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Investors Presentation
May 2012
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Disclaimer
This presentation contains forward‐looking statements. The trends and objectives givenin this presentation are based on data, assumptions and estimates considered reasonableby Ingenico. These data, assumptions and estimates may change or be amended as aresult of uncertainties connected in particular with the performance of Ingenico and itssubsidiaries. These statements are by their nature subject to risks and uncertainties.These forward‐looking statements in no case constitute a guarantee of futureperformance, involves risks and uncertainties and actual performance may differmaterially from that expressed or suggested in the forward‐looking statements. Ingenicotherefore makes no firm commitment on the realization of the growth objectives shownin this release. Ingenico and its subsidiaries, as well as their executives, representatives,employees and respective advisors, undertake no obligation to update or revise anyforward‐looking statements contained in this release, whether as a result of newinformation, 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
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Source: Euromonitor / IMF
Number of POS terminals per ‘000 people
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Ingenico: the right assets to provide one‐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 bpssince 2009
Moving to fabless model
Moving to Telium2 platform
*At constant FX & scope
MarchMerger with
Sagem Monetel
DecAcquisition of easycash
Investing into TransferTo & mobile payment
506
728701
907
568
1 001
Organic growth ≥8.3%*
18.3%18.3%
15.0%15.9%
≥18.3%
Publishe
d reve
nue 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
+
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 reinforceoffer 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 payment1 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 marketMarket Transaction services VAS Financial institutions
mostly
Value chain Hardware Terminal
servicesConnectivity Pre‐
processing ProcessingValue‐added
ServicesSettlement
Ingenico entities
Revenue type
Monthly fee
Monthly feeOne off Monthly
fee
% of transaction in value
Monthly fee+ Fixed charge / transaction
Fixed fee per
transaction
Merchant Services AcquirerProcessor 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
