Wirecard Ag · HAM:WDI

Wirecard — 9M 2015 Earnings Presentation

39 slides from Wirecard's earnings presentation, Nov 18, 2015

  1. Slide 1: Results 9M/Q3 of Fiscal Year 2015 Investor Presentation

    Agenda Wirecard AG 1. Kennzahlen Results 9M/Q3 of / Highlights fiscal year 2015 Investor Presentation 18 November 2015

  2. Slide 2: Content

    Content 1. Key Figures / Highlights 2. Products and Solutions 1. Kennzahlen 3. Growth Drivers, /Strategy Highlights and Outlook 4. Financial Data

  3. Slide 3: 1. Key Figures / Highlights

    1. Key Figures / Highlights

  4. Slide 4: Key Figures first 9 months of fiscal year 2015

    Key Figures / Highlights Key Figures first 9 months of fiscal year 2015 9M 2015 9M 2014 Change Results Transaction Volume EUR bn 32.0 24.4 31% Revenues EUR mn 541.0 424.2 28% EBITDA EUR mn 158.4 121.0 31% EBIT adjusted* EUR mn 135.0 104.3 29% EBIT EUR mn 119.1 92.2 29% Earnings after taxes EUR mn 98

  5. Slide 5: Average Transaction Volume per Merchant 2009 - 2014

    Key Figures / Highlights Average Transaction Volume per Merchant 2009 - 2014 in mn EUR 1.9 1.8 1.81 1.67 1.6 1.49 1.4 1.2 1.19 1.05 1.0 0.96 0.8 0.6 2009 2010 2011 2012 2013 2014 © 2015 Wirecard AG 5

  6. Slide 6: Diversified Customer Portfolio – Target Industries

    Key Figures / Highlights Diversified Customer Portfolio – Target Industries In first 9 month 2015 the transaction volume * grew to EUR 32.0 billion (31.1% yoy). Thereof EUR 7.9 billion (24.7% from total volume) was generated outside of Europe. The allocation as at the end of the third quarter 2015 t

  7. Slide 7: Operative Highlights YTD 2015

    Key Figures / Highlights Operative Highlights YTD 2015  Examples of strong customer gains/extension of business relations in target sectors: Carrefour Indonesia (retail), M1 mPOS (mPOS solution of leading Singaporean telco), LSG Sky Chefs (airline catering), CIMB Bank (Malaysian universal bank), Sp

  8. Slide 8: Operative Highlights/Innovations YTD 2015

    Key Figures / Highlights Operative Highlights/Innovations YTD 2015  Payment Wearable/Payment Wearable SDK: Wirecard presented a payment wearable solution based on Host Card Emulation (HCE) technology and launched a Software Development Kit (SDK) for wearable payment solutions. A dedicated developer

  9. Slide 9: Operative Highlights/Innovations YTD 2015

    Key Figures / Highlights Operative Highlights/Innovations YTD 2015  Wirecard Checkout Portal - Higher conversion rate through targeted search engine marketing: With Google AdWords, Wirecard AG is offering with its partners a new premium service for its Checkout Portal, a fully automated solution th

  10. Slide 10: M&A Transaction

    Key Figures / Highlights M&A Transaction  Acquisition/  Acquisition 27/10/2015 expected  End of 2015/ Beginning of 2016 closing:  Structure:  The acquired payment business of GI Retail Group provides transaction-based services in e-commerce and money remittance  100% of shares of payment servi

  11. Slide 11: M&A transaction

    Key Figures / Highlights M&A transaction  Purchase-  EUR 230 million (including a capital increase of GI Technology) Price:  Earn-Outs:  Up to EUR 110 million – linked to financial performance in the years 2015 to 2017  Financing:  Cash + comitted bank loans  Employees:  More than 900 employ

  12. Slide 12: M&A transaction

    Key Figures / Highlights M&A transaction  Main  Combination of innovative technology and agent-assisted service delivery products/  Unique multi-channel platform to deliver a wide range of commerce offerings and services: financial services (TheSmartshop)  Virtual semi-closed-loop prepaid wallet

