W.a.g. Payment Solutions Plc · LSE:EWG
W.a.g. Payment Solutions — Investor Presentation (April 2024)
35 slides from W.a.g. Payment Solutions's investor presentation, April 2024
Slide 1: W.A.G payment solutions plc Investor presentation
W.A.G payment solutions plc Investor presentation April 2024 eurowag.com
Slide 2: Disclaimer
Disclaimer This presentation comprises certain written materials/slides prepared by W.A.G payment solutions plc (the Company) for the purposes of the Company’s investor relations conference. This document, its contents and the presentation may not be copied, distributed, published, reproduced or pas
Slide 3: Transforming the European transportation industry
Transforming the European transportation industry 3
Slide 4: Trucking is an essential pillar of the economy
Trucking is an essential pillar of the economy Transport split as % share European CRT Trucks in gross tonne km 6% € 9m Heavy commercial vehicles – International 10% - 15% • >12 tonne 19% • ~130,000km p.a. mileage 75% >9m ~5% ~20m Heavy commercial vehicles – Domestic Commercial of European CRT2 rela
Slide 5: The CRT industry needs a digital and operational transformation
The CRT industry needs a digital and operational transformation Low Low Environmental Analogue Complex Fragmented Constrained utilization profitability impact <13% 30+ >90% Limited 30% 3-5% >7% of road transport administrative tasks of operators are access to finance trucks on the road margins of gr
Slide 6: Eurowag's growing addressable market in Europe
Eurowag’s growing addressable market in Europe Net revenue €bn Addressable market at IPO • €4.4bn payment solutions (2020) Financing services driven expansion €1.5bn C A • €1.5bn mobility solutions (2020), of which: Financing and e-wallet − €0.9bn Tax, €0.5bn short term financing, €0.1bn FMS Expansi
Slide 7: Connecting the CRT industry together into one transparent digital ecosystem
Connecting the CRT industry together into one transparent digital ecosystem Fragmented CRT1 ecosystem Shippers, freight Energy Finance and Original equipment Regulators Roadside service forwards and load and toll payments insurance manufacturers and authorities providers platforms Creating transpare
Slide 8: Our unique offering has enabled us to substantially differentiate ourselves
Our unique offering has enabled us to substantially differentiate ourselves INTERNATIONAL MISSION CRITICAL SERVICE Pan PROVIDERS European Regional Point Solutions Integrated experience 8
Slide 9: Our journey to an integrated end-to-end digital platform
Our journey to an integrated end-to-end digital platform 2023+ 2017 2022 3 Integration Delivering unique integrated end-to-end 1995 2016 2 Accumulation platform, driving efficiency and supporting decarbonisation Acquiring and developing a broader 1 Expansion suite of services, with data at the core
Slide 10: Design of Eurowag's integrated end-to-end digital platform
Design of Eurowag’s integrated end-to-end digital platform To makeBusiness Customers / user commercialTruck owner roaddriver transport Fleet clean, fair and efficient dispatcher Engage Monetise Sales channels Direct Indirect Digital Pricing Products and services Energy & Tolls Drive customer Financi
Slide 11: Creation of an industry first data platform supporting transformation
Creation of an industry first data platform supporting transformation Truck Truck, trailer, routing, information position, utilisation etc Driver Social, behaviour, information compliance, etc Capturing ALL our customers data = Company Toll, tax refund, 1) Driving total digitisation of a information
Slide 12: Consolidating customer data into one mobile and web application
Consolidating customer data into one mobile and web application mobile app today • Significant progress made in development of EW app • EW mobile app monthly users +58% yoy to 31.8k; 80% drivers1 • +800 stations across EU unlock fuel via app1 Company Driver Truck Mobile fuel Payments Fleet managemen
Slide 13: Eurowag Dashboard
Ev EUROWAG Dashboard a Dashboard Q Smart search (9) Live operations v Live operations : © Finance ry Optimize your fle TJ Transport management real-time data, GL Fleetmanagement Toll management = [ insignts «Reporte ® sottings collve Assistance Documents Shop Fuelcards Telematics Toll__ Vehicle acce
Slide 14: Digital platform roadmap, launch on track for Q4 24
Digital platform roadmap, launch on track for Q4 24 FY 2023 FY 2024 Q4 24 SOFT LAUNCH ✓ Map first customer journeys • Develop OFFICE ✓ Design digital channel touch points • Develop ✓ Prepare new business model and pricing • Test and integrate • Q2/Q3 migrate selective fuel, telematics and toll custo
Slide 15: Our new platform will unlock significant value for our customers and industry
Our new platform will unlock significant value for our customers and industry Continue to grow With new capabilities Efficiency Cashflow Revenue Carbon and convenience improvements improvements reduction Today: Financing: Loads: Decarbonisation: cost savings working capital improved fleet utilisatio
Slide 16: Our strategic pillars allow for structured and effective execution
Our strategic pillars allows for structured and effective execution within a very complex environment Our purpose To make commercial road transport clean, fair and efficient Attract Engage Monetise Retain Strategic pillars Be in every truck Drive customer centricity Grow core services Expand platfor
Slide 17: Our three-year goals: Integration and transformation
