Wirecard Ag · HAM:WDI
Wirecard — Q1 2017 Earnings Presentation
37 slides from Wirecard's earnings presentation, May 18, 2017
Slide 1: Investor Presentation – Results Q1 2017
Investor Presentation – Results Q1 2017 18 May 2017 © 2017 Wirecard AG 1
Slide 2: Content
Content 1. Highlights 2. Industry and regions 3. Mergers and acquisitions 4. Outlook 5. Financial data © 2017 Wirecard AG 2
Slide 3: Highlights
1 Highlights © 2017 Wirecard AG 3
Slide 4: Wirecard at a glance
Highlights Wirecard at a glance 17.2 EUR bn processed transaction volume worldwide Outstanding track record with continuing growth and strong fundamentals ~ 29,000 large and medium sized merchants ~ 160,000 small sized merchants Innovation leader with leading internet and mobile payment technology G
Slide 5: Key figures Q1 2017
Highlights Key figures Q1 2017 Results in EUR mn (except where stated) Q1 2017 Q1 2016 Change Transaction volume (in EUR bn) 17.2 12.8 34% Revenues 274.9 210.5 31% EBITDA 81.3 62.0 31% EBIT adjusted* 69.4 53.4 30% EBIT 60.2 46.1 31% Earnings after taxes 48.5 36.6 32% Operating cash flow** 64.8 50.6
Slide 6: Organic versus M&A related growth Q1 2017
Highlights Organic versus M&A1 related growth Q1 2017 Transaction volume Revenue growth EBITDA growth growth Total 34.2% 30.6% 31.1% Organic 29.3% 25.3% 27.0% M&A 4.8% 5.3% 4.1% • Wirecard North America 4.5% 5.1% 4.0% • MyGate 0.3% 0.2% 0.1% 1) Wirecard North America and MyGate (South Africa) © 2017
Slide 7: Global mega trends driving Wirecard's growth
Highlights Global mega trends driving Wirecard´s growth 1 Substitution of POS transactions by mobile and internet transactions 2 Transition from cash transactions to electronic card transactions 3 Transition from non-real-time transactions to real-time transactions 4 Internet technology as convergen
Slide 8: Wirecard's strategy
Highlights Wirecard´s strategy Driving convergence between online, mobile and POS front-ends using innovative internet technology Constant extension of value chain and innovative internet- Globalisation driven value added services © 2017 Wirecard AG 8
Slide 9: Wirecard's USPs
Highlights Wirecard´s USPs Strong value chain with end-to-end fully digitised Value chain acquiring and issuing leading to gross margin advantages Increasing conversion through digitised Data driven data layer that connects data sources via value added dynamic algorithms (AI and self learning servic
Slide 10: Wirecard's end-to-end payment ecosystem
Highlights Wirecard´s end-to-end payment ecosystem – fully digitised global acquiring and issuing MOBILE FRONTEND SMS / USSD SIM TOOLKIT / J2ME SMARTPHONE APPS SMARTPHONE SDK SOLUTIONS VALUE ADDED CONTEXTUAL ADVERTISING LOYALTY PROGRAMS COUPONING SERVICES SERVICES ISSUING MULTI-CHANNEL WALLET CUSTOM
Slide 11: Data driven services (1/4)
Highlights Data driven services (1/4) - Leading 360° risk management: raising conversion on average by more than 5% and reducing default by up to 50%* Region 1 One Platform for multiple purposes • Platform for decision making Region 2 • Modular design CREDIT AGENCY GATEWAY PEP CHECK • Flexible setup
Slide 12: Data driven services (2/4)
Highlights Data driven services (2/4) - Wirecard´s omni-channel offering to further increase conversion rates © 2017 Wirecard AG 12
Slide 13: Data driven services (3/4)
Highlights Data driven services (3/4) - Wirecard´s omni-channel offering to further increase conversion rates In-store visitors 100 % Willing to buy in 80 % case of broader product offering Adressable via 60 % correct sales 10-20% more Not- approach revenue due to 100% 85% converted increased 40 % c
Slide 14: Data driven services (4/4)
Highlights Data driven services (4/4) - Illustrative examples how omni-channel analytics toolbox helps merchants to increase revenue RFM analysis Next best offer Customer segments 7.9% 12% 28% reactivated customers increased sales in online average growth in customer identified by RFM patterns 1 sho
Slide 15: Global reach
Highlights Global reach © 2017 Wirecard AG 15
Slide 16: Operative highlights Q1 2017
Highlights Operative highlights Q1 2017 Examples of customer gains, business extensions and new partners Rakuten, Festo, RwandAir, T-Systems, Rossmann, Sortimo, TransferTo, bluesource – mobile solutions gmbh, National Bank of Greece, Myanmar Airways, EON Business Services, DDV Mediengruppe, Helpmund
Slide 17: Industry and regions
2 Industry and regions © 2017 Wirecard AG 17
Slide 18: Transaction volume – industry view
Industry and regions Transaction volume – industry view 17.2 EUR bn transaction volume in Q1 2017 34.2% yoy growth Consumer goods • Includes B2C and B2B physical 10.7 EUR bn 6.4 EUR bn products Europe Outside Europe • Consumer goods up 2.3 EUR bn, with 38.4% yoy growth Transaction volume1 industry a
