Eml Payments Ltd. · ASX:EML
Eml Payments — Investor Presentation (August 2018)
34 slides from Eml Payments's investor presentation, Aug 21, 2018
Slide 1: 2018 Financial Results
2018 Financial Results 21 August 2018
Slide 2: Agenda
Agenda 01 Business update Tom Cregan Managing Director & Group CEO 02 Financial overview Bruce Stewart Group CFO 03 Outlook Tom Cregan Managing Director & Group CEO IMPORTANT NOTICE EML does not guarantee any particular rate of return or the performance of EML. This investor presentation has been pr
Slide 3: 01 Business update
01 Business update
Slide 4: Business Update: EML mission statement
Business Update Highlights 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… EML Payments Full Year Results Presentation 2018 4
Slide 5: Highlights 2018 Successes
Business Update Highlights 2018 Successes Strong Organic $1.4 GDV Growth from existing customers Growth Billion in FY18 $1.4 Billion with major contracts $2.3 launched for salary packaging alongside growth in our $914 Reloadable segment. GDV Growth from Billion new customer Million launches in FY18
Slide 6: Growth in FY19 from new launches
Business Update Highlights 2018 Successes Growth in FY19 from new launches Non-Reloadable Reloadable B2B Supplier Payments • 5 year agreement for a Non- • GVC plc is a GBP 6bn, UK Listed Gaming • 52 Programs in market vs 15 Reloadable consumer gift card Group operating in more than 20 regulated at D
Slide 7: Acquisition of Presend Nordic AB
Business Update Highlights Acquisition of Presend Nordic AB Provided a geographic expansion opportunity for EML into the Nordics Purchase price market bringing on a further 90 Purchase price is split into 2 separate components, representing a combined total maximum of SEK programs and expand our Rel
Slide 8: Acquisition of Presend Nordic AB
Business Update Highlights Acquisition of Presend Nordic AB Expands European Established, Geographic Mall Card Portfolio Profitable Business expansion Cost Synergies Added 90 mall and city/town Experienced management team, Presend operated in 11 countries, Presend outsourced most programs to our UK/
Slide 9: Acquisition of Perfectcard DAC
Business Update Highlights Acquisition of Perfectcard DAC Ireland's first authorised eMoney institution supported EMLs recent Purchase price Purchase price is split into 2 separate components, contract win with ECE in Germany. combining for a total maximum of €6.0m (A$9.6m). We also look forward to
Slide 10: Acquisition of Perfectcard DAC
Business Update Highlights Acquisition of Perfectcard DAC Issuing Expanded Product Capability Range & Verticals Cost Synergies Earnings Upside Having an Irish eMoney license EML will become an Issuer, Perfectcard outsources its In FY19, Perfectcard is expected allows EML to self-issue regulated paym
Slide 11: Success in Developing Acquisitions
Business Update Highlights Success in Developing Acquisitions EML has a track record of enhancing acquisitions with significant GDV, Consideration: $7.1m** Consideration: $4.72m** Revenue & EBTDA growth GDV $39m EBTDA $0.5m Multiple 14.2x GDV $70m EBTDA $0.7m Multiple 9.0x NORTH AMERICA GDV $4,932m
Slide 12: Regional summary
Business Update Highlights Regional summary NORTH AMERICA REGION UP UK / EUROPE 39% REGION on FY2017 UP 86% A$4,932m on FY2017 A$384m GDV GDV A$39.5m REVENUE A$14.0m 80bps REVENUE AUSTRALIA / ASIA REGION REVENUE CONVERSION 364bps A$11.6m REVENUE CONVERSION UP EBTDA A$5.6m 114% on FY2017 EBTDA A$1,43
Slide 13: Not all GDV is created equal
Business Update Highlights Not all GDV is created equal $2.53 Billion REPORTED NORTH AMERICA UNDERLYING NORTH AMERICA Underlying North American REGION REGION Debit Volumes A$4,932m A$846m 6.00 GDV GDV of North American GDV is A$39.5m A$38.3m 5.00 80bps generated from non-core REVENUE REVENUE process
Slide 14: Gross debit volume (GDV)
Business Update Highlights Gross debit volume (GDV) (AUD’ millions) $6.75 Billion 53% 8000 Group GDV totalled $6.75bn, an increase of 53% over the prior period. 7000 6000 $3.35 Billion GDV generated from the Reloadable segment 5000 4000 163% increase on FY2017, or $2.07bn. 3000 2000 1000 Australia E
Slide 15: 02 Financial overview
02 Financial overview EML Payments Full Year Results Presentation 2018 15
Slide 16: Group financials Profit & Loss
FY2018 Financial Overview Group financials Profit & Loss ($’000s) FY 2017 FY 2018 GROWTH Australia 9,784 17,539 79% Europe Record Organic Revenue growth in Australia 10,055 13,986 39% Americas 38,121 39,495 4% TOTAL REVENUE 57,960 71,020 23% drove Group Revenue up 23% Australia 7,094 12,705 79% Gros
Slide 17: Group financials Profit & Loss
FY2018 Financial Overview Group financials Profit & Loss Overhead expenditure Record Organic Revenue growth in Australia drove Record EBTDA at up 9% vs Revenue growth Group Revenue up 23% $20.8m, up 43% on FY17 of 23% Australia launched a Reloadable product for the Salary Packaging industry EBTDA in
Slide 18: Group financials Sources of Revenue
