Slide 1: WEX Fourth Quarter 2021 Earnings
WEX Fourth Quarter 2021 Earnings February 10, 2022
Slide 2: WEX Forward-Looking Statements
WEX Forward-Looking Statements This earnings materials contain forward-looking statements, including statements regarding: assumptions underlying the Company's future financial performance, future operations; future growth opportunities and expectations; expectations for future revenue performance,
Slide 3: 4Q2021 Highlights
4Q2021 Highlights Revenue Adjusted Net Income Per Diluted % 600,000 24.7 Share Up $497,538 3.00 .9% $2.58 7 $398,990 p7 $ (Thousands) $ (Per Diluted Share) 400,000 U 2.00 $1.45 200,000 1.00 0 0.00 4Q2020 4Q2021 4Q2020 4Q2021 Purchase Volume 4Q2021 Segment Revenue Growth Vs. 4Q2020 30,000 $24,663 6%
Slide 4: Full Year 2021 Highlights
Full Year 2021 Highlights Revenue Adjusted Net Income Per Diluted 2,000 Share 8 .6% $1,851 % Up1 10.00 50.9 $9.14 1,750 Up $ (Per Diluted Share) $ (Millions) $1,560 $6.06 1,500 5.00 1,250 1,000 0.00 2020 2021 2020 2021 2021 Segment Revenue Growth Vs. 2020 Purchase Volume (1) 100,000 8 .9% U p5 $88,3
Slide 5: 2021 Strategy Highlights
2021 Strategy Highlights 2021 STRATEGIC PILLARS OUR VALUES INNOVATION / EXECUTION / INTEGRITY / RELATIONSHIPS / COMMUNITY 2021 HIGHLIGHTS • Record revenue - more than $125M above previous record high • Strong new customer signings in each line of business • Continued to experience strong organic rev
Slide 6: Executing on the WEX Strategy
Executing on the WEX Strategy CONTINUE TO WIN IN THE MARKETPLACE 2021 TECHNOLOGY FOCUS • Digital marketing engine • AI powered service enhancements • Cloud Native Capabilities ◦ ~80% of platform in the cloud 6
Slide 7: Weekly Volume Metrics
Weekly Volume Metrics Fleet Payment Processing Gallon Volume & Travel and Corporate Payments Purchase Volume Key Updates Weekly Volume % Change Y-o-Y Benchmarked to 2019 for March 2021 and later • YTD 2022 average 125.0% domestic fuel price is $3.48 100.0% • Weekly purchase volume 75.0% changes for
Slide 8: Weekly Volume Metrics
Weekly Volume Metrics Fleet Payment Processing Gallon Volume & Travel and Corporate Payments Purchase Volume Key Updates: Weekly Volume % Change Year-over-Year 200.0% • Includes purchase volume for eNett and Optal as if 150.0% they were owned for the entire period shown % change vs prior year 100.0%
Slide 9: Weekly Volume Metrics
Weekly Volume Metrics SaaS Account Growth Rate and Health Purchase Volume Key Updates SaaS Y-o-Y Account Growth Rate 30.0% • SaaS account growth - driver of ~3/4 of health 20.0% segment revenue growth - remains strong 10.0% —% • Weekly purchase volume changes for March 2021 1 21 20 20 21 21 20 21 21
Slide 10: WEX Full Year and Fourth Quarter 2021 Financial Results
WEX Full Year and Fourth Quarter 2021 Financial Results 10
Slide 11: Company Results - Full Year 2021
Company Results - Full Year 2021 Record high revenue with double digit increases in each segment 2021 2020 $ ∆ Yr/Yr % ∆ Yr/Yr (In thousands except per share data) Total Revenue $1,850,542 $1,559,869 $290,673 18.6% Net income (loss) attributable to $137 ($243,638) $243,775 NM shareholders Net income
Slide 12: Company Results - 4Q 2021
Company Results - 4Q 2021 Record high quarterly revenue 4Q21 4Q20 $ ∆ Yr/Yr % ∆ Yr/Yr (In thousands except per share data) Total Revenue $497,538 $398,990 $98,548 24.7% Net loss attributable to shareholders $(11,760) $(234,200) $222,440 NM Net loss attributable to shareholders per ($0.26) ($5.30) $5
Slide 13: Revenue Breakdown - 4Q 2021
Revenue Breakdown - 4Q 2021 Strong revenue growth in each segment 4Q21 4Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $497,538 $398,990 $98,548 24.7% Segment Revenue Fleet Solutions $306,829 $235,379 $71,450 30.4% Travel and Corporate Solutions $81,512 $74,690 $6,822 9.1% Health and Employee Benefit Solutio
Slide 14: Fleet Solutions
