Investor Day 2020 Strategic Plan Todays agenda Philippe Lazare, - - PowerPoint PPT Presentation
Investor Day 2020 Strategic Plan Todays agenda Philippe Lazare, 9.00 CONVICTIONS Chairman & CEO Thierry Denis, 9.15 MARKET TRENDS CEO Advisor Pierre-Antoine Vacheron, 9.35 POSITIONING & EVP ePayments OFFER Jacques Gurin,
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Today’s agenda
INVESTOR DAY - LONDON // MARCH 23RD 2016
Thierry Denis,
CEO Advisor
9.15 MARKET TRENDS 9.00 CONVICTIONS
Philippe Lazare,
Chairman & CEO
11.00 BREAK
Pierre-Antoine Vacheron,
EVP ePayments
9.35 POSITIONING & OFFER
Jacques Guérin,
EVP Smart Terminals & Mobile Solutions
10.45 Q&A session
Pierre-Antoine Vacheron Jacques Guérin
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Today’s agenda
INVESTOR DAY - LONDON // MARCH 23RD 2016
Panel and Q&A session
11.40 ROLLING OUT THE STRATEGY WORLDWIDE 11.30 INNOVATION
Michel Léger,
EVP Innovation
Patrice Le Marre,
EVP Asia Pacific & Middle East
Jacques Behr,
EVP Europe & Africa
José Luis Arias,
EVP Latin America
Oscar Bello,
EVP North America
David Jimenez
Chief Revenue Officer- ePayments
MODERATOR Adrian Dearnell PHO PHOTOS OS
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Lunch & Demos
Today’s agenda
INVESTOR DAY - LONDON // MARCH 23RD 2016
13.00 Q&A with Philippe Lazare and speakers 12.40 FINANCE
Nathalie Lomon,
CFO
13.30
Philippe Lazare,
Chairman & CEO
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Ingenico Group always a step ahead
INVESTOR DAY - LONDON // MARCH 23RD 2016
First mover in China Leading position Investments in the US against the tide Largest market today From hardware to transaction services 30% of revenue today Continuous investments in Terminals to keep on leading the race
Pa Past st st stra rate tegic decisions are p paying off
toda day
2016 revenue above €2.2bn* 2016 EBITDA margin above 20% FCF/Ebitda 45%-50%
Financial t Financial targ rgets achie s achieved ed 1 y 1 year in adv ar in advanc nce
STRONG TRACK RECORD STRONG TRACK RECORD
Dividend policy based on a 35% pay-out
*€1.8Bn targeted in 2013, €2.2Bn including GlobalCollect acquired in 2014
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Provide payment Provide payment acceptance, whatever acceptance, whatever the the form factor, the form factor, the channel and the channel and the payment method payment method Connect merchants Connect merchants with with acquirers acquirers Protect merchants Protect merchants and and consumers credentials in a consumers credentials in a fully secured fully secured manner manner
What are we good at?
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Customers’ needs
INVESTOR DAY - LONDON // MARCH 23RD 2016
CREATE A GLOBAL LEADER CREATE A GLOBAL LEADER IN OMNI-CHANNEL ACCEPTANCE IN OMNI-CHANNEL ACCEPTANCE
Large r rge retailer ilers’ needs s’ needs
Banks’ and Banks’ and Acquir quirer ers’ s’ needs needs
~40%
~40%
r evenue r evenue ~60%
~60%
r evenue r evenue CHALL CHALLENGES ES
CHIFFRES
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What can we bring to customers that competitors can’t? Omni-channel acceptance
tracking
and online payments
player
OMNI-CHANNEL IS OMNI-CHANNEL IS INGENICO GROUP’S KEY INGENICO GROUP’S KEY DIFFERENTIATOR, DIFFERENTIATOR, ENABLING INGENICO GROUP TO ENABLING INGENICO GROUP TO OUTPERFORM THE OUTPERFORM THE MARKET MARKET
VA VALUE F FOR MER MERCHANTS HANTS INGENIC INGENICO GR GROUP OUP IDEALL IDEALLY POSITIONED Y POSITIONED
INVESTOR DAY - LONDON // MARCH 23RD 2016
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Strategic initiatives paving the way to 2020 CREATE A GLOBAL LEADER IN OMNI-CHANNEL CREATE A GLOBAL LEADER IN OMNI-CHANNEL ACCEPTANCE ACCEPTANCE
KEY INITIA KEY INITIATIVES TIVES
Strengthen our unique in-store leadership
Further develop our strong online position Drive convergence towards omni-channel acceptance
Anticipate market evolution through innovation program
INVESTOR DAY - LONDON // MARCH 23RD 2016
