Nexi S.p.a. · MIL:NEXI
Nexi — Q3 2020 Earnings Presentation
23 slides from Nexi's earnings presentation, Nov 11, 2020
Slide 1: 9M 2020 Results Presentation
nexi 9M 2020 Results Presentation November 11th, 2020 1
Slide 2: Disclaimer
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 a number of assumptions, expectations,
Slide 3: Executive Summary: Covid-19 update
Executive Summary Covid-19 update Overall acquiring volumes rapidly recovered across all categories on the back of improving Covid-19 situation, with acceleration in August. Acquiring volumes on Italian cards back to pre-Covid growth level, while Travel/tourism and International travelers contribu
Slide 4: Executive Summary: Results highlights
Executive Summary Results highlights EBITDA at 167.0 €M, +7.0% y/y in 3Q20. EBITDA at 428.9 €M, +0.4% y/y in 9M20 Revenues at 276.0 €M, +1.0% y/y in 3Q20. Revenues at 753.6 €M, -3.6% y/y in 9M20 Key business update Merchant Services & Solutions (52% of Revenues): continued growth of POS instal
Slide 5: Transaction volumes rapid recovery; signals of slowdown after second wave
Transaction volumes rapidly recovery and back to growth in August. Signals of slow down following Covid-19 second wave and restrictions Total Acquiring and Issuing volumes - 7-days rolling % change Y/Y 9.7% 10.0% 7.5% 6.3% 6.6% 6.7% 5.4% 5.5% 0.9% 2.0% 3.5% -1.2% -0.4% -2.6% -2.2% -2.5% 0.0% -2.8% -
Slide 6: Acquiring volumes recovery driven by Italian Cards
Acquiring volumes recovery driven by Italian Cards back to pre-Covid growth in Q3. Foreign Cards slower recovery before second wave new slowdown Acquiring volumes – Italian Cards vs Foreign Cards – Y/Y trend Italian Cards Foreign Cards Total 18% 20 15% 11% 10% 10% 7% 6% 3% 6% 6% 5% 6% 5% 6% 6% 6% 10
Slide 7: Rapid recovery across categories from May
Rapid recovery across categories from May after the easing of lockdown measures and accelerating in August. Slow down following recent restrictions Acquiring volumes by category1 Product category % change Y/Y 2 Jan + Feb March April May June July August Sept LWR 44% for 37% for Basic consumption 15%
Slide 8: Acquiring volumes by product category, Y/Y trend
Rapid recovery across categories from May after the easing of lockdown measures and accelerating in August. Slow down following recent restrictions Acquiring volumes by product category – Y/Y trend Total High Impact consumption Basic consumption Discretionary consumption 27% 25% 28% 30 23% 23% 19% 1
Slide 9: 9M Business update: commercial activities back to pre-Covid levels
9M Business update: commercial activities back to pre- Covid levels. Preparation ongoing to support Government ‘cashless promotion’ initiatives Merchant Services & Solutions Cards & Digital Payments Digital Banking Solutions Accelerated bank interest on International Progress on advanced ATMs. A
Slide 10: Focus on 9M20 Results
Focus on 9M20 Results 2019 and 2020 data include ISP merchant book acquisition 10
Slide 11: Net Revenues back to growth in 3Q; EBITDA back to material growth
Net Revenues back to growth in 3Q, earlier than 2020 Ambition. EBITDA back to material growth in 3Q, slightly positive year-to-date Net Revenues (€M) EBITDA (€M) Margin 55% 57% +0.4% -3.6% 781.8 427.4 428.9 753.6 +7.0% +1.0% 156.2 167.0 273.2 276.0 3Q19 3Q20 9M19 9M20 3Q19 3Q20 9M19 9M20 11
Slide 12: Merchant Services & Solutions: back to growth in 3Q
