Worldline - 2021 Investor Day
2024 vision:A premium
global
Paytech
companyat the heart of the European
payment ecosystem
2022-2024
organic
ambition:Revenue:
9% to 11% CAGR1OMDA:
above 400bps improvement
over the
periodFCF:
circa
50% OMDA
conversion by 2024
Continued focus on
consolidationand
growth-enhancing
acquisitions
Bezons,
October
27, 2021 –
Worldline [Euronext: WLN], leader in the payments industry,
holds today an Investor Day to present its 2024 vision and its
financial ambition for the 2022-2024 period, reflecting the Group
unrivaled position, value proposition, scale and reach across the
full payment value chain which has been achieved thanks to the
successful transformation journey since IPO.
Gilles Grapinet, Worldline’s
CEO, said: “I am very proud of the successful
transformation of Worldline achieved over the last years,
delivering our ambition set at the time of the IPO in 2014 with the
creation of a real pan-European leader. Today, the Group has an
unrivaled positioning with scale and reach coupled with a
comprehensive coverage of the payment value chain bringing value to
our clients. This was achieved with a solid growth creating
sustainable value to all our stakeholders.
But these achievements are only a first
milestone and today we present our ambitions for the next 3 years,
leveraging the unique position created over the years at the heart
of the European payment ecosystem. Worldline will rely in
particular on the unique market positioning of its two main Global
Business Lines while accelerating its investment in the Group
technology stack to take advantage of the very favorable post-covid
digital payment market.
Our single entry-point positioning for both
merchants and banks, supported by our open-innovation expertise,
will contribute alongside our multiple growth engines to the
acceleration of our organic growth towards the double-digit
territory. Coupled with a strong operating leverage and the
execution of all integration and synergy plans, it will boost our
profitability to trend towards 30%. Being the leading European
consolidator, we will also keep a strong focus on M&A and
growth-enhancing acquisition opportunities and leverage our
recognized track-record and repeatable integration playbook.
Taking the full advantage of our European
identity and associated competitive differentiators, we are
committed to execute our vision establishing Worldline as a premium
global Paytech.”
A Group deeply
transformed
Since 2014, the Group has made real its ambition
set at the IPO by successfully
executing its
strategy and achieving a significant growth and a deep
transformation of its business profile to create a real
pan-European leader with an unrivaled scale and reach.
Worldline evolved from a regional challenger to
a pan-European leader. This transformation has been particularly
important for Merchant
Services activities now weighting
for two-thirds of the Group annual revenue with more than € 2
billion revenue compared to one-third at IPO time.
Worldline has multiplied by more than 15 times
since 2014 its merchants’ portfolio, making it the largest in
Europe. The Group strongly expanded its online
expertise which is now mandatory for its merchant
customers, as online is today a key differentiating factor that
Worldline couples seamlessly with its leading instore
capabilities, providing a true omnichannel
offering at scale. It positions Worldline as an
unrivaled
entry-point to
c. 15% of the European retail and
the best partner for any payment brands willing
to address the European retail at scale.
In Financial
Services, the Group has more than
doubled its size, positioning Worldline as a key partner for banks
willing to optimize the competitiveness and quality of their
payment processing activities with a clear value-added
provider. This positioning is fully reflected in the
industrial volumes of cards under
management (126 million) and acquiring transactions (11 billion per
year) that the Group processes every year, making Worldline one of
the largest acquirers and transaction processor in Europe.
Through this transformation journey,
Worldline has tripled
its revenue, thanks to an
organic growth accelerating from
low to high single-digit and by delivering successful
accretive M&A operations, enlarging the Group
footprint and value proposition.
The profitability was also
strongly enhanced over the same period with an
improvement of the OMDA margin by +730 basis
points. This was achieved thanks to an improved operating leverage
derived from an enhanced scale coupled with continuous efficiency
gains and the strong execution in synergies delivery of acquired
perimeters, based on an unmatched integration know-how.
