PayPoint plc · LSE:PAY
PayPoint — H1 2017 Earnings Presentation
51 slides from PayPoint's earnings presentation, Nov 24, 2016
Slide 1: Results for the half year ended 30 September 2016
Dominic Taylor, Chief Executive & George Earle, Finance Director 24 November 2016 Results for the half year ended 30 September 2016
Slide 2: Agenda
Agenda 2 3 5 10 One 15 and 24 29 Retail payments and services 38 Strategy 42 Results for the half year ended 30 September 2016
Slide 3: Introduction - we said we would focus on multi-channel payments
Introduction - we said we would… 3 Focus on multi-channel payments and services where we have retail networks Results for the half year ended 30 September 2016
Slide 4: We said we would reshape the business
We said we would reshape the business 4 WIP WIP Results for the half year ended 30 September 2016
Slide 5: Financial review
Financial review
Slide 6: Results in line with expectations
Results in line with expectations 6 6 £m £m Results for the half year ended 30 September 2016
Slide 7: Net revenue
Net revenue 7 £59.3m £57.9m Results for the half year ended 30 September 2016
Slide 8: Cash generation and use
Cash generation and use 8 6 6 £m £m ( ) ( ) ( ) ( ) ( ) (17.8) ( ) ( ) 1. Includes £1.7m (2015: £2.0m) of cash included in assets held for sale Results for the half year ended 30 September 2016
Slide 9: Financial review – summary
Financial review – summary 9 • • • • Results for the half year ended 30 September 2016
Slide 10: Operational review
Operational review
Slide 11: Retail Payments and Services – UK & Ireland
Retail Payments and Services – UK & Ireland 11 • • UK & retail net revenue by service • - - - - • • Results for the half year ended 30 September 2016
Slide 12: Retail Payments and Services - Romania
Retail Payments and Services - Romania 12 • • • • • • • Results for the half year ended 30 September 2016
Slide 13: Collect+
Collect+ 13 • • 30,715 • • • • • 41% 50% 9% Results for the half year ended 30 September 2016
Slide 14: Mobile
Mobile 14 • • • • • • Results for the half year ended 30 September 2016
Slide 15: PayPoint One progress
PayPoint One progress
Slide 16: The opportunity
The opportunity 16 multiple groups Symbols and independents
Slide 17: Convenience retail today
Convenience retail today 50,000 stores 37,000 independents 14,000 symbol affiliated 74% owned and operated by small business owners/ entrepreneurial first time nie investors Average annual investment SS £7,600 - independents SS _—s £110,700 - symbols ea SS —f"OS SS oOo 37% EPoS adoption in independe
Slide 18: PayPoint One overview
PayPoint One overview 18
Slide 19: How PayPoint One delivers
How PayPoint One delivers 19 2 3 4 Improve Serve customers Advanced Future proof business quickly connectivity technology efficiency
Slide 20: EPoS for all
EPoS for all . Till app Core Advanced Advanced + symbol integration Cloud access Shelf edge Stock g printing management User ; management Simple Mobile Supplier promotions product integrations Multi- scanning app Price markin irchat 9 Reporting & Business analytics intelligence Commercial [eeLeLeLE=
Slide 21: Our commercial model will reduce barriers to adoption
Our commercial model will reduce barriers to adoption 21 EPoS as an upgrade, rather than expensive stand alone purchase decision Strong differentiation through: Competitive price to retailer Unique service range Cutting edge technology Commercial model to open up EPoS access for all and encourage ma
Slide 22: Price for PayPoint One bundled services
Price for PayPoint One bundled services (announced September) 22 Hardware No upfront cost Weekly charge* New customers £20 Upgrades to EPoS Core £15* Upgrades to Till App £10* * includes services currently charged at up to £7.50 per week
Slide 23: Early positive sales progress to 24 November
Early positive sales progress to 24 November 23
Slide 24: Provides new insight
Provides new insight 24 • • • • • • • • • •
Slide 25: What the retailers think about PayPoint One
