Nexi S.p.a. · MIL:NEXI
Nexi — H1 2024 Earnings Presentation
29 slides from Nexi's earnings presentation, Aug 1, 2024
Slide 1: 1H24 Results Presentation
This content is classified as Internal 1H24 Results Presentation July 31st, 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 delivery of growth and Shaping Nexi for Creating value for our Shareholders margin expansion future profitable growth ▪ Revenue growing at +5.9% vs 1H23; ▪ Group strategy execution progressing well ▪ Continued progress on de-leveraging, w
Slide 4: Operating leverage and cash leverage
This content is classified as Internal Accelerating cash generation by compounding growth, operating leverage and cash leverage 2024 Guidance 1H24 results Revenues Operating leverage Mid-single digit y/y growth +6% y/y Opex Mid-to-high single digit y/y growth +8% y/y, EBITDA EBITDA margin expansion
Slide 5: Strong cash generation allows to reduce debt and return capital to shareholders
This content is classified as Internal Strong cash generation allows to allocate capital to reduce debt and materially return capital to shareholders at the same time Excess cash (cash generated already net of organic growth investments) 1 2 3 Debt and leverage reduction Return to shareholders M&A C
Slide 6: Capital allocation: progress in 1H24
This content is classified as Internal Capital allocation: progress in 1H24 Excess cash generation in 1H24: 383 €M (+42% y/y) (cash generated already net of organic growth investments) Capital 1 2 3 allocation strategy Debt and leverage reduction Return to shareholders M&A ▪ Net debt/EBITDA down to
Slide 7: Focus on 1H24 results
This content is classified as Internal Focus on 1H24 results
Slide 8: Solid Revenue and EBITDA growth, with continued margin expansion
This content is classified as Internal Solid Revenue and EBITDA growth, with continued margin expansion Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin 52% 53% 49% 50% + 84 bps + 97 bps +5.9% 1,660.5 1,568.5 +8.0% 827.1 766.1 +5.8% +7.5% 830.9 878.9 432.9 465.4 2Q23 2Q24 1H23 1H24 2Q23
Slide 9: Merchant Solutions: continued growth supported by volumes, customers and e-commerce
This content is classified as Internal Merchant Solutions: continued growth supported by volumes, customer base expansion and e-commerce Net Revenues (€M) Managed Transactions (#M) Key Highlights International +12.9% ▪ Sustained volume growth across the 57%1 Schemes Group, driven by International sc
Slide 10: Issuing Solutions: continued growth supported by international schemes
This content is classified as Internal Issuing Solutions: continued growth supported by international schemes despite lower contribution from projects versus last year Net Revenues (€M) Managed Transactions (#M) Key Highlights 32%1 International Schemes +13.7% ▪ Sustained growth in managed transacti
Slide 11: Digital Banking Solutions: continued revenue growth thanks to volumes
This content is classified as Internal Digital Banking Solutions: continued revenue growth thanks to volumes despite lower projects than last year Net Revenues (€M) Key Highlights ▪ Revenue growth supported by volumes despite lower projects than last year 11%1 ▪ Instant Payments: continued volumes +
Slide 12: Continued revenue growth across geographies in 1H24
This content is classified as Internal Continued revenue growth across geographies in 1H24 59%1 Italy 18%1 Nordics2 +6.0% 921.0 976.3 +5.9% +2.0% 517.9 +1.7% 293.6 489.1 288.0 151.7 154.3 2Q23 2Q24 1H23 1H24 2Q23 2Q24 1H23 1H24 10%1 14%1 DACH & Poland SE Europe & Other +8.4% +7.4% +8.9% 228.4 +10.6%
Slide 13: 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 ▪ Cost actions and synergies limiting cost growth notwithstanding volume, busi
Slide 14: Capex and Capex intensity decreasing
This content is classified as Internal Capex and Capex intensity decreasing despite continued investments to support quality, innovation and IT transformation Capital Expenditure1 (€M) Key Highlights % of 1H23 net revenues % of 1H24 net revenues ▪ Continued reduction of total Capex and Capex intensi
