Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q2 2021 Earnings Presentation
31 slides from Western Union Company (the)'s earnings presentation, Aug 4, 2021
Slide 1: Earnings webcast and conference call
Earnings webcast and conference call SECOND QTR 2021 AUG 4, 2021
Slide 2: Brad Windbigler, Head of Treasury and Investor Relations
Brad Windbigler Head of Treasury and Investor Relations 2
Slide 3: 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 pre
Slide 4: Hikmet Ersek, Chief Executive Officer
Hikmet Ersek Chief Executive Officer 4
Slide 5: Strategy Update
Strategy Update Grow Our Digital Our strategy to be a leader in cross- Business border, cross-currency money Leverage Our Cross- Border Platform for movement and payments serving Multiple Use Cases consumers, businesses and financial Build a Consumer Ecosystem institutions remains unchanged Business
Slide 6: Bank account pilot to launch later this year
Bank account pilot to launch later this year WU Branded Multi-Currency Bank Account And Debit Card, Integrated with Money Transfer ©2021 Western Union Holdings, Inc. All rights reserved. 6
Slide 7: Western Union Q2 Results
Western Union Q2 Results Q2 Company Results Q2 GAAP Revenue Growth Digital Business Exceeding $500 million YTD 1 25% $1.3B 22% $267M Revenue 15% $240M $242M $231M $0.54 $0.48 $219M GAAP EPS Adj. EPS* 19.8% 20.2% C2C Digital 1 Business GAAP Margin Adj. Margin* Solutions 2Q20 3Q20 4Q20 1Q21 2Q21 *Note
Slide 8: Digital Highlights
Digital Highlights Large Digital Revenue Base Strong WU.com Quarterly Growth vs Select Peers 2020 Revenue, in millions + 14% + 37% Average Monthly Principal Growth Active Users1 WU.com + 18% WU1 Peer 1 2 Peer 2 3 Peer 3 4 Revenue Growth 1 Total digital revenue 1 A monthly active user is defined as a
Slide 9: Raj Agrawal, Chief Financial Officer
Raj Agrawal Chief Financial Officer 9
Slide 10: Business Trends Q2
Business Trends Q2 Consolidated revenues of $1.3 billion increased 16% on a reported basis and 13% on a constant currency (cc) basis* compared to the prior year period Quarterly Business Trends WU Adj. CC Revenue** C2C CC Revenue* C2C Transactions C2C Cross-border Principal 28% 29% 23% 24% 13% 15% 1
Slide 11: Consumer-to-Consumer Trends Q2
Consumer-to-Consumer Trends Q2 Regions Revenue Constant Currency Transaction % of C2C Growth Revenue Growth* Growth Revenue North America 4% 4% 3% 37% Europe & CIS 18% 10% 26% 33% MEASA 19% 18% 22% 15% LACA 70% 68% 42% 9% APAC 20% 13% 3% 6% Total C2C 15% 12% 15% 100% Included in C2C regions above: 2
Slide 12: Business Solutions and Other Highlights Q2
Business Solutions and Other Highlights Q2 Business Solutions 8% of Company revenue Revenue increased 25% (16% constant currency*) Other (primarily retail bill payments businesses in the U.S. & Argentina and money orders) 5% of Company revenue Revenue increased 8% *Note: See appendix for reconciliat
Slide 13: Total Company Operating Margin Q2
Total Company Operating Margin Q2 Key factors driving the decrease in operating margin: (-) Compensation-related expenses 20.4% (-) Strategic investments in marketing and technology 20.2% 19.8% 19.9% Adjusted operating margin was impacted by the same factors above and excludes: M&A expenses in both
Slide 14: Segment Operating Margins Q2
Segment Operating Margins Q2 C2C Segment Business Solutions Segment Other 21.8% 21.9% 20.7% 16.2% 10.9% 1.6% 2Q21 2Q20 2Q21 2Q20 2Q21 2Q20 14
Slide 15: Financial Highlights
Financial Highlights Quarter Ended June 30, 2021 EPS: GAAP / Adjusted* $0.54 / $0.48 YTD Cash Flow from Operations $349 million Dividends Paid $96 million Share repurchases $75 million Cash Balance, June 30, 2021 $1.1 billion Debt outstanding, June 30, 2021 $3.0 billion *Note: See appendix for recon
Slide 16: Business Solutions – Transaction Summary
