Worldline Sa · EURONEXT:WLN
Worldline Sa — H1 2021 Earnings Presentation
31 slides from Worldline Sa's earnings presentation, Jul 27, 2021
Slide 1: H1 2021 Results
H1 2021 RESULTS TUESDAY JULY 27, 2021 © Worldline
Slide 2: Disclaimer
DISCLAIMER This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These r
Slide 3: Highlights First Half 2021
HIGHLIGHTS FIRST HALF 2021 GILLES GRAPINET Chairman & CEO MARC-HENRI DESPORTES Deputy CEO Tuesday July 27th, 2021 | Worldline H1 2021 results | © Worldline
Slide 4: H1 2021 Highlights
H1 2021 HIGHLIGHTS SOLID H1 2021 RESULTS FY 2021 GUIDANCE IN LINE WITH FULL YEAR TRAJECTORY CONFIRMED Organic growth of 0.1% (10.1% in Q2’21) H1 2021 trends validating Worldline OMDA margin up 130 bps central scenario for strong organic growth in H2 50% OMDA conversion in FCF STRONG RECOVERY OF TRAN
Slide 5: H1 2021 Key Financial Highlights
H1 2021 KEY FINANCIAL HIGHLIGHTS PERFORMANCE SOLIDLY ON TRACK €2,272m revenues €531m OMDA €268m free cash-flow 0.1% organic growth 23.4% OMDA margin (+130 bps) 50.3% of OMDA €276m net income €0.96 diluted EPS* Group share* vs. €0.62 in H1’20 (+54.8%) 12.1% of revenues * Normalized figures adjusted f
Slide 6: Successful Strategic Developments Reinforcing Global Reach and Scale
SUCCESSFUL STRATEGIC DEVELOPMENTS REINFORCING WORLDLINE GLOBAL REACH AND SCALE AXEPTA Italy ▪ Acquisition of 92.5% of Cardlink in Greece, partnering ▪ Joint venture with BNL banking group through the with the CEO keeping 7.5% ownership acquisition of 80% of Axepta Italy (20% owned by BNL) ▪ Unique a
Slide 7: Acquisition of Handelsbanken Card Acquiring
ACQUISITION OF HANDELSBANKEN CARD ACQUIRING A STEP FURTHER TO OUR EUROPEAN EXPANSION An attractive payment market A compelling merchant acquiring activity ▪ Nordic regions offer a strong macro-economic backdrop with ▪ A pan-Nordic addressable market with exposure to the GDP growth among the stronges
Slide 8: Unmatched European Scale Expansion
UNMATCHED EUROPEAN SCALE EXPANSION WORLDLINE, THE KEY PAYMENT ECOSYSTEM ENABLER Worldline European expansion Meaningful scale over the last 18-month offering added growth opportunities ▪ Best-in class global omnichannel solutions ▪ for cross-border merchants with significant Worldline ▪ Ingenico pip
Slide 9: Transaction Volumes Strong Recovery with Economies Reopening
TRANSACTION VOLUMES STRONG RECOVERY WITH ECONOMIES REOPENING Q1’21 Q2’21 ▪ Strong adaptation of merchants over the past 12-month to face to potential restriction waves ▪ Volumes pick-up since March 2020 with the ease of restriction ▪ Acceleration of transaction volumes across the second quarter with
Slide 10: Commercial Activity: Q2 2021 Achievements
COMMERCIAL ACTIVITY FOCUS ON Q2 2021 ACHIEVEMENTS Merchant Services Financial Services ▪ Implementation of a user-friendly payment solution for Bofrost* ▪ Five-year agreement with Luminor Bank in the Baltics direct sales channel representing c.130 distribution drivers in o Contract covering the impl
Slide 11: Ingenico Integration Process: 2021 Synergies Roadmap