Slide 15: 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 1H 2024 transformation and integration costs to non-recurring items (€M) integration costs (€M) Integration costs Transformation costs -33.5 ~-31 €M -3.3 cash comp
Slide 16: Strong growth of excess cash generation in 1H24
This content is classified as Internal Strong growth of excess cash generation in 1H24 Excess cash generation1 (€M) 827.2 -192.7 -88.4 -32.3 513.7 +42% y/y -19.2 -99.0 383.4 -12.1 1H24 Reported Cash Capex Non-recurring ∆ NWC2 Operating Cash Taxes Net Cash Other Cash Excess Cash EBITDA cash items Cas
Slide 17: Net Financial Debt / EBITDA at 2.8x including share buy-back impact
This content is classified as Internal Net Financial Debt / EBITDA at 2.8x including share buy-back impact in 1H24 Net Financial Debt (€M) Key Highlights ▪ ~219.6 €M Nassa Topco Notes reimbursed at June 23 Sept 23 Dec 23 Mar 24 Jun 24 maturity in 2Q24. Next maturities to be repaid: ~536 €M in 4Q24 a
Slide 18: Closing remarks
This content is classified as Internal Closing remarks
Slide 19: 2024 Guidance confirmed
This content is classified as Internal 2024 Guidance confirmed Net Mid-single digit y/y growth Revenues Mid-to-high single digit y/y growth EBITDA EBITDA margin expansion of 100bps+ Excess cash More than 700 €M generated1 Decreasing to below 2.9x EBITDA including announced M&A and Net leverage share
Slide 20: Key messages
This content is classified as Internal Key messages Continued delivery of growth and Shaping Nexi for Creating value for our Shareholders margin expansion future profitable growth ▪ Revenue growing at +5.9% vs 1H23; ▪ Group strategy execution progressing well ▪ Continued progress on de-leveraging, w
Slide 21: Q&A
This content is classified as Internal Q&A
Slide 22: Annex
This content is classified as Internal Annex
Slide 23: Merchant Solutions: key business update
This content is classified as Internal Merchant Solutions: key business update 1H24 TRX Value Key Business Highlights Examples of recent 60%1 • Continued growth of terminals installed base2 across markets, led by Italy and DACH customer wins & upsells • Strong commercial performance in Italy, suppor
Slide 24: Group normalised P&L at constant scope and FX
This content is classified as Internal Group normalised P&L at constant scope and FX 1H23 1H24 Δ% vs. 1H23 2Q23 2Q24 Δ% vs. 2Q23 €M Merchant Solutions 881.1 942.8 +7.0% 471.1 505.0 +7.2% Issuing Solutions 513.2 539.4 +5.1% 268.4 281.8 +5.0% Digital Banking Solutions 174.2 178.3 +2.4% 91.4 92.0 +0.7%
Slide 25: 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 1H24 Revenues breakdown 1H24 Costs breakdown by type By business By geography By type Merchant Solutions Installed based Italy Nordics
Slide 26: Bridge from Reported EBITDA to Normalised Net Profit
This content is classified as Internal Bridge from Reported EBITDA to Normalised Net Profit €M 827.2 -445.8 -70.0 -124.7 300.6 -14.5 203.3 -203.3 214.5 -86.0 -0.1 -32.6 1H24 D&A Interest Non Taxes & 1H24 At constant D&A Non ∆ Taxes Net profit 1H24 Reported Expenses recurring Minorities Reported scop
Slide 27: Bridge from excess cash to cash flow of the period
This content is classified as Internal Bridge from excess cash to cash flow of the period €M o/w ~220 €M Nassa TopCo 383 notes reimbursed -249 Share buy-back -118 o/w ~31 €M Sparkasse book acquisition -35 -19 1H24 Excess Cash Δ Debt Δ Equity Net M&A Cash Flow of the period 27
Slide 28: Debt maturities as of 1H24
This content is classified as Internal Debt maturities as of 1H24 Nexi Group Debt Maturity Schedule1 (€M) Senior Notes Term Loans 1,976 Convertible Notes 1,050 1,400 900 536 1,000 1,050 926 476 507 500 60 2024 2025 2026 2027 2028 2029 Note: (1) Expressed at nominal value, excludes the other M/L T fi
Slide 29: Investor Relations
This content is classified as Internal Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com