TIDMWPS
RNS Number : 3521Y
Eurowag
06 September 2022
6 September 2022
W.A.G payment solutions plc ("Eurowag", "EW" or the "Group")
Interim results for the six months ended 30 June 2022
DELIVERING STRONG AND RESILIENT GROWTH
W.A.G payment solutions plc ("Eurowag", "EW" or the "Group"), a
leading pan-European integrated payments & mobility platform
focused on the Commercial Road Transportation industry ("CRT"),
today announces its interim results for the six-month period ended
30 June 2022.
Financial highlights
The Group achieved strong half-year results with growth in line
with mid-term financial guidance.
-- Net energy and services sales(1) up 19.4% year-on-year to
EUR87.0m, with organic growth(1) of 18.0% year-on-year;
-- Payment solutions(1) grew by 17.2% year-on-year to EUR63.5m,
while mobility solutions(1) grew 25.7% year-on-year to
EUR23.5m;
-- Adjusted EBITDA(1) up 5.7% to EUR35.0m resulting in adjusted
EBITDA margin of 40.2% impacted by incremental PLC costs and WebEye
consolidation;
-- Adjusted EBITDA margin(1) on a comparable basis, excluding
WebEye consolidation, incremental PLC costs would be 43.3%;
-- Significant progress on transformational capital
expenditure(1) plan with EUR13.3m spent, in line with mid-term
guidance set at the IPO;
-- Net cash(1) position of EUR28.7m (gross cash of EUR181.5m) as
at 30 June 2022 providing for significant leverage headroom to take
advantage of strategic opportunities.
Growing scale and network within a high-quality
payments-oriented business model and highly diversified revenue
base, underpinned by strong net energy and services sales
growth.
-- Average active payment solutions customers(1) up 13.0% year-on-year to 16,523;
-- Average active payment solutions trucks(1) up 7.3% year-on-year to 87,626;
-- Payment solutions transactions(1) up 8.6% year-on-year to 17.7m;
-- Net revenue retention(1) for the last five years over 110%.
Key statutory financials 6M2022 6M2021 YoY
Revenue from contracts with customers
(EURm) 1,160.8 784.4 48.0%
-------- ------- --------
Profit before tax (EURm) 13.4 12.4 8.1%
-------- ------- --------
Basic EPS (cents/share) 1.29 1.53 (15.7%)
-------- ------- --------
Alternative performance measures 6M2022 6M2021 YoY
Net energy and services sales (EURm) 87.0 72.9 19.4%
------- ------- ---------
Adjusted EBITDA (EURm) 35.0 33.1 5.7%
------- ------- ---------
Adjusted EBITDA margin (%) 40.2 45.4 (5.2 pp)
------- ------- ---------
Adjusted basic EPS(1) (cents/share) 2.35 2.57 (8.6%)
------- ------- ---------
Strategic and operational highlights
-- Successfully managed volatile environment in fuel supplies
(shortages, surging fuel prices, changing regulations) and
increased resilience of the business.
-- Completed the acquisition of substantially all of the assets
of WebEye Telematics Zrt. ("WebEye"), a leading fleet management
solutions provider in Central and Eastern Europe, broadening the
Group's customer base (non-Hungarian subsidiaries acquired on 16
May 2022 and Hungarian subsidiaries acquired on 1 July 2022).
-- Expanded our acceptance network with a focus on LNG to
support the energy transition and decarbonization of the CRT
industry. The total number of contracted LNG stations rose to 304,
representing more than 50% of the European market.
-- Continued to strengthen our competitive moats by completing
trial operations for EETS in Germany, the largest tolling market in
Europe, resulting in the signing of the final admission by the
German Toll Charger and going live. Germany represents the biggest
share of toll transactions volumes across our business.
-- Simplified settlement and improved security by activating
mobile payments on all owned truck parks, as well as in the
acceptance network resulting in 388 POS ready for mobile
payment.
-- Expanded the senior leadership team through key hires in the
product and technology area to accelerate digital platform
development.
-- Tax refund has become more flexible adapting to several
regulatory changes in the legal framework across the EU countries.
Our consulting services help clients navigate through additional
complexity from the reciprocity agreements with countries outside
the EU territory.
-- RoadLords app is now installed on more than 3m mobile devices
across Europe with the active installation base reaching 600k
drivers during the H1 2022. Engagement of the regular users/drivers
increased by 25%.
-- Expanded the automation of credit scoring mechanism, allowing
us to benefit from the digital client journey and tailor customer
credit limit requirements.
-- Joined new consortium to advance Hydrogen for the CRT sector
and engage across the eMobility sector to promote standards for
e-Trucks.
Outlook
The Group has performed in line with management expectations
year-to-date. Looking ahead, we estimate organic net energy and
services sales for Q3 2022 of at least EUR44.5m which would
represent strong LTM growth in excess of 19.0% year-on-year. In
addition, Webeye's contribution to the top line for Q3 2022 is
expected to be at least EUR3.5m.
During the first half of 2022, fuel supply risks and
macroeconomic conditions have deteriorated, with inflation and
higher fuel prices moderately impacting the Group's operations and
operating expenses. Despite these challenges we expect to deliver a
resilient full year performance, with Adjusted EBITDA for the
year-to-date developing in line with expectations. While inflation,
the post Covid-19 cost rebase and additional PLC costs continue to
impact our profitability, we expect these incremental costs will be
offset by the profit delivered from WebEye in the second half of
the year.
Whilst the business has navigated with confidence through the
challenging environment, the Directors note elevated risks and
uncertainties with respect to the future of the European economy,
and potential impacts of the sanctions related to imports of
Russian oil introduced by the European Commission. Notwithstanding
these headwinds, and assuming no significant worsening of the
current environment, we remain confident in our future outlook and
reaffirm our mid-term guidance.
Martin Vohánka, Founder and CEO, commented:
"Along with many other businesses across Europe, Eurowag has had
to adapt to unprecedented circumstances over the past six months.
Still, the Group has delivered a strong set of results,
demonstrating the resilience of our business model, and
highlighting the importance of our services to the CRT
industry.
I am particularly pleased that we completed the WebEye
acquisition and established a public market track-record of
delivering value-accretive strategic M&A. Eurowag can now offer
integrated payment and mobility solutions to significantly more
customers across our core markets, and capitalise on the data from
even more connected trucks to help our customers run their
businesses more efficiently.
We continue to strengthen our senior leadership team with
appointments in the product and technology areas, to accelerate the
digital platform development. Our strong performance in the first
half would not have been possible without the commitment of our
people, so I would like to say thank you to all our employees."
Magdalena Bartoś, CFO said:
"Eurowag traded strongly in the first half and delivered
significant organic growth in net revenue and adjusted EBITDA. Our
business continues to grow scale, evidenced by the increasing
number of active trucks using our payment solutions, and the
expanding customer base provides more opportunities for effective
cross-selling, which improves loyalty and drives revenue retention.
Our robust balance sheet, which remains in a net cash position,
provides significant headroom to further invest in our
platform.
Looking ahead, whilst there continues to be a high level of
uncertainty, our expectations for the full year of 2022 remain
unchanged and we anticipate delivering results in line with our
mid-term financial guidance. With a clear strategy, we believe
Eurowag is well positioned to capitalise on further growth
opportunities and will continue delivering sustainable long-term
value for all our stakeholders."
Investor and analyst presentation today
Martin Vohánka (CEO) and Magdalena Bartoś (CFO) will host a
virtual presentation and a Q&A session for investors and
analysts today, 6 September 2022, at 9.00am BST. The presentation
and webcast details are available on the Group's website at
https://investors.eurowag.com
Please register to attend the investor presentation via the
following link:
https://www.lsegissuerservices.com/spark/WAGPAYMENTSOLUTIONS/events/f87d5021-326a-40f1-b3c9-4d5ded2885be
Enquiries
Eurowag
Tomáš Novotný
Head of Investor Relations
investors@eurowag.com
Instinctif Partners
Tim McCall, Galyna Kulachek, Bryn Woodward
IR and international media
eurowag@instinctif.com
About Eurowag
Eurowag was founded in 1995 and is a leading pan-European
integrated payments & mobility platform focused on the
Commercial Road Transportation ("CRT") industry. Eurowag's
innovative solutions makes life simpler for small and medium
businesses in the CRT industry across Europe through its unique
combination of payments solutions, seamless technology, a
data-driven digital eco-system and high-quality customer service.
https://investors.eurowag.com
Strategic review
Our strategy has been developed with the aim of democratising
the on-road mobility industry through a technological revolution.
It is built on five core pillars that will enable Eurowag to
capitalise on the opportunities that lie ahead and deliver growth
for all our stakeholders.
In H1 2022, we demonstrated substantial progress against our
strategy, differentiated our offerings, and grew scale and network
within a high-quality payment-oriented business model and highly
diversified revenue base.
1. Growth from existing customers.
Through further innovation in core payment services, and
integration and cross-selling with mobility services, we can retain
and expand our existing customer relationships by continuing to
meet their evolving needs. In H1 2022, the Group:
-- Expanded the acceptance network with a focus on LNG to
support the energy transition and adoption of low carbon fuels.
-- Continued to strengthen our competitive moats by completing
trial operations for EETS in Germany.
-- Maintained strong net revenue retention above 110%.
2. Geographic expansion and penetration.
We apply our scalable business model to new markets serving both
existing and new customers, thus expanding market share. In H1
2022, the Group:
-- Increased the number of Payment solutions active customers by
13%. The majority of the growth came from already established
markets in the Southern and Central cluster.
-- Started to expand into the DACH region (Germany, Austria,
Switzerland), establishing a new sales team of 15 strong industry
experts in Germany with a focus on acquisition of new customers in
this region which will support future growth.
-- Continued the roll out of digital sales channels in Western Europe to expand its footprint.
3. Go-to-market channel expansion.
We continue to acquire new customers through our marketing
strategy based on geographic clusters, and three sales channels
(direct, indirect and digital) with an increasing focus on digital
sales. In H1 2022, the Group:
-- Launched an end-to-end, fully automated digital customer
acquisition, credit scoring and onboarding channel in the Czech
Republic, Slovakia, Poland, Spain and France.
-- Built an extensive base of digital leads and achieved a high
conversion rate for turning these leads into new active
customers.
4. Digital platform development.
We continue to develop our end-to-end platform to be a conduit
for intermediate payments and data exchange between all parties,
thereby connecting digital services and physical assets. This
allows us to expand our client base to include shippers and freight
forwarders, as well as seamlessly integrating third-party providers
and financiers into our platform, thereby facilitating frictionless
interactions among industry participants to create a fully
connected marketplace. In H1 2022, the Group:
-- Further developed the digital platform by expanding the pilot for receivables financing.
-- Simplified settlement and improved security by activating
mobile payments on all owned truck parks, as well as in the
acceptance network.
-- Went live with SAP ERP with energy payments transactions
processed and enriched in the new system.
5. Accretive M&A.
We have a strong track record of identifying and executing
strategic M&A.
-- On 15 May 2022 and 1 July 2022, Eurowag completed the
acquisition of substantially all of the assets of WebEye Telematics
Zrt., a leading fleet management solutions provider in Central and
Eastern Europe. The transaction expands the Group's customer base,
and provides WebEye's 5,000 customers, and over 58,000 connected
trucks, which now have access to Eurowag's unrivalled range of
integrated end-to-end payment mobility solutions.
-- The Group continues to screen acquisition targets that will
create cross-sell and up-sell opportunities, generate cost and
revenue synergies, and further develop our product and technology
capabilities. We continue to actively manage a pipeline of future
opportunities that can support our inorganic growth.
Operational review
The Group is structured with two business segments, which each
deliver a range of services to clients, while also delivering cross
and up selling opportunities.
Payment solutions Mobility solutions
Serve customers with Provide a mix of re-occurring
mission critical needs transaction revenue, recurring
and often serve as an subscription and other fee-based
introduction to our services revenue streams
Energy payments Tax-refund services and Consulting
Services
Toll payments Telematics
E-Fleet management
Location-based products and
services
Roadside services
-----------------------------------
Payment solutions
Payments are a core part of our ecosystem and are comprised of
economically efficient and secure means of energy payments through
pre-pay or post-pay fuel cards, and toll payments by on-board units
("OBU"). They often serve as an introduction to our services for
customers. Payment solutions grew by 17.2% year-on-year to
EUR63.5m, representing 73% of total net energy and services
sales.
Energy payments
Our energy payment solutions generate mainly re-ocurring
transactional revenue through our network of acceptance points and
bunkering sites located on major transportation routes. These offer
customers a more efficient way to purchase and finance their energy
needs while on the road, offering competitive prices for their
energy at accessible locations across Europe, through pre-pay or
post-pay fuel cards.
In H1 2022, to support our geographic expansion and penetration,
we focused on adding acceptance points and bunkering sites
(capacity extension or new sites) with focus on TEN-T corridors,
both in traditional energy as well as alternative fuels. We
extended our card acceptance network for traditional fuels by
additional 104 locations to more than 17,000 in total.
Our business model is technology agnostic, with growing
alternative fuels network and strong eMobility presence. Our key
objective is to help our customers compete and grow in a low-carbon
economy - and we use our position to facilitate the transition to
low carbon fuels, including LNG. The Eurowag acceptance network now
includes LNG and compressed natural gas (CNG) stations in 12
European countries, covering 304 LNG stations, with new stations
being added almost daily.
As we continue reducing our carbon footprint with the shift to
renewable electricity at our sites, we installed photovoltaic
panels on truck park in the Arraia, Spain during 1H 2022. This will
further contribute to reducing GHG emissions from our
operations.
To support convenience, security and facilitate digital journey
of our CRT clients, EW activated mobile payments on all our truck
parks, as well as in the acceptance network in the first merchant
countries (Czech Republic, Slovakia, Poland, Hungary, Germany,
Belgium, Spain, Lithuania and Austria), resulting in 388 POS ready
for mobile payment as of 30 June 2022.
Toll payments
The EU has recently increased the requirements for European
member states to comply with the European Electronic Toll Service
("EETS"), aiming to create a harmonised EU-wide toll system to
simplify the administrative burden and reduce the associated costs.
We have taken the opportunity to build a proprietary EETS toll
payment solution, that from the outset integrates with our other
services, such as telematics, energy payment and fraud
prevention.
In H1 2022, we ran a successful trial EETS operation in Germany.
Germany is the single biggest toll volume domain in Europe and is
located at the intersection of major European international
transport routes according to EU TEN-T network, and EW is the first
EETS provider to manage the certification procedure under a new
mandatory regime. Pilot operations with real customers have been
completed, resulting in the signing of the final admission by the
German Toll Charger effective 1 August 2022. All prerequisites are
met in order to successfully grow in Germany, which is the largest
tolling market in Europe and represents the biggest share of toll
transaction volumes in Eurowag.
Part of the competitive moat is not only to certify and operate
new domains but also to manage the complexity of recertification in
already certified Toll domains caused by certification of new
domains. As expected, certification in Germany made recertification
in Austria and Belgium necessary, which we also successfully
underwent in Q2. This demonstrates that we are not only capable of
certifying our system in new domains but also to keep our existing
toll domains certified and operate successfully in a complex setup
with many technical dependencies across toll domains.
We continue to expand the coverage in our core market of Central
Europe. In the last few months, we have finished the technical
implementation of private highways in Poland, which starts to be
offered commercially. In addition, we are in active preparation for
the start of EETS Czech Republic and Slovakia with aim to retain
our strong position within Central and Eastern Europe as soon as
these markets open up for EETS. In the meantime, we serve customers
with currently available national toll service. In line with our
strategy, we continue with certification of all available
domains.
