Slide 1: 9M 2021 Results Presentation
nexi 9M 2021 Results Presentation November 11th, 2021 1
Slide 2: Disclaimer
Disclaimer ▪ This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations,
Slide 3: Key messages
Key messages Continued volume recovery and Strong financial performance Continued progress in creating acceleration across geographies in 3Q21 and 9M21 the European PayTech leader ▪ Strong volume performance in Italy ▪ Revenues +10.1% vs 3Q20, +9.6% vs ▪ Strong SIA standalone performance with Italia
Slide 4: Executive Summary
Executive Summary Volume update ▪ Continued recovery on Acquiring volumes during 3Q, with geographies developing at mixed pace due to Covid-19 restrictions: • Strong volume performance in Italy, with solid growth performance in basic consumptions and continued growth across discretionary and high im
Slide 5: New Nexi-Nets perimeter: revenue and cost breakdown
New Nexi-Nets perimeter: 60% revenues from MSS (o/w 25% e-commerce), 71% revenues in fast growing markets. Significant operating leverage 9M21 Revenues breakdown 9M21 Costs breakdown by type By business By geography By type Merchant Services & Solutions Italy Nordics1 Installed based Variable costs
Slide 6: Strong acceleration on domestic volumes in 3Q in Italy
Strong acceleration on domestic volumes in 3Q in Italy, continued in October. Fast recovery of Foreign Cards, almost reaching 2019 levels in August ITALY Acquiring sales volumes – Italian Cards vs Foreign Cards – Y/Y trend Italian Cards Foreign Cards Total % change vs 2019 from week 15-21 Feb 37% 40
Slide 7: Strong growth in basic consumptions and continued growth in discretionary
Strong growth performance in basic consumptions and continued growth across discretionary and high impact categories ITALY Acquiring sales volumes trend by consumption category – Y/Y trend Total High Impact Consumption Basic Consumption Discretionary Consumption % change vs 2019 from week 15-21 Feb
Slide 8: Nordics back to positive volume growth, DACH still recovering
Nordics back to positive volume growth. DACH still recovering driven by strong basic consumption growth Other geographies Total LAKA acquiring volumes2 Total Issuing volumes3 Total SME acquiring volumes1 -13% in October vs 2019 +5% in October vs 2019 +12% in October vs 2019 (+8% net of High Impact C
Slide 9: Continued acceleration of cash to digital payments shift
Continued acceleration of cash to digital payments shift across sectors, visible in all geographies High Impact Consumption Basic Consumption Discretionary Consumption Focus on specific industries (September) % change vs 2019 Italy1 Nordics2 DACH2 Doctors and Department 82% Cosmetic stores 59% 149%
Slide 10: 9M21 Key Business updates – focus Merchant Services
9M21 Key Business updates – focus Merchant Services 59%1 ▪ Strong acceleration of Smartpay digital proposition rollout in Germany ▪ Good customer success of new mPOS proposition in Italy, x2 sales vs previous proposition ▪ Continued progress in vertical industry propositions (e.g. Ho.Re.Ca) go-to-ma
Slide 11: Focus on 9M21 Results
Focus on 9M21 Results 2020 and 2021 data include Nets underlying results at constant scope and FX since the beginning of the period 11
Slide 12: Strong revenue performance leading to double-digit EBITDA growth
Strong Revenue performance leading to double-digit EBITDA growth and continued EBITDA margin expansion Net Revenues (€M) EBITDA (€M) EBITDA margin 51% 53% 45% 47% +9.6% +12.3% 1,638.4 762.9 1,494.8 679.1 +14.6% +10.1% 316.7 544.2 598.9 276.3 3Q20 3Q21 9M20 9M21 3Q20 3Q21 9M20 9M21 12
Slide 13: Positive revenue performance across geographies
Positive revenue performance across geographies, with double-digit growth in Italy and DACH & Poland 52%1 Italy 29%1 Nordics2 +12.1% +8.0% vs 9M19 844.5 +11.7% 753.6 vs 3Q19 +1.9% +10.5% 472.3 481.3 +5.2% 276.0 305.1 168.3 177.0 3Q20 3Q21 9M20 9M21 3Q20 3Q21 9M20 9M21 2%1 17%1 DACH & Poland SE Europ
Slide 14: Merchant Services & Solutions: strong double-digit revenue growth
Merchant Services & Solutions: strong double-digit revenue growth across the Group driven by sustained volume performance and strong E-commerce Net Revenues (€M) Managed Transactions (#M) Key Highlights International ▪ Sustained double-digit revenue growth in Schemes +8.7% 3Q21 for both Nexi and Net
Slide 15: Cards & Digital Payments: good revenue growth
Cards & Digital Payments: good revenue growth supported by sustained volume dynamics Net Revenues (€M) Managed Transactions (#M) Key Highlights 29%1 International Schemes +13.6% ▪ Revenue growth in 3Q21 and 9M21 with different dynamics across the Group: +10.2% - Strong double-digit revenue growth in
Slide 16: Digital Banking & Corporate Solutions: confirmed revenue growth
Digital Banking & Corporate Solutions: confirmed revenue growth supported by positive contribution from business initiatives Net Revenues (€M) Key Highlights ▪ Positive revenue growth in 3Q21 and 10%1 9M21 for the combined Group +11.2% - Sustained revenue performance in 9M21 in Italy thanks to posit
