Feel good about payments
EARNING PRESENTATION
H1 - 2024
October 1st, 2024
AGENDA
1.
2.
3.
AccelR8 execution
H1-2024 Business and Financial review
Q&A session
01 | AbdeslamALAOUI SMAILI |
CEO |
ACCELR8 EXECUTION
01. ACCELR8 EXECUTION
ENVIRONMENT & HPS POSITIONNING
Market Global Dynamic
Non-cash transaction volume should grow by 15% p.a. in the next 5 years, mainly driven by the accelerated transition of less mature countries
Global non-cash transaction volume [# bn; 2017-2027F]
Source: National statistics, National central banks, ECB Statistical Data, Desk research
~2,046 | ||||
+15% p.a. | ~52 | MEA | ||
~154 | ||||
LATAM | ||||
~228 | ||||
NAM | ||||
~997 | ~401 | Europe | ||
+17% p.a. | ||||
~72 | ~27 | |||
~447 | ~169 | |||
~243 | ~1,211 | APAC | ||
~32 | ~13 | |||
~123 | ~486 | |||
~134 | ||||
~145 | ||||
2017 | 2022 | 2027F |
CAGR CAGR 17'-22'22'-27F'
16% 14%
18% 16%
7% 6%
13% 11%
27% 20%
- Increased number of non-cash transactions driven by:
- more users seduced by the convenience of non-cashtogether with increased acceptance of non-cashby merchants
- higher average number of transaction due to new consumers habits, and payment facilities offered by merchants
- Acceleration of transition of less mature regions during Covid time
- Faster relative growth in retail payment (vs. commercial) notably due to faster consumer adaptation, regulatory and multiplication of payment channels
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 5 |
Value creation leverages
Top Market Trends
Alternative payment methods and introduction of CBDC
Growth of buy now, pay later (BNPL) use
Declining cash usage
Replacement of legacy systems
Virtual cards, instant digital card issuance & tokenization
Top Regulatory Challenges
Durbin Amendment and the risk of future interchange regulations
GDPR compliance requirements
ISO 20022 messaging standard
Know Your Customer (KYC), Know Your Business (KYB), and anti-money laundering (AML) regulations
The second and third Payment Service Directives (PSD2 and PSD3) and open banking requirements
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 6 |
HPS, well positioned to capture value as a leading actor
Leading competitors Heat Map
Vendors | Provider | Client | Client | Product | |||||
stability | strength | service | features | ||||||
91% | 92% | 90% | 80% | ||||||
87% | 91% | 92% | 91% | ||||||
83% | 86% | 93% | 85% | ||||||
85% | 88% | 91% | 88% | ||||||
91% | 92% | 88% | 89% | ||||||
HPS | 91% | 91% | 89% | 93% | |||||
91% | 90% | 90% | 91% | ||||||
87% | 91% | 92% | 89% | ||||||
88% | 86% | 95% | 89% | ||||||
94% | 92% | 92% | 88% | ||||||
BEST IN CLASS | 91% to 100% | ||||||||
81% to 90% | |||||||||
INCUMBENT/EMERGING | 65% to 80% | ||||||||
Less than 65% | |||||||||
The review includes ACI Worldwide, BPC, Cascade, Enfuce, FIS, HPS, i2c, Paymentology, Solid, Worldline, Galileo, Marqeta, Nium and OpenWay
Provider strength
BEST
IN
CLASS
INCUMBENT
CONTENDERSHPS
EMERGING
Product performance
Source: Datos Insights Vendor Guide
August 2023
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 7 |
01. ACCELR8 EXECUTION
MAIN ACHIEVEMENTS OF ACCELR8
AccelR8 in numbers
HPS in 2022
Recurring $100m
48%
CAGR : 25%
Non-recurring
29%
Organic growth
12% < CAGR < 17%
Regular
HPS in 2027
Recurring
60%
Between
$220m
and
$300m
Non-recurring
15%
Regular
25%
23%
External growth
7% | 86% | 9% |
Americas | ||
Other | Asia | |
from $40m to $80m
EBITDA margin
from 25% to 30%
Resilience
60% recurring in 2027
Geographical expansion
Americas & Asia between
$80m and $100m
15%
Americas
70%
Other
15%
Asia
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 9 |
Strong impact of PowerCARD V4 on sales
⏵PowerCARD V4, a unique micro-service & Cloud-native technology that accelerate the growth
- HPS is witnessing unprecedented demand for its products, and specially Tier 1 banks, and we are continuing our efforts and deploying the required platforms to capture this demand.
⏵Record of new orders in 2024
- HPS is on pace to achieve during H2-2024 record new order intake this year: 3.5x the average sales of previous 3 years.
- These new sales include 4 of the world's top 100 banks.
- This will translate into MAD 550 million (USD 55 million) in new build which will flow through in the next 3-4 years and into MAD 80 million (USD 8 million) in additional annual SaaS revenue (recurring revenue) which will start in 2025/2026.
⏵Low impact on 2024, but strong rebound in 2025 and 2026
- Low level of new orders in 2023.
- Signature of these large contracts will take place in Q4 2024, so contribution to 2024 revenue is limited.
- New orders are weighted towards SaaS. This operating momentum isn't showing up in results and is temporarily depressing revenue growth and margins. For H1-2024, while EBITDA fell -5.6% YoY, if the projects had been in license mode, EBITDA would have increased by 25.4%.
- With the new business above, HPS would be mechanically delivering more revenue and higher margins compared to On-premise model in 2025/2026.
© 2024 HIGHTECH PAYMENT SYSTEMS. All rights reserved | CONFIDENTIAL | 10 |
Disclaimer
HPS - Hightech Payment Systems SA published this content on October 01, 2024 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 01, 2024 at 15:04:05 UTC.
