Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation November 8, 2024
Slide 2: Disclaimers: Forward Looking Statements
Disclaimers 2 Forward Looking Statements This presentation contains forward - looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although CompoSecure believes that its plans, intentions, and
Slide 3: Executive Summary
Executive Summary Revised guidance for f ull y ear 2024 Net Sales expected to be in the range of $ 418 mm to $ 424 mm a nd Adjusted EBITDA of $148mm to $151mm Dave Cote’s Resolute Holdings acquired majority interest; Dave appointed executive chairman and we added new board members; impact eliminated
Slide 4: 2024 Company Objectives
2024 Company Objectives Grow and diversify metal payment cards while delivering exceptional quality to our customers Innovate across products, processes and platforms to differentiate from competition and continue emphasis on environmental impact Drive Arculus Authenticate and Cold Storage by demons
Slide 5: Key Highlights – New Metal Card Programs
Key Highlights – New Metal Card Programs Goldman Sachs Debit - US Qonto - France Military Bank - Vietnam HSBC - Singapore US Bank Smartly - US BTG - Brazil IDFC - India 5 Several high - profile metal payment card launches across the globe including both traditional banks and fintechs
Slide 6: Recent Trends across Payment Cards
Recent Trends across Payment Cards 1 American Express & JP Morgan Chase Earnings Presentations 2 American Express Earnings Presentations Year over Year Purchase Volume Growth 1 American Express New Card Acquisitions and Investment 2 - 32% - 6% 30% 4% 51% 13% 7% -35% -15% 5% 25% 45% 65% Q1 '20 Q2 '20
Slide 7: Card Issuer and Payment Network Sentiment
Card Issuer and Payment Network Sentiment 1 Q3 ‘24 Earnings Transcripts “ And we continue to see strong demand for our products as we bring new customers into the franchise with new cards acquired of 3.3 million in the quarter. Our strong acquisition and retention levels, along with our ongoing cycl
Slide 8: Metal card benefits for cardholders and issuers
Cardholders Issuers Elevated, Premium Experience • Metal cards instill feelings of quality, durability, exclusivity, and status Consumers Prefer Metal Cards Over Plastic • Superior tactile experience • Global surveys indicate consumer preference for metal Entrenched Preference for Physical Payment C
Slide 9: Differentiated Capabilities
Differentiated Capabilities ▪ Key manufacturing equipment heavily customized to enable proprietary processes ▪ Vast industry experience across the leadership team and entire organization to collaborate closely with clients and drive innovation ▪ Extensive trade secrets in metal card printing, propri
Slide 10: Arculus Capabilities
Arculus Capabilities Arculus Authenticate Arculus Cold Storage Hardware - bound PassKey authenticator • Secure login on any iPhone, Android phone, or platform enabled with FIDO2 technology • New device authentication (on - boarding new phone) • Customer support authentication to call center • Step -
Slide 11: Financial Overview
Financial Overview 11
Slide 12: Q3 2024 Net Sales and Gross Profit
$49 $55 Q3 2023 Q3 2024 $13 $27 Q3 2023 Q3 2024 $84 $80 Q3 2023 Q3 2024 $97 $107 Q3 2023 Q3 2024 Q3 2024 12 Total Net Sales » Lower in quarter but expected to rebound in Q4 » Strong performance from both traditional financial institutions and fintech » Momentum from new product innovation ( Trade Re
Slide 13: Q3 2024 Adjusted EBITDA, Net Income and EPS
$0.24 $0.27 Q3 2023 Q3 2024 36.7% 37.3% Q3 2023 Q3 2024 $36 $40 Q3 2023 Q3 2024 $22 $26 Q3 2023 Q3 2024 Q3 2024 13 Adjusted EBITDA 1 » Improved efficiencies and spend management » Includes net impact from Arculus investment in Q3 ‘24 of ($2.4mm) vs. Q3 ‘23 of ($3.1mm) » Adjusts out $108mm of non - c
Slide 14: YTD September 2024 Net Sales and Gross Profit
53.7% 52.1% YTD Sept '23 YTD Sept '24 $156 $167 YTD Sept '23 YTD Sept '24 $55 $62 YTD Sept '23 YTD Sept '24 $236 $258 YTD Sept '23 YTD Sept '24 $291 $320 YTD Sept '23 YTD Sept '24 YTD Sept 2024 14 Total Net Sales » Strong performance from large traditional bank issuers » Expansion of existing client
Slide 15: YTD September 2024 Adjusted EBITDA and EPS
$0.72 $0.80 YTD Sept '23 YTD Sept '24 $65 $74 YTD Sept '23 YTD Sept '24 37.1% 36.8% YTD Sept '23 YTD Sept '24 $108 $118 YTD Sept '23 YTD Sept '24 YTD Sept 2024 15 » Impact from lower production efficiencies » Includes net impact from Arculus investment YTD Q3 ‘24 of ($6.5mm) vs. YTD Q3 ‘23 of ($11.8
Slide 16: Q4 and Full Year 2024 Guidance
Net Sales Adjusted EBITDA 2 $98mm - $104mm $30mm - $33mm $418mm - $424mm $148mm - $151mm 2024F +$ 27 mm / +$33mm +3mm / +$6mm B/(W) vs. ‘23 B/(W) vs. ‘23 +7% / + 9 % +2% / +4% Q4F 2024 Guidance Revised full year Net Sales and Adjusted EBITDA guidance 1 1 Previous guidance was Net Sales of $418mm - $