Mobility solutions
Through our mobility solutions segment, we offer customers tax
refund services, telematics products, smart routing and other
adjacent services. The segment provides a mix of re-occurring
transactional revenue, recurring subscription and other fee-based
revenue streams. Mobility solutions grew by 25.7% year-on-year to
EUR23.5m, representing 27% of total net energy and services
sales.
Tax refund and consulting services
Tax refund has continued to be one of the leading tax refund
providers offering all clients of Eurowag a broad array of products
and services. We offer tax refund services on standard VAT, ED
partial refund, pre-financed VAT, and advance payment of excise
duty ("APED"). Since January 2022, the product and service
portfolio has been enhanced with a new type of refund. This type of
tax refund includes hybrid financing, whereby the customers can
decide which of the submitted transaction shall or shall not be
financed. Alongside that, a customer can choose a standard refund
with a financing limit, which allows the customers to decide which
refundable tax amount shall be financed. These features create
maximum flexibility for the customers to utilize the tax refund and
its benefits.
During the reporting period, Tax refund has also improved the
efficiency of its processes by implementing fully automated
electronic submissions of tax refund applications in France,
including customers based outside the European Union, as well as
obtaining access to the Croatian tax refund portal, which also
allows customers to request tax refunds from Croatia.
In 2022, Tax refund was impacted by legislative changes in the
tax rate, which, in turn, affected the business model. These
changes have an impact on the tax refund as refundable rates (e.g.
Slovenia, Belgium, France, Italy) and VAT (e.g. Germany, Poland)
were reduced by the governments in order to support businesses and
consumers to respond to growing energy prices. Some of these
changes are temporary, whilst others are permanent.
As part of its commitment to delivering an integrated offer, in
close cooperation with an external partner Eurowag provides a range
of broader consulting services to its customers. This includes
supporting drivers and transport companies with the Minimum wage
regulations across Europe, and providing advice and guidance around
registering the necessary documents with local authorities.
The business also supports with CO2 emissions calculations which
subsequently enables customers to compensate for these either
financially or through certified projects.
The EU Commission rules for the road transport sector, Mobility
Package I, represent a key challenge for transport companies across
Europe as they include regulations on driving times, rest periods
and tachographs, and a very important directive on posting of
drivers including the minimum wage regulations in some EU
countries. Eurowag provides a digital solution to enable customers
to navigate Mobility package I, covering 12 languages.
Telematics
Combining advanced telematics data with state-of-the-art
software enables us to provide value added fleet management
services to our customers. Customers can easily track the real-time
location of their fleet and other key indicators from the trucks
such as mileage, fuel consumption, speed, load weight, driving time
and idling. Users can also plan routes based on real truck and
route parameters and get accurate estimations on the expected
transport costs.
Telematics enable customers to optimise their fleet management
processes; key innovative features include:
-- Remote tachograph download;
-- Border crossing reports;
-- Travel allowance and European Road Transport Agreement (AETR) calculations;
-- Fuel transaction visualisation.
Driving behaviour is also analysed via an in-house algorithm,
which provides valuable tailored insights on drivers and outlines
recommendations. The platform also supports the majority of
electric vehicles, both Battery electric vehicles (BEVs) and
Plug-in hybrid electric vehicles (PHEVs).
During H1 2022, we have added valuable new features to automate
fleet operations and improve efficiency:
-- The new Maintenance Module helps our customers to manage
vehicle maintenance plans and connect it with the utilisation and
planning management. The automated workflows can be set up based on
an odometer status event. There is also a possibility to setup
customised reminders, deadlines and automated triggers.
-- We have improved the ETA near-real-time calculation and
prediction by new insight - Border Crossing Times. The prediction
of the time is based on Telematics Big Data, which we collect from
all our telematics and toll units and is based on our proprietary
analytical algorithms.
-- To improve the profitability and planning process, we have
added a new Toll Costs Calculation and prediction based on the real
truck and route parameters.
-- Our customers can now offer their unutilised vehicles to
third-party fleets using the new Vehicle Sharing functionality to
improve not only the overall fleet efficiency but also contribute
to a solution tackling utilisation problem within the road-freight
transportation industry.
-- To improve the transportation management efficiency, we have
added new POI Alerts to inform dispatchers and shippers about
vehicles arriving or leaving important locations, e.g. loading or
unloading sites.
-- To help our customers to transition to low carbon future, we
have developed a Calculation of Energy Consumption and GHG
emissions tool. This tool can help our customers to calculate and
communicate the emissions of a shipment in the value chain to help
shippers understand and identify opportunities to reduce indirect
(Scope 3) GHG emissions.
Additionally, we introduced new features to help our customers
in Poland with:
-- Integration with the PUESC e-customs system developed by the
Customs Agency in Poland, which enables the mandatory submission of
electronic export declarations. We can now automate the process by
creating a PUESC account and registering required information for
the electronic declaration. Once a truck enters the territory of
Poland the electronic declaration process is automatically
triggered, leading to an easier and faster custom clearance
process.
-- Integration with Trans. eu freight exchange to enable
dispatchers to see the real-time recommendations for future
transports. These recommendations are rated based on various
parameters, such as distance and load weight, and provide
information on expected costs and the final shipment price. Once
selected, the shipment can be booked via the Trans.eu portal which
can be seen on the dispatcher's dashboard as an actual planned
route.
E-Fleet management
Customers can benefit from using a single telematics solution
with fleets that combine standard diesel/petrol engines, battery
electric vehicles, and plug-in hybrids. With an eMobility licence
subscription, the on-board unit can read additional metrics such as
state of charge, driving range, or battery status. With this data
available, a dispatcher can plan a trip for an electric vehicle,
manage home/company charging, or assess charging behavior of a
plug-in hybrid vehicle user.
At the beginning of Q2, we started the next phase of the eTruck
pilot project with DHL and installed Eurowag telematics unit into
the first electric truck in the Czech Republic. Based on the
collected data (e.g. state of charging or range), we can help our
customers even more to lead their journey toward the
electrification of their fleets.
Location based products and services
We offer smart navigation products and location-based services
through our brand Sygic, one of the leaders in providing smart
routing worldwide for both individual truck drivers and various
size fleets.
Key highlights from H1 include:
-- New navigation functionalities aimed at reducing driver
distraction and supporting road safety, while mirroring navigation
instructions on a car display. A phone can also be operated as a
stand-alone device with some extra and camera-based features used
simultaneously.
-- We introduced an enhanced navigation feature over Low
emission zones and Clear air zones in the UK. Using the latest map
data combined with a vehicle profile allows our algorithm to find
the best route over those zones.
During H1 2022, the Group's community-based trucking ecosystem
linking drivers with each other and crowdsourcing unique trucking
data, RoadLords app was installed on more than 3m mobile devices
across Europe, whilst the active installation base has reached 600k
drivers. The engagement of regular users/drivers has also improved
by 25%.
Community or RoadLords truck drivers have already created more
than 30,000 new trucking-related points of interest, including more
than 12,000 new parking places suitable for tucks and 14,300
company addresses used for loading or unloading. During H1 2022,
truck drivers informed the community about more than 18,000 road
incidents and over 45,000 hazards or vehicles blocking the
route.
To improve near-real-time visibility, during the reporting
period, we added a new Share ETA functionality for drivers allowing
them to share their position and ETA with shipper, forwarder,
consignee, or dispatcher. We also added Toll Costs Calculation
feature in order to provide more reliable planning based on more
precise cost estimation.
Sygic's GPS navigation & eMobility app offers drivers an
all-in-one solution with integrated payment for charging electric
vehicles: it helps to find a charging station, get navigated to it
and pay for a service.
Key developments in H1 2022 include:
-- Introduced simplified ways of connecting our eMobility
Service Provider (EMSP) accounts with partners to enhance user
experience. This helps both EW and partners expand our cooperation
and share end-users both ways.
-- Cooperated with Plugsurfing, TomTom, Polyfazer, ChargeUp,
eJoin, GreenWay and Elec2Go, to increase the coverage of our
charging points network to more than 466,000 charging points, of
which approximately 290,000 have online data and payment
capabilities.
Roadside services
The Group currently offers its customers 5 roadside services:
parking, washing, cleaning, truck repairs and ferry booking, across
more than 1,300 locations in 18 countries. This not only supports
one of the Group's strategic pillars aimed at growth from existing
customers by extending share of the wallet, but also provides truck
drivers with safety and comfort of using EW card for various
payments, making their life easier.
Responsibility and sustainability
Introduced in 2021, Eurowag's sustainability strategy is based
on its social and environmental responsibilities, aiming to create
sustainable financial and technological solutions for the benefit
of the industry, society and the environment. While these
sustainability principles have always been at the core of Eurowag's
purpose, we have formalized our approach to help our customers
prosper, make road transport cleaner, fairer and more efficient,
and help our employees and communities thrive in a healthy
environment.
We set targets including:
-- A carbon reduction target to reduce emissions from our own
operations (Scope 1 and Scope 2) by 50% by 2030 on a 2019 baseline
with Scope 3 target under development;
-- A Diversity, Equity, and Inclusion target to have 40% female
representation in leadership roles on a 2021 baseline by 2025;
-- Achievement of a top 25% of employee engagement score as
compared to EU Tech companies benchmark by 2025.
We are now:
-- Making steady progress against our sustainability commitments and targets in H1;
-- Enhancing partnerships to drive a more efficient and better
connected and lower carbon CRT sector;
-- Enhancing and expanding transitional, low carbon and eMobility solutions for our customers;
-- Supporting colleagues and communities in the response to the war in Ukraine;
-- Transitioning to renewable electricity to reduce our operational emissions.
Key highlights from H1 include:
Collaborating with the Industry to drive a more efficient,
better connected and lower carbon CRT sector
-- Joined new multistakeholder consortium to advance Hydrogen for CRT sector.
-- Participated in CharIN, the leading global association
dedicated to promote interoperability for E-Charging Systems
through our LMS business. Thanks to this, we are monitoring and
engaging in industry developments including discussions about a
future charging standard for heavy commercial vehicles.
Enhancing and expanding our low carbon solutions and services
for customers to help make their operations more efficient and
sustainable
-- Commissioned customer research in nine European markets aimed
at identifying and improving ways we can help customers accelerate
the move to low carbon solutions.
-- Expanded transitional, low carbon and eMobility solutions by
adding 101 new POS into our LNG acceptance network, starting
construction of two new LNG sites in the Czech Republic and
increasing eMobility network coverage to more than 466,000 charging
points for passenger cars.
-- Introduced via Sygic a navigation support feature over low
emission zones and Clear air zones in the UK. Using the latest map
data combined with a vehicle profile allows our algorithm to find
the best route over those zones.
-- Developed an energy consumption and GHG emissions calculation
feature in EW Telematics application. GHG emissions of rides can
help EW Telematics customers to communicate the GHG emissions of a
shipment in the value chain to help shippers understand indirect
(Scope 3) GHG emissions.
-- Continued support and services for customer wellbeing
o Financial wellbeing partnerships: partnering with a non-profit
organization (Institut prevence a ř ešení předlu ení) to offer debt
relief and financial wellbeing services to all drivers in the Czech
Republic. In addition, the Group entered into a cooperation
agreement with an external partner to provide advisory services to
drivers and transport companies to meet minimum wage regulations
across Europe.
o New functionalities to Sygic navigation aimed at reducing
driver distraction and supporting road safety - while mirroring
navigation instructions on a car display, a phone can also be used
as a stand-alone device with some extra and camera-based features
used simultaneously.
Reducing our carbon footprint and supporting employees and
communities affected by the war in Ukraine.
-- Continued to reduce our carbon footprint with the shift to
renewable electricity at our sites by installing photovoltaic
panels on truck park in Arraia, Spain.
-- Continued supporting employees and communities affected by
the war in Ukraine: financial support provided to 46 people; direct
support of 14 NGOs through Ukraine Aid and Philanthropy and You; 69
employees participated in matched fundraising campaign to support
People in Need's humanitarian efforts in Ukraine and in
neighbouring countries
-- Completed our 2022 employee driven charity programme with
more than 83% of employees participating in 227 projects across 14
countries.
Organizational culture and change management
At Eurowag we continue to build on and embed our Company values
by promoting the following:
-- Be a good person - our focus is on our social responsibility
programmes as well as ensuring all our colleagues are acting fully
in accordance with our compliance and ethics standards.
-- Be a true colleague - by working towards a culture of
collaboration, flexibility and two-way communication.
-- Embrace change - improving our change management capability
and creating a culture of continual improvement and learning.
-- Deliver your best - ensuring we have the right skills in the
organisation and insisting on razor sharp accountability and
increased performance management.
Listing on the London Stock Exchange has helped us to follow our
talent strategy of attracting critical skills to Eurowag from a far
larger and more diverse talent pool across Europe. This capability
will enable us to transform and change our business and deliver our
longer term business goals, giving us a great competitive
advantage. Examples of this are key hires in the product and
technology area to accelerate our digital platform development.
We ran our first employee engagement survey (previously we used
eNPS) in the first quarter of 2022. It was completed by 90% of our
colleagues and we achieved an engagement score of 68%. The aim of
reaching the top quartile by 2025 remains a top priority KPI for
us.
Financial review
Eurowag delivered a strong set of results in the first half,
demonstrating the resilience and strength of our business model and
proposition, as well as further highlighting the importance of our
services to the CRT industry. This result is testament to the
commitment and resourcefulness of our team.
The first six months of the year had an exceptional range of
challenges, many of which are expected to continue into the second
half. We had to rapidly respond to all these challenges and ensure
continued and seamless operations across all our regions.
The war in Ukraine is shocking and has had a number of knock-on
effects on the macroeconomic environment, including a hike in
energy prices and inflation. Faced with a rising cost of living,
multiple governments have introduced measures to ease the burden of
high energy prices on consumers, some permanently, some on a
temporary basis. Among others, this includes fuel prices being
capped in Hungary, a Government fuel price compensation scheme
introduced in Spain, as well as a temporary reduction of VAT rates
applied in Poland. This uncertain regulatory landscape has
represented a headwind to the business, and Eurowag has also had to
respond quickly to the various sanctions imposed by European
markets across its operations, targeting Russia. All of this has
come off the back of the two years of disruption caused by the
Covid-19 pandemic.
To grow our customer base and maintain customer retention, as
well as deliver an increase in revenues and adjusted EBITDA against
this backdrop, represents a significant achievement. Along with
successfully completing our first acquisition post IPO, we have
further developed our digital capabilities and strengthened our
team to ensure we can continue to deliver on our ambitious
strategy. The trading performance reported in the first six months
confirms the strength of our proposition to CRT industry. Group Net
energy and services sales growth of 19.4% year-on-year was
delivered through further expanding our customer base in the
payment solutions segment (average number of active customers up by
13.0%), enhanced by effective cross selling of our mobility
solutions and strong average net revenue retention of above
110%.
Adjusted EBITDA increased by 5.7% year-on-year to EUR35.0m
(2021: EUR33.1m). Adjusted EBITDA margin decreased year-on-year to
40.2% (2021: 45.4%), reflecting EUR2.0m incremental PLC related
costs and impact of WebEye consolidation (EUR0.1m). Adjusted EBITDA
margin on a comparable basis, excluding incremental PLC costs and
WebEye consolidation would be 43.3%. Increased operating costs due
to lower Covid-19 impacted base and inflation of EUR0.8m, as well
as EUR0.6m severance payments and the EUR0.5m share-based payment
("PSP") cost further impacted Adjusted EBITDA margin in the first
half of 2022.
Adjusted basic EPS decreased by 8.6% year-on year to 2.35 cents
per share (2021: 2.57), predominantly due to higher basic weighted
average number of shares in 2022 as a result of new shares issued
in Eurowag's IPO.
