For personal use only 2018 Financial Results 21 August 2018
Agenda For personal use only 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 partjcular rate of return or the performance of EML. This investor presentatjon has been prepared by EML Payments Limited ABN 93 104 757 904 (EML) and is general background This presentatjon may contain forward looking statements including statements regarding our intent, belief or current informatjon about EML’s actjvitjes current as at the date of this presentatjon. This informatjon is given in summary form and expectatjons with respect to EML’s businesses and operatjons, market conditjons, results of operatjon and fjnancial conditjon, does not purport to be complete. Informatjon in this presentatjon should not be considered as advice or a recommendatjon capital adequacy, specifjc provisions and risk management practjces. Readers are cautjoned not to place undue reliance on to investors or potentjal investors in relatjon to holding, purchasing or selling securitjes and does not take into account your any forward looking statements. partjcular investment objectjves, fjnancial situatjon or needs. Before actjng on any informatjon you should consider the Unless otherwise specifjed all informatjon is for the twelve months ending 30 June 2018 (‘FY2018’), and is presented in appropriateness of the informatjon having regard to these matuers and seek independent fjnancial advice. Australian Dollars. Unless otherwise stated, the prior comparatjve period refers to the twelve months ending 30 June 2017 An investment in EML securitjes is subject to known and unknown risks, some of which are beyond the control of EML. (‘FY2017’ or ‘PCP’) EML Payments Full Year Results Presentatjon 2018 2
For personal use only 01 Business update
Business Update Highlights EML mission statement For personal use only We create awesome, instant and secure payment solutjons that connect our customers to their customers, anytjme, anywhere, wherever money is in motjon… EML Payments Full Year Results Presentatjon 2018 4
Business Update Highlights 2018 Successes For personal use only Strong Organic in FY18 $1.4 Billion $1.4 GDV Growth from existjng customers Growth Billion with major contracts $2.3 launched for salary packaging alongside growth in our Reloadable segment. launches in FY18 $914 GDV Growth from Billion new customer Million New Business Existjng Business EML Payments Full Year Results Presentatjon 2018 5 Existjng Business
Business Update Highlights 2018 Successes For personal use only 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 December 2017 in 87 German malls. jurisdictions • Annualised run rate from new • Issued by Perfectcard DAC, now • GVCs' brands include bwin, Coral, launches of $0.5bn in July 2018 a subsidiary of EML. Ladbrokes & Sportingbet excluding non-core processing only volumes. • GDV is estimated at €90 Million • GVC signed in late June 2018, with a (A$142 million) launch expected within FY19 • Total annualised run rate, including processing only • EML now has over 300 shopping • Neobank & crypto currency programs volumes, is approx $3.5bn mall programs operating across expected to launch in FY19, include our 18 European countries and fjrst Reloadable product in the Nordics 52 15 5 currencies vs Program at December in market 2017 EML Payments Full Year Results Presentatjon 2018 6
Business Update Highlights Acquisitjon of Presend Nordic AB For personal use only Purchase price Provided a geographic expansion opportunity for EML into the Nordics Purchase price is split into 2 separate components, market bringing on a further 90 representjng a combined total maximum of SEK programs and expand our Reloadable 70m (A$11.1m). We expect this to equate to a technology into new geographic forward EBTDA multjple of less than 7x based on markets. Acquisitjon completed on the expected earn out period EBTDA. 1 February 2018. Earn–out Integratjon completed by August 2018 including rebrand to EML Based on 10x the average annual EBTDA achieved by Presend in the 24 months from 1 May 2018 to Nordics. 30 April 2020, but capped at SEK 60m. Efgectjve earn out multjple is expected to be STOCKHOLM less than 6x. Working capital No working capital input requirement from EML post-close as Presend will be acquired with SEK 2m net assets. EML Payments Full Year Results Presentatjon 2018 7
