Nick Wiles, Chief Executive Alan Dale, Finance Director 27 May 2021 2 1 Overview 2 Structural changes & Covid-19 3 Strategy update 4 Financial review 5 Operational review 6 Investment case Results for the year ended 31 March 2021 3 Strategic Financial Operational • Step change in strategic • Net revenue from continuing • Major client relationship delivery whilst delivering a operations of £97.1m, down 9.1%, renewal programme complete solid financial performance driven by impact of Covid-19 on bill with accelerated expansion to against the backdrop of payments, ATM and parcels but digital services Covid-19 offset by growth in card payments, • Strong transaction growth in • Repositioning of the business eMoney and PayPoint One service card payment, eMoney and for growth driven through fees parcels reflecting the acquisitions of • Underlying profit before tax from PayPoint Group’s position to Handepay/Merchant Rentals, continuing operations of £35.5m, take advantage of the trends i-movo, RSM 2000, full down 19.3% accelerated through Covid-19 ownership of Collect+ and • • Strengthened the proposition accelerated internal Romania disposal – net proceeds of for clients and retailer investments in our core UK £48m, completed shortly after year partners, improved market end. Results included a full year trading performance of £7.6m PBT engagement and service to • Disposal of Romanian deliver better value and • business completed on 8 April Net corporate debt of £68.2m, support to customers, and 2021, under-pinning UK- reflects the impact of the strategic identified new areas of growth focused strategy acquisitions made in the year and in our core UK market prior to benefit of proceeds from • Enlarged PayPoint Group now Romania disposal • Parcels: Collect+ now fully delivering a broader range of owned; three new partners – • innovative services and Final ordinary dividend of 16.6p per DPD, Hubbox and Parcels2Go; technology connecting share, an increase of 6.4%, Send service launched millions of consumers with an consistent with policy announced at • Executive Board expanded universe of over FY in May 2020 strengthened to deliver 60,000 retailer partner and • Provision of £12.5m made as current growth and focus on UK SME locations across multiple best estimate for resolution of market sectors Ofgem Statement of Objections Results for the year ended 31 March 2021 4 • On 30 September 2020, we announced that we had received a Statement of Objections from Ofgem setting out its provisional views that PayPoint infringed competition law through entering into certain contractual terms with certain energy suppliers that confer exclusivity to PayPoint for the provision of payment services to prepayment energy customers in combination with exclusivity in retailer arrangements. Ofgem’s Statement of Objections focuses on contracts in the period prior to October 2018 • Ofgem’s findings in the Statement of Objections are provisional and Ofgem states that no conclusion should be drawn that there has been an infringement at this stage • We are considering Ofgem’s provisional views set out in the Statement of Objections and, based on the range of potential outcomes in such proceedings, we believe there will likely be a future outflow of funds in the next financial year • Our current best estimate for a resolution of this matter is £12.5m and we have accordingly made a provision for this in the current year. This estimated provision is not an admission of liability in relation to Ofgem’s provisional views in the Statement of Objections Results for the year ended 31 March 2021 6 Going into the 2020/21 financial year, management recognised the need to reposition the business in response to the impact of structural changes in our traditional legacy markets and the Covid-19 pandemic. In addition to the full year impact from the loss of the British Gas contract (£3.8m), the business faced: • the impact of declining bill payment transactions, • rate reductions to a number of energy client contracts on renewal • the long-term decline of cash usage, with its effect on our ATM business and more broadly across bill payments, a trend accelerated throughout Covid-19 £m Results for the year ended 31 March 2021 7 • Strengthen our relationships and broaden our digital payments solutions for our core energy clients • Broaden our digital payment offer and capabilities into non-energy sectors, including housing and local authorities • Expand our cash through to digital payment capabilities and proposition, through acquisitions and internal investments, including card payments and Direct Debit • Revitalise and enhance our service and retailer proposition through a combination of targeted acquisitions and investment • Establish Collect+ as the pre-eminent