#1wirecard Investor Presentation Q3/9M 2019 results, 6 November 2019 BENESEN#2O Wirecard 2019 € 124.2 bn Transaction volume 9M 2019 313 k Merchants Highlights Wirecard is one of the fastest growing financial commerce platforms that offers merchants and consumers a continuously expanding payment ecosystem over an integrated B2B2C approach. ६. 2#3Global Megatrends Driving Wirecard's Strategy 7 Global payment megatrends... Cashless World the shift from cash to plastic and virtual money - driven by regulators, supply and demand Artificial Intelligence the first ever possibility to derive actionable insights from big data O Wirecard 2019 Internet Technology & IOT taking over new areas such as production and retail Borderless Payments driven by global trade, travel and politics Financial Inclusion Increasing demand and supply for unbanked and underbanked people Frictionless Customer Experience driven by convergence of payment channels and customer expectations New Mobility Concepts and technologies will allow increasing digitalization of the industry ...driving our strategy 3 1 Globalization of own footprint, customers and services 2 Constantly extend value chain with innovative value adding solutions Driving convergence between online, mobile and POS front- ends using innovative internet technology W 3#4Value-added services in digital banking Credit O Wirecard 2019 Transaction / Mobile banking DS Peer-to-peer / B2B Financial Platform boon. White label / Co-branding Call center ♡ Artificial intelligence Issuing AMERICAN EXPRESS mastercard VISA UATP WeChat Pay Alipay PayPal Big data Mobile wallet Acquiring wirecard White label / Co-branding Wys Analytics / RFM analysis 7 Doll % Loyalty / Couponing / Dynamic pricing Risk management ६. Value-added services to increase topline 4#5Transaction Volume in EUR billion 90.2 9M 2018 310.1 37.7% yoy 9M 2018 Operating Cash Flow (adjusted) in EUR million 124.2 57.0% yoy 9M 2019 486.8 9M 2019 Key Figures 1,420.1 9M 2018 257.3 Revenues* in EUR million 9M 2018 36.7% yoy Free Cash Flow in EUR million 1,941.3 60.0% yoy 9M 2019 411.8 9M 2019 399.8 9M 2018 EBITDA* in EUR million 38.4% yoy 553.1 9M 2019 EBITDA guidance of EUR 765-815 million for FY 2019 * Some of the amounts disclosed for 2018 differ from the figures in the quarterly statement as of 30 September 2018 due to adjustments made in accordance with IAS 8. O Wirecard 2019 W 01 5#6■ Transaction Volume in EUR billion 90.2 9M 2018 Organic and M&A Related Growth 33.2% organic 4.1 120.1 9M 2019 ▪ Total transaction volume is up EUR 34.0 bn, representing 37.7% of growth yoy Strong organic growth of 33.2% yoy, up EUR 29.9 bn ■ Total M&A added EUR 4.1 bn - merchant acquiring services of Citigroup in APAC added EUR 4.1 bn (India, Australia & New Zealand) 1,420.1 ■ 9M 2018 Revenue* in EUR million 34.8% organic 26.9 1,914.4 9M 2019 ▪ Total revenue is up EUR 521.2m, representing 36.7% of growth yoy Strong organic growth of 34.8% yoy, up EUR 494.3 m ▪ Total M&A added EUR 26.9 m - merchant acquiring services of Citigroup in APAC added EUR 26.9 m (India, Australia & New Zealand) 399.8 9M 2018 EBITDA* in EUR million 38.1% organic 1.0 552.1 9M 2019 * Some of the amounts disclosed for 2018 differ from the figures in the quarterly statement as of 30 September 2018 due to adjustments made in accordance with IAS 8. O Wirecard 2019 Strong organic growth of 38.1% yoy, up EUR 152.3 m ▪ Total EBITDA is up EUR 153.3 m, representing 38.4% of growth yoy ६. M&A Organic ■ Total M&A added EUR 1.0 m - merchant acquiring services of Citigroup in APAC added EUR 1.0 m (India, Australia & New Zealand) 6#7Transaction volume by geographies € O Wirecard 2019 Merchant View Transaction volume* by geographies** and industry 9M 2019 € 58.6 bn Europe € 65.5 bn Outside Europe * Transaction volume: mainly acceptance and issuing means of payment along with associated value-added services Geographic view: based on merchant location Transaction volume industry allocation Consumer goods 46.5% up EUR 14.5 bn 33.4% yoy growth Digital goods 37.9% up EUR 16.9 bn 56.0% yoy growth Travel & mobility 15.6% up EUR 2.6 bn 15.8% yoy growth ६. 7#8Customer Gains and Partnerships Examples of customer gains, business extensions and new partners in the first nine months of 2019 الأنصاري للصرافة AL ANSARI EXCHANGE BJK 1903 EMAG IKEA blutv CREDIT PILOT lastminute.com salesforce AFFINBANK O Wirecard 2019 MERLIN LEROY3 ALDI emonvia Rakuten Viber ALDI SÜD CREDIBLY K 2 Amway ANA, credibility.com . Ctrip =3 getnow.de KaDeWe Käfer ENUYGUN oney APOLLO ΟΡΤΙΚ Brightstar DIE POST DIE POST doka ELUSH RETAIL GROUP RBLBANK ЯК OYO PARADISE Orange 樂天餐飲集團 Money TALLINK Tirol twisto UnionPay united 联合货币型 银联 AUTO 1 GROUP GONG CHA tea.coffee.juice SEGMÜLLER ses imagotag S Sisal STOCKMANN Shopee P.F.C. -BASF The Chemical Company PRINTEMPS KAREN MILLEN WHSmith mBills PETROL HTT Bäckereit 1930 MIZUHO RENGANA الخطوط الملكية المغربية royal air maroc SunExpress swatcha XBN YES BANK ६. 