Slide 1: FY 2021 Preliminary Results Presentation
FY 2021 Preliminary Results Presentation February 10th, 2022 1
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 Continued volume growth, Strong financial performance Continued progress in creating despite Omicron variant in 4Q21 in 4Q21 and FY21 the European PayTech leader ▪ Double-digit volume growth in Italy ▪ Revenues up +11% vs 4Q20, +10% vs ▪ Nexi-SIA deal: closed at year-end 2021 compared t
Slide 4: Executive Summary
Executive Summary Volume update ▪ Continued volume growth in 4Q21 with only limited impact from Omicron variant and geographies developing at mixed pace: • Double-digit volume growth in Italy compared to pre-Covid, with further acceleration in the second half of January, driven by solid growth in ba
Slide 5: Strong volume performance in Italy growing double-digit vs pre-Covid
Confirmed strong volume performance in Italy growing double-digit vs pre-Covid driven by Italian Cards; Foreign Cards still behind ITALY Acquiring sales volumes – Italian Cards vs Foreign Cards – Y/Y trend Italian Cards Foreign Cards Total LWR1 % change Y/Y % change vs 2019 (pre-Covid) 50 +27% 40 24
Slide 6: Acceleration in second half of January across categories
Acceleration in the second half of January across categories, with basic consumption strongly growing compared to pre-Covid ITALY Acquiring sales volumes trend by consumption category – Y/Y trend High impact consumption Basic consumption Discretionary consumption Total LWR1 % change Y/Y % change vs
Slide 7: Positive volume growth in Nordics, DACH still recovering
Continued positive volume growth in Nordics in 4Q21, DACH still recovering due to exposure to travel. Basic consumption accelerating in January Other geographies Total LAKA acquiring volumes2 Total SME acquiring volumes1 Total Issuing volumes3 -15% in 4Q21 vs 4Q19 +9% in 4Q21 vs 4Q19 +4% in 4Q21 vs
Slide 8: Continued acceleration of cash to digital payments shift
Continued acceleration of cash to digital payments shift across sectors, visible in all geographies High Impact Consumption Basic Consumption Discretionary Consumption Focus on specific industries (January) % change vs 2019 Italy1 Nordics2 DACH2 Veterinary 74% Cosmetic store 85% Groceries 42% Laundr
Slide 9: Focus on FY21 Preliminary Results
Focus on FY21 Preliminary Results 2020 and 2021 data include since the beginning of the period: - Nets underlying results at constant scope and FX - UBI merchant book 9
Slide 10: Achieved 2021 Ambition: double-digit Revenue and EBITDA performance
Achieved 2021 Ambition: double-digit Revenue and EBITDA performance with continued EBITDA margin expansion Net Revenues (€M) EBITDA (€M) EBITDA margin 51% 52% 47% 48% +10.0% +12.1% 2,268.8 1,094.5 2,062.5 976.2 +11.1% +11.6% 618.1 286.5 319.7 556.4 4Q20 4Q21 FY20 FY21 4Q20 4Q21 FY20 FY21 10
Slide 11: Merchant Services & Solutions: key business update
Merchant Services & Solutions: key business update 59%1 ▪ Strong acceleration of Smartpay digital proposition rollout in Germany ▪ Good customer success of new mPOS proposition in Italy, x2 sales vs previous proposition, 20% of overall frontbook ▪ Continued progress in vertical industry propositions
Slide 12: Merchant Services & Solutions: accelerated double-digit revenue and volume growth
Merchant Services & Solutions: accelerated double-digit revenue and volume growth despite Omicron variant Net Revenues (€M) Managed Transactions (#M) Key Highlights International ▪ Strong double-digit revenue growth in Schemes +11.1% FY21 for both Nexi and Nets 61%1 ▪ Accelerated value of transactio
Slide 13: Cards & Digital Payments: key business update
Cards & Digital Payments: key business update ▪ Good traction on Credit on licensing banks supported by continued growth of BNPL installment solutions (˜1.5M of activated plans to date, +67% y/y in FY21), and Credit Premium, with double-digit growth on card stock ▪ Continued growth on international
Slide 14: Cards & Digital Payments: accelerated revenue growth
