Worldline Sa · EURONEXT:WLN
Worldline Sa — Investor Day (October 2017)
172 slides from Worldline Sa's investor day presentation, Oct 3, 2017
Slide 1: Worldline Investor Day October 3rd 2017 Bezons
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
Slide 3: Agenda
Agenda Introduction 08.05-08.25 ●●● by Thierry Breton 2017-2019: the next milestone of Worldline pan-european leadership ambitions 08.25-09.05 ●●● by Gilles Grapinet Strategy Execution 09.05-09.35 ●●● by Marc-Henri Desportes 2017-2019 financial ambition 09.35-09.50 ●●● by Eric Heurtaux 09.50-10.10 ●
Slide 4: Agenda
Agenda Innovation @ Worldline 14.00-14.30 ●●● by Nicolas Kozakiewicz People excellence supporting company’s expansion 14.30-14.45 ●●● by Patrice Gry TEAM² 14.45-15.00 ●●● by Eric Heurtaux Corporate Social Responsibility 15.00-15.15 ●●● by Gilles Grapinet 15.15-15.45 ●●● {Questions & Answers} Conclus
Slide 5: Introduction
Introduction Thierry Breton Atos Chairman and CEO, Worldline Chairman 5
Slide 6: Worldline: the front runner of Atos strategy to create leaders in Europe
Worldline: the front runner of Atos strategy to create leaders in Europe Source: company estimate *: European 2016 pro forma revenue excl. payment terminal 6 Investor Day – October 3rd 2017 – Bezons **: Global revenue from transactions
Slide 7: Worldline was listed to be at the center of the consolidation of European payments
Worldline was listed to be at the center of the consolidation of European payments ● Solid track record since IPO ● After the merger with Equens and 4 other acquisitions, the only truly pan-European processing platform ● Strong balance sheet and significant firepower ● Clear strategy and industrial
Slide 8: Worldline's share price performance: from €16.40 to €35.86
Worldline’s share price performance: from €16.40 to €35.86 Market 2017e cap. € 4.7m >x2 Net debt/ EBITDA (*) 250 Wirecard c. -1.0 Worldline c. -1.0 200 Atos c. -0.5 Market cap. € 2.2m 150 Worldpay c. 2.7 Ingenico c. 3.0 SBF 120 Nets c. 2.6 100 50 Gemalto c. 2.1 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec
Slide 9: Successful governance model fostering synergies between Atos and Worldline
Successful governance model fostering synergies between Atos and Worldline Board of Directors’ structure fully Management compliant with the AFEP-MEDEF code ● Experienced and international team ● Global matrix-based organization combining global drive and local empowerment ● Proven success of the cu
Slide 10: e-Payments at the very core of Atos' digital platform
e-Payments at the very core of Atos’ digital platform New technological breakthroughs ATOS’ END-TO-END OFFERINGS A COMPREHENSIVE GROWTH STRATEGY PERFECTLY ANSWERING CLIENT NEEDS Robust organic development through Atos has built the perfect platform • Acceleration of organic growth for IT digitizatio
Slide 11: 2017-2019: the next milestone of Worldline pan-European leadership ambitions
2017-2019 the next milestone of Worldline pan-European leadership ambitions Gilles Grapinet, CEO Worldline
Slide 12: Accelerating towards Global Payment Leadership
Accelerating towards Global Payment Leadership A much stronger Worldline An even better market potential A clear 2017-2019 ambition 12 Investor Day – October 3rd 2017 – Bezons
Slide 13: A much stronger Worldline: acceleration of revenue growth
A much stronger Worldline Acceleration of revenue growth, well in the 5% to 7% target bracket over the past 18 months Underlying organic growth: revenue growth excluding the impact of the Radar contract termination 13 Investor Day – October 3rd 2017 – Bezons
Slide 14: Substantial improvement of Worldline's financial profile since the IPO
A much stronger Worldline Substantial improvement of Worldline’s financial profile since the IPO Revenue expansion OMDA Free Cash Flow c.€325m c.+60% (Consensus) c.+70% > €170m* c.€1.6bn* c.+40% €258m €140m €129m €235m >c. €114m €1.3bn €215m €20.5% €100m c.1.2bn €204m €1.1bn €1.1bn 18.2% 2013 (1) 20
Slide 15: Through a first wave of M&A, more scale, reach and capability
A much stronger Worldline Through a first wave of M&A, New! Q3 more scale, reach and capability Baltics Industrial scale Reinforcement of our portfolio Global online payment New technologies Bank alliances for Commercial Acquiring Strengthen our European position Enter higher growth countries c.€330
Slide 16: Our market is more favorable than 3 years ago
An even better market potential Our market is more favorable than 3 years ago… Increased need Banks will Cashless of industrial remain the key Europe is society scale to face player within the place is on its way payment the payment to be market ecosystem evolutions … and Worldline is ideally positi
Slide 17: The shift towards a cashless society is accelerating
An even better market potential The shift towards a cashless society is accelerating • Digital transformation • Technological maturity • Emergence of a digital addict generation • Strong political push 17 Investor Day – October 3rd 2017 – Bezons
Slide 18: The shift towards a cashless society is accelerating
An even better market potential The shift towards a cashless society is accelerating +11% 433.1 YoY +9% +8% 389.7 +8% 357.9 +8% 332.7 Non-cash transactions volume +6% 309.4 285.5 growth acceleration 269 In 2022 electronic transactions could surpass cash payments 2009 2010 2011 2012 2013 2014 2015 Nu
Slide 19: Increased need of industrial scale to face payment market evolutions
