Worldline Sa · EURONEXT:WLN
Worldline Sa — Q3 2020 Earnings Presentation
31 slides from Worldline Sa's earnings presentation, Oct 29, 2020
Slide 1: Q3 2020 Revenue
Q3 2020 REVENUE THURSDAY OCTOBER 29, 2020 © 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 r
Slide 3: Highlights Third Quarter 2020
HIGHLIGHTS THIRD QUARTER 2020 GILLES GRAPINET Chairman & CEO Thursday October 29th, 2020 | Worldline Q3 2020 revenue | © Worldline
Slide 4: Highlights of the Third Quarter of 2020
HIGHLIGHTS OF THE THIRD QUARTER OF 2020 Revenue of the third quarter of 2020 in line with full year objectives: 1 Resilience of Worldline’s diversified business model Revenue organic decline improved to -2.7% Strong recovery vs. Q2 2020 Successful completion of the acquisition of Ingenico: 2
Slide 5: The Undisputed European Leader in Payments
THE UNDISPUTED EUROPEAN LEADER IN PAYMENTS ONE OF THE WORLD'S LEADING PLAYERS #1 #3 MERCHANT EUROPEAN ACQUIRER PROVIDER IN CONTINENTAL OF E- & M- PAYMENT EUROPE SOLUTIONS #1 #4 EUROPEAN GLOBAL PLAYER PAYMENT (in revenue) PROCESSOR € 5.3 bn 20,000+ 50+ c. 1,200 c. 1 m c. 35 m c. 2.5 bn 2019 PROFORMA
Slide 6: Dedicated Global Business Lines for Specialised Solutions
DEDICATED GLOBAL BUSINESS LINES FOR SPECIALISED SOLUTIONS MERCHANT TERMINALS, SOLUTIONS FINANCIAL MOBILITY SERVICES & SERVICES SERVICES & E-TRANSACTIONAL SERVICES ENERGIZING DELIVERING WORLD- ENGINEERING MOST BRINGING PAYMENT COMMERCE WITH CLASS TERMINAL ADVANCED PAYMENT AND REGULATION ADVANCED PAYM
Slide 7: New Governance in Place (1/3)
NEW GOVERNANCE IN PLACE (1/3) Worldline 7 Directors from Worldline Ingenico SIX Group Representing the employees CEO Chairmanship Board of Directors 18 members 3 Directors 5 Directors from Ingenico + 1 censor (including Chairman, DSV and three 1 Director independent directors) 1 BPI representing the
Slide 8: New Governance in Place (2/3)
NEW GOVERNANCE IN PLACE (2/3) Gilles Grapinet Georges Pauget Bernard Bourigeaud* Chairman and CEO Lead Director Aldo Cardoso Chairman of the Gilles Arditti Agnès Audier Audit Committee Lorenz von Habsburg Chairman of the Giulia Fitzpatrick Nomination Committee Mette Kamsvag Danielle Lagarde Luc Rémo
Slide 9: New Governance in Place (3/3)
NEW GOVERNANCE IN PLACE (3/3) Worldline’s new Group Executive Committee Chaired by Mr. Gilles Grapinet, Chief Executive Officer Mr. Marc-Henri Desportes, Deputy Chief Executive Officer GLOBAL BUSINESS LINES (GBL) TECHNOLOGY & OPERATIONS GLOBAL FUNCTIONS Chief Business Divisions Officer COLEMAN Group
Slide 10: Payment Terminal Business Launch of the Strategic Review
PAYMENT TERMINAL BUSINESS LAUNCH OF THE STRATEGIC REVIEW TERMINALS, SOLUTIONS & SERVICES ? STRATEGIC REVIEW CONSIDERATIONS A major activity (c.30%) of the Looking for the most appropriate Group: shareholding structure taking into Starting today account: Significant synergies expected (€35m) Futu
Slide 11: Revenue Third Quarter 2020
REVENUE THIRD QUARTER 2020 ERIC HEURTAUX CFO, Worldline Thursday October 29th, 2020 | Worldline Q3 2020 revenue | © Worldline
Slide 12: Constant Scope and Exchange Rates Figures Reconciliation