On a statutory basis, profit before tax increased by 8.1%
year-on-year to EUR13.4m (2021: EUR12.4m), while basic EPS
decreased by 15.7% to 1.29 cents per share (2021: 1.53) due to
higher basic weighted average number of shares in 2022.
As a result of our IPO primary equity raise and supported by our
underlying highly cash generative business model, our overall
financial position remains strong with reported EUR28.7m of net
cash as of the end of June 2022.
In line with the strategy announced at the IPO, we continued
investing in our digital transformation and inorganic growth.
During the first six months of 2022, our transformational capital
expenditure totaled EUR13.3m, while investments in our subsidiaries
and associates reached EUR25.9m.
Performance review
Below is a summary of the segmental performance and explanatory
notes related to items including corporate expenses, alternative
performance measures, taxation, interest, investment and cash flow
generation.
Segments
6M2022 6M2021 YoY (EURm) YoY
(EURm) (EURm)
Segment revenue total 1,160.8 784.4 376.4 48.0%
-------- -------- ----------- -------
Payment solutions 1,137.3 765.7 371.6 48.5%
-------- -------- ----------- -------
Mobility solutions 23.5 18.7 4.8 25.7%
-------- -------- ----------- -------
Net energy and services
sales total 87.0 72.9 14.1 19.4%
-------- -------- ----------- -------
Payment solutions 63.5 54.2 9.3 17.2%
-------- -------- ----------- -------
Mobility solutions 23.5 18.7 4.8 25.7%
-------- -------- ----------- -------
Expenses included in
Contribution(1) 15.1 12.1 3.0 24.8%
-------- -------- ----------- -------
Contribution total 71.9 60.8 11.1 18.3%
-------- -------- ----------- -------
Payment solutions 54.9 47.8 7.1 14.9%
-------- -------- ----------- -------
Mobility solutions 17.0 13.0 4.0 30.8%
-------- -------- ----------- -------
Contribution margin(1)
total 83% 83% 0 pp N/A
-------- -------- ----------- -------
Payment solutions 87% 88% (1 pp) N/A
-------- -------- ----------- -------
Mobility solutions 72% 70% 2 pp N/A
-------- -------- ----------- -------
Corporate overhead and
indirect costs before
adjusting items (36.9) (27.7) (9.2) 33.2%
-------- -------- ----------- -------
Adjusted EBITDA 35.0 33.1 1.9 5.7%
-------- -------- ----------- -------
Adjusting items affecting
Adjusted EBITDA (5.5) (5.4) (0.1) 1.9%
-------- -------- ----------- -------
EBITDA(1) 29.5 27.7 1.8 6.5%
-------- -------- ----------- -------
Depreciation and amortisation 12.4 10.5 1.9 18.1%
-------- -------- ----------- -------
Operating profit 17.1 17.2 (0.1) (0.6%)
-------- -------- ----------- -------
The Group's total revenues increased by 48.0% year-on-year to
EUR1,160.8m driven by higher energy prices (a corresponding growth
was reported for costs of energy sold) and as a result of the
growing scale of our payment solutions.
The Group delivered double-digit Net energy and services sales
growth and strong Contribution margins in both segments. Growth in
organic Net energy and services sales was 18.0%, while the overall
Net energy and services sales were up 19.4% given a EUR1.0m
positive impact from WebEye.
Payment solutions Net energy and services sales grew by 17.2%
year-on-year, driven by strong new customer and truck acquisitions
underpinned by strong Net revenue retention.
Mobility solutions Net energy and services sales grew by 25.7%
year-on-year, mainly as a result of effective cross-sell, as well
as sales to automotive partners and WebEye's consolidation.
In terms of geographic breakdown, the Central cluster remains
the largest segment with nearly 50% share of total Net energy and
services sales (2022: EUR43.3m, 2021: EUR35.4m). All markets in the
Central cluster delivered strong double-digit growth. Southern
cluster has kept the momentum from 2021 and remains the fastest
growing area with 35.8% (32.2% organic) year-on-year increase
(2022: EUR28.1m, 2021: EUR20.7m). A decline of Western cluster's
Net energy and services sales by 12.2% (2022: EUR12.1m, 2021:
EUR13.8m) was mainly due to lower number of average active payment
solutions customers (500 customers). Customer churn has been driven
by business closures reflecting challenging market environment and
ADS client base migration to Eurowag platform which is expected to
conclude by end of 2022.
Corporate expenses
6M2022 6M2021 YoY (EURm) YoY
(EURm) (EURm)
Expenses included in
Contribution 15.1 12.1 3.0 24.8%
-------- -------- ----------- ------
Corporate overhead and
indirect costs before
adjusting items 34.4 27.7 6.7 24.2%
-------- -------- ----------- ------
Incremental PLC related
costs and PSP 2.5 0.0 2.5 N/A
-------- -------- ----------- ------
Adjusting items affecting
Adjusted EBITDA 5.5 5.4 0.1 1.9%
-------- -------- ----------- ------
Depreciation and amortisation 12.4 10.5 1.9 18.1%
-------- -------- ----------- ------
Total 69.9 55.7 14.2 25.5%
-------- -------- ----------- ------
The above table is relevant for segmental review, while below
table summarises corporate expenses based on statutory financials
categories:
6M2022 6M2021 YoY (EURm) YoY
(EURm) (EURm)
Employee expenses 32.8 26.5 6.3 23.8%
-------- -------- ----------- --------
Impairment losses of
financial assets 2.7 1.2 1.5 125.0%
-------- -------- ----------- --------
Technology expenses 3.9 2.8 1.1 39.3%
-------- -------- ----------- --------
Other operating income (0.2) (0.3) 0.1 (33.3%)
-------- -------- ----------- --------
Other operating expenses 18.3 15.0 3.3 22.0%
-------- -------- ----------- --------
Depreciation and amortisation 12.4 10.5 1.9 18.1%
-------- -------- ----------- --------
Total 69.9 55.7 14.2 25.5%
-------- -------- ----------- --------
Employee expenses increased by 23.8% year-on-year to EUR32.8m as
the Group focused on priority hires, talent retention,
strengthening the structure and implementing remuneration schemes
appropriate for a listed company. Adjusting items included in
employee expenses amounted to EUR4.2m in the first half of 2022
(2021: EUR2.1m).
Impairment losses of financial assets amounted to EUR2.7m (2021:
EUR1.2m) as a result of increased risk due to higher notional
credit exposure reflecting higher energy prices. Our customer
exposure impacted credit losses ratio(2) that increased from 0.1%
to 0.2%. Nevertheless, our expertise in managing credit risk and
cash collections resulted in strong and stable ageing performance
of our receivables portfolio with approximately 80% current
balances as of the end of June 2022.
Technology expenses increased by 39.3% to EUR3.9m, largely as a
result of the Group's focus on technology transformation, cloud
transition and expenses related to the new generation ERP system.
Adjusting items included in technology expenses amounted to EUR0.2m
in the first half of 2022 (2021: EUR0.1m).
Other operating expenses increased by 22.0% to EUR18.3m, mainly
due to PLC related costs of EUR1.6m (2021: EUR0.0m), return of
travel and other costs post Covid-19 and inflation of EUR0.8m.
Adjusting items included in other operating expenses amounted to
EUR1.1m in the first half of 2022 (2021: EUR3.2m).
Depreciation and amortisation grew by 18.1% to EUR12.4m,
primarily as a result of increased transformational technology
being put into production. Adjusting items included in depreciation
and amortisation amounted to EUR3.4m in the first half of 2022
(2021: EUR3.6).
Net finance expense
Net finance expense in the first six months of 2022 was EUR3.3m
(2020: EUR4.5m). The decrease reflects mainly improved result on
revaluation of derivatives and lower foreign exchange losses,
partially offset by higher factoring fees related to higher average
factoring limits utilization throughout the year to date and
interest charges reflecting higher average level of borrowings in
the first six months ending 30 June 2022 compared to the
corresponding period of 2021.
Taxation
The Group tax charge of EUR4.3m (2021: EUR3.6m) represents an
effective tax rate of 31.7% in 2022 (2021: 28.9%). Corporate income
tax for companies in the Czech Republic and the United Kingdom for
2021- 2022 was 19%, while in Spain it was set at 24%. They
represent the major tax regimes in which the Group operates.
The Group's effective tax rate is impacted by the tax impact of
Adjusting items. It is, therefore, helpful to consider the
underlying and adjusting items affecting tax rates separately:
-- The effective tax rate on Adjusted earnings(1) before tax for
the year decreased to 24.4% (2021: 29.0%), largely due to taxes in
respect of prior years paid in 2021.
-- The effective tax rate for Adjusting items was 13.3% (2021: 28.9%) and was driven mainly by equity-settled share-based payments.
We adopted a prudent approach to our tax affairs, aligned with
business transactions and economic activity. We have a constructive
and good working relationship with the tax authorities in the
countries in which we operate and there are no outstanding tax
audits with the exception of Hungary and Slovakia.
EPS
Basic EPS for 2022 was 1.29 cents per share, a decrease of 15.7%
relative to 2021. This was predominantly due to higher basic
weighted average number of shares in 2022 as a result of new shares
issued in Eurowag's IPO.
Adjusted basic EPS(1) for 2022 was 2.35 cents per share,
representing a decrease of 8.6% relative to 2021, based on the
weighted average number of ordinary shares in issue during the year
of 688,911,333. After accounting for the impact of PSP, adjusted
diluted earnings per share was 2.35 cents per share. Adjusting
items are as described below.
Investments in subsidiaries and associates
Acquisition of WebEye Group
Further to the subsequent events discussed in the 2021 Annual
Report, the Group signed a novated agreement on 16 May 2022 to
acquire substantially all of the assets of WebEye Telematics Zrt.,
a leading fleet management solutions provider in Central and
Eastern Europe. The Company paid EUR23.3m in cash upon the
acquisition of 100% of the share capital of the non-Hungarian
subsidiaries and a further EUR19.9m was paid upon completion of the
acquisition of the Hungarian subsidiaries on 1 July 2022. In
addition, the Company will pay a deferred settlement component
within three years of closing, a portion of which is contingent
upon the achievement of certain KPIs. The maximum amount, including
the deferred amount of the purchase price, is capped at
EUR60.6m.
The transaction will expand the Group's customer base, and
WebEye's customers will gain access to Eurowag's unrivalled range
of integrated end-to-end payment and mobility solutions leading to
incremental revenue opportunities. Furthermore, data from the
connected trucks will provide insights and enable the continual
development of new and improved solutions to address customers'
needs.
The provisionally determined fair values of identifiable assets
and liabilities of non-Hungarian subsidiaries of WebEye as at the
date of acquisition were:
(EURm)
Total Assets 19.8
--------
Total Liabilities 2.6
--------
Total identifiable net assets
at fair value 17.2
--------
Goodwill arising on acquisition 19.7
--------
Purchase consideration:
--------
Cash paid 23.3
--------
Deferred consideration (discounted) 13.6
--------
Total purchase consideration 36.9
--------
From the date of acquisition until 30 June 2022, non-Hungarian
subsidiaries of WebEye contributed EUR1.0m of revenue and EUR0.2m
loss after tax (mainly driven by amortisation of acquired
intangibles).
If the acquisition of combined Hungarian and non-Hungarian
WebEye entities had occurred on 1 January 2022, consolidated
revenue and consolidated loss after tax for the half year ended 30
June 2022 would have been EUR 7.4m and EUR0.1m respectively.
Excluding amortisation of acquired intangibles the profit after tax
would have been EUR 1.2m. Consolidated revenue for the six months
would have been evenly distributed between the two
acquisitions.
Pay-out of deferred consideration related to Last Mile
Solutions
On 31 January 2022, the Group paid deferred acquisition
consideration of EUR3.0m related to acquisition of company
Threeforce B.V. (Last Mile Solutions).
Balance sheet
Net assets of the Group increased by 6.3% to EUR302.6m, mainly
reflecting profit for the six months ending 30 June 2022 and
positive revaluation of cash-flow hedges.
Intangible assets of the Group excluding goodwill increased by
EUR23.8m to EUR112.0m in the reporting period, predominantly due to
WebEye acquisition and investments into the strategic IT
transformation.
Goodwill comprises mainly CGU(1) Energy of EUR40.2m, CGU
Navigation of EUR34.6m and CGU Telematics of EUR45.8m. Goodwill is
tested for impairment on an annual basis, there was no impairment
posted in 2021 and no impairment indicators were identified in the
first six months of 2022.
Inventories increased by EUR9.8m to EUR19.4m mainly due to
higher stock of on-board units resulting from the Group's decision
to move production to an alternative supplier, thus, cancelling
cooperation with a manufacturer owned by Russian individuals. The
remaining growth mainly reflects the WebEye consolidation and
higher value of fuel inventory reflecting increased energy prices
in the reporting period.
Trade and other receivables increased by EUR131.7m to EUR432.3m,
mainly due to higher volume of transactions and increased energy
prices.
Trade and other payables increased by EUR127.1m to EUR441.7m as
a result of the factors mentioned above.
Cash performance
6M2022 6M2021 YoY (EURm) YoY
(EURm) (EURm)
Net cash generated from
operating activities 16.4 4.0 12.4 310.0%
-------- -------- ----------- ---------
Net cash used in investing
activities (47.5) (27.1) (20.4) 75.3%
-------- -------- ----------- ---------
Net cash used in financing
activities (11.5) (0.1) (11.4) 11400.0%
-------- -------- ----------- ---------
Net increase in cash
and cash equivalents (42.6) (23.2) (19.4) 83.6%
-------- -------- ----------- ---------
Cash and cash equivalents
at beginning of period 224.2 89.0 135.2 151.9%
-------- -------- ----------- ---------
Cash and cash equivalents
at end of period (presented
in statement of cash
flows) 181.5 65.8 115.7 175.8%
-------- -------- ----------- ---------
Bank overdrafts 0.0 (12.7) 12.7 (100.0%)
-------- -------- ----------- ---------
Cash and cash equivalents
at end of period (presented
in statement of financial
position) 181.5 78.5 103.0 131.2%
-------- -------- ----------- ---------
Interest-bearing loans
and borrowings 152.8 162.5 (9.7) (6.0%)
-------- -------- ----------- ---------
Net cash/(debt) 28.7 (84.0) 112.7 (134.2%)
-------- -------- ----------- ---------
As at 30 June 2022, the Group's net cash position stood at
EUR28.7m compared to EUR61.7m as at 31 December 2021.
The decrease in the level of cash is due to the cash outflows
used in investing activities, including technology transformation
investments, the acquisition of WebEye, deferred consideration due
on LMS, as well as repayments of borrowing compensated by
underlying cash generation, which was in turn offset by the
settlement of IPO related expenses.
Net cash flows from operating activities increased from EUR4.0m
in 2021 to EUR16.4m, primarily due to business performance
supported by stable working capital movements. Impact related to
Adjusting items in the reporting period amounted to of EUR7.7m
(2021: EUR3.3m).
Interest paid increased to EUR2.3m reflecting higher average
level of borrowings in the first six months ending 30 June 2022
compared to the corresponding period of 2021.
Tax paid decreased by EUR1.0m due to lower advance payments.
Net cash used in investing activities increased by EUR20.4m in
the first six-month period to EUR47.5m, largely due to the outflows
in connection with capital expenditure related to investment in the
development of technology (increase of EUR4.8m) and outflows
related to investments in subsidiaries and associates (increase of
EUR14.5m).
Net cash from financing activities amounted to an outflow of
EUR11.5m in the reporting period representing the repayments of
borrowings due to amortisation of Senior Facilities Agreements and
lease payments.
The cash impact of Adjusting items was EUR0.5m for
M&A-related expenses, EUR1.7m for strategic transformation
expenses, EUR5.3m for non-recurring IPO-related expenses and
EUR0.1m for share-based compensation in 2022.
