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Investor PresentationH1 2019 results, 7 August 2019
© Wirecard 2019 2
Highlights
301 kMerchants
€ 77.3 bnTransaction volume H1 2019
Wirecard is one of the fastest growing financial commerce platforms that
offers merchants and consumers a continuously
expanding payment access system over an integrated
B2B2C approach.
Global Megatrends Driving Wirecard’s Strategy
© Wirecard 2019 3
Cashless Worldthe shift from cash to
plastic and virtual money – driven by
regulators, supply and demand
Internet Technology & IOT taking over new areas
such as production and retail
Financial InclusionIncreasing demand
and supply for unbanked and
underbanked people
Borderless Payments
driven by global trade, travel and politics
Frictionless Customer
Experiencedriven by convergence of payment channels
and customer expectations
Artificial Intelligence
the first ever possibility to derive actionable
insights from big data
6 Global payment megatrends… …driving our strategy
Driving convergence between online, mobile and POS front-ends using innovative internet technology
Globalization of own footprint, customers and services
Constantly extend value chain with innovative value adding solutions
3
1
2
Financial Platform
© Wirecard 2019 4
Big data
Transaction/Mobile banking
Analytics /RFM analysis
Peer-to-peer/B2B Loyalty/Couponing/Dynamic pricing
Call center
Mobile wallet
Credit
Risk managementValue-added
services indigital banking
Value-addedservices to increase topline
White label/Co-branding
White label/Co-branding
Artificial intelligence
342.1
252.0
H1 2019H1 2018
EBITDAin EUR million
77.3
56.2
H1 2019H1 2018
Transaction Volumein EUR billion
Key Figures
© Wirecard 2019 5
1,209.8
885.2
H1 2019H1 2018
Revenuesin EUR million
284.0
196.2
H1 2019H1 2018
Operating Cash Flow(adjusted)in EUR million
239.6
161.4
H1 2019H1 2018
Free Cash Flowin EUR million
35.8%yoy
48.5%yoy EBITDA guidance of
EUR 765 – 815 mfor FY 2019
36.7%yoy
37.5%yoy
44.8%yoy
Some of the amounts disclosed for 2018 differ from the figures in the Interim Report as of 30 June 2018 due to adjustments made in accordance with IAS 8.
Organic and M&A Related Growth
© Wirecard 2019 6
56.2
74.7
2.6
H1 2018 H1 2019
Transaction Volumein EUR billion
32.9%organic
Total transaction volume is up EUR 21.1 bn, representing 37.5% of growth yoy
Strong organic growth of 32.9% yoy, upEUR 18.5 bn
Total M&A added EUR 2.6 bn – merchantacquiring services of Citigroup in APACadded EUR 2.6 bn (India, Australia & New Zealand)
252.0
341.3
0.8
H1 2018 H1 2019
EBITDAin EUR million
35.4% organic
M&AOrganic
Total revenue is up EUR 324.6 m, representing36.7% of growth yoy
Strong organic growth of 34.6% yoy, up EUR 306.1 m
Total M&A added EUR 18.5 m – merchantacquiring services of Citigroup in APACadded EUR 18.5 m (India, Australia & New Zealand)
Total EBITDA is up EUR 90.1 m, representing35.8% of growth yoy
Strong organic growth of 35.4% yoy, up EUR 89.3 m
Total M&A added EUR 0.8 m – merchantacquiring services of Citigroup in APAC added EUR 0.8 m (India, Australia & New Zealand)
885.2
1,191.3
18.5
H1 2018 H1 2019
Revenuein EUR million
34.6% organic
Some of the amounts disclosed for 2018 differ from the figures in the Interim Report as of 30 June 2018 due to adjustments made in accordance with IAS 8.
