Wex Inc. · NYSE:WEX
Wex — Investor Day (June 2023)
28 slides from Wex's investor day presentation, Jun 1, 2023
Slide 1: WEX Benefits Investor Event
WEX Benefits Investor Event June 1, 2023
Slide 2: Forward looking statements
WEX Benefits Investor Event Forward looking statements These materials include forward-looking statements including, but not limited to, statements about management’s plans, goals, and guidance and assumptions with respect to future financial performance of the Company. Any statements in these mater
Slide 3: Agenda
WEX Benefits Investor Event Opening Remarks Steve Elder, SVP, Global Investor Relations Introduction Melissa Smith, Chair & CEO Agenda Benefits Segment Overview & Growth Strategy Lisa Goldkamp, GM & SVP, Benefits Chris Byrd, SVP, Benefits & Government Affairs Benefits Financial Profile & Outlook Jag
Slide 4: WEX Benefits Investor Event
WEX Benefits Investor Event 4
Slide 5: Introduction
Introduction Melissa Smith, Chair & CEO 5
Slide 6: Our Benefits business delivers unique value in the market
WEX Benefits Investor Event Our Benefits business delivers unique value in the market Strategic Fit Large & Fast Positioned to Win Standout Growing Market Financials 6
Slide 7: Simplifying the business of running a business
WEX Benefits Investor Event Simplifying the business of running a business Mobility Corporate Payments Benefits • Access to WEX’s Benefits 500,000+ U.S. customers • Investment for growth >18M vehicles served $73B purchase volume 20M+ SaaS accounts 20M+ SaaS accounts >90% fueling stations 20+ currenc
Slide 8: For nearly a decade, WEX Benefits has been expanding its solutions, distribution and revenue sources
WEX Benefits Investor Event For nearly a decade, we have expanded the breadth of our solutions, distribution, For nearly a decade, and WEX Benefits has been expanding revenue the breadth sources of its solutions, distribution and revenue sources +25%-30% Benefits Revenue ($ millions) $505 $414 $357
Slide 9: Benefits Segment Overview & Growth Strategy
Benefits Segment Overview & Growth Strategy Lisa Goldkamp, GM & SVP, Benefits Chris Byrd, SVP, Benefits & Government Affairs 9
Slide 10: Our product set enables businesses to simplify the delivery of benefits to their employees
WEX Benefits Investor Event Our product set enables businesses to simplify the delivery of benefits to their employees WEX helps employers reduce complexity and manage cost, while providing a range of choices Consumer-Driven Benefits Benefits Administration HSA Custody ➔ Health Savings Account (HSA)
Slide 11: Technology is core to the Benefits offering
WEX Benefits Investor Event Technology is core to the Benefits offering Innovation driving enhanced, market-leading capabilities Pay + Save for Healthcare Key Outcomes • Mobile provisioning and payments • Modern investment capabilities • Reducing friction and cost across Using Benefits HR Admin Supp
Slide 12: WEX supports the consumer throughout the "hire to retire" lifecycle
WEX Benefits Investor Event WEX supports the consumer throughout the “hire to retire” lifecycle Enrolls during open enrollment, using WEX tool to select health Laid off after company plan best suited for needs Gets married - increases downsizing - enrolls in COBRA Hired Obtains HSA HSA contribution
Slide 13: The underlying market continues to have strong fundamentals and favorable trends
WEX Benefits Investor Event The underlying market continues to have strong fundamentals and favorable trends 43M HSA Total HSA Assets Accounts Rising healthcare costs ($ billions) $150 Focus on choice drives need $135 for solutions that address $119 $59 complexity and participant $104 $50 $98 ex
Slide 14: We are positioned to win
WEX Benefits Investor Event We are positioned to win WEX simplifies a Technology Highly flexible Unmatched More roads lead complex benefits is built for support and breadth of to WEX through ecosystem configurability service model offering multi-channel and scale approach 14
Slide 15: Distribution model is a competitive edge
WEX Benefits Investor Event Distribution model is a competitive edge More roads lead to WEX than anywhere else End-Users Customers Channels Solutions Branded Broker / Consultant WEX branded Referral Partners admin & services solutions Direct Powered by WEX Powered technology Financial Institutions P
Slide 16: Benefits Financial Profile & Outlook
Benefits Financial Profile & Outlook Jagtar Narula, CFO 16
Slide 17: The WEX Benefits financial model is driven by accounts, spend, and assets
WEX Benefits Investor Event The WEX Benefits financial model is driven by accounts, spend, and assets Key Metric SaaS Accounts Purchase Volume HSA Cash Asset Balances Customer Participant maintains Participant spends Participant, employer fund Behavior account on the platform money out of account ac
Slide 18: Spotlight: SaaS business model
WEX Benefits Investor Event Spotlight: SaaS business model Efficient multi-prong sales organization 8x + Broad market coverage through both Lifetime Value (LTV) / direct and partner channels Customer Acquisition Cost (CAC) Strong customer satisfaction and NPS scores lead to high retention 95%+
Slide 19: Spotlight: HSA cash balances
WEX Benefits Investor Event Spotlight: HSA cash balances Average HSA Cash Balances ($ billions) 9% market CAGR for HSA deposits Non-WEX Bank WEX Bank as depository gives $3.7 WEX Bank $3.5 WEX greater control and ability for $3.2 $2.3 $3.0 $3.1 $2.1 improved economics vs. traditional $2.8 $2.3 t
Slide 20: Benefits growth record and trajectory
WEX Benefits Investor Event Benefits growth record and trajectory Benefits Revenue Benefits Adjusted Operating Income ($ millions) ($ millions) $505 $134 $414 $104 $357 $96 $302 $78 $186 $45 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Amounts reflect benefits revenue and adjusted operating inc
Slide 21: Well positioned for long-term growth
WEX Benefits Investor Event Well positioned for long-term growth Differentiate on product depth and breadth Outpace strong market growth Growth Drivers New Sales Spend Retention Participant Growth Deliver scale Upsell Growth of HSA Accounts 21
Slide 22: Reiterating FY23 & long-term Benefits guidance
WEX Benefits Investor Event Reiterating FY23 & long-term Benefits guidance 25%-30% FY23 Revenue Growth 15%-20% Long-Term Annual Revenue Growth (excludes the impact of changes in interest rates) 22
Slide 23: Q&A
Q&A All Speakers wex
Slide 24: Our Benefits business delivers unique value in the market
WEX Benefits Investor Event Our Benefits business delivers unique value in the market Strategic Fit Large & Fast Positioned to Win Standout Growing Market Financials 24
Slide 25: Appendix
Appendix wex
Slide 26: Non-GAAP Reconciliation
WEX Benefits Investor Event Non-GAAP Reconciliation The following table reconciles Year ended December 31, (In thousands) 2022 2021 2020 2019 2018 total segment adjusted Segment adjusted operating income (as previously reported) operating income to GAAP Mobility $693,439 $557,083 $383,502 $485,539 $
Slide 27: Benefits Segment Adjusted Operating Income Excluding Brazil
WEX Benefits Investor Event Benefits Segment Adjusted Operating Income Excluding Brazil The following table shows Year ended December 31, Benefits adjusted operating (In thousands) 2022 2021 2020 2019 2018 income as previously reported excluding amounts derived Benefits segment adjusted operating in
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