Wirecard Ag · HAM:WDI

Wirecard — FY2016 Earnings Presentation

42 slides from Wirecard's earnings presentation, Apr 6, 2017

  1. Slide 1: Investor Presentation – Results FY2016

    Investor Presentation – Results FY2016 6 April 2017 © 2017 Wirecard AG 1

  2. Slide 2: Content

    Content 1. Highlights 2. Industry and regions 3. Products and solutions 4. Mergers and acquisitions 5. Outlook 6. Financial data © 2017 Wirecard AG 2

  3. Slide 3: Highlights

    1 Highlights © 2017 Wirecard AG 3

  4. Slide 4: Wirecard at a glance

    Highlights Wirecard at a glance 61.7 EUR bn processed transaction volume worldwide Outstanding track record with continuing growth and strong fundamentals ~ 27,000 large and medium sized merchants ~ 150,000 small sized merchants Innovation leader with leading internet and mobile payment technology G

  5. Slide 5: Key figures FY2016

    Highlights Key figures FY2016 Results in EUR mn (except where stated) 2016 2015 Change Transaction volume (in EUR bn) 61.7 45.2 37% Revenues 1,028.4 771.3 33% EBITDA 307.4 227.3 35% EBIT adjusted* 268.3 197.4 36% EBIT 235.2 172.8 36% Earnings after taxes 266.7 142.6 87% Earnings after taxes adjusted

  6. Slide 6: Organic versus M&A related growth FY2016

    Highlights Organic versus M&A1 related growth FY2016 Transaction volume Revenue growth EBITDA growth growth Total 36.5% 33.3% 35.2% Organic 30.2% 20.6% 27.1% M&A 6.3% 12.7% 8.2% • GI Retail 4.4% 9.5% 6.6% • Wirecard Brasil 1.2% 2.1% 0.5% • Provus 0.7% 1.1% 1.1% 1 Payment business of GI Retail Group,

  7. Slide 7: Global mega trends driving Wirecard's growth

    Highlights Global mega trends driving Wirecard´s growth 1 Substitution of POS transactions by mobile and internet transactions 2 Transition from cash transactions to electronic card transactions 3 Transition from non-real-time transactions to real-time transactions 4 Internet technology as convergen

  8. Slide 8: Wirecard's strategy

    Highlights Wirecard´s strategy Driving convergence between online, mobile and POS front-ends using innovative internet technology Constant extension of value chain and innovative internet- Globalisation driven value added services © 2017 Wirecard AG 8

  9. Slide 9: Wirecard's USPs

    Highlights Wirecard´s USPs Strong value chain with end-to-end fully digitised Value chain acquiring and issuing leading to gross margin advantages Leading 360° risk management: raising Risk conversion on average by more than 5% management and reducing default by up to 50%* Most advanced in rolling o

  10. Slide 10: Wirecard's end-to-end payment ecosystem

    Highlights Wirecard´s end-to-end payment ecosystem – fully digitised global acquiring and issuing MOBILE FRONTEND SMS / USSD SIM TOOLKIT / J2ME SMARTPHONE APPS SMARTPHONE SDK SOLUTIONS VALUE ADDED CONTEXTUAL ADVERTISING LOYALTY PROGRAMS COUPONING SERVICES SERVICES ISSUING MULTI-CHANNEL WALLET CUSTOM

  11. Slide 11: 360° risk engine

    Highlights 360° risk engine Region 1 One Platform for multiple purposes • Platform for decision making Region 2 • Modular design CREDIT AGENCY GATEWAY • Flexible setup Region 3 PEP CHECK • One interface to the merchant Region 4 ADDRESS RISK ENGINE CUSTOMER ID HOTLIST CONNECTORS CREDIT LIMIT EMAIL AD

  12. Slide 12: Global reach

    Highlights Global reach © 2017 Wirecard AG 12

  13. Slide 13: Operative highlights FY2016

    Highlights Operative highlights FY2016 New customer gains in second half 2016 with a potential transaction volume of 9.5 EUR bn Examples of customer gains, business extensions and new partners Microsoft Cloud Platform Azure, Siemens Mobility, Verlagsgruppe Handelsblatt, Visa Europe Collab, ÖBB, T-Sy

