Worldline Sa · EURONEXT:WLN
Worldline Sa — Citi FinTech Conference 2016
43 slides from Worldline Sa's conference presentation, November 2016
Slide 1: Presentation to Investors - November 2016
Presentation to Investors - November 2016 - ID Card 3 year plan 2017 - 2019 O3 2016 revenue worldline @@@@@@ an atos company e-payment services
Slide 2: Disclaimer
Disclaimer ● This document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a number of risks and uncertainties tha
Slide 3: ID card
@00COS 8S ©0808 © © OOOSSS SOSOSS FOSSSSS 808888888 SOCHHHSHHSHSHSHHSHHSHSHHSHHSHHSHHSHHHHHSHHHOHHHOHHOHHOHHOOOHEOS AD card SOCHOHOHSSHSHSHSHSHSSHSHSSHHSHHOHHHSSHSHHHOHHOHHHHHOHOHHOOHSOSOSE®D
Slide 4: Our story
Birth of equensWorldline Our story Acquisition of Acquisition of Paysquare Venture Infotek and KB Smartpay Integration of Banksys Entry into fast growing Initial Public Worldline announced the 1st historical & Bank Card Company Offering creation of equensWorldline Indian payment market. contract (BC
Slide 5: Typical industry payment four-party card chain
Typical Industry payment four-party card chain Network Visa, MasterCard, …. Card Scheme fee Scheme fee incentive Card issuer Card acquirer Interchange fee variable depending on country Cardholder Cardholder and payment mean Merchant incentive fee Service Charge Payment acceptor Surcharge Cardholder
Slide 6: Three integrated Global Business Lines (2015 data)
Three integrated Global Business Lines (2015 data) 2015 Revenue: € 402m 2015 Revenue: € 414m 2015 Revenue: € 411m (+6.0%) (+2.8%) (+4.4%) Leveraging the customer Transforming cashless Enabling strategic digital engagement payments transformation 2015 OMDA (*) margin 19.4% 26.0% 16.6% (*): Operating
Slide 7: Comprehensive positioning across the extended payments value chain
Worldline has a comprehensive positioning across the extended payments value chain Issuing Services to Credit/Debit Acquiring Acceptance Services to Services to Commercial Card payment transaction cardholders ACH¹ transfers transaction POS new digital merchants acquiring Services in Europe processin
Slide 8: Equens transaction: building an industrial Pan-European champion
Equens transaction: building an industrial Pan-European champion in payment services Payment service providers ranking in European Union 2014 European turnover, in € million Industrial leader in 5 major European countries Worldline** & Equens Worldline** NETS WorldPay (Net) Large economies of scale
Slide 9: The new Worldline Group
The new Worldline Group | © Worldline
Slide 10: Worldline's 3-year plan
Worldline’s 3-year plan Gilles Grapinet Atos SEVP & Worldline CEO
Slide 11: Organic growth acceleration since the 2014 IPO
Organic growth acceleration since the 2014 IPO(1) Merchant Services Financial Processing Mobility & Terminals & Software Licensing & e-Transactionnal Services From 2.0% in 2014 to 7.9% in From 1.4% in 2014 to 4.4% Consistant 5% to 6+% 2016 (9M YTD) in 2016 (9M YTD) performance, excluding French Rada
Slide 12: On track to deliver the 2017 IPO objectives for OMDA and free cash flow
On track to deliver the 2017 IPO objectives for OMDA improvement and free cash c.20.0% flow (1) c.+80bp Reminder: +50bp +50bp 18.2% (2) Steady OMDA H1 2016 IPO 2017 objective improvement c.+250bp Worldline 2013 2014 OMDA 2015 OMDA 2016 OMDA Worldline OMDA% improvement improvement expected expected i
Slide 13: +41% revenue increase in Merchant Services and Financial Processing from M&A
+41% revenue increase in Merchant Services and Financial Processing from M&A since 2013 c.€1.5b c.€1.2b €1.1b +c.10% +41% revenue MST: €364m +c.20% increase in MST and FPL from M&A on +c.62% top of organic FPL: €392m +c.10% growth MeTS: €369m Stable 2013 (1) 2016e Standalone 2016e PF 13 | © Worldlin
Slide 14: Strong positive momentum of the European payment market
Worldline benefits from the strong positive momentum of the European payment market Beyond payments, IoT & Data analytics digital platforms IoT/M2M Loyalty Digital Payments Contact Mobile payments Digitization Online Banking ePayment Cashless trends eIdentity Fraud Risk Management services Cards tra
Slide 15: Key Strategic Axis 2017-2019