Transaction volume1 by geographies2 and industry H1 2019
Merchant View
© Wirecard 2019 7
1 Transaction volume: mainly acceptance and issuing means of payment along with associated value added services2 Geographic view: based on merchant location
Digital goods36.4%
Travel & mobility16.6%
Consumer goods47.1%
Transaction volume industry allocation
up EUR 9.4 bn50.4% yoy growth
up EUR 9.3 bn34.2% yoy growth up EUR 2.4 bn
22.9% yoy growth
€
€ 36.0 bn EUROPE
€ 41.3 bn OUTSIDE EUROPE
Transaction volume by geographies
Examples of customer gains, business extensions and new partners
Customer Gains and Partnerships
© Wirecard 2019
8
15.3% yoy
30.034.6
H1 2018 H1 2019
NEW SIGNINGSwith a potential transaction
volume of (in EUR bn)
8
Product Innovations
© Wirecard 2019 9
B2C: Boon Planet
Complete banking and payment ecosystem
Digital credit card and bank account via a single app
Pilot stage entered, complete launch in October 2019
To be expanded to include value added features such
as mobile infrastructure and loyalty functions
B2B: Next Generation Financial Commerce Platform
Online business account with payment acceptance for merchants
Instant payout
Immediate availability of credit via bank transfer or debit card
Additional liquidity at any time via credit line linked to payment volume
Product Innovations
© Wirecard 2019 10
Smart MirrorThe Wirecard Smart Mirror uses RFID technology and a touch screen integrated in the mirror to improve the shopping experience of customers at retail stores.
Key feature: easy checkout with own device and getting access to a wide range of information directly through the mirror.
Biometric TerminalPayment, loyalty and access with a wave of your palmBiometrics can be utilized to reduce friction and increase security. A one-time registration of a single encrypted biometric key connects users to:
access control systems payment options loyalty programs ticket redemption time and attendance systems via one network
Overview: Value Added ServicesDigital Lending
© Wirecard 2019 11
Fintech Loan Digital Credit Merchant Cash Advance
Different Lending Products
Support Fintechs with liquidity for their own products
Offered as service in addition to WD platform, banking license, etc.
Description
Access to liquidity for merchants
Customized credit based onhistorical and future expected transactions, as well as other scoring models
Early settlement to the merchant to improve liquidity
Scoring based on historic transactions and other scoring models
EUR 330m
Volumes
as of 31 March 2019
as of 30 June 2019
~EUR 400m
EUR 335m ~EUR 370m
Outlook
© Wirecard 2019 12
… by combining digital acquiring, issuing and financial services
Generating New Business Models…
© Wirecard 2019 13
Consumer accountsBank accounts, credit solutions, personal finance management
Real-time engagementBig data analytics and targeting, personalized offers and pricing, interactive mobile channels
Payment instrumentsPrepaid or credit, mobile money, closed loop / gift / loyalty cards
In the aisleSelf-checkout, mobile POS, App checkout, digital store assistant
On the net & mobileCheckout pages, API & seamless payment, shop plugins
At the cashier Open- and closed loop acceptance, DCC, tax free, loyalty,soft terminals & integration
Payment issuance
Financial licenses
Business models in B2C, B2B and B2B2C evolve
towards a unified view on the transaction
Integrated payment and data streamsCustomer touchpoints Customer engagement channels
Paym
ent a
ccep
tanc
e
FintechAccess to market through international license network, open banking ecosystem
BanksOperation of licensed and regulated banking back-end, technology enablement
Wirecard’s omnichannel offering to further increase conversion rates
Data Driven Services
© Wirecard 2019 14
Card schemesLocation
Cashier
E-Commerce
In store tablets
Alternative payments
Smart terminals
M-POS solution
Market Environment
© Wirecard 2019 15
Ongoingdigitalisation
Real-time payments
Convergence of all sales channels
Transition from cash to
electronic payments
Cashless payments expected to grow by around 14 percent per year up to 20211
1 Capgemini: World Payments Report 2018
Company Guidance
© Wirecard 2019
Guidance is based on Increase in cashless payments globally Growth of the global e-commerce market and
continuing trend towards digitalisation Increase of processed transaction volume with
existing and new clients Economies of scale Contribution from recent acquisitions
EBITDA guidance of EUR 765 – 815 m
for FY 2019
16
Our Visionary Playing Field
17
80–85% cash transactionsworldwide …
… whereas only15–20% of all transactions are
electronic …
… with only 8–10% of all electronic transactions
being fully digitized.
