Wirecard Ag · HAM:WDI
Wirecard — 9M 2019 Earnings Presentation
32 slides from Wirecard's earnings presentation, Nov 6, 2019
Slide 1: Investor Presentation Q3/9M 2019 results
Investor Presentation Q3/9M 2019 results, 6 November 2019
Slide 2: Highlights
Highlights € 124.2 bn Transaction volume 9M 2019 Wirecard is one of the fastest growing financial commerce platforms that offers merchants and consumers a continuously 313 k expanding payment ecosystem over an Merchants integrated B2B2C approach. © Wirecard 2019 2
Slide 3: Global Megatrends Driving Wirecard's Strategy
Global Megatrends Driving Wirecard’s Strategy 7 Global payment megatrends… …driving our strategy Cashless Internet Financial New Mobility 1 Globalization of own footprint, customers and World Technology Inclusion Concepts and services the shift from cash & IOT Increasing demand technologies will to
Slide 4: Financial Platform
Financial Platform Call center Transaction / Analytics / Mobile banking RFM analysis Artificial intelligence Risk Value-added management Value-added services in services to digital banking Credit increase topline White label / White label / Co-branding Co-branding Big data Peer-to-peer / B2B Loyalty
Slide 5: Key Figures
Key Figures Transaction Volume Revenues* EBITDA* in EUR billion in EUR million in EUR million 37.7% 36.7% 38.4% 553.1 124.2 yoy yoy 1,941.3 yoy 399.8 90.2 1,420.1 9M 2018 9M 2019 9M 2018 9M 2019 9M 2018 9M 2019 Operating Cash Flow Free Cash Flow (adjusted) in EUR million in EUR million 411.8 60.0% 4
Slide 6: Organic and M&A Related Growth
Organic and M&A Related Growth Transaction Volume Revenue* EBITDA* in EUR billion in EUR million in EUR million 1.0 4.1 34.8% 26.9 38.1% 552.1 33.2% organic 120.1 organic organic 1,914.4 399.8 90.2 1,420.1 M&A Organic 9M 2018 9M 2019 9M 2018 9M 2019 9M 2018 9M 2019 Total transaction volume is up E
Slide 7: Merchant View
Merchant View Transaction volume* by geographies** and industry 9M 2019 Transaction volume by geographies Transaction volume industry allocation Digital goods 37.9% € 58.6 bn Europe up EUR 16.9 bn 56.0% yoy growth € € 65.5 bn Outside Europe Consumer goods 46.5% Travel & mobility up EUR 14.5 bn 15.6%
Slide 8: Customer Gains and Partnerships
Customer Gains and Partnerships Examples of customer gains, business extensions and new partners in the first nine months of 2019 © Wirecard 2019 8
Slide 9: boon.PLANET Evolution
boon.PLANET Evolution First payment app with fully digital neo-banking services launched in Europe Functionality today: Functionality tomorrow: Digital Bank Account Global Financial Service Platform Free virtual & physical debit Mastercard Credit / overdraft allowance Personal finance manageme
Slide 10: Market Entry China
Market Entry China Acquisition of a controlling stake of 80% in Beijing-based AllScore Payment Services; Call Option to acquire remaining 20% stake after two years Unique license portfolio for a foreign investor in China, including a cross-border license Strong growth potential by supporting Chinese
Slide 11: Market Entry China
Market Entry China Wirecard’s Business Development Initiatives Local Acquiring to Wirecard‘s international merchant base, which gains access to Chinese consumers Local Acquiring & Acceptance of widely-used digital mobile payments Repatriation Repatriation of acquired funds to home country of m
Slide 12: Wirecard's Operating Hubs
Wirecard’s Operating Hubs One platform hosted globally and operated in various hubs Dublin* Financial Services Merchant settlement & payout processing Conshohocken** Munich* Merchant billing & invoice generation Dubai* Financial reconciliation Singapore** São Paulo** * Core global hubs ** Regi
Slide 13: Wirecard's unique global License Framework
Wirecard´s unique global License Framework … enabling strong conversion rates and global coverage Overview Coverage Key benefits for merchants Full banking license Best in class risk Multiple e-money management on global acquiring & issuing platform 33 countries licenses Broad payment- and
Slide 14: Overview: Value Added Services Digital Lending
Overview: Value Added Services Digital Lending Different Lending Products Description Fintech Loan Digital Credit Merchant Cash Advance Support Fintechs with liquidity for their Access to liquidity and working capital Early settlement to the merchant to own products for merchants improve liqui
Slide 15: Outlook
Outlook © Wirecard 2019 15
Slide 16: Generating New Business Models
Generating New Business Models… … by combining digital acquiring, issuing and financial services Integrated payment Customer touchpoints and data streams Customer engagement channels At the cashier Payment instruments Payment acceptance Open- and closed loop acceptance, DCC, tax free, loyalty, Prepa
Slide 17: Data Driven Services
