Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q3 2022 Earnings Presentation
28 slides from Western Union Company (the)'s earnings presentation, Nov 1, 2022
Slide 1: Earnings webcast and conference call Third Quarter 2022
Earnings webcast and conference call Third Quarter 2022 Nov 1, 2022
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: Devin McGranahan, Chief Executive Officer
Devin McGranahan Chief Executive Officer 4
Slide 5: Evolve 2025 Strategy
“Evolve 2025” Strategy Corridor and community customer Digital first customer experiences acquisition Scalable marketing driven customer Improved customer and agent omni- acquisition channel experiences Retail to digital escalator Network optimization Digital first customer experiences
Slide 6: Third Quarter Highlights
Third Quarter Highlights Company Results Highlights Revenue $1.1B GAAP Op. Margin 21.3% 20.6% GAAP Adj.* EPS $0.45 $0.42 GAAP Adj.* *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. 6
Slide 7: Marketing Program to Improve Acquisition
Marketing Program to Improve Acquisition 7
Slide 8: Ecosystem Strategy
Western Union Ecosystem Strategy Senders Receivers Save - Spend - Transfer
Slide 9: Matt Cagwin, Interim Chief Financial Officer
Matt Cagwin Interim Chief Financial Officer 9
Slide 10: Q3 Business Trends
Q3 Business Trends Revenue $1.1B GAAP & Adj.* Operating Margin 21.3% 20.6% GAAP Adj.* Effective Tax Rate 10.2% 15.5% GAAP Adj.* EPS $0.45 $0.42 GAAP Adj.* *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures. 10
Slide 11: Q3 Consumer-to-Consumer Trends
Q3 Consumer-to-Consumer Trends Regions GAAP Revenue Adj. Rev Transaction % of C2C YoY % Change YoY % Change* Growth/(Decline) Revenue North America (5%) (5%) (5%) 40% Europe & CIS (23%) (16%) (32%) 28% MEASA (5%) (3%) (1%) 16% LACA 0% 4% 3% 10% APAC (16%) (11%) (11%) 6% Total C2C (11%) (8%) (12%) 10
Slide 12: Q3 Other and Business Solutions Highlights
Q3 Other and Business Solutions Highlights Other (primarily retail bill payments businesses in the U.S. & Argentina and money orders in the U.S.) 6% of Company revenue GAAP revenue was flat in the quarter Business Solutions Divestiture will now close in 3 closings instead of 2 Pending required regul
Slide 13: Financial Highlights
Financial Highlights YTD as of September 30, 2022 Cash flow from operations $522 million Dividends paid $273 million Share repurchases $177 million Capital expenditures $148 million Cash balance $1.2 billion Debt outstanding $2.6 billion *Note: See appendix for reconciliation of Non-GAAP to GAAP fin
Slide 14: 2022 Outlook
2022 Outlook GAAP GAAP & Adj. GAAP Effective GAAP Earnings per Revenue1 Operating Profit Margin* Tax Rate Share Approximately -11% to -13% A range of 20% to 21% Approximately 20% $2.18 to $2.28 Adj. Adj. Effective Tax Adj. Earnings per Revenue Rate Share* Mid-single digit decline Mid-teens range $1.
Slide 15: Questions & Answers
Ww Western Union Questions & Answers 15
Slide 16: Appendix
Appendix Third Quarter 2022 Earnings Webcast and Conference Call 16
Slide 17: 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 18: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q21 4Q21 FY2021 1Q22 2Q22 3Q22 YTD 3Q22 Consolidated Metrics Revenues (GAAP) - YoY % change 2% 1% 5% (4)% (12)% (15)% (11)% Adjusted revenues (non-GAAP) - YoY % change (a) 2% 2% 4% (2)% (8)% (11)% (7)% Adjusted revenues, excluding Busines
Slide 19: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q21 4Q21 FY2021 1Q22 2Q22 3Q22 YTD 3Q22 C2C Segment Regional Metrics - YoY % change NA region revenues (GAAP) (2)% 2% 1% (1)% (2)% (5)% (3)% NA region foreign currency translation impact (k) 0% 0% 0% 0% 0% 0% 0% Adjusted NA region revenue
Slide 20: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q21 4Q21 FY2021 1Q22 2Q22 3Q22 YTD 3Q22 % of C2C Revenue NA region revenues 37% 38% 37% 39% 40% 40% 39% EU & CIS region revenues 32% 31% 32% 29% 28% 28% 29% MEASA region revenues 15% 15% 15% 17% 16% 16% 16% LACA region revenues 9% 9% 9% 9
Slide 21: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q21 4Q21 FY2021 1Q22 2Q22 3Q22 YTD 3Q22 Consolidated Metrics (a) Revenues (GAAP) $ 1,286.3 $ 1,284.8 $ 5,070.8 $ 1,155.7 $ 1,138.3 $ 1,089.6 $ 3,383.6 Foreign currency translation impact (k) (2.8) 14.8 (18.3) 33.2 42.1 60.8 136.1 Adjusted
Slide 22: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q21 4Q21 FY2021 1Q22 2Q22 3Q22 YTD 3Q22 (d) Net income (GAAP) $ 232.7 $ 168.8 $ 805.8 $ 293.3 $ 194.0 $ 173.9 $ 661.2 Acquisition and divestiture costs (m) 5.5 3.7 15.7 3.3 0.9 0.4 4.6 Gain on investment sale (n) — — (47.9) N/A N/A N/A N/
Slide 23: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q21 4Q21 FY2021 1Q22 2Q22 3Q22 YTD 3Q22 Consolidated Metrics cont. (e) Effective tax rate (GAAP) 20% 7% 14% 19% 18% 10% 17% Change in permanent reinvestment assertion related to the sale of Business Solutions (q) (6)% 0% (2)% N/A N/A N/A
Slide 24: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Notes 3Q21 4Q21 FY2021 1Q22 2Q22 3Q22 YTD 3Q22 C2C Segment Metrics (g) Revenues (GAAP) $ 1,104.5 $ 1,111.5 $ 4,394.0 $ 999.0 $ 1,026.9 $ 982.4 $ 3,008.3 Foreign currency translation impact (k) (9.4) 6.2 (46.4) 20.8 28.1 37.1 86.0 Revenues, const
Slide 25: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 2022 Consolidated Outlook Metrics Notes Range Operating margin (GAAP) 20.0% 21.0% Impact from acquisition and divestiture costs (m) 0.0% 0.0% Impact from the sale of Business Solutions, including exit costs (r), (s) (0.5)% (0.5)% Impact from Rus
Slide 26: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 26
Slide 27: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 27
Slide 28: Thank You
WV Thank You Western Union
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