SAFE HARBOR This presentation contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as “expects,” “intends,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Readers of this presentation by The Western Union Company (the “Company,” “Western Union,” “we,” “our” or “us”) should not rely solely on the forward- looking statements and should consider all uncertainties and risks throughout the Annual Report on Form 10-K for the year ended December 31, 2011, including those described under “Risk Factors”. The statements are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement. Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our business and industry, such as: deterioration in consumers' and clients' confidence in our business, or in money transfer and payment service providers generally; changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and financial market disruptions; political conditions and related actions in the United States and abroad which may adversely affect our business and economic conditions as a whole; interruptions of United States government relations with countries in which we have or are implementing material agent contracts; changes in, and failure to manage effectively exposure to, foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers and payment transactions; changes in immigration laws, interruptions in immigration patterns and other factors related to migrants; our ability to adapt technology in response to changing industry and consumer needs or trends; our failure to develop and introduce new services and enhancements, and gain market acceptance of such services; mergers, acquisitions and integration of acquired businesses and technologies into our Company, and the realization of anticipated financial benefits from these acquisitions; decisions to downsize, sell or close units, or to transition operating activities from one location to another or to third parties, particularly transitions from the United States to other countries; decisions to change our business mix; failure to manage credit and fraud risks presented by our agents, clients and consumers or non-performance by our banks, lenders, other financial services providers or insurers; adverse movements and volatility in capital markets and other events which affect our liquidity, the liquidity of our agents or clients, or the value of, or our ability to recover our investments or amounts payable to us; any material breach of security or safeguards of or interruptions in any of our systems; our ability to attract and retain qualified key employees and to manage our workforce successfully; our ability to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; adverse rating actions by credit rating agencies; failure to compete effectively in the money transfer industry with respect to global and niche or corridor money transfer providers, banks and other money transfer services providers, including telecommunications providers, card associations, card- based payment providers and electronic and Internet providers; our ability to protect our brands and our other intellectual property rights; our failure to manage the potential both for patent protection and patent liability in the context of a rapidly developing legal framework for intellectual property protection; changes in tax laws and unfavorable resolution of tax contingencies; cessation of various services provided to us by third-party vendors; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; significantly slower growth or declines in the money transfer market and other markets in which we operate; changes in industry standards affecting our business; (ii) events related to our regulatory and litigation environment, such as: the failure by us, our agents or their subagents to comply with laws and regulations designed to detect and prevent money laundering, terrorist financing, fraud and other illicit activity; changes in United States or foreign laws, rules and regulations including the Internal Revenue Code, governmental or judicial interpretations thereof and industry practices and standards; liabilities resulting from a failure of our agents or subagents to comply with laws and regulations; increased costs due to regulatory initiatives and changes in laws, regulations and industry practices and standards affecting our agents; liabilities and unanticipated developments resulting from governmental investigations and consent agreements with, or enforcement actions by, regulators, including those associated with compliance with, or a failure to comply with the settlement agreement with the State of Arizona; the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the rules promulgated there-under and the creation of the Consumer Financial Protection Bureau; liabilities resulting from litigation, including class-action lawsuits and similar matters, including costs, expenses, settlements and judgments; failure to comply with regulations regarding consumer privacy and data use and security; effects of unclaimed property laws; failure to maintain sufficient amounts or types of regulatory capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations; and (iii) other events, such as: adverse consequences from our spin-off from First Data Corporation; catastrophic events; and management's ability to identify and manage these and other risks. Exhibit 99.1 |
HIKMET ERSEK President & Chief Executive Officer STRATEGIES AND OVERVIEW Welcome Hosgeldiniz Willkommen |
TODAY’S PRESENTATIONS Vision to complement existing strengths with new capabilities moving money for better Strategies and plans to accelerate growth |
140M underserved businesses 28M cross-border Sources: McKinsey & Co., “Half the World is Unbanked”, October 2009; CGAP, “Financial Access ” 2009; C.K. Prahalad, “Fortune at the Bottom of the Pyramid” 2004; Hammond et all, “Purchasing Power at the Bottom of the Pyramid”, 2007; World Bank 2009 Bottom of the Pyramid population, Company analysis. Excludes 1.5B-2B below poverty and children; IFC. 2B underserved consumers OUR VISION MICRO 2.1M 18.1M 119.8M 120M 650-850M 550-750M 800M-1B CORE Migrant Senders Cash Receivers 250-500M Businesses Consumers Western Union: The Premier Financial Service Provider for the Underserved |
OUR FOCUS Building from a strong foundation Great assets in place Leverage strengths to accelerate growth Grow the core (more choice, more convenience) Add new customers and services (Business Solutions, Ventures) Drive margin expansion with accelerated growth Opportunities and strategies in place Focus on customers and strategy execution |
