Worldline Sa · EURONEXT:WLN
Worldline Sa — FY2023 Earnings Presentation
42 slides from Worldline Sa's earnings presentation, Feb 28, 2024
Slide 1: FY 2023 Results
FY 2023 Results February 28th, 2024 FY 2023 results – 28-02-2024
Slide 2: Disclaimer
Disclaimer This presentation is an advertisement and is not a prospectus for the purposes of Regulation (EU) 2017/1129, as amended (the “Prospectus Regulation”). The Company refers to its base prospectus dated 30 May 2023 as supplemented by a first supplement dated 29 August 2023 (the “Base Prospect
Slide 3: 2023 highlights
2023 highlights Gilles Grapinet Group CEO FY 2023 results – 28-02-2024
Slide 4: FY 2023 highlights
FY 2023 highlights €4,610m revenues €1,110m adj. EBITDA* €355m free cash-flow +6.0% organic growth 24.1% adj. EBITDA margin (-140 bps) 32.0% of adj. EBITDA Of which 8.9% in Merchant Services Commercial Dynamics Power 24 Strategic partnership with c.55k new merchants in 2023 Detailed design in H2’23
Slide 5: Focus on H2'23
Focus on H2’23 Immediate key actions to address our short-term challenges ACCELERATE OUR TRANSFORMATION Fast deterioration of macroeconomic Power24 as an enabler of our transformation focusing on internal simplification environment driving agility, product maximization, technology and scale leadersh
Slide 6: Power24 – accelerating Worldline's post integration transformation
Power24 – accelerating Worldline’s post integration transformation Product transformation Technology optimization Reinforce product driven organization Strong support to group innovation and agility fueled by automation Organization simplification Sourcing streamlining Leaner structure and greater L
Slide 7: Power24 is leveraging existing and new strategic initiatives
Power24 is leveraging existing and new strategic initiatives Organization Products & Technology Global sourcing • Move to Cloud in full motion • Global competency center • Merchant Services organised o c.40% of accepted transactions in roll-out in India into 2 go-to-market From 650 to 1,300 headcoun
Slide 8: Power24 launched and fully on track
Power24 launched and fully on track Key streams cash costs savings overall impact and phasing Product Strong cash cost control and attrition management in 2023 and c.€60m beginning 2024 securing already c.€80m run-rate impacts transformation c.€200m run-rate cash costs savings in 2025 confirmed Tech
Slide 9: A tighter management drive on execution and transformation
A tighter management drive on execution and transformation Reinforce MS Group Risk MARC-HENRI Functions DESPORTES (Group Deputy CEO) operational performance to report directly & business control Direct management of Merchant to Gilles Grapinet, Services business unit Group CEO Reinforce GILLES GRAPI
Slide 10: Business and Commercial Dynamics
Business and Commercial Dynamics Marc-Henri Desportes Deputy CEO FY 2023 results – 28-02-2024
Slide 11: Merchant termination process fully on-track
Merchant termination process fully on-track Q3’23 Update end February 2024 Taking into account reinforced market and regulatory Maximum impact of c.€130m run rate revenue constraints notably German regulatory audit, fully confirmed implementation of a reinforced risk control framework on the entire
Slide 12: MS 2023 acquiring MSV development
MS 2023 acquiring MSV development Q3’23 publication Beginning 2024 MSV anticipation of volumes up low-single digit slowdown due to Trend observed end-23 macro factored in the continuing to weight on revised guidance volumes development ACQUIRING MSV (€M)* (acquiring instore and online) Q1’23 MSV gro
Slide 13: MS acquiring merchants' base growth as per plan
MS acquiring merchants’ base growth as per plan c.55k new merchants in 2023 reaching 1.4 million end-2023 1.4m Merchants* as of Dec-2023 Unmatched access to the European retail +c.6k/month net adds in average since Dec-2021 and reinforced competitive positioning +55k net merchants in 2023 in line wi
Slide 14: MS commercial dynamic in 2023
MS commercial dynamic in 2023 Fueled by roll-out of Worldline key products as market differentiator Key wins & upsells with large new clients & partners How we win Q4’23 focus “A la carte” acquiring solution Omnichannel (adaptative mix between Worldline and local Instore & eCom acceptance coupled Wo
