Wirecard Ag · HAM:WDI
Wirecard — H1 2019 Earnings Presentation
27 slides from Wirecard's earnings presentation, Aug 7, 2019
Slide 1: Investor Presentation H1 2019 results
Investor Presentation H1 2019 results, 7 August 2019
Slide 2: Highlights
Highlights € 77.3 bn Transaction volume H1 2019 Wirecard is one of the fastest growing financial commerce platforms that offers merchants and consumers a continuously 301 k expanding payment access Merchants system over an integrated B2B2C approach. © Wirecard 2019 2
Slide 3: Global Megatrends Driving Wirecard's Strategy
Global Megatrends Driving Wirecard’s Strategy 6 Global payment megatrends… …driving our strategy Cashless World Internet Financial Inclusion 1 Globalization of own footprint, customers and the shift from cash to Technology & IOT Increasing demand services plastic and virtual taking over new areas an
Slide 4: Financial Platform
Financial Platform Call center Transaction/ Analytics / Mobile banking RFM analysis Artificial intelligence Risk Value-added management Value-added services in services to digital banking Credit increase topline White label/ White label/ Co-branding Co-branding Big data Peer-to-peer/B2B Loyalty/Coup
Slide 5: Key Figures
Key Figures Transaction Volume Revenues EBITDA in EUR billion in EUR million in EUR million 37.5% 36.7% 35.8% 77.3 1,209.8 342.1 yoy yoy yoy 56.2 885.2 252.0 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Operating Cash Flow Free Cash Flow (adjusted) in EUR million in EUR million 284.0 48.5% 239.6
Slide 6: Organic and M&A Related Growth
Organic and M&A Related Growth Transaction Volume Revenue EBITDA in EUR billion in EUR million in EUR million 18.5 0.8 2.6 32.9% 34.6% 35.4% organic 1,191.3 341.3 organic 74.7 organic 56.2 885.2 252.0 M&A Organic H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 Total transaction volume is up EUR 21
Slide 7: Merchant View
Merchant View Transaction volume1 by geographies2 and industry H1 2019 Transaction volume by geographies Transaction volume industry allocation Digital goods 36.4% up EUR 9.4 bn € 36.0 bn EUROPE 50.4% yoy growth € € 41.3 bn OUTSIDE EUROPE Consumer goods 47.1% Travel & mobility up EUR 9.3 bn 16.6% 34
Slide 8: Customer Gains and Partnerships
Customer Gains and Partnerships Examples of customer gains, business extensions and new partners NEW SIGNINGS with a potential transaction volume of (in EUR bn) 15.3% yoy 34.6 30.0 8 H1 2018 H1 2019 © Wirecard 2019 8
Slide 9: Product Innovations
Product Innovations B2C: Boon Planet B2B: Next Generation Financial Commerce Platform Complete banking and payment ecosystem Online business account with payment acceptance for merchants Digital credit card and bank account via a single app Instant payout Pilot stage entered, complete launch i
Slide 10: Product Innovations
Product Innovations Smart Mirror The Wirecard Smart Mirror uses RFID technology and a touch screen integrated in the mirror to improve the shopping experience of customers at retail stores. Key feature: easy checkout with own device and getting access to a wide range of information directly through
Slide 11: Overview: Value Added Services Digital Lending
Overview: Value Added Services Digital Lending Different Lending Products Fintech Loan Digital Credit Merchant Cash Advance Support Fintechs with liquidity Access to liquidity for Early settlement to the for their own products merchants merchant to improve liquidity Description Offered as se
Slide 12: Outlook
Outlook © Wirecard 2019 12
Slide 13: Generating New Business Models
Generating New Business Models… … by combining digital acquiring, issuing and financial services Integrated payment Customer touchpoints and data streams Customer engagement channels At the cashier Payment instruments Payment acceptance Payment issuance Open- and closed loop acceptance, DCC, tax fre
Slide 14: Data Driven Services