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2020 ambition plan / a growth story
Re Revenue o
ctive
Double-digit
co conversion ra ratio
* At 2015 exchange rate and including targeted acquisitions INVESTOR DAY - LONDON // MARCH 23RD 2016
Thierry Denis,
CEO Advisor
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Solid growth drivers
Global non-cash payments
(# of transactions, $bn)
240 240 360 360 660 660 7% 9%
2013 2007 2020F
INVESTOR DAY - LONDON // MARCH 23RD 2016 Source: ATKearney/Ingenico Source: eMarketer/Ingenico
Global consumers spend by origin
(in value/$ Trn)
23 23 28 28
2015 2019
2 4
Cagr: +14% Cagr: +6% In-store Online
WA WAR O ON C CASH ACCELERA CELERATING ING CONNE NNECTED W CTED WORLD RLD DRIVING DIGIT DRIVING DIGITAL U L USAGE
15 Source: Ernst & Young Rapid-Growth Markets Forecast (2014) INVESTOR DAY - LONDON // MARCH 23RD 2016
By 2022, nearly
Households Households (>$35,000 income
(>$35,000 income per year) per year)
Solid growth drivers
& certifications
FAVORABLE RE RABLE REGULA GULATORY FRAMEW FRAMEWORK ORK GR GROWING MIDDLE ING MIDDLE CLAS CLASS IN EMER IN EMERGING GING COUNTRIES UNTRIES
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More complex physical world
INVESTOR DAY - LONDON // MARCH 23RD 2016
MORE DEVICES MORE DEVICES
M-commerce on track to reach $900 billion in 2020 Payments with wearables expected to reach $500 billion by 2020 Self-serve unattended, connected
MORE POINTS MORE POINTS OF S OF SALES LES
Source: eMarketer/Ingenico Group/Edgar Dunn
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More complex online world
INVESTOR DAY - LONDON // MARCH 23RD 2016
APMs originating online but expanding into the physical world and very strong in certain geographies, notably China Payment will occur in places as diverse as search results, social network posts, advertising messages, press articles.
MORE P MORE PAYMENT YMENT METHODS METHODS MORE ONLINE MORE ONLINE CHANNELS CHANNELS
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More complex consumer journeys
INVESTOR DAY - LONDON // MARCH 23RD 2016
OM OMNI NI-CHANNEL I
KEY
PROPOSITION 3
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Deliver customer touchpoints anywhere and any time on any device
connected devices Provide richer interactions at each step of the customer journey
and form factors
customer journey
WIDEN DEEPEN
INVESTOR DAY - LONDON // MARCH 23RD 2016
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Payment terminals / a sustainable growth rate
(1) Hardware revenue excluding maintenance and mPOS
2015 2020
Still a growing market
will come from China and the US
increasing 50% to more than 14 terminals per 1,000 habitants by 2020
upgrades driving replacement
Competition
players, due to high barriers to entry
growth of the two largest markets (China / US)
>€3BN >€3BN >€4BN >€4BN n
2015-2020 Revenue CAGR ~+6% Ingenico Group revenue share Total market revenue
Payment T yment Terminals r rminals revenue nue pool in pool in billion eur billion euros s (1)
(1)
INVESTOR DAY - LONDON // MARCH 23RD 2016
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Online payment market / doubling to 2020
€6BN €6BN
Ingenico Group revenue Total market revenue
€13BN €13BN
1 Ingenico Estimates based on ecommerce flows
2015-2020 Revenue CAGR 2015 2020 ~+16%
Market revenue growth will continue to be strong
model fueled by cross-border ecommerce
commerce
Competition
regional & local players addressing their home market
very fragmented beyond this top 3
Online P Online Payment servic yment services es revenue nue pool in pool in billion eur billion euros s (1)
(1)
INVESTOR DAY - LONDON // MARCH 23RD 2016
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Business dynamics conclusion
Positive underlying growth fundamentals Sustainable growth in Payment terminals Strong market dynamics in online payment How to address convergence and complexity? How to capture growth?
