Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q1 2016 Earnings Presentation
25 slides from Western Union Company (the)'s earnings presentation, May 3, 2016
Slide 1: First Quarter 2016 Earnings Webcast & Conference Call
THIS IS FIRST QUARTER 2016 Earnings Webcast & aul Conference Call May 3, 2016 ed ' / WESTERN i - moving money for better onion WW
Slide 2: Mike Salop
Mike Salop Senior Vice President, Investor Relations 2
Slide 3: Safe Harbor
Safe Harbor This presentation contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to pred
Slide 4: Hikmet Ersek
Hikmet Ersek President & Chief Executive Officer 4
Slide 5: Overview
Overview Solid start to the year • Consumer money transfer constant currency revenue growth driven by westernunion.com and U.S. outbound • Business Solutions and Consumer Bill Pay contributed solid constant currency revenue growth • Operating margin of 19.9% • Returned $319 million to shareholders t
Slide 6: WU 2020: Leading in Cross-Border, Cross-Currency Money Movement
WU 2020: LEADING IN CROSS-BORDER, CROSS-CURRENCY MONEY MOVEMENT Maintain leadership in traditional retail money transfer Extend leadership in digital money transfer Leverage platform to serve new use cases and customer segments 6
Slide 7: Raj Agrawal
Raj Agrawal Executive Vice President & Chief Financial Officer 7
Slide 8: Revenue
Revenue ($ in millions) $1,321 $1,298 Consolidated revenue decreased 2% on a reported basis, or increased 3% constant currency* Transaction fee revenue decreased 3% Foreign exchange revenue increased 2% *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. 8
Slide 9: Consumer-to-Consumer Q1
Consumer-to-Consumer Q1 78% of Company revenue Revenue decreased 2%, or increased 1% constant currency* Total transactions increased 3% Cross-border principal decreased 2%, or increased 1% constant currency** *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. 9
Slide 10: C2C Transaction and Revenue Analysis
C2C Transaction and Revenue Analysis Q1 2016 *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. 10
Slide 11: Consumer-to-Consumer
Consumer-to-Consumer Q1 2016 Constant Revenue Currency Rev. Transaction Growth/ Growth/ Growth/ % of C2C Decline Regions Decline* Decline Revenue North America 3% 5% 7% 28% Europe and CIS -3% 0% 3% 26% Middle East and Africa -4% -1% -3% 20% Asia Pacific -4% -1% -4% 15% LACA -5% 1% 11% 11% Total C2C
Slide 12: C2B and B2B Q1
C2B and B2B Q1 Consumer-to-Business 12% of Company revenue Revenue declined 1%, or increased 12% constant currency* Business Solutions 8% of Company revenue Revenue increased 1%, or 6% constant currency* *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. 12
Slide 13: Operating Margin Q1
Operating Margin Q1 Operating margin • Negatively impacted by incremental technology expense and the impact of foreign exchange • Partially offset by benefits from cost savings and operational efficiencies and the timing of certain expenses *Note: See appendix for reconciliation of Non-GAAP to GAA
Slide 14: C2C Operating Margin Q1
C2C Operating Margin Q1 Operating margin • Negatively impacted by incremental technology expense and the impact of foreign exchange • Partially offset by benefits from cost savings and operational efficiencies and the timing of certain expenses 14
Slide 15: C2B Operating Margin Q1
C2B Operating Margin Q1 Operating margin • Decrease primarily due to incremental technology expense 15
Slide 16: B2B Operating Profit
B2B Operating Profit Operating Profit Operating profit of $2 million in the current and prior year period Depreciation and amortization of approximately $13 million, compared to $12 million in the prior year period EBITDA* margin improved to 15.1% from 14.6% in the prior year period *Note: S
Slide 17: Financial Strength
Financial Strength Quarter Ended March 31, 2016 Cash Flow from Operations $213 million Capital Expenditures $48 million Stock Repurchases $240 million Dividends Paid $79 million Cash Balance, March 31, 2016 $1.2 billion Debt Outstanding, March 31, 2016 $3.2 billion 17
Slide 18: 2016 Outlook
2016 Outlook Revenue • Low to mid-single digit constant currency revenue increase • GAAP revenue change approximately 300 basis points lower than constant currency Operating Profit Margin • Operating margin of approximately 20% Earnings per Share • EPS in a range of $1.58 to $1.70 Cash Flow
Slide 19: Questions & Answers
Questions & Answers 19
Slide 20: Appendix
Appendix First Quarter 2016 Earnings Webcast & Conference Call May 3, 2016 20
Slide 21: Non-GAAP Measures
Non-GAAP Measures Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding our operating results to assist management, investors, analysts, and others in understanding our financial results and to better analyze trends in our
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q15 2Q15 3Q15 4Q15 FY2015 1Q16 Consolidated Metrics Revenues, as reported (GAAP) $ 1,320.9 $ 1,383.6 $ 1,399.2 $ 1,380.0 $ 5,483.7 $ 1,297.7 Foreign currency translation impact (a) 78.6 84.7 85.4 73.9 322.6 57.4 Revenues, constant currency adjusted $ 1,399.5 $ 1,
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q15 2Q15 3Q15 4Q15 FY2015 1Q16 Consumer-to-Consumer Segment Revenues, as reported (GAAP) $ 1,038.3 $ 1,101.5 $ 1,112.9 $ 1,091.2 $ 4,343.9 $ 1,017.4 Foreign currency translation impact (a) 63.0 69.1 67.1 56.8 256.0 30.5 Revenues, constant currency adjusted $ 1,10
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q15 2Q15 3Q15 4Q15 FY2015 1Q16 Consumer-to-Consumer Segment (cont.) North America region revenue change, as reported (GAAP) 1% 1% 2% 3% 2% 3% North America region foreign currency translation impact (a) 1% 1% 2% 2% 1% 2% North America region revenue change, const
Slide 25: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 1Q15 2Q15 3Q15 4Q15 FY2015 1Q16 Consumer-to-Business Segment Revenues, as reported (GAAP) $ 157.8 $ 157.9 $ 160.1 $ 161.9 $ 637.7 $ 156.1 Foreign currency translation impact (a) 6.3 4.9 5.6 7.8 24.6 20.9 Revenues, constant currency adjusted $ 164.1 $ 162.8 $ 165.7
The Western Union Company — Q1 2016 Earnings Presentation on 6ix