This strong financial performance enabled the
Group to create distinct and sustainable value for all Worldline’s
stakeholders, clients, partners, employees and shareholders, as
notably reflected in a more than four-fold share price increase
since IPO and a nine-fold increase in market capitalization. It
demonstrates the strong support
of Worldline’s
shareholders which allowed the Group to
pursue its consolidation path of
the European payment industry by financing in shares most of its
transformative operations.
Ideally positioned in
a dynamic
market
Worldline main playground, the
European payment market, is still
cash driven, allowing Worldline to leverage the
cash-to-card shift in several countries. In
addition, this market is large, but contrary to the US,
fragmented in terms of number of players as well
as payment means. The European market is also still mainly owned by
banks with local specificities, offering to the Group strong growth
opportunities.
In parallel, the current ecosystem faces very
different trends and new behaviors that have been accelerated by
the Covid pandemic. The market faces today a multiplicity of
payment means that need to be connected and simplified for the
merchants while improving the user experience on the consumer side.
In this evolving context, all parts of the chain need
to be
connected and
influenced each
other.
These payment trends highlight the
relevance of Worldline positioning, able to offer
one innovative interface
serving merchants and banks at scale.
2024 vision
To deliver Worldline’s 2024 vision of building a
premium global Paytech company at the heart of the European payment
ecosystem, the Group will leverage its unrivaled and unique
positioning built over the past 10 years. Worldline will accelerate
the development of its open-innovation model, the orchestration of
the payment ecosystem, and the monetization of its unique
positioning. In parallel, Worldline will leverage the privileged
market positioning of its two main Global Business Lines, relying
on its unique target modular platform architecture while pursuing
to ensure Worldline as a leading CSR company creating sustainable
value for all stakeholders.
Innovate, orchestrate &
monetize
The 16,000
payment experts
and talents of the Group and the
strong leadership team will ensure the delivery of
the best and most comprehensive payment offerings thanks to
Worldline open-innovation expertise, embracing current and coming
payment trends.
This open-innovation model is based on the
combination of the Group internal capabilities
on core payments from Worldline
Labs with the integration as a single entry-point of
external innovation coming from the payment
ecosystem dynamics. As such, the Group remains focused on its core
platform and R&D features, while onboarding on
its platform with the integration of APIs the most
innovative providers in payment such as APMs, Cryptos, BNPL
solutions, Open banking solutions or ISV products.
This global approach is very strong, enriching
Worldline’s offering portfolio offerings with the best solutions to
bring value to merchants and banks.
Merchant Services – The payment
ecosystem orchestrator
Merchant Services’ global
footprint and unrivaled access to more than 1
million merchants position Worldline as the
European payment ecosystem
orchestrator, offering a single
entry-point to the
European retail.
By connecting and simplifying the access to 15%
of European merchants in a very complex environment in terms of
payment methods and VAS, Worldline makes available a strong and
efficient platform providing scale benefits to its clients and
partners, while leveraging one modular platform with a clear and
unmatchable value proposition. The Group’s unique and unrivaled
multi and omni channel offerings
support the merchants in the physical world and in the digital
space with seamless and bundled solutions improving user
experience.
This support is not only local, but also
international and cross-border with full end-to-end solutions,
focusing on dedicated sales channels providing SMBs, specialized
vertical and digital native players with the best solutions.
Based on a real and proven sparring partner
positioning for banks, Worldline positions as the best alternative
for banks to extract value from their merchant books while offering
the most advanced and competitive solutions to their
end-clients.
Financial Services – The pan-European
digital payment factory
In Financial Services, Worldline has built an
unmatched pan-European digital payment factory
based on one Worldline modular platform to deliver at scale and
with a global reach all the payment methods
available. Worldline brings
efficiencies and reduces the overall
opex and capex burden of banks
through optimization of
operations. It also removes the complexity of banks’
compliance issues, managing these on their behalf.
This unique value proposition for banks
guarantees them the most
up-to-date
innovation for their customers, by simplifying the
integration of the most updated Fintechs solutions and VAS,
onboarded in real time on Worldline’s scalable platform with an
unmatched level of security.
