Tyro Payments Ltd. · ASX:TYR
Tyro Payments — H1 FY20 Earnings Presentation
27 slides from Tyro Payments's earnings presentation, Feb 20, 2020
Slide 1: ASX Release: Financial Results for Half-Year Ended 31 December 2019
ASX Release FINANCIAL RESULTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2019 - INVESTOR PRESENTATION Sydney, 20 February 2020, Tyro Payments Limited (Tyro) today released its H1 FY20 Investor Presentation regarding Tyro’s half-year results ended 31 December 2019. The information contained in this announce
Slide 2: H1 FY20 Investor Presentation
H1 FY20 INVESTOR PRESENTATION 20 FEBRUARY 2020 Tyro Payments Limited ABN 49 103 575 042
Slide 3: Setting businesses free to get on with business
Setting businesses free to get on with business by simplifying payments + banking solutions 2
Slide 4: The Tyro Ecosystem
The Tyro Ecosystem • Integrated ecosystem with payments at our core • Enhanced by value-adding features and products Current NPS Score of 45 • Designed to attract new merchants and retain existing merchants 99.99% availability of core acquiring platform Tyro Highly trained in-house team servicing me
Slide 5: Results Highlights - H1 FY20
Transaction Value ($’billion) 30% Results Highlights - H1 FY20 H1 FY15-H1 FY20 CAGR +27% $11.1b $8.5b Strong Financial Performance $5.3b $6.5b $4.3b $3.4b • 30% increase on pcp in transaction value to $11.1 billion • 23% increase on pcp in merchants to 32,450 • 28% increase on pcp in revenue to $117
Slide 6: Results in Overview
Results in Overview • Revenue h 28.4% • Gross Profit h 21.3% • EBITDA h 149.5% • Operating Leverage COMMENTARY H1 FY20 H1 FY19 GROWTH PAYMENTS BUSINESS H1 FY20 H1 FY19 GROWTH $’000 $’000 % PERFORMANCE $’000 $’000 % Payments revenue and income 113,604 88,123 p 28.9% Revenue 113,604 88,123 p 28.9% Len
Slide 7: Tracking to IPO Pro Forma Forecast
Tracking to IPO Pro Forma Forecast FY20 Full-year Pro Key Operating Metric forma Forecast1 Actual H1 FY20 Transaction value2 $22.5 billion $11.1 billion Payments revenue and income2 $233.7 million $113.6 million Payments gross profit2 $93.4 million $46.8 million Number of merchants2 36,000 32,450 Nu
Slide 8: Payments - Operational Highlights
Payments - Operational Highlights H1 FY20 $’000 H1 FY19 $’000 GROWTH % Transaction value 11,064,972 8,534,297 p 29.7% Strong transaction value growth Revenue 113,604 88,123 p 28.9% • Transaction value of $11.1 billion up 30% (H1 FY19: $8.5 billion) Gross Profit 46,825COMMENTARY 38,328 p 22.2% • Tran
Slide 9: Payments - Operational Highlights (continued)
Payments - Operational Highlights (continued) Focus on core verticals - delivering out-performance Merchant count and transaction value by vertical - H1 FY20 • Core Health, Hospitality and Retail verticals - 85% of merchants - 91% of transaction value Merchant 26% 33% 27% 14% • Hospitality vertical
Slide 10: Banking - Operational Highlights
Banking - Operational Highlights H1 FY20 $’000 H1 FY19 $’000 GROWTH % Loan Originations 37,407 20,569 p 81.9% Tyro Business Loan Revenue 2,570 1,505 p 70.8% • $37.4 million in loan originations Gross Profit 2,349 COMMENTARY 1,406 p 67.1% • Average loan size of $31,500 (H1 FY19: $33,700) Gross Profit
Slide 11: Banking - Operational Highlights (continued)
Banking - Operational Highlights (continued) Value-adding Banking Products Tyro Business Loan Tyro Bank Account Tyro Term Deposit Merchant Cash Advance Deposit Account Term-Deposit Account • An unsecured merchant cash advance designed to help • A fee-free, interest-bearing transaction account • Pilo
Slide 12: Banking - Operational Highlights (continued)
Banking - Operational Highlights (continued) We are scaling our Banking products to our entire merchant base • All 32,450 of Tyro’s merchants can now check their eligibility for a loan through the Tyro App (compared to ~7,500 merchants in prior periods) • A credit team review can be conducted if eli
Slide 13: Overview of H1 FY20 Financial Performance
OVERVIEW OF H1 FY20 FINANCIAL PERFORMANCE Tyro Payments Limited ABN 49 103 575 042
