Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Q4 2022 Earnings Presentation
31 slides from Euronet Worldwide's earnings presentation, Feb 8, 2023
Slide 1: Fourth Quarter and Full Year 2022 Financial Results
Fourth Quarter and Full Year 2022 Financial Results Michael J. Brown | Chairman & CEO Rick L. Weller | EVP & CFO Scott Claassen | General Counsel Euronet | www.euronetworldwide.com 1 121322-1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation that concern Euronet's or its management's intentions, expectations, or predictions of future performance, are forward- looking statements. Euronet's actual results may vary materially from those anticipated in such forward-looking
Slide 3: Defined Terms
Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant currency measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of
Slide 4: Financial Highlights Fourth Quarter 2022
Financial Highlights Fourth Quarter 2022 Rick L. Weller | EVP & CFO Euronet | www.euronetworldwide.com 4 121322-1
Slide 5: Financial Highlights Fourth Quarter 2022
Financial Highlights Fourth Quarter 2022 • Revenue - $865.7 million • Adjusted Operating Income - $79.1 million • 7% increase from $811.5 million for Q4 • 17% increase from $67.6 million for Q4 2021 2021 • 16% increase on a constant currency • 31% increase on a constant currency basis basis • Operat
Slide 6: Balance Sheet Overview
Financial Highlights Fourth Quarter 2022 Balance Sheet Overview USD 9/30/2022 12/31/2022 (in millions) Unrestricted Cash $ 967.1 $ 1,131.2 ATM Cash 646.1 515.6 Settlement Assets 1,034.9 1,442.7 Total Assets 4,827.8 5,403.6 Total Debt 1,736.2 1,613.5 Total Debt to Trailing Twelve Month Adjusted EBITD
Slide 7: Same Quarter Prior Year Comparison
Financial Highlights Fourth Quarter 2022 Same Quarter Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 EFT Processing $ 163.5 $ 210.1 $ 1.8 $ 19.1 $ 25.9 $ 43.4 % Change 29% NM 68% epay 286.9 285.5 40.6 41.1 42.
Slide 8: Same Quarter Prior Year Comparison – Constant Currency
Financial Highlights Fourth Quarter 2022 Same Quarter Prior Year Comparison – Constant Currency* Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income Q4 2021 Q4 2022* Q4 2021 Q4 2022* Q4 2021 Q4 2022* EFT Processing $ 163.5 $ 234.2 $ 1.8 $ 20.8 $ 25.9 $ 47.8 % Change 43% NM 85% epay 2
Slide 9: Financial Highlights Full Year 2022
Financial Highlights Full Year 2022 Rick L. Weller | EVP & CFO Euronet | www.euronetworldwide.com 9 121322-1
Slide 10: Financial Highlights Full Year 2022
Financial Highlights Full Year 2022 • Revenue - $3,358.8 million • Adjusted Operating Income - $385.4 million • 12% increase from $2,995.5 million for • 73% increase from $222.6 million for 2021 2021 • 98% increase on a constant currency • 22% increase on a constant currency basis basis • Adjusted E
Slide 11: Balance Sheet Overview
Financial Highlights Full Year 2022 Balance Sheet Overview USD 12/31/2021 12/31/2022 (in millions) Unrestricted Cash $ 1,260.5 $ 1,131.2 ATM Cash 543.4 515.6 Settlement Assets 1,102.4 1,442.7 Total Assets 4,744.3 5,403.6 Total Debt 1,427.9 1,613.5 Total Debt to Trailing Twelve Month Adjusted EBITDA
Slide 12: Prior Year Comparison
Financial Highlights Full Year 2022 Prior Year Comparison Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income (Loss) 2021 2022 2021 2022 2021 2022 EFT Processing $ 591.2 $ 924.2 $ (0.4) $ 184.0 $ 90.5 $ 279.4 % Change 56% NM 209% epay 1,011.4 997.9 122.9 120.7 131.4 126.9 % Change -1
Slide 13: Prior Year Comparison – Constant Currency
Financial Highlights Full Year 2022 Prior Year Comparison – Constant Currency* Adjusted Operating USD (in millions) Revenue Adjusted EBITDA Income (Loss) 2021 2022 2021 2022 2021 2022 EFT Processing $ 591.2 $ 1,035.1 $ (0.4) $ 208.3 $ 90.5 $ 313.9 % Change 75% NM 247% epay 1,011.4 1,093.3 122.9 134.
