Summary of Worldline's Capital Markets Day Company Overview - **Company**: Worldline - **Event**: Capital Markets Day - **Focus**: Transformation plan and strategic roadmap for becoming the leading European payments partner for merchants and financial institutions Key Messages from Leadership 1. **Transformation Under New CEO**: The board supports the transformation initiated by CEO Pierre-Antoine, which includes non-core asset disposals and aims to streamline operations for future growth [4][12][35] 2. **Capital Increase**: A EUR 500 million capital increase is planned for Q1 next year, with EUR 100 million reserved for core institutions and EUR 400 million available to all shareholders [5][12] 3. **Commitment to European Payments**: The strategic roadmap aims to position Worldline as the preferred partner in European payments, focusing solely on payments and excluding non-payment activities [35][36] Financial Performance and Projections - **Revenue Guidance**: Projected revenue of EUR 4 billion with an adjusted EBITDA of EUR 720-745 million for 2025 [18] - **Transaction Volume**: Worldline processes 47 billion transactions annually, equating to approximately EUR 480 billion in merchant volumes, comparable to the GDP of Sweden or Singapore [17][18] - **Market Focus**: The European payments market is growing at a rate of 4-5%, with a shift from cash to digital payments nearing maturity [27][28] Strategic Initiatives 1. **North Star 2030 Plan**: A comprehensive plan focusing on simplifying operations, converging platforms, and enhancing customer service to achieve sustainable growth and free cash flow generation [35][39] 2. **Platform Convergence**: Plans to reduce the number of acquiring platforms from nine to two by 2030, enhancing operational efficiency and customer service [53][54] 3. **Investment in Technology**: Significant investments in modernizing technology infrastructure, including a focus on AI and cloud solutions to improve service delivery and operational efficiency [60][61] Market Segments and Growth Drivers - **Small and Medium Businesses (SMBs)**: Targeting growth through the gig economy and digital transformation needs [28] - **Enterprise Solutions**: Addressing the complexity of payments and the need for omnichannel solutions [29] - **Financial Institutions**: Emphasizing the importance of payments for banks and the demand for diversified business models [29][31] Challenges and Risks - **Revenue Loss**: A revenue dip of EUR 120-130 million due to portfolio cleanup and focus shift away from financial institutions [33][34] - **Operational Fragmentation**: The need to streamline operations and automate processes to improve efficiency and cash flow generation [34][39] Innovation and Future Outlook - **Generative AI Initiatives**: Worldline is investing in AI technologies to enhance operational efficiency and customer experience, with plans for AI-assisted merchant journeys by 2030 [60][63] - **Sovereign Private Cloud**: Development of a private cloud infrastructure to ensure data sovereignty and support systemic payments in Europe [58] Conclusion Worldline is committed to transforming its operations and positioning itself as a leader in the European payments market through strategic initiatives, technological advancements, and a focus on customer excellence. The North Star 2030 plan outlines a clear path for growth and innovation, despite facing challenges in revenue and operational efficiency.

Core Insights - Worldline has launched the "North Star 2030" transformation plan aimed at becoming the preferred European payments partner for merchants and financial institutions, focusing on operational excellence and cash flow generation [2][3][7] Financial Ambitions - The company targets a revenue compound annual growth rate (CAGR) of approximately 4% from 2027 to 2030, with expectations of reaching around €1.0 billion in EBITDA by 2030, supported by run-rate savings of about €210 million [2][18] - Free cash flow generation is anticipated to return by 2027, with a target of €300 million to €350 million by 2030 [2][18] Capital Increase - A contemplated capital increase of €500 million has been unanimously approved by the Board of Directors, with strong backing from strategic investors such as Bpifrance, Crédit Agricole SA, and BNP Paribas [3][4][10] - The capital increase will consist of a reserved capital increase of approximately €110 million and a rights issue of about €390 million, aimed at enhancing financial flexibility and supporting the transformation plan [10][16] Strategic Refocus - Worldline is divesting non-core activities, including its Mobility & e-Transactional Services and North American operations, with expected cash proceeds from these divestments in the range of €350 million to €400 million [6] - The company is simplifying its organizational structure and converging its technology platforms to improve operational efficiency and customer service [11][12] Management and Support - The renewed executive team is committed to driving the transformation and restoring cash flow generation, with significant support from key European financial institutions [4][12][17] - Strategic partnerships, such as with SIX Group, are seen as critical for Worldline's future growth and transformation [13] Operational Improvements - The North Star plan emphasizes the integration of operations and the use of advanced technologies, including AI, to optimize processes and enhance commercial performance [11][12] - Worldline aims to improve its sales execution and expand into new segments to restore growth in its Merchant Services business [8][9]