INVESTOR DAY - LONDON // MARCH 23RD 2016
Pierre-Antoine Vacheron,
EVP ePayments
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Addressing a recognized need for convergence across channels
Mer Merchants’ hants’ key key conc ncerns* erns*
Int Internat rnational expans ional expansion ion Payment costs Payment costs Mobile - Mobile - mobile
payments Mobile - Mobile - mobile
websites Fraud Fraud Other Other Omni-channe Omni-channel - l - payment ayment met method
Data security Data security
*Source: Merchant Risk Council September 2014 INVESTOR DAY - LONDON // MARCH 23RD 2016
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How Ingenico Group offer addresses convergence
INVESTOR DAY - LONDON // MARCH 23RD 2016
INGENIC INGENICO SMAR SMART TERMINALS T TERMINALS
progress
INGENIC INGENICO eP ePAYMENTS MENTS
A UNIQUE A UNIQUE INTEGRATED INTEGRATED OFFER OFFER
IN-S IN-STORE RE GA GATEW TEWAYS
in-store transactions
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Goal / leveraging current solid operational performance
INVESTOR DAY - LONDON // MARCH 23RD 2016
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Europe / a first step toward ramping up the omni-channel offer
SEPA area
team
customer service center
platform with +4 bn txns/year, processing ~€200 bn
Oscar/Nexo certification
UNIQUE V UNIQUE VALUE PR E PROPOSITION OPOSITION STRONG TE NG TECHNOL CHNOLOGICAL AS GICAL ASSET SET
INVESTOR DAY - LONDON // MARCH 23RD 2016
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€59bn
Ingenico ePayments builds on a global network asset
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50 50
Nationalities
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And on a proven track record with the most demanding customers
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Tier Tier 1 Tier Tier 2/3 2/3 SMB thr SMB through ugh white labels white labels
cross-border merchants
goods and services
contracts with Acquirers
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Shift from gateway to full service model
Global ec Global ecommer
e B2C Volume 2015-2020 lume 2015-2020
Flows in Trillion Euros*
1.5
* Converted from USD at 1 USD = 0,75 €
2015 2016
INVESTOR DAY - LONDON // MARCH 23RD 2016
Domestic Cross-border
1.7 1.7
2017 2018 2019 2020
1.7 1.9 2.1 2.3 2.6 0.2 0.3 0.4 0.5 0.6 0.7 2.0 2.0 2.3 2.3 2.6 2.6 2.9 2.9 3.3 3.3
Source: Accenture/Alibaba + Ecommerce Foundation
27% CAGR 12% CAGR
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Online payments Objective: Creating the “Best-in-Class” Full-Service Model
INVESTOR DAY - LONDON // MARCH 23RD 2016
Gate Gateway servic y services es Full-servic ll-service
Merchant Merchant Merchant Merchant Acquirer GATEWAY Business model
Fixed fee per transaction: €0.10 to €0.15 (Ingenico Group)
Addressing relatively basic domestic needs Merchant Merchant Merchant Merchant
Acquirer
GATEWAY Business model
Percentage of transaction value: 1% to 4% (Ingenico Group)
Addressing cross-border needs
FULL SERVICE: FULL SERVICE: A A singl e point of singl e point of cont act f or cont act f or t he mer chant t he mer chant Pr oviding val ue added ser vices Pr oviding val ue added ser vices
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TE TECHNOL CHNOLOGIES OGIES Int Integr egration tion & boar & boarding ding
Creating the “best-in-class” full-service model
INVESTOR DAY - LONDON // MARCH 23RD 2016
Full servic ll service
Manage c Manage comple mplex transactions nsactions
reporting
considering in-house online acquiring as a fall-back
Gate Gateway
Cap Captur ure tr e transactions ansactions
(increase conversion rate)
PR PRODUCT ODUCT Mobile Mobile, omni-channel
SER SERVICES ICES Customer Car
AD ADVISOR VISORY Pr Profes essional Servic sional Services
INGENIC INGENICO DIFFERENTIA DIFFERENTIATORS RS CO CORE B BUSINESS SS
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Creating the “best-in-class” full-service model Invest toward superior technology
INVESTOR DAY - LONDON // MARCH 23RD 2016
DEDICATED CAPEX: c.€90M (3 DEDICATED CAPEX: c.€90M (3 year s) year s) >60% t r ansf or mat ion pr ogr am >60% t r ansf or mat ion pr ogr am
Updat Update c connections nnections Updat Update platf platforms rms Deve velop key key ne new o w offers
to optimize performance
UNL UNLOCK SHORT CK SHORT-TERM ERM GR GROWTH TH WHILE SET WHILE SETTING THE S ING THE STAGE F E FOR THE FUTURE R THE FUTURE
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Creating the “best-in-class” full-service model Differentiating technologies
INVESTOR DAY - LONDON // MARCH 23RD 2016
Mak Make int integr gration ation fa fast st & & secure re
Easy int integr gration as ation as a a mus must t to support e support evolu
ion of commer mmerce
Op Optimiz timized check d checkout user e user experienc perience Op Optimiz timized d co conversion Cu Custo stomer int interaction ction Developer community API SDK Consumers In-app One click Merchants A/B testing Analytics Developer & merchants Developer hub Sandbox
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Creating the “best-in-class” full service model Differentiating product: Mobile-first, increased conversion
INVESTOR DAY - LONDON // MARCH 23RD 2016
INGENICO CONNECT: A INGENICO CONNECT: A WAY WAY TO TO TAILOR THE TAILOR THE PAYMENT CHECKOUT EXPERIENCE PAYMENT CHECKOUT EXPERIENCE
MyCheck MyCheckout hos hosted ed pages pages
page look & feel MyCheck MyCheckout editor editor
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Creating the “best-in-class” full-service model Differentiating product: omni-channel
INVESTOR DAY - LONDON // MARCH 23RD 2016
ONE INTEGRATION ONE INTEGRATION - ONE BACK OFFICE - NE BACK OFFICE - ONE CONTRACT NE CONTRACT
At the counter Small merchants Sharing economy Self-checkout
IN-S IN-STORE RE ONLINE ONLINE
