Worldline Sa · EURONEXT:WLN
Worldline Sa — H1 2017 Earnings Presentation
41 slides from Worldline Sa's earnings presentation, Jul 25, 2017
Slide 1: First half 2017 results
| First half 2017 results | Tuesday, July 25 2017 | © Worldline
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: First half 2017 results
| First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 4: H1 2017 Key facts
H1 2017 Key facts Revenue € 778.1m +1.7% organic Financial Underlying (1) organic growth: +6.1% Normalized net income: OMDA € 153.5m 19.7% of revenue, €71.9m +170bp vs H1 2016 +16.0% vs H1 2016 Free cash flow € 88.0m +25.7% vs H1 2016 Digital River World Payments : Major enhancement of Worldline’s o
Slide 5: Strong H1 performance on yearly guidance
Strong H1 performance on yearly guidance Solid underlying growth performance OMDA margin improving by equensWorldline integration +170bp vs H1 2016 pro forma ahead of plans FCF reaching € 88 million c.7% ahead of mid-year target 5 | First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 6: All 2017 full year objectives raised
All 2017 full year objectives raised Initial guidance Upgraded guidance c.+3.5% organic growth for the Between +3.5% and +4% Revenue full year, with H2 2017 between organic growth for the full +5% to 7% year OMDA Between 20.0% and 20.5% Above 20.5% Between € 160 million and € 170 Above 170 million,
Slide 7: First half 2017 results
| First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 8: Technical reconciliations
Technical reconciliations Presentation of assets and Constant scope and exchange liabilities related to rate figures reconciliation intermediation activities 30 June 31 Dec. H1 2016 H1 2017 (In € million) 2017 2016 (*) Scope Exchange H1 2017 ASSETS In € million H1 2016 rates H1 2016* Var. effects ac
Slide 9: H1 2017 Financial performance overview
H1 2017 Financial performance overview Revenue OMDA OMDA % In € million H1 2017 H1 2016* % Growth H1 2017 H1 2016* H1 2017 H1 2016* Merchant Services 260.8 247.8 +5.2% 53.3 51.8 20.4% 20.9% Financial Services 345.1 326.6 +5.7% 88.9 65.2 25.8% 20.0% Mobility & e-Transactional Services 172.2 190.6 -9.
Slide 10: Merchant Services
Merchant Services Merchant Services In € million H1 2017 H1 2016* % Growth Revenue 260.8 247.8 +5.2% OMDA 53.3 51.8 % OMDA 20.4% 20.9% -50 bp * At constant scope and June 2017 YTD average exchange rates Revenue: +5.2% OMDA: €+1.5m, -50 bp • Confirmation of the strong momentum in India following the
Slide 11: Financial Services
Financial Services Financial Services In € million H1 2017 H1 2016* % Growth Revenue 345.1 326.6 +5.7% OMDA 88.9 65.2 % OMDA 25.8% 20.0% +580 bp * At constant scope and June 2017 YTD average exchange rates Revenue: +5.7% OMDA: €+23.7m, +580 bp • Growth in Issuing and Acquiring Processing supported b
Slide 12: Mobility & e-Transactional Services
Mobility & e-Transactional Services Mobility & e-Transactional Services In € million H1 2017 H1 2016* % Growth Revenue 172.2 190.6 -9.7% OMDA 22.7 29.8 % OMDA 13.2% 15.6% -240 bp * At constant scope and June 2017 YTD average exchange rates Revenue: -9.7% OMDA: -240 bp • Reported growth affected for
Slide 13: Income statement
Income statement Key Observations 6 months 6 months ended ended • Staff reorganization include (In € million) 30 June 30 June mostly restructuring from Equens 2017 2016 and Paysquare. OMDA 153.5 117.2 • Integration & associated costs Operating margin 113.7 91.5 correspond mainly to costs related Sta
Slide 14: Cash flow statement
Cash flow statement 6 months 6 months Key Observations ended ended (In € million) 30 June 30 June 2017 2016 • Free cash flow increased Operating Margin before Depreciation and Amortization (OMDA) 153.5 117.2 by +25.7% in H1 2017 Capital expenditures (50.6) (40.8) Change in working capital requiremen
Slide 15: Simplified balance sheet
Simplified balance sheet (In € million) 30 June 31 Dec. Key Observations 2017 2016 (*) ASSETS Total non-current assets 1,301.1 1,255.4 Trade accounts and notes receivables 290.8 294.9 • Increase in Goodwill and decrease in Assets linked to intermediation activities 148.2 249.6 Intangible assets refl
Slide 16: First half 2017 results
| First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 17: Fast increase in payment volumes
+7%* +110% Number POS and QR of non-card code managed transactions base in India Fast increase 10 million* Wallet c.415,000 in payment transactions POS and volumes on c. X 5 QR codes all platforms deployed in H1 2017 in India in H1 +10%* +14%* Number Number of online of issuing transaction transacti
Slide 18: Q2 2017 commercial activity
Q2 2017 commercial activity Mobility & Merchant Services Financial Services e-Transactional Services Key achievements Key achievements Key achievements And business update And business update And business update • Renewal of several strategic long- • Provision of digital retail kiosks to term contra
Slide 19: Integration tracks ahead of plan sustain margin improvement
Integration tracks ahead of plan sustain margin improvement Main H1 highlights Infrastructure and cust. service • Consolidation of project portfolio by closing duplicate projects mainly in Front Office • Network integration and service harmonization ahead of schedule and supporting over-achievement
Slide 20: InTouch investment and Cheque Service Divestment
InTouch investment and Cheque Service Divestment Rebalancing Worldline portfolio towards future growth Company overview Business Position • InTouch is a Fintech based in Senegal and created • Already deployed in more than 170 Total gas in 2014 by Omar Cissé, a local entrepreneur stations, and 600 in
Slide 21: Digital River World Payment as a perfect complement to Worldline online positioning