Business Solutions –Transaction Summary Key Terms Business Solutions Segment Financial Profile Sales price $910 million Last 12 Months Ended June 30, 2021 Proceeds, net of tax In excess of $800 million received upon first closing Expected to close in 2 stages: Revenue • First closing: expected to be
Slide 17: 2021 Outlook
2021 Outlook GAAP Operating GAAP Earnings per GAAP & Adjusted Revenue Profit Margin Share Effective Tax rates GAAP revenue: 21% $1.82 to $1.92 Effective tax rate in mid-to-high single a mid-teens range digit increase Adjusted Operating Adjusted Earnings per Constant currency Profit Margin* Share* re
Slide 18: Questions & Answers
\wu Western Union Questions & Answers 18
Slide 19: Appendix
Appendix Second Quarter 2021 Earnings Webcast and Conference Call 19
Slide 20: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Western Union presents a number of non-GAAP financial measures because A non-GAAP financial measure should not be considered in isolation or as a management believes that these metrics provide meaningful supplemental substitute for the most comp
Slide 21: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q20 3Q20 4Q20 FY2020 1Q21 2Q21 YTD 2Q21 Consolidated Metrics Consolidated revenues (GAAP) - YoY % change (17) % (4) % (3) % (9) % 2 % 16 % 8 % Consolidated revenues (non-GAAP, constant currency and excluding Speedpay and Paymap) - YoY % c
Slide 22: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q20 3Q20 4Q20 FY2020 1Q21 2Q21 YTD 2Q21 C2C Segment Regional Metrics - YoY % change NA region revenues (GAAP) (6) % 0 % (3) % (3) % 0 % 4 % 2 % NA region foreign currency translation impact (j) 1 % 1 % 0 % 0 % 1 % 0 % 0 % NA region revenu
Slide 23: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q20 3Q20 4Q20 FY2020 1Q21 2Q21 YTD 2Q21 % of C2C Revenue NA region revenues 41 % 38 % 37 % 38 % 37 % 37 % 37 % EU & CIS region revenues 32 % 33 % 33 % 33 % 33 % 33 % 33 % MEASA region revenues 15 % 16 % 15 % 15 % 16 % 15 % 15 % LACA regio
Slide 24: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Three Months Ended June 30, 2021 Operating Income Before Provision for Diluted Earnings Notes Revenues Income Income Taxes Income Taxes Net Income per Share (in millions, except per share amounts) Reported results (GAAP) $ 1,289.7 $ 254.9 $ 260.
Slide 25: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Six Months Ended June 30, 2021 Operating Income Before Provision for Diluted Earnings Notes Revenues Income Income Taxes Income Taxes Net Income per Share (in millions, except per share amounts) Reported results (GAAP) $ 2,499.7 $ 487.7 $ 463.0
Slide 26: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q20 3Q20 4Q20 FY2020 1Q21 2Q21 YTD 2Q21 Consolidated Metrics (a) Revenues (GAAP) $ 1,114.7 $ 1,258.5 $ 1,271.8 $ 4,835.0 $ 1,210.0 $ 1,289.7 $ 2,499.7 Foreign currency translation impact (j) 46.4 41.1 22.4 157.2 (0.9) (29.4) (30.3) Revenu
Slide 27: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q20 3Q20 4Q20 FY2020 1Q21 2Q21 YTD 2Q21 Consolidated Metrics cont. (d) Effective tax rate (GAAP) 16 % 12 % 11 % 13 % 10 % 14 % 13 % Impact from restructuring-related expenses (m) 0 % 1 % 1 0 % N/A N/A N/A Impact from acquisition and dives
Slide 28: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 2Q20 3Q20 4Q20 FY2020 1Q21 2Q21 YTD 2Q21 Business Solutions Segment Metrics (h) Revenues (GAAP) $ 79.4 $ 89.1 $ 89.2 $ 356.1 $ 96.5 $ 99.3 $ 195.8 Foreign currency translation impact (j) 2.0 (1.9) (2.4) (0.1) (5.6) (7.2) (12.8) Revenues (n
Slide 29: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 2021 Consolidated Outlook Metrics Range Earnings per share (GAAP) ($- dollars) $ 1.82 $ 1.92 Pension plan termination charge (q) 0.22 0.22 Gain on an investment sale (o) (0.10) (0.10) Debt extinguishment costs (p) 0.03 0.03 Acquisition and dives
Slide 30: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Non-GAAP related notes: (j) Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign excha
Slide 31: Thank You
\WU Thank You Western Union
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