Worldline Sa · EURONEXT:WLN
Worldline Sa — Worldline Sa Ord — H1 2023 Earnings Presentation
22 slides from Worldline Sa's earnings presentation, Jul 26, 2023
Slide 1: H1 2023 Results
H1 2023 Results Wednesday July 26, 2023 H1 2023 results | 26-07-2023 | © Worldline | 1
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: H1'23 Highlights
H1’23 Highlights Gilles Grapinet Group CEO H1 2023 results | 26-07-2023 | © Worldline | 3
Slide 4: H1 2023 highlights
H1 2023 highlights Good start of the year in line with our full year guidance H1 2023 COMMERCIAL RESULTS DYNAMICS Acquiring volumes up c.10% in H1’23 9.3% organic growth (9.4% in Q2 fueled by Merchant Services) Merchants count deployment in line with FY trajectory OMDA margin up 80 bps (c.+40k merch
Slide 5: H1 2023 key financial highlights
H1 2023 key financial highlights Full execution of our 2023 trajectory €2,242m revenues €519m OMDA €232m free cash-flow 9.3% organic growth 23.1% OMDA margin (+80 bps) 44.7% of OMDA €243m net income €0.84 diluted EPS* Group share* vs. €0.76 in H1’22 (+10.5%) 10.8% of revenues * Normalized figures ad
Slide 6: Strategic initiatives
Strategic initiatives Geographical expansion and reinforcement of existing positions Geographical expansion Strategic rationale Status update into new markets • Powerful access to an attractive market Worldline work councils’ Largest payment market in Continental Europe with c.€700bn MSV consultatio
Slide 7: Merchant Services dynamics & innovations
Merchant Services dynamics & innovations Marc-Henri Desportes Group Deputy CEO H1 2023 results | 26-07-2023 | © Worldline | 7
Slide 8: Solid dynamic in Worldline acquiring merchants' base
Solid dynamic in Worldline acquiring merchants’ base +c.40k new merchants onboarded since beginning of 2023 1.39m Merchants* as of June-2023 +c.7k/month net adds in average since Dec-2021 Unmatched access to the European retail and reinforced competitive positioning +40k net merchants in H1’23 fully
Slide 9: Q2'23 focus on MS commercial activity
Q2’23 focus on MS commercial activity Market share gains with existing and new large clients and offering & solutions enlargement with key partnerships signed MS wins & upsells with large clients MS Key partnerships signed Plug-in payment solution Integration of full cross-border embedded into VTEX
Slide 10: Acquiring MSV growth in H1 2023
Acquiring MSV growth in H1 2023 Solid growth on a more normalized basis Strong MSV growth in H1’23 Worldline own acquiring MSV H1’23 ACQUIRING MSV (€M) (acquiring instore and online) €220bn +c.10% vs 2022 Transaction volumes fueled by both instore and online Instore MSV +7% vs 2022 Online MSV +15% v
Slide 11: Focus on innovations driven by A.I.
Focus on innovations driven by A.I. Solutions already in motion and evaluation of possible Gen-A.I. use cases at scale A.I. already in motion Gen A.I. opening new fields in WL offerings of growth & efficiency Fraud management tools Merchants onboarding improving authorization rates accelerated KYC t
Slide 12: H1'23 Financial performance
H1’23 Financial performance Grégory Lambertie Group CFO H1 2023 results | 26-07-2023 | © Worldline | 12
Slide 13: H1 2023 financial performance: revenue
H1 2023 financial performance Global business lines revenue overview and building blocks H1 2023 Group Revenue H1 2023 dynamics (in €m) H1 2023 H1 2022* Organic Growth Merchant services 1,607 1,421 +13.1% 9.3% organic growth in H1’23 of which 9.4% in Q2’23 Financial services 464 458 +1.2% MeTS 171 1
Slide 14: H1 2023 financial performance: OMDA
H1 2023 financial performance Global business lines OMDA overview and building blocks H1 2023 Group OMDA H1 2023 dynamics (in €m) H1 2023 H1 2022* H1’23 margin Vs. H1’22 Merchant services 399 339 24.8% +100 bps OMDA up 13.4% to €518m Financial services 127 129 27.4% (70) bps Margin up 80bps to 23.1%
Slide 15: Income statement
Income statement In €M H1’23 H1’22* ▪ Operating income mainly impacted by OMDA 518 468 acquisition and post acquisition, and integration of new scope acquired: HIGHLIGHTS Depreciations & Amortizations (153) (122) o €70m of integration and acquisition costs o €133m Customer relationships and patents
Slide 16: Free cash-flow
Free cash-flow In €M H1’23 H1’22* OMDA 519 468 ▪ Increase in OMDA contribution HIGHLIGHTS ▪ Capex representing 7.8% of revenue Lease obligations (47) (31) vs. 6.9% in H1’22 and in line with expected full-year trajectory of 7% target Working capital change 77 86 ▪ Positive €77m change in Working Capi
Slide 17: Net debt evolution
Net debt evolution In €M H1’23 H1’22* ▪ €232m positive impact from free cash-flow (Net debt) / cash as of January 1st (2,202) (2,923) HIGHLIGHTS ▪ €143m positive impact from the Free Cash-flow 232 229 remaining cash-in from TSS disposal received in January 2023, net of acquisitions of Banco Desio Ca
Slide 18: FY 2023 guidance
FY 2023 guidance Revenue OMDA FCF 8% to 10% organic growth Above 100 bps improvement 46% - 48% OMDA conversion rate The full-year 2023 guidance is based on unchanged macro-economic situation H1 2023 results | 26-07-2023 | © Worldline | 18
Slide 19: H1'23 Key take-aways
H1’23 Key take-aways Gilles Grapinet Group CEO H1 2023 results | 26-07-2023 | © Worldline | 19
Slide 20: Key take-aways
Key take-aways Good start of the year in line with our 2023 guidance Very solid MS growth fuelled by market share gains Margin expansion as per plan resulting and commercial dynamics reflecting enhanced from synergies and operating leverage competitive strengths from Ingenico integration allowing to
Slide 21: Q&A
Q&A H1 2023 results | 26-07-2023 | © Worldline | 21
Slide 22: Thank you
Thank you For more information, please contact: Laurent Marie Benoit D’amécourt Group Head of Investor Relations Deputy Head of Investor Relations M +33 7 84 50 18 90 M +33 6 75 51 41 47 laurent.marie@worldline.com benoit.damecourt@worldline.com H1 2023 results | 26-07-2023 | © Worldline | 22