Worldline Sa · EURONEXT:WLN
Worldline Sa — Worldline Sa Ord — Q4 2024 Earnings Presentation
34 slides from Worldline Sa's earnings presentation, Feb 26, 2025
Slide 1: H1 2024 Results
H1 2024 Results August 1st, 2024 H1 2024 results – 01-08-2024
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 r
Slide 3: H1'24 highlights
H1’24 highlights Gilles Grapinet Group CEO H1 2024 results – 01-08-2024
Slide 4: H1 2024 highlights
H1 2024 highlights H1’24 €2,289m revenues €514m adj. EBITDA €82m free cash flow performance +2.1% organic growth 22.5% adj. EBITDA margin 16.0% of adj. EBITDA Of which 6.2% MS underlying growth with or -67 bps vs H1’23 including €42m of non-recurring Power24 costs softer trend along Q2 due to macro*
Slide 5: Focus on Power24 delivery and cost measures protection
Focus on Power24 delivery and cost measures protection Increase 2025 run rate cash costs savings leading to a structurally improved operating leverage Key streams cash costs savings Focus on people equation: execution and ambition Product Headcount split transformation • Social processes completed i
Slide 6: Focus on growth engines ramp-up
Focus on growth engines ramp-up Growth accelerators in-motion New countries Unconditional anti-trust approval obtained Strategic organic partnership with Worldline and Launch of the new brand distribution Exclusive acceptance and acquiring capabilities networks Leadership team in place c.€6bn added
Slide 7: FY'24 guidance adapted while maintaining 2024 FCF
FY’24 guidance adapted while maintaining 2024 FCF Assumptions reflecting volatile Q2 and H2 macro and European domestic consumption uncertainties Uncertain environment Positive dynamic in MSV development all along Q1’24 Slowdown of the MSV growth during Q2’24 with a low point in June on consumer spe
Slide 8: Mid-term ambition intact supported by our strategic initiatives
Mid-term ambition intact supported by our strategic initiatives As early as 2025 Continued reduction of Full benefits New growth restructuring and of Power 24 initiatives integration cash costs Mid-term ambition Mid to high-single digit organic growth Continuous Adjusted EBITDA improvement FCF conve
Slide 9: Business and Commercial Dynamics
Business and Commercial Dynamics Marc-Henri Desportes Deputy CEO H1 2024 results | 01-08-2024 | © Worldline | 9
Slide 10: H1'24 acquiring MSV development
H1’24 acquiring MSV development Performance highlighting the softness of Q2 dynamic along the quarter due to the current macro environment c.€230bn MSV in H1’24 ACQUIRING MSV (€M)* (acquiring instore and online) c.+4% MSV growth vs H1’23 (of which c.+3% in Q2’24) Deceleration in June with MSV growth
Slide 11: MS acquiring merchants' base development
MS acquiring merchants’ base development c.30k new merchants in H1’24 reaching 1.43 million and to accelerate in H2’24 with CCB merchants' migration 1.43m Merchants* as of June 24 Merchants’ base highlights +c.6k/month net adds in average since Dec-2021 +c.30k net merchants in H1’24 >c.165k net merc
Slide 12: MS commercial activity
MS commercial activity Important wins relying on product differentiators and dedicated offerings Focus EV Charging vertical Key success factors & positioning Key wins since 2022 Dedicated verticalized offering with a full-service solution including payment acceptance and acquiring at European scale
Slide 13: FS and MeTS commercial activity
FS and MeTS commercial activity Leveraging Worldline core products know-how FINANCIAL SERVICES MOBILITY & E-TRANSACTIONAL SERVICES Cloud-based Instant Payment processing Secured collection services First client on Worldline’s cloud-based instant payments solution in Luxembourg leveraging the Secured
Slide 14: H1 2024 Financial performance
H1 2024 Financial performance Grégory Lambertie Group CFO H1 2024 results | 01-08-2024 | © Worldline | 14
Slide 15: H1 2024 key financial highlights
H1 2024 key financial highlights €2,289m revenues €514m adj. EBITDA €82m free cash-flow +2.1% organic growth 22.5% adj. EBITDA margin (-67bps) 16.0% of adj. EBITDA +1.4% organic growth on NNR basis* 27.7% on NNR basis (-63bps) including €43m of non-recurring strategic costs €211m net income* €0.75 d
Slide 16: Finance – H1 2024 key finance focus actions
Finance – H1 2024 key finance focus actions Cost management priority and initial benefits of Power24 People cost containment Capex prioritization Decrease of RRI exc. Power 24 : Subcontractor costs : People costs (41)% (9)% +€36m -€41m €94m €1.01bn €1.00bn €176m (4.2% of revs) (7.8% of revs) €160m (
Slide 17: H1 2024 financial performance
H1 2024 financial performance Global business lines revenue overview Q2’24 organic performance Q2 2024 Group Revenue excl. merchants' termination Organic growth Organic growth (in €m) Q2 2024 Q2 2023* +5.9% (Published Revenue) (NNR) Merchant Services Merchant services 871 849 +2.6% +2.4% organic gro
Slide 18: H1 2024 revenue building blocks
