Worldline Sa · EURONEXT:WLN
Worldline Sa — FY2016 Earnings Presentation
33 slides from Worldline Sa's earnings presentation, Feb 21, 2017
Slide 1: 2016 annual results
2016 annual results Tuesday, February 21 2017
Slide 2: Disclaimer
Disclaimer ● This document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. Actual events or results may differ from those described in this document due to a number of risks and uncertainties tha
Slide 3: Highlights of annual results
sighlights hi annual results Gilles Grapinet, Chief Executive Officer
Slide 4: A very robust year 2016
A very robust year 2016 Strong start of the All 2016 objectives met Increased visibility integration and of the positioning Worldline at the in the upper end of the synergy plans related to epicenter of the payment guidance brackets the Equens, Paysquare and industry consolidation KB Smartpay 4 | CO
Slide 5: Solid revenue growth in 2016 in Merchant Services & Terminals and Financial Services
Solid revenue growth in 2016 in Merchant Services & Terminals and Financial Services • Revenue: € 1,309 +3.5% organic growth • Excluding Radar and Vosa end of contract effects, growth of the underlying business well above 8% as expected. Growth • Very satisfying operational performance in Commercial
Slide 6: Profitability improvement delivered and exceeding the plan for the year
Profitability improvement delivered and exceeding the plan for the year • OMDA: € 258.7 million, 19.8% of revenue +90 bp Vs 2015, exceeding the target for the year of +80 bp • First delivery of cost synergies within equensWorldline in Q4 Transformation • Significant savings from the TEAM transformat
Slide 7: A very robust free cash flow in 2016
A very robust free cash flow in 2016 while absorbing significant transaction and integration costs • Strong free cash flow generation: € 140.4 million +9.3% Vs 2015 • Solid FCF/OMDA conversion reaching 54%, despite significant transaction and integration costs of c.€10 Exceeding FCF million generati
Slide 8: With PaySquare and KB, Worldline reinforces its Commercial Acquiring positions in Europe
With PaySquare and KB, Worldline reinforces its Commercial Acquiring positions in Europe Acquisition of PaySquare: reinforced footprint in the Netherlands and direct access to German merchants Partnership with Komerční banka in the Czech Republic to provide merchant acquiring Solid Commercial Acquir
Slide 9: Combining forces with equens, equensWorldline is the leading financial processing company in Europe
Combining forces with equens, equensWorldline is the leading financial processing company in Europe Worldline joined forces with Equens, to strengthen its leadership in pan-European payment services. Creation of the largest pan-European financial processor. Unique portfolio covering the entire Confi
Slide 10: Technology & innovation leadership recognized by the Analysts
Technology & innovation leadership recognized by the Analysts Global Commerce White-label mobile Retail Banking MERCHANT Payment Provider wallet solutions – PAYMENTS delivery Payment ECOSYSTEM category 2017 Wide portfolio of IP owned assets sustained by a strong innovation and investment roadmap | C
Slide 11: Financial Performance
Financial Performance 2016 annual results Eric Heurtaux, Chief Financial Officer
Slide 12: Constant scope and exchange rate figures reconciliation
Constant scope and exchange rate figures reconciliation FY 2015 FY 2016 Exchange Scope FY 2016 In € million FY 2015 rates FY 2015* Var. effects actuals effects Revenue 1,227.0 76.1 -37.9 1,265.2 1,309.2 +3.5% OMDA 235.3 10.7 -7.3 238.7 258.7 +8.4% % OMDA 19.2% 18.9% 19.8% +90bp * At constant scope a
Slide 13: 2016 Financial performance overview
2016 Financial performance overview Revenue OMDA OMDA % In € million FY 2016 FY 2015* % Growth FY 2016 FY 2015* FY 2016 FY 2015* Merchant Services & Terminals 439.6 409.5 +7.3% 99.3 78.6 22.6% 19.2% Financial Services 500.0 476.8 +4.9% 130.6 116.8 26.1% 24.5% Mobility & e-Transactional Services 369.
