Nexi S.p.a. · MIL:NEXI
Nexi — Nexi Capital — Q3 2018 Earnings Presentation
27 slides from Nexi's earnings presentation, November 2018
Slide 1: Nexi Capital S.p.A. Investor Presentation
Nexi Capital S.p.A. Investor Presentation Nexi Capital Notes November 2018
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. No representation and no liability: The information contained in this documentation has been supplied by Nexi Capital S.p.A. (the “Company”), its parent Nexi S.p.A. and its affiliates (together, the “Group”). The Group completed a
Slide 3: Today's Presenters
Today’s Presenters Bernardo Mingrone Chief Financial Officer Appointed CFO of Nexi in 2016 Prior roles include Group CFO of UniCredit (2015-2016) and Deputy GM in charge of Finance and Operations at BMPS (2012- 2015), preceded by a career in investment banking at Lehman Brothers and J.P. Morgan
Slide 4: Executive Summary
Executive Summary • On 1st July 2018 Mercury Group completed a corporate reorganisation to separate the digital payments and ancillary businesses (new “Nexi Group”) from the regulated banking operations, which were pooled into a BankCo (“DEPObank”) and spun-off to its shareholders. The Nexi Group co
Slide 5: Executive Summary
Executive Summary I. Corporate Structure II. Q3 2018 YTD Pro-Forma Key-Financials III. Q3 2018 YTD Pro-Forma Results by Business Unit IV. Selected Financial Information and Funding Update Appendix 5 5
Slide 6: I. Corporate Structure
I. Corporate Structure
Slide 7: Recap of 2018 YTD Key-Events
Recap of 2018 YTD Key-Events January Filing with Bank of Italy for corporate reorganization and spin-off of regulated banking activities April Acquisition of digital payments start-up Sparkling 18 (Closing) May Debt refinancing (€2.2bn SSNs/FRNs, followed by €0.4bn Private Notes issue in July) June
Slide 8: Post-Transactions Corporate Structure
Post-Transactions Corporate Structure Current Corporate Structure (as at July 2nd, 2018) Mercury A Capital Mercury B Capital Mercury ABC Capital Limited Limited Limited 33.3 % 33.3 % Mercury UK HoldCo 33.3 % Limited (UK) 93.2 % Nexi S.p.A. Revolving Credit Facility (€325m) Nexi Payments (98.8%) SSN
Slide 9: II. Q3 2018 YTD Pro-Forma Key-Financials
II. Q3 2018 YTD Pro-Forma Key-Financials
Slide 10: Q3 2018 YTD Performance
Q3 2018 YTD Performance Solid financial performance with growth in both Revenues and EBITDA Proforma Q3 17 YTD Proforma Q3 18 YTD Revenues1 (Y-o-Y) €697.5m 4.6% €729.3m Other Other Services Services Digital Digital 10% 10% Banking Banking 13% 12% 43% Breakdown of Revenues Solutions 42% Solutions (gr
Slide 11: 2015-Q3 18 LTM Revenues, EBITDA and Cash Conversion
2015-Q3 18 LTM Revenues, EBITDA and Cash Conversion LTM Operating Revenues (€m) LTM EBITDA (€m) Margin % 30.7% 36.3% 39.2% 41.7% 50.9% 943 975 872 812 514 370 407 317 249 1 1 2 2 1,3 2,3 2,4 2015 2016 2017 LTM Q3'18 20151,3 2016 2017 2,3 LTM Q3'18 LTM Q3'18 Adjusted LTM CapEx (€m)5 LTM Cash Conversi
Slide 12: LTM Pro-Forma Adjusted EBITDA and Net Profit
LTM Pro-Forma Adjusted EBITDA and Net Profit Bridge from LTM EBITDA to LTM Adjusted EBITDA and LTM Net Profit (Pro-Forma figures) LTM Pro-Forma EBITDA1 (€m) LTM Pro-Forma Net Profit1 (€m) 34 Mostly includes 35 transformation plan, 38 HR severance, and Nexi reorganisation and re-branding 117 Nexi Cap
Slide 13: Overview of EBITDA Adjustments
Overview of EBITDA Adjustments Dec’20171 Delivered Sep’2018 • Purchasing: Full effect of cost-cutting on production costs and on G&A based on initiatives launched in 2017 and additional cost savings initiatives already identified and launched in 2018 • HR: Full effect of restructuring initiative alr
