Worldline Sa · EURONEXT:WLN
Worldline Sa — Investor Day (2021)
86 slides from Worldline Sa's investor day presentation, 2021
Slide 1: Investor Day 2021
Investor Day 2021 | © Worldline
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These r
Slide 3: Opening remarks and strategic ambition
Opening remarks and strategic ambition Gilles Grapinet, CEO Marc-Henri Desportes, Deputy CEO Investor Day 2021 | © Worldline
Slide 4: A transformed Worldline ideally positioned in a dynamic market
A transformed Worldline ideally positioned in a dynamic market Gilles Grapinet, CEO Investor Day 2021 | © Worldline
Slide 5: Successful transformation journey since IPO
Successful transformation journey since IPO Revenue development (IPO – 2020PF) 2013 2020 PF excluding TSS Highlights 9% 32% MTS Creation of a real pan-European leader MTS 33% Growth MS Best European scale and reach profile 26% €1.1bn FS €3.4bn improved Full and comprehensive coverage of from 3% to 8
Slide 6: Creation of the pan-European leader
Creation of the pan-European leader 2014 2020 32% revenue in Merchant Services 64% revenue in Merchant Services Revenue x6 (c.€0.4bn revenue) (> €2.0bn revenue) Merchant Merchant Services Services Low online exposure Revenue x11 Strong online exposure (18% of MS or < €0.1m revenue) (1/3 of MS / c. €
Slide 7: Unchanged M&A momentum since the closing of Ingenico
Unchanged M&A momentum since the closing of Ingenico Meaningful additional MS 4 acquisitions already signed or closed contribution c. 3.3bn transaction managed or acquired (> +10%) c. 375,000 merchants managed or served c. €300m revenue growing double-digit c. €120m OMDA including €50m synergies and
Slide 8: Unmatched reach at the heart of the European payment ecosystem
Unmatched reach at the heart of the European payment ecosystem Leading positions in most of Worldline key countries Unrivaled merchants' access across Europe Support merchants locally and cross-border at scale Largest European processing factory Investor Day 2021 | © Worldline
Slide 9: Europe is a very attractive market offering structural growth opportunities
Europe is a very attractive market offering structural growth opportunities main playground US payment market European payment market Large and unified Large and still fragmented Payment market largely consolidated Payment market still to be consolidated (c.60% market share owned by acquirers) (c.60
Slide 10: Worldline ideally positioned to leverage highly favorable market trends
Worldline ideally positioned to leverage 3 highly favorable market trends Increased complexity of the ecosystem Worldline differentiating assets Worldline 2022-2024 actions ENRICH our Portfolio Largest industrial scale Increase partnerships and in Europe distribution agreements Technology at scale b
Slide 11: Worldline 2022-2024 vision
Worldline 2022-2024 vision ACCELERATE GROWTH BOOST PROFITABILITY Post-Covid cashless boost in Europe Improving operating leverage Increased eCom and online exposure Delivery of above €200m synergies * Merchant Services competitive Continuous efficiencies differentiators and vertical accelerators Str
Slide 12: Worldline 2024 ambition
Worldline 2024 ambition Revenue 9% to 11% revenue CAGR 2022-2024 OMDA Above 400bps improvement over the period Trending towards 30% OMDA margin by 2024 FCF c.50% OMDA conversion by 2024 Investor Day 2021 | © Worldline
Slide 13: Focus on consolidation and growth enhancing acquisitions
Worldline vision 2024 Focus on consolidation and growth enhancing acquisitions Main strategic directions for future acquisitions Targeted geographical expansion “land and expand” bank partnership focus Technologies and products innovation and new adjacencies Medium to large size opportunities Pure p
Slide 14: Delivering a leading CSR performance as per TRUST 2025
Delivering a leading CSR performance as per TRUST 2025 Sample KPIs Business 99.99% Delivery excellence and quality of services, Delivery security, client satisfaction and customer Quality Score experience Recognized CSR performance Environment 20% Contribute to carbon neutrality Reduction in CO2 Cir
Slide 15: Worldline 2024 vision: Building a premium global Paytech company
Worldline 2024 vision Building a premium global Paytech company Marc-Henri Desportes, Deputy CEO Investor Day 2021 | © Worldline
Slide 16: 2021 update on our payment ecosystem
