Slide 1: 1H23 Results Presentation
This content is classified as Internal 1H23 Results Presentation August 1st, 2023
Slide 2: Disclaimer
This content is classified as Internal Disclaimer ▪ This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on
Slide 3: Key messages
This content is classified as Internal Key messages Continued solid volume growth in Solid financial performance, Strong progress in creating 2Q23 across all geographies with continued margin expansion the European PayTech leader ▪ Sustained volume growth in all ▪ Revenue growth at +8.1% vs 1H22, wi
Slide 4: Continued volume growth in 2Q23 across all geographies despite tough Y/Y comparison
This content is classified as Internal Trend vs prev. Year Continued volume growth in 2Q23 across all geographies despite tough Y/Y comparison High impact consumption Basic consumption Discretionary consumption Total Net of discontinued clients due to optimised risk profile Delta vs 20192 +27% +24%
Slide 5: Merchant Solutions: key business update
This content is classified as Internal Merchant Solutions: key business update 1H23 TRX Value Key Business Highlights ▪ Strong continued customer base growth, with terminals installed base growing by ~145k2 y/y in 1H23, with Examples of recent 62%1 customer wins & upsells significant growth in Italy
Slide 6: Focus on 1H23 results
This content is classified as Internal Focus on 1H23 results
Slide 7: Solid Revenue and EBITDA growth, driving continued EBITDA margin expansion
This content is classified as Internal Solid Revenue and EBITDA growth, driving continued EBITDA margin expansion Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin +9.0% Y/Y +9.9% Y/Y 51% 52% 47% 49% Gross of scheme fees Gross of scheme fees + 131 bps + 153 bps +8.1% 1,577.0 1,458.6 +11.
Slide 8: Merchant Solutions: sustained revenue growth despite tough y/y comparison in 2Q23
This content is classified as Internal Merchant Solutions: sustained revenue growth despite tough y/y comparison in 2Q23 Net Revenues (€M) Managed Transactions (#M) Key Highlights +10.8% Y/Y +12.2% Y/Y International +17.7% ▪ Sustained growth in value of 56%1 Gross of scheme fees Gross of scheme fees
Slide 9: Issuing Solutions: strong revenue growth supported by volumes and one-off contribution
This content is classified as Internal Issuing Solutions: strong revenue growth supported by volumes and one-off contribution Net Revenues (€M) Managed Transactions (#M) Key Highlights 33%1 International Schemes +15.7% ▪ Strong revenue growth sustained by double-digit growth in Italy benefitting +12
Slide 10: Digital Banking Solutions: stable revenue performance in the quarter
This content is classified as Internal Digital Banking Solutions: stable revenue performance in the quarter Net Revenues (€M) Key Highlights ▪ 1H23 revenues stable y/y with strong volume growth broadly offset by 11%1 impacts from banking consolidation in +0.3% Italy in 2022 173.7 174.2 Digital ▪ Pay
Slide 11: Continued revenue growth across geographies in 2Q23, led by Italy and DACH & Poland
This content is classified as Internal Continued revenue growth across geographies in 2Q23, led by Italy and DACH & Poland 58%1 Italy 19%1 Nordics2 +9.9% Y/Y +10.8% Y/Y +4.5% Y/Y +5.9% Y/Y Gross of scheme fees Gross of scheme fees Gross of scheme fees Gross of scheme fees +9.2% 921.0 +8.9% 843.5 +4.
