Paypoint Plc · LSE:PAY
Paypoint — H1 2014 Earnings Presentation
43 slides from Paypoint's earnings presentation, Nov 21, 2013
Slide 1: PayPoint plc Results for 26 weeks ended 30 September 2013
PayPoint plc Results for 26 weeks ended 30 September 2013 21 November 2013
Slide 2: Agenda
Agenda • Results summary 3 • Financial review 4 • Operational review 9 • Summary and outlook 18 • Appendices 20 2
Slide 3: Results summary
Results summary Period ended September1 • A set of strong results with progress across all parts of the Net revenue £m business in line with our strategy • Net revenue up 9.7% and operating profit up 10.9% to £20.9m • Retail net revenue up 10.0% 41.9 49.3 54.1 – UK and Ireland net revenue up 9.4% 20
Slide 4: Financial review
Financial review 4
Slide 5: Strong business momentum
Strong business momentum Period ended September 2011 2012 2013 £m £m £m 54.1 Net revenue 1 41.9 49.3 54.1 £m 49.3 Other cost of sales (5.9) (7.4) (8.1) 41.9 Administrative expenses (19.3) (23.1) (25.1) Operating profit 16.7 18.9 20.9 20.9 Share of Collect+ JV (0.9) (0.7) 0.2 18.9 16.7 Investment inc
Slide 6: Net revenue
Net revenue Period ended September 2013 £000 56,000 52,000 48,000 44,000 40,000 36,000 Top-ups Bill and general Retail services 2012 Internet PayByPhone Other 2013 6
Slide 7: Cash generation and use
Cash generation and use Period ended September 2011 2012 2013 £m £m £m Operating cash flows 18.9 21.4 24.1 Working capital (5.5) (2.7) (7.0) Cash generated by operations 13.4 18.7 17.1 Tax paid (5.3) (5.2) (5.0) Net cash inflow from operating activities 8.1 13.5 12.1 Net cash used in investing activ
Slide 8: Financial review - summary
Financial review - summary • Strong balance sheet • Continued growth in: – net revenues – earnings – dividends • On track to meet the company’s expectations taking into account the timing of expenditures 8
Slide 9: Operational review
Operational review 9
Slide 10: Retail (UK, Ireland & Romania)
Retail (UK, Ireland & Romania) • Strongly differentiated, over-the-counter payment proposition Period ended September 2013 • The network: Retail as a percentage of group net revenue – Over 34,000 convenience stores open early until late – Servicing most major utilities and service companies with lon
Slide 11: Retail
Retail Period ended September UK & Ireland Retail net revenue £000 • Bill and general payment revenues continued to show 1,125 growth, enhanced by the DWP’s Simple Payment 1,585 1,155 service 3,125 • Net revenue growth across most retail services 44,443 products – Good retail services network growth
Slide 12: Retail - Romania
Retail Period ended September Romania 2012 2013 • Bill payment transactions increased by 40.9% helped by the addition of RCS & RDS (branded DIGI), one of the largest bill Transactions (m) 14.4 19.3 issuers in Romania, and top-ups by 1.6% Transaction value (RON m) 1,106 1,662 • Bill payment market sh
Slide 13: Collect+
Collect+ • JV with Yodel to transform shopping fulfilment for consumers Period ended September • Pioneer and clear market leader in parcel collection and Collect+ at 100% 2012 2013 returns through local shops, as convenient alternatives to Transactions (millions) 3.3 5.7 home delivery or Post Office
Slide 14: Collect+
Collect+ • Collect+ solves the retailer challenge to provide consumers with a more convenient and flexible delivery and returns service • Customer research continues to demonstrate a growing preference for parcel collection point services; customers love the service • Collect+ will continue to grow
Slide 15: e&m commerce
e&m commerce • Core to group strategy to provide clients with Period ended September 2013 multi-channel payment capability e&m commerce as a percentage of group net revenue • Accesses fast growing markets and acts as a bridge for 14% the eventual migration of cash to electronic payments • Businesses