2021 update on our payment ecosystem An ecosystem where all parts of the chain need to connect and influence each other Schemes / Settlement Strong brands Emerging alternatives Issuers Acquirers Outsourcing trend Consolidation Processors’ consolidation trend Orchestrate and monetize Unrivaled access
Slide 17: Worldline unique positioning in the European payment ecosystem
Worldline unique positioning in the European payment ecosystem Unrivaled entry point Unique comprehensive for merchants’ Single modular value proposition platform access for banks Single modular Orchestrate Unmatched integration platform and monetize capabilities Unrivaled access to the European pay
Slide 18: Merchant Services: The payment ecosystem orchestrator
Merchant Services The payment ecosystem orchestrator Merchant Services Single entry point value proposition Connect and simplify access to the growing complexity of payment methods and VAS Scale benefits of consolidated platform Modular One platform Multi-channel and omnichannel offerings Single-ent
Slide 19: Financial Services: The pan-European digital payment factory
Financial Services The pan-European digital payment factory Financial Services Unique comprehensive value Card Card Digital Instant Account to Digital/crypto proposition Present Non-Present Banking Payment account currencies All payment methods cross-border European scale Modular bringing efficienci
Slide 20: A unique target modular platform architecture
A unique target modular platform architecture Targeted platform One platform all components live Best of breed One modules in portfolio Payment ecosystem Cloud modular platform technology convergence APIs driven enabling open innovation to the ecosystem Worldline operated infrastructure Investor Day
Slide 21: Worldline open innovation delivering value to banks and merchants
Worldline open innovation delivering value to banks and merchants APM Crypto currencies Worldline Labs on core topics Interface & Experience Gold Global Trust & Security Production & Efficiency ISVs Core payment services > 10 universities Universal Code partnerships SCA BNPL & VAS Hackathons with R&
Slide 22: Scalable and repeatable integration playbook
Scalable and repeatable integration playbook Unmatched integration capabilities Unique integration expertise team Central consolidation of integration processes maintaining knowledge and enhancing Integration progress our methodology and synergy tracking Expertise pool expansion Clear focus and mana
Slide 23: 2024 financial trajectory
2024 financial trajectory Eric Heutaux, Group Chief Financial Officer Lisa Coleman, Group Head of Operational Performance Investor Day 2021 | © Worldline
Slide 24: 2021 guidance – basis of preparation
2021 guidance – basis of preparation From 2020 former scope to 2020 continued operations – TSS accounted in “Asset Held for Sale” 2020 REVENUE 2020 OMDA €4,742m (1,304) €1,133m (340) €3,438m €793m 23.9% 23.1% 2020 PF TSS 2020 PF 2020 PF TSS 2020 PF former scope* de-scoping continued former scope* de
Slide 25: 2021 guidance
2021 guidance FORMER 2021 GUIDANCE* 2021 GUIDANCE REITERATED** (including TSS) (continued operations excluding TSS) Revenue At least mid-single digit growth At least 6% organic growth c. +200 bps improvement above 200 bps improvement OMDA (vs proforma OMDA margin of 23.9%) (vs proforma OMDA margin o
Slide 26: 3-year plan 2022-2024 – Key mid-term drivers
3-year plan 2022-2024 – Key mid-term drivers GROWTH DRIVERS OMDA DRIVERS Accelerated growth MS double-digit Accelerated growth and operating leverage Stabilizing FS growth mid-single Synergies delivery MTS sustained mid to high-single digit Techno advantage FCF DRIVERS CAPITAL ALLOCATION OMDA increa
Slide 27: 2024 financial trajectory – Revenue building blocks
2024 financial trajectory – Revenue building blocks 2022-24 growth Strong growth acceleration 9-11% organic CAGR driven by Merchant Services MS: double-digit growth c. €5.2bn SMBs market share gains GSV competitive differentiators Mid to high single digit Digital commerce geo expansion c. €3.9bn gro
Slide 28: 2024 financial trajectory – OMDA building blocks
2024 financial trajectory – OMDA building blocks c. +15% organic CAGR Strong margin improvement > 400bps in margin OMDA driven by operating leverage c.75% of OMDA c. €1.5bn expansion Costs derived from synergies operating 25% leverage Slight improvement in OMDA margin Revenue c. €1.0bn synergies c.
