Austriacard Holdings Ag · ATHEX:ACAG
Austriacard — FY2023 Earnings Presentation
32 slides from Austriacard's earnings presentation, Mar 21, 2024
Slide 1: AUSTRIACARD Holdings AG Corporate Presentation FY 2023 Financial Results
AUSTRIACARD HOLDINGS AG CORPORATE PRESENTATION FY 2023 FINANCIAL RESULTS MARCH 21, 2024
Slide 2: Our Vision
OUR VISION Through our resilience & innovation, we aim for an authentic world. At the heart of our business is the desire to do right for people and the planet, to help build an authentic world for everyone. It’s in our DNA to constantly adapt and to be there for society, from this generation to the
Slide 3: Contents
CONTENTS 1 AUSTRIACARD Group Overview 2 FY2023 Performance 3 Industry Overview & Market Trends 4 Appendix
Slide 4: Overview
Technology company active in secure chip & payment solutions, digital transformation technologies, document lifecycle management. Started as specialty printer 127 years ago in Greece; post acquisition of AUSTRIACARD in 2007 and other businesses in recent years, is now a Vienna HQ diversified group. O
Slide 5: Key Group Figures
KEY GROUP FIGURES Adj. Revenue Adj. EBITDA Adj. Net Income (Adjusted for IAS 29 Hyperinflation) €351.3mn €49.3mn €17.0 mn 12M 2023 12M 2023 12M 2023 Net Debt Employees NET DEBT / Adj. EBIDTA €95.0mn 2,739 1.9X 12M 2023 12M 2023 FY 2023 5
Slide 6: Key Milestones
KEY MILESTONES 1897-2024 2015 Commercial launch 2007 of Austrian 2021 digital wallet solu- tion - Acquisition of Acquisition of NITECREST UK Austria Card GmbH 2019 - Acquisition of 2024 Cloudfin 1994 - Acquisition of Acquisition of 2013 TAG SYSTEMS LSTech UK Listing of INFORM P. LYKOS Acquisition of
Slide 7: Operational Footprint
OPERATIONAL FOOTPRINT USA Norway OPERATING FACILITIES IN 9 COUNTRIES UK UK, Andorra, Spain, Austria, Germany Poland Poland, Romania, Greece, Türkiye, US AUSTRIA Czech Republic Romania Croatia Serbia Andorra Spain Greece Türkiye SALES OFFICES Jordan Norway, Czech Republic, Germany, Croatia, Serbia, J
Slide 8: Growth Strategy
GROWTH STRATEGY 1 2 GEOGRAPHIC & MARKET PRODUCTS & SERVICES SHARE EXPANSION PORTFOLIO ENHANCEMENT • New focus markets: US, UK, MEA • Payment and Banking solutions as a service • Cross-selling and up-selling to existing clients • Product Innovation: Biometric, metal cards • Continued leadership in sp
Slide 9: Solid M&A Track Record
SOLID M&A TRACK RECORD EXPANDING OUR PRODUCT OFFERING & GEOGRAPHIC FOOTPRINT > Following the transformative acquisition of AUSTRIACARD in 2007, the Group has proceeded to further accretive acquisitions, expanding its geographic reach and solutions portfolio Company Country Date Description Added enh
Slide 10: Our Solutions Portfolio
OUR SOLUTIONS PORTFOLIO DIGITALIZATION, SECURE CHIP & PAYMENT SOLUTIONS, DOCUMENT LIFECYCLE MANAGEMENT Digital Transformation Secure Chip Document Lifecycle Technologies & Payment Solutions Management Business Intelligence Secure Smart Cards Digital Printing & Intelligent Data Fabric Artificial Inte
Slide 11: FY2023 Performance
CONTENTS 1 AUSTRIACARD Group Overview 2 FY2023 Performance 3 Industry Overview & Market Trends 4 Appendix
Slide 12: Effect of IAS 29 (Hyperinflation)
EFFECT OF IAS 29 (HYPERINFLATION) The application of IAS 29 (Hyperinflation) with respect to our Türkiye-based operations, together with share option plan and FX effects, led Reported FY2023 Results to differ from Management FY2023 Results, which are used by the Company to monitor its performance. I
Slide 13: FY2023 Results
FY2023 RESULTS STRONG GROWTH AND PROFITABILITY UPLIFT ADJ. REVENUES ADJ. EBITDA & MARGIN Amounts in € mn Amounts in € mn Revenue increased by 13.2% in FY 2023 due to the strong growth in: Adjusted EBITDA increased by 27.2% for a margin of 14.0% due to the: • Payment cards in CE Europe and Türkiye •
Slide 14: FY 2023 Geographic Segments Performance
FY 2023 GEOGRAPHIC SEGMENTS PERFORMANCE WESTERN EUROPE, CENTRAL EASTERN TURKIYE, MIDDLE EAST NORDICS, AMERICA EUROPE & DACH & AFRICA +35.2% -3.0% -0.6% 116.6 224.6 116.0 55.3 53.7 166.1 +166.8% -11.7% -44.8% 9.0 30.3 4.9 11.4 20.3 17.9 Amounts in € m 2022 2023 2022 2023 2022 2023 Adj. Revenues Adj.