4 Key Strategic Axis 2017-2019 Worldline key strengths Strategic Axis • Largest PSP in Europe Financial Processing Size • Deliver the massive industrial synergies & • Leader in key markets with equensWorldline scope • Take further advantage of our European • Unique pan-European reach leadership in F
Slide 16: 2017-2019 objectives
2017-2019 objectives Revenue Organic After H1 2017 at a slight positive growth, 5% to 7% CAGR Growth +350bp to +400bp margin improvement OMDA % in 2019 vs 2016 (1) Free cash €210m to €230m in 2019, representing over +50% increase flow compared with 2016 objective (1): c.18.5% OMDA margin, 2016 Pro F
Slide 17: 2019 Business development ambitions
2019 Business development ambitions Marc-Henri Desportes General Manager
Slide 18: Payment market continues to experience solid volume growth and outsourcing forces
Payment Market continues to experience solid volume growth and outsourcing forces e-payment trends • Consistent growth in card payments volume in Western Europe as well as in CEE/Asia • Technological pressure and diversification of payment means (e.g. instant payments) • PSD 2 disruption in Europe F
Slide 19: equensWorldline: result of joining forces
equensWorldline : result of joining forces Industry’s largest transaction processing company in Europe • equensWorldline under the leadership of Michael Steinbach (former Equens CEO), leveraging the biggest scale in Europe • Atos and Worldline integration know-how to drive synergies execution • Scal
Slide 20: Equens integration started
Equens integration started New company equensWorldline live since October 1st, 2016 New organization is in place and operational as of Day 1 16 integration streams Very detailed roadmap • 9 business Immediate launch of execution by equensWorldline streams management with the full support of the Worl
Slide 21: equensWorldline synergy plan
equensWorldline synergy plan confirming targets with visibility of further upsides Impact of synergies Comments 2018 Outlook 2021 (for information) • €40m of OMDA savings expected in OMDA run-rate impact in €m c.€6m c.€55m 2018 c.€10m 50 • Synergy c.€6m c.€40m c.€19m implementation costs 40 estimate
Slide 22: Synergy ambitions fully confirmed around core topics
Synergy ambitions fully confirmed around the following core topics Infrastructure and cust. service Other operational topics • Data center consolidation and migration • Worldline off-shoring practices • Consolidation of application landscape, in • Middle management optimization Front Office and Back
Slide 23: Worldline: the European partner for merchant services
Worldline: the European partner for merchant services Products International go-to-market • Wider portfolio of products and services • Unmatched capability to serve specific • New enlarged needs of major brands footprint for acquiring in the North/Centre of Operations Europe • Leverage the capabilit
Slide 24: Strong focus in Mobility & e-Transactional Services
Strong focus in Mobility & e-Transactional Services to take advantage of robust market trends Strong momentum of business fundamentals Leverage global in 3 verticals and 1 transversal : footprint to pursue • Manufacturing & Insurance: Connected Living, international roll-out Analytics & Payment of k
Slide 25: 2019 Financial ambition
2019 Financial ambition Eric Heurtaux, Chief Financial Officer “ worldline @@@@@@ anatos company (1) As of December 1, 2016 e-payment services
Slide 26: 2016 Best estimate pro forma revenue and OMDA
2016 Best estimate pro forma revenue and OMDA (1) Worldline 2016 best Worldline 2016 best estimate pro forma estimate pro forma revenue OMDA% c.20.0% c.€0.3b c.18.5% c.12.5% c.€1.2b 2016e Worldline 2016e OMDA% from 2016e Pro forma OMDA "standalone" OMDA acquisitions objective 2016e revenue from acqu
Slide 27: Main 2017-2019 revenue growth drivers
Main 2017 – 2019 revenue growth drivers Trends Revenue • Fast volume growth in electronic payment conversion • Thanks to Paysquare and KB Smartpay, MST • Geographic expansion in higher growth increased geographical diversification geographical areas (Germany, CEE) • Mid- to high- single digit growth
Slide 28: Main 2017-2019 OMDA improvement drivers