An even better market potential Increased need of industrial scale to face payment market evolutions 19 Investor Day – October 3rd 2017 – Bezons
Slide 20: European banks are facing a very challenging new normal
An even better market potential European banks are facing a very challenging “new normal” Impacts of Digital € SEPA ●●● Transformation ●●● Need for European Strong need reach and scale to innovate Increasing Challenging competition regulation ●●● ●●● between peers Basel 3, 4, PSD2, MIF, & from FinTe
Slide 21: Banks want to and can stay a key actor in payments
An even better market potential Banks want to - and can - stay a key actor in payments but need new partnerships Banks remain a key trusted partner of billions of customers They want to - and we believe they will – remain at the center of the payment ecosystem They have started to adapt themselves b
Slide 22: Europe is the place to be: a solid organic growth potential
An even better market potential Europe is the place to be: a solid organic growth potential ● Solid macro-economic perspectives in the eurozone 40% EU 28 ● Robust organic growth potential with still a lot of cash to displace 60% ● Accumulation of highly innovative and game Volume of payment changing
Slide 23: Europe is at the start of the consolidation process
An even better market potential Europe is at the start of the consolidation process Pan-European Start of the regulations HARMONIZATION consolidation process SEPA – Interchange- PSD in Europe Despite M&A transactions over the past years, the European market is still extremely fragmented in every dom
Slide 24: Pursuing the solid momentum created since IPO
A clear 2017-2019 ambition Pursuing the solid momentum created since IPO Equens transaction: 2014-2016 a major merger generating commitments higher than expected synergies delivered running ahead of plan New 2017 acquisitions Improvement and will foster revenue growth expansion of acceleration and i
Slide 25: Five strategic priorities
A clear 2017-2019 ambition Five strategic priorities 25 Investor Day – October 3rd 2017 – Bezons
Slide 26: All 2017-2019 objectives raised
A clear 2017-2019 roadmap All 2017-2019 objectives raised Initial guidance Upgraded guidance Revenue After 3.5% to 4% for 2017, After 3.5% to 4% for 2017, Organic 5% to 7% CAGR 5% to 7% for 2018 and Growth 6% to 8% for 2019 Above 22.5% in 2019 +350bp to +400bp margin (i.e. >+400bp OMDA % improvement
Slide 27: Strategy Execution
Strategy Execution Marc-Henri Desportes General Manager
Slide 28: Our Mission: Empowering a Cashless Society
Our Mission: Empowering a Cashless Society 28 Investor Day – October 3rd 2017 – Bezons
Slide 29: PSD2 regulation supports a deeper trend of Open Banking
PSD2 regulation supports a deeper trend of “Open Banking” Loan Company PSP, Telco, Retailer Account Banks must allow access holder to accounts by registered third parties Third Parties can AISP/PISP initiate payments Data enrichment & analysis party /access accounts but are more tightly regulated Ac
Slide 30: SEPA instant payment resonates with mobile and remote payment trend
SEPA instant payment resonates with mobile and remote payment trend A booster for innovation Pay in-store M-Pay E-Pay Customer scans a QR code generated by the Proxy lookup service to switch from mobile phone Open Banking to manage access terminal or through NFC tap on the PISP app number to account
Slide 31: Our strategy: key dimensions for differentiation and leverage
Our strategy: 6 key dimensions for differentiation and leverage Scalable own assets, fueled by our R&D Multiple sales channels including bank partnerships Competitive advantage through relentless efficiency efforts and scale Continuously upgrade our quality and security levels Investing in people’s
Slide 32: Scalable own assets, fueled by our R&D
Scalable own assets, fueled by our R&D Now combined Worldline (former WIPE) and Equens products roadmaps > 100,000 man-days/year ●●●●●● Buy or Partners maintained for: • non core payment modules Covering the core payment value chain with in-house solutions allowing: • B2C or very business specific a
Slide 33: Our Technological Assets: comprehensive and recognized
Scalable own assets, fueled by our R&D Our Technological Assets: comprehensive and recognized 33 Investor Day – October 3rd 2017 – Bezons
Slide 34: Our R&D Master Tracks
Scalable own assets, fueled by our R&D Our R&D Master Tracks 34 Investor Day – October 3rd 2017 – Bezons
Slide 35: Multiple sales channels including bank partnerships
Multiple sales channels including bank partnerships 200 Atos Account Executives incentivized Bi-Monthly top management cross-selling board Cross-selling through ATOS Boosting our Partnering Organic own salesforce with Banks Sales in new geographies Combining payment assets in custom/ MeTS large deal
Slide 36: Competitive advantage through relentless efficiency efforts and scale
Competitive advantage through relentless efficiency efforts and scale Continuous improvement Benefits from larger scale 2014-2017 - 161M€ savings achieved equensWorldline integration tracks Reminder - Jointly prepared BP Main drivers Fully organized Day1 with 16 integration tracks • Contract profita
Slide 37: Continuously upgrade our quality and security levels
Continuously upgrade our quality and security levels ● Operational excellence culture, based on selected best practices grown in a 100,000 people IT outsourcing leader Zero Incident program // Peer reviews // Risk-based robustness plans ● Efficient and State-of-the-Art Security Mixing payment securi
