kg
Slide 28: Ethical Business Practices
EML Payments FY2020 Financial Results 27 Ethical Business Environment and Volunteering Philanthropic Practices Sustainability Culture Partnerships Policies and corporate Taking action in the reduction Making a difference Corporate support for - governance to support our of environmental waste in the
Slide 29: Financial Results
FY20 =M@MI.. Financial Results Money in Motion
Slide 30: Financial Overview – Profit & Loss
EML Payments FY2020 Financial Results 29 Financial Overview – Profit & Loss $13.9bn ($’000s) FY2019 FY2020 GROWTH Record Gross Debit Volume, up 54% on prior year GDV 9,030,911 13,875,936 54% driven by GPR, VANs growth and acquisition of PFS TOTAL REVENUE 97,195 121,629 25% 88bps Revenue conversion b
Slide 31: Gross Debit Volume (GDV)
EML Payments FY2020 Financial Results 30 Gross Debit Volume (GDV) GIFT & INCENTIVE COVID-19 impacted the G&I segment in the March to June period, with GDV by Segment (A$m) $1.17bn improving conditions driven by incentive programs in June 2020. 5 Year CAGR $13.9bn Overall Q4FY20 was down 33% compared
Slide 32: FY20 Revenue
EML Payments FY2020 Financial Results 31 Revenue FY20 Revenue Total Revenue (A$m) $121.6m 25% 5 Year CAGR Revenue growth of 25% on PCP despite impacts of 51% COVID-19. PFS was consolidated from 1 April 2020. 19% 34% 85% Generated from recurring revenue streams 13% $103.6m from recurring revenue stre
Slide 33: Gross Profit Margins
EML Payments FY2020 Financial Results 32 Gross Profit Margins GROSS PROFIT MARGIN Gross Profit Margins Gross Profit 73.0% down on FY19 (75.1%) 18% G&I EXCLUDING PFS GROSS PROFIT MARGIN VANs 82.1% up on FY19 (75.1%) 10% GPR PFS GP % 8% Group Gross Profit Margins down in FY20 due to: — COVID-19 impact
Slide 34: Overhead Expenditure & Non-Recurring Cost Analysis
EML Payments FY2020 Financial Results 33 Overhead Expenditure & Non-Recurring Cost Analysis CASH OVERHEADS Group Cash Overheads increased in FY20 FY21 ESTIMATED CASH OVERHEADS $56.2M FY19: $43.3M — Cash overheads increased $12.9m (29.8%) over PCP, of which $10.8m (83.7%) relates to the business acqu
Slide 35: Income Statement
EML Payments FY2020 Financial Results 34 Income Statement ($’000s) FY2019 FY2020 GROWTH $24.0m 17% Record Group NPATA GDV 9,030,911 13,875,936 54% TOTAL REVENUE 97,195 121,629 25% Other income of $3.1 million mostly relates to a cash FX gain on unwinding Revenue conversion bps 108ps 88 (20%) forward
Slide 36: Balance Sheet
Mel to roll figures EML Payments FY2020 Financial Results 35 Balance Sheet Cash on hand of $118.4m, with no secured CARDHOLDER ASSETS/ CORPORATE debt. Underlying Operating Cash Flow ($’000s) FY2019 FY2020 GROWTH LIABILITIES BALANCE SHEET of $35.8m converted at 110% of EBITDA Cash and cash equivalent
Slide 37: Financial Overview – Cash Flow
EML Payments FY2020 Financial Results 36 Financial Overview – Cash Flow FY20 Underlying Cash Flow Movements CASH & CASH EQUIVALENTS 40,000 Acquisition Costs $15.8m FY20 Underlying CF $35.8m $118.4m 258% Cash fx gain on 30,000 acq hedges Cash & Cash equivalents increased $85.3m from 30 June 2019 $3.0
Slide 38: Financial Outlook
EML Payments FY2020 Financial Results 37 Financial Outlook Guidance expected to resume in Q3FY21 Pricing & Cost Base Guidance suspended due to significant continuing uncertainties Program pricing and therefore segment yield and Gross Profit as to the impact of COVID-19 in our Gift & Incentive progra
Slide 39: Q&A
Q&A =M@MI.. Money in Motion
Slide 40: Key Data
Key Data =MI.. Money in Motion
Slide 41: Key Data – 3 Years
EML Payments FY2020 Financial Results 40 Key Data – 3 Years Key Metrics ($’000s) H1 2018 H2 2018 FY2018 H1 2019 H2 2019 FY2019 H1 2020 H2 2020 FY2020 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths 6 mnths 12 mnths Headcount (closing) 184 182 184 236 275 275 272 450 450 Average Headcount for t
Slide 42: Key Data - FY18-FY20
EML Payments FY2020 Financial Results 41 Key Data - FY18-FY20 Key Financials ($’000s) H1 2018 H2 2018 FY2018 H1 2019 H2 2019 FY2019 H1 2020 H2 2020 FY2020 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths Revenue (includes interest income) $33,908 $37,112 $71,020 $47,194 $50,001 $
Slide 43: Statutory Earnings Reconciliation
EML Payments FY2020 Financial Results 42 Statutory Earnings Reconciliation ACQUISITION RELATED ADJUSTMENTS NON-OPERATING ONE-OFF Share Based Impairment Non Cash Unrealised FX Gain Payments $3.6m Exit of UAE Amoritisation Cash FX gain on $5.2m $0.8m of AASB3 Fair Cash Flow hedge Value Bond for acquis
Slide 44: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com