Nexi Capital S.p.A. Investor Presentation · To support the reorganization and refinance...
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Nexi Capital S.p.A. Investor Presentation Nexi Capital Notes November 2018
Transcript of Nexi Capital S.p.A. Investor Presentation · To support the reorganization and refinance...
Nexi Capital S.p.A. Investor Presentation
Nexi Capital Notes
November 2018
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DisclaimerIMPORTANT: You must read the following before continuing.
No representation and no liability: The information contained in this documentation has been supplied by Nexi Capital S.p.A. (the “Company”), its parent Nexi S.p.A. and its affiliates (together, the “Group”). The Group completed a corporate reorganization (the “Reorganization”) on July 2, 2018. This presentation contains financial information of the Group for the nine months ended September 30, 2018, solely in respect of periods subsequent to June 30, 2018, and does not reflect the Group structure prior to the Reorganization. The results of the pre-Reorganization Group are not comparable to the results of the post-Reorganization Group and should not be read as a proxy therefore.
The Group makes no representation or warranty or other assurance, express or implied, that this document or the information contained herein or the assumptions on which they are based are accurate, complete, adequate, fair, reasonable or up to date and they should not be relied upon as such. The Group does not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on all or any part of this document and any liability is expressly disclaimed.
No recommendation: The sole purpose of this document is to provide background information to assist investors in obtaining a general understanding of the business and the outlook of the Group. This document contains only summary information and does not purport to and is not intended to contain all of the information that may be required to evaluate, and should not be relied upon in connection with, any potential transaction. It is not intended to be (and should not be used as) the sole basis of any credit analysis or other evaluation, and it should not be considered as a recommendation by any person for you to participate in any potential transaction. The Group expressly disclaims any duty, undertaking or obligation to update publicly or release any revisions to any of the information, opinions or forward-looking statements contained in this document to reflect any events or circumstances occurring after the date of the presentation of this document.
No advice: The Group does not provides legal, accounting or tax advice, and you are strongly advised to consult your own independent advisers on any legal, tax or accounting issues relating to these materials.
Forward-Looking Statements: This document may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements are based on assumptions and current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and the Group does not undertakes publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.
Projections: Any projections or forecasts in this document are illustrative only and have been based on the estimates and assumptions described in this document in relation to them which may or may not prove to be correct. Each recipient of this document should be aware that these projections do not constitute a forecast or prediction of actual results and there can be no assurance that the projected results will actually be realised or achieved. Actual results may depend on future events which are not in the Group’s control and may be materially affected by unforeseen economic or other circumstances. We present herein certain unaudited pro forma financial information for the Group (the “Unaudited Pro Forma Financial Information”) for the nine months period ended September 30, 2018 compared to the nine months period ended September 30, 2017 for the Group.
The calculation of pro forma data is based on management estimates and internal management accounts. These numbers have not been audited and may not be derived from financial statements prepared in accordance with IFRS. Results indicated by these pro forma measures may not be realized, and funds depicted by these measures may not be available for management’s discretionary use if such results are not realized. Expected cost savings and synergies presented herein are based on assumptions about our ability to implement these measures in a timely fashion and within certain cost parameters. The ability of the Group to achieve these cost savings and synergies is dependent upon a significant number of factors, some of which are out of our control. The Group may not be able to fully realize, or realize in the expected timeframe, the expected benefits from our cost measures. We present herein certain financial measures that are not recognized by IFRS. Different companies and analysts may calculate these non-IFRS measures differently, so making comparisons among companies on this basis should be done very carefully. These non-IFRS measures have limitations as analytical tools, are not measures of performance or financial condition under IFRS and should not be considered in isolation or construed as substitutes for operating profit or net profit as an indicator of our operations in accordance with IFRS. We believe the non-IFRS measures presented herein are useful to investors because they can provide a useful additional basis for comparing the current performance and condition of the underlying operations being evaluated by eliminating potential differences in results of operations and financial condition between periods or companies caused by factors such as depreciation and amortization methods, historical cost and age of assets, financing and capital structures, taxation positions or regimes and temporary accounting or non-recurring effects.