Merchant Services & Solutions: back to growth in 3Q Net Revenues (€M) Managed Transactions (#M) Key Highlights 52%1 International Schemes -13.3% -4.8% Rapid recovery of Managed in 3Q20 transactions and Value of managed -4.3% -13.9% transactions well progressing in 3Q 2,611 2,250 E-commerce perfo
Slide 13: Cards & Digital Payments: International schemes volumes back to growth
Cards & Digital Payments: International schemes volumes back to growth in 3Q Net Revenues (€M) Managed Transactions (#M) Key Highlights International +3.7% 37%1 Schemes -2.7% in 3Q20 Progressive recovery of Managed transactions and Value of managed -4.7% 1,947 transactions starting from May and 1,
Slide 14: Digital Banking Solutions: marginally impacted by Covid-19
Digital Banking Solutions: marginally impacted by Covid-19 Net Revenues (€M) Key Highlights 11%1 Substantially flat performance despite Covid-19; 3Q revenue growth after the phasing of certain -1.1% low margin banks-related projects 84.7 83.8 in 2Q Digital Banking Solutions +1.1% 28.8 29.2 3Q19 3Q
Slide 15: Strong costs reduction delivered in the quarter and year-to-date
Strong costs reduction delivered in the quarter and year-to-date Total Costs (€M) Key Highlights Personnel Costs Operating Costs Decrease in total costs (-29.7 €M) mainly driven by: -8.4% 354.4 100+ €M cash cost containment plan well on 324.7 track Y/Y continued focus on efficiency 123.7 impac
Slide 16: Well progressing on 100+ €M cash cost containment plan
Well progressing on 100+ €M cash cost containment plan to mitigate Covid-19 impacts. 63% already delivered in six months % % realized in Q320 YTD 63% 100+ Cost containment plan €M Volume-base costs Discretionary spending 59% 78% 47% Operating Expenses Transformation Costs Capex Personnel expenses
Slide 17: Strong cash position; Net Financial Debt / EBITDA affected by Covid-19
Strong cash position. Net Financial Debt / EBITDA temporarily affected by Covid-19 Net Financial Debt (€M) Key Highlights Current Debt structure includes: Sept 19 Dec 19 June 20 Sept 20 1 €B Term Loan due 2024 825 €M Fixed-Rate Note due 2024 500 €M equity-linked due 2027 Gross Financial Debt 1
Slide 18: 2020 Guidance suspended; Ambition to grow EBITDA and EBITDA - Capex
2020 Guidance suspended. Ambition to grow EBITDA and EBITDA - Capex vs 2019 Previous Guidance1: suspended 2020 Ambition 2020 volume-driven revenues depending on speed of recovery and Net 5-7% annual net revenue growth over medium term, Revenue growth positive in 3Q, dynamics by sector Revenues t
Slide 19: Q&A
Q&A 19
Slide 20: Annex
Annex 20
Slide 21: P&L 9M19 9M20
P&L Δ% vs. Δ% vs. 9M19 9M20 3Q19 3Q20 €M 9M19 3Q19 Merchant Services & Solutions 411.1 393.6 -4.3% 146.2 150.7 +3.1% Cards & Digital Payments 286.0 276.3 -3.4% 98.2 96.1 -2.1% Digital Banking Solutions 84.7 83.8 -1.1% 28.8 29.2 +1.1% Operating revenue 781.8 753.6 -3.6% 273.2 276.0 +1.0% Personnel &
Slide 22: SIA performance
SIA performance Revenues (€M) Cards & Merchant Solutions 68%1 Key Highlights Revenues, €M 0.5% -0.4% Resilient and diversified business 2.1% 357.3 355.9 model 523.3 525.8 130.2 133.0 Increase in transaction volumes 2.3% 3Q19 3Q20 9M19 9M20 during 3Q in Cards&Merchant Solutions and Digital Paymen
Slide 23: Investor Relations
Investor Relations investor.relations@nexi.it Stefania Mantegazza stefania.mantegazza@nexi.it 23