W.a.g. Payment Solutions Plc · LSE:EWG
W.a.g. Payment Solutions — FY2023 Earnings Presentation
39 slides from W.a.g. Payment Solutions's earnings presentation, Mar 26, 2024
Slide 1: Full year results 2023
W.A.G payment solutions plc Full year results 2023 26 March 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 conference. This document, its contents and the presentation may not be copied, distributed, published, reproduced or pas
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
Slide 5: FY 2023 highlights
FY 2023 highlights Robust results; significant progress towards integrated platform FY 23 financial performance Strategic progress • Three OEM deals signed, expanding our indirect partnership Net revenue Attract • Webeye and Inelo sales teams fully integrated, one agile €256.5m sales team +34.4% YoY
Slide 6: Financial results
Financial results Oskar Zahn CFO
Slide 7: FY23 financial highlights
FY23 financial highlights Robust performance; completed intensive investment phase Net revenue Adj. EBITDA Adj. EBITDA margins €256.5m €108.7m 42.4% +34.4% / organic +14.5% +33.2% / organic +12.2% -40bps Adj. EPS Capex Net debt leverage1 6.49p €50.9m 2.9x +12.8% Of which €21.7m is our 2022: 0.1x tra
Slide 8: Strong organic growth despite challenging macro backdrop
Strong organic growth despite challenging macro backdrop Organic Organic (€m) FY 2023 FY 2022 YoY% FY 2023 YoY% • Strong net revenue growth; robust underlying performance and good contribution from Net revenue 256.5 190.9 +34.4% 218.6 +14.5% acquisitions • Organic net revenue growth of 14.5%, driven
Slide 9: Balance sheet movements following significant acquisitions
Balance sheet movements following significant acquisitions (€m) FY 2023 FY 2022 Assets Significant acquisitions and investment in subsidiaries Intangible assets 532.4 268.2 • Strengthening balance sheet with additional intangible assets +€301.0m YoY (FY22: +€22.1m) PPE 55.8 39.8 ROU asset 22.2 13.3
Slide 10: Diversifying our revenue mix
Diversifying our revenue mix (€m) Organic payment solutions Organic mobility solutions +8.8% +28.3% +14.5% +34.4% growth Note: (1) Inelo for 9 months and includes €0.3m synergies. 10
Slide 11: EBITDA growth; organic and through acquisitions
EBITDA growth; organic and through acquisitions (€m) Organic growth 42.8% 41.9% 45.2% 42.4% Margin Margin Margin Margin • 0.3% gross revenue4 +33.2% • Wage inflation €4.6m +12.2% • Bonus and senior hires €3.9m • Webeye annualisation €2.9m • Other €1.4m Notes: (1) Other operating income represents a
Slide 12: Impairment of goodwill as a result of annual test
Impairment of goodwill as a result of annual test Inelo acquisition • Consideration paid €279.0m • New product capability, Fleet Management Solutions (“FMS”) and Work-time management; key additions to our new platform • Over 600 people with tech and product experience; strengthening our talent and s
Slide 13: Record investment year; in M&A and capex
Record investment year; in M&A and capex Cash flow (€m) Operating activities Financing activities Investing activities Movement in trade and other (19.4) receivables and prepayments 7.1 Movement in inventories Movement in trade and other (32.0) payables (276.0) Inelo (8.3) Webeye (1.1) JITPay 0.2 Sa
Slide 14: Significant progress made on building our integrated platform
Significant progress made on building our integrated platform Capital expenditure (€m) Change in capex mix following acquisitions 50.9 • Transformational capex programme largely complete, within €50m cumulative guidance 43.2 • Organic ordinary capex ~9%, ex. Inelo • Inelo higher capex to net revenue
Slide 15: Medium-term financial guidance unchanged
Medium-term financial guidance unchanged Adjusted Net revenue Capex Leverage target EBITDA % FY24 • Near term, market • FY24 margin levels • FY24 c.€35m deferred headwinds expect expected to be in- consideration growth rates to be line with FY 2023 at • FY24 leverage around mid-teens % around 43% mo
Slide 16: Strategic update
Strategic update Martin Vohánka CEO and Founder
Slide 17: 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 18: Good progress made on our strategic priorities; integration and transformation
Good progress made on our strategic priorities; integration and transformation 2023+ 2017 2022 Integration and transformation Delivering industry first integrated digital platform, driving efficiency and Accumulation supporting decarbonisation Acquiring and developing a broader suite of services, wi
Slide 19: Gaining market share in our most developed markets, with further cross-sell opportunities
Gaining market share in our most developed markets, with further cross-sell opportunities Number of active payment customers Number of active payment trucks Customers taking 3 and 4 products1 28.8% Fuel card, Toll and VAT refund 39.4% Fuel card, Toll, VAT refund and Fleet Management Solutions 8.4% 6
Slide 20: Post merger integration in progress; aligning people, products and culture
Post merger integration in progress; aligning people, products and culture Integration phases Integrate key corporate Phase to start in: functions FY23 FY24 Integrate sales teams FY25 Internal systems and process integration Products available Product bundles on the new platform FY24 and FY25 Hardwa
Slide 21: Design of Eurowag's integrated end-to-end digital platform
