Worldline SA · EURONEXT:WLN
Worldline SA — Investor Presentation (September 2020)
40 slides from Worldline SA's investor presentation, Sep 18, 2020
Slide 1: Presentation to Investors September 2020
PRESENTATION TO INVESTORS SEPTEMBER 2020
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: Worldline ID Card
WORLDLINE ID CARD September 2020 | © Worldline
Slide 4: Worldline Today
WORLDLINE TODAY ~ €2.4 bn MERCHANT FINANCIAL MOBILITY & 2019 SERVICES SERVICES E-TRANSACTIONAL NET REVENUE SERVICES ~ €1.1 bn ~ €0.9 bn ~ €0.3 bn 2019 REVENUE 2019 REVENUE 2019 REVENUE 410,000+ c. 13 bn 350+ c. 12,000 MERCHANTS PAYMENT TRANSACTIONS CUSTOMERS IN EMPLOYEES c. 125 bn VARIOUS INDUSTRIES
Slide 5: Uninterrupted Growth Track Record
UNINTERRUPTED GROWTH TRACK RECORD 5 YEARS of continuous organic growth REVENUE OMDA FREE CASH FLOW EXPANSION (€ m) (€ m) DRIVING (€ bn) €2,4 € 602 € 288 OPERATING bn m m 25.3% LEVERAGE €1,6 €1,7 bn € 391 € 207 m bn € 176 +660 bps* €1,2 €1,3 € 335 m € 140 m €1,1 bn m € 129 on OMDA bn bn € 215 € 235 €
Slide 6: Solid Execution of Consolidation Strategy Since IPO
SOLID EXECUTION OF CONSOLIDATION STRATEGY SINCE IPO MERCHANT SERVICES FINANCIAL SERVICES Reach Portfolio Scale Scale Portfolio Reach Baltics Ongoing offer on securities Anchored M&A strategy in Worldline DNA Successful integration of 8 acquisitions in fueling growth, value creation & innovation a re
Slide 7: A Unique Pan-European Payment Champion
A UNIQUE PAN-EUROPEAN PAYMENT CHAMPION WITH AN UNRIVALLED INDUSTRIAL SCALE & REACH PSP ranking in the EU (European revenue in €m) European leadership at scale Leadership Merchant services + #1 c.35m c.5.6 bn Number of In the DACH region, in Payment terminals acquiring Benelux, in France and in the m
Slide 8: 2020 Global Nilson Rankings (Europe)
2020 GLOBAL NILSON RANKINGS (EUROPE) PER NUMBER OF TRANSACTIONS AND PER PURCHASED VOLUME 8 8 | September 2020 | © Worldline
Slide 9: Number of Cashless Transactions Constantly Increased 2007-2016
THE NUMBER OF CASHLESS TRANSACTIONS HAS CONSTANTLY INCREASED BETWEEN 2007 AND 2016, WITH LOW CORRELATION TO GLOBAL GDP GROWTH 8.5% 500 483 Number of worldwide non-cash transactions (bn) 98,000 Non-cash transactions 450 Global Gross Domestic Product ($bn) 93,000 CAGR over the period 88,000 400 83,000
Slide 10: European Payment Market in Need of a Lead Consolidator
THE EUROPEAN PAYMENT MARKET IN NEED OF A LEAD CONSOLIDATOR WITH WORLDLINE’S SOLID TRACK RECORD, FINANCIAL FLEXIBILITY AND AMBITION Consolidation has mostly taken place in the US VS Europe is initiating the 2nd consolidation wave Top 10 US Payment players (Ranking based on 2017 revenues) Top 10 Europ
Slide 11: Highlights FY 2019
HIGHLIGHTS FY 2019 September 2020 | © Worldline
Slide 12: Another Very Solid Year
ANOTHER VERY SOLID YEAR Very good set of Strong Very successful Strategic flexibility enhanced results perfectly in performance in all first year during the year through: Business Lines of integration line with the objectives Atos’ decision to deconsolidate with notably an with SIX Payment set for
Slide 13: A Very Strong Set of Results
A VERY STRONG SET OF RESULTS €2,382m €602m €288m €641m +6.9% organic 25.3%* +38.6% Net debt / OMDA** (Q4 2019 at +7.5%) +240bp leverage ratio: 1.1x FREE REVENUE OMDA CASH FLOW NET DEBT *: including IFRS16 impact of +1.7pt ** pre-ifrs16 13 | September 2020 | © Worldline
Slide 14: 2019 Financial Performance Overview
2019 FINANCIAL PERFORMANCE OVERVIEW 14% Mobility & e- 47% Transactional Merchant Services Services 39% Financial Services * At constant scope and December 2019 YTD average exchange rates 14 | September 2020 | © Worldline
Slide 15: Contemplated Acquisition Ingenico
CONTEMPLATED ACQUISITION INGENICO September 2020 | © Worldline