No offer: This document, the information contained in it or any other information about the Group shall not constitute or form part of any legal agreement, and does not constitute or form part of, and should not be construed as, an offer to sell or a solicitation of an offer to subscribe for, underwrite or otherwise acquire any securities of the Group or any subsidiary or affiliate, nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Group or any subsidiary or affiliate, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The distribution of this document in certain jurisdictions may be restricted by law. Persons into whose possession this document comes are required to inform themselves about and to observe any such restrictions. No liability to any person is accepted by the Group, including in relation to the distribution of the document in any jurisdiction.
By attending the meeting at which this presentation is made, dialling into the teleconference during which the presentation is made or reading this presentation, you agree to be bound by the limitations set out herein.
This document contains information that prior to its disclosure may have constituted inside information under European Union Regulation 596/2014 on market abuse.
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Today’s Presenters
Bernardo MingroneChief Financial Officer
Joined Nexi in 2018
Prior roles include senior positions at Telecom Italia, including Head of Group Treasury and Financial Advisory and Head of Strategic Finance
Holds a degree in Banking, Finance and Economics from LUISS University
Appointed CFO of Nexi in 2016
Prior roles include Group CFO of UniCredit (2015-2016) and Deputy GM in charge of Finance and Operations at BMPS (2012-2015), preceded by a career in investment banking at Lehman Brothers and J.P. Morgan
Holds a degree in Economics from LSE
Joined Nexi in 2017
Prior roles include positions at BCG, Intesa Sanpaolo and FundsWorld Financial Services
Holds an MBA from Kellogg School of Management and a CEMS master degree from Bocconi and HEC Paris
Francesco GainiHead of Strategic Planning and Reporting
Lorenzo CalòHead of Finance
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Executive Summary
• On 1st July 2018 Mercury Group completed a corporate reorganisation to separate the digital payments and ancillary businesses (new “Nexi Group”) from the regulated banking operations, which were pooled into a BankCo (“DEPObank”) and spun-off to its shareholders. The NexiGroup comprises of the following revenue-generating subsidiaries: Nexi Payments, Bassilichi Payments, Mercury Payments, Oasi Diagram, Helpline, and Sparkling 18.
• To support the reorganization and refinance outstanding debt at the holding company level, Nexi Capital raised €2.6bn, via publicly-traded Notes and Private Notes (€2.2bn and €0.4bn, respectively). Furthermore, the Nexi Group entered into a new RCF, as well as a settlement obligations factoring agreement with BBB rated Unicredit.
• On 28th September 2018 Nexi Payments closed the acquisition of Banca Carige’s merchant acquiring book – one more step towards building-up scale through disciplined M&A.
• While making significant strategic progress, the Nexi Group delivered a solid Q3 2018 YTD financial performance. On a pro-forma basis1:
o Operating Revenue grew by a volume-driven 4.6% to €729m
o EBITDA increased by 13.4% to reach €313m, with an EBITDA margin expansion of over 3 percentage points to 43.0%
o Cash conversion2 stood at over 67% (notwithstanding Capex increasing by 65% for the same period last year)
o Net profit increased to €40m, after (pre-tax) non-recurring negative items totalling €68m
o LTM 30-Sep-2018 Adjusted EBITDA amounted to €514m (Pro-Forma Net Leverage3 of 4.6x).
• Non-financial KPI showed Q3 2018 YTD transaction volumes growing 11.7% in Merchant Services & Solutions and 9.8% in Cards & Digital Payments.
1. Includes the Pro-Forma impact of: (i) the full year contribution of recently acquired businesses, (ii) certain transaction costs associated with the Nexi Capital offering and recent acquisitions, and (iii) certain transactions with DEPObank. 2. Cash Conversion defined as EBITDA less CapEx, as % EBITDA. 3. Net Leverage defined as Net Debt divided by LTM Adjusted EBITDA (See Listing Particulars for further information).
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Executive Summary
I. Corporate Structure
II. Q3 2018 YTD Pro-Forma Key-Financials
III. Q3 2018 YTD Pro-Forma Results by Business Unit
IV. Selected Financial Information and Funding Update
Appendix
I. Corporate Structure
77
Recap of 2018 YTD Key-Events
Filing with Bank of Italy for corporate reorganization and spin-off of regulated banking activities
Source: Company information.
