Eml Payments Ltd. · ASX:EML
Eml Payments — Shareholder Meeting (October 2020)
42 slides from Eml Payments's shareholder meeting presentation, Oct 30, 2020
Slide 1: Annual General Meeting Presentations
30 October 2020 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 For personal use only ANNUAL GENERAL MEETING PRESENTATIONS EML PAYMENTS LIMITED (ASX: EML) (“EML”) provides the attached presentations of the Chairman and Group Chief Executive Officer, which will be delivered today at the EML
Slide 2: Chairman's Address: Welcome and Introduction
EML ANNUAL GENERAL MEETING - 30 OCTOBER 2020 CHAIRMAN’S ADDRESS SLIDE: WELCOME Welcome and Introduction For personal use only Good morning ladies and gentlemen. My name is Peter Martin and it’s my pleasure as Chairman to welcome you to the 2020 virtual Annual General meeting of EML Payments Limited.
Slide 3: Board of directors and meeting agenda
• David Liddy AM, Independent Non-executive Director and Chair of the People and Remuneration Committee. • Tony Adcock, Independent Non-Executive Director and Chair of the Audit and Risk Committee. • Melanie Wilson, Independent Non-Executive director and Chair of the Investment Committee. For person
Slide 4: Chairman's Address
SLIDE: CHAIRMAN’S ADDRESS I turn now to my Chairman’s address in which I’d like to say a few short words about: • The year that we have had. For personal use only • The company’s longer term strategy and business focus; and • How our people have adapted to changed circumstances. The Covid-19 pandemi
Slide 5: Thank you
Thank you On behalf of the Board, I’d like to say thank you to the whole EML team. EML has a very strong “People” Culture and that has been shown in the outstanding commitment of all existing and new staff, the majority of whom are now working remotely. Finally, I’d like to thank the Board who’ve on
Slide 6: CEO's Address: CEO Presentation
EML ANNUAL GENERAL MEETING - 30 OCTOBER 2020 MANAGING DIRECTOR & GROUP CHIEF EXECUTIVE OFFICER’S ADDRESS SLIDE: CEO PRESENTATION Good morning and thanks for attending our 2020 Annual General Meeting. For personal use only My name is Tom Cregan, Group CEO and Managing Director, and I look forward to
Slide 7: Business growth and our journey
volumes of almost $14 billion. This is the first point I’d like to make today. In 2012 we had a business in Australia, with a handful of customers and with gross debit volume of $60m a year and revenue of $3m a year, and a constant question from investors For personal use only was “where is your gro
Slide 8: Market runway and solution suite
of $180m, and market shares in the US, UK and Europe of sub 5%, we have an incredible runway of growth ahead of us, as do our competitors. It’s a rising tide lifts all boats analogy versus a binary analogy where there is one winner and multiple losers. As a result, we don’t focus on competitors, but
Slide 9: Program growth and cohorts
with it. These programs grow over many years, and whilst programs scale and grow at varying levels, the point is that as they scale, our revenues scale. It’s unlikely we would launch a program in a given year that becomes a “needle mover” in For personal use only terms of volume, unless it’s an exis
Slide 10: Track record of growth
post-launch as those programs expand – we’ve seen that before with Gaming and Salary Packaging – and it will continue to be the case going forward. We have mentioned on a number of occasions that whilst we have signed a number of BNPL providers, this is a segment quickly becoming disaggregated and m
Slide 11: Q1 Trading Update
SLIDE: Q1 TRADING UPDATE We’ve got our trading update for the first quarter of FY21. This information was released to the market on 21 October. GDV was 51% up on the prior period and we’re showing the data relative to Q4 of FY20, For personal use only which was up 20% on that Covid-impacted quarter.
