Slide 1: FY22 Results Presentation
This content is classified as Internal FY22 Results Presentation March 7th, 2023
Slide 2: Disclaimer
This content is classified as Internal 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
Slide 3: Key messages
This content is classified as Internal Key messages Solid financial performance, Double-digit volume growth Strong progress in creating despite macro, with strong in 4Q22 across all geographies the European PayTech leader margin expansion in the year ▪ Sustained double digit volume growth in ▪ Reven
Slide 4: Entering the Spanish market through a partnership with Banco Sabadell
This content is classified as Internal Entering the highly attractive Spanish market through a strategic long-term partnership with Banco Sabadell in merchant acquiring Enter the Spanish market (#4 largest economy in Europe), with unique structural characteristics and significant growth potential ▪
Slide 5: Entering Spain further expands Nexi's growth opportunities
This content is classified as Internal Entering Spain further expands Nexi’s growth opportunities Flag size indicates addressable market size in terms of consumer spend Expanded growth opportunity 90% (incl. Spain) 80% €4.5tn Consumer spend €5.0tn Card penetration1 70% 36% Card penetration 36% 60% 5
Slide 6: Transaction overview
This content is classified as Internal Transaction overview Main highlights Key Figures of Banco Sabadell’s merchant book ▪ Acquisition of 80% of Sabadell’s merchant acquiring business, after its KPIs 2022 carve-out into PayComet, a fully owned Sabadell company ▪ 280 €M consideration paid with avail
Slide 7: Double-digit volume growth in 4Q22 across all geographies, accelerating YTD in 2023
This content is classified as Internal Trend vs previous year Double-digit volume growth in 4Q22 across all geographies, accelerating YTD in 2023 High impact consumption Basic consumption Discretionary consumption Total Net of discontinued clients due to optimised risk profile --- Italian Cards ---
Slide 8: Merchant Solutions: key business update
This content is classified as Internal Merchant Solutions: key business update FY22 TRX Value Key Business Highlights ▪ Strong continued customer base growth across all geographies, with terminals installed base growing by Examples of recent 53%1 ~200k2 in FY22 mainly driven by Italy, DACH and Polan
Slide 9: Focus on FY22 results
This content is classified as Internal Focus on FY22 results
Slide 10: Solid Revenue and EBITDA growth, driving EBITDA margin expansion
This content is classified as Internal Solid Revenue and EBITDA growth, driving EBITDA margin expansion and delivering 2022 Ambition Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin +6.7% Y/Y +10.5% Y/Y 49% 51% 46% 49% Gross of scheme fees Gross of scheme fees +7.8% + 311 bps Excl. Rate
Slide 11: Merchant Solutions: double-digit revenue growth in the year
This content is classified as Internal Merchant Solutions: double-digit revenue growth in the year despite tough comparison and Ratepay effect in 4Q22 Net Revenues (€M) Managed Transactions (#M) Key Highlights +7.9% Y/Y +15.3% Y/Y International +18.3% ▪ Continued growth in value of 54%1 Gross of sch
Slide 12: Issuing Solutions: positive revenue growth supported by sustained volumes
This content is classified as Internal Issuing Solutions: positive revenue growth supported by sustained volumes Net Revenues (€M) Managed Transactions (#M) Key Highlights 31%1 International Schemes +18.4% ▪ Strong growth of International debit in Italy with increasing card stock (+1.7M +15.0% cards
Slide 13: Digital Banking Solutions: strong revenue performance in 4Q22
This content is classified as Internal Digital Banking Solutions: strong revenue performance in 4Q22 supported by projects across geographies Net Revenues (€M) Key Highlights ▪ B2B/Corporate Payments: continued growth and new customers on 14%1 Corporate Payments Gateway +1.3% 455.4 461.4 ▪ Open Bank
Slide 14: Double-digit growth in DACH and Poland excluding Ratepay
