Far Point Acquisition Corporation
Far Point Acquisition — SPAC Merger (February 2020)
54 slides from Far Point Acquisition's SPAC merger presentation, Feb 3, 2020
Slide 1: Technology and Payments Provider Empowering Global Merchants
January 2020 TECHNOLOGY AND PAYMENTS PROVIDER EMPOWERING GLOBAL MERCHANTS
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”) was prepared for informational purposes only to assist interested parties in making their own evaluation of the proposed transaction (the “Transaction”) between Far Point Acquisition Corporation (“FPAC”, “we”, or “our”) and Global Blue Group AG (“Gl
Slide 3: Today's presenters
Today’s presenters Jacques Thomas Stern Farley Chief Officer Executive Chief Officer Executive 3
Slide 4: Summary transaction overview
Summary transaction overview Far Point Acquisition Corporation (“FPAC”) is entering into a definitive agreement to combine with Global Blue AG (“Global Blue”) TRANSACTION The post-closing public company will be incorporated in Switzerland, listed in NYSE, and maintain the Global Blue name DESCRIPTIO
Slide 5: Business Overview
1. BUSINESS OVERVIEW 2. INVESTMENT HIGHLIGHTS 3. TRANSACTION OVERVIEW 4. APPENDIX 5
Slide 6: A strategic technology and payments partner empowering merchants
A strategic technology and payments partner empowering merchants to capture the growth of international shoppers TAX FREE SHOPPING TECHNOLOGY SOLU SMART DATA & BUSINESS INTELLIGENCE INTERNATIONAL TARGETED MARKETING SOLUTIONSMERCHANTSSHOPPERS & INTELLIGENT SALES TECHNOLOGY TFS Merchant(1) Worldwide +
Slide 7: Global Blue at a glance
Global Blue at a glance Tax Free Shopping Technology Solutions (TFS)Added-Value Payment Solutions (AVPS) ~85% of revenue~15% of revenue 13M36M€18.2B16M28M€4.4B GB internationalGB transactionsGB sales in storeGB internationalGB transactions GB sales in store shoppersx(SiS) shoppers(1)(SiS) €70B €26B~
Slide 8: Tax Free Shopping Technology Solutions
Tax Free Shopping Technology Solutions A win-win value proposition for merchants, international shoppers, customs & authorities, and Global Blue INTERNATIONAL SHOPPER PURCHASE (including VAT) €1,200MERCHANTAUTHORITIES CUSTOMS &REFUND AGENT€140 INTERNATIONAL SHOPPER VAT REFUND Purchase: €1,000 VAT: €
Slide 9: Global Blue is the most comprehensive integrated network in its category
Global Blue is the most comprehensive INTEGRATED NETWORK in its category KEY NETWORK FUNCTIONS FRONT ENDBACK END INTEGRATIONINTEGRATION WITH POS & PSP AFFILIATION OFCONSUMERTECH-ENABLEDDATAWITH PAYMENT NETWORKBRANDINGPROCESSINGAGGREGATIONPROVIDERS & ANALYTICS v CLIENTSREVENUE GROWTHNETWORKDRIVERSEXA
Slide 10: Investment Highlights
1. BUSINESS OVERVIEW 2. INVESTMENT HIGHLIGHTS 3. TRANSACTION OVERVIEW 4. APPENDIX 10
Slide 11: Investment highlights
Investment highlights 1 2 345 POWERFUL MACROCLEARBUSINESSATTRACTIVEINTERNATIONAL DRIVERS OFMARKET &STRATEGYTRANSACTION-MANAGEMENT TEAM GROWTHTECHNOLOGYCREATING VALUEBASEDWITH RELEVANT LEADERSHIPBUSINESS MODELEXPERTISE 11
Slide 12: Strong macro driven historical growth expected to continue
1 2 3 4 5 Strong macro driven historical growth expected to continue PROOF POINTSGROWTH DRIVER Next ~5 years expectation 97%Arrivals of EM+9% AEMERGING MARKETStransactions EM middle class vs. TFSshoppers into Global correlation(1)Blue’s marketsCAGR(4) Success ratio increase in% of transactions(5) BD
Slide 13: Global Blue's clear competitive differentiation
