Nexi S.p.a. · MIL:NEXI
Nexi — FY2023 Earnings Presentation
28 slides from Nexi's earnings presentation, Mar 7, 2024
Slide 1: FY23 Results Presentation
This content is classified as Internal FY23 Results Presentation March 7th, 2024
Slide 2: Disclaimer
This content is classified as Internal Disclaimer ▪ This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on
Slide 3: Key messages
This content is classified as Internal Key messages Continued y/y volume growth Continued top-line growth, strong Strong cash generation enabling in all geographies in 4Q23 margin expansion and cash generation 500 €M share buy-back program ▪ Sustained mid-single digit y/y volume ▪ Revenue growth at
Slide 4: Continued volume growth in 4Q23 across all geographies despite overall macro weakness
This content is classified as Internal Continued volume growth in 4Q23 across all geographies despite overall macro weakness High impact consumption Basic consumption Discretionary consumption Total Net of discontinued clients due to optimised risk profile Delta vs 20192 +24% +30% --- Italian Cards
Slide 5: Merchant Solutions: key business update
This content is classified as Internal Merchant Solutions: key business update FY23 TRX Value Key Business Highlights Examples of recent 62%1 ▪ Continued growth of terminals installed base across all markets customer wins & upsells ▪ Advanced digital propositions with strong sales performance, with
Slide 6: Focus on FY23 results
This content is classified as Internal Focus on FY23 results
Slide 7: Solid Revenue and EBITDA growth with strong EBITDA margin expansion
This content is classified as Internal Solid Revenue and EBITDA growth with strong EBITDA margin expansion Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin 52% 53% 51% 52% + 139 bps + 146 bps +7.0% 3,361.7 3,143.2 +10.0% 1,751.8 1,592.0 +6.8% +9.7% 854.6 912.9 441.3 484.1 4Q22 4Q23 FY22
Slide 8: Merchant Solutions: continued revenue growth sustained by volumes
This content is classified as Internal Merchant Solutions: continued revenue growth sustained by volumes, despite challenging macro-economic environment Net Revenues (€M) Managed Transactions (#M) Key Highlights International +15.2% ▪ Sustained growth in value of 56%1 Schemes transactions across the
Slide 9: Issuing Solutions: continued revenue growth supported by sustained volumes
This content is classified as Internal Issuing Solutions: continued revenue growth supported by sustained volumes, acceleration of International Debit in Italy and projects Net Revenues (€M) Managed Transactions (#M) Key Highlights 32%1 International Schemes +14.7% ▪ Continued revenue growth support
Slide 10: Digital Banking Solutions: positive revenue performance in the quarter
This content is classified as Internal Digital Banking Solutions: positive revenue performance in the quarter sustained by volume growth and new initiatives Net Revenues (€M) Key Highlights ▪ 4Q23 y/y revenues growth sustained by volume growth and new initiatives 11%1 +1.8% ▪ Payments Infrastructure
Slide 11: Continued revenue growth across geographies in 4Q23
This content is classified as Internal Continued revenue growth across geographies in 4Q23 58%1 Italy 19%1 Nordics2 +7.5% 1,828.1 1,966.0 +4.3% +7.0% 628.6 +2.1% 602.4 504.3 539.4 159.5 162.8 4Q22 4Q23 FY22 FY23 4Q22 4Q23 FY22 FY23 10%1 13%1 DACH & Poland SE Europe & Other +8.2% +6.9% +9.6% 406.2 43
Slide 12: Solid cost performance thanks to operating leverage, cost control and synergies
This content is classified as Internal Solid cost performance thanks to operating leverage, cost control and synergies, notwithstanding inflationary pressure Total Costs (€M) Key Highlights Personnel Costs Operating Costs ▪ FY23 increase y/y due to volume, business growth and inflationary pressure:
Slide 13: Capex and Capex intensity going down despite continued investments
This content is classified as Internal Capex and Capex intensity going down despite continued investments to support quality, innovation and IT transformation Capital Expenditure1 (€M) Key Highlights Transformation Capex Ordinary Capex ▪ Continued reduction of total CapEx and % of FY22 % of FY23 Cap