Slide 38: Investing in people's expertise and excellence
Investing in people’s expertise and excellence • We promote our long term industrial and FinTech projects as the most attractive • We invest in Experts and in their Development • We develop a company culture of strong sense of belonging • We have grown a know how of integrating newcomers (from recru
Slide 39: M&A execution: latest deals complete asset portfolio
M&A execution as a booster for strategy execution Latest M&A deals complete asset portfolio Completes our online Completes our high capabilities with growth Indian • Global reach operations with • Collecting solution • New customers • New market segment • Innovative low cost terminals and terminals
Slide 40: Building on proven Atos and Worldline know-how
M&A execution as a booster for strategy execution Building on proven Atos and Worldline know-how 40 Investor Day – October 3rd 2017 – Bezons
Slide 41: 2017-2019 Financial Ambition
2017-2019 Financial Ambition Eric Heurtaux, CFO Worldline
Slide 42: Recent acquisitions' financial profile
Recent acquisitions’ financial profile Estimated Impact on Group Impact on Group 12 months 2017-19 2017-19 revenue growth profile profitability profile Digital River c.€220m invested World Payments Acquisition multiple (blended) FDB < €60m slightly below Worldline’s current trading multiple: 11.4x M
Slide 43: 2017-2019 revenue bridge
2017-2019 revenue bridge 2017-19 GROWTH DRIVERS Innovative offerings: PSD2, Instant Payments… Merchant Services: above group average • Transaction volume growth • Synergies from DRWP and MRL Posnet • Structural growth of the Indian market • Increased geographical diversification Financial Services:
Slide 44: OMDA bridge
2017-2019 OMDA IMPROVEMENT DRIVERS OMDA bridge TEAM² Merchant Services • Synergies starting in 2017 with PaySquare and KB Smartpay • Scale effect on platforms operated by equensWorldline • Positive revenue mix effect with Worldline India and DRWP profitability exceeding MS average Financial Services
Slide 45: Mobility & e-Transactional Services pay per use platform model
Mobility & e-Transactional Services pay per use plaform model Build and run or a risk sharing approach Platform Contract cost - build Contract cost - run Profitability Clients A+B+C Clients A+B Client A B Volume Build phase Run phase • Limited revenue Revenue based on volumes A (pay as you go model)
Slide 46: Financial Services platform combination model
Financial Services platform combination model Platform A Consolidation on Platform A • volume A+B • volume A • total operating cost • total operating cost A = total operating cost A + 20% total operating cost B BUT investment of 1 to 2 times total operating cost B Platform B • volume B • Savings of
Slide 47: Continuous discipline on cash flow
Continuous discipline on cash flow 2017 2018 From 2019 onwards CAPEX Between 6% and 7% Circa 6% Between 5% and 6% of revenue of revenue of revenue CHANGE IN • Slight positive contribution from 2018 onwards, WORKING in particular alignment of acquired scope on Worldline best practice CAPITAL EXCEPTIO
Slide 48: Financing of acquisitions: confirmation of financial policy
Financing of acquisitions: Confirmation of financial policy Mid-term leverage target of 1.5x to 2.5x net debt/EBITDA Immediate available financing capacity Additional financing capacity from FCF and OMDA improvement over 2018-19 c.€1.5b c.€0.8b Worldline 2.5 (max 2.5 (max Immediate FCF over the 2018
Slide 49: All 2017-2019 objectives raised
All 2017-2019 objectives raised Revenue After 3.5% to 4% for 2017, Organic 5% to 7% for 2018 and 6% to 8% for 2019 Growth Above 22.5% in 2019 OMDA % (i.e. >+400bp margin improvement in 2019 vs 2016 (1) ) Free cash €230m to €245m in 2019 flow (1): 18.5% OMDA margin, 2016 Pro Forma accounts 49 Investo
Slide 50: Energizing commerce with advanced payment services
Energizing commerce with advanced payment services Vincent Roland, Managing Director for Merchant Services
Slide 51: Merchant Services
Merchant Services Energizing commerce with advanced payment services Investor Day – October 3rd 2017 – Bezons
Slide 52: Worldline's Merchant Services – Value Chain
Worldline’s Merchant Services – Value Chain Richest offering to meet Retailers’ and Bank Acquirers’ specific needs Acceptance Terminal Network Transaction Digital Retail Hardware Services Gateway (routing) Services Digital Terminals Certified Virtual POS Transaction Payment Services Terminal Accepta
Slide 53: Growing in a changing world
Growing in a changing world Several forces continue to drive changes in our Merchant Services markets Large Retailers going for X-Border Solutions Market Banks entries opening getting doors to easier Alliances Retailers Demand for want to omnichannel know their experiences customers 53 Investor Day
Slide 54: Worldline's Merchant Services
Worldline’s Merchant Services Reference partner for merchants through strong differentiators Products International go-to-market • Offer Largest portfolio of products and services • Lead in central European and Indian markets, to enable our merchants to grow their business growing direct and indirec
Slide 55: In an industry transforming at high speed
