Worldline Sa · EURONEXT:WLN
Worldline Sa — H1 2020 Earnings Presentation
29 slides from Worldline Sa's earnings presentation, Jul 23, 2020
Slide 1: H1 2020 Results
H1 2020 RESULTS THURSDAY JULY 23, 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 First Half 2020
HIGHLIGHTS FIRST HALF 2020 GILLES GRAPINET Chairman & CEO Thursday July 23, 2020 | Worldline H1 2020 results | © Worldline
Slide 4: Resilient First Half 2020 Results
RESILIENT FIRST HALF 2020 RESULTS IMPROVING MOMENTUM IN LINE WITH FULL YEAR TRAJECTORY Satisfying set of financial Strong commercial activity Continued execution figures in the COVID-19 despite COVID-19 situation: of the strategy: context: Strategic benefits of the SIX Results fully in line with
Slide 5: Satisfying Set of Financial Figures
SATISFYING SET OF FINANCIAL FIGURES REVENUE OM DA FREE CASH FLOW € 1,089 m € 246 m € 132 m -5.7% organic 22.6% -170bps 53.6% of OMDA NET INCOME GROUP NORMALIZED* NET SHARE INCOME GROUP SHARE € 53 m € 115 m * Adjusted for (Group share): staff reorganization, rationalization, integration & acquisition
Slide 6: Our Transformative Combination with Ingenico
OUR TRANSFORMATIVE COMBINATION WITH INGENICO FULLY ON TRACK TO CREATE A NEW LEADING GLOBAL PAYMENT SERVICE PROVIDER LEADERSHIP AND SCALE #1 MERCHANT c.€ 300 bn ACQUIRER PURCHASE VOLUME c.1,200 c.35 IN CONTINENTAL c.1 million ACQUIRED EUROPE FINANCIAL INSTITUTIONS MERCHANTS million CLIENTS POS c. 5.6
Slide 7: Further Progress Towards the Closing of Ingenico Acquisition
FURTHER PROGRESS TOWARDS THE CLOSING OF INGENICO ACQUISITION Tender preparation process Secured financing Outstanding support (99.6%) of Worldline shareholders for the required issuance of Pre-integration activities started in new shares compliance with applicable antitrust Draft offer document
Slide 8: Financial Performance First Half 2020
FINANCIAL PERFORMANCE FIRST HALF 2020 ERIC HEURTAUX CFO, Worldline Thursday July 23, 2020 | Worldline H1 2020 results | © Worldline
Slide 9: Constant Scope and Exchange Rates Figures Reconciliation
CONSTANT SCOPE AND EXCHANGE RATES FIGURES RECONCILIATION Exchange H1 2019 H1 2019* In € million rates effect Revenue 1,152.0 3.5 1,155.5 OMDA 278.5 2.8 281.3 OMDA % 24.2% 24.3% * at constant scope and exchange rates Exchange rate effects correspond mainly to the appreciation of the Swiss Franc partl
Slide 10: H1 2020 Financial Performance Overview
H1 2020 FINANCIAL PERFORMANCE OVERVIEW Revenue OMDA OMDA % In € million H1 2020 H1 2019* Change H1 2020 H1 2019* Change H1 2020 H1 2019* Change Merchant Services 483.6 541.9 -10.8% 103.3 122.4 -15.6% 21.4% 22.6% -120 bps Financial Services 442.7 446.0 -0.7% 130.9 145.6 -10.1% 29.6% 32.7% -310 bps Mo
Slide 11: Merchant Services
MERCHANT SERVICES In € million H1 2020 H1 2019* Change Revenue 483.6 541.9 -10.8% OMDA 103.3 122.4 OMDA % 21.4% 22.6% -120 bps * at constant scope and exchange rates REVENUE: -10.8% OMDA: -120 bps After a good start of the year, strong decrease in Commercial Acquiring due to COVID-19 impact mitiga
Slide 12: Financial Services
FINANCIAL SERVICES In € million H1 2020 H1 2019* Change Revenue 442.7 446.0 -0.7% OMDA 130.9 145.6 OMDA % 29.6% 32.7% -310 bps * at constant scope and exchange rates STABLE REVENUE OMDA: -310 bps Resilience to the extraordinary COVID-19 context thanks to recurring payment flows, newly signed large o
Slide 13: Mobility & e-Transactional Services
MOBILITY & E-TRANSACTIONAL SERVICES In € million H1 2020 H1 2019* Change Revenue 163.0 167.6 -2.8% OMDA 23.0 24.0 OMDA % 14.1% 14.3% -20 bps * at constant scope and exchange rates REVENUE SLIGHTLY DOWN OMDA: -20 bps Revenue slightly down with contrasted evolution between each of the 3 Stable profita
Slide 14: Income Statement
INCOME STATEMENT In € million H1 2020 H1 2019 COMMENTS OMDA 246.3 278.5 • Integration & acquisition costs: Operating margin 165.3 196.9 correspond mainly to SPS post-acquisition and integration costs, and costs for the Staff reorganization -1.5 -1.3 planned Ingenico acquisition Rationalization and a
Slide 15: Cash Flow Statement
CASH FLOW STATEMENT In € million H1 2020 H1 2019 COMMENTS OMDA 246.3 278.5 Capital expenditures -64.8 -46.9 • Capex at 5.9% of sales within the 5% to Lease expenditures (Lease under IFRS16) -19.5 -18.5 6% expected recurring range Change in working capital requirement 27.5 -30.4 Cash from operation 1
