Eml Payments Ltd. · ASX:EML
Eml Payments — H1 FY2022 Earnings Presentation
44 slides from Eml Payments's earnings presentation, Feb 16, 2022
Slide 1: Investor Presentation
16 February 2022 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 INVESTOR PRESENTATION EML Payments Limited (ASX: EML) is pleased to provide investors with the following presentation. +61 (07) 3557 1100 Level 12 333 Ann Street Brisbane QLD 4000 About EML Payments EML Payments Limited EML p
Slide 2: Half Year 2022 Interim Results
16 FEBRUARY 2022 Half Year 2022 Interim Results.
Slide 3: Important Notice
Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information about EML’s activities current as at the date of this 01 presentation. This information is given in summary form and does not purport to be complete. I
Slide 4: Mission. Vision. Purpose.
EML Payments H1 FY2022 Financial Results 03 Mission. We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. Vision. Purpose. To offer customers Inspiring a feature rich, fully transformative embedded paym
Slide 5: About Us
EML Payments H1 FY2022 Financial Results 04 About Us EML is an ASX listed (ASX: EML) Payments Technology company operating proprietary processing platforms that enable Fintech disruption Group GDV1 We operate across the Globe $31.6bn Operating in 32 5 Year GDV CAGR1 75% 5 Year Underlying EBITDA1 2 C
Slide 6: Business Update
01 =MI.. Business Update Money in Motion
Slide 7: Financial Results
EML Payments H1 FY2022 Financial Results 06 Financial Results GDV Key Takeaways — Strong GDV growth (+209%) - $31.6bn 209% organically in all segments and acquisitive with the consolidation of Sentenial for 3 months from October 2021 — Strong Revenue growth UNDERLYING EBITDA2 (+20%) - in all segment
Slide 8: Malls Volumes up on Increased Foot Traffic
EML Payments H1 FY2022 Financial Results 07 Malls Volumes up on Increased Foot Traffic — GDV was up 26% on H1 FY21 — GDV up 6% on H1 FY20 (pre-COVID-19) despite the impact of Omicron on December results Nordics Canada: — Improved trading conditions — Volumes improved on both GDV across the period sa
Slide 9: Digital Payments - Sentenial Open Banking Continuing Growth
EML Payments H1 FY2022 Financial Results 08 Digital Payments - Sentenial Open Banking Continuing Growth Sentenial Key Key Wins Integration Plan Sentenial Contribution H1 FY2022 Highlights H1 FY2022 — FedEx (via Visa Cybersource) Update (consolidation from completion date of 1 October 2021) Open bank
Slide 10: H1 FY2022 Highlights
EML Payments H1 FY2022 Financial Results 09 H1 FY2022 Highlights — Strong Revenue growth — Launched Seamless - our newest (+20%) - in all segments payments portal through our partnership with Interchecks — Signed 33 new contracts — Hydrogen platform went live in July 2021 — Across Europe we launched
Slide 11: New Contracts and Program Launches
EML Payments H1 FY2022 Financial Results 10 New Contracts and Program Launches SALES PIPELINE (INCL. SENTENIAL) EML (excl. Sentenial) GPR GPR 24 45 33 TOTAL CONTRACTS 85 +$13.6bn Projected year 3-4 GDV SIGNED DP IN H1 FY22 NEW PROGRAMS IMPLEMENTED 1 IN H1 FY22 G&I DP G&I 8 9 31 439 deals GPR – 212 G
Slide 12: Digital Program Launches
EML Payments H1 FY2022 Financial Results 11 Digital Program Launches A first for the shopping mall category Coinjar are pushing the boundaries Crosspay is a British cross border in Canada, Cadillac Fairview launched of innovation with a prepaid card that payment platform adopting open a new digital
Slide 13: Earned Wage Access & Employee Wallets
EML Payments H1 FY2022 Financial Results 12 Earned Wage Access & Employee Wallets USA Enables companies to offer travel as a benefit. Offers an employee an online vacation planning & budgeting wallet. USA Leading earned wage access business allows employees to instantly access their earned wages on-
Slide 14: Fintechs launching digital solutions
EML Payments H1 FY2022 Financial Results 13 Fintechs launching digital solutions Nomo is a BaaS digital tool to control the accounting, finances and of SMEs. Nomo provides customers with an IBAN and mobile prepaid cards to allow customers to receive, make payments, and control expenses. Flexischools
Slide 15: Fintechs launching digital solutions
EML Payments H1 FY2022 Financial Results 14 Fintechs launching digital solutions MoneyMe developed proprietary tech that allows car loans to be settled within hours by both brokers and auto dealers to create Autopay. MoneyMe will extend the Freestyle line of credit product to their new incredibly fa
