Wirecard Ag · HAM:WDI

Wirecard — Q3 2016 Earnings Presentation

33 slides from Wirecard's earnings presentation, November 2016

  1. Slide 1: Investor Presentation – Results Third Quarter 2016

    Wirecard AG Investor Presentation – Results Third Quarter 2016 © 2016 Wirecard AG 1

  2. Slide 2: Content

    Content 1. Highlights 2. Industry and regions 3. Mergers and acquisitions 4. Outlook 5. Financial data © 2016 Wirecard AG 2

  3. Slide 3: 1. Highlights

    1. Highlights © 2016 Wirecard AG 3

  4. Slide 4: Wirecard at a glance

    Highlights Wirecard at a glance 43.6 EUR bn processed transaction volume worldwide in 9M 2016 Outstanding track record with continuing growth and strong fundamentals ~ 26,000 large and medium sized merchants ~ 140,000 small sized merchants Innovation leader with state of the art internet and mobile

  5. Slide 5: Key figures first nine months 2016

    Highlights Key figures first nine months 2016 Results in EUR mn (except where stated) 9M 2016 9M 2015 Change Transaction volume (in EUR bn) 43.6 32.0 36% Revenues 719.4 541.0 33% EBITDA 213.9 158.4 35% EBIT adjusted* 184.7 137.1 35% EBIT 162.0 119.1 36% Earnings after taxes 216.2 98.3 120% Earnings

  6. Slide 6: Global mega trends driving Wirecard's growth

    Highlights Global mega trends driving Wirecard´s growth 1 Substitution of POS transactions by mobile and internet transactions 2 Transition from cash transactions to electronic card transactions 3 Transition from non-real-time transactions to real-time transactions 4 Internet technology as convergen

  7. Slide 7: Wirecard's strategy

    Highlights Wirecard´s strategy Driving convergence between online, mobile and POS front-ends using innovative internet technology Constant extension of value chain and innovative internet- Globalisation driven value added services © 2016 Wirecard AG 7

  8. Slide 8: Constant extension of the value chain and value added services (1/3)

    Highlights Constant extension of the value chain and innovative internet driven value added services (1/3) MOBILE FRONTEND SMS / USSD SIM TOOLKIT / J2ME SMARTPHONE APPS SMARTPHONE SDK SOLUTIONS VALUE ADDED CONTEXTUAL ADVERTISING LOYALTY PROGRAMS COUPONING SERVICES SERVICES MULTI-CHANNEL WALLET CUSTO

  9. Slide 9: Constant extension of the value chain and value added services (2/3)

    Highlights Constant extension of the value chain and innovative internet driven value added services (2/3) Current trends in data driven commerce – Payments are most valuable – they provide purchase driven by new technology and the real-time information, but also act as a trigger for actionable data

  10. Slide 10: Constant extension of the value chain and value added services (3/3)

    Highlights Constant extension of the value chain and innovative internet driven value added services (3/3) CONNECTED.POS (cPOS) Payment data Personalised (POS, ecommerce, marketing mobile Payment, mPOS) Providing data Data processing Loyalty as a service is suite status quo – Sociodemografic Digital

  11. Slide 11: Organic versus M&A related growth yoy 9M 2016

    Highlights Organic versus M&A1 related growth yoy 9M 2016 Transaction Revenue EBITDA growth volume growth growth Total 36.2% 33.0% 35.1%  Organic 30.0% 20.0% 26.3%  M&A 6.2% 12.9% 8.8% GI Retail 4.4% 9.9% 6.9% Wirecard Brasil 1.1% 1.9% 0.6% Provus 0.6% 1.1% 1.3% 1 Payment business of GI Retail

  12. Slide 12: Operative highlights first nine months 2016

    Highlights Operative highlights first nine months 2016 Examples of customer gains, business extensions and new partners Microsoft Cloud Platform Azure, Siemens Mobility, Verlagsgruppe Handelsblatt, Visa Europe Collab, ÖBB, T-Systems Eurotrade Flughafen München Handels-GmbH, Takko, MyOrder B.V., Inge

  13. Slide 13: 2. Industry and regions

    2. Industry and regions © 2016 Wirecard AG 13

  14. Slide 14: Transaction volume – industry and geographic view

    Industry and regions Transaction volume – industry and geographic view 43.6 EUR bn transaction volume in 9M 2016 Travel & mobility 36.2% yoy growth • Includes airlines, hotel chains, travel portals, tour operators, ferries, car 30.1 EUR bn 13.5 EUR bn rental and transportation companies Europe Outsi

  15. Slide 15: 3. Mergers and acquisitions

    3. Mergers and acquisitions © 2016 Wirecard AG 15

  16. Slide 16: Track record of recent M&A activity

    Mergers and acquisitions Track record of recent M&A activity Revenue EBITDA Payment business of GI 53.8 EUR mn 10.9 EUR mn Retail Group, India in 9M 2016 in 9M 2016 (consolidation as of (consolidation as of December 30, 2015) December 30, 2015) Revenue EBITDA Wirecard Brasil, Brazil 10.5 EUR mn 1.0

