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Worldline Sa — Ingenico Group — Debt Investor Presentation (September 2017)
40 slides from Worldline Sa's debt investor presentation, September 2017
Slide 1: Bond Investors Presentation
ingenico GROUP Bond Investors Presentation @ SEAMLESS PAYMENT
Slide 2: Disclaimer
Disclaimer This document includes forward-looking statements relating to Ingenico Group's future prospects, development and business strategies. This document also presents the acquisition by Ingenico Group of Bambora and corresponding expected synergies. These data do not represent forecasts within
Slide 3: Table of contents
Table of contents . Ingenico at a glance . Strong business fundamentals . Key strategic initiatives . Solid financial profile . Outlook . Appendices ingenico GROUP
Slide 4: Ingenico at a glance
Ingenico at a glance
Slide 5: Ingenico: a global & multi-local footprint
Ingenico! : a global & multi-local footprint 170 88 7,500 €5.1bn? , . market 2 7 . . countries offices employees capitalisation ee 20.6% €2,312m of revenue of EBITDA +30M 25 2016 revenue from margin in terminals Services (POS, 2016 deployed instore, online) R&D centers 4bn 664m €167bn instore €69bn
Slide 6: Ingenico Group at the centre of the payment process
Ingenico Group / at the centre of the payment process ingenico GROUP GATEWAY Full Service Approval Schemes Certified connections Acquirer ee Certified Multiple payment standards, connections with local/global protocols Collector q and regulations Issuing Bank Certified connections 7 = P. t Certified
Slide 7: Our clients: from small merchants to global brands
Our clients / from small merchants to global brands i PayPal Nieieorartke oi Partner with nell | METRO | ; y' OD 7 O A orange 1 ’ O 6) O + e EP THatys Walmart J Santander . . of the Top 30 ci financial : : pmpemy ESTEE institutions estal(YS ei LAUDER MM crite Cou T° ROU brands We Google Visa ~ AVIS.
Slide 8: Strong business fundamentals
Strong business fundamentals
Slide 9: From POS to Services and Instore to ePayments
From POS’ to Services and Instore to ePayments / presence across the whole payment value chain Terminals « Payment Services Terminals > < Services Transaction “Gateway” Collecting Acquiring Value-added services #1 player globally #1 player globally In-store (Europe) and online (global) In-store (Eur
Slide 10: Continuous ramp-up in payment services
Continuous ramp-up in payment services Investment in &JOINEDAPP o—_— Acquisition of DyingenceePayments | | Acquisition of , igehrmcres Z Easycash Platform —_ e RoamData Investments & H a ' fl : ; Launch of - H i i : Telium Tetra @ | International Ingenico becomes | C ) Dedicated PSD2 ~~ business wor
Slide 11: Group transformation towards payment services
Group transformation / towards payment services Payment Services L, o/w ~0% ePayments e Ingenico is accelerating its growth towards payment services, making it a unique player in the industry e Ingenico’s historical business (i.e. Terminals) has demonstrated very 2009A Revenues Terminals low volatil
Slide 12: Geographic presence
Hong Kong Germany Canada Benelux New Zealand Australia France United Kingdom 12
Slide 13: Terminals: 30+ years at the forefront in security
Terminals / 30+ years at the forefront in security 9 Competitive ______,_ Barriers to Entry ——o- Operational excellence —— advantages * Broad and widely deployed * Scale effect coupled to the * First payment provider to obtain range of products combining specificity of a global market the highest se
Slide 14: Instore Payment Services
Instore Payment Services / a fast, reliable and international network in order to help merchants in their cashless strategy Customer operation Flexible SEPA fast approved state of the art ae PP er Cost efficiency in Integrated POS security compliancy SERVICE 24/7 FASTNESS . WITH SLA EE) LARGE LIBRAR
Slide 15: ePayments Payment Services built on a global network
ePayments Payment Services / built on a global network asset and driven by e-commerce Opportunity €69bn 225 aay, Gg) 65,000 Global Processed lie more How eto os eCommerce sales’ Over 800 one ae Employees 2 0 1 5 ab €1.7tr 930 ingenico ingenico Beau , . 2016 San fans usta) ingenico - €2.0tr ingenico
