Oddo Mid Cap Forum 2012 January 5 & 6 2012 Disclaimer This - PowerPoint PPT Presentation

Oddo Mid Cap Forum 2012 January 5 & 6 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 2010 sales: €907M World market share (H1’2011): 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: >15 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  A gateway for services: NFC, color screen, multimedia as a standard A fully renewed terminal range covering all market segments  Retail, banking & vertical markets New solutions to address new markets  iSMP: Turn iPod touch  & iPhone  into EMV secure mobility payment solution  WebPOS : Shop ‐ in ‐ a ‐ box services offer for merchants  iPA: bridging PDA & payment in a single device  iWL touch 280 ‐ 350: The 1st mobile payment solution designed for merchants’ value ‐ added services 5

Ingenico: a strong growth potential in emerging markets Emerging markets*: 43% of H1’11 revenue, vs.37% in H1’10 Emerging markets & urbanization drive 40 growth Number of POS terminals per ‘000 people 35 Increased middle class with access to Mature Payment Countries financial services 30 avg. 24 terminals p.1,000 inh. Governments pushing for tax collection 25 Micro credit / Financial inclusion (ex: Fino in India) 20 15 10 Emerging Countries avg. 2 terminals p. 1,000 inh. 5 0 2005 2006 2007 2008 2009 2010 Average ‐ mature payment countries Average ‐ BRIC Source: Euromonitor / IMF *Emerging markets are Latin America, Asia ‐ Pacific and EEMEA Source: Euromonitor / IMF 6

Ingenico: providing one ‐ stop ‐ shop solutions to merchants End ‐ to ‐ end payment & VAS solutions  easycash: n 1 in Germany, managing solutions for merchants, starting from the POS terminal (>275k connected POS)  Deploying easycash business model in other European countries Solutions on a multi ‐ country scale  AXIS: Worldwide cross ‐ border & front ‐ end processing solutions  Gaining traction with major counterparts and on a multi ‐ country scale Cross ‐ channels solutions  Internet: e ‐ payment services deployed  First customers validating the convergence off line/on line: Veolia, JC Decaux  Mobile: NFC compliant, iSMP, Mobile Service Provider (48% in Roam ‐ data) Transactions: 13% of 2010 sales => 25% of 2013 sales 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 160k small merchants 9

Ingenico: a successful listing story Inclusion in the Stoxx Europe Market capitalization: ~€1.5bn 600 Index on Dec 19 2011 Share price evolution Shareholder structure  Overperformed CAC by 20% in 2011 as of December 2011  Overperformed CAC by 71% in 2010 Including: ‐ Fidelity (FMR LLC): 5.6% ‐ Jupiter AM: 5.1% ‐ Candel Partners: 2% ‐ Allianz: 2.0% Source: Bloomberg. Share price from Jan 1 2010 to December 31 2011 10

Ingenico: a robust business model Revenue: x2 since 2006 >985* 907 EBITDA margin increase by ≥ +330 bps since 2009 ≥ 18.3% 18.3% 728 701 15.9% EBITDA (in % of revenue) Published revenue in m€ 15.0% 568 506 2006 2007 2008 2009 2010 2011 Guidance March Dec Moving to fabless model Merger with Acquisition of Sagem Monetel easycash Moving to Telium2 platform *At constant exchange rates 11

Ingenico: towards a new company profile with increased recurring revenue Leveraging installed POS base transactions (in % of published revenue) Revenues from maintenance, services & 40% 32% of >15 millions to generate in H1’11 recurring maintenance & services revenue 28% 25% 22% 18% 17% 13% Increased revenue from Transactions 4% 2008 2009 2010 H1 2011 2013 Target Transactions Maintenance revenues Combination of growth & increased recurring revenue => more recurring profitability 12

Ingenico: a sustainable profitability A sustained profitable growth and operating leverage in 2010:  Like ‐ for ‐ like growth: +10% vs. 2009  EBITDA:18.3% (+280 bpts)  Strong cash conversion* improvement: 62% vs. 56% in 2009 in H1’2011:  Like ‐ for ‐ like growth: +6% vs. H1 2010pf  EBITDA: +100 bpts vs. H1 2010pf 2011: confirming profitable growth while investing  Like ‐ for ‐ like growth: ≥ +6.3%  EBITDA ≥ 18.3% vs. 18% in 2010pf Proven track record in integrating new entities Balanced presence between emerging and mature payment markets *Cash flow before acquisitions and dividends 13

Ingenico: financial strength and flexibility to execute strategy Robust balance sheet : shareholder equity at €564m* Raised €250m convertible bonds in March2011 Managing financial flexibility Net debt of €94.5m, x0.5 EBITDA** 150m€ of undrawn bank facility 2010 Cash conversion: 62% Generating operating Low capital intensive model: capex at 20 ‐ 25m€ p.a 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 *As of June 30 2011 14 ** Last Twelve Months

Ingenico investment case Key focused strategy Technological leadership Well positioned in a growing market Continuous shift towards electronic payments Structural changes in the payment ecosystem generating opportunities for enlarged leadership Leveraging key assets to expand margins Track record of profitable growth & financial strength 15

Appendix September 13 2011