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Expanding the value of omni-channel experience
Multichannel Multichannel To Token Busines Business Int Intelligenc lligence Click Click & Collect & Collect Sto Store to to we web
INVESTOR DAY - LONDON // MARCH 23RD 2016
Refun Refund by by we web
Customer
kno knowledg ledge Cos Cost savings savings Additional dditional reve revenue Int Integr egrated d reporting porting
Mer chant benef it s Ingenico Gr oup benef it s
Incr Increasing intimacy easing intimacy with cus with customers
Va Value pricing pricing Gener Generating ting additional gr additional growth wth
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Creating the “best-in-class” full-service model Differentiating services: Customer interaction center
INVESTOR DAY - LONDON // MARCH 23RD 2016
is at the heart of our customer interactions
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Creating the “best-in-class” full-service model Differentiating advisory: “Elevate” a solution to improve conversion rate
INVESTOR DAY - LONDON // MARCH 23RD 2016
Pr Profes essional sional servic services es
Multi- Multi- curr currency ency advic advice Fr Fraud ex expert Op Optimiz timized payment payment page page Ta Targeted payment payment me methods thods
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Improve customer reach / deepen existing verticals strengths
methods
expansion into new tiers and geographies
DEVEL DEVELOP OFFERING AND MARKETING MUSCLE OP OFFERING AND MARKETING MUSCLE TO GR GROW IN EXIS IN EXISTING ING AND AND NEW SE NEW SEGMENTS GMENTS
INVESTOR DAY - LONDON // MARCH 23RD 2016
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Improve customer reach / capturing evolution of ecommerce
INVESTOR DAY - LONDON // MARCH 23RD 2016
Sharing econom
Social
Retail Mark tail Marketplac place
DEVEL DEVELOP OFFERING AND MARKETING MUSCLE OP OFFERING AND MARKETING MUSCLE TO GR GROW IN EXIS IN EXISTING ING AND AND NEW SE NEW SEGMENTS GMENTS
Sources: PWC, Booz & company, SunTrust, eMarketer, BCG, Ingenico Group
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Improve customer reach / expanding our geographical footprint
INVESTOR DAY - LONDON // MARCH 23RD 2016
NORTH AMERIC NORTH AMERICA Drive brand awareness and develop local channels to market LA LATIN AMERIC TIN AMERICA Expand coverage and local acquiring combining local gateway and ePayments EMEA EMEA Full speed in Germany and UK Leverage unique multichannel footprint and cross-channel experience AP APAC Develop cross border in China and local capabilities across the region
Jacques Guérin,
EVP Smart Terminals & Mobile Solutions
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Growing market Growing market Increasing demand Increasing demand for for cost-effective solutions cost-effective solutions Increasing complexity Increasing complexity faced by our customers faced by our customers Increasing number Increasing number of
touchpoints between touchpoints between merchants and consumers merchants and consumers
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NORTH AMERICA NORTH AMERICA
LA LATIN AMERICA TIN AMERICA
region with >50% MS** ASIA & MIDDLE EAS ASIA & MIDDLE EAST
shipments
EUR EUROPE & OPE & AFRICA AFRICA
+44% * +24% * +19% * +5% *
* FY15 Growth rate at constant FX & scope. ** 2015 shipment estimates
Nouvel l e car t e ?
Key assets A unique footprint to capture growth in all geographies
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Key assets A leading edge software platform to address complexity of payment
INVESTOR DAY - LONDON // MARCH 23RD 2016
>2,000 applications
R&D: 8% of revenue
>1,000 acquirers/banks >300 payment methods
Multiple payment op Multiple payment options tions Global Complianc Global Compliance Lo Loca cal Sta Standards & A & Apps ps Global S Global Standar ndards ds
Hong Kong Germany Canada Benelux New Zealand Australia France United Kingdom
Key v y value: the oper lue: the operating s ating system inside the em inside the payment ac payment acceptanc ance de devic vice
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Key assets 30 years at the forefront in security
INVESTOR DAY - LONDON // MARCH 23RD 2016
HIGH ENTRY BARRIER HIGH ENTRY BARRIER
most reliable payment methods
FRA FRAUD
terminals that can be certified
complying with dozens of standards
EXPERIENCE EXPERIENCE
standards: 1st PCI PTS v4
Board, EMVCo
ANTICIP ANTICIPATION TION DATA
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Key assets Operational excellence across the board to protect margins
INVESTOR DAY - LONDON // MARCH 23RD 2016
Fabless operations enabling us to increase capacity without impacting balance sheet
Terminals manufactured
Superior manufacturing quality
Default On arrival rate
Superior manufacturing quality
Best practices sharing among our EMS
Supply Chain
to fulfill regional demand
On Time Delivery
Continuous supplier’s challenging & benchmark
Rounds of negotiations per year
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Smart Terminals strategy
HOW HOW
Reduce payment Reduce payment
related costs related costs Expand payment Expand payment acceptance on new acceptance on new touchpoints touchpoints Provide easy Provide easy combination combination between payment between payment & services & services Reduce Reduce
complexity of complexity of payments payments
Incr Increase ins ase installed alled base base Genera rate a additional reve revenues Be the world Be the world leader leader in secured payment in secured payment acceptance acceptance solutions which solutions which facilitate in store commerce facilitate in store commerce
INVESTOR DAY - LONDON // MARCH 23RD 2016
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Reduce payment operations related costs / Cost optimized offer
features at the most competitive price.