8#9■ Functionality today: Digital Bank Account ▪ Free virtual & physical debit Mastercard Personal finance management ■ ■ boon.PLANET Evolution First payment app with fully digital neo-banking services launched in Europe A fully comprehensive digital bank account Peer-to-peer money transfer O Wirecard 2019 ▪ White label or co-branded solution for existing and future corporate partners 1 All Accounts ✓ TRANSACTIONS 3 New + INCOME & EXPENSES 00⁰ Management BALANCE 13,300,52 € LOIT CATEGORIES YI B if 9:00 PM 8.808 -234.10 € 2 Functionality tomorrow: Global Financial Service Platform ▪ Credit / overdraft allowance ■ I Loyalty Mobility & leisure services ▪ Insurance / mobile insurance ■ Saving plans ६. boon. 9#10E Market Entry China Acquisition of a controlling stake of 80% in Beijing-based AllScore Payment Services; Call Option to acquire remaining 20% stake after two years Unique license portfolio for a foreign investor in China, including a cross-border license Strong growth potential by supporting Chinese and international merchants in their business inside and outside of China and offering cost-efficient fund-repatriation 125 payment experts led by a seasoned, fully committed and well connected management team Maximum consideration of up to EUR 109.3 million: Capital Increase in AllScore of EUR 10.4 million Closing cash payments of up to EUR 62.0 million Earn-out payment of up to EUR 16.7 million (subject to EBITDA targets in FY 2020) Call option amount of up to EUR 20.2 million (subject to post-closing EBITDA targets) I ■ ■ ■ After an integration phase in FY 2020, Wirecard projects to generate EBITDA contributions of more than EUR 35 million in FY 2021 and more than EUR 50 million in FY 2022 O Wirecard 2019 ६. 10#11Local Acquiring & Repatriation International Acquiring & Repatriation Issuing Solutions O Wirecard 2019 Market Entry China Wirecard's Business Development Initiatives ▪ Local Acquiring to Wirecard's international merchant base, which gains access to Chinese consumers ▪ Acceptance of widely-used digital mobile payments ■ Repatriation of acquired funds to home country of merchant ▪ International Acquiring for AllScore's local merchant base and Chinese merchants recently and prospectively signed by Wirecard Repatriation of acquired funds to China ■ ▪ Wirecard's live prepaid merchant base in China will be serviced more cost-efficiently, helped by AllScore's Issuing license Develop business and travel Dual-Brand Prepaid Card with local and international schemes ■ ६. EBITDA FY 2022 > EUR 50 million 11#12Conshohocken** São Paulo** * Core global hubs ** * Regional hubs Wirecard's Operating Hubs O Wirecard 2019 One platform hosted globally and operated in various hubs Dublin* Munich* Dubai* Singapore** Financial Services Merchant settlement & payout processing ▪ Merchant billing & invoice generation ▪ Financial reconciliation ■ ६. 12#13Wirecard's unique global License Framework enabling strong conversion rates and global coverage Own licenses B 3rd party licenses 1 1 I I O Wirecard 2019 I III ▪ Full banking license Multiple e-money acquiring & issuing licenses Scheme licenses ■ Overview ▪ ~ 60 acquirers directly integrated (40 countries) ▪ ~ 100 acquirers via I routing partners (60 countries) ▪ 102 alternative payment solutions Coverage ▪ 33 countries ▪ 100 countries Key benefits for merchants ■ Best in class risk management on global platform ▪ Broad payment- and financial value-added service offering ▪ Simpler integration for merchants ▪ Extension of regional coverage for merchants ▪ Extended value chain offering for customers ■ I ६. Platform service offering in >100 countries By combining global algorithmic / risk management services and global license and payment solution framework Wirecard can deliver on average 5-10% improved conversion rates 13#14Description Volumes as of 31/3/2019 as of 30/6/2019 as of 30/9/2019 Overview: Value Added Services Digital Lending Fintech Loan ▪ Support Fintechs with liquidity for their own products O Wirecard 2019 Offered as service in addition to WD platform, banking license, etc. I I Different Lending Products Digital Credit ▪ Access to liquidity and working capital for merchants Customized credit based on historical and future expected transactions, as well as other scoring models EUR 330m EUR 335m EUR 360m I I I I 1 I I I I T I T 1 I I 1 I T T I T I T I T I I I I Merchant Cash Advance Early settlement to the merchant to improve liquidity Scoring based on historic trans- actions and other scoring models ~EUR 400m ~EUR 370m ~EUR 320m ६. 