Wirecard Ag · HAM:WDI

Wirecard — Investor Day (May 2016)

60 slides from Wirecard's investor day presentation, May 4, 2016

  1. Slide 1: Capital Markets Day 2016

    Capital Markets Day 2016 Wirecard AG 4 May 2016 © 2016 Wirecard AG 1

  2. Slide 2: Agenda

    Agenda (All presentations followed by Q&A) 1. 10.00 – 10.30 2020 Vision – Markus Braun, CEO 2. 10.30 – 11.15 Strategic product innovations Christian von Hammel-Bonten, EVP Global Product Strategy 3. 11.15 – 12.00 Driving financial inclusion (Indian market strategy) – Ramu Ramasamy, Managing Director

  3. Slide 3: 1. 2020 Vision

    1. 2020 Vision Markus Braun - CEO © 2016 Wirecard AG 3

  4. Slide 4: Wirecard today

    2020 Vision Wirecard today 45.2 EUR bn processed transaction volume worldwide Outstanding track record with continuing growth and strong fundamentals ~ 22,000 merchants Innovation leader with leading internet and mobile payment technology Global M&A strategy adding to organic success Unique value ch

  5. Slide 5: Global mega trends driving Wirecard's growth

    2020 Vision 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 converge

  6. Slide 6: Wirecard's strategy

    2020 Vision 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 6

  7. Slide 7: Convergence between online, mobile and POS

    2020 Vision Convergence between online, mobile and POS Omnichannel commerce needs new technology. In simplest terms, this new paradigm is best described as a unified commerce platform which requires the following: • Real-time, data driven retail is the new imperative Data driven • Next generation PO

  8. Slide 8: Vision 2020: POS to e-POS transformation

    2020 Vision Vision 2020: POS to e-POS transformation Individual Personalised pricing and customer • For omnichannel POS to e-POS discount aproach transformation is fundamental systems Omnichannel - • Payment will be the data carrier Enabling a seamless sales approach/shopping • Centralised omnichann

  9. Slide 9: Status quo Vision 2020: Developed markets

    2020 Vision Extension of value chain: Developed markets (Europe) Market position Extension of value chain Strong positioning in e-commerce • Coverage of full payment value chain Status quo • Value added services banking/ risk management driven Transforming cash into electronic payments • Beginning c

  10. Slide 10: Status quo Vision 2020: Emerging markets

    2020 Vision Extension of value chain: Emerging markets Market position Extension of value chain Strong positioning IP based POS commerce • Processing based business model • Partially non-tx related business Status quo • Aquiring & issuing services mainly through third party relationships Bringing e-

  11. Slide 11: Extending the global IP platform

    2020 Vision Extending the global IP platform – Retail payments illustrative examples Self service payments In-app payments mobility Carrier billing Stored value card Micropayments Adding principal membership card schemes (A&I licences), Adding increasing acquring & issuing Social commerce backend co

  12. Slide 12: Global payment provider

    2020 Vision 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 Vision 2020 • Leading posit

  13. Slide 13: Global payment provider 2020

    2020 Vision Global payment provider 2020 One global technology platform Providing merchants with: One global licencing • Access to global/regional customer base framework • Reduction of risk/increase of conversion • Simplification of processes • Global omni channel strategy • Real time big data Glob

  14. Slide 14: 2020 financial vision

    2020 Vision 2020 financial vision Increasing transaction volume adds scalability > EUR 160 bn > EUR 2.1 bn 30-35% >65% FCF conversion of Transaction volume Revenues EBITDA margin EBITDA © 2016 Wirecard AG 14

  15. Slide 15: 2020 Vision – Q&A

    2020 Vision – Q&A © 2016 Wirecard AG 15

  16. Slide 16: 2. Strategic product innovations

    2. Strategic product innovations - Christian von Hammel-Bonten, EVP Global Product Strategy © 2016 Wirecard AG 16

  17. Slide 17: Omnichannel is the strategic driver

    Strategic product innovations Omnichannel is the strategic driver Data driven Personalisation commerce New payment schemes Empowering New fulfilment shop associate strategies © 2016 Wirecard AG 17

