Worldline Sa · EURONEXT:WLN
Worldline Sa — Investor Day (November 2016)
29 slides from Worldline Sa's investor day presentation, Nov 8, 2016
Slide 1: 2016 Investor Day
2016 Investor Day Atos’ Headquarters, Bezons November 08, 2016 © Atos - Confidential
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
Slide 3: Worldline's 3-year plan
Worldline’s 3-year plan Gilles Grapinet Atos SEVP & Worldline CEO
Slide 4: Organic growth acceleration since the 2014 IPO
Organic growth acceleration since the 2014 IPO(1) Merchant Services Financial Processing Mobility & Terminals & Software Licensing & e-Transactionnal Services From 2.0% in 2014 to 7.9% in From 1.4% in 2014 to 4.4% Consistant 5% to 6+% 2016 (9M YTD) in 2016 (9M YTD) performance, excluding French Rada
Slide 5: On track to deliver the 2017 IPO objectives for OMDA improvement and free cash flow
On track to deliver the 2017 IPO objectives for OMDA improvement and free cash flow (1) c.20.0% c.+80bp Reminder: +50bp +50bp 18.2% (2) Steady OMDA H1 2016 IPO 2017 objective improvement c.+250bp Worldline 2013 2014 OMDA 2015 OMDA 2016 OMDA Worldline OMDA% improvement improvement expected expected i
Slide 6: +41% revenue increase in Merchant Services and Financial Processing from M&A since 2013
+41% revenue increase in Merchant Services and Financial Processing from M&A since 2013 c.€1.5b c.€1.2b €1.1b +c.10% +41% revenue MST: €364m +c.20% increase in MST and FPL from M&A on +c.62% top of organic FPL: €392m +c.10% growth MeTS: €369m Stable 2013 (1) 2016e Standalone 2016e PF (1): 2013 pro f
Slide 7: Worldline benefits from the strong positive momentum of the European payment market
Worldline benefits from the strong positive momentum of the European payment market Beyond payments, IoT & Data analytics digital platforms IoT/M2M Loyalty Digital Payments Contact Mobile payments Digitization Online Banking ePayment Cashless trends eIdentity Fraud Risk Management services Cards tra
Slide 8: Key Strategic Axis 2017-2019
4 Key Strategic Axis 2017-2019 Worldline key strengths Strategic Axis • Largest PSP in Europe Financial Processing Size • Deliver the massive industrial synergies & • Leader in key markets with equensWorldline scope • Take further advantage of our European • Unique pan-European reach leadership in F
Slide 9: 2017-2019 objectives
2017-2019 objectives Revenue Organic After H1 2017 at a slight positive growth, 5% to 7% CAGR Growth +350bp to +400bp margin improvement OMDA % in 2019 vs 2016 (1) Free cash €210m to €230m in 2019, representing over +50% increase flow compared with 2016 objective (1): c.18.5% OMDA margin, 2016 Pro F
Slide 10: 2019 Business development ambitions
2019 Business development ambitions Marc-Henri Desportes General Manager
Slide 11: The new Worldline Group
The new Worldline Group 11 | Atos – 2016 Investor Day
Slide 12: Payment Market continues to experience solid volume growth and outsourcing forces
Payment Market continues to experience solid volume growth and outsourcing forces e-payment trends • Consistent growth in card payments volume in Western Europe as well as in CEE/Asia • Technological pressure and diversification of payment means (e.g. instant payments) • PSD 2 disruption in Europe F
Slide 13: equensWorldline: result of joining forces
equensWorldline : result of joining forces Industry’s largest transaction processing company in Europe • equensWorldline under the leadership of Michael Steinbach (former Equens CEO), leveraging the biggest scale in Europe • Atos and Worldline integration know-how to drive synergies execution • Scal
Slide 14: equensWorldline synergy plan confirming targets with visibility of further upsides
equensWorldline synergy plan confirming targets with visibility of further upsides Impact of synergies Comments 2018 Outlook 2021 (for information) • €40m of OMDA savings expected in OMDA run-rate impact in €m c.€6m c.€55m 2018 c.€10m 50 • Synergy c.€6m c.€40m c.€19m implementation costs 40 estimate
Slide 15: Worldline: the European partner for merchant services
Worldline: the European partner for merchant services Products International go-to-market • Wider portfolio of products and services • Unmatched capability to serve specific • New enlarged needs of major brands footprint for acquiring in the North/Centre of Operations Europe • Leverage the capabilit