Slide 12: Slowdown on costs, expected to continue in 2H23
This content is classified as Internal Slowdown on costs, expected to continue in 2H23 Total Costs (€M) Key Highlights Personnel Costs Operating Costs ▪ 1H23 increase y/y as planned due to volume, business growth and inflationary +8.1% Y/Y +8.7% Y/Y pressure: Gross of scheme fees Gross of scheme fee
Slide 13: Continued investments to support quality, innovation and IT transformation
This content is classified as Internal Continued investments to support quality, innovation and IT transformation Capital Expenditure1 (€M) Key Highlights Transformation Capex Ordinary Capex ▪ Platform and datacenter consolidation % of 1H22 % of 1H23 progressing according to plan: net revenues net r
Slide 14: Continued strong reduction of Integration and Transformation Costs
This content is classified as Internal Continued strong reduction of Integration and Transformation Costs Transformation and Bridge from 1H 2023 transformation and integration costs to non-recurring items (€M) integration costs (€M) Integration costs Transformation costs 72.4 -25% -45.9 28.8 54.0 -7
Slide 15: Strong growth of EBITDA minus Capex and non-recurring cash items at +18% Y/Y
This content is classified as Internal Strong growth of EBITDA minus Capex and non-recurring cash items at +18% Y/Y Normalised EPS at 0.22€ up by 8% Y/Y EBITDA minus Capex and non-recurring cash items (€M) Normalised EPS1 (€) Normalised Net Profit 273 €M 295 €M +18.4% +8.0% 473.1 0.22 0.21 399.5 1H2
Slide 16: Strong excess cash generation in the semester
This content is classified as Internal Strong excess cash generation in the semester Excess cash generation1 (€M) 771.8 759.4 12.5 210.6 64.9 81.2 402.6 17.1 92.9 22.2 270.5 1H23 EBITDA At constant 1H23 Cash Capex Non-recurring ∆ NWC3 Operating Cash Taxes4 Net Cash Other Cash Excess Cash scope and F
Slide 17: Net Financial Debt / EBITDA in line with plan, at ~2.8x including run-rate synergies
This content is classified as Internal Net Financial Debt / EBITDA in line with plan, at ˜2.8x including run-rate synergies Net Financial Debt (€M) Key Highlights ▪ Upgrade to “BB+” by Fitch in July 2023, the 5th June 22 Sept 22 Dec 22 Mar 23 June 23 rating update since January 2022, on the back of
Slide 18: Closing remarks
This content is classified as Internal Closing remarks
Slide 19: 2023 Guidance confirmed, in line with CMD medium-term growth ambition
This content is classified as Internal 2023 Guidance confirmed, in line with CMD medium-term growth ambition Net ▪ More than 7% y/y growth Revenues EBITDA ▪ More than 10% y/y growth Excess cash ▪ At least 600 €M2 generated1 Net ▪ ~2.9x EBITDA (~2.6x EBITDA incl. run-rate synergies) leverage3 Normali
Slide 20: Key messages
This content is classified as Internal Key messages Continued solid volume growth in Solid financial performance, Strong progress in creating 2Q23 across all geographies with continued margin expansion the European PayTech leader ▪ Sustained volume growth in all ▪ Revenue growth at +8.1% vs 1H22, wi
Slide 21: Q&A
This content is classified as Internal Q&A
Slide 22: Annex
This content is classified as Internal Annex
Slide 23: Group normalised P&L at constant scope and FX
This content is classified as Internal Group normalised P&L at constant scope and FX 1H22 1H23 Δ% vs. 1H22 2Q22 2Q23 Δ% vs. 2Q22 €M Merchant Solutions 807.6 886.4 +9.8% 437.5 473.9 +8.3% Issuing Solutions 477.3 516.5 +8.2% 249.4 270.0 +8.2% Digital Banking Solutions 173.7 174.2 +0.3% 91.4 91.4 -0.0%
Slide 24: Revenues gross of scheme fees, shifted to Opex
This content is classified as Internal Revenues gross of scheme fees, shifted to Opex For illustrative purpose only Δ% vs. Δ% vs. 2Q23 1H23 2Q22 1H22 €M Merchant Solutions 607.8 +10.8% 1,120.7 +12.2% Issuing Solutions 279.4 +8.4% 534.8 +8.7% Digital Banking Solutions 91.4 -0.0% 174.2 +0.3% Operating
Slide 25: Bridge from Reported EBITDA to Normalised Net Profit
This content is classified as Internal Bridge from Reported EBITDA to Normalised Net Profit €M 759.4 438.9 42.7 295.0 74.9 4.2 108.5 12.0 74.9 225.7 104.7 32.5 12.5 1H23 D&A Interest Non Taxes & 1H23 At constant D&A ∆ Interest Non ∆ Taxes Net profit 1H23 Reported Expenses recurring Minorities Report
Slide 26: Debt maturities as at 2Q23
This content is classified as Internal Debt maturities as at 2Q23 Nexi Group Debt Maturity Schedule1 (€M) Senior Notes Term Loans 1,976 Convertible Notes 1,050 1,400 900 756 1,000 1,050 926 696 507 500 60 2023 2024 2025 2026 2027 2028 2029 Note: (1) Expressed at nominal value, excludes the other M/L
Slide 27: Well diversified revenue base both in terms of business and geography at scale
This content is classified as Internal Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets 1H23 Revenues breakdown 1H23 Costs breakdown by type By business By geography By type Merchant Solutions Installed based Italy Nordics
Slide 28: Investor Relations
This content is classified as Internal Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com