Hightech Payment Systems Sa · CSEMA:HPS
Hightech Payment Systems Sa — HPS — H1 2023 Earnings Presentation
31 slides from Hightech Payment Systems Sa's earnings presentation, Sep 25, 2023
Slide 1: Earnings Presentation First half 2023
Earnings Presentation First half 2023 September 25, 2023
Slide 2: HPS Today & Growth Strategy
HPS TODAY & GROWTH STRATEGY Abdeslam ALAOUI CEO
Slide 3: HPS, the technology leader worldwide
The provider evaluation has four key components: provider stability, client strength, HPS, the technology leader worldwide product features, and client services. Each provider is rated based primarily on data provided in response to the RFI distributed by Datos Insights. Additionally, client intervi
Slide 4: We delivered long-term operational performance …
We delivered long-term operational performance … New logos (USD) Backlog & Revenue (USD) 30.000.000 120.000.000 ⏵ Recurring & Stable revenues increase 25.000.000 100.000.000 from 45% to 71% ⏵ New Tier-1 customers who have 20.000.000 80.000.000 adopted PowerCARD technology, including 3 of top 10 bank
Slide 5: … translated into a strong shareholder value creation
… translated into a strong shareholder value creation 8.000 Performance over 3 years +73.3% 7.000 6.000 5.000 HPS : +2,372% Performance over 5 years +306% 4.000 3.000 2.000 Performance over 10 years MASI : +14,4% +2,372% 1.000 0 02/01/2013 02/01/2014 02/01/2015 02/01/2016 02/01/2017 02/01/2018 02/01
Slide 6: AccelR8 - Transformation Program 2023-2027
AccelR8 - Transformation Program 2023-2027 ACCELR8 HPS in 2022 Non-recurring HPS in 2027 Non-recurring 15% 29% Between Organic growth 12% < CAGR < 17% 220 MUSD Recurring 100 MUSD and Recurring 48% Stable External growth 60% 300 MUSD Stable 25% Between 40 MUSD and 23% 80 MUSD EBITDA margin 25% to 30%
Slide 7: Why we believe in AccelR8 program
Why we believe in AccelR8 program Capability to ensure annual organic growth of between 12 and 17% • Track Record: We delivered a strong annual growth of 14% over the last 10 years. We delivered a CAGR of 20% over the 5 years following the launch of a new version of PowerCARD • Best in class softwar
Slide 8: Why we believe in AccelR8 program
Why we believe in AccelR8 program Capability to ensure external growth program • Track Record: We have successfully executed and integrated multiple acquisitions over the past 5 years: Switching activity, ICPS and IPRC • Financing capacity remains strong: solid free cash flow, low debt ratio and acc
Slide 9: Why we believe in AccelR8 program
Why we believe in AccelR8 program Capability to improve EBITDA margin to 25% - 30% by 2027 • Faster development of the SaaS mode: While degrading margins in the short term, is generating higher margins in the medium and long term • Convergence project: Integral part of AccelR8, Convergence aims to r
Slide 10: Key H1-2023 highlights
Key H1-2023 highlights Strong growth, aligned with our long-term objectives ⏵ 17% revenue growth, despite negative currency impact, and 22% growth at constant exchange rates ⏵ Major achievements in SaaS mode, including contracts with Tier 1 bank in Canada Reported margins impacted by currency, one-o
Slide 11: Operating & Financial Review
OPERATING & FINANCIAL REVIEW Brahim BERRADA Corporate Services Managing Director
Slide 12: Achievements aligned with AccelR8
Achievements aligned with AccelR8 REVENUE EBITDA / MARGIN BACKLOG 564 MMAD 114 MMAD 20.2% 833 MMAD +17.3% Growth -1.7% Growth +6.9% Growth +21.8% Constant ex. rate +14.7% Constant ex. rate SEGMENT PERFOMANCE PAYMENT ACTIVITY SWITCHING ACTIVITY TESTING ACTIVITY 85% 7% 8% 456 MMAD 38 MMAD 44 MMAD +17.
