W.a.g. Payment Solutions Plc · LSE:EWG
W.a.g. Payment Solutions — H1 2024 Earnings Presentation
32 slides from W.a.g. Payment Solutions's earnings presentation, Sep 5, 2024
Slide 1: Half year results 2024
W.A.G payment solutions plc Half year results 2024 5 September 2024 eurowag.com
Slide 2: Disclaimer
Disclaimer This presentation comprises certain written materials/slides prepared by W.A.G payment solutions plc (the Company) for the purposes of the Company’s investor relations presentation. This document, its contents and the presentation may not be copied, distributed, published, reproduced or p
Slide 3: Agenda
Agenda 1 Introduction and highlights 2 Financial results 3 Strategic update 4 Summary and priorities 5 Q&A 3
Slide 4: Introduction and highlights
Introduction and highlights Martin Vohánka CEO and Founder 4
Slide 5: H1 2024 highlights
H1 2024 highlights Strong results; significant progress towards phased rollout of Eurowag Office H1 24 financial performance Strategic progress • Launched omnichannel pilot in Poland, including digital onboarding. Net revenue Attract • Accelerated active payment solutions trucks growth +11.8%, to 10
Slide 6: Financial results
Financial results Oskar Zahn CFO
Slide 7: H1 financial highlights
H1 24 financial highlights Continued strong performance; improvement in net leverage Net revenue Adj. EBITDA Adj. EBITDA margin €141.0m €59.4m 42.1% +18.4% +18.2% (0.1)pp Adj. EPS Capex Net leverage1 2.51p €20.5m 2.6x (13.4)% H1 2023: 24.7m FY 2023: 2.9x Note: (1) Net leverage covenant calculation a
Slide 8: Consistently delivering strong revenue and EBITDA growth
Consistently delivering strong revenue and EBITDA growth • Strong net revenue growth +18.4%, driven (€m) H1 2024 H1 2023 YoY% by strong growth across all products and the contribution from Inelo. Net revenue1 141.0 119.1 18.4% o Payments +10.2%, supported by growth in toll revenue and +11.8% Payment
Slide 9: Growing revenue contribution from mobility solutions
Growing revenue contribution from mobility solutions (€m) Total payment solutions Total mobility solutions Total Group Net revenue growth +10.2% +31.3% +18.4% Net revenue 57% 43% contribution (0.5)% +49.4% +32.7% +92.2% +123.2% +17.5% +2.9% (4.7)% Notes: (1) If Inelo had been acquired 1 Jan 2023, Ne
Slide 10: Strong EBITDA growth despite higher credit losses
Strong EBITDA growth despite higher credit losses (€m) 42.2% Like-for-Like Adj. 42.1% EBITDA Margin growth +17.6% Margin 4.41 0.4% of gross 50.2 revenue2 Note: (1) Annualisation of Inelo, (2) Credit losses of €7.8m for the first six months of the year, divided by gross revenue from contracts with cu
Slide 11: Capex reduction aligning with integration phase
Capex reduction aligning with integration phase Capital expenditure (€m) Continue to invest in the integration of products, data and platforms 50.9 • €3m of transformational capex carried over from last year; excluding this, the capex to 8.5 43.2 net revenue ratio is 12.5%. • Capex focused on: 5.4 -
Slide 12: Focused on deleveraging
Focused on deleveraging (€m) Net leverage Free cash: €50.0m Net leverage 2.9x 2.6x Note: (1) Capex includes proceeds from sales of assets, (2) Deferred considerations of €5.7m and acquired non-controlling interests for a consideration of €2.5m. 12
Slide 13: Finance agreement amended; supporting scaled business
Finance agreement amended; supporting scaled business Updated debt amortisation profile1 (€m) • Extended maturity of our loans from 2027 to 2029; quarterly repayments reduced. • Extended share of revolving loan from up to €25m to up to €40m. 358 • Additional €40m of revolving loan and €10m 310 bank
Slide 14: Medium-term financial guidance unchanged
Medium-term financial guidance unchanged FY24 Medium term • Near term, market headwinds expect growth • Medium-term, value creation from platform Net revenue rates to be around mid-teens %. and acquisition synergies extracted, return to high-teens %. Adjusted • FY24 margin levels expected to be in-l
Slide 15: Strategic update
Strategic update Martin Vohánka CEO and Founder
Slide 16: Eurowag connecting the CRT through a single data-driven digital ecosystem
Eurowag connecting the CRT through a single data-driven digital ecosystem Fragmented CRT1 ecosystem Shippers, Freight Energy Finance & Original equipment Regulators Roadside service forwards & Load & toll payments insurance manufacturers & authorities providers platforms Help make the CRT industry c
Slide 17: Good progress made on our strategic priorities; integration and transformation
Good progress made on our strategic priorities; integration and transformation 2023 2024+ 2017 2023 Integration and transformation Delivering industry first integrated digital platform, driving efficiency and Accumulation supporting decarbonisation Acquiring and developing a broader H1 2024 suite of