Slide 16: AptPay - partnering with NRT Technlogy
EML Payments H1 FY2022 Financial Results 15 AptPay - partnering with NRT Technlogy EML's first GPR program in Canada. Disbursement program catering to needs of the unbanked, challengers, nontraditional banking market, gig economy and gaming industries. AptPay enables the instant disbursement of fund
Slide 17: Innovative Partnership with PCS, France
EML Payments H1 FY2022 Financial Results 16 Innovative Partnership with PCS, France PCS launches another new product innovation with EML this year, continuing our strategic partnership to digitise cash for French citizens that are underbanked or looking at an alternate non-bank solution. 2017 2018 2
Slide 18: Legal Update
EML Payments H1 FY2022 Financial Results 17 Legal Update — On 16 December 2021 Shine Lawyers filed group proceedings in the Supreme Court of Victoria. — The proceedings allege that EML did not comply with its disclosure obligations and engaged in misleading and deceptive conduct regarding disclosure
Slide 19: We are making great progress on Accelerator
EML Payments H1 FY2022 Financial Results 18 We are making great progress on Accelerator, our 3 year strategy Digital Product Strategy Global Technology Infrastructure Nuapay open banking integration team TRACE – proprietary modern cloud based processor Investing in strategic partnerships that help m
Slide 20: Payment Portal Solution
EML Payments H1 FY2022 Financial Results 19 Launched our newest product solution, Seamless - a fully white label payments portal EML’s Newest White-Label Payment Portal Solution EML Seamless offers merchants ability to disburse funds to end users through a multitude of digital payment options seamle
Slide 21: Simple, Powerful API
EML Payments H1 FY2022 Financial Results 20 Simple, Powerful API Use our REST API to quickly enhance, Your Platform scale, and automate your payouts. Our Disbursements Portal's a la carte payment Disbursements Portal API services and 1099 compliance offering allows you to tailor your payouts to acco
Slide 22: Interchecks & Hydrogen
EML Payments H1 FY2022 Financial Results 21 Interchecks & Hydrogen A fully customisable non-card payment platform A true out-of-the-box prepaid consumer card solution powered by EML Tell us the method of payment you want — A fully customisable non-card payment — A banking and finance platform that p
Slide 23: Financial Performance.
02 =ML.. Financial Performance. Money in Motion
Slide 24: Key Financial Messages
EML Payments H1 FY2022 Financial Results 23 Key Financial Messages — GDV growth strong - up 209% — The surge in Omicron in late November — Provided $10.5m for highly likely future driven by Sentenial acquisition led to social distancing restrictions being legal costs in relation to the Group and gro
Slide 25: Financial Performance
EML Payments H1 FY2022 Financial Results ($’000s) H1 FY2021 H1 FY2022 GROWTH Financial Performance GDV TOTAL REVENUE1 10,212,313 95,329 31,558,151 114,416 209% 20% - Strong GDV and Revenue Growth Revenue conversion bps 93bps 36bps (61%) GROSS PROFIT 67,252 75,407 12% GP margin 71% 66% (5%) OVERHEAD
Slide 26: Segment Performance
EML Payments H1 FY2022 Financial Results 25 Segment Performance General General Purpose Purpose Reloadable Reloadable (GPR)Use cases - Banking as a service, Software as a service, Neo-lending, Multi-currency, Government, Non Governmental Organisations (GPR) GDV Highlights Revenue GP% Yield — Strong
Slide 27: Gross Debit Volume (GDV)
EML Payments H1 FY2022 Financial Results 26 Gross Debit Volume (GDV) General Purpose Gift & Incentive Digital Payments Reloadable (GPR) (G&I) (DP) GDV $31.6bn 209% $6.3bn $0.9bn $24.4bn 29% 21% 431% • Strong growth in GDV volumes • Significant recovery from impacts • Digital Payments now incoporates
Slide 28: Revenue
EML Payments H1 FY2022 Financial Results 27 Revenue General Purpose Gift & Incentive Digital Payments Reloadable (GPR) (G&I) (DP) Revenue 1 $114.4m 20% $69.6m $37.1m $7.7m 28% 6% 33% Revenue by Segment (A$m) • High levels of demand for our • G&I segment performed well up • Sentenial contributed $2.7
Slide 29: Gross Profit
EML Payments H1 FY2022 Financial Results 28 Gross Profit General Purpose Gift & Incentive Digital Payments Reloadable (GPR) (G&I) (DP) Gross Profit 1 $75.4m 12% $39.1m $30.0m $6.3m 15% 4% 48% Gross Profit Margin by Segment • Gross Profit margins for the GPR • Gross Profit margins for the G&I • Addit