Capital expenditure
Capital expenditure in the first six months of 2022 amounted to
EUR19.9m compared to EUR15.3m for the previous year. This increase
relates to investments into our technology platform and existing
asset base.
The Group's transformational investment programme was EUR13.3m
(2021: EUR11.6m) and continued to focus on expanding the customer
and products capabilities for the Group, including the digital
customer journey, EETS Toll and new Telematics and Pro Navi, as
well as new generation ERP and the integrated offering.
The Group's ordinary capital expenditure totalling EUR6.6m
(2021: EUR3.6m) represents reinvestment into the platform and
assets base and amounted to 7.6% of Net energy and services sales
compared to 5.0% in the corresponding period of previous year.
Alternative performance measures
The Group has identified certain Alternative Performance
Measures ("APMs") that it believes provide additional useful
information to the readers of Consolidated Financial Statements and
enhance the understanding of the Group's performance. These APMs
are not defined within IFRS and are not considered to be a
substitute for, or superior to, IFRS measures. These APMs may not
be necessarily comparable to similarly titled measures used by
other companies. Directors and management use these APMs alongside
IFRS measures when budgeting and planning, and when reviewing
business performance. Executive management bonus targets include an
adjusted EBITDA measure and long-term incentive plans include an
adjusted basic EPS measure.
6M2022 6M2021 YoY (EURm) YoY
(EURm) (EURm)
Profit before tax 13.4 12.4 1.0 8.1%
-------- -------- ----------- ---------
Net finance expense and
share of net loss of
associates 3.7 4.8 (1.1) (22.9%)
-------- -------- ----------- ---------
Depreciation and amortisation 12.4 10.5 1.9 18.1%
-------- -------- ----------- ---------
EBITDA 29.5 27.7 1.8 6.5%
-------- -------- ----------- ---------
M&A-related expenses 0.5 0.1 0.4 400.0%
-------- -------- ----------- ---------
Non-recurring IPO-related
expenses 0.0 2.8 (2.8) (100.0%)
-------- -------- ----------- ---------
Strategic transformation
expenses 1.7 0.8 0.9 112.5%
-------- -------- ----------- ---------
Share-based compensation 3.3 1.7 1.6 94.1%
-------- -------- ----------- ---------
Adjusting items 5.5 5.4 0.1 1.9%
-------- -------- ----------- ---------
Adjusted EBITDA 35.0 33.1 1.9 5.7%
-------- -------- ----------- ---------
6M2022 6M2021 YoY (EURm) YoY
(EURm) (EURm)
Profit for the year 9.2 8.8 0.4 4.5%
-------- -------- ----------- --------
Amortisation of acquired
intangibles 2.8 2.7 0.1 3.7%
-------- -------- ----------- --------
Amortisation due to transformational
useful life changes 0.7 0.9 (0.2) (22.2%)
-------- -------- ----------- --------
Adjusting items affecting
Adjusted EBITDA 5.5 5.4 0.1 1.9%
-------- -------- ----------- --------
Tax effect (1.3) (2.6) 1.3 (50.0%)
-------- -------- ----------- --------
Adjusted earnings (net
profit) 16.9 15.2 1.7 11.2%
-------- -------- ----------- --------
6M2022 6M2021 YoY (EURm) YoY
(EURm) (EURm)
Adjusted net profit attributable
to equity holders (EURm) 16.2 14.5 1.7 11.7%
------------ ------------ ------------ -------
Basic weighted average
number of shares 688,911,333 565,931,997 122,979,336 21,7%
------------ ------------ ------------ -------
Adjusted basic EPS (cents/share) 2.35 2.57 (0.22) (8.6%)
------------ ------------ ------------ -------
Costs arising in connection with the IPO have been separately
identified in recognition of the nature, infrequency and
materiality of this capital markets transaction. IPO expenses were
incurred in 2021 and had no impact on expenses in 2022.
M&A-related expenses are fees and other costs relating to
the Group's acquisitions activity. M&A-related expenses differ
every year based on acquisition activity of the Group. Exclusion of
these costs allows for better result comparability.
Strategic transformation expenses are costs relating to
broadening the skill bases of the Group's employees (including
executive search and recruiting costs) as well as costs related to
transformation of key IT systems. As previously announced, the
strategic transformation is expected to complete in 2023.
In addition, adjustment has been made for the compensations
provided to the Group's management before the IPO. These legacy
incentives comprise a combination of cash and share-based payments
and those that have not yet vested will vest across each of the
subsequent financial years ending 31 December 2024. The Group
believes that it is appropriate to treat these costs as an
adjusting item as they relate to a one-off award, designed and
implemented whilst the Group was under private ownership (and are
reasonably typical of that market and appropriate in that context).
The Group now operates in a new environment and the Remuneration
Committee has applied the Remuneration Policy in a listed company
context, hence, similar awards are not expected in future. For
clarity, where share-based payment charges arise as a consequence
of the operation of the Group's post-IPO Remuneration Policy, these
are not treated as adjusting items as they represent non-cash
element of annual remuneration package. This includes costs of
EUR0.5m in the first six months ending 30 June 2022 relating to
grants in connection with the 2024 and 2025 PSP.
Amortisation of acquired intangibles represents amortisation of
assets recognised at the time of an acquisition (primarily ADS and
Sygic). The item is prone to volatility from period to period
depending on the level of M&A.
Amortisation due to transformational useful life changes
represents accelerated amortisation of assets being replaced by
strategic transformation of the Group. The Group expects this
adjustment to be relevant until 2024.
Capital allocation
Our priority will continue to be organic and inorganic
investment to drive long term sustainable growth. As previously
advised, the Group will incur aggregated transformational capital
expenditures of EUR50m during 2022 and 2023 to develop our
integrated end-to-end digital platform and invest in the quality of
our integrated product and service offering. Our transformational
capex is firmly on track to complete in 2023, by which point we
will have the most modern, complete and modular tech stack and
product offering in the industry. We will continue to consider
value-accretive M&A opportunities in our current and adjacent
markets and in product and technology areas that will accelerate
growth. We will only look to make acquisitions where the
acquisition is complementary to our strategy and in line with our
acquisition criteria. We will also maintain a robust balance sheet.
As set out in our financial guidance the Group does not intend to
pay dividends as we continue to prioritise investment in
growth.
Treasury management
The Group maintains a disciplined approach to its financing and
is committed to maintain a net debt to adjusted EBITDA leverage
ratio of 1.5-2.5 times over the medium term. Our leverage ratio may
temporarily exceed the top end of the range depending on the
quantum and timing of potential acquisitions.
The Group holds financial debt under the Senior Multicurrency
Term and Revolving Facilities Agreement ("Syndicated Facilities
Agreement"), which consists of the following tranches:
-- Amortising EUR term loan facility for a maximum amount of EUR47.5m
-- Non-amortising EUR term loan facility for a maximum amount of EUR47.5m
-- Amortising EUR term loan facility for a maximum amount of EUR95.0m (Acquisition/CAPEX)
-- Multicurrency revolving credit facility for a maximum amount of EUR120.0m, split as
o EUR45.0m Revolving Credit Facility
o EUR15.0m Multicurrency Overdraft Facility
o EUR60.0m Bank Guarantee Facilities
As of 30 June 2022, the Revolving Credit Facility and
Multicurrency Overdraft Facility remained undrawn.
Additionally, subject to certain conditions, the Group can
request to raise additional debt through uncommitted Incremental
Facility mechanism under the Syndicated Facilities Agreement up to
an amount of EUR100.0m, of which up to EUR50.0m can be used to
finance certain acquisitions which are specifically permitted under
the Syndicated Facilities Agreement, and the remaining EUR50.0m can
be used to finance or refinance working capital of companies,
businesses or undertakings acquired as a result of such permitted
acquisition or utilized by way of a guarantee, documentary or
stand-by letter of credit. As of 30 June 2022, the Incremental
Facility II was fully drawn to establish limits for Bank Guarantees
for a total amount of up to EUR50m.
The Syndicated Facilities Agreement contains financial covenants
at the level of W.A.G. payment solutions, a.s. Financial covenants
are governed by financial definitions under The Syndicated
Facilities Agreement:
-- Interest Cover (the ratio of Adjusted EBITDA to finance
charges) is not less than 5.00:1 for each twelve-month period
ending on the last day of each financial quarter. As of 30 June
2022, Interest Cover was at 16.26.
-- Net Leverage (measured quarterly on the basis of Total Net
Debt on the measurement date and rolling twelve months Adjusted
EBITDA) does not exceed 3.50:1 for each twelve-month period ending
on the last day of each financial quarter in 2022. As of 30 June
2022, Net Leverage was at negative 0.15 (The Group had more Cash
and Cash Equivalent Investments than Borrowings).
-- Adjusted Net Leverage (measured quarterly on the basis of
Adjusted Total Net Debt on the measurement date and rolling twelve
months Adjusted EBITDA) does not exceed 6.50:1 for each
twelve-month period ending on the last day of each financial
quarter. As of 30 June 2022, Adjusted Net Leverage was at 1.47.
-- Borrowing Base (the ratio of the sum of outstanding amount of
revolving facility less cash and cash equivalents, to trade
receivables) must not exceed 1.00:1 in relation to any three-month
period ending on the last day of each financial quarter. As at 30
June 2022, Borrowing Base was at negative 0.55 (The Group had more
Cash and Cash Equivalent Investments than aggregate amount of
outstanding Revolving Facility Loans).
During the first half of 2022, the Group repaid EUR10.0m
(principal) of the Syndicated Facilities Agreement borrowings
resulting in a notional outstanding debt of EUR155m as of 30 June
2022.
During year-to-date, the Group utilised EUR21.0m of Incremental
Facility in the way of Bank Guarantees.
The Group concentrates cash on bank accounts held with financial
institutions that participate in the Syndicated Facilities
Agreement. Balances may be held on bank accounts with other
financial institutions to fund outgoing payments especially in
countries outside of the Economic and Monetary Union.
Directors' responsibility statement
We confirm that to the best of our knowledge:
The unaudited condensed consolidated financial statements have
been prepared in accordance with UK-adopted IAS 34 Interim
Financial Reporting.
The interim management report includes a fair review of the
information required by:
(a) DTR 4.2.7R of the Disclosure Guidance and Transparency
Rules, being an indication of important events that have occurred
during the first six months of the financial year and their impact
on the condensed set of financial statements; and a description of
the principal risks and uncertainties for the remaining six months
of the year; and
(b) DTR 4.2.8R of the Disclosure Guidance and Transparency
Rules, being related party transactions that have taken place in
the first six months of the current financial year and that have
materially affected the financial position or performance of the
entity during that period; and any changes in the related party
transactions described in the last annual report in Financial
statements dated 24 March 2022 that could do so.
On behalf of the Board of Directors
Martin Vohánka
Chief Executive Officer
Financial statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(EUR '000)
For the six months ended 30 June
====== ==================================
2022 2021
Notes (unaudited) (unaudited)
========================================================================== ====== ================ ================
Revenue from contracts with customers 7 1,160,815 784,369
Costs of energy sold (1,073,837) (711,513)
========================================================================== ====== ================ ================
Net energy and services sales 8 86,978 72,856
Other operating income 221 341
Employee expenses 9 (32,768) (26,567)
Impairment losses of financial assets (2,719) (1,152)
Technology expenses (3,882) (2,782)
Other operating expenses (18,325) (15,009)
Operating profit before depreciation and amortisation (EBITDA) 29,505 27,687
Analysed as:
Adjusting items 8 5,498 5,367
-------------------------------------------------------------------------- ------ ---------------- ----------------
Adjusted EBITDA 8 35,003 33,054
Depreciation and amortisation 8 (12,431) (10,457)
========================================================================== ====== ================ ================
Operating profit 17,074 17,230
Finance income 1,275 31
Finance costs (4,553) (4,571)
Share of net loss of associates (353) (295)
========================================================================== ====== ================ ================
Profit before tax 13,443 12,395
Income tax expense 10 (4,256) (3,588)
========================================================================== ====== ================ ================
PROFIT FOR THE YEAR 9,187 8,807
========================================================================== ====== ================ ================
OTHER COMPREHENSIVE INCOME
Other comprehensive income to be reclassified to profit or loss in
subsequent periods
Change in fair value of cash flow hedge recognised in equity 4,976 3,123
Exchange differences on translation of foreign operations 302 925
Deferred tax related to other comprehensive income - -
-------------------------------------------------------------------------- ------ ---------------- ----------------
TOTAL OTHER COMPREHENSIVE INCOME 5,278 4,048
========================================================================== ====== ================ ================
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 14,465 12,855
========================================================================== ====== ================ ================
Total profit for the financial year attributable to equity holders of the
Company 8,902 8,657
Total profit for the financial year attributable to non-controlling
interests 285 150
Total comprehensive income for the financial year attributable to equity
holders of the Company 14,137 12,688
Total comprehensive income for the financial year attributable to
non-controlling interests 328 167
Earnings per share (in cents per share): 14
Basic earnings per share 1.29 1.53
Diluted earnings per share 1.29 1.52
========================================================================== ====== ================ ================
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(EUR '000)
As at
========================================= ======= =============================
30 June 31 December
2022 2021
Notes (unaudited)
========================================= ======= ============== =============
ASSETS
Non-current assets
Intangible assets 11 237,043 193,453
Property, plant and equipment 11 37,225 34,763
Right-of-use assets 10,827 8,112
Investments in associates 12,581 12,934
Financial assets 37 37
Deferred tax assets 9,291 7,642
Derivative assets 6 5,928 252
Other non-current assets 3,498 3,554
========================================= ======= ============== =============
Total non-current assets 316,430 260,747
========================================= ======= ============== =============
Current assets
Inventories 12 19,365 9,557
Trade and other receivables 13 432,268 300,601
Income tax receivables 6,095 5,095
Derivative assets 6 2,208 2,694
Cash and cash equivalents 181,546 224,164
========================================= ======= ============== =============
Total current assets 641,482 542,111
========================================= ======= ============== =============
TOTAL ASSETS 957,912 802,858
========================================= ======= ============== =============
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital 8,107 38,113
Share premium 2,958 194,763
Merger reserve (25,963) (25,963)
Other reserves 6,700 1,465
Business combinations equity adjustment (17,220) (17,046)
Retained earnings 318,857 84,526
Equity attributable to equity holders
of the Company 293,439 275,859
Non-controlling interests 9,160 8,889
============== =============
Total equity 302,599 284,747
========================================= ======= ============== =============
Non-current liabilities
Interest-bearing loans and borrowings 133,928 143,579
Lease liabilities 8,198 5,973
Deferred tax liabilities 7,649 5,495
Derivative liabilities 6 130 657
Other non-current liabilities 15 31,173 20,281
========================================= ======= ============== =============
Total non-current liabilities 181,078 175,985
========================================= ======= ============== =============
Current liabilities
Trade and other payables 15 441,660 314,522
Interest-bearing loans and borrowings 18,871 18,894
Lease liabilities 3,084 2,601
Provisions 1,627 1,545
Income tax liabilities 7,437 4,208
Derivative liabilities 6 1,556 356
========================================= ======= ============== =============
Total current liabilities 474,235 342,126
========================================= ======= ============== =============
TOTAL EQUITY AND LIABILITIES 957,912 802,858
========================================= ======= ============== =============
The accompanying notes form an integral part of these financial
statements.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited)
(EUR '000)
Notes Share Share Other Merger Business Retained Total equity Non-controlling Total
capital premium reserves reserve combinations earnings attributable interests equity
equity to equity
adjustment holders of
the parent
----------------- ------- --------- ---------- --------- --------- ------------- --------- ------------- ---------------- ---------
At 1 January 2021 4,158 2,927 (3,263) - (46,009) 72,177 29,990 34,115 64,105
========================== ========= ========== ========= ========= ============= ========= ============= ================ =========
Profit for the year - - - - - 8,657 8,657 150 8,807
Other comprehensive
income - - 4,031 - - - 4,031 17 4,048
==========================
Total comprehensive
income - - 4,031 - - 8,657 12,688 167 12,855
========= ========== ========= ========= ============= ========= ============= ================ =========
Share options exercised 11 200 - - - - 211 - 211
Dividends paid - - - - - - - (1,980) (1,980)
Share-based payments - - - - - 892 892 - 892
Acquisition of
subsidiaries - - - - - - - 2,259 2,259
Acquisition of a
non-controlling
interests 27,003 (966) 26,037 (26,037) -
Put options held by
non-controlling
interests - - - - (4,495) - (4,495) - (4,495)
At 30 June 2021 4,169 3,127 768 - (23,501) 80,760 65,323 8,524 73,847
========================== ========= ========== ========= ========= ============= ========= ============= ================ =========
At 1 January 2022 38,113 194,763 1,465 (25,963) (17,046) 84,526 275,858 8,889 284,747
========================== ========= ========== ========= ========= ============= ========= ============= ================ =========
Profit for the year - - - - - 8,902 8,902 285 9,187
Other comprehensive
income - - 5,235 - - - 5,235 43 5,278
==========================
Total comprehensive
income - - 5,235 - - 8,902 14,137 328 14,465
========= ========== ========= ========= ============= ========= ============= ================ =========
Capital reduction (30,006) (191,805) - - - 221,811 - - -
Dividends paid - - - - - - - (57) (57)
Share-based payments - - - - - 3,618 3,618 - 3,618
Put options held by
non-controlling
interests - - - - (174) - (174) - (174)
At 30 June 2022 8,107 2,958 6,700 (25,963) (17,220) 318,857 293,439 9,160 302,599
========================== ========= ========== ========= ========= ============= ========= ============= ================ =========
CONSOLIDATED STATEMENT OF CASH FLOWS
(EUR '000)
For the six months ended 30 June
======= ===================================
2022 2021 (unaudited)
Notes (unaudited)
==================================================================== ======= =============== ==================
Cash flows from operating activities
Profit before tax for the period 13,443 12,395
Non-cash adjustments:
Depreciation and amortisation 8 12,431 10,457
Gain on disposal of non-current assets (51) 22
Interest income (79) (21)
Interest expense 2,650 2,234
Movements in provisions 17 375
Impairment losses of financial assets 2,719 1,152
Foreign currency exchange rate differences 39 5
Fair value revaluation of derivatives 457 140
Share-based payments 3,618 892
Other non-cash items 423 413
Working capital adjustments:
(Increase)/decrease in trade and other receivables and prepayments (134,596) (65,262)
(Increase)/decrease in inventories (9,302) 1,422
Increase in trade and other payables 130,046 45,942
Interest received 79 21
Interest paid (2,261) (2,014)
Income tax paid (3,207) (4,173)
Net cash flows generated from operating activities 16,417 4,000
==================================================================== ======= =============== ==================
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 144 89
Purchase of property, plant and equipment (3,664) (2,445)
Purchase of intangible assets 5 (18,104) (13,283)
Payments for acquisition of subsidiaries, net of cash acquired (22,924) (746)
Investment in associates (3,000) (10,685)
Net cash used in investing activities (47,548) (27,071)
==================================================================== ======= =============== ==================
Cash flows from financing activities
Payment of principal elements of lease liabilities (1,415) (1,047)
Proceeds from borrowings - 39,786
Repayment of borrowings (10,012) (8,593)
Acquisition of non-controlling interests - (27,003)
Dividend payments (57) (3,480)
Proceeds from issued share capital (net of expenses) - 211
Net cash used in financing activities (11,484) (126)
==================================================================== ======= =============== ==================
Net increase in cash and cash equivalents (42,614) (23,196)
Effect of exchange rate changes on cash and cash equivalents - -
Cash and cash equivalents at beginning of period 224,154 88,961
Cash and cash equivalents at end of period 181,540 65,765
==================================================================== ======= =============== ==================
1. CORPORATE INFORMATION
W.A.G payment solutions plc (the "Company" or the "Parent") is a
public limited company incorporated and domiciled in the United
Kingdom and registered under the laws of England & Wales under
company number 13544823 with its registered address at Third Floor
(East), Albemarle House, 1 Albemarle Street, London W1S 4HA. The
ordinary shares of the Company were admitted to the premium listing
segment of the Official List of the UK Financial Conduct Authority
and have traded on the London Stock Exchange plc's main market for
listed securities since 13 October 2021.
