Slide 1: 1Q22 Results Presentation
1Q22 Results Presentation May 12th, 2022
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: Key messages
Key messages Accelerated volume growth Strong financial performance Continued progress in creating in 1Q22 across all geographies in 1Q22 the European PayTech leader ▪ Continued volume acceleration in Italy, ▪ Revenue growth at +7% vs 1Q21, ▪ Integration workstreams fully on track up double-digit Y/
Slide 4: Strong double-digit Y/Y growth in all geographies, driven by fast recovery
Strong double-digit Y/Y growth in all geographies, driven by fast recovery in high impact consumptions Y/Y performance 1Q22 travel recovering to High impact consumption Basic consumption Discretionary consumption Total ˜75% of 2019 Group level ITALY April vs 2019 --- Italian Cards --- Foreign Cards
Slide 5: Merchant Services & Solutions: key business update
Merchant Services & Solutions: key business update 1Q22 TRX Value Key Business Highlights Examples of recent 54%1 ▪ Strong and accelerated sales performance across all geographies vs last year, especially in DACH customer wins & upsells and Poland ▪ Continued acceleration of digital propositions Sma
Slide 6: Focus on 1Q22 results
nexi Focus on 1Q22 results
Slide 7: Solid revenue growth; >+17% Y/Y EBITDA growth
Solid Revenue growth, despite challenging Y/Y comparison in Italy. >+17% Y/Y EBITDA growth leading to strong EBITDA margin expansion Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin >+9% Y/Y 39% 43% excl. 1Q21 projects related to banks’ M&A +7.1% ~+20% 712.6 excl. 1Q21 projects related
Slide 8: Merchant Services & Solutions: strong volume acceleration driving double-digit revenue growth
Merchant Services & Solutions: strong volume acceleration driving double-digit revenue growth Net Revenues (€M) Managed Transactions (#M) Key Highlights International ▪ Continued revenue growth in 1Q22 ~+15% Y/Y +22.4% despite tough Y/Y comparison in Italy 52%1 excl. 1Q21 projects related Schemes du
Slide 9: Cards & Digital Payments: positive revenue growth supported by sustained volume dynamics
Cards & Digital Payments: positive revenue growth supported by sustained volume dynamics Net Revenues (€M) Managed Transactions (#M) Key Highlights 32%1 International +23.5% ▪ Positive revenue growth, led by Italy Schemes ~+7% Y/Y ▪ Accelerated volume performance excl. 1Q21 projects related +20.9% a
Slide 10: Digital Banking & Corporate Solutions: revenue affected by extraordinary projects in 1Q21
Digital Banking & Corporate Solutions: revenue performance affected by extraordinary projects in 1Q21 Net Revenues (€M) Key Highlights ~ Flat Y/Y ▪ Flat Revenue performance in 1Q22 excl. 1Q21 projects related excluding 1Q21 extraordinary 16%1 to banks’ M&A projects related to banks’ M&A -4.0% ▪ Digi
Slide 11: Strong revenue performance across geographies
Strong revenue performance across geographies, with DACH & Poland growing high-teens in 1Q22 55%1 Italy Nordics2 22%1 ~9% Y/Y excl. 1Q21 projects related to banks’ M&A +4.1% 376.4 391.8 +7.6% 145.9 156.9 1Q21 1Q22 1Q21 1Q22 8%1 15%1 DACH & Poland SE Europe & Other +19.9% 107.0 +6.0% 89.2 53.7 57.0 1
Slide 12: Strong operating leverage leading to substantially flat cost evolution
Strong operating leverage leading to substantially flat cost evolution vs 1Q21 Total Costs (€M) Key Highlights ˜+2% Y/Y Personnel Costs excl. 1Q21 projects related ▪ 1Q22 total costs substantially flat vs last Operating Costs to banks’ M&A year (˜+2% excluding 1Q21 projects +0.5% related to banks’ M