Slide 14: Financial Performance - P&L
Financial Performance - P&L H1 FY20 H1 FY19 Growth Strong cost control - delivers positive EBITDA $’000 $’000 % Transaction value 11,064,972 8,534,297 p 29.7% • Total operating expenses up 9.7% against revenue growth of 28.4% - operating leverage Payments revenue and income 113,604 88,123 p 28.9% •
Slide 15: Operating Metrics
Operating Metrics Operating Metrics as a % of Transaction Value 1.0000% 0.9418% 0.9350% 0.9500% 0.9138% 0.9133% 0.9118% • MSF reflects: 0.9000% 0.8654% • Targeting larger Merchants - 0.8500% pricing on an incremental profit 0.8000% basis 0.7500% • Gradual increase in debit card mix 0.7000% • Exclude
Slide 16: Financial Position
Financial Position DECEMBER 2019 JUNE 2019 $’000 $’000 Strong balance sheet will underwrite continued growth ASSETS Cash1 140,254 31,810 Impact of the IPO Loans to merchants 18,048 15,665 • Increase in contributed equity $120.1m - primary offer of Other current assets 40,663 29,765 $125.0m less capi
Slide 17: Liquidity & Capital Adequacy
Liquidity & Capital Adequacy $179m Total Capital Ratio increased to 145% • IPO capital raised in December 2019 145% Total risk weighted assets increased by $37m • Investments of funds raised from IPO $123m 107% • Growing lending balance 89% • Increases in receivables $89m • Other assets held under A
Slide 18: Cash Flow Analysis
Cash Flow Analysis H1 FY20 H1 FY19 $’000 $’000 Loss after tax (19,246) (7,667) Operating cash flows: Non-cash items 10,960 4,278 Net operating outflow before banking of $22.3 million is principally driven by: Change in working capital (13,983) (12,855) • Cash spend of $7.5 million relating to IPO co
Slide 19: Trading Update
>» A . + TRADING UPDATE
Slide 20: Trading Update
TRADING UPDATE1 Momentum continuing into January 2020 Payments business: • Transaction value YTD $12.9 billion, up 29% on pcp • Revenue YTD $132.7 million, up 28% on pcp • Gross Profit YTD $55.0 million, up 23% on pcp Banking business: • Loan originations YTD $43.8 million, up 75% ($25.0 million in
Slide 21: Our Growth Strategy
Our Growth Strategy CONTINUE TO GROW IN EXISTING VERTICALS IN ADD NEW CORE VERTICALS DRIVE EXPANSION INTO AUSTRALIA • Enter into the Accommodation and Services ECOMMERCE AND OTHER • Estimated $171 billion Health, Hospitality and Retail SME verticals PAYMENT TYPES payments market of which we only hav
Slide 22: Supplementary Materials
SUPPLEMENTARY MATERIALS 21
Slide 23: Attachment 1 - Our Competitive Strengths
Attachment 1 - 1. Software-led approach to payments, based on a core proprietary technology Our Competitive Strengths platform 6. A values-led and talented team 2. Seamless direct integration with a significant number of POS systems 5. Focus on providing best- in-class service to tens of 3. A focus
Slide 24: Attachment 2 - Capturing Card-Present Terminal Market Share
Attachment 2 - Capturing Card-Present Terminal Market Share Number of terminals by banks and other providers in Australia (‘000) - as at 30 June 2019 (updated for Tyro terminals at 31 December 2019) CAGR (30 June 2014 — 30 June 2019) • 58,993 terminals at 31 December 2019 - up 26% from (2%) (3%) 3%
Slide 25: Attachment 3 - Capturing Market Share in Growing Total Addressable Market
Attachment 3 - Capturing Market Share in Growing Total Addressable Market Annual transaction value of card payments acquired in Australia1 ($ billion) - Tyro’s estimated market share of total card payments acquired in Australia - as at 30 June 2019 as at 31 December 2019 4.0% 3.5% 3.2% 3.0% 2.7% $65
Slide 26: Disclaimer
Disclaimer The material in this presentation is general background information about Tyro Payments Limited (Tyro) and is current at the date of the presentation, 20 February 2020. The information in the presentation is given for informational purposes only, is in summary form and does not purport to
Slide 27: Investor Relations contact details
Investor Relations contact details: Giovanni Rizzo Phone: +61 (0) 439 775 030 Email: grizzo@tyro.com Address: 1/155 Clarence St, Sydney NSW 2000 Company website: tyro.com