Slide 19: Mergers and acquisitions
3 Mergers and acquisitions © 2017 Wirecard AG 19
Slide 20: Overview of recent M&A activity
Mergers and acquisitions Overview of recent M&A activity • Leading position in institutional funded prepaid card issuing with more than 2,500 client programs launched • Global expansion with market entry U.S. Wirecard North America • Employees: 120 (Citi Prepaid Card • Estimated EBITDA margin 2017 a
Slide 21: Track record of recent M&A activity
Mergers and acquisitions Track record of recent M&A activity Revenue EBITDA 10.6 EUR mn 2.5 EUR mn Wirecard North America Q1 2017 Q1 2017 (Citi Prepaid Card Services) (consolidation as of (consolidation as of March 2017) March 2017) 0.3 EUR mn 0.1 EUR mn MyGate in South Africa Q1 2017 Q1 2017 (conso
Slide 22: Outlook
4 Outlook © 2017 Wirecard AG 22
Slide 23: Market environment
Outlook Market environment Strong prospective market growth of 16% to 17% within Wirecard´s core geographies as well as its industry mix for 2017 Convergence of all Ongoing digitalisation sales channels Transition from cash to Real-time payments electronic payments © 2017 Wirecard AG 23
Slide 24: Company guidance 2017
Outlook Company guidance 2017 • EBITDA guidance for FY2017 of 382 to 400 EUR mn • Proposed dividend of 0.16 EUR per share Guidance is based on • Growth of the European e-commerce market and additional global growth drivers • Increase of processed transaction volume with existing and new clients • Ec
Slide 25: Wirecard's visionary playing field
Outlook Wirecard´s visionary playing field 85% cash transactions worldwide … whereas only 15% of all transactions are electronic …with only 6% to 7% of all electronic transactions being fully digitised Leaving an enormous market potential for Wirecard © 2017 Wirecard AG 25
Slide 26: Vision 2020
Outlook Vision 2020 TX volume Revenue > EUR 190 bn EBITDA – margin > EUR 2.5 bn FCF conversion to 30-35% EBITDA > 65% © 2017 Wirecard AG 26
Slide 27: Financial data
5 Financial data © 2017 Wirecard AG 27
Slide 28: Remark on quarterly statement
Financial data Remark on quarterly statement • Transparency requirements for publicly traded companies have been amended (German Act Implementing the European Directive amending the Transparency Directive and the amendments to the German Securities Trading Act (WpHG) on 25 November 2015) • Frankfurt
Slide 29: Financial highlights Q1 2017
Financial data Financial highlights Q1 2017 in EUR k Q1 2017 Q1 2016 Change Revenue 274,895 210,470 31% EBITDA 81,259 61,977 31% EBIT adjusted* 69,387 53,357 30% EBIT 60,153 46,057 31% Tax 8,547 6,156 39% Earnings after taxes 48,491 36,610 32% EPS (undiluted) in EUR 0.39 0.30 30% Operating cash flow
Slide 30: Consolidated income statement
Financial data Consolidated income statement in EUR k Q1 2017 % of revenues Q1 2016 % of revenues Revenues 274,895 210,470 Own work capitalised 9,091 5,670 Cost of materials -142,970 52.0% -110,357 52.4% Personnel expenses -38,049 13.8% -27,698 13.2% Other operating expenses -25,852 9.4% -16,431 7.8
Slide 31: Balance sheet
Financial data Balance sheet Assets in EUR k 31.03.2017 31.12.2016 Equity and liabilities in EUR k 31.03.2017 31.12.2016 Non-current assets 1,631,794 1,386,438 Shareholders´ equity 1,528,341 1,474,963 Goodwill 645,233 534,892 Liabilities 2,290,527 2,007,099 Customer relationships 501,148 392,329 Cur
Slide 32: Net cash (short- and long-term)
Financial data Net cash (short- and long-term) In EUR mn Net cash bridge Q1 2017 In EUR mn 2,500 605 -336 2,000 -594 1,451 2 1,500 -412 1,000 175 -657 716 500 234 0 Cash and cash Interest-bearing Receivables of Current interest Customer Liabilities of Net cash Non-current Non-current Net cash equiva
Slide 33: Income tax analysis
Financial data Income tax analysis in EUR k Q1 2017 in % of ebt Q1 2016 in % of ebt Earnings before tax (EBT) 57,038 42,766 Tax on income and profit -8,547 15.0% -6,156 14.4% thereof impact from deferred tax 142 -0.2% 898 -2.1% thereof tax to be paid -8,688 15.2% -7,054 16.5% Paid tax on income -2,9
Slide 34: Cash flow and conversion
Financial data Cash flow and conversion Free cash flow in EUR k Q1 2017 Q1 2016 Cash flow from operating activities 64,761 50,603 (adjusted) Operative CAPEX 15,093 13,077 Free cash flow 49,668 37,526 Cash conversion in EUR k Q1 2017 Q1 2016 Free cash flow 49,668 37,526 Earnings after tax 48,491 36,6
Slide 35: Thank you for your attention
THANK YOU FOR YOUR ATTENTION © 2017 Wirecard AG 35
Slide 36: Contact
Contact Investor Relations Iris Stöckl: iris.stoeckl@wirecard.com IR-Team: ir@wirecard.com T: + 49 (0) 89 4424 1788 Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany © 2017 Wirecard AG 36
Slide 37: Disclaimer
Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial condi