Nexi S.p.a. · MIL:NEXI
Nexi — 9M 2022 Earnings Presentation
25 slides from Nexi's earnings presentation, Nov 10, 2022
Slide 1: 9M22 Results Presentation
This content is classified as Internal 9M22 Results Presentation November 10th, 2022
Slide 2: Disclaimer
This content is classified as Internal 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
Slide 3: Key messages
This content is classified as Internal Key messages Continued volume growth Solid financial performance Continued progress in creating in 3Q22 across all geographies in 9M22 the European PayTech leader ▪ Double-digit volume growth in all ▪ Revenue growth at +7% vs 3Q21 and ▪ Group strategy and mediu
Slide 4: Strong double-digit volume growth in 3Q22
This content is classified as Internal Strong double-digit volume growth in 3Q22 Trend vs 2021 High impact consumption Basic consumption Discretionary consumption Total Net of discontinued clients due to optimised risk profile --- Italian Cards --- Foreign Cards ITALY 180 162% 440 438% 160 245% 139%
Slide 5: Merchant Solutions: key business update
This content is classified as Internal Merchant Solutions: key business update 9M22 TRX Value Key Business Highlights 54%1 Examples of recent ▪ Continued strong sales performance across all geographies vs last year, especially in Switzerland and customer wins & upsells Poland. Terminals installed ba
Slide 6: Focus on 9M22 results
This content is classified as Internal Focus on 9M22 results
Slide 7: Solid Revenue and EBITDA growth, despite tougher Y/Y comparison
This content is classified as Internal Solid Revenue and EBITDA growth, despite tougher Y/Y comparison. Confirmed strong EBITDA margin expansion Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin +12% Y/Y 52% 54% 45% 49% Gross of scheme fees +8.2% 2,380.5 2,199.7 +16.5% +11% Y/Y 1,161.2 G
Slide 8: Merchant Solutions: solid revenue growth supported by strong volumes
This content is classified as Internal Merchant Solutions: solid revenue growth supported by strong volumes and installed base expansion Net Revenues (€M) Managed Transactions (#M) Key Highlights +18% Y/Y International +19.0% ▪ Solid Revenue growth, despite 55%1 Gross of scheme fees Schemes tougher
Slide 9: Issuing Solutions: positive revenue growth supported by sustained volumes
This content is classified as Internal Issuing Solutions: positive revenue growth supported by sustained volumes Net Revenues (€M) Managed Transactions (#M) Key Highlights 31%1 International Schemes +19.9% ▪ Positive revenue growth, led by Italy while Nordics still affected by +16.5% previously disc
Slide 10: Digital Banking Solutions: flat revenue performance in the quarter
This content is classified as Internal Digital Banking Solutions: flat revenue performance in the quarter Net Revenues (€M) Key Highlights ▪ Flat revenue Y/Y performance in 3Q22, with projects / initiatives 14%1 growth offset by banking -0.9% consolidation in Italy occurred in 2021 330.5 327.7 and N
Slide 11: Strong revenue growth in Italy supported by strong touristic season
This content is classified as Internal Strong revenue growth in Italy supported by strong touristic season. 3Q growth in other geographies affected by tougher Y/Y comparison and specific factors 54%1 Italy Nordics2 21%1 +12% Y/Y Gross of scheme fees +7.8% +10% Y/Y +14% Y/Y Gross of scheme fees Gross
Slide 12: Solid cost performance thanks to operating leverage, cost control and synergies
This content is classified as Internal Solid cost performance thanks to operating leverage, cost control and synergies Total Costs (€M) Key Highlights Personnel Costs +9% Y/Y Gross of scheme fees ▪ 3Q22 total costs under control vs last year, Operating Costs despite volume and business growth +1.3%
Slide 13: Confirmed ~105 €M cash synergies in 2022
This content is classified as Internal Confirmed ~105 €M cash synergies in 2022 Cash synergies (€M) Key Highlights ~365 €M total recurring cash synergies expected by 2025 Target >65€M one-off capex savings already achieved ▪ Cost synergies coming from: - tech platforms and infrastructure optimizatio
Slide 14: Net Financial Debt / EBITDA in line with plan
This content is classified as Internal Net Financial Debt / EBITDA in line with plan, at ˜2.8x including run-rate synergies Net Financial Debt (€M) Key Highlights SIA closing ▪ 900 €M New 5y Term Loan Facility3 at the same Sept 21 Dec 21 Mar 22 June 22 Sept 22 spread of the 2019 IPO Facility ▪ Early
Slide 15: Closing remarks
This content is classified as Internal Closing remarks
Slide 16: Confirmed 2022 Ambition
This content is classified as Internal Confirmed 2022 Ambition Net ▪ 7-9% net revenue growth Revenues ▪ Double-digit growth in Merchant Solutions ▪ 13-16% EBITDA growth, +2 p.p. EBITDA margin expansion EBITDA ▪ Delivered synergies partially reinvested in E-commerce and Germany acceleration Capex ▪ 8
Slide 17: Key messages
This content is classified as Internal Key messages Continued volume growth Solid financial performance Continued progress in creating in 3Q22 across all geographies in 9M22 the European PayTech leader ▪ Double-digit volume growth in all ▪ Revenue growth at +7% vs 3Q21 and ▪ Group strategy and finan
Slide 18: Q&A
This content is classified as Internal Q&A
Slide 19: Annex
This content is classified as Internal Annex
Slide 20: Group P&L at constant scope
This content is classified as Internal Group P&L at constant scope 9M21 3Q21 Δ% vs. Δ% vs. at constant 9M22 at constant 3Q22 9M21 3Q21 €M scope scope Merchant Solutions 1,159.5 1,305.9 +12.6% 440.5 482.7 +9.6% Issuing Solutions 709.7 747.0 +5.2% 249.5 264.2 +5.9% Digital Banking Solutions 330.5 327.
Slide 21: Revenues gross of scheme fees, shifted to Opex
This content is classified as Internal Revenues gross of scheme fees, shifted to Opex For illustrative purpose only Δ% vs. Δ% vs. Δ% vs. Δ% vs. 1Q22 2Q22 3Q22 9M22 1Q21 2Q21 3Q21 9M21 €M Merchant Solutions 457.8 +17.3% 553.3 +22.8% 612.8 +14.8% 1,623.9 +18.1% Issuing Solutions 236.5 +5.2% 260.9 +6.2
Slide 22: Well diversified revenue base both in terms of business and geography
This content is classified as Internal Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets 9M22 Revenues breakdown 9M22 Costs breakdown by type By business By geography By type Merchant Solutions Installed based Variable cost
Slide 23: Continued strong growth in all geographies compared to pre-Covid levels
This content is classified as Internal Continued strong growth in all geographies compared to pre-Covid levels Trend vs 2019 High impact consumption Basic consumption Discretionary consumption Total Net of discontinued clients due to optimised risk profile --- Italian Cards --- Foreign Cards ITALY O
Slide 24: Continued acceleration of cash to digital payments shift across sectors
This content is classified as Internal Continued acceleration of cash to digital payments shift across sectors High Impact Consumption Basic Consumption Discretionary Consumption Focus on specific industries (October) % change vs 2019 Italy1 Nordics2 DACH2 Restaurants 69% Bakeries 83% Department Sto
Slide 25: Investor Relations
This content is classified as Internal Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com