Slide 1: 1H22 Results Presentation
1H22 Results Presentation July 29th, 2022
Slide 2: Disclaimer
Disclaimer ▪ This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations,
Slide 3: Key messages
Capital Markets Day scheduled Key messages for September 27TH 2022 Strong volume growth Strong financial performance Continued progress in creating in 2Q22 across all geographies in 1H22, accelerating in 2Q22 the European PayTech leader ▪ Continued volume growth in Italy, up ▪ Revenue growth at +10%
Slide 4: Strong volume growth in 2Q22 across all geographies
Strong volume growth in 2Q22 across all geographies 2Q22 travel fully recovered and Y/Y performance High impact consumption Basic consumption Discretionary consumption Total well above 2019 Group level1 ITALY --- Italian Cards --- Foreign Cards 180 162% June vs 2019 440 438% June vs 2019 160 245% 13
Slide 5: Merchant Services & Solutions: key business update
Merchant Services & Solutions: key business update 1H22 TRX Value Key Business Highlights Examples of recent 55%1 ▪ Strong and accelerated sales performance across all geographies vs last year, especially in DACH and Poland. customer wins & upsells Terminals installed base growing by ~150k y/y in 1H
Slide 6: Focus on 1H22 results
nexi Focus on 1H22 results
Slide 7: Accelerated Revenue and EBITDA growth in 2Q22, leading to strong EBITDA growth and margin expansion
Accelerated Revenue and EBITDA growth in 2Q22, leading to strong EBITDA growth and margin expansion Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin 45% 49% 42% 46% +8.7% 1,520.8 1,398.8 +19.1% 702.4 +10.2% 589.7 808.2 +20.5% 733.6 395.0 327.9 2Q21 2Q22 1H21 1H22 2Q21 2Q22 1H21 1H22 Not
Slide 8: Merchant Services & Solutions: double-digit revenue growth supported by strong volumes
Merchant Services & Solutions: double-digit revenue growth supported by strong volumes and installed base expansion Net Revenues (€M) Managed Transactions (#M) Key Highlights International ▪ Accelerated revenue growth in 2Q22 for 53%1 Schemes +21.3% both Nexi and Nets ▪ Continued solid value of tran
Slide 9: Cards & Digital Payments: positive revenue growth supported by sustained volume dynamics
Cards & Digital Payments: positive revenue growth supported by sustained volume dynamics Net Revenues (€M) Managed Transactions (#M) Key Highlights 32%1 International +21.6% ▪ Positive revenue growth, led by Italy Schemes (+7.1% y/y in 2Q22) +18.7% 8,278 ▪ Continued solid value of transactions 6,973
Slide 10: Digital Banking & Corporate Solutions: revenue growth in the quarter
Digital Banking & Corporate Solutions: revenue growth in the quarter supported by business initiatives and projects Net Revenues (€M) Key Highlights ▪ Positive Revenue performance in 2Q22 thanks to business initiatives 16%1 and projects -0.3% 239.1 238.3 ▪ B2B/Corporate Payments: good Digital progre
Slide 11: Strong revenue performance across geographies in 2Q22 and 1H22
Strong revenue performance across geographies in 2Q22 and 1H22 55%1 Italy Nordics2 22%1 +6.6% 783.3 834.7 +8.8% +9.9% 442.9 +12.1% 337.5 406.9 307.0 161.1 180.5 2Q21 2Q22 1H21 1H22 2Q21 2Q22 1H21 1H22 8%1 15%1 DACH & Poland SE Europe & Other +15.3% +11.5% +9.1% 225.4 +11.8% 195.4 106.2 118.4 113.1 1
Slide 12: Strong cost performance thanks to operating leverage, cost control and M&A synergies
Strong cost performance thanks to operating leverage, cost control and M&A synergies’ delivery Total Costs (€M) Key Highlights Personnel Costs ▪ 2Q22 total costs well under control vs last Operating Costs year, despite volume and business growth +1.2% 809.1 818.4 ▪ About 20€M contribution from M&A s
Slide 13: Continued investments to support quality, innovation and IT transformation
Continued investments to support quality, innovation and IT transformation Ongoing investments 2022: key examples Capital Expenditure (€M) Transformation Capex 87 Transformation Capex Standalone Nexi and Nets Transformation Capex: Ordinary Capex ✓ UNI Core Processing platform rollout ✓ Acquiring Tar
Slide 14: Group Capex evolution trending towards 8-10% ordinary level
Group Capex evolution trending towards 8-10% ordinary level, with transformation and integration capex peaking in 2022 to support new Group integration Capital Expenditure (€M) Key Highlights Capex in % of net revenues % ▪ Group Ordinary Capex intensity ratio structurally at ˜8-10%, including invest
Slide 15: Confirmed ~100 €M cash synergies in 2022
Confirmed ~100 €M cash synergies in 2022 Cash synergies (€M) Key Highlights ~320 €M total recurring cash synergies with possible 10%+ synergies’ upside in the long term Target >65€M one-off capex savings already secured ▪ Cost synergies coming from: - tech platforms and infrastructure optimization a
Slide 16: Significant ongoing reduction of Integration and Transformation Costs