markets
TARGET CUS ET CUSTOMERS OMERS INGENIC INGENICO BENEFITS BENEFITS CLIENT BENEFITS CLIENT BENEFITS
Incr Increase ease ins installed base alled base
INVESTOR DAY - LONDON // MARCH 23RD 2016 Specific Redesign To Cost team
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BREAKDO BREAKDOWN* N* OF A OF A TERMINAL TERMINAL’S T TCO O O OVER 5 ER 5 YEARS YEARS
Reduce payment operations related costs / Reducing Total Cost of Ownership (TCO)
TERMINAL PRICE ACCOUNTS FOR ONLY TERMINAL PRICE ACCOUNTS FOR ONLY 24% 24% OF OF TCO TCO 44% OF TCO 44% OF TCO IS RELATED IS RELATED TO TO THE THE MANAGEMENT MANAGEMENT OF INSTALLED OF INSTALLED TERMINALS TERMINALS
Source POS Leasing contract Install POS Support Update Software & content Termination
24% 25% 17% 25% 2% 7%
44% 44%
* Data based on European market.
Incr Increase ease ins installed base alled base
55 INVESTOR DAY - LONDON // MARCH 23RD 2016
chain
terminal operational availability
MANA MANAGE GE MONIT MONITOR MAINT MAINTAIN AIN
TARGET CUS ET CUSTOMERS OMERS CLIENT BENEFITS CLIENT BENEFITS INGENIC INGENICO BENEFITS BENEFITS
Reduce payment operations related costs / Reduce TCO with Terminal Estate Manager
Incr Increase ease ins installed base alled base
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TRANSPORT TRANSPORT VENDING VENDING PA PARKING
petrol
TARGET CUS ET CUSTOMERS OMERS CLIENT BENEFITS CLIENT BENEFITS INGENIC INGENICO BENEFITS BENEFITS
Expand payment acceptance on new touchpoints / Self service offer leveraging contactless expansion
PETR PETROL OL
10% OF THE 30M KIOSKS W 10% OF THE 30M KIOSKS WORLD RLDWIDE WIDE ACCEPT CARDS CEPT CARDS
Incr Increase ease ins installed base alled base
57 INVESTOR DAY - LONDON // MARCH 23RD 2016
acceptance revenues beyond the current installed base
USE C USE CASES SES
TARGET CUS ET CUSTOMERS OMERS CLIENT BENEFITS CLIENT BENEFITS INGENIC INGENICO BENEFITS BENEFITS
Expand payment acceptance on new touchpoints / Payment acceptance in tablets and connected screens
Reta Retail il stor
es & malls & malls Int Interactiv ctive adv advertising rtising Queue bus Queue busting ing in r in retail il Mobile sales Mobile sales re representative ves Incr Increase ease ins installed base alled base
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applications
Group range
TARGET CUS ET CUSTOMERS OMERS CLIENT BENEFITS CLIENT BENEFITS INGENIC INGENICO BENEFITS BENEFITS
Provide easy combination between payment & services / Leverage the unique value proposition of Tetra offering
Gener Generate Additional dditional reve revenues
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new services (click & collect, refund by web, etc) and same brand experience whatever the channel
consumer behavior
solutions sales
TARGET CUS ET CUSTOMERS OMERS CLIENT BENEFITS CLIENT BENEFITS INGENIC INGENICO BENEFITS BENEFITS
Provide easy combination between payment & services / Provide cross-channel services
Gener Generate Additional dditional reve revenues
60 INVESTOR DAY - LONDON // MARCH 23RD 2016
superior shopping experience
merchants
competitor terminals
APIs
TARGET CUS ET CUSTOMERS OMERS CLIENT BENEFITS CLIENT BENEFITS INGENIC INGENICO BENEFITS BENEFITS
Reduce complexity / Provide easy integration at the point of sale with iPOS
Gener Generate Additional dditional reve revenues
61 INVESTOR DAY - LONDON // MARCH 23RD 2016
merchants
TARGET CUS ET CUSTOMERS OMERS CLIENT BENEFITS CLIENT BENEFITS INGENIC INGENICO BENEFITS BENEFITS
Reduce complexity / Help acquirers provide reporting services and analytics to their merchants with the Merchant Service Hub
Gener Generate Additional dditional reve revenues
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Ingenico Group: the most complete offer to address challenges facing merchants and acquirers
The Es The Estat tate Manag Management ment
INVESTOR DAY - LONDON // MARCH 23RD 2016
Cr Cros
channel servic services es Reduc Reduce payment payment re relate ted co cost sts Incr Increase r ease revenues nues Acce Accept pt a any payment means payment means Tetr tra o a offering ring Cos Cost op