Slide 13: Sustainable business model
Sustainable business model NON-RECURRING 31% RECURRING 47% Growth drivers Growth drivers • Strong backlog end 2022, leading to accelerated deployment of • New clients in maintenance and major projects increase of maintenance rate 8% 9% • Increase in Merchant and • On-Premise model +77.9% Growth with
Slide 14: Payment activity: On-Premise Model
Payment activity On-Premise Model Share in Consolidated Revenues ⏵ After signature with one of the biggest ⏵ Strong effort to accelerate the bank is Asia in 2021 and the deployment deployment for one the Tier-1 bank in of the Switch module in 2022, HPS multiple countries: UK, Hong-Kong, 456 MMAD suc
Slide 15: Payment activity: SaaS Model
Payment activity SaaS Model Share in Consolidated Revenues ⏵ Signature of a new SaaS agreement ⏵ Discovery agreement signed with Tier-1 with one of the largest bank in Canada. bank in UK for a SaaS agreement. Final The platform will be hosted by Amazon agreement is expected to be finalized 456 MMAD
Slide 16: Payment activity
Payment activity Revenues Breakdown & Growth by Sub-activity Revenues Breakdown & Growth By Geographic Area 14 MDH / 3% -66% Licenses 91 MDH +4.5% SaaS fees Europe 17% 19.4% Americas 106 MDH +20.9% 3,7% +44.3% Asia Upselling 2O% -29.6% 19.8% Middle East 20.2% +262% 120 MDH +18.6% Maintenance 22% Afr
Slide 17: Switching activity
Switching activity Platform enhancements Share in Consolidated Revenues ⏵ Finalization of the new Active-Active ⏵ Implementation of new Visa architecture, providing high availability tokenization services for some banks for participants ⏵ Migration of all financial institutions to the new platform 3
Slide 18: Revenue growth (Amounts in MMAD)
Revenue growth (Amounts in MMAD) Reported growth +17.2% +3.5 -1 +7.5 587 -23 (*) +96 564 * Currency impact ( ) 481 The impact of exchange rate fluctuations on revenues is linked to the revaluation of work- in-progress inventories at the exchange rate at June 30, 2023, +22.0% Growth at constant excha
Slide 19: Operating expenses (Amounts in MMAD)
Operating expenses (Amounts in MMAD) +35.5 -7.5 470.5 ⏵ HR Costs : 235 MMAD vs. 209 MMAD (+12%) +21.5 • Strong headcount increase (+20%) +26 • Impact of exceptional salaries increases in 2022 395 (organization alignment) No additional salary adjustment made in 2023 ⏵ Subcontracting: 86.5 MMAD vs. 65
Slide 20: EBITDA and Net profit analysis
EBITDA and Net profit analysis Exceptional salary adjustments end 2022: impact of 1.8% lower EBITDA margins. No additional adjustments in 2023 Impact of 5% lower Exceptional legal fees linked to the execution of our ESOP plan. EBITDA margin Impact of 1% lower EBITDA margins compared to H1- 2022 Doll
Slide 21: Adjusted EBITDA growth at constant currency
Adjusted EBITDA growth at constant currency Amounts in MMAD +106 -89 24.1% 23.7% 20.6% 133 -5 -23 116 +9 114 +14.7% Growth at constant rate excluding ESOP cost H1-2022 Revenue growth Cost growth H1-2023 ESOP cost Currency Currency H1-2023 reported adjusted Revenue impact Cost impact reported (consta
Slide 22: Cash flow
Cash flow Amounts in MMAD 238 -7 -16 LT Debt compared to equity -26 -6 183 135 MMAD 20% -10% growth Cash position in MMAD - CAGR 21% End 2022 Operations Investments Financing Currency H1-2023 277 cash position exchange cash position 224 238 183 ⏵ Operational cash flow: Client receivables remains sta
Slide 23: Backlog
Backlog NON-RECURRING 30% Compared to annual Revenues Switch 9% SaaS Projects 30% 833 MMAD 82% 23% +6.9% growth Click fee Upselling 2% 10% Maintenance 26% Backlog in MMAD - CAGR 14.6% 833 779 RECURRING STABLE 60% 579 10% 483 475 ⏵ High level of sales during the last 12 months contributing to a stron
Slide 24: Key takeaways & H2-2023 guidance
Key takeaways & H2-2023 guidance Reinforced Backlog mechanically leads Ambitious and realistic AcceleR8 to strong visibility for H2-2023 and program with a slight impact on the beyond margin in the short term Revenue growth for full Profitability preserved for 2023 2023 aligned with Accelr8 EBITDA e
Slide 25: IR calendar and information
IR calendar and information Upcoming meeting for 2023 IR permanent communication OCTOBER 5 & 6, 2023 - TANGIER PERMANENT ACCESS CFG Bank One-on-One Equity Conference Committed to regular dialogue with investors on request at invest@hps-worldwide.com NOVEMBER 27, 2023 Publication of 3rd quarter 2023
Slide 26: Annexes
Annexes HPS,
Slide 27: Scope of consolidation at December 31, 2022
Scope of consolidation at December 31, 2022 Consolidated Corporate financial accounts statements Comptes Comptes Comptes Comptes Comptes Comptes Consolidés Comptes Consolidés Comptes Consolidés Consolidés ComptesComptes Consolidés Comptes Comptes Comptes Comptes Consolidés Consolidés Sociaux Sociaux
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Amounts in MAD ASSETS 30/06/2023 31/12/2022 LIABILITIES 30/06/2023 31/12/2022 Fixed assets 295 755 014 300 052 568 Shareholders' equity 644 711 875 652 158 218 Capital 70 359 900 70 359 900 Goodwill 86 686 643 92 321 077 Share premium 31 623 410 31 623 410 Intangible asset
Slide 29: Consolidated P&L
Consolidated P&L Amounts in MAD 30/06/2023 30/06/2022 Variation Sales 567 249 927 440 107 095 29% Change in WIP -22 734 819 29 032 381 -178% Other operating income 19 460 808 11 823 271 65% Operating revenues 563 975 916 480 962 747 17% Purchases resold of Goods - -2 671 918 -100% Purchases consumed
Slide 30: Cash Flow Statement
Cash Flow Statement Amounts in MAD 30/06/2023 31/12/2022 Net income 45 529 474 117 078 596 Elimination of non-cash and non-operating income and expenses - Depreciation and amortization 18 605 205 34 700 113 - Change in deferred taxes 698 807 656 307 - Gain or loss on disposal 309 616 - Other non-cas
Slide 31: invest@hps-worldwide.com
HPS / invest@hps-worldwide.com