Significant ongoing reduction of Integration and Transformation Costs Transformation and Bridge from 1H 2022 Transformation Costs to Managerial Non recurring items (€M) Integration Costs (€M) Integration Costs Transformation Costs -46.8 143.9 -47% 19.9 -29.4 76.2 124.0 29.4 -10.2 Total Transformatio
Slide 17: Normalized Net Profit at 266.2 €M, up by 23% Y/Y
Normalized Net Profit at 266.2 €M, up by 23% Y/Y €M 702.4 1.8 0.34 351.5 CASH EPS1 Y/Y performance +23% 73.3 49.5 266.2 0.29 106.4 106.4 CASH EPS1 9.3 127.6 80.2 89.1 1.8 1H22 FX effect D&A Interest Non Taxes & 1H22 FX effect D&A ∆ Interest Non ∆ Taxes 1H22 EBITDA Expenses recurring Minorities Repor
Slide 18: Cash Flow conversion at 78%
Cash Flow conversion at 78% €M Cash Flow Conversion 1 78% 702.4 130.3 24.2 547.9 64.3 129.9 353.8 1H22 EBITDA Ordinary Capex ∆ NWC 1H22 Normalized Normalized Cash Normalized Cash 1H22 Normalized Operating Cash Flow Interest Expenses Taxes2 and Minorities Free Cash Flow Note: (1) Cash Flow Conversion
Slide 19: Net Financial Debt / EBITDA in line with plan, at ~2.9x including run-rate synergies
Net Financial Debt / EBITDA in line with plan, at ˜2.9x including run-rate synergies Net Financial Debt (€M) Key Highlights Nets closing SIA closing ▪ One notch rating upgrade by Moody’s. “BB/Ba2” rating for Fitch, S&P, and Moody’s June 21 Sept 21 Dec 21 Mar 22 June 22 ▪ No debt maturities until 202
Slide 20: Focused and disciplined M&A activity in 1H22 both in and out
Focused and disciplined M&A activity in 1H22 both in and out Acquisitions Disposals BPER and BdS merchant acquiring business EDIGard ▪ Merchant acquiring business generating a total value of ▪ Norwegian invoice distribution solutions business transactions of ~13€B through a network of >110,000 merch
Slide 21: Closing remarks
nexi Closing remarks
Slide 22: Confirmed 2022 Ambition
Confirmed 2022 Ambition Assuming no material changes to the current Covid-19 and macro scenario: Net ▪ 7-9% net revenue growth Revenues ▪ Double-digit growth in Merchant Services & Solutions ▪ 13-16% EBITDA growth, +2 p.p. EBITDA margin expansion EBITDA ▪ Delivered synergies partially reinvested in
Slide 23: Key messages
Capital Markets Day scheduled Key messages for September 27TH 2022 Strong volume growth Strong financial performance Continued progress in creating in 2Q22 across all geographies in 1H22, accelerating in 2Q22 the European PayTech leader ▪ Continued volume growth in Italy, up ▪ Revenue growth at +10%
Slide 24: Q&A
nexi Q&A
Slide 25: Annex
nexi Annex
Slide 26: Group P&L
Group P&L 1H21 1H22 Δ% vs. 1H21 2Q21 2Q22 Δ% vs. 2Q21 €M Merchant Services & Solutions 699.4 799.8 +14.3% 372.0 430.6 +15.8% Cards & Digital Payments 460.3 482.8 +4.9% 240.4 252.4 +5.0% Digital Banking & Corporate Solutions 239.1 238.3 -0.3% 121.2 125.2 +3.3% Operating revenue 1,398.8 1,520.8 +8.7%
Slide 27: Revenues gross of scheme fees, shifted to Opex
Revenues gross of scheme fees, shifted to Opex Δ% vs. Δ% vs. Δ% vs. For illustrative 1Q22 2Q22 1H22 purpose only €M 1Q21 2Q21 1H21 Merchant Services & Solutions 444.8 +16.5% 535.1 +22.3% 979.9 +19.6% Cards & Digital Payments 236.9 +5.5% 260.7 +6.1% 497.6 +5.8% Digital Banking & Corporate Solutions 1
Slide 28: Well diversified revenue base both in terms of business and geography
Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets 1H22 Revenues breakdown 1H22 Costs breakdown by type By business By geography By type Merchant Services & Solutions Italy Nordics1 Installed based Variable costs Cards & Dig
Slide 29: Acquiring sales volume trend vs pre-Covid
Acquiring sales volume trend vs pre-Covid ITALY Italian Cards vs Foreign Cards Italian Cards Foreign Cards Total % change Y/Y % change vs 2019 (pre-Covid) 50 29% 36% 40 30% 28% 30 22% 22% 24% 23% 23% 29% 21% 20% 10% 5% 16% 15% 32% 27% 20 11% 18% 22% 9% 13% 7% 6% 16% 16% 14% 22% 24% 16% 3% 4% 11% 13%
Slide 30: Acquiring sales volume trend vs pre-Covid
Acquiring sales volume trend vs pre-Covid ITALY Breakdown by consumption category High impact consumption Basic consumption Discretionary consumption Total % change Y/Y % change vs 2019 (pre-Covid) 50 42% 42% 38% 39% 37% 40 41% 41% 32% 33% 33% 32% 30 31% 30% 34% 35% 27% 27% 26% 22% 22% 24% 21% 25% 2
Slide 31: Acquiring sales volume trend vs pre-Covid – Other key geographies
Acquiring sales volume trend vs pre-Covid – Other key geographies Total High Impact Consumption Basic Consumption Discretionary Consumption Grocery +47% Nordics acquiring volumes1,2 Doctors +32% 60 57% 47% 49% 48% 50% 46% 40 19% 31% 29% 13% 21% 25% 29% 36% 35% 15% 15% 13% 15% 14% 16% 14% 29% 29% 17%
Slide 32: Continued acceleration of cash to digital payments shift across sectors
Continued acceleration of cash to digital payments shift across sectors High Impact Consumption Basic Consumption Discretionary Consumption Focus on specific industries (June) % change vs 2019 Italy1 Nordics2 DACH2 Veterinary 98% Bakeries 72% Department Store 178% Hobby, toy and game stores 86% Pub
Slide 33: Investor Relations
Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com