Slide 1: Investor Presentation
Investor Presentation September 2018 1
Slide 2: Disclaimer
DISCLAIMER Important notice You must read the following before continuing. No representation and no liability: The information contained in this documentation has been supplied by Mercury UK Holdco Limited (the “Company”) and its affiliates (together, the “Group”). The Group completed a corporate re
Slide 3: Today's Presenters
TODAY’S PRESENTERS Bernardo Mingrone Group Chief Financial Officer Appointed CFO of Nexi in 2016 Prior roles include Group CFO of UniCredit (2015-2016) and Deputy GM in charge of Finance and Operations at BMPS (2012-2015), preceded by a career in investment banking at Lehman Brothers and J.P. Mo
Slide 4: Executive Summary
EXECUTIVE SUMMARY PRE-REORGANISATION MERCURY GROUP In the first 6 months 2018, Mercury Group delivered a solid financial performance, both in terms of revenues and EBITDA The unaudited consolidated Mercury UK Holdco income statement for H1 2018 showed: Operating Revenue of €549.0m, as a result
Slide 5: Agenda
AGENDA I. LATEST DEVELOPMENT II. Q2 2018 YTD TRADING UPDATE A. MERCURY GROUP B. OLD NEXI GROUP C. MERCURY PAYMENTS III. Q&A 5
Slide 6: Agenda
AGENDA I. LATEST DEVELOPMENT II. Q2 2018 YTD TRADING UPDATE A. MERCURY GROUP B. OLD NEXI GROUP C. MERCURY PAYMENTS III. Q&A 6
Slide 7: Mercury Group's Evolution and Group Structure Pre Reorganisation
MERCURY GROUP’S EVOLUTION AND GROUP STRUCTURE PRE REORGANISATION Significant Build-up of Scale and Capabilities Through Disciplined M&A. Nexi Re-branding kicked-off in late 2017 Brokerage branch Payments MPS Acquiring Services Acquisition of ICBPI Acquisition of Acquisition of Full control o
Slide 8: Profile Post Reorganisation
PROFILE POST REORGANISATION Original Issuer (November 2015) Post-Reorganization (Today) Full Banking License Payment Institution Regulation (EMI / PI status for selected operating subsidiaries (with full CRD4 compliance) in line with other issuers) PF Adj. €233m2 €495m EBITDA Net Operating Revenues1
Slide 9: Group Structure as at July 2 Post Reorganisation and Refinancing
GROUP STRUCTURE AS AT JULY 2 POST REORGANISATION AND REFINANCING Advent Bain Clessidra Mercury (AI) Mercury (BC) Fides S.p.A. S.à.r.l. S.à.r.l. 42.5% (of Bondco) 42.5% (of Bondco) 15.0% (of Bondco) 27.5% (of ABC) 27.5% (of ABC) 45.0% (of ABC) 100% 100% Mercury A Mercury B Mercury ABC Mercury Bondco
Slide 10: Agenda
AGENDA I. LATEST DEVELOPMENT II. Q2 2018 YTD TRADING UPDATE A. MERCURY GROUP B. OLD NEXI GROUP C. MERCURY PAYMENTS III. Q&A 10
Slide 11: Update on Mercury Group: Spotlight on Q2 2018 YTD Results
UPDATE ON MERCURY GROUP Spotlight on Q2 2018 YTD Results Commentary on pro-forma financials Consolidated Summary Financials (€m)1 Mercury Group Operating revenue for H1 2018 increased by Q2’18 YTD €29.4m, or 5.7%, vs. same period last year on a pro-forma basis, with vs. a higher contribution from
Slide 12: Update on Mercury Group (Cont'd): Selected KPIs