14#15O Wirecard 2019 Outlook ६. 15#16Generating New Business Models... by combining digital acquiring, issuing and financial services Customer touchpoints At the cashier Open- and closed loop acceptance, DCC, tax free, loyalty, soft terminals & integration In the aisle Self-checkout, mobile POS, App checkout, digital store assistant On the net & mobile Checkout pages, API & seamless payment, shop plugins O Wirecard 2019 Payment acceptance Fintech Access to market through international license network, open banking ecosystem Integrated payment and data streams wirecard Business models in B2C, B2B and B2B2C evolve towards a unified view on the transaction Financial licenses Payment issuance Customer engagement channels Payment instruments Prepaid or credit, mobile money, closed loop / gift / loyalty cards ६. Consumer accounts Bank accounts, credit solutions, personal finance management Real-time engagement Big data analytics and targeting, personalized offers and pricing, interactive mobile channels Banks Operation of licensed and regulated banking back-end, technology enablement 16#17Smart terminals Card schemes Wirecard's omnichannel offering to further increase conversion rates M-POS solution O Wirecard 2019 Data Driven Services T. Location Algorithmic Layer Data Source Artificial Intelligence 300 Alternative payments ooooo oooo DOD O Cashier In store tablets ६. E-Commerce 9: 17#18Market Environment Cashless payments expected to grow by around 14 percent per year up to 2021* O Wirecard 2019 * Capgemini: World Payments Report 2018 Ongoing digitalisation Convergence of all sales channels Real-time payments Transition from cash to electronic payments ६. 18#19O Wirecard 2019 Company Guidance FY 2020 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 1.00 -1.12 billion for FY 2020 ६. 19#20Revenues, in EUR bn 2025 Shift towards Al-enabled value-added and financial-added services ... Payments O Wirecard 2019 Our Visionary Playing Field 30% Value-added services (incl. Al-enabled) 45% * Free cashflow conversion based on EBITDA Financial- added services Other 22% 3% >12 Vision 2025 ... raises our long-term financial aspirations Transaction Volume (EUR bn) Revenues (EUR bn) EBITDA (EUR bn) FCF conversion * 125 2018 2 2018 0.6 2018 31% yoy 29% yoy 31% yoy >810 710 2025 >12 10 2025 >3.8 3.3 2025 >65% ६. 20#21O Wirecard 2019 Financials ६. 21#22in EUR million Financial Highlights Revenues EBITDA EBIT adjusted* EBIT Income tax expenses Earnings after taxes Earnings per share (basic and diluted) in EUR Cash flow from operating activities (adjusted) Total equity Total equity and liabilities Employees as of 30 Sept 2019 and 30 Sept 2018 thereof full-time employees thereof part-time employees * Adjusted for amortisation (M&A related) ** Some of the amounts disclosed for 2018 differ from the figures in the quarterly statement as of 30 September 2018 due to adjustments made in accordance with IAS 8. *** As of 31 December 2018 O Wirecard 2019 9M 2019 1,941.3 553.1 476.9 450.9 49.4 386.7 3.13 486.8 2,314.8 7,001.5 5,809 5,450 359 9M 2018** 1,420.1 399.8 350.3 321.4 53.0 252.4 2.04 310.1 *** 1,922.7 *** 5,854.9 5,269 4,933 336 Change 36.7% 38.4% 36.1% 40.3% -6.8% 53.2% 53.4% 57.0% 20.4% 19.6% 10.2% 10.5% 6.8% W 22#23in EUR million Revenues Own work capitalised Cost of materials Gross profit Consolidated statement of profit or loss Personnel expenses Other operating expenses Impairment losses of financial assets Other operating income Share of profit or loss from associates (at equity) EBITDA Amortisation and depreciation EBIT Financial result Earnings before tax Income tax expenses Earnings after tax EBITDA Amortisation and depreciation (M&A adjusted) EBIT adjusted Amortisation and depreciation (M&A related) EBIT 9M 2019 1,941.3 32.4 1,039.8 933.9 213.4 156.5 18.8 8.0 -0.1 553.1 102.2 450.9 -14.8 436.1 49.4 386.7 553.1 76.3 476.9 25.9 450.9 in % of revenues 53.6% 48.1% 11.0% 8.1% 1.0% 0.4% 0.0% 28.5% 5.3% 23.2% 11.3% 19.9% 28.5% 3.9% 24.6% 1.3% 23.2% 9M 2018* 1,420.1 31.1 767.0 684.2 172.0 105.6 13.4 7.0 -0.4 399.8 78.4 321.4 -16.0 305.4 53.0 252.4 399.8 49.4 350.3 28.9 321.4 Some of