Worldline Sa · EURONEXT:WLN
Worldline Sa — H1 2022 Earnings Presentation
27 slides from Worldline Sa's earnings presentation, Jul 27, 2022
Slide 1: H1 2022 Results
H1 2022 Results Wednesday July 27, 2022 H1 2022 results | 27-07-2022 | © Worldline | 1
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: H1'22 Highlights
H1’22 Highlights Gilles Grapinet Group CEO H1 2022 results | 27-07-2022 | © Worldline | 3
Slide 4: H1 2022 highlights
H1 2022 highlights Very strong first half 2022 H1 2022 COMMERCIAL RESULTS DYNAMICS Steady acquiring volumes growth 12.6% organic growth (+30% in H1 2022 vs. H1 2021) (13.5% in Q2 fueled by Merchant Services) Solid merchants count deployment OMDA margin up 80 bps (c.+60k merchants since end-2021) 49%
Slide 5: H1 2022 key financial highlights
H1 2022 key financial highlights Performance solidly on-track €2,020m revenues €468m OMDA €229m free cash-flow 12.6% organic growth 23.2% OMDA margin (+80 bps) 49.0% of OMDA €213m net income €0.76 diluted EPS* Group share* vs. €0.59 in H1’21 (+28.8%) 10.5% of revenues * Normalized figures adjusted f
Slide 6: Strategic initiatives
Strategic initiatives 3 acquisitions closed and TSS closing on-track Axepta Closed Eurobank Closed ANZ Closed Italy Merchant Acquiring Commercial Acquiring Strategic partnership with Leading position in the Greek market Strategic commercial alliance a significant bank acquirer in Italy in complement
Slide 7: Deep dive on Merchant Services dynamics
Deep dive on Merchant Services dynamics Marc-Henri Desportes Group Deputy CEO H1 2022 results | 27-07-2022 | © Worldline | 7
Slide 8: Steady growth of Worldline acquiring merchants' base
Steady growth of Worldline acquiring merchants’ base +10% in H1’2022 reaching 1.22 million Merchants Worldline acquiring merchants’ base Very solid merchants base (Proforma merchant base including Axepta Italy and Handelsbanken since Dec-2020) developments +60k merchants vs Dec-2021 1.22 million as
Slide 9: Q2'22 focus on MS commercial activity
Q2’22 focus on MS commercial activity Market share gains with existing and new large clients and offering & solutions enlargement with key partnerships signed MS wins & upsells with large clients MS Key partnerships signed Joint offering providing full-service end-to-end integrated payment solution
Slide 10: Steady acquiring MSV growth in H1 2022
Steady acquiring MSV growth in H1 2022 Double-digit growth vs. H1’19 Worldline outperformance in core geographies Worldline own acquiring MSV H1’22 ACQUIRING MSV (€M)* (acquiring instore and online) €147bn +30% vs H1’21 +28% vs. H1’19 Transaction volumes fueled by both instore and online Instore MSV
Slide 11: H1'22 Financial performance
H1’22 Financial performance Grégory Lambertie Group CFO H1 2022 results | 27-07-2022 | © Worldline | 11
Slide 12: H1 2022 financial performance
H1 2022 financial performance Global business lines revenue overview H1 2022 Group Revenue H1 2022 Group Revenue / GBL (in €m) H1 2022 H1 2021* Organic Growth 9% Merchant services 1,378 1,180 +16.8% 23% Financial services 458 445 +2.8% MeTS 184 168 +9.4% 68% Worldline 2,020 1,794 +12.6% * H1 2021 re
Slide 13: H1 2022 revenue building blocks
H1 2022 revenue building blocks Steady growth in Merchant Services H1 2022 Focus on Q2 2022 +12.6% organic dynamics +17.6% +3.0% +10.3% Q2 2022 organic growth of 13.2% +15.8% +2.5% +8.4% +113 +7 +9 €2,020m Strong 17.6% growth +85 +6 +7 in Merchant Services fueled by a steady €1,794m growth in commer
Slide 14: H1 2022 financial performance
H1 2022 financial performance Global business lines OMDA overview H1 2022 Group OMDA H1 2022 Group OMDA / GBL (in €m) H1 2022 H1 2021* H1’22 margin vs. H1’21 margin 5% Merchant services 352 264 25.5% +310 bps 25% Financial services 123 129 26.8% (220) Bps MeTS 26 25 13.9% (90) bps Corporate (32) (18