Slide 17: Balance Sheet (Unaudited)
Balance Sheet (Unaudited) Source: Company financials Note: Financial position has been derived from CompoSecure’s consolidated financial statements for the quarters ended Septemb er 30, 2024 and December 31, 2023 respectively Q4 2023A Q3 2024A ($mm) Assets Current Assets $41 $53 Cash & cash equivale
Slide 18: Statement of Cash Flows (Unaudited)
Statement of Cash Flows (Unaudited) Source: Company financials Note: Cash flows have been derived from CompoSecure’s consolidated financial statements for the nine months ended September 3 0, 2024 and 2023 respectively YTD Q3 '23A YTD Q3 '24A ($mm) Cash flows from operating activities $81 ($35) Net
Slide 19: Early Expectations for 2025
Early Expectations for 2025 Stable supply chain conditions with typical variability in material pricing and continued diversification of sources Positive sentiment of payment card industry, long - term contracts with largest customers, strong backlog, and visibility into sales pipeline provide confi
Slide 20: Key Takeaways
Key Takeaways Arculus net investment trending favorably and remains on track to turn profitable in 2025 Delivered strong results on both the top and bottom line driven by international performance and consistent sales execution Customers reporting sustained growth and commitment to ongoing marketing
Slide 21: Investor Relations Contact
Investor Relations Contact ir.composecure.com Sean Mansouri 720 - 330 - 2829 ir@composecure.com 21
Slide 22: Appendix
Appendix 22
Slide 23: Summary Equity Capitalization Table
CompoSecure , Inc. (Nasdaq: CMPO) Summary Equity Capitalization Table (with net exercise model) As of September 30, 2024 # of Shares Issued & Outstanding # of Shares Issued & Outstanding Holders 82.7mm 82.7mm Public Shareholders: Class A # of Shares Reserved for Immediately Exercisable In - The - Mo
Slide 24: Statement of Operations (Unaudited)
Statement of Operations (Unaudited) Source: Company financials Note: Operating results have been derived from CompoSecure’s consolidated financial statements for the three and nine months end ed September 30, 2024 and 2023 respectively Note: Totals may not sum due to rounding 1 Includes other income
Slide 25: Non-GAAP Adjusted EBITDA Reconciliation
Non - GAAP Adjusted EBITDA Reconciliation (Unaudited) Source: Company financials Non - Cash Equity Awards : Equity based expenses related to the equity incentive plan Non - Cash Mark - to - Market Adjustments : Related to changes in fair value of liabilities for warrants, earnouts and derivatives as
Slide 26: Q3 Earnings per Share: GAAP
Q 3 Earnings per Share: GAAP 38 . 2 mm 3 Basic Q2 YTD ‘22 GAAP Net Income (Loss) ( $ 85 . 5 mm ) ( $ 1 . 10) ( $ 42 . 1 mm ) 1 Three Months Ended Sep 30, 2024 ( $ 85 . 5 mm ) ( $ 42 . 1 mm ) 2 38 . 2 mm 4 ( $ 1 . 10) $ 38 . 1 mm $3 8 . 1 mm $ 7 . 5 mm $1 2 . 3 mm 1 9 . 1 mm 35. 8 mm $0.3 9 $0. 34 Ne
Slide 27: Q3 Adjusted Earnings per Share
Q 3 Adjusted Earnings per Share 8 2 .2mm 3 Basic Q2 YTD ‘22 GAAP Net Income (Loss) ( $ 85 . 5 mm ) $0.31 $25. 6 mm 1 Three Months Ended Sep 30, 2024 Three Months Ended Sep 30, 2023 ( $ 85 . 5 mm ) $25. 6 mm 1 9 3 . 9 mm 4 $0.27 $3 8 . 1 mm $3 8 . 1 mm $2 1 . 7 mm 2 $2 1 . 7 mm 2 7 9 . 0 mm 3 90. 8 m
Slide 28: YTD Earnings per Share: GAAP
YTD Earnings per Share: GAAP 28.1 mm 3 Basic Q2 YTD ‘22 GAAP Net Income (Loss) ( $ 34 . 8 mm ) ( $ 0 . 58) ( $ 16 . 4 mm ) 1 Nine M onths E nded Sep 30, 2024 Nine M onths E nded Sep 30, 2023 ( $ 34 . 8 mm ) ( $ 16 . 4 mm ) 2 28 . 1 mm 4 ( $0. 58) $ 81 . 5 mm $ 81 . 5 mm $ 15 . 8 mm $ 26 . 5 mm 18. 4
Slide 29: YTD Adjusted Earnings per Share
YTD Adjusted Earnings per Share 8 1 . 3 mm 3 Basic Q2 YTD ‘22 GAAP Net Income (Loss) ( $ 34 . 8 mm ) $0. 91 $ 73 . 8 mm 1 Nine M onths E nded Sep 30, 2024 Nine M onths E nded Sep 30, 2023 ( $ 34 . 8 mm ) $ 73 . 8 mm 1 9 2 . 3 mm 4 $0. 80 $ 81 . 5 mm $ 81 . 5 mm $ 65 . 3 mm 2 $ 65 . 3 mm 2 78. 4 mm 3
Slide 30: Q3 Non-GAAP EPS Reconciliation
Q3 Non - GAAP EPS Reconciliation (Unaudited) Source: Company financials 1 Assumes treasury stock method, valuation at assumed FMV of $18.00 2 Includes options, RSUs, and ESPP shares Three months ended September 30, 2023 Three months ended September 30, 2024 DILUTED BASIC DILUTED BASIC in millions $
Slide 31: YTD Sept Non-GAAP EPS Reconciliation
YTD Sept Non - GAAP EPS Reconciliation (Unaudited) Source: Company financials 1 Assumes treasury stock method, valuation at assumed FMV of $18.00 2 Includes options, RSUs, and ESPP shares Nine months ended September 30, 2023 Nine months ended September 30, 2024 DILUTED BASIC DILUTED BASIC in million