Worldline Sa · EURONEXT:WLN
Worldline Sa — FY2022 Earnings Presentation
31 slides from Worldline Sa's earnings presentation, Feb 21, 2023
Slide 1: FY 2022 Results
FY 2022 Results Tuesday February 21, 2023 FY 2022 results | 21-02-2023 | © 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: FY'22 Results Highlights
FY’22 Results Highlights Gilles Grapinet Group CEO FY 2022 results | 21-02-2023 | © Worldline | 3
Slide 4: 2022 highlights
2022 highlights Full execution of Worldline roadmap FY 2022 COMMERCIAL RESULTS PERFORMANCE Solid 2022 guidance execution Numerous contracts wins in all GBLs with all parameters achieved or exceeded Strong merchants count development Strong achievement in CSR roadmap Steady acquiring volumes growth A
Slide 5: Solid FY 2022 results
Solid FY 2022 results Solid 2022 guidance execution with all objectives reached or exceeded 2022 GUIDANCE 2022 EXECUTION Steady growth along the 10.7% organic growth year with MS posting a Revenue 8% to 10% organic growth (€4,364m revenue with steady organic solid 14% organic growth all along the ye
Slide 6: Extra-financial 2022 results
Extra-financial 2022 results Strong delivery in Worldline trajectory towards TRUST 2025 program Recognized CSR performance Business Delivery excellence and quality of services, security, client satisfaction and customer experience Environment Contribute to carbon neutrality Circular economies People
Slide 7: Steady commercial performance across all business lines
Steady commercial performance across all business lines 2022 flagship wins driven by key differentiating products Vertical Single scalable Advanced differentiation connection features TravelHub 150 payment methods Multi-acquiring, tokenization, solution and currencies fraud solutions Merchant Servic
Slide 8: 2024 ambition in motion
2024 ambition in motion Strong execution in integrations, acquisitions & disposals Integrations Acquisitions Disposals Commercial Acquiring MeTS Commercial TSS activities Latam Acquiring Italy Merchant Acquiring Strategic partnerships Value-added TSS disposal effective in attractive markets Tech-dri
Slide 9: 2024 ambition in motion
2024 ambition in motion 2024 trajectory fully confirmed after a solid start in 2022 Revenue 9% to 11% revenue CAGR 2022-2024 OMDA Above 400bps improvement over the period Trending towards 30% OMDA margin by 2024 FCF c.50% OMDA conversion by 2024 FY 2022 results | 21-02-2023 | © Worldline | 9
Slide 10: Merchant Services
Merchant Services Operational achievements and Commercial dynamics Marc-Henri Desportes Group Deputy CEO FY 2022 results | 21-02-2023 | © Worldline | 10
Slide 11: Solid integration and investment path enhancing Worldline profile
Solid integration and investment path enhancing Worldline profile All planned synergies delivered in 2022 while maintaining our investment efforts INTEGRATIONS INNOVATION & PRODUCTS All SPS synergies delivered Merge of acceptance & acquiring platforms as expected and fully completed in 2022 a major
Slide 12: Worldline acquiring merchants' base growth above the plan
Worldline acquiring merchants’ base growth above the plan >200k net new merchants since the merger with Ingenico reaching 1.25 million 1.25m Merchants* as of Dec-2022 +c.8.5k/month net adds in average since Dec-2020 Unmatched access to the European retail and reinforced competitive positioning +85k
Slide 13: Focus on Q4 2022 commercial activity
Focus on Q4 2022 commercial activity Steady instore and online dynamics in merchants wins and upsells Wins with large new clients Upsells with existing clients Key products “A la carte” acquiring solution Omnichannel (adaptative mix between Worldline and local acquiring) Instore Full service instore
Slide 14: Solid acquiring MSV growth in 2022
Solid acquiring MSV growth in 2022 Double-digit growth and promising start of 2023 Worldline outperformance in core geographies Worldline own acquiring MSV FY’22 ACQUIRING MSV (€M)* (acquiring instore and online) €320bn +22% vs FY’21 +29% vs. FY’19 Transaction volumes fueled by both instore and onli
Slide 15: FY'22 results Financial performance
FY’22 results Financial performance Grégory Lambertie Group CFO FY 2022 results | 21-02-2023 | © Worldline | 15
Slide 16: FY 2022 key financial highlights
