H1 - 2006 RESULTS Business Report 21 September 2006 Park Hyatt - - PowerPoint PPT Presentation

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H1 - 2006 RESULTS Business Report 21 September 2006 Park Hyatt - - PowerPoint PPT Presentation

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H1 - 2006 RESULTS Business Report 21 September 2006 Park Hyatt hotel Solutions de transactions et de paiement scurises Results H1 2006 1 - H1 2006 Financial Results > C. MALHER 1 - H1 2006 Financial Results > C. MALHER 2 - B usiness

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Solutions de transactions et de paiement sécurisées

21 September 2006 Park Hyatt hotel

H1 - 2006 RESULTS Business Report

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H1 2006 Business Report

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Solutions de transactions et de paiement sécurisés

1 - H1 2006 Financial Results > C. MALHER 1 - H1 2006 Financial Results > C. MALHER 2 - Business Overview > A. d’ANGELO 2 - Business Overview > A. d’ANGELO 3 - Questions / Answers 3 - Questions / Answers

Results H1 2006

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Financial Results H1 - 2 0 0 6

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H1 2006: Key Achievements

OUTSTANDING GROWTH STRONG PROFITABILITY IMPROVEMENT

ITS DEBITEK

Divestments

INGENICO SWEDEN

EBIT

SALES

HEADCOUNT

1269 1128 1110

06/2005 12/2005 06/2006

14,7 1,1 x 11,6 255,2 207,4 +25% 2005 2006

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  • 26,9

10,5%

  • 25,3

12,2%

G&A

Consolidated income statement H1 2006

H1 2006 H1 2005 Millions of € 255,2 207,4 Sales 79,2

31,1%

59,8

28,8%

Gross margin

  • 21,5

8,4%

  • 17,8

8,6%

R&D

  • 16,1

6,3%

  • 15,6

7,5%

Sales & Marketing 14,7 1,1 Operating income

  • 176,0
  • 147,5

Cost of goods sold Profitability 0,5% 5,8% +5,3%

IFRS 2005: capitalized R&D

% improvement

+2,3% +0,2% +1,2% +1,7%

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H1 2006 H1 2005 Gross margin evolution

Sales in M€ 255,2 207,3 Total 50,7 40,5 Software and Services 3,7 Other 204,5 163,1 Terminals Gross margin (% of sales) 39,0% 37,8% Total 21,7% 20,3% Software and Services N/A

  • 1,4%

Other 43,2% 43,0% Terminals Indirect Costs

  • 9,0% -7,9%

Gross margin after indirect costs 28,8% 31,1%

Gross margin

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Consolidated income statement H1 2006

H1 2006 H1 2005 Millions of € 14,7 1,1 Operating income 16,5

  • 22,9

EBIT after non recurring items

  • 2,0
  • 0,8

Income taxes 8,3

  • 24,6

Net income 1,8

  • 24,0

Non recurring items

  • 6,2
  • 1,0

Net financial expenses EPS N/A 0,28

NOL utilization

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Consolidated income statement

H1 2006 H1 2005

  • 2,3
  • 2,5

Restructuring charges 0,0

  • 9,9

Provision for non quality

1,8

  • 24,0

TOTAL

2,8 Disposal of Assets 2,1

  • 1,5

Legal claims

  • 0,8
  • 10,1

Other (including obsolete inventories) Non recurring items in M€

ITS, Debitek, Ingenico Sweden

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Financial income (expense) H1 2006 H1 2005 Millions of €

  • 2,5

0,8 Gains / losses on foreign exchange

  • 0,6

Other expenses

  • 6,2
  • 1,0

TOTAL

  • 3,7
  • 1,2

Interests expenses

O/W 2 M€ are unrealized losses

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Equity and Net debt M€ January 1st, 2006 101,3 H1 net result 8,3 Capital increase 1,3 Share based payments 2,5 CTA (1,5) Treasury stock purchases ( 8,1) June 30, 2006 103,8

Net Debt: 64,5M€ Gearing: 62,2%

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Consolidated cash-flow statement

9,8

  • 9,0

Cash flow from (used in) operations

  • 7,0
  • 9,6

Change in working capital

2,8

  • 18,6

Cash Flow opérationnel

  • 4,6
  • 7,1

CAPEX 10,5

  • 1,3

Effect of acquisitions & divestitures

  • 2,3

9,2* Currencies and others

  • 7,5

Purchase of own shares

  • 1,1
  • 17,8

Change in cash & cash equiv.

H1 2006 H1 2005 Millions of €

Cash-flow from operations

  • 18,6

2,8 +21,4

* O/W Oceane effect ITS, Debitek, Ingenico Sweden

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Net debt / Gearing

31/12/2005 30/06/2006 Millions of €

  • 175,0
  • 162,8

Financial liabilities 111,5 98,2 Net cash

  • 63,5
  • 64,6

Net debt 101,3 103,9 Equity

  • 63%
  • 62%

Gearing

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Business Overview

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Outstanding Revenue Increase

Latin America – North America – Italy – Asia

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

Geographical Expansion

France - Switzerland – Russia – Korea - India

Actions and Achievements

+ 109% + 109% + 109% + 47% + 47% + 47% + 71% + 71% + 71% + 66% + 66% + 66%

France France Switzerland Switzerland Russia Russia South Korea South Korea India India

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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 Major Wins

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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

Market Growth Factors

*Single European Payment Area

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Ingenico Value Chain

Issuing Bank Acquiring Bank

LARGE RETAIL MERCHANTS

Network Aggregation/Hosting

Traditional Payment Vertical SPECIFIC SYSTEM INTEGRATORS BACK END Cards Processor NCC

ROUTER

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Ingenico Product Strategy Ingenico Product Strategy

Security higher than standards required Introduce Biometry New range of unattended devices Contactless and NFC Terminals

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Biometry

Integrate biometric captors in terminals

Merchant Identification Cardholder Identification Finger Print storage in case of dispute

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Ingenico Product Strategy Ingenico Product Strategy

Security higher than standards required Top Class design style Increase Patent Effort Introduce Biometry New range of unattended devices High resolution display Environment friendly design Contactless and NFC Terminals

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A True Patent Policy

setup of a Patent Committee setup of a Patent Committee under Chief Scientist responsibility A printer using standard ordinary paper and no ink 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

Over 30 Patent Projects since September 2005

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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

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Questions/ Answ ers