CONSTANT SCOPE AND EXCHANGE RATES FIGURES RECONCILIATION Revenue Scope Exchange Q3 2019 Q3 2019* In € million effects** rates effect Merchant Services 283.8 +0.5 -0.5 283.8 Financial Services 225.6 0.0 -0.4 225.1 Mobility & e-Transactional Services 79.9 0.0 -0.1 79.8 Worldline 589.3 +0.5 -1.0 588.8
Slide 13: Q3 2020 Revenue Performance by Global Business Line
Q3 2020 REVENUE PERFORMANCE BY GLOBAL BUSINESS LINE Revenue Organic In € million Q3 2020 Q3 2019* change Merchant Services 270.4 283.8 -4.7% Financial Services 224.1 225.1 -0.4% Mobility & e-Transactional Services 78.2 79.8 -2.0% Worldline 572.7 588.8 -2.7% * at constant scope and exchange rates Mob
Slide 14: Q3 2020 Revenue Performance by Global Business Line
Q3 2020 REVENUE PERFORMANCE BY GLOBAL BUSINESS LINE Merchant -4.7%* Financial -0.4%* Mobility & -2.0%* Services Services e-Transactional Services Steady domestic recovery since Resilient performance confirmed Good performance overall, de-confinement in Q3 contrasted by division Transaction volumes
Slide 15: Quarterly Revenue Organic Evolution Trends by Global Business Line
QUARTERLY REVENUE ORGANIC EVOLUTION TRENDS BY GLOBAL BUSINESS LINE 15% Merchant Services 10% +7.5% Financial Services 5% +2.0% Mobility & e-Transactional Services 0% -2.7% -5% Worldline -10% -15% -13.1% -20% -25% Q4 2019 Q1 2020 Q2 2020 Q3 2020 15 | Thursday October 29th, 2020 | Worldline Q3 2020 re
Slide 16: Re-opened Offer on Ingenico Securities
RE-OPENED OFFER ON INGENICO SECURITIES TIMELINE AND NEXT STEPS 88.6% of Ingenico shares and 99.6% of OCEANEs tendered Result Initial tender offer calculation Settlement Re-opened tender Result Settlement offer calculation 30/07 15/10 20/10 22/10 28/10 04/11 10/11 17/11 TODAY 16 | Thursday October 29
Slide 17: Combined Set of 2020 Objectives (1/2)
COMBINED SET OF 2020 OBJECTIVES (1/2) Q4 2020 UNDERLYING HYPOTHESIS Reminder of initial H2 2020 Expected trends for Q4 taking into assumptions: very gradual lift consideration the recent evolution of the of government constraints COVID-19 situation: General retail re-opening Stronger government
Slide 18: Combined Set of 2020 Objectives (2/2)
COMBINED SET OF 2020 OBJECTIVES (2/2) 2020 OBJECTIVES TAKING INTO ACCOUNT INGENICO CONTRIBUTION ORGANIC REVENUE Flat to low single digit decrease EVOLUTION OMDA Around 25%, circa the same percentage than 2019 FREE CASH FLOW Circa same cash conversion percentage than 2019* FULLY CONSISTENT WITH PREVI
Slide 19: Commercial & Operational Performance Third Quarter 2020
COMMERCIAL & OPERATIONAL PERFORMANCE THIRD QUARTER 2020 MARC-HENRI DESPORTES Deputy CEO Thursday October 29th, 2020 | Worldline Q3 2020 revenue | © Worldline
Slide 20: Q3 Transaction Volumes Evolution
Q3 TRANSACTION VOLUMES EVOLUTION Strong improvement in commercial acquiring transactions compared to Q2 2020 Number of commercial acquiring transactions in Continental Europe: +13% Of which: debit card transactions: +16%; credit card transactions: +3% Of which: in-store transactions +10%; onli
Slide 21: Q3 Commercial Activity
