Nexi S.p.a. · MIL:NEXI
Nexi — Q1 2021 Earnings Presentation
31 slides from Nexi's earnings presentation, May 13, 2021
Slide 1: 1Q 2021 Results Presentation
nexi 1Q 2021 Results Presentation May 13th, 2021 1
Slide 2: Disclaimer
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 a number of assumptions, expectations,
Slide 3: Key messages
Key messages Clear recent Continued progress Growth performance in Q1 volume acceleration in creating the ahead of expectations after COVID-19 3rd wave European PayTech leader Continued strong performance Revenues +4.1% vs 1Q20 Strong Nets and SIA standalone in Basic consumption sector (+5.3%
Slide 4: Executive Summary
Executive Summary Covid-19 update Transaction volumes (acquiring + issuing) at 99 €B in 1Q21, +1.1% vs 1Q20 and -7.0% vs 1Q19, despite difficult comparison with strong January and February 2020 and non-expected Covid-19 third wave from March 2021. Steady recovery in transaction volumes since mid-J
Slide 5: Executive Summary
Executive Summary Results highlights Revenues at 258.6 €M, +4.1% y/y in 1Q21, better than expected, and +5.3% vs 1Q19 EBITDA at 139.8 €M, +2.0% y/y in 1Q21, better than expected, and +9.2% vs 1Q19 Key business update Merchant Services & Solutions (50% of Revenues): confirmed strong demand of a
Slide 6: Transaction volumes rapidly recovering since mid-April after easing of restrictions
Transaction volumes rapidly recovering since mid-April after the easing of restrictions for Covid-19 third wave Total Acquiring and Issuing volumes - 7-days rolling % change Y/Y +36% y/y +63% y/y March ‘21 April ‘21 10 5% 9% 6% 5% 2% 3% 5 0% -2% -1% -3% -3% 0 2% -3% -4% -6% -3% -5 -4% -2% -5% -2% -3
Slide 7: Visible acceleration of Italian Cards acquiring volumes after mid-March slow-down
Visible acceleration of Italian Cards acquiring volumes after the slow-down in mid-March due to restrictions for Covid-19 third wave Acquiring sales volumes – Italian Cards vs Foreign Cards – Y/Y trend Italian Cards Foreign Cards Total % change vs 2019 from week 15-21 Feb 30 21% 20 7% 11% 10% 10% 8%
Slide 8: Double digit growth in Basic consumption and strong recovery in Discretionary
Double digit growth and acceleration in Basic consumption and strong recovery in Discretionary spending. Strong E-Commerce growth net of high impact category Acquiring volumes by category1 Product category % change Y/Y % change vs 2019 2 FY20 Jan Feb Mar 1Q21 Apr LWR Basic consumption 16% 25% 14% 42
Slide 9: Continued strong trend in Basic category and fast recovery in Discretionary spend
Continued strong trend in Basic category and fast recovery in Discretionary spend until mid-March and after the easing of restrictions for Covid-19 third wave Acquiring sales volumes trend by consumption category – Y/Y trend % change vs 2019 from week 15-21 Feb Total High Impact Consumption Basic Co
Slide 10: Acceleration of digital payments penetration in non-COVID affected sectors
Visible signals of acceleration of digital payments penetration in non-COVID affected sectors and less affected areas in the Country Digital payments Y/Y volumes for Italian cards: Italian cards volumes trend by From January 11th Focus on Grocery category “Covid areas”1 to March 28th Net of high imp
Slide 11: Focus on 1Q21 Results
Focus on 1Q21 Results od N VAL
Slide 12: Revenue and EBITDA growth better than expected
Revenue and EBITDA growth better than expected. Continued Operating leverage highlighted by performance versus 2019 Net Revenues (€M) EBITDA (€M) Margin 52% 55% 54% +5.3% +9.2% +4.1% +2.0% 258.6 137.0 139.8 245.5 248.5 128.1 1Q19 1Q20 1Q21 1Q19 1Q20 1Q21 12
Slide 13: Merchant Services & Solutions: resilient Revenue performance
Merchant Services & Solutions: resilient Revenue performance despite comparison with strong January-February 2020 and Covid-19 third wave Net Revenues (€M) Managed Transactions (#M) Key Highlights International +2.5% Continued growth of large merchants’ 50%1 +2.6% Schemes +5.2% demand for omnichan
Slide 14: Cards & Digital Payments: strong Revenue performance
Cards & Digital Payments: strong Revenue performance sustained by installed base growth and volumes, despite Covid-19 third wave Net Revenues (€M) Managed Transactions (#M) Key Highlights 38%1 International Schemes +10.9% +13.4% ~+8% y/y revenues from installed vs 1Q19 base (>60% of total revenues
Slide 15: Digital Banking Solutions: Revenue acceleration
Digital Banking Solutions: Revenue acceleration supported by banks’ M&A related projects, on top of underlying confirmed business growth trend Net Revenues (€M) Key Highlights 12%1 +13.1% Self banking: completed roll-out of vs 1Q19 new platform on all existing customers. Good progress on new custo