unmatched global network unique customer relationship with the underserved strong global brand global AML/regulatory capabilities global organization with significant resources COMPETITIVE ADVANTAGES |
COMPETITIVE ADVANTAGES 200 countries, territories Over 16,000 corridors Strong Agent relationships 500,000 locations Digital, ATMs … unmatched global network strong global brand global organization with significant resources global AML/regulatory capabilities unique customer relationship with the underserved |
COMPETITIVE ADVANTAGES *Source: Western Union 2011 global consumer tracking study of consumers in money movement category strong global brand global organization with significant resources unmatched global network global AML/regulatory capabilities unique customer relationship with the underserved Brand awareness* Global 82% U.S. 80% APAC 75% MEA 88% Europe/CIS 81% 70 million senders, plus receivers 19 million loyalty cards Trust, reliability, convenience |
COMPETITIVE ADVANTAGES global organization with significant resources Strong balance sheet, cash flow A- credit rating Ability to source multiple currencies Can leverage infrastructure to offer new services Offices and employees around the world strong global brand unmatched global network global AML/regulatory capabilities unique customer relationship with the underserved |
COMPETITIVE ADVANTAGES global AML/regulatory capabilities strong global brand global organization with significant resources unmatched global network unique customer relationship with the underserved Complex AML/regulatory environment Regulatory scrutiny in all markets Bank Secrecy Act, Patriot Act, state money- transfer laws, EU AML … Western Union resources: $60M annual spend; more than 600 employees in 6 continents |
moving money for better STRATEGIC GROWTH AREAS GCFS Business Solutions Ventures Consumer money transfer Consumer bill pay Digital money transfer Stored value Data Ventures International B2B payments |
GLOBAL CONSUMER FINANCIAL SERVICES Favorable long-term market demographics Aging population/need for workers in developed countries Surplus of workers in developing countries Income differentials WU strategies to accelerate growth Increase penetration: 1M points of presence Increase retention, loyalty through enhanced consumer experience and marketing *Source: Aite, Cross Border Money Transfer Update, July 2011 |
Population WU Location/ Person Location/ Sq. Mile U.S. 314M 51,000 1/6,100 1/70 RUSSIA 138M 16,000 1/8,600 1/400 CANADA 34M 2,900 1/11,700 1/1,300 BRAZIL 206M 11,000 1/18,700 1/300 CHINA 1.3B 33,000 1/39,400 1/110 GLOBAL CONSUMER FINANCIAL SERVICES – PENETRATION |
Agent Locations Strong growth opportunity from expanding Market share* n/a 7% 15% 17% * Source: Aite ** As of April 2012 GLOBAL CONSUMER FINANCIAL SERVICES |
BUSINESS SOLUTIONS Large market opportunity: $24B revenue* Underserved customer: SMEs, specialized verticals (law firms, universities, financial institutions) * Source: McKinsey and Western Union estimates. |
BUSINESS SOLUTIONS Western Union assets: Underserved focus Cross-border money transfer Global brand Regulatory Strong balance sheet Agent network Financial institution relationships Business Solutions assets: Strong platforms Expertise Sales force Back-end bank network connections |
BUSINESS SOLUTIONS The right growth strategies Deeper penetration More geographies Expanded services and channels Significant opportunity to increase 2% share today |
VENTURES Leverage Western Union’s core strengths to offer additional services and obtain new customers Strengths Brand Network Access to 2B underserved AML and regulatory capabilities |
VENTURES Currency and Channel-Agnostic Platform with Four Core Functions Digital Ventures Access “money-movement services” when you want them, how you want them Stored-Value Ventures Provide viable, alternative methods of financial inclusion Data Ventures Deepen our customer relationships Opportunities through our own services and with partners Send/Receive Store Spend Monetize |
BUILDING THE BUSINESS THROUGH PARTNERSHIPS MasterCard: A key partner for building the world’s largest global stored-value load network, enabling global bank-based sends and money transfers to cards. Ericsson: The world's leading provider of communications technology connecting Western Union to global m-wallets. Allianz: A leading global integrated financial and insurance service provider, together with Western Union will explore how to deliver more financial access to the underserved. |
BUILDING THE BUSINESS THROUGH PARTNERSHIPS Ajay Banga, President and CEO, MasterCard Worldwide |
VENTURES Build and monetize global consumer database of the underserved Vision to become leading global load/cash access network for stored value Expanding digital business from strong foundation Insurance Pay .com |
WESTERN UNION RETAIL NETWORK Western Union is the Hub: connects retail Agents Trusted brand for consumers (reliable, fast, convenient) Trusted partner for Agents Compliance and regulatory Currency exchange Data network |
WESTERN UNION NETWORK: RETAIL / DIGITAL / ACCOUNTS Western Union is the Hub Trusted brand for consumers Trusted partner for Agents Retail, online, mobile … Compliance and regulatory Currency exchange Data network Connects all form factors |
GROWTH PORTFOLIO FOR TODAY AND TOMORROW Lifecycle stage Ventures Business Solutions C2C C2B Global Consumer Financial Services Data Ventures Stored value Digital Social Ventures *Notes: C2C Retail includes Account-Based Money Transfer (ABMT) and excludes wu.com. 2011 B2B growth excludes Travelex Global Business Payments. 1% of revenue is other and is not included above. See appendix for reconciliation of non-GAAP to GAAP financial measures. 2011 Revenue Growth (constant currency)* 30% 31% 13% 2% 4% |
*Notes: C2C Retail includes Account-Based Money Transfer (ABMT) and excludes wu.com. 2011 B2B growth excludes Travelex Global Business Payments. 1% of revenue is other and is not included above. See appendix for reconciliation of non-GAAP to GAAP financial measures. 4% 2011 Constant Currency Revenue Growth* 2% 13% 31% 30% Accelerate Single-Digit 20% plus 40%-50% Low Double Long-term revenue growth objectives 79% C2C Retail 11% C2B 6% B2B 2% Digital 1% Stored Value Good Growth Low Growth High Growth Very High Growth Very High Growth GROWTH PORTFOLIO – OPPORTUNITIES FOR ACCELERATION Q1 2012 - Percent of Revenue |
WESTERN UNION: MOVING MONEY FOR BETTER Vision: Premier Financial Services Provider for the Underserved GCFS Business Solutions Ventures |
SCOTT SCHEIRMAN Executive Vice President, CFO and Global Operations TOTAL SHAREHOLDER RETURN Welcome |