Slide 16: Transformative Combination
TRANSFORMATIVE COMBINATION CREATING A LEADING GLOBAL PAYMENT SERVICE PROVIDER LEADERSHIP AND SCALE #1 MERCHANT c.€300bn ACQUIRER PURCHASE VOLUME IN CONTINENTAL ACQUIRED EUROPE c.1,200 c.35 c.1 million FINANCIAL million INSTITUTIONS MERCHANTS c.5.6bn #1 CLIENTS POS NUMBER OF EUROPEAN ACQUIRING PAYMEN
Slide 17: Highly Complementary Geographical Footprint in Merchant Services
HIGHLY COMPLEMENTARY GEOGRAPHICAL FOOTPRINT IN MERCHANT SERVICES EUROPEAN LEADERSHIP… …WITH GLOBAL PRESENCE LEADING POSITION IN GROWING ACCESS GERMAN E-PAYMENT MARKET WITH TO THE US MARKET A REINFORCED JV WITH DSV REINFORCED EXPOSURE ENHANCED ACCESS TO MERCHANTS IN LATAM TO FRENCH BANKS AND
Slide 18: Robust & Secure €250 Million Run-Rate Synergy Expectations
ROBUST & SECURE €250 MILLION RUN-RATE SYNERGY EXPECTATIONS INCREMENTAL TO ON-GOING SPS INTEGRATION, c. €220 million OMDA synergies in 2024, of TEAM² AND FIT FOR GROWTH PROGRAMS which c. 85% in Merchant Services • c. 30% delivered in 2021 220 • Above 50% delivered in 2022 OMDA impact in €m c. 14%
Slide 19: Highlights First Half 2020
HIGHLIGHTS FIRST HALF 2020 September 2020 | © Worldline
Slide 20: Resilient First Half 2020 Results
RESILIENT FIRST HALF 2020 RESULTS IMPROVING MOMENTUM IN LINE WITH FULL YEAR TRAJECTORY Satisfying set of financial Strong commercial activity Continued execution figures in the COVID-19 despite COVID-19 situation: of the strategy: context: Strategic benefits of the SIX Results fully in line with
Slide 21: Further Progress Towards the Closing of Ingenico Acquisition
FURTHER PROGRESS TOWARDS THE CLOSING OF INGENICO ACQUISITION Tender process Secured financing Outstanding support (99.6%) of Worldline shareholders for the required issuance of new shares Offer document filed with the AMF on July Pre-integration activities started in 28; offer opened on July 30
Slide 22: Financial Update on Ingenico Acquisition
FINANCIAL UPDATE ON INGENICO ACQUISITION Transaction supported by the BBB (stable) investment grade rating confirmed by S&P Financed by: • A bridge financing signed by a pool of 8 banks for an amount up to € 0.9 billion, available for a duration of up to 2 years • The issuance on June 23rd of fi
Slide 23: Ingenico Pre-Integration Process
INGENICO PRE-INTEGRATION PROCESS IMPLEMENTATION OF THE DAY-1 READINESS APPROACH INGENICO PRE-INTEGRATION WORK PROGRESSED IN A VERY GOOD COLLABORATIVE SPIRIT 33 streams launched with exploratory “Know each other” phases performed. 1st draft of Day1 organization produced and dedicated social approval
Slide 24: Satisfying Set of Financial Figures
SATISFYING SET OF FINANCIAL FIGURES REVENUE OM DA FREE CASH FLOW € 1,089 m € 246 m € 132 m -5.7% organic 22.6% -170bps 53.6% of OMDA NET INCOME GROUP NORMALIZED* NET SHARE INCOME GROUP SHARE € 53 m € 115 m * Adjusted for (Group share): staff reorganization, rationalization, integration & acquisition
Slide 25: H1 2020 Financial Performance Overview
H1 2020 FINANCIAL PERFORMANCE OVERVIEW Revenue OMDA OMDA % In € million H1 2020 H1 2019* Change H1 2020 H1 2019* Change H1 2020 H1 2019* Change Merchant Services 483.6 541.9 -10.8% 103.3 122.4 -15.6% 21.4% 22.6% -120 bps Financial Services 442.7 446.0 -0.7% 130.9 145.6 -10.1% 29.6% 32.7% -310 bps Mo
Slide 26: COVID-19 Cost Contingency Plan and 2020 Margin Trajectory
COVID-19 COST CONTINGENCY PLAN AND 2020 MARGIN TRAJECTORY Materialization of temporary actions as per plan Project reprioritization Subco reduction Restricted hours and holidays concentration Supplier renegotiations Logistics, travels, other discretionary spent Monitoring of business relat
Slide 27: Update on Transaction Volumes
