Worldline Sa · EURONEXT:WLN
Worldline Sa — Investor Day (February 2019)
36 slides from Worldline Sa's investor day presentation, February 2019
Slide 1: Worldline 2019-21 3-year plan
Worldline 2019-21 3-year plan Gilles Grapinet, Chief Executive Officer Marc-Henri Desportes, Deputy CEO Eric Heurtaux, Chief Financial Officer 1
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 r
Slide 3: Disclaimer
Disclaimer Global Business Lines include Merchant Services (in Argentina, Belgium, Brazil, Czech republic, France, Germany, India, Luxembourg, Malaysia, Poland, Spain, Sweden, Switzerland, The Netherlands, United Kingdom, USA), Financial Services (in Belgium, China, Estonia, Finland, France, Germany
Slide 4: Worldline: Empowering the cashless society
WORLDLINE: EMPOWERING THE CASHLESS SOCIETY c. €2.2 bn * c. 11,500 c. 30 ANNUAL REVENUE EMPLOYEES COUNTRIES MERCHANT FINANCIAL MOBILITY SERVICES SERVICES & E-TRANSACTIONAL SERVICES • Commercial • Issuing Processing Acquiring • Acquiring • Trusted Digitization • Omnichannel Processing • eConsumer & Mo
Slide 5: 2018 Results
2018 Results Gilles Grapinet Chief Executive Officer 5
Slide 6: 2018 Highlights: another very solid year with all objectives reached
2018 Highlights: another very solid year with all 2018 financial objectives reached SIX Payment Services Robust 2018 results (1) acquisition & equensWorldline commercial activity synergies Revenue: €1720m Strategic acquisition of SIX • Many new significant +6.2% organic (Q4 at Payment Services (SPS)
Slide 7: Worldline track record since IPO
Worldline track record since IPO Gilles Grapinet Chief Executive Officer 7
Slide 8: Powerful transformation of Worldline's financial profile since IPO
Powerful transformation of Worldline’s financial profile since IPO thanks to the combination of organic growth and M&A REVENUE OMDA FREE CASH FLOW EXPANSION (€ m) (€ m) 472 (€ bn) 2.2 € 500 m 27,00 207 € 450 m 26,00 € 400 m 25,00 176 1.6 335 € 350 m 24,00 140 1.3 € 300 m 258 23,00 129 1.1 1.2 235 11
Slide 9: A bank-friendly strategy at the heart of a successful M&A track record
A bank-friendly strategy at the heart of a successful M&A track record Reinforced coverage of the full payment value chain MERCHANT SERVICES FINANCIAL SERVICES GLOBAL REACH PORTFOLIO Baltics INDUSTRIAL SCALE EXPERTISE 9
Slide 10: Worldline today: the pan-European payment champion
Worldline today: the pan-European payment champion, with a unique industrial scale and reach PSP ranking in the EU Market leader positions in the DACH region, (European revenue in €m) in Benelux, in France and in the Baltics + #1 10% Market Share in Commercial Acquiring (1) #1 20% Market Share in Fi
Slide 11: Worldline 2019-2021 3 year Plan
Worldline 2019-2021 3 year Plan Gilles Grapinet Chief Executive Officer 11
Slide 12: Our addressable market is structurally growing and highly resilient
Our addressable market is structurally growing and highly resilient thanks to regulation, societal macro trends and technology 2016 +c. 7% CAGR in Europe 2021 108 Bn non cash 151.1 Bn non cash Transactions in Europe (1) Transactions in Europe (1) Growth of digital commerce Regulatory push towards el
Slide 13: European payments consolidation is still in progress
After a first wave of M&A transactions, European payments consolidation is still in progress More than 40 significant transactions over the last 5 years +50% to +100% increase in size of the leading consolidators, increasing massively their competitive advantage versus the other non consolidated pla
Slide 14: Key strategic axis of the 3 year roadmap
Key strategic axis of the 3 year roadmap SCALE & REACH Fully leverage Worldline Pan-European competitive advantage LARGE DEALS Maintain commercial focus on large outsourcing deals and new bank EXPERTISE alliances Grow above market Worldline online and omni-channel payments, FOCUS ON ONLINE leveragin
Slide 15: 2019-21 ambition
2019-21 ambition Previous New 2017-19 2019-21 - 3 year plan - - 3 year plan - After H1 2017 at a slight positive growth REVENUE 7% to 8% CAGR 5% to 7% CAGR over the 2018-2021 period +350bp to +400bp +400 to 500 bp* OMDA margin improvement margin improvement in 2021 in 2019 vs 2016 pro forma of c.18.