moving money for better GCFS STRATEGIC GROWTH AREAS Consumer money transfer Consumer bill pay Ventures Digital money transfer Stored value Data Ventures Business Solutions International B2B payments |
TOTAL SHAREHOLDER RETURN (TSR) Strong opportunity to drive returns through business acceleration and cash flow utilization Opportunity to accelerate Expansion opportunity as revenue growth accelerates 2012: Retire 4-5% of shares 2% current yield |
TSR – REVENUE GROWTH *Note: see appendix for reconciliation of non-GAAP to GAAP financial measures. -4% 2% 6% 2009 2010 2011 Reported Revenue Growth -2% 1% 4% 2009 2010 2011 Organic Constant Currency Revenue Growth* |
TSR – REVENUE GROWTH Opportunities for revenue acceleration Network expansion Increased customer retention New types of customers New services Economic improvement |
79% C2C Retail Good Growth 11% C2B Low Growth 6% B2B High Growth 2% Digital Very High Growth 1% Stored Value Very High Growth 4% 2011 Constant Currency Revenue Growth* 2% 13% 31% 30% GROWTH PORTFOLIO – OPPORTUNITIES FOR ACCELERATION *Notes: C2C Retail includes Account-Based Money Transfer (ABMT) and excludes wu.com. 2011 B2B growth excludes Travelex Global Business Payments. 1% of revenue is other and is not included above. See appendix for reconciliation of non-GAAP to GAAP financial measures. Q1 2012 - Percent of Revenue Accelerate Single-Digit 20% plus 40%-50% Low Double Long-term revenue growth objectives |
C2C Operating Margin Operating Margin TSR – MARGIN EXPANSION C2C operating margin expansion offset by other businesses *Operating Margin excludes one-time items. See appendix for reconciliation of Non-GAAP to GAAP financial measures. 25.2% 25.0% 25.2% 26.6% 26.2% 26.2% 2009 2010 2011 GAAP Op. Margin Op. Margin* 27.3% 28.4% 28.6% 2009 2010 2011 |
TSR – MARGIN EXPANSION Targeting long-term margin expansion; Revenue growth and productivity initiatives key drivers Margin Drivers Revenue growth: operating leverage Commissions Fixed cost optimization Other Factors Investments Acquisition amortization Currency hedges Business Mix Compliance – Dodd Frank |
$4.1B Total Expenses 2011 TSR – MARGIN EXPANSION Margin key drivers, variable costs 65% variable costs Commissions 85% of variable costs Expense optimization opportunities Location expansion Signing new agents and renewing existing agents at lower rates Non-exclusive receive locations in some markets Super-agent acquisitions in Europe ($ Billions) $1.5 $2.6 $2.2 $0.4 Fixed Variable Commissions Ops/Other |
C2C Commissions as a Percent of Revenue TSR – MARGIN EXPANSION 48.4% 46.1% 46.3% 45.8% 2008 2009 2010 2011 |
$4.1B Total Expenses 2011 TSR – MARGIN EXPANSION Margin key drivers: fixed costs 35% of total costs Revenue leverage Expense optimization Accelerated revenue growth leads to operating leverage ($ Billions) $1.5 $2.6 Fixed Variable |
TOTAL SHAREHOLDER RETURN Net Income Growth Share Repurchases Dividends + Revenue Growth + Margin Expansion + Utilization of Operating Cash Flow |
TSR – UTILIZATION OF OPERATING CASH FLOW $4.4B $4.3B Operating Cash Flow Net Borrowing Proceeds Option Proceeds Other Sources CAPEX Dividends M & A Share Repurchases Low Capital Intensity Drives Strong Operating Cash Flow Generation |
TSR – UTILIZATION OF OPERATING CASH FLOW Capital allocation Balance sheet framework: maintain A- credit rating for business relationships Gross debt/EBITDA of approximately 2x Year-end cash balance of approximately $1.5 billion Deployment priorities Reinvest in business “Normal” long-term capital spending approximately 3% of revenues (2012 higher) Strategic M&A Return to Shareholders |
TSR – UTILIZATION OF OPERATING CASH FLOW Return of funds to shareholders Domestic cash availability Q1 2012 domestic cash balance approximately $700 million Due to tax agreement and planning, majority of cash generated over next 12 months available domestically Approximately 35% of operating cash flows going forward Debt can grow with EBITDA |
$0.0 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 4Q09 4Q10 2Q11 1Q12 Quarterly Dividend $0 $200 $400 $600 $800 $1,000 $1,200 2009 2010 2011 2012E Share Repurchase Dividend TSR – UTILIZATION OF OPERATING CASH FLOW Dividend Levels Repurchases and Dividends ($ Millions) Significant Return of Funds to Shareholders $0.06 $0.07 $0.08 $0.10 $400 $584 $800 $400- $600 $41 $165 $194 $250 |
TSR – UTILIZATION OF OPERATING CASH FLOW Return of funds to shareholders: balanced approach Dividends Currently $0.10 quarterly Target annual increases with business growth Reevaluate with Board periodically Share repurchase Strong buy-back, purchase below intrinsic value Business supports strong cash flow return to shareholders |
TOTAL SHAREHOLDER RETURN Double Digit EPS Growth Strong opportunity to drive returns through business acceleration and cash flow utilization 2012: Retire 4-5% of shares Opportunity to accelerate Expansion opportunity as revenue growth accelerates 2% current yield |
STRATEGIC GROWTH AREAS Consumer money transfer Consumer bill pay Digital money transfer Stored value Data Ventures International B2B payments GCFS Business Solutions Ventures moving money for better |
Appendix |
NON-GAAP MEASURES Western Union's management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding our operating results to assist management, investors, analysts, and others in understanding our financial results and to better analyze trends in our underlying business, because they provide consistency and comparability to prior periods. These non-GAAP financial measures include revenue change Custom House, TGBP and constant currency adjusted, operating income margin excluding settlement accrual, restructuring and TGBP integration expense, 2012 revenue change outlook TGBP and constant currency adjusted, Consumer-to-Consumer Retail revenue change constant currency adjusted, Consumer-to-Business revenue change constant currency adjusted, Business Solutions revenue change TGBP and constant currency adjusted, Digital revenue change constant currency adjusted and Stored Value revenue change constant currency adjusted. A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the reconciliation to the corresponding GAAP financial measure, provide a more complete understanding of our business. Users of the financial statements are encouraged to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below. |
