goldman sachs financial technology conference...2012/09/13 · merchant integrated offer requires...
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Goldman Sachs Financial Technology Conference
September 13 2012
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Disclaimer
This presentation contains forward‐looking statements. The trends and objectives givenin this presentation are based on data, assumptions and estimates considered reasonableby Ingenico. These data, assumptions and estimates may change or be amended as aresult of uncertainties connected in particular with the performance of Ingenico and itssubsidiaries. These statements are by their nature subject to risks and uncertainties.These forward‐looking statements in no case constitute a guarantee of futureperformance, involves risks and uncertainties and actual performance may differmaterially from that expressed or suggested in the forward‐looking statements. Ingenicotherefore makes no firm commitment on the realization of the growth objectives shownin this release. Ingenico and its subsidiaries, as well as their executives, representatives,employees and respective advisors, undertake no obligation to update or revise anyforward‐looking statements contained in this release, whether as a result of newinformation, future developments or otherwise.
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Ingenico: a world leader in payment solutions…
* Estimated market share based on published revenue
17%
15%
7%7%
45%
9%
Asia Pacific
Central Operations
EEMEA
Latin America
North America
Europe SEPA
17%
14%
69%
Leading world installed base: >17 million POS worldwide
A diversified geographical presence
World market share: 38%* N°1 in Europe N°1 in China, Asia‐Australia N°1 in Brazil N°2 in North America
An international group First customer: Brazilian First nationality of employees: Chinese First country by revenue: Germany
An increasing contribution of transactions and services
Transactions
Maintenance & Services
Terminal/hardware
2011 revenue
€1bn
2011 revenue
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…benefiting from an increasingly diversified customer base…
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, Paypal, ISIS, Apple
Operating services for more than 350,000 merchant terminals
Supporting more than 250,000 terminals on behalf of banks
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…well positioned, with a dual offer dedicated to merchants: terminals and transactions…
Agile payment infrastructure & largest portfolio of cross‐channel & cross‐border solutions Platforms supporting more than 2billion transactions in 2011 easycash solutions to operate merchant payment transactions 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
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…focusing on innovation & hardware as key assets to deliver strategy …
Strong R&D investments: 8% of revenue in 2011
Payment terminal hardware: not a commodity Telium2 OS as cost & performance differentiating factor Gross profit > 40%
All payment terminals are future proof NFC contactless embarked EMV: the Group DNA
The right range of terminals: fully part of retail experience The right form factors: color, touch screen, all‐in‐one terminal
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
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…enjoying the right international presence to leverage market opportunities…
avg. 3 terminals /1,000 inh.
Emerging Countries
avg. 24 terminals per 1,000 inh.
Mature countries
Source: Euromonitor / IMF
Number of POS terminals per ‘000 people
Emerging markets as a growth driver #1 in China, leader in Brazil Acquired distributor in Russia Still growth opportunities
in South‐East Asia, LATAM outside Brazil, Russia, Africa
Europe SEPA: strong foothold to deploy transactions strategy Over‐performed market in H1’12 in
payment terminals despite macro: market share gains in the UK, gained traction in Central Europe
42% of revenue from services in 2011 Operating >350,000 merchant terminals
US market: a unique growth opportunity
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…ready to address a unique opportunity in the US…
Market players consolidation
EMV migration April 2013: first deadline for processors to be ready to accept EMV transactions EMV is part of Ingenico DNA Telium products embarking EMV and NFC
Gaining traction in the “bank card” channel to market with higher benefit expected in 2013 Started to secure major processors (Chase paymentech, Vantiv) and ISOs (FAPS) Secured the top 3 distributors
Addressing market increasing demand for mobile solutions Complete product range addressing mobility for micro/small merchants & organized retail
Nomadic solutions « In the store » solutions
+ = full m‐POS solutions for organized retail
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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)
…investing in e‐healthcare and id products through XIRING integration…
Leveraging unique position in France and Germany to address
emerging programs in Europe and beyond
Leveraging existing Healthcare/e‐ID product range while sustaining
innovation
A global vision of security needs for e‐Health and e‐ID
schemes
#1
1010
…investing in the mobile payment space by combining ROAM Data and Ingenico assets
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Increased stake in ROAM Data to address mobile POS opportunity
Mobile POS: the opportunity to extend addressable market Mobile POS market: an untapped market for card payment Small & micro merchants have not historically used a POS terminal due to unjustified ROI 75% of devices shipped to date went to merchants who did not previously accept cards
Combining ROAM’s experience of mobile POS solutions on the US market withIngenico's global reach and EMV expertise to: Extend card acceptance to new segments in mature markets Accelerate penetration in emerging markets
Complete product range addressing mobility for micro/small merchants & organized retail
Proven ability to consolidate high level margin while investing for future growth
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Moving to fabless model
Moving to Telium2 platform
*At constant FX & scope
MarchMerger with
Sagem Monetel
DecAcquisition of easycash
Investing into TransferTo & mobile payment
506
728701
907
568
1 001Organic
growth >8.3%*
18.3%18.3%
15.0%15.9%
Publishe
d reve
nue in m
€ EBITDA (in % of revenue)
Target
>1 140
≥18.3%
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Delivering outstanding results in H1’12
Very strong revenue growth Revenue: 542.3M€
+23% on a reported basis
+16%on a like‐for‐like basis
Significant growth across all regions and segments
Proven ability to consolidate margins while investing in future sources of growth
Net profit attributable to shareholders multiplied by 2.9
2012 outlook confirmed Like‐for‐like growth>8.3%
EBITDA margin≥18.3%
Confirming evolution towards a new Group profile,with 32% of revenue from Transactions & Services
Increased contribution of Transactions enabling more direct relations with merchants
Continue to capitalize on installed payment terminal base of >17 million to generate recurring maintenance revenue
*Revenue derived from transactions, servicing & maintenance
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20%: revenue from Transactions in H1 2012 (+300 bpts)
13%
4%
17%
20%
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Ingenico: financial strength and flexibility to execute strategy
Focused acquisitions
Managing financial flexibility
Generating operating cash flow
Robust balance sheet : shareholder net equity at €623m
Net debt of €154.6m, x0.8 EBITDA
150m€ of undrawn bank facility
Ready to seize further acquisition opportunities to be a key player in the payment industry beyond leadership in POS
Low capital intensive model (capex <4% of revenue) Balanced revenue structure (geomix, increased contribution of revenue from Transactions and Services)
Maintain leadership on POS marketProvide end‐to‐end solutions cross‐channels and on a global scale to leverage the transactions management business
Differentiate and penetrate vertical markets with VAS provided as white label approach and/or own brand
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Ingenico investment case
Key focused strategy
Technological leadership
A world leader well positioned with a dual offer dedicated to merchants: terminals & transactions
A growing market: continuous shift towards electronic payments
Structural changes in the payment ecosystem generating opportunities for enlarged leadership: mobile payment, NFC, e‐commerce
Track record of profitable growth & financial strength