Slide 14: Continued strong reduction of Integration and Transformation Costs
This content is classified as Internal Continued strong reduction of Integration and Transformation Costs Transformation and Bridge from FY 2023 transformation and integration costs to non-recurring items (€M) integration costs (€M) Integration costs Transformation costs -94.6 153.3 -24% -21.5 -65.0
Slide 15: Strong growth of excess cash generation in the year
This content is classified as Internal Strong growth of excess cash generation in the year Excess cash generation1 (€M) 1,729.7 -464.5 +27% y/y4 -202.6 ~500 €M -70.1 992.4 net of ~100 €M deferred taxes -249.7 -186.2 601.1 26.3 18.3 FY23 Reported Cash Capex Non-recurring ∆ NWC2 Operating Cash Taxes N
Slide 16: Net Financial Debt / EBITDA continued reduction
This content is classified as Internal Net Financial Debt / EBITDA continued reduction Net Financial Debt (€M) Key Highlights Dec 22 Mar 23 June 23 Sept 23 Dec 23 ▪ Overall “BB+/Ba1” rating (with positive outlook from S&P’s), following the 6th rating upgrade since January 2022 (3 in 2023), thanks to
Slide 17: 500 €M share buy-back program to be proposed to the Shareholders Meeting
This content is classified as Internal 500 €M share buy-back program to be proposed to the Shareholders Meeting Strategic rationale Key terms and next steps ▪ Our substantial existing cash balances and material current and expected cash ▪ Amount: up to 500 €M buy-back program generation growth creat
Slide 18: Closing remarks
This content is classified as Internal Closing remarks
Slide 19: 2024 Guidance and updated medium-term outlook
This content is classified as Internal 2024 Guidance and updated medium-term outlook 2024 Guidance Updated medium-term outlook1 Net Gradually re-accelerating from mid-single Mid-single digit y/y growth Revenues digit y/y growth Mid-to-high single digit y/y growth Continued EBITDA margin expansion by
Slide 20: Key messages
This content is classified as Internal Key messages Solid revenues growth with Strong expected Continued volume growth strong continued margin expansion cash generation growth in all geographies and cash generation growth enabling 500 €M share buy-back 2023 Guidance delivered despite challenging mac
Slide 21: Q&A
This content is classified as Internal Q&A
Slide 22: Annex
This content is classified as Internal Annex
Slide 23: Group normalised P&L at constant scope and FX
This content is classified as Internal Group normalised P&L at constant scope and FX Δ% vs. Δ% vs. FY22 FY23 4Q22 4Q23 €M FY22 4Q22 Merchant Solutions 1,753.9 1,888.6 +7.7% 468.9 497.9 +6.2% Issuing Solutions 1,013.0 1,090.1 +7.6% 274.7 300.8 +9.5% Digital Banking Solutions 376.3 383.0 +1.8% 111.1 1
Slide 24: Well diversified revenue base both in terms of business and geography
This content is classified as Internal Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets FY23 Revenues breakdown FY23 Costs breakdown by type By business By geography By type Merchant Solutions Installed based Italy Nordics
Slide 25: Bridge from Reported EBITDA to Normalised Net Profit
This content is classified as Internal Bridge from Reported EBITDA to Normalised Net Profit €M 1,729.7 -895.4 -210.9 711.8 -244.5 -0.7 1,459.0 -1,459.0 0.1 448.2 -136.7 22.1 -1,006.0 FY23 D&A Interest Non Taxes & FY23 At constant D&A ∆ Interest Non ∆ Taxes Net profit FY23 Reported Expenses recurring
Slide 26: Debt maturities as at 4Q23
This content is classified as Internal Debt maturities as at 4Q23 Nexi Group Debt Maturity Schedule1 (€M) Senior Notes Term Loans 1,976 Convertible Notes 1,050 1,400 900 756 1,000 1,050 926 696 507 500 60 2023 2024 2025 2026 2027 2028 2029 Note: (1) Expressed at nominal value, excludes the other M/L
Slide 27: Making digital payments a driver of progress as an ESG champion
This content is classified as Internal Making digital payments a driver of progress as an ESG champion TOP OF MIND ESG Digital Payments as a driver for progress…and clear commitment as an ESG champion RECOGNITIONS 2023 Focus Areas Target 2025 Progress 2023 Social Progress, Digitization and Inclusion
Slide 28: Investor Relations
This content is classified as Internal Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com