Slide 1: FY2017 Financial Results
FY2017 FINANCIAL RESULTS
Slide 2: Disclaimer
DISCLAIMER Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information about EML’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be com
Slide 3: More Opportunity on a Global Scale
MORE OPPORTUNITY ON A GLOBAL SCALE 01 FY2017 OVERVIEW Tom Cregan Managing Director & Group CEO 02 FINANCIAL OVERVIEW Bruce Stewart Group CFO 03 OUTLOOK Tom Cregan Managing Director & Group CEO EML Payments Results Presentation 2017 3
Slide 4: FY2017 Overview
MORE OPPORTUNITY ON A GLOBAL SCALE 01 FY2017 OVERVIEW 4
Slide 5: Highlights: Gross Debit Volume (GDV)
FY2017 OVERVIEW HIGHLIGHTS GROSS DEBIT VOLUME (GDV) $4.42bn 348% (AUD’ millions) 5000 Group GDV totalled $4.42bn, an increase of 348% to the prior year 4000 $3.55bn GDV generated in North America 3000 Full year impact of EML North America1 2000 existing customers at acquisition approx. $2.75bn 1000
Slide 6: Highlights: Revenue
FY2017 OVERVIEW HIGHLIGHTS REVENUE $58.0m 149% (AUD’ millions) 60 Group revenue for FY2017 of $58.0m, up 149% on prior year 50 $38.1m Revenue generated in North America 40 Full year impact of EML North America was $38.1m 30 incremental revenue 20 The Revenue / GDV metric reduced to 1.3% as a result
Slide 7: Highlights: EBTDA
FY2017 OVERVIEW HIGHLIGHTS EBTDA (AUD’ millions) (%) $14.5m 189% 16 14 30 Group EBTDA for FY2017 was $14.5m, up 189% on prior year 12 5 10 Group continues to leverage scale with diversification across 8 currencies, geographic regions, products, segments and customers -20 6 4 2 -45 0 -2 -4 -70 FY2013
Slide 8: Highlights: Stored Value
FY2017 OVERVIEW HIGHLIGHTS STORED VALUE $302m $50m (AUD’ millions) 350 300 Stored value closed at $302m, an increase of $50m or 16% on the prior year 250 Expectations of increases in the official interest rates would 200 benefit the group in future years 150 100 50 America Europe 0 Australia FY2013
Slide 9: Highlights: Results and Year CAGR
FY2017 OVERVIEW HIGHLIGHTS RESULTS — 5 YEAR CAGR Gross Debit Volume 2017 Revenue 2017 EBTDA 2017 $4.4bn 101% $58.0m 63% $14.5m 237% (AUD’ millions) (AUD’ millions) (%) (AUD’ millions) 16 30 5000 60 14 50 4000 12 5 40 10 3000 8 30 -20 6 2000 20 4 2 1000 10 -45 0 0 0 -2 FY2013 FY2014 FY2015 FY2016 FY2
Slide 10: Highlights Success
FY2017 OVERVIEW HIGHLIGHTS SUCCESS Successful Integration of EML USA and Canada PREPAID Successful launch of initial Reloadable program in the UK (bet365) VALID THRU Successful launch of initial Reloadable program in the USA (LuLaRoe) Successful launch of Salary Packaging Reloadable programs in Aust
Slide 11: Highlights Success: GDV Organic vs Acquisition
FY2017 OVERVIEW HIGHLIGHTS SUCCESS GDV (Organic vs Acquisition) 2017 Signed several B2B Virtual Payments contracts in the (AUD’ millions) USA that will generate significant GDV in future periods 5000 GDV from our established Australian gaming vertical 4000 grew by 59% on the prior year, driven by a
Slide 12: Financial Overview
MORE OPPORTUNITY ON A GLOBAL SCALE 02 FINANCIAL OVERVIEW
Slide 13: Group Financials Profit & Loss
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS Revenue ($’000s) FY 2016 FY 2017 % INCREASE Australia 8,134 9,784 20% EBTDA EXCEEDED ANALYST CONSENSUS Europe 12,562 10,055 -20% FY17 EBTDA of $14.5m exceeded analyst consensus of $14.3m Americas 2,615 38,121 1358% TOTAL REVENUE 23,311 57,960 149% Au
Slide 14: Group Financials Profit & Loss: Salary Packaging and FX
