Slide 1: 9M23 Results Presentation
This content is classified as Internal 9M23 Results Presentation November 9th, 2023
Slide 2: Disclaimer
This content is classified as Internal Disclaimer ▪ This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on
Slide 3: Key messages
This content is classified as Internal Key messages Continued y/y volume growth in all 9M23 results in line with plan, with Continued progress in creating geographies in 3Q23 continued margin expansion the European PayTech leader ▪ Mid-to-High single digit y/y volume growth ▪ Revenue growth at +7.0%
Slide 4: Continued volume growth in 3Q23 across all geographies despite tougher comparison
This content is classified as Internal Continued volume growth in 3Q23 across all geographies despite tougher Y/Y comparison and overall macro weakness Trend vs prev. Year High impact consumption Basic consumption Discretionary consumption Total Net of discontinued clients due to optimised risk prof
Slide 5: Merchant Solutions: key business update
This content is classified as Internal Merchant Solutions: key business update 9M23 TRX Value Key Business Highlights Examples of recent customer wins & upsells 62%1 ▪ Continued terminals installed base growth by ~100k2 y/y in 9M23 ▪ Advanced digital propositions accelerating frontbook performance i
Slide 6: Focus on 9M23 results
This content is classified as Internal Focus on 9M23 results
Slide 7: Revenue and EBITDA growth in line with plan, with continued EBITDA margin expansion
This content is classified as Internal Revenue and EBITDA growth in line with plan, with continued EBITDA margin expansion Net Net Revenues Revenues (€M) (€M) EBITDA (€M) EBITDA margin +7.0% Y/Y +8.8% Y/Y 55% 57% 50% 52% Gross of scheme fees Gross of scheme fees + 156 bps + 149 bps +7.0% 2,448.8 2,2
Slide 8: Merchant Solutions: continued revenue growth, impacted by y/y comparison in 3Q23
This content is classified as Internal Merchant Solutions: continued revenue growth, impacted by y/y comparison in 3Q23 due to a strong summer period last year Net Revenues (€M) Managed Transactions (#M) Key Highlights +8.6% Y/Y +10.8% Y/Y International +16.6% ▪ Sustained growth in value of 57%1 Gro
Slide 9: Issuing Solutions: continued revenue growth supported by volumes and new propositions
This content is classified as Internal Issuing Solutions: continued revenue growth supported by volumes and new propositions Net Revenues (€M) Managed Transactions (#M) Key Highlights 32%1 International Schemes +15.3% ▪ Continued revenue growth supported by volumes; 3Q23 performance +11.5% affected
Slide 10: Digital Banking Solutions: positive revenue performance in the quarter
This content is classified as Internal Digital Banking Solutions: positive revenue performance in the quarter sustained by volume growth and positive commercial performance Net Revenues (€M) Key Highlights ▪ 3Q23 y/y revenues growth sustained by volume growth and positive 11%1 commercial performance
Slide 11: Continued revenue growth across geographies in 3Q23
This content is classified as Internal Continued revenue growth across geographies in 3Q23 58%1 Italy 19%1 Nordics2 +7.3% Y/Y +9.5% Y/Y +6.1% Y/Y +6.0% Y/Y Gross of scheme fees Gross of scheme fees Gross of scheme fees Gross of scheme fees +7.8% 1,323.8 1,426.6 +5.2% +5.3% +5.6% 442.9 465.7 480.3 50
Slide 12: Solid cost performance thanks to operating leverage, cost control and synergies
This content is classified as Internal Solid cost performance thanks to operating leverage, cost control and synergies, partially offsetting inflationary pressure Total Costs (€M) Key Highlights Personnel Costs Operating Costs ▪ 9M23 increase y/y as planned due to volume, business growth and inflati
Slide 13: Net Financial Debt / EBITDA continued reduction, in line with plan
This content is classified as Internal Net Financial Debt / EBITDA continued reduction, in line with plan Net Financial Debt (€M) Key Highlights ▪ Upgrade to “Ba1” by Moody’s in August 2023, Sept 22 Dec 22 Mar 23 June 23 Sept 23 the 6th rating update since January 2022, the 2nd in 3Q23, reflecting o
Slide 14: Closing remarks
This content is classified as Internal Closing remarks
Slide 15: 2023 Guidance confirmed
This content is classified as Internal 2023 Guidance confirmed Net ▪ More than 7% y/y growth Revenues EBITDA ▪ More than 10% y/y growth Excess cash ▪ At least 600 €M2 generated1 Net ▪ ~2.9x EBITDA (~2.6x EBITDA incl. run-rate synergies) leverage3 Normalised ▪ More than 10% y/y growth EPS4 Note: (1)
Slide 16: Key messages
This content is classified as Internal Key messages Continued y/y volume growth in all 9M23 results in line with plan, with Continued progress in creating geographies in 3Q23 continued margin expansion the European PayTech leader ▪ Mid-to-High single digit y/y volume growth ▪ Revenue growth at +7.0%
Slide 17: Q&A
This content is classified as Internal Q&A
Slide 18: Annex
This content is classified as Internal Annex
Slide 19: Group normalised P&L at constant scope and FX
This content is classified as Internal Group normalised P&L at constant scope and FX Δ% vs. Δ% vs. 9M22 9M23 3Q22 3Q23 €M 9M22 3Q22 Merchant Solutions 1,285.1 1,390.7 +8.2% 477.5 504.3 +5.6% Issuing Solutions 738.3 789.3 +6.9% 261.0 272.8 +4.5% Digital Banking Solutions 265.2 268.7 +1.3% 91.5 94.6 +
Slide 20: Revenues gross of scheme fees, shifted to Opex
This content is classified as Internal Revenues gross of scheme fees, shifted to Opex For illustrative purpose only Δ% vs. Δ% vs. 9M23 3Q23 €M 9M22 3Q22 Merchant Solutions 1,781.5 +10.8% 660.8 +8.6% Issuing Solutions 817.7 +7.2% 282.9 +4.6% Digital Banking Solutions 268.7 +1.3% 94.6 +3.3% Operating
Slide 21: Well diversified revenue base both in terms of business and geography
This content is classified as Internal Well diversified revenue base both in terms of business and geography at scale, with exposure to fast growing European markets 9M23 Revenues breakdown 9M23 Costs breakdown by type By business By geography By type Merchant Solutions Installed based Italy Nordics
Slide 22: Debt maturities as at 3Q23
This content is classified as Internal Debt maturities as at 3Q23 Nexi Group Debt Maturity Schedule1 (€M) Senior Notes Term Loans 1,976 Convertible Notes 1,050 1,400 900 756 1,000 1,050 926 696 507 500 60 2023 2024 2025 2026 2027 2028 2029 Note: (1) Expressed at nominal value, excludes the other M/L
Slide 23: Sale of Nordic eID business
This content is classified as Internal Sale of Nordic eID business Already classified as asset held for sale Strategic rationale Key terms and next steps ▪ Progressing on portfolio rationalization with signing of Nets Key P&L Items 2023E Run-rate1 DBS disposal, classified as “asset held for sale” be
Slide 24: Investor Relations
This content is classified as Internal Investor Relations investor.relations@nexigroup.com Stefania Mantegazza stefania.mantegazza@nexigroup.com