  18. Slide 18: IP-technologies are driving the transition from POS to e-POS

    Strategic product innovations IP-technologies are driving the transition from POS to e-POS Web tracking Couponing Product information Recommendation marketing Personalisation SEO Product Big data AdWords reviews Self-check out • Connected.POS – The cloud for retailers • Mobile payments development p

  19. Slide 19: connected.POS – The cloud for retailers

    Strategic product innovations connected.POS – The cloud for retailers REAL-TIME PLATFORM FOR DATA ANALYSIS AND VALUE ADDED SERVICES FOR THE FUTURE POS Connector Data processing Commerce Merchant app hardware platform platform store Connector 1 2 3 4 Data driven New payment Personalisation commerce s

  20. Slide 20: connected.POS – The cloud for retailers

    Strategic product innovations connected.POS – The cloud for retailers Smart Customer Merchant Alternative Tax refund receipts loyalty analytics payments Data driven New payment Personalisation commerce schemes © 2016 Wirecard AG 20

  21. Slide 21: connected.POS – Alipay acceptance

    Strategic product innovations connected.POS – The cloud for retailers CONNECTED.POS IS ENABLING A SEAMLESS ALIPAY ACCEPTANCE FOR POS MERCHANTS. Data Newdriven payment New payment Personalization commerce schemes schemes © 2016 Wirecard AG 21

  22. Slide 22: Card-linked offers platform

    Strategic product innovations Card-linked offers platform • Wirecard’s innovative card-linked offers platform offers a fully integrated mobile loyalty experience. • Multi-channel capabilities that combine traditional POS, e-commerce and mobile POS into one loyalty solution. • Single tap loyalty full

  23. Slide 23: Mobile payment is the key ingredient for omnichannel success

    Strategic product innovations Mobile payment is the key ingredient for omnichannel success MOBILE PAYMENT DEVELOPMENT PLATFORM “RetailerPay” Card payments Remote payments (e-commerce & in-app) Alternative payments (pay later, financing, ..) Loyalty, couponing, push marketing, ... Beacon technology .

  24. Slide 24: boon.by Wirecard: first fully digitized mobile payment solution with Apple Pay

    Strategic product innovations boon.by Wirecard: The first fully digitized mobile payment solution with Apple Pay © 2016 Wirecard AG 24

  25. Slide 25: Albert – multi-functional payment tablet

    Strategic product innovations Albert – multi-functional payment tablet: the key ingredient for omnichannel success • Innovative mPOS tablet • Supports Chip and PIN, Swipe and Sign and NFC contactless payments • Features bluetooth low energy (BLE) technology, 3G and Wi-Fi • Integrated apps for loyalt

  26. Slide 26: Omniscient customer experience increases customer value

    Strategic product innovations An omniscient customer experience increases the overall customer value Customer value (€) Offline Offline x-channel Online e-payment Cash payment Loyalty payment Path to increase the customer value © 2016 Wirecard AG 26

  27. Slide 27: Strategic product innovations – Q&A

    Strategic product innovations – Q&A © 2016 Wirecard AG 27

  28. Slide 28: 3. Driving financial inclusion (Indian market strategy)

    3. Driving financial inclusion – (Indian market strategy) – Ramu Ramasamy, Managing Director © 2016 Wirecard AG 28

  29. Slide 29: Driving financial inclusion: India market facts

    Driving financial inclusion 1.2b 4th #1 A Second largest population largest economy globally after Global remittance market in the world – and growing the US, the EU and China with strong domestic growth 300b 70% 75% USD in e-commerce by Of Indian e-commerce Of all e-commerce in India 2030, growing

  30. Slide 30: ICASH key facts

    Driving financial inclusion 2005 #1 250k Ramu and Palani establish Domestic non-bank money People transact with our the roots of the Great Indian remittance operator on IMPS payment instruments daily Retail Group >900 >10k $1.5bn Employees in 12 offices E-commerce shops accept In payments processed