  13. Slide 13: M&A transaction – business model

    Key Figures / Highlights M&A transaction – business model 1. Retail assited e-commerce: Agents provide access and payment-services for e-commerce via Smartshop – example for a common transaction: Client Agent Hermes Service Partner INR 100.0 INR 97.6 INR 96.0 Transaction flow INR 4.0 Revenue INR 2.4

  14. Slide 14: M&A transaction – business model

    Key Figures / Highlights M&A transaction – business model 2. E-commerce purchase/payment with iCASHCARD (prepaid wallet) Client/ iCASHCARD e-commerce shop PSP GIT holder processing/redemption of iCASHCARD iCASHCARD purchase order INR payout/settlement INR pre-funded account Revenue recognition: main

  15. Slide 15: Where we are

    Key Figures / Highlights Where we are © 2015 Wirecard AG 15

  16. Slide 16: 2. Products and Solutions

    2. Products and Solutions

  17. Slide 17: HCE app for mobile payment – redefining smartphone payments

    Products and Solutions HCE app for mobile payment – redefining smartphone payments Make payments conveniently and securely on your smartphone. Simply hold your smartphone against the payment terminal in a shop, enter your PIN and that's it! © 2015 Wirecard AG 17

  18. Slide 18: Products and Solutions: boon usability and security

    Products and Solutions Usability boon. comes with an intuitive user interface and fresh design that represents the modern, individual lifestyle of its users. After the app download, boon. is ready to be used immediately. Mobile payments with boon. are already possible at any NFC-enabled point-of-sal

  19. Slide 19: End-to-end services

    Products and Solutions End-to-end services  Mainly operated by Wirecard’s B2B clients and partners Front-End-  Interface with end-customer (online, mobile, POS) Solutions  End-to-end services for all industry verticals / White-Label, Co-Branded, Wirecard-Branded:  Technical Services  Risk Manag

  20. Slide 20: Fintech cooperation provides benefits for all parties

    Products and Solutions Fintech cooperation provides benefits for all parties  Fintechs concentrate on  trends and technological innovations  Improvement of banking with regards to promptness, comfort and efficiency.  multichannel-solutions available online, mobile or at the POS  Fintechs need 

  21. Slide 21: Fintech lending platform clients

    Products and Solutions Fintech lending platform clients (Wirecard providing riskmanagement, technology, banking, processing and backup-services): Payback collection Wirecard (principal + interest) - Riskmanagement - Technology - Processing Payback payout - Banking services to investors + Collection

  22. Slide 22: Wirecard ePOS concept: Customer-controlled check-out

    Products and Solutions Wirecard ePOS concept: Customer-controlled check-out The customer uses the merchant’s application and is checked in at the retailer using Bluetooth on the Customer scans the No more queuing mobile phone goods using the app at the check-out Loyalty points and vouchers can be Fo

  23. Slide 23: Products and Solutions

    Products and Solutions © 2015 Wirecard AG 23

  24. Slide 24: More than 21,000 merchants

    Products and Solutions More than 21,000 merchants © 2015 Wirecard AG 24

  25. Slide 25: 3. Growth Drivers, Strategy and Outlook

    3. Growth Drivers, Strategy and Outlook

  26. Slide 26: E-Commerce

    Growth Drivers, Strategy and Outlook E-Commerce  Online retail sales in Western Europe are growing at a CAGR of 12% until 2018 (Forrester Research Online Retail Forecast, 2013 to 2018)  The annual transaction value of online, mobile and contactless payments: $4.7 trillion by 2019 (2014: $2.5 trill

  27. Slide 27: Issuing and Mobile Services

    Growth Drivers, Strategy and Outlook Issuing and Mobile Services  195 billion mobile commerce transactions annually from mobile phone and tablet users by 2019, up from 72 billion in 2014 (CAGR: 22.05%) (Juniper Research, December 2014)  Over 2 billion mobile phone or tablet users will make some fo

  28. Slide 28: Outlook

    Growth Drivers, Strategy and Outlook Outlook FY 2015: The Management Board has added granularity to its previous EBITDA forecast for the 2015 fiscal year of EUR 220 million to EUR 232 million, to a current forecast of EUR 223 million to EUR 232 million. Forecast based on:  European E-commerce marke

