Investor Presentation January 2014 Ingenico: Strong track record - - PowerPoint PPT Presentation

Investor Presentation

January 2014

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Ingenico: Strong track record with

• perational and financial outperformance

2013 Revenue > €1bn achieved 2 years early 2013 EBITDA > 18% achieved 3 years early

55 87 116 105 166 180 223

11% 15% 15.9% 15.0% 18.3% 18.0% 18.5%

2006 2007 2008 2009 2010 2011r 2012

506 568 728 701 907 1,001 1,206

2006 2007 2008 2009 2010 2011 2012 Investor Presentation, January 2014

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Ingenico: Positioned in a growing market

Continuous shift from cash and checks towards electronic payments Electronic payment: double digit growth, above GDP Technology driving new payment usages and segments, expanding electronic payment market

> Mobile payment

Source: Euromonitor

39% 44% 53% 48% 46% 41% 13% 10% 6% 2006 2009 2013e Electronic Payments Cash Checks Continuous shift towards electronic payment

Investor Presentation, January 2014

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Ingenico: Active in fast-growing markets

The right geographies

Source: Euromonitor & World payment report

9% 22% 47% 2011-2013 CAGR

High-growth segments

223 286 413

Source: Euromonitor Emerging: LAR, Eastern Europe, MEA, emerging APAC Mature: NAR, Western Europe, mature APAC +7% +14% +9% +5% +12% +8%

Investor Presentation, January 2014

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Ingenico: Business model diversification towards payment services

Maintaining investments in smart terminals While supporting development in payment services

79% 79% <70% 2005 2009 2013e Payment Services Maintenance Smart terminals Ingenico revenue contribution

Investor Presentation, January 2014

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Ingenico: Ambition to enable merchants to increase their sales with secured and cost effective payment solutions

For merchants – directly or through acquirers & banks

> Facilitating acceptance of all payment means for a multi-channel approach > Providing cost effective payment and business solutions > Enabling data capture

For consumers: providing a seamless purchasing experience whatever the sales channel and the payment means

Investor Presentation, January 2014

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Payment terminals: A structurally growing market

Source: Euromonitor / IMF

First equipment market Security driving estate replacement Speed expectations from consumers driving estate expansion

Faster check out enabled by multiple touch points

+ +

Number of POS terminals per ‘000 inhabitants in emerging countries

• avg. 24 terminals per

1,000 inh. Mature countries Investor Presentation, January 2014

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Payment terminals: More and more technology on board

Global Standards Global Compliance Local Standards & Apps Multiple payment options

Terminals represent the tip of the iceberg >2,000 applications R&D: 8% of revenue >1,000 acquirers/banks

Investor Presentation, January 2014

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Payment terminals: More and more technology on board

Increased payment touch points with consumers Expanded payment options Heightened security requirements for retailers Greater integration …to match consumer habits and meet expectations

Investor Presentation, January 2014

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Ingenico: Complementing our smart terminals offer with payment services

Starting in Europe: 50% of revenue derived from services this year (vs. 27% in 2009) Managing payment services, whatever the channel: in store, on- line and mobile >3bn transactions in store, on-line and mobile >50% of the team working on services in Europe SEPA 250k merchants connected to our platforms

…. The transition towards payment services is a reality

Investor Presentation, January 2014

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Ingenico: Deploying our multichannel strategy

Create an unrivalled offering for a one-stop-shop, multi-channel payment solution for small-to-large merchants globally – covering the payment value chain

Notes: 1 Value-Added-Services Provider

Merchant Transaction « gateway » Collecting Acquiring VAS Provider1

In-store Online Mobile Mainly financial institutions Mainly financial institutions Mainly financial institutions

Online fraud

Investor Presentation, January 2014

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Ingenico: Leveraging on our know-how and network to deploy our dual engine strategy

Truly global player with deep access to Tier 1 merchants & banks

> Certified by > 1,000 acquirers/banks in > 125 countries > 70% of top 30 global retailers

Providing solutions to the full spectrum: from large to small customers Partnerships supporting innovation

Investor Presentation, January 2014

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Ingenico: 2016 Ambition

Continue overall growth > Revenue target> €1.8bn Strengthen operational > EBITDA margin > 20% performance Maintain financial discipline > EBITDA to Free Cash Flow conversion between 45 and 50% Implement an attractive > Pay out ratio: 35% dividend policy

Investor Presentation, January 2014

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Ingenico: Strategic priorities to support profitable growth

Deploy multi-channel strategy with the integration of Ogone Continue to combine terminals and services Increase our presence in selected emerging markets Maintain focus on innovation, especially R&D Focus on profitable organic growth… …while continuing to evaluate M&A opportunities in 3 unchanged areas (Terminals, Services, Technology)

Investor Presentation, January 2014

15 506 568 728 701 907 1001 1206

≥1370**

2006 2007 2008 2009 2010 2011r 2012 2013* 55 87 116 105 166 180 223

11% 15% 15.9% 15.0% 18.3% 18.0% 18.5%

2006 2007 2008 2009 2010 2011r 2012 2013*

2013: A good start towards 2016…

*2013 Target **Target excl. impact of TransferTo transaction, effective on Dec. 1st with contribution to Group’s revenue for Dec. expected around €7m

>19.5%*

Revenue (in m€) EBITDA (in m€)

Investor Presentation, January 2014

FY13 Like for like growth** ≥ +12%

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…Increasing our presence in selected markets with high growth potential…

As expected, acceleration of activity Large retailers: Consolidating solid position Small merchants: Increasing penetration with 8 out of 10 largest US processors/acquirers US Market Emerging markets On top of strong positions in China & Brazil, … …Gaining traction in new promising markets: Russia, Indonesia, Mexico, Central America … and building up an expanded distribution network: EMEA

Investor Presentation, January 2014

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…And providing solutions in store, on-line and mobile

Deployment of innovative solutions for Caché&CenPOS Gradual roll-out of AXIS solution across the network: 100k devices connected easycash: providing integrated payment solutions to Rossman in Germany and to the largest cab company in the Netherlands Providing white-label enterprise-level solutions for telco/banks and large retailers Platform available in 8 countries Operating white label solutions for Orange and BNPP in France, Fortis in Belgium, and Nets Increasing pipeline of pilot projects in Brazil, Europe and Asia

M-payment In-store

Ogone acquisition in January 2013 Ogone revenue +29%: for the first 9 months in 2013 Ogone integration on track Partnership with Mastercard on MasterPass integration and deployment

E-payment

Investor Presentation, January 2014

First multichannel deals signed First multichannel loyalty program launched for Sportpoint Increased interest from customers and prospects

Multichannel