Slide 12: Guidance and Project Accelerator
hence our resumption of guidance in February 2021. SLIDE: PROJECT ACCELERATOR Finishing up here we have communicated to the market that our strategic focus is Project Accelerator. This is a multi-year program focused on 3 things: For personal use only • Implementing changes to our technology platfor
Slide 13: EMLCON and building the EML global brand
SLIDE: EMLCON EMLCON which I’ve referred to already. It was a great event with over 750 people logging in and it just gets better every year. My thanks to Richard Anderson who heads up our global marketing function, along with Wade, Matt and everyone at Prodigy+ who have made this event possible. Fo
Slide 14: EML Change for Good
SLIDE: EML CHANGE FOR GOOD • Under our Change for Good strategy, we have committed to replacing tens of millions of plastic gift cards over the coming few years through a move to digital cards and transitioning to more environmentally friendly card types, and, For personal use only SLIDE: ETHICAL BU
Slide 15: For personal use only
For personal use only November 2020
Slide 16: Annual General Meeting 2020: Welcome
Annual General Meeting 2020 For personal use only Welcome. –B
Slide 17: Important Notice
Annual General Meeting 2020 For personal use only Important Notice The presentations made at today’s AGM contain information of a general nature, including general background information about EML’s activities current as at the date of the AGM. This information is given in summary form and does not
Slide 18: Board of Directors
Annual General Meeting 2020 Board of Directors For personal use only Peter Martin. Non-Executive Chairman Dr Kirstin Ferguson. David Liddy AM. Tony Adcock. Independent Non-Executive Independent Non-executive Independent Non-Executive Director Director and Chair of the People Director and Chair of th
Slide 19: Agenda
Annual General Meeting 2020 For personal use only 01 Chairmans Address Agenda. 02 03 CEO Presentation Resolutions 04 Q&A –E
Slide 20: Using the online platform
Annual General Meeting 2020 Using the online platform For personal use only Download the Virtual Meeting online guide at emlpayments.com/investors/annual-general-meeting/ Help number/s 1300 554 474 If you are calling from Australia +61 1300 554 474 If you are calling from outside Australia –F
Slide 21: Chairman's Address
Annual General Meeting 2020 For personal use only Chairman's Address Peter Martin. Chairman, Non-Executive Director –G
Slide 22: CEO Presentation
Annual General Meeting 2020 For personal use only CEO Presentation Tom Cregan. Managing Director and Group CEO –1
Slide 23: Mission, Vision, Purpose
EML Payments Investor Briefing & FY21 Q1 Update For personal use only 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 tr
Slide 24: About Us – EML Snapshot
EML Payments Investor Briefing & FY21 Q1 Update About Us – EML Snapshot For personal use only GROUP GDV (FY20) GROUP REVENUE2 (FY20) OPERATE IN EML is an ASX listed (ASX:EML) 28 450 Payments Technology company operating $13.88bn $121.6M 54% 25% COUNTRIES EMPLOYEES proprietary processing platforms th
Slide 25: Our Journey
EML Payments Investor Briefing & FY21 Q1 Update Our Journey Launch of GPR in North America + Launch of Mobile Rewards For personal use only Incentives Launch of GPR in + Expansion into Scandinavia Launch of largest + B2B & B2C Cards Launch of GPR UK and Europe in Australia European mall + Mastercard
Slide 26: EML operates in a Trillion dollar industry
EML Payments Investor Briefing & FY21 Q1 Update EML operates in a Trillion dollar industry For personal use only Global: number of debit and prepaid cards in market = 799 million (Source: Nilsson Report February 2020) Global: United Kingdom & Europe e-commerce sales by 2023 - $6.5 Trillion Prepaid M
Slide 27: Solution Suite
EML Payments Investor Briefing & FY21 Q1 Update Solution Suite For personal use only API EMLConnect – API Interface and Sandbox All Analytics and Insights Platform PROGRAM Cards Mgt KYC & KYB Licensing / Bank Agreements Fraud Mgt Regulatory & Compliance MANAGEMENT: (beyond processing) Dispute Mgt PC
Slide 28: Business Model – Cohort Analysis
EML Payments Investor Briefing & FY21 Q1 Update Business Model – Cohort Analysis For personal use only Distribution as a Service Customer Cohort – Half Year This gaming industry customer 60-72 34% CAGR uses our cards to distribute funds for 6 years to their customers. The programs 48-60 Annualised l
Slide 29: Business Model – Cohort Analysis: GDV and sales pipeline
EML Payments Investor Briefing & FY21 Q1 Update Business Model – Cohort Analysis For personal use only GDV – EML SALES PIPELINE GDV 2020 Annualised >$12B GDV 2020 99.9 % 2019 $17-20B 2018 +$5B 2017 2019 of clients Projected are retained year 3-4 GDV 2016 through this 3 year period 2015 2018 2014 201
Slide 30: Track Record of Growth
EML Payments Investor Briefing & FY21 Q1 Update Track Record of Growth GPR GDV G&I GDV For personal use only January – September 2020 January – September 2020 65 FY21 FY21 % 800 100 6 YR EBITDA CAGR VANS GDV January – September 2020 FY21 800 FY15 FY16 FY17 FY18 FY19 FY20 GDV $0.5B $1.0bn $4.4bn $6.8
Slide 31: Business Model - Barriers to Entry
EML Payments Investor Briefing & FY21 Q1 Update Business Model - Barriers to Entry For personal use only End to end prepaid corporate End to End payment processing platform (card issuing, transaction 4000 0000 0000 0000 VALID 12/20 THRU processing, fraud control, BILL R BAILEY SALARY PACKAGING settl
Slide 32: Segment Analysis
EML Payments Investor Briefing & FY21 Q1 Update Segment Analysis For personal use only Gift & Incentive (G&I) 725 Use Cases Growth Thematics 581 REVENUE GP% YIELD — Mall Gift Cards — Physical incentive gift card 82% 77% business transitioning to digital — Employer incentives GDV $68.2M 82.1% 581bps
Slide 33: Q1 Trading Update
EML Payments Investor Briefing & FY21 Q1 Update Q1 Trading Update Strong GPR growth and improved trading conditions in G&I drove a record first quarter For personal use only GDV: $4.85bn Record Q1 EBITDA up 215% on PCP PCP Q1FY20 $3.21bn ↑51% Historically, Q1 is the weakest Q1 FY21 Bridge of EBITDA
Slide 34: Q1 Trading Update: segment level
EML Payments Investor Briefing & FY21 Q1 Update Q1 Trading Update For personal use only Gift & Incentive (G&I) GDV: 11% reduction in GDV relative to FY20 Q1 due to GDV: 41% growth from FY20 Q4. Covid impact on malls. Yield: slight improvement on Gift & Incentive volumes — GDV recovered in Q1 (up 41%
Slide 35: Project Accelerator
EML Payments Investor Briefing & FY21 Q1 Update Project Accelerator For personal use only Technology Products Investment Single global integration Leverage expanded product Internal investment in touchpoint suite to drive incements technology and platform revenue for EML and partners $10-15m over 20
Slide 36: Project Accelerator: Achieving Technical Parity and Beyond
EML Payments Investor Briefing & FY21 Q1 Update Project Accelerator Achieving Technical Parity For personal use only and Beyond Key driver: Key driver: — Simplifying payments; empowering people — One connected no code API platform Product enabling low touch financial integrations Strategy What: and
Slide 37: EML.CON Global virtual event
EML Payments Investor Briefing & FY21 Q1 Update For personal use only CON GLO BAL Premiere EML Virtual Event Date: 29th October 2020 Click here to register for EML.CON Speakers will include: Partners, Customers, Capital Markets, Schemes, FinLabs, Industry Experts, Global Perspective – 16
Slide 38: Building the EML Global Brand
EML Payments Investor Briefing & FY21 Q1 Update Building the EML Global Brand For personal use only Press releases have generated 2,814 stories, featured in Forbes, Wall Street Journal, Financial Time, Bloomberg, Sky news, and the Times Estimated global news impressions reached 10,804,177,808. 4775
Slide 39: Our people and culture sets us apart
EML Payments Investor Briefing & FY21 Q1 Update Our people and culture sets us apart For personal use only People are at Diversity, Inclusion Sustainability the heart of EML & Talent program launched 450 talented people 50:50 Executive Leadership Team Commitment to responsible and across Australia.
Slide 40: For personal use only
EML Payments Investor Briefing & FY21 Q1 Update For personal use only – 19
Slide 41: Ethical Business, Environment, Volunteering, Philanthropic Partnerships
EML Payments Investor Briefing & FY21 Q1 Update For personal use only 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 o
Slide 42: Thank you
For personal use only Thank you.