Worldline Sa · EURONEXT:WLN
Worldline Sa — Q3 2023 Earnings Presentation
26 slides from Worldline Sa's earnings presentation, Oct 25, 2023
Slide 1: Q3 2023 Revenue
Q3 2023 Revenue October 25th, 2023 Q3 2023 revenue – 25-10-2023
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: Q3'23 Highlights
Q3’23 Highlights Gilles Grapinet Group CEO Q3 2023 revenue – 25-10-2023
Slide 4: Opening remarks
Opening remarks A much tougher macro context in H2’23 and temporary challenges External macro factors Worldline temporary challenges Termination of some of specific Economic slowdown in some Shifts in consumer behavior merchants’ relationships on our revised Low conversion of FS of our core geograph
Slide 5: Q3'23 Financial performance
Q3’23 Financial performance Gregory Lambertie Group CFO Q3 2023 revenue – 25-10-2023
Slide 6: 9M 2023 revenue building blocks
9M 2023 revenue building blocks Quarterly revenue development Q3’23 Revenue Group +4.8% organic growth 9M 2023 (€1,182m revenue) +7.7% organic +7.6% -2.9% -0.2% +13.5% +0.2% -0.3% €3,424m MS FS MTS +12.6% +2.3% +0.0% -7 0 +1 0 +61 +7.6% OG -2.9% OG -0.2% OG €3,178m +5 0 +101 (€868m rev.) (€232m rev.
Slide 7: Q3'23 key highlights and lowlights
Q3’23 key highlights and lowlights Key highlights Key lowlights Good overall performance on the mass-market segment Merchant in almost all geographies Economic slowdown in some of our core countries Services driving shift in consumer behavior from discretionary to non-discretionary spendings impacti
Slide 8: Updated guidance
2023 Updated guidance Gregory Lambertie Group CFO Q3 2023 revenue – 25-10-2023
Slide 9: 2023 revised guidance
2023 revised guidance FORMER GUIDANCE REVISED GUIDANCE Revenue 8% to 10% organic growth 6% to 7% organic growth Stable OMDA in absolute terms OMDA vs. FY’22* (or margin decrease of c.150 bps vs FY’22*) FCF 30% to 35% OMDA conversion * FY’22 OMDA PF Q3 2023 revenue | 25-10-2023 | © Worldline | 9
Slide 10: Revenue building-blocks from former guidance to new guidance
Revenue building-blocks from former guidance to new guidance New guidance: 6-7% organic growth Former revenue guidance New revenue guidance +8-10% c.€4.75bn +8-10% c.€40m c.€30m c.€25m c.€10m c.€4.64bn +9.3% +9.3% 8-10% 6-7% growth growth €4.3bn €4.3bn 2022 H1’23 H2’23 expected 2023 2022 H1’23 H2’23
Slide 11: OMDA building-blocks from former guidance to new guidance
OMDA building-blocks from former guidance to new guidance New guidance: Stable OMDA in absolute terms vs. FY’22* Former OMDA guidance New OMDA guidance c.+€80m c.€30m c.+€80m c.€1.25bn c.€50m c.+€60m c.€20m c.+€60m c.€20m c.€20m €1.11bn c.€5m c.€1.11bn €1.11bn 25.4% c.26.4% 25.4% c.23.9% +100 bps (1
Slide 12: FCF building-blocks from former guidance to new guidance
FCF building-blocks from former guidance to new guidance New guidance: 30% to 35% OMDA conversion to FCF c.€580m c.€145m €50m - €90m €340m - €380m 46-48% 30-35% Conv. Conv. 2023 Impact of new OMDA 2023 Other 2023 FCF initial guidance impacts New FCF guidance guidance • Free cash-flow mainly impacted
Slide 13: Global action plan & MS dynamics
Global action plan & MS dynamics Marc-Henri Desportes Group Deputy CEO Q3 2023 revenue – 25-10-2023
Slide 14: Decision to tighten Worldline Merchant Services risk appetite policy
Decision to tighten Worldline Merchant Services risk appetite policy Overall context and actions decided by the Group CONTEXT ACTIONS General cybercrime increase and Undertaking of a group wide newly emerging fraudulent patterns portfolio review Constant reinforcement Decision to tighten Worldline o
Slide 15: Planned launch of the Power24 accelerated transformation ambition
Planned launch of the Power24 accelerated transformation ambition Accelerating our transformation efforts to secure our financial trajectory and support stronger future business growth c.€200m run-rate cash costs savings in 2025 c.€65m c.€45m c.€30m c.€200m c.€60m Product transformation Technology O
Slide 16: Q3'23 MS commercial activity
Q3’23 MS commercial activity Ongoing instore and online dynamics in merchants wins and upsells Wins with large new clients and partners Upsells with existing clients and new activity booster Omnichannel Partnership leveraging Worldline's acquiring Instore Partnership with solution through payment te
Slide 17: Acquiring MSV growth in Q3 2023
Acquiring MSV growth in Q3 2023 Normalization of second-quarter trends confirmed MSV growth in Q3’23 ACQUIRING MSV (€M) (acquiring instore and online) Worldline own acquiring MSV Q3’23 €130bn c.+7% vs 2022 Transaction volumes supported by both instore and online Instore MSV c.+6% vs 2022 Online MSV
Slide 18: Q3'23 Key Take-aways
Q3’23 Key Take-aways Gilles Grapinet Group CEO Q3 2023 revenue – 25-10-2023
Slide 19: Key take-aways
Key take-aways Macroeconomic environment ACKNOWLEDGE has changed Planned launch of Power24 ACT accelerated transformation ambition Management focused on cost base during 2024 securing minimum €100m OMDA improvement Q3 2023 revenue | 25-10-2023 | © Worldline | 19
Slide 20: Key take-aways
Key take-aways Solid and unchanged MS fundamentals as key pillars of Worldline Favorable European Well diversified footprint payment market and distribution power Constantly improving value Very large portfolio proposition and many strategic of mass-market growth projects like our JV and enterprise
Slide 21: Q&A
Q&A Q3 2023 revenue – 25-10-2023
Slide 22: Appendices
Appendicies Q3 2023 revenue – 25-10-2023
Slide 23: Q3 2023 and 9M 2023 revenue performance
Q3 2023 and 9M 2023 revenue performance Global business lines overview Q3 2023 Group Revenue Q3 2023 Group Revenue / GBL (in €m) Q3 2023 Q3 2022* Organic Growth 7% Merchant services 868 807 +7.6% 20% Financial services 232 239 -2.9% €1,182m MeTS 81 81 -0.2% 73% Worldline 1,182 1,128 +4.8% * At const
Slide 24: Merchant Services €868m revenues
Merchant Services Q3 2023 highlights €868m revenues +7.6% organic growth Good performance based on c.7% growth in transaction volumes, with macroeconomic slowdown impacting consumer spendings patterns in particular in Germany and by the implementation of our revised risk appetite framework Commerc
Slide 25: Financial Services and Mobility & e-Transactional Services
Financial Services and Mobility & e-Transactional Services Q3 2023 highlights Q3 performance contrasted by the delays in pipeline execution in the Issuing business Card-based payment processing & acquiring: Contraction in growth driven by lack and delays of new Financial signings in most of the ge
Slide 26: Thank you
Thank you Laurent Marie Group Head of Investor Relations [email protected] For more information, please contact: Guillaume Delaunay Investor Relations Officer [email protected] Q3 2023 revenue – 25-10-2023