Slide 15: Recent strategic partnerships to fuel future growth
Recent strategic partnerships to fuel future growth TECHNOLOGY PARTNERSHIPS OTHER PARTNERSHIPS DISTRIBUTION WORLDLINE Leveraging secure, high-performance and low-latency Google Cloud infrastructure Unlock the benefits of the latest developments in mobile payment Tap into Google Cloud’s data analytic
Slide 16: Focus on key products achievements
Focus on key products achievements Successful release of new products supported by solid investments in innovation New in-store experience Innovative acceptance Mobility/Travel Market Tap 2 Pay / softPOS More than 150 partners connected and offering Universal QR code Open Banking Worldline SoftPos s
Slide 17: FS and MeTS commercial dynamic in 2023
FS and MeTS commercial dynamic in 2023 Dynamic fueled by both new contracts and renewals based on key products Financial Services wins and renewals MeTS wins and renewals Contract to handle card issuing and Multiyear contract for the development and Omnichannel cloud contact center operation of a Me
Slide 18: FY 2023 Financial performance
FY 2023 Financial performance Grégory Lambertie Group CFO FY 2023 results – 28-02-2024
Slide 19: Finance: key strategic actions in 2023
Finance: key strategic actions in 2023 Active debt & liquidity Power24 reporting management framework Finance: Key 2023 strategic actions Repayment of short-term bond Tight financial monitoring debt maturities while extending our Operating leverage debt maturity via new refinancing and FCF focus Net
Slide 20: FY 2023 key financial highlights
FY 2023 key financial highlights €4,610m revenues €1,110m adj. EBITDA €355m free cash-flow +6.0% organic growth 24.1% adj. EBITDA margin (-140 bps) 32.0% of adj. EBITDA +3.9% organic on NNR 29.4% margin on NNR (-110 bps) €521m net income €1.85 diluted EPS* Group share normalized* vs. €1.88 in FY’22
Slide 21: FY 2023 financial performance
FY 2023 financial performance Global business lines revenue overview Q4 2023 Group Revenue Organic growth Organic growth (in €m) Q4 2023 Q4 2022* (Published Revenue) (NNR) Merchant services 849 823 +3.1% +2.7% Financial services 248 259 -4.4% -4.2% MeTS 89 89 +0.8% +0.8% Worldline 1,187 1,171 +1.3%
Slide 22: FY 2023 revenue building blocks
FY 2023 revenue building blocks Focus on 2023 dynamics +6.0% organic growth +6.0% organic growth +1.2% +5.3% -3.7% +0.3% €4,610m (Published revenue) +13.1% -0.2% €4,350m Merchant Services up 8.9% with a contrasted performance between a strong H1 and H2 impacted by the change in economic environment
Slide 23: FY 2023 financial performance
FY 2023 financial performance Global business lines Adjusted EBITDA overview FY 2023 Group Adjusted EBITDA FY’23 margin vs. FY’22 margin FY’23 margin vs. FY’22 margin (in €m) FY 2023 FY 2022* (on Published (on Published (on NNR) (on NNR) Revenue) Revenue) Merchant services 847 840 25.5% (200) bps 33
Slide 24: FY 2023 Adjusted EBITDA building blocks
FY 2023 Adjusted EBITDA building blocks Focus on 2023 Stable in absolute value dynamics (140) bps in margin rate €1,110m Adjusted EBITDA stable vs. 2022 +60 (2) +1 +2 (53) (7) +2 (1) €1,110m €1,108m Merchant Services adjusted EBITDA impacted by the contraction occurred in H2 mainly driven by Macro e
Slide 25: Income statement
Income statement In €m FY’23 FY’22 Highlights Adjusted EBITDA (former OMDA) 1,110 1,132 ▪ Operating income mainly impacted by €1,147m goodwill impairment while integration and rationalization costs excluding Integration and rationalization costs (excl. strategic initiatives) (176) (192) strategic pr
Slide 26: Free cash-flow
Free cash-flow In €m FY’23 FY’22 Highlights Adjusted EBITDA 1,110 1,132 Lease obligations (106) (76) ▪ €1,110m contribution on adjusted EBITDA ▪ Capex representing 7.2% of revenue Working capital change (19) 100 vs. 7.4% in 2022, in line with the expected full-year trajectory Capex (333) (325) ▪ Wor
Slide 27: Net debt evolution
Net debt evolution In €m FY’23 FY’22 Highlights ▪ €355m positive impact from free cash-flow (Net debt) / cash as of January 1st (2,202) (3,126) ▪ €60m positive impact from the last cash payment in Free Cash-flow 355 520 January 2023 related to the disposal of TSS in front of acquisitions closed in 2
