Investor Presentaiton
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 Nexi
Group 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:
○ Operating Revenue grew by a volume-driven 4.6% to €729m
○ 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
○ 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.
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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.
Cash Conversion defined as EBITDA less CapEx, as % EBITDA.
Net Leverage defined as Net Debt divided by LTM Adjusted EBITDA (See Listing Particulars for further information).
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