Data Driven Services Wirecard’s omnichannel offering to further increase conversion rates Location Card schemes Cashier Smart terminals E-Commerce M-POS solution In store tablets Alternative payments © Wirecard 2019 17
Slide 18: Market Environment
Market Environment Cashless payments expected to grow by around 14 percent per year up to 2021* Convergence of all sales channels Transition Ongoing from cash to digitalisation electronic payments Real-time payments © Wirecard 2019 * Capgemini: World Payments Report 2018 18
Slide 19: Company Guidance FY 2020
Company Guidance FY 2020 Guidance is based on Increase in cashless payments globally Growth of the global e-commerce market and continuing trend towards digitalisation Increase of processed transaction volume with EBITDA guidance of existing and new clients EUR 1.00 - 1.12 billion for Econom
Slide 20: Our Visionary Playing Field
Our Visionary Playing Field Shift towards AI-enabled value-added … raises our long-term financial aspirations and financial-added services … Revenues, in EUR bn 31% >810 Transaction yoy Volume (EUR bn) 125 710 Value-added Financial- 2018 2025 services added Payments (incl. AI-enabled) services Other
Slide 21: Financials
Financials © Wirecard 2019 21
Slide 22: Financial Highlights
Financial Highlights in EUR million 9M 2019 9M 2018 ** Change Revenues 1,941.3 1,420.1 36.7% EBITDA 553.1 399.8 38.4% EBIT adjusted* 476.9 350.3 36.1% EBIT 450.9 321.4 40.3% Income tax expenses 49.4 53.0 -6.8% Earnings after taxes 386.7 252.4 53.2% Earnings per share (basic and diluted) in EUR 3.13
Slide 23: Consolidated statement of profit or loss
Consolidated statement of profit or loss in EUR million 9M 2019 in % of revenues 9M 2018* in % of revenues* Revenues 1,941.3 1,420.1 Own work capitalised 32.4 31.1 Cost of materials 1,039.8 53.6% 767.0 54.0% Gross profit 933.9 48.1% 684.2 48.2% Personnel expenses 213.4 11.0% 172.0 12.1% Other operat
Slide 24: Consolidated statement of financial position
Consolidated statement of financial position Assets in EUR million 30 Sept 2019 31 Dec 2018 Equity and liabilities in EUR million 30 Sept 2019 31 Dec 2018 Goodwill 725.9 705.9 Total equity 2,314.8 1,922.7 Customer relationships 445.2 452.1 Non-current interest-bearing liabilities 1,657.7 1,348.7 Int
Slide 25: Net cash bridge 9M 2019
Net cash bridge 9M 2019 in EUR million 5,000 1,163 4,500 4,000 -340 3,500 3,287 2 3,000 384 -1,168 2,289 2,500 2,000 -657 1,500 1,000 870 500 -1,803 0 Cash and cash Interest bearing Receivables of Current interest Customer Liabilities of Net cash position Non-current Non-current Net cash position eq
Slide 26: Cash flow and income tax analysis
Cash flow and income tax analysis in EUR million 9M 2019 9M 2018 * Change Cash flow from operating activities (adjusted) 486.8 310.1 57.0% Operative capex -75.0 -52.8 42.0% Free cash flow 411.8 257.3 60.0% Earnings after taxes 386.7 252.4 53.2% Cash conversion in % 106.5 102.0 in EUR million 9M 2019
Slide 27: Wirecard AG board commissioned independent review conducted by KPMG
Wirecard AG board commissioned independent review conducted by KPMG Review scope Accusations raised by the British newspaper "Financial Times“ Allegations regarding 3rd party acquiring business particularly Al Alam Allegations regarding certain aspects of Merchant Cash Advance business Release
Slide 28: Financing structure
Financing structure Main Funding Sources of Wirecard Group In EUR million RCF* Public Bond Convertible Bond Softbank The proceeds of the EUR 900 million 900 convertible bond have been partially used - Repayment of RCF utilizations 500 (EUR 340 million) - Share Buyback program: 500 up to EUR 200 mill
Slide 29: Wirecard Share Buyback Program
Wirecard Share Buyback Program Authorization was resolved by the annual general meeting on 20 June 2017 for 12,356,558 shares Start date: 5 November 2019 The shares will be bought back within a twelve-month period (end date 5 November 2020) under the following conditions: Total number of sha
Slide 30: Compliance update and embedded strategy
Compliance update and embedded strategy Governance Empowered compliance organization implementation Compliance and risk Establishment of an uniform compliance culture globally strategy aligned with Vision 2025 Risk taxonomy (definition and prioritization of risk types) © Wirecard 2019 30
Slide 31: Investor Relations
Investor Relations ir@wirecard.com Iris Stöckl Stephanie Malgara VP Corporate Communications/Investor Relations Senior Manager Investor Relations iris.stoeckl@wirecard.com stephanie.malgara@wirecard.com T: +49 (0) 89 4424 1788 T: +49 (0) 89 4424 191348 Susanne Herrle Kristin Kleine Beerink Principal
Slide 32: Disclaimer
Disclaimer “This presentation has been prepared by Wirecard AG (the “Company”) and is for information purposes only. This presentation contains only summary information and does not purport to be, nor is it intended to be, comprehensive. The information in this presentation has not been independentl