Slide 29: Rapid transformation approach with SMART project
Rapid transformation approach with SMART project A key lever to accelerate operating leverage NextGen SMART levers supporting c.50% of Worldline operating leverage Contract & Product Review Practice Real Estate inc Plan New ways of working Workforce Planning X-shore optimisation Move to Cloud (M2C)
Slide 30: Ingenico and SIX Payment Services integration on-track
Ingenico and SIX Payment Services integration on-track Proven track-record allowing faster integrations SPS INGENICO (excl. TSS) Strong and experienced €110m objective by 2022 €230m objective by 2024 confirmed integration program confirmed o.w. c.€200m OMDA synergies 70% synergies delivered by end 2
Slide 31: 2024 financial trajectory – illustrative FCF generation
2024 financial trajectory – illustrative FCF generation Steady OMDA/FCF conversion Steady conversion c. 50% during the period Strong cash flow generation driven by OMDA improvement c.500 (80-120) 20-50 (120-150) Capex acceleration to 5% to 7% supporting growth acceleration c. €0.8bn Integration cost
Slide 32: 2024 financial trajectory – illustrative deleveraging profile
2024 financial trajectory – illustrative deleveraging profile Strong deleveraging profile Net debt divided by 2 Strong deleveraging profile Limited cash out c. €800m c. €2.0bn from ongoing acquisitions c. €2.5bn FCF contribution as main driver No change in dividend policy c. €1.3bn Leverage ratio be
Slide 33: M&A opportunity potential
M&A opportunity potential Illustration based on proven track-record Added M&A replicating same 2017-20 Hypothesis OMDA achievements contribution based on Replicating at least 2017-2020 3-y plan Worldline proven track record guidance c. €2.0bn (c. €400m OMDA acquired) c. €1.5bn Strong firepower for c
Slide 34: By 2024: Organic growth, OMDA margin, FCF, deleveraging
By 2024 Organic Growth OMDA Margin Acceleration Improvement Steady FCF Strong Generation Deleverage Premium value creation for all stakeholders Investor Day 2021 | © Worldline
Slide 35: Investor Day 2021
Investor Day 2021 | © Worldline
Slide 36: Merchant Services
Merchant Services Vincent Roland, Head of Merchant Services Thomas Heldner, Chief Product Officer of Merchant Services Roger Niederer, Chief Market Officer of Merchant Services Niklaus Santschi, Chief Executive Officer of PAYONE Investor Day 2021 | © Worldline
Slide 37: Merchant services
Merchant services Leader in Europe, India, Australia and New Zealand #1 Merchant acquirer in continental Europe €2.5 bn European PSP-Collector 2020 proforma revenue Leadership & Scale c.1 million €400 bn 6,500 50+ merchants merchant Sales contributors countries volume processed 11 bn 3 bn 6 bn POS a
Slide 38: Merchant Services: The payment ecosystem orchestrator
Merchant Services The payment ecosystem orchestrator Single entry point value proposition Connect and simplify access to the growing complexity of payment methods and VAS Less cash society and local payments Modular continue to drive growth One platform Omnichannel, mobile, x-border and Single-entry
Slide 39: Our market position
Our market position Merchant Services is uniquely positioned Newcomers • European leader with global reach Global e-com merchants • c. 1 million clients across all segments • Supporting all local needs, currencies International large merchants and languages • Significant upselling and cross-selling
Slide 40: Client-centric organization
Client-centric organization Offerings covering customer needs and complexity Small Merchants - SMBs Large and Corporate Merchants • Provide simple, cost-effective, all-in-one solution for • Provide unified omni-channel acceptance front end to card and non card acceptance support a seamless customer
Slide 41: Innovations that create more value for our merchants
Innovations that create more value for our merchants YUMI LOCAL GENERIC QR Open Banking New ways to pay More Applications More Mobile Wallets Lower costs corridors 3 new Corridors after Russia : Tap on Phone South Korea, Japan, Singapore Biometrics Rule & AI-based …. And much routing More PSP’s Digi
Slide 42: Large number of opportunities supporting a double-digit growth
Large number of opportunities supporting a double-digit growth Structural Scale Geo Product Client & Sales Partnered market growth expansion expansion Partner growth & innovation wins & upsell Market growth Platform scale Roll-out Europe New schemes Market share Market and APAC consolidation Shift f
Slide 43: Focus on four growth accelerators serving our go-to-markets