Slide 28: Key take-aways
Key take-aways Gilles Grapinet Group CEO FY 2023 results – 28-02-2024
Slide 29: Board and management team fully focused on immediate actions
Board and management team fully focused on immediate actions Reinforced Successful Focus Management management ramp-up of growth 2024 on Power24 focus on FCF steering engine initiatives Adapt our operating model Strong priority given of fast in a challenging macro and Preparation of Crédit reduction
Slide 30: FY 2024 guidance
FY 2024 guidance Focus on internal actions in a still adverse macro environment At least 3% At least €1.17bn At least €230m Organic growth (*) Adjusted EBITDA (**) Free Cash-Flow (***) at least 5% implied excl. Merchants’ termination (*) Assuming current unchanged macro environment in our core geogr
Slide 31: Mid-term ambition: a stronger financial profile
Mid-term ambition: a stronger financial profile Built since IPO… … as soon as 2025 Leading positions Mid-term ambition Full benefit in Europe of Power 24 Mid to high-single digit organic growth Scalable platforms and New growth innovative products Continuous adjusted initiatives EBITDA improvement P
Slide 32: Q&A
Q&A FY 2023 results – 28-02-2024
Slide 33: Appendices
Appendices FY 2023 results – 28-02-2024
Slide 34: Merchant Services
Merchant Services 2023 FY highlights €3,325m €847m FY revenues FY Adjusted EBITDA +8.9% organic growth 25.5% Adjusted EBITDA margin FY’23 REVENUE: €3,325M WITH A 8.9% ORGANIC GROWTH FY’23 Adjusted EBITDA: €847M WITH A 25.5% MARGIN Soft quarter impacted by the macro-economic context and the Merchant
Slide 35: Financial Services
Financial Services 2023 FY highlights €944m €275m FY revenues FY Adjusted EBITDA -1.3% organic growth 29.1% Adjusted EBITDA margin FY’23 REVENUE: €944M WITH A -1.3% ORGANIC GROWTH FY’23 Adjusted EBITDA : €275M WITH A 29.1% MARGIN As planned, organic growth declined in Q4 despite a good level Financi
Slide 36: Mobility & e-Transactional Services
Mobility & e-Transactional Services 2023 FY highlights €342m €48m FY revenues FY Adjusted EBITDA +0.1% organic growth 14.1% Adjusted EBITDA margin FY’23 REVENUE: €342M STABLE ORGANIC GROWTH FY’23 Adjusted EBITDA : €48M WITH A 14.1% MARGIN Positive underlying growth mainly led by good volumes in e- M
Slide 37: FY 2023 revenue bridge from published to NNR
FY 2023 revenue bridge from published to NNR 2022 2023 Q1 Q2 H1 Q3 Q4 H2 FY Q1 Q2 H1 Q3 Q4 H2 FY REVENUE PUBLISHED (€m) Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Revenue Merchant Services 673 749 1 421 807 823 1 630 3 052 758 849 1 607 86
Slide 38: FY 2023 Adjusted EBITDA bridge from published to NNR
FY 2023 Adjusted EBITDA bridge from published to NNR 2022 2023 H1 H2 FY H1 H2 FY REVENUE PUBLISHED (€m) Revenue Revenue Revenue Revenue Revenue Revenue Merchant Services 1 421 1 630 3 052 1 607 1 718 3 325 Financial Services 458 498 957 464 480 944 Mobility & e-Transactional Services 171 170 341 171
Slide 39: FY 2023 Adjusted EBITDA to EBITDA; Operating margin to Adjusted EBITDA
FY 2023 Adjusted EBITDA to EBITDA FY 2023 Operating margin to Adjusted EBITDA FY 2023 Adjusted EBITDA to EBITDA FY 2023 Operating margin EBITDA information is equal to the Adjusted EBITDA (former OMDA) to Adjusted EBITDA minus integration and rationalization costs December 31, December 31, (In € mil
Slide 40: FY 2023 Net Income to Normalized Net Income; EPS calculation
FY 2023 Net Income to Normalized Net Income FY 2023 EPS calculation FY 2023 Net Income to Normalized Net Income FY 2023 EPS calculation The normalized net income is defined as net income attributable to The weighted average number of shares amounts to 282,110,764 continued operations excluding unusu
Slide 41: FY 2023 Impairment
FY 2023 Impairment Impairment testing - methodology: • At December 31, 2023, the Fair values were determined based on Discounted Cash Flows (DCF) and were derived from the 4Y Business Plan of the Company, extended for an additional year. • The Business Plan includes the Power24 transformation plan a
Slide 42: Thank you
Laurent Marie Thank you Group Head of Investor Relations [email protected] For more information, please contact: Guillaume Delaunay Investor Relations Officer [email protected] FY 2023 results – 28-02-2024