timized d
Mer Merchant hant Servic Service Hub Hub Reduc Reduce c comple
xity iPOS iPOS Self servic Self service e offer Pa Payment acce ccept ptance ce in c in connect nnected ed de devic vices Security Security So Softw ftware platf platform rm Ing Ingenic enico DNA DNA
Michel Léger,
EVP Innovation
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Ingenico LABS / create new value propositions
INVESTOR DAY - LONDON // MARCH 23RD 2016
Multiple skills, global reach Marketing, Technology, Advanced research, Global sales Worldwide Across all business lines
MIS MISSION ION STATEMENT EMENT Speed-up next generation offering ANTICIP ANTICIPATION TION Trends/Needs/Models To design news offers AC ACCELERATION Open innovation Access to future-proof technology Test & learn
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New trends shaping Ingenico Group’s future
INVESTOR DAY - LONDON // MARCH 23RD 2016
SOCIAL TRENDS SOCIAL TRENDS NEW TRENDS F NEW TRENDS FOR R PAYMENT E YMENT ECOSY OSYSTEM TEM
Internet of Things & new connectivity technologies
Sharing economy is the future economy
No more tolerance for friction; immediate service
Data for new services Contactless, Mobile wallet, Wallet aggregator Integrated payment on general-purpose devices “Appification” New form of authentication Data analytics Data sharing platform
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Client case
INVESTOR DAY - LONDON // MARCH 23RD 2016
SOURCE
PAY BUTTON ???
Tap & Go p & Go Bring contactless payment acceptance in all devices Dat Data Encryp Encryption tion Driving best-in-class security solution for consumers and retailers Buy Bu Buy Butt tton
Social commerce will be the place where millennials will start browsing and searching
Under ND Under NDA
Ta Tap & & P Pay Increase conversion and security on mobile commerce 2016 Go to market 2016 2016 2017
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What’s next?
INVESTOR DAY - LONDON // MARCH 23RD 2016
ecosystem (Blockchain)
systems (biometrics)
UBIQUITY UBIQUITY UNIVERS UNIVERSALITY LITY TR TRUS UST
MODERATOR Adrian Dearnell
Jacques Behr,
EVP Europe & Africa
David Jimenez,
Chief Revenue Officer-ePayments
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Where we are today
INVESTOR DAY - LONDON // MARCH 23RD 2016
Key Key st stre rengths
2015 2015 Mark Market* Ing Ingenic enico Gr
(2015) (2015) Terminal rminal 14M installed base 50-55% share of shipments eP ePayments ayments ~$700bn total ecom flows ~8% of flows In- In-stor
e ga gatew teways ys ~3.5bn volume of transactions
*excluding mPOS
SOURCE
CHIFFRES : EMPLOYEES COUNTRIES
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Where we want to go / from 2015 to 2020
INVESTOR DAY - LONDON // MARCH 23RD 2016
Pr Protect mark ect market shar share & e & le leverage our
installed alled base base in in matur mature c countries untries
Marketplace Estate Manager, iPOS, connected devices
parking, hospitality Expand pr Expand presenc esence in emerging in emerging countries untries
Eastern Europe
countries (Africa) Org Organiz anized r ed retail tail
and 2 merchants, upsell to German customers, develop new functionalities
international retailers Expand among Expand among small small mer merchants hants
leveraging new products and solutions
Le Leverage ge FS FSP off
Focus on cus on omni-channel
solu solutions tions Impr Improve legitimacy with e legitimacy with pur pure play plays Geogr Geographic e phic expansion pansion
Europe
SOURCE
CHIFFRES BAS DE PAGE
TERMINALS TERMINALS eP ePAYMENTS MENTS IN-S IN-STORE P RE PAYMENT YMENT
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Ambition
INVESTOR DAY - LONDON // MARCH 23RD 2016
Mone Monetiz tize larg larges est payment payment acce cceptance ce ne netw twork
Inno Innovation tion as a as a dif differ erentiating entiating gr growth driv th driver er
José Luis Arias,
EVP Latin America
David Jimenez,
Chief Revenue Officer-ePayments
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Where we are today
