H1 - 2006 RESULTS Business Report 21 September 2006 Park Hyatt hotel Solutions de transactions et de paiement sécurisées
Results H1 2006 1 - H1 2006 Financial Results > C. MALHER 1 - H1 2006 Financial Results > C. MALHER 2 - B usiness Overview > A. d’ANGELO 2 - B usiness Overview > A. d’ANGELO 3 - Questions / Answers 3 - Questions / Answers H1 2006 Business Report 2 10/14/2008 Solutions de transactions et de paiement sécurisés
Financial Results H1 - 2 0 0 6 H1 2006 Business Report 3 10/14/2008 Solutions de transactions et de paiement sécurisés
H1 2006: Key Achievements EBIT SALES 255,2 +25% 14,7 207,4 x 11,6 1,1 2005 2006 OUTSTANDING GROWTH STRONG PROFITABILITY IMPROVEMENT Divestments HEADCOUNT 1269 ITS 1128 1110 INGENICO DEBITEK SWEDEN 06/2005 12/2005 06/2006 H1 2006 Business Report 4 10/14/2008 Solutions de transactions et de paiement sécurisés
Consolidated income statement H1 2006 % Millions of € H1 2005 H1 2006 improvement Sales 207,4 255,2 Cost of goods sold -147,5 -176,0 IFRS 2005: Gross margin 59,8 79,2 +2,3% capitalized R&D 28,8% 31,1% +0,2% R&D - 17,8 -21,5 8,6% 8,4% Sales & Marketing - 15,6 -16,1 +1,2% 7,5% 6,3% G&A - 25,3 -26,9 +1,7% 12,2% 10,5% Operating income 1,1 14,7 Profitability 0,5% 5,8% +5,3% H1 2006 Business Report 5 10/14/2008 Solutions de transactions et de paiement sécurisés
Gross margin H1 2005 H1 2006 Gross margin evolution Sales in M€ Terminals 163,1 204,5 Software and Services 40,5 50,7 Other 3,7 Total 207,3 255,2 Gross margin (% of sales) Terminals 43,0% 43,2% Software and Services 20,3% 21,7% Other -1,4% N/A Total 37,8% 39,0% Indirect Costs -9,0% -7,9% Gross margin after indirect costs 28,8% 31,1% H1 2006 Business Report 6 10/14/2008 Solutions de transactions et de paiement sécurisés
Consolidated income statement H1 2006 Millions of € H1 2005 H1 2006 Operating income 1,1 14,7 Non recurring items - 24,0 1,8 EBIT after non recurring items - 22,9 16,5 Net financial expenses - 1,0 - 6,2 NOL utilization Income taxes - 0,8 - 2,0 Net income - 24,6 8,3 EPS N/A 0,28 H1 2006 Business Report 7 10/14/2008 Solutions de transactions et de paiement sécurisés
Consolidated income statement H1 2005 H1 2006 Non recurring items in M€ Restructuring charges - 2,5 -2,3 ITS, Debitek, Ingenico Sweden Disposal of Assets 2,8 Provision for non quality - 9,9 0,0 Legal claims - 1,5 2,1 Other (including obsolete - 10,1 - 0,8 inventories) TOTAL - 24,0 1,8 H1 2006 Business Report 8 10/14/2008 Solutions de transactions et de paiement sécurisés
Financial income (expense) O/W 2 M€ are unrealized Millions of € H1 2005 H1 2006 losses Gains / losses on foreign 0,8 - 2,5 exchange Interests expenses - 1,2 - 3,7 Other expenses - 0,6 TOTAL - 1,0 - 6,2 H1 2006 Business Report 9 10/14/2008 Solutions de transactions et de paiement sécurisés
Equity and Net debt M€ Net Debt: January 1st, 2006 101,3 64,5M€ Gearing: � H1 net result 8,3 62,2% � Capital increase 1,3 � Share based payments 2,5 � CTA (1,5) � Treasury stock purchases ( 8,1) June 30, 2006 103,8 H1 2006 Business Report 10 10/14/2008 Solutions de transactions et de paiement sécurisés
Consolidated cash-flow statement Millions of € H1 2005 H1 2006 Cash flow from (used in) operations - 9,0 9,8 Change in working capital - 9,6 - 7,0 Cash-flow from operations -18,6 2,8 +21,4 Cash Flow opérationnel - 18,6 2,8 ITS, CAPEX -7,1 - 4,6 Debitek, Ingenico Effect of acquisitions & divestitures - 1,3 10,5 Sweden Currencies and others 9,2 * -2,3 Purchase of own shares -7,5 Change in cash & cash equiv. -17,8 -1,1 * O/W Oceane effect H1 2006 Business Report 11 10/14/2008 Solutions de transactions et de paiement sécurisés
Net debt / Gearing Millions of € 31/12/2005 30/06/2006 Financial liabilities - 175,0 - 162,8 Net cash 111,5 98,2 Net debt - 63,5 - 64,6 Equity 101,3 103,9 Gearing - 63% - 62% H1 2006 Business Report 12 10/14/2008 Solutions de transactions et de paiement sécurisés
Business Overview H1 2006 Business Report 13 10/14/2008 Solutions de transactions et de paiement sécurisés
