Euronet Worldwide, Inc. (NASDAQ:EEFT) Q2 2023 Earnings Conference Call July 26, 2023 9:00 AM ET Company Participants Scott Claassen – General Counsel Rick Weller – Chief Financial Officer Mike Brown – Chairman and Chief Executive Officer Conference Call Participants Rayna Kumar – UBS Andrew Jeffrey – Truist Securities Andrew Schmidt – Citi Research Darrin Peller – Wolfe Research Mike Grondahl – Northland Securities Ken Suchoski – Autonomous Research Cris Kennedy – William Blair Operator Greetings, and welco ...

• 13% increase on a constant currency basis Euronet. Euronet. Euronet. Euronet. Euronet | www.euronetworldwide.com 9 | --- | --- | --- | --- | |----------------|---------|------------|--------------| | Percent Growth | Revenue | Adj EBITDA | Transactions | | EFT | 29% | 0.3% | 170% | | epay | 52% | 60% | 167% | | Money Transfer | 46% | 30% | 42% | • Independent ATM Networks (IAD) in Morocco and Latvia • Relaunched IAD in Malaysia • POS acquiring agreements with approx. 4,300 new merchants • Cardless cash wi ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for Euronet Worldwide, Inc. as of March 31, 2023, and for the three months ended March 31, 2023 and 2022 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in millions) | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$5,010.6** | **$5,403.6** | | Total Current Assets | $3,341.5 | $3,726.7 | | Goodwill | $834.3 | $828.3 | | **Total Liabilities** | **$3,738.5** | **$4,159.2** | | Total Current Liabilities | $1,905.3 | $2,354.1 | | Debt obligations, net | $1,642.7 | $1,609.1 | | **Total Equity** | **$1,272.1** | **$1,244.4** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Statement of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | **Revenues** | **$787.2** | **$718.5** | | Total operating expenses | $741.6 | $681.8 | | **Operating income** | **$45.6** | **$36.7** | | Net income | $19.8 | $8.2 | | **Net income attributable to Euronet** | **$20.1** | **$8.2** | | **Diluted EPS** | **$0.39** | **$0.16** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in millions) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3.3 | $5.7 | | Net cash used in investing activities | ($18.1) | ($356.9) | | Net cash provided by (used in) financing activities | ($4.4) | $235.3 | | **Increase (decrease) in cash** | **($53.1)** | **($153.4)** | [Notes to the Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) - The company's business is seasonal. The EFT segment sees highest demand in Q3 (tourism), epay in Q4 and Q1 (holidays), and Money Transfer from May through Q4 (worker migration and holidays)[28](index=28&type=chunk) - On March 15, 2022, the company acquired the Merchant Acquiring Business of Piraeus Bank (PBMA) for approximately **$350.6 million**. This acquisition is included in the EFT Processing Segment[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - As of March 31, 2023, total goodwill was **$834.3 million**, allocated as follows: Money Transfer (**$385.1M**), EFT Processing (**$325.0M**), and epay (**$124.2M**)[51](index=51&type=chunk) - Total debt obligations stood at **$1,654.6 million** as of March 31, 2023, consisting primarily of a revolving credit facility, **0.75%** convertible notes due 2049, and **1.375%** senior notes due 2026[55](index=55&type=chunk) - The company uses foreign currency derivative contracts to minimize exposure to currency fluctuations, primarily for its Ria and xe operations. As of March 31, 2023, the notional value of these contracts was substantial[66](index=66&type=chunk)[67](index=67&type=chunk)[70](index=70&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial results, with revenue up **10%** to **$787.2 million** and operating income up **24%** to **$45.6 million**, led by EFT Processing Q1 2023 vs Q1 2022 Segment Performance (in millions) | Segment | Q1 2023 Revenue | Q1 2022 Revenue | % Change | Q1 2023 Operating Income | Q1 2022 Operating Income | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | EFT Processing | $192.2 | $145.6 | 32% | $6.9 | ($6.3) | (210)% | | epay | $237.4 | $235.8 | 1% | $27.5 | $26.2 | 5% | | Money Transfer | $359.4 | $339.0 | 6% | $32.6 | $33.3 | (2)% | | **Total** | **$787.2** | **$718.5** | **10%** | **$45.6** | **$36.7** | **24%** | - The