The Parent and its subsidiaries (together the "Group") are
principally engaged in:
-- Providing payment solutions for fleets of professional
transport and forwarding companies, as well as running a network of
petrol stations for commercial road transportation;
-- Providing unified way of electronic toll payments on a number
of European road networks for fleets of professional transport and
forwarding companies;
-- Recovery of VAT refunds and excise duty from European countries;
-- Creating an automated journey book and optimising traffic
with the use of integrated digital maps;
-- Combine advanced solutions in the field of electronics,
software engineering and applied mathematics;
-- Sale of navigation licenses; and
-- Other services.
Prior to the Initial Public Offering ("IPO"), W.A.G. payments
solutions, a.s. was the parent company of the Group for which
consolidated financial statements were produced. On 7 October 2021,
the Shareholders of W.A.G. payments solutions, a.s. transferred all
of their shares in W.A.G. payments solutions, a.s. to W.A.G payment
solutions plc in exchange for ordinary shares of equal value in
W.A.G payment solutions plc ("Group reorganisation"). This resulted
in W.A.G payment solutions plc becoming the new Parent Company of
the Group. On 8 October 2021, the IPO was completed, with 13
October 2021 representing admission to trading on the London Stock
Exchange ("Admission") .
These condensed interim financial statements were approved for
issue on 6 September 2022 and have been neither reviewed nor
audited.
These condensed interim financial statements do not comprise
statutory accounts within the meaning of Section 434 of the
Companies Act 2006. Statutory accounts for the year ended 31
December 2021 were approved by the Board of Directors on 24 March
2022 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
2. BASIS OF PREPARATION
The condensed interim financial statements for the six-months
ended 30 June 2022 have been prepared in accordance with UK-adopted
IAS 34 Interim Financial Reporting and the Disclosure and
Transparency Rules of the Financial Conduct Authority. The
condensed interim financial statements should be read in
conjunction with the Annual Report and Consolidated financial
statements for the year ended 31 December 2021, which have been
prepared in accordance with UK-adopted International Accounting
Standards (UK-adopted IFRS).
As there was no change in control with the Group reorganisation
(see Note 1 ) involving the Company becoming the new holding
company of the Group in a share for share exchange, the financial
information for the six months ended 30 June 2022 (and comparative
information for the six months ended 30 June 2021) is presented as
a continuation of W.A.G. payment solutions, a.s.
The condensed interim financial statements have been prepared on
a historical cost basis, except for derivative financial
instruments that have been measured at fair value. The interim
condensed financial statements are presented in EUR and all values
are rounded to the nearest thousand (EUR '000), except where
otherwise indicated.
These unaudited condensed interim financial statements have been
prepared on the going concern basis. The Board of Directors have
considered the financial prospects of the Company and the Group for
the foreseeable future, over the period to 31 December 2023 and
made an assessment of the Company's and the Group's ability to
continue as a going concern. The Directors' assessment included
consideration of the availability of the Company's and the Group's
credit facilities, cash flow forecasts and stress scenarios. The
stress scenarios considered the Group's principal risks including:
potential downside pressures on product demand, increasing
operating costs of technology security and resilience and physical
assets security risk. The Directors continue to carefully monitor
the impact of the war in Ukraine including impact of sanctions,
impact on fuel supplies, impact of macroeconomic environment
including inflation and increasing interest rates and impact of
supply chains disruption as a result of Covid-19 pandemic.
The Board of Directors are satisfied that the Company and the
Group has the resources to continue business for the foreseeable
future, in particular given the level of cash balances available
following the IPO, and furthermore are not aware of any material
uncertainties that may cast significant doubt upon the Company's
and the Group's ability to continue as a going concern and the
Board of Directors considers it is appropriate to adopt the going
concern basis of accounting in preparing the condensed interim
financial statements.
The condensed interim financial statements are prepared for the
six months beginning on 1 January and ending on 30 June 2022.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted, as well as significant
judgements and key estimates applied, are consistent with those in
the annual financial statements for the year ended 31 December
2021, as described in those financial statements, except as
described below:
-- Taxes on income in the interim periods are accrued using the
tax rate that would be applicable to expected total annual profit
or loss.
-- Significant estimates:
Business combination
Accounting for business combinations requires significant
judgment and assumptions at the acquisition date, including
estimating the fair value of acquired intangible assets, estimated
income tax assets and liabilities assumed, and determination of the
fair value of contractual obligations, where applicable.
Significant estimates in valuing certain intangible assets include,
but are not limited to, future expected cash-flows from acquired
customers, acquired software and trade names from a market
participant perspective, useful lives and discount rates. The
estimates are based on historical experience and information
obtained from the management of the acquired companies and are
inherently uncertain.
Details of the business combination are disclosed in Note 5
.
4. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES, ADOPTION OF NEW AND REVISED STANDARDS
4.1. Application of new IFRS - standards and interpretations effective in the reporting period
The Group has applied the following standards and amendments for
the first time for their annual reporting period commencing 1
January 2022:
-- Property, Plant and Equipment: Proceeds before intended use - Amendments to IAS 16
-- Reference to the Conceptual Framework - Amendments to IFRS 3
-- Onerous Contracts - Cost of Fulfilling a Contract - Amendments to IAS 37
-- Annual Improvements to IFRS Standards 2018-2020 - Amendments
to IFRS 9, IFRS 16, IFRS 1, and IAS 41
These Amendments did not have a significant impact on the
Group's condensed interim financial statements.
4.2. New IFRSs and IFRICs published by the IASB that are not yet effective
The Group is currently assessing the potential impacts of the
new and revised standards and interpretations that are expected to
be effective from 1 January 2023 or later.
-- Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture - amendments to IFRS 10 and IAS 28
-- IFRS 17 "Insurance Contracts"
-- Classification of liabilities as current or non-current - Amendments to IAS 1
-- Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting policies
-- Amendments to IAS 8 - Definition of Accounting Estimates
-- Deferred tax related to assets and liabilities arising from a
single transaction - Amendments to IAS 12
These new standards and amendments are not expected to have any
significant impacts on the Group's consolidated financial
statements.
5. BUSINESS COMBINATION
As of 30 June 2022, the following acquisitions took place:
Acquisition of WebEye Group
Further to the subsequent events described in 2021 Annual
Report, the Group signed a novated agreement on 16 May 2022 to
acquire substantially all of the assets of WebEye Telematics Zrt.,
a leading fleet management solutions provider in Central and
Eastern Europe. The Group paid EUR 23.3 million in cash upon the
acquisition of 100% of the share capital of the non-Hungarian
subsidiaries (Note 17 ) and a further EUR 19.9 million was paid
upon completion of the acquisition of the Hungarian subsidiaries on
1 July 2022. Acquisition of Hungarian subsidiaries is disclosed as
a subsequent event (Note 18 ). In addition, the Company will pay a
deferred settlement component within three years of closing, a
portion of which is contingent upon the achievement of certain
KPIs. The maximum amount, including the deferred amount of the
purchase price, is capped at EUR 60.6 million.
The transaction will expand the Group's customer base, and
WebEye's customers will gain access to Eurowag's unrivalled range
of integrated end-to-end payment and mobility solutions leading to
incremental revenue opportunities. Furthermore, data from the
connected trucks will provide insights and enable the continual
development of new and improved solutions to address customers'
needs.
The provisionally determined fair values of identifiable assets
and liabilities of non-Hungarian subsidiaries of WebEye as at the
date of acquisition were:
EUR '000 Fair value recognised
on acquisition non-Hungarian
WebEye subsidiaries
===================================== ======================================
Assets
Property, plant and equipment 1,219
Identifiable intangible
assets 16,217
Right-of-use assets 483
Trade receivables 1,000
Cash and cash equivalents 395
Inventories 505
Other assets 11
Total Assets 19,830
Trade payables 361
Lease liabilities 483
Deferred tax 1,752
Total Liabilities 2,596
===================================== ======================================
Total identifiable net
assets at fair value 17,234
===================================== ======================================
Goodwill arising on acquisition 19,678
------------------------------------- --------------------------------------
Purchase consideration:
------------------------------------- --------------------------------------
Cash paid 23,319
------------------------------------- --------------------------------------
Deferred consideration (discounted) 13,593
------------------------------------- --------------------------------------
Total purchase consideration 36,912
------------------------------------- --------------------------------------
The gross contractual receivables acquired amounted to EUR 1,594
thousand. At acquisition date, there were EUR 594 thousand of
contractual cash flows not expected to be collected.
From the date of acquisition until 30 June 2022, non-Hungarian
subsidiaries of WebEye contributed EUR 1,039 thousand of revenue
and EUR 178 thousand loss after tax (mainly driven by amortisation
of acquired intangibles).
Consolidated revenue and consolidated profit after tax for the
half year ended 30 June 2022, if the acquisition had occurred on 1
January 2022, is disclosed in Note 18 .
Discount rate of 2.00% was used to determine present value of
deferred consideration.
Pay-out of deferred consideration
On 31 January 2022, the Group paid deferred acquisition
consideration of EUR 3,000 thousand related to acquisition of
company Threeforce B.V. (Last Mile Solutions).
Net outflows of cash to acquire subsidiaries were as
follows:
EUR '000 30 June 30 June
2022 (unaudited) 2021 (unaudited)
========================= ================== ==================
Cash consideration paid 23,319 2,356
Cash acquired (395) (1,610)
================== ==================
Net outflow of cash
- investing activities 22,924 746
========================= ================== ==================
Cost of acquisition of subsidiaries recognised in other
operating expense:
EUR '000 For the six months
ended 30 June
=================== ====================================
2022 (unaudited) 2021 (unaudited)
=================== ================= =================
Acquisition costs 524 111
=================== ================= =================
6. FAIR VALUE MEASUREMENT
The following table provides the fair value measurement
hierarchy of the Group's assets and liabilities.
Fair value measurement hierarchy for assets and liabilities as
at 30 June 2022 (unaudited):
EUR '000 Date of Fair value measurement
valuation using
======================= ============== ------------------------------------------ ======
Quoted Significant Significant
prices observable unobservable
in active inputs inputs
markets (Level (Level
(Level 2) 3)
1) Total
======================= ============== ============ ============ ============== ======
Assets measured
at fair value
Derivative financial
assets
Foreign currency
forwards 30 June 2022 - 2,208 - 2,208
Interest rate swaps 30 June 2022 - 5,928 - 5,928
Liabilities measured
at fair value
Derivative financial
liabilities
Foreign currency
forwards 30 June 2022 - 1,545 - 1,545
Put options 30 June 2022 - - 130 130
Foreign currency
swaps 30 June 2022 - 11 - 11
======================= ============== ============ ============ ============== ======
There have been no transfers between Level 1, Level 2 and Level
3 during the six months ended 30 June 2022.
