Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q3 2021 Earnings Presentation
30 slides from Western Union Company (the)'s earnings presentation, Nov 2, 2021
Slide 1: Earnings webcast and conference call
Earnings webcast and conference call THIRD QTR 2021 NOV 2, 2021
Slide 2: Brad Windbigler, Head of Treasury and Investor Relations
Brad Windbigler Head of Treasury and 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 pre
Slide 4: Hikmet Ersek, Chief Executive Officer
Hikmet Ersek Chief Executive Officer 4
Slide 5: Western Union Q3 Results
Western Union Q3 Results Q3 Company Results Q3 GAAP Revenue Growth Q3 Operating Margins $1.3B 31% 24.8% 25.2% Revenue 15% $0.57 $0.63 2% GAAP EPS Adj. EPS* $0.7B Total Digital Business 3Q21 3Q21 YTD Cash Flow From Operations Company Solutions GAAP Adjusted* *Note: See appendix for reconciliation of
Slide 6: Digital Highlights
Digital Highlights Quarterly Digital Revenue Q3 WU.com Growth YTD Digital Revenue of $775M $267M $266M + 8% + 16% $240M $242M Average Monthly Principal Growth $231M Active Users1 WU.com +12% 3Q20 4Q20 1Q21 2Q21 3Q21 Revenue Growth 1 A monthly active user is defined as a unique westernunion.com custo
Slide 7: Introducing WU+
Introducing WU+ Pilot launching in Germany and Romania in Q4 7
Slide 8: WU Shop Is Live in Select Countries
WU Shop Is Live in Select Countries 12,000 Online Stores Local stores in 62 countries 12 Languages 2X cashback with VIP Subscription Free VIP membership for the 1st 60 days Exclusive deals 1,000’s of daily coupons 8
Slide 9: Raj Agrawal, Chief Financial Officer
Raj Agrawal Chief Financial Officer 9
Slide 10: Business Trends Q3
Business Trends Q3 Consolidated revenues of $1.3 billion increased 2% on a reported and constant currency* basis and compared to the prior year period % of Total Company Revenue 77 million C2C transactions $28 billion C2C C2C principal transferred Business Solutions Other +15% Digital money transfer
Slide 11: Consumer-to-Consumer Trends Q3
Consumer-to-Consumer Trends Q3 Revenue Constant Currency Revenue Transaction % of C2C Regions Growth/(Decline) Growth/(Decline)* Growth/(Decline) Revenue North America (2%) (2%) (5%) 37% Europe & CIS (3%) (5%) 3% 32% MEASA (2%) (2%) 2% 15% LACA 25% 26% 10% 9% APAC 1% (1%) (13%) 7% Total C2C 0% (1%)
Slide 12: Business Solutions and Other Highlights Q3
Business Solutions and Other Highlights Q3 Business Solutions 9% of Company revenue Revenue increased 31% (28% constant currency*) Other (primarily retail bill payments businesses in the U.S. & Argentina and money orders) 5% of Company revenue Revenue increased 3% *Note: See appendix for reconciliat
Slide 13: Total Company Operating Margin Q3
Total Company Operating Margin Q3 Key factors driving the increase in operating margin: 25.2% (+) Revenue growth and lower planned marketing 24.8% (-) Technology investment 23.5% 22.7% Adjusted operating margin was impacted by the same factors above and excludes: M&A expenses in both periods Restruc
Slide 14: Segment Operating Margins Q3
Segment Operating Margins Q3 C2C Segment Business Solutions Segment Other 32.9% 24.6% 24.3% 20.0% 18.3% 10.5% 3Q20 3Q21 3Q20 3Q21 3Q20 3Q21 14
Slide 15: Financial Highlights
Financial Highlights Quarter Ended September 30, 2021 EPS: GAAP / Adjusted* $0.57 / $0.63 YTD Cash Flow from Operations $686 million Dividends Paid $95 million Share repurchases $75 million Cash Balance, September 30, 2021 $1.0 billion Debt outstanding, September 30, 2021 $2.9 billion *Note: See app
Slide 16: 2021 Outlook
