2024 vision:
A premium global Paytech company
at the heart of the European payment ecosystem
2022-2024 organic ambition:
Revenue: 9% to 11% CAGR1
OMDA: above 400bps improvement over the period
FCF: circa 50% OMDA conversion by 2024
Continued focus on consolidation
and growth-enhancing acquisitions
Bezons, October 27, 2021 –
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.
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
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.
In Financial Services, the Group has more than doubled its size, positioning
Through this transformation journey,
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
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
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.
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
This open-innovation model is based on the combination of the Group internal capabilities on core payments from
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
By connecting and simplifying the access to 15% of European merchants in a very complex environment in terms of payment methods and VAS,
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,
Financial Services – The pan-European digital payment factory
In Financial Services,
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
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’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
Delivering a leading CSR performance
Since its IPO in 2014,
Based on the success of TRUST 2020, reflected through a high level of achievement,
Furthermore, TRUST 2025 is the concrete expression of Worldline’s Sense of Purpose, adopted in 2019.
To ensure creating sustainable value for all stakeholders,
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,
The payment market still offers a lot of opportunities, and
- 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
+33 7 84 50 18 90
laurent.marie@worldline.com
+33 6 75 51 41 47
benoit.damecourt@worldline.com
Communication
+32 499 585 380
sandrine.vanderghinst@worldline.com
+33 7 72 25 96 04
helene.carlander@worldline.com
About
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.
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
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.
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
1 Compound Annual Growth Rate
2 Compound Annual Growth Rate
3 Subject to appropriate social process
Attachment
Worldline - 2021 Investor Day - Press release
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