Fair value measurement hierarchy for assets and liabilities as
at 31 December 2021:
EUR '000 Date of valuation Fair value measurement using
===================== =================== ================================================================== ======
Quoted prices in Significant Significant
active markets observable inputs unobservable inputs
(Level 1) (Level 2) (Level 3) Total
===================== =================== ===================== ===================== ==================== ======
Assets measured at
fair value
Derivative financial
assets
Foreign currency
forwards 31 December 2021 - 2,694 - 2,694
Interest rate swaps 31 December 2021 - 252 - 252
Liabilities measured
at fair value
Derivative financial
liabilities
Foreign currency
forwards 31 December 2021 - 356 - 356
Put options 31 December 2021 - 130 130
Interest rate swaps 31 December 2021 - 527 - 527
===================== =================== ===================== ===================== ==================== ======
There have been no transfers between Level 1, Level 2 and Level
3 during the year ended 31 December 2021.
Management assessed that the fair values of cash and cash
equivalents, trade and other receivables and trade and other
payables approximates their carrying amounts largely due to the
short-term maturities of these instruments. Interest-bearing loans
and borrowings are at floating rates with margin corresponding to
market margins.
The fair value of the financial assets and liabilities is
included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a
forced or liquidation sale.
7. SEGMENTAL ANALYSIS
Operating segments are reported in a manner consistent with the
internal reporting provided to the Chief Operating Decision Maker
("CODM"). The Group considers the Executive Committee to be the
CODM effective from July 2021. The Board of Directors was
considered as CODM prior to that date. The CODM reviews net energy
and services sales and contribution to evaluate segment performance
and allocate resources to the overall business.
For management purposes and based on internal reporting
information, the Group is organised in two operating segments;
Payment solutions and Mobility solutions. Payment solutions
represent the core of the Group's revenues, which are based on
recurring and frequent transactional payments. The segment includes
Energy and Toll payments, which are a typical first choice of a new
customer. Mobility solutions represent a number of services, which
are subsequently sold to customers using Payment solutions
products. The segment includes Tax refund, Telematics, Navigation,
and other service offerings.
Net energy and services sales, contribution, EBITDA, and
Adjusted EBITDA are non-GAAP measures, see Note 8 .
The CODM does not review assets and liabilities at segment
level.
Six months ended Payment Mobility Total
30 June 2022 (unaudited) solutions solutions
EUR '000
--------------------------- ----------- ----------- ----------
Segment revenue 1,137,314 23,501 1,160,815
Net energy and services
sales 63,477 23,501 86,978
Contribution 54,938 16,971 71,909
Contribution margin 87% 72% 83%
Corporate overhead
and indirect costs
before adjusting
items (36,906)
Adjusting items
affecting Adjusted
EBITDA (5,498)
Depreciation and
amortisation (12,431)
Net finance costs
and share of net
loss of associates (3,631)
--------------------------- ----------- ----------- ----------
Profit before tax 13,443
--------------------------- ----------- ----------- ----------
Six months ended Payment Mobility Total
30 June 2021 (unaudited) solutions solutions
EUR '000
--------------------------- ----------- ----------- ----------
Segment revenue 765,649 18,720 784,369
Net energy and services
sales 54,136 18,720 72,856
Contribution 47,780 13,032 60,812
Contribution margin 88% 70% 83%
Corporate overhead
and indirect costs
before adjusting
items (27,758)
Adjusting items
affecting Adjusted
EBITDA (5,367)
Depreciation and
amortisation (10,457)
Net finance costs
and share of net
loss of associates (4,835)
--------------------------- ----------- ----------- ----------
Profit before tax 12,395
--------------------------- ----------- ----------- ----------
Geographical split - segment revenue from contracts with
customers
The geographical analysis is derived from the base location of
responsible sales teams, rather than reflecting the geographical
location of the actual transaction.
EUR '000 For the six months
ended 30 June
============================= ====================================
2022 (unaudited) 2021 (unaudited)
============================= ================= =================
Czech Republic ("CZ") 242,813 150,604
Poland ("PL") 199,284 137,490
Central Cluster (excluding
CZ and PL) 133,417 89,406
Portugal ("PT") 205,110 172,081
Western Cluster (excluding
PT) 38,117 18,322
Romania ("RO") 153,735 83,085
Southern Cluster (excluding
RO) 183,556 129,378
Not specified 4,783 4,003
Total 1,160,815 784,369
============================= ================= =================
There were no individually significant customers, which would
represent 10% of revenue or more.
Geographical split - net energy and services sales
EUR '000 For the six months
ended 30 June
============================= ====================================
2022 (unaudited) 2021 (unaudited)
============================= ================= =================
Czech Republic 15,861 12,642
Poland 15,323 12,956
Central Cluster (excluding
CZ and PL) 12,120 9,786
Portugal 8,638 11,114
Western Cluster (excluding
PT) 3,492 2,702
Romania 12,570 8,588
Southern Cluster (excluding
RO) 15,559 12,133
Not specified 3,415 2,935
Total 86,978 72,856
============================= ================= =================
Timing of revenue recognition was as follows:
EUR '000 For the six months
ended 30 June
================================ ====================================
2022 (unaudited) 2021 (unaudited)
================================ ================= =================
Payment solutions
Goods and services transferred
at a point in time 1,125,804 755,207
Services transferred over
time 11,510 10,442
-------------------------------- ----------------- -----------------
1,137,314 765,649
Mobility solutions
Goods and services transferred
at a point in time 6,357 5,489
Services transferred over
time 17,144 13,231
-------------------------------- ----------------- -----------------
23,501 18,720
Total segment revenue 1,160,815 784,369
================================ ================= =================
8. ALTERNATIVE PERFORMANCE MEASURES
To supplement its consolidated financial statements, which are
prepared and presented in accordance with IFRS, the Group uses the
following non-GAAP financial measures that are not defined or
recognised under IFRS: Net energy and services sales, Contribution,
EBITDA, Adjusted EBITDA, Adjusted earnings, Adjusted earnings per
share, Adjusted effective tax rate, Net debt/cash and
Transformational capital expenditure.
The Group uses Alternative Performance Measures ("APMs") to
provide additional information to investors and to enhance their
understanding of its results. The APMs should be viewed as
complementary to, rather than a substitute for, the figures
determined according to IFRS. Moreover, these metrics may be
defined or calculated differently by other companies, and, as a
result, they may not be comparable to similar metrics calculated by
the Group's peers.
Net energy and services sales
Net energy and services sales is an alternative performance
measure, which is calculated as total revenues from contracts with
customers, less cost of energy sold. The Group believes this
subtotal is relevant to an understanding of its financial
performance on the basis that it adjusts for the volatility in
underlying energy prices. The Group has discretion in establishing
final energy price independent from the prices of its suppliers as
explained in its accounting policies.
This measure also supports comparability of the Group's
performance with other entities, who have concluded that they act
as an agent in the sale of energy and, therefore, report revenues
net of energy purchased.
Contribution
Contribution is defined as net energy and services sales less
operating costs that can be directly attributed to or controlled by
the segments. Contribution does not include indirect costs and
allocations of shared costs that are managed at a group level and
hence shown separately under indirect costs and corporate
overhead.
The CODM reviews net energy and services sales and contribution
to evaluate segment performance and allocate resources to the
overall business (Note 7 ).
EBITDA
EBITDA is defined as operating profit before depreciation and
amortisation.
The Group presents EBITDA because it is widely used by
securities analysts, investors, and other interested parties to
evaluate the profitability of companies. EBITDA eliminates
potential differences in performance caused by variations in
capital structures (affecting net finance costs), tax positions
(such as the availability of net operating losses, against which to
relieve taxable profits), the cost and age of tangible assets
(affecting relative depreciation expense) and the extent to which
intangible assets are identifiable (affecting relative amortisation
expense).
Adjusted EBITDA
Adjusted EBITDA is defined as EBITDA before adjusting items:
Adjusting item Definition Exclusion justification
========================= ======================= ============================================
M&A-related Fees and other M&A-related expenses differ every
expenses costs relating year based on acquisition activity
to the Group's of the Group. Exclusion of these
acquisitions activity costs allow better result comparability.
------------------------- ----------------------- --------------------------------------------
Non-recurring Non-recurring IPO costs are related to a one-off
IPO-related advisory and other event, which has significant impact
expenses expenses relating on 2021 profitability. IPO does
to the Admission not have any impact on expenses
in 2022.
------------------------- ----------------------- --------------------------------------------
Strategic transformation Costs relating Broadening the skill base
expenses to broadening IPO and IT strategic transformation
the skill bases requires different skill base of
of the Group's the Group's employees. Expenses
employees (including related to these strategic events
in respect of were excluded as otherwise they
executive search would not be incurred. The expenses
and recruiting are expected to end in 2022.
costs), as well Transformation of key IT systems
as costs related Transformational expenditure represents
to transformation investments intended to create
of key IT systems a new product or service, or significantly
enhance an existing one, in order
to increase the Group's revenue
potential. This also includes systems
and processes improvements to improve
services provided to customers.
Transformational expenditures,
which cannot be capitalised as
they are mainly related to research,
were excluded as the Group is executing
its strategic transformation programme,
which is expected to end in 2023
and due to the fact that annual
investments compared to Group's
Net sales are significantly higher
than regular investments of a technology
company.
------------------------- ----------------------- --------------------------------------------
Share-based Equity-settled Share options and cash-settled
compensation and cash-settled compensation have been provided
compensation provided to management and certain employees
to the Group's in connection with the IPO. Total
management before share-based payment charge to be
IPO excluded in period 2021-2024 amounts
to EUR 21.9 million, from which
EUR 1.3 million is a one-off and
EUR 20.6 million is amortised over
three years. Although these costs
will be amortised over the next
three years based on accounting
policies, they were excluded as
they relate to a one-off event.
Anticipated expense adjustment
amounts to EUR 6.9 million in 2022,
EUR 6.1 million in 2023 and EUR
2.6 million in 2024.
Share awards provided post-IPO
were not excluded as they represent
non-cash element of annual remuneration
package.
========================= ======================= ============================================
Management believes that Adjusted EBITDA is a useful measure for
investors because it is a measure closely tracked by management to
evaluate the Group's operating performance and to make financial,
strategic, and operating decisions. It may help investors to
understand and evaluate, in the same manner as management, the
underlying trends in the Group's operational performance on a
comparable basis, period on period.
Adjusted EBITDA reconciliation
EUR '000 For the six months
ended 30 June
================================ ====================================
2022 (unaudited) 2021 (unaudited)
================================ ================= =================
Intangible assets amortisation
(Note 11 ) 8,830 7,274
Tangible assets depreciation
(Note 11 ) 2,176 2,022
Right of use depreciation 1,425 1,161
-------------------------------- ----------------- -----------------
Depreciation and amortisation 12,431 10,457
Net finance costs and share
of net loss of associates 3,631 4,835
Profit before tax 13,443 12,395
-------------------------------- ----------------- -----------------
EBITDA 29,505 27,687
M&A-related expenses (Note
5 ) 524 111
Non-recurring IPO-related
expenses - 2,827
Strategic transformation
expenses 1,661 764
Share-based compensation 3,313 1,665
-------------------------------- ----------------- -----------------
Adjusting items 5,498 5,367
Adjusted EBITDA 35,003 33,054
================================ ================= =================
Adjusted earnings (net profit)
Adjusted earnings are defined as profit after tax before
adjusting items:
Adjusting item Definition Exclusion justification
========================== ============================== --------------------------------
Amortisation of acquired Amortisation of assets The Group acquired a
intangibles recognised at the time number of companies
of an acquisition (primarily in the past and plans
ADS and Sygic) further acquisitions
in the future. The item
is prone to volatility
from period to period
depending on the level
of M&A.
-------------------------- ------------------------------ --------------------------------
Amortisation due Accelerated amortisation Strategic IT transformation
to transformational of assets being replaced programme of the Group
useful life changes by strategic transformation is replacing selected
of the Group softwares before their
originally estimated
useful life. This may
also include early fixed
asset write-offs. Amortisation
of such assets has been
accelerated and abnormally
high difference between
original and accelerated
depreciation was excluded
to allow period on period
result comparability.
Total expected amortisation
charge to be excluded
in period 2020-2022
amounts to EUR 3.3 million,
from which EUR 1.3 million
is expected to be excluded
in 2022. The amount
represents assets replaced
by strategic IT transformation
at the end of 2021,
however, decisions may
be taken as the Group
continues with its strategic
IT transformation in
2022 and 2023, which
may lead to new assets
being replaced and either
accelerated or written-off.
The Group expects this
adjustment to be relevant
until 2024.
-------------------------- ------------------------------ --------------------------------
Adjusting items affecting Items recognised in Justifications for each
Adjusted EBITDA the preceding table, item are listed in the
which reconciles EBITDA preceding table.
to Adjusted EBITDA
-------------------------- ------------------------------ --------------------------------
Tax effect Decrease in tax expense Tax effect of above
as a result of above adjustments is excluded
adjustments to adjust the impact
on after tax profit.
-------------------------- ------------------------------ --------------------------------
The Group believes this measure is relevant to an understanding
of its financial performance absent the impact of abnormally high
levels of amortisation resulting from acquisitions and from
technology transformation programmes.
Adjusted earnings reconciliation
EUR '000 For the six months
ended 30 June
====================================== ====================================
2022 (unaudited) 2021 (unaudited)
====================================== ================= =================
Profit for the period 9,187 8,807
Amortisation of acquired intangibles 2,761 2,710
Amortisation due to transformational
useful life changes 651 851
Adjusting items affecting Adjusted
EBITDA 5,498 5,367
Tax effect (1,188) (2,584)
Adjusted earnings (net profit) 16,909 15,151
====================================== ================= =================
Adjusted earnings per share
Adjusted earnings per share is calculated by dividing the
adjusted net profit for the period attributable to equity holders
by the weighted average number of ordinary shares outstanding
during the period. See Note 14 for further information.
Adjusted effective tax rate
Adjusted effective tax rate is calculated by dividing the
adjusted tax expense by the adjusted profit before tax. The
adjustments represent adjusting items affecting adjusted earnings.
See Note 10 for further information.
Net debt/cash
Net debt/cash is calculated as cash and cash equivalents less
interest-bearing loans and borrowings.
Transformational capital expenditure
Transformational capital expenditure represents investments
intended to create a new product or service, or significantly
enhance an existing one, in order to increase Group's revenue
potential. This also includes systems and processed improvements to
improve services provided to customers.
9. EMPLOYEE EXPENSES
Employee expenses for the respective periods consist of the
following:
EUR '000 For the six months ended 30 June
====================================== ======================================================================
2022 (unaudited) 2021 (unaudited)
====================================== ================================== ==================================
Total personnel Key management* Total personnel Key management*
====================================== ================ ================ ================ ================
Wages and salaries 26,335 2,406 21,289 1,306
Social security and health insurance 6,797 349 5,667 242
Social cost 699 2 666 -
Share-based payments 3,807 3,421 1,665 1,665
Own work capitalised (4,870) - (2,720) -
====================================== ================ ================ ================ ================
Total employee expense 32,768 6,178 26,567 3,213
====================================== ================ ================ ================ ================
*Until 30 June 2021, included Chief Officers (Board of
Directors) and Non-Executive Directors (Supervisory Board) of
W.A.G. payment solutions, a.s. From 1 July 2021 includes the Board
and Executive Committee of W.A.G payment solutions PLC.
Expenses arising from share-based payment transactions
EUR '000 For the six months
ended 30 June
====================================== ==============================
2022 2021
(unaudited) (unaudited)
====================================== ============== ==============
Equity-settled plans (pre-IPO option
plans) 3,124 892
Cash-settled plans (pre-IPO) 189 773
-------------------------------------- -------------- --------------
Total pre-IPO expenses (Note 8 ) 3,313 1,665
-------------------------------------- -------------- --------------
Equity-settled plans (PSP) 494 -
-------------------------------------- -------------- --------------
Total 3,807 1,665
-------------------------------------- -------------- --------------
10. INCOME TAX
The taxation charge for the interim period has been calculated
based on estimated e ective tax rate for the full year of 31.7%
(six months ended 30 June 2021: 28.9%).