In an industry transforming at high speed Complexity creates business opportunities for Worldline Switch Clear New 3-party schemes Settle emerging Increasing demand Decrease of Acquiring Interchange Issuing Tokenization and online credit for funds collection Integration of accounting (ERP) & payment
Slide 56: Merchant Services' growth plan
Merchant Services’ growth plan 4 key tracks 56 Investor Day – October 3rd 2017 – Bezons
Slide 57: Organic growth in established geographies
Organic growth in established geographies Good balance of revenues and costs optimization strategies 57 Investor Day – October 3rd 2017 – Bezons
Slide 58: Selling more by automating the Customer Journey
Selling more by automating the Customer Journey Worldline significantly investing in new Boarding Tools • More sales leads • Higher sign-rate • Board-Activate faster • Merchant Self-Install 58 Investor Day – October 3rd 2017 – Bezons
Slide 59: Next Generation Acceptance Platform
Next Generation Acceptance Platform The first « Truly X-border & Omnichannel » Acceptance platform POS Omnichannel E-Commerce PCI P2PE Offline capabilities+ Omnichannel Multi-acquirers & Payment channels Payment Terminal “agnostic” customer interactions dynamic switching modalities Local payment Ana
Slide 60: Digital Retail services to upgrade the payment experience
Merchants want to increase consumer spending Digital Retail services to upgrade the payment experience Shopper Marketing Taxonomy Displays & In-Store Relationship Deals Social Media Search Thematic content Apps Advertising Marketing Platforms Off-Shelf Display/ Branded FSI/Circular Dir
Slide 61: Merchant Wallet as a service
Merchant Wallet as a service An “Uber Like” experience for any merchant • A one-touch payment Pay your services in the station • An enhanced shopper experience across all channels • Without any Pay your services compromise on the outside of the security level station Other Value added Services 61 In
Slide 62: Terminals Services for Merchants
Terminals Services for Merchants A Secure Digital “Point Of Interaction“ between merchant and consumer 62 Investor Day – October 3rd 2017 – Bezons
Slide 63: PSD2 - Account information and payment initiation services
PSD2 - Account information and payment initiation services Offering secured account-based payments Enabling merchants Secured payments Offering to accept credit transfer with no compromise value-added services as payment on user experience for end-users A payment guarantee for Merchants can enrich t
Slide 64: DRWP acquisition – A truly Global PSP
DRWP acquisition – A truly Global PSP To strengthen our omnichannel acceptance strategy Differentiators for Online Merchants Direct processing partners Card network capabilities • Single Scalable Solution • Flexible Processing Models • Local Market Knowledge ~100 additional local or bank-specific •
Slide 65: Accelerating our ambitions & creating more value
Accelerating our ambitions & creating more value Leveraging combined assets • Local customers base to cross-sell the DRWP solutions • Global customers base to cross-sell Worldline products • Tier1 and Tier2 multi-channel customer base to • Collecting and Remittance capabilities to enrich enrich curr
Slide 66: Investor Day – October 3 rd 2017 – Bezons
66 Investor Day – October 3rd 2017 – Bezons
Slide 67: India - A big & young country
India - A big & young country With a high rate of technology adoption Age distribution of population (2015) Internet Penetration Mobile Penetration India 29% 66% 6% India 2% India 8% 26% 79% China 17% 73% 10% China 9% China 30% 50% 93% Brazil 23% 69% 8% Brazil 21% Brazil 46% 59% 127% Russia 17% 70%
Slide 68: Worldline: Largest Acquiring Processor in India
Worldline: Largest Acquiring Processor in India Acquiring • Partner to 13 of 16 public sector acquiring banks in India • Partner to 11 of 17 private banks Issuance • Processor for 12 banks in India including private, public sector and co- operative banks; issuance processor for partners in the rest
Slide 69: Changes in payments industry going forward
Changes in payments industry going forward Industry in consolidation phase – muted growth after spurt Demonetization ● Notification on 8th November 2016, notes representing 86% of the CC/DC monthly txns at POS (mn) currency in circulation demonetized ● Electronic payments saw an immediate and sustai
Slide 70: Priorities for India
Priorities for India 70 Investor Day – October 3rd 2017 – Bezons
Slide 71: MRL POSNet / Target Snapshot
MRL POSNet / Target Snapshot ● Founded in 2008, HQed in Chennai in India ● MRL Posnet is a Merchant services and Acquiring PaaS Solution provider ● Proprietary next-gen low-cost terminal management platform offered via various bundles 1. “Merchant services” = End-to-end acquiring services for mercha
Slide 72: MRL POSNet / Strategic Rationale
MRL POSNet / Strategic Rationale 72 Investor Day – October 3rd 2017 – Bezons
Slide 73: Build Go-To-Market Alliances with banks
Build “Go-To-Market Alliances” with banks Growing demand to join forces in products, innovation and sales 73 Investor Day – October 3rd 2017 – Bezons
Slide 74: Bank alliances to create value for partners
Bank alliances to create value for partners Concrete examples Referral White- Commercial distribution labeling alliance/JV Resells under bank name. Resells under bank name. Resells Worldline terminals Focus on pricing Focus on joint sales forces and acquiring services and simplifying offer and innov
Slide 75: Key points
