Bond investor presentation May 2014
Disclaimer This presentation contains forward-looking statements. The trends and objectives given in this presentation are based on data, assumptions and estimates considered reasonable by Ingenico. These data, assumptions and estimates may change or be amended as a result of uncertainties connected in particular with the performance of Ingenico and its subsidiaries. These statements are by their nature subject to risks and uncertainties. These forward-looking statements in no case constitute a guarantee of future performance, involves risks and uncertainties and actual performance may differ materially from that expressed or suggested in the forward-looking statements. Ingenico therefore makes no firm commitment on the realization of the growth objectives shown in this release. Ingenico and its subsidiaries, as well as their executives, representatives, employees and respective advisors, undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future developments or otherwise. 2
Table of contents 1. Ingenico at a glance 2. Ingenico key assets 3. Solid business fundamentals 4. Strong financial profile 5. Outlook 6. Conclusion 7. Appendix 3
1 Ingenico at a glance
Ingenico, a world leading provider of payment transactions A truly global player, with strong scale effect Positioned all across the value chain from payment terminals to services, including e-commerce and mobile Market leader in hardware: >20 million POS installed, accepting more than 250 payment means and connected to more than 1,000 acquirers/banks Managing 3.5bn payment transactions/year A well-balanced presence in mature and emerging markets A large and diversified customer base A proven track record in executing strategy 5
A large and diversified customer base Deeper access to Tier 1 merchants & banks > Certified by more than 1,000 acquirers/banks in over 125 countries > 70% of top 30 global retailers* Providing solutions to the full spectrum: from large to small customers Partnering with top global players > Apple, Google, Paypal, Microsoft *From “Global Powers of Retailing 2013” by Deloitte 6
Active presence in fast-growing markets High-growth segments The right geographies 413 +8% 286 47% +9% 223 22% +12% +14% 9% +5% +7% 2011-2013 CAGR Emerging: LAR, Eastern Europe, MEA, emerging APAC Source: Euromonitor& World payment report Mature: NAR, Western Europe, mature APAC Source: Euromonitor 7
Ingenico, the central player thanks to payment expertise and white labelling Approval Schemes Acquirers Issuers Gifts, Loyalty Multiple payment standards, Certified programs, with local/global protocols connections Prepaid services and regulations GATEWAY Multi-channel Certified connections Reporting, VAS, CRM and Data analytics Merchants Consumers 8
Our ambition: to enable merchants to increase their sales with secured and cost effective payment solutions For merchants – directly or through acquirers & banks > Facilitating acceptance of all payment means for a multi-channel approach > Providing cost effective payment and business solutions > Enabling data capture For consumers: providing a seamless purchasing experience whatever the sales channel and the payment means 9
Ready for a new development phase 2006 - 2008 2008 - 2009 2010 - 2012 2013 - 2016 Achieving profitability Consolidating POS Building foundations Our ambition leadership for expansion into services > Moved towards fabless model > Merged with Sagem > Acquisition of Ogone, > Acquired Easycash, Monetel > Acquired Moneyline the leading pan- leading payment to cover pre- European online > Launched new service provider processing solutions payment services product range on a > Increased presence for Tier1 retailers provider single platform in emerging markets > Continuation of > Acquired Landi in (acquisitions in Russia strategic partnership China and Indonesia) > Philippe Lazare is (Samsung, telecoms appointed CEO (2007) > Invested in mobile operator,…) with ROAM Data > Double digit growth > FY08 Rev: €728m vs. > Demonstrated > FY12 rev: €1.2bn and increase €506m in FY06 business model > FY12 Transactions & profitability resilience > EBITDA: 15.9% vs. 11% services: 30% of total in FY06 revenue (+12pts/2008) > EBITDA: 18.5% 10
Ingenico: developing a well-balanced business model… Payment Terminals Services Growth Driver Growth Driver Dual growth engine > New business segments in > Growth in e-commerce and supporting each other… both mature and emerging m-commerce transaction markets volumes … with Telium 3, our next generation payment > First equipment in > Competitive advantage emerging markets platform, as a key from integrated capabilities across physical, on-line and accelerating component mobile payments > Replacement cycle (upgrade security, government requirements, > Further growth, driven by …) technological leadership, experience and global footprint 11
2 Ingenico key assets
We have a multi-local differentiated strategy Still strong growth potential in Latin payment terminals worldwide America > In mature markets: US (EMV, new Europe 14% use cases) SEPA > Multi-channel driving new terminal sales in Europe 43% Asia 17% 2013 Revenue Pacific > In emerging markets: growing €1.37bn middle-class (50% of the world’s population by 2030, vs 30% today)* 9% > New regulations (Turkey) / verticals EEMEA 9% 8% Services: further growth, North Central America driven by technological operations leadership, experience and global footprint 13
Innovation as a key pillar of our strategy 8% of group revenue (9% excluding TransferTo) R&D engineers: 25% of group employees through a multi local presence Broad expertise in development: from hardware to software A worldwide network of data centers managing >3.5bn transactions/per year Improving consumer’s experience, whatever the channel: 14
A pragmatic innovation approach In-house research for Strategic technological partnerships for non cutting-edge payment security payment features Acquisition of technology for better “time-to-market” efficiency 32% 37% 15
A comprehensive offer to work with our customers and partners New consumers habits Increased payment touch points Mobility, Internet, social medias Mobile, multi-lane, kiosk, desk, etc Introduction of tablets/smartphones Multichannel strategy across the full combined with mPOS for merchants payment value chain Smart Transaction terminals gateway Collecting Acquiring VAS 16
Solid business 3 fundamentals
We are the leader in smart terminals, a market with high barriers to entry World leading provider of payment terminals … with high barriers to entry > Installed base with >20m POS > Certification / Security Market driven by global & local � > Fabless model / Optimized supply chain standards > Focused strategy Constant intensification of the Global � Card Regulation over the last 10 years > Scale …in a highly concentrated market > Proximity > Ingenico : 44% 1 > Portfolio of customer applications Top 3: [85-90]% > VeriFone : 38% 1 > More and more technology on board > Pax: 6% 1 > Other players: mostly local players 1 Estimated market share based on 2013 published revenues 18
...with increase software and technology into smart terminals Terminals represent the tip of the iceberg A unique & comprehensive Multiple payment options network, connected to >1,000 acquirers/banks, with >2,000 applications Local Standards & Apps Global Global Compliance Standards 19
We have the right and innovative products and services A unique platform for services (Telium): NFC, multimedia as a standard Open to all payment methods (international schemes, close-loop, NFC, wallets, QR code, etc.) Tailored to new regulations (ex: ECRPOS in Turkey) Fiscal Memory New payment Mobile Apps solutions methods 20
We have started to diversify the business model towards payment services Group Europe-SEPA 28% 2013 2013 48% Revenue Revenue 52% 5% 67% 21
Europe/SEPA as the forefront of business diversification ~ 50% of revenue derived from services (vs. 27% in 2009) 1000 employees on payment services 160k merchants connected to our platforms in Europe Managing payment services, whatever the channel in-store / on-line / mobile 22
4 Strong financial profile
Strong financial track record Revenue EBITDA 300 279 34,0% 1371 250 223 1206 29,0% 200 1001 180 166 907 150 728 701 24,0% 116 568 105 20,4% 87 100 18,5% 18,3% 18,0% 19,0% 50 15,9% 15,0% 15,3% 0 14,0% 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 Moving to Telium 2 Merger with Easycash Ogone platform Sagem acquisition acquisition Monetel Investing into promising segments and markets 2013 organic growth: +14% 2013 EBITDA: +25% 2013 EBITDA margin: 20.4% 24
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