Slide 17: Continued focus on cost control
Continued focus on cost control. Costs comparison vs 2020 mainly affected by Covid-19 related cost containment plan Total Costs (€M) Key Highlights Personnel Costs ▪ 9M21 total costs increased primarily due to Operating Costs higher transaction volumes and cost containment plan in 2020 +7.3% 875.5 -
Slide 18: Net Financial Debt / EBITDA in line with plan
Net Financial Debt / EBITDA in line with plan, at 3.0x including SIA and run-rate synergies Net Financial Debt (€M) Key Highlights Nets closing ▪ Existing gross indebtedness already Sept 20 Dec 20 Mar 21 June 21 Sept 21 including SIA refinancing. Nexi Group’s outstanding financial debt fully unsecur
Slide 19: M&A update
M&A update 19
Slide 20: Continued progress in creating the European PayTech leader
Continued progress in creating the European PayTech leader SIA 3Q21 and 9M21 ▪ Revenues at 207.5 €M in 3Q21, +9.3% y/y and 589.1 €M in 9M21, +12.0% y/y Standalone ▪ EBITDA at 91.6 €M in 3Q21, +12.9% y/y and 237.3 €M in 9M21, +21.7% y/y performance ▪ Antitrust approval obtained on October 14th with r
Slide 21: Clear progress in synergies achievement across all value creation levers
Clear progress in synergies achievement across all value creation levers Nexi - Nets Nexi - SIA ▪ Defined new Group technology strategy Tech platform ▪ CapEx deduplication already in execution optimisation ▪ Group digital delivery hub live in 1Q22 ▪ Processing platform consolidation ready for execut
Slide 22: Closing remarks
Closing remarks 22
Slide 23: Confirmed 2021 combined Ambition
Confirmed 2021 combined Ambition Combined Nexi+Nets 2021 Ambition Assuming continued recovery from Covid-19 with no new material restrictions across geographies: Net Revenues ~+10% y/y growth +11% to +13% y/y growth EBITDA +1p.p. EBITDA margin vs 2020, +3 p.p. vs 2019 Capex Broadly stable Capex inte
Slide 24: Key messages
Key messages Continued volume recovery and Strong financial performance Continued progress in creating acceleration across geographies in 3Q21 and 9M21 the European PayTech leader ▪ Strong volume performance in Italy ▪ Revenues +10.1% vs 3Q20, +9.6% vs ▪ Strong SIA standalone performance with Italia
Slide 25: Q&A
Q&A 25
Slide 26: Annex
Annex 26
Slide 27: Nexi + Nets Combined P&L
Nexi + Nets Combined P&L Combined P&L – Nexi + Nets Underlying figures1 Δ% vs. Δ% vs. 1Q20 2Q20 3Q20 9M20 1Q21 2Q21 3Q21 9M21 €M 3Q20 9M20 Merchant Services & Solutions 288.0 269.9 334.5 892.3 285.1 326.7 375.4 +12.2% 987.2 +10.6% Cards & Digital Payments 149.3 142.8 158.2 450.4 149.0 163.8 169.3 +7
Slide 28: Nexi - Total Acquiring and Issuing volumes
% Change vs 2019 from week 15-21 Feb Nexi - Total Acquiring and Issuing volumes ITALY Total Acquiring and Issuing volumes - 7-days rolling % change Y/Y +14% y/y +13% y/y +13% y/y Jul ‘21 Aug ‘21 Sep ‘21 30 24% 18% 17% 17% 20 14% 16% 12% 13% 11%12% 9% 10% 10% 11% 10 6% 4% 8% 9% 10% 6% 5% 3% 6% 6% 11%
Slide 29: Nexi - Acquiring sales volumes trend by consumption category
% Change 2021 vs 2019 Nexi - Acquiring sales volumes trend by consumption category ITALY Acquiring volumes by category1 Product category % change Y/Y vs. 2019 FY20 1Q21 2Q21 Jul Aug Sep 3Q21 LWR 2 44% for 41% for Basic consumption 16% 40% 32% 30% 27% 32% 30% 36% +37% E-commerce E-commerce of which P
Slide 30: Nexi - Acquiring sales volumes – Italian Cards vs Foreign Cards
% Change Nexi - Acquiring sales volumes – Italian Cards vs Foreign Cards 2021 vs 2020 ITALY Acquiring sales volumes – Italian Cards vs Foreign Cards – Y/Y trend Italian Cards Foreign Cards Total 260 239% 237% 220 208% 194% 195% 200 190% 170% 142% 140 126% 91% 102% 104% 74% 92% 100 88% 89% 70% 80 63%
Slide 31: Nexi - Acquiring sales volumes trend by consumption category
% Change 2021 vs 2020 Nexi - Acquiring sales volumes trend by consumption category ITALY Acquiring volumes by category1 Product category % change Y/Y FY20 1Q21 2Q21 Jul Aug Sep 3Q21 LWR2 44% for 41% for Basic consumption 16% 21% 18% 16% 12% 15% 15% 9% +8% E-commerce E-commerce of which Physical 14%
Slide 32: Nexi - Acquiring sales volumes trend by consumption category
% Change Nexi - Acquiring sales volumes trend by consumption category 2021 vs 2020 ITALY Acquiring sales volumes trend by consumption category – Y/Y trend 400 Total High Impact Consumption Basic Consumption Discretionary Consumption 379% 350 328% 321% 273% 292% 174% 220% 144% 150 147% 118% 112% 91%
Slide 33: SIA performance
SIA performance Revenues (€M) Cards & Merchant Solutions 68%1 Key Highlights Revenues, €M +12.7% +12.0% ▪ Resilient and diversified business +6.1% 356 401 model 589 526 +9.3% 133 141 ▪ Confirmed growth of volumes during 3Q21, back to pre-Covid growth levels 3Q20 3Q21 9M20 9M21 190 208 Digital Paymen
Slide 34: Investor Relations
Investor Relations investor.relations@nexi.it Stefania Mantegazza stefania.mantegazza@nexi.it 34