Key points A much stronger Merchant Numerous growth levers Services business for the next three years • + c.€100m revenue acquired since • Much better exposure to higher 2016 (Paysquare, KB, DRWP, MRL growth countries for MS: Germany, Posnet) CEE, India • New developed and acquired assets • Revenue
Slide 76: Michael Steinbach
Michael Steinbach Managing Director ae Aes aaa equensWorldline é 4 worldline @@@e@e@@ anatos company e-payment services
Slide 77: Financial Services
Financial Services Connecting payers and payees via any type of electronic transaction * 2016 pro forma accounts Investor Day – October 3rd 2017 – Bezons
Slide 78: Key points
Key points Fundamental payment market changes create new outsourcing opportunities Financial Services uniquely positioned to grow in Europe and beyond Strong revenue and profit growth: towards 30% OMDA in coming Ahead of plan in building the largest and years most efficient industrial processor Grea
Slide 79: Market changes
Market changes Key industry drivers result in multiple business opportunities for outsourcing and licensing
Slide 80: Fundamental change in payments market
Fundamental change in payments market Shifting from mature local to competitive international markets ● Continuous launch of new payment experiences for consumers ● Standardization of underlying processing infrastructures ● Digital transformation from regional to global payment processing markets 80
Slide 81: New outsourcing opportunities emerging
New outsourcing opportunities emerging Driven by pressure at financial institutions to reduce cost and capex ● Non-differentiating payment infrastructures “Working with a single provider of banks still require substantial cost and that covers the entire payments capex value chain enables us to reduc
Slide 82: Uniquely positioned to grow
Uniquely positioned to grow Our scale, scope, cost structure and geographic reach give us a strong competitive position
Slide 83: We are in the proximity of our key clients
We are in the proximity of our key clients Strong relationships with many tier-1 banks, often spanning decades of service 83 Investor Day – October 3rd 2017 – Bezons
Slide 84: The biggest payments processor in Europe
The biggest payments processor in Europe Leveraging its scale to create a superior cost structure 84 Investor Day – October 3rd 2017 – Bezons
Slide 85: We have a complete service portfolio
We have a complete service portfolio Full value chain coverage for cards, account payments and digital banking Equens Merger adds Account Payments to core Good complementarity Examples: • Instant Payments contracts with 3 major banks (NL): Worldline’s iDEAL processing for these banks gave us a USP •
Slide 86: We support various deployment models
We support various deployment models Fit to all client sourcing strategies ranging from software licensing to BPO Intellectual Property Processing and storage in Use our application expertise Full use of payment in payments solutions payment certified data centers in client environment experts and k
Slide 87: We are shaping the payments ecosystem
We are shaping the payments ecosystem Merger with Equens boosted relations to payments bodies Influential participant shaping the payment ecosystem on Regulators and oversight (non exhaustive) local and global level, such as • ECB and EPC work groups (e.g. ERPB, TIPS) • Standardization bodies (e.g.
Slide 88: Industrial plan
Industrial plan Building the leading and most innovative payment processor in Europe (and beyond)
Slide 89: Vision behind our industrial plan
Vision behind our industrial plan: Building the leading and most innovative payment processor in Europe Key goals of industrial plan… …good progress made Enhance profitability and Synergy plan equensWorldline competitiveness progressing well Gain scale in core processing Several (confidential) outso
Slide 90: Synergy achievement is progressing well
Synergy achievement is progressing well 55% of 2018 synergy target to be realized by the end of 2017 ● Execution of synergies progressing faster than originally planned ● Out of total synergy target of €45m (end 2018) already 55% to be realized by end 2017 ● Host infrastructure for cards processing
Slide 91: Baltic acquisition perfectly fits in industrial plan
Baltic acquisition perfectly fits in industrial plan Expansion to Baltics combined with deeper relations to Nordic banks Nordic expansion strategy boosted by FD Baltics acquisition Expanding … while deepening … and contributing our geographic current relations to our financial presence with Nordic b
Slide 92: Market solutions
Market solutions Shaping and creating the platform economy of banking and payments Alessandro Baroni, equensWorldline Chief Market Officer
Slide 93: Unique positioning in pan-European processing
Unique positioning in pan-European processing Allowing Worldline FS to support banks capturing new market opportunities Shaping and creating the platform economy of banking and payments 93 Investor Day – October 3rd 2017 – Bezons
Slide 94: PSD2 is, in essence, about innovation
Other Open Customer data Banks PSD2 is, in essence, Bank Account about innovation Account CAPS Automation Services (AISP) Opportunity to give the bank account a Payment Services (PISP) whole new central Bank apps position in future FinTech services Partnerships Class-A User Experiences PSD2: Payment
Slide 95: Expert partner in the new financial landscape