FY 2022 key financial highlights Performance solidly on track €4,364m revenues €1,133m OMDA €520m free cash-flow 10.7% organic growth 26.0% OMDA margin (+110 bps) 45.9% of OMDA €545m net income €1.88 diluted EPS* Group share* vs. €1.53 in FY’21 (+22.9%) 12.5% of revenues * Normalized figures adjuste
Slide 17: FY 2022 financial performance: revenue overview
FY 2022 financial performance Global business lines revenue overview Q4 2022 Group Revenue (in €m) Q4 2022 Q4 2021* Organic Growth Merchant services 835 757 +10.3% Financial services 260 252 +2.9% MeTS 92 86 +7.0% Worldline 1,186 1,095 +8.3% FY 2022 Group Revenue (in €m) FY 2022 FY 2021* Organic Gro
Slide 18: FY 2022 revenue building blocks
FY 2022 revenue building blocks Solid growth with Merchant Services anchored in the double-digit territory Focus on 2022 dynamics +10.7% organic growth 10.7% organic growth in 2022 Solid double-digit organic +14.3% +2.5% +7.3% €4,371m (1.4)% +1.3% €4,364m growth in Merchant Services absorbing non-pl
Slide 19: FY 2022 financial performance: OMDA overview
FY 2022 financial performance Global business lines OMDA overview FY 2022 Group OMDA (in €m) FY 2022 FY 2021* FY’22 margin vs. FY’21 margin Merchant services 869 672 28.6% +340 bps Financial services 272 296 28.4% (320) Bps MeTS 53 51 14.5% (30) bps Corporate (61) (39) (1.4%) (40) bps Worldline 1,13
Slide 20: FY 2022 OMDA building blocks
FY 2022 OMDA building blocks Solid OMDA expansion despite unexpected headwinds Drivers of margin expansion +15.7% OMDA organic growth +110 bps in margin OMDA up 15.7% to €1,133m Margin up 110bps to 26% +230 bps underlying OMDA generation before headwinds +430 bps (170) bps +120 bps (40) bps impact f
Slide 21: Income statement
Income statement In €M FY’22 FY’21 ▪ Operating income impacted by Ingenico OMDA 1,133 933 acquisition, the last year of SPS integration and the newly acquisitions integrated in 2022 (ANZ, HIGHLIGHTS Depreciations & Amortizations (268) (265) Eurobank, Axepta, Handelsbanken and Cardlink): o €192m of i
Slide 22: Free cash-flow
Free cash-flow In €M FY’22 FY’21 ▪ Increase in OMDA contribution OMDA 1,133 933 HIGHLIGHTS Lease obligations (76) (72) ▪ Capex representing 7.4% of revenue in line with the investment phasing Working capital change 100 62 Capex (325) (226) ▪ Positive change in Working Capital in line with FY’21 tren
Slide 23: Net debt evolution
Net debt evolution In €M FY’22 FY’21 ▪ €520m positive impact from free cash-flow Net debt / (cash) as of January 1st 3,126 3,211 HIGHLIGHTS Free Cash-flow 520 414 ▪ €291m positive impact from the disposal of TSS in front of acquisitions closed in Acquisition net of disposals 291 (315) 2022 (mainly A
Slide 24: FY 2022 estimated proforma
FY 2022 estimated proforma From 2022 reported to 2022 estimated proforma* 2022 REVENUE 2022 OMDA €4,364m +42 (20) €4,386m €1,133m +8 (26) €1,115m 26.0% 25.4% 2022 Estimated scope TSS 2022 2022 Estimated scope TSS 2022 Reported impact disposal impacts estimated Reported impact disposal impacts estima
Slide 25: FY 2023 guidance
FY 2023 guidance Fully in the trajectory of Worldline 3-year plan 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 FY 2022 results | 21-02-2023 | © Worldline | 25
Slide 26: FY'22 results Key take-aways
FY’22 results Key take-aways Gilles Grapinet Group CEO FY 2022 results | 21-02-2023 | © Worldline | 26
Slide 27: 2023 priorities
2023 priorities Sustain growth momentum Improve operating leverage Leveraging constantly improved competitive positioning Benefitting from steady growth, integration and scale 2023 focus Execute products roadmap Pursue market consolidation Enriching and differentiating Worldline value proposition Ex
Slide 28: Q&A
Q&A FY 2022 results | 21-02-2023 | © Worldline | 28
Slide 29: Appendices
Appendices FY 2022 results | 21-02-2023 | © Worldline | 29
Slide 30: 2022 estimated proforma
2022 estimated proforma Estimated proforma revenue In € million Q1 Q2 H1 Q3 Q4 H2 2022 Merchant Services 677 757 1 434 823 829 1 653 3 086 Financial Services 222 235 457 241 260 500 958 Mobility & e-Transactional Services 85 88 172 81 89 170 343 Worldline 984 1 079 2 063 1 145 1 178 2 323 4 386 Esti
Slide 31: 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 FY 2022 results | 21-02-2023 | © Worldline | 31