Worldline Sa · EURONEXT:WLN
Worldline Sa — Merger or Acquisition (November 2015)
46 slides from Worldline Sa's merger presentation, Nov 3, 2015
Slide 1: Worldline Q3 2015 revenue
SCOLOOH CO SOLOS FS SF SHOHHOH SHOSHHH SHSSOHS SOHLE8ESE SOHHSHOHOHOHSOHSHHSSHHHOHSHOHSHHOHSHHHHHHSHOHHHHOHHOHHOOOOOOHOOD ‘Worldline Q3 2015 revenue Q3 20 November 34, 2015
Slide 2: Disclaimer
Disclaimer ● This document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a number of risks and uncertainties tha
Slide 3: Highlights third quarter 2015
SCOCOOS OS COLES © SF SHHOHOS SOSHOS SHSOHSHS FSESSE8ESE SOHHSHOHOHOHSOHSHHSSHHHOHSHOHSHHOHSHHHHHHSHOHHHHOHHOHHOOOOOOHOOD highli ights third quarter 2015 Gilles Grapinet, Chief Executive Officer SOOHSOOHSSHOHOHHHHHSHHOHHHHHHHOHHSHOHHHOOHOOHHOOOOHOOOOO®
Slide 4: Q3 2015 key figures
Q3 2015 key figures € 305.6m € 1.7bn € 40.2m 1.4 years +10.0% € 303.2m 5.0% organic + of revenue vs Q3 2014 4 | CONFIDENTIAL © Worldline
Slide 5: 2015 Objectives confirmed
2015 Objectives confirmed Revenue 4% to 5% organic growth OMDA +c.50 bp vs. 2014 Free € 120m to € 125m Cash Flow 5 | CONFIDENTIAL © Worldline
Slide 6: Revenue third quarter 2015
SCOCOOS OS COLES © SF SHHOHOS SOSHOS SHSOHSHS FSESSE8ESE SOHHSHOHOHOHSOHSHHSSHHHOHSHOHSHHOHSHHHHHHSHOHHHHOHHOHHOOOOOOHOOD Tevenue third quarter 2015 Bruno coq Chief Financial Officer SOOHSOOHSSHOHOHHHHHSHHOHHHHHHHOHHSHOHHHOOHOOHHOOOOHOOOOO®
Slide 7: Constant scope and exchange rate figures reconciliation
Constant scope and exchange rate figures reconciliation Scope and FX effects Performance Summary Q3 2014 Exchange Q3 2015 Organic In € million Q3 2014* statutory rates effect actuals change Merchant Services & Terminals 90.7 1.3 92.0 98.6 7.2% Financial Processing & Softw are Licensing 99.0 1.4 100.
Slide 8: Q3 2015 revenue per Global Business Line
Q3 2015 revenue per Global Business Line Revenue Q3 In € million Q3 2015 Q3 2014* % Growth Merchant Services & Terminals 98.6 92.0 +7.2% Financial Processing & Softw are Licensing 103.5 100.4 +3.0% Mobility & e-Transactional Services 103.5 98.5 +5.0% Worldline 305.6 291.0 +5.0% * At September 2015 c
Slide 9: September 2015 YTD revenue per Global Business Line
September 2015 YTD revenue per Global Business Line Revenue 9 months Sep YTD Sep YTD In € million % Growth 2015 2014* Merchant Services & Terminals 292.1 276.9 +5.5% Financial Processing & Softw are Licensing 304.0 297.6 +2.1% Mobility & e-Transactional Services 304.5 287.9 +5.8% Worldline 900.6 862
Slide 10: 9M 2015 Free cash flow growth
9M 2015 Free cash flow growth, in € million 110 105 100 +11.1% 95 90 85 €93.9m €104.4m 80 75 70 9M 2014 9M 2015 10 | CONFIDENTIAL © Worldline
Slide 11: Commercial & operational performance
© 00 © CO © C8 C88C8COO CO SCOCOOS OS COLES © SF SHHOHOS SOSHOS SHSOHSHS FSESSE8ESE SOHHSHOHOHOHSOHSHHSSHHHOHSHOHSHHOHSHHHHHHSHOHHHHOHHOHHOOOOOOHOOD commercial & operational performance ird quarter 2015 Marc-Henri Desportes, General Manager SOOHSOOHSSHOHOHHHHHSHHOHHHHHHHOHHSHOHHHOOHOOHHOOOOHOOOOO®
Slide 12: Award and industry recognition
Award and industry recognition Worldline ranked by Ovum as one of the 5 world leaders in Card Management Ovum Services. Ovum Decision Matrix Selecting a Card Management System Platform, 2015–16 Recognition of the technological advance and functional richness of “…all of Worldline's CMS platforms b
Slide 13: Business Highlights
Business Highlights Mobility & Merchant Services Financial Processing e-Transactional & Terminals & Software Licensing Services Key achievements Key achievements Key achievements And business update And business update And business update • Good volume growth in • Panin Bank • Automated traffic offe