RECONCILIATION OF NON-GAAP MEASURES (in millions) FY2009 FY2010 FY2011 Consolidated Revenue Growth Revenues, as reported (GAAP) 5,083.6 $ 5,192.7 $ 5,491.4 $ Reversal of Custom House revenues, including foreign currency translation impact (a) (30.8) (110.3) N/A Reversal of TGBP revenues, including foreign currency translation impact (b) N/A N/A (35.2) $ Foreign currency translation impact (c) 119.5 36.8 (38.0) Revenues, Custom House, TGBP and constant currency adjusted 5,172.3 $ 5,119.2 $ 5,418.2 $ Prior year revenues, as reported (GAAP) 5,282.0 $ 5,083.6 $ 5,192.7 $ Revenue change, as reported (GAAP) (4)% 2 % 6 % Revenue change, Custom House, TGBP and constant currency adjusted (2)% 1 % 4 % Consolidated Operating Margin Operating income, as reported (GAAP) 1,282.7 $ 1,300.1 $ 1,385.0 $ Reversal of settlement accrual (d) 71.0 N/A N/A Reversal of restructuring and related expenses (e) N/A 59.5 46.8 Reversal of TGBP integration expense (f) N/A N/A 4.8 Operating income, excl. settlement accrual, restructuring and TGBP integration expense 1,353.7 $ 1,359.6 $ 1,436.6 $ Operating income margin, as reported (GAAP) 25.2 % 25.0 % 25.2 % Operating income margin, excl. settlement accrual, restructuring and TGBP integration expense 26.6 % 26.2 % 26.2 % Consolidated Revenue Outlook Revenue change (GAAP) 4 % 6 % Reversal of TGBP revenues, including foreign currency translation impact (b) (4)% (4)% Foreign currency translation impact (g) 2 % 2 % Revenue change, TGBP and constant currency adjusted 2 % 4 % Range |
RECONCILIATION OF NON-GAAP MEASURES (in millions) FY2011 Consumer-to-Consumer (C2C) Retail Revenues Revenues, as reported (GAAP) 4,489.9 $ Foreign currency translation impact (c) (35.8) Revenues, constant currency adjusted 4,454.1 $ Prior year revenues, as reported (GAAP) 4,296.8 $ Revenue change, as reported (GAAP) 4 % Revenue change, constant currency adjusted 4 % Consumer-to-Business (C2B) Revenues Revenues, as reported (GAAP) 608.9 $ Foreign currency translation impact (c) 6.4 Revenues, constant currency adjusted 615.3 $ Prior year revenues, as reported (GAAP) 604.0 $ Revenue change, as reported (GAAP) 1 % Revenue change, constant currency adjusted 2 % |
RECONCILIATION OF NON-GAAP MEASURES (in millions) Business Solutions (B2B) Revenues Revenues, as reported (GAAP) 161.1 $ Reversal of TGBP revenues, including foreign currency translation impact (b) (35.2) Foreign currency translation impact (c) (5.7) Revenues, excluding TGBP and constant currency adjusted 120.2 $ Prior year revenues, as reported (GAAP) 106.7 $ Revenue change, as reported (GAAP) *** Revenue change, TGBP and constant currency adjusted 13 % Digital Revenues Revenues, as reported (GAAP) 126.2 $ Foreign currency translation impact (c) (3.4) Revenues, constant currency adjusted 122.8 $ Prior year revenues, as reported (GAAP) 93.5 $ Revenue change, as reported (GAAP) 35 % Revenue change, constant currency adjusted 31 % Stored Value Revenues Revenues, as reported (GAAP) 32.3 $ Foreign currency translation impact (c) 0.4 Revenues, constant currency adjusted 32.7 $ Prior year revenues, as reported (GAAP) 25.1 $ Revenue change, as reported (GAAP) 29 % Revenue change, constant currency adjusted 30 % *** Calculation of growth percentage is not meaningful due to the impact of the TGBP acquisition in November 2011. FY2011 |
RECONCILIATION OF NON-GAAP MEASURES (a) Represents the incremental impact, including the impact from fluctuations in exchange rates, when applicable, of Custom House on Consolidated revenue. (b) Represents the incremental impact, including the impact from fluctuations in exchange rates, when applicable, of Travelex Global Business Payments ("TGBP") on Consolidated revenue. Also, represents the incremental impact of TGBP on Business Solutions revenue. (c) Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant exchange rate. (d) Represents the accrual for an agreement to resolve the Company's disputes with the State of Arizona and certain other states and to fund a multi-state not-for-profit organization focused on border safely and security ("settlement accrual"). (e) Restructuring and related expenses consist of direct and incremental expenses including the impact from fluctuations in exchange rates associated with restructuring and related activities, consisting of severance, outplacement and other related benefits; facility closure and migration of the Company's IT infrastructure; and other expenses related to the relocation of various operations to new or existing Company facilities and third-party providers, including hiring, training, relocation, travel, and professional fees. Also included in the facility closure expenses are non-cash expenses related to fixed asset and leasehold improvement write-offs and the acceleration of depreciation and amortization. (f) TGBP integration expense consists primarily of severance and other benefits, retention, direct and incremental expense consisting of facility relocation, consolidation and closures; IT systems integration; and other expenses such as training, travel and professional fees. Integration expense does not include costs related to the completion of the TGBP acquisition. (g) Represents the estimated impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any estimated benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant exchange rate. Non-GAAP related notes: |
STEWART A. STOCKDALE President & EVP, Global Consumer Financial Services GLOBAL CONSUMER FINANCIAL SERVICES: OVERVIEW & STRATEGIES Bienvenidos WELCOME |
KEY HIGHLIGHTS FROM 2011 Highest growth since 2008 All regions contributed to growth Payments returned to growth FY 2011 |
C2C REVENUE GROWTH 2009 – 2011 Region (reported) 2011 North America 3% Europe & CIS 3% Middle East & Africa 4% Asia Pacific 10% LACA 7% All regions contributed to growth in 2011 Priorities in place to help accelerate growth |
2012 PRIORITIES FOR GROWTH Assert Our Leadership Know Customers and Delight Them Go Deep in Must Win Markets Fuel and Fund the Growth Vision RETAIL PRESENCE CUSTOMER EXPERIENCE ADJACENCIES OPERATING MODEL |
EXPANDING RETAIL PRESENCE Accelerate location growth Win strategic accounts Fill the “white space” Invest and drive a sales culture Hunter vs. Farmer model (150 new positions) North America – 200 Europe – 240 MEA – 10 APAC – 40 LACA – 100 |
DIVERSIFYING CLASSES OF TRADE Leadership in postal networks Penetrating North America banks Accelerating new European retail* Expanding points of presences globally Flagship locations ATMs Kiosks Convenience stores *Expanded retail locations available through Payment Services Directive (PSD) |
NORTH AMERICA BANKING CLASS OF TRADE Continued sales momentum ABMT almost 20% of bank volume Accessing new customer segments Principal per transaction double the non-bank class of trade average 16% YOY Bank Class of Trade Transaction Trends |