Fleet Solutions Solid transaction growth leads to impressive revenue growth 4Q21 4Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 306,829 235,379 71,450 30.4% Payment Processing Revenue ($) 146,333 98,955 47,378 47.9% Finance Fee Revenue ($) 75,679 53,373 22,306 41.8% All Other Revenue ($) 84,817
Slide 15: Travel and Corporate Solutions
Travel and Corporate Solutions Continued strong growth in purchase volume and revenue 4Q21 4Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 81,512 74,690 6,822 9.1% Payment Processing Revenue ($) 68,747 62,376 6,371 10.2% All Other Revenue ($) 12,765 12,314 451 3.7% Purchase Volume ($) 10,916,015
Slide 16: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions Strong US Health revenue growth 4Q21 4Q20 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 109,197 88,921 20,276 22.8% Payment Processing Revenue ($) 15,969 14,985 984 6.6% Account Servicing Revenue ($) 83,779 64,432 19,347 30.0% All Other Revenue ($) 9,449 9,504 (
Slide 17: Selected Operating Expenses
Selected Operating Expenses Operating Expenses (GAAP) Segment Adjusted Operating Income Margin (1) 750 Three months ended 215.9 December 31, 500 $ (Millions) 2021 2020 196.4 211.7 Fleet Solutions 50.9% 42.2% 250 Travel and Corporate Solutions 38.8% 20.1% 192.7 168.6 Health and Employee Benefit Solut
Slide 18: Tax Rate
Tax Rate Key Updates ANI tax rate of 25.3% vs 22.4% last GAAP Tax Rate year • Change in geographic mix of 50.0% earnings moved ANI tax rate higher vs last year GAAP tax rate of 50.0% vs 7.0% last year • Additional valuation allowance related to eNett and Optal 7.0% deferred tax assets • Near breakev
Slide 19: Additional Balance Sheet Items
Additional Balance Sheet Items Total Cash ($ Millions) 1,000 $852 Key Updates 800 $589 600 • Corporate cash1 balance was 400 approximately $153 million 12/31/2020 12/31/2021 • Remaining borrowing capacity of $759 million on credit facility 2 • Leverage ratio, as defined in the Total Financing Debt (
Slide 20: Guidance
Guidance Q1 2022 FY 2022 ∆ Yr/Yr ∆ Yr/Yr OUTLOOK OUTLOOK Revenue (in millions) $495 - $505 20% - 23% $2,050 - $2,090 11% - 13% Adjusted Net Income1 (in millions) $117 - $122 44% - 50% $517 - $536 25% - 29% Adjusted Net Income Earnings per $2.55 - $2.65 42% - 48% $11.20 - $11.60 23% - 27% Diluted Sha
Slide 21: Appendix
Appendix 21
Slide 22: Net Interchange Rate
Travel and Corporate Payments Revenue, Margin, Volume and Net Interchange - Adjusted Key Updates Travel and Corporate Payments Adjusted Revenue and Operating Income • For comparative Margin purposes, graphs show revenue, net $100 50.0% Revenue, net basis interchange rate for all periods ($M) $78 $82
Slide 23: Impacts of Amended Contract on Travel and Corporate Solutions Segment
Impacts of Amended Contract on Travel and Corporate Solutions Segment Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Reported: • Accounting Volume $ 4,968,321 $ 6,107,675 $ 8,736,019 $ 12,799,555 $ 10,916,015 presentation Net interchange rate** 1.26 % 0.94 % 0.78 % 0.62 % 0.63 % changed in Q4 2021 from gro
Slide 24: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income Three months ended December 31, Year Ended December 31, In thousands 2021 2020 2021 2020 Operating Income $ 108,359 $ (197,129) $ 342,000 $ (91,673) Unallocate
Slide 25: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 per diluted per diluted per diluted per diluted (In thousands except per share data) share share share share Net (loss) income attributable to shareholders $ (11,760) $ (0.26) $ (234,200) $ (5.30)
Slide 26: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation The Company's non-GAAP adjusted net income excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, change in fair value of contingent consideration, acquisition-related intangible amortization, other acquisition and divestitur