Eml Payments Ltd. · ASX:EML
Eml Payments — Shareholder Meeting (November 2018)
39 slides from Eml Payments's shareholder meeting presentation, Nov 14, 2018
Slide 1: Annual General Meeting November 2018
Annual General Meeting November 2018
Slide 2: Important Notice
01 Important Notice This investor presentation has been prepared by EML Payments Limited Our Mission & About Us ABN 93 104 757 904 (EML) and is general background information about EML’s activities current as at the date of this presentation. This 02 information is given in summary form and does not
Slide 3: EML Mission Statement
EML MISSION STATEMENT We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. – 03
Slide 4: CON Sydney 2018 Investor Day
CON Sydney 2018 Investor Day held on 13 November Showcased EMLs technology with presentations by key partners Attended by investors, analysts, brokers, customers & partners
Slide 5: Innovative salary packaging solutions
Innovative salary Our customers’ packaging solutions. success is our success. EML enable McMillan Shakespeare, AccessPay, Paywise and Eziway to offer a tax compliant We enable our customers to product to their customers including Mobile deliver value to their customers Merchant Rewards. or employees
Slide 6: Driving loyalty and footfall
Driving loyalty Immediate access and footfall. to winnings. EML enable our customers EML enable our partners including Sportsbet, BetEasy, to deliver value and drive Ladbrokes, bet365 and NEDS to drive loyalty while revenue into their business. giving their customers instant access to their funds.
Slide 7: About Us
Annual General Meeting 2018 About Us EML snapshot Australia North America Europe APPROXIMATELY 1,200 21 CARD PROGRAMS IN COUNTRIES GROUP GDV (FY18) $6.75bn 53% Brisbane, Australia Kansas City, USA Birmingham, England Dublin, Ireland Galway, Ireland Stockholm, Sweden – 07
Slide 8: Who trusts us
Annual General Meeting 2018 About Us Who trusts us – 08
Slide 9: Product and regulatory diversification
Annual General Meeting 2018 Presentation Business modeltitle Product and A unique difference Subtitle regulatory diversification Public facing products & solutions: Non-reloadable Virtual Reloadable Mobile Merchant Mobile payments Rewards Non-public facing Information Technology Regulatory and compl
Slide 10: FY2018 Review
FY2018 Review < 2 5 ° = a > a) c (e) =
Slide 11: FY2018 Review: Gross debit volume
Annual General Meeting 2018 FY2018 Review Gross debit volume (GDV) (AUD’ millions) 8000 GROUP GDV (FY18) 7000 $6.75 billion 53% 6000 5 Year CAGR Group GDV totalled $6.75bn, 5000 an increase of 53% over the prior period. 4000 119% 3000 $3.35 billion 2000 GDV generated from 1000 Australia Europe the R
Slide 12: Not all GDV is created equal
Annual General Meeting 2018 FY2018 Review Not all GDV is created equal $2.53 Billion REPORTED UNDERLYING Underlying North American NORTH AMERICA NORTH AMERICA REGION REGION Debit Volumes A$4,932m A$846m 6.00 GDV GDV of North American GDV is generated A$39.5m A$38.3m 80bps from non-core processing on
Slide 13: Group financials - Revenue
Annual General Meeting 2018 FY 2018 Review Group financials - Revenue (AUD’ millions) $71.0m 23% 80 Group revenue for FY2018 increased by $13.1m on the prior period 70 5 Year CAGR 60 70% $65.1m Generated from recurring revenue 25% increase over the prior period, and contributing to 92% of total reve
Slide 14: Group financials - EBTDA
Annual General Meeting 2018 FY 2018 Review Group financials - EBTDA $20.8m 43% (AUD’ millions) 25 Group EBTDA for FY2018 was $20.8m, up 43% on prior period. FY2018 5 Year CAGR includes $0.3m of costs in relation to acquisitions and $0.4m of 20 accrued STIP. 247% 15 H1 H2 247% Five-year EBTDA CAGR 10