Acquisition of digital payments start-up Sparkling 18 (Closing)
Debt refinancing (€2.2bn SSNs/FRNs, followed by €0.4bn Private Notes issue in July)
Carige Merchant Acquiring acquisition (Closing)
Sale of Bassilichi Payments non-core business (Closing)
Completion of Nexi group restructuring and related transactionsJuly
June
May
2018 is proving to be a landmark year, in which Nexi has been making significant strategic progress
April
January
September
88
Post-Transactions Corporate Structure
Source: Company information.
Current Corporate Structure (as at July 2nd, 2018)
Mercury UK HoldCo Limited (UK)
93.2 %
Nexi Payments (98.8%)
Mercury PaymentsBassilichi Payments
Helpline (70.0%)
Oasi DiagramSparkling 18
Revolving Credit Facility (€325m)
SSN and FRN (€2,200m)
Nexi S.p.A.
Nexi Capital S.p.A.(BondCo)
BondCo being merged into Nexi S.p.A.
Private Notes (€400m)
Mercury A Capital Limited
Mercury B Capital Limited
Mercury ABC Capital Limited
Nexi Capital Notes Restricted Group
33.3 %
33.3 %33.3 %
II. Q3 2018 YTD Pro-Forma Key-Financials
1010
Merchant Services & Solutions
Cards & Digital
Payments
Digital Banking
Solutions
Other Services
Merchant Services & Solutions
Cards & Digital
Payments
Digital Banking
Solutions
Other Services
Q3 2018 YTD Performance
Source: Company information.1. Includes the Pro-Forma impact of: (i) the full year contribution of recently acquired businesses, (ii) certain transaction costs associated with the Nexi Capital offering and recent acquisitions, and (iii) certain transactions with DEPObank. 2. Normalized EBITDA: excludes non recurring items. 3. Cash Conversion ratio defined as EBITDA less CapEx, as % EBITDA
10%
12%
35%
43%
Solid financial performance with growth in both Revenues and EBITDA
Revenues1 (Y-o-Y)
Proforma Q3 17 YTD Proforma Q3 18 YTD
10%
13%
35%
42%
EBITDA2 (Y-o-Y)
EBITDA margin
Cash Conversion ratio3
€276.4m
39.6%
77.5%
€313.3m
43.0%
67.3%
€697.5m €729.3m4.6%
13.4%
CapEx (Y-o-Y) €62.1m €102.5m65.0%
Breakdown of Revenues(gross of consolidation items)
by Business Unit (post-Reorganization perimeter)
1111
249317
370 407
514
2015 2016 2017 LTM Q3'18 LTM Q3'18Adjusted
LTM Operating Revenues (€m)
LTM CapEx (€m)5
LTM EBITDA (€m)
LTM Cash Conversion (€m)6
Margin % 30.7%
% of EBITDA7
64
86 92
133
2015 2016 2017 LTM Q3'18
812872
943 975
2015 2016 2017 LTM Q3'18
% ofoperatingrevenues
2
Source: Company information.1. Aggregated Non-GAAP financial measures. See Listing Particulars af Nexi Capital for further information. 2. Represents pro-forma operating revenue / EBITDA on a segmental basis, including the pro-forma impact of: (i) the full fiscal year contribution from recently acquired businesses, (ii) certain transaction costs associated with the Nexi Capital offering and recent acquisitions, and (iii) certain transactions with DEPObank. 3. Normalized EBITDA: excludes non recurring items. 4. See EBITDA adjustments on slide 13. 5. Calculated on a pro-forma basis. 6. Cash Conversion defined as EBITDA less CapEx. 7. Cash Conversion ratio defined as EBITDA less CapEx, as % EBITDA
1
185231
277
274
2015 2016 2017 LTM Q3'18
75.0%74.3% 73.0% 67.3%9.8%7.9% 9.8% 13.6%
36.3% 39.2% 41.7% 50.9%
1 1,3 1,3
2
2
2
2,3 2,3 2,4
1 1
2015-Q3 18 LTM Revenues, EBITDA and Cash Conversion
1212
LTM Pro-Forma Adjusted EBITDA and Net Profit
Bridge from LTM EBITDA to LTM Adjusted EBITDA and LTM Net Profit (Pro-Forma figures)
407
38
3534
407
514
117
124
109
42 0 14
Q3
'18
EB
ITD
A
Co
st S
avin
gs
Po
st-M
erge
r Sy
ner
gies
Inn
ova
tio
ns
and
CV
MIn
itia
tive
s
Q3
'18
Ad
just
ed E
BIT
DA
Q3
'18
EB
ITD
A
D&
A
No
n-r
ecu
rrin
g it
ems
Inte
rest
Exp
en
ses
Inco
me
Tax
es
Min
ori
tie
s an
d o
ther
(2
)
Q3
'18
Net
Pro
fit
LTM Pro-Forma EBITDA1 (€m) LTM Pro-Forma Net Profit1 (€m)