H1 2024 revenue building blocks Focus on H1 2024 dynamics +2.1% organic growth +2.1% organic growth (+4.2% underlying growth**) +2.6% -1.5% +1.3% €2,289m +3.9% -1.4% +0.7% Merchant Services up 3.2% (underlying €2,242m growth of 6.2%**) reflecting a robust activity but affected by a growth decelerati
Slide 19: H1 2024 financial performance
H1 2024 financial performance Global business lines Adjusted EBITDA overview H1 2024 Group Adjusted EBITDA H1’24 margin vs. H1’23 margin H1 H1 H1’24 margin vs. H1’23 margin (in €m) (on Published (on Published 2024 2023* (on NNR) (on NNR) Revenue) Revenue) Merchant services 386 400 23.3% (161) Bps 31
Slide 20: H1 2024 Adjusted EBITDA building blocks
H1 2024 Adjusted EBITDA building blocks Focus on 2024 H1 dynamics Broadly Stable in absolute value (67) bps in margin rate €514m Adjusted EBITDA stable vs. H1 2023 €518m (14) +2 €514m Merchant Services adjusted EBITDA +1 +6 impacted by the macro effect on transactions and online contract termination
Slide 21: Income statement
Income statement In €m H1’24 H1’23 Highlights Adjusted EBITDA 514 518 ▪ Operating income mainly impacted by: Integration and rationalization costs (excl. Power24) (58) (93) o €174m Power24 costs while non-P24 integration and rationalization costs are down c.40% to €57m Power24 (174) - o €120m Custom
Slide 22: Free cash flow
Free cash flow In €m H1’24 H1’23 Highlights Adjusted EBITDA 514 518 ▪ €514m contribution on adjusted EBITDA Lease obligations (60) (47) ▪ Capex representing €160m in line with the expected Working capital change (42) 77 full-year trajectory Capex (160) (176) ▪ Working capital change Integration & Re
Slide 23: Net debt evolution
Net debt evolution In €m H1’24 H1’23 Highlights ▪ €82m positive impact from free cash-flow (Net debt) / cash as of January 1st (1,811) (2,202) ▪ Acquisitions net of disposal included mainly a Free Cash-flow 82 232 deferred payment linked to TSS Acquisition net of disposals 19 143 ▪ €21m positive imp
Slide 24: Key take-aways
Key take-aways Gilles Grapinet Group CEO H1 2024 results | 01-08-2024 | © Worldline | 24
Slide 25: Strong focus on execution and strategic actions
Strong focus on execution and strategic actions Position Worldline to leverage its next development phase after a year 2024 of transition Leverage the Group transformation Priority with Power24 to organic growth Optimization Focus of growth levers on products and innovation Adjustment Acceleration o
Slide 26: Q&A
Q&A H1 2024 results | 01-08-2024 | © Worldline | 26
Slide 27: Appendices
Appendices H1 2024 results | 01-08-2024 | © Worldline | 27
Slide 28: Merchant Services
Merchant Services 2024 H1 highlights €1,658m €386m H1 revenues H1 Adjusted EBITDA +3.2% organic growth 23.3% Adjusted EBITDA margin H1’24 REVENUE: €1,658M WITH A 3.2% ORGANIC GROWTH H1’24 Adjusted EBITDA: €386M WITH A 23.3% MARGIN Despite a resilient activity, particularly in Italy or in some vertic
Slide 29: Financial Services
Financial Services 2024 H1 highlights €457m €126m H1 revenues H1 Adjusted EBITDA -1.5% organic growth 27.7% Adjusted EBITDA margin H1’24 REVENUE: €457M WITH A -1.5% ORGANIC GROWTH H1’24 Adjusted EBITDA : €126M WITH A 27.7% MARGIN Performance reflected the re-insourcing impact earlier than budgeted o
Slide 30: Mobility & e-Transactional Services
Mobility & e-Transactional Services 2024 H1 highlights €174m €30m H1 revenues H1 Adjusted EBITDA +1.0% organic growth 17.1% Adjusted EBITDA margin H1’24 REVENUE: €174M WITH A 1.0% ORGANIC GROWTH H1’24 Adjusted EBITDA : €30M WITH A 17.1% MARGIN Sustained performance driven by a good momentum in Trust
Slide 31: NR to NNR bridge and impacts on adjusted EBITDA
NR to NNR bridge and impacts on adjusted EBITDA Revenue Schemes Schemes OG% Q2 Q2 2024 & Q2 2024 Q2 2023 & Q2 2023 OG% Q2 In € million Publishe Published Partners Net Net Published* Partners Net Net Net Net d fees fees Merchant Services 871 (220) 652 849 (213) 637 +2.6% +2.4% Financial Services 232
Slide 32: EBITDA to Adjusted EBITDA & Operating margin to Adjusted EBITDA
EBITDA to Ajusted EBITDA & Operating margin to Adjusted EBITDA 6 months ended 6 months ended (In € million) Variation June 30, 2024 June 30, 2023 Operating margin 342.9 365.1 (22.2) + Depreciation of fixed assets 162.8 145.0 17.8 + Net book value of assets sold/written off 3.9 1.3 2.6 +/- Net charge
Slide 33: Net income to normalized net income reconciliation
Net income to normalized net income reconciliation 6 months ended 6 months ended (In € million) June 30, 2024 June 30, 2023 Net income - Attributable to owners of the parent (28.9) 81.1 Other operating income and expenses (Group share) 320.3 211.8 Tax impact on other operating items (81.0) (49.8) No
Slide 34: Thank you
Laurent Marie Thank you Group Head of Investor Relations laurent.marie@worldline.com For more information, please contact: Guillaume Delaunay Investor Relations Officer guillaume.delaunay@worldline.com H1 2024 results | 01-08-2024 | © Worldline | 34