Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q1 2021 Earnings Presentation
29 slides from Western Union Company (the)'s earnings presentation, May 4, 2021
Slide 1: Earnings webcast and conference call
Earnings webcast and conference call FIRST QTR 2021 MAY 4, 2021
Slide 2: Brendan Metrano, Vice President of Investor Relations
Brendan Metrano Vice President of Investor Relations 2
Slide 3: Safe Harbor
Safe Harbor 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 pre
Slide 4: Hikmet Ersek, Chief Executive Officer
Hikmet Ersek Chief Executive Officer 4
Slide 5: Western Union First Quarter Results
Western Union First Quarter Results Healthy Q1 Results Set Digital Business on Track to Cross-border Principal Growth Q1 2021 Total App Downloads2 the Stage for the Year Exceed $1 Billion in Revenues in Outpaces the World Bank Forecast1 – Top Five Players 2021 In number of downloads $1.2B $219M $231
Slide 6: First Quarter Accomplishments
First Quarter Accomplishments Strategic Investments in Technology Initiatives Enhanced Capabilities Optimized Distribution WU.com Drove Growth & Complement Strategy Capabilities Average Monthly Active Users1 vs. Revenue Pivotal milestone 47% 49% in transforming our 45% 46% Coverage settlement system
Slide 7: 2021 Agenda Focused on Customer Experience
2021 Agenda Focused on Customer Experience Objectives Strategic Priorities Continue to focus on strengthening leading omni-channel capabilities Improve the Cost, Coverage, & Expand access to more bank and digital wallet accounts, enhance Quality of Distribution real-time payout capabilities, and mak
Slide 8: Our Customer Segment: The Global Migrant Community
Our Customer Segment: The Global Migrant Community A Growing, Hardworking, & A Group with Significant Upwardly Mobile Group 2/3 Spending Power Above average labor More than participation rates In 2019, migrant 270 million residents had migrant residents globally1 Higher rates of entrepreneurship $1.
Slide 9: Raj Agrawal, Chief Financial Officer
Raj Agrawal Chief Financial Officer 9
Slide 10: Business Trends Q1
Business Trends Q1 Consolidated revenues of $1.2 billion increased 2% on a reported and constant currency (cc) basis* compared to the prior year period Quarterly Business Trends WU Adj. CC Revenue** C2C CC Revenue* C2C Transactions C2C Cross-border Principal 28% 23% 24% 9% 6% 6% 2% 0% 0% 2% 0% 1% -1
Slide 11: Consumer-to-Consumer Q1
Consumer-to-Consumer Q1 Regions Revenue Constant Currency Revenue Transaction % of C2C Growth Growth* Growth/(Decline) Revenue North America 0% 1% 1% 37% Europe & CIS 8% 4% 28% 33% MEASA 1% 0% 13% 16% LACA 3% 8% (8%) 8% APAC 9% 3% (2%) 6% Total C2C 4% 2% 9% 100% Included in C2C regions above: 45% 44
Slide 12: Business Solutions and Other Q1
Business Solutions and Other Q1 Business Solutions 8% of Company revenue Revenue decreased 2%, or 8% constant currency* Other (primarily retail bill payments businesses in the U.S. & Argentina and money orders) 5% of Company revenue Revenue decreased 18% *Note: See appendix for reconciliation of Non
Slide 13: Total Company Operating Margin Q1
Total Company Operating Margin Q1 Key factors driving the decrease in operating margin: 20.5% (-) Higher investments in strategic initiatives and marketing 19.6% 19.2% (-) Compensation-related expenses (+) Changes in FX Adjusted operating margin decreased due to the same factors above and excludes:
Slide 14: Segment Operating Margins Q1
Segment Operating Margins Q1 C2C Segment Business Solutions Segment Other 20.7% 14.1% 26.1% 19.6% 13.1% 22.6% 1Q21 1Q20 1Q21 1Q20 1Q21 1Q20 14
Slide 15: Financial Highlights
Financial Highlights Quarter Ended March 31, 2021 EPS $0.44 Cash Flow from Operations $176 million Dividends Paid $97 million Share repurchases $75 million Cash Balance, March 31, 2021 $1.5 billion Debt outstanding, March 31, 2021 $3.2 billion 15
Slide 16: 2021 Outlook
2021 Outlook Operating GAAP Earnings per GAAP & Adjusted Revenue Profit Margin Share Effective Tax rates GAAP revenue: Operating profit margin of EPS in a range of $2.06 Effective tax rate in mid-to-high single approximately 21.5% to $2.16 a mid-teens range digit increase Adjusted Earnings per Const
Slide 17: Questions & Answers
\wu Western Union Questions & Answers 17
Slide 18: Appendix
Appendix First Quarter 2021 Earnings Webcast and Conference Call 18
Slide 19: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Western Union presents a number of non-GAAP financial measures because A non-GAAP financial measure should not be considered in isolation or as a management believes that these metrics provide meaningful supplemental substitute for the most comp
Slide 20: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21 Consolidated Metrics Consolidated revenues (GAAP) - YoY % change (11) % (17) % (4) % (3) % (9) % 2 % Consolidated revenues (non-GAAP, constant currency and excluding Speedpay and Paymap) - YoY % change (a) (
Slide 21: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21 C2C Segment Regional Metrics - YoY % change NA region revenues (GAAP) (2) % (6) % 0 % (3) % (3) % 0 % NA region foreign currency translation impact (j) 0 % 1 % 1 % 0 % 0 % 1 % NA region revenues (non-GAAP, c
Slide 22: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21 % of C2C Revenue NA region revenues 38 % 41 % 38 % 37 % 38 % 37 % EU & CIS region revenues 31 % 32 % 33 % 33 % 33 % 33 % MEASA region revenues 16 % 15 % 16 % 15 % 15 % 16 % LACA region revenues 9 % 6 % 7 % 8
Slide 23: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Three Months Ended March 31, 2021 Operating Income Before Provision for Diluted Earnings Notes Revenues Income Income Taxes Income Taxes Net Income per Share (in millions, except per share amounts) Reported results (GAAP) $ 1,210.0 $ 232.8 $ 202
Slide 24: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21 Consolidated Metrics (a) Revenues (GAAP) $ 1,190.0 $ 1,114.7 $ 1,258.5 $ 1,271.8 $ 4,835.0 $ 1,210.0 Foreign currency translation impact (j) 47.3 46.4 41.1 22.4 157.2 (0.9) Revenues (non-GAAP, constant curre
Slide 25: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21 Consolidated Metrics cont. (d) Effective tax rate (GAAP) 13 % 16 % 12 % 11 % 13 % 10 % Impact from restructuring-related expenses (m) 0 % 0 % 1 % 1 % 0 % N/A Impact from acquisition and divestiture costs (n)
Slide 26: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 1Q20 2Q20 3Q20 4Q20 FY2020 1Q21 Business Solutions Segment Metrics (h) Revenues (GAAP) $ 98.4 $ 79.4 $ 89.1 $ 89.2 $ 356.1 $ 96.5 Foreign currency translation impact (j) 2.2 2.0 (1.9) (2.4) (0.1) (5.6) Revenues (non-GAAP, constant currency
Slide 27: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 2021 Consolidated Outlook Metrics Range Earnings per share (GAAP) ($- dollars) $ 2.06 $ 2.16 Impact from the net gain on an investment sale and debt extinguishment costs ($- dollars) (o), (p) (0.06) (0.06) Earnings per share, adjusted, excluding
Slide 28: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Non-GAAP related notes: (j) 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 excha
Slide 29: Thank You
\WU Thank You Western Union
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