technology-enabled e-commerce delivery platform • Optimise our ATM estate and develop new innovative ‘access to cash’ solutions, such as the LINK Counter Service • Broaden our retailer proposition to deliver increased value to our retailer partners, through initiatives such as launching new eMoney partnerships and developing home delivery and FMCG propositions Results for the year ended 31 March 2021 8 Q1 20/21 vs 19/20 Q2 20/21 vs 19/20 Q3 20/21 vs 19/20 Q4 20/21 vs 19/20 Transactions by service % increase/ % increase/ % increase/ % increase/ (decrease) (decrease) (decrease) (decrease) UK bill payment1 (25.0%) (18.7%) (25.3%) (23.7%) UK mobile top-up (20.0%) (19.0%) (16.9%) (16.6%) UK eMoney 12.4% 18.4% 25.8% 41.4% ATM (30.3%) (19.2%) (23.1%) (24.3%) Card payment 80.3% 57.7% 46.2% 33.6% Parcels (13.0%) 7.5% 6.6% 33.8% Sites suspended due to Covid-19 350 300 250 200 150 100 50 0 UK PayPoint One UK ATMs UK Card payments2 UK Parcels As at 31 March 2020 As at 30 June 2020 As at 30 September 2020 At 31 December 2020 As at 31 March 2021 NB. Additional ATM sites closed at 31 Dec 2020 and 31 1. Excludes British Gas transactions Mar 2021 due to Covid-19 2. PayPoint card payment business only sector specific restrictions Results for the year ended 31 March 2021 10 PayPoint Group We deliver innovative services and technology connecting millions of Overview consumers with over 60,000 retailer partner and SME locations Divisions Payments and Banking Shopping E-commerce Macro Trends Cash through to digital Shop local E-commerce explosion Sustainable, essential services that have a positive impact on UK communities and ESG the world we live in We help consumers We improve the We deliver best-in- conveniently make consumer shopping class and receive experience and drive e-commerce What payments online and footfall to thousands customer journeys in-store for the of SMEs and retailers over the first and last biggest service across the UK mile brands in the UK • Digital – MultiPay • Retail services – • Cash through to EPoS, FMCG, • E-Commerce - How digital - eMoney Store To Door, Collect+ (Send, • Cash - In/Out & ATMs Pick Up, Drop Off) Banking • Card payments Updated reporting and disclosure for 21/22 financial year Q1 Trading Update in July and H1 Results in Nov Results for the year ended 31 March 2021 11 Strong portfolio of brands within the PayPoint Group, supporting our clients and retailer partners with innovative solutions and product offerings, across different sizes of network Results for the year ended 31 March 2021 *Projected 13 2021 2020 Year ended 31 March (Restated)1 £m £m Change Revenue from continuing operations 127.7 144.3 (11.5%) Net revenue from continuing operations2 97.1 106.8 (9.1%) See slide 15 Operating margin from continuing operations3 38.0% 47.2% (9.2ppts) Profit before tax from continuing operations4 19.4 50.0 (61.1%) Profit before tax from discontinued operations 7.6 6.8 10.8% Underlying profit before tax from continuing operations 35.5 44.1 (19.3%) See slide 14 Diluted earnings per share 31.3p 66.3p (52.8.%) Ordinary dividend paid per share 31.2p 47.2p (34.0%) Final dividend declared 16.6p 15.6p 6.4% Cash generation5 52.2 66.4 (21.4%) Cash generation from continuing operations 44.1 57.9 (23.8%) See slide 17 Net corporate debt6 (68.2) (12.0) (465.8%) See slide 19 1. Comparative information has been restated due to a discontinued operation. Refer to note 9 of financial information. 2. Net revenue is an alternative performance measure. Refer to note 1 of financial information for a reconciliation to revenue. 3. Operating margin % is an alternative performance measure and is calculated by dividing operating profit by net revenue. 4. Profit before tax from continuing operations includes £3.6 million of non-recurring costs associated with the acquisitions undertaken in the year and the £12.5 million provision made as a current best estimate for a resolution of Ofgem’s Statement of Objections 5. Cash generation is an alternative performance measure. Refer to the financial review – cash flow and liquidity for a reconciliation from profit before tax. 6. Net corporate debt (excluding IFRS 16 liabilities) is an alternative performance measure. Refer to note 1 to the financial information for a reconciliation to cash and cash equivalents. Results for the year ended 31 March 2021 14 £57m (19.3%) (£6.8m) £52m (£3.8m) £47m (£2.1m) £1.5m £42m (£9.9m) £37m £56.8m £0.5m (£0.7m) £50.0m £32m £46.2m £44.1m £44.1m (£16.1m) £27m £35.7m £35.5m £35.5m £22m £19.4m £17m PBT 19/20 Romania Continuing British Gas Variable Pay Underlying UK retail UK bill Acquisitions Costs Underlying Exceptional Reported Operations Benefit PBT 19/20 services payments contribution PBT costs PBT 20/21 and top-ups continuing operations 20/21 Results for