INGENICO INTEGRATION PROCESS 2021 SYNERGIES ROADMAP IN FULL MOTION ▪ Merger of headquarters ongoing and to be completed in Q4’21, and numerous other real estate convergence programs launched ▪ Deployment of successful internal mobility program, enabling reskilling of staff to new positions €66m posi
Slide 12: Results First Half 2021
RESULTS FIRST HALF 2021 ERIC HEURTAUX Group CFO Tuesday July 27th, 2021 | Worldline H1 2021 results | © Worldline
Slide 13: H1 2021 Financial Performance: Global Business Lines Overview
H1 2021 FINANCIAL PERFORMANCE GLOBAL BUSINESS LINES OVERVIEW H1’21 Group Revenue H1’21 Group Revenue / GBL In € million H1 2021 H1 2020* Organic Growth 7% Merchant Services 1,083 1,044 +3.8% 19% Financial Services 442 438 +0.8% 48% Terminals, Solutions & Services 579 627 -7.6% Mobility & e-Transacti
Slide 14: H1 2021 Revenue Building Blocks
H1 2021 REVENUE BUILDING BLOCKS Strong growth acceleration +18.6% +3.9% +1.6% +9.4% in Q2’21 +1,181 €2,270m (49) (5) 89 9 5 7 €2,272m (52) (1) Merchant Services accelerating strongly in Q2 -8.7% -2.4% -16.5% -0.6% fueled by transaction volumes recovery related to the reopening of economies Q2’21 +10
Slide 15: H1 2021 OMDA Building Blocks
H1 2021 OMDA BUILDING BLOCKS OMDA fueled by Q2’21 growth and synergies +190bps (80)bps +70bps +40bps €531m Merchant Services ability to deliver strong +60bps +255 €501m margin improvement (+190bps) benefiting from growth acceleration in Q2 and synergies 22.9% 28.8% 25.7% 14.8% Financial Services pro
Slide 16: Income Statement
INCOME STATEMENT In €M H1’21 H1’20 INCOME STATEMENT OMDA 531 246 ▪ Operating income impacted by Ingenico Operating Margin 394 165 consolidation (integration costs and customer & patent amortization) and ongoing SPS integration: Other operating income and expenses (250) (83) ▪ €51m of integration and
Slide 17: Free Cash-Flow
FREE CASH-FLOW In €M H1’21 H1’20 FREE CASH-FLOW ▪ Increase in OMDA contribution OMDA 531 246 Lease obligations (42) (20) ▪ €108m capex or 4.7%, set to pick-up in H2’21 with expected growth acceleration in the 5% to 6% Working capital change 58 28 range on a full year basis Capex (108) (65) ▪ Positiv
Slide 18: Net Debt Evolution
NET DEBT EVOLUTION In €M H1’21* H1’20* Net debt / (cash) as of January 1st 3,211 687 €268m positive effect from NET DEBT ▪ free cash-flow generation Free Cash-flow 268 132 ▪ €23m of capital increase related to the implementation of employee shareholding Acquisition net of disposals (7) 49 program BO
Slide 19: FY 2021 Revenue Scenario Reminder
FY 2021 REVENUE SCENARIO REMINDER H2 2021 UNDERLYING TRENDS FULLY CONFIRMED H2’2021 ▪ Severe governmental domestic restrictions during Q1’21 including lockdowns of non-essential merchants, curfew ▪ Ease of domestic restrictions with end of lockdowns for and borders’ restrictions non-essential mercha
Slide 20: Conclusion First Half 2021
CONCLUSION FIRST HALF 2021 GILLES GRAPINET Chairman & CEO Tuesday July 27th, 2021 | Worldline H1 2021 results | © Worldline
Slide 21: H1 2021 Key Take-aways: Strong Execution of Strategic Path