Slide 13: Net Financial Debt / EBITDA in line with plan, at ~3x
Net Financial Debt / EBITDA in line with plan, at ˜3x including run-rate synergies Net Financial Debt (€M) Key Highlights Nets closing SIA closing ▪ SIA bank debt reimbursed on January 3rd, 2022 for a notional amount of ˜873€M by using Mar 21 June 21 Sept 21 Dec 21 Mar 22 available cash ▪ One notch
Slide 14: Closing remarks
nexi Closing remarks
Slide 15: Confirmed 2022 Ambition
Confirmed 2022 Ambition Assuming exit from Covid-19 from the beginning of 2Q22 and no further escalation from Ukraine crisis: Net ▪ 7-9% net revenue growth Revenues ▪ Double-digit growth in Merchant Services & Solutions ▪ 13-16% EBITDA growth, +2 p.p. EBITDA margin expansion EBITDA ▪ Delivered syner
Slide 16: Key messages
Capital Markets Day scheduled Key messages for September 2022 Accelerated volume growth Strong financial performance Continued progress in creating in 1Q22 across all geographies in 1Q22 the European PayTech leader ▪ Continued volume acceleration in Italy, ▪ Revenue growth at +7% vs 1Q21, ▪ Integrat
Slide 17: Q&A
nexi Q&A
Slide 18: Annex
nexi Annex
Slide 19: Group P&L
Group P&L Group P&L 1Q21 restatement Net Revenues (€M) Δ% vs. 1Q21 1Q22 €M 1Q21 666.6 665.2 Merchant Services & Solutions 327.4 369.2 +12.7% -0.3 -1.1 Cards & Digital Payments 219.9 230.3 +4.8% Digital Banking & Corporate Solutions 117.8 113.1 -4.0% Operating revenue 665.2 712.6 +7.1% Former 1Q21 FX
Slide 20: Well diversified revenue base by business and geography
Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets 1Q22 Revenues breakdown 1Q22 Costs breakdown by type By business By geography By type Merchant Services & Solutions Italy Nordics1 Installed based Variable costs Cards & Dig
Slide 21: Acquiring sales volume trend vs pre-Covid: Italy
Acquiring sales volume trend vs pre-Covid ITALY Italian Cards vs Foreign Cards Italian Cards Foreign Cards Total % change Y/Y % change vs 2019 (pre-Covid) 50 40 29% 28% 30 22% 22% 24% 23% 23% 29% 21% 20% 10% 5% 16% 15% 20 11% 18% 22% 9% 13% 7% 6% 16% 16% 14% 22% 24% 3% 4% 11% 13% 12% 10 9% 1% 0% 2%
Slide 22: Acquiring sales volume trend vs pre-Covid: consumption categories
Acquiring sales volume trend vs pre-Covid ITALY Breakdown by consumption category High impact consumption Basic consumption Discretionary consumption Total % change Y/Y % change vs 2019 (pre-Covid) 50 42% 42% 41% 41% 38% 40 33% 33% 32% 30 31% 30% 27% 27% 26% 22% 22% 24% 21% 25% 25% 18% 23% 20 12% 21
Slide 23: Acquiring sales volume trend vs pre-Covid: other key geographies
Acquiring sales volume trend vs pre-Covid – Other key geographies Total High Impact Consumption Basic Consumption Discretionary Consumption Grocery +48% Doctors +23% 60 47% 49% 48% 49% 40 19% 31% 29% 29% 13% 25% 36% 35% 21% 29% 29% 17% Nordics 20 10% 12% 15% 15% 13% 15% 14% 16% 11% 13% 14% 10% 33% 2
Slide 24: Continued acceleration of cash to digital payments shift across sectors
Continued acceleration of cash to digital payments shift across sectors High Impact Consumption Basic Consumption Discretionary Consumption Focus on specific industries (April) % change vs 2019 Italy1 Nordics2 DACH2 Veterinary 91% Pub and Bars 95% Department Store 199% Hobby, toy and game stores 90%
Slide 25: Investor Relations
Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com