DB small cap conferences London, March 25 2009
Disclaimer All forward ‐ looking statements are Ingenico management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward ‐ looking statements. The accounting treatment of acquisitions and, in first place particular, Sagem Monetel, in accordance with IFRS 3 has a substantial impact on Ingenico's financial statements For better appreciation of the Group's performance, some data or aggregates presented hereafter are calculated on an adjusted basis page 2
Ingenico at a glance We transformed our group in 5 years Shareholder structure * as of Feb28 2009 Sagem We have transformed our company since last economic downturn Jupiter Sécurité AM 8% 22% Fidelity 2003 2008 8% x2 Size Concert 125 countries 60 countries Geographical footprint Consellior Direct in 15 countries Direct in 40 countries (1 ) Distribution 5% Technological leadership “Behind in rolling out new Best in class R&D product line” (Sagem Monetel) ** Terminals & « beyond Activity scope Terminals Public payment » services 57% Fabless model Cost structure Own production facility Market capitalization 12.5% 0% Profitability as of March 23 2009 (€20.3m) Net debt +€77.5m Number of shares: 47 791 674 (1) In ge nico subsidiaries an d offices 24 FY2008 R esults Share price: €12.84 Market capitalization: €614m * Shareholder structure based on company information & broker estimates ** Including shareholders below 5% page 3
Ingenico: a leader in a highly concentrated and protected market An unique position on POS market thanks to … offering innovative and largest portfolio of key differentiators … products and services ‐ Technological advance on POS ‐ Leader with 15million POS and 39% market share ‐ Balanced geographical presence between mature and emerging markets: ‐ Present in 125 countries ‐ No country worth more than 10% of global revenue ‐ Direct distribution model ‐ Fab ‐ less model Signature Counter Wireless PinPad Unattended Top Capture ‐ Focused strategy: ‐ « beyond payment » products ‐ Enlarging POS product range ‐ Investing in services ‐ « beyond payment » services Serving Tier 1&2 retailers and banks: Supporting our customers generating revenue or reducing costs with a quick ROI Acquirors & retail banks: to indirectly address merchants Acquisition business model: ‐ Monthly fees [0 ‐ 50 € ] ‐ % of transaction value [0.05% ‐ 3.5%] Tier 1&2 retailers: ‐ Lane productivity ‐ Power of negotiation on transaction fees page 4
Taking advantage of competitive environment and market trends Major market (r)evolutions leading to Highly concentrated market opportunities to gain market share 39% ‐ Ingenico: Security remains a priority (*) Top 3: 89% ‐ Verifone: 34% – Payment fraud still a concern ‐ Hypercom: 16% – Payment card market continues to grow driven by security standards ‐ Other players: mostly local players – Terminal is a key element in the end to end security ‐ PAX: mostly in China ‐ Bitel, Cybernet: in Korea New technology … with high barriers of entry – Wireless, mobility ‐ Certification/Security Customer needs & new business payment challenges ‐ Compliant with national schemes – Strong demand for productivity increase at lower costs ‐ Development of customer specific applications – Emergence of new habits for Tier1 retailers (line boosting) ‐ Scale – Increased demand to increase customer shopping experience ‐ Proximity New POS “ beyond payment ” usage ‐ Technological design Less – Increased demand for biometry terminals in emerging Design virtuous circle production countries costs Less Less repair components costs Greater speed of Regulation changes transaction Increased Lighter – All terminals to be PCI compliant by July 2010 reliability weight ‐ End ‐ to ‐ end payment solutions – SEPA in Europe ‐ Customer loyalty – EMV (*) Estimated market share based on public information page 5
New products addressing “beyond payment” customers demand PPDA WEBPOS First device on the market First “all ‐ in ‐ one” rugged terminal on the market – Midway device between PC based EPOS and basic ECR – Bi ‐ face terminal offering wireless services combining vertical Budget applications & secure payment Multi Lane >2000€ EPOS Retail Untapped market with high Alternative 1000€ Standard PC Merchants potential 500€ Ingenico’s WebPOS 200€ Hospitality ECR Features Very poor Good Highest Retail Gaming (queue ‐ busting) Untapped market with high potential Target Market Mobile – 20M points of sales not yet equipped Hospitality Services – Replacement of 45M ECR Leisure Access / Control Entertainment Health Common market features – Dedicated terminal Common market features – Integrated solution – Value ‐ added Services – Different verticals with same needs Presented at Cartes’08: very positive market feed ‐ backs page 6
A business model evolution towards services… What we used to do: What we did in 2008: What we are doing: Mostly hardware Hardware & first A flexible, tailored and global services solution to reduce operation costs and increase revenues Running applications on user friendly Value Added Services terminals France + Transaction management international AXIS in Transaction management Connectivity/Telecom “all in the box” France Services around terminal Services around terminal Services around terminal User friendly interface to interact with services: color, larger screen… Leveraging on POS leadership to increase recurring revenues More terminals =>more service access points => more service revenues page 7
… to respond customers’ needs which are not limited to hardware Ingenico’s key Revenue Customer’s need model competitive advantage Optimize services go to Value Added (*) Per transaction Loyalty, ticketing, top up, … market and increase visibility Services (fixed charge) on service usage End to end Service Level Agreement Set up fees+ per Transaction Payment protocol portfolio. (*) Payment application transaction or Centralized Payment to Management End to end Security per POS/month reduce TCO Full visibility Telco management: SIM, Monthly “All in the box” ready to be Connectivity Internet used. Optimized coverage, subscription charge backup if failure Install, maintenance, remote Services around Per unit, Remote Fleet Management estate mgt (ex: software per application terminal to reduce on site operations upgrade & apps download) Large terminal range with The most suitable hardware Per unit Hardware embedded security and (to support Payment + Vertical) customer interface (*) Fixed charge per transaction page 8
Our market approach Customers Customers Merchants benefiting from a “one stop shopping” approach and same services managed as for Tier1/Tier2 retailers Service Service Direct provider provider Channel iso / Bank iso Bank / Bank Bank Distributor Distributor VAS Solution Retail Banking PSP Segment VAS Solution Tier 1/2 VAS Solution • Fleet management • Full managed services • Transaction Ingenico (terminal, transaction, • Connectivity management solutions connectivity) • Transaction mgt • Cross border • Cross border • Vertical solution • VAS: Loyalty, top Up • VAS: Loyalty, top Up • VAS: Loyalty, top Up page 9
How we will implement our service strategy Export French industrialized experience in Transaction Management Services (>150 retailers) – Up selling existing customers in France – Export services in others countries Address customers' global & international needs through our Global Services Infrastructure – End to End solutions (from Terminal to host) – One stop shop Develop partnerships to offer VAS applications based on Incendo Online platform and operated by Ingenico page 10
2008: a year of transformation page 11
2008: intense preparation for future Succeeding in merging with Sagem Monetel Succeeding in integrating Landi into Ingenico Implementing our Leadership 2010 Plan … while delivering financial improvements as promised Objective: sustained profitable growth page 12
2008: building for the future Merger with Sagem Monetel in March 2008: an optimum geographical and knowledge mix ‐ Worldwide leader in payment terminals ‐ 2.5 million installed terminals ‐ Maintained technological advance with best R&D ‐ Complementary commercial coverage ‐ Optimized production costs ‐ Best in class product design & performance (Telium) ‐ Strong in wireless POS Acquired Fujian Landi in China in July08 ‐ Leader in Chinese market. We’re Chinese in ‐ #2 in China China ‐ Better than expected contribution in revenue ‐ Investing in fast growing developping markets and margin in 2008 Consolidated leadership in POS market page 13
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