Wirecard Ag · HAM:WDI
Wirecard — H1 2016 Earnings Presentation
32 slides from Wirecard's earnings presentation, August 2016
Slide 1: Wirecard AG Investor Presentation – Results First Half 2016
Wirecard AG Investor Presentation – Results First Half 2016 August 2016 © 2016 Wirecard AG 1
Slide 2: Content
Content 1. Highlights 2. Industry and regions 3. Mergers and acquisitions 4. Outlook 5. Financial data © 2016 Wirecard AG 2
Slide 3: 1. Highlights
1. Highlights © 2016 Wirecard AG 3
Slide 4: Wirecard at a glance
Highlights Wirecard at a glance 27.4 EUR bn processed transaction volume worldwide in 6M 2016 Outstanding track record with continuing growth and strong fundamentals ~ 25,000 large and medium sized merchants ~ 130,000 small sized merchants Innovation leader with state of the art internet and mobile
Slide 5: Key figures first half 2016
Highlights Key figures first half 2016 Results in EUR mn (except where stated) 6M 2016 6M 2015 Change Transaction volume (in EUR bn) 27.4 20.2 35% Revenues 451.8 340.1 33% EBITDA 132.4 98.3 35% EBIT adjusted* 114.0 84.6 35% EBIT 99.6 72.5 37% Earnings after taxes 166.8 60.9 174% Earnings after taxes
Slide 6: Global mega trends driving Wirecard's growth
Highlights Global mega trends driving Wirecard´s growth 1 Substitution of POS transactions by mobile and internet transactions 2 Transition from cash transactions to electronic card transactions 3 Transition from non-real-time transactions to real-time transactions 4 Internet technology as convergen
Slide 7: Wirecard's strategy
Highlights Wirecard´s strategy Driving convergence between online, mobile and POS front-ends using innovative internet technology Constant extension of value chain and innovative internet- Globalisation driven value added services © 2016 Wirecard AG 7
Slide 8: Data-centric value-added-services
Highlights Data-centric value-added-services Current trends in data driven commerce – Payments are most valuable – they provide purchase driven by new technology and the real-time information, but also act as a trigger for actionable data capabilities it enables: (e.g. customer loyalty) Traditional
Slide 9: Data-centric value-added-services
Highlights Data-centric value-added-services CONNECTED.POS (cPOS) Payment data Personalised (POS, ecommerce, marketing mobile Payment, mPOS) Providing data Data processing Loyalty as a service is suite status quo – Sociodemografic Digitalization of CONNECTED.POS the future lies Alternative data the
Slide 10: Organic versus M&A related growth yoy 6M 2016
Highlights Organic versus M&A1 related growth yoy 6M 2016 Transaction Revenue EBITDA growth volume growth growth Total 35.3% 32.8% 34.6% Organic 29.2% 20.0% 25.4% M&A 6.1% 12.8% 9.2% GI Retail 4.6% 10.2% 7.4% MoIP 0.9% 1.6% 0.6% Provus 0.5% 1.0% 1.3% 1 Payment business of GI Retail Group, Ind
Slide 11: Operative highlights first half 2016
Highlights Operative highlights first half 2016 New customer gains in the first half 2016 with a potential transaction volume of 8.4 EUR bn Examples of customer gains, business extensions and new partners Microsoft Cloud Platform Azure, Siemens Mobility, Verlagsgruppe Handelsblatt, Visa Europe Colla
Slide 12: 2. Industry and regions
2. Industry and regions © 2016 Wirecard AG 12
Slide 13: Transaction volume – industry and geographic view
Industry and regions Transaction volume – industry and geographic view 27.4 EUR bn transaction volume in 6M 2016 Travel & mobility 35.3% yoy growth • Includes airlines, hotel chains, travel portals, tour operators, ferries, car 19.1 EUR bn 8.3 EUR bn rental and transportation companies Europe Outsid
Slide 14: 3. Mergers and acquisitions
3. Mergers and acquisitions © 2016 Wirecard AG 14
Slide 15: Overview of recent M&A activity
Mergers and acquisitions Overview of recent M&A activity • Online payment provider focused on market places and SMEs • Market entry into Brazil / Latin America • Employees: >150 MoIP Pagamentos, Brazil • Cash payment of 23.5 EUR mn, further earnouts up to 13.5 EUR mn • Expected EBITDA 2016: 2.2 EUR
Slide 16: Highlights Citi Prepaid Card Services
Mergers and acquisitions Highlights Citi Prepaid Card Services Global expansion with market entry U.S. Growth opportunities due to cross-selling effects Leading position in institutional funded prepaid card issuing with more than 2,500 client programs launched Segment leading corporate clients Highl
Slide 17: Track record of recent M&A activity
Mergers and acquisitions Track record of recent M&A activity Revenue EBITDA Payment business of GI 34.7 EUR mn 7.2 EUR mn Retail Group, India in 6M 2016 in 6M 2016 (consolidation as of (consolidation as of December 30, 2015) December 30, 2015) Revenue EBITDA MoIP Pagamentos, Brazil 5.6 EUR mn 0.6 EU
Slide 18: Entering the U.S. – What's next?