Slide 14: Merchant Services & Terminals
Merchant Services & Terminals Merchant Services & Terminals In € million FY 2016 FY 2015* % Growth Revenue 439.6 409.5 +7.3% OMDA 99.3 78.6 % OMDA 22.6% 19.2% +3.4 pt * At constant scope and 2016 average exchange rates Reported revenue : +7.3% OMDA: 22.6% • Double digit growth in Commercial Acquirin
Slide 15: Financial Services
Financial Services Financial Services In € million FY 2016 FY 2015* % Growth Revenue 500.0 476.8 +4.9% OMDA 130.6 116.8 % OMDA 26.1% 24.5% +1.6 pt * At constant scope and 2016 average exchange rates Reported revenue : +4.9% OMDA: 26.1% • Increased run revenue mainly in Europe and in India in Acquiri
Slide 16: Mobility & e-Transactional Services
Mobility & e-Transactional Services Mobility & e-Transactional Services In € million FY 2016 FY 2015* % Growth Revenue 369.6 378.9 -2.5% OMDA 51.5 61.8 % OMDA 13.9% 16.3% -2.4 pt * At constant scope and 2016 average exchange rates Reported revenue: -2.5% OMDA: 13.9% Underlying growth excl. Vosa and
Slide 17: Income statement
Income statement Key Observations In € million 2016 2015* • Staff reorganization reflects the OMDA 258.7 235.3 adaptation of the organization. Operating Margin 196.6 177.9 • Rationalization expenses include Staff reorganization -4.5 -6.6 costs relating to the TEAM program. Rationalization and associ
Slide 18: Cash flow statement
Cash flow statement Key Observations (In € million) 2016 2015 Operating Margin before Depreciation and Amortization (OMDA) 258.7 235.3 • Free cash flow increased by +9.3% in 2016 (FCF/OMDA Capital expenditures (85.3) (67.0) conversion of 54.3%) Change in working capital requirement 37.3 11.9 Cash fr
Slide 19: Simplified balance sheet
Simplified balance sheet Key Observations December December In EUR million 31, 2016 31, 2015 • Increase in Goodwill reflects the acquisition of Goodwill 766.4 380.1 - Equens and Paysquare for €365.6m Intangible assets 312.1 123.7 - KB Smartpay for € 21.8m Tangible assets 103.8 66.2 Net non-current f
Slide 20: Commercial & operational performance
commercial & operational erformance 016 annual results Marc-Henri Desportes, General Manager
Slide 21: Fast increase in payment volumes on all platforms in 2016
Fast increase in payment volumes on all platforms in 2016 +13%* Number +5%* of issuing Number transactions > +8%* of non-card Number of transactions +14% ** commercial number of online acquiring transactions transaction acquired 7 million ** Wallet transactions > +40%* c. X 5 > 200,000* POS managed
Slide 22: Strategic priorities for our GBLs
Strategic priorities for our GBLs FOCUS ON PRODUCTS 1. Deliver the industrial and commercial synergies with equensWorldline • Core Processing suite (WLPay) 2. Take further advantage • Instant Payment (Equens) of our European leadership • Trusted authenticiation • OLW 3. Leverage PSD2 momentum 1. Lev
Slide 23: equensWorldline synergy plan engaged and delivered in 2016
equensWorldline synergy plan engaged and delivered in 2016 IMPACT OF SYNERGIES COMMENTS Reminder : 2018 targets • Thanks to Day 1 readiness of organisation OMDA run-rate impact in €m and synergy tracks, plan was over-delivered in 2016 • higher synergies 50 • lower implementation costs c.€6m c.€40m 4
Slide 24: Opportunities from PSD2/Instant payments will benefit Worldline's business
Opportunities from PSD2/ Instant payments will benefit Worldline’s business REGULATORY MARKET WORLDLINE CHANGE IMPACT CAPABILITIES Reactive: Banks need to create short term Digital banking Banks must allow access interface to legacy as a service to Payment account ●●● Instant Payment to registered T
Slide 25: Demonetization in India bringing a new growth momentum
Demonetization in India bringing a new growth momentum On 8th November 2016, Prime Minister Narendra Modi announced that all Rs. 500 (EUR 6.7) and Rs. 1000 (EUR 13.3) notes would be invalid past midnight MEDIUM SHORT TERM TERM Development Massive Terminal Roll-out of POS installed INDIA IS A from 1
Slide 26: The new Worldline
The new Worldline • Reinforced management team – 2 new industry-recognized senior managers for • Merchant Services & Terminals Vincent Roland Michael • Financial Services Managing Director Steinbach Merchant Services equensWorldline CEO • Successful and fast start of the integration and synergy plan
Slide 27: Conclusion
conclusion 2016 annual results Gilles Grapinet, Chief Executive Officer
Slide 28: 2016 Key take aways
2016 Key take aways Very robust 2016 numbers, in the upper end of all the guidance brackets Strong underlying growth performance of c.8% for the full year, with Merchant Services above +7%, Financial Services at c.+5% Successful and fast start of the integration and synergy plan of equensWorldline,
Slide 29: A new momentum for a transformed Worldline in 2017 and beyond
A new momentum for a transformed Worldline in 2017 and beyond, securing the 2019 ambitions 29 | CONFIDENTIAL © Worldline
Slide 30: 2017 full year guidance
2017 full year guidance REVENUE c.+3.5% organic growth for the full year, with H2 2017 between +5% to 7% OMDA Between 20.0% and 20.5% FREE CASH Between € 160 million and € 170 million, including c.€20 million of synergy implementation costs FLOW 30 | CONFIDENTIAL © Worldline
Slide 31: | CONFIDENTIAL © Worldline
31 | CONFIDENTIAL © Worldline
Slide 32: Q&A session
O&A session 2016 annual results
Slide 33: | CONFIDENTIAL © Worldline
For more information, please contact: David Pierre-Kahn, Head of Investor Relations T+33134349066 | M+336 28514596 david pierre-kahn@worldline.com worldline @@@@@@ an atos company e-payment services