Slide 14: Conclusion third quarter 2015
© © SCOCCOOSS C8000CS © © 08 © 08 © OS COCSSOOO 00 SCOCOOS OS COLES © SF SHHOHOS SOSHOS SHSOHSHS FSESSE8ESE SOHHSHOHOHOHSOHSHHSSHHHOHSHOHSHHOHSHHHHHHSHOHHHHOHHOHHOOOOOOHOOD conclusion third quarter 2015 Gilles Grapinet, Chief Executive Officer SOOHSOOHSSHOHOHHHHHSHHOHHHHHHHOHHSHOHHHOOHOOHHOOOOHOOOOO
Slide 15: Key take aways
Key take aways Q3 2015 revenue and cash generation, fully in line with 2015 ambition Good momentum in international cross selling and innovative offerings Continued focus to take full advantage of structural changes and consolidation trends of the European payment industry 15 | CONFIDENTIAL © Worldl
Slide 16: Planned transaction with Equens
ee e ee ee eco e e e ee eee @ @ ee eee @ e e e e ee ece e000 e e ee ee eooecee e e@ e€@ © @@ 0008000 e ecoeooee © eeoee @ ee e ecoecoe eoooeoee eeoeeeeee SCeeeeeeeeeeee ee ecooce e eecsocceoe ee eco
Slide 17: Disclaimer
Disclaimer This document contains further forward-looking statements that involve risks and uncertainties, including references concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-lookingstatements. S
Slide 18: Agenda
Agenda 1. Executive Summary 2. Business benefits & industrial ambition 3. Transaction structure & value creation 4. Key deal takeaways 5. Q&A 18 | November 3rd, 2015
Slide 19: Executive summary
ee e e ee © ©8 08 08 C86 eee e8 ee e e@ eee ee eeee e@ee@ @ e808 @ @ ee e@ ee @ e000 002 060 @ © OO e eo @ e8 &@ 60 ee e@ee8et @ @ ee ee @ ee eee ee ©e 200 8200 © ©8060 8800800 0800 800 0200 © © @8 C880 CO e ee COC8COCCe 080008 © © 08 © C8 © CO C0888 888 80 COOOOCH OCH SOOOS © OC SCHOSHOH SOKOHS SEO
Slide 20: The project: a major transaction between Worldline and Equens
The project: a major transaction between Worldline and Equens, structured in two components Contemplated acquisition of Equens’ commercial Contemplated merger of financial processing activities acquiring activities in cash • A new “Equens Worldline Company” • Acquisition of 100% of PaySquare (fully
Slide 21: Transaction structure
Transaction structure Equens Worldline Company shareholding 21 | November 3rd, 2015
Slide 22: Equens Group overview
Equens Group overview (2015 unaudited pro forma figures) c. € 75m gross revenue c. € 266m Excl. PaySquare Commercial Acquiring Revenue** subsidiary of c. c. € 305m revenue* € 39m net revenue c. € 31m OMDA** c. € 37m OMDA** c. € 6m OMDA 6 countries 5 countries 4 c. 1,300 employees countries c. 1,200
Slide 23: Creating a unique pan-European platform with a diversified revenue base
Creating a unique pan-European platform with a diversified revenue base • C.100 million of cards under management c. 8,600 > € 1.5 bn Experts 2015e • c. 10 billion SEPA worldwide revenue payment transactions processed annually • 6 billion ATM and POS transactions processed • c.250,000 merchants serv
Slide 24: Building an industrial pan-European champion in payment services
Building an industrial pan-European champion in payment services Payment service providers ranking in European Union 2014 European turnover, in € million Industrial leader in 5 major European countries Worldline** & Equens Worldline** NETS WorldPay (Net) Large economies of scale First Data and very
Slide 25: Low execution risk and high visibility
Low execution risk and high visibility Additional c. € 1 billion • Commitment to renew commercial contracts with Equens shareholders for backlog over the next a 5-year period at closing 5 years • Michael Steinbach, current Equens CEO, will lead the new Equens Worldline Onboarding of a strong Company