  14. Slide 14: Industry and regions

    2 Industry and regions © 2017 Wirecard AG 14

  15. Slide 15: Transaction volume – industry view (1/2)

    Industry and regions Transaction volume – industry view (1/2) Strong growth across all industries with well diversified Consumer goods customer portfolio and low customer concentration • Includes B2C and B2B physical products • Consumer goods up 8.2 EUR bn, with 39.5% yoy growth Transaction volume1

  16. Slide 16: Transaction volume – industry view (2/2)

    Industry and regions Transaction volume – industry view (2/2) 1 Average transaction volume per merchant (large and medium sized only) 14% CAGR (2012-2016) 2.5 2.28 2.05 Volume in EUR mn 2.0 1.81 1.67 1.49 1.5 1.0 0.5 2012 2013 2014 2015 2016 Adding large scale merchants enables Wirecard to continuou

  17. Slide 17: Transaction volume – geographic view

    Industry and regions Transaction volume – geographic view 1 2 Transaction volume - global breakdown In EUR bn Total 61.7 45.2 Europe 42.1 34.0 thereof Germany 15.9 13.8 2016 2015 thereof EU (w/o GER) 23.1 17.3 thereof Europe (non EU) 3.1 2.8 Outside Europe 19.6 11.2 Outside In EUR mn (except where s

  18. Slide 18: Industry and geographic view FY2016

    Industry and regions Putting it together – industry and geographic view FY2016 1 Consumer goods Europe Outside Europe Total Transaction volume2 in EUR bn 17.7 11.3 28.9 Revenue3 in EUR mn 237.5 215.6 453.1 Average transaction margin 1.3% 1.9% 1.6% Digital goods Europe Outside Europe Total Transactio

  19. Slide 19: Products and solutions

    3 Products and solutions © 2017 Wirecard AG 19

  20. Slide 20: Key innovations and product development (1/2)

    Products and solutions Key innovations and product development (1/2) boon. Wirecard’s Host Card Emulation (“HCE”) app for mobile payment – redefining smartphone payments. As a digital payment solution for Android smartphones boon combines innovative payment functions, loyalty points and couponing as

  21. Slide 21: Key innovations and product development (2/2)

    Products and solutions Key innovations and product development (2/2) Connected POS Connected POS technology is Wirecard’s central and intelligent platform for value added services at the Point of Sale (POS). The solution brings internet technology to the POS and enables merchants to digitise various

  22. Slide 22: Mergers and acquisitions

    4 Mergers and acquisitions © 2017 Wirecard AG 22

  23. Slide 23: Overview of recent M&A activity

    Mergers and acquisitions Overview of recent M&A activity • Leading position in institutional funded prepaid card issuing with more than 2,500 client programs launched • Global expansion with market entry U.S. Citi Prepaid Card • Employees: 120 Services in North • Estimated EBITDA margin 2017 approx.

  24. Slide 24: Track record of recent M&A activity

    Mergers and acquisitions Track record of recent M&A activity Revenue EBITDA 73.5 EUR mn 14.9 EUR mn Payment business of FY2016 FY2016 GI Retail Group, India (consolidation as of (consolidation as of December 30, 2015) December 30, 2015) 16.2 EUR mn 1.2 EUR mn Wirecard Brasil, Brazil FY2016 FY2016 (s

  25. Slide 25: Wirecard India – driving financial inclusion

    Mergers and acquisitions Wirecard India – driving financial inclusion mPOS / PSP PAYMENT PLATFORM MINI ATMs by WIRECARD ACQUIRING FULLY DIGITISED (via referral/ BIN OPEN LOOP sponsor) ISSUING AUTHORIZED DEALER, SUCCESSFUL CATEGORY II BANK (LICENCE UPGRADE ( FULL LICENSE ) FY2016 BY RBI) ICASH ( PPI

  26. Slide 26: Outlook

    5 Outlook © 2017 Wirecard AG 26

  27. Slide 27: Market environment

    Outlook Market environment Strong prospective market growth of 16% to 17% within Wirecard´s core geographies as well as its industry mix for 2017 Convergence of all Ongoing digitalisation sales channels Transition from cash to Real-time payments electronic payments © 2017 Wirecard AG 27

  28. Slide 28: Company guidance 2017

    Outlook Company guidance 2017 • EBITDA guidance for FY2017 of 382 to 400 EUR mn • Proposed dividend of 0.16 EUR per share Guidance is based on • Growth of the European e-commerce market and additional global growth drivers • Increase of processed transaction volume with existing and new clients • Ec

