Feel good about payments
CR2 acquisition
HPS Expands Global Reach and Capabilities in Digital Banking and Payments Software
June 06, 2024
Disclaimer about forward looking statements
This presentation ("Presentation") has been prepared by Hightech Payment Systems S.A. ("HPS" or the "Company").
This Presentation may contain forward-looking statements within the meaning of applicable Moroccan securities laws, including, but not limited to, statements regarding our future financial performance, business strategy, market trends, and growth opportunities. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to:
- Changes in economic conditions, market demand, and pricing pressures.
- Fluctuations in currency exchange rates and interest rates.
- Regulatory and legal developments impacting our operations.
- Competition in the markets in which we operate.
- Technological advancements and our ability to innovate.
- The impact of unforeseen events, such as natural disasters or global health crises.
These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effects on our company. We undertake no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by Moroccan securities laws.
Investors and shareholders are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Actual results may differ materially from those anticipated in the forward-looking statements due to various factors beyond our control. We encourage you to review our filings with the Moroccan Capital Market Authority for a more detailed discussion of the risks and uncertainties that may affect our business and operating results.
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 2 |
Agenda
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HPS Update
Introducing CR2
Compelling Strategic Rationale
HPS Update
Abdeslam ALAOUI
CEO
HPS Overview
HPS is a fast-growing and innovative global provider of payment software and solutions for issuers, acquirers, card processors, ISOs, retailers, mobile operators, and national & regional switches around the world
GLOBAL | CLOUD-NATIVE, | INNOVATION & R&D | DIVERSIFIED & | 2023 DOUBLE-DIGIT |
SCALABLE TECHNOLOGY | FOCUS | RECURRING REVENUE | PROFITABLE GROWTH | |
Moroccan origin with | PowerCARD rated best | 55 MUSD spent over the | Revenue across 90+ | 18% Revenue Growth with |
successful global expansion | technology worldwide | last 5 years | countries; 70% recurring | 21% EBITDA margin |
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 5 |
Value Creation Journey
HPS has grown by entering new regions, acquiring new businesses and reinforcing our technology (PowerCARD) and Services
1995 | 2002 | 2003 | 2005 | 2007 | 2009 | 2010 | 2011 | 2016 | 2017 | 2018 | 2021 | 2023 | 2024 |
Foundation | Dubai | France | Singapore | South Africa | Canada | India |
of HPS in | opening of 1st | office to | office to | office to serve | office to | office |
Casablanca | international | address | address | South African | address | launched |
office | Europe | APAC | customers | America | Q1 2024 |
P-CARD V2 | P-CARD V3 | Switching | ATM & Fraud | P-CARD V4 |
designed for | richer library of | business | monitoring | based on cloud native |
international | functionalities | development in | in SaaS covered | and database |
expansion | Morocco | through acquisition | agnostic approach |
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 6 |
AccelR8 - HPS's Strategic Plan to 2027
AccelR8 is HPS's development plan to achieve our strategic objectives by 2027
HPS in 2022
Recurring
48%
7% 86%
Americas other
ACCELR8
Non-recurring | ||
29% | Organic growth | |
$100m | ||
12% < CAGR < 17% | ||
Regular | External growth | |
Between $40m and | ||
23% | ||
$80m | ||
EBITDA margin | ||
Between 25% and 30% | ||
Resilience | ||
60% recurring in 2027 | ||
Geographical positioning | ||
9% | Americas & Asia between | |
Asia | $80m and $100m |
HPS in 2027
Recurring
60%
15%
Americas
Between
$220m
and
$300m
70%
other
Non-recurring
15%
Regular
25%
15%
Asia
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Strengthening HPS' Role in the Global Payments Value Chain
The acquisition will unlock the next stage of HPS's development as it continues to execute on its "AccelR8" strategic growth plan and build on its successful acquisition track-record
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Deliver on AccelR8 Strategic Plan
Enhance Digital Banking Capabilities
Expand PowerCARD Potential
Enter New Markets
Accretive Transaction
Adding Strong Talent
CR2 is expected to contribute substantially to HPS's financial performance and accelerate our strategic objectives
Acquisition of CR2 underscores HPS's commitment to enhancing its digital banking and payments software capabilities, further solidifying its position as a leading global player in the industry and a trusted partner to a growing client base
Exciting opportunities in combining CR2's digital banking solutions with PowerCARD, creating a broad and complementary product portfolio beyond core card issuing and processing
Broaden geographic diversification, consolidating HPS's position as a leader in the French- speaking African market with CR2's strength English speaking Africa and Australia
Acquisition expected to be EPS accretive in the first year following completion, reflecting lower valuation paid than HPS's valuation andsynergies expected to be realised
Strong and experienced CR2 Management team who will add incremental talent and experience to HPS's growth journey
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 8 |
Introducing CR2
Fintan Byrne
CR2 CEO
CR2 is a Digital Banking and Payments Software Leader
CR2 proprietary BankWorld software platform powers 90+ banks across more than 50 countries around the world across 4 continents
Overview
- CR2 was founded in 1997 and is headquartered in Dublin, Ireland
- CR2 delivers the most complete range of digital banking, digital wallet and payment capabilities through a single platform at scale
- BankWorld is a proven digital banking and payments platform
- Well-positionedto capture strong structural tailwinds, the convergence of digital banking and payments as well as the shift to digitalization
- Unique proposition enabling banks to transition at pace to a digital future while supporting the cash nature of markets today
- Serving multiple blue chip global and regional banks with 90+ proven implementations spread across 50+ countries
- Long-standingrelationships of c.17 years on average with top 10 customers
- Mission-criticaluse cases drive impressive customer acquisition, retention and recurring
Selected Customers
Global Presence
Head office | Office location |
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 10 |