NEW EUROPEAN RETAIL CLASS OF TRADE Rapid growth and acceleration Independent trends are strong Convenient and accessible Preferred class of trade by migrant consumers New European Retail Transactions* * Countries Opened by Payment Services Directive (PSD) |
Prioritize Agents and Size the Opportunity Market Size High Low Low High AGENT VALUE PROPOSITION Actively Retain Develop Strategic Partnership Negotiate Aggressively Actively Optimize |
Chetan Mehra, Director, Weizmann Forex Ltd. AGENT PARTNERSHIP |
WEIZMANN FOREX LTD – INTRODUCTION Weizmann Forex Ltd (WFL): Multidimensional Weizmann Group Revenues US $700M Principal Agent of Western Union since 1998 1,700 experienced professionals servicing valued customers PAN India Payout made during 2011 US $1.8B |
WESTERN UNION – INDIA 100,000 strategically placed locations Larger than entire bank branch network Most reputed brands in India working with WU Strong agent relationship Most trusted brand 98% brand awareness “ 1 Out of Every 5 Global WU Locations” |
WEIZMANN FOREX LTD – RISE IN LOCATIONS Western Union Financial Services, India – 21,000 th Location The United Western Bank Fort, Mumbai, India – March 2005 |
WEIZMANN FOREX LTD – WESTERN UNION PARTNERSHIP: A PROMISING FUTURE Financial Inclusion – Helping underserved Untapped Market – Penetration Villages and small towns Continued Expansion – Successful relationships More than 26 state owned banks and 12,700 sub agents Focus on Transforming Business Western Union Business Solutions Prepaid cards |
IMPROVING THE CUSTOMER EXPERIENCE Customer insights Communicate and offer new services Drive share of wallet Revolutionize the retail experience |
PURSUING ADJACENCIES “Go deep” in key markets Account based and intra “Fill the bucket” Premier partnerships More Services = More Profit per Customer More for Agents |
GLOBAL PAYMENTS RETURNING TO GROWTH U.S. payments turnaround Innovation in U.S. cash and electronic More than 10,000 billers New biller verticals Small business portal Text to pay Strong growth from South America More than 600 Million Transactions |
BRINGING IT ALL TOGETHER Assert Our Leadership Know Customers and Delight Them Go Deep in Must Win Markets Fuel and Fund the Growth Vision RETAIL PRESENCE CUSTOMER EXPERIENCE ADJACENCIES OPERATING MODEL Scalable Operating Model to Drive Margin Expansion as Revenue Accelerates |
GLOBAL CONSUMER FINANCIAL SERVICES LEADERSHIP TEAM Drina Yue Middle East & Africa Jean Claude Farah Latin America & Caribbean Odilon Almeida Asia Pacific North America Victoria Lopez-Negrete Europe & CIS Jan Hillered |
JAN HILLERED Senior Vice President, Europe & CIS EUROPE & CIS WELCOME WILLKOMMEN BIENVENUE VÄLKOMMEN |
EUROPE AND CIS 53 countries $1.3B 2011 revenues Top countries France United Kingdom Italy Germany Russia Spain 80M migrants |
EUROPE AND CIS 140,000 locations Western Union International Bank 19 WU.com transaction sites 33 account based MT banks signed 23,000 ATMs active in 6 countries Launched prepaid card in Germany, United Kingdom and Austria |
MACRO ECONOMICS 1. 4.7 1. 7 3. 0.7 4. 0.5 7 1.6 2 0 1.8 7 3. 9 0.7 .3 Eurozone CIS France Germany Spain Russia Italy UK Real GDP YoY Growth Rate, Yearly 2010 2014f (in %) 2010 2011 2012f 2013f 2014f Unemployment Rates, Yearly 2008- 2012f (in %) 5 1 3 0. 4. . 0. 2 2 - - 2 4 6 8 10 12 14 16 18 20 24 26 2008 2009 2010 2011 2012f Eurozone France Germany Spain Russia Italy 0 22 – 2008 2009 2010 2011 2012 40. -20.0 0 Sentiment Indicators European Union - 0 0. Source: Eurostat Source: IHS Global Limited; Copyright © IHS Global Limited, 2012. All rights reserved Source: IHS Global Limited; Copyright © IHS Global Limited, 2012. All rights reserved |
NEW EUROPEAN RETAIL (PSD) Sales force increased by 40% Growing our footprint Exceeded 2011 target of 1% of total company revenues Ensuring customer convenience Targeting double digit revenue growth for 2012 “Western Union pays me a provision on each transaction … since I’ve been offering Western Union, my revenue increased by 30%.” Ayedin Ugur, Internet Café and Call Shop owner, Hamburg, Germany Agent Testimonial – Independent, Germany |
EURO MONEY TRANSFER Replicating the success of U.S. Domestic repositioning Accelerating growth for low band offering in Eurozone Gaining new customers and higher frequency from existing FY 2010 FY 2011 Q1 2012 Domestic in Eurozone Trx growth Revenue growth |
SUPER AGENT ACQUISITIONS (COSTA AND FININT) Builds on 2009 Fexco acquisition Moving closer to the customer Direct control of 30% of distribution network in Europe Single sales organization Gaining scale and efficiencies in back office infrastructure |
RUSSIA TURNAROUND STRATEGIES Distribution Enter retail class of trade Self service Brand Awareness Launch of Sberbank Marketing programs Pricing Techniques Tiered pricing Attractive high band offer RUSSIA |
GROWTH DRIVERS Corridor Promotions Retail Expansion Grassroots Activations Dedicated Locations New Products Customer Promotion Pan European Campaigns New Channels |
JEAN CLAUDE FARAH Senior Vice President, Middle East & Africa MIDDLE EAST & AFRICA Bienvenue WELCOME |
MIDDLE EAST & AFRICA 66 countries $860M 2011 revenues Top countries Saudi Arabia United Arab Emirates Morocco |
40,000 AGENT LOCATIONS 21 SIGNED CONTRACTS 14 SIGNED CONTRACTS MIDDLE EAST & AFRICA Brand awareness 88% Business mix Outbound 43% Inbound 54% Intra 3% |
2011 – AN EVOLVING ENVIRONMENT MEA conflicts Migration shifts $120 oil price Moderate economic growth Emerging opportunities |
CONTINUE TO DRIVE WINNING STRATEGIES Customers Execution Growth Minimize The Socio-Economic Impact |
MEETING OUR CUSTOMER & MARKET NEEDS Service availability New agents Footprint expansion Nous avons le plaisir de vous informer de la reprise du service Western Union en Côte d’Ivoire, Réception et envoi de transferts d’argent SOMALILAND NAMIBIA |
DRIVING GROWTH & BUILDING MOMENTUM New channel - ABMT |
DRIVING GROWTH & BUILDING MOMENTUM Driving loyalty |
DRIVING GROWTH & BUILDING MOMENTUM Enhancing visibility |
CASE STUDY: DRIVING MEA GROWTH TO APAC Customer focused Harnessing opportunity Portfolio management Increased presence 4% 4% 6% 6% ECONOMIC DOWNTURN ARAB SPRING MEA to APAC (REVENUE) |
IN CLOSING Gulf economies rebounding Crisis countries opened Emerging Africa Channel diversification |
DRINA YUE Senior Vice President, Asia Pacific ASIA PACIFIC Welcome |
ASIA PACIFIC 44 Countries and territories 2011 Revenues: $660 Million Top Inbound Countries India Philippines China Top Outbound Countries Australia Malaysia Singapore Hong Kong |
ASIA PACIFIC: A SNAPSHOT 210,000+ locations 25 ABMT banks signed 7 Mobile partners signed 254 Agents |
