Slide 1: Western Union Second Quarter 2011 Earnings Webcast & Conference Call
Western Union Second Quarter 2011 Earnings Webcast & Conference Call July 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: Q2 Highlights
Q2 Highlights Total revenue increased 7%, or 5% constant currency Strong trends continue in C2C 8% reported revenue growth and 5% constant currency Bill Payments revenue grew 2% Business Solutions revenue grew 14% 470,000 agent locations Raising 2011 Revenue and EPS Outlook Note: See appendix for re
Slide 5: Electronic Channels & Prepaid Q2 Highlights
Electronic Channels & Prepaid Q2 Highlights Account-based money transfer Approximately 40% transaction growth Agreements in place with over 60 banks globally Westernunion.com Nearly 40% transaction growth in international markets Transactions increased by over 25% globally Mobile 18 agreements in pl
Slide 6: Scott Scheirman, Executive Vice President & Chief Financial Officer
Scott Scheirman Executive Vice President & Chief Financial Officer * * * * * * * * *
Slide 7: Revenue
Revenue ($ in millions) $1,273 $1,366 Note: See appendix for reconciliation of Non-GAAP to GAAP measures. Consolidated revenue up 7%, or up 5% constant currency adjusted Transaction fees increased 6% Foreign exchange revenue increased 12% C2C cross-border principal increased 10%
Slide 8: Consumer-to-Consumer
+6% Consumer-to-Consumer C2C Transactions (millions) Note: See appendix for reconciliation of Non-GAAP to GAAP measures. C2C Revenue growth of 8%, or 5% constant currency Total Q2 Western Union cross- border principal of $19 billion Increased 10% on a reported basis Increased 6% constant currency Pr
Slide 9: Consumer-to-Consumer: Europe, Middle East, Africa, S. Asia
Consumer-to-Consumer Revenue Transactions Q2 2011 8% 4% Europe, Middle East, Africa, S. Asia 43% of Western Union revenue Transaction growth similar to Q1 Reported revenue improved from Q1 primarily due to stronger Euro India grew revenue 11% and transactions 8% Closed Angelo Costa acquisition and s
Slide 10: Consumer-to-Consumer: Americas
Consumer-to-Consumer Revenue Transactions Americas 5% 7% 32% of Western Union revenue Domestic money transfer grew revenue 9% and transactions 19% Mexico grew revenue 1% while transactions declined 1% Signed Regions Bank, expanding our North American banking strategy Q2 2011
Slide 11: Consumer-to-Consumer: Asia Pacific
Consumer-to-Consumer Revenue Transactions Asia Pacific 16% 12% 9% of Western Union revenue Solid growth across the region, acceleration in Australia and China China grew revenue 13% and transactions 7% Q2 2011
Slide 12: C2C Transaction and Revenue Growth
C2C Transaction and Revenue Growth Note: See appendix for reconciliation of Non-GAAP to GAAP measures. Q2 2011
Slide 13: Global Business Payments
Global Business Payments Revenue Transactions Global Business Payments 4% 8% 14% of Western Union revenue Bill payments revenue turned positive increasing 2% Business Solutions grew revenue 14% Q2 2011
Slide 14: Operating Margin
Operating Margin Note: See appendix for reconciliation of Non-GAAP to GAAP measures GAAP Excluding Restructuring (1) (1) Consolidated operating margin excludes restructuring charges Operating margin excluding restructuring expense declined 80 basis points • Currency translation net of hedges negativ
Slide 15: C2C Operating Margin
C2C Operating Margin C2C 84% of total company revenue Operating Margin down 50 basis points from prior year • Negative impact of currency net of hedges and higher spending on initiatives offset other efficiencies, including restructuring savings, and revenue leverage 29.1% 28.6% Q2 2010 Q2 2011
Slide 16: Global Business Payments Operating Margin
Global Business Payments Operating Margin GBP 14% of total company revenue Operating margin improved Revenue increases Bill Payment improvement Lower integration and investment spending in WUBS
Slide 17: Financial Strength
Financial Strength YTD 2011 Cash Flow from Operations $506 million Capital Expenditures $75 million Stock Repurchases $660 million Dividends Paid $95 million Cash Balance, June 30, 2011 $2.1 billion Debt Outstanding, June 30, 2011 $3.6 billion
Slide 18: 2011 Outlook
2011 Outlook Note: See appendix for reconciliation of Non-GAAP to GAAP measures. Constant currency revenue growth in the range of 4% to 5% GAAP revenue growth in the range of 5% to 6% GAAP EPS of $1.48 to $1.53 EPS excluding restructuring charges of $1.53 to $1.58 Restructuring expenses approximatel
Slide 19: 2011 EPS Outlook – July vs. April
2011 EPS Outlook – July vs. April $1.41 to $1.46 $1.47 to $1.52 $1.48 to $1.53 $1.53 to $1.58 GAAP April Outlook Lower Restruct. Expense April Outlook Excl. Restruct. 1% Rev. Incr. Constant Currency 1% Rev. Incr. from Currency Translation, Net of Hedges Incremental Acquisition Impacts -Costa $0.01 -
Slide 20: 2011 Outlook
2011 Outlook Note: See appendix for reconciliation of Non-GAAP to GAAP measures. GAAP operating margin range of 25% to 25.5% (including Travelex deal costs of approximately $15 million) Operating margin range of 26% to 26.5%, excluding restructuring charges Operating margin on a constant currency ba
Slide 21: Questions & Answers
Questions & Answers * * * * * * * * *
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2Q10 3Q10 4Q10 FY2010 1Q11 2Q11 YTD 2Q11 Consolidated Metrics Revenues, as reported (GAAP) 1,273.4 $ 1,329.6 $ 1,357.0 $ 5,192.7 $ 1,283.0 $ 1,366.3 $ 2,649.3 $ Foreign currency translation impact (a) 16.1 22.2 18.5 36.8 2.3 (32.5) (30.2) Revenues, constant curren
Slide 23: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2Q10 3Q10 4Q10 FY2010 1Q11 2Q11 YTD 2Q11 Consumer-to-Consumer Segment Revenues, as reported (GAAP) 1,073.1 $ 1,128.3 $ 1,151.8 $ 4,383.4 $ 1,078.1 $ 1,155.1 $ 2,233.2 $ Foreign currency translation impact (a) 15.0 21.2 18.0 32.3 2.2 (31.4) (29.2) Revenues, constan
Slide 24: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 2011 Revenue Outlook Revenue change (GAAP) % % Foreign currency translation impact (c) (1)% (1)% Revenue change, constant currency adjusted % % 2011 Operating Income Margin Outlook Operating income margin (GAAP) 25.0 % 25.5 % Impact from restructuring and related