What the retailers think about PayPoint One 25
Slide 26: Summary and future developments
Summary and future developments
Slide 27: Summary and future developments
Summary and future developments 27 • • • • • • • Results for the half year ended 30 September 2016
Slide 28: Appendices
Appendices
Slide 29: Appendix 1: Materials to support the consumer transaction
Appendix 1 Materials to support the consumer transaction
Slide 30: UK Retail: Client media payment
Materials to support the consumer transaction UK Retail: Client media payment 30 Results for the half year ended 30 September 2016
Slide 31: UK Retail: Retail store
Materials to support the consumer transaction UK Retail: Retail store 31 Results for the half year ended 30 September 2016
Slide 32: UK Retail: Terminals, Pin Pads and ATMs
Materials to support the consumer transaction UK Retail: Terminals, Pin Pads and ATMs 32 Results for the half year ended 30 September 2016
Slide 33: UK Retail: PPOS virtual terminal
Materials to support the consumer transaction UK Retail: PPOS virtual terminal 33 Results for the half year ended 30 September 2016
Slide 34: UK Retail: New and developing sectors
Materials to support the consumer transaction UK Retail: New and developing sectors 34 Digital content Cash Out Results for the half year ended 30 September 2016
Slide 35: www.collectplus.co.uk
Materials to support the consumer transaction www.collectplus.co.uk 35 Results for the half year ended 30 September 2016
Slide 36: Collect+: Phone pick up barcode
Materials to support the consumer transaction Collect+: Phone pick up barcode 36 Results for the half year ended 30 September 2016
Slide 37: Collect+: UK network
Materials to support the consumer transaction Collect+: UK network 37 Results for the half year ended 30 September 2016
Slide 38: Appendix 2: Retail payments and services
Appendix 2 Retail payments and services
Slide 39: Retail Payments and Services
Retail Payments and Services 39 • • • • Results for the half year ended 30 September 2016
Slide 40: Retail Payments and Services
Retail Payments and Services 40 • • - - - - • - - - • - - - - Results for the half year ended 30 September 2016
Slide 41: Retail Payments and Services
Retail Payments and Services 41 Results for the half year ended 30 September 2016
Slide 42: Appendix 3: Strategy
Appendix 3 Strategy
Slide 43: Strategy - the world has changed and disruption is the norm
Strategy - the world has changed and disruption is the norm 43 Results for the year ended 31 March 2016
Slide 44: …and significant changes taking place on the high street
Strategy …and significant changes taking place on the high street 44 “Online shopping stealing footfall from Britain's high streets” 20 July 2015 “Boom time for the British corner shop as customers ditch the weekly trolley dash” The rise of online shopping is continuing to hurt the British 18 May 20
Slide 45: Our strategy has positioned us well
Strategy Our strategy has positioned us well 45 • • • • • • • • • • Results for the half year ended 30 September 2016
Slide 46: Strategic execution
Strategy Strategic execution 46 • • • • • • • • • • • • • • • Results for the half year ended 30 September 2016
Slide 47: Reshaping business
Strategy Reshaping business 47 • • • • • • • • •
Slide 48: PayPoint One – positions PayPoint at the centre of the store
Strategy PayPoint One – positions PayPoint at the centre of the store 48 SPS & Collect+ SPS & Collect+ Retail services Retail services Bill payments Bill payment EPoS s Results for the half year ended 30 September 2016
Slide 49: Next generation of payment systems - MultiPay
Strategy Next generation of payment systems - MultiPay 49 Customer web view Customer app view Results for the half year ended 30 September 2016
Slide 50: MultiPay
Strategy MultiPay 50 • • • Results for the half year ended 30 September 2016
Slide 51: Long term strategic vision
Strategy Long term strategic vision 51 10 year CAGR to 2016 in Net revenue of 10.4% Results for the half year ended 30 September 2016