Mergers and acquisitions Entering the U.S. – What´s next? Consumer funded Acquiring cards Virtual Loyalty & credit cards couponing Issuing B2B platform industry Migration and network processing Prepaid Mobile card issuing payment Corporate Global funded customer MOBILE WALLET cards base by WIRECARD
Slide 19: Vision 2020 – global payment provider
Mergers and acquisitions Vision 2020 – global payment provider Own acquiring licence Own issuing licence Own acquiring & Issuing licence BIN sponsorship agreements acquiring and/or issuing Additional licences/BIN sponsorships 2020 Vision Global availability of IP based payment technology Status quo
Slide 20: 4. Outlook
4. Outlook © 2016 Wirecard AG 20
Slide 21: Market environment
Outlook Market environment • Expected global e-commerce growth in 2016 of 16% to 17%* Strong market • Ongoing expected growth of the European e-commerce market of 12% for 2016** prospects • Strong growth prospects for the Asian market of 25% in 2016*** • Consumer goods Europe projected to grow at 11
Slide 22: Company guidance
Outlook Company guidance • EBITDA guidance for FY2016 of 290 to 310 EUR mn Guidance is based on • Growth of the European e-commerce market and additional global growth drivers • Increase of processed transaction volume with existing and new clients • Economies of scale • Contribution from recent acq
Slide 23: 5. Financial data
5. Financial data © 2016 Wirecard AG 23
Slide 24: Financial highlights 6M 2016
Financial data Financial highlights 6M 2016 in EUR k 6M 2016 6M 2015 Change Revenue 451,790 340,086 33% EBITDA 132,351 98,299 35% EBIT adjusted* 113,966 84,570 35% EBIT 99,628 72,550 37% Tax 16,421 8,027 105% Earnings after taxes 166,814 60,949 174% Earnings after taxes adjusted** 76,951 60,949 26%
Slide 25: Consolidated income statement
Financial data Consolidated income statement in EUR k 6M 2016 % of revenues 6M 2015 % of revenues Revenues 451,790 340,086 Own work capitalised 11,576 13,297 Cost of materials -231,603 51.3% -186,867 54.9% Personnel expenses -59,396 13.1% -43,253 12.7% Other operating expenses -43,683 9.7% -29,724 8
Slide 26: Balance sheet
Financial data Balance sheet Assets in EUR k 30.06.2016 31.12.2015 Equity and liabilities in EUR k 30.06.2016 31.12.2015 Non-current assets 1,332,399 1,280,261 Shareholders´ equity 1,340,675 1,280,513 Goodwill 519,666 489,301 Liabilities 1,861,132 1,654,988 Customer relationships 400,419 385,451 Cur
Slide 27: Net cash (short and long term)
Financial data Net cash (short and long term) Net cash bridge 6M 2016 In EUR mn 1,800 467 -341 1,600 1,400 -453 1,173 1,200 1,000 -331 800 149 -385 600 516 400 280 200 0 Cash and cash Receivables of Current interest Customer Liabilities of Net cash Non-current Non-current Net cash equivalents acquir
Slide 28: Income tax analysis
Financial data Income tax analysis in EUR k 6M 2016 in % of ebt 6M 2015 in % of ebt Earnings before tax (EBT) 183,235 68,976 Tax on income and profit -16,421 9.0% -8,027 11.6% thereof impact from deferred tax 149 -0.1% 1,890 -2.7% thereof tax to be paid -16,570 9.0% -9,917 14.4% Paid tax on income -
Slide 29: Cash flow and conversion
Financial data Cash flow and conversion Free cash flow in EUR k 6M 2016 6M 2015 Cash flow from operating activities 113,386 85,594 (adjusted) Operative CAPEX 28,507 23,085 Free cash flow 84,879 62,509 Cash conversion in EUR k 6M 2016 6M 2015 Free cash flow 84,879 62,509 Earnings after tax* 76,951 60
Slide 30: Accounting treatment of Visa Europe sale
Financial data Accounting treatment of Visa Europe sale • On November 2, 2015 Visa Inc announced the acquisition of Visa Europe Limited • Proceeds from Visa Europe sale are based on the membership of Wirecard Bank Background AG and Wirecard Card Solutions Ltd and deal • Closing on June 21, 2016 stru
Slide 31: 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 © 2016 Wirecard AG 31
Slide 32: 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 condi