Paypoint Plc · LSE:PAY
Paypoint — FY2013 Earnings Presentation
39 slides from Paypoint's earnings presentation, May 23, 2013
Slide 1: PayPoint plc Results for 53 weeks ended 31 March 2013
PayPoint plc Results for 53 weeks ended 31 March 2013 23 May 2013
Slide 2: Agenda
Agenda • Results summary 3 • Financial review 5 • Operational review 10 • Summary and outlook 19 • Appendix 1 - The essence of what we do 21 • Appendix 2 - Materials to support the consumer transaction 23 - UK Retail 24 - PayByPhone 31 - Collect+ 33 - PayCash 38 2
Slide 3: Results summary
Results summary Period ended March2 Net revenue £m • A set of strong results with progress across all parts of the business in line with our strategy • Record transaction volumes of 739m up 12%, and operating profit up 8% to £42.0m • Continued retail growth, with transactions up 10% 82.7 90.4 105.7
Slide 4: Results summary continued
Results summary continued • We have delivered strong growth, leveraging our assets and driving new revenue streams • Retail – Improved yield through retail services justifies further site growth in the UK, leveraging payments, ATMs, credit and debit functionality and parcels – Our CashOut capability
Slide 5: Financial review
Financial review 5
Slide 6: Strong business momentum
Strong business momentum Period ended March 2011 2012 2013 £m £m £m 105.7 Net revenue 1 82.7 90.4 105.7 £m 90.4 Other cost of sales (12.0) (12.1) (16.0) 82.7 Administrative expenses (34.6) (39.4) (47.7) Operating profit 36.1 38.9 42.0 Share of Collect+ JV (1.5) (1.8) (1.0) 42.0 38.9 36.1 Investment
Slide 7: Net revenue bridge
Net revenue bridge Period ended March 2013 £000 110,000 105,000 100,000 95,000 90,000 85,000 80,000 PayByPhone Retail services Other Internet Top-ups Bill and general 2012 2013 7
Slide 8: Cash generation and use
Cash generation and use Period ended March 2011 2012 2013 £m £m £m Operating cash flows 40.8 43.3 47.4 Working capital 1.4 0.0 3.3 Cash generated by operations 42.1 43.3 50.7 Tax paid (11.0) (10.4) (10.6) Net cash inflow from operating activities 31.1 32.9 40.1 Net cash used in investing activities
Slide 9: Key messages
Key messages • Net revenue and profit growth • Excellent cash conversion • Ongoing investment to secure future growth • Balance sheet strong 9
Slide 10: Operational review
Operational review 10
Slide 11: Retail (UK, Ireland & Romania)
Retail (UK, Ireland & Romania) Period ended March 2013 Group net revenue • Strongly differentiated over the counter payment proposition • The network: – Over 32,000 convenience stores open early until late – Servicing most major utilities and service companies with 87% long term contracts, some with
Slide 12: Retail
Retail Period ended March UK & Ireland Retail net revenue bridge £000 • Bill and general payment revenues continue showing growth, enhanced by the DWP’s Simple Payment service 901 1,369 2,973 • Mobile decline mitigated by Health Lottery and e-money revenues 10,714 91,643 • Net revenue growth across
Slide 13: Retail: Romania
Retail Romania • Bill payment transactions increased by 35% and top-ups by 2% Period ended March 2012 2013 • Bill payment market share now 12% with significant growth Transactions (m) 24.0 30.7 opportunities supported by national TV advertising campaigns to increase awareness Transaction value (RON
Slide 14: Collect+
Collect+ • JV with Yodel to transform shopping fulfilment for consumers Period ended March • Pioneer and clear market leader in parcel collection and returns Collect+ at 100% 2012 2013 through local shops, as convenient alternatives to home delivery or Post Offices Transactions (millions) 3.8 7.7 Co
Slide 15: Collect+
