Transition to Tomorrow Annual Report 2018 Key Figures
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Transition To Tomorrow Annual Report 2018 Key figures Wirecard Group 2018 2017 Revenues 2,016.2 1,488.6 in EUR million EBITDA 560.5 410.3 in EUR million EBIT 438.5 311.5 in EUR million Earnings per share (basic) 2.81 2.07 EUR Equity 1,922.7 1,640.0 in EUR million Total assets / total equity and liabilities 5,854.9 4,532.8 in EUR million Cash flow from operating activities (adjusted) 500.1 375.7 in EUR million Employees (average) 5,154 4,449 of which part-time 317 329 Segments 2018 2017 Payment Processing & Risk Management Revenues 1,479.9 1,064.8 in EUR million 38.99% EBITDA 481.3 322.7 in EUR million 49.13% Acquiring & Issuing Revenues 609.3 488.5 in EUR million 24.73% EBITDA 79.9 86.6 in EUR million –7.69% Call Center & Communication Services Revenues 9.1 9.9 in EUR million –7.65% EBITDA –0.5 1.0 in EUR million –154.08% Consolidation Revenues –82.2 –74.6 in EUR million 10.27% EBITDA –0.1 0.0 in EUR million 370.70% Total Revenues 2,016.2 1,488.6 in EUR million 35.44% EBITDA 560.5 410.3 in EUR million 36.61% Content Letter from the CEO 8 III. Forecast and report on opportunities Report of the Supervisory Board 10 and risks 86 Corporate Governance Report and Corporate 1. Forecast 86 Governance Statement 15 2. Report on opportunities and risks 92 Wirecard stock 25 3. Overall statement on the Group’s expected development (outlook) 115 I. Foundations of the Group 31 1. Group and employees 31 Consolidated statement of financial position 118 Consolidated income statement 120 2. Business activities and products 37 3. Objectives, strategy and corporate Consolidated statement of comprehensive income 121 management 42 Consolidated statement of changes in equity 122 Consolidated cash flow statement 123 4. Research and development 47 5. Remuneration report and takeover law Consolidated cash flow from operating disclosures 51 activities (adjusted) 124 Change in intangible assets and property, plant and equipment 125 II. Economic report 65 Explanatory notes 127 1. General conditions and business performance 65 Independent auditor’s report 218 2. Results of operations, financial position Responsibility statement 219 and net assets of the Group 71 3. Results of operations, financial position Glossary and net assets of Wirecard AG 80 Imprint 4. Report on events after the reporting date 85 Management Board of Wirecard AG Dr. Markus Braun – CEO Susanne Steidl – CPO Alexander von Knoop – CFO Jan Marsalek – COO Wulf Matthias – Chairman of the Supervisory Board of Wirecard AG Letter from the CEO Dear Shareholders, Dear Ladies and Gentlemen, We can look back on an extremely successful 2018 fiscal secure and individual purchasing experience for consum- year both from a technological and fundamental perspec- ers across all sales channels, retailers can benefit from tive. the disruptive force of digitalisation and not only offer nu- merous innovative payment methods but also accompa- As a result, we were able to acquire around 52,000 new nying value-added services such as digital financial ser- customers during the reporting period and now support vices. 279,000 customers from a diverse range of sectors around the world. Another focus of the research and development activities was the further roll out of our innovative mobile payment The transaction volume processed in the reporting period solution boon. in more countries, as well as boon. pay- increased by 37.3 per cent in comparison to the previous ments via Google Pay, Apple Pay and the three largest year to EUR 124.9 billion. The transaction volume in Eu- wearables platforms Fitbit, Garmin and Swatch were en- rope increased by around 21 per cent in comparison to the abled. previous year to EUR 62.5 billion, while a further EUR 62.4 billion was processed outside of Europe, represent- Other important technological activities were the prepara- ing growth of around 59 per cent. tion of the migration of the acquired customer portfolios in the USA and the Asia-Pacific region into the Wirecard Consolidated revenues increased by 35.4 per cent to platform and the development and implementation of a EUR 2.0 billion. Consolidated operating earnings before global computer centre strategy. interest, tax, depreciation and amortisation (EBITDA) in- creased by 36.6 per cent to EUR 560.5 million. We will With regards to the accusations made by a whistleblower propose to this year's Annual General Meeting that a div- at the site in Singapore, I would like to point out that both idend of EUR 0.20 per share is paid to shareholders. our internal investigations and also the independent ex- ternal audit into the incidents commissioned by us did not One main focus of the product development activities in uncover any indication of so-called “round-tripping” or cor- the reporting period was the development of innovative ruption within the conducted audit activities. There