2021 Outlook GAAP Operating GAAP Earnings per GAAP & Adjusted Revenue Profit Margin Share Effective Tax rates GAAP revenue: 21% $1.80 to $1.85 Effective tax rate in approximately 150 basis a mid-teens range points higher than constant currency revenue growth Adjusted Operating Adjusted Earnings per
Slide 17: Questions & Answers
\wu Western Union Questions & Answers 17
Slide 18: Appendix
Appendix Third Quarter 2021 Earnings Webcast and Conference Call 18
Slide 19: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Western Union presents a number of non-GAAP financial measures because A non-GAAP financial measure should not be considered in isolation or as a management believes that these metrics provide meaningful supplemental substitute for the most comp
Slide 20: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q20 4Q20 FY2020 1Q21 2Q21 3Q21 YTD 3Q21 Consolidated Metrics Consolidated revenues (GAAP) - YoY % change (4) % (3) % (9) % 2 % 16 % 2 % 6 % Consolidated revenues (non-GAAP, constant currency and excluding Speedpay and Paymap) - YoY % chan
Slide 21: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q20 4Q20 FY2020 1Q21 2Q21 3Q21 YTD 3Q21 C2C Segment Regional Metrics - YoY % change NA region revenues (GAAP) 0 % (3) % (3) % 0 % 4 % (2) % 1 % NA region foreign currency translation impact (j) 1 % 0 % 0 % 1 % 0 % 0 % 0 % NA region revenu
Slide 22: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q20 4Q20 FY2020 1Q21 2Q21 3Q21 YTD 3Q21 % of C2C Revenue NA region revenues 38 % 37 % 38 % 37 % 37 % 37 % 37 % EU & CIS region revenues 33 % 33 % 33 % 33 % 33 % 32 % 33 % MEASA region revenues 16 % 15 % 15 % 16 % 15 % 15 % 15 % LACA regio
Slide 23: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Three Months Ended September 30, 2021 Operating Income Before Provision for Diluted Earnings Notes Revenues Income Income Taxes Income Taxes Net Income per Share (in millions, except per share amounts) Reported results (GAAP) $ 1,286.3 $ 318.6 $
Slide 24: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Nine Months Ended September 30, 2021 Operating Income Before Provision for Diluted Earnings Notes Revenues Income Income Taxes Income Taxes Net Income per Share (in millions, except per share amounts) Reported results (GAAP) $ 3,786.0 $ 806.3 $
Slide 25: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q20 4Q20 FY2020 1Q21 2Q21 3Q21 YTD 3Q21 Consolidated Metrics (a) Revenues (GAAP) $ 1,258.5 $ 1,271.8 $ 4,835.0 $ 1,210.0 $ 1,289.7 $ 1,286.3 $ 3,786.0 Foreign currency translation impact (j) 41.1 22.4 157.2 (0.9) (29.4) (2.8) (33.1) Reven
Slide 26: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q20 4Q20 FY2020 1Q21 2Q21 3Q21 YTD 3Q21 Consolidated Metrics cont. (d) Effective tax rate (GAAP) 12 % 11 % 13 % 10 % 14 % 20 % 16 % Impact from change in permanent reinvestment assertion related to the (r) pending sale of Business Solutio
Slide 27: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q20 4Q20 FY2020 1Q21 2Q21 3Q21 YTD 3Q21 Business Solutions Segment Metrics (h) Revenues (GAAP) $ 89.1 $ 89.2 $ 356.1 $ 96.5 $ 99.3 $ 116.8 $ 312.6 Foreign currency translation impact (j) (1.9) (2.4) (0.1) (5.6) (7.2) (3.1) (15.9) Revenues
Slide 28: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 2021 Consolidated Outlook Metrics Range Revenues (GAAP) 4.5% 5.5% Foreign currency translation impact, excluding Argentina inflation (j) (1.5)% (1.5)% Revenues, constant currency adjusted, excluding Argentina inflation (non-GAAP) 3.0% 4.0% Opera
Slide 29: Non-GAAP related notes:
Key Statistics and Reconciliation of Non-GAAP Measures Non-GAAP related notes: (j) Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign excha
Slide 30: Thank You
\wU Thank You Western Union
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