Main 2017 – 2019 OMDA improvement drivers Trends OMDA • Acquisitions to gradually reach rest of MST MST profitability thanks to synergies starting in • Low twenties OMDA% 2017 • equensWorldline: c.€40m OMDA run-rate synergies in 2018, of which 50% in 2017 • From low twenties in 2016e FPL • Synergy i
Slide 29: Free cash flow main assumptions
Free cash flow main assumptions Capex • 6% and 7% of revenue in 2017 €210m • 5% to 6% of revenue from 2018 to €230m Change in working capital in 2019, • Assumption: slight contribution representing Reminder : Q4 2016 to H2 2018 equensWorldline transformation costs over +50% increase • To generate th
Slide 30: Financing of acquisitions
Financing of acquisitions Immediate available financing capacity Acquisitions c.€1.5b Confirmation of financial policy: Mid-term leverage target of 1.5x to 2.5x net debt/EBITDA Worldline 2016e 2.5 (max leverage) x 2.5 (max leverage) x Immediate available estimated net cash 2016ePF OMDA OMDA from pot
Slide 31: A strong M&A ambition over 2017-2019
A strong M&A ambition over 2017- 2019 For illustration: c.€0.5b M&A potential additional contribution, if pursuing same trends than during 2014- c.€1.5b 2016 (i.e. c.+40% of MST and FPL revenue) c.€0.3b €1.1b c.€1.8b c.€1.2b Acquisition ambition Acquisitions completed Organic revenue evolution 2013
Slide 32: Single currency and harmonized regulation drove US consolidation in payments
Single currency and harmonized regulation drove the US consolidation in payments … 32 | © Worldline
Slide 33: The European payment industry consolidation journey is just starting
The European payment industry consolidation journey is just starting… 33 | © Worldline
Slide 34: Worldline is one of the few European natural consolidators
… while Worldline is one of the very few European recognized natural consolidators 34 | © Worldline
Slide 35: Q3 2016 highlights
‘higt blights Gilles rd qt Chief Executive Officer
Slide 36: Q3 2016 key figures
Q3 2016 key figures € 1.7bn € 294.3m 1.4 years € 40.1m +0.2% organic of revenue 36 | © Worldline
Slide 37: Q3 2016 key messages
Q3 2016 key messages Day-One readiness Q3 growth performance A stronger worldline after secured during Q3 for and cash generation fully the successful closing of the immediate execution of in line with full year acquisitions of Equens, KB integration and synergy objectives and Paysquare plans 37 | ©
Slide 38: Q3 2016 revenue per GBL
Q3 2016 revenue per GBL Revenue Q3 In € million Q3 2016 Q3 2015* Var. % Growth Merchant Services & Terminals 101.6 96.7 +4.9 +5.0% Financial Processing & Software Licensing 107.6 103.1 +4.5 +4.4% Mobility & e-Transactional Services 85.1 93.9 -8.8 -9.3% Worldline 294.3 293.7 +0.6 +0.2% * At Septembre
Slide 39: September 2016 YTD revenue per GBL
September 2016 YTD revenue per GBL Revenue 9 months Sep YTD Sep YTD In € million Var. % Growth 2016 2015* Merchant Services & Terminals 311.7 288.8 +22.9 +7.9% Financial Processing & Software Licensing 315.7 302.0 +13.7 +4.5% Mobility & e-Transactional Services 281.8 282.8 -1.0 -0.4% Worldline 909.1
Slide 40: Free cash flow well in line with full year objectives
Free Cash flow well in line with the objectives for the full year €135m to €140m €40.1m €35.9m €35.3m Q1 2016 FCF Q2 2016 FCF Q3 2016 FCF Q4 2016 expected FCF FY 2016 guidance 40 | © Worldline
Slide 41: Q3 2016 signatures
Q3 2016 signatures Confirming the quality of Worldline’s product roadpmap Mobility & Merchant Services Financial Processing e-Transactional & Terminals & Software Licensing Services Key achievements Key achievements Key achievements And business update And business update And business update • Pan-E
Slide 42: Worldline's FY 2016 objectives fully confirmed
Worldline’s FY 2016 objectives fully confirmed with the following Q4 2016 additional contribution from newly acquired companies: Above +3% on the standalone scope Revenue c. €80 million from acquired businesses c.+80 bp vs FY 2015 on the standalone scope OMDA % c. €10 million from acquired businesse
Slide 43: Thank you
‘Thank you For more information, please contact: David Pierre-Kahn, Head of Investor Relations T+33134349066 | M+336 28514596 david pierre-kahn@worldline.com worldline @@@@@@ an atos company e-payment services