Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q2 2022 Earnings Presentation
31 slides from Western Union Company (the)'s earnings presentation, Aug 3, 2022
Slide 1: Earnings webcast and conference call
Earnings webcast and conference call SECOND QTR 2022 August 3, 2022
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: Devin McGranahan, Chief Executive Officer
Devin McGranahan Chief Executive Officer 4
Slide 5: Western Union – Highlights
Western Union – Highlights Company Results Highlights Revenue $1.1B GAAP Op. Margin 23.2% 23.3% GAAP Adj.* EPS $0.50 $0.51 GAAP Adj.* *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. 5
Slide 6: 2021 ESG Report Highlights
2021 ESG Report Highlights Furthering Promoting the Advancing Diversity, Economic Integrity of Money Equity, and Other Prosperity Movement Inclusion (DEI) Highlights • Launched a digital banking • The Company’s reported • Created a newly formed • Disclosed Scope 1 and 2 platform in Germany and consu
Slide 7: Q2 Business Update
Q2 Business Update Digital Retail • In the near term, working to improve new • Prioritize delivering a best-in-class customer and customer acquisition, the on-boarding experience, agent experience and marketing program and other features to impact retention • Leveraging the retail network to cost ef
Slide 8: Activating Western Union's Receiver Base
Activating Western Union’s Receiver Base Untapped opportunity to engage with millions Potential to enhance the value of Western Union receivers in important regions like LACA proposition for customers who may be underserved by the market today 80M Western Union Global Receivers in 20211 $140B Inboun
Slide 9: Growing Exclusive Branded Distribution
Growing Exclusive Branded Distribution Brazil Retail Locations Opportunity to leverage the network to activate the retail to digital escalator Assessing the potential of more experience centers in places like Rome Exclusive branded distribution allows for more influence over the customer relationshi
Slide 10: Raj Agrawal, Chief Financial Officer
Raj Agrawal Chief Financial Officer 10
Slide 11: Q2 Business Trends
Q2 Business Trends Consolidated revenues of $1.1 billion decreased 12% reported, or 4% constant currency excluding contributions from Business Solutions compared to the prior year period.* Suspension of operations in Russia & Belarus impacted revenue by 3%. 25% Digital Money Transfer 68 million C2C
Slide 12: Q2 Consumer-to-Consumer Trends
Q2 Consumer-to-Consumer Trends Suspension of operations in Russia & Belarus impacted C2C revenues by 3% and transactions by 8% Regions Revenue Constant Currency Revenue Transaction % of C2C Growth/(Decline) Growth/(Decline)* Growth/(Decline) Revenue North America (2%) (2%) (6%) 40% Europe & CIS (21%
Slide 13: Q2 Business Solutions and Other Highlights
Q2 Business Solutions and Other Highlights Business Solutions Second closing is expected to be completed in the fourth quarter, subject to regulatory approval Until the second closing, the Company will continue to recognize revenue and operating profit plus offsetting contractual payments to the buy
Slide 14: Q2 Total Company Operating Margin
Q2 Total Company Operating Margin Key factors driving the increase in operating margin: 23.2% 23.3% Changes in foreign currency, lower compensation-related expenses, and product mix 20.2% 19.8% Adjusted operating margin was impacted by the same factors above and excludes: Divestiture and acquisition
Slide 15: Q2 Segment Operating Margins
Q2 Segment Operating Margins C2C Segment Other 40.1% 20.7% 22.0% 16.2% 2Q21 2Q22 2Q21 2Q22 15
Slide 16: Financial Highlights
Financial Highlights As of June 30, 2022 Second Quarter EPS: GAAP / Adjusted* $0.50 / $0.51 Cash Flow from Operations $307 million Dividends Paid $182 million Share Repurchases $171 million Cash Balance, June 30, 2022 $1.2 billion Debt outstanding, June 30, 2022 $2.7 billion *Note: See appendix for
Slide 17: 2022 Outlook
2022 Outlook GAAP GAAP & Adjusted GAAP Effective GAAP Earnings per Revenue Operating Profit Margin* Tax Rate Share Approximately -11% to -13% A range of 20% to 21% Approximately 20% $2.18 to $2.28 Adjusted Adjusted Effective Tax Adjusted Earnings per Revenue Rate Share* Mid-single digit decline Mid-
Slide 18: Questions & Answers
\wu Western Union Questions & Answers 18
Slide 19: Appendix
Appendix Second Quarter 2022 Earnings Webcast and Conference Call 19
Slide 20: 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 21: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 Consolidated Metrics Consolidated revenues (GAAP) - YoY % change 16% 2% 1% 5% (4)% (12)% (8)% Consolidated revenues, constant currency (non-GAAP) - YoY % change (a) 13% 2% 2% 4% (2)% (8)% (5)% Conso
Slide 22: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 C2C S egment Regional Metrics - YoY % change NA region revenues (GAAP) 4% (2)% 2% 1% (1)% (2)% (2)% NA region foreign currency translation imp act (k) 0% 0% 0% 0% 0% 0% (0)% NA region revenues, cons
Slide 23: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 % of C2C Revenue NA region revenues 37% 37% 38% 37% 39% 40% 39% EU & CIS region revenues 33% 32% 31% 32% 29% 28% 29% M EASA region revenues 15% 15% 15% 15% 17% 16% 17% LACA region revenues 9% 9% 9%
Slide 24: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 Consolidated Metrics (a) Revenues (GAAP) $ 1,289.7 $ 1,286.3 $ 1,284.8 $ 5,070.8 $ 1,155.7 $ 1,138.3 $ 2,294.0 Foreign currency translation impact (k) (29.4) (2.8) 14.8 (18.3) 33.2 42.1 75.3 Revenue
Slide 25: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 (d) Net income (GAAP) $ 222.5 $ 232.7 $ 168.8 $ 805.8 $ 293.3 $ 194.0 $ 487.3 Acquisition and divestiture costs (m) 5.6 5.5 3.7 15.7 3.3 0.9 4.2 Gain on investment sale (n) (47.9) — — (47.9) N/A N/A
Slide 26: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 Consolidated Metrics cont. (e) Effective tax rate (GAAP) 14% 20% 7% 14% 19% 18% 19% Change in permanent reinvestment assertion related to the sale of Business (q) Solutions N/A (6)% 0% (2)% N/A N/A
Slide 27: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 C2C S egment Metrics (g) Revenues (GAAP) $ 1,127.1 $ 1,104.5 $ 1,111.5 $ 4,394.0 $ 999.0 $ 1,026.9 $ 2,025.9 Foreign currency translation impact (k) (32.1) (9.4) 6.2 (46.4) 20.8 28.1 48.9 Revenues,
Slide 28: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 2022 Consolidated Outlook Metrics Notes Range Operating margin (GAAP) 20.0% 21.0% Impact from acquisition and divestiture costs (m) 0.0% 0.0% Impact from the sale of Business Solutions, including exit costs (r), (s) (0.5)% (0.5)% Impact from Rus
Slide 29: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 29
Slide 30: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 30
Slide 31: Thank You
\wU Thank You Western Union
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