Ann: Chairman and CEO AGM Presentation Slides, page-36

Lots to read through and yes it reads like a typical C Suite Presentation

Negative

• Further investment for remediation and looks like end of CY 2023
• limited establishment fee income as UK is on pause and EU limited by 10% growth cap
• slowing revenue although still growing, need to remember actual revenue for FY 22 was $216m +$18m of non reoccurring
• cost base growing and savings of 10-15% don't' fully take effect until FY24/25
• Fair amount of work to be done in integrating past acquisitions which is time consuming
• No transparent $ figure on Sentenial fraud event as it was wrapped up with a few other items incl. redundancies and retention bonuses.
• Buy back cxl, will they continue to target more smaller acquisitions, possibly in Aus or US which have unrestricted growth

Positives

• G&I segment up circa 30% @ 400-500 bps margin (Comparison would be GPR segment achieving another $20-25m in revenue at 100 bps)
• EML can't earn any interest on EU float whilst remediation is happening (was a footnote on page 24). This is circa 30% of the $2.2B float (1% EU central bank rate = $6m) so technically they are currently missing out on additional $10m in FY23 which will come back in FY24 and will grow to say $15m-$20m as EU increases to mid 2% mark. Total interest rate should be $30m in FY23 and circa $40-$45m in FY24

• Company shift to embedded finance and away from solely pre paid cards which should reduce the AML/CTF red flags

Sentenial open banking needs to hit $40m in revenue and $20 in

• EBIT for 12 months to 31st Dec 2023. They are currently on a run rate of $6m (up from $4m) so if they don't achieve then we save $70m earn out.

• Smart Group re signed NSW Health contract on Friday until 2028 (SIQ announced on Wednesday) which is a big client of EML Salary packaging business (circa $2b GDV segment)
• Looks like our mate Ron was please with Chairman exit although so to was the AFR and other trade articles

Last point here, TYR is currently valued at $815m and their FY23 revised upgraded guidance is the same as EML's revised numbers yesterday. Based on this EML should be circa $2 on same valuation but until regulatory issues are fixed or post xmas trading figures announced it will trade at heavy discount