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS Salary Packaging successfully launched Eliminating the impact of adverse movements in Australia on 1 July 2017 in exchange rates would have seen an EBTDA Growth in Australia excludes any material impact from the key new higher by $1.1m or 8% vertical
Slide 15: Group Financials Profit & Loss: Revenue Mix
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS Breakage comprised 52% of revenue, up from 43% in the prior year, largely due to the acquisition of EML North America Breakage was 59% of revenues in the 1HFY17, so breakage has declined as a percentage of revenue as Reloadable and B2B Virtual 3% 11%
Slide 16: Gross Profit Margin and Overheads
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS Gross Profit Margin Overheads as a % of revenue 76.3% on PCP 51.3% 5.2% Down on PCP due to large B2B Virtual Payments contracts for Improved 5.2% to 51.3% in FY17 as the group continues to see processing only in North America and lower margin establi
Slide 17: EBTDA Growth
FINANCIAL OVERVIEW GROUP FINANCIALS PROFIT & LOSS (AUD’ millions) (%) $14.5m 189% 16 14 30 Another record year as EBTDA improved 189% to $14.5m with 12 5 improving EBTDA margin reflecting leverage on group scale 10 8 -20 6 The Group expects to adopt AASB15 – 4 Revenue from Contracts with Customers i
Slide 18: Group Financials Currency
FINANCIAL OVERVIEW GROUP FINANCIALS CURRENCY The Group operates in 13 countries through four reporting currencies (AUD, GBP, USD & CAD) Exchange rates moved adversely in the year, at constant FY16 exchange rates the Group’s FY17 results would have been approx. $3.2m of Revenue or $1.1m of EBTDA high
Slide 19: Group Financials Balance Sheet
FINANCIAL OVERVIEW GROUP FINANCIALS BALANCE SHEET Cash & Cash equivalents $39.9m 48% ($’000s) FY 2016 FY 2017 % INCREASE Cash and cash equivalents 26,942 39,872 48% Breakage accrued 8,816 13,326 51% Other receivables and other assets 8,266 14,923 81% Cash & Cash equivalents were $39.9m, Deferred tax
Slide 20: Balance Sheet: PayWith Investment and Tax Losses
FINANCIAL OVERVIEW GROUP FINANCIALS BALANCE SHEET During the year the group invested $3.6m in Group has significant tax losses PayWith Worldwide, Inc. to increase our stake The Group has significant tax losses, primarily in Australia & USA to a diluted c. 17% investment. that will be utilized in fut
Slide 21: Regional Summary: Australia
REGIONAL SUMMARY AUSTRALIA GDV NEW SALARY PACKAGING COST CONTROL GDV Recurring EBTDA Growth Revenues Advances GDV from gaming vertical Successfully launched a new EBTDA improvement represents grew 59% offsetting decline Salary Packaging vertical with the continuation of a 3 year from lending and Non
Slide 22: Australia Results
REGIONAL SUMMARY AUSTRALIA Gross Debit Volume Revenue Gross Profit EBTDA $671m 18.4% $9.78m 20.0% $7.09m 7.3% ($0.17m) 15.1% (AUD’ millions) (AUD’ millions) (AUD’ millions) (AUD’ millions) 800 10 8 0 7 -0.5 8 600 6 -1.0 5 6 -1.5 400 4 -2.0 4 3 -2.5 200 2 2 1 -3.0 0 0 0 -3.5 FY2013 FY2014 FY2015 FY20
Slide 23: Regional Summary: Europe
REGIONAL SUMMARY EUROPE RELOADABLE PRODUCT LAUNCH A STRONG FOCUS ON RELOADABLE PRODUCTS LAUNCHED bet365 Products Italian Launch & Malls Fuel Card In April 2017 we successfully European focus is on Reloadable Our first Reloadable product in launched our first winnings card products & shopping mall Eu
Slide 24: Europe Results
REGIONAL SUMMARY EUROPE Gross Debit Volume Revenue Gross Profit EBTDA $207m 14.3% $10.1m 20.06% $8.1m 14.2% $4.5m 3.8% (AUD’ millions) (AUD’ millions) (AUD’ millions) (AUD’ millions) 250 15 10 5 200 12 8 4 150 9 6 3 100 6 4 2 50 3 2 1 0 0 0 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2013 FY2014 FY2015 F
