Eml Payments Ltd. · ASX:EML
Eml Payments — H1 FY2020 Earnings Presentation
32 slides from Eml Payments's earnings presentation, Feb 19, 2020
Slide 1: Investor Presentation
19 February 2020 ASX Market Announcements 20 Bridge Street SYDNEY NSW 2000 Investor Presentation EML Payments Limited (ASX: EML) is pleased to provide investors with +61 (07) 3557 1100 the following presentation. Level 12 333 Ann Street Brisbane QLD 4000 About EML Payments Limited EML Payments Limit
Slide 2: H1 FY20 Interim Results
H1 FY20 Interim Results February 2020 EMLH1FY20INVESTORPRESENTATION_FA
Slide 3: Important Notice
01 Important Notice This investor presentation has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background information Business Update about EML’s activities current as at the date of this presentation. This information is given in summary form and does not purport t
Slide 4: Our Mission
EML Payments H1 FY20 Financial Results Review Our Mission We create awesome, instant and secure payment solutions that connect our customers to their customers, anytime, anywhere, wherever money is in motion. – 03
Slide 5: H1 FY20 Business Update
H1 FY20 =MI.. Business Update Money in Motion
Slide 6: About Us – EML snapshot
EML Payments H1 FY20 Financial Results Review About Us – EML snapshot EML is an ASX listed (ASX:EML) GROUP GDV (H1FY20) GROUP REVENUE (H1FY20) GROUP EBITDA (H1FY20) GROUP NPATA (H1FY20) fintech specialising in prepaid stored value products with offices $6.62bn $59.2m $19.7m $16.0m in Australia, Unit
Slide 7: H1 FY20 Highlights
EML Payments Business Update H1 FY20 Highlights — Record first half result in terms of GDV (up 60%), — Integration of Flex-e-Card Limited on track, acquired 28 June 2019 Revenue (up 25%), Gross Profit Margins (up 270bps on H1FY19) and EBITDA (up 42%) — Signed a binding agreement to acquire Prepaid F
Slide 8: New Contracts & Program Launches
EML Payments Business Update New Contracts & Program Launches New Program Launches New Contracts – 07
Slide 9: H1 FY20 Business Update
EML Payments Business Update H1 FY20 Business Update Gift & Incentive (G&I) General Purpose Reloadable (GPR) Virtual Account Numbers (VANS) 24% GDV Revenue GDV Revenue GDV Revenue $0.84bn $40.1m $1.47bn $13.2m $4.31bn $5.5m $0.66bn (H1FY19) $32.4m (H1FY19) $1.40bn (H1FY19) $12.3m (H1FY19) $2.09bn (H
Slide 10: Track Record of EBITDA Growth and Growth Drivers
EML Payments H1 FY20 Financial Results Review Track Record of EBITDA Growth Growth Drivers 59 Gaming % Expand global gaming programs — Launched RoundPeak (USA), bet365 (USA), Star Casino (Italy) and SuperSports (Croatia) 5 YR FIRST HALF EBITDA 37% Organic Salary Packaging CAGR 63% Acquisition Transi
Slide 11: Gift and Incentive Recent launch highlights
EML Payments H1 FY20 Financial Results Review Gift and Incentive Recent launch highlights CentreParcs EML launched the CentreParcs program into 5 UK villages and the Republic c. 644 centres of Ireland with a series of c. 55 centres nature designs printed on biodegradable cardboard cards sold onsite
Slide 12: Salary Packaging Update
EML Payments H1 FY20 Financial Results Review Salary Packaging Update Salary Packaging Benefit Accounts 187k BENEFIT ACCOUNTS at December 2019 up from 350,000 EML is the largest provider of payment solutions to the Salary Packaging industry with more than 187,000 benefit 300,000 175k at June 2019 ac
Slide 13: Consumer finance with Innovative EML ControlPay
EML Payments H1 FY20 Financial Results Review Consumer finance with Innovative EML ControlPay Digital Delegated Real time Payment authorisation load and Solution settlement EML’s innovative solution Through EML ControlPay EML provides With Instabank, consumers can In Q2FY20, EML launched a new progr
Slide 14: Acquisition of Prepaid Financial Services (Ireland) Limited ('PFS')
EML Payments H1 FY20 Financial Results Review Acquisition of Prepaid Financial Services (Ireland) Limited ('PFS') — EML has entered into a binding agreement to acquire 100% of PFS for an enterprise value of £226 million (A$423 million) (Upfront Enterprise Value), plus an earn-out component of up to
Slide 15: PFS at a Glance Key Investment Highlights
EML Payments H1 FY20 Financial Results Review PFS at a Glance Key Investment Highlights PFS’ prepaid payments and digital banking capabilities, regulatory Electronic Money Institution status in the UK and Europe alongside flexible software enables financial institutions and non-financial Leading e-M
Slide 16: PFS Solution Suite