Slide 16: 2019 objectives
2019 objectives REVENUE 6% to 8% organic growth OMDA Between 23% and 24%* FREE CASH Between €275 million and €290 million FLOW including synergy implementation costs *: excluding impacts from IFRS16 adoption 16
Slide 17: 2019 Financial ambition
2019 Financial ambition Eric Heurtaux Chief Financial Officer 17
Slide 18: 2018 results perfectly in line with full year guidance
2018 results(1) perfectly in line with full year guidance Acceleration as planned during the second semester €1,720m €391m €207m +6.2% organic 22.7%, +100bp +18% vs 2017 REVENUE OMDA FREE CASH FLOW Acceleration in H2 as planned +160bp improvement Strong cash generation Q4 2018 at +7.0% in H2 2018 Vs
Slide 19: 2018 results perfectly in line with full year guidance
2018 results(1) perfectly in line with full year guidance Acceleration as planned during the second semester Revenue OMDA OMDA % FY 2018 FY 2018 FY 2018 In € million FY 2017* % Growth FY 2017* FY 2017* (1) (1) (1) Merchant Services 624.3 600.3 +4.0% 132.3 124.9 21.2% 20.8% +0.4 pt Financial Services
Slide 20: Worldline + SIX Payment Services 2018 pro forma revenue and OMDA
Worldline + SIX Payment Services 2018 pro forma revenue and OMDA (1) Worldline 2018 Worldline 2018 Pro forma revenue (1) Pro forma OMDA% (1) c. € 550m c.22.7 % c.21% c. € c.17% c. € 2.2 bn 1.7 bn Worldline SPS 2018 pro Worldline 2018 pro standalone 2018 forma revenue (1) forma revenue (1) Worldline
Slide 21: Main 2019-2021 revenue growth drivers
Main 2019 – 2021 revenue growth drivers TRENDS REVENUE • Improved geographical mix • Favorable product mix (more online, less terminals) • Strong trends in commercial acquiring and launch of new • High single digit growth rate generation of payment terminals MS • Top-line synergies with SPS • Strong
Slide 22: Main 2019-2021 OMDA improvement drivers
Main 2019 – 2021 OMDA improvement drivers TRENDS REVENUE • Scale effect • From low twenties in 2018 PF • Expansion in online SPS synergies payments • To high twenties in 2021 TEAM² efficiency program MS • Operating leverage • equensWorldline: • From high twenties in 2018 PF €15m phase2 • To low thir
Slide 23: Free cash flow main assumptions
Free cash flow main assumptions Capex Acquisition costs and synergy implementation costs Between 5% to 6% of revenue Yearly synergy implementation over the period costs in line with incremental OMDA synergy benefit Change in working capital Tax rate Assumption: slight contribution Tax rate based on
Slide 24: Cash and Profitability: the way to continue to grow
Cash and Profitability: the way to continue to grow Mid-term leverage target of 1.5x to 2.5x net debt/OMDA Financing capacity available Additional financing in 2018 capacity over 2019-21 c.€1.4bn c.€1.7bn Worldline 2018 2.5 2.5 (max Immediate 2019-21e FCF net treasury (max leverage) leverage) availa
Slide 25: 2021 Business development ambitions
2021 Business development ambitions Marc-Henri Desportes Deputy CEO 25
Slide 26: Integration and efficiency programs
Integration and efficiency programs Very strong levers for growth and margin improvement New 2019-2021 Tier 1 mindset 7-8% revenue CAGR OMDA%: 2017-2019 +400bp +500bp Enlargement 2014-2016 Launch TODAY (2018 PF(1)) c.6% revenue OG% IPO c.21% OMDA Baltics 3% revenue OG% 18.7% OMDA (1): 2018 results a
Slide 27: A robust and secured synergy plan with SPS
A robust and secured synergy plan with SPS Leveraging Worldline integration know-how and methods c.€110 million OMDA savings confirmed in 2022 Business (c.25% delivered in 2019, c.50% in 2020) transformation Full accountability of synergies Transversal transferred to new line management platforms Ne
Slide 28: Merchant Services
Merchant Services Leverage the size and reach leadership in Europe with product excellence Our story: Creating more value for our Recent disruptive deals Merchants at the Point of Payment • Online payment acceptance solutions for Hotel booking • Reducing the Pain To Pay engines (AvailPro, HotelsPro.
Slide 29: Financial Services
Financial Services Established processing leadership set to fully deliver its scale benefits Our story Recent disruptive deals • Business Process Outsourcing and Instant payments Enabling digital Industrializing Key digital solutions front-end services Payment processing • Issuing for neo-banks Key
Slide 30: Mobility & e-Transactional Services
Mobility & e-Transactional Services Bringing payment and regulation expertise to new adjacent markets Recent disruptive deals Our story • Ile-de-France Mobilités: Paris region new central smart ticketing system “Smart Navigo” • Transport is the next Merchant Market with the introduction of card paym
Slide 31: Sustainability at the core of Worldline business model
Sustainability at the core of Worldline business model Automation, robotization and platform convergence TRUST 2020 TRUST 2020 • KPI based Building clients’ trust • Best practice benchmarks Consumer focus with secured platforms • External independent assessment Sustainable & innovative solutions Peo
Slide 32: Conclusion
Conclusion Gilles Grapinet Atos SEVP & Worldline CEO 32
Slide 33: Adapting Worldline to become stand-alone
Adapting Worldline to become stand-alone Adapting the corporate Launching social information and governance consultation processes Majority of independent board Immediate launch of appropriate members processes with relevant employee Reduction from 5 to 3 of Atos representative bodies appointe
Slide 34: Taking advantage of the projected stand-alone status
Taking advantage of the projected stand-alone status 3 new strategic levers for a rejuvenated M&A potential Renewed ability to welcome new Proposed banking communities in Worldline distribution by Atos of 23.4% through further capital increase of Worldline’s shares Standalone computation of Worl
Slide 35: M&A and European consolidation will be more than ever a priority focus
M&A and European consolidation will be more than ever a priority focus Largest EU Bank-friendly Rejuvenated countries still strategy strategic to & flexibility to participate in recognized adapt to each Payment track-record specific industry situation Consolidation of value-creative and optimized M&
Slide 36: Thank you
Thank you