The tax rate is higher in 2022 mainly due to tax non-deductible
costs of equity-settled share-based payments of EUR 3,618 thousand
(six months ended 30 June 2021: EUR 892 thousand). Related tax
impact amounts to EUR 687 thousand in the six months ended 30 June
2022, which represents 5.1 percentage points of the effective tax
rate (six months ended 30 June 2021: EUR 131 thousand, which
represented 1.0 percentage point of the effective tax rate).
Adjusted effective tax rate is as follows:
EUR '000 For the six months ended 30 June
========================================================== ====================================
2022 (unaudited) 2021 (unaudited)
========================================================== ================= =================
Accounting profit before tax 13,443 12,395
========================================================== ================= =================
Adjusting items affecting adjusted EBITDA 5,498 5,367
Amortisation of acquired intangibles 2,761 2,710
Amortisation due to transformational useful life changes 651 851
---------------------------------------------------------- ----------------- -----------------
Adjusted profit before tax (A) 22,353 21,323
Accounting tax expense 4,256 3,588
Tax effect of above adjustments 1,188 2,584
---------------------------------------------------------- ----------------- -----------------
Adjusted tax expense (B) 5,444 6,172
Adjusted earnings (A-B) 16,909 15,151
Adjusted effective tax rate (B/A) 24.35% 28.95%
---------------------------------------------------------- ----------------- -----------------
11. INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT
Property,
Intangible plant and
EUR '000 assets equipment
================================ =========== ===========
Cost
Opening balance as at 1
January 2022 244,590 60,582
Acquisition of a subsidiary 35,918 2,917
Additions 16,193 3,708
Disposals - (530)
Translation differences 446 (208)
Closing balance at 30
June 2022 (unaudited) 297,147 66,469
================================ =========== ===========
Accumulated amortisation
/ depreciation
Opening balance as at 1
January 2022 (51,137) (25,819)
Acquisition of a subsidiary (23) (1,698)
Amortisation / depreciation (8,830) (2,176)
Disposals - 443
Translation differences (114) 6
Closing balance at 30
June 2022 (unaudited) (60,104) (29,244)
================================ =========== ===========
Net book value
As at 1 January 2022 193,453 34,763
As at 30 June 2022 (unaudited) 237,043 37,225
================================ =========== ===========
Impairment testing
The Group has tested the intangible assets with an indefinite
useful life for impairment as at 31 December 2021. As at 30 June
2022, the Group had not identified any indicators of impairment.
The key assumptions used to determine the recoverable amount for
the different CGUs are disclosed and further explained in the
annual consolidated financial statements for the year ended on 31
December 2021.
12. INVENTORIES
EUR '000 30 June 31 December
2022 (unaudited) 2021
=========================== ================== ============
Raw materials 367 136
Goods (excluding on-board
units) 11,210 6,470
Finished products 3 3
On-board units 7,785 2,948
=========================== ================== ============
Total 19,365 9,557
=========================== ================== ============
Goods recognised as an expense are presented in full under cost
of energy sold.
13. TRADE AND OTHER RECEIVABLES
EUR '000 30 June 31 December
2022 (unaudited) 2021
=========================== ================== ============
Trade receivables 302,517 201,924
Receivables from tax
authorities 16,677 11,729
Advances granted 13,243 10,948
Unbilled revenue 11,375 5,533
Miscellaneous receivables 3,159 4,000
Tax refund receivables 78,952 60,945
Prepaid expenses and
accrued income 3,597 3,038
Contract assets 2,748 2,484
=========================== ================== ============
Total 432,268 300,601
=========================== ================== ============
14. EARNINGS PER SHARE
All ordinary shares have the same rights. Until 8 January 2022,
the Company had 1 Class B share, which was excluded from earnings
per share ("EPS") calculation as it had no voting rights, rights to
distributions or rights to the return of capital on winding up.
Basic EPS is calculated by dividing the net profit for the
period attributable to equity holders of the Group by the weighted
average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the net profit for the
period attributable to equity holders of the Group by the weighted
average number of ordinary shares outstanding during the period,
plus the weighted average number of shares that would be issued if
all dilutive potential ordinary shares were converted into ordinary
shares.
Adjusted EPS is calculated by dividing the Adjusted earnings
(net profit) for the period attributable to equity holders by the
weighted average number of ordinary shares outstanding during the
period.
The following reflects the income and share data used in
calculating EPS:
For the six months
ended 30 June
========================================== ====================================
2022 (unaudited) 2021 (unaudited)
========================================== ================= =================
Net profit attributable to equity
holders (EUR '000) 8,902 8,657
========================================== ================= =================
Basic weighted average number of
shares 688,911,333 565,931,997
Effects of dilution from share options 517,940 3,657,993
Total number of shares used in computing
dilutive earnings per share 689,429,273 569,589,990
------------------------------------------ ----------------- -----------------
Basic earnings per share (cents/share) 1.29 1.53
Diluted earnings per share (cents/share) 1.29 1.52
========================================== ================= =================
The weighted average number of shares for the six months ended
30 June 2021 of 565,931,997 has been determined based on the number
of shares of W.A.G. payment solutions, a.s. multiplied by the ratio
at which these shares were exchanged for shares in the Company on 7
October 2021.
Adjusted earnings per share measures:
For the six months
ended 30 June
======================================= ====================================
2022 (unaudited) 2021 (unaudited)
======================================= ================= =================
Net profit attributable to equity
holders (EUR '000) 8,902 8,657
======================================= ================= =================
Adjusting items affecting Adjusted
EBITDA (Note 8 ) 5,498 5,367
Amortisation of acquired intangibles* 2,229 2,120
Amortisation due to transformational
useful life changes 651 851
Tax impact of above adjustments* (1,080) (2,464)
======================================= ================= =================
Adjusted net profit attributable
to equity holders (EUR '000) 16,200 14,531
======================================= ================= =================
Basic weighted average number of
shares 688,911,333 565,931,997
======================================= ================= =================
Adjusted basic earnings per share
(cents/share) 2.35 2.57
======================================= ================= =================
Diluted weighted average number
of shares 689,429,273 569,589,990
======================================= ================= =================
Adjusted dilutive earnings per
share (cents/share) 2.35 2.55
======================================= ================= =================
*non-controlling interests' impact was excluded
Options
Options granted to employees under Share-based Option Plans are
considered to be potential ordinary shares. They have been included
in the determination of diluted earnings per share if the required
performance criteria would have been met based on the Group's
performance up to the reporting date, and to the extent to which
they are dilutive. The options have not been included in the
determination of basic earnings per share.
15. TRADE AND OTHER PAYABLES, OTHER LIABILITIES
EUR '000 30 June 31 December
2022 (unaudited) 2021
============================== ================== ============
Current
Trade payables 383,848 260,530
Employee related liabilities 10,214 10,656
Advances received 16,523 13,464
Miscellaneous payables 7,896 10,941
Payables to tax authorities 14,540 9,728
Contract liabilities 3,164 3,151
Refund liabilities 2,526 3,052
Deferred acquisition
consideration 2,949 3,000
------------------------------ ------------------ ------------
Total Trade and other
payables 441,660 314,522
------------------------------ ------------------ ------------
Non-current
Put option redemption
liability 17,220 17,046
Contract liabilities 1,521 1,742
Employee related liabilities 1,090 747
Deferred acquisition 11,318 -
consideration
Other liabilities 24 746
============================== ================== ============
Total Other non-current
liabilities 31,173 20,281
============================== ================== ============
16. FINANCIAL RISK MANAGEMENT
The Group is exposed to a variety of nancial risks including
foreign currency risk, fair value interest rate risk, credit risk
and liquidity risk. The condensed interim nancial statements do not
include all nancial risk management information and disclosures
required in the annual nancial statements; they should be read in
conjunction with the Group's annual nancial statements as at 31
December 2021. There have been no changes in any risk management
policies since the year end.
17. RELATED PARTY DISCLOSURES
Company
The Company controlling the Group is disclosed in Note 1 .
Subsidiaries
As at 30 June 2022, there were the following changes in the
Group's subsidiaries :
Name Principal Country of Registered address Effective economic interest
activities incorporation
==================== ==================== ==================== ====================
2022 2021
=================================================================================== ============== ==============
WebEye Mobility solutions Romania Oradea, str. Nuf 100% -
International rului nr. 28E,
s.r.l. Jude ul Bihor,
Romania
Webeye Polska sp. Mobility solutions Poland 30-663 Kraków 100% -
z.o.o. (Poland), 250
Wielicka Str.,
Poland
WebEye Deutschland Mobility solutions Germany Schatzbogen 33, 100% -
GmbH 81829
München,
Germany
WebEye Slovakia Mobility solutions Slovakia Sliačska 1E, 100% -
s.r.o 831 02 Bratislava,
Slovakia
Webeye Mobility solutions Slovenia Kidričeva 100% -
International ulica 13D, 1236
d.o.o Trzin, Slovenia
WEBEYE Hrvatska Mobility solutions Croatia Zagreb (Grad 100% -
d.o.o. Zagreb) Buzinski
prilaz 10, Croatia
WEBEYE BULGARIA LTD Mobility solutions Bulgaria Sofia 1528, Iskar 100% -
district, 41
"Nedelcho Bonchev"
Str., floor 3,
apt. 16., Bulgaria
MYWEBEYE Mobility solutions Portugal Rua Francisco Pinto 100% -
IBÉRIA, LDA Júnior n 5
2690-390 Santa
Iría da
Azóia,
Portugal
WebEye CZ s.r.o. Mobility solutions Czech Republic Tuřanka 100% -
1222/115, Slatina,
627 00 Brno, Czech
Republic
==================== ==================== ==================== ==================== ============== ==============
Key management personnel compensation
Key management personnel compensation is disclosed in Note 9
.
Paid dividends
Paid dividends are disclosed in Consolidated Statement of
Changes in Shareholders' Equity.
Other related party transactions
There were no material changes in other related party
transactions in the six months period up to 30 June 2022 compared
to corresponding period in 2021.
18. SUBSEQUENT EVENTS
Acquisition of WebEye Group - Hungarian subsidiaries
As disclosed in Note 5 , on 1 July 2022 the Company acquired
100% share capital of the Hungarian subsidiaries of Webeye, a
leading fleet management solutions provider in Central and Eastern
Europe.
Financial effects of this transaction have not been recognised
at 30 June 2022. The operating results, assets and liabilities of
the acquired companies will be consolidated from 1 July 2022.
The provisionally determined fair values of identifiable assets
and liabilities of Hungarian subsidiaries of WebEye as at the date
of acquisition were:
EUR '000 Fair value recognised
on acquisition Hungarian
WebEye subsidiaries
================================= ==========================
Assets
Property, plant and equipment 722
Identifiable intangible
assets 11,274
Trade receivables 862
Cash and cash equivalents 102
Inventories 492
Total Assets 13,452
Trade payables 726
Deferred tax 955
Total Liabilities 1,681
================================= ==========================
Total identifiable net
assets at fair value 11,771
================================= ==========================
Goodwill arising on acquisition 11,336
--------------------------------- --------------------------
Purchase consideration:
--------------------------------- --------------------------
Cash paid 19,891
--------------------------------- --------------------------
Deferred consideration 3,216
--------------------------------- --------------------------
Total purchase consideration 23,107
--------------------------------- --------------------------
If the acquisition had occurred on 1 January 2022, consolidated
revenue and consolidated loss after tax of combined Hungarian and
non-Hungarian WebEye entities for the half year ended 30 June 2022
would have been EUR 7,372 thousand and EUR 110 thousand
respectively. Excluding amortisation of acquired intangibles the
profit after tax would have been EUR 1,186 thousand. Consolidated
revenue for the six months would be evenly distributed between the
two acquisitions.
Principal risks and uncertainties
The overall responsibility for the identification and management
of the principal and emerging risks to the Group lies with the
Board of Directors.
The Group has included to its assessment risks related to
Russian invasion to Ukraine, which are mostly reflected in the
Group's supplies disruptions, new sanctions and potential physical
threats to Group's employees, clients, and assets. Further the
Group has amended its risk assessment by risks derived from
economic uncertainties. Besides those amendments, the principal
risks remain unchanged from those set out in the Group's most
recent Annual Report and Accounts, which are accessible at
https://investors.eurowag.com/investors/results-center .
Risk Description Mitigation
Product demand Our operating results are -- Reducing dependency
decline risk dependent on the conditions on a single economy
in the European economy and -- Reducing dependency
its cycles. The volume of on non-EUR currency
customer payment transactions -- Diversification
and customer demand for the of products and services
products and services provided offering
by the Group correlate with -- Subscription-based
current and prospective economic revenues
conditions across Europe.
Economic downturns are generally
characterised by reduced commercial
activity and trade, resulting
in reduced demand and use
of our products and services
by customers.
As a result of Covid-19 and
the Russian invasion to Ukraine,
the economy especially across
Central and Eastern Europe
is already experiencing indications
of recession. These are expressed
by persisting disruptions
in supply chains, high inflation,
increasing of nominal interest
rates, currency weakening
and reduced customer demand.
Together with expected recession
there are high uncertainties
regarding energy supplies
across the region which creates
additional pressures on the
supply chains in the region
and underlying demand for
the Group's products and services.
Eventual decline in demand
would adversely affect the
Group's current and prospective
business and financial conditions.
Further the Group recognises
a risk of governmental interventions,
which can have an adverse
impact on the Group's contribution
margin for its products and
services.
----------------------------------------- -----------------------------------
Fuel supplies The Group recognises a high -- Optimised and diversified
risk risk of the dry outs of its fuel suppliers portfolio
bunkering sites and across with long lasting experience
its payments network, which of mutual cooperation
is a consequence of emerging -- Centralised procurement
energy crisis and imposed team for energy supplies
sanctions due to the Russian and logistics
invasion to Ukraine. Moreover, -- Continuous monitoring
due to the same reasons complemented and reporting on the
by local governmental interventions, situation development
the Group experiences higher of fuel supplies crisis
risks in securing sufficient -- Scenarios analysis
fuel supplies at its bunkering of potential future
sites, at favourable financial development and preparation
and operational terms. These of preventive and mitigation
risks have an adverse impact actions in case of
on the Group's financials, different scenario
operations, and business. materialisation
-- Diversification
of different types
of energies (eMobility,
LNG)
----------------------------------------- -----------------------------------
Sanctions risk The Group must continuously -- The Group uses system
monitor its compliance with for partner screening
various sanctions regimes. with automatically
Currently, one of the consequences updating sanctions
of the Russian invasion to database. Any new sanctions
Ukraine are sanctions imposed are also monitored
by the European Union, or by external law firm
the United Kingdom. within legislative
The Group's policies and procedures, monitoring and by the
which are designed to ensure internal team which
that it, its employees, agents, dedicates capacities
and intermediaries comply to screen subscribed
with applicable sanctions, notifications from
may fail to effectively work respective authorities
all of the time. Any violation and press releases.
of the sanctions regime could -- The internal team
result in significant expenses analyse thoroughly
or reputational harm, divert any new sanctions and
management attention, and their impacts on the
otherwise have a negative Group's business and
impact on the Group. operations. In complex
Given the nature of the Group's matters the team cooperates
business the sanctions are with specialised external
also exposing us to the risk advisers.
of adverse business and operational -- New sanction legislation
impacts. Currently valid - relevant for the Group's
6(th) sanctions package is business is regularly
introducing prohibitions related reported and towards
to crude oil and petroleum the Executive Committee
products, mainly in terms together with scenario
of their purchase, import planning and impact
and transfer. Due to the 6(th) assessment.
sanctions package, the Group
is exposed to the risk of
product balancing disruption
in the central region caused
by ban on the export of the
products produced from Russian
origin crude oil delivered
via the Druzba pipeline. Disrupted
product balancing in Central
Europe (AT, CZ, SK, HU) could
lead to a lack of products
in certain markets at certain
periods.
