Eml Payments Ltd. · ASX:EML
Eml Payments — Investor Presentation (February 2024)
24 slides from Eml Payments's investor presentation, Feb 28, 2024
Slide 1: H1FY24 Investor Presentation
28 February 2024 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 H1FY24 INVESTOR PRESENTATION EML Payments Limited (ASX: EML) is pleased to provide investors with the following H1FY24 Interim results presentation which will be presented at 10:00am AEDT by Interim Group Chief Executive Offi
Slide 2: EML 1H24 Results Presentation
EML 1H24 Results Presentation 28 February 2024 Presenters Kevin Murphy. Interim Group CEO James Georgeson. Group CFO
Slide 3: 1H24 Overview
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Slide 4: 1H24 update
1H24 update. Financial Cost Regulatory performance optimisation remediation Revenue EBITDA (underlying) Behind schedule 2H24 overhead PCSIL liquidation PFSL (UK) growth at the half, costs (ex PSCIL) $150.7m $29.3m Board driving expected to be ratified by High Court 13 February cap restriction to be
Slide 5: 1H24 Financial results
1H24 Financial results. Note: Throughout this presentation, amounts may not sum and change calculations may not equate due to rounding.
Slide 6: Key operating performance metrics
Key operating performance metrics. Unaudited Underlying Group Group — Revenue increased 30% to $150.7m in 1H24 comprised of: Change Results 1H24 1H23 — Positive recurring revenue across each of the business units GDV PCP growth $75.4bn $49.4bn 53% — Lower establishment revenue impacted by growth cap
Slide 7: Core Segment Performance: Gifting
Core Segment Performance. Gifting GDV by 1H20 to 1H24 Financial performance 1H23 to 1H24 Commentary % 1H24 — Gifting total revenue up 15% on GDV $1.2bn A$ 'm 1H24 1H23 2H23 FY23 / 1H23 1H23 with customer revenue up Customer revenue 36.0 32.9 36.9 69.8 9% 9%. $1.2bn Interest revenue 3.1 1.1 3.7 4.7 1
Slide 8: Core Segment Performance: General Purpose Reloadable
Core Segment Performance. General Purpose Reloadable GDV by 1H20 to 1H24 Financial performance 1H23 to 1H24 Commentary % 1H24 — GDV volumes 2% down on GDV $6.5bn A$ 'm 1H24 1H23 2H23 FY23 / 1H23 prior year, reflecting PCSIL $6.4bn $6.3bn deterioration. $6.4bn Customer revenue 68.2 64.1 66.2 130.3 6%
Slide 9: Core Segment Performance: Digital Payments
Core Segment Performance. Digital Payments GDV by 1H20 to 1H24 Financial performance 1H23 to 1H24 Commentary $67.7bn % 1H24 — GDV from Sentenial Direct Debit A$ 'm 1H24 1H23 2H23 FY23 / 1H23 and Open Banking Volumes GDV contributed an additional $61.1bn Customer revenue 11.8 10.2 10.7 20.9 15% $24.6
Slide 10: Underlying overheads
Underlying overheads. Underlying overheads were up 13% on a run rate basis reflecting slowing of historic growth rates; more work to do — Underlying overheads increased 25% on 1H23 (13% on 2H23) reflecting a slowing of the historic cost growth rates. Critical investments Underlying overheads1: 1H22
Slide 11: Interest returns continue to improve
Interest returns continue to improve. Interest income is a core part of our revenue mix Stored float at December 2023 Interest income ($’m) — Interest revenue has increased to $34.7m reflecting improved market rates, higher float values and result of active optimisation Other AUD 1% Group (excl PCSI
Slide 12: Cash flow
Cash flow. Underlying operating cash flow was $20.8m in the period EBITDA to Underlying Operating cash flow (A$m) — Underlying EBITDA of $29.3m generated $13.8m of net cash from operations. Key adjustments to underlying EBITDA were: — $7.0m remediation and restructuring costs paid — $5.8m of tax pai
Slide 13: 2H24 Outlook & Priorities
=MI.. 2H24 Outlook & Priorities.
Slide 14: 2H24 priorities
2H24 priorities. Remediation Cost Growth Strategic and Separation optimisation Review Work with FCA to lift current Execute H2 program and Build momentum in GTM Continued focus on growth cap on PFSL (UK) accelerate structural teams including the Sentenial and medium efficiency initiatives simplifica
Slide 15: Guidance and outlook toward FY26
Guidance and outlook toward FY26. — FY24 underlying EBITDA underpinned by: Underlying EBITDA — Dependable recurring customer revenue guidance — Interest revenue optimisation — Cost reduction activities delivering 5% to 10% (2H24 on 1H24) — Cost optimisation activities are driving both near and mediu
Slide 16: Appendix
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Slide 17: Reconciliation: Reported to underlying earnings
Reconciliation: Reported to underlying earnings. 1H24 underlying earnings reconciliation 1H23 underlying earnings reconciliation EBITDA $25.5 EBITDA ($8.7) Regulatory remediation and class action costs $1.2 Regulatory remediation and class action costs $8.5 Fraud costs - Fraud costs $8.5 Restructuri
Slide 18: Balance sheet
Balance sheet. Balance sheet Cardholder Corporate A$ 'm Dec-23 Jun-23 Change % Funds Balances Cash and cash equivalents 77.3 71.4 8% 77.3 Contract assets 62.9 63.2 (0%) 62.9 Intangibles 173.3 192.5 (10%) 173.3 Segregated funds and bond investments 2,736.7 2,576.2 6% 2,722.8 13.9 Other assets 93.3 91
Slide 19: Analyst briefing data
Analyst briefing data. Key Financials 1H23 2H23 FY23 1H24 ($’000s) 6 months 6 months 12 months 6 months Total Stored Value (including bonds) - AUD1 $2,652,636 $2,566,509 $2,566,509 $2,722,7973 Net Interest on Stored Value (incl. bonds, exc Group funds) $8,971 $23,737 $32,7082 $34,856 Effective Inter
Slide 20: Analyst briefing data
Analyst briefing data. Key Financials 1H23 2H23 FY23 1H24 ($’000s) 6 months 6 months 12 months 6 months Gifting $1,058,116 $613,076 $1,671,192 $1,169,946 GPR $6,543,731 $6,235,602 $12,779,333 $6,440,655 Digital Payments $41,787,847 $73,335,088 $115,122,935 $67,778,123 Gross debit volume (GDV) $49,38
Slide 21: Analyst briefing data
Analyst briefing data. Key Financials 1H23 2H23 FY23 1H24 ($’000s) 6 months 6 months 12 months 6 months Revenue (includes interest income) $116,210 $137,980 $254,190 $150,715 Underlying Gross profit $78,866 $95,378 $174,244 $110,949 Employee and employee-related expense ($40,799) ($40,929) ($81,728)
Slide 22: Glossary
Glossary. Abbreviation Meaning Abbreviation Meaning Abbreviation Meaning A2A Account-2-Account EBITDA Earnings Before Interest, Taxes, Depreciation PCP Prior Comparative Period and Amortisation. AASB Australian Accounting Standards Board EBITDA is equivalent to the net profit/(loss) PCSIL PFS Card S
Slide 23: Disclaimer & Important Notice
Disclaimer & 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 presentation. This information is given in summary form and does not purport to be c
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