This content is classified as Internal Double-digit growth in DACH and Poland excluding Ratepay, while 4Q22 impacted by different phasing of scheme fees in Italy and bank projects in SE Europe 55%1 Italy Nordics2 21%1 +7.4% 1,675.2 1,798.6 +7.3% +5.9% 687.3 +7.4% 640.5 469.1 496.9 169.6 182.2 4Q21 4
Slide 15: Strong cost performance thanks to operating leverage and synergies
This content is classified as Internal Strong cost performance thanks to operating leverage, rigorous cost control and delivering of synergies Total Costs (€M) Key Highlights Personnel Costs Operating Costs ▪ Continued strong cost control with broadly flat cost evolution in 2022, despite volume +5.1
Slide 16: Continued investments to support quality, innovation and IT transformation
This content is classified as Internal Continued investments to support quality, innovation and IT transformation Ongoing investments 2022: key examples Capital Expenditure (€M) Transformation Capex 173 Transformation Capex Standalone Nexi and Nets Transformation Capex Ordinary Capex ✓ Merchants’ mi
Slide 17: Group Capex evolution targeting 7-9% ordinary level
This content is classified as Internal Group Capex evolution targeting 7-9% ordinary level, with transformation and integration capex peaking in 2022 to support new Group integration Capital Expenditure (€M) Key Highlights % Capex in % of net revenues ▪ Residual ~130 €M of Transformation and Integra
Slide 18: Strong continued reduction of Integration and Transformation Costs
This content is classified as Internal Strong continued reduction of Integration and Transformation Costs Transformation and Bridge from FY 2022 transformation and integration costs to non-recurring items (€M) integration costs (€M) Integration costs Transformation costs -105.4 280.5 -44% 70.9 -51.8
Slide 19: Strong EBITDA minus Capex and non-recurring cash items performance
This content is classified as Internal Strong EBITDA minus Capex and non-recurring cash items performance at +56% Y/Y Normalised EPS at 0.53€ up by 15% Y/Y EBITDA minus Capex and non-recurring cash items (€M) Normalised EPS1 (€) Normalised Net Profit 602 €M 693 €M 899.9 +14.9% 0.53 +55.8% 0.46 577.5
Slide 20: Strong excess cash generation in the year
This content is classified as Internal Strong excess cash generation in the year Excess cash generation1 (€M) 1,612.8 1,600.3 12.5 526.8 186.1 Includes benefit of 822.5 c.100 €M cash taxes 64.9 deferred to 2023 143.5 123.9 161.4 393.8 FY22 EBITDA At constant FY22 Capex Non-recurring ∆ NWC2 Operating
Slide 21: Net Financial Debt / EBITDA in line with plan
This content is classified as Internal Net Financial Debt / EBITDA in line with plan, at ˜2.9x including run-rate synergies Net Financial Debt (€M) Key Highlights ▪ Total 573 €M debt prefunded (100 €M bank Dec 21 Mar 22 June 22 Sept 22 Dec 22 loans due 2025 in 3Q22 and 473 €M buyback of 2024 and 202
Slide 22: Estimated 2022 Revenues and EBITDA at CMD perimeter
This content is classified as Internal Estimated 2022 Revenues and EBITDA at CMD perimeter – Basis for 2023 Guidance Net Revenues (€M) EBITDA (€M) Normalised EPS1 (€) EBITDA margin 49% 51% Changes in perimeter (M&A in & out and AHS) 3,260.0 52.5 +0.02 € M&A in 3,143.2 -0.03 € refinancing / extension
Slide 23: Estimated 2022 Revenues and EBITDA at CMD perimeter – Yearly performance
This content is classified as Internal Estimated 2022 Revenues and EBITDA at CMD perimeter – Yearly performance Net Revenues (€M) EBITDA (€M) Normalised EPS1 (€) Merchant Solutions EBITDA margin Normalised Net Profit Issuing Solutions 47% 51% 575 €M 678 €M Digital Banking Solutions + 320 bps +11.6%
Slide 24: Closing remarks
This content is classified as Internal Closing remarks
Slide 25: 2023 Guidance confirmed in line with CMD medium-term growth ambition
This content is classified as Internal 2023 Guidance confirmed in line with CMD medium-term growth ambition Net ▪ More than 7% y/y growth Revenues EBITDA ▪ More than 10% y/y growth Excess cash ▪ At least 600 €M2 generated1 Net ▪ ~2.9x EBITDA (~2.6x EBITDA incl. run-rate synergies) leverage3 Normalis