Additionally, to the already
issued sanctions, the Group
recognises a risk of new sanctions
significantly impacting the
current and prospective business
model.
----------------------------------------- -----------------------------------
Growth strategy Our growth strategy is to -- Continual diversification
implementation build an integrated end-to-end of products and services
risk digital platform around the -- Geographic expansion
needs of our customers in and expansion of sales
the CRT industry. Its implementation channels
relies significantly on technology -- Activities to introduce
development and increased financing platform
power to analyse and utilise -- Activities to introduce
data. Inability to successfully digital freight-forwarding
achieve the necessary technology platform
developments, or not completing -- Establishment and
strategic acquisition targets regular reviews of
(as a result of unavailability the M&A strategy
of targets or insufficient
funding), would expose the
Group to an inability to achieve
its growth objectives. This
would result in a decline
in revenue and a more difficult
position to recover from.
----------------------------------------- -----------------------------------
Competitors The Group faces competition -- Reducing dependency
risk in each of its product lines on a single economy,
from many companies offering single market or single
similar capabilities and services, revenue stream
including international oil -- Geographical diversification
companies, single-product and products or services
providers of fuel cards, and offering diversification
other services. In addition, -- Fast inorganic growth
markets where we operate are through M&A activities
characterised as oligopolistic
or monopolistic and are burdened
by heavy regulation and restrictions
for entering or expanding.
These factors could cause
an adverse impact on revenues
and prospects if we cannot
compete or expand our business
activities effectively.
----------------------------------------- -----------------------------------
External party The Group's business is dependent -- IT vendors management
dependency on several key strategic relationships policy - setting the
risk with third parties, the loss standards for vendors
of which could adversely affect selection, contracts
our results. Key partners reviews and signature
mainly fall into the following and vendors monitoring
categories - fuel suppliers, -- Newly established
acceptance network, toll chargers, centralised vendors
authorisation centres and management role
technology service providers. -- Centralised procurement
Furthermore, the Group has team for energy supplies
also initialised an internalisation and logistics
of the authorisation centre -- Centralised development
of its fuel cards transactions and maintenance role
that is currently being provided for acceptance network
by an external authorisation -- Contract management
centre - AEVI. The project rules and attestation
is significantly dependent rules
on the current external provider -- Centralised legal
of the authorisation centre counsel - aids in the
and an inability to complete contracts elaboration
the internalisation, in an and reviews
expected quality and timeframe, -- Project on the internalisation
would expose Group to additional of the authorisation
costs and potential business centre in execution
disruptions.
----------------------------------------- -----------------------------------
Technology The Group's business relies -- The Group prevents
security and on technology and data confidentiality, itself against cyber-attacks
resilience integrity, and availability. by continuous implementation
risk As with other businesses, and improvement of
we are subject to the risk the cyber security
of external security and privacy standards, in line
breaches, such as cyber-attacks. with the ISO27001.
In the last half year, these -- The Group has established
attacks have increased in a central project on
their number and sophistication, continuous information
as a result of war in Ukraine. security improvement
If we cannot adequately protect that comprises key
our information systems, including security functions
the data we collect on customers, from Technology and
it could result in a liability Risk departments.
and damage to our reputation. -- The Group, as part
Also, if the technology we of crisis management
use to operate the business task force, which has
and interact with customers been activated as a
fails, does not operate to response to Russian
expectations or is not available, invasion of Ukraine,
then this could affect our additionally funded
business and results adversely. and assigned highest
priority to immediate
improvement of cyber
security tools to achieve
better prevention against
increasing number of
cyber-attacks. The
situation is constantly
monitored and reported
upon to the executive
management.
----------------------------------------- -----------------------------------
Personnel dependency The Group's success depends, -- Establishing and
risk in part, on its Executive maintenance of the
officers and other key personnel, list of key talents
and our ability to secure to prevent from losing
the capabilities to achieve of the key personnel
our strategic objectives. -- Annual salary reviews,
Lack of capability and the which will reflect
loss of key personnel could affordability and inflation
adversely affect our business. -- Long-term retention
Nowadays, the economic environment plans for key talents,
and competition result in retention bonuses
increasing of the risk of -- Strengthening of
retaining key personnel. Moreover, HR teams - enhanced
the Group recognises a risk HR processes and expenditure
of worsened knowledge resilience, of the Recruitment
conflicts of interests and team
internal fraud caused by key -- Elaboration of the
personnel being embedded to succession plans, providing
one region and a function of adequate trainings
for a long time period. for determined successors
In addition, we depend on -- Key personnel rotation
our founder and CEO. Inability for selected functions
to secure a ready successor -- Internal controls
could reduce our ability to system to prevent knowledge
achieve our strategic goals resilience, conflicts
and an adverse reaction from of interests and internal
stakeholders. frauds risks
-- Forward-looking
plan for interim CEOs,
in case of CEO unavailability
----------------------------------------- -----------------------------------
Climate change Climate change and the energy -- Investing in a portfolio
risk transition represent both of alternative fuels
a risk and opportunity for and technologies, including
the Group. Our reputation, eMobility, to support
operating and compliance costs, the transition to a
and diversification of revenue, low-carbon future in
may be influenced by our pace the CRT sector
of action, the pace of the -- Investing in eMobility
energy transition in the CRT solutions, including
sector and by our customers in Last Mile Solutions,
in the short, medium and long to provide industry-leading
term. We currently derive eMobility services
a significant portion of our to customers throughout
revenues from fees for fossil Europe
fuels transactions. We note -- Investing in digitalisation
that changes in road-transport and technologies to
policy and regulations, the help our customers
cost of carbon, carbon taxation, improve efficiency
changes in market demand for in CRT and reduce energy
alternative fuel and clean intensity
mobility solutions, and pace -- ESG strategy in
of adoption of low-carbon place, including carbon
powertrains by our customers, reduction targets for
can all influence the level our operations as well
of risk and opportunity for as develop targets
the business. We also recognise for, and means of,
that extreme weather events reducing Scope 3 emissions
could pose a risk to business across our value chain
continuity for our physical -- Reviewing business-continuity
assets, as well as the health, plans to take into
safety and wellbeing of our account the potential
workforce and customers. In impacts of extreme
addition, we recognise we weather events caused
are responsible for reducing by climate change,
our own carbon footprint, and the impact on people
as well as for contributing and physical assets
to solutions to help customers -- Increased transparency
make the transition to a low-carbon of carbon emissions
future. and related efforts
to reduce them
-- Formal, structured
scenario analysis to
assess the physical
and transition risks
for the business and
its assets, and to
inform ongoing risk-assessment
and mitigation measures,
as well as to report
in line with TCFD
----------------------------------------- -----------------------------------
Physical security The Group operates a number -- Implementation of
risk of truck parks and these are the Health and safety
exposed to security threats. plans on the Group's
A security threat materialising truck parks to avoid
as a result of insufficient security threats materialisation
protection would result in -- Having in place
danger to the health of our emergency plans and
employees and customers, and staff trained on the
significant business disruptions. acting in the emergency
The risk increased further situations
in the last half year by the -- Petrol stations
Russian invasion of Ukraine security rules and
and potential escalation of system for prevention
the conflict to the other against physical security
countries, including those threats and their regular
where the Group has its employees control and revision
and assets. In addition, there -- Business continuity
is an increasing risk of security plans in place and
threats as a result of the their regular testing
war impacts. These are not and revision
limited to energy crisis and
dry outs at Group' bunkering
sites.
----------------------------------------- -----------------------------------
Regulatory The Group relies on numerous -- Legal and compliance
and licensing licences for the provision business partners dedicated
risk of its on-road mobility products, for all business units,
these include wholesale and with regulation watch
retail permits required for implied
the provision of fuel products, -- Continuously implementing
as well as fuel station operating risk management control
licences for its truck parks, framework specifically
EETS licence and EETS certifications in terms of regulatory
in a number of countries, and licensing risk.
Electronic money institution -- Involving legal
licence required for the provision and compliance counsels
of financial services and in new-markets entry
an insurance distribution process
licences. As a consequence -- Implementing Group-wide
of holding the licences and AML policy, partner
certifications, the Group screening directive
is subject to strict regulatory and detailed AML directive
requirements (Governance, -- Regular AML re-screening
Products, IT security and of customers who use
Operational) of regulatory regulated financial
bodies in respective jurisdictions. services
Non-compliance with these -- Implementing Group-wide
can result in fines, suspension personal-data protection
of business or loss of licences. policy and detailed
Key regulatory requirements GDPR directive
are operationalised by governance
and compliance with UK plc
listing rules, anti-money
laundering ("AML") and sanction
laws, personal data-protection
laws, Czech national bank
regulation, fuel-reselling
legislation and EETS regulation.
In addition, changes in laws,
regulations and enforcement
activities may adversely affect
our products, services and
markets.
----------------------------------------- -----------------------------------
Clients default The Group is subject to the -- Credit assessment
risk credit risk of its customers, at onboarding (scoring)
many of whom are small and - in determining the
mid-sized CRT businesses. credit risk of its
We are exposed to credit risk customers, the Group
for particular customers in performs a credit assessment,
our payment solutions segment which consists of a
who we finance through post-payment financial analysis
of their energy consumption of recent results and
and toll balances and also development as well
for customers with invoices as a business analysis
on 30-day payment terms. If and verification using
we fail to assess and monitor available databases.
adequately the credit risks -- The Group's credit
posed by counterparties, we risk department conducts
could experience an increase ongoing credit exposure
in credit losses and other monitoring, revising
adverse effects. credit limits at regular
intervals and upon
utilisation of available
limits, and updating
collateral from customers
as needed.
-- The ageing of receivables
is regularly monitored
by the Group management
to assess credit risk,
based on expected loss
calculations, which
evaluate probability
of default, exposure
at default and loss
given default.
-- The Group has credit
insurance subject to
first loss policies
on both individual
and aggregate bases
to ensure against the
risk of default from
customers on its trade
and other receivables.
-- Collateral (guarantees,
pledge of receivables,
pledge of physical
assets) - The Group
accepts cash deposits
and advance payments
from customers to secure
credit exposure. The
Group also accepts
other types of security
(such as pledges of
assets or promissory
notes) to mitigate
credit risk.
----------------------------------------- -----------------------------------
Explanation of Alternative Performance Measures
Category Name Definition
Financial Adjusted EBITDA Adjusted EBITDA represents profit before
tax, finance income and costs, depreciation,
amortisation, M&A-related expenses, non-recurring
IPO-related expenses, strategic transformation
expenses and pre-IPO share-based compensation.
----------------------- -----------------------------------------------------
Financial Adjusted EBITDA Adjusted EBITDA margin represents Adjusted
margin EBITDA for the period divided by Net
energy and services sales
----------------------- -----------------------------------------------------
Financial Adjusted earnings Adjusted earnings represents profit for
the year, before adjusting items affecting
adjusted EBITDA, amortisation of acquired
intangibles and amortisation due to transformational
useful life changes and related tax effects
----------------------- -----------------------------------------------------
Financial Adjusted basic earnings Adjusted basic EPS is calculated by dividing
per share the adjusted earnings by the weighted
average number of ordinary shares during
the period.
----------------------- -----------------------------------------------------
Financial CGU CGU (Cash generating unit) is the smallest
identifiable group of assets that generates
cash inflows that are largely independent
of the cash inflows from other assets
or group of assets.
----------------------- -----------------------------------------------------
Financial Contribution Contribution represents Net energy and
services sales less operating costs that
can be directly attributed to or controlled
by the segments. Contribution does not
include indirect costs and allocation
of shared costs that are managed at group
level and hence shown separately under
Indirect costs and Corporate overhead.
Contribution is before Adjusting items.
----------------------- -----------------------------------------------------
Financial Contribution margin Contribution margin represents, for each
of the Group's two operating segments,
that segment's contribution as a proportion
of that segment's Net energy and services
sales.
----------------------- -----------------------------------------------------
Financial EBITDA EBITDA is calculated as profit before
tax, finance income and costs, depreciation
and amortisation.
----------------------- -----------------------------------------------------
Financial Net cash / Net debt Net debt / Net cash is calculated as
Cash and cash equivalents less Interest-bearing
loans and borrowings.
----------------------- -----------------------------------------------------
Financial Net energy and services Net energy and services sales represents
sales revenues from contracts with customers,
less cost of energy resold to customers.
The Group believes this subtotal is relevant
to an understanding of its financial
performance on the basis that it adjusts
for the volatility in underlying energy
prices. The Group has some discretion
in establishing final energy price independent
from the prices of its suppliers.
----------------------- -----------------------------------------------------
Financial Organic Net energy Growth in Net energy and services sales
and services sales excluding the net sales of the Group's
growth acquisitions in the current period. In
2022, organic growth includes an adjustment
related to WebEye acquisition to enhance
year-on-year comparability.
----------------------- -----------------------------------------------------
Financial Transformational Transformational capital expenditure
capital expenditure represents investments intended to create
a new product or service, or significantly
enhance an existing one, in order to
increase the Group's revenue potential.
This also includes systems and processes
improvements to improve services provided
to customers.
----------------------- -----------------------------------------------------
Operational Average active payment Average active payment solutions customers
solutions customers represents the number of customers who
have used the Group's payment solutions
services in a given period, calculated
as the average of the number of active
customers for each month in the period.
A customer is considered an active customer
if it uses the Group's payment solutions
products at least once in a given month.
----------------------- -----------------------------------------------------
Operational Average active payment Average active payment solutions trucks
solutions trucks represents the number of customer vehicles
that have used the Group's payment solutions
services in a given period, calculated
as the average of the number of active
customer vehicles for each month in the
period. A customer vehicle is considered
an active truck if it uses the Group's
payment solutions products at least once
in a given month.
----------------------- -----------------------------------------------------
Operational Payment solutions Payment solutions transactions represents
transactions the number of payment solutions transactions
(fuel and toll transactions) processed
by the Group for customers in that period.
A fuel transaction is defined as one
completed (i.e. not cancelled or otherwise
terminated) fuelling transaction. AdBlue
transactions are not counted as stand-alone
fuel transactions. A toll transaction
is defined as one truck passing through
a given toll gateway per day and per
merchant country (meaning multiple passages
by the same truck through any toll gateway
in one merchant country in a given day
is still counted as one transaction).
----------------------- -----------------------------------------------------
Operational Mobility solutions Mobility solutions segment represents
segment number of services, which are subsequently
sold to customers using Payment solutions
products. The segment includes Tax refund,
Telematics, Navigation and other service
offerings.
----------------------- -----------------------------------------------------
Operational Payment solutions Payment solutions segment represents
segment core of Group's revenues, which are based
on re-occurring and frequent transactional
payments. The segment includes Energy
and Toll payments, which are typical
first choice of a new customer.
----------------------- -----------------------------------------------------
Operational Net revenue retention Average net revenue retention represents,
for Eurowag only (i.e., excluding ADS
and Sygic), the average retained proportion
of the Group's net revenues derived from
its payment solutions and tax refund
customers during the entirety of the
previous years.
----------------------- -----------------------------------------------------
Notes:
1) Please refer to section Explanation of Alternative Performance Measures for a definition.
2) Calculated as impairment losses of financial assets to total
revenue increased by toll payment solutions turnover
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR SSSEEIEESEFU
(END) Dow Jones Newswires
September 06, 2022 02:00 ET (06:00 GMT)
W.a.g Payment Solutions (LSE:WPS)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
W.a.g Payment Solutions (LSE:WPS)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024