Slide 15: H1 2022 OMDA building blocks
H1 2022 OMDA building blocks OMDA expansion driven by organic growth acceleration and synergies Drivers of margin expansion +16.7% OMDA organic growth +80bps in margin OMDA up 16.7% to €468m Margin up 80bps to 23.2% Global OMDA generation phasing fully in line with growth patterns MS accelerated gro
Slide 16: Income statement – continued operations
Income statement – continued operations In €M H1’22 H1’21* ▪ Operating income mainly impacted by OMDA 468 382 Ingenico acquisition and Axepta and ANZ post acquisition and integration: HIGHLIGHTS Operating Margin 346 258 o €72m of integration and acquisition costs o €110m Customer relationships and p
Slide 17: Free cash-flow
Free cash-flow In €M H1’22 H1’21* ▪ Increase in OMDA contribution OMDA 468 382 HIGHLIGHTS Lease obligations (31) (37) ▪ Capex representing 6.9% of revenue vs. 5.0% in H1’21 and in the 5% to 7% target Working capital change 86 34 Capex (140) (84) ▪ Positive €86m change in Working Capital that will no
Slide 18: Net debt evolution
Net debt evolution In €M H1’22 H1’21* ▪ €229m positive impact from free cash-flow HIGHLIGHTS Net debt / (cash) as of January 1st 2,923 3,211 ▪ €780m impact mainly from acquisitions Free Cash-flow 229 143 closed in H1’22 with Axepta Italy, ANZ Card Acquiring and Eurobank Acquisition net of disposals
Slide 19: FY 2022 guidance confirmed
FY 2022 guidance confirmed Revenue OMDA FCF 8-10% organic growth 100-150 bps improvement c.45% OMDA conversion rate The bottom of our guidance factors: Localized and temporary Covid constraints Limited recovery of intercontinental travel Limited delays on POS supply related to still ongoing componen
Slide 20: H1'22 Key take-aways
H1’22 Key take-aways Gilles Grapinet Group CEO H1 2022 results | 27-07-2022 | © Worldline | 20
Slide 21: Key take-aways
Key take-aways Worldline powerful competitive positioning delivering a very solid performance Powerful MS growth acceleration reflecting Solid margin expansion resulting from enhanced competitive strengths 18 months synergies and operating leverage allowing to after closing of Ingenico absorb 2022 h
Slide 22: Q&A
Q&A H1 2022 results | 27-07-2022 | © Worldline | 22
Slide 23: Appendices
Appendices H1 2022 results | 27-07-2022 | © Worldline | 23
Slide 24: Merchant Services – H1 2022 highlights
Merchant Services – H1 2022 highlights €1,378m +16.8% €352m 25.5% Revenues Organic growth OMDA OMDA margin (+310 bps) H1’22 REVENUE: €1,378M WITH A 16.8% ORGANIC GROWTH H1’22 OMDA: €352M WITH A 25.5% MARGIN (+310 bps) ▪ Solid performance led by the acceleration of organic growth in the ▪ Acceleratio
Slide 25: Financial Services – H1 2022 highlights
Financial Services – H1 2022 highlights €458m +2.8% €123m 26.8% Revenues Organic growth OMDA OMDA margin (-220 bps) H1’22 REVENUE: €458M WITH A 2.8% ORGANIC GROWTH OMDA: €123M WITH A 26.8% MARGIN (-220 bps) ▪ Q2 performance (+3.0%) in line with the expected full year trajectory ▪ OMDA impacted by th
Slide 26: Mobility & e-Transactional Services – H1 2022 highlights
Mobility & e-Transactional Services – H1 2022 highlights €184m +9.4% €26m 13.9% Revenues Organic growth OMDA OMDA margin (-90 bps) REVENUE: €184M WITH A 9.4% ORGANIC GROWTH OMDA: €26M WITH A 13.9% MARGIN (-90 bps) ▪ Solid performance led by the acceleration of organic growth in the ▪ OMDA impacted b
Slide 27: Thank you
Thank you For more information, please contact: Laurent Marie Benoit D’amécourt Group Head of Investor Relations Deputy Head of Investor Relations M +33 7 84 50 18 90 M +33 6 75 51 41 47 laurent.marie@worldline.com benoit.damecourt@worldline.com H1 2022 results | 27-07-2022 | © Worldline | 27