Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q3 2021 Earnings Presentation
23 slides from Euronet Worldwide's earnings presentation, Oct 21, 2021
Slide 1: Third Quarter 2021 Financial Results
Third Quarter 2021 Financial Results PRESENTERS: MICHAEL J. BROWN, CHAIRMAN & CEO RICK L. WELLER, EVP AND CFO KEVIN J. CAPONECCHI, EVP & CEO EPAY, EFT ASIA PACIFIC & SOFTWARE SCOTT CLAASSEN, GENERAL COUNSEL 20 October 2021 | Slide 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking
Slide 3: Business Update
Business Update MICHAEL J. BROWN, CHAIRMAN & CEO 20 October 2021 | Slide 3
Slide 4: Defined Terms
Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of
Slide 5: Current State of Business
Current State of Business ‣ Euronet delivered third quarter revenue higher than the same quarter in 2019. ‣ Strong balance sheet continues to support ATM expansion and digital transformation strategies in epay and Money Transfer ‣ EFT results exceeded expectations as a result of stronger than expect
Slide 6: EFT European Travel Indicators
EFT European Travel Indicators * *Euronet October transactions are estimated based on current trends and are subject to change 20 October 2021 | Slide 6 *Euronet October transactions are estimated based on current trends and are subject to change
Slide 7: EFT Quarterly Highlights
EFT Quarterly Highlights ‣ Expanded Distribution: ‣ Launched merchant acquiring services at La Samaritaine, a high-end shopping mall in Paris ‣ Launched cardless payout for BNP Paribas corporate clients in Poland ‣ Switching and card management agreements with SVC Cooperative Bank Limited and Wai Ur
Slide 8: epay Quarterly Highlights
epay Quarterly Highlights ‣ Launched: ‣ Microsoft XBOX Subscriptions service with Telefonica Spain ‣ Microsoft Office 365 distribution through fnac.com France ‣ Digital channel distribution with Media Markt in Poland ‣ Digital channel expansion with Agibank, a bank in Brazil with 3 million customers
Slide 9: Money Transfer Quarterly Highlights
Money Transfer Quarterly Highlights ‣ Network Growth: ‣ Our network reaches: ‣ 507,000 total retail network locations, a 13% increase vs. Q3 2020 ‣ 162 countries ‣ 3.6 billion bank accounts and 416 million wallet accounts ‣ Correspondent Expansion: ‣ Launched 15 new correspondents in 13 countries ‣
Slide 10: Euronet Technology Success Update
Euronet Technology Success Update ‣ Signed agreement with Jalin, the National Switching System in Indonesia ‣ Euronet will deploy REN as one of the largest switching infrastructures in Southeast Asia ‣ Driving approximately 43,000 ATMs (~50% of the total ATMs in the country) ‣ Signed REN implementat
Slide 11: Financial Highlights Third Quarter 2021
Financial Highlights Third Quarter 2021 RICK L. WELLER, EVP & CFO 20 October 2021 | Slide 11
Slide 12: Balance Sheet Overview
Financial Highlights Third Quarter 2021 Balance Sheet Overview USD 6/30/2021 9/30/2021 (in millions) Unrestricted Cash $ 994.5 $ 1,048.5 ATM Cash 565.1 669.7 Settlement Assets 929.7 928.7 Total Assets 4,439.1 4,526.3 Total Debt 1,186.2 1,206.5 Total Debt to Trailing Twelve Month Adjusted EBITDA Mult
Slide 13: Financial Highlights Third Quarter 2021
Financial Highlights Third Quarter 2021 ‣ Revenue - $816.6 million ‣ 23% increase from $664.4 million for Q3 2020 ‣ 22% increase on a constant currency basis ‣ Operating Income - $114.5 million ‣ 73% increase from $66.1 million for Q3 2020 ‣ 72% increase on a constant currency basis ‣ Adjusted opera
Slide 14: Three Year Transaction Trend
Financial Highlights Third Quarter 2021 Three Year Transaction Trend 20 October 2021 | Slide 14
Slide 15: Same Quarter Prior Year Comparison
Financial Highlights Third Quarter 2021 Same Quarter Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 EFT Processing $ 144.1 $ 227.1 $ 6.2 $ 63.2 $ 27.7 $ 85.8 % Change 58% 919% 210% epay 198.9 238.3 22.2 25.9 2
Slide 16: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights Third Quarter 2021 Same Quarter Prior Year Comparison – Constant Currency Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q3 2020 Q3 2021* Q3 2020 Q3 2021* Q3 2020 Q3 2021* EFT Processing $ 144.1 $ 225.4 $ 6.2 $ 62.5 $ 27.7 $ 85.0 % Change 56% 908% 207% epay
Slide 17: Closing Remarks
Closing Remarks MICHAEL J. BROWN, CHAIRMAN & CEO 20 October 2021 | Slide 17
Slide 18: Supplemental Data
Supplemental Data 20 October 2021 | Slide 18
Slide 19: Supplemental Data: Net Income to Adjusted EBITDA, Q3 2021
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended September 30, 2021 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $ 73.7 Add: Income tax expense 22.7 A
Slide 20: Supplemental Data: Net Income to Adjusted EBITDA, Q3 2020
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Net Income to Operating Income (Expense) to Adjusted Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended September 30, 2020 EFT Money Corporate Processing epay Transfer Services Consolidated Net incom
Slide 21: Supplemental Data: Constant Currency Reconciliation
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Revenue, Adjusted Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) (unaudited - in millions) Three months ended ended September 30, 2021 EFT Money Corporate Processing epay Tra
Slide 22: Supplemental Data: Adjusted Earnings per Share
Supplemental Data EURONET WORLDWIDE, INC. Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Three Months Ended September 30, 2021 2020 Net income attributable to Euronet Worldwide, Inc. $ 73.9 $ 40.2 Foreign currency exchange los 8.1 1.4 Intangi
Slide 23: Thank You
Thank You EURONET WORLDWIDE, INC. 20 October 2021 | Slide 23