Investors Presentation May 2012 Disclaimer This presentation - - PowerPoint PPT Presentation

Investors Presentation

May 2012

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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.

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Ingenico: a world leader in POS Terminals

2011 sales: €1bn World market share: 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: >17 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

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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, …)

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Ingenico: providing secured solutions through innovative portfolio of terminals

Renewed range of payment terminals in 20 months

 Telium2 OS as cost & performance differentiating factor The right range of terminals: fully part of retail experience

 The right form factors: color, touch screen, all‐in‐one terminal (iSMP)  The right platform of applications  NFC contactless embarked  EMV: the Group DNA

New solutions to address new markets & mobility

 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

Ingenico: the right presence to leverage geographies

*Emerging markets are Latin America, Asia‐Pacific and EEMEA

• avg. 3 terminals /1,000 inh.

Emerging Countries

Emerging markets* as a growth driver



45% of 2011 revenue, vs.41% in 2010



#1 in China, leader in Brazil



Still growth opportunities in South‐East Asia, LATAM outside Brazil, Russia, Africa

Europe SEPA: leveraging position of Pan‐European PSP



Operating >350,000 merchant terminals



Supporting >250,000 terminals for banks



42% of revenue derived from services in 2011



Increased pipe of cross‐channel deals

US market development



All products available for large retailers



Increasing pipe of pilots of Class A certifications with ISOs & processors



Ready to capture growth driven by EMV migration as EMV is part of group DNA

• avg. 24 terminals

per 1,000 inh.

Mature countries 6

Source: Euromonitor / IMF

Number of POS terminals per ‘000 people

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Ingenico: the right assets to provide

• ne‐stop‐shop solutions to merchants

Agile payment infrastructure & largest portfolio of cross‐channel & cross‐ border solutions

 Platforms supporting more than 2billion transactions in 2011  easycash solutions  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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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

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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 350k terminals

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Ingenico: a successful listing story

Reclassification to Technology sector in March 2012 Inclusion in the Stoxx Europe 600 Index on Dec 19 2011 Shareholder structure

as of May 2012

Market capitalization: ~€2bn Share price evolution

 Overperformed CAC by >25% in 2012  Overperformed CAC by 23% in 2011

Source: Bloomberg. Share price from Jan 1 2011 to April 30 2012

Including: ‐Fidelity (FMR LLC): 5.6% ‐Jupiter AM: 5.1% ‐Candel Partners: 2% ‐Allianz: 2.0%

Ingenico: a robust business model

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Revenue: x2 since 2006 EBITDA margin increase by ≥ +330 bps since 2009

Moving to fabless model Moving to Telium2 platform

*At constant FX & scope March Merger with Sagem Monetel Dec Acquisition of easycash

Investing into TransferTo & mobile payment

506 728 701 907 568 1 001 Organic growth ≥8.3%*

18.3% 18.3% 15.0% 15.9% ≥18.3%

Published revenue in m€ EBITDA (in % of revenue) Target

Ingenico: evolution towards a new group profile Recurring activity: 31% total revenue

42%: contribution of revenue

from services* in the SEPA region Leveraging installed payment terminal base of >17 million to generate recurring maintenance revenue Increased contribution of Transactions driving continuous shift towards direct relations with merchants

*Revenue derived from transactions, maintenance & services

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Combination of growth & increased recurring revenue => more recurring profitability

2008 2009 2010 YTD2011 Transactions Maintenance

28% 18% 22% 13% 4% 17% 31%

31%: contribution of group revenue

from services* in 2011

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Ingenico: evolution towards a new Group profile Ongoing customer diversification

2011

Reduced exposure to banks

 47% of revenue in 2011 vs. 50% in 2009

 European banks: 16% in 2011 vs. 19% in 2009

Increased contribution of merchant revenue

 28% in 2011 vs. 24% in 2009

 Operating more than 350,000 terminals

2009

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Leading global e‐Health provider to adress key market trends

Ingenico: leveraging XIRING acquisition to build up a leading global heathcare vertical

 Leader in Germany  International presence  Efficiencies  Leading provider of healthcare solutions in France  France : leading country in e‐healthcare  Serving>25k healthcare professionals

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Issue a remote payment

Ingenico: leveraging ROAM Data asset to reinforce

• ffer in mobile payment
• Ingenico mobile payment riding

ePayment in selective countries in Europe

• NFC infrastructure on entire

portfolio

• Google/PayPal wallet
• SmartPhone or Tablet Bluetooth

companion

• Full integration within retail and

mobility offering

Increased stake in to 86% to increase offer in mobilility

Complete solution for small merchants / Roam wallet and check out

Issue a payment Accept a payment

1 2 3

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Ingenico: financial strength and flexibility to execute strategy

Maintain leadership on POS market Provide 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

Focused acquisitions Managing financial flexibility Generating operating cash flow

2011 Cash conversion: 64%* Low capital intensive model Balanced revenue structure (geomix, increased contribution of recurring revenue from Transactions) Robust balance sheet : shareholder net equity at €623m Net debt of €109.7m, x0.6 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

*(EBITDA ‐ capital expenditures ‐ working capital requirements)/EBITDA

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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

September 13 2011

Appendix

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In €M Dec 31 2011 Dec 31 2010 Goodwill 529.0 466.3 Tangible & intangible Assets 186.2 188.1 Other non current assets 66.8 69.0 Inventories 94.9 105.5 Accounts receivables 335.3 254.1 Other Current Assets 27.4 21.5 Cash and cash equivalents 347.6 158.9 Total Assets 1587.2 1263.4 Net Equity 623.5 545.6 Minority Interests 7.1 ‐ Borrowings 427.6 228.8 Other non current liabilities 90.7 83.4 Accounts payables 297.3 267.7 Borrowings (short‐term debt) 29.7 39.2 Other current liabilities 111.3 98.7 Total Equity & Liabilities 1587.2 1263.4

Balance Sheet

Managing currency exposure risk

2011 Revenues 2011 Costs (COGS and OPEX)

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Glossary

POS: Point of Sale / e‐payment terminal VAS: Value‐added Services SEPA: Single Euro Payment Area. 27 European Union members, Island, Liechtenstein, Norway and Switzerland Acquirer: financial institution responsible for the underlying transactions (authorization, clearing & settlement) with its merchant‐customers Issuer: Cardholder’s bank Processor: a technical operator providing infrastructure to support acquirer functions, such as authorization, clearing and settlement services. In practice, acquirers outsourced merchant acquiring services to processor PSP: A Payment Service Provider is a company performing all or part of electronic payment services and potentially including settlement as per Payment Service Directive in Europe. In the US, settlement is always performed by financial institutions Scheme: provides a payments mechanism through the existing (debit or credit) card payment infrastructure ISO: Independent Sales Offices

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Typical payment transaction flow

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easycash: a major step to move up the value chain

POS terminal market Market Transaction services VAS Financial institutions mostly Value chain Hardware Terminal services Connectivity Pre‐ processing Processing Value‐added Services Settlement Ingenico entities Revenue type Monthly fee Monthly fee One off Monthly fee % of transaction in value Monthly fee+ Fixed charge / transaction Fixed fee per transaction Merchant Services Acquirer Processor VAS provider

Ingenico mostly provides POS terminals to either directly (large retailers) or indirectly (banks, distributors) Revenue business model mostly relies on one off fees Easycash operates payment & VAS services for merchants Revenue business model relies on recurring revenue through a per transaction payment type of business

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easycash business model at a glance