Enormous market potential for Wirecard
Transaction volume Revenues EBITDA (margin) FCF conversionVision 2020 old > EUR 215bn > EUR 3bn 30–35% > 65%
Vision 2020 new > EUR 230bn > EUR 3.2bn 30–35% > 65%
Vision 2025 > EUR 710bn > EUR 10bn > EUR 3.3bn > 65%
Timeline
© Wirecard 2019 18
Softbank partnership announced24 April 2019
AGM approval18 June 2019
Signing of contracts andissuance of convertible bondSeptember 2019
Completion of authorisedcapital registrationAugust 2019
Financial Data
© Wirecard 2019 19
Governance adjustedstructure for sustainable growth in place
© Wirecard 201920
Adjustment of global compliancestructures
Global enforcement of rules and stronger
governance
Clear allocation of responsibilities and high transparency
High investment in compliance
Task Force
Led by theWirecard Board
Key Results
FTE: + 30
Financial highlights
Financial Data
© Wirecard 2019 21
in EUR million H1 2019 H1 2018 Change
Revenues 1,209.8 885.2 36.7%
EBITDA 342.1 252.0 35.8%
EBIT adjusted* 294.8 219.5 34.3%
EBIT 277.1 200.1 38.5%
Income tax expenses 30.2 31.1 -2.9%
Earnings after taxes 237.5 157.6 50.7%
Earnings per share (basic and diluted) in EUR 1.92 1.27 51.2%
Cash flow from operating activities (adjusted)** 284.0 196.2 44.8%
Total equity*** 2,145.1 1,922.7 11.6%
Total equity and liabilities*** 6,697.6 5,854.9 14.4%
Employees as of 30 June 2019 and 30 June 2018 5,743 5,064 13.4%
thereof full-time employees 5,420 4,741 14.3%
thereof part-time employees 323 323 0.0%* Adjusted for amortisation (M&A related)** Consolidated cash flow from operating activities (adjusted)*** 2018 figures as of 12/31/2018
Some of the amounts disclosed for 2018 differ from the figures in the Interim Report as of 30 June 2018 due to adjustments made in accordance with IAS 8.
Consolidated income statement
Financial Data
© Wirecard 2019 22
in EUR million H1 2019 in % of revenues* H1 2018 in % of revenues*
Revenues 1,209.8 885.2Own work capitalised 22.2 20.7Cost of materials 652.3 53.9% 474.0 53.6%
Gross profit 579.7 47.9% 431.9 48.8%Personnel expenses 140.7 11.6% 112.0 12.7%Other operating expenses 100.5 8.3% 68.1 7.7%Impairment losses of financial assets 1.6 0.1% 4.3 0.5%Other operating income 5.3 0.4% 4.8 0.5%Share of profit or loss from associates (at equity) -0.2 0.0% -0.4 0.0%
EBITDA 342.1 28.3% 252.0 28.5%Amortisation and depreciation 65.0 5.4% 51.9 5.9%
EBIT 277.1 22.9% 200.1 22.6%Financial result -9.4 -11.4
Earnings before taxes 267.7 188.7Income tax expenses 30.2 11.3% 31.1 16.5%
Earnings after taxes 237.5 19.6% 157.6 17.8%
EBITDA 342.1 28.3% 252.0 28.5%Amortisation and depreciation (M&A adjusted) 47.2 3.9% 32.5 3.7%
EBIT adjusted** 294.8 24.4% 219.5 24.8%Amortisation and depreciation (M&A related) 17.7 1.5% 19.4 2.2%
EBIT 277.1 22.9% 200.1 22.6%* Taxes on income and profit with regards to Earnings before Taxes (EBT)** Adjusted by amortisation (M&A related)
Some of the amounts disclosed for 2018 differ from the figures in the Interim Report as of 30 June 2018 due to adjustments made in accordance with IAS 8.