Slide 16: Strong focus in Mobility & e-Transactional Services to take advantage of robust market trends
Strong focus in Mobility & e-Transactional Services to take advantage of robust market trends Strong momentum of business fundamentals Leverage global in 3 verticals and 1 transversal : footprint to pursue • Manufacturing & Insurance: Connected Living, international roll-out Analytics & Payment of k
Slide 17: Asian operations development model to further foster the growth trends of the Group
Asian operations development model to further foster the growth trends of the Group Current business Engaged developments • Strong License/maintenance • Push global products portfolio APAC position • Peripheral modules (fraud…) FPL • Transition to non-mainframe solutions • Continue to support evolut
Slide 18: 2019 Financial ambition
2019 Financial ambition Eric Heurtaux Chief Financial Officer(1) (1) As of December 1, 2016
Slide 19: 2016 Best estimate pro forma revenue and OMDA
2016 Best estimate pro forma revenue and OMDA (1) Worldline 2016 best Worldline 2016 best estimate pro forma estimate pro forma revenue OMDA% c.20.0% c.€0.3b c.18.5% c.12.5% c.€1.2b 2016e Worldline 2016e OMDA% from 2016e Pro forma OMDA "standalone" OMDA acquisitions objective 2016e revenue from acqu
Slide 20: Main 2017 – 2019 revenue growth drivers
Main 2017 – 2019 revenue growth drivers Trends Revenue • Fast volume growth in electronic payment conversion • Thanks to Paysquare and KB Smartpay, MST • Geographic expansion in higher growth increased geographical diversification geographical areas (Germany, CEE) • Mid- to high- single digit growth
Slide 21: Main 2017 – 2019 OMDA improvement drivers
Main 2017 – 2019 OMDA improvement drivers Trends OMDA • Acquisitions to gradually reach rest of MST MST profitability thanks to synergies starting in • Low twenties OMDA% 2017 • equensWorldline: c.€40m OMDA run-rate synergies in 2018, of which 50% in 2017 • From low twenties in 2016e FPL • Synergy i
Slide 22: Free cash flow main assumptions
Free cash flow main assumptions Capex • 6% and 7% of revenue in 2017 €210m • 5% to 6% of revenue from 2018 to €230m Change in working capital in 2019, • Assumption: slight contribution representing Reminder : Q4 2016 to H2 2018 equensWorldline transformation costs over +50% increase • To generate th
Slide 23: Financing of acquisitions
Financing of acquisitions Immediate available financing capacity Acquisitions c.€1.5b Confirmation of financial policy: Mid-term leverage target of 1.5x to 2.5x net debt/EBITDA Worldline 2016e 2.5 (max leverage) x 2.5 (max leverage) x Immediate available estimated net cash 2016ePF OMDA OMDA from pot
Slide 24: 2017-2019 objectives
2017-2019 objectives Revenue Organic After H1 2017 at a slight positive growth, 5% to 7% CAGR Growth +350bp to +400bp margin improvement OMDA % in 2019 vs 2016 (1) Free cash €210m to €230m in 2019, representing over +50% increase flow compared with 2016 objective (1): c.18.5% OMDA margin, 2016 Pro F
Slide 25: Conclusion
Conclusion Gilles Grapinet Atos SEVP & Worldline CEO
Slide 26: A strong M&A ambition over 2017-2019
A strong M&A ambition over 2017- 2019 For illustration: c.€0.5b M&A potential additional contribution, if pursuing same trends than during 2014- c.€1.5b 2016 (i.e. c.+40% of MST and FPL revenue) c.€0.3b €1.1b c.€1.8b c.€1.2b Acquisition ambition Acquisitions completed Organic revenue evolution 2013
Slide 27: Single currency and harmonized regulation drove the US consolidation in payments
Single currency and harmonized regulation drove the US consolidation in payments 27 | Atos – 2016 Investor Day
Slide 28: The European payment industry consolidation journey is just starting…
The European payment industry consolidation journey is just starting… … while Worldline is one of the very few European recognized natural consolidators 28 | Atos – 2016 Investor Day
Slide 29: Thanks
Thanks Atos, the Atos logo, Atos Codex, Atos Consulting, Atos Worldgrid, Worldline, BlueKiwi, Bull, Canopy the Open Cloud Company, Unify, Yunano, Zero Email, Zero Email Certified and The Zero Email Company are registered trademarks of the Atos group. April 2016. © 2016 Atos. Confidential information