Worldline Sa · EURONEXT:WLN
Worldline Sa — H1 2018 Earnings Presentation
27 slides from Worldline Sa's earnings presentation, 2018
Slide 1: Worldline H1 2018 Results
| Worldline H1 2018 Results| © Worldline
Slide 2: Disclaimer
Disclaimer ● This document contains 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-looking statements. These
Slide 3: First Half 2018
FIRST HALF 2018 Gilles Grapinet CEO Worldline
Slide 4: Very good start of the year
VERY GOOD START OF THE YEAR H1 2018 results Major new financial Extremely strong Closing process perfectly in line processing contract: commercial activity: of SIX Payment with the full year Commerzbank Services on track target • Many other large Scope: outsourcing Completion • All non-card SEPA; op
Slide 5: A very good set of results in H1 2018
A VERY GOOD SET OF RESULTS IN H1 2018 Key highlights €818.6m €179.4m +5.8% organic 21.9% +120bp REVENUE OMDA €102.6m €73.3m €57.2m +16.5% +20.4% vs H1 2017 +12.6% vs H1 2017 vs H1 2017 FREE CASH NET INCOME NET INCOME FLOW GROUP SHARE 5 | Worldline H1 2018 Results| © Worldline
Slide 6: Major new organic development with Commerzbank
Major new organic development with a very large partnership and processing contract signed with Commerzbank Onboarding and • 10 year contract (from Other features: transition of migration date) Commerzbank’s: • Outsourcing of the • All SEPA transactions bank’s financial • Account-to-account • Instan
Slide 7: Planned acquisition of SIX Payment Services
PLANNED ACQUISITION OF SIX PAYMENT SERVICES Reminder of the key features of the strategic Closing of the transaction on track partnership signed on May 15, 2018: for a completion by the end of the year: • Worldline to acquire SIX Payment Services (SPS), one of • Filing progress already ~50% complete
Slide 8: First Half 2018
FIRST HALF 2018 Eric Heurtaux CFO Worldline
Slide 9: Constant scope and exchange rate figures reconciliation
Constant scope and exchange rate figures reconciliation Revenue & OMDA Exchange Scope In € million H1 2017 IFRS 15 rates H1 2017* effects effects Revenue 778.1 -17.6 +26.7 -13.1 774.1 OMDA 153.5 0 +9.8 -3.3 160.0 OMDA % 19.7% 20.7% * At constant scope and June 2018 YTD average exchange rates, and re
Slide 10: H1 2018 Financial performance overview
H1 2018 Financial performance overview Revenue OMDA OMDA % % Organic In € million H1 2018 H1 2017* H1 2018 H1 2017* H1 2018 H1 2017* Var. Growth Merchant Services 287.4 275.4 +4.4% 61.9 57.5 21.5% 20.9% +0.7 pt Financial Services 371.7 346.4 +7.3% 109.5 92.4 29.4% 26.7% +2.8 pt Mobility & e-Transact
Slide 11: Merchant Services
MERCHANT SERVICES Merchant Services % Organic In € million H1 2018 H1 2017* Growth Revenue 287.4 275.4 +4.4% OMDA 61.9 57.5 % OMDA 21.5% 20.9% +0.7 pt * At constant scope and June 2018 YTD average exchange rates, and restated from IFRS 15 REVENUE: OMDA: • Strong momentum in Merchant Payment Services
Slide 12: Financial Services
FINANCIAL SERVICES Financial Services % Organic In € million H1 2018 H1 2017* Growth Revenue 371.7 346.4 +7.3% OMDA 109.5 92.4 % OMDA 29.4% 26.7% +2.8 pt * At constant scope and June 2018 YTD average exchange rates, and restated from IFRS 15 REVENUE: OMDA: Growth in all 4 business lines, fueled by h
Slide 13: Mobility & e-Transactional Services
MOBILITY & E-TRANSACTIONAL SERVICES Mobility & e-Transactional Services % Organic In € million H1 2018 H1 2017* Growth Revenue 159.5 152.3 +4.7% OMDA 16.4 21.4 % OMDA 10.3% 14.0% -3.8 pt * At constant scope and June 2018 YTD average exchange rates, and restated from IFRS 15 REVENUE: OMDA: • Double d
Slide 14: Income Statement