Focus on four growth accelerators serving our go-to-markets Regional Digital Global Sales Financial business commerce & Verticals Institutions Android Take a leading position at the touchpoint between merchant and customer Verticals Deliver vertical-specific solutions and flexibly integrate best-in-
Slide 44: Android
Android Merchant Services aims to take a leading position at the touchpoint between merchants and customers • Turning the terminal installed based towards Android • Developing added value applications including customization • Providing services in a modular and app store-based approach Android Basi
Slide 45: Verticals
Verticals Merchant Services delivers vertical-based solutions in an ecosystem with partners, ensuring proximity to our merchants and their markets Worldline acquiring Worldline Worldline Worldline Partner acceptance acceptance acceptance acceptance Worldline Partner vertical Partner vertical Partner
Slide 46: Omnichannel
Omnichannel Worldline’s One Commerce seamlessly integrates all sales channels and payment methods on a global scale • Merchants flexibly manage payments across channels • Substantial cross-selling potential for Merchant Services • Partner friendly thank to smart APIs Worldline One Commerce Transacti
Slide 47: Geo expansion & corridors
Geo expansion Worldline optimises global & regional players’ payment flows • Global scale and local customer intimacy & corridors • Combination of in-house and partnered acquiring • AI smart transaction routing • Optimised set up for individual markets Worldline acquiring Worldline acceptance PSP Op
Slide 48: Dedicated client-centric organization addressing specific merchant needs
Dedicated client-centric organization addressing specific merchant needs Regional business Global verticals All-in-one simple solutions with local Omnichannel payment solutions partner payment method coverage for instore for international and large players and online tailored to specific verticals D
Slide 49: Regional Business
Regional Business Worldline is the #1 provider of online, in-store and omnichannel solutions • End-to-end offering, servicing merchants out of one hand • In-store, online and omnichannel acceptance >550k direct merchants Largest European 2022-2024: +190k payments business • Acquiring • Value added s
Slide 50: Regional Business strategy
Regional Business strategy Enhance customer experience Extend product range • Digitization of merchant lifecycle Accelerate • Introduce next generation • Further improve in growth markets Android terminals (e.g., merchant service Maintain trajectory • Expand in Western YUMi, Ingenico RX7000) excelle
Slide 51: Global Sales & Verticals
Global Sales & Verticals Target national & international enterprise omni-channel merchants in 9 selected verticals. Leading position in Europe and global expansion plan • End-to-end omni-channel portfolio Advanced full service omnichannel payment journey ready to serve merchant optimally and compreh
Slide 52: Global Sales & Verticals strategy
Global Sales & Verticals strategy Focused strategic direction – specified per vertical • Penetrate new countries / regions Grocery • Capture market share in E-com revolution • Intensify cooperation with integrators Retail • Concentrate on full-service provision Transport • Position in Open Payments
Slide 53: Digital Commerce
Digital Commerce We focus on digital merchants with global reach and payment needs • Covering the full payments value chain Gateway & acquiring | Collecting & remitting | Reconciliation & reporting | Value added services (FX, consulting, fraud, data) ~500 large international Global coverage e-com me
Slide 54: Digital Commerce strategy
Digital Commerce strategy Consumer DIGITAL COMMERCE Merchant 60%+ of flows originated in growth markets Ambition >20% volumes growth p.a. 50%+ of flows from LPMs, incl. local cards Top 3 globally Growth Markets Direct Sales • India • APAC (Singapore, S.Korea) Reach • Dedicated vertical focus • Brazi
Slide 55: Financial Institutions
Financial Institutions Worldline is the #1 partner for financial institutions in merchant services business Commercial alliances and JVs Financial Institutions Seeking partnerships to #1 partner based on • Attain scale • Payment expertise economies • Global reach • Ensure broad and • Integration & W
Slide 56: Financial Institutions - PAYONE
Financial Institutions - PAYONE PAYONE is the #1 provider of online, instore and omnichannel solutions for Germany & Austria Ambition 2024 Key differentiating factors to win • Strong German market opportunity fueled by cash-to-Card shift 280k direct merchants 500k POS/POI • Leading position in the m
Slide 57: Merchant Services unique value proposition
