Worldline SA · EURONEXT:WLN
Worldline SA — Investor Presentation (September 2015)
46 slides from Worldline SA's investor presentation, September 2015
Slide 1: Presentation to Investors
Presentation to Investors september 2015
Slide 2: Disclaimer
Disclaimer ● This document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a number of risks and uncertainties tha
Slide 3: Worldline ID card
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Slide 4: We are
We are A payment service company, which builds and operates real-time transactional payment systems to allow merchants, banks, governments and other organizations: • to issue, accept and settle payment means in various forms and; • to manage all types of digital transactions with their customers bey
Slide 5: Group Snapshot
Group Snapshot Worldline at a glance - 40 years of expertise in payment systems 2009 2011-12 2013 2014 Start cross selling Creation of a group service Worldline IPO program within Atos line including Carve-out SIS HTTS Businesses 2013 Integration of new countries into Worldline WORLDLINE IS A PROVID
Slide 6: Typical Industry payment four-party card chain
Typical Industry payment four-party card chain Network Visa, Mastercard, …. Card Scheme Scheme incentive fee fee Card Interchange fee Card issuer variable dependingon acquirer country and payment mean Cardholder Cardholder Merchant incentive fee Service Charge Cardholder Surcharge Payment acceptor (
Slide 7: Worldline business is organized in three Global Business Lines
Worldline business is organized in three Global Business Lines 2014 Revenue 2014 Revenue: 2014 Revenue: € 374 m (+2.0%) € 396 m (+1.4%) € 380 m (+5.1%) Leveraging the Transforming cashless Enabling strategic digital customer engagement payments transformation 2014 OMDA (*) margin 21.6 25.2 13.7 % %
Slide 8: Worldline is a leading player in Europe with expanding emerging markets footprint
Worldline is a leading player in Europe with expanding emerging markets footprint Why scale matters: • Price competitiveness #1 Issuing Processor • Innovation in Germany • Outsourcing opportunities • Barriers to entry #1 Commercial Acquirer • Increased operating leverage in Belgium • Positioned for
Slide 9: Comprehensive positioning across the extended payments value chain
Worldline has a comprehensive positioning across the extended payments value chain Issuing Services to Acquiring Services to new Card payment transaction cardholders and ACH¹ Credit/Debit Services to transaction Commercial Acceptance POS digital transfers merchants acquiring /eCommerce Services in E
Slide 10: A Tier 1 diversified client base
A Tier 1 diversified client base High quality customer portfolio, low client concentration Merchant Services Financial Processing and Mobility and and Terminals Software Licensing e-Transactional Services Over 86,000 Merchants contracts 200+ banks and financial institutions 150+ customers Over 45,00
Slide 11: Environment impacted by regulations and digital transformation
Worldline’s environment positively impacted by changes in regulations and digital transformation PAYMENT MARKET VOLUME IMPACT OF THE CHANGE IN GROWTH EUROPEAN REGULATIONS ▶ Ubiquitous penetration of electronic payments through mobility and Internet of Things MIF Cap on interchange fee ▶ Growing 3x f
Slide 12: 2014 supported by volume growth, innovation and international cross-selling
2014 supported by volume growth, innovation and international cross-selling m-payment Innovation HCE solution Internet acquiring bundle International Connected cross selling Living M-to-m and data analytics Volumes Value added +6% +11% services Fraud Management commercial Issuing transactions servic
Slide 13: Strategy to take advantage of regulatory and digital changes
Worldline strategy to take advantage of regulatory and digital changes Banks (FPL) • Capture new outsourcing opportunities • Upsell with new innovative products on existing customers (strong authentication, payment data analytics,…) • Consolidate the leadership in new payment means (Mobile payment,
Slide 14: 2014 financial highlights
2014 financial highlights Key P&L items 2014 2013* Key Observations In € million OMDA% in line with mid-term guidance Revenue 1149.3 1135.1 Top line growth accelerating along 2014 Growth %** 2.8% 4.1% FCF progressing by 14% excluding one- OMDA 215.1 203.2 off items As % of sales 18.7% 17.9%***
Slide 15: 2015 and mid term guidance
2015 and mid term guidance 2015 GUIDANCE MEDIUM-TERM OBJECTIVES 5 to 7% 2014-2017 organic revenue CAGR Revenue 4 to 5% organic growth Sales growth to progressively increase over the period OMDA +c.50 bp vs. 2014 +c.250 bps margin for 2017 vs. 2013 FCF €120m to €125m c.€180m by 2017 15
Slide 16: H1 2015 results
Third Quarter 2014 Thursday, November 6 2014
Slide 17: H1 2015 key figures
H1 2015 key figures €595.0m €108.7m +4.1% organic 18.3% +56 bp €1.8b € 64.2m €264.5m 1.5 years +11.8% of revenue vs H1 2014 17
Slide 18: H1 2015 key messages
H1 2015 key messages H1 2015 fully in line with the full year ambition Strong progress in the execution of the Group’s expansion plans Recognition of Worldline’s innovation and enhanced financial market visibility Productivity improvements and efficiency gains delivered (TEAM) “Comprehensive” rating
Slide 19: 2015 Objectives confirmed
2015 Objectives confirmed Revenue 4% to 5% organic growth OMDA +c.50 bp vs. 2014 Free € 120m to € 125m Cash Flow 19
Slide 20: Financial details
Third Quarter 2014 Thursday, November 6 2014
Slide 21: Constant scope and exchange rate figures reconciliation
Constant scope and exchange rate figures reconciliation Scope and FX effects Performance Summary Exchange H1 2014 H1 2015 Organic In € million rates H1 2014* statutory actuals change effect Revenue 556.4 15.0 571.4 595.0 4.1% OMDA 99.1 2.1 101.2 108.7 7.4% OMDA% 17.8% 17.7% 18.3% +0.56 pt * At June
Slide 22: Performance per Global Business Line
Performance per Global Business Line Revenue OMDA OMDA % In € million H1 2015 H1 2014* % Growth H1 2015 H1 2014* H1 2015 H1 2014* Merchant Services & Terminals 193.5 184.9 +4.6% 33.9 37.6 17.5% 20.3% Financial Processing & Software Licensing 200.5 197.2 +1.7% 48.7 46.9 24.3% 23.8% Mobility & e-Trans
Slide 23: Merchant Services & Terminals
Merchant Services & Terminals Merchant Services & Terminals In € million H1 2015 H1 2014* Change Revenue 193.5 184.9 +4.6% OMDA 33.9 37.6 OMDA% 17.5% 20.3% -2.8pt * At June 2015 constant scope and average exchange rates Key facts ▶ Sustained growth in Commercial Acquiring; ▶ Confirmed dynamics of Pa
Slide 24: Financial Processing & Software Licensing
Financial Processing & Software Licensing Financial processing & Software Licensing In € million H1 2015 H1 2014* Change Revenue 200.5 197.2 +1.7% OMDA 48.7 46.9 OMDA% 24.3% 23.8% +0.5pt * At June 2015 constant scope and average exchange rates Key facts ▶ Strong growth in Online Banking Services; ▶
Slide 25: Mobility & e-Transactional Services
Mobility & e-Transactional Services Mobility & e-Transactional Services In € million H1 2015 H1 2014* Change Revenue 201.0 189.3 +6.2% OMDA 35.4 24.1 OMDA% 17.6% 12.7% +4.9pt * At June 2015 constant scope and average exchange rates Key facts • Double-digit growth in e-Consumer & Mobility with severa
Slide 26: Income statement
Income statement Key Observations 6 months 6 months • Staff reorganization (In € million) ended ended related to costs induced 6/30/2015 6/30/2014 by the implementation of the new organization. Operating Margin before Depreciation and 108.7 99.1 Amortization (OMDA) • Rationalization expenses Operati
Slide 27: Cash flow statement
Cash flow statement Key Observations 6 months 6 months (In € million) ended ended • Investment is in line 6/30/2015 6/30/2014 with the multi-year plan. Operating Margin before Depreciation and 108.7 99.1 Amortization (OMDA) Capital expenditures (32.8) (31.0) • 2014 tax payment Change in working capi
Slide 28: Simplified balance sheet
Simplified balance sheet 6 months 6 months 12 months (In € million) ended ended ended 6/30/2015 6/30/2014 12/31/2014 Goodwill 381.5 370.7 374.8 Intangible assets 116.5 89.6 105.0 Tangible assets 67.0 73.0 72.6 Non-current financial assets 11.4 4.7 9.0 Net deferred tax assets 43.8 48.3 47.3 Total non
Slide 29: Business highlights
Third Quarter 2014 Thursday, November 6 2014
Slide 30: Selected Q2 - Merchant Services & Terminals
Merchant Services & Terminals Business Highlights Action plan & operational objectives Key achievements • Further deployment of our SmartPay International acquiring with our “Payer Malin” offer in Belgium to enable payment institution license mobile payment in store, with 5 other retail customers no
Slide 31: Selected Q2 - Financial Processing & Software Licensing
Financial Processing & Software Licensing Business Highlights Action plan & operational objectives Key achievements • Extension of Worldline’s partnership Gain scale and unify platforms with Fexco to provide DCC (Dynamic Currency Conversion) in ATMs across Europe. • Worldline’s HCE mobile payment so
Slide 32: Selected Q2 - Mobility & e-Transactional Services
Mobility & e-Transactional Services Business Highlights Action plan & operational objectives Key achievements Go to market • Enhancement of Worldline’s Increase focus around end-to-end vertical “connected objects” offerings digital businesses through a partnership with Transatel, aiming at reducing
Slide 33: TEAM program on track in H1
TEAM program on track in H1 Main achievements to date • New sales operating • Build of global Production Boost sales model Infrastructure virtualized infrastructure & optimize & Customer contract services margin • Sales force globalization • Definition of new global realignment customer service mode
Slide 34: WIPE program: integrated and optimized processing platform
WIPE program: A more globally integrated and optimized processing platform Unique approach on Wallet, HCE, and gradual convergence on Fraud, Issuing and Acquiring back-office, Authorization & Switching, managed by newly created Shared Centres Standardization on non-functional requirements to improve
Slide 35: Confirmed market trends for payment security
Confirmed market trends for payment security: Towards cloud and software based solutions validation fingerprint proximity HCE VISA & 4 pilot banks connected multi-devices risk engine adaptive authentication electronic signature voice and face fingerprint partnerships browser geolocalisation fingerpr
Slide 36: Trusted Authentication
Trusted Authentication Future in progress 36
Slide 37: Strategy
Third Quarter 2014 Thursday, November 6 2014
Slide 38: One year after the IPO: Key strategic priorities confirmed
One year after the IPO: Key strategic priorities confirmed Maintain strong priority to international deployment of innovative solutions Pursue innovation and R&D for next generation of payments and added-value services Continue transforming the company through the TEAM program Take advantage of the
Slide 39: Digital retail
Third Quarter 2014 Thursday, November 6 2014
Slide 40: Key challenges faced by the retail industry
Key challenges faced by the retail industry: 41% of shoppers are highly likely to leave a store because of unhelpful staff***. What about retaining all these customers? Stores have 3 times less product items than e-commerce. How about multiplying by 3 the product offer in store? 75% of shoppers who
Slide 41: Consumers are demanding on new experience
Consumers are demanding on new experience The cross-touch point experience Consumers, always connected, is the new norm want ultra-personalized and simple interactions with the brand, The digital customer at the very moment he needs it = The new 24/7 buyer They are switching really fast, even faster
Slide 42: The technology has changed and is becoming mature/mainstream
The technology has changed and is becoming mature/mainstream Seller Tablets o Catalog & Demonstrations penetration Market o Order Management o Loyalty programs o Stock Management Consumer Mobile Devices o Order management Kiosks & Digital Signage o Payment o Attract customers o Couponing o Order/Pay
Slide 43: Four enablers required for new digital retail services
Behind the scene, four enablers are required for these new digital retail services Full digital order capture Digital aggregation and 01 system to buy in a digital way any services and products orchestration of data & services Guarantee a seamless and secure digital experience cross 04 channels 04 H
Slide 44: Key components of our offering in Digital Retail
The key components of our offering in Digital Retail - A modular approach Digital Platform Merchant Wallet • Omni-commerce • Leading European Wallet core solution provider with 7M of • Referential store active wallets dedicated to share information and data • True wallet (not just a card in real-tim
Slide 45: Examples of concrete digital transformation supported by Worldline
Examples of true concrete digital transformation supported by Worldline Digital Platform Unattended Retail kiosks … to know better the McDo’s customers …to improve the customer service Barcelona Mobile Ready McDonald’s Experience Interactive Signage Digital Store … to attract the customer and sell m
Slide 46: Thanks
Thanks For more information please contact: David Pierre-Kahn Head of Investor Relations T +33 1 34 34 90 66 M+ 33 6 28 51 45 96 david.pierre-kahn@worldline.net