Slide 15: Group financials - Balance sheet
Annual General Meeting 2018 FY 2018 Review Group financials - Balance sheet ($’000s) FY 2017 FY 2018 % CHANGE Significant cash on balance sheet at $39.0m with no debt Cash and cash equivalents 39,872 39,006 (2%) The Group retains significant cash balances for ongoing investment in organic and inorga
Slide 16: Business Update
Business Update =—MI.. Money in Motion
Slide 17: Our history - Product & technology
Annual General Meeting 2018 Business update Our history - Product & technology EML invest in growth verticals and future opportunities through product and technology innovation. We continue to actively investigate and discover new market niches in the FinTech Industry across all regions. Although ou
Slide 18: Opening new markets via mobile payment technology
Opening new markets via mobile payment technology Apple Pay Launched in October 2018
Slide 19: New Signings & Launches
Annual General Meeting 2018 Business Update New Signings & Launches – 19
Slide 20: Our presence in malls continues to scale globally
Annual General Meeting 2018 Business Update Our presence in malls continues to scale globally 352 centres 55 centres >5m cards p.a. >3m cards p.a. 196 centres >1.5m cards p.a. EML now supports over 600 malls globally Shopping mall programs are approx. 60% of the Gift & Incentive segment GDV. Consume
Slide 21: Reloadable cards for the sports betting segment continue to scale globally
Annual General Meeting 2018 Business Update Reloadable cards for the sports betting segment continue to scale globally Australia Europe North America First customer launched in FY14 bet365 launched in FY17 Pointsbet contract announced 12 GDV run rate of >$0.5 billion GVC, betsson & Fortuna launches
Slide 22: US Gaming Opportunity
Annual General Meeting 2018 Business Update US Gaming Opportunity Following the Supreme Court decision in the USA to allow States to legalise sports wagering, activity is being undertaken across many States with a view to legalising sports wagering The speed with which each State passes these laws,
Slide 23: We have welcomed talented executives to the team
Annual General Meeting 2018 Business Update We have welcomed talented executives to the team Brandon Tom Cregan Thompson Managing Director Rob Shore Chief Rachelle St & Group Chief Group Chief Commercial Ledger Executive Officer Financial Officer Officer CEO Australia Paul Wenk Richard Jamie Andrew
Slide 24: Executive changes - New CFO Appointed
Annual General Meeting 2018 Business Update Executive changes - New CFO Appointed Bruce Stewart Rob Shore Mr. Stewart has stepped down as Group Robert Shore, currently EML’s Group Finance Chief Financial Officer to pursue private Director and Investor Relations Manager, business interests has been a
Slide 25: FY18 Board Additions
Annual General Meeting 2018 Business Update FY18 Board Additions Dr Kirstin Ferguson Melanie Wilson Dr Kirstin Ferguson is an independent non- Mrs Melanie Wilson has over 12 years executive director with 10 years’ experience experience in senior management roles across a range of company boards incl
Slide 26: Q1 FY19 Financials Update
Q1 FY19 Financials =MI.. Update Money in Motion
Slide 27: Q1 FY19 Financials Update
Annual General Meeting 2018 Q1 FY19 Financials Update Group Gross Debit Volume (GDV) Group Sources of Revenue 8% 5% 13% 94bps $1.82bn Gift & Incentive 53% up 10% 39% General Purpose Reloadable 82% up 11% Establishment Revenue Recurring Operating Revenue Virtual Account Numbers Interest Income Q1 FY1