Cards & Digital Payments: accelerated revenue growth supported by sustained volume dynamics Net Revenues (€M) Managed Transactions (#M) Key Highlights 29%1 International Schemes +15.6% ▪ Revenue growth in 4Q21 and FY21 with different dynamics across the Group: +11.8% - Strong double-digit revenue gr
Slide 15: Digital Banking & Corporate Solutions: key business update
Digital Banking & Corporate Solutions: key business update B2B/ ▪ Strong growth of Instant payments volumes on Nexi ACH, 4x in 2021 Corporate ▪ Activated new Tips technical facilitator services, with two large institutions onboarded Payments ▪ Confirmed underlying growth of workstations net of banki
Slide 16: Digital Banking & Corporate Solutions: confirmed revenue growth
Digital Banking & Corporate Solutions: confirmed revenue growth supported by positive contribution from business initiatives Net Revenues (€M) Key Highlights ▪ Positive revenue growth in 4Q21 and 10%1 FY21 for the combined Group - Sustained revenue performance in +9.8% FY21 in Italy thanks to positi
Slide 17: Strong revenue performance across geographies
Strong revenue performance across geographies, Italy and DACH & Poland growing double-digit in 2021 52%1 Italy 29%1 Nordics2 +11.3% 1,179.5 1,059.9 +3.0% +9.3% 635.5 654.3 +6.0% 295.1 322.5 163.2 173.0 4Q20 4Q21 FY20 FY21 4Q20 4Q21 FY20 FY21 2%1 17%1 DACH & Poland SE Europe & Other +20.0% +26.2% 387
Slide 18: Continued focus on cost control
Continued focus on cost control. Costs comparison vs 2020 mainly affected by Covid-19 related cost containment plan Total Costs (€M) Key Highlights Personnel Costs ▪ FY21 total costs increased primarily due to Operating Costs higher transaction volumes versus last year and unwinding of 2020 cost con
Slide 19: Continued investments to support quality, innovation and IT transformation
Continued investments to support quality, innovation and IT transformation Ongoing investments 2021: key examples Capital Expenditure (€M) Transformation Capex 105 Transformation Capex Standalone Nexi and Nets Transformation Capex: Ordinary Capex ✓ New Acquiring Core platform (merchants migration ph
Slide 20: Group Capex evolution trending towards 8-10% ordinary level
Group Capex evolution trending towards 8-10% ordinary level, with transformation and integration capex peaking in 2022 to support new Group integration Combined Nexi + Nets + SIA Capital Expenditure (€M) Key Highlights Capex in % of net revenues % ▪ Group Ordinary Capex intensity ratio structurally
Slide 21: Transformation Costs and Non recurring items
Transformation Costs and Non recurring items Transformation Costs (€M) Bridge from FY 2021 Transformation Costs to Managerial Non recurring items (€M) +573.9 223.3 -25% Total Transformation 168.5 and integration costs 225.7 €M +1,048.5 -168.5 -57.2 -98.1 -15.3 -106.7 -445.8 -28.8 FY20 FY21 -474.5 FY
Slide 22: Cash Flow conversion at 78%
Cash Flow conversion at 78% €M Cash Flow Conversion 1 78% 1,094.5 225.3 20.9 105.9 203.1 848.3 539.4 FY21 EBITDA Ordinary Capex Normalized FY21 Normalized Normalized Cash Normalized Cash FY21 Normalized Change in WC Operating Cash Flow Interest Expenses Taxes2 and Minorities Free Cash Flow Note: (1)
Slide 23: Net Financial Debt / EBITDA in line with plan
Net Financial Debt / EBITDA in line with plan, at ˜3x including SIA and run-rate synergies Net Financial Debt (€M) Key Highlights Nets closing SIA closing ▪ SIA bank debt, refinanced in 1H21, fully Dec 20 Mar 21 June 21 Sept 21 Dec 21 reimbursed on January 3rd, 2022 for a notional amount of ˜873€M b
Slide 24: 2021 Ambition delivered despite Omicron variant
2021 Ambition delivered despite Omicron variant February 2021 (Nexi only) July 2021 (Nexi+Nets) Delivered Assuming gradual recovery from Covid-19 Assuming continued recovery from Covid- in 1H21 broadly in line with the current 19 with no new material restrictions trajectory: across geographies: Net
Slide 25: Integration update
Integration update 25
Slide 26: Integration workstreams and synergies progressing according to plan
Integration workstreams and synergies progressing according to plan Nexi - Nets Nexi - SIA ▪ Defined new Group technology strategy Tech platform ▪ CapEx deduplication already in execution optimisation ▪ Group digital delivery hub live, scale-up in progress ▪ Processing platform consolidation started
Slide 27: Cash synergies targeted in 2022 plus capex savings secured
Targeting 100 €M cash synergies in 2022, ˜125 €M 2022 run-rate, in addition to >65 €M one-off capex savings already secured Cash synergies (€M) Key Highlights ~320 €M total recurring cash synergies with possible 10%+ synergies’ upside in the long term Target >65€M one-off capex savings already secur
Slide 28: Combined Nexi + Nets + SIA FY 2021 Preliminary Results
Combined Nexi + Nets + SIA FY 2021 Preliminary Results 2020 and 2021 data include since the beginning of the period: - Nets underlying results at constant scope and FX - UBI merchant book - SIA results at constant scope and FX 28
Slide 29: 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 FY21 Revenues breakdown FY21 Costs breakdown by type By business By geography By type Merchant Services & Solutions Italy Nordics1 Installed based Variable costs Cards & Dig
Slide 30: Double-digit revenue and EBITDA performance on the new larger perimeter
Double-digit revenue and EBITDA performance on the new larger perimeter Net Revenues (€M) EBITDA (€M) EBITDA margin 45% 47% +10.0% 3,041.5 2,764.5 +13.6% 1,421.9 1,251.4 FY20 FY21 FY20 FY21 Figures net of intercompany. 30
Slide 31: Positive performance in all business units
Positive performance in all business units with double-digit growth in Merchant Services & Solutions €M Merchant Services & Solutions Cards & Digital Payments Digital Banking & Corporate Solutions 52%1 32%1 16%1 +11.8% 1,567.9 1,402.9 +8.6% 976.6 899.6 +7.6% 497.0 462.1 FY20 FY21 FY20 FY21 FY20 FY21
Slide 32: Positive revenue performance across geographies
Positive revenue performance across geographies, with double-digit growth in Italy and DACH & Poland 56%1 Italy 22%1 Nordics2 +10.7% 1,688.9 1,525.8 +3.0% 638.7 658.1 FY20 FY21 FY20 FY21 8%1 15%1 DACH & Poland SE Europe & Other +19.0% 370.8 441.1 +10.6% 229.2 253.4 FY20 FY21 FY20 FY21 Figures net of
Slide 33: 2022 Nexi + Nets + SIA Combined Ambition
2022 Nexi + Nets + SIA Combined Ambition 2018 2021 Revenues Revenues Nexi at IPO Guidance1 931€M 2022 Nexi + Nets + SIA Ambition 3,042€M Assuming exit from Covid-19 from the beginning of 2Q22: Net ▪ 7-9% net revenue growth ▪ 5-7% annual net revenue growth over medium term Revenues ▪ Double-digit gro
Slide 34: Closing remarks
Closing remarks 34
Slide 35: Key messages
Key messages Continued volume growth, Strong financial performance Continued progress in creating despite Omicron variant in 4Q21 in 4Q21 and FY21 the European PayTech leader ▪ Double-digit volume growth in Italy ▪ Revenues up +11% vs 4Q20, +10% vs ▪ Nexi-SIA deal: closed at year-end 2021 compared t
Slide 36: Q&A
Q&A 36
Slide 37: Annex
Annex 37
Slide 38: Nexi + Nets Combined P&L
Nexi + Nets Combined P&L Combined P&L – Nexi + Nets Underlying figures1 Δ% vs. Δ% vs. FY20 FY21 4Q20 4Q21 €M FY20 4Q20 Merchant Services & Solutions 1,242.1 1,383.0 +11.3% 338.5 383.4 +13.3% Cards & Digital Payments 613.5 658.6 +7.4% 163.2 176.5 +8.2% Digital Banking & Corporate Solutions 206.8 227.
Slide 39: SIA standalone performance
SIA standalone performance Revenues (€M) Cards & Merchant Solutions 68%1 Key Highlights Revenues, €M +12.3% +10.8% ▪ Resilient and diversified business 499.0 560.5 model 829.2 +11.3% 748.2 143.1 159.3 ▪ Continued growth of volumes during +8.0% 4Q21, back to pre-Covid growth 4Q20 4Q21 FY20 FY21 level
Slide 40: Nexi + Nets + SIA Combined P&L
Nexi + Nets + SIA Combined P&L Combined P&L – Nexi + Nets Underlying figures1 + SIA Δ% vs. Δ% vs. FY20 FY21 4Q20 4Q21 €M FY20 4Q20 Merchant Services & Solutions 1,402.9 1,567.9 +11.8% 386.0 441.9 +14.5% Cards & Digital Payments 899.6 976.6 +8.6% 247.4 261.8 +5.8% Digital Banking & Corporate Solution
Slide 41: Investor Relations
Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com 41