EML Payments H1 FY20 Financial Results Review PFS Solution Suite Digital Banking & Government, Local Corporate Solutions Multi-Currency Instant Issue Current Accounts Authority & NGO & Incentive Schemes Travel Cards & GPR 43% of GDV 42% of GDV 7% of GDV 6% of GDV 1% of GDV Online / mobile banking Is
Slide 17: PFS New Contracts & Program Launches Since December '19
EML Payments H1 FY20 Financial Results Review PFS New Contracts & Program Launches Since December '19 New Contracts New Program Launches – 16
Slide 18: H1 FY20 Financial Results Review
H1 FY20 Financial Results Review
Slide 19: Financial Overview – Profit & Loss
EML Payments H1 FY20 Financial Results Review Financial Overview – Profit & Loss ($’000s) H1FY19 H1FY20 GROWTH $6.62bn Record Gross Debit Volume, GDV $4.14B $6.62B 60% TOTAL REVENUE 47,194 59,156 25% up 59% on prior year driven Revenue conversion bps 1.14% 0.89% (21%) by G&I and VANs segments GROSS
Slide 20: Gross Debit Volume (GDV) by Segment
EML Payments H1 FY20 Financial Results Review Gross Debit Volume (GDV) GIFT & INCENTIVE GDV by Segment $0.84bn Signed a multi-year agreement with global shopping mall operator Simon Property Group, launched January 2020. 5 Year CAGR The G&I segment converted to revenue at 479bps in line with prior 1
Slide 21: Revenue
EML Payments H1 FY20 Financial Results Review Revenue $59.2m 25% In H2FY20 a further $6.8m of breakage revenue will H1FY20 Revenue by Segment 68% Total Revenue (A$m) be recognised on H1 activations 5 Year CAGR 59 22% 54% 86% Generated from recurring revenue streams $51.0m from recurring revenue stre
Slide 22: Gross Profit Margins
EML Payments H1 FY20 Financial Results Review Gross Profit Margins GROSS PROFIT MARGIN Gross Profit Margins Gross Profit by Segment 75.7% up 2.7% on PCP Group Interest VANS 72% GPR In line with our expectations of meaningful margin G&I expansion, driven by: GP Margin 20% — Transitioned majority of o
Slide 23: Overhead Expenditure
EML Payments H1 FY20 Financial Results Review Overhead Expenditure OVERHEADS AS A % OF REVENUE 43% 1% 7% 5% 7% 3% 8% 9% Overhead expenditure as a percentage of revenue declined to 43% (PCP 44%), as revenue growth outpaced overheads growth 64% HY19 66% HY20 and the group adopted AASB16 Leases. 6% 9%
Slide 24: Income Statement
EML Payments H1 FY20 Financial Results Review Income Statement ($’000s) GDV FY2019 $4.14B FY2020 $6.62B GROWTH 60% $19.7m 44% Record Group 6 month EBITDA EBITDA (A$m) TOTAL REVENUE 47,194 59,156 25% 5 Year CAGR Revenue conversion bps 1.14% 0.89% (21%) Acquisition due diligence expenses 59% GROSS PRO
Slide 25: Balance Sheet
EML Payments H1 FY20 Financial Results Review Balance Sheet 30 June 31 December % ($’000s) 2019 2019 CHANGE Cash on hand of $256.8m, with no debt following the Cash and cash equivalents 33,085 256,812 676% repayment of $15m in December 2019. EML raised approx. Contract asset 31,828 32,713 3% $241.6m
Slide 26: Financial Overview – Cash flow
EML Payments H1 FY20 Financial Results Review Financial Overview – Cash flow CASH & CASH EQUIVALENTS H1 FY20 Underlying Cashflow Movements 20,000 $256.8m 676% H1FY20 EBITDA Cash & Cash equivalents increased $223.7m from 30 June 2019 including $19.7m cash inflows from a capital raise of $241.6m net o
Slide 27: Outlook & FY2020 Guidance
Outlook & FY2020 =ML.. Guidance Money in Motion
Slide 28: FY2020 - Financial Guidance
EML Payments H1 FY20 Financial Results Review FY2020 - Financial Guidance The Group expects Assumptions: EBITDA1 to be in a range of 01 03 A$39.5m-$42.5m Underlying EBITDA now excludes acquisition costs in FY20 and prior Declining global interest rates negatively impacting interest income in all reg
Slide 29: Key Data
Key Data =MI.. Money in Motion
Slide 30: Key Data - 3 Years
EML Payments H1 FY20 Financial Results Review Key Data - 3 Years Key Metrics ($’000s) H1 2018A H2 2018A FY2018A H1 2019A H2 2019A FY2019A H1 2020A 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths Headcount (closing) 184 182 184 236 275 275 272 Average Headcount for the period 174 185 180 223 221
Slide 31: Key Data - FY18-FY20
EML Payments H1 FY20 Financial Results Review Key Data - FY18-FY20 Key Financials ($’000s) H1 2018 H2 2018 FY2018 H1 2019 H2 2019 FY2019 H1 2020 6mnths 6mnths 12 mnths 6mnths 6mnths 12 mnths 6mnths Revenue (includes interest income) $33,908 $37,112 $71,020 $47,194 $50,001 $97,195 $59,156 Gift & Ince
Slide 32: Thank you
Thank you Level 12, 333 Ann Street Brisbane QLD 4000 Telephone: +61 7 3557 1100 emlpayments.com Subscribe to investor news at emlpayments.com/investors