Q3 COMMERCIAL ACTIVITY Roll-out of standardized cash register solution Extension to existing acquiring services to 4 new countries (Poland, Czech Republic, Croatia & Italy) Merchant Services Global In partnership with a UK based payment gateway fast-food Deployment of Worldline’s Visa, Maste
Slide 22: Ingenico Pre-Integration Process
INGENICO PRE-INTEGRATION PROCESS IMPLEMENTATION OF THE DAY-ONE READINESS APPROACH INGENICO PRE-INTEGRATION WORK COMPLETED GO LIVE OF THE NEW COMBINED ORGANISATION PLANNED NOV 2nd Day-one organization fully defined and presented to social partners Re-design of Merchant Services Global Business Line
Slide 23: New Merchant Services Organization Bigger, Deeper, Better
NEW MERCHANT SERVICES ORGANIZATION BIGGER, DEEPER, BETTER MERCHANT SERVICES Product Market Project Management & Architecture Product focused Commercial acquiring Segment divisions to Small & Medium Global Digital Financial specific converge Acceptance Sales and Businesses Commerce Institutions go-to
Slide 24: A Renewed Growth Ambition
A RENEWED GROWTH AMBITION LEVERAGING A UNIQUE COMBINATION OF ASSETS Small & Medium Global Sales Digital Financial Businesses & Verticals Commerce Institutions Increasing number of Booming e-com market Growing appetite from merchants of all sizes Ever-increasing merchant FI to capture payment requiri
Slide 25: Solid 2021 and Medium-Term Perspectives for Growth and Margin Improvement
SOLID 2021 AND MEDIUM-TERM PERSPECTIVES FOR GROWTH AND MARGIN IMPROVEMENT MARKET SPECIFIC DRIVERS COMPANY SPECIFIC DRIVERS Strong acceleration of cashless Repositioning of the Merchant Services portfolio towards more online: payments trends: From 20%+ for Worldline in 2020 to 30%+ post Ingenic
Slide 26: Conclusion Third Quarter 2020
CONCLUSION THIRD QUARTER 2020 GILLES GRAPINET Chairman & CEO Thursday October 29th, 2020 | Worldline Q3 2020 revenue | © Worldline
Slide 27: Priorities for the New Group Effective Today
5 PRIORITIES FOR THE NEW GROUP EFFECTIVE TODAY Actively participate in industry 5. 1. Deliver as fast as possible the defining regulations & initiatives € 250 million synergies Anchor Worldline as a premium Launch of the strategic review of global payment brand and 4. 2. the payment terminal busines
Slide 28: Q&A Third Quarter 2020
Q&A THIRD QUARTER 2020 Thursday October 29th, 2020 | Worldline Q3 2020 revenue | © Worldline
Slide 29: Appendix
APPENDIX Thursday October 29th, 2020 | Worldline Q3 2020 revenue | © Worldline
Slide 30: September 2020 YTD Revenue Performance by Global Business Line
SEPTEMBER 2020 YTD REVENUE PERFORMANCE BY GLOBAL BUSINESS LINE Revenue Organic In € million 9M 2020 9M 2019* change Merchant Services 754.0 825.7 -8.7% Financial Services 666.8 671.1 -0.6% Mobility & e-Transactional Services 241.2 247.5 -2.5% Worldline 1,662.0 1,744.3 -4.7% * at constant scope and e
Slide 31: Thank You
THANK YOU FOR MORE INFORMATION, PLEASE CONTACT: Laurent Marie David Pierre-Kahn Benoit d’Amécourt M +33 7 84 50 18 90 M +33 6 28 51 45 96 M +33 6 75 51 41 47 [email protected] [email protected] [email protected] © Worldline