It positions Worldline as a compulsory
partner for banks willing to optimize at scale their
processing activities with unmatched and efficient value
propositions.
A unique target modular platform
architecture
The value proposition in Merchant and Financial
Services is strongly supported by a unique target modular platform
architecture, aggregating the full payment ecosystem in one
single entry-point. Worldline one platform benefits from
an availability of all components, leveraging the best-of-breed
modules in portfolio, inherited from the past acquisitions.
Worldline’s unique platform architecture relies
on the development of a strong technology
convergence including the cloudification
and the integration of APIs, allowing a
high-quality
open-innovation
to the ecosystem. This integrated, simple
and modular infrastructure is operated by Worldline to
maximize all the benefits to its clients and partners, while
delivering efficiency and growth opportunities.
Delivering a leading CSR
performance
Since its IPO in 2014, Worldline has been
committed to a voluntary CSR approach reflecting
compliance, transparency and a high level of engagement towards its
stakeholders. This approach has been strongly supported by the
success of the TRUST 2020 CSR transformation
program which has revealed as a key enabler for mobilizing
the whole organization to respond effectively to all core CSR
challenges of the payment industry and to boost the Group CSR
performance.
Based on the success of TRUST 2020, reflected
through a high level of achievement, Worldline has launched
TRUST 2025, a new 5-year CSR roadmap aimed at
maintaining Worldline’s CSR leadership through an integrated model.
This new chapter in Worldline’s CSR journey aims to confirm and
accelerate the progress made in terms of CSR on
all the most critical and strategic challenges in the areas of
business, people, ethics & value chain and environment,
improving further the Group’ competitive advantage.
Furthermore, TRUST 2025 is the concrete
expression of Worldline’s Sense of Purpose, adopted in 2019.
To ensure creating sustainable value for all
stakeholders, Worldline will continue to regularly report
on its achievements towards its nine commitments for 2025
through 19 KPIs defined with specific and measurable targets to be
reached by 2025.
2022-2024 organic ambition
The Group ambitions to deliver:
- Revenue growth: 9%
to 11% CAGR2
- OMDA margin: above
400 basis points improvement over the 2022-2024 period, trending
towards 30% of revenue by 2024
- Free cash flow: c.
50% OMDA conversion rate by 2024
Market consolidation – a growth and
profitability accelerator
Over the past 10 years, Worldline has been the
most proactive and successful player in the European market
consolidation. By doing so, the Group developed unmatched
integration capabilities, applying its scalable and repeatable
playbook with a strong and knowledgeable integration team,
maintaining the expertise and enhancing the methodology deal after
deal. It also highlights the Group’s ability to deliver the
consolidation and integration processes allowing a precise
implementation and tracking of synergies, enabling it to
overachieve initial integration targets.
The payment market still offers a lot of
opportunities, and Worldline is ideally positioned to capture them.
The Group’s focus is three-folded:
- First, enrich and expand
Worldline’s geographical footprint targeting specific regions,
while leveraging a bank partnership approach;
- Second, improve and preempt new
trends through technologies and products acquisitions to reinforce
Worldline’s innovation portfolio or exploring new adjacencies;
- And third, be ready to capture
medium to large size opportunities coming from large banks or pure
payment players.
This inorganic development ambition is largely
executable on a financial standpoint, thanks to the Group’s strong
cash generation and steady deleveraging profile.
Appendices
Webcast
You are kindly invited to attend to Worldline’s
2021 Investor Day that will be fully webcasted on the event
page.
After the event, all the related content will be
available on this page, including the recording of the
presentations.
For more information, visit Worldline’s investors
microsite.
