Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q4 2023 Earnings Presentation
38 slides from Western Union Company (the)'s earnings presentation, Feb 6, 2024
Slide 1: Fourth Quarter & Full Year 2023 Financial Results
Fourth Quarter & Full Year 2023 Financial Results February 6, 2024 Classification: Western Union Confidential
Slide 2: Tom Hadley, VP of Investor Relations
Western Union Tom Hadley Vice President of Investor Relations 2 Classification: Western Union Confidential
Slide 3: Forward-Looking Statements
Western Union Forward-Looking Statements 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 assumpti
Slide 4: Devin McGranahan, President & CEO
Western Union Devin McGranahan President & CEO 4 Classification: Western Union Confidential
Slide 5: Evolve 2025 Driving Transaction Improvements
Western Union Evolve 2025 Driving Transaction Improvements Consumer Money Transfer Corridor Transaction Trends +5% Q4 2023 Consumer Money Transfer transactions +13% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Q4 2023 Branded Digital transactions US to Mexico France to Africa World to Philippines 5 Class
Slide 6: Fourth Quarter Results
Western Union Fourth Quarter Results $1.05 billion GAAP revenue 15.1% 16.1% GAAP operating margin Adjusted operating margin* $0.35 $0.37 GAAP EPS Adjusted EPS* 6 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures. Classification: Western Union Confidential
Slide 7: Evolve 2025 Strategy
Western Union Evolve 2025 Strategy • Digital first customer • Digital first customer experiences experiences • Scalable marketing driven • Remittance-led offering customer acquisition • Expanded set of accessible • Retail to digital escalator products and services Deliver Accelerate digital accessib
Slide 8: Retail as the Gateway to Western Union
Western Union Retail as the Gateway to Western Union Consumer Money Transfer Retail Transaction Growth1 0.2% -0.1% -2.4% -3.6% -5.7% 4Q22 1Q23 2Q23 3Q23 4Q23 8 1 Excludes the impact related to the Company’s suspension of operations in Russia and Belarus and the impact from Iraq Classification: Weste
Slide 9: Optimizing Our Network
Western Union Optimizing Our Network 4.6 billion +200 Bank Accounts for Payout New Concept Stores in 2023 400K +100 Active Retail Locations New Owned Stores in 2023 200+ ~30K Countries & Territories Retail Locations Rebranded in 2023 12 countries 130+ Currencies Live with Next Gen Digital App Experi
Slide 10: Operational Excellence Enhancing Customer Experience
Western Union Operational Excellence Enhancing Customer Experience Customer Self-service tools Engagement Customer Retention Automation Lifetime Value Best-in-class platforms 10 Classification: Western Union Confidential
Slide 11: Go-to-Market Strategy
Western Union Go-to-Market Strategy Having the right go-to-market strategy Technology driving improved transaction trends in APAC APAC Transaction Growth 6% 1% Distribution Product 0% -2% -11% -11% -12% Customer & Agent -13% Experience 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 11 Classification: Weste
Slide 12: Delivering Accessible Financial Services
Western Union Delivering Accessible Financial Services Bill Payment Digital Wallet FX Exchange Lending Partnerships Prepaid Card Retail Money Order 12 Classification: Western Union Confidential
Slide 13: Leveraging AI to Enhance Operational and Business Performance
Western Union Leveraging AI to Enhance Operational and Business Performance • Robotic processing automation already utilized in areas such as agent collections and reactivation, customer refund processing, risk exception decisioning, agent credit increases, and receiver name changes • Early in AI jo
Slide 14: Western Union and Visa Expand Strategic Relationship
Western Union Western Union and VISA Expand Strategic Relationship Enabling further collaboration between the two companies across 40 countries and 5 regions 14 Classification: Western Union Confidential
Slide 15: Millions of Loyal Customers, Trusted Brand, Vast Global Network
Western Union Millions of Loyal Customers Trusted Brand Vast Global Network Dedicated Team 15 Classification: Western Union Confidential