Digital River World Payment as a perfect complement to Worldline online positioning Company overview • Combining with Worldline’s assets, in particular omnichannel solutions, • DRWP is the online payment arm of Digital River group with DRWP’s deep expertise, global (ecommerce). 120 employees worldwi
Slide 22: First Data Baltics acquisition will grow Worldline's footprint in Northern Europe
First Data Baltics acquisition will grow Worldline’s geographical footprint in Northern Europe Company overview • Grow the Baltic business through • FDB is the leading financial processor in the Baltics the combination of FDB local market • Revenue of c.€ 23 million in 2016 relations with Worldline’
Slide 23: First half 2017 results
| First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 24: 2017 Key take aways
2017 Key take aways Solid H1 2017 numbers, allowing to raise the full year guidance on: • Organic growth • Profitability • Free cash flow Very satisfying integration process in equensWorldline showing the strength of our integration know-how, which will be deployed to fully leverage the benefits of
Slide 25: First half 2017 results
25 | First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 26: 3 year plan
Presentation to Investors 2017-2019 3 year plan
Slide 27: The new Worldline Group
The new Worldline Group 27 | First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 28: Equens transaction: building an industrial Pan-European champion in payment services
Equens transaction: building an industrial Pan-European champion in payment services Payment service providers ranking in European Union Industrial leader in 2015 European turnover, in € million 5 major European countries Worldline* Large economies of scale NETS and very significant First Data World
Slide 29: +41% revenue increase in Merchant Services and Financial Processing from M&A since 2013
+41% revenue increase in Merchant Services and Financial Processing from M&A since 2013 c.€1.5b c.€1.2b €1.1b +c.10% +41% revenue increase in MST: €364m +c.20% MST and FPL from M&A on +c.62% top of organic FPL: €392m +c.10% growth MeTS: €369m Stable 2013 (1) 2016e Standalone 2016e PF 29 (1): 2013 |
Slide 30: Worldline benefits from the strong positive momentum of the European payment market
Worldline benefits from the strong positive momentum of the European payment market Beyond payments, IoT & Data analytics digital platforms IoT/M2M Loyalty Digital Payments Contact Mobile payments Digitization Online Banking ePayment Cashless trends eIdentity Fraud Risk Management services Cards tra
Slide 31: Payment Market continues to experience solid volume growth and outsourcing forces
Payment Market continues to experience solid volume growth and outsourcing forces e-payment trends • Consistent growth in card payments volume in Western Europe as well as in CEE/Asia • Technological pressure and diversification of payment means (e.g. instant payments) • PSD 2 disruption in Europe F
Slide 32: equensWorldline: result of joining forces
equensWorldline : result of joining forces Industry’s largest transaction processing company in Europe • equensWorldline under the leadership of Michael Steinbach (former Equens CEO), leveraging the biggest scale in Europe • Atos and Worldline integration know-how to drive synergies execution • Scal
Slide 33: Worldline: the European partner for merchant services
Worldline: the European partner for merchant services Products International go-to-market • Wider portfolio of products and services • Unmatched capability to serve specific • New enlarged needs of major brands footprint for acquiring in the North/Centre of Operations Europe • Leverage the capabilit
Slide 34: Strong focus in Mobility & e-Transactional Services
Strong focus in Mobility & e-Transactional Services to take advantage of robust market trends Strong momentum of business fundamentals Leverage global in 3 verticals and 1 transversal : footprint to pursue • Manufacturing & Insurance: Connected Living, international roll-out Analytics & Payment of k
Slide 35: Key Strategic Axis 2017-2019
4 Key Strategic Axis 2017-2019 Worldline key strengths Strategic Axis • Largest PSP in Europe Financial Processing Size • Deliver the massive industrial synergies & • Leader in key markets with equensWorldline scope • Take further advantage of our European • Unique pan-European reach leadership in F
Slide 36: 2017-2019 objectives
2017-2019 objectives Revenue Organic After H1 2017 at a slight positive growth, 5% to 7% CAGR Growth +350bp to +400bp margin improvement OMDA % in 2019 vs 2016 (1) Free cash €210m to €230m in 2019, representing over +50% increase flow compared with 2016 objective (1): c.18.5% OMDA margin, 2016 Pro F
Slide 37: A strong M&A ambition over 2017-2019
A strong M&A ambition over 2017- 2019 For illustration: c.€0.5b M&A potential additional contribution, if pursuing same trends than during 2014- c.€1.5b 2016 (i.e. c.+40% of MST and FPL revenue) c.€0.3b €1.1b c.€1.8b c.€1.2b Acquisition ambition Acquisitions completed Organic revenue evolution 2013
Slide 38: Single currency and harmonized regulation drove the US consolidation in payments
Single currency and harmonized regulation drove the US consolidation in payments … 38 | First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 39: The European payment industry consolidation journey is just starting
The European payment industry consolidation journey is just starting… 39 | First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 40: Worldline is one of the very few European recognized natural consolidators
… while Worldline is one of the very few European recognized natural consolidators 40 | First half 2017 results | Tuesday, July 25 2017 | © Worldline
Slide 41: First half 2017 results
| First half 2017 results | Tuesday, July 25 2017 | © Worldline