the amounts disclosed for 2018 differ from the figures in the quarterly statement as of 30 September 2018 due to adjustments made in accordance with IAS 8. O Wirecard 2019 in % of revenues* 54.0% 48.2% 12.1% 7.4% 0.9% 0.5% 0.0% 28.1% 5.5% 22.6% 17.4% 17.8% 28.1% 3.5% 24.7% 2.0% 22.6% W 23#24Consolidated statement of financial position Assets in EUR million Goodwill Customer relationships Internally-generated assets Other intangible assets Property, plant and equipment Investments (equity method) Fin. and other assets Deferred tax assets Total non-current assets Inventories and work in progress Receivables of acquiring business Trade and other receivables Tax credits Interest bearing securities Cash and cash equivalents Total current assets Total assets O Wirecard 2019 30 Sept 2019 725.9 445.2 150.7 118.8 105.1 13.9 386.2 11.9 1,957.7 7.1 732.8 430.5 34.3 551.6 3,287.4 5,043.8 7,001.5 31 Dec 2018 705.9 452.1 138.2 113.3 81.5 14.0 413.6 10.8 1,929.4 10.6 684.9 357.4 13.1 139.6 2,719.8 3,925.5 5,854.9 Equity and liabilities in EUR million Total equity Non-current interest-bearing liabilities Other non-current liabilities Deferred tax liabilities Total non-current liabilities Liabilities of the acquiring business Trade payables Interest bearing liabilities Other provisions Other liabilities Customer deposits bank Tax provisions Total current liabilities Total liabilities Total equity and liabilities 30 Sept 2019 2,314.8 1,657.7 145.0 78.7 1,881.3 578.6 78.8 127.7 31.3 211.9 1,719.2 58.0 2,805.4 4,686.7 7,001.5 W 31 Dec 2018 1,922.7 1,348.7 163.8 80.1 1,592.6 651.9 63.4 117.4 18.5 186.6 1,263.0 38.9 2,339.6 3,932.2 5,854.9 24#25in EUR million 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 3,287 Cash and cash equivalents 2 Interest bearing securities O Wirecard 2019 Net cash bridge 9M 2019 1,163 Receivables of acquiring business & Trade and other receivables * Customer deposits bank break down in EUR million Customer deposits - balance sheet amount thereof in long-term interest bearing securities thereof in interest bearing securities and fixed-term deposits Customer deposits relevant for net cash calculation -340 Current interest bearing liabilities/other liabilities -1,168 Customer deposits bank* 30 September 2019 1,719 0 -552 1,168 -657 Liabilities of acquiring business and trade payables 2,289 Net cash position short term - Wirecard 384 Non-current financial assets -1,803 Non-current interest bearing liabilities/ other liabilities 870 Net cash position long term - Wirecard W 25#26Cash flow and income tax analysis in EUR million Cash flow from operating activities (adjusted) Operative capex Free cash flow Earnings after taxes Cash conversion in % in EUR million Earnings before tax Income tax expenses thereof deferred tax expenses/income thereof effective tax expenses Net cash outflow arising from income tax thereof income tax 9M 2019 436.1 -49.4 0.1 -49.5 -46.1 -46.1 9M 2019 486.8 -75.0 411.8 386.7 106.5 in % of EBT 11.3% 0.0% 11.3% 9M 2018 310.1 -52.8 257.3 252.4 102.0 * 9M 2018 * 305.4 -53.0 -21.0 -32.0 -44.0 -44.0 Change 57.0% 42.0% 60.0% 53.2% in % of EBT 17.4% 6.9% 10.5% * Some of the amounts disclosed for 2018 differ from the figures in the quarterly statement as of 30 September 2018 due to adjustments made in accordance with IAS 8. O Wirecard 2019 W 26#27Wirecard AG board commissioned independent w review conducted by KPMG Review scope ▪ Accusations raised by the British newspaper "Financial Times" ▪ Allegations regarding 3rd party acquiring business particularly Al Alam ■ Allegations regarding certain aspects of Merchant Cash Advance business Release The report will be published as soon as the independent review has been completed The report will be made available on the company website (subject to data protection regulations) ■ ■ Timeline KPMG review has started Approximately end of Q1 2020 O Wirecard 2019 Independent KPMG reporting to Wirecard AG Supervisory Board 27#28In EUR million RCF* Public Bond Convertible Bond Softbank 1,570 30 Jun 2019 Financing structure Main Funding Sources of Wirecard Group 500 1,140 30 Sept 2019 * Respective utilizations of the Revolving Credit Facility in the total amount of EUR 1.75bn O Wirecard 2019 900 500 800 6 Nov 2019 The proceeds of the EUR 900 million convertible bond have been partially used - Repayment of RCF utilizations (EUR 340 million) - Share Buyback program: up to EUR 200 million - The remainder will be invested in innovative payment and financial services ६. 