Paypoint Plc · LSE:PAY
Paypoint — H1 2016 Earnings Presentation
30 slides from Paypoint's earnings presentation, Nov 26, 2015
Slide 1: Results for the half year ended 30 September 2015
Dominic Taylor & George Earle 26 November 2015 Results for the half year ended 30 September 2015
Slide 2: Agenda
Agenda 2 Progress 3 Financial review 4 Operational review 9 Our retail differentiation 15 Summary and future developments 18 Appendices The essence of what we do 21 Materials to support the consumer transaction (UK retail) 23 Retail technology 29 Results for the half year ended 30 September 2015
Slide 3: Progress
Progress 3 Focus on multichannel payments and services, where we have retail networks • Busy transition as we refocus back on our retail business - Sale of Mobile and Online - Discussions with Yodel with respect to Collect+ - Reorganisation to improve focus and cost efficiencies These activities wil
Slide 4: Financial review
Financial review
Slide 5: Results in line with expectations
Results in line with expectations 5 6 months 6 months Period ended September 2014 2015 £m £m Net revenue1 57.9 59.3 Other cost of sales (7.9) (8.2) Operating costs (administrative expenses) (27.8) (29.3) Share of Collect+ JV 0.2 (0.4) Operating profit before goodwill impairment 2 22.4 21.4 Impairmen
Slide 6: Net revenue growth bridge
Net revenue growth 2.4% 6 £m 60 £(0.4)m £2.1m £0.3m £2.0m 58 £(0.6)m £59.3m £5.0m 56 £57.9m 54 Top-ups 2014/15 2015/16 Bill and general Mobile and Online Retail services Results for the half year ended 30 September 2015
Slide 7: Cash generation and use
Cash generation and use 7 6 months 6 months Period ended September 2014 2015 £m £m Operating cash flows 25.9 25.4 Working capital (8.9) 4.0 Cash generated by operations 17.0 29.4 Tax paid (5.0) (4.9) Net cash inflow from operating activities 12.0 24.5 Net cash used in investing activities (5.2) (5.4
Slide 8: Financial review – summary
Financial review – summary 8 • Good cash generation • Strong balance sheet • Dividend • Exciting opportunities to address: - Client multi-channel opportunities - Retail services and technology development - International expansion Results for the half year ended 30 September 2015
Slide 9: Operational review
Operational review
Slide 10: Retail Payments and Services
Retail Payments and Services 10 • Solid underlying results with progress across the business • Strongly differentiated, over-the-counter payment proposition Retail 2014 2015 • The network: Transactions (m) 303 313 - UK, Ireland and Romania Average spend per - Over 38,300 convenience stores open earl
Slide 11: Retail Payments and Services – UK & Ireland
Retail Payments and Services – UK & Ireland 11 • Bill and general net revenues continued to show UK & Ireland retail net growth, despite reduced electricity consumption 50 revenue bridge £2.0m • Multi channel payment solution attracting strong 48 £0.3m (£0.6m) sales interest from clients across vert
Slide 12: Retail Payments and Services - Romania
Retail Payments and Services - Romania 12 • Bill payment transactions increased by 15.6% • Bill payment share 21.3% (September 2015), up 1.3ppts Romania 2014 2015 from March 2015, with significant growth opportunities supported by national advertising campaigns to increase Transactions (m) 28.3 32.5
Slide 13: Collect+
Collect+ 13 • Growth in volume 18% and revenue 15% • 6,000 sites (4.9% growth since last year) • Over 300 participating brands boosted by Click and Collect and returns Collect+ at 100% 2014 2015 • Clear market leader in collection and returns Transactions (m) 8.4 9.9 • JV loss reflects Yodel increas
Slide 14: Mobile and Online in sale process
Mobile and Online in sale process 14 • 12% of group net revenue • Transaction growth 22.2% Mobile and Online 2014 2015 • Net revenue declined by 5.7% from lower core online payment processing offset by strong Transactions (m) 70 86 mobile growth Transaction value (£m) 2,424 2,388 • Mobile: Net reven
Slide 15: Our retail differentiation
Our retail differentiation
Slide 16: PayPoint retail differentiation – our track record
PayPoint retail differentiation – our track record… 16 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2015… A PayCash Cash out Payments Bill payment Mobile top-ups Multichannel payment platform Net settlement ATMs Dr/Cr Parcels Services EPoS Money transfer SIMs T1 terminal T2 terminal PPoS 3rd ge
Slide 17: Retail differentiation
Retail differentiation 17 Our differentiation will allow us to … PayPoint is uniquely placed, due to … • Extend our payments offer beyond cash • The footfall we provide to the retailer - via our multichannel payments and brand association platform for clients and - via our terminal for retailers • O
Slide 18: Summary and future developments
Summary and future developments
Slide 19: Summary and future developments
Summary and future developments 19 • Overall trading in the first half is in line with the company’s expectations and provides the foundation for future growth • The sale of Mobile and Online should complete by the year end and will enable us to focus on multi-channel payments and services where we
Slide 20: Appendices
Appendices
Slide 21: Appendix 1: The essence of what we do
Appendix 1 The essence of what we do
Slide 22: The essence of what we do
The essence of what we do 22 • 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 money flowi
Slide 23: Appendix 2: Materials to support the consumer transaction
Appendix 2 Materials to support the consumer transaction UK retail
Slide 24: UK Retail: Client media payment
Materials to support the consumer transaction UK Retail: Client media payment 24 Results for the half year ended 30 September 2015
Slide 25: UK Retail: Retail store
Materials to support the consumer transaction UK Retail: Retail store 25 Results for the half year ended 30 September 2015
Slide 26: UK Retail: Terminals, Pin Pads and ATMs
Materials to support the consumer transaction UK Retail: Terminals, Pin Pads and ATMs 26 Results for the half year ended 30 September 2015
Slide 27: UK Retail: PPOS virtual terminal
Materials to support the consumer transaction UK Retail: PPOS virtual terminal 27 Results for the half year ended 30 September 2015
Slide 28: UK Retail: New and developing sectors
Materials to support the consumer transaction UK Retail: New and developing sectors 28 Digital content Cash Out Results for the half year ended 30 September 2015
Slide 29: Appendix 3: Retail Technology
Appendix 3 Retail Technology
Slide 30: The next generation of PayPoint terminal
The next generation of PayPoint terminal 30 T2 standalone terminal PPoS integration T3 terminal • Introduced in 2005 • Introduced in 2010 • Tablet based design • UK & Ireland estate of 18,000 • Delivers PayPoint functionality • EPoS enabled with full • Standalone terminal with via retailers own EPOS