Expert partner in the new financial landscape Allowing banks and third-party providers to reap the benefits Strong portfolio of services covering the whole value …and sales activities chain (banks, merchants, FinTechs, etc.)… well underway XS2A Bank Services Trusted Authentication 100 client engag
Slide 96: We believe instant payments are going to revolutionize the way Europeans pay
We believe instant payments are going to revolutionize the way Europeans pay Challenging incumbent payment means 96 Investor Day – October 3rd 2017 – Bezons
Slide 97: We offer a seamless transition
We offer a seamless transition Instant payments services integrated in our mass payments platforms Our key differentiators allow for a seamless transition from batch to instant Resulting from earlier started strategic program Payments 2.0 Experience in 24/7 high-performance infrastructure (cards
Slide 98: Infrastructure is in place, testing in progress
Infrastructure is in place, testing in progress Three major Dutch banks selected equensWorldline as their provider “Instant Payments are the future in payments and ING wants to offer a superior solution to its customers. We selected equensWorldline because of their positive track record and flexibil
Slide 99: Accelerating demand for digital services
Accelerating demand for digital services Identity Identity Digital services depend Enrollment Proofing on strong seamless authentication and Authentication Digital Identity cybersecurity Process Provider Growth further fuelled by various legislations and regulations Need for Cyber digital Regulation
Slide 100: Partner in the growing digital identity market
Partner in the growing digital identity market Liberating parties from the complexity of the e-identification process A suite of key e-identity solutions fulfilling …and a good foundation the need for assurance… for commercial success e-Identity ● Not starting from scratch: already available service
Slide 101: From Good to Great
From Good to Great What makes us good? Market benefits • Leading payment processor • Complete and competitive service portfolio Cost efficient services What makes us great? • Creating differentiating solutions by combining our existing with new and innovative services Fast time to • Example: trusted
Slide 102: In summary
In summary worldline @@@@ anatos company e-payment services
Slide 103: Key points
Key points Fundamental payment market changes create new outsourcing opportunities Financial Services uniquely positioned to grow in Europe and beyond Strong revenue and profit growth: towards 30% OMDA in coming Ahead of plan in building the largest and years most efficient industrial processor Grea
Slide 104: Olivier Stuckens
Olivier Stuckens Managing Director for Mobility. & e-Transactional Services worldline @@@e@e@@ anatos company e-payment services
Slide 105: Mobility & e-Transactional Services
Mobility & e-Transactional Services Bringing payment and regulation expertise to new markets Investor Day – October 3rd 2017 – Bezons
Slide 106: Bringing payment and regulation expertise to new markets
Bringing payment and regulation expertise to new markets 106 Investor Day – October 3rd 2017 – Bezons
Slide 107: Focus 1: Trusted Digitization for regulated sectors
Focus 1: Trusted Digitization for regulated sectors Highly regulated markets embracing digital transformation 107 Investor Day – October 3rd 2017 – Bezons
Slide 108: Focus 1: Trusted Digitization – growth plan
Focus 1: Trusted Digitization for regulated sectors Beyond payment authentication Worldline Trusted Digitization 2017-2019 growth plan Leverage our expertise in critical systems to gain new projects (e.g. SAMU) Expand existing offers to new geographies (e.g. Nordics) Target Financial Sector benefiti
Slide 109: Focus 1: eIDAS regulatory factor
Focus 1: Trusted Digitization for regulated sectors eIDAS regulatory factor eiDAS aim: creating an internal market for regulated electronic identification, authentication and trust services in the EU. Worldline • To become Trust Service Provider at the European level, • Ideally positioned to capture
Slide 110: Internet of Payment Things supporting Digital Transformation
Internet of Payment Things supporting Digital Transformation Niels De Schutter, Director of Business Division Connected Living & Mobility 110 Investor Day – October 3rd 2017 – Bezons
Slide 111: Focus 2: Internet of Payment Things
Focus 2: Internet of Payment Things supporting Digital Transformation Extensive business experience and vertical expertise in IoT: Large European OEM 111 Investor Day – October 3rd 2017 – Bezons
Slide 112: Worldline In-Vehicle Payment
Focus 2: Internet of Payment Things supporting Digital Transformation: Worldline In-Vehicle Payment 1st IVP in 2012 Over 1M connected cars Award winning Pay@pump solution In 2030, 30% of automotive revenues will come from services - McKinsey - 112 Investor Day – October 3rd 2017 – Bezons
Slide 113: Focus 2: 2017-2019 growth plan for IoT
Focus 2: Internet of Payment Things supporting Digital Worldline 2017-2019 growth plan to capture IoT market opportunities BUSINESS REINVENTION Evolution towards new CUSTOMER centric, SERVICE oriented business models (e.g. pay-per-use,pay-how-you-drive) 70% Industrial IoT market will grow at a CAGR
Slide 114: Digital Ticketing
Digital Ticketing James Bain, Director of Business Division e-ticketing 114 Investor Day – October 3rd 2017 – Bezons
Slide 115: Focus 3: Digital Ticketing