Slide 16: Matt Cagwin, Chief Financial Officer
Western Union Matt Cagwin Chief Financial Officer 16 Classification: Western Union Confidential
Slide 17: Business Trends
Business Trends +4% 19.6% Adjusted Revenue Growth* Adjusted Operating Margin* FY 2023 FY 2023 9% 1200 12% 7% 1150 10% 8% 1100 3% 6% 1050 4% -1% 1000 2% 950 0% 20.5% 21.8% 19.6% -2% 15.8% 16.1% -6% 900 -4% 850 -6% 800 -8% 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 GAAP $1,092 $1,037 $1,170 $1,
Slide 18: Consumer Money Transfer (CMT) Business Trends
Western Union Consumer Money Transfer (CMT) Business Trends Key Highlights Branded • Branded Digital business showing continued momentum after Digital reaching positive revenue growth in Q3 % of Q4 2023 CMT Retail • Maintained stable transaction trends in the Retail business for Revenue the second c
Slide 19: Consumer Services
Western Union Consumer Services Consumer Services Highlights • Revenue increased 13% in 2023 Consumer Services Revenue (M) • Revenue declined 1% in Q4 impacted by the devaluation of the Argentine peso and the retail money order portfolio 77 83 83 79 77 • Includes ecosystem revenue streams from bill
Slide 20: Disciplined Cost Management Funding Investments
Western Union Disciplined Cost Management Funding Investments Cost savings driving… Incremental Investments Talent Reallocation Ecosystem Initiatives Technology Point of Sale Marketing Controlled Distribution >$50 Call Center million Real Estate saved in 2023 20 Classification: Western Union Confide
Slide 21: Financial Highlights
Western Union Financial Highlights YTD as of December 31, 2023 Edit text Cash flow from operations $783 million Adjusted free cash flow conversion >100% Dividends paid $346 million Share repurchases $300 million Capital expenditures $148 million Cash balance $1.27 billion Debt outstanding $2.50 bill
Slide 22: 2024 Financial Outlook
Western Union 2024 Financial Outlook Revenue (M) Operating margin EPS GAAP $4,075 to $4,175 18% to 20% $1.57 to $1.67 Adjusted* $4,100 to $4,200 19% to 21% $1.65 to $1.75 22 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures. Classification: Western Union Confidential
Slide 23: Key Drivers
Western Union Key Drivers Previous Key Drivers Updated Key Drivers for 2024 Key Driver Aspirations 2023 Results Key Driver Aspirations Increase retention in Increase retention in +200 bps annually +70 bps Retail and Branded +200 bps annually Retail Digital No longer reporting, but Over 20% growth in
Slide 24: Questions and Answers
Western Union Questions and Answers 24 Classification: Western Union Confidential
Slide 25: Appendix
Western Union Appendix Fourth Quarter 2023 25 Classification: Western Union Confidential
Slide 26: Key Statistics and Reconciliation of Non-GAAP Measures
Western Union Key Statistics and Reconciliation of Non-GAAP Measures Western Union’s management believes the non-GAAP financial A non-GAAP financial measure should not be considered in measures presented within this presentation provide meaningful isolation or as a substitute for the most comparable
Slide 27: Western Union
Western Union 27 Classification: Western Union Confidential
Slide 28: Western Union
Western Union 28 Classification: Western Union Confidential
Slide 29: Western Union
Western Union 29 Classification: Western Union Confidential
Slide 30: Western Union
Western Union 30 Classification: Western Union Confidential
Slide 31: Western Union
Western Union 31 Classification: Western Union Confidential
Slide 32: Western Union
Western Union 32 Classification: Western Union Confidential
Slide 33: Western Union
Western Union 33 Classification: Western Union Confidential
Slide 34: Western Union
Western Union 34 Classification: Western Union Confidential
Slide 35: Western Union
Western Union 35 Classification: Western Union Confidential
Slide 36: Western Union
Western Union 36 Classification: Western Union Confidential
Slide 37: Western Union
Western Union 37 Classification: Western Union Confidential
Slide 38: Thank you.
Thank you. ©2024 Western Union Holdings, Inc. All rights reserved Classification: Western Union Confidential
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