ASIA PACIFIC Customer-centric Enhance in-bound corridors Build on intra-APAC and outbound Grow retail network and enable new channels Deploy new products to address new market opportunities Five Point Strategy To Bolster Growth |
*Source: World Bank MONEY MOVEMENT: ASIA-PACIFIC IN-BOUND The Stalwarts and Emerging Tigers INDIA CHINA PHILIPPINES BANGLADESH VIETNAM INDONESIA Top 10 Recipients of Migrant Remittances* 1. India 2. China 3. Mexico 4. Philippines 5. Egypt 6. Pakistan 7. Bangladesh 8. Nigeria 9. Vietnam 10. Lebanon |
MONEY MOVEMENT: APAC REVENUES DIVERSIFYING With APAC Outbound / APAC Intra / DMT APAC INBOUND 64% APAC OUTBOUND 8% APAC INTRA 25% DMT 3% APAC INBOUND 56% APAC OUTBOUND 10% APAC INTRA 31% DMT 3% |
Malaysia Hong Kong Korea Japan MONEY MOVEMENT: OUTBOUND KEY PLAYERS All Corridors In and Out of Asia Pacific + Increased GDP growth + Aggressive development agendas + Aging population = Resulting in more migration within APAC Australia Singapore Taiwan NZ/Isles |
INDIA FOCUS: NEW CHANNELS TO SEIZE NEW SHARE India Remittances: $64B * Leader in cash-to-cash with 100K+ retail network Opportunity to expand to new segments Account based and prepaid cards launches in 2012 Retail Captures Majority of C2C Transfers *Source: World Bank Migration Development Brief April, 2012 DIRECT TO BANK $9B FOR. CURRENCY NON-RESIDENT $28B CASH-TO-CASH $13B A/C TO A/C $14B $64B * |
JAPAN FOCUS: 4 CHANNELS ACTIVATED - 18 MONTHS 1. Retail expansion 2. Online ABMT: Launched with Seven Bank Poised to Tap $5B * Market Potential *Source: Bank of Japan Reports & Research Paper (2011 March) 3. ATMs: 16,000 4. Retail kiosks: 9,000 |
Malaysia Thailand Japan Korea Vietnam Philippines China Australia Alternative Channels Serving New Consumers Indonesia India Philippines China Malaysia Philippines Bangladesh Vietnam China Japan Japan Taiwan Australia NZ INTO 90+% BANKS RETAIL TO BANK ACCOUNT SELF-SERVICE MOBILE DEALS: 7 MNOs BUYING WITH CASH ONLINE 24/7 ATMs: 16K+ KIOSKS: 10+ WU.COM WORLD BUYS FROM ALIBABA ONLINE PORTAL 25 BANKS: SEND/RECEIVE MONEY MOVEMENT: ADJACENCIES/GOING DEEP |
VICTORIA LOPEZ-NEGRETE Senior Vice President, North America NORTH AMERICA Bienvenidos WELCOME |
NORTH AMERICA Three countries $1.7B 2011 revenues Top corridors: U.S. domestic money transfer U.S. to Mexico U.S. to Philippines |
NORTH AMERICA 70,000 locations Long standing relationships 7 ABMT banks signed |
STRATEGIES TO DELIVER GROWTH Enhance the customer and agent experience Expand and diversify distribution footprint Broaden the product portfolio Continue U.S. payments turnaround Evolve and improve Mexico business |
IT ALL BEGINS AND ENDS WITH OUR CUSTOMER 20M money transfer senders Providing consumer choice 4.0 7.5 Annual Transaction per Consumer Single Product vs. Multi Product Single Multi |
-7% -8% -9% 5% 18% 28% 35% 29% 21% 19% 14% 11% 12% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Domestic Transactions Transactions Growth U.S. DOMESTIC MONEY TRANSFER & CONSUMER BEHAVIOR All time highs Higher frequency New consumers Short distance sends Intra city Growing from 10% to more than 20% of total volume Losing share Repositioning Revenue growth |
WINNING DISTRIBUTION Continued momentum with banks Retail and account based solutions Strong distribution with large retailers Pursuing non-traditional networks Retail expansion via independents Small shops in ethnic neighborhoods |
GROWING MEXICO FOR BETTER Addressing market challenges Opening of in-country network Direct relationships with agents Expanded services / channels Drive WU brand equity |
CLOSING SUMMARY Successful execution on the strategy Improving portfolio of services for sustained growth Solid momentum with banks Expanding distribution & product diversification Investing in Mexico to accelerate growth |
ODILON ALMEIDA Senior Vice President, LACA LATIN AMERICA AND THE CARIBBEAN Bem-vindos Welcome Bienvenidos |
LATIN AMERICA AND THE CARRIBBEAN 48 countries and territories $620M 2011 revenues Top countries Argentina Colombia Dominican Republic Jamaica |
LATIN AMERICA AND THE CARRIBBEAN 40,000 locations 3,500 billers 5 mobile contracts Bolivia El Salvador Guatemala Honduras Paraguay |
LACA STRATEGIES DRIVING GROWTH Money transfer by phone to account Argentina, Brazil, Chile, Ecuador and Peru 350 Banks 150M account holders Payments expansion Peru, Panama, Venezuela and Brazil |
PAGO FACIL CONTINUES TO DELIVER VALUE Acquisition completed in 2006 Bill Payments in Argentina Expanding in select markets |
LACA MONEY TRANSFER & BILL PAYMENTS REVENUE GROWTH RATE 10% CAGR (2006 - 2011) |
LACA HAS DIVERSIFIED ITS REVENUE STREAM Money Transfer & Bill Payments Revenues (Mix %) Money Transfer & Bill Payments Revenues (Mix %) Outbound & Intra Inbound Payments 2006 2008 March 2012 |
LACA IS SET UP FOR CONTINUED GROWTH Grow the retail network Continue driving revenue mix strategies Build presence in Brazil Expand Account Based Money Transfer Extend offerings across multiple channels |
RAJ AGRAWAL President, Business Solutions BUSINESS SOLUTIONS: OVERVIEW & STRATEGIES WELCOME Namaste |
STRATEGIC AREA OF GROWTH FOR WU Low double-digit revenue growth Long-term trade growth at ~2X GDP 13% revenue growth (constant currency) for legacy WUBS organization in 2011 Approximately $400MM revenue in 2012 $24B market opportunity ~1,900 employees 95,000+ customers |
Leading propositions: Financial institutions Law firms Universities Strong product and functionality capabilities Extensive banking relationships Leading provider of international business payments 71 country ACH clearing Two Great Organizations Better as One COMPLEMENTARY ASSETS AND CAPABILITIES Reliable, flexible and easy-to-use platforms Large network of correspondent banks Local market expertise / diverse range of countries Balance sheet strength Brand Licensing and compliance business solutions |
Payment Retail to retail Account to account Typical PPT $300 - $500 $15,000 - $25,000 Revenue Mainly transaction fee Mainly FX spread Typical RPT $15 - $30 $75 - $150 Sales Channel FLA’s / Retail Direct Sales / Dealing BUSINESS OVERVIEW Money Transfer (C2C) Business Solutions (B2B) Payment Cross-border Cross-border Core Customers Focus on underserved Focus on underserved Brand Trust, speed, reliability Trust, speed, reliability |
Tools and operational support to manage large payment files; wide range of currency options Pay “From Your Account” Cash payment options Marketplace solutions Branch solution Electronic solutions Spot, forward, options Payment accuracy, speed and administration Multiple countries Cost Escrow Time Tracking Market fluctuations Carpet Importer Hassan Bassir Handbag Exporter Miahua Huang Pension/ Payroll OUR CUSTOMERS THEIR PAIN OUR SOLUTION |