Slide 15: Working Capital Evolution & Effect of Covid in Inventories
WORKING CAPITAL EVOLUTION & EFFECT OF COVID IN INVENTORIES Supply chain disruptions during Covid led to severe semiconductor shortage, reflected in ACAG’s abnormally low 2022 inventory level In 2023 semiconductor supply was normalized reflected in the W/C percentage of revenues 15
Slide 16: Low Leverage Enhanced Dividend
LOW LEVERAGE ENHANCED DIVIDEND 100.0 3.9X 4.5 90.0 4.0 80.0 3.5 70.0 2.8X 3.0 60.0 2.0X 2.5 50.0 1.9X 2.0 40.0 1.5 30.0 0.100 20.0 1.0 10.0 0.5 57.8 85.1 76.6 95.0 0.0 0.0 0.025 2020 2021 2022 2023 2022 2023 Net Debt Net Debt/Adj. EBITDA (X) Dividends/Share Amounts in € Following leverage increase t
Slide 17: 2018-23 KPIs
2018-23 KPIS: RAPIDLY GROWING ADJ. REVENUES, ADJ. EBITDA, NET INCOME (€ mn) ADJ. REVENUES ADJ. NET INCOME ADJ. EBITDA ADJ. EBITDA MARGIN Source: Group’s financial statements 17
Slide 18: AUSTRIACARD Performance Since Initial Listing
AUSTRIACARD PERFORMANCE SINCE INITIAL LISTING OF INFORM LYKOS (€ mn) Performance of Revenues 35X and EBITDA 21X since the Group’s initial listing 18
Slide 19: AUSTRIACARD Shares
AUSTRIACARD SHARES ACAG SHARE PRICE • DUAL LISTING: VIENNA & ATHENS EXCHANGES • SECTOR: TECHNOLOGY • SYMBOL: ACAG • BLOOMBERG: ACAG GA, ACAG AV • REUTERS: ACAGr.AT, ACAG.V • COMMENCEMENT OF TRADING: MARCH 23, 2023. • NUMBERS OF SHARES: 36,353,868 • MARKET CAP (19/3/24): ~€237 mn SHAREHOLDERS EV/ADJ.