Slide 16: Continued strong cost control with total costs substantially flat versus 2019
Continued strong cost control with total costs substantially flat versus 2019 despite one off project-related costs Total Costs (€M) Key Highlights Personnel Costs Operating Costs Comparison with 2020 affected by 100+ €M cash +1.2% cost containment plan in place in 2020 to +6.6% mitigate Covid-19
Slide 17: Net Financial Debt / EBITDA down at 3.2x
Net Financial Debt / EBITDA down at 3.2x Net Financial Debt (€M) Dec 19 Mar 20 June 20 Dec 20 Mar 21 Gross Financial Debt 1,840 1,843 2,741 2,781 3,648 Cash 248 307 316 499 1,591 Cash Equivalents 1 123 116 118 149 154 Net Financial Debt 1,470 1,420 2,307 2,133 1,904 Net Financial Debt / EBITDA (€M)
Slide 18: Refinancing of Nets and SIA debt already executed
Refinancing of Nets and SIA debt already successfully executed. Overall debt tenor extension and significant reduction in the cost of debt Senior Notes Term Loan Convertible Notes Debt Structure1 New Debt maturity schedule (€M)1 2.3% WACD 2 2.1% 2.1% 25% Previous 25% 825 1.9% 1.7% WACD 2 50% 1,000 1
Slide 19: ISP Merchant Services partnership extended to former UBI book
ISP Merchant Services partnership extended to former UBI book Key components of the partnership extension Key Figures Acquisition of UBI Merchant acquiring business incorporated in Intesa KPIs 2020 Sanpaolo after the acquisition of UBI by Intesa Sanpaolo and post carve- out of UBI’s branches to BP
Slide 20: Continued progress in creating the European PayTech leader
Continued progress in creating the European PayTech leader Nets SIA 1Q21 Standalone Underlying Revenues1 at 230 €M, -3.0% y/y Revenues at 182 €M, +9.0% y/y performance Underlying EBITDA1 at 60 €M, -10.3% y/y EBITDA at 63 €M, +8.6% y/y EGM approval obtained on March 3rd, 2021 Filing to It
Slide 21: 2021 Ambition raised to high single digit/double digit Revenue growth
2021 Ambition raised to high single digit/double digit Revenue growth, despite unexpected Covid-19 third wave 2021 Ambition (Feb ‘21) 2021 Revised Ambition Assuming gradual recovery from Covid-19 in 1H21 Assuming accelerated recovery from Covid-19 and broadly in line with the current trajectory: cur
Slide 22: Key messages
Key messages Clear recent Continued progress Growth performance in Q1 volume acceleration in creating the ahead of expectations after COVID-19 3rd wave European PayTech leader Continued strong performance Revenues +4.1% vs 1Q20 Strong Nets and SIA standalone in Basic consumption sector (+5.3%
Slide 23: Q&A
Q&A 23
Slide 24: Annex
Annex 24
Slide 25: P&L 1Q20 1Q21
P&L Δ% vs. Δ% vs. 1Q20 1Q21 €M 1Q20 1Q19 Merchant Services & Solutions 128.3 128.3 +0.0% +2.6% Cards & Digital Payments 92.6 99.3 +7.2% +6.8% Digital Banking Solutions 27.6 30.9 +12.2% +13.1% Revenues 248.5 258.6 +4.1% +5.3% Personnel & related expenses (40.6) (44.8) +10.3% +5.8% Operating Costs (70
Slide 26: Acquiring sales volumes – Italian Cards vs Foreign Cards
Acquiring sales volumes – Italian Cards vs Foreign Cards Y/Y % Change Acquiring sales volumes – Italian Cards vs Foreign Cards – Y/Y trend Italian Cards Foreign Cards Total 260 239% 220 208% 170% 91% 187% 74% 88% 80 59% 60 41% 72% 40 7% 40% 34% 56% 20 6% 6% 6% 11% 10% 5% 5% 6% 6% 5% 5% 9% 12% 32% 2%
Slide 27: Acquiring sales volumes trend by consumption category
Acquiring sales volumes trend by consumption category Y/Y % Change Acquiring sales volumes trend by consumption category – Y/Y trend 379% 380 Total High Impact Consumption Basic Consumption Discretionary Consumption 360 328% 320 321% 300 280 273% 292% 240 220 174% 220% 147% 91% 74% 144% 80 51% 60 59
Slide 28: Acquiring sales volumes trend by consumption category
Acquiring sales volumes trend by consumption category Y/Y % Change Acquiring volumes by category1 Product category % change Y/Y 2 FY20 Jan Feb Mar 1Q21 Apr LWR Basic consumption 16% 25% 14% 26% 21% 20% 14% +13% 44% for 41% for E-commerce of which Physical 14% 24% 13% 25% 21% 21% 15% E-commerce of wh
Slide 29: Nets performance
Nets performance Underlying Revenues (€M)1 Merchant Services 67%2 Key Highlights Revenues, €M -3.0% -2.3% Better than expected Revenue and EBITDA performance, despite Covid- 237 230 157 154 19 restrictions in 1Q21 and limited lockdown in 1Q20, sustained by accelerated growth in E-Commerce (+40% y/
Slide 30: SIA performance
SIA performance Revenues (€M) Cards & Merchant Solutions 68%1 Key Highlights Revenues, €M +8.4% Resilient and diversified business +9.0% 124 model 182 114 167 1Q21 Revenue growth mainly driven by a strong increase in number of 1Q20 1Q21 transactions Digital Payment Solutions 20%1 1Q21 EBITDA g
Slide 31: Investor Relations
Investor Relations investor.relations@nexi.it Stefania Mantegazza stefania.mantegazza@nexi.it 31