UPDATE ON TRANSACTION VOLUMES Of which Q1 2020* Q2 2020* June 2020* ACCOUNT PAYMENTS +8% +5% +9% ACS, TRUSTED AUTH, WALLET TRANSACTIONS +40% +44% +50% NUMBER OF ISSUING TRANSACTIONS +8% -8% +3% Of which: • Debit card +9% COMMERCIAL ACQUIRING TRANSACTIONS +8% -3% +5% • Credit card -14% * Compared wit
Slide 28: Successful Q2 Commercial Activity
SUCCESSFUL Q2 COMMERCIAL ACTIVITY Framework agreement Worldline to provide commercial acquiring and value-added services for a large number of brands in several European countries Secured remote order and payment system Stores located in seven European countries. Launch of “Soft POS” in In
Slide 29: All 2020 Objectives Confirmed
ALL 2020 OBJECTIVES CONFIRMED CURRENT MARKET TRENDS IN LINE WITH FY BASE SCENARIO Based on the hypothesis outlined during the Q1 2020 revenue publication, the Group confirms that 2020 financial performance is expected broadly in line with 2019 as described below: 2020 2019 (Reminder) ORGANIC REVENUE
Slide 30: Key Takeaways
KEY TAKEWAYS 1 Materialization as anticipated of the progressive business recovery since de-confinement: Confirmed trajectory for the full year 2020 “Post-COVID-19 world” expected to bring new business opportunities: 2 Cashless transition acceleration Favorable environment for bank’s payment o
Slide 31: Corporate & Social Responsibility Highlights
CORPORATE & SOCIAL RESPONSIBILITY HIGHLIGHTS September 2020 | © Worldline
Slide 32: Worldline CSR Commitments Based on Five Major Objectives
To ensure that Worldline will stay relevant, efficient and … Worldline CSR performing as per market and commitments is based on stakeholders expectations in five major Objectives. the current decade…. 1 Building clients’ trust with fully available & secured platforms 2 Reinforcing value for clients
Slide 33: Worldline CSR Performance Steady Improvement
WORLDLINE CSR PERFORMANCE STEADY IMPROVEMENT DEMONSTRATING COMMITMENT TO EXCELLENCE Our best position 7th 1% 5th 5th 3th 10th 4th 4% A- 88/100 4.5/5 AA 2019 83/100 A- 82/100 2019 2017 81/100 C+ Prime 78/100 2018 75/100 2019 76/100 2017 C- 67/100 64/100 2016 58/100 56/100 2018 47/100 2016 2015 2015 2
Slide 34: EcoVadis Assessment: Worldline Obtained 83/100 Score in 2019
AN IT LEADERSHIP WITH ECOVADIS ASSESSMENT: WORLDLINE OBTAINED A 83/100 SCORE IN 2019 Outstanding 83/100 81/100 1% 76/100 1% 1% Advanced 64/100 3% 58/100 2019 Engaged 2018 2017 2016 2015 34 | September 2020 | © Worldline
Slide 35: Worldline Ranked in Top Companies for CSR Performance
WORLDLINE RANKED IN THE TOP 10 COMPANIES FOR ITS CSR PERFORMANCE (MSCI, SUSTAINALYTICS) 35 | September 2020 | © Worldline
Slide 36: How Worldline Aims to Reduce Its Carbon Footprint
HOW WORLDLINE AIMS TO REDUCE EVERYDAY ITS CARBON FOOTPRINT? Reduce energy consumption through ISO 14001 sites certification & Invest in low consumption technologies for offices and data centers Design Eco-efficient payment terminals Move to renewable electricity Offset 100% of the remaining CO2 emis
Slide 37: Worldline Key ESG Commitments for Software & Services Markets
WORLDLINE KEY ESG COMMITMENTS FOR SOFTWARE & SERVICES MARKETS CYBER SECURITY HUMAN CAPITAL Maintain a high level of Security certification ISO Propose to all employees individual development 1 27001 across the organization 1 plan 2 Strengthen services related to our Center of 2 Ensure proposed train
Slide 38: Worldline Contribution to UN Sustainable Development Goals
WORLDLINE CONTRIBUTION TO THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS EXTERNAL Products & services INTERNAL Programs & policies 38 | September 2020 | © Worldline
Slide 39: Q&A
Q&A September 2020 | © Worldline
Slide 40: Thank You
THANK YOU 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.com © Worldline