1 2 3 4 5 Global Blue’s clear competitive differentiation GLOBAL LEADERSHIP >3x market share vs. next TFS competitor 70% market share in TFS(1) PORTFOLIO OF ICONIC LUXURY BRANDS Longstanding relationships with iconic luxury brands Low gross churn(2): -3% Positive net churn(2): +1% Avg. tenure (years
Slide 14: Business strategy creating value
1 2 3 4 5 Business strategy creating value VOLUME GROWTHMANAGEMENT INITIATIVES MACRO DRIVERSTO BOOST VOLUME GROWTH VOLUME GROWTHTAX TECHNOLOGY FREE SHOPPINGADDED-VALUE PAYMENT DRIVERSEMERGINGVAT DYNAMICSDIGITALIZATIONSOLUTIONSSOLUTIONS MARKETS Increase penetration Increase market shareIncrease DCC p
Slide 15: M&A strategy – potential opportunity
1 2 3 4 5 M&A strategy – potential opportunity GB IS WELL POSITIONED FOR STRATEGIC M&A 12345 Modernization of the technology stack since new management team arrival in 2015 enables Global Blue to on-board acquired companies and drive revenue and cost synergies Public currency, achieved through merge
Slide 16: Powerful financial model delivering earnings growth and cash flow generation
1 2 3 4 5 Powerful financial model delivering earnings growth and cash flow generation (2009/10 and 2018/19 – Fiscal years ended in March. The year 2018/19 refers to 1 April 2018 to 31 March 2019) GROWTH Revenue, €M 409 160 2009/10 2018/19 PROFITABILITY Adjusted EBITDA, €M Adjusted EBITDA 23% 41% ma
Slide 17: Well-diversified business
1 2 3 4 5 Well-diversified business INTERNATIONAL INTERNATIONAL MERCHANT SHOPPER’S ORIGINSHOPPER’SBASE(2) DESTINATION TFS SiS, % total TFS SiS, % total TFS Revenue, % total Other APAC3%Merchant 15% Merchant 22% Other DM17%Singapore9%Merchant 32% APACMerchant 42% 2%Top 20 Merchant 5 eveloped ~30%~30%
Slide 18: Reversion of growth to medium-term trend
1 2 3 4 5 Reversion of growth to medium-term trend Fiscal years ended in March LAST 5 YEARS LAST 3 YEARSDEC-2019 YTD 9%9% SALES IN5% STORE 8% REVENUE4% -1% ADJUSTED10%11% EBITDA 1% COMMENTARY Structural long-term growth underpinned by macro drivers Last 2-3 years impacted by FX and geopolitical vola
Slide 19: Reversion of growth to medium-term trend: 2019 Zoom-in
1 2 3 4 5 Reversion of growth to medium-term trend: 2019 Zoom-in Quarterly 2019 Revenue YoY Growth 9% 9% 8% 7% 6% Q4 2018/19Q1 2019/20Q2 2019/20Q3 2019/20 (3 months ending 31-Mar)(3 months ending 30-Jun)(3 months ending 30-Sept)(3 months ending 31-Dec) COMMENTARY Revenue growth across all quarters i
Slide 20: Outlook and medium term guidance (1/3)
1 2 3 4 5 Outlook and medium term guidance (1/3) Fiscal years ended in March 2018/19A 2019/20E2020/21E ~455 431~445 REVENUE €M409 Margin41%42%~42% ADJUSTED~193 (1) 182 EBITDA170~187 €M MEDIUM TERM GUIDANCE (3 YEARS: 2020/21E-2023/24E) See detailed SiS forecast and revenue growth guidance reconciliat
Slide 21: Outlook and medium term guidance (2/3)
Outlook and medium term guidance (2/3) Fiscal years ended in March 2018/19A 2019/20E 2020/21E ADJUSTED ~95 NET INCOME (GROUP SHARE(1)) €M8181 ~90 FCFE(2)7373 (GROUP SHARE) €M MEDIUM TERM GUIDANCE (3 YEARS: 2020/21E-2023/24E) High-single digit adjusted net income (group share) growth D&A to increase
Slide 22: Outlook and medium term guidance (3/3)
Outlook and medium term guidance (3/3) MEDIUM TERM GUIDANCE Fiscal years ended in March 2019/20E 2020/21E (3 YEARS: 2020/21E-2023/24E) NET 3.3x LEVERAGE(1) <3.0x Net debt / adjusted EBITDA to below 2.5x (x) CAPITAL ~40 RETURN(2) Increase of absolute amount Not listed €M likely over time N/A Note: Se
Slide 23: International management team with relevant expertise
