Slide 1: 2015 annual results
2015 annual results Tuesday, February 23", 2016
Slide 2: Disclaimer
Disclaimer ● This document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a number of risks and uncertainties tha
Slide 3: 2015 highlights
2015 highlights Gilles Grapinet, Chief Executive Officer
Slide 4: Continued acceleration of the revenue growth along the year
Continued acceleration of the revenue growth along the year • Revenue: €1,227.0 +4.4% organic growth • Continuous growth acceleration of the company from 2.2% in H1 2014 to 4.6% in H2 2015 Growth acceleration • Very strong Q4 2015 notably in MS&T and FP&L Worldline well positioned to pursue accelera
Slide 5: Profitability improvement delivered on track with plan
Profitability improvement delivered on tract with plan • OMDA: € 235.3 million +50 bp Vs 2014 as planned • Success of TEAM’s profitability improvement programs Transformation of the company • Revenue acceleration converted into profitability and profitability improvement improvement Transformation p
Slide 6: A very strong free cash flow in 2015
A very strong free cash flow in 2015 • Strong free cash flow generation: € 128.5 million +12.3% Vs 2014 Exceeding FCF • FCF/OMDA conversion of 55% generation guidance of • Net cash position reaching € 323.3 million €120-125m Continued focus on improvement of the FCF conversion 6 | CONFIDENTIAL © Wor
Slide 7: Confirmation of Worldline position as a natural consolidator in the European payment industry
Confirmation of Worldline position as a natural consolidator in the European payment industry • Worldline to join forces • Komerční banka with Equens to strengthen and Worldline will form its pan-European leadership a partnership for providing in payment services merchant acquiring and payment proce
Slide 8: Worldline emerging as a leading brand and recognized for its innovation
Worldine emerging as a leading brand and recognized for its innovation Strong R&D focus for next generation payment Worldline ranked by Ovum as one of the 5 world leaders in Card Management Services. 8 | CONFIDENTIAL © Worldline
Slide 9: 2015 Financial performance
2015 Financial performance Bruno Vaffier, Chief Financial Officer
Slide 10: Constant scope and exchange rate figures reconciliation
Constant scope and exchange rate figures reconciliation FY 2014 FY 2015 FY 2014 Exchange FY 2015 In € million statutory FY 2014* Var. rates effect actuals (reported) Revenue 1,149.3 26.2 1,175.5 1,227.0 +4.4% OMDA 215.1 4.4 219.5 235.3 OMDA% 18.7% 18.7% 19.2% +0.5 pt * At constant scope and 2015 exc
Slide 11: 2015 Financial performance overview
2015 Financial performance overview Revenue OMDA OMDA % In € million FY 2015 FY 2014* % Growth FY 2015 FY 2014* FY 2015 FY 2014* Merchant Services & Terminals 401.9 379.2 +6.0% 77.8 80.4 19.4% 21.2% Financial Processing & Software Licensing 413.8 402.4 +2.8% 107.7 101.4 26.0% 25.2% Mobility & e-Tran
Slide 12: Continuous growth acceleration since beginning of 2014
Continuous growth acceleration since beginning of 2014 From +2.2% in H1 2014 to +4.6% in H2 From +2.9% in H1 2014 to +5.7% in H2 2015 2015 (+6.3% in Q4 2015) 12 | CONFIDENTIAL © Worldline
Slide 13: Merchant Services & Terminals
Merchant Services & Terminals Merchant Services & Terminals In € million FY 2015 FY 2014* % Growth Revenue 401.9 379.2 +6.0% OMDA 77.8 80.4 OMDA% 19.4% 21.2% -1.8pt * At constant scope and 2015 exchange rates Revenue OMDA • Acceleration of growth in Commercial Acquiring • OMDA impacted in H1 by a st
Slide 14: Financial Processing & Software Licensing
Financial Processing & Software Licensing Financial Processing & Software Licensing In € million FY 2015 FY 2014* % Growth Revenue 413.8 402.4 +2.8% OMDA 107.7 101.4 OMDA% 26.0% 25.2% +0.8 pt * At constant scope and 2015 exchange rates Revenue OMDA • Confirmed dynamism of Online Banking Services: ne
Slide 15: Mobility & e-Transactional Services
Mobility & e-Transactional Services Mobility & e-Transactional Services In € million FY 2015 FY 2014* % Growth Revenue 411.3 393.8 +4.4% OMDA 68.3 54.9 OMDA% 16.6% 13.9% +2.7 pt * At constant scope and 2015 exchange rates Revenue OMDA • Double-digit growth in e-Consumer & Mobility with several new O
Slide 16: Income statement
Income statement In € million 2015 2014 Key Observations OMDA 235.3 215.1 • Rationalization expenses include Operating Margin 174.9 170.3 costs relating to the continuation of the TEAM Staff reorganization -6.6 -3.4 program and office premises Rationalization and associated costs -6.2 -8.7 reorganiz
Slide 17: Cash flow statement
Cash flow statement (In € million) 2015 2014 Key Observations Operating Margin before Depreciation and 235.3 215.1 Amortization (OMDA) • Capex is broadly in line with the Capital expenditures -67.0 -68.9 multi-year investment plan. Change in working capital requirement 11.9 22.8 Cash from operation
Slide 18: Simplified balance sheet
Simplified balance sheet December December Key Observations In EUR million 31, 2015 31, 2014 Goodwill 380.1 374.8 Intangible assets 123.7 105.0 • Goodwill mainly derives from the acquisition of Banksys/BCC Tangible assets 66.2 72.6 Net non-current financial assets 56.4 9.0 • Intangible assets increa
Slide 19: Equens: reminder of the key financial terms
Equens: reminder of the key financial terms PaySquare acquisition cash out of € 72 million Cash free combination of the processing activities to set up “Equens Worldline Company”, controlled by Worldline at 63.6%* Liabilities (pensions in particular) at closing to be fully compensated Call option ex