Slide 28: Q1 FY19 Financials Update by segment
Annual General Meeting 2018 Q1 FY19 Financials Update Gift & Incentive General Purpose Reloadable (GPR) Virtual Account Numbers (VANS) GDV Revenue* GDV Revenue* GDV Revenue* $139m $9.3m $709m $6.2m $963m $1.0m $119m (Q1 FY18) $8.6m (Q1 FY18) $918m (Q1 FY18) $4.8m (Q1 FY18) $614m (Q1 FY18) $0.5m (Q1
Slide 29: FY 2019 Guidance
FY 2019 Guidance =ML.. Money in Motion
Slide 30: Financial Guidance
Annual General Meeting 2018 FY 2019 Guidance Financial Guidance The Group expects EBTDA in a range A$26 - 28m for FY19 FY19 Guidance Represents growth of 25 - 35% on pcp. Revenue $82 - $88m Assumptions: EBTDA $26 - $28m Includes contribution of major German malls customer ECE Expectation of lower GD
Slide 31: Adoption of AASB15 - Revenue standard
Annual General Meeting 2018 FY 2019 Guidance Adoption of AASB15 - Revenue standard 1% Adoption of AASB15 - Revenue (A$millions) 4% Revenue 80.0 30% AASB15 - Revenue from contracts with customers is effective for EML FY18 Sources General Purpose Reloadable from 1 July 2018 and applies to all of Reven
Slide 32: Adoption of AASB15 - Revenue standard
Annual General Meeting 2018 FY 2019 Guidance Adoption of AASB15 - Revenue standard 4% 8% 22% 37% 40% FY18 Sources FY18 Breakage of Revenue Establishment Income Revenue Derecognition $71.0m Transaction fees $26.4m AMF 51% Breakage Expiry Other (inc. interest) 38% The Group derives 37% of total revenu
Slide 33: Adoption of AASB15 - Revenue standard
Annual General Meeting 2018 FY 2019 Guidance Adoption of AASB15 - Revenue standard Lifecycle of a typical Gift Incentive Card Cardholder behaviour is consistent across the world with approx 75% of funds spent within three months Month 1 spend Breakage income will be recognised in accordance with the
Slide 34: Adoption of AASB15 - Revenue standard
Annual General Meeting 2018 FY 2019 Guidance Adoption of AASB15 - Revenue standard Seasonality has been dimishing over the past three years due to the increase in Reloadable products AASB15 leads to further reduced seasonality between our H1 & H2 reporting with no material impact on the full year re
Slide 35: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com
Slide 36: Key Data - 3 Years
Annual General Meeting 2018 Appendices Key Data - 3 Years KEY METRICS ($’000s) H1 2016A H2 2016A FY2016A H1 2017A H2 2017A FY2017A H1 2018A H2 2018A FY2018A 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths Headcount (closing) 59 150 150 168 170 170 184 182 184 Average Headcount f
Slide 37: Key Data - FY16 Pro Forma
Annual General Meeting 2018 Appendices Key Data - FY16 PRO FORMA PRO FORMA PRO FORMA PRO FORMA PRO FORMA PRO FORMA KEY FINANCIALS ($’000s) H1 2016A Adjustment H1 2016P H2 2016A Adjustment H2 2016P H1 2016P H2 2016P FY 2016P 6mnths 6mnths 6 mnths 6mnths 6mnths 6 mnths 6mnths 6mnths 12 mnths Revenue (
Slide 38: Key Data - FY17 Pro Forma
Annual General Meeting 2018 Appendices Key Data - FY17 PRO FORMA PRO FORMA PRO FORMA PRO FORMA PRO FORMA PRO FORMA KEY FINANCIALS ($’000s) H1 2017A Adjustment H1 2017P H2 2017A Adjustment H2 2017P H1 2017P H2 2017P FY 2017P 6mnths 6mnths 6 mnths 6mnths 6mnths 6 mnths 6mnths 6mnths 12 mnths Revenue (
Slide 39: Key Data - FY18 Pro Forma
Annual General Meeting 2018 Appendices Key Data - FY18 PRO FORMA PRO FORMA PRO FORMA PRO FORMA PRO FORMA PRO FORMA KEY FINANCIALS ($’000s) H1 2018A Adjustment H1 2018P H2 2018A Adjustment H2 2018P H1 2018P H2 2018P FY2018P 6mnths 6mnths 6 mnths 6mnths 6mnths 6 mnths 6mnths 6mnths 12 mnths Revenue (i