  29. Slide 29: Wirecard's visionary playing field

    Outlook Wirecard´s visionary playing field 85% cash transactions worldwide … whereas only 15% of all transactions are electronic …with only 6% to 7% of all electronic transactions being fully digitised Leaving an enormous market potential for Wirecard © 2017 Wirecard AG 29

  30. Slide 30: Vision 2020

    Outlook Vision 2020 TX volume Revenue > EUR 190 bn EBITDA – margin > EUR 2.5 bn FCF conversion to 30-35% EBITDA > 65% © 2017 Wirecard AG 30

  31. Slide 31: Financial data

    6 Financial data © 2017 Wirecard AG 31

  32. Slide 32: Financial highlights FY2016

    Financial data Financial highlights FY2016 in EUR k 2016 2015 Change Revenue 1,028,358 771,340 33% EBITDA 307,363 227,315 35% EBIT adjusted* 268,322 197,420 36% EBIT 235,188 172,844 36% Tax 36,091 23,023 57% Earnings after taxes 266,749 142,646 87% Earnings after taxes adjusted** 176,888 142,646 24%

  33. Slide 33: Revenue and EBITDA – 5 year view

    Financial data Revenue and EBITDA – 5 year view Financials - 5 year view EUR mn 1200 30.0% 26% CAGR (2012-2016) 1000 29.0% Strong 5 year 800 28.0% revenue/EBITDA growth and 600 margin expansion due to scalability of 27.0% 400 30% CAGR Wirecard´s platform and (2012-2016) cross selling effects 26.0% 2

  34. Slide 34: Consolidated income statement

    Financial data Consolidated income statement in EUR k 2016 % of revenues 2015 % of revenues Revenues 1,028,358 771,340 Own work capitalised 30,201 28,293 Cost of materials -530,761 51.6% -418,935 54.3% Personnel expenses -129,852 12.6% -96,378 12.5% Other operating expenses -97,888 9.5% -62,665 8.1%

  35. Slide 35: Balance sheet

    Financial data Balance sheet Assets in EUR k 31.12.2016 31.12.2015 Equity and liabilities in EUR k 31.12.2016 31.12.2015 Non-current assets 1,386,438 1,280,261 Shareholders´ equity 1,474,963 1,280,513 Goodwill 534,892 489,301 Liabilities 2,007,099 1,654,988 Customer relationships 392,329 385,451 Cur

  36. Slide 36: Net cash (short- and long-term)

    Financial data Net cash (short- and long-term) In EUR mn Net cash bridge FY2016 In EUR mn 2,500 -135 2,000 593 -535 1,500 1,333 3 -440 171 -611 1,000 819 500 379 0 Cash and cash Interest-bearing Receivables of Current interest Customer Liabilities of Net cash Non-current Non-current Net cash equival

  37. Slide 37: Income tax analysis

    Financial data Income tax analysis in EUR k 2016 in % of ebt 2015 in % of ebt Earnings before tax (EBT) 302,840 165,669 Tax on income and profit -36,091 11.9% -23,023 13.9% thereof impact from deferred tax 1,694 -0.6% -1,109 0.7% thereof tax to be paid -37,785 12.5% -21,914 13.2% Paid tax on income

  38. Slide 38: Cash flow and conversion

    Financial data Cash flow and conversion Free cash flow in EUR k 2016 2015 Cash flow from operating activities 283,030 199,685 (adjusted) Operative CAPEX 73,160 54,477 Free cash flow 209,870 145,208 Cash conversion in EUR k 2016 2015 Free cash flow 209,870 145,208 Earnings after tax* 176,888 142,646

  39. Slide 39: FinTech

    Financial data FinTech Wirecard as a global technology company with a fully licensed bank is THE preferred partner for FinTech companies and provides services in the area of… Selective provision of Payment processing financing - based on detailed Technology Cards and accounts individual assessments

  40. Slide 40: Thank you for your attention

    THANK YOU FOR YOUR ATTENTION © 2017 Wirecard AG 40

  41. Slide 41: Contact

    Contact Investor Relations Iris Stöckl: iris.stoeckl@wirecard.com IR-Team: ir@wirecard.com T: + 49 (0) 89 4424 1788 Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany © 2017 Wirecard AG 41

  42. Slide 42: Disclaimer

    Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial condi

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