  29. Slide 29: 4. Financial Data

    4. Financial Data

  30. Slide 30: Key Figures 9M 2015/9M 2014

    Financial Data Key Figures 9M 2015/9M 2014 in kEUR 9M 2015 9M 2014 Change Revenues 540,981 424,240 28% EBITDA 158,351 120,954 31% EBIT adjusted* 135,047 104,285 29% EBIT 119,111 92,161 29% Taxes 15,734 14,193 11% Profit after Taxes 98,265 74,158 33% EPS (undiluted) in EUR 0.80 0.61 31% Operating cas

  31. Slide 31: Revenues, Costs & EBITDA Growth 9M 2015/9M 2014

    Financial Data Revenues, Costs & EBITDA Growth 9M 2015/9M 2014 in kEUR 9M 2014 9M 2015 600.000 +27.5% 6M 2015 500.000 400.000 +26.2% 300.000 +30.9% 200.000 100.000 424.240 540.981 303.286 382.630 120.954 158.351 Revenue Cost of materials, own work EBITDA capitalised, personnel expenses, other operat

  32. Slide 32: Development Acquiring & Issuing Segment 9M 2015

    Financial Data Development Acquiring & Issuing Segment 9M 2015 in kEUR 9M 2015 Revenues EBITDA Acquiring & Issuing Segment 185,912 27,161 Acquiring 146,475 18,363 Issuing 39,437 8,798 © 2015 Wirecard AG 32

  33. Slide 33: Consolidated Income Statement 9M 2015/9M 2014

    Financial Data Consolidated Income Statement 9M 2015/9M 2014 in kEUR 9M 2015 of revenues 9M 2014 of revenues Revenues 540,981 424,240 Own work capitalised 19,800 18,355 Cost of materials -295,469 54.6% -241,835 57.0% Personnel expenses -66,118 12.2% -47,156 11.1% Other operating expenses -45,067 8.3

  34. Slide 34: Income taxes 9M 2015/9M 2014

    Financial Data Income taxes 9M 2015/9M 2014 in kEUR 9M 2015 in % of earnings 9M 2014 of earnings before before taxes taxes Earnings before taxes 113,999 88,351 Taxes on income and profit -15,734 13.8% -14,193 16.1% thereof impact from deferred taxes -1,617 1.4% -2,024 2.3% thereof taxes to be paid -

  35. Slide 35: Balance Sheet as of 30 September 2015/31 December 2014

    Financial Data Balance Sheet as of 30 September 2015/31 December 2014 Assets in kEUR 30.09.2015 31.12.2014 Equity and liabilities in kEUR 30.09.2015 31.12.2014 Non-current assets 851,892 812,145 Shareholders´ equity 1,149,537 1,072,886 Goodwill 223,476 218,202 Liabilities 1,038,371 922,273 Customer

  36. Slide 36: Net Cash Position and Free Cash Flow

    Financial Data Net Cash Position and Free Cash Flow 30 Sept 2015/30 Sept 2014 Net Cash Position in kEUR 30.09.2015 Cash and cash equivalents 793,297 Trade and other receivables 380,310 Interest-bearing liabilities / other current liabilities -56,813 Customer deposits from banking operations -475,648

  37. Slide 37: Sale of Visa Europe to Visa Inc.

    Growth Drivers, Strategy and Outlook Sale of Visa Europe to Visa Inc. Visa Inc. to acquire Visa Europe from European member banks Purchase Price includes EUR 16.5 billion upfront payment (11.5 in cash and 5.0 in shares) and up to EUR 4.7 billion earn-out, in total 21.2 billion whereof Wirecard Bank

  38. Slide 38: Disclaimer

    Disclaimer This presentation contains explicit and implicit forward -looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial cond

  39. Slide 39: Contact

    Contact Investor Relations Iris Stöckl: [email protected] IR-Team: [email protected] T: + 49 (0) 89 4424 1788 Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany

Wirecard — 9M 2015 Earnings Presentation on 6ix