Forthcoming
events
- February 22,
2022 FY 2021
results
- April 27,
2022 Q1
2022 revenue
- July 27,
2022 H1
2022 results
- October 25,
2022 Q3 2022
revenue
Contacts
Investor
Relations
Laurent Marie+33 7 84 50 18
90laurent.marie@worldline.com
Benoit d’Amécourt+33 6 75 51 41
47benoit.damecourt@worldline.com
Communication
Sandrine van der Ghinst+32 499 585
380sandrine.vanderghinst@worldline.com
Hélène Carlander+33 7 72 25 96
04helene.carlander@worldline.com
About
Worldline
Worldline [Euronext: WLN] is the European leader
in the payments and transactional services industry and #4 player
worldwide. With its global reach and its commitment to innovation,
Worldline is the technology partner of choice for merchants, banks
and third-party acquirers as well as public transport operators,
government agencies and industrial companies in all sectors.
Powered by over 20,000 employees in more than 50 countries,
Worldline provides its clients with sustainable, trusted and secure
solutions across the payment value chain, fostering their business
growth wherever they are. Services offered by Worldline in the
areas of Merchant Services; Terminals, Solutions & Services;
Financial Services and Mobility & e-Transactional Services
include domestic and cross-border commercial acquiring, both
in-store and online, highly secure payment transaction processing,
a broad portfolio of payment terminals as well as e-ticketing and
digital services in the industrial environment. In 2020 Worldline
generated a proforma revenue of 4.8 billion euros.
worldline.com
Worldline’s corporate purpose (“raison d’être”)
is to design and operate leading digital payment and transactional
solutions that enable sustainable economic growth and reinforce
trust and security in our societies. Worldline makes them
environmentally friendly, widely accessible, and supports social
transformation.
Disclaimer
This document contains forward-looking
statements that involve risks and uncertainties, including
references, concerning the Group's expected growth and
profitability in the future which may significantly impact the
expected performance indicated in the forward-looking statements.
These risks and uncertainties are linked to factors out of the
control of the Company and not precisely estimated, such as market
conditions or competitors’ behaviors. Any forward-looking
statements made in this document are statements about Worldline’s
beliefs and expectations and should be evaluated as such.
Forward-looking statements include statements that may relate to
Worldline’s plans, objectives, strategies, goals, future events,
future revenues or synergies, or performance, and other information
that is not historical information. Actual events or results may
differ from those described in this document due to a number of
risks and uncertainties that are described within the 2020
Universal Registration Document filed with the French Autorité des
marchés financiers (AMF) on April 13, 2021 under the filling
number: D.21-0303 and its Amendment filed on July 29, 2021 under
the filling number: D. 21-0303-A01.
Following the Board of Director’s validation of
the strategy to divest TSS (Terminals, Solutions & Services)3,
this activity is accounted for under IFRS 5 as discontinued
operation. As such, the Group’s financial ambition for the
2022-2024 period and the whole content of this press release
exclude those of TSS.
Revenue organic growth and Operating Margin
before Depreciation and Amortization (OMDA) improvement are
presented at constant scope and exchange rate. OMDA is presented as
defined in the 2020 Universal Registration Document. All amounts
are presented in € million without decimal. This may in certain
circumstances lead to non-material differences between the sum of
the figures and the subtotals that appear in the tables. 2021
objectives are expressed at constant scope and exchange rates and
according to Group’s accounting standards.
Worldline does not undertake, and specifically
disclaims, any obligation or responsibility to update or amend any
of the information above except as otherwise required by law.
This document is disseminated for information
purposes only and does not constitute an offer to purchase, or a
solicitation of an offer to sell, any securities in the United
States or any other jurisdiction. Securities may not be offered or
sold in the United States unless they have been registered under
the U.S. Securities Act of 1933, as amended (the “U.S. Securities
Act”) or the securities laws of any U.S. state, or are exempt from
registration. The securities that may be offered in any transaction
have not been and will not be registered under the U.S. Securities
Act or the securities laws of any U.S. state and Worldline does not
intend to make a public offering of any such securities in the
United States.
1 Compound Annual Growth Rate2 Compound Annual
Growth Rate3 Subject to appropriate social process
- Worldline - 2021 Investor Day - Press release
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