FY2018 Financial Overview Group financials Sources of Revenue Breakage reduced from 52% of revenues in FY2017 to 37% in FY2018, declining as a percentage as Reloadable and B2B Virtual Payments increased 5% 8% 3% 11% Interchange revenues increased from 17% to 25% of total revenues, driven by North Am
Slide 19: Group financials Revenue
FY2018 Financial Overview Group financials Revenue $71.0m 23% (AUD’ millions) Group revenue for FY2018 increased by $13.1m on the prior period, at the top 80 end of our previous guidance 70 79% Increase in Australian revenue over prior period 60 Australia increased 79% generating $17.5m in revenue,
Slide 20: Group financials Margins & Overheads
FY2018 Financial Overview Group financials Margins & Overheads Gross Profit Margin Overheads as a % of revenue 75.0% on PCP Down on FY2017 but in line with our AGM guidance as the product mix shifts 45% 6% Improved 6% to 45% in FY18 as the Group continues to see leverage on its towards Reloadable an
Slide 21: Group financials EBTDA
FY2018 Financial Overview Group financials EBTDA $20.8m 43% (AUD’ millions) 25 Group EBTDA for FY2018 was $20.8m, up 43% on prior period. FY2018 includes $0.3m of costs in relation to acquisitions and 20 $0.4m of accrued STIP. EBTDA is at the high end of our previously issued guidance. 15 H1 10 247%
Slide 22: Group financials Balance sheet
FY2018 Financial Overview Group financials Balance sheet ($’000s) FY 2017 FY 2018 % CHANGE Cash and cash equivalents 39,872 39,006 -2% Breakage accrued 13,326 19,826 49% Significant cash on balance sheet at $39.0m with no debt Other receivables and other assets 14,923 24,963 67% Deferred tax asset 1
Slide 23: Group financials Balance sheet
FY2018 Financial Overview Group financials Balance sheet Significant cash on balance sheet at $39.0m with no debt Breakage accrual increased $6.5m, due to European The Group retains significant cash balances for ongoing investment in organic growth & timing of cash flow conversion in North America a
Slide 24: Continued investment in our proprietary software
FY2018 Financial Overview Group financials Software Continued investment in our proprietary software 2011 2013 2015 2017 Investment in R&D enhances our Incentives Inc. Gaming Redi ATM Mobile Merchant Rewards The Plastic Magic Immediatley Accessible Winnings Network Integration App & Virtual Benifit A
Slide 25: Group financials Cash flow
FY2018 Financial Overview Group financials Cash flow FY2018 Underlying Cash & Cash equivalents Cashflow Movements 25,000 $39.0m 2% Cash & Cash equivalents were $39.0m, a 2% decrease from H1 Activity H2 Activity 20,000 30 June 2017. FY17 Op Cash 15,000 $19.3m FY18 EBTDA Underlying operating cash flow
Slide 26: 03 Outlook
03 Outlook EML Payments Full Year Results Presentation 2018 26
Slide 27: New Segment Reporting
FY2019 Outlook Outlook Revised segment reporting New Segment Reporting Group Sources of Revenue 21 Countries - 8 Currencies - 1200 Programs 4% 8% As the Group’s operations continue to increase in scale & reach, product segments provide a clearer view of the Group's results. As a result, in FY2019 th
Slide 28: Revised segment reporting
FY2019 Outlook Outlook Revised segment reporting GENERAL PURPOSE VIRTUAL ACCOUNT GIFT & INCENTIVE B2B Virtual Non-Reloadable Reloadable RELOADABLE (GPR) NUMBERS (VANS) Payments GDV REVENUE* GDV REVENUE* GDV REVENUE* $737m $46.2m $3,349m $21.6m $2,666m $2.4m $661m (2017) $47.9m (2017) $1,272m (2017)
Slide 29: Stored Value positioned for interest rate rises
FY2019 Outlook Outlook North America North American Team Stored Value positioned for New executive leadership team will drive higher growth rates by focusing on General Purpose Reloadable programs alongside optimising the profitability of interest rate rises (AUD’ millions) the shopping mall program
Slide 30: Financial guidance
FY2019 Outlook Outlook Financial guidance FY2019 Financial Guidance The Group will provide formal guidance around the time of our AGM in November 2018. Adoption of Launch of ECE - German Launch of European Integration of AASB15 - Revenue Malls Program gaming Programs Perfectcard DAC AASB15 - Revenue
Slide 31: Director changes
FY2019 Outlook Outlook Director changes Appointments position the Group to manage increased size & complexity Bob Browning Dr Kirstin Ferguson Melanie Wilson Bob Browning retired from the Board, Dr Kirstin Ferguson is an independent Mrs Melanie Wilson has over 12 years effective from 20 February 201
Slide 32: Executive changes
FY2019 Outlook Outlook Executive changes Brandon Thompson Paul Wenk Jamie Jaworski Kristen Shaw Mr. Brandon Thompson joined Mr. Paul Wenk joined the executive Mr. Jamison (Jamie) Jaworski joins Ms. Kristen Shaw joins the the executive team as Chief team as Group General Counsel, the executive team a
Slide 33: Key Data 3 Years
Appendices Key Data 3 Years KEY METRICS ($’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 for the period 57 71 64 158 169
Slide 34: Key Data 3 Years
Appendices Key Data 3 Years KEY FINANCIALS ($’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 Revenue (includes interest income) $10,560 $12,751 $23,311 $32,440 $25,520 $57,960 $38,241 $32,779 $7