Slide 16: ePayments Payment Services: Best-in-Class Full-Service Model
ePayments Payment Services / create the “Best- in-Class” Full-Service Model fa Gateway e Full service ioonee WaeHica | oe Acquirer _e Acquirer —'@ 9 GROUP ‘ ingenico : | i... GATEWAY | '€& GATEWAY Bs Merchant Fg Merchant Business model Business model | Fixed fee per transaction: €0.10 to €0.15 | Per
Slide 17: Key strategic initiatives
Key strategic Initiatives
Slide 18: Our strategic initiatives
Our strategic initiatives / to create a global leader in omnichannel acceptance LL ingenice ee eae Strengthen our unique in-store and multichannel offering in Europe * Expand in SMB space + Further extend our in-store and multichannel offering in Europe + Drive convergence towards omnichannel accept
Slide 19: Bambora acquisition: a key asset
Bambora acquisition / a key asset to implement Ingenico’s strategy Acquisition of Bambora, a fast growing player in payment services * €202m of revenues in 2016 of which 90% recurring ¢ Revenues and EBITDA CAGR of +20% and +30% over the next 2 years Accelerate |ngenico Group's strategy towards payme
Slide 20: Bambora: a perfect fit to our strategy
Bambora / a perfect fit to our strategy ingeni bamb en ingen tse =|- imbora © © Strengthen our unique . . . i in-store and multichannel Reinforce Online leadership Continued focus ANG I on digitization offering in Europe v Packaged solutions and go-to- Y Online acquiring capabilities v Digital on-bo
Slide 21: An acceleration to Group transformation
An acceleration to Group transformation ingenico GROUP Retail Impact on business units split? Higher revenue share in payment services! Terminals Banks & Acquirers Payment Services Payment, Services INGeNnico —_bambora GROUP Payment De Services 1) Notes 1 2016 proforma revenue figures 2 Excepting th
Slide 22: Accretion on Ingenico's economics
Accretion on Ingenico’s economics Total consideration of €1.5bn * Top Management to reinvest in Ingenico shares with significant part of their proceeds Transaction financed through available cash and debt financing Accretive to Ingenico's annual growth by ¢.1 to 2% Synergies of €30 million (run-rate
Slide 23: Solid financial profile
Solid financial profile ,
Slide 24: Proven track record in executing strategy
Proven track record / in executing strategy and generating profitable growth Strong investments to prepare H the future: ' + Launch of Telium Tetra ! * ePayments platforms } i * Revenue (in €m) ¢ EBITDA (in €m) ‘ 2,312 Nt 2,197 ‘! 508 1,607 1,371 1,206 1,001 907 2009 2010 2011 2012 2013 2014 2015 20
Slide 25: Solid free cash flow generation
Solid free cash flow generation | Strong investments to prepare the | | future: | © Launch of Telium Tetra | + ePayments platforms ¢ CAPEX (in €m) ars ¢ Free Cash Flow (in €m) 5 85 2009 2010 2011 2012 2013 2014 2015 2016 2009 2010 2011 2012 2013 2014 2015 2016 mmm CAPEX =o=—% of revenues mmm FCF =o=
Slide 26: 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 0.0 26
800 4.0 700 3.5 600 3.0 500 2.5 400 2.0 300 1.5 200 1.0 100 0.5 0 0.0 26
Slide 27: Debt structure: diversified sources of funding
Debt structure / diversified sources of funding Bank overdrafts and others e Amounts to €13m by type of debt as of June 30, 2017 Breakdown of Convertible bond / €500m, coupon 0% / Premium : Commercial paper e Amounts to €439m Bond / €450m, coupon 2.5% e Maturity: 7y - May 2021 « Amounts to €456m 55%
Slide 28: Balanced debt mix
Balanced debt mix 98% of debt located at Holding level | Well balanced debt structure 99% of gross debt labelled in Euro Gross debt mix €1,351m = Fixed Rate = Variable Rate ce) Notes Strong cash position Cash as of June 30" : €1,173m o Very limited cash trapped o Over 80% cash located a Holding leve
Slide 29: Conservative financial policy
Conservative financial policy Leverage policy Dividend policy M&A policy Liquidity Historical track record of sustaining net leverage well below 2.0x Historically, equity has been used and/or considered for transforming acquisitions; in addition, convertible bonