Western Union Company (the) · NYSE:WU
Western Union Company (the) — William Blair & Company Growth Stock Conference 2015
16 slides from Western Union Company (the)'s conference presentation, Jun 9, 2015
Slide 1: Western Union
Western Union Raj Agrawal, EVP & CFO June 9, 2015
Slide 2: 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 pred
Slide 3: Western Union - Overview
Western Union - Overview A leader in global payment services, primarily cross border • Consumer money transfer (80% of 2014 Revenues) • Business-to-business payments (7%) • Consumer bill payments (11%) 2014 Results Revenues $5.6B +1%, or +4% CC* Operating Margin 20.3% Cash Flow from Op. Activities $
Slide 4: Western Union
Western Union WU provides a network hub for money movement around the world • Connects diverse businesses and consumers • Physical and digital • Brand stands for trust Cross Border Funds In Funds Out Platform 4
Slide 5: Cross Border Money Transfer
Cross Border Money Transfer Cross Border Funds In Funds Out Platform • More than 200 countries and territories • Over 500,000 agent locations • More than 100,000 ATMs and kiosks • wu.com transaction sites in 25 countries • Third party digital (on-line banking, mobile wallets, etc.) • Business accoun
Slide 6: Cross Border Money Transfer
Cross Border Money Transfer Cross Border Funds In Funds Out Platform • Technology • Settlement and foreign exchange • Regulatory and compliance • Data management 6
Slide 7: Cross Border Money Transfer
Cross Border Money Transfer Cross Border Funds In Funds Out Platform • More than 200 countries and territories • Over 500,000 agent locations • More than 100,000 ATMs and kiosks • Bank account delivery in 50 countries • Mobile wallets • Prepaid cards, etc. • Business accounts (B2B) 7
Slide 8: Cross Border Remittance Market
Cross Border Remittance Market Market size: $583 billion 2014 cross border principal* • Slight market growth projected in 2015, mid-single digit growth in 2016 and 2017* • Digital initiated expected to drive growth WU Focus • Expanding digital capabilities • Expanding digital and physical network •
Slide 9: WU Digital – wu.com and mobile money transfer
WU Digital – wu.com and mobile money transfer Western Union Digital – Performance WU Digital Revenue $300 wu.com consumer money (2009-2014, $M) transfer revenue growth $250 Transformation • 2011 37% $200 • 2012 24% $150 • 2013 24% $100 • 2014 28% $50 $0 2009 2010 2011 2012 2013 2014 9
Slide 10: B2B – Business Solutions
B2B – Business Solutions Strong long-term growth opportunity • Large market driven by global trade • WUBS $405 million revenue in 2014; low single digit market share • Driving value added payment solutions cross border in key segments including: – Account-to-account services for financial institutio
Slide 11: 2015 Q1 Results
2015 Q1 Results Revenue of $1.3 billion down 2% reported, up 4% constant currency* • Impact of strong dollar • U.S. outbound C2C business healthy • WUBS constant currency revenue growth accelerated • wu.com revenue growth 23% constant currency* Operating Profit Margin • 20.6% compared to 20.1% i
Slide 12: Generating and deploying strong cash flow
Generating and deploying strong cash flow $ Millions $254 $265 Dividends $277 $772 $394 $488 Repurchases Dividends Repurchases Returned 93% of Free Cash Flow 12
Slide 13: Generating and deploying strong cash flow
Generating and deploying strong cash flow Quarterly dividend increased 24% in February to $0.62 annualized • Payout of 38% to 39% (based on April outlook) • Yield of 3% on current price $1.2 billion, 3 year repurchase authorization expires December 2017 • $150 million utilized in 1Q 2015 13
Slide 14: Summary – Western Union
Summary – Western Union • Extensive cross border platform, global network, and brand provide foundation for growth in C2C • Opportunity in B2B • Strong cash flow generation and allocation for shareholders 14
Slide 15: Appendix
Appendix Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding our operating results to assist management, investors, analysts, and others in understanding our financial results and to better analyze trends in our underlyi
Slide 16: Appendix
Appendix Consolidated Metrics 1Q15 Revenues, as reported (GAAP) $ 1,320.9 Foreign currency translation impact (a) 78.6 Revenues, constant currency adjusted $ 1,399.5 Prior year revenues, as reported (GAAP) $ 1,350.8 Revenue change, as reported (GAAP) (2)% Revenue change, constant currency adjusted 4
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