EFT Processing segment's revenue grew **32%** YoY, driven by increased domestic and international cash withdrawal transactions as travel restrictions eased across Europe[135](index=135&type=chunk) - The Money Transfer segment's revenue increased **6%** YoY, fueled by growth in international-originated money transfers and direct-to-consumer digital transactions[158](index=158&type=chunk) - The company had working capital of **$1,436.2 million** as of March 31, 2023. It maintains access to **$715.9 million** under its Credit Facility, with no significant long-term debt principal payments due until March 2025[175](index=175&type=chunk)[176](index=176&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from variable-rate debt and foreign currency volatility, with significant non-U.S. dollar revenues, mitigated by derivatives - As of March 31, 2023, **29%** of the company's total debt was variable-rate, primarily under its Credit Facility, exposing it to interest rate risk[194](index=194&type=chunk) - For Q1 2023, **74.1%** of revenues were generated in non-U.S. dollar currencies. The company is particularly vulnerable to fluctuations in the euro, British pound, Australian dollar, and Polish zloty[196](index=196&type=chunk)[197](index=197&type=chunk) - A hypothetical **10%** fluctuation in key foreign currency exchange rates is estimated to have an annualized effect on reported net income and working capital of approximately **$125 million** to **$135 million**[197](index=197&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2023, with no material internal control changes beyond PBMA integration - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[204](index=204&type=chunk) - No material changes were made to internal controls over financial reporting in Q1 2023, except for the integration of the acquired PBMA business[205](index=205&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Management believes no current legal or regulatory proceedings would materially adversely affect the company's financial condition or operations - There are currently no legal or regulatory proceedings that management believes would have a material adverse effect on the company's financial condition or operations[208](index=208&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to risk factors were reported compared to the 2022 Form 10-K[209](index=209&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2023, the company repurchased **276,400** shares for **$28.3 million**, with **$446.7 million** remaining for future repurchases Share Repurchases in Q1 2023 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2023 | — | $— | | Feb 2023 | — | $— | | Mar 2023 | 276,400 | $102.46 | | **Total** | **276,400** | **$102.46** | - As of March 31, 2023, the company had **$446.7 million** remaining under its share repurchase authorizations[211](index=211&type=chunk) [Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The exhibits filed with this report include Section 302 and 906 certifications by the CEO and CFO, as well as XBRL financial data[213](index=213&type=chunk)

Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Financial Highlights First Quarter 2023 Balance Sheet Overview Michael J. Brown| Chairman & CEO • Renewed: | --- | --- | |-----------------------------------------------------|------------| | Active ATM Rollforward | Sequential | | ATMs at Beginning of Quarter 45,009 | | | Traditional High Value ATM Changes | | | Independently Deployed ATMs (151) | | | Outsourcing ATMs (46) | | | Low-Margin India ...

Euronet Worldwide, Inc. (NASDAQ:EEFT) Q1 2023 Results Conference Call May 3, 2023 9:00 AM ET Company Participants Scott Claassen - General Counsel Mike Brown - Chairman and Chief Executive Officer Rick Weller - Chief Financial Officer Conference Call Participants Andrew Jeffrey - Truist Securities Andrew Schmidt - Citi Global Markets Darrin Peller - Wolfe Research Alli Heckmann - D.A. Davidson Mike Grondahl - Northland Securities Ken Suchoski - Autonomous Research Rayna Kumar - UBS Cris Kennedy - William Bl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-31648 EURONET WORLDWIDE, INC. (Exact name of Registrant as specified in its charter) ________________________ (State or other jurisd ...