Collect+ • Collect+ solves the retailer challenge to provide consumers with a more convenient and flexible delivery and returns Annual market growth of UK Click & Collect service volume* 153 122 • The click and collect market is anticipated to grow strongly as consumers adapt to alternative delivery
Slide 16: e&m commerce
e&m commerce Period ended March 2013 Group net revenue • Core to group strategy to provide clients with multi-channel payment capability 13% • Accesses fast growing markets and acts as a bridge for the eventual migration of cash to electronic payments • Consists of internet and mobile payments capab
Slide 17: e&m commerce - Our Internet payment business (PayPoint.net)
e&m commerce - Our Internet payment business (PayPoint.net) • One of the largest independent PSPs in the UK, based on revenues Internet net revenue by service 2012 2013 • Provides secure debit/credit card and other payments for web merchants as well as fraud screening and reporting systems • Volumes
Slide 18: e&m commerce - Our mobile payment business (PayByPhone)
e&m commerce - Our mobile payment business (PayByPhone) • Leader in mobile parking payments in UK, France, USA and Period ended March Canada, and well placed in fast growing markets PayByPhone net revenue by geography • Over 5 million users have registered on our system since inception 2012 2013 – O
Slide 19: Summary and outlook
Summary and outlook 19
Slide 20: Summary and outlook
Summary and outlook Current year trading is in line with the company’s expectations with a strong foundation for future growth We will continue to execute on our strategy: • Leverage and grow our retail business – payment revenue growth in UK and Romania – further enhance retail yield through the co
Slide 21: The essence of what we do
Appendix 1 The essence of what we do 21
Slide 22: The 'essence' of what we do
Appendix 1 The ‘essence’ of what we do • We process high volume consumer transactions, for multi-channel payments and retail services (e.g. parcels) for clients in vertical markets, through integrated flexible platforms • Payments are typically low value and cover retail, internet and mobile, with m
Slide 23: Materials to support the consumer transaction
Appendix 2 Materials to support the consumer transaction 23
Slide 24: UK Retail: Client payment media
Appendix 2 UK Retail: Client payment media 24
Slide 25: UK Retail: Retail store
Appendix 2 UK Retail: Retail store 25
Slide 26: UK Retail: Retailer external signage
Appendix 2 UK Retail: Retailer external signage 26
Slide 27: UK Retail: PPOS merchandising
Appendix 2 UK Retail: PPOS merchandising 27
Slide 28: UK Retail: Terminals and ATMs
Appendix 2 UK Retail: Terminals and ATMs 28
Slide 29: UK Retail: Terminal / PPOS receipts
Appendix 2 UK Retail: Terminal / PPOS receipts E Top-up Sample SPAR Tag E Voucher Utility Payment Transport Ticketing 29
Slide 30: UK Retail: PPOS virtual terminal
Appendix 2 UK Retail: PPOS virtual terminal 30
Slide 31: PayByPhone: Parking payment: IVR, SMS, mobile web
Appendix 2 PayByPhone: Parking payment: IVR, SMS, mobile web PAGE 31 PAGE 31 31
Slide 32: PayByPhone: Les Taxis Bleus
Appendix 2 PayByPhone: Les Taxis Bleus 3883 PAGE 32 PAGE 32 32
Slide 33: www.collectplus.co.uk
Appendix 2 www.collectplus.co.uk 33
Slide 34: www.collectplus.co.uk – Parcel delivery
Appendix 2 www.collectplus.co.uk – Parcel delivery 34
Slide 35: www.collectplus.co.uk – Parcel returns
Appendix 2 www.collectplus.co.uk – Parcel returns 35
Slide 36: Collect+: Phone pick up barcode
Appendix 2 Collect+: Phone pick up barcode 36
Slide 37: Collect+: UK Network
Appendix 2 Collect+: UK Network • Target network density - 1 Mile urban - 5 Mile rural Over 5250 locations live 37
Slide 38: PayCash – merchant's website
Appendix 2 PayCash – merchant’s website 38
Slide 39: PayCash – consumer voucher
Appendix 2 PayCash – consumer voucher 39