Income Statement Key Observations • Staff reorganization, integration & 6 months 6 months associated costs corresponded mainly ended ended to the restructuring costs induced by (In € million) the recent acquisitions. 30 June 30 June 2018 2017 • Integration and acquisition costs: OMDA 179.4 153.5 Equ
Slide 15: Cash flow statement
Cash flow statement 6 months ended 6 months ended Key Observations (In € million) 30 June 30 June 2018 2017 • Free cash flow increased by Operating Margin before Depreciation and Amortization (OMDA) 179.4 153.5 +16.6% in H1 2018 (FCF/OMDA Capital expenditures (45.8) (50.6) conversion of 57.2%) Chang
Slide 16: Summarized balance sheet
Summarized balance sheet Simplified balance sheet As at As at June (In € million) 30, 2018 December Key Observations 31, 2017 Goodwill 928.3 933.8 Intangible assets 342.4 352.6 • Change in goodwill mostly due to Tangible assets 122.4 129.2 exchange rate fluctuations Non-current financial assets 37.4
Slide 17: First Half 2018
FIRST HALF 2018 Marc-Henri Desportes General Manager Worldline
Slide 18: Observations on latest business trends
OBSERVATIONS ON LATEST BUSINESS TRENDS Good Fast growth Strong increase Confirmed acquiring of alternative in mobile success transaction payment payment of payment volume methods such as platforms with a security offers in Europe and SEPA transactions: doubling of e-Wallet such as Trusted the rest o
Slide 19: Observations on latest business trends
OBSERVATIONS ON LATEST BUSINESS TRENDS Acceleration Confirmed Continued Confirmed of the market appetite market interest momentum regulatory for Instant for Open Payment of fintechs with & compliance Payment technologies in e- a lot of interest pressure solutions Ticketing in our upcoming on banks f
Slide 20: Focus on Merchant Services
FOCUS ON MERCHANT SERVICES Key Q2 2018 signings Major achievements ● New contract signed with AvailPro, based on ● First go-live of the VALINA unattended an end-to-end solution in e-Commerce, relying payment terminal. on Worldline Online Payment Acceptance solution. ● Strong post-acquisition commerc
Slide 21: Focus on Financial Services
FOCUS ON FINANCIAL SERVICES Key Q2 2018 signatures Major achievements ● New large contract: Commerzbank and ● Based on the now very visible leadership of equensWorldline form a strategic partnership equensWorldline on its market, record for Payments Processing. high level of order entry and pipeline
Slide 22: Focus on Mobility & e-Transactional Services
FOCUS ON MOBILITY & E-TRANSACTIONAL SERVICES Key Q2 2018 signings Major achievements ● After the success of Open Payment with Keolis ● Very strong order entry recognized in H1 in Dijon, Worldline Tap2Use e-Ticketing 2018. solution sold to: – the French “Grand Est” Region for a ● Robust commercial ac
Slide 23: First Half 2018
FIRST HALF 2018 Gilles Grapinet CEO Worldline
Slide 24: H1 2018 Key Takeaways
H1 2018 KEY TAKEAWAYS Very successful commercial Circa 2 years after its Transaction with SIX developments in Financial completion, the merger with expected to procure similar Services: Equens fully demonstrates benefits: the scale benefits: • Commercial acquiring • Signing the partnership • Strateg
Slide 25: All 2018 objectives confirmed
ALL 2018 OBJECTIVES CONFIRMED REMINDER 2019 AMBITION Between 5% and 7% 6% to 8% REVENUE organic growth for the full year for 2019 Above 23% OMDA Between 22% and 23% in 2019 FREE CASH Between €200 million €230 million and €210 million (1) to €245 million FLOW (1): including c.€20 million of synergy i
Slide 26: Q&A
Q&A | Worldline H1 2018 Results| © Worldline
Slide 27: | Worldline H1 2018 Results| © Worldline
| Worldline H1 2018 Results| © Worldline