Balance sheet
Financial Data
© Wirecard 2019 23
Assets in EUR million 30 June 2019 31 Dec 2018
Goodwill 713.5 705.9
Customer relationships 438.4 452.1
Internally-generated assets 146.7 138.2
Other intangible assets 114.6 113.3
Property, plant and equipment 109.8 81.5
Investments (equity method) 13.9 14.0
Fin. and other assets 372.7 413.6
Deferred tax assets 13.1 10.8
Total non-current assets 1,922.7 1,929.4Inventories and work in progress 7.6 10.6
Receivables of acquiring business 786.5 684.9
Trade and other receivables 393.3 357.4
Tax credits 24.0 13.1
Interest bearing securities 515.8 139.6
Cash and cash equivalents 3,047.7 2,719.8
Total current assets 4,774.9 3,925.5
Total assets 6,697.6 5,854.9
Equity and liabilities in EUR million 30 June 2019 31 Dec 2018
Total equity 2,145.1 1,922.7Non-current interest-bearing liabilities 1,594.6 1,348.7
Other non-current liabilities 156.3 163.8
Deferred tax liabilities 79.0 80.1
Total non-current liabilities 1,830.0 1,592.6Liabilities of the acquiring business 708.9 651.9
Trade payables 65.9 63.4
Interest bearing liabilities 123.0 117.4
Other provisions 27.9 18.5
Other liabilities 207.5 186.6
Customer deposits bank 1,559.1 1,263.0
Tax provisions 30.1 38.9
Total current liabilities 2,722.5 2,339.6Total liabilities 4,552.5 3,932.2
Total equity and liabilities 6,697.6 5,854.9
Net cash bridge H1 2019 (in EUR million)
Financial Data
© Wirecard 2019 24
* Customer deposits bank break down in EUR million 30 June 2019
Customer deposits - balance sheet amount 1,559
thereof in long-term interest bearing securities -5
thereof in interest bearing securities and fixed-term deposits -516
Customer deposits relevant for net cash calculation 1,038
0500
1,0001,5002,0002,5003,0003,5004,0004,500
Cash and cashequivalents
Interest bearingsecurities
Receivables ofacquiring
business & Tradeand other
receivables
Current interestbearing
liabilities/otherliabilities
Customerdeposits bank*
Liabilities ofacquiring
business andtrade payables
Net cash positionshort term -Wirecard
Non-currentfinancial assets
Non-currentinterest bearingliabilities / other
liabilities
Net cash positionlong term -Wirecard
3,048 2
1,180
-331
-1,038
-775
2,086365
-1,751
700
Cash flow and income tax analysis
Financial Data
© Wirecard 2019 25
in EUR million H1 2019 in % of EBT H1 2018 in % of EBT
Earnings before taxes 267.7 188.7
Income tax expenses -30.2 11.3% -31.1 16.5%
thereof deferred tax expenses/income 0.0 0.0% -12.4 6.6%
thereof effective tax expenses -30.2 11.3% -18.7 9.9%
Net cash outflow arising from income tax -42.5 -34.5
thereof income tax -42.5 -34.5
thereof capital gain tax on dividends 0.0 0.0
in EUR million (except where stated) H1 2019 H1 2018 Change
Cash flow from operating activities (adjusted)* 284.0 196.2 44.8%
Operative capex -44.5 -34.8 27.8%
Free cash flow 239.6 161.4 48.5%
Earnings after taxes 237.5 157.6 50.7%
Cash conversion in % 100.9 102.4
* Consolidated cash flow from operating activities (adjusted)
Some of the amounts disclosed for 2018 differ from the figures in the Interim Report as of 30 June 2018 due to adjustments made in accordance with IAS 8.
Investor Relations
© Wirecard 2019 26
Iris Stöckl Stephanie MalgaraVP Corporate Communications/Investor Relations Senior Manager Investor [email protected] [email protected]: + 49 (0) 89 4424 1788 T: + 49 (0) 89 4424 191348
Susanne Herrle Kristin Kleine BeerinkPrincipal Investor Relations Investor Relations [email protected] [email protected]: + 49 (0) 89 4424 1223 T: +49 (0) 89 4424 1734
Katharina Wilhelm Assistance IR/ PR [email protected]: + 49 (0) 89 4424 191596
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 conditions, performances and achievements of
Wirecard AG may differ substantially from those expressed in such explicit or implicit statements. Wirecard AG makes these statements at the time of the publication of
the presentation and is under no obligation to update the forward-looking statements in this presentation including on receipt of new information or on occurrence of
future events or for other reasons. However, Wirecard AG, may change in its own free discretion any forward-looking statements should relevant factors change.
The forward-looking statements from third parties’ surveys, in particular without being limited to research reports and analysts’ statements, may prove to be incorrect.
Reference to such third parties’ surveys is provided for information only and does not imply any agreement with or consent to the content of such surveys or the
information, opinions or conclusions contained therein. Wirecard AG accepts no liability for the selection, completeness or correctness of third parties’ studies.
Wirecard AG mostly publishes its figures in millions of euro (EUR m). The use of rounding means that it is possible that some figures do not add up exactly to form the
totals stated, and that the figures and percentages do not exactly reflect the absolute values on which they are based.
This presentation is no offer for the sale and no invitation for offers of purchase or for subscription to of shares of Wirecard AG but is provided for information only.
Financial data (IAS/IFRS) refers to the Reports of Wirecard AG published on our website: ir.wirecard.com
© Wirecard 2019 27