Financial Data and Key Metrics Changes - For Q4 2022, the company reported revenue of $865 million, operating income of $79 million, adjusted EBITDA of $127 million, and adjusted EPS of $1.39, reflecting strong double-digit constant currency growth driven by all three segments [15][22][42] - The company ended the year with $1.1 billion in unrestricted cash and $1.6 billion in debt, with cash generated from operations partially offset by working capital changes [5][15] Business Line Data and Key Metrics Changes - The EFT segment saw strong improvements in revenue, operating income, and adjusted EBITDA due to increased domestic and international withdrawal transactions following the lifting of COVID travel restrictions [7][10] - Money Transfer revenue grew by 9%, adjusted operating income by 6%, and adjusted EBITDA by 5%, with direct-to-consumer digital transactions growing by 38% [8][9][10] - Epay revenue grew by 9%, operating income by 12%, and adjusted EBITDA by 11%, driven by the expansion of mobile and digital payments [18] Market Data and Key Metrics Changes - The company experienced a 13% growth in U.S. outbound transactions and a 13% growth in international originated money transfers, with transfers initiated in the Middle East and Asia growing by 14% [19] - The company noted that the average amount sent per transaction in Money Transfer declined by about 3% to 4%, impacting revenue per transaction growth rates [39][133] Company Strategy and Development Direction - The company plans to continue expanding its ATM network and digital initiatives, with expectations of strong growth rates in 2023 driven by travel recovery and new market entries [29][62] - The company is optimistic about the travel industry's recovery, with expectations of double-digit top-line growth in the coming years [23][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite ongoing economic uncertainties, highlighting the importance of cash transactions during such times [46][42] - The company expects adjusted EPS for Q1 2023 to be approximately $0.85 per share, representing a 23% growth over the previous year [22] Other Important Information - The company signed multiple agreements to expand its ATM network and digital payment solutions, including partnerships in the Philippines and Spain [47][49] - The transition of Croatia's currency to the euro is expected to impact EFT results, but management believes new rate-related opportunities will offset this [21][108] Q&A Session Summary Question: Clarification on EPS growth guidance - Management confirmed that the mid-to-upper teens EPS growth guidance for 2023 is based on the full number for 2022, with expectations of strong growth in all segments, particularly EFT due to increased travel [88] Question: Insights on Money Transfer growth rates - Management indicated that while inflationary impacts have been considered, the fundamental strength in customer addition and network expansion remains strong, with expectations for a slower first quarter [76][78] Question: Contribution of Chinese travelers to business - Management noted that while Chinese travelers could provide some benefit, historically, they have not significantly contributed to profitability due to restrictions on DCC [101] Question: Timing of Ren revenue recognition - Management stated that Ren revenue is tracking as expected, with significant growth anticipated as more agreements are signed and implemented [118] Question: Confidence in travel recovery - Management expressed confidence in achieving 92% to 93% of 2019 travel levels based on Eurocontrol data and observed trends in travel bookings [126]

Revenue Segments - Euronet's EFT Processing Segment generated approximately 34% of total consolidated revenues for Q3 2022, with revenues derived from transaction fees, management fees, and foreign currency exchange margin [129]. - The epay Segment accounted for about 27% of total consolidated revenues for Q3 2022, primarily from commissions on electronic content distribution and prepaid mobile airtime [131]. - The Money Transfer Segment represented approximately 39% of total consolidated revenues for Q3 2022, driven by transaction fees and foreign currency exchange margins [132]. Operational Performance - EFT Processing Segment total revenues increased to $319.5 million for the three months ended September 30, 2022, a 41% increase compared to the same period in 2021 [149]. - For the nine months ended September 30, 2022, total revenues for the EFT Processing Segment reached $714.1 million, reflecting a 67% increase year-over-year [149]. - Gross profit for the three months ended September 30, 2022, was $181.7 million, a 50% increase from $120.8 million in the same period in 2021 [153]. - Gross profit margin improved to 56.9% for the three months ended September 30, 2022, compared to 53.2% for the same period in 2021 [153]. - Operating income for the EFT Processing Segment was $116.4 million for Q3 2022, an 84% increase compared to Q3 2021, with an operating margin of 36.4% [157]. Cost and Expenses - Direct operating costs for the three months ended September 30, 2022, were $137.8 million, a 30% increase from the same period in 2021 [151]. - Salaries and benefits expenses for the three months ended September 30, 2022, were $30.0 million, a 27% increase compared to the same period in 2021 [154]. - Selling, general and administrative expenses for the three months ended September 30, 2022, were $12.2 million, an 8% increase from the same period in 2021 [155]. - Direct operating costs for the epay Segment were $190.1 million for Q3 2022, a 5% increase from Q3 2021 [162]. - Salaries and benefits expenses were $19.8 million for Q3 2022, a 2% decrease year-over-year [165]. - Selling, general and administrative expenses were $8.5 million for Q3 2022, a 13% decrease from Q3 2021 [166]. Net Income and Taxation - Net income attributable to Euronet was $97.7 million for Q3 2022, a 32% increase compared to Q3 2021, driven by increased revenues in the EFT Segment [189]. - The effective income tax rate was 31.1% for Q3 2022, higher than the 23.6% rate in Q3 2021, due to certain foreign earnings being subject to higher tax rates [186]. Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended September 30, 2022, were $448.6 million, compared to $304.3 million for the same period in 2021 [194]. - Cash flows used in investing activities were $416.0 million for the nine months ended September 30, 2022, primarily due to the $331.0 million acquisition of PBMA [195]. - Total capital expenditures for the nine months ended September 30, 2022, were $79.4 million, with estimates for total capital expenditures in 2022 ranging from $110 million to $120 million [208]. Foreign Currency Exposure - Euronet's revenues are significantly impacted by foreign currency exchange rates, with about 75% of revenues denominated in currencies other than the U.S. dollar [127]. - Approximately 74.1% of revenues for the nine months ended September 30, 2022, were generated in non-U.S. dollar countries, indicating significant exposure to foreign currency exchange rate fluctuations [214]. - A 10% fluctuation in foreign currency exchange rates is estimated to have an annualized effect on reported net income and working capital of approximately $185 million to $190 million [215]. - The company uses derivatives primarily as economic hedges to manage foreign currency exchange rate risks, recording gains and losses in earnings in the period of change [218]. ATM and Transaction Metrics - Euronet operates a network of 49,617 ATMs and around 590,000 POS terminals globally, enhancing its transaction processing capabilities [124]. - Active ATMs as of September 30, 2022, totaled 49,617, representing a 9% increase from 45,520 in the same period in 2021 [148]. - Average monthly revenues per ATM increased to $2,112 for the three months ended September 30, 2022, compared to $1,660 for the same period in 2021 [150]. - Transactions processed increased to 1,733 million for the three months ended September 30, 2022, a 48% increase from 1,173 million in the same period in 2021 [148]. Strategic Initiatives - The company has established a Walmart-2-Walmart Money Transfer Service, which has increased transaction volumes despite lower margins [133]. - Euronet's growth strategy includes expanding its market presence through both physical and digital assets, aiming to increase transaction volumes across all segments [135]. - The company faces challenges in maintaining compliance with regulatory requirements and adapting to technological advancements in the payments industry [139]. - The COVID-19 pandemic has affected transaction volumes, particularly in the EFT Segment, due to restrictions on cross-border transactions [140].

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $931 million, operating income of $168 million, and adjusted EBITDA of $212 million, with adjusted EPS of $2.74, reflecting a 55% increase from $1.77 in the same quarter last year [6][11][12] - The strong performance was attributed to double-digit constant-currency growth across all three segments, driven by increased domestic and international cash withdrawal transactions in the EFT segment due to rising travel demand post-COVID restrictions [6][11] Business Line Data and Key Metrics Changes - The EFT segment saw significant growth, with increased domestic and international withdrawal transactions, contributing to overall revenue and gross profit expansion [9][11] - Epay revenue grew by 18%, operating income by 29%, and adjusted EBITDA by 24%, driven by mobile and digital branded payments and digital distribution channel growth [10] - Money transfer revenue, operating income, and adjusted EBITDA increased by 11%, 23%, and 29%, respectively, with notable growth in U.S. outbound transactions and international transfers [11][12] Market Data and Key Metrics Changes - The company experienced currency fluctuations, with many significant currencies declining by 10% to 20% against the U.S. dollar year-over-year, impacting cash positions [8][14] - Despite these fluctuations, the company maintained its full-year 2022 adjusted EPS guidance of $6.30 to $6.40, reflecting confidence in underlying business resilience [14][16] Company Strategy and Development Direction - The company plans to expand its ATM network into new markets and continue introducing new products in the epay segment, alongside expanding its Money Transfer network [27][28] - The company is focused on geographic and product diversity to navigate economic pressures and maintain growth through various economic cycles [22][61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about travel recovery in 2023, with expectations of reaching 92% of 2019 travel levels, which would represent a 25% improvement from the previous year [26][27] - The company remains vigilant regarding inflation impacts but has not yet seen significant pressure on revenue or gross profit across segments [13][61] Other Important Information - The company added approximately 3,000 new merchants and expanded its ATM portfolio, with a total of over 1,800 ATMs installed this year [30][32] - The company is facing challenges in the ATM supply chain but is working with new manufacturers to continue expansion [33] Q&A Session Summary Question: Confirmation on 2023 outlook and key variables - Management confirmed mid to upper teens adjusted EPS growth for 2023, with key variables including travel recovery and FX rates [64][65] Question: High-value transaction trends - Management indicated that high-value transaction recovery is trending well, with significant impacts from reduced travel from the UK [67][70] Question: Sustaining growth amid electronic payment trends - Management acknowledged the shift towards electronic payments but emphasized the continued need for cash, especially in cash-based markets [73][78] Question: Impact of strengthening dollar on guidance - Management noted consistent growth across the business despite FX headwinds, maintaining the EPS guidance [84][86] Question: R&D investments and expense management - Management confirmed ongoing R&D investments without significant increases expected for 2023, focusing on maintaining operational efficiency [90][92] Question: 2023 travel recovery tracking and margin structure - Management expressed confidence in tracking travel recovery and indicated that margins would improve as transaction volumes increase [94][96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31648 EURONET WORLDWIDE, INC. (Exact name of registrant as specified in its charter) Delaware 74-2806888 (State or other jurisdiction of in ...