  31. Slide 31: Award-winning performance

    Driving financial inclusion  National Payments Excellence Awards 2015  National Payments Excellence Awards 2014  FIPS Awards - Financial Inclusion 2014 Award-winning performance © 2016 Wirecard AG 31

  32. Slide 32: Internet technology and retail-assisted service delivery

    Driving financial inclusion INTERNET RETAIL-ASSISTED INTERNET RETAIL-ASSISTED TECHNOLOGY SERVICE DELIVERY TECHNOLOGY SERVICE DELIVERY innovative and robust partnership with tens of innovative payment and and robust services partnership thousands with tens of small of to retailers payment platform an

  33. Slide 33: Driving financial inclusion

    Driving financial inclusion © 2016 Wirecard AG 33

  34. Slide 34: We turn cash into electronic money

    Driving financial inclusion  Solving the “last-mile problem” for e-commerce in India  Turning micro-entrepreneurs into virtual bank branches  Services include remittance, cash-topup and online payments We turn cash... ...into electronic money  The SmartShop enables retail-assisted e-commerce  I

  35. Slide 35: Contracted retail agents across India

    Driving financial inclusion APP STORE DOMESTIC REMITTANCE 150k Contracted retail agents BANKING CORRESPONDENT across all of India TRAVEL TICKETING RETAIL ORDERS MOBILE TOPUP INSURANCE BILL PAYMENT MAP SHOWS AGENT DISTRIBUTION BY REGION IN Q4/2015 © 2016 Wirecard AG 35

  36. Slide 36: Domestic remittance

    Driving financial inclusion Domestic remittance Recipient receives funds either on bank account or in CLOSED LOOP cash at other agent PLATFORM Consumer visits agent ICASH prepaid platform and hands over cash processes domestic remittance transaction via IMPS © 2016 Wirecard AG 36

  37. Slide 37: Retail-assisted e-commerce

    Driving financial inclusion Retail-assisted e-commerce APP SERVICES PLATFORM Consumer visits agent Agent opens SmartShop to Agent provides ticket and hands over cash order product or service (travel, phone top-up) or requested by consumer purchase confirmation (retail) to consumer © 2016 Wirecard AG

  38. Slide 38: Prepaid wallet top-up

    Driving financial inclusion Prepaid wallet top-up CLOSED LOOP PLATFORM Consumer visits agent Agent electronically Consumer uses and hands over cash reloads ICASHCARD ICASHCARD later for on- or offline purchases © 2016 Wirecard AG 38

  39. Slide 39: Experience the SmartShop

    Driving financial inclusion Experience the SmartShop © 2016 Wirecard AG 39

  40. Slide 40: Driving financial inclusion

    Driving financial inclusion © 2016 Wirecard AG 40

  41. Slide 41: Revenue model

    Driving financial inclusion Revenue model CLIENT AGENT HERMES PARTNER -0.5 2.0 1.0 -2.5 NET RETENTION IN % OF OF ORDER VALUE ORDER FEE SERVICE FEE COMMISSION COMMISSION REVENUES ACCOUNTED FOR BY HERMES / GIT | PERCENTAGES / FIXED AMOUNTS VARY SIGNIFICANTLY BY AGENT, PARTNER, PRODUCT © 2016 Wirecard

  42. Slide 42: Driving financial inclusion: growth and financials

    Driving financial inclusion 64% 3x Increase in registered 69% Increase in gross margin Increase in transaction count in Q1/16 to Q1/15 new ICASH senders in in Q1/16 to Q1/15 Q1/16 to Q1/15 ends in March ends in December ACTUALS ACTUALS FORECAST [in INR mn] FY 13/14 FY 14/15 Growth yoy CY 2015* CY 20

  43. Slide 43: Key Success Drivers

    Driving financial inclusion Key Success Drivers  Scalable multi-channel service delivery platform  Highest agent activity ratio in the industry  Highest operational efficiency  Profitable product- and services-mix  Efficient working capital deployment  Highly efficient and competitively priced

