Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q3 2023 Earnings Presentation
34 slides from Western Union Company (the)'s earnings presentation, Oct 25, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results October 25, 2023 Classification: Western Union Confidential
Slide 2: Tom Hadley, Head of Investor Relations
Western Union Tom Hadley Head of Investor Relations 2 Classification: Western Union Confidential
Slide 3: Forward-Looking Statements
Western Union Forward-Looking Statements This presentation contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumpti
Slide 4: Devin McGranahan, President & CEO
Western Union Devin McGranahan President & CEO 4 Classification: Western Union Confidential
Slide 5: Evolve 2025 Strategy
Western Union Evolve 2025 Strategy • Digital first customer • Digital first customer experiences experiences • Scalable marketing driven • Remittance-led offering customer acquisition • Expanded set of accessible • Retail to digital escalator products and services Deliver Accelerate digital accessib
Slide 6: C2C Transaction Trends
Western Union C2C Transaction Trends 5% 4% 4% +5% 2% Q3 2023 C2C transactions 0% 0% -1% 0% -3% +12% -4% -4% -5% Q3 2023 branded digital transactions 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 C2C ex Russia, Belarus, and Iraq C2C ex Russia and Belarus 6 Classification: Western Union Confidential
Slide 7: Third Quarter Results
Western Union Third Quarter Results $1.10 billion GAAP revenue 19.2% 19.6% GAAP operating margin Adjusted operating margin* $0.46 $0.43 GAAP EPS Adjusted EPS* 7 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures. Classification: Western Union Confidential
Slide 8: Macro Update
Western Union Macro Update U.S. Unemployment Rates1 Despite elevated macro uncertainty due to: Foreign-Born and Native-Born Workers 9.2% Elevated inflation 7.8% Slowing GDP growth 5.6% High interest rates 5.3% 3.8% 3.7% Geopolitical volatility 3.1% 3.4% We continue to see opportunities to drive our
Slide 9: Accelerating the Branded Digital Business
Western Union Accelerating the Branded Digital Business Western Union Branded Digital Go-to-Market Strategy Revenue (CC)* & Transaction Growth1 12% 12% GTM program scaled in the U.S. Accelerate customer acquisition engine in September 7% 2% 3% Drive transactions to the platform 1% -1% -2% -3% Return
Slide 10: Retail as the Gateway to Western Union
Western Union Retail as the Gateway to Western Union Western Union C2C Retail1 Transaction Growth -0.1% -2.4% -3.6% -5.7% -6.3% 3Q22 4Q22 1Q23 2Q23 3Q23 10 1 Excludes the impact related to the Company’s suspension of operations in Russia and Belarus and the impact from Iraq Classification: Western U
Slide 11: Delivering Accessible Financial Services
Western Union Delivering Accessible Financial Services Store · Spend · Send 11 Classification: Western Union Confidential
Slide 12: Driving Customer Experience & Operational Excellence
Western Union Driving Customer Experience & Operational Excellence Initial Customer ‘Quick Resend’ and ‘One Step Focus Engagement Refund’ enablement across our network: Customer 25% Retention North American agent base that has enabled ‘Quick Resend’1 Lifetime Value 80% Agents globally that have enab
Slide 13: Western Union and Cencosud Partner Additions to the Management Team
Western Union Western Union and Cencosud Additions to the Management Partner Team Sending remittances through Jumbo and Santa Isabel supermarkets Ben Hawksworth Rodrigo Garcia Estebarena Chief Technology Officer President, North America 13 Classification: Western Union Confidential
Slide 14: Matt Cagwin, CFO
Western Union Matt Cagwin CFO 14 Classification: Western Union Confidential
Slide 15: Q3 Business Trends
Q3 Business Trends Adjusted Revenue Growth* Adjusted Operating Margin* 9% 1200 12% 7% 1150 10% 8% 1100 6% 1050 4% -1% 1000 2% 950 0% 20.6% 20.5% 21.8% 19.6% -2% 15.8% -6% -6% 900 -4% 850 -6% 800 -8% 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 GAAP $1,090 $1,092 $1,037 $1,170 $1,098 GAAP 21.3%
Slide 16: Q3 C2C Business Trends
Western Union Q3 C2C Business Trends Adjusted Transaction % of C2C Revenue Regions Revenue* Growth/ YoY % Change (Decline) 5% North America (3%) 7% 11% Europe & CIS (10%) 0% 37% MEASA1 42% 9% 23% LACA 8% 9% APAC (7%) 0% Total C2C1 3% 5% 24% Branded Digital2 3% 12% North America EU & CIS MEASA LACA A
Slide 17: Q3 Other Highlights
Western Union Q3 Other Highlights Other • GAAP revenue grew 22% Other • Optimization of retail money Revenue Growth order float portfolio in Q3 of last 23% 22% year driving revenue growth 20% • Primarily bill payments businesses in Argentina and the U.S. and retail money orders 10% Business Solution
Slide 18: Financial Highlights
Western Union Financial Highlights YTD as of September 30, 2023 Edit text Cash flow from operations $519 million Dividends paid $263 million Share repurchases $100 million Capital expenditures $117 million Cash balance $1.14 billion Debt outstanding $2.31 billion 18 Classification: Western Union Con
Slide 19: 2023 Financial Outlook
Western Union 2023 Financial Outlook Revenue Operating margin EPS GAAP (4%) to (3%) 18% to 20% $1.67 to $1.74 Adjusted* 0% to 1% 19% to 21% $1.68 to $1.75 19 *Note: See appendix for reconciliation of GAAP to Non-GAAP financial measures. Classification: Western Union Confidential
Slide 20: Question and Answers
Western Union Question and Answers 20 Classification: Western Union Confidential
Slide 21: Appendix
Western Union Appendix Third Quarter 2023 21 Classification: Western Union Confidential
Slide 22: Key Statistics and Reconciliation of Non-GAAP Measures
Western Union Key Statistics and Reconciliation of Non-GAAP Measures Western Union’s management believes the non-GAAP financial A non-GAAP financial measure should not be considered in measures presented within this presentation provide meaningful isolation or as a substitute for the most comparable
Slide 23: Western Union
Western Union 23 Classification: Western Union Confidential
Slide 24: Western Union
Western Union 24 Classification: Western Union Confidential
Slide 25: Western Union
Western Union 25 Classification: Western Union Confidential
Slide 26: Western Union
Western Union 26 Classification: Western Union Confidential
Slide 27: Western Union
Western Union 27 Classification: Western Union Confidential
Slide 28: Western Union
Western Union 28 Classification: Western Union Confidential
Slide 29: Western Union
Western Union 29 Classification: Western Union Confidential
Slide 30: Western Union
Western Union 30 Classification: Western Union Confidential
Slide 31: Western Union
Western Union 31 Classification: Western Union Confidential
Slide 32: Western Union
Western Union 32 Classification: Western Union Confidential
Slide 33: Western Union
Western Union 33 Classification: Western Union Confidential
Slide 34: Thank you.
Thank you. ©2023 Western Union Holdings, Inc. All rights reserved Classification: Western Union Confidential
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