1 2 3 4 5 International management team with relevant expertise Average 10+ years at Global Blue(1) Jacques Stern Chief Executive Officer 4 Loïc Jenouvrier Chief Financial Officer 4 Pier F. Nervini Laurent Delmas Greg Gelhaus Tomas Mostany Damian Cecci Fabio Ferreira Jeremy Taylor Europe North, Euro
Slide 24: Transaction Overview
BUSINESS OVERVIEW INVESTMENT HIGHLIGHTS TRANSACTION OVERVIEW APPENDIX 24
Slide 25: Global Blue + Far Point: a partnership to create lasting value
Global Blue + Far Point: a partnership to create lasting value Market leading technology and payments provider Formed to create a leading, public FinTech company empowering global merchants as a platform for future growth ~300,000 TFS merchant stores processing #1 GLOBAL TFS 1PROVEN FINTECH ~€18B in
Slide 26: Detailed transaction overview (1/2)
Detailed transaction overview (1/2) SOURCES AND USES SOURCES €M $M FPAC cash in trust (1)586650 Cornerstone equity investment—Ant Financial113125 Cornerstone equity investment—Additional investors113125 Cornerstone equity investment—Third Point90100 New debt630699 Global Blue balance sheet cash4550
Slide 27: Detailed transaction overview (2/2)
Detailed transaction overview (2/2) IMPLIED VALUATION VALUATION Pro-forma shares outstanding (M)~188 (1) Illustrative share price$10.0 / €9.0 Implied equity value€1,700 Net debt at closing600 Implied total enterprise value€2,300 IMPLIED 2020/21E TRANSACTION MULTIPLES (2) TEV / EBITDA€19012.1x Equity
Slide 28: Global Blue peer group positioning
Global Blue peer group positioning POTENTIAL PEER SET INTEGRATED NETWORKS OTHER PAYMENTSNETWORK Core competency Some competency No competency END-TO-END SERVICE OFFERING DEEP MERCHANT RELATIONSHIPS PAYMENT PROCESSING EXPERTISE RICH CUSTOMER & MERCHANT DATA CAPEX-LIGHT MODEL 28 28
Slide 29: Global Blue represents a unique and attractive investment opportunity at a compelling valuation
Global Blue represents a unique and attractive investment opportunity at a compelling valuation TEV/EBITDA 2020E P/E 2020E FCFE YIELD 2020E 12.1x 17.9x5.3% Integrated Networks(1)16.4xIntegrated Networks(1)23.2xIntegrated Networks(1)3.7% Other Payments(2)17.6xOther Payments(2)24.1xOther Payments(2)3.
Slide 30: Appendix—Additional company materials
BUSINESS OVERVIEW INVESTMENT HIGHLIGHTS TRANSACTION OVERVIEW APPENDIX—Additional company materials 30
Slide 31: VAT refund regulatory framework
VAT refund regulatory framework WHAT IS VAT & VAT REFUND SCHEME? VAT: Value-added Tax is an indirect tax on the domestic consumption of goods and services, except those that are zero-rated (such as food and essential drugs) or are otherwise exempt (such as exports). VAT refund scheme: International
Slide 32: Positive VAT dynamics are a strong driver of luxury sales growth
Positive VAT dynamics are a strong driver of luxury sales growth INCREASING NUMBER OF COUNTRIES ARE ADOPTING VAT Number of countries and territories with VAT 180(1) +160 20 1979/802018/19 INCREASING NUMBER OF COUNTRIES ARE ADOPTING VAT REFUND SCHEMES Number of countries operating a VAT refund scheme
Slide 33: Increasing VAT rates drive growth of TFS environment
Increasing VAT rates drive growth of TFS environment VAT EVOLUTION ACROSS MAJOR DESTINATION MARKETS 30% 25% Finland taly EUROPE 20% Franc etherlands 15% Increased to 10% Spain in 1 Oct. 2019 Germany UK 10% 5% ingapore ASIA Japan 0% 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000
Slide 34: Additional countries may implement VAT refund schemes