Design of Eurowag’s integrated end-to-end digital platform To makeBusiness Customers / usercommercialTruck owner roaddriver transport Fleet clean, fair and efficient dispatcher Engage Monetise Sales channels Direct Indirect Digital Pricing Products and services Energy & Tolls Drive customer Financin
Slide 22: Consolidating customer data into one mobile and web application
Consolidating customer data into one mobile and web application mobile app today • Significant progress made in development of EW app • EW mobile app monthly users +58% yoy to 31.8k; 80% drivers • +800 stations across EU unlock fuel via app Company Driver Truck Mobile fuel Payments Fleet management
Slide 23: Digital platform roadmap, launch on track for Q4 24
Digital platform roadmap, launch on track for Q4 24 FY 2023 FY 2024 Q4 24 SOFT LAUNCH ✓ Map first customer journeys • Develop OFFICE ✓ Design digital channel touch points • Develop ✓ Prepare new business model and pricing • Test and integrate • Q2/Q3 migrate selective fuel, telematics and toll custo
Slide 24: Our new platform will unlock significant value for our customers and industry
Our new platform will unlock significant value for our customers and industry Continue to grow With new capabilities Efficiency Cashflow Revenue Carbon and convenience improvements improvements reduction Today: Financing: Loads: Decarbonisation: cost savings working capital improved fleet utilisatio
Slide 25: Delivering on our promise; to make the CRT industry clean, efficient and fair
Delivering on our promise; to make the CRT industry clean, efficient and fair Our sustainability strategy Making the industry clean and efficient… • Direct GHG emissions1: down 11% from baseline 20192 2030 Targets Climate action • Customers’ GHG emissions: down 0.5% from baseline year 2019 • 50% red
Slide 26: FY23 summary and FY24 priorities
FY 23 summary Priorities for FY 24 FY23 summary and FY 24 priorities Continued integration of acquired Delivered double-digit organic growth, despite the businesses, extract synergies macroeconomic headwinds through cross-sell opportunities Successful soft launch of platform Q4 24 Good progress on b
Slide 27: Q&A Contact us for further details
Q&A Contact us for further details investors@eurowag.com investors@eurowag.com
Slide 28: Appendix
Appendix
Slide 29: 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 30: Alternative measures
Alternative measures Adjusted Adjusting FY 2023 Adjusted Adjusting FY 2022 items Items (€m) (€m) (€m) (€m) (€m) (€m) Net revenue 256.5 - 256.5 190.9 - 190.9 EBITDA 108.7 78.9 29.8 81.6 18.5 63.1 EBITDA margin (%) 42.4% - - 42.8% - - Depreciation, amortisation and (40.4) 17.1 (57.5) (22.0) 8.4 (30.4)
Slide 31: Adjusting items
Adjusting items Adjusting items Adjusted EBITDA reconciliation FY 2023 FY2022 FY 2023 FY2022 (€m) (€m) (€m) (€m) M&A related expenses 4.4 8.0 Intangible assets amortisation 43.4 22.2 Strategic transformation expenses 7.1 5.2 Tangible assets depreciation 8.9 4.8 Share-based compensation 6.5 5.3 Right
Slide 32: Strong growth through organic and inorganic investment
Strong growth through organic and inorganic investment Net revenue (€m) Adjusted EBITDA (€m) 45.6 45.5 42.8 42.4 Margin (%) CAGR: 25.9% 34.4% Organic 14.5% CAGR: 22.9% 33.2% 256.5 Organic 12.2% 190.9 109.5 95.6% 153.1 Org. 28.3% 56.0 128.6 40.1 108.7 34.5 9.0% 81.6 147.0 69.7 134.8 58.6 113.1 94.1 2
Slide 33: Strong cash flow conversion, stable working capital
Strong cash flow conversion, stable working capital Adj. operating cash flow conversion excl. working capital1 Working capital movement (€m) 78% 88% 96% 79% 89% 83% 500 10% 400 8% 300 6% 200 4% 100 2% 0 0% (100) -2% (200) -4% (300) -6% (400) -8% (500) -10% FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Slide 34: Net debt increase driven by acquisitions and business transformation investment
Net debt increase driven by acquisitions and business transformation investment (€m) Net 0.1x 83% 2.9x Leverage(1) cash Liquidity €381m conversion5 €188.1m Headroom(2) Notes: (1) Net leverage covenant calculation as per bank definition, considering GROUP Adjusted EBITDA for the last twelve months. N
Slide 35: Finance facilities maturing 2027
Finance facilities maturing 2027 Club finance credit facilities matures 2027 • Facility A of €150m Committed debt amortisation profile • Facility B of €180m • 235m revolving facility, of which €85 may be used revolving loans, €150m as bank €358m guarantees or letters of credit and €25m as overdraft.
Slide 36: Creation of an industry-unique data platform
Creation of an industry-unique data platform Truck Truck, trailer, routing, information position, utilisation etc Social, behaviour, Driver compliance, etc • Industry first data platform information • Data covers every touch point for a customer journey Toll, tax refund, • Supporting the digitisatio
Slide 37: 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 38: Net revenue geographical split
Net revenue geographical split Southern Cluster Central Cluster 3% Czech Republic 15% Poland 24% Other Central Cluster 15% 19% Portugal 24% 24% 15% Other Western Cluster 15% 14% Romania 6% 14% Other Southern Cluster 4% 11% 5% 5% Not specified Western Cluster 38
Slide 39: Our unique suite of services and our customer's journey
Our unique suite of services and our customer’s journey 39
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