Slide 14: Business Update
Business Update Michael J. Brown| Chairman & CEO Euronet | www.euronetworldwide.com 14 121322-1
Slide 15: Quarter Business Highlights
Quarter Business Highlights • Travel trends continue to improve across the globe, particularly in Asia where COVID restrictions are being fully lifted • We continue to diversify our revenue streams across more products, solutions and geographies 15
Slide 16: EFT Business Segment
Business Segment EFT • Signed • Deposit ATM network participation agreement with Unicredit bank in Romania • ATM network participation agreement with Banco Caminos in Spain • ATM outsourcing and card issuing agreement with Eurobank/Direktna Bank in Serbia • ATM outsourcing agreements with 16 Credit
Slide 17: EFT Business Segment: ATM Rollforward
Business Segment EFT • Active ATM Rollforward Active ATM Rollforward Sequential ATMs at Beginning of Quarter 49,617 Traditional High Value ATM Changes Independently Deployed ATMs (454) Outsourcing ATMs (219) Low-Margin India ATMs (26) Seasonally Re-activated / (De-activated) ATMs (3,909) ATMs at Dec
Slide 18: Business Segment Highlights
Business Segment Highlights • Launched: • McAfee renewals in Currys in the UK and Ireland • Disney+ digital in Spain • Uber in Germany and Spain • Microsoft 365 renewals in Germany, Brazil, UAE and USA • Game Pass Ultimate renewals in Telefonica Germany • Branded Payments in Lidl grocery stores in t
Slide 19: Money Transfer Business Segment
Business Segment Money Transfer • Network Growth: • Our network reaches: • 188 countries and territories • 522,000 total network locations, a 2% increase vs. 4Q 2021 • 3.6 billion bank accounts and 482 million wallet accounts • Correspondent Expansion • Launched 16 new correspondents in 14 countries
Slide 20: Solution
Solution • Signed agreement with HSBC, the world’s 8th largest bank, to utilize our Dandelion platform • Market response to Dandelion’s differentiated value proposition has been very favorable: • Real-time payments • Alternative payment channels • Complete payments solutions available through a sing
Slide 21: Solution
Solution • Launched • Visa Prepaid card issuance and switching with TNG Digital Sbn Bhd, the largest eWallet issuer in Malaysia • Added person-to-merchant payments through InstaPay with the Bank of Philippine Islands (BPI) • Signed • Master services agreement with Grab Malaysia to provide an open lo
Slide 22: Summary
Summary • Our balance sheet remains strong providing stability and flexibility in our operations • Our most profitable EFT transactions continue to improve consistent with the recovery of the travel and hospitality industries • epay continues to expand mobile and digital branded payments and expand
Slide 23: Supplemental Data
Supplemental Data Euronet | www.euronetworldwide.com 23 121322-1
Slide 24: Reconciliation of Net Income to Operating Income and Adjusted EBITDA
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA (unaudited - in millions) Three months ended December 31, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income $
Slide 25: Reconciliation of Net Loss to Operating Income, Adjusted Operating Income and Adjusted EBITDA
Reconciliation of Net Loss to Operating Income (Expense), Adjusted Operating Income Expense and Adjusted EBITDA Reconciliation of Net Loss to Operating Income, Adjusted Operating Income (Expense), Operating (Expense) Income and Adjusted EBITDA (unaudited - in millions) Three months ended December 31
Slide 26: Reconciliation of Net Income to Operating Income and Adjusted EBITDA
Reconciliation of Net Income to Operating Income (Expense) and Adjusted EBITDA Reconciliation of Net Income to Operating Income (Expense), and Adjusted EBITDA (unaudited - in millions) Twelve months ended December 31, 2022 EFT Money Corporate Processing epay Transfer Services Consolidated Net income
Slide 27: Reconciliation of Net Income to Operating Income, Adjusted Operating Income and Adjusted EBITDA
Reconciliation of Net Income to Operating Income (Expense), Adjusted Operating Income Expense and Adjusted EBITDA Reconciliation of Net Income to Operating (Loss) Income, Adjusted Operating (Loss) Income and Adjusted EBITDA (unaudited - in millions) Twelve months ended December 31, 2021 EFT Money Co
Slide 28: Reconciliation to Constant Currency Amounts by Segment
Reconciliation of Revenue, Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment Reconciliation of Revenue, Operating (Expense) Income and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) Three months ended ended December 31, 2022 EFT
Slide 29: Reconciliation to Constant Currency Amounts by Segment
Reconciliation of Revenue, Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment Reconciliation of Revenue, Operating Income (Expense) and Adjusted EBITDA to Constant Currency Amounts by Segment (unaudited - in millions) Twelve months ended ended December 31, 2022 EF
Slide 30: Reconciliation of Adjusted Earnings per Share
Reconciliation of Adjusted Earnings per Share Reconciliation of Adjusted Earnings per Share (unaudited - in millions, except share and per share data) Year Ended Three Months Ended December 31, December 31, 2022 2021 2022 2021 Net income (loss) attributable to Euronet Worldwide, Inc. $ 231.0 $ 70.7
Slide 31: Thank you
Thank you Euronet | www.euronetworldwide.com 31