Worldline - Governance evolution and Trading Update

Worldline governance evolution and Trading Update

Departure of Gilles Grapinet as CEO and member of the Board

Marc-Henri Desportes appointed as CEO for an interim period

FY2024 guidance adjusted

Paris, La Défense, September 13, 2024

Governance Update

Following the meeting on September 12, 2024, the Board of Directors announced Gilles Grapinet's departure as Chief Executive Officer and member of the Board of Worldline effective 30 September 2024.

The Chairman of the Board together with the Nomination Committee and with the support of an international search agency, will take the lead in the search for a new Chief Executive Officer and assess internal and external candidates, as per best governance practices.

When appointed following the search, the new CEO will work closely with the Board to determine the new strategic plan, which will be communicated to the investment community at an appropriate time. The capital market day initially scheduled on November 26th has been postponed to allow the new CEO to contribute to the strategic planning process.

The Board has decided to appoint Marc-Henri Desportes, currently Deputy Chief Executive Officer and Head of Merchant Services, as Chief Executive Officer for an interim period according to the succession plan. In this role, Marc-Henri will be responsible for overseeing the company's day-to-day operations and implementing the Board's strategic decisions.

Along with this announcement, Worldline reiterates its continued focus on executing Power24. The plan aims to accelerate Worldline's transformation into a more client-centric company, drive innovation, enhance operational efficiency, and position the Group for stronger future growth and margin improvement.

Wilfried Verstraete, Chairman of Worldline’s Board of Directors, declared:

“On behalf of the Board of Directors and Group employees, I would like to thank the work performed by Gilles Grapinet as Chief Executive Officer of Worldline, moving the company forward as a leading global Paytech since its IPO, having provided the Group with a full pan-European footprint, a vast customer base and a unique network of strategic partnerships with leading financial institutions. Power24 and all our current major development initiatives will be pursued under the steer of Marc-Henri Desportes, whilst the next strategic plan of Worldline will be actively prepared to leverage all our remarkable assets for long-term development and strong value creation for all stakeholders.”

Gilles Grapinet declared:

“For more than a decade, it has been an honor for me to build Worldline as one of the leading players in the global digital payment industry, delivering on our strategic and technological vision to create a leading pan-European Paytech with global reach, to overcome the historical sector fragmentation and operate at the scale of the single market for the benefit of all our business partners. I express my deepest gratitude to all the stakeholders, in particular to all our managers and colleagues for their remarkable commitment, which made this achievement possible over these intense years. As Worldline enters a new phase, I am fully confident that Marc-Henri Desportes will pursue to successfully execute Power24 to adapt to the current challenges. By leveraging all its assets and talents, I am convinced that Worldline has a very solid future ahead.”

Guidance Update

Over the summer, Worldline experienced slow trading conditions coupled with specific performance issues in our Pacific business and on some global online verticals (e.g. travel).

As a result, additional action plans are being implemented, including measures on revenue generation and cash costs. Further detail will be provided during Worldline Q3 results announcement.

Worldline confirms that Power24 is fully on track to deliver circa € 220 million run-rate cash cost savings in 2025.

Consequently, Worldline resets its FY’24 guidance to reflect these developments:

• Revenue: c. 1.0% organic growth, which could increase subject to improved trading conditions
• Adjusted EBITDA: c. € 1.1bn
• FCF: c. € 0.2bn
  
  
  
  

Biography:

Marc-Henri Desportes

Since 2024, Marc-Henri Desportes has been managing the Merchant Services Global Business Line. After being General Manager in 2013, he was appointed in 2018 as Deputy CEO of Worldline to lead all its business lines and operations with an ambition to act every day to provide Worldline’s clients with sustainable, trusted and secure solutions across the payment value chain, fostering their business growth wherever they are. Marc-Henri is a graduate of the Ecole Polytechnique and of the Ecole des Mines de Paris. He began his career at the French Ministry of Finances from 2000 to 2005. He joined the BNP Paribas group, in charge of audit coordination from 2005 to 2006, and became Chief Information Officer at BNL, BNP Paribas’ Italian subsidiary. In 2009, he joined the Atos group as an ExCom Member and Director of the Global Innovation Business Development & Strategy Global Business Lines, then, Director of the High Technology Settlement Services and Specialized Activities Business Unit in July 2011.

FORTHCOMING EVENTS

• October 30, 2024:                Q3 2024 revenue (after market close)
  
  
  
  

INVESTOR RELATIONS

Laurent Marie

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Guillaume Delaunay

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COMMUNICATION

Sandrine van der Ghinst

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Hélène Carlander

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ABOUT WORLDLINE

Worldline [Euronext: WLN] helps businesses of all shapes and sizes to accelerate their growth journey – quickly, simply, and securely. With advanced payments technology, local expertise and solutions customised for hundreds of markets and industries, Worldline powers the growth of over one million businesses around the world. Worldline generated a 4.6 billion euros revenue in 2023.

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.

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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 2022 Universal Registration Document filed with the French Autorité des marchés financiers (AMF) on April 30, 2024 under the filling number: D.24-0377 and its Amendment filed on August 2, 2024 under number D.24-0377-A01.

Revenue organic growth and Adjusted EBITDA improvement are presented at constant scope and exchange rate. Adjusted EBITDA is presented as defined in the 2023 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. 2024 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.

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