OUR CUSTOMERS THEIR PAIN OUR SOLUTION Financial Institutions Law Firms Education Charities Investment: systems/staff Time to market Collect and reconcile tuition and fees from international students Managing multiple inbound and outbound currencies Global movement of funds, often remote; donor management FI resells WUBS FX solution Local currency and easy payment process; broad range of currencies; reconciliation Integrated with existing accounting systems; risk management and scheduled payments Simplified management of incoming and outgoing funds |
PAYMENTS COMPLETED IN MULTIPLE METHODS Same day and next day high-value wires Low-value wires Domestic funds transfer (EFT) International drafts Real-time communication OUR PRODUCTS Simple Rate Certainty SPOT PAYMENTS Future FX transaction Risk management tool FORWARD CONTRACTS Flexibility EXCHANGE RATE BIDS/OPTIONS |
OUR CHANNELS Branch Model Partners / Self-service direct application use Simplified, web-based platform |
OUR CHANNELS Branch Model Partners / Self-service direct application use Simplified, web-based platform |
OUR CHANNELS Branch Model Partners / Self-service direct application use Simplified, web-based platform |
COMBINING “BEST OF BOTH” BUSINESSES TO DRIVE GROWTH Geographic Expansion Direct in top importing markets Scalable partner and online models elsewhere Product Choice Charity hub Account to retail Multiple Channels Direct Online, self-service Vertical channel partners Agents Target Customers: Wider View Industry verticals Repeat payments: high volume, low principal Exporters Risk Management |
GROWTH STRATEGY Europe: Country Asia: Significant Opportunity 25 send countries 135+ currencies 200+ countries 71 countries through direct clearing network WUBS Existing Country expansion |
EXECUTION PRIORITIES Deliver on growth objectives Gain share Geographic, product and channel expansion Retention and expansion of wallet share with existing clients Acquire new clients through investment in direct sales resources Continued growth via partnership model Integration focus Scale Cost efficiency |
KERRY AGIASOTIS Regional Divisional Director, APAC BUSINESS SOLUTIONS: CUSTOMERS & SALES WELCOME |
MORE THAN 95,000 CLIENTS GLOBALLY Presence in 25 countries Customers across all industries and market segments Strong customer centric business model Experts in foreign exchange and international payments 135+ payment currencies to 200+ countries, 71 directly through clearing network |
Branch Hubs – includes all roles supporting complete customer lifecycle Sales Offices – remote sales executives with geographic or vertical responsibility SALES ORGANIZATION DESIGN Localized design to achieve in market objectives Right mix of Hunter and Farmer resources Hub and spoke geographic structure Important enabler of geographic expansion strategy |
Corporate ($500M+) High volume integrated payments Select Opportunities SME IS THE FOUNDATION OF OUR BUSINESS CLIENT GROWTH IN ALL SEGMENTS SME ($10M-$500M) FX and payment process management Micro (<$1M-$10M) Simple cost effective payments Direct Sales On-Line Service Channel |
EMBEDDED PAYMENTS THROUGH VERTICAL SOLUTIONS The benchmark service for banks, universities and law firms Integrated with existing core processing or ERP systems More than 700 Financial Institution clients world wide Expanded services for clients of mid-tier financial institutions Financial Institutions Simplifies payments for international students made in local currency Drives back office reconciliation efficiencies for education institutions Educational Institutions Tailored solution to the Legal IP industry Enables price certainty to clients for future payments Law Firms |
DIANE SCOTT Executive Vice President & Chief Marketing Officer and President, Western Union Ventures WESTERN UNION VENTURES WELCOME |
VENTURES: STRATEGIC FOCUS The preference for cash is strong globally** Leverage Our Core Assets: Brand, Customer, Network, Compliance % cash payments and purchases by region*** 57% 96% 84% 96% 99% 96% 61% *Source: McKinsey & Co., “Half the World is Unbanked”, October 2009; CGAP, “Financial Access” 2009; C.K. Prahalad, “Fortune at the Bottom of the Pyramid” 2004; Hammond et all, “Purchasing Power at the Bottom of the Pyramid” , 2007; World Bank 2009 Bottom of the Pyramid population, Company analysis **Source: McKinsey “Perspectives on Worldwide Payments”, February 2010 ***%=C2B Payments & Consumer Purchases in Cash by Region Connecting 2B* Underserved Consumers and Retail to a Digital World |
WU 3.0 Transaction Focused Gold Card Membership WU 2.0 Registered Customer Relationships Creating Loyalty 19M Members, 70 Markets BUILDING DEEPER CUSTOMER RELATIONSHIPS WU 1.0 Processing Transactions A Deeper Relationship, Part of Their Daily Lives |
MARKET, CUSTOMER AND TECHNOLOGY ENABLED INNOVATION Data Ventures (Value Add Services – Attachment Revenues) Digital Ventures (Web, Mobile – New Channels) Stored Value Ventures (Card, Mobile, Digital – New Products) Send / Receive Store Spend Monetize 1 2 3 |
DIGITAL: A GROWING MARKET OPPORTUNITY Fast growing digital market Market share opportunity Channel adoption growth New customer segments Smartphone adoption Growth in remittance and expansion to new use cases International P2P Money Transfer (IMT) USD Billions in principal Source: McKinsey Payment Map 2010, Aite, World Bank Analyses wu.com revenue CAGR 40-50% 24% p.a. 20 37 110 eChannel 2005 2010 2015 eChannel 13% p.a. |
DIGITAL VENTURES Today – Gaining Momentum Growth accelerating from single digit to 35% in 2011 $35M investment in new products, technology and talent (2012) Enhanced pay in/pay out options WU Mobile as a stand alone financial service or with 3 rd party mobile partners Vision: The Largest Cross Border Digital “Agent” |
STORED VALUE: AN ATTRACTIVE OPPORTUNITY Prepaid market forecasted to grow at a 20% CAGR globally through 2015 $628B market opportunity (GDV) Estimated global market revenue opportunity of $13-$20B Complementary and large revenue potential Monetizing remittance flows Utilizing the WU agent base beyond Money Transfer Source: BCG MasterCard Prepiad Market Sizing (2010) and internal estimates. |
STORED VALUE VENTURES Today – Gaining Momentum 2012-geographic expansion to 10 markets Broaden customer relationships to enable adjacent revenues Offer new ways for customers to access stored value Enable P2P money transfers, bill pay and more Leverage partnership model to drive scale Vision: The World’s Largest Global Reload/Cash Access Network |
