Slide 1: Earnings webcast and conference call Second Qtr 2022
Earnings webcast and conference call SECOND QTR 2022 August 3, 2022 Exhibit 99.2
Slide 2: Brad Windbigler, Head of Treasury and Investor Relations
Brad Windbigler Head of Treasury and Investor Relations 2
Slide 3: Forward-looking statements
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 predict. Actual
Slide 4: Devin McGranahan, Chief Executive Officer
Devin McGranahan Chief Executive Officer 4
Slide 5: Western Union – Highlights
Western Union – Highlights 5 Company Results Highlights $1.1B GAAP 23.2% $0.50 *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. Revenue Op. Margin Adj.* 23.3% EPS $0.51 GAAP Adj.* GAAP
Slide 6: Q2 Business Update
Q2 Business Update 6 Digital Retail In the near term, working to improve new customer acquisition, the on-boarding experience, and other features to impact retention Longer-term, improvements will be driven by the rollout of our next generation platforms, consolidating 50+ country specific applicati
Slide 7: Activating Western Union's Receiver Base
Activating Western Union’s Receiver Base 7 80M Western Union Receivers in 20211 Potential to enhance the value proposition for customers who may be underserved by the market today 1 Western Union Business Research 2 World Bank Migration and Development Brief 36 May 2022; 2022 forecast inbound princi
Slide 8: WU Experience Centers and Agents
WU Experience Centers Agents Brazil Retail Revenue Brazil Retail Locations Growing Exclusive Branded Distribution Western Union Concept Store, Rome Opportunity to leverage network to activate the digital to retail escalator Assessing the potential of more concept stores in places like Rome Exclusive
Slide 9: Raj Agrawal, Chief Financial Officer
Raj Agrawal Chief Financial Officer 9
Slide 10: 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%. *Note: See appendix for reconciliation of
Slide 11: Q2 Consumer-to-Consumer Trends
Q2 Consumer-to-Consumer Trends Regions Revenue Growth/(Decline) Constant Currency Revenue Growth/(Decline)* Transaction Growth/(Decline) % of C2C Revenue North America (2%) (2%) (6%) 40% Europe & CIS (21%) (16%) (30%) 28% MEASA (4%) (3%) (3%) 16% LACA 2% 4% 4% 10% APAC (10%) (6%) (11%) 6% Total C2C
Slide 12: Q2 Business Solutions and Other Highlights
Q2 Business Solutions and Other Highlights 12 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
Slide 13: Q2 Total Company Operating Margin
Q2 Total Company Operating Margin 13 *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. GAAP GAAP Adjusted* Key factors driving the increase in operating margin: Changes in foreign currency, lower compensation-related expenses, and product mix Adjusted operating margin wa
Slide 14: Q2 Segment Operating Margins
Q2 Segment Operating Margins 14 C2C Segment Other
Slide 15: 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 15 *Note: See appendix f
Slide 16: 2022 Outlook
Note: The 2021 financial outlook assumes no material worsening in macro-economic conditions or the COVID-19 pandemic GAAP Revenue Approximately -11% to -13% GAAP & Adjusted Operating Profit Margin* A range of 20% to 21% Approximately 20% GAAP Effective Tax Rate GAAP Earnings per Share $2.18 to $2.28
Slide 17: Questions & Answers
\WU Western Union Questions & Answers
Slide 18: Appendix
18 Appendix Second Quarter 2022 Earnings Webcast and Conference Call
Slide 19: Non-GAAP financial measures
Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are
Slide 20: Consolidated Metrics
20 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)% Consolidated revenues, constant currency, excluding Busin
Slide 21: C2C Segment Regional Metrics
21 Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 C2C Segment Regional Metrics - YoY % change NA region revenues (GAAP) 4% (2)% 2% 1% (1)% (2)% (2)% NA region foreign currency translation impact (k) 0% 0% 0% 0% 0% 0% (0)% NA region revenues, constant currency (non-GAAP) 4% (2)% 2% 1% (1)% (2)% (2)%
Slide 22: Percent of C2C Revenue and Other Segment Metrics
22 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% MEASA region revenues 15% 15% 15% 15% 17% 16% 17% LACA region revenues 9% 9% 9% 9% 9% 10% 9% APAC region revenues 6% 7% 7% 7% 6% 6% 6
Slide 23: Consolidated Metrics: Revenues
23 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 Revenues, constant currency (non-GAAP) $ 1,260.3 $ 1,283.5
Slide 24: Consolidated Metrics: Net Income
24 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 N/A Debt extinguishment costs (o) 14.8 — — 14.8 N/A
Slide 25: Consolidated Metrics cont.
25 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 Solutions (q) N/A (6)% 0% (2)% N/A N/A N/A Acquisition and divestiture costs (m) 0% 0% 0% 0% 0% 0% 0% Gain on investment sale (n) 0% 0% (1
Slide 26: C2C Segment Metrics
26 Notes 2Q21 3Q21 4Q21 FY2021 1Q22 2Q22 YTD 2Q22 C2C Segment 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, constant currency (non-GAAP) $ 1,095.0 $ 1,095.1 $ 1,
Slide 27: 2022 Consolidated Outlook Metrics
27 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 Russia/Belarus exit costs (s) 0.5% 0.5% Operating margi
Slide 28: Non-GAAP related notes
28 Non-GAAP related notes: (k) Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the
Slide 29: Non-GAAP related notes (continued)
29 (s) Represents the exit costs incurred in connection with the divestiture of the Business Solutions business and the suspension of operations in Russia and Belarus, primarily related to severance and non-cash impairments of property and equipment, an operating lease right-of-use asset, and other
Slide 30: Thank You
\WU Thank You Western Union