Slide 30: Overheads
EML Payments H1 FY2022 Financial Results 29 Overheads — Underlying overheads for the Group increased 24% on PCP. — Increase primarily reflects continued investment in EMLs European operations, to implement the remediation Underlying Overheads 1 plan in response to the CBI investigation. The PFS busi
Slide 31: Underlying EBITDA
EML Payments H1 FY2022 Financial Results 30 Underlying EBITDA Underlying EBITDA 1 $26.9m 4% ON PCP 5 Year Underlying EBITDA CAGR 37% $12.7m $28.1m $26.9m $14.2m Reported EBITDA Reported EBITDA CBI Costs and Class Underlying EBITDA H1 FY21 H1 FY22 Action defence provision H1 FY22 In H1 FY2022 the Gro
Slide 32: Underlying EBITDA to Underlying NPATA
EML Payments H1 FY2022 Financial Results 31 Underlying EBITDA to Underlying NPATA 26,863 (5,603) UNDERLYING (3,580) (329) 235 (202) UNDERLYING EBITDA (4,322) NPATA $26.9m $13.1m 13,130 4% ON PCP Underlying Depreciation & Share Based Non Cash Finance Borrowing Other Income Gain on FV on Financial Tax
Slide 33: Financial Position
EML Payments H1 FY2022 Financial Results 32 Financial Position 30 June 31 December CARDHOLDER CORPORATE ($’000s) 2021 2021 GROWTH ASSETS/ LIABILITIES BALANCE SHEET Cash on hand of $86.2m. Cash reduced Cash and cash equivalents 141,228 86,175 (39%) 86,175 during the period as EML paid $27.8m Contract
Slide 34: Financial Performance – Cash Flow
EML Payments H1 FY2022 Financial Results 33 Financial Performance – Cash Flow Cash & Cash Equivalents $14.7m $86.2m Underlying Operating Cash Inflows1 H1 FY2022 Underlying Operating Cash Flow Movements $8.6m Delayed receipt of two customer receivables resulted in a cash outflow in H1 which will be c
Slide 35: FY2022 - Financial Guidance - No change to Full Year
EML Payments H1 FY2022 Financial Results 34 FY2022 - Financial Guidance - No change to Full Year Gross Debit Volume Overheads Guidance $60k Range $81bn – $88bn (No Change) $103m – $112m (No Change) $58m-$65m ~$27m $50k (FY21: $19.7b) (FY21: $76.8m) Prepaid Sentenial Prepaid Sentenial $40k $22bn - $2
Slide 36: FY2022 - Financial Guidance
EML to update EML Payments H1 FY2022 Financial Results 35 FY2022 - Financial Guidance Assumptions: 01 04 07 Uncertainty regarding G&I segment volumes is We have seen strong volumes in global GPR Overheads are tracking in line with largely resolved and we continue to assume that programs and a better
Slide 37: FY2022 Financial Guidance
EML Payments H1 FY2022 Financial Results 36 FY2022 Financial Guidance ~$14-15m Interest Rates & Stored Float Overview — EML benefits as interest rates rise due to our large Stored Value Float ~$10-11m — As at 31 December 2021, EML held an AUD equivalent of $2.7b in its stored float, $2.3b of which w
Slide 38: QSA
03 =MI.. QSA Money in Motion
Slide 39: Analyst Briefing Data
ou =MIL. Analyst Briefing Data Money in Motion
Slide 40: Analyst Briefing Data - FY2020-FY2022
EML Payments H1 FY2022 Financial Results 39 Analyst Briefing Data - FY2020-FY2022 Key Metrics ($’000s) H1 2020 H2 2020 FY 2020 H1 2021 H2 2021 FY 2021 H1 2022 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths Headcount (closing) 272 450 450 486 540 540 584 Total Stored Value (including bonds) -
Slide 41: Analyst Briefing Data - FY2020-FY2022
EML Payments H1 FY2022 Financial Results 40 Analyst Briefing Data - FY2020-FY2022 Key Financials ($’000s) H1 2020 H2 2020 FY 2020 H1 2021 H2 2021 FY 2021 H1 2022 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths General Purpose Reloadable $1,465,909 $2,768,260 $4,234,169 $4,874,500 $4,868,096 $9
Slide 42: Analyst Briefing Data - FY2020-FY2022
EML Payments H1 FY2022 Financial Results 41 Analyst Briefing Data - FY2020-FY2022 Key Financials ($’000s) H1 2020 H2 2020 FY 2020 H1 2021 H2 2021 FY 2021 H1 2022 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6 mnths Revenue (includes interest income) $59,156 $62,474 $121,630 $95,329 $98,847 $194,176
Slide 43: Analyst Briefing Data - Guidance FY2022
EML Payments H1 FY2022 Financial Results 42 Analyst Briefing Data - Guidance FY2022 EML GROUP GUIDANCE RANGE Key Financials ($’000s) FY 2021 FY2022 General Purpose Reloadable $9,742,596 Gift & Incentive $1,106,303 Virtual Account Numbers $8,829,487 GDV $ 19,678,386 $81bn - $88bn Revenue $ 194,176 $2
Slide 44: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com