Focus 3: Digital Ticketing Key provider to Transport companies for: • Ticketing, • e-commerce, • revenue settlement • open payment solutions Worldline payment backbone and transportation regulation expertise provides market differentiator • +40 years Transport Market experience • +€16bn of travel ti
Slide 116: Focus 3: The Digital Convergence in eTicketing
Focus 3: Digital Ticketing The Digital Convergence in eTicketing Digital Ticketing market to grow at a CAGR of 19.7% during the forecast period 2017–2023 to aggregate $14.19b by 2023 Infoholic Research Major market trends • Digital Convergence of ticketing and payments. • Combination of ticketing an
Slide 117: Focus 3: Digital Ticketing 2017-2019 growth plan
Focus 3: Digital Ticketing 2017-2019 growth plan 117 Investor Day – October 3rd 2017 – Bezons
Slide 118: Profitability
Profitability M&TS is targeting mid-teens OMDA%, improving over the period 118 Investor Day – October 3rd 2017 – Bezons
Slide 119: Key points
Key points Innovate on use cases and technologies core to the convergence of the historical payment markets and selected highly regulated sectors Strong momentum of business fundamentals on our 3 main focuses Leverage further global footprint to pursue international roll-out Take advantage of the co
Slide 120: Nicolas Kozakiewicz
Nicolas Kozakiewicz Head of Research & Development and Innovation worldline @@@e@e@@ anatos company e-payment services
Slide 121: Innovating @Worldline
Innovating @Worldline 121 Investor Day – October 3rd 2017 – Bezons
Slide 122: Focus R&D
Focus R&D 3 axis of focus 122 Investor Day – October 3rd 2017 – Bezons
Slide 123: R&D Master Tracks
R&D Master Tracks 123 Investor Day – October 3rd 2017 – Bezons
Slide 124: Leveraging industrial and university partnerships
Leveraging industrial and university partnerships 124 Investor Day – October 3rd 2017 – Bezons
Slide 125: Artificial Intelligence
Artificial Intelligence 125 Investor Day – October 3rd 2017 – Bezons
Slide 126: From Perception to Decision
From Perception to Decision Deep learning, the magic tool! 126 Investor Day – October 3rd 2017 – Bezons
Slide 127: Let's Zoom on Authentication
Let’s Zoom on Authentication
Slide 128: Biometrics authentication
Biometrics authentication Definition: The automatic identification or verification of living individuals by using their physiological and behavioral characteristics Classification Innovation Physiologic Behavior Digital fingerprint, Iris, Voice, gait, swipe… Face Vein, DNA Mix biometrics (Multimodal
Slide 129: Let's Zoom on Blockchain
Let’s Zoom on Blockchain
Slide 130: Investor Day – October 3 rd 2017 – Bezons
130 Investor Day – October 3rd 2017 – Bezons
Slide 131: Word of CAUTION
Word of CAUTION 131 Investor Day – October 3rd 2017 – Bezons
Slide 132: Word of CAUTION
Word of CAUTION Words are not always what they seem… Bitcoin (and Blockchain) are prone to using words that are embedding more expectations than they actually mean: ● Ledgers do NOT always bear Account Numbers ● Miners do NOT always dig to unearth new Gold WARNING ● Consensus does NOT always mean a
Slide 133: One size never fitted all… BC abides to that rule
One size never fitted all… BC abides to that rule Flavors Offers 133 Investor Day – October 3rd 2017 – Bezons
Slide 134: Blockchain all over
Blockchain all over 134 Investor Day – October 3rd 2017 – Bezons
Slide 135: Wallet Payment
Wallet Payment
Slide 136: Transaction Processing Requirements
Transaction Processing Requirements ● Instant transactions ● Fiat currencies ● Scalability to 00’M users ● Currency exchange on the fly ● Rules and Limits ● KYC considerations ● Risk management Solution 136 Investor Day – October 3rd 2017 – Bezons
Slide 137: Snap Swap use-case
Snap Swap use-case 137 Investor Day – October 3rd 2017 – Bezons
Slide 138: eHealth Use Case
eHealth Use Case
Slide 139: Link authentication to real time information
Link authentication to real time information + + + 139 Investor Day – October 3rd 2017 – Bezons 139
Slide 140: Let's Zoom on User Experience
Let’s Zoom on User Experience
Slide 141: After the Retail Digital Transformation
After the Retail Digital Transformation 141 Investor Day – October 3rd 2017 – Bezons
Slide 142: Investor Day – October 3 rd 2017 – Bezons
142 Investor Day – October 3rd 2017 – Bezons
Slide 143: Identification, Authentication, Indoor location
Identification Account scan QR Code Authentication to enter Facial tracking Tracking & location Wifi Beacons of persons Indoor location Light curtain Image Mapping & location Sensors of items Infrared Depth Pressure Hand detection Mobile Picking detection Gesture app Product recognition RFID/NFC/BT
Slide 144: To conclude
To conclude 144 Investor Day – October 3rd 2017 – Bezons
Slide 145: Patrice Gry
Patrice Gry Head of Human Pm onices worldline @@@e@e@@ anatos company e-payment services
Slide 146: People excellence at the heart of everything we do
People excellence at the heart of everything we do 146 Investor Day – October 3rd 2017 – Bezons
Slide 147: 3 key differentiating HR assets supporting the company's expansion
3 key differentiating HR assets supporting the company’s expansion 147 Investor Day – October 3rd 2017 – Bezons
Slide 148: A strong power of attraction and sense of belonging
A strong power of attraction and sense of belonging 148 Investor Day – October 3rd 2017 – Bezons
Slide 149: A proven know-how in people's integration
A proven know-how in people’s integration 149 Investor Day – October 3rd 2017 – Bezons