Slide 16: e&m commerce - 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 • Provides secure debit/credit card and other payments for web merchants as well as fraud screening and reporting 2012 2013 systems • Volumes
Slide 17: e&m commerce - Mobile payment business (PayByPhone)
e&m commerce - Our mobile payment business (PayByPhone) • Leader in mobile parking payments in UK, France, USA and Canada, Period ended September and well placed in fast growing markets PayByPhone net revenue by geography • Processed more than 100 million payments since launch 2012 2013 Other 2% Oth
Slide 18: Summary and outlook
Summary and outlook 18
Slide 19: Summary and outlook
Summary and outlook Current year trading is in line with the company’s expectations and provides a strong foundation for future growth We will continue to execute our strategy: • Leverage and grow our retail business – retail network expansion – continued development of our retail services propositi
Slide 20: The essence of what we do
Appendix 1 The essence of what we do 20
Slide 21: 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 22: Materials to support the consumer transaction UK Retail
Appendix 2 Materials to support the consumer transaction UK Retail 22
Slide 23: UK Retail: Client payment media
Appendix 2 UK Retail: Client payment media 23
Slide 24: UK Retail: Retail store
Appendix 2 UK Retail: Retail store 24
Slide 25: UK Retail: Retailer external signage
Appendix 2 UK Retail: Retailer external signage 25
Slide 26: UK Retail: In store merchandising
Appendix 2 UK Retail: In store merchandising 26
Slide 27: UK Retail: Terminals and ATMs
Appendix 2 UK Retail: Terminals and ATMs 27
Slide 28: UK Retail: Receipts
Appendix 2 UK Retail: Receipts E Top-up Sample SPAR Tag E Voucher Utility Payment Transport Ticketing 28
Slide 29: UK Retail: PPOS virtual terminal
Appendix 2 UK Retail: PPOS virtual terminal 29
Slide 30: UK Retail consumer
Appendix 3 UK Retail consumer 30
Slide 31: UK Retail consumer
Appendix 3 UK Retail consumer • Almost 20% of UK adults have used a PayPoint UK Retail product or service in the last 12 months* • Strong consumer advocacy – 98% customer satisfaction - very satisfied (86%) or satisfied (12%)** – High net promoter score of 71 (comparable to Apple and Virgin)* *TNS O
Slide 32: Materials to support the consumer transaction PayByPhone
Appendix 4 Materials to support the consumer transaction PayByPhone 32
Slide 33: PayByPhone: Parking payment: IVR, SMS, mobile web
Appendix 4 PayByPhone: Parking payment: IVR, SMS, mobile web 33
Slide 34: PayByPhone: Les Taxis Bleus
Appendix 4 PayByPhone: Les Taxis Bleus 3883 PAGE 34 PAGE 34 34
Slide 35: Materials to support the consumer transaction Collect+
Appendix 5 Materials to support the consumer transaction Collect+ 35
Slide 36: www.collectplus.co.uk
Appendix 5 www.collectplus.co.uk 36
Slide 37: www.collectplus.co.uk – Parcel delivery
Appendix 5 www.collectplus.co.uk – Parcel delivery 37
Slide 38: www.collectplus.co.uk – Parcel returns
Appendix 5 www.collectplus.co.uk – Parcel returns 38
Slide 39: Collect+: Phone pick up barcode
Appendix 5 Collect+: Phone pick up barcode 39
Slide 40: Collect+: UK Network
Appendix 5 Collect+: UK Network Collect+ live agents • Target network density - 1 Mile urban - 5 Mile rural Over 5,500 locations live 40
Slide 41: Materials to support the consumer transaction PayCash
Appendix 6 Materials to support the consumer transaction PayCash 41
Slide 42: PayCash – merchant's website
Appendix 6 PayCash – merchant’s website 42
Slide 43: PayCash – consumer voucher
Appendix 6 PayCash – consumer voucher 43