Slide 18: Design of Eurowag's integrated end-to-end digital platform
Design of Eurowag’s integrated end-to-end digital platform To /make Customers commercialTruck user Business road owner driver transport Fleet clean, fair and efficient dispatcher Engage Monetise Sales channels Direct Indirect Digital Pricing Products and services Energy & Tolls Drive customer Financ
Slide 19: Omnichannel sales pilot
Indirect Trusted Brand Omnichannel sales pilot AWARENESS Telesales Building trusted brand through omnichannel communication launched Advisory sales • Strategic partnerships (automotive, freight forwarders, etc.) 1 Awareness • Online advertising Digital • Word-of-Mouth effects Awareness Engagement an
Slide 20: EW office roadmap; phased migration of existing customers
EW office roadmap; phased migration of existing customers H1 2024 H2 2024 FY 2025 New customers; phased rollout starting Q4 24 EW Fleet Management Solutions migration “Menu is friendlier, more intuitive, big plus • Re-used all EW telematics features for driver behaviour report” • New trucking maps a
Slide 21: Eurowag Office; industry-first digital platform
Eurowag Office; industry-first digital platform • Real-time monitoring of vehicles, transport and route planning from one app. Dispatcher • Access to data without switching systems or paper. • Few manual processes and real-time decision making through AI and data insight tools. • Improve driving beh
Slide 22: Our platform will help make the CRT industry clean, fair and efficient
Our platform will help make the CRT industry clean, fair and efficient Our sustainability strategy… Initiatives implemented, which will help us reach our climate targets Enhancing Eurowag’s alternative fuel offers, with access to over 1,500 Climate action alternative fuel stations across our network
Slide 23: H1 summary and H2 priorities
H1 24 summary and H2 priorities New strategic KPIs H1 24 summary H2 24 priorities • ~280,000 total number of • Delivered strong double-digit • New customers introduced active trucks1. growth, despite macro to the new platform in Q4 24. headwinds. • 2-3 no. of products per • Continued integration of
Slide 24: Q&A Contact us for further details
Q&A Contact us for further details investors@eurowag.com
Slide 25: Appendix
Appendix
Slide 26: Revenue model
Revenue model Payment solutions Mobility solutions Re-occurring transaction-based revenue streams Recurring subscription and other fee-based revenue streams Energy payments # of transactions Transport Fleet Work time (x) management management management average units per transaction (x) Subscription
Slide 27: Alternative measures
Alternative measures Adjusted Adjusting H1 2024 Adjusted Adjusting H1 2023 items Items (€m) (€m) (€m) (€m) (€m) (€m) Net revenue 141.0 0.0 141.0 119.1 0.0 119.1 EBITDA 59.4 7.4 52.0 50.2 10.0 40.2 EBITDA margin (%) 42.1% 5.2% 36.9% 42.1% 8.4% 33.7% Depreciation, amortisation and 22.7 10.0 32.7 18.9
Slide 28: Adjusting items
Adjusting items Adjusting items Adjusted EBITDA reconciliation H1 2024 H1 2023 H1 2024 H1 2023 (€m) (€m) (€m) (€m) M&A related expenses 2.2 2.7 Intangible assets amortisation 24.6 19.3 Strategic transformation expenses 3.0 3.6 Tangible assets depreciation 5.2 3.9 Share-based compensation 2.2 3.7 Rig
Slide 29: Well managed working capital
Well managed working capital Working capital movement1 (€m) Gross revenue (€bn)3 600 10% 8% 3.3 400 3.2 6% 4% 1.0 200 2.5 1.1 2% 2.1 2.0 0 0% 0.9 1.9 1.5 0.7 1.6 -2% 0.8 0.7 (200) aa -4% 0.6 2.4 0.6 2.1 -6% 1.6 (400) 1.4 1.3 1.1 -8% 0.9 1.0 (600) -10% FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 202
Slide 30: Renegotiated facilities; extended maturity, reduced amortisation and extended RCF
Renegotiated facilities; extended maturity, reduced amortisation and extended RCF Club finance agreement1 amended to extend Updated debt amortisation profile (€m) maturity to 2029 and reduce term loan amortisation • Facility A of €150m • Facility B of €180m • Revolving Credit Facility of €235m for r
Slide 31: Our platform will help make the CRT industry clean, fair and efficient
Our platform will help make the CRT industry clean, fair and efficient Our sustainability strategy… … will help us reach our environmental targets Business operations Climate action Reduce GHG emmisions By 2040 By 2050 from own operations1 by Customer success Achieve zero direct GHGs Net zero emissi
Slide 32: Net revenue geographical split
Net revenue geographical split Southern Cluster Central Cluster 3% Czech Republic 14% Poland 23% Other Central Cluster 15% 19% Portugal 28% 28% 15% Other Western Cluster 14% 13% Romania 6% 13% 4% Other Southern Cluster 4% 11% 4% Not specified Western Cluster Note: Percentage represents proportion fr
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