Additional countries may implement VAT refund schemes COUNTRIES LIKELY TO ADOPT VAT REFUND SCHEMES IN THE NEXT 5 YEARS(1) HIGH TO MEDIUM PROBABILITYMEDIUM TO LOW PROBABILITY Countries currently with no VAT or GST and no VAT refund schemeKuwaitBrazilUSAIran Countries currently with VAT or GST and no
Slide 35: Open-Eye advisory to identify opportunities for growth
Open-Eye advisory to identify opportunities for growth We use data to help merchants understand the international shopper opportunity BENCHMARK TAX FREE IDENTIFY INTERNATIONAL ADAPT PRODUCTADAPT TACTICAL DECISIONS SHOPPING SOLUTIONSSHOPPER TRAFFIC ORASSORTMENT TO LATESTBASED ON SHORT-TERM PERFORMANC
Slide 36: Macro drivers directly tied to Global Blue's growth equation
Macro drivers directly tied to Global Blue’s growth equation A EMERGING MARKETS TAX FREE SHOPPING ADDRESSABLE MARKET: €70B SALES IN STORE 0% international shoppers from merging markets ABC BVAT DYNAMICSNumber ofAverage spendSuccess Ratio per trip Increasing chemes and number increasing of VAT rates
Slide 37: Medium-term analysis – SiS forecast and revenue growth guidance reconciliation
Medium-term analysis – results per annum may differ (positively or negatively) SiS forecast and revenue growth guidance reconciliation Medium-term CAGR, % Success Ratio EM travel growth=9.0%improvement xDM GDP growth=2.5% Int’l shopper’s origin:x EM=70%Int’l shopper’s origin:1.98.9(0.5) DM=30%(1.0)
Slide 38: Group cost structure drives operating leverage
Group cost structure drives operating leverage COST BREAKDOWN(1) (AS OF 2018/19) Adjusted operating costs indexed to 100 DEFINITIONS VARIABLE Issuing & Validation: Costs related to tax free form issuance and validation Acquiring: Costs related to financial processing business Refunding: Fee paid to
Slide 39: Well-invested business to support future growth
Well-invested business to support future growth Fiscal years ended in March 2014/15 2015/162016/172017/182018/19OUTLOOK 33.4 CAPEX27.826.6 €M 7.36.7 30.5 €15Mdepreciation D&Arelated asset, as to a the result right of of the use15.2 €M(1)adoption of IFRS 16 15.3 5.26.68.511.9 KEY TAKEAWAYS 2016/17 ca
Slide 40: Adjusted EBIT to Adjusted net income (group share) bridge
Adjusted EBIT to Adjusted net income (group share) bridge ADJUSTED EBIT TO ADJUSTED NET INCOME (GROUP SHARE) BRIDGE 2018/19, €M Adjusted EBIT Net finance Adjusted PBTAdjustedAdjusted NetMinorityAdjusted Net costsIncome TaxIncomeInterestIncome (Group Share) As % of34.0%27.0%20.9%19.8% revenue COMMENT
Slide 41: Resilient business performance during global financial crisis
Resilient business performance during global financial crisis TRAVEL INDUSTRY Passenger revenue, rebased to 100(1) CAGR: 0% Global financial crisis 100100 (16%) 84 2008A2009A2010A LUXURY INDUSTRY Personal luxury goods market, rebased to 100 CAGR: 2% Global financial crisis 105 100 (8%) 92 2008A2009A
Slide 42: FX impact felt instantly
FX impact felt instantly TOTAL UK TFS SIS DEVELOPMENT POST BREXIT REFERENDUM KEY TAKEAWAYS international shoppers’ TFS demand, particularly for EM shoppers TFS demand adjusts instantly to FX Brexit-driven GBP-depreciation impacted demand on the same day Note: (1) Refers to USD/GBP change between 23
Slide 43: Strong correlation between FX movements and SiS for Chinese Shoppers
Strong correlation between FX movements and SiS with high elasticity for Chinese Shoppers CHINESE DEMAND IS HIGHLY ELASTIC VIS-À-VIS FX MOVEMENTS THOUGH STABLE AND GROWING AT ~10%(1) OVER THE LONGER-TERM Relationship between Chinese SiS in Eurozone and FX CNY/EUR RUSSIAN MACRO VOLATILITY RESULTING I