UPDATE ON MERCURY GROUP (CONT’D) Selected KPIs Combined Group – Key Performance Indicators LTM Q2 2018 Figures YTD Q2 2018 Figures Total Total Positive Y-o-Y change of Mercury Mercury Y/Y managed cards, value of Group Group cards transactions as well as managed Issuing & Acquiring transactions. Im
Slide 13: Group Financial Profile
GROUP FINANCIAL PROFILE Mercury Group7 Mercury Group – LTM Q2 2018 Adjusted Pro Forma EBITDA (€m) 50.1% 62.7 566.5 35.7% 40.1% 453.5 5.6 42.9 566 1.8 Normalised EBITDA ICT and International Debit Synergies from Adjustments in April Adjusted EBITDA 454 Procurement Initiatives (2) Acquisitions (3) 30
Slide 14: Agenda
AGENDA I. LATEST DEVELOPMENT II. Q2 2018 YTD TRADING UPDATE A. MERCURY GROUP B. OLD NEXI GROUP C. MERCURY PAYMENTS III. Q&A 14
Slide 15: Update on Old Nexi Group: Spotlight on Q2 2018 YTD Results
UPDATE ON OLD NEXI GROUP Spotlight on Q2 2018 YTD Results Commentary on pro-forma financials Pro-forma1 Operating Revenue (€m) Nexi Payments (Card Issuing, Merchant Acquiring and POS) drove Old Q2 YTD Results LTM Results Nexi Group’s growth in the first 6 months 2018 on a pro-forma basis. Positive
Slide 16: Old Nexi Group's Segmental Information
OLD NEXI GROUP’S SEGMENTAL INFORMATION Pro-forma Operating Revenue (€m) Pro-forma EBITDA (€m) Q2’17 YTD Q2’18 YTD LTM Q2’18 Q2 18 Y-o-Y Q2’17 YTD Q2’18 YTD LTM Q2’18 Q2 18 Y-o-Y 608.9 43.6% 43.5% EBITDA margin Nexi Payments 9.5% 10.2% 276.6 303.0 264.8 119.8 132.1 Nexi Payments revenue and EBITDA
Slide 17: Evolution of Old Nexi Group's KPIs
EVOLUTION OF OLD NEXI GROUP’S KPIS Q2‘18 Q2’17 Q2’18 LTM Q2’18 Y-o-Y Change 15.8 16.4 16.4 Managed Cards¹ = Average Ticket (€)2 3.5% (# - m) Issuing Business 81.6 76.3 78.3 Value of Cards KPIs in both Issuing and Acquiring 30.8 pointed to a positive evolution of Transactions2 14.4 15.0 4.2% (€bn)
Slide 18: Evolution of Old Nexi Group's KPIs (Cont'd)
EVOLUTION OF OLD NEXI GROUP’S KPIS (CONT’D) Q2‘18 Q2’17 Q2’18 LTM Q2’18 Y-o-Y Change Debit Cards 11.7 10.7 10.7 Other Nexi Payments Businesses (8.3%) (# - m) No. of debit cards down vs. June 1,224 Debit Cards 2017, against the backdrop of a Transactions1 597 596 (0.1%) mature market and as a resul
Slide 19: Agenda
AGENDA I. LATEST DEVELOPMENT II. Q2 2018 YTD TRADING UPDATE A. MERCURY GROUP B. OLD NEXI GROUP C. MERCURY PAYMENTS III. Q&A 19
Slide 20: Update on Mercury Payments: Spotlight on Q2 2018 YTD Results
UPDATE ON MERCURY PAYMENTS Spotlight on Q2 2018 YTD Results Commentary Operating Revenue (€m) Q2 YTD Results LTM Results Q2’18 YTD Operating Revenue up €11.6m, or 16.6%, on the back of +7.7% higher volumes and repricing effects, driving net commissions up 15.3% year-on-year +16.6% EBITDA rose by
Slide 21: Evolution of KPIs: Mercury Payment Services
EVOLUTION OF KPIS Mercury Payment Services Q2’18 Q2’17 Q2’18 LTM Q2’18 Y-o-Y Change 5,112 5,165 5,165 Positive volume trends, as a Managed Cards1 combination of growing usage per Issuing Processing 1.0% (# - ‘000) card and enlarged client-base Business Managed On the issuing processing side, 270
Slide 22: Agenda
AGENDA I. LATEST DEVELOPMENT II. Q3 2017 YTD TRADING UPDATE A. MERCURY GROUP B. OLD NEXI GROUP C. MERCURY PAYMENTS III. Q&A 22
Slide 23: Q&A Session
Q&A Session 23