Nexi Group Q3 2024 Financial Results

The Board of Directors of Nexi S.p.A. approved on November 7th the Group’s consolidated financial results as of September 30th 2024. Key consolidated financial managerial results: Merchant Solutions 1,382.3 1,477.2 +6.9% 501.2 534.4 +6.6% Issuing Solutions 784.5 818.1 +4.3% 271.3 278.7+2.8% Digital Banking Solutions 268.7 276.3 +2.8% 94.6 98.0 +3.6% Operating revenue 2,435.5 2,571.6 +5.6% 867.1 911.1 +5.1% Personnel Costs (541.7) (563.7) +4.1% (169.0) (169.2) +0.1% Operating Costs (635.4) (658.0) +3.6% (205.6) (219.1) +6.6% Total Costs (1,177.1) (1,221.7) +3.8% (374.7) (388.3) +3.6% EBITDA 1,258.5 1,349.9 +7.3% 492.4 522.9 +6.2% In 9M24 the Group delivered revenues at € 2,571.6 million, +5.6% versus 9M23, and EBITDA at € 1,349.9 million, +7.3% versus 9M23. The EBITDA margin was at 52%, up by 82 basis points compared to 9M23, also thanks to the acceleration of efficiencies and synergies delivery on the back of Group integration. In 3Q24 revenues reached € 911.1 million, +5.1% versus 3Q23, and EBITDA was at € 522.9 million, +6.2% versus 3Q23, with EBITDA margin at 57%, up by 60 basis points compared to 3Q23. Nexi Group’s operating businesses delivered the following results in 9M24: Merchant Solutions, representing approximately 57% of Group's total revenues, reported revenues of € 1,477.2 million, +6.9% Y/Y. In 9M24, 14,823 million transactions were processed,

• +8.0% Y/Y, with value of processed transactions at € 632.8 billion, +3.4% Y/Y. In 9M24 international schemes sales volume growth has continued, especially in Italy, DACH region and Poland, while total volume growth was still impacted by lower margin national schemes volumes. Furthermore, during the quarter, SME's acquiring volumes continued to grow driven by customer base expansion2, particularly in Italy, DACH region and Denmark.
• In 3Q24, Merchant Solutions revenues reached € 534.4 million, +6.6% Y/Y.On Merchant Solutions revenue growth, Nexi continues to take advantages from structural growth drivers such as a continued nominal consumer spending growth, which proved to be resilient even in challenging macroeconomic environment, as well the secular shift from cash to digital payments.
• Furthermore, the Group is also benefitting from strategic business initiatives that enhance its customer base and the customer value implementing advanced solutions that provide multiple avenues for up- and cross-selling through advanced terminals, ecommerce/omnichannel solutions and integrated commerce solutions.
• Additionally, VAS upselling, such as dynamic currency conversion (DCC) and merchant financing, provides a clear path to increase merchants’ revenue per unit (ARPU).Issuing Solutions, representing approximately 32% of Group's total revenues, reported revenues of € 818.1 million in 9M24, +4.3% Y/Y.
• In 9M24, 15,414 million transactions were processed, +8.0% Y/Y, with value of processed transactions at € 675.0 billion, +4.4% Y/Y. In 3Q24, Issuing Solutions revenues reached € 278.7 million, +2.8% Y/Y. As anticipated, the revenue growth in the quarter has been impacted by the anticipation of specific projects and initiatives in 2Q24Digital Banking Solutions, representing approximately 11% of Group's total revenues, in 9M24 reported revenues of € 276.3 million, +2.8% Y/Y.
• In 3Q24, Digital Banking Solutions reached € 98.0 million of revenues, +3.6% Y/Y, thanks to volume growth and business development initiatives, with extra-support in the quarter from phasing of project activities.
• In 9M24, Total Costs were at € 1,221.7 million, up by 3.8% Y/Y, while in the quarter they were at € 388.3 million, +3.6% versus 3Q23.
• The continued organizational efficiency measures and the operating leverage are limiting the cost growth notwithstanding volume, business growth and inflationary pressure.

In 9M24 the Net Financial Debt was at € 5,223 million, while the Net Financial Debt / EBITDA ratio was broadly stable at 2.8x, despite the accelerated share buy back program. The weighted average pre-tax cash cost of debt is reduced at ~2.7%. 2024 Guidance For 2024, considering the persistent complex macro outlook, Nexi confirms the following targets: • Net revenues: Mid-single digit Y/Y growth; • EBITDA: Mid-to-high single digit Y/Y growth, with margin expansion of 100 bps+; • Excess cash generation: More than € 700 million; • Net leverage: decreasing to below 2.9x including announced M&A and share buy back effects, (~2.6x on organic basis).