Slide 44: Dynamic Currency Conversion Solution
Dynamic Currency Conversion Solution A win-win value proposition for acquirers, merchants, international shoppers, and Global Blue INTERNATIONAL SHOPPER Software Software Software GLOBAL BLUE SOLUTION Note: This overview is presented for illustrative purposes only and not as a representation of actu
Slide 45: Valuation of publicly traded comparables
Valuation of publicly traded comparables TEV / EBITDAP / EFCFE YIELDDIV. YIELD $BMCAPTEVCY2020CY2020CY2020CY2020 Integrated Networks Amadeus35.338.814.5x24.0x3.6%2.1% Fleetcor27.230.717.6x22.3x4.1%– Edenred12.614.717.7x30.5x3.5%2.6% Wex9.412.015.1x20.2x3.8%– Median16.4x23.2x3.7%1.1% Other Payments F
Slide 46: Appendix—Financials and reconciliations
BUSINESS OVERVIEW INVESTMENT HIGHLIGHTS TRANSACTION OVERVIEW APPENDIX—Financials and reconciliations 46
Slide 47: Non-GAAP adjusted income statement
Non-GAAP adjusted income statement FY ended in March, €M FY 2016/17A FY 2017/18AFY 2018/19AFH1 2018/19AFH1 2019/20A Revenue417.9420.0409.0208.7226.5 Adjusted operating expenses(251.6)(250.4)(239.4)(119.9)(126.4) Adjusted EBITDA166.2169.6169.688.9100.1 Other depreciation and amortisation(8.5)(11.9)(3
Slide 48: Reported IFRS income statement
Reported IFRS income statement CONSOLIDATED INCOME STATEMENT FY ended in March, €M FY 2016/17A FY 2017/18AFY 2018/19AFH1 2018/19AFH1 2019/20A Total revenue417.9420.0409.0208.7226.5 Operating expenses(338.8)(361.6)(354.4)(175.8)(190.5) Operating profit79.058.454.632.935.9 Finance income6.72.42.82.52.
Slide 49: Balance sheet
Balance sheet CONSOLIDATED STATEMENT OF FINANCIAL POSITION €M 3/31/2019 9/30/2019 Property, plant and equipment56.253.8 Intangible assets695.6663.0 Deferred income tax assets14.017.1 Investments in associates and joint ventures2.43.1 Other non-current receivables12.715.4 Non current assets781.0752.4
Slide 50: Reconciliations (1/4)
Reconciliations (1/4) ADJUSTED OPERATING EXPENSES FY ended in March, €M FY 2016/17A FY 2017/18AFY 2018/19AFH1 2018/19AFH1 2019/20A Operating expenses(338.8)(361.6)(354.4)(175.8)(190.5) Other income and expenses3.824.49.94.19.2(1) Amortisation of acquisition-related assets74.974.874.637.437.2 Other d
Slide 51: Reconciliations (2/4)
Reconciliations (2/4) ADJUSTED PROFIT BEFORE TAX and ADJUSTED NET INCOME FY ended in March, €M FY 2016/17A FY 2017/18AFY 2018/19AFH1 2018/19AFH1 2019/20A Profit before tax44.226.325.917.019.8 Other income and expenses3.824.49.94.19.2(1) Amortisation of acquisition-related assets74.974.874.637.437.2
Slide 52: Reconciliations (3/4)
Reconciliations (3/4) CASH FLOW SUMMARY FY ended in March, €M FY 2016/17A FY 2017/18AFY 2018/19AFH 1 2018/19AFH1 2019/20A Normal seasonal Adjusted EBITDA(1)166.2169.6169.688.9working capital100.1 cash outflow driven by summer Capex(27.8)(26.6)(33.4)(13.9)peak shopping(14.4) period NWC 10.9(21.2)7.3(
Slide 53: Reconciliations (4/4)
Reconciliations (4/4) NET LEVERAGE FY ended in March, €MFY 2016/17AFY 2017/18AFY 2018/19AFH1 2018/19AFH1 2019/20A Cash and cash equivalents(111.7)(50.7)(104.1)N.A.(75.1) Non-current loans and borrowings610.5612.8622.4N.A.623.5 Addback: Capitalized Financing Costs19.517.213.4N.A.11.6 Exclude: IFRS 9
Slide 54: Key risks relating to Global Blue
Key risks relating to Global Blue We are subject to currency exchange rate risk in the conduct of our business, including commercial risk if certain currency zones become less attractive for inbound international shoppers. Our business is highly dependent on international travel, which may be advers