Source: Company information.1. Includes the Pro-Forma impact of : i) the full year contribution of recently acquired businesses, (ii) certain transaction costs associated with the Nexi Capital offering and recent acquisitions, and (iii) certain transactions with DEPObank. 2. Includes share of gains/losses of associates
Mostly includes transformation plan, HR severance, and
Nexi reorganisation and re-branding
Nexi Capital interest expenses
(incl. amortized debt issuance costs)
1313
• Bassilichi: Company integration by 2019; G&A savings (renegotiation of contracts, elimination of BoDindemnities, centralized services, etc.); procurement savings (run rate effects of initiatives already launched / completed); integration of IT platforms and corporate systems
• Mercury Payments: Synergies from Technology, Operations and central function integration by end of 2019
• IT Strategy: Cost-synergies from the integration of Bassilichi and Mercury Payments IT platforms, technology and corporate systems into Nexi’s
Overview of EBITDA Adjustments
Post-Merger
Synergies
Cost Savings
Innovation and CVM Initiatives
• Purchasing: Full effect of cost-cutting on production costs and on G&A based on initiatives launched in 2017 and additional cost savings initiatives already identified and launched in 2018
• HR: Full effect of restructuring initiative already completed (2017 exits and deferred exits)
• IT Processing & Running: Processing costs renegotiation with key suppliers, further identified savings on running costs
• IT Strategy: Saving targets related to identified actions on Infrastructure, ATMs and CBI, software and licensing
• Operations: Cost savings initiatives launched in 2017 and delivering further run-rate savings over the next years (e.g. fraud management improvement, reduction in maintenance interventions, etc.)
• Contact Centre: Initiatives launched in 2017 and delivering further savings over the next 1-2 years mainly by reducing reasons to call, increasing first contact resolution and pushing digital care
• Innovation bundle: VAS / Innovation package. Defined in 2017 and active in 2018
• E-Commerce: commercialization of state-of-the art E-Commerce solution for SMEs
• Apple Pay: full impact of launch of Apple Pay and Samsung Pay solutions
• Customer Value Management: Acquisition of Carige book; CVM initiatives on acquired merchant books and on existing customer base
• International Debit: growth of International Debit cards for client banks (contracts signed and ongoing negotiation with other banks benefiting both Issuing and Acquiring)
• ACH Instant Payments: Instant ACH already developed. Included in adjustments contracts already signed with 2 banks and other banks in advanced negotiation
• PSD2 Gateway: exclusive contract with CBI Consortium for the development of PSD2 Gateway (Open Banking)
€6m €38m
Dec’20171 Delivered Sep’2018
1. Please refer to Nexi Capital Listing Particulars for further information.
€44m
€3m €35m€38m
€10m €34m€44m
Total €19m €107m€126m
III. Q3 2018 YTD Pro-Forma Results by Business Unit
1515
BU Merchant Services & Solutions: Q3 2018 YTD Pro-Forma Results
Source: Company information.
Merchant Services & Solutions
Digital payments market trends drove double-digit volume growth in transactions. Lower increase rate in value of transactions due
to declining average ticket, on the back of demand-side trends and our commercial push for micro-payments.
As a result, revenues increased by 6.5% - on a pro-forma basis for the Carige book acquisition.
Key initiatives: Carige book acquisition (over 20k merchants being served via direct referral), launch of double-screen omni-
channel “Smart POS” Poynt terminals (Italian market exclusivity), new E-commerce solutions for SMEs.