Merchant Services unique value proposition Broadest Portfolio of payment solutions for All types of Retailers Largest European coverage extending Services and Global reach Client Centric organization to deliver More Business value to our merchants Multiple Growth Accelerators offering strong opportu
Slide 58: Financial Services
Financial Services Michael Steinbach, Head of Financial Services Alessandro Baroni, Chief Business Divisions Officer and Deputy Head of Financial Services Investor Day 2021 | © Worldline
Slide 59: Financial Services
Financial Services Engineering the most trusted and advanced payment processing solutions Worldline provides modern payment solutions that help financial institutions meet their customers’ needs. We offer a unique combination of payment processing on an industrial 320+ c. 126 m scale instead of inno
Slide 60: Building the undisputed digital payment factory for Europe and beyond
Our aspiration Building the undisputed digital payment factory for Europe and beyond via organic and inorganic growth What we bring True business value Card Card Digital Instant Account Digital present non-present banking payments to account currencies Client solutions justifying value-driven prices
Slide 61: The partner of choice for providers of financial services
Our playing field The partner of choice for providers of financial services What is our business FS playing field We aim to be the partner of choice for financial institutions and non- Payment processing services bank providers of financial services in- and outside of Europe. • Issuing & Acquiring s
Slide 62: Continuous transformation in the financial services landscape
Trends in the financial services industry Continuous transformation in the financial services landscape Banks changing Digital first Open banking FS Continual operating real-time world going next-level transformation models Consolidation and industrialization of our platforms Continued Diversity of
Slide 63: Our combined characteristics result in unique benefits for our clients
We are well positioned to enable the continued growth of our clients Our combined characteristics result in unique benefits for our clients Key characteristics How we act c. 38 bn transactions We deliver representing 4x GDP in business value to our clients value (eurozone) Industrial scale Global ex
Slide 64: Value-driven solutions for seamless, secure and efficient payments
Value-driven solutions for seamless, secure and efficient payments Account payments solutions Issuing and acquiring solutions Digital services Enabling our clients to handle all kinds of Accelerating our clients’ growth with Helping our clients with secure digital account payments for their customer
Slide 65: Based on current trends, we see clear opportunities for growth
Dual growth engine with robust traditional trends accelerated by new market needs Based on current trends, we see clear opportunities for growth Digital first services 1 Promote digital first issuing, unlock new market segments, propositions and use-cases Open Banking We shape the 2 Address more bus
Slide 66: Key growth drivers for Financial Services
Our growth accelerators Key growth drivers for Financial Services Extend product range 3 • Request-to-pay (instant payments) Accelerate in growth markets • Cross-border payments • Fraud Management Strengthen 4 • Tier-1 bank outsourcing home markets • Online watcher in license mode Move to • Newbiz t
Slide 67: The foundations of our consistent growth
Financial Services unique comprehensive value proposition The foundations of our consistent growth Leverage Financial Services’ pan-European payment factory Consolidate and transform incumbent’s payment environments Shape the future trusted payments world with meaningful innovation Deliver growth th
Slide 68: Mobility & e-Transactional Services
Mobility & e-Transactional Services Marc-Henri Desportes, Deputy Chief Executive Officer Investor Day 2021 | © Worldline
Slide 69: Mobility & e-Transactional Services
Mobility & e-Transactional Services Bringing payment and regulation expertise to new markets Industry leaders trust Key business highlights Priorities > 350 >3m Vertical enabler for Merchant clients in various connected Services industries objects and Financial Services > 1 bn > 2.2 bn SMS sent call
Slide 70: Vertical enabler for Merchant Services and Financial Services
Vertical enabler for Merchant Services and Financial Services Leveraging expertise in Digital and payment integration Mobile apps, Fuel Card, Pay&Drive Support to MS and FS in their clients’ interaction WL Contact supporting hundred of European banks and MS customer services Portfolio highlights Pro
Slide 71: E-Ticketing & Mobility growth levers
