Slide 1: Western Union First Quarter 2012 Earnings Webcast & Conference Call
Western Union First Quarter 2012 Earnings Webcast & Conference Call April 24, 2012 Exhibit 99.2
Slide 2: Mike Salop, Senior Vice President, Investor Relations
Mike Salop Senior Vice President, Investor Relations * * * * * * * * *
Slide 3: Q1 New Segment Structure
Q1 New Segment Structure New segment structure beginning Q1 2012 Consumer-to-Consumer (C2C) now reporting six regions: Europe and Commonwealth of Independent States (CIS) North America including US, Canada, Mexico Middle East and Africa Asia Pacific including India and South Asia (APAC) Latin Americ
Slide 4: Hikmet Ersek, President & Chief Executive Officer
Hikmet Ersek President & Chief Executive Officer * * * * * * * * *
Slide 5: Q1 Highlights
Q1 Highlights C2C revenue growth accelerated 4% reported, or 5% constant currency* Reached 500,000 Agent locations in April Business Solutions integration on track Pro forma revenue growth 5%, or 4% constant currency* Strong progress in Ventures westernunion.com money transfer revenue increased 39%
Slide 6: Q1 Highlights
Q1 Highlights New services WU Pay electronics payment platform launched Key agreements Mobile money transfer to integrate with Ericsson’s platforms Acxsys agreement for international account based money transfer for customers of Canadian banks Business Solutions launched pension payment services for
Slide 7: Scott Scheirman, Executive Vice President, Chief Financial Officer & Global Operations
Scott Scheirman Executive Vice President Chief Financial Officer & Global Operations * * * * * * * * *
Slide 8: Revenue
Revenue ($ in millions) *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. Consolidated revenue up 9% reported and constant currency adjusted* Pro forma revenue increase 4%, or 5% constant currency, including Travelex Global Business Payments (TGBP) in prior period* Trans
Slide 9: Consumer-to-Consumer
Consumer-to-Consumer C2C 81% of Company revenue C2C revenue growth of 4% reported, or 5% constant currency* Transaction growth of 7% Total Q1 Western Union cross-border principal of $18 billion Increased 2% on a reported basis Increased 3% constant currency* Principal per transaction Declined 4% on
Slide 10: Consumer-to-Consumer
Consumer-to-Consumer Regions Revenue Growth Transaction Growth % of Total Revenue Europe and CIS 0% 1% 22% North America 5% 6% 21% Middle East and Africa 6% 9% 15% Asia Pacific 7% 6% 12% Latin America and Caribbean 2% 8% 9% westernunion.com 39% 41% 2% Q1 2012
Slide 11: Electronic Channels & Prepaid Highlights
Electronic Channels & Prepaid Highlights Account-based money transfer Revenue increased 43% Agreements in place with nearly 90 banks globally westernunion.com C2C revenue increased 39% Total WU.com revenue increased 37% (includes C2B) Prepaid Revenue increased 17% Over $260 million loaded through 60
Slide 12: C2C Transaction and Revenue Growth
C2C Transaction and Revenue Growth Q1 2012 *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.
Slide 13: Consumer-to-Business
Consumer-to-Business C2B 11% of Company revenue Revenue increased 1%, or 3% constant currency* Led by growth in South America *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.
Slide 14: Business Solutions
Business Solutions Business Solutions 6% of Company revenue Pro forma revenue increased 5%*, or 4% constant currency*, including TGBP in the prior year period Strong growth in Australia, softness in North America and the U.K. New customer acquisitions remain strong Integration of TGBP progressing on
Slide 15: Operating Margin
Operating Margin GAAP Excluding Restructuring and TGBP Integration Expenses* Operating margin excluding restructuring expense and TGBP integration expense declined 200 basis points • Business Solutions results negatively impacted margin, including $10 million of incremental TGBP intangibles amortiza
Slide 16: C2C Operating Margin
C2C Operating Margin Operating margin decreased 90 basis points from prior year • Increased marketing, Costa and Finint acquisition related expenses, investments in WU.com and compliance costs • Partially offset by benefits from revenue leverage, currency, and restructuring savings
Slide 17: C2B Operating Margin
C2B Operating Margin Operating margin improvement Primarily due to the benefit of lower debit processing expenses related to Durbin
Slide 18: Business Solutions Operating Margin
Business Solutions Operating Margin Operating Loss Operating loss of $15 million compared to an operating loss of $4 million in the prior year period Includes $14 million of intangibles amortization in current quarter and $4 million in the prior year period Includes $6 million of integration expense
Slide 19: 2012 Outlook
2012 Outlook February 2012 Outlook Affirmed Constant currency revenue growth in the range of 6% to 8%*, including 4% benefit from a full year of TGBP GAAP revenue growth 2% lower than constant currency Operating margins expected to be similar to 2011 GAAP operating margin of approximately 25% Operat
Slide 20: Questions & Answers
Questions & Answers * * * * * * * * *
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q11 2Q11 3Q11 4Q11 FY2011 1Q12 Consolidated Metrics Revenues, as reported (GAAP) 1,283.0 $ 1,366.3 $ 1,410.8 $ 1,431.3 $ 5,491.4 $ 1,393.4 $ Foreign currency translation impact (a) 2.3 (32.5) (18.2) 10.4 (38.0) 8.1 Revenues, constant currency adjusted 1,285.3 $ 1
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q11 2Q11 3Q11 4Q11 FY2011 1Q12 Consumer-to-Consumer Segment Revenues, as reported (GAAP) 1,078.1 $ 1,155.1 $ 1,193.3 $ 1,181.9 $ 4,608.4 $ 1,124.6 $ Foreign currency translation impact (a) 2.2 (31.4) (17.9) 8.0 (39.1) 5.2 Revenues, constant currency adjusted 1,08
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2012 Outlook Metrics Revenue change (GAAP) % % Foreign currency translation impact (g) % % Revenue change, constant currency adjusted % % Operating income margin (GAAP) % TGBP integration expense impact (d) % Operating income margin, TGBP integration expense adjus
Slide 24: Footnote explanations
Footnote explanations Non-GAAP related notes: (a) (b) (c) (d) (e) (f) (g) Represents the estimated impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any estimated benefit or loss caused by fo