Slide 20: Key Investment Considerations
KEY INVESTMENT CONSIDERATIONS 1 2 3 ACAG trading at 6.6 X EV/ Strong track record of Active in growing markets, Adj. EBITDA, while most of fast growing revenues with payment systems its business is technology combined with margin expanding exponentially related expansion 4 5 Aggressively present in
Slide 21: Industry Overview & Market Trends
CONTENTS 1 AUSTRIACARD Group Overview 2 FY2023 Performance 3 Industry Overview & Market Trends 4 Appendix
Slide 22: Payment Card Business Expansion Continues Unabated
INDUSTRY OVERVIEW & MARKET TRENDS PAYMENT CARD BUSINESS EXPANSION CONTINUES UNABATED VISA cards outstanding (bn) MASTERCARD cards outstanding (bn) MASTERCARD cards outstanding (bn) 3.4 CAGR+5.0% CAGR+5.2% 3.2 3.0 2.8 2.6 2.4 2.2 2.0 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Transaction
Slide 23: Visa & Mastercard Share Price Performance
INDUSTRY OVERVIEW & MARKET TRENDS VISA & MASTERCARD SHARE PRICE PERFORMANCE VISA share price evolution since 2017 ($) MASTERCARD share price evolution since 2017 ($) Judging from the share price performance of Visa and Mastercard, the market believes that payment cards will continue being the domina
Slide 24: Fintech: Challenger Banks
INDUSTRY OVERVIEW & MARKET TRENDS FINTECH: CHALLENGER BANKS GLOBAL CHALLENGER BANKS REVENUES TOP 10 CHALLENGER BANKS IN 2023 Amounts in $ bn BASED ON LATEST VALUATION Amounts in $ bn GROUP’S CLIENT CAGR 278.8 46.5% 41.5 33 25 21 17.3 17.1 12.3 12.1 28.3 6.2 4.5 2021 2022 2023 2024 2025 2026 2027 202
Slide 25: ACAG Is the Leader in Smart Cards for Fintech in Europe
INDUSTRY OVERVIEW & MARKET TRENDS ACAG IS THE LEADER IN SMART CARDS FOR FINTECH IN EUROPE, AND GROWING IN NORTH AMERICA EUROPE NORTH AMERICA • Number of Challenger Bank cards issued in • Number of Challenger Bank cards issued in Europe in 2023: 62.5 million (From zero in 2017) North America in 2023:
Slide 26: Digital Transformation Market
INDUSTRY OVERVIEW & MARKET TRENDS DIGITAL TRANSFORMATION MARKET GLOBAL GREECE Amounts in $ bn 450 digital transformation projects DRIVERS for the period 2021-2026 supported by CAGR €6.4 billion of EU Recovery Fund Money 21.0% • Rising adoption of big data • Demand for tools combining several heterog
Slide 27: Appendix
CONTENTS 1 AUSTRIACARD Group Overview 2 FY2023 Performance 3 Industry Overview & Market Trends Appendix 4 Historical Financial Statements / Management
Slide 28: Group's Historical Financial Statements: Consolidated Balance Sheet
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET 31.12.2021 = 01.01.2022 Amounts in € thousands 31/12/2023 30/9/2023 30/6/2023 31.3.2023 31.12.2022 restated restated 31.12.2020 31.12.2019 Assets Property, plant and equipment and right of use assets 96,275 93,801 93,144 91,291 90,41
Slide 29: Group's Historical Financial Statements: Consolidated Income Statement
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT Q4 2023 Q4 2022 1-12 2023 1-12 2022 Q3 2023 Q3 2022 1-9 2023 1-9 2022 Q2 2023 Q2 2022 H1 2023 H1 2022 Q1 2023 Q1 2022 FY 2022 FY 2021 Amounts in € thousands restated restated restated restated restated restated restated Revenue 10
Slide 30: Group's Historical Financial Statements: Consolidated Cash Flow Statement
GROUP’S HISTORICAL FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW STATEMENT 01.01- 01.01- 01.01- 01.01- 01.01- 01.01- 01.01.- 01.01.- 01.01.- 31.12.2023 31.12.2022 30.09.2023 30.09.2022 30.06.2023 30.06.2022 31.3.2023 31.3.2022 31.12.2022 Amounts in € thousands restated restated Cash flows from operati
Slide 31: Highly Experienced Management Team
HIGHLY EXPERIENCED MANAGEMENT TEAM AN INTERNATIONAL TEAM WITH DEEP & COMPLEMENTARY EXPERIENCE Nikolaos Lykos Manolis Kontos Markus Kirchmayr Jon Neeraas Burak Bilge Dimitris Tzelepis Dr. Mohamed Chemloul Chairman of the Group CEO Group Chief EVP Western Europe, EVP Türkiye, Middle East Executive Dir
Slide 32: Disclaimer
DISCLAIMER This presentation is made by AUSTRIACARD (the “Company”) for you as This presentation contains forward-looking statements, which involve intended recipient and is strictly confidential. It is furnished to you solely risks and uncertainties. These statements may be identified by words for