Oddo Mid Cap Forum 2012 January 5 & 6 2012 Disclaimer This - - PowerPoint PPT Presentation

Oddo Mid Cap Forum 2012

January 5 & 6 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

2010 sales: €907M World market share (H1’2011): 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: >15 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  A gateway for services: NFC, color screen, multimedia as a standard

A fully renewed terminal range covering all market segments

 Retail, banking & vertical markets

New solutions to address new markets

 iSMP: Turn iPod touch & iPhone into EMV secure mobility payment solution  WebPOS: Shop‐in‐a‐box services offer for merchants  iPA: bridging PDA & payment in a single device  iWL touch 280‐350: The 1st mobile payment solution designed for merchants’ value‐added services

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Ingenico: a strong growth potential in emerging markets

Source: Euromonitor / IMF

5 10 15 20 25 30 35 40

2005 2006 2007 2008 2009 2010 Average ‐ mature payment countries Average ‐ BRIC

• avg. 2 terminals p. 1,000 inh.
• avg. 24 terminals p.1,000 inh.

Source: Euromonitor / IMF

Mature Payment Countries Emerging Countries

Number of POS terminals per ‘000 people

Emerging markets*: 43% of H1’11 revenue, vs.37% in H1’10 Emerging markets & urbanization drive growth Increased middle class with access to financial services Governments pushing for tax collection Micro credit / Financial inclusion (ex: Fino in India)

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

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Ingenico: providing one‐stop‐shop solutions to merchants

End‐to‐end payment & VAS solutions

 easycash: n 1 in Germany, managing solutions for merchants, starting from the POS terminal (>275k connected POS)  Deploying easycash business model in other European countries

Solutions on a multi‐country scale

 AXIS: Worldwide cross‐border & front‐end processing solutions  Gaining traction with major counterparts and on a multi‐country scale

Cross‐channels solutions

 Internet: e‐payment services deployed  First customers validating the convergence off line/on line: Veolia, JC Decaux  Mobile: NFC compliant, iSMP, Mobile Service Provider (48% in Roam‐data)

Transactions: 13% of 2010 sales => 25% of 2013 sales

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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 160k small merchants

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Ingenico: a successful listing story

Inclusion in the Stoxx Europe 600 Index on Dec 19 2011 Shareholder structure

as of December 2011

Market capitalization: ~€1.5bn Share price evolution

 Overperformed CAC by 20% in 2011  Overperformed CAC by 71% in 2010

Source: Bloomberg. Share price from Jan 1 2010 to December 31 2011

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

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Ingenico: a robust business model

Moving to fabless model Moving to Telium2 platform

2006 2007 2008 2009 2010 2011

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

506 728 701 907 568 >985*

18.3% ≥18.3% 15.0% 15.9%

*At constant exchange rates

Guidance

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

March Merger with Sagem Monetel Dec Acquisition of easycash

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2008 2009 2010 H1 2011 2013 Target Transactions Maintenance

Ingenico: towards a new company profile with increased recurring revenue

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

Leveraging installed POS base

• f >15 millions to generate

recurring maintenance & services revenue Increased revenue from Transactions

18% 28% 40% 22% 32% in H1’11

revenues

17% 25% 4% 13%

Revenues from maintenance, services & transactions (in % of published revenue)

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A sustained profitable growth and operating leverage

in 2010:  Like‐for‐like growth: +10% vs. 2009  EBITDA:18.3% (+280 bpts)  Strong cash conversion* improvement: 62% vs. 56% in 2009 in H1’2011:  Like‐for‐like growth: +6% vs. H1 2010pf  EBITDA: +100 bpts vs. H1 2010pf 2011: confirming profitable growth while investing  Like‐for‐like growth: ≥+6.3%  EBITDA ≥18.3% vs. 18% in 2010pf

Proven track record in integrating new entities Balanced presence between emerging and mature payment markets

Ingenico: a sustainable profitability

*Cash flow before acquisitions and dividends

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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

2010 Cash conversion: 62% Low capital intensive model: capex at 20‐25m€ p.a Balanced revenue structure (geomix, increased contribution of recurring revenue from Transactions) Robust balance sheet : shareholder equity at €564m* Raised €250m convertible bonds in March2011 Net debt of €94.5m, x0.5 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

*As of June 30 2011 ** Last Twelve Months

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Key focused strategy Technological leadership Well positioned in a growing market Continuous shift towards electronic payments Structural changes in the payment ecosystem generating opportunities for enlarged leadership Leveraging key assets to expand margins Track record of profitable growth & financial strength

Ingenico investment case

September 13 2011

Appendix

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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

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easycash business model at a glance

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easycash: business model profile