Deluxe : Investor Presentation February 2025
DLX
I n v e s t o r O v e r v i e w /
M a t e r i a l s
WHO WE ARE
DELUXE ENTERPRISE OVERVIEW
DLX AT A GLANCE
Key Numbers
Selected Operational Metrics
$2.1B
$407MM
2024 total revenue
2024 adjusted
EBITDA
>$40B
>$2T
Merchant processing
In payments value
volume (annually)
processed (annually)
$100MM
~6%
2024 free cash
Annual dividend
flow
yield
Diversified Revenue
FORTUNE 1000 COMPANY OPERATING IN
FOUR MAIN SEGMENTS:
Data
11%
Merchant
Svcs
'24 REV % by
18%
57%
OP SEGMENT
B2B
Payments
14%
H Q
F O U N D E D
N Y S E
MPLS, MN
1915
DLX
Who We Serve
OVER 4,000 FIs
180
OUT OF
200
TOP FIs
MILLIONS
of SMBs ACROSS AN ARRAY OF SERVICES
4
DLX HISTORY / TIMELINE:
WE A R E H ER E
Declines within core Check & print portfolio accelerate
Late 1990's - 2007
Organic declines offset via aggressive Portfolio M&A
Inorganic / M&A category expansion:(exited / retained)
SMB's
FI's
Logo creation / design
CC Affinity / Rewards
Web Hosting
Branch P&L mgm't (SaaS)
Payroll / Incorp Svcs
Misc. supply logistics
Marketing Svcs - search / social
Branded promo & retail packaging
2008-2018
Select (exited) business lines:
(US, CAD, AUS, EU)
Portfolio
Built a
cohesive foundation
Present-2026
Driven by Payments &
Data
5
OUR STRATEGY IS SIMPLE
GROW PAYMENTS & DATA, PAY DOWN DEBT, & CUT CORPORATE COSTS
OUR BUSINESSES
2024 REVENUE
Rev % of Total DLX
2024 ADJ EBITDA
2024 ADJUSTED EBITDA MARGIN %
KEY COMPONENTS
LEGACY PRINT BUSINESSES
CheckPromotional
Products
$1.21 billion
57%
$377 million
31%
v
PAYMENTS & DATA BUSINESSES
CORPORATE
Merchant
B2B
Data
Corporate
Services
Payments
$906 million-
43%
-
$196 million
($166) million
22%
(7.8%)
Secular growth markets• Drive efficiencies
• Merchant: Deep vertical expertise
across shared-
service functions
6
DELUXE TODAY
LEGACY PRINT BUSI NESSES
PAYM ENTS & DATA BUSINESSES
CheckPromotional
Products
• Print & deliver checks
• Branded forms, deposit
for our bank and small
tickets, & other
business partners
customized items that
complement checks
•
Checks still 40%
of all business
• Often printed on the same
payments today
equipment as checks
•
Ship over 90K
packages of checks
per day
MerchantB2B
ServicesPayments
• Helping merchants
• Helping our clients
accept more than
manage their most
$40B of electronic
challenging B2B
payments every
payments pain points
year anywhere their
w/ software &
customers would
payments solutions
like to pay
Data
TAM: ~$2B
TAM: ~$26B
TAM: ~$25B
TAM: ~$33B
TAM: ~$18B
7
2024 Segment Highlights
Strong Operating Leverage - second consecutive year; Comp Adj EPS +8% vs 2023
Merchant Services
B2B Payments
Data Solutions
year Print-on-Demand investment
8
2025 Guidance
Well-positioned for sustainable growth
Additional modeling assumptions:
◦ Interest expense of approximately $120 million
◦ Adjusted tax rate of 26%
◦ Depreciation and amortization of $140 million, of which acquisition amortization is approximately $45 million
◦ Average outstanding share count of 45.5 million shares
◦ Capital expenditures between $90 and $100 million
All figures are approximate, and remain subject to, among other things, prevailing macroeconomic conditions, labor supply challenges, inflation, and the impact of other potential changes to the company's portfolio.
CLEAR 3-YEAR VALUE CREATION ALGORITHM
OUR FOCUS
Drive profitable organic growth in Payments and Data Keep efficiency focus on Print & Corporate
Increase our free cash flow by improving leverage ratio & reducing restructuring charges post-2024
Drive focused execution through North Star plan
Maintain our dividend: continue to return capital to shareholders
BY 2026
~2-4% y/y revenue growth, ~4-6% y/y EBITDA growth
3x leverage
30%+ FCF conversion
+$80MM EBITDA & +$100MM FCF
$0.30 per share per quarter
Sustain performance: Changing culture, talent, & processes through '26 & beyond
15%+ annual total shareholder return through 2026
10
Disclaimer
Deluxe Corporation published this content on February 24, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 24, 2025 at 19:31:01.363.