INVESTOR DAY - LONDON // MARCH 23RD 2016
2015 2015 Mark Market* Ing Ingenic enico Gr
(2015) (2015) Terminal rminal 7.5M installed base 50-55% share of shipments eP ePayments ayments $63bn total ecom flows 1% of flows
* excluding mPOS
Key Key st stre rengths
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Where we want to go / from 2015 to 2020
INVESTOR DAY - LONDON // MARCH 23RD 2016
Pr Protect and ect and le leverage our
ins installed base alled base
requirements (e.g. connectivity options)
De Develop mark lop market shar share
approach (partnerships with retail automation leaders)
unattended segments
Incr Increase le ease level l of servic service with e with har hardware and field servic and field services es De Develop gat lop gateway solu y solutions t tions to cat cater r for the needs r the needs of larg large e and medium r and medium retail tail
Leverage omni-channel
Local c cal connections nnections and and ability t ability to addr addres ess div s diverse rse mer merchant hant segments and segments and needs needs
address diverse merchant segments and needs Enhanc Enhance solu solutions suit tions suite f for r tr trav avel and el and retail tail Ent Enter ne er new w verticals rticals
billing, pure players De Develop lop full servic full service e in the r in the region gion
SOURCE
CHIFFRES BAS DE PAGE
TERMINALS TERMINALS eP ePAYMENTS MENTS IN-S IN-STORE P RE PAYMENT YMENT
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Ambition
INVESTOR DAY - LONDON // MARCH 23RD 2016
BRAZIL & MEXIC BRAZIL & MEXICO Co Contin inuou uous
ational excellenc llence & T & Tetr tra up a upsell sell OT OTHER CO COUNTRIES Captur ure the gr e the growth th
fast st-growing ng mark markets in s in ter termin inal al & epayments & epayments
Oscar Bello,
EVP North America
David Jimenez,
Chief Revenue Officer-ePayments
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Where we are today
INVESTOR DAY - LONDON // MARCH 23RD 2016
2015 2015 Mark Market* Ing Ingenic enico Gr
(2015) (2015) Terminal rminal 12M installed base 30-35% share of shipments
Including US 11M installed base 30% share of shipments
eP ePayments ayments $572bn total ecom flows 1% of flows
* excluding mPOS
Key Key st stre rengths
80
Where we want to go / from 2015 to 2020
INVESTOR DAY - LONDON // MARCH 23RD 2016
De Develop omni-channel lop omni-channel position position
retailers
and online customer relationships Incr Increase positioning ease positioning for r cr cros
bor border er Capitaliz Capitalize on ne
w trends ends
commerce (buy buttons, peer 2 peer etc.) Leverage omni-channel
Bec Become a
leader in the US
EMV migration ation
Tier 2 and 3 merchants
restaurants
unattended
point to point encryption, terminals management Pr Protect mark ect market shar shares & es & le leverage our
installed alled base base in in Canada Canada
Manager, iPOS, connected devices
healthcare unattended
SOURCE
CHIFFRES BAS DE PAGE
TERMINALS TERMINALS eP ePAYMENTS MENTS IN-S IN-STORE P RE PAYMENT YMENT
81
Ambition
INVESTOR DAY - LONDON // MARCH 23RD 2016
Bec Become a leader me a leader
th sides
(t (terminal erminals and and
bor border) er) Omni-channel Omni-channel as dif as differ erentiating entiating model model
Patrice Le Marre,
EVP Asia Pacific & Middle East
David Jimenez,
Chief Revenue Officer-ePayments
83
Where we are today
INVESTOR DAY - LONDON // MARCH 23RD 2016
2015 2015 Mark Market* Ing Ingenic enico Gr
(2015) (2015) Terminal rminal 37M installed base 30-35% share of shipments eP ePayments ayments $935bn total ecom flows/year <1% of flows
* excluding mPOS
Key Key st stre rengths
84
Where we want to go / from 2015 to 2020
INVESTOR DAY - LONDON // MARCH 23RD 2016
Expand in Expand in countries untries with with lo low POS w POS pene penetr tration ation
China
South East Asia (SEA), selective direct approach Bene Benefit fit fr from local migr
ation and ne and new r w regulations gulations
Mone Monetiz tize leading leading ins installed alled base positions base positions
Tetra, Estate Manager etc. Deliv Deliver solu r solutions be tions beyond nd terminals rminals