Slide 16: Summarized Balance Sheet
SUMMARIZED BALANCE SHEET June 30, December In € million 2020 31, 2021 COMMENTS Goodwill 3,124.5 3,114.5 Intangible assets 1,023.7 1,047.1 Borrowings include: Tangible assets 143.4 143.9 Right-of-use 207.9 202.1 • Bonds (€ 500 million) and convertible Non-current financial assets 91.9 102.1 bonds (OC
Slide 17: Financial Update on Ingenico Acquisition
FINANCIAL UPDATE ON INGENICO ACQUISITION Transaction supported by the BBB (stable) investment grade rating confirmed by S&P Financed by: • A bridge financing signed by a pool of 8 banks for an amount up to € 1.6 billion, available for a duration of up to 2 years FINANCING • The issuance on June
Slide 18: All 2020 Objectives Confirmed
ALL 2020 OBJECTIVES CONFIRMED CURRENT MARKET TRENDS IN LINE WITH FY BASE SCENARIO Based on the hypothesis outlined during the Q1 2020 revenue publication, the Group confirms that 2020 financial performance is expected broadly in line with 2019 as described below: 2020 2019 (Reminder) ORGANIC REVENUE
Slide 19: Commercial & Operational Performance First Half 2020
COMMERCIAL & OPERATIONAL PERFORMANCE FIRST HALF 2020 MARC-HENRI DESPORTES Deputy CEO Thursday July 23, 2020 | Worldline H1 2020 results | © Worldline
Slide 20: Overall Business Momentum
OVERALL BUSINESS MOMENTUM TRENDS IN THE POST COVID-19 WORLD Transactions Contactless E-commerce In this context, Worldline teams levels evolving shift: significantly up clients attention to succeeded in steadily Sustainable in most verticals efficient digital limiting costs while upwards positive wi
Slide 21: Update on Transaction Volumes
UPDATE ON TRANSACTION VOLUMES Of which Q1 2020* Q2 2020* June 2020* ACCOUNT PAYMENTS +8% +5% +9% ACS, TRUSTED AUTH, WALLET TRANSACTIONS +40% +44% +50% NUMBER OF ISSUING TRANSACTIONS +8% -8% +3% Of which: • Debit card +9% COMMERCIAL ACQUIRING TRANSACTIONS +8% -3% +5% • Credit card -14% * Compared wit
Slide 22: Successful Q2 Commercial Activity
SUCCESSFUL Q2 COMMERCIAL ACTIVITY Framework agreement Worldline to provide commercial acquiring and value-added services for a large number of brands in several European countries Secured remote order and payment system A designer brand Stores located in seven European countries. Launch of
Slide 23: Major Business and Tech Trends Reinforced During the Crisis
MAJOR BUSINESS AND TECH TRENDS REINFORCED DURING THE CRISIS CLEAR ACCELERATION WORLDLINE PROACTIVITY BASED ON OF THE MARKET NEEDS IN TERMS OF READY-TO-USE & INNOVATIVE SOLUTIONS Contactless & Cashless by default Pay by Link E-commerce WL Order Picking Scan & Pay Digital, the new normal! WL O
Slide 24: COVID-19 Cost Contingency Plan and 2020 Margin Trajectory
COVID-19 COST CONTINGENCY PLAN AND 2020 MARGIN TRAJECTORY Materialization of temporary actions as per plan Project reprioritization Subco reduction Restricted hours and holidays concentration Supplier renegotiations Logistics, travels, other discretionary spent Monitoring of business relat
Slide 25: Ingenico Pre-Integration Process
INGENICO PRE-INTEGRATION PROCESS IMPLEMENTATION OF THE DAY-1 READINESS APPROACH INGENICO PRE-INTEGRATION WORK PROGRESSED IN A VERY GOOD COLLABORATIVE SPIRIT 33 streams launched with exploratory “Know each other” phases performed. 1st draft of Day1 organization produced and dedicated social approval
Slide 26: Conclusion First Half 2020
CONCLUSION FIRST HALF 2020 GILLES GRAPINET Chairman & CEO Thursday July 23, 2020 | Worldline H1 2020 results | © Worldline
Slide 27: Key Takeaways
KEY TAKEWAYS 1 Materialization as anticipated of the progressive business recovery since de-confinement: Confirmed trajectory for the full year 2020 “Post-COVID-19 world” expected to bring new business opportunities: 2 Cashless transition acceleration Favorable environment for bank’s payment o
Slide 28: Q&A First Half 2020
Q&A FIRST HALF 2020 Thursday July 23, 2020 | Worldline H1 2020 results | © Worldline
Slide 29: Thank You
THANK YOU FOR MORE INFORMATION, PLEASE CONTACT: David Pierre-Kahn Head of Investor Relations T +33 1 34 34 90 66 | M +33 6 28 51 45 96 david.pierre-kahn@Worldline.com © Worldline