Investors Presentation May 2012 Disclaimer This presentation - PowerPoint PPT Presentation

Investors Presentation May 2012

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

Ingenico: a world leader in POS Terminals 2011 sales: €1bn World market share: 38%*  N 1 in Europe  N 1 in China  N 1 in Asia ‐ Australia  N 1 in Brazil  N 2 in North America Installed base: >17 million POS worldwide An international group  First customer: Brazilian  First nationality of employees: Chinese  First country by revenue: Germany * Estimated market share based on published revenue 3

Ingenico: an experienced and focus management team CEO: Philippe Lazare  Board member since March 2006  CEO since July 2007  Chairman & CEO since January 2010 Main achievements:  Achievement of fabless model  Acquisition of Sagem Monetel: best in class R&D  Acquisition of Landi who became n 1 in China  Structured the group in Regional Business Units with managing directors responsible for full P&L  Positioned Ingenico in the Transactions field : acquisition of easycash, leading PSP in Germany, internationalization of its business model is underway Seasoned management team from high tech and payment companies (Paypal, Mastercard, Experian, Gemalto, …) 4

Ingenico: providing secured solutions through innovative portfolio of terminals Renewed range of payment terminals in 20 months  Telium2 OS as cost & performance differentiating factor The right range of terminals: fully part of retail experience  The right form factors: color, touch screen, all ‐ in ‐ one terminal (iSMP)  The right platform of applications  NFC contactless embarked  EMV: the Group DNA New solutions to address new markets & mobility  iSMP: Turn iPod touch  & iPhone  into EMV secure mobility payment solution  iWL touch 280 ‐ 350: The 1st mobile payment solution designed for merchants’ value ‐ added services 5

Ingenico: the right presence to leverage geographies Number of POS terminals per ‘000 people Emerging markets* as a growth driver 45% of 2011 revenue, vs.41% in 2010  #1 in China, leader in Brazil  Emerging Countries Still growth opportunities in South ‐ East Asia,  avg. 3 terminals /1,000 inh. LATAM outside Brazil, Russia, Africa Europe SEPA: leveraging position of Mature countries Pan ‐ European PSP avg. 24 terminals per 1,000 inh. Operating >350,000 merchant terminals  Supporting >250,000 terminals for banks  42% of revenue derived from services in 2011  Increased pipe of cross ‐ channel deals  US market development All products available for large retailers  Source: Euromonitor / IMF Increasing pipe of pilots of Class A  certifications with ISOs & processors Ready to capture growth driven by EMV  migration as EMV is part of group DNA *Emerging markets are Latin America, Asia ‐ Pacific and EEMEA 6

Ingenico: the right assets to provide one ‐ stop ‐ shop solutions to merchants Agile payment infrastructure & largest portfolio of cross ‐ channel & cross ‐ border solutions  Platforms supporting more than 2billion transactions in 2011  easycash solutions  Front ‐ end pre ‐ processing solutions (AXIS)  Increasing deployment of on line solutions The right approach to capture more value: increased presence on verticals  Small merchants: easycash range of payment solutions  Loyalty: easycash  Healthcare business unit through XIRING acquisition  Nomadic: ROAM Data 7

Ingenico: a growing worldwide player in the payment ecosystem In the payment ecosystem, payment terminal will remain a key element  Continuous shift towards card electronic payment  Gateway to cash usage moving towards dematerialized services (top ‐ up, air time, bill payment,…)  New shopping & payment experience driving shift towards combined Physical + Online + Mobile payments Merchant integrated offer requires expertise in payment terminals, a complex ecosystem with high barriers to entry Ingenico key assets to provide one ‐ stop ‐ shop solutions  30 years of experience & expertise  Know ‐ how of certification & security constraints  Portfolio of >1,000 payment & VAS applications  Global payment infrastructure  PSP credibility & experience (easycash) No other player has equivalent expertise in payment ecosystem 8

Ingenico: a global partner of banks and retailers Major financial institutions & merchants are using our products and solutions over the world (in >100 countries)  Dual vendor policy Supporting new entrants in the Payment ecosystem  Google, Apple Operating services for more than 350k terminals 9

Ingenico: a successful listing story Reclassification to Technology Market capitalization: ~€2bn sector in March 2012 Share price evolution Inclusion in the Stoxx Europe 600  Overperformed CAC by >25% in 2012 Index on Dec 19 2011  Overperformed CAC by 23% in 2011 Shareholder structure as of May 2012 Including: ‐ Fidelity (FMR LLC): 5.6% ‐ Jupiter AM: 5.1% ‐ Candel Partners: 2% ‐ Allianz: 2.0% Source: Bloomberg. Share price from Jan 1 2011 to April 30 2012 10

Ingenico: a robust business model Revenue: x2 since 2006 Organic growth ≥ 8.3%* EBITDA margin increase by ≥ +330 bps since 2009 1 001 907 ≥ 18.3% 18.3% 18.3% 728 EBITDA (in % of revenue) Published revenue in m€ 701 15.9% 15.0% 568 506 Target March Dec Moving to fabless model Merger with Acquisition of Sagem Monetel easycash Moving to Telium2 platform Investing into TransferTo & mobile payment *At constant FX & scope 11

Ingenico: evolution towards a new group profile Recurring activity: 31% total revenue 31% : contribution of group revenue 42% : contribution of revenue from services* in 2011 from services* in the SEPA region 31% Leveraging installed payment 28% terminal base of >17 million to generate recurring maintenance 22% revenue 18% 17% Increased contribution of 13% Transactions driving continuous 4% shift towards direct relations 2008 2009 2010 YTD2011 with merchants Transactions Maintenance Combination of growth & increased recurring revenue => more recurring profitability *Revenue derived from transactions, maintenance & services 12

Ingenico: evolution towards a new Group profile Ongoing customer diversification Reduced exposure to banks  47 % of revenue in 2011 vs. 50% in 2009  European banks: 16% in 2011 vs. 19% in 2009 Increased contribution of merchant revenue  28% in 2011 vs. 24% in 2009  Operating more than 350,000 terminals 2009 2011 13

Ingenico: leveraging XIRING acquisition to build up a leading global heathcare vertical +   Leader in Germany Leading provider of healthcare solutions in France  International presence  France : leading country in e ‐ healthcare  Efficiencies  Serving>25k healthcare professionals Leading global e ‐ Health provider to adress key market trends 14

Ingenico: leveraging ROAM Data asset to reinforce offer in mobile payment 1 2 3 Accept a payment Issue a payment Issue a remote payment NFC infrastructure on entire SmartPhone or Tablet Bluetooth Ingenico mobile payment riding • • • portfolio companion ePayment in selective countries Google/PayPal wallet Full integration within retail and in Europe • • mobility offering Increased stake in to 86% to increase offer in mobilility Complete solution for small merchants / Roam wallet and check out 15

Ingenico: financial strength and flexibility to execute strategy Robust balance sheet : shareholder net equity at €623m Managing financial Net debt of €109.7m, x0.6 EBITDA flexibility 150m€ of undrawn bank facility 2011 Cash conversion: 64%* Generating operating Low capital intensive model cash flow Balanced revenue structure (geomix, increased contribution of recurring revenue from Transactions) Maintain leadership on POS market Provide end ‐ to ‐ end solutions cross ‐ channels and on a global scale to Focused acquisitions leverage the transactions management business Differentiate and penetrate vertical markets with VAS provided as white label approach and/or own brand Ready to seize further acquisition opportunities to be a key player in the payment industry beyond leadership in POS *(EBITDA ‐ capital expenditures ‐ working capital requirements)/EBITDA 16