  17. Slide 17: Entering the U.S. – What's next?

    Mergers and acquisitions Entering the U.S. – What´s next? Consumer funded Acquiring cards Virtual Loyalty & credit cards couponing Issuing B2B platform industry Migration and network processing Prepaid Mobile card issuing payment Corporate Global funded customer MOBILE WALLET cards base by WIRECARD

  18. Slide 18: Strategic view on U.S. market entry on basis of Citi prepaid

    Mergers and acquisitions Strategic view on the market-entry into the U.S. on the basis of Citi prepaid 2017 estimates for Citi prepaid • Transaction volume of around 6 USD bn • Revenue of more than 100 USD mn • Average transaction margin of above 1.7% • EBITDA margin of around 20% (before integratio

  19. Slide 19: Updated 2020 financial vision

    Mergers and acquisitions Updated 2020 financial vision > EUR 170 bn > EUR 2.3 bn 30-35% >65% FCF conversion of Transaction volume Revenues EBITDA margin EBITDA © 2016 Wirecard AG 19

  20. Slide 20: Vision 2020 – global payment provider

    Mergers and acquisitions Vision 2020 – global payment provider Own acquiring licence Own issuing licence Own acquiring & Issuing licence BIN sponsorship agreements acquiring and/or issuing Additional licences/BIN sponsorships 2020 Vision Global availability of IP based payment technology Status quo

  21. Slide 21: 4. Outlook

    4. Outlook © 2016 Wirecard AG 21

  22. Slide 22: Market environment

    Outlook Market environment • Expected global e-commerce growth in 2016 of 16% to 17%* Strong market • Ongoing expected growth of the European e-commerce market of 12% for 2016** prospects • Strong growth prospects for the Asian market of 25% in 2016*** • Consumer goods Europe projected to grow at 11

  23. Slide 23: Company guidance

    Outlook Company guidance • Confirmed EBITDA guidance for FY2016 of 298 to 312 EUR mn • New EBITDA guidance for FY2017 of 382 to 400 EUR mn Guidance is based on • Growth of the European e-commerce market and additional global growth drivers • Increase of processed transaction volume with existing and

  24. Slide 24: 5. Financial data

    5. Financial data © 2016 Wirecard AG 24

  25. Slide 25: Financial highlights 9M 2016

    Financial data Financial highlights 9M 2016 in EUR k 9M 2016 9M 2015 Change Revenue 719,352 540,981 33% EBITDA 213,889 158,351 35% EBIT adjusted* 184,670 137,079 35% EBIT 161,952 119,111 36% Tax 23,827 15,734 51% Earnings after taxes 216,177 98,265 120% Earnings after taxes adjusted** 126,278 98,265

  26. Slide 26: Consolidated income statement

    Financial data Consolidated income statement in EUR k 9M 2016 % of revenues 9M 2015 % of revenues Revenues 719,352 540,981 Own work capitalised 19,541 19,800 Cost of materials -373,118 51.9% -295,469 54.6% Personnel expenses -93,794 13.0% -66,118 12.2% Other operating expenses -62,975 8.8% -45,067 8

  27. Slide 27: Balance sheet

    Financial data Balance sheet Assets in EUR k 30.09.2016 31.12.2015 Equity and liabilities in EUR k 30.09.2016 31.12.2015 Non-current assets 1,341,060 1,280,261 Shareholders´ equity 1,400,428 1,280,513 Goodwill 523,295 489,301 Liabilities 1,860,839 1,654,988 Customer relationships 400,320 385,451 Cur

  28. Slide 28: Net cash (short- and long-term)

    Financial data Net cash (short- and long-term) Net cash bridge 9M 2016 In EUR mn 1,800 507 -340 1,600 1,400 -446 1,203 1,200 1,000 -345 800 145 -387 600 579 400 337 200 0 Cash and cash Receivables of Current interest Customer Liabilities of Net cash Non-current Non-current Net cash equivalents acqui

  29. Slide 29: Income tax analysis

    Financial data Income tax analysis in EUR k 9M 2016 in % of ebt 9M 2015 in % of ebt Earnings before tax (EBT) 240,004 113,999 Tax on income and profit -23,827 9.9% -15,734 13.8% thereof impact from deferred tax 1,453 -0.6% -1,617 1.4% thereof tax to be paid -25,280 10.5% -14,117 12.4% Paid tax on in

  30. Slide 30: Cash flow and conversion

    Financial data Cash flow and conversion Free cash flow in EUR k 9M 2016 9M 2015 Cash flow from operating activities 179,159 133,280 (adjusted) Operative CAPEX 44,314 33,428 Free cash flow 134,846 99,852 Cash conversion in EUR k 9M 2016 9M 2015 Free cash flow 134,846 99,852 Earnings after tax* 126,27

  31. Slide 31: Accounting treatment of Visa Europe sale

    Financial data Accounting treatment of Visa Europe sale • On November 2, 2015 Visa Inc announced the acquisition of Visa Europe Limited • Proceeds from Visa Europe sale are based on the membership of Wirecard Bank Background AG and Wirecard Card Solutions Ltd and deal • Closing on June 21, 2016 stru

  32. Slide 32: Contact

    Contact Investor Relations Iris Stöckl: iris.stoeckl@wirecard.com IR-Team: ir@wirecard.com T: + 49 (0) 89 4424 1788 Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany © 2016 Wirecard AG 32

  33. Slide 33: Disclaimer

    Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial condi

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