Data Driven Services Wirecard’s omnichannel offering to further increase conversion rates Location Card schemes Cashier Smart terminals E-Commerce M-POS solution In store tablets Alternative payments © Wirecard 2019 14
Slide 15: Market Environment
Market Environment Cashless payments expected to grow by around 14 percent per year up to 20211 Convergence of all sales channels Transition Ongoing from cash to digitalisation electronic payments Real-time payments 1 Capgemini: World Payments Report 2018 © Wirecard 2019 15
Slide 16: Company Guidance
Company Guidance Guidance is based on Increase in cashless payments globally Growth of the global e-commerce market and continuing trend towards digitalisation Increase of processed transaction volume with existing and new clients Economies of scale EBITDA guidance of Contribution from rec
Slide 17: Our Visionary Playing Field
Our Visionary Playing Field 80–85% cash transactions … whereas only … with only 8–10% worldwide … 15–20% of all transactions are of all electronic transactions electronic … being fully digitized. Enormous market potential for Wirecard Transaction volume Revenues EBITDA (margin) FCF conversion Vision
Slide 18: Timeline
Timeline AGM approval 18 June 2019 Softbank partnership announced Signing of contracts and 24 April 2019 issuance of convertible bond September 2019 Completion of authorised capital registration August 2019 © Wirecard 2019 18
Slide 19: Financial Data
Financial Data © Wirecard 2019 19
Slide 20: Governance adjusted structure for sustainable growth in place
Governance adjusted structure for sustainable growth in place Adjustment of global compliance structures Task Force Global enforcement of rules and stronger governance Key Results Led by the Clear allocation of responsibilities and Wirecard Board high transparency High investment in compliance FTE:
Slide 21: Financial Data
Financial Data Financial highlights in EUR million H1 2019 H1 2018 Change Revenues 1,209.8 885.2 36.7% EBITDA 342.1 252.0 35.8% EBIT adjusted* 294.8 219.5 34.3% EBIT 277.1 200.1 38.5% Income tax expenses 30.2 31.1 -2.9% Earnings after taxes 237.5 157.6 50.7% Earnings per share (basic and diluted) in
Slide 22: Financial Data
Financial Data Consolidated income statement in EUR million H1 2019 in % of revenues* H1 2018 in % of revenues* Revenues 1,209.8 885.2 Own work capitalised 22.2 20.7 Cost of materials 652.3 53.9% 474.0 53.6% Gross profit 579.7 47.9% 431.9 48.8% Personnel expenses 140.7 11.6% 112.0 12.7% Other operat
Slide 23: Financial Data
Financial Data Balance sheet Assets in EUR million 30 June 2019 31 Dec 2018 Equity and liabilities in EUR million 30 June 2019 31 Dec 2018 Goodwill 713.5 705.9 Total equity 2,145.1 1,922.7 Customer relationships 438.4 452.1 Non-current interest-bearing liabilities 1,594.6 1,348.7 Internally-generate
Slide 24: Financial Data
Financial Data Net cash bridge H1 2019 (in EUR million) 4,500 1,180 4,000 3,500 -331 3,048 2 3,000 365 2,500 -1,038 2,086 2,000 -775 1,500 1,000 700 500 -1,751 0 Cash and cash Interest bearing Receivables of Current interest Customer Liabilities of Net cash position Non-current Non-current Net cash
Slide 25: Financial Data
Financial Data Cash flow and income tax analysis in EUR million (except where stated) H1 2019 H1 2018 Change Cash flow from operating activities (adjusted)* 284.0 196.2 44.8% Operative capex -44.5 -34.8 27.8% Free cash flow 239.6 161.4 48.5% Earnings after taxes 237.5 157.6 50.7% Cash conversion in
Slide 26: Investor Relations
Investor Relations [email protected] Iris Stöckl Stephanie Malgara VP Corporate Communications/Investor Relations Senior Manager Investor Relations [email protected] [email protected] T: + 49 (0) 89 4424 1788 T: + 49 (0) 89 4424 191348 Susanne Herrle Kristin Kleine Beerink Princip
Slide 27: 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