were value-added services in the area of data analytics. By al- also no material impacts on the net assets, financial posi- lowing retailers to analyse consumer and purchasing be- tion and results of operations. As well as ensuring trans- haviour in real time, we help them to, amongst other parent external reporting, the Management Board is com- things, generate additional revenue and avoid customer mitted to making ongoing investment in the continuous migration using targeted and customer-specific offers. improvement of global internal compliance, auditing and control processes and to providing the necessary re- In addition, other innovative value-added services, such sources. as issuing digital loans, are integrated into our global plat- form solution. We are convinced that the act of making I am optimistic that Wirecard has a fantastic future ahead payment will fade into the background in future and will of it. We confirm our forecast for operating earnings be- become a fully digital process. By creating a convenient, fore interest, tax, depreciation and amortisation (EBITDA) of between EUR 740 million and EUR 800 million for the 2019 fiscal year. An unsere Aktionäre Brief des Vorstandsvorsitzenden 9 I would like to take this opportunity to express special thanks to our employees, who work tirelessly on a daily basis to provide our customers and partners with the best possible support, and thus guarantee the sustainable growth of the company. On behalf of the entire Management Board, I would also like to thank our shareholders, customers and partners for their trust and their loyalty and look forward to further good and successful cooperation in the future. Yours sincerely, Dr. Markus Braun CEO Wirecard AG April 2019 Report of the Supervisory Board Dear Shareholders, The 2018 fiscal year was characterised by a consistently In order to exercise our monitoring function, we main- very good business performance, which in turn culmi- tained intensive contact with the Management Board. The nated in the company's inclusion in the DAX30 group of Management Board reported to us regularly, promptly and companies in September 2018. comprehensively in verbal and written form both during and outside of the Supervisory Board meetings about all We were able to continue our strategy of global growth relevant themes related to the management of the busi- and acquire customers and business partners in strategi- ness of the company. This included, in particular, written cally important growth markets such as China. This was monthly reports on the most important business figures, not least the result of both strategically important invest- reports and explanations on the corporate strategy and ment in new technologies as part of the company's own planning, the business performance and current status of research and development activities and also the acquisi- the Group and the accounting process and effectiveness tion of promising companies and customer portfolios. In of the company's internal control and risk management the 2018 fiscal year, we also experienced strong, predom- system and the risks to the Wirecard Group identified by inantly organic growth, which was reflected in the pleasing the Management Board, as well as all relevant business development of all important key performance indicators. transactions and preparations to implement strategic in- A major contribution was made by the acquisition and in- tentions. Matters requiring approval, planned investments tegration of the comprehensive customer portfolio of the and fundamental questions about corporate policy and Citigroup in the APAC region. The growth targets for this corporate strategy were covered in particular detail, and globally active provider of financial technology were thus the respective decisions were taken on the basis of ex- realised operationally and achieved in an outstanding tensive documentation and intensive and detailed discus- manner. sions with the Management Board. Additional control measures, such as an inspection of the company's docu- In the following report, we want to inform you about the mentation and the appointment of special experts, were main focus of the Supervisory Board's activities over the not necessary in the 2018 fiscal year. last fiscal year. The Supervisory Board of the company kept itself continuously and intensively informed about the The Supervisory Board convened for eight meetings in development, position and perspectives of the Wirecard the year under review. On numerous occasions between Group in the 2018 fiscal year. The Supervisory Board per- meetings, important or urgent information was also con- formed the tasks incumbent upon it pursuant to the law, veyed in writing, or in the context of telephone confer- the Articles of Association and the rules of business pro- ences, and resolutions were issued in writing or by tele- cedure, and consulted with and supervised the Manage- phone.