Slide 150: The Worldline expert community
The Worldline expert community Allowing business development, innovation and design of differentiating solutions 150 Investor Day – October 3rd 2017 – Bezons
Slide 151: People excellence at the heart of everything we do
People excellence at the heart of everything we do 151 Investor Day – October 3rd 2017 – Bezons
Slide 152: Eric Heurtaux, Chief Financial Officer
Eric Heurtaux Chief Financial Officer worldline @@@e@e@@ anatos company e-payment services
Slide 153: TEAM program delivered 1 year ahead of plan
TEAM program delivered 1 year ahead of plan… 44 M€ captured in 2014, 155 M€ cost base improvement 56 M€ in 2015, committed over 4 years 2016 ending at 61 M€, for a 161 M€ total in only 3 years 155 M€ 161 M€ 67 M€ 61 M€ 44 M€ 56 M€ 45 M€ 42 M€ 2014 2015 2016-2017 2014 2015 2016 2017 153 Investor Day
Slide 154: Supported a deep dive transformation of the company
… and supported a deep dive transformation of the company with concrete achievements A convergent and more industrial operating model across the group A more flexible approach of internal and external resources A profitability and continuous cost base enhancement mindset is now part of the teams pri
Slide 155: Clear execution path to deliver sustainable profitable growth
Clear execution path to deliver sustainable profitable growth Secure profitable long-term growth Extracting full value from our industrial size and scope and driving cost efficiencies Vehicle of transformation of the Integration of new company business units Continuous (ie Equens) improvement and Pu
Slide 156: TEAM2: to drive additional €150m net OMDA in 2019
TEAM2: to drive additional €150m net OMDA in 2019 improving cost base while boosting operational excellence Continuous cost improvement Contract and product €60m profitability Efficiency Make or buy infrastructures Workforce management 3.0 €30m >€150m Robotics & automation Flexibility TEAM
Slide 157: TEAM2 First Time Right
TEAM2 First Time Right What is it? Not enough FTR sales when 90 everybody • Deliver for products to x does a market faster, in an correct % FTR field 85 increasingly competitive and force disrupted market with 10 x 95 improved quality FTR • Involve every part of the network 15 business: Product owne
Slide 158: TEAM2 First Time Right
TEAM2 First Time Right We don’t automate What are the levers? Because Test automation Because We don’t have time Framework 1. Agile Development 2. DevOps Approach 3. Test Automation 4. Tooling 5. Training & Accreditation 6. Governance 158 Investor Day – October 3rd 2017 – Bezons
Slide 159: TEAM2 Make or Buy
TEAM2 Make or Buy Taking the best from the best 159 Investor Day – October 3rd 2017 – Bezons
Slide 160: TEAM2 Make or Buy: Toward a Cloud-based infrastructure
TEAM2 Make or Buy Toward a Cloud-based infrastructure Virtual Managed Infrastructure Worldline Private Clouds Public Cloud Core Business Enabler • Payment-ready • Elasticity • Security • Hybrid • Resilient architectures 160 Investor Day – October 3rd 2017 – Bezons
Slide 161: TEAM2 Make or Buy
TEAM2 Make or Buy Benefiting from IT and service marketplace 161 Investor Day – October 3rd 2017 – Bezons
Slide 162: TEAM2 Objective Zero Incident
TEAM2 Objective Zero Incident in a nutshell 162 Investor Day – October 3rd 2017 – Bezons
Slide 163: TEAM2 Robotics & Automation
TEAM2 Robotics & Automation NON-INVASIVE LOW RISK FAST PAY BACK SCALABILITY On average, a RPA project TECHNOLOGY No BIG BANG. has a payback of less Right-sizing a RPA solution Small, agile steps is easy. Add or reduce RPA works with existing than 1 year. that allow control with a few clicks. systems
Slide 164: TEAM2 Robotics & Automation
TEAM2 Robotics & Automation Implementing Robotics and Automation securing Operational Excellence 2017 2018 2019 Proof of Concept Roll-out Full Industrialization 164 Investor Day – October 3rd 2017 – Bezons
Slide 165: er O j
er O j Sram
Slide 166: Corporate Social Responsibility within Worldline
Corporate Social Responsibility within Worldline Sébastien Mandron, CSR Officer
Slide 167: Worldline has performed a detailed CSR materiality analysis
Worldline has performed a detailed CSR materiality analysis Strategic and economic impact for the Group 167 Investor Day – October 3rd 2017 – Bezons
Slide 168: Worldline CSR commitment through five objectives
Worldline CSR commitment through five objectives Building clients’ trust with fully available & secured platforms Reinforcing value for clients through sustainable & innovative solutions 14 quantified, Being a responsible employer audited and by revealing our employees’ potential monitored objective
Slide 169: Worldline Contribution to the UN Sustainable Development Goals
Worldline Contribution to the United Nations Sustainable Development Goals EXTERNAL Products & services INTERNAL Programs & policies 169 Investor Day – October 3rd 2017 – Bezons
Slide 170: Worldline on the way to CSR excellence
Worldline on the way to CSR excellence The Worldline board of directors has set external performance 2015 2016 2017 conditions for LTIPs entirely based on audited CSR performances Comprehensive 91/100 76/100 TOP 10 1% AA Silver 83/100 64/100 C+ 3% Prime 58/100 Top 14 C- Investor Day – October 3rd 20
Slide 171: MSCI rated Worldline in the Top companies
MSCI rated Worldline in the Top companies 171 Investor Day – October 3rd 2017 – Bezons
Slide 172: Slide 172