Actions and Achievements Outstanding Revenue Increase Latin America – North America – Italy – Asia + 47% + 71% + 66% + 47% + 71% + 66% + 109% + 109% + 47% + 71% + 66% + 109% Supply Chain Improvement Qualification of new EMS in Romania and China Plastics closer to Customer (Brazil, Romania, China) EMS Quality Level Improvement Improved production yields in EMS Ingenico employees working in EMS Russia Russia Geographical Expansion France - Switzerland – Russia – Korea - India India India France France South Korea Switzerland South Korea Switzerland H1 2006 Business Report 14 10/14/2008 Solutions de transactions et de paiement sécurisés
Major Wins Turkey – 50K Wireless Terminals delivered before year end Australia – First Order with Commonwealth Bank, 35% of their business Colombia – Market leader with 95% share The Netherlands – 5M€ orders for EMV migration USA – 3 Ingenico Terminals Certified by “Chase Paymentech Solution” US largest Transactions processor H1 2006 Business Report 15 10/14/2008 Solutions de transactions et de paiement sécurisés
Market Growth Factors EMV and ‘Chip and Pin’ deployed in 5 countries only, acceleration to ’08 and ’09 deadline Pan-Continental payment platforms like SEPA* Emerging Countries terminalization Tax collection Tourism Security and competitiveness to enlarge the Merchant base for the acquirer banks Mobility and communication multiplicity Unattended: migration to open payment system Contactless and Near Field Communication *Single European Payment Area H1 2006 Business Report 16 10/14/2008 Solutions de transactions et de paiement sécurisés
Ingenico Value Chain LARGE SYSTEM RETAIL ROUTER INTEGRATORS NCC BACK END Traditional Payment Issuing Bank Network Aggregation/Hosting Cards Processor MERCHANTS Acquiring Bank SPECIFIC Vertical H1 2006 Business Report 17 10/14/2008 Solutions de transactions et de paiement sécurisés
Ingenico Product Strategy New range of unattended devices Security higher than standards required Ingenico Product Contactless and NFC Strategy Terminals Introduce Biometry H1 2006 Business Report 18 10/14/2008 Solutions de transactions et de paiement sécurisés
Biometry Integrate biometric captors in terminals Merchant Identification Finger Print storage in case of dispute Cardholder Identification H1 2006 Business Report 19 10/14/2008 Solutions de transactions et de paiement sécurisés
Ingenico Product Strategy New range of unattended devices Increase Patent Effort Security higher than standards required Environment Ingenico Product friendly design Contactless and NFC Strategy Terminals Introduce Biometry Top Class design style High resolution display H1 2006 Business Report 20 10/14/2008 Solutions de transactions et de paiement sécurisés
A True Patent Policy Over 30 Patent Projects since September 2005 setup of a setup of a Patent Committee A printer using standard ordinary Patent Committee paper and no ink under Chief Scientist responsibility A new method to ascertain that a POS is malware-free A new one-time-password system with improved security Terminal features to implement a shop alarm Increasing terminal autonomy through paper chamber heating H1 2006 Business Report 21 10/14/2008 Solutions de transactions et de paiement sécurisés
Conclusion Ingenico is re-inventing itself within its own culture Ingenico is taking advantage of its strength, of being a Multi-Local company Ingenico is innovating, designing the future of secure transaction acceptance solutions We are expanding our territorial coverage We are going to deploy globally our services and solutions We will enter collateral markets ’07 Objectives reach Market growth in Mexico, India, Russia. Terminal conversion in France and Germany. Volumes sales of: Mono-application Terminals, Blue Tooth, WiFi and GPRS Retail switching and hosting solution to be deployed in Europe H1 2006 Business Report 22 10/14/2008 Solutions de transactions et de paiement sécurisés
H1 2006 Business Report 23 10/14/2008 Solutions de transactions et de paiement sécurisés
Questions/ Answ ers H1 2006 Business Report 24 10/14/2008 Solutions de transactions et de paiement sécurisés
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