Slide 26: A compelling deal rationale
A compelling deal rationale Contemplated merger Contemplated acquisition of financial processing activities of Equens’ commercial acquiring activities By 2018, generate synergies from cost optimization in infrastructure, procurement, rent & lease, other operational topics, G&A as well as revenue s
Slide 27: Business benefits & industrial ambition
ee e e e e e e ee © ©8 08 08 C86 eee e8 ee e e@ eee ee eeee ee ee ee ee e@ ee @ e000 002 060 @ © OO e eo @ e8 &@ 60 ee e@ee8et @ @ ee ee @ ee eee ee ©e 200 8200 © ©8060 8800800 0800 800 0200 © © @8 C880 CO e ee COC8COCCe 080008 © © 08 © C8 © CO C0888 888 80 COOOOCH OCH SOOOS © OC SCHOSHOH SOKOHS SEO
Slide 28: Overview of Equens' financial processing activities
Overview of Equens’ financial processing activities 2015e Revenue* Business description** Major Clients Transaction benefits for Worldline Full service portfolio: Cards • Volumes x2 € 139m • Acquiring Gain of critical scale services processing • Issuing processing • Bank-specific • Brings Automate
Slide 29: Equens Worldline Company: A major industrial combination (1/2)
Equens Worldline Company: A major industrial combination in Financial Processing (1/2) 2016e revenue: c. € 700 million c. 3,000 payment experts, of which: 30% in Germany, 26% in France, 23% in the Netherlands, 12% in Belgium, 8% in Italy, 1% in rest of the world Leading positions in the Netherlands,
Slide 30: Equens Worldline Company: A major industrial combination (2/2)
Equens Worldline Company A major industrial combination in Financial Processing (2/2) A strong management team led by Equens current CEO Michael Steinbach • TOP 5 managers already identified • COO / Deputy CEO and CFO appointed by Worldline A large potential of synergies in infrastructure, applicati
Slide 31: Overview of Equens' Merchant Acquiring activities
Overview of Equens’ Merchant Acquiring activities 2015e Revenue* Business description Key markets Transaction benefits for Worldline • Processes a total of 276 million • +25% revenue increase debit and credit Total of in Commercial Acquiring card transactions 120,000 Merchant customers • Reinforced
Slide 32: A combination of assets and expertise to generate synergies
A combination of assets and expertise to generate synergies • Leadership in card • Considerable processing processing leveraging WIPE scale with significant Cost Synergies in: platform and proprietary number of transactions Infrastructure, rent, software procurement, • Experienced in delivering • A
Slide 33: Synergy plan (1/2): Strong and secured short term benefits
Synergy plan (1/2): Strong and secured short term benefits Impact of cost and revenue synergies on 2018e OMDA • c. € 40 million OMDA savings expected from 2018, c. 50% of which as soon as in 2017 • Synergy implementation costs estimated at c. € 40 million from 2016 to 2018 Based on a joint plan for
Slide 34: Synergy plan (2/2)
Synergy plan (2/2): Additional cost saving opportunities through a 5 year application platforms convergence roadmap Application platform convergence program targeting the progressive replacement of many applications by Worldline IP-owned solutions, to be phased with client migration decision Build o
Slide 35: Transaction structure & value creation
e ee ee ee e e e e@ ee ee ee e ee © ©8 08 08 C86 eee e8 ee e e@ eee ee eeee eo ee ee ee e@ ee @ e000 002 060 @ © OO e eo @ e8 &@ 60 ee e@ee8et @ @ ee ee @ ee eee ee ©e 200 8200 © ©8060 8800800 0800 800 0200 © © @8 C880 CO e ee COC8COCCe 080008 © © 08 © C8 © CO C0888 888 80 COOOOCH OCH SOOOS © OC SCH