Slide 26: Key messages
This content is classified as Internal Key messages Solid financial performance, Double-digit volume growth Strong progress in creating despite macro, with strong in 4Q22 across all geographies the European PayTech leader margin expansion in the year 2022 Ambition delivered despite unexpected challe
Slide 27: Q&A
This content is classified as Internal Q&A
Slide 28: Annex
This content is classified as Internal Annex
Slide 29: Continued strong growth in all geographies compared to pre-Covid levels
This content is classified as Internal Trend vs 2019 Continued strong growth in all geographies compared to pre-Covid levels High impact consumption Basic consumption Discretionary consumption Total Net of discontinued clients due to optimised risk profile --- Italian Cards --- Foreign Cards ITALY Y
Slide 30: Continued acceleration of cash to digital payments shift across sectors
This content is classified as Internal Continued acceleration of cash to digital payments shift across sectors High Impact Consumption Basic Consumption Discretionary Consumption Focus on specific industries (January) % change vs 2019 Italy1 Nordics2 DACH2 Books, periodicals Restaurants 89% 132% Dep
Slide 31: Group normalised P&L at constant scope
This content is classified as Internal Group normalised P&L at constant scope Δ% vs. Δ% vs. FY21 FY22 4Q21 4Q22 FY21 4Q21 €M Merchant Solutions 1,612.8 1,774.0 +10.0% 453.3 468.1 +3.3% Issuing Solutions 976.9 1024.6 +4.9% 267.2 277.6 +3.9% Digital Banking Solutions 455.4 461.4 +1.3% 124.9 133.7 +7.1
Slide 32: Revenues gross of scheme fees, shifted to Opex
This content is classified as Internal Revenues gross of scheme fees, shifted to Opex For illustrative purpose only Δ% vs. Δ% vs. Δ% vs. Δ% vs. Δ% vs. 1Q22 2Q22 3Q22 4Q22 FY22 1Q21 2Q21 3Q21 4Q21 FY21 €M Merchant Solutions 457.8 +17.3% 553.3 +22.8% 612.8 +14.8% 579.7 +7.9% 2,203.6 +15.3% Issuing Sol
Slide 33: Bridge from Reported EBITDA to Normalised Net Profit
This content is classified as Internal Bridge from Reported EBITDA to Normalised Net Profit €M 1,600.3 937.4 245.3 184.2 693.2 33.5 139.6 245.3 513.0 137.9 140.0 12.5 FY22 D&A Interest Non Taxes & FY22 At constant D&A ∆ Interest Non ∆ Taxes FY22 Reported Expenses recurring Minorities Reported scope
Slide 34: Cash Flow conversion at 74%
This content is classified as Internal Cash Flow conversion at 74% €M Cash Flow Conversion 1 74% 1,613 354 65 1,194 124 321 750 FY22 EBITDA Ordinary Capex ∆ NWC FY22 Normalised Normalised Cash Normalised Cash FY22 Normalised Operating Cash Flow Interest Expenses Taxes2 and Minorities Free Cash Flow
Slide 35: Debt maturities as at FY22
This content is classified as Internal Debt maturities as at FY22 Nexi Group Debt Maturity Schedule(1) (€M) Senior Notes Term Loans 1,976 Convertible Notes Last tranche of 900 €M TL due 2027 has been drawn in 1Q23 1,050 1,400 150 756 750 1,000 1,050 926 696 507 500 60 2023 2024 2025 2026 2027 2028 2
Slide 36: Well diversified revenue base both in terms of business and geography
This content is classified as Internal Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets Data at CMD perimeter FY22 Revenues breakdown FY22 Costs breakdown by type By business By geography By type Merchant Solutions Install
Slide 37: Revenue geographical breakdown
This content is classified as Internal Revenue geographical breakdown Data at CMD perimeter 58%1 Italy 19%1 Nordics2 +7.5% 1,701.1 1,828.1 +8.5% 555.3 602.4 FY21 FY22 FY21 FY22 10%1 13%1 DACH & Poland SE Europe & Other +12.5% 360.9 406.2 +4.8% 292.4 306.6 FY21 FY22 FY21 FY22 Note: CMD perimeter incl
Slide 38: 2021-2025 CMD Guidance (organic basis)
This content is classified as Internal 2021-2025 CMD Guidance (organic basis) Net ▪ ⁓9% CAGR Revenues EBITDA ▪ ⁓14% CAGR EBITDA margin ▪ ⁓+900 bps 2021-2025 Excess cash ▪ ⁓2.8 €B 2023-2025 generated1 Net leverage ▪ ~1.0x - 1.5x EBITDA by 2025 on organic basis Normalised ▪ ⁓20% CAGR EPS2 Note: (1) Op
Slide 39: Investor Relations
This content is classified as Internal Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com