  44. Slide 44: What's next?

    Driving financial inclusion What’s next? ICASH BANK CORPORATE CARD ( FULL LICENSE ) SOLUTIONS BIN LOANS SPONSORSHIP ( NBFC, BANK ) PSP BBPOU PAYMENT PLATFORM by BILL PRESENTMENT WIRECARD LICENSE ICASH ( PPI LICENSE ) MOBILE WALLET by WIRECARD APPSTORE MTSS ( SMARTSHOP ) INTERNATIONAL REMITTANCE LICE

  45. Slide 45: Driving financial inclusion – Q&A

    3. Driving financial inclusion (Indian market strategy) – Q&A © 2016 Wirecard AG 45

  46. Slide 46: 4. Wirecard in Asia Pacific

    4. Wirecard in Asia Pacific – Fook Sun Ng, Managing Director © 2016 Wirecard AG 46

  47. Slide 47: Diversified customer base in Asia Pacific

    Wirecard in Asia Pacific Diversified customer base in Asia Pacific Travel/transportation Retail Digital goods/media Financial services Providing technology solutions for regional banking partners: • Merchant acquiring • Cash management • Internet/mobile banking © 2016 Wirecard AG 47

  48. Slide 48: Portfolio overview

    Wirecard in Asia Pacific Portfolio overview Payment technology Payment service Acquiring and issuing Acquirer and issuer & outsourcing service provider processor provider • Multi-channel payment • ISO/MSP agreements • State-of-the-art issuing • Multi-channel white label processing platform with lead

  49. Slide 49: Management team

    Wirecard in Asia Pacific Management team http://www.cimbthai.com/CIMB/uploads/news/624/9 6_020853_1.jpg © 2016 Wirecard AG 49

  50. Slide 50: Key markets: Singapore (1/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Singapore (1/2) • Population: 5.5 mn, 1.4 million foreigners, high standards of living • Mobile penetration: 153% (~3.3 connected devices each – smartphones most used device) Connected & cosmopolitan • Households with compu

  51. Slide 51: Key markets: Singapore (2/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Singapore (2/2) SINGAPORE © 2016 Wirecard AG 51

  52. Slide 52: Key markets: Indonesia (1/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Indonesia (1/2) • GDP: USD bn 878 • Mobile subscribers: ~285 mn • Banked (of population): 24% Archipelago • Credit, Debit & Prepaid cards: 16m | 99m | 36m • No of ATM: ~ 100,000 • No of POS: ~ 800,000 • No of islands: 18,30

  53. Slide 53: Key markets: Indonesia (2/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Indonesia (2/2) INDONESIA © 2016 Wirecard AG 53

  54. Slide 54: Key markets: Vietnam (1/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Vietnam (1/2) • Population: 94.3 mn • GDP growth: 6.5% • Cards issued: 72.1 mn Population (Domestic & International) • Revenues from Domestic card payments (2014): USD mn 36 mn • No of ATMs: 16,500 units • No of EDCs: 220,0

  55. Slide 55: Key markets: Vietnam (2/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Vietnam (2/2) mPOS solutions with local banking partner VIETNAM © 2016 Wirecard AG 55

  56. Slide 56: Key markets: Malaysia (1/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Malaysia (1/2) • Population: 31 mn • Internet Users: ~5.5% Population • GDP growth: 6.0% (2014) • Mobile penetration: ~140% (47% Malaysians own >1 mobile) • ATMs and POS: 16,500 | 260,000 • Cards per individual: 4.9 (countr

  57. Slide 57: Key markets: Malaysia (2/2)

    Wirecard in Asia Pacific Key markets & innovative market solution highlights Malaysia (2/2) MALAYSIA © 2016 Wirecard AG 57

  58. Slide 58: Wirecard in Asia Pacific – Q&A

    Wirecard in Asia Pacific – Q&A © 2016 Wirecard AG 58

  59. Slide 59: 5. Q&A – Markus Braun, CEO

    5. Q&A – Markus Braun, CEO © 2016 Wirecard AG 59

  60. Slide 60: 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

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