28#29Wirecard Share Buyback Program Authorization was resolved by the annual general meeting on 20 June 2017 for 12,356,558 shares Start date: 5 November 2019 ▪ The shares will be bought back within a twelve-month period (end date 5 November 2020) under the following conditions: ▪ Total number of shares: up to 2,500,000 Maximum amount: EUR 200 million (excluding acquisition expenses) The share buyback will be carried out in accordance with the Safe Harbor Rules O Wirecard 2019 ६. 29#30Compliance update and embedded strategy Governance implementation O Wirecard 2019 Empowered compliance organization Establishment of an uniform compliance culture globally Risk taxonomy (definition and prioritization of risk types) Compliance and risk strategy aligned with Vision 2025 ६. 30#31Investor Relations Iris Stöckl VP Corporate Communications/Investor Relations [email protected] T: +49 (0) 89 4424 1788 [email protected] Susanne Herrle Principal Investor Relations Manager [email protected] T: +49 (0) 89 4424 1223 Claudia Mendrek Junior Investor Relations Manager [email protected] T: +49 89 4424 192189 O Wirecard 2019 Stephanie Malgara Senior Manager Investor Relations [email protected] T: +49 (0) 89 4424 191348 Kristin Kleine Beerink Investor Relations Manager [email protected] T: +49 (0) 89 4424 1734 ६. 31#32६. Disclaimer "This presentation has been prepared by Wirecard AG (the "Company") and is for information purposes only. This presentation contains only summary information and does not purport to be, nor is it intended to be, comprehensive. The information in this presentation has not been independently verified. No representation or warranty, express or implied, is made as to the accuracy or completeness of the presentation and the information contained herein and no reliance should be placed on such information. No responsibility is accepted for any liability for any loss howsoever arising, directly or indirectly, from this presentation or its contents. This presentation does not constitute, or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company, 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 Company, nor shall it or any part of it form the basis of or be relied upon in connection with any contract or commitment whatsoever. In particular, this presentation does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for securities of the Company to any person in Australia, Canada, Japan, or the United States of America or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities of the Company may not be offered or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, any securities of the Company may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. This presentation may contain forward-looking statements relating to the business, financial performance and results of the Company and the industry in which the Company operates. Any forward- looking statements contained in this presentation, including any assumptions, opinions and views of the Company and information attributed to or summarized from third party sources, represent solely opinions and forecasts which are subject to risks and uncertainties. Actual events may differ significantly from current expectations or assumptions due to many factors. The Company does not guarantee that the assumptions underlying the forward-looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecasted developments. The statements in this presentation are made only as of the date of this presentation. The Company does not undertake any obligation to review, update or confirm third-party's expectations or estimates or to release publicly any revisions to any forward-looking statements in this presentation to reflect subsequent events or circumstances that may arise in relation to the content of this presentation. Consequently, neither the delivery of this presentation nor any further discussion of the Company with any of the recipients thereof shall under any circumstances create any implication that there has been no change in the affairs of the Company since such date. This presentation may also include references to non-IFRS financial measures. We have provided these financial measures and other information in this presentation because we believe they provide investors with additional information to assess our performance. Our use of these supplemental financial measures may vary from others in our industry and should not be considered in isolation or as an alternative to our results as reported under IFRS. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures." O Wirecard 2019 32