Managed Transactions (# m)
2,1012,347
Q3'17 YTD Q3'18 YTD
172.3 183.7
Q3'17 YTD Q3'18 YTD
1,3401,449
Q3'17 Q3'18
Value of Managed Transactions (€ bn) Managed POS (# ‘000)
305 324
Q3'17 YTD Q3'18 YTD
409 429
FY'17 Q3'18 YTD
Pro-Forma Revenues (€m) LTM Pro-Forma Revenues (€m)
6.5%
6.6%11.7% 8.1%
43%
Q3’18 YTD Total Pro-Forma Revenues
(gross of consolidation items)
1616
BU Cards & Digital Payments: Q3 2018 YTD Pro-Forma Results
Cards & Digital
Payments
Managed Transactions (# m)
1,563 1,716
Q3'17 YTD Q3'18 YTD
136.5 143.7
Q3'17 YTD Q3'18 YTD
43.6 42.0
Q3'17 Q3'18
Managed Cards (# m)
5.2%9.8% (3.9%)
Value of Managed Transactions (€ bn)
250 267
Q3'17 YTD Q3'18 YTD
337 354
FY'17 Q3'18 YTD
6.9%
35%
LTM Pro-Forma Revenues (€m)
Transactions up by approx. 10% and 5% in number and value respectively, in acceleration during summer months, whilst the
managed card portfolio shrank as a consequence of the planned one-off clean-up of inactive prepaid cards.
On the back of higher transaction volumes, revenues increased by 6.9%.
Key initiatives: issue of approx. 175k new International Debit cards, launch of mobile payments (Apple Pay, Google Pay, and
Samsung Pay), innovation in premium segment (“Nexi Black” metal card with Cless technology), Easy Shopping (single-transaction
instalment card).
Source: Company information.
Q3 18 YTD Total Pro-Forma Revenues
(gross of consolidation items)
Pro-Forma Revenues (€m)
1717
BU Digital Banking Solutions: Q3 2018 YTD Pro-Forma Results
95 87
Q3'17 YTD Q3'18 YTD
Digital Banking
Solutions
Clearing Transactions (# m)
685 613
Q3'17 YTD Q3'18 YTD
493435
Q3'17 Q3'18
21.4 21.2
Q3'17 Q3'18
E-banking Licenses (# ‘000) Managed ATMs (# ‘000)
132 124
FY'17 Q3'18 YTD
(7.9%)
12%
Post-merger restructuring affecting some large clients weighed on E-banking network and, coupled with an unfavourable base-
effect, on Clearing volumes. Number of ATMs broadly flat, against a backdrop of bank branch closures.
Revenues decreased by 7.9%, reflecting market developments and due to a particularly strong Q3 17 YTD performance.
Key initiatives: ACH Instant Payments services to two mid-to-large banking groups, with advanced negotiations underway with one
more large and some other smaller clients.
(10.5%) (11.7%) (0.8%)
Source: Company information.
Q3 18 YTD Total Pro-Forma Revenues
(gross of consolidation items)
Pro-Forma Revenues (€m) LTM Pro-Forma Revenues (€m)
1818
BU Other Services: Q3 2018 YTD Pro-Forma Results
69 73
Q3'17 YTD Q3'18 YTD
324
267
8773
729
Me
rch
ant
Serv
ices
&So
luti
on
s
Car
ds
&D
igit
alP
aym
ents
Dig
ital
Ban
kin
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luti
on
s
Oth
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rvic
es
Co
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lidat
ion
item
s Tota
l
6.6%10%
Pro-Forma Revenues (€m) LTM Pro-Forma Revenues (€m)Q3 18 YTD Total Pro-Forma Revenues
(gross of consolidation items)
“Other Services” include Oasi Diagram’s AML and regulatory reporting services, Help Line’s call center operations, Sparkling 18
and Bassilichi’s ancillary services to Cards & Digital Payments businesses.
Revenues increased by 6.6%, mostly due to Oasi’s AML product sales.