Slide 14: III. Q3 2018 YTD Pro-Forma Results by Business Unit
III. Q3 2018 YTD Pro-Forma Results by Business Unit
Slide 15: BU Merchant Services & Solutions: Q3 2018 YTD Pro-Forma Results
BU Merchant Services & Solutions: Q3 2018 YTD Pro-Forma Results Managed Transactions (# m) Value of Managed Transactions (€ bn) Managed POS (# ‘000) 11.7% 6.6% 8.1% Merchant 2,347 172.3 183.7 1,449 Services & 2,101 1,340 Solutions Q3'17 YTD Q3'18 YTD Q3'17 YTD Q3'18 YTD Q3'17 Q3'18 Q3’18 YTD Total P
Slide 16: BU Cards & Digital Payments: Q3 2018 YTD Pro-Forma Results
BU Cards & Digital Payments: Q3 2018 YTD Pro-Forma Results Managed Transactions (# m) Value of Managed Transactions (€ bn) Managed Cards (# m) 9.8% 5.2% (3.9%) Cards & 1,563 1,716 43.6 42.0 Digital 136.5 143.7 Payments Q3'17 YTD Q3'18 YTD Q3'17 YTD Q3'18 YTD Q3'17 Q3'18 Q3 18 YTD Total Pro-Forma Rev
Slide 17: BU Digital Banking Solutions: Q3 2018 YTD Pro-Forma Results
BU Digital Banking Solutions: Q3 2018 YTD Pro-Forma Results Clearing Transactions (# m) E-banking Licenses (# ‘000) Managed ATMs (# ‘000) (10.5%) (11.7%) (0.8%) Digital 685 613 493 21.4 21.2 Banking 435 Solutions Q3'17 YTD Q3'18 YTD Q3'17 Q3'18 Q3'17 Q3'18 Q3 18 YTD Total Pro-Forma Revenues Pro-Form
Slide 18: BU Other Services: Q3 2018 YTD Pro-Forma Results
BU Other Services: Q3 2018 YTD Pro-Forma Results Q3 18 YTD Total Pro-Forma Revenues Pro-Forma Revenues (€m) LTM Pro-Forma Revenues (€m) (gross of consolidation items) 10% 6.6% 73 95 100 69 Q3'17 YTD Q3'18 YTD FY'17 Q3'18 YTD “Other Services” include Oasi Diagram’s AML and regulatory reporting serv
Slide 19: IV. Selected Financial Information and Funding Update
IV. Selected Financial Information and Funding Update
Slide 20: Selected Financial Information
Selected Financial Information (€m, unless otherwise stated) Dec’2017 LTM Sep’2018 1 Pro forma operating revenue 943 975 Pro forma normalised EBITDA1 370 407 1,2 Selected Pro forma normalized EBITDA margin 39.2% 41.7% P&L P ro forma Adjusted EBITDA 3 496 514 Information Pro forma Adjusted EBITDA mar
Slide 21: Funding Update – Settlement Lines
Funding Update – Settlement Lines Up to September 30 2018, more than EUR 6,222m receivables (€5,838m without recourse) have been factored to UniCredit on a daily basis. The committed factoring 3,000 € MLN lines have been covering in full the amount of receivables sold and outstanding from 2,500 ti
Slide 22: Appendix
Appendix
Slide 23: Pro-Forma KPI LTM and CAGRs
Pro-Forma KPI LTM and CAGRs1 CAGR (2015-LTM Q3 2018) Managed Transactions (# m/€ bn)2 Managed POS (# ‘000) €212bn €220bn €232bn €245bn 9.4% 6.7% Merchant 3,100 1,385 Services & 2,841 1,213 1,274 1,449 2,616 Solutions 2,423 2015 2016 2017 LTM Q3'18 2015 2016 2017 Q3'18 Managed Transactions (# m/€ bn)
Slide 24: Overview of Non-Recurring Items
Overview of Non-Recurring Items Non-recurring expenses/(income) largely due to restructuring, M&A and transformation plan- related initiatives Full-Year Figures (€m)1,2 Proforma Q3 YTD Figures (€m)1 Including: Including: - HR restructuring (€31.6m) Including: - Transformation (€25.8m) Including: - T
Slide 25: Nexi Group – Proforma Profit & Loss
Nexi Group – Proforma Profit & Loss1 (in € millions) Q3'2018 YTD Q3'2017 YTD Change % Change Operating revenue 729.3 697.5 31.7 4.6% Administrative expenses: (415.6) (416.3) 0.7 (0.2%) thereof: Payroll and related costs (128.1) (130.0) 1.9 (1.5%) thereof: Other administrative expenses (287.5) (286.3
Slide 26: Thank You for Your Attention
Thank You for Your Attention Investor Relations: investor.relations@nexi.it
Slide 27: nexi
nexi every day, every pay