Western Union Company (the) · NYSE:WU

Western Union Company (the) — The Western Union Company — Q1 2015 Earnings Presentation

23 slides from Western Union Company (the)'s earnings presentation, Apr 30, 2015

  1. Slide 1: First Quarter 2015 Earnings Webcast & Conference Call

    First Quarter 2015 Earnings Webcast & Conference Call April 30, 2015

  2. Slide 2: Mike Salop, Senior Vice President, Investor Relations

    Mike Salop Senior Vice President, Investor Relations Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 2

  3. Slide 3: Safe Harbor

    Safe Harbor This presentation contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to pred

  4. Slide 4: Hikmet Ersek, President & Chief Executive Officer

    Hikmet Ersek President & Chief Executive Officer Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 4

  5. Slide 5: Overview

    Overview Solid start to year in challenging economic environment  Each business segment delivered constant currency revenue growth  Earnings per share increased 5% to $0.39  Generated operating profit margin improvement and strong cash flow  Returned $231 million to shareholders through dividend

  6. Slide 6: Raj Agrawal, Executive Vice President & Chief Financial Officer

    Raj Agrawal Executive Vice President & Chief Financial Officer Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 6

  7. Slide 7: Revenue Q1

    Revenue Q1 ($ in millions) $1,351 $1,321  Consolidated revenue $34 decreased 2% on a reported $34 basis, or increased 4% $329 $338 constant currency*  Transaction fee revenue decreased 4% $988 $949  Foreign exchange revenue increased 3% Q1 2014 Q1 2015 Transaction Fee Foreign Exchange Other *Note

  8. Slide 8: Consumer-to-Consumer Q1

    Consumer-to-Consumer Q1  79% of Company revenue  Revenue decreased 4%, or increased 2% constant currency*  Total transactions increased 3%  Cross-border principal decreased 4%, or increased 2% constant currency* *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. Weste

  9. Slide 9: C2C Transaction and Revenue Analysis

    C2C Transaction and Revenue Analysis Q1 2015 *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 9

  10. Slide 10: Consumer-to-Consumer

    Consumer-to-Consumer Q1 2015 Constant Revenue Currency Transaction Growth/ Rev. Growth/ Growth/ % of Total Decline Regions Decline* Decline Revenue Europe and CIS -9% 2% 4% 20% North America -2% 0% 3% 19% Middle East and Africa -6% -1% -3% 16% Asia Pacific -6% -2% -4% 11% LACA 4% 10% 6% 8% westernun

  11. Slide 11: C2B and B2B Q1

    C2B and B2B Q1  Consumer-to-Business  12% of Company revenue  Revenue increased 7%, or 11% constant currency*  Business Solutions  7% of Company revenue  Revenue decreased 1%, or increased 7% constant currency* *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. West

  12. Slide 12: Operating Margin Q1

    Operating Margin Q1 30.0% 25.0% 20.1% 20.6% 20.0%  Operating margin increase 15.0% • Primarily due to cost savings initiatives, partially offset by 10.0% increased compliance expense 5.0% 0.0% Q1 2014 Q1 2015 *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. Western Uni

  13. Slide 13: C2C Operating Margin Q1

    C2C Operating Margin Q1 30.0% 25.0% 22.9% 23.1%  Operating margin increase 20.0% • Benefited from cost savings 15.0% initiatives, which were largely offset by increased compliance 10.0% expense 5.0% 0.0% Q1 2014 Q1 2015 Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 13

  14. Slide 14: C2B Operating Margin Q1

    C2B Operating Margin Q1 30.0% 25.0% 20.2% 20.0% 18.7%  Operating margin decrease 15.0% • Primarily due to increased legal and compliance expense 10.0% 5.0% 0.0% Q1 2014 Q1 2015 Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 14

  15. Slide 15: Business Solutions Operating Profit Q1

    Business Solutions Operating Profit Q1  Operating Profit  Operating profit of $2 million compared to an operating loss of $4 million in the prior year period  Depreciation and amortization of approximately $12 million in the current quarter, compared to $15 million in the prior year period  The

  16. Slide 16: Financial Strength

    Financial Strength Period Ended March 31, 2015 Cash Flow from Operations $212 million Capital Expenditures $44 million Stock Repurchases $150 million Dividends Paid $81 million Cash Balance, March 31, 2015 $1.8 billion Debt Outstanding, March 31, 2015 $3.7 billion Western Union | ©2015 Western Union

  17. Slide 17: 2015 Outlook

    2015 Outlook  Revenue – Low single digit constant currency revenue increase – Low to mid-single digit GAAP revenue decrease  Operating Profit Margin – Operating margin of approximately 21%  Earnings per Share – EPS in a range of approximately $1.58 to $1.65  Cash Flow – Cash flow from operating

  18. Slide 18: Questions & Answers

    Questions & Answers Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 18

  19. Slide 19: Appendix

    Appendix First Quarter 2015 Earnings Webcast & Conference Call April 30, 2015 Western Union | ©2015 Western Union Holdings, Inc. All Rights Reserved. 19

  20. Slide 20: Non-GAAP Measures

    Non-GAAP Measures Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding our operating results to assist management, investors, analysts, and others in understanding our financial results and to better analyze trends in our

  21. Slide 21: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures 1Q14 2Q14 3Q14 4Q14 FY2014 1Q15 Consolidated Metrics Revenues, as reported (GAAP) $ 1,350.8 $ 1,405.6 $ 1,440.9 $ 1,409.9 $ 5,607.2 $ 1,320.9 Foreign currency translation impact (a) 32.5 26.3 35.0 63.7 157.5 78.6 Revenues, constant currency adjusted $ 1,383.3 $ 1,

  22. Slide 22: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures 1Q14 2Q14 3Q14 4Q14 FY2014 1Q15 Consumer-to-Consumer Segment cont. Europe and CIS region revenue change, as reported (GAAP) 1% 3% 1% (5)% 0% (9)% Europe and CIS region foreign currency translation impact (a) (1)% (1)% 2% 6% 1% 11 % Europe and CIS region revenue ch

  23. Slide 23: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures 1Q14 2Q14 3Q14 4Q14 FY2014 1Q15 Consumer-to-Business Segment Revenues, as reported (GAAP) $ 147.2 $ 145.9 $ 150.4 $ 155.3 $ 598.8 $ 157.8 Foreign currency translation impact (a) 16.6 18.8 18.1 16.6 70.1 6.3 Revenues, constant currency adjusted $ 163.8 $ 164.7 $ 16

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