Slide 1: Western Union First Quarter 2011 Earnings Webcast & Conference Call
Western Union First Quarter 2011 Earnings Webcast & Conference Call April 26, 2011 Exhibit 99.2
Slide 2: Mike Salop, Senior Vice President, Investor Relations
Mike Salop Senior Vice President, Investor Relations * * * * * * * * *
Slide 3: Hikmet Ersek, President & Chief Executive Officer
Hikmet Ersek President & Chief Executive Officer * * * * * * * * *
Slide 4: Q1 Highlights
Q1 Highlights Total revenue increased 4% Strong trends continue in C2C 5% revenue growth, reported and constant currency Domestic money transfer revenue increased 8% Bill Payments Revenue decline moderated to -2% Margins improved versus Q4 Business Solutions revenue grew 13% Good Start to 2011 Note:
Slide 5: Electronic Channels & Prepaid Q1 Highlights
Electronic Channels & Prepaid Q1 Highlights Account-based money transfer Over 35% transaction growth Agreements in place with over 45 banks globally Westernunion.com Over 40% transaction growth in international markets Transactions increased by over 15% globally Mobile 16 agreements in place Over 85
Slide 6: Go To Market Leadership
Go To Market Leadership • Consumer Money Transfer and Bill Payments • Global Sales and Network Management • New Products and Services • Business Solutions • Electronic Channels • Stored Value Programs • Global Marketing • Communications and Social Responsibility David Yates EVP & President Business
Slide 7: Scott Scheirman, Executive Vice President & Chief Financial Officer
Scott Scheirman Executive Vice President & Chief Financial Officer * * * * * * * * *
Slide 8: Revenue
Revenue $256 $238 $966 $988 ($ in millions) $1,233 $1,283 Note: See appendix for reconciliation of Non-GAAP to GAAP measures. Consolidated revenue up 4%, reported and constant currency Transaction fees increased 3% Foreign exchange revenue increased 8% $29 $29 Q1 2010 Q1 2011 Transaction Fee Foreign
Slide 9: C2C Remittance Trends
C2C Remittance Trends +7% C2C Transactions (millions) Note: See appendix for reconciliation of Non-GAAP to GAAP measures. C2C Revenue growth 5%, reported and constant currency Total Q1 Western Union cross- border principal of $17 billion Increased 7% on a reported basis Increased 6% constant currenc
Slide 10: Consumer-to-Consumer: Europe, Middle East, Africa, S. Asia
Consumer-to-Consumer Revenue Transactions Q1 2011 2% 4% Europe, Middle East, Africa, S. Asia 43% of Western Union revenue Europe constant currency revenue trends similar to Q4 India grew revenue 8% and transactions 6% Completed acquisition of super-agent, Angelo Costa, earlier this month
Slide 11: Consumer-to-Consumer: Americas
Consumer-to-Consumer Revenue Transactions Americas 6% 8% 32% of Western Union revenue Domestic money transfer grew revenue 8% and transactions 21% Mexico grew revenue and transactions 1% Signed US Bank to account based money transfer Q1 2011
Slide 12: Consumer-to-Consumer: Asia Pacific
Consumer-to-Consumer Revenue Transactions Asia Pacific 14% 11% 9% of Western Union revenue Many markets contributing to growth China grew revenue 12% and transactions 5% Signed China Construction Bank Q1 2011
Slide 13: C2C Transaction and Revenue Growth
C2C Transaction and Revenue Growth +7% +5% +5% Note: See appendix for reconciliation of Non-GAAP to GAAP measures. Transaction Growth Price Reductions Other Mix Constant Currency Revenue Growth Currency Impact Reported Revenue Growth Q1 2011
Slide 14: Global Business Payments
Global Business Payments Revenue Transactions Global Business Payments 0% 8% 14% of Western Union revenue Bill payments revenue decline moderated to -2% Business Solutions grew revenue 13% Q1 2011
Slide 15: Operating Margin – Q1 2011
Operating Margin – Q1 2011 Note: See appendix for reconciliation of Non-GAAP to GAAP measures GAAP Excluding Restructuring (1) Q1 2011 consolidated operating margin excludes restructuring charges Operating margin excluding restructuring, +70 basis points • Revenue leverage • Other efficiencies, incl
Slide 16: C2C Operating Margin
C2C Operating Margin C2C 84% of total company revenue Operating Margin +120 basis points YoY Improvement due to the same factors as for consolidated margin
Slide 17: Global Business Payments Operating Margin
Global Business Payments Operating Margin GBP 14% of total company revenue Operating margin: vs. Prior Year Revenue declines and mix shifts in U.S. bill payments Investments in Business Solutions vs. Prior Quarter Lower integration expenses in Business Solutions Restructuring savings and other cost
Slide 18: Financial Strength
Financial Strength Q1 2011 Cash Flow from Operations $252 million Capital Expenditures $22 million Stock Repurchases $525 million Dividends Paid $45 million Cash Balance, March 31, 2011 $2.2 billion Debt Outstanding, March 31, 2011 $3.6 billion
Slide 19: 2011 Outlook
2011 Outlook Note: See appendix for reconciliation of Non-GAAP to GAAP measures. Constant currency revenue in the range of 3% to 4% GAAP revenue growth similar to constant currency GAAP operating margin of approximately 26% Operating margin of approximately 27%, excluding restructuring charges GAAP
Slide 20: Questions & Answers
Questions & Answers * * * * * * * * *
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q10 2Q10 3Q10 4Q10 FY2010 1Q11 Consolidated Metrics Revenues, as reported (GAAP) 1,232.7 $ 1,273.4 $ 1,329.6 $ 1,357.0 $ 5,192.7 $ 1,283.0 $ Foreign currency translation impact (a) (20.0) 16.1 22.2 18.5 36.8 2.3 Revenues, constant currency adjusted 1,212.7 $ 1,28
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q10 2Q10 3Q10 4Q10 FY2010 1Q11 Consumer-to-Consumer Segment Revenues, as reported (GAAP) 1,030.2 $ 1,073.1 $ 1,128.3 $ 1,151.8 $ 4,383.4 $ 1,078.1 $ Foreign currency translation impact (a) (21.9) 15.0 21.2 18.0 32.3 2.2 Revenues, constant currency adjusted 1,008.
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2011 EPS Outlook EPS guidance (GAAP) ($ - dollars) 1.41 $ 1.46 $ Impact from restructuring and related expenses, net of income tax benefit (b) ($ - dollars) 0.06 0.06 EPS guidance, restructuring adjusted ($ - dollars) 1.47 $ 1.52 $ 2011 Operating Income Margin Out