Slide 20: Equens transaction: Reminder of the impacts on revenue, OMDA and EPS
Equens transaction: Reminder of the impacts on revenue, OMDA and EPS (closing in Q2 2016) • Neutral on FPL short-term growth profile, positive in the medium term Impact on through revenue synergies revenue growth • Full benefit of the c. € 40 million run-rate synergies in 2018 Impact on OMDA • Appli
Slide 21: Commercial & operational performance
commercial & operational performance Marc-Henri Desportes, General Manager
Slide 22: Fast increase in payment volumes on all platforms
Fast increase in payment volumes on all platforms +9% +7% Number Number of of issuing commercial transactions +23% acquiring number of online transactions transaction Steady rise acquired in card payment volumes 1.3 million Number of active +16% wallets eSEPA >X2 Strong growth transactions in new pa
Slide 23: Capture of new opportunities from digital and structural transformation (1/3: MS&T)
Capture of new opportunities coming from digital and structural transformation (1/3: MS&T) Merchant wallets Online acceptance + acquiring Leading global Digital cosmetics retail chain Strong • Commercial acquiring momentum of the business • Value added services (loyalty, data analytics…) fundamental
Slide 24: New Acquiring alliance with Komerční banka
New Acquiring alliance with Komerční banka • Komerční banka and Worldline will form a partnership for providing merchant • Czech Republic: a very attractive acquiring and payment processing and sizable market for Payments, services to retailers under brand name KB with significant growth and upside
Slide 25: Capture new opportunities from digital and structural transformation (2/3: FP&L)
Capture new opportunities coming from digital and structural transformation (2/3: FP&L) Online banking and Strong SEPA volumes authentification Bank and fraud BCMC Mobile Wallet management International expansion NFC mobile payments Strong • Issuing processing momentum of the business • Acquiring pr
Slide 26: Capture new opportunities from digital and structural transformation (3/3: MeTS)
Capture new opportunities coming from digital and structural transformation (3/3: MeTS) Seamless Secured Transport transactional Connected payment platforms Living (Sqool…) International expansion Strong • e-Ticketing (Route Management, Smart Ticketing) momentum of the business • e-Government (Digit
Slide 27: Update on the Radar contract renewal
Update on the Radar contract renewal In the former contract, Worldline was coordinating many Tender process subcontracted services. The new tender did split the former scope into independent lots. As announced in Q3 2015, Worldline not selected for the renewal of the core IT system of the Radar cont
Slide 28: TEAM program delivering as planned
Team program delivering as planned Number of business account plans Contract coverage review for reviewed project margin improvement (% of yearly revenue) 61 40% 40% 31 30% N/A 2014 2015 2016 est. 2014 2015 2016 est. Lean coverage Off-shore ratio 96% +35% 16.1% 75% 13.9% 54% 11.9% 2014 2015 2016 est
Slide 29: Translation of Worldline's R&D and innovation into new commercial wins in 2015
Translation of Worldline’s R&D and innovation into new commercial wins in 2015 Allowing banks to Allowing banks to Trusted decrease the cost of Authenti decrease the cost of Authenti fraud ACS cation fraud cation HUB ING for 5 European banks 9 Luxemburg Banks Providing bank customers with Allowing b
Slide 30: Update on Equens transaction
Update on Equens transaction Marc-Henri Desportes, General Manager
Slide 31: Carve-out Integration (phase 1) TEAM work streams
Carve-out Integration (phase 1) TEAM work streams Work stream weekly committee: Worldline Work stream weekly committee: Equens leads Monthly review C01 – Technical Operations Human Resources I01 – Sales effectiveness C02 – Applications I02 – Contract profitability Finance C03 – Customer contracts I0
Slide 32: Conclusion
conclusion 2015 annual results Gilles Grapinet, Chief Executive Officer
Slide 33: 2016 full year guidance
2016 full year guidance Excluding any contribution from Equens and Paysquare Revenue c. 3% organic growth OMDA c. +80 bp vs. 2015 Free € 135 million to € 140 million Including the exceptional cash-out linked to the Equens Cash Flow transaction costs (c.€12m) 33 | CONFIDENTIAL © Worldline
Slide 34: Complementary benefits of the Equens and KB transactions
Complementary benefits of the Equens and KB transactions Strongly enhancing the new profile of the enlarged group • Geographical diversification: • Netherland, • C.100 million of cards under management Germany, Poland with Paysquare • c. 10 billion SEPA payment transactions processed annually • Czec
Slide 35: Q&A session
O&A session 2015 annual results
Slide 36: 2016 revenue growth ambition bridge
2016 revenue growth ambition bridge Underlying business growth at c. +8% *: impact of the termination of the VOSA contract in Q3 2015 and hypothesis regarding the Radar contract finishing at the end of June 2016 36 | CONFIDENTIAL © Worldline
Slide 37: For more information, please contact
For more information, please contact: David Pierre-Kahn, Head of Investor Relations T+33134349066 | M+336 28514596 david pierre-kahn@worldline.com worldline @@@@@@ an atos company e-payment services