95 100
FY'17 Q3'18 YTD
305
250
9569
698
Me
rch
ant
Serv
ices
&So
luti
on
s
Car
ds
&D
igit
alP
aym
ents
Dig
ital
ban
kin
gSe
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es
Oth
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rvic
es
Co
nso
lidat
ion
item
s Tota
l
Q3 17 YTD Pro-Forma Revenues1,2 (€m) Q3 18 YTD Pro-Forma Revenues1,2 (€m)
(20) (23)
1. Includes the Pro-Forma impact of the full year contribution of recently acquired businesses, (ii) certain transaction costs associated with the Nexi Capital offering and recent acquisitions, and (iii) certain transactions with DEPObank. 2. Consolidation items refer to intercompany transactions.
Q3 YTD Pro-Forma Revenue Bridge
IV. Selected Financial Information and Funding Update
2020
Selected Financial Information
SelectedDebt
Information
Selected P&L
Information
(€m, unless otherwise stated) Dec’2017 LTM Sep’2018
Source: Company information and Management information.1. Represents pro-forma operating revenue / EBITDA on a segmental basis, including the pro-forma impact of: (i) the full fiscal year contribution from recently acquired businesses, (ii) certain
transaction costs associated with the Nexi Capital offering and recent acquisitions, and (iii) certain transactions with DEPObank.2. Normalized EBITDA: excludes non recurring items.3. See EBITDA Adjustments on slide 13 for further information. 4. Includes senior secured debt and debt under local facilities, net of cash and cash equivalents.5. Includes amortized debt issuance costs
Pro forma operating revenue1
943 975
Pro forma normalised EBITDA1 370 407
Pro forma normalized EBITDA margin 1,2 39.2% 41.7%
Pro forma Adjusted EBITDA3 496 514
Pro forma Adjusted EBITDA margin 3 50.2% 50.9%
Pro forma profit for the period attributable to the owners of the parent (2) 14
Pro forma net debt4 2,537 2 ,365
Cash available to service debt n.a. 123
RCF draw-down n.a. -
Pro forma cash interest expense5
(109) (109)
Ratio of pro forma net debt to Adjusted EBITDA 5.1x 4.6x
Ratio of Adjusted EBITDA to pro forma interest expense 4.6x 4.7x
Including cash reserves earmarked for the planned Nexi
S.p.A. dividend payment (approx. €150m) to minority
interests (other than HoldCo), as detailed in the Nexi Capital
Listing Particulars
2121
Funding Update – Settlement Lines
Source: Company information.
Bilateral BankingCredit Lines
Issuing Licensing Factoring
Investment grade counterparties represent >80% of the available credit lines
Committed credit lines represent 24% of the available credit lines (71% considering revolving short-term commitments)
- 200 400 600 800
1,000 1,200 1,400 1,600
€M
LN
Undrawn Available
Factoring Commitment Drawn Available % Available
Without Recourse 2,897,600,000 2,539,626,496 357,973,504 12%
With Recourse 195,200,000 155,886,119 39,313,881 20%
Total factoring lines* 3,092,800,000 2,695,512,616 397,287,384 13%
*excluding €350m bridge facility
Drawn
-
500
1,000
1,500
2,000
2,500
3,000
WithoutRecourse
WithRecourse
€M
LN
Committment Drawn
Up to September 30 2018, more than EUR 6,222m receivables (€5,838m withoutrecourse) have been factored to UniCredit on a daily basis. The committed factoringlines have been covering in full the amount of receivables sold and outstanding fromtime to time. Moreover, Nexi can ask for a rebalancing of the value and allocation ofthe factoring lines twice per year.
Max usage (1-day spike from inception to 09/30):
Bilateral banking credit lines to support all other working capital needs (mostly dailyacquiring licensing receivables) have been covering more than 2.5x the actual needs.
Nexi Payments and Mercury Payments bilateral banking credit lines usage:
Source: Company information.
Appendix
2323
Pro-Forma KPI LTM and CAGRs1
Source: Company information.1. Group figures from 2015-17 include the pro-forma impact of the full fiscal year contribution from the acquisitions of Mercury Payments, MPS Acquiring, and Bassilichi Payments.2. Group figures from 2015-17 aggregate the number of transactions managed under our licensing, servicing and direct issuing and acquiring models.