Our three-year goals: Integration and transformation Soft launch of FY 2023 FY 2024 our platform FY 2025 FY 2026 • Unify teams from acquired businesses PEOPLE • Foster digital expertise and agility • Create an agile sales force, integrated into an omnichannel ecosystem • Integrate all products into
Slide 18: Consistently delivering double-digit growth
Consistently delivering double-digit growth 18
Slide 19: Revenue model
Revenue model Payment solutions Mobility solutions Re-occurring transaction-based revenue streams Recurring subscription and other fee-based revenue streams Energy payments # of transactions Transport Fleet Work time (x) management management management average units per transaction (x) Subscription
Slide 20: FY23 financial highlights: robust performance; completed intensive investment phase
FY23 financial highlights: robust performance; completed intensive investment phase Net revenue Adj. EBITDA Adj. EBITDA margins €256.5m €108.7m 42.4% +34.4% / organic +14.5% +33.2% / organic +12.2% -40bps Adj. EPS Capex Net debt leverage1 6.49p €50.9m 2.9x +12.8% Of which €21.7m is our 2022: 0.1x tr
Slide 21: Strong growth through organic and inorganic investment
Strong growth through organic and inorganic investment Net revenue (€m) Adjusted EBITDA (€m) 45.6 45.5 42.8 42.4 Margin (%) CAGR: 25.9% 34.4% Organic 14.5% CAGR: 22.9% 33.2% 256.5 Organic 12.2% 190.9 109.5 95.6% 153.1 Org. 28.3% 56.0 128.6 40.1 108.7 34.5 9.0% 81.6 147.0 69.7 134.8 58.6 113.1 94.1 2
Slide 22: Gaining market share in our most developed markets, with further cross-sell opportunities
Gaining market share in our most developed markets, with further cross-sell opportunities Number of active payment customers Number of active payment trucks Customers taking 3 and 4 products1 28.8% Fuel card, Toll and VAT refund 39.4% Fuel card, Toll, VAT refund and Fleet Management Solutions 8.4% 6
Slide 23: Significant progress made on building our integrated platform
Significant progress made on building our integrated platform Capital expenditure (€m) Change in capex mix following acquisitions 50.9 • Transformational capex programme largely complete, within €50m cumulative guidance 43.2 • Organic ordinary capex ~9%, ex. Inelo • Inelo higher capex to net revenue
Slide 24: Strong cash flow conversion, stable working capital
Strong cash flow conversion, stable working capital Adj. operating cash flow conversion excl. working capital1 Working capital movement (€m) 78% 88% 96% 79% 89% 83% 500 10% 400 8% 300 6% 200 4% 100 2% 0 0% (100) -2% (200) -4% (300) -6% (400) -8% (500) -10% FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Slide 25: Net debt increase driven by acquisitions and business transformation investment
Net debt increase driven by acquisitions and business transformation investment (€m) Net 0.1x 83% 2.9x Leverage(1) cash Liquidity €381m conversion5 €188.1m Headroom(2) 25 Notes: (1) Net leverage covenant calculation as per bank definition, considering GROUP Adjusted EBITDA for the last twelve months
Slide 26: Growth drivers supporting our medium-term guidance
Growth drivers supporting our medium-term guidance FY 2027 FY 2026 FY 2025 FY 2024 Revenue EBITDA margins Cash flow • Cross sell opportunity / increase • Reduce cost of acquisition through • Margin improvement number of products per truck digital and indirect • M&A costs will reduce • Geographic exp
Slide 27: Medium-term financial guidance unchanged
Medium-term financial guidance unchanged Adjusted Net revenue Capex Leverage target EBITDA % FY24 • Near term, market • FY24 margin levels • FY24 c.€35m deferred headwinds expect expected to be in- consideration growth rates to be line with FY 2023 at • FY24 leverage around mid-teens % around 43% mo
Slide 28: New KPIs reported from FY24
New KPIs reported from FY24 Total number No. of products % of subscription Total R&D costs as Customer NPS of active trucks per active truck revenue a % of net revenue • Our ambition is to be • Customer user • Shows success of • Transition to more • Historically has been in ~1m trucks experience is
Slide 29: Sustainability
Ew EUROWAG Sustainability »>>>>>
Slide 30: Embedding sustainability into the organisation is key to achieving our purpose
Embedding sustainability into the organisation is key to achieving our purpose and delivering our corporate strategy To make commercial road transport clean, fair and efficient Embed sustainability across all our business activities, focusing on four strategic areas Climate action Customer success &
Slide 31: Sustainability progress
Sustainability progress FY23 results Our sustainability strategy Making the industry clean and efficient… • Direct GHG emissions1: down 11% from baseline 20192 2030 Targets Climate action • Customers’ GHG emissions: down 0.5% from baseline year 2019 • 50% reduction in GHG • Active alternatively fuel
Slide 32: Appendix
Appendix 32
Slide 33: Finance facilities maturing 2027
Finance facilities maturing 2027 Club finance credit facilities matures 2027 • Facility A of €150m Committed debt amortisation profile • Facility B of €180m • 235m revolving facility, of which €85 may be used revolving loans, €150m as bank €358m guarantees or letters of credit and €25m as overdraft.
Slide 34: Net revenue geographical split
Net revenue geographical split Southern Cluster Central Cluster 3% Czech Republic 15% Poland 24% Other Central Cluster 15% 19% Portugal 24% 24% 15% Other Western Cluster 15% 14% Romania 6% 14% Other Southern Cluster 4% 11% 5% 5% Not specified Western Cluster 34 As of FY 2023.
Slide 35: Contact us
Contact us [email protected] 35
W.A.G payment solutions plc (Eurowag) — Investor Presentation (April 2024) on 6ix