Slide 36: Key transaction terms
Key transaction terms • Equens and Worldline financial processing assets valued at comparable 2016 OMDA multiples with a control premium around 15% Valuation • PaySquare valued at c.12.5 x 2015e OMDA and fully paid with terms available cash for € 72 million • Usual reps & warranties and post-closing
Slide 37: Contemplated timeline
Contemplated timeline Signing & Expected closing Communication 2015 2016 Fourth quarter First quarter Second quarter Legal reorganization of Worldline financial processing Merger completion. Worldline to receive 63.6% of Equens Regulatory (DNB, BNB) and antitrust approvals Worldline Company Informat
Slide 38: New Worldline Group profile
New Worldline Group profile * 2015 unaudited pro forma figure, net of interchange fees and adjusted for renewed contract terms with key Equens shareholders 38 | November 3rd, 2015
Slide 39: Two synergy streams on two different time horizons
Two synergy streams on two different time horizons: By 2018, infrastructure, procurement, rent & lease, other operational topics, G&A and revenue synergies: • A robust optimization plan on infrastructure leading to an annual run-rate target of c. € 40 million in 2018, half of which as soon as 2017 •
Slide 40: Impacts on Revenue, OMDA and EPS
Impacts on Revenue, OMDA and EPS Closing expected in Q2 2016 Impact on revenue • Neutral on FPL short-term growth profile, positive in the medium term growth through revenue synergies • Pro forma 2016 OMDA generation of Equens Worldline Company of around € 120 million, in addition to € 20 million of
Slide 41: Balance sheet impacts
Balance sheet impacts PaySquare acquisition cash out of € 72 million Transaction and reorganization costs of c. € 12 million Liabilities (pensions in particular) in Equens Worldline at closing to be fully funded Transaction structure leading to increased financial flexibility 41 | November 3rd, 2015
Slide 42: Key deal takeaways
ee e e ee © ©8 08 08 C86 eee e8 ee e e@ eee ee eeee e@ee@ @ e808 @ @ ee e@ ee @ e000 002 060 @ © OO e eo @ e8 &@ 60 ee e@ee8et @ @ ee ee @ ee eee ee ©e 200 8200 © ©8060 8800800 0800 800 0200 © © @8 C880 CO e ee COC8COCCe 080008 © © 08 © C8 © CO C0888 888 80 COOOOCH OCH SOOOS © OC SCHOSHOH SOKOHS SEO
Slide 43: A transaction in line with Worldline's strategy stated at the IPO
A transaction in line with Worldline’s strategy stated at the IPO Take Focus on Extend Leveraging advantage of processing geographies Worldline financial the European businesses and portfolio flexibility with consolidation for scale and of merchants transactions trends efficiency in commercial struc
Slide 44: Key deal takeaways
Key deal takeaways Creation of Equens Worldline Company, the largest pan-European financial processor with unique geographical reach and innovation capabilities, targeting 2016 revenue of € 700 million and OMDA of € 120 million Significant step-up for Worldline Commercial Acquiring (+25% revenue inc
Slide 45: Q&A session
© © SCOCCOOSS C8000CS © © 08 © 08 © OS COCSSOOO 00 SCOCOOS OS COLES © SF SHHOHOS SOSHOS SHSOHSHS FSESSE8ESE SOHHSHOHOHOHSOHSHHSSHHHOHSHOHSHHOHSHHHHHHSHOHHHHOHHOHHOOOOOOHOOD Q&A session third quarter 2015 SOOHSOOHSSHOHOHHHHHSHHOHHHHHHHOHHSHOHHHOOHOOHHOOOOHOOOOO®
Slide 46: For more information, please contact
For more information, please contact: David Pierre-Kahn Head of Investor Relations T +3313434 90 66 M+336 28514596 david. [email protected] werldline @@@@@@ anatos company e-payment services