Cards & Digital Payments
Digital Banking Solutions
Merchant Services & Solutions 2,423
2,6162,841
3,100
2015 2016 2017 LTM Q3'18
€212bn €220bn €232bn
9.4%
Clearing Transactions (# m)
Managed Transactions (# m/€ bn)2
CAGR (2015-LTM Q3 2018)
1,213 1,2741,385 1,449
2015 2016 2017 Q3'18
€245bn
Managed POS (# ‘000)
1,7951,955
2,134 2,287
2015 2016 2017 LTM Q3'18
Managed Transactions (# m/€ bn)2
41.5 42.0 44.2 42.0
2015 2016 2017 Q3'18
Managed Cards (# m)
683869 915 843
2015 2016 2017 LTM Q3'18
9.2%
8.0%
€169bn €177bn €186bn €193bn
21.6 21.2 21.2 21.2
2015 2016 2017 Q3'18
507 524 519435
2015 2016 2017 Q3'18
E-banking Licenses (# ‘000) Managed ATMs (# ‘000)
(0.6%)
6.7%
0.4%
(5.4%)
2424
Non-recurring expenses/(income) largely due to restructuring, M&A and transformation plan-related initiatives
11.0
69.9
133.7
77.3 68.0
FY 2015 FY 2016 FY 2017 Q3'17 YTD Q3'18 YTD
Full-Year Figures (€m)1,2 Proforma Q3 YTD Figures (€m)1
Including:- Transformation and other
admin. expenses, including ICBPI acquisition (€55.2m)
- HR restructuring (€15.9m)- Bassilichi fund releases and
other (€-1.2m)
Source: Company information.1. Non-recurring costs, net of non-recurring income.2. Full-year 2017 on a pro-forma basis.
Including:- Transformation (€57.4m)- HR restructuring (€48.7m)- Taxes on M&A deals (€17.0m)- Nexi rebranding (€5.5m)- Key-people hiring and other
(€5.2m)
Including:- Transformation (€25.8m)- HR restructuring (€16.2m)- Reorganisation (€9.7m)- Nexi rebranding (€4.3m)- Merchant book sale
(€-21.0m)- Data center termination fee
(€11.1m)- Bassilichi write-off (€6.3m)- Hedging derivatives and
other (€15.6m)
Including:- HR restructuring (€31.6m)- Transformation (€18.2m)- Taxes on M&A transactions
(€17.0m)- Nexi rebranding (€3.2m)- VAT on terminal purchases
(€1.8m)- Reorganisation and other
(€5.6m)
Overview of Non-Recurring Items
2525
Source: Company information.1. As of the date of this presentation we have not reported “actual” Q3 2018 YTD financials that have been prepared in accordance with IFRS. The information presented here has not been prepared in accordance with IFRS or other generally accepted accounting principles and should not be read as a substitute for information contained in our IFRS financial statements, which will be disclosed later.
Nexi Group – Proforma Profit & Loss1
(in € millions) Q3'2018 YTD Q3'2017 YTD Change % Change
Operating revenue 729.3 697.5 31.7 4.6%
Administrative expenses: (415.6) (416.3) 0.7 (0.2%)
thereof: Payroll and related costs (128.1) (130.0) 1.9 (1.5%)
thereof: Other administrative expenses (287.5) (286.3) (1.2) 0.4%
Other net operating expenses/income 5.9 2.0 3.9 194.9%
Net accruals to provisions for risks and charges (6.3) (6.9) 0.6 (8.1%)
Operating costs (before depreciation and amortisation) (415.9) (421.2) 5.2 (1.2%)
EBITDA 313.3 276.4 37.0 13.4%
Depreciation, amortisation and impairment losses (included in operating profit) (56.2) (45.1) (11.1) 24.6%
Operating profit 257.1 231.2 25.9 11.2%
Depreciation, amortisation on customer contracts (27.9) (23.5) (4.4) 18.7%
Share of gains/losses of Associates (0.3) 0.0 (0.3) -
Interest expenses on Notes and PP (81.5) (81.5) 0.0 -
Non-recurring / extraordinary items (68.0) (77.3) 9.3 (12.0%)
Pre-tax profit 79.4 49.0 30.5 62.2%
Income taxes (38.3) (26.0) (12.3) 47.4%
Profit for the period 41.2 23.0 18.2 79.0%
Profit for the period attributable to minority interests (1.3) 0.8 (2.1) n.m.
Profit for the period attributable to the owners of the parent 39.9 23.8 16.1 67.8%
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