Worldline Sa · EURONEXT:WLN
Worldline Sa — H1 2018 Earnings Presentation
24 slides from Worldline Sa's earnings presentation, September 2018
Slide 1: Presentation to Investors September 2018
Presentation to Investors September 2018 | Worldline H1 2018 Results| © Worldline
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
Slide 3: Presentation of the Worldline Group (FY 2017)
Presentation of the Worldline Group (FY 2017) 3 | Worldline H1 2018 Results| © Worldline
Slide 4: First Half 2018
FIRST HALF 2018 Gilles Grapinet CEO Worldline
Slide 5: Very good start of the year
VERY GOOD START OF THE YEAR H1 2018 results Major new financial Extremely strong Closing process perfectly in line processing contract: commercial activity: of SIX Payment with the full year Commerzbank Services on track target • Many other large Scope: outsourcing Completion • All non-card SEPA; op
Slide 6: A very good set of results in H1 2018
A VERY GOOD SET OF RESULTS IN H1 2018 Key highlights €818.6m €179.4m +5.8% organic 21.9% +120bp REVENUE OMDA €102.6m €73.3m €57.2m +16.5% +20.4% vs H1 2017 +12.6% vs H1 2017 vs H1 2017 FREE CASH NET INCOME NET INCOME FLOW GROUP SHARE 6 | Worldline H1 2018 Results| © Worldline
Slide 7: H1 2018 Financial performance overview
H1 2018 Financial performance overview Revenue OMDA OMDA % % Organic In € million H1 2018 H1 2017* H1 2018 H1 2017* H1 2018 H1 2017* Var. Growth Merchant Services 287.4 275.4 +4.4% 61.9 57.5 21.5% 20.9% +0.7 pt Financial Services 371.7 346.4 +7.3% 109.5 92.4 29.4% 26.7% +2.8 pt Mobility & e-Transact
Slide 8: Major new organic development with Commerzbank
Major new organic development with a very large partnership and processing contract signed with Commerzbank Onboarding and • 10 year contract (from Other features: transition of migration date) Commerzbank’s: • Outsourcing of the • All SEPA transactions bank’s financial • Account-to-account • Instan
Slide 9: Observations on latest business trends
OBSERVATIONS ON LATEST BUSINESS TRENDS Good Fast growth Strong increase Confirmed acquiring of alternative in mobile success transaction payment payment of payment volume methods such as platforms with a security offers in Europe and SEPA transactions: doubling of e-Wallet such as Trusted the rest o
Slide 10: Observations on latest business trends
OBSERVATIONS ON LATEST BUSINESS TRENDS Acceleration Confirmed Continued Confirmed of the market appetite market interest momentum regulatory for Instant for Open Payment of fintechs with & compliance Payment technologies in e- a lot of interest pressure solutions Ticketing in our upcoming on banks f
Slide 11: | Worldline H1 2018 Results| © Worldline
| Worldline H1 2018 Results| © Worldline 11
Slide 12: SIX Payment Services (SPS)
SIX PAYMENT SERVICES (SPS) one of the largest payment service providers in Europe and the DACH* payment champion MERCHANT SERVICES FINANCIAL SERVICES c. € 530 m 2019e net** revenue c. €430m c. €100m 2019e net** 2019e net revenue c. € 20% OMDA revenue 9 6 Key countries number of staff Key countries c
Slide 13: Planned acquisition of SIX Payment Services
PLANNED ACQUISITION OF SIX PAYMENT SERVICES Reminder of the key features of the strategic Closing of the transaction on track partnership signed on May 15, 2018: for a completion by the end of the year: • Worldline to acquire SIX Payment Services (SPS), one of • Filing progress already ~50% complete
Slide 14: Worldline shareholding structure & governance post transaction
WORLDLINE SHAREHOLDING STRUCTURE & GOVERNANCE POST TRANSACTION • 49.1 million of new shares + € 283 million in cash against SIX Payments Services contribution into Worldline • Worldline Board of Directors enlarged from 9 members to 12 members and 1 censor, of which: • 2 new Board Members and 1 censo
Slide 15: Worldline to acquire SIX Payment Services to create a pan-European payment powerhouse
WORLDLINE TO ACQUIRE SIX PAYMENT SERVICES TO CREATE A PAN-EUROPEAN PAYMENT POWERHOUSE The scope of the transaction covers: 1 • Merchant services (81% of 2019e net revenue): all SPS Merchant Services activities; • Financial Services (19% of 2019e net revenue): all Financial Services activities outsid
Slide 16: A transaction that redefines the European payment industry
A TRANSACTION THAT Worldline + SIX REDEFINES THE EUROPEAN = The Undisputed PAYMENT INDUSTRY Pan-European Leader Independent PSPs Net Revenue in Europe(1) In €m #1 #1 + / 10% 20% / Market Share in Market Share in Commercial Acquiring (3) Financial Processing (4) #3 (2) European (2) (3) e-com. PSP (5)
Slide 17: Unique geographic footprint
UNIQUE GEOGRAPHIC FOOTPRINT With leadership positions in all the key continental European countries Market leader positions in: Leadership position • Austria • Germany Other presence • Baltics • Luxemburg • Belgium • Switzerland • Czech Republic • The Netherlands • France • Perfect geographic match
Slide 18: A uniquely diversified business profile
A UNIQUELY DIVERSIFIED BUSINESS PROFILE with a mix rebalanced towards merchant services = 2019e combined net revenue of c.€2.3bn Emerging Other c.€0.4bn Markets Europe 8% Mobility France 7% & e-Transactional 19% 15% UK 5% > €1.0bn Switzerland Merchant Belux Services 13% 20% c.€0.9bn 46% Financial Ge
Slide 19: A strong and secure synergy plan
A STRONG AND SECURE SYNERGY PLAN c.€ 110 million OMDA savings OMDA in €m in 2022 110 • c.25% delivered in 2019 c.5% 23 • c.50% in 2020 c.15% c.12% Synergy implementation costs c.15% estimated at c.€ 110 million, on top of pre-closing costs of c.25% 87 €15-20 million c.27% Execution secured by ali
Slide 20: Transaction structure preserves firepower
TRANSACTION STRUCTURE PRESERVES FIREPOWER Mid-term leverage target of 1.5x to 2.5x net debt/EBITDA Financing capacity available Additional financing Additional financing at the end of 2018 capacity over 2019 capacity over 2020-21 c.€1.6bn c.€1.2bn c.€0.6bn Dec-17 net Cash out 2.5x 2018e FCF 2.5x OMD
Slide 21: First Half 2018
FIRST HALF 2018 Gilles Grapinet CEO Worldline
Slide 22: H1 2018 key takeaways
H1 2018 KEY TAKEAWAYS Very successful commercial Circa 2 years after its Transaction with SIX developments in Financial completion, the merger with expected to procure similar Services: Equens fully demonstrates benefits: the scale benefits: • Commercial acquiring • Signing the partnership • Strateg
Slide 23: All 2018 objectives confirmed
ALL 2018 OBJECTIVES CONFIRMED REMINDER 2019 AMBITION Between 5% and 7% 6% to 8% REVENUE organic growth for the full year for 2019 Above 23% OMDA Between 22% and 23% in 2019 FREE CASH Between €200 million €230 million and €210 million (1) to €245 million FLOW (1): including c.€20 million of synergy i
Slide 24: | Worldline H1 2018 Results| © Worldline
| Worldline H1 2018 Results| © Worldline