Western Union Company (the) · NYSE:WU
Western Union Company (the) — The Western Union Company — Q4 2021 Earnings Presentation
28 slides from Western Union Company (the)'s earnings presentation, Feb 10, 2022
Slide 1: Earnings webcast and conference call
Earnings webcast and conference call FOURTH QTR 2021 FEB 10, 2022
Slide 2: Brad Windbigler, Head of Treasury and Investor Relations
Brad Windbigler Head of Treasury and Investor Relations 2
Slide 3: Safe Harbor
Safe Harbor 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 assumptions that are difficult to pre
Slide 4: Devin McGranahan, Chief Executive Officer
Devin McGranahan Chief Executive Officer 4
Slide 5: Western Union - Highlights
Western Union - Highlights Company Results Highlights Over $780M Returned to Shareholders in 2021 Revenue $1.3B $5.1B $268M Q4 FY $172M $171M $170M GAAP EPS $0.42 $1.97 Q4 FY Adj. EPS* $0.64 $2.19 1Q21 2Q21 3Q21 4Q21 Q4 FY *Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures
Slide 6: Strategy Update
Strategy Update Strong Improve Continue Prudent Foundational Opportunity to Core Capital Assets Expand Markets Operations Deployment • Iconic, Trusted Global • Expanding “Branded” • Strengthening CRM • Disciplined Capital Brand Product Set Platforms and Increasing Allocation Retention • Omni-channel
Slide 7: Raj Agrawal, Chief Financial Officer
Raj Agrawal Chief Financial Officer 7
Slide 8: Business Trends
Business Trends Consolidated revenues of $1.3 billion increased 1% on a reported or 2% constant currency* basis and compared to the prior year period +13% + 5% Digital Money Transfer Total C2C cross-border Revenue growth Q4 principal growth in Q4 + 6% Wu.com active users1 *Note: See appendix for rec
Slide 9: Consumer-to-Consumer Trends Q4
Consumer-to-Consumer Trends Q4 Regions Revenue Constant Currency Revenue Transaction % of C2C Growth/(Decline) Growth/(Decline)* Growth/(Decline) Revenue North America 2% 2% (2%) 38% Europe & CIS (8%) (7%) 1% 31% MEASA 2% 2% 6% 15% LACA 8% 12% 2% 9% APAC 0% 0% (13%) 7% Total C2C (1%) 0% 0% 100% Incl
Slide 10: Business Solutions and Other Highlights Q4
Business Solutions and Other Highlights Q4 Business Solutions 8% of Company revenue Revenue increased 22% (22% constant currency*) Divestiture remains on track Other (primarily retail bill payments businesses in the U.S. & Argentina and money orders) 5% of Company revenue Revenue increased 5% *Note:
Slide 11: Total Company Operating Margin Q4
Total Company Operating Margin Q4 Key factors driving the increase in operating margin: Benefited from Business Solutions increased profitability, lower 24.7% 24.9% planned marketing, lower agent losses and favorable foreign exchange impact FY21 marketing spend was consistent vs. FY20 Adjusted opera
Slide 12: Segment Operating Margins Q4
Segment Operating Margins Q4 C2C Segment Business Solutions Segment Other 30.8% 24.2% 20.5% 21.3% 15.8% -0.2% 4Q20 4Q21 4Q20 4Q21 4Q20 4Q21 12
Slide 13: Financial Highlights
Financial Highlights As of December 31, 2021 Q4 EPS: GAAP / Adjusted* $0.42 / $0.64 YTD Cash Flow from Operations $1,045 million YTD Dividends Paid $381 million YTD Share repurchases $400 million Cash Balance, December 31, 2021 $1.2 billion Debt outstanding, December 31, 2021 $3.0 billion *Note: See
Slide 14: 2022 Outlook
2022 Outlook GAAP Operating Profit GAAP Effective Tax GAAP Earnings per Revenue Margin* Rate Share Mid-single digit decline 21% - 22% High-teens range $2.38 to $2.48 Adjusted Adjusted Effective Tax Adjusted Earnings per Revenue Rate Share* Flat to low-single Mid-teens range $1.90 to $2.00 digit incr
Slide 15: Questions & Answers
\wUu Western Union Questions & Answers 15
Slide 16: Appendix
Appendix Fourth Quarter 2021 Earnings Webcast and Conference Call 16
Slide 17: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures Western Union presents a number of non-GAAP financial measures because A non-GAAP financial measure should not be considered in isolation or as a management believes that these metrics provide meaningful supplemental substitute for the most comp
Slide 18: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 18
Slide 19: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 19
Slide 20: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 20
Slide 21: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 21
Slide 22: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 22
Slide 23: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 23
Slide 24: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 24
Slide 25: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 25
Slide 26: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 26
Slide 27: Key Statistics and Reconciliation of Non-GAAP Measures
Key Statistics and Reconciliation of Non-GAAP Measures 27
Slide 28: Thank You
\wU Thank You Western Union
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