Business Update Highlights Acquisitjon of Presend Nordic AB For personal use only Expands European Established, Geographic Mall Card Portgolio Profjtable 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/EU portgolio. EBTDA positjve and positjoned 6 of which EML had no presence. of its operatjons to third for growth as it expands out of its This provides a good base for partjes for which it incurred Has since acquisitjon signed core Non-Reloadable market. EML to expand through a well arms length fees, including approximately 20 new small mall connected and experienced CEO Accountjng, Processing, Issuing, and town centre programs. while being supported by existjng IT development and Distributjon. EML infrastructure allowing the EML has integrated these services Group to contjnue to scale. onto EML’s existjng platgorms, Revenue infrastructure and staffjng to drive cost savings from FY19 Synergies onwards. We also expect to drive savings from pricing power on Integratjon of Presend onto EMLs centralising card productjons, platgorms from FY19, allows the licencing, insurance and audits. Group to leverage EML's treasury services and Mastercard private label BINs which will increase revenues on its cards programs. EML Payments Full Year Results Presentatjon 2018 8
Business Update Highlights Acquisitjon of Perfectcard DAC For personal use only Purchase price Ireland's fjrst authorised eMoney instjtutjon supported EMLs recent 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 expanding We expect this to equate to a forward EBTDA the reach of their corporate multjple of less than 10x based on the forecast earn-out EBTDA. expense solutjons worldwide. Acquisitjon completed post year Earn-out end on 4 July 2018. EML is protected and the vendor is incented to perform by paying 50.6% of the purchase price in earn-out. Earn-out paid afuer 31 December 2020. Cap on the earn-out ensures EML pay a multjple of less than 10x on forward EBTDA. Working capital No working capital input requirement from EML antjcipated post-close as Perfectcard will be acquired with €1.5m in net assets. EML Payments Full Year Results Presentatjon 2018 9
Business Update Highlights Acquisitjon of Perfectcard DAC For personal use only Issuing Expanded Product Capability Range & Vertjcals 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 payment processor and program processing to a third party for to contribute ~ A$400k - A$600k payment products across the manager across the European which it incurs arms length fees. in EBTDA to the Group (74.86% European Union without the need Union driving additjonal revenue Post integratjon, Perfectcard will ownership) afuer fjrst year for the external third party bin streams. Perfectcard provides transitjon processing to EML’s integratjon costs sponsors that EML requires today. EML with an excellent corporate processing platgorm. In additjon Self-issuing will provide cost expense (pecan) and corporate to cost savings, this will provide savings but more importantly, incentjve (perfectjncentjve) signifjcant product fmexibility allows us to be more fmexible and solutjons that we can grow in our to Perfectcard. Cultural Fit faster to market and provides our existjng geographies. customers regulatory certainty prior to entering into multj-year Excellent cultural fjt between the agreements with EML. Perfectcard business and the rest of the Group. EML Payments Full Year Results Presentatjon 2018 10
Business Update Highlights Success in Developing Acquisitjons For personal use only EML has a track record of enhancing acquisitjons with signifjcant GDV, Consideratjon: $7.1m** Consideratjon: $4.72m** Revenue & EBTDA growth GDV $39m GDV $70m EBTDA $0.5m EBTDA $0.7m Multjple 14.2x Multjple 9.0x NORTH AMERICA GDV $4,932m Consideratjon: $46.5m* EBTDA $11.6m GDV $2,000m EBTDA Multjple 4.01x EBTDA $4.7m Multjple 9.9x EUROPE GDV $384m Consideratjon: $24.9m EBTDA $5.6m GDV $101m EBTDA Multjple 4.45x EBTDA $2.3m Multjple 10.8x GDV $1,436m Consideratjon: $12.275m EBTDA $3.6m GDV $51m EBTDA Multjple 3.41x EBTDA Loss $(1.2m) 2011 2014 2016 2018 Current *purchase consideratjon inc. shares granted as consideratjon ** excludes potentjal earn out on future earnings growth. EML Acquired 74.86% of the issue share capital. EML Payments Full Year Results Presentatjon 2018 11
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