DATA VENTURES: BIG DATA… GLOBAL SCALE Truly global, 200+ markets Migrant diaspora knowledge depth SME/VSE unique insights Monetization opportunities Cross sell other financial services Co-branded partner offerings Data augmentation Vision: The World’s Largest Database Of Underserved Customers Western Union Customer Base Underserved Beyond Money Movement |
Western Union Ventures Connecting the 2 Billion Underserved STORED VALUE DATA DIGITAL |
KHALID FELLAHI Senior Vice President & General Manager, Western Union Digital WESTERN UNION VENTURES: DIGITAL Bienvenue WELCOME |
Current state Future state WESTERN UNION DIGITAL ROADMAP Digital presence online and mobile $100M+ revenue, growth accelerating from single digit to 35% in 2011 Limited features, customer experience Strategic partnerships with mobile network operators Enabling digital channels globally $500M+ revenue by 2015, millions of customer relationships send/receive State of the art platform Global hub connecting all combinations of accounts, wallets and cash Significant investment, dedicated San Francisco office 80% of new customers new to the franchise! .com |
FOCUS ON KEY FEATURES & FUNCTIONALITIES WU-Wallet foundation WU Pay International deployment Mobile channel expansion Expanded “Account Funding” Account to Account products Mobile Wallet partnerships |
KEY RECENT DEVELOPMENTS Smartphone access Launched in May 2011 in U.S. iPhone, Android, BlackBerry Unique advanced features for payments 10%+ of online C2C transactions in U.S. Higher share of wallet Expanding to new geographies |
ACCOUNT KEY RECENT DEVELOPMENTS New service for bank account payout Launched in December 2011 in U.S. Recently expanded to U.K., Australia Payout to banks in 38 countries 90% new customers/use case Expanding to new payout geographies |
KEY RECENT DEVELOPMENTS WU Pay - proprietary alternative payment method Acquired startup eBillme Bank transfer/cash Portfolio of gift card and merchant for e-commerce Activating in the U.S., selected geographical expansion |
MOBILE TRANSACTION SERVICES GSMA lists 120+ initiatives globally WU approximately 30 partners globally 11 countries live/12 partners Established brand and presence Early stages, 3-5 year opportunity Partnering with MNOs, Banks, and Independents to Enable Mobile Transactions |
MIKE HAFER Senior Vice President, Stored Value WESTERN UNION VENTURES: STORED VALUE WELCOME |
WU 3.0 Transaction Focused Gold Card Membership WU 2.0 Registered Customer Relationships Created loyal WU relationships with 19M active members across 70 markets A deeper relationship that’s part of their daily lives BUILDING DEEPER CUSTOMER RELATIONSHIPS WU 1.0 Processing Transactions |
CONSUMER-FOCUSED SOLUTIONS USING WU ASSETS Via mobile SMS Phone/IVR Online Prepaid Agent Locations Utilizing the Remittance “Fuel” to Drive Convenience and Preference PHILIPPINES Receive Options |
CONSUMER-FOCUSED SOLUTIONS USING WU ASSETS Consumer Focused Model Using WU’s Unique Assets to Differentiate UNITED STATES Strong consumer value Strong satisfaction ratings vs. competitors Integrated MT/BP driving utility Source: Absolute Data proprietary Prepaid Card research, August 2011 |
A GO TO MARKET STRATEGY LEADING TO ACCELERATED GROWTH Utilizing a Dual Approach to Accelerate Growth Globally in Key Markets Expanding presence and success in U.S. India stored value account to improve convenience, monetize receivers, grow share of wallet and expand intra opportunity Western Union Launches Markets Airpak agent partnership leverages strong in country presence along with WU brand loyalty and inbound remittance “fuel” Utilize Partnerships to Launch Markets El Salvador Nicaragua United States India* European Union Jamaica* * Coming soon. |
VISION: THE WORLD’S LEADING GLOBAL LOAD/CASH ACCESS NETWORK Funds In/Out Services Funds in available in all markets Funds out in select markets based on ATM/POS environment Expanding service already in U.S. and Argentina Partnership with MasterCard rePower Funds in/funds out drives utility, usage, convenience Expand and Enable Funds In/Out for Stored Value Worldwide Have begun global expansion in key markets |
STORED VALUE — WU ON AN UPWARD TRAJECTORY Global expansion New customers Maximize network distribution Grow partnerships 2 countries 40 countries 10 countries 2010 2012 2015 |
DIANE SCOTT Executive Vice President & Chief Marketing Officer and President, Western Union Ventures BRAND WELCOME |
FIVE NUMBERS TO REMEMBER *Source: Western Union 2011 global consumer tracking study of consumers in money movement category Underserved consumers SMEs with cross-border payment needs Agent locations Trust in the brand Global brand awareness* |
OUR BRAND IS UNIQUELY POSITIONED ON THE GLOBAL STAGE Western Union enables customers to move up from the bottom of the pyramid. This is one of the most compelling and consequential trends of our time. The business opportunity is massive. |
WESTERN UNION IS THE MOST GENUINE GLOBAL MAINSTREAM BRAND |
WHERE A SMARTPHONE CAN HARDLY BE FOUND, THERE’S ALWAYS A WESTERN UNION AROUND THE CORNER |
WHERE RETAIL BRANDS MIGHT BE IN 10 YEARS, WESTERN UNION IS ALREADY THE PLACE TO BE |
WHERE DIGITAL BRANDS ARE BEGINNING TO GO, WESTERN UNION IS ALREADY A HIGHLY TRUSTED BRAND |
MOVING MONEY FOR BETTER Places Western Union at a pivotal point in a customer’s life and business A purpose-driven, do-brand inspired by the underserved consumers and businesses A modern brand platform, inspiring new behaviors, elevating engagement Lifting up the brand to succeed across new and existing segments |
ENGAGING GLOBAL BRAND BUILDING ACTS Rolling series of engaging brand acts over seven months 9.5 billion total media impressions 4,700 media placements globally 767 million digital impressions 95 million social media impressions Site visits from over 205 markets Raising company profile and establishing relevancy with younger, more connected audience |
BUILDING THE BRAND AT THE MOMENT OF TRUTH Enhancing our global brand image and experience through westernunion.com DIGITAL RETAIL New interactive merchandising unit to improve customer experience MOBILE Expanding access to payment services through mobile devices |
STRETCHING THE BRAND EVEN FURTHER Refined brand architecture clearly provides an ownable platform for our products, services and partnerships We are evolving visually our brand as we reach out to new segments with greater digital access, beginning with the WU branding in newer channels |
WESTERN UNION BRAND – ON THE MOVE A purpose-driven, do-brand inspired by underserved consumers and businesses globally 2 Billion Customers Are Waiting. |