management in Australia and mature SEA
based gateway for non bankcard transactions in face- to-face environments (wallets@POS, bill payments, remittance, etc.) Focus on cus on full-servic full-service e model model
new partners and connections
Europe De Develop local lop local gateway in y in specific specific mark markets
to localize payments
Australia and New Zealand
SOURCE
CHIFFRES BAS DE PAGE
TERMINALS TERMINALS eP ePAYMENTS MENTS IN-S IN-STORE P RE PAYMENT YMENT
85
Ambition
INVESTOR DAY - LONDON // MARCH 23RD 2016
Le Leverage ge
position to c position to continue ntinue cap capturing terminals uring terminals gr growth th Le Leverage ge regional leadership gional leadership to to ca capture e eCommerce rce grow rowth and de and develop lop
el
Nathalie Lomon,
CFO
88 2009 2010 2011 2012 2013 2014 2014PF 2015 2016
701 701 907 907 1001 1001 1,206 1,206 1,371 1,371 1,607 1,607 1,846* 1,846* 2,197* 2,197*2,200* 2,200*
2009 2010 2011 2012 2013 2014 2014PF 2015 2016
105 105 166 166 184 184 223 223 279 279 377 377 415 415 508 508 440 440
INVESTOR DAY - LONDON // MARCH 23RD 2016
~X5 ~X5
Revenue (in €M) nue (in €M) EBITD EBITDA (in €M) (in €M)
~X3 ~X3
2016 T 2016 TARGET F ET FCF/EBITD F/EBITDA >45% O >45% OVER VER DELIVERED DELIVERED
* 2014PF includes the contribution of GlobalCollect as of January 1st, 2014
20%
15% 15% 18.3% 18.3% 18.3% 18.3% 18.5% 18.5% 20.3% 20.3% 23.4% 23.4% 22.5% 22.5% 23.1% 23.1%
Ta Target 2013 PLAN 2013 PLAN Ta Target 2013 PLAN 2013 PLAN
Proven track record 2016 targets reached a year ahead of schedule
89
2020 Revenue objectives
INVESTOR DAY - LONDON // MARCH 23RD 2016
70% 70% 60% 60% 30% 30% 40% 40%
€2.2bn €2.2bn €4bn* €4bn*
2015 2015 2020 2020
Terminals Payment Services €3.5Bn €3.5Bn €0.5Bn** €0.5Bn**
€2.2bn €2.2bn €4bn* €4bn*
2015 2015 2020 2020
Organic Acquisition
Cagr: 10% Cagr: 10% Cagr: 13% Cagr: 13%
* At 2015 exchange rate and including targeted acquisitions ** Acquired sales
90
Growth Drivers / terminal business overperforming the market
INVESTOR DAY - LONDON // MARCH 23RD 2016
MARKET TRENDS MARKET TRENDS INGENIC INGENICO GR GROUP OUP – REVENUE CA EVENUE CAGR GR
E&A E&A LAR LAR NAR NAR AP APAC
2015-2020 INGENIC 2015-2020 INGENICO GR GROUP OBJE OUP OBJECTIVE: CTIVE: HIGH-SINGLE HIGH-SINGLE-DIGIT GR DIGIT GROWTH TH
MID- MID- SINGLE SINGLE-DIGIT
HIGH-SINGLE-DIGIT HIGH-SINGLE-DIGIT DOUBLE DOUBLE-DIGIT
LOW-DOUB DOUBLE LE-DIGIT
91
Growth Drivers / payment services activities
IN-S IN-STORE KEY DRIVERS RE KEY DRIVERS ONLINE KEY DRIVERS ONLINE KEY DRIVERS
markets
2015-2020 INGENIC 2015-2020 INGENICO GR GROUP OBJE OUP OBJECTIVE: CTIVE: MID- MID-TEEN GRO TEEN GROWTH TH
INVESTOR DAY - LONDON // MARCH 23RD 2016
92
2015 2015 2015-2020 TRENDS 2015-2020 TRENDS Terminals rminals 47.5% 47.5%
industrial efficiencies partially balancing mix negative impact Pa Payment Servic Services es 36.9% 36.9%
In-store servic services: es:
Online services: es:
Gross margin / by business
INVESTOR DAY - LONDON // MARCH 23RD 2016
SOURCE
CHIFFRES TABLEAU
93
2015 2015 2015-2020 TRENDS 2015-2020 TRENDS R&D R&D 7%
S&M S&M 8%
(<8%) G&A G&A 10% 10%
OPEX / major trends
INVESTOR DAY - LONDON // MARCH 23RD 2016
2020 2020 EBITD EBITDA MAR MARGIN 22%-23% IN 22%-23%
94
Cash Conversion Objectives
INVESTOR DAY - LONDON // MARCH 23RD 2016
3-4% o 3-4% of r revenue nue Peak in ak in 2016 2016
No change No change co compare t to curr current situation ent situation
95
Use of cash
INVESTOR DAY - LONDON // MARCH 23RD 2016
Pa Payo yout ut ra ratio 35%
growing mark ing markets
Transaction r related (2/3 of acquisitions targeted)
Targeted (Consolidation of channels in hardware)
A SHAREHOLDER A SHAREHOLDER FRIENDL FRIENDLY GR GROWTH S TH STOR ORY
TARGETED A ETED ACQUISITIONS QUISITIONS ON A RE ON A REGULAR B GULAR BASIS SIS DIVIDEND POLICY DIVIDEND POLICY CO CONFIRMED
96
2020 ambition plan / a growth story
Re Revenue o
ctive
Double-digit
co conversion ra ratio
* At 2015 exchange rate and including targeted acquisitions INVESTOR DAY - LONDON // MARCH 23RD 2016