H1 2021 KEY TAKE-AWAYS STRONG EXECUTION OF WORLDLINE STRATEGIC PATH STRATEGIC INITIATIVES Continuous progress in TSS strategic review in the successful development of recurring activities Strong strategic execution over the past 8-month with 4 acquisitions signed revealing the relevance of our new M
Slide 22: H1 2021 Key Take-aways: Solid Group Organic Performance
H1 2021 KEY TAKE-AWAYS SOLID GROUP ORGANIC PERFORMANCE GROUP PERFORMANCE Solid H1 2021 results on all parameters, 8 months after the closing of Ingenico transaction, highlighting the relevance of the combination Ingenico synergies roadmap in strong execution mode confirming our €66m objective in 202
Slide 23: FY 2021 Guidance Confirmed
FY 2021 GUIDANCE CONFIRMED ORGANIC REVENUE A least mid-single digit growth* OMDA c. +200 bps improvement vs proforma OMDA margin** FREE CASH FLOW c. 50% OMDA conversion rate * Organic revenue guidance based on business assumptions presented on slide 19 ** Proforma OMDA margin of 23.9% (Worldline + I
Slide 24: Worldline Investor Day 2021 - Save the Date
WORLDLINE INVESTOR DAY 2021 OCTOBER 27TH, SAVE THE DATE WORLDLINE IS PLEASED TO ANNOUNCE THE PRESENTATION OF ITS NEW 3-YEAR PLAN ON OCTOBER 27th, 2021 IN PARIS (all details will be provided in the months to come) 24 | Tuesday July 27th, 2021 | Worldline H1 2021 results | © Worldline
Slide 25: The European Leader in Payments - Q&A Session
THE EUROPEAN LEADER IN PAYMENTS Q&A SESSION #1 #3 MERCHANT EUROPEAN ACQUIRER PROVIDER IN CONTINENTAL OF E- & M- PAYMENT EUROPE SOLUTIONS #1 #4 EUROPEAN GLOBAL PLAYER PAYMENT (in revenue) PROCESSOR c. € 5 bn 20,000+ 50+ c. 1,200 >1 m c. 35 m c. € 400 bn REVENUE WORLDLINERS COUNTRIES FINANCIAL INSTITU
Slide 26: Appendix
APPENDIX Tuesday July 27th, 2021 | Worldline H1 2021 results | © Worldline
Slide 27: Constant Scope and Exchange Rates Figures Reconciliation
CONSTANT SCOPE AND EXCHANGE RATES FIGURES RECONCILIATION 27 | Tuesday July 27th, 2021 | Worldline H1 2021 results | © Worldline
Slide 28: H1'21 Financial Performance Overview
H1’21 FINANCIAL PERFORMANCE OVERVIEW Revenue OMDA OMDA % % Organic In € million H1 2021 H1 2020 * H1 2021 H1 2020 * H1 2021 H1 2020 * Delta Pts Growth Merchant Services 1,083.3 1,043.9 +3.8% 247.7 219.0 22.9% 21.0% +1.9 pts Financial Services 441.7 438.4 +0.8% 127.3 130.0 28.8% 29.6% -0.8 pts TSS 57
Slide 29: H1'21 Performance per Business Line
H1’21 PERFORMANCE PER BUSINESS LINE Merchant Services Financial Services % Organic % Organic In € million H1 2021 H1 2020* In € million H1 2021 H1 2020* Growth Growth Revenue 1,083.3 1,043.9 +3.8% Revenue 441.7 438.4 +0.8% OMDA 247.7 219.0 +13.1% OMDA 127.3 130.0 -2.0% % OMDA 22.9% 21.0% +190 bps %
Slide 30: H1'21 Performance per Business Line
H1’21 PERFORMANCE PER BUSINESS LINE Terminals, Solutions & Services Mobility & E-Transactional Services % Organic % Organic In € million H1 2021 H1 2020 * In € million H1 2021 H1 2020* Growth Growth Revenue 579.0 626.6 -7.6% Revenue 168.3 161.3 +4.3% OMDA 149.0 157.0 -5.1% OMDA 24.9 22.9 +8.4% OMDA%
Slide 31: Thank You
THANK YOU ▪ FOR MORE INFORMATION, ▪ PLEASE CONTACT: Laurent Marie Benoit d’Amécourt M +33 7 84 50 18 90 M +33 6 75 51 41 47 laurent.marie@worldline.com benoit.damecourt@worldline.com © Worldline