While leveraging value proposition in core go-to-markets E-Ticketing & Mobility Growth levers Leverage post-Covid recovery Contactless, volume growth, UK railway > 450 €16 bn 8.2/10 opportunity MTS experts Tickets sold Client NPS scores in transport per annum from transport Expand market footprint a
Slide 72: Trusted Digitization for regulated sectors
While leveraging value proposition in core go-to-markets Trusted Digitization for regulated sectors Growth levers Grow Traceability activities Leveraging existing verticals and develop new segments 5.8 m > 20 bn > 10 m > 10 m Farming existing niches of beneficiaries Products patient files within sec
Slide 73: MTS – The vertical enabler
MTS – The vertical enabler Strong momentum of business fundamentals on our 3 main focuses Innovate at the core of the convergence of historical payment markets and selected highly regulated sectors Leverage further global footprint to pursue international roll-out Gradual benefit on OMDA from succes
Slide 74: Worldline's technology strategy as a performance enabler
Worldline’s technology strategy as a performance enabler Christophe Duquenne, Group Chief Technology & Operations Officer Investor Day 2021 | © Worldline
Slide 75: Two-fold technology strategy delivering global performance
Two-fold technology strategy delivering global performance ONE Consolidation onto our target platforms Cloud technology transformation Best-of-breed platforms in portfolio Native APIs and automation Tech landscape rationalisation Continuous integration and deployment Scale effect through consolidati
Slide 76: Payment platform consolidation at the core of integration and synergies plans
Payment platform consolidation at the core of our integration and synergies plans CRM and Middle-Office Salesforce & SAP Merchant Services Acceptance Acceptance POS : AXIS – Online : WL On Line Payments Merchant management Card Processing Front All target platforms Wallets Front End are up and runni
Slide 77: Move to Cloud – leverage cloud technologies
Move to Cloud – leverage cloud technologies in our targeted platforms Leverage cloud technologies in our targeted platforms Merchant Services Financial Services Mobility & e-transactional services Front-end, back-end and Card payments Contact & consumer Cloud digital touch points (issuing & acquirin
Slide 78: Move to Cloud programme as a growth enabler
Move to Cloud programme as a growth enabler Public or Worldline’s core private Client private clouds Payment cloud Iterative transformation Public Cloud Usage of our key platforms Payment Services designed to fully use standard public or private cloud benefits Powerful private cloud Cloud Enabled ca
Slide 79: Innovation at the heart of Worldline Tech strategy
Innovation at the heart of Worldline Tech strategy Trust & Security Interfaces & Experiences Based on technology domains 6 years and more that impact our way 3 to 6 years of making business 1 to 3 years Now to 1 years Fed by diverse internal Identified and external sources Tests and pilots by Worldl
Slide 80: Focus on trends of major interest
Focus on trends of major interest Monitored by Worldline Labs and Experts’ community Distributed Trusted AI Ledger Advanced Virtual Self-Sovereign Assistant Identity Investor Day 2021 | © Worldline
Slide 81: Bringing value through technological transformation
Bringing value through technological transformation One Platform Move to cloud transformation Up to 40% +25% Faster Increase in scalability, time-to-market productivity and efficiency A transformed technological architecture bringing value and a seamless experience to our clients Investor Day 2021 |
Slide 82: Supported by a strong company focus and investment
Supported by a strong company focus and investment > €300 m 7,000 investment per year dedicated people 20 400 products launched members in the every year Expert community Paytech company Investor Day 2021 | © Worldline
Slide 83: Closing remarks
Closing remarks Gilles Grapinet, CEO Investor Day 2021 | © Worldline
Slide 84: Worldline 2024 ambition
Worldline 2024 ambition Revenue 9% to 11% revenue CAGR 2022-2024 OMDA Above 400bps improvement over the period Trending towards 30% OMDA margin by 2024 FCF c.50% OMDA conversion by 2024 Investor Day 2021 | © Worldline
Slide 85: Worldline: A premium global Paytech company
MW, f, WORLDLINE A premium global Paytech company at the heart of the European payment ecosystem
Slide 86: Thank you
Thank you For more information, please contact: Laurent Marie Group Head of Investor Relations M +33 7 84 50 18 90 laurent.marie@worldline.com Benoit D’amécourt Deputy Head of Investor Relations M +33 6 75 51 41 47 benoit.damecourt@worldline.com Investor Day 2021 | © Worldline