Slide 25: Regional Summary: North America
REGIONAL SUMMARY NORTH AMERICA COMMITTED TO LOOKING FORWARD SHOPPING MALLS Diversifying FY18 Continued Products Growth Growth North American business FY18 focus will remain on growth 17 shopping malls were signed, acquired 1 June 2016 which at in the Reloadable and B2B Virtual including West Edmonto
Slide 26: North America Results
REGIONAL SUMMARY NORTH AMERICA Gross Debit Volume Revenue Gross Profit EBTDA $3,546m 1,382% $38.1m 1,355% $29.1m 1,252% $10.2m 1,738% (AUD’ millions) (AUD’ millions) (AUD’ millions) (AUD’ millions) 40 30 12 4,000 35 3,500 25 10 30 3,000 20 8 25 2,500 20 15 6 2,000 1,500 15 10 4 1,000 10 5 2 500 5 0
Slide 27: Pre-Existing 2017 Customer Brands
GLOBAL OVERVIEW PRE-EXISTING 2017 CUSTOMER BRANDS Non-Reloadable EML GROUP B2B Virtual Reloadable Payments EML Payments Results Presentation 2017 27
Slide 28: New Customers FY17 and Beyond
GLOBAL OVERVIEW NEW CUSTOMERS FY17 AND BEYOND Non-Reloadable EML GROUP B2B Virtual Reloadable Payments EML Payments Results Presentation 2017 28
Slide 29: North America USA New Launches
GLOBAL OVERVIEW NORTH AMERICA USA NEW LAUNCHES Non-Reloadable Segment Reloadable Segment Largest shopping mall in North America Generated more than 20% of FY17 GDV West Edmonton Mall, located in Edmonton, Alberta, Canada, is the First Reloadable product launched in 2HFY17. largest shopping mall in N
Slide 30: Outlook
MORE OPPORTUNITY ON A GLOBAL SCALE 03 OUTLOOK
Slide 31: Company Fundamentals: Scalability
OUTLOOK COMPANY FUNDAMENTALS SCALABILITY EML operates in large, fast growing markets and holds a relatively small NORTH AMERICA market share, offering significant REGION EUROPE REGION market potential in future years. US$ US$ Global Trends2: 2.6bn EML GDV 2017 156m EML GDV 2017 Growing shift towards
Slide 32: Why Don't the Big Banks Do This?
OUTLOOK INNOVATION WHY DON’T THE BIG BANKS DO THIS? 1 2 3 4 1 http://www.reuters.com/article/us-jpmorgan-cards-prepaid-idUSBREA080XM20140109 2 http://www.pymnts.com/news/payment-methods/2016/amex-finds-serve-no-longer-serves/ 3 https://blackhawknetwork.com/think-the-big-banks-exiting-prepaid-means-t
Slide 33: A Unique Difference
OUTLOOK A UNIQUE DIFFERENCE AGILE PARTNERSHIPS TAILORED OPERATIONAL INNOVATION EXECUTION Being quick and High level system B2B White labelled Diligence and Constantly evolving responsive integrations customised offering commitment to local product suite aimed support at eliminating friction Long-ter
Slide 34: More Than Plastic Cards
OUTLOOK INNOVATION MORE THAN PLASTIC CARDS EML Payments Results Presentation 2017 34
Slide 35: Innovation: E-Wallet Technology
OUTLOOK INNOVATION INNOVATIVE E-WALLET WEARABLES TECHNOLOGY Signed contract with Frank Green to provide payment services for reusable cups DIGITAL: EACHWAY CASH THE PAYS TOP-UP LOADING EML Payments Results Presentation 2017 35
Slide 36: Key Data 3 Years: Key Metrics
OUTLOOK KEY DATA 3 YEARS KEY METRICS ($’000s) H1 2015A H2 2015A FY2015A H1 2016A H2 2016A FY2016A H1 2017A H2 2017A FY2017A 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths Headcount (closing) 55 55 55 59 150 150 168 170 170 Average Headcount for the period 40 55 48 57 71 64 158
Slide 37: Key Data 3 Years: Key Financials
OUTLOOK KEY DATA 3 YEARS KEY FINANCIALS ($’000s) H1 2015A H2 2015A FY2015A H1 2016A H2 2016A FY2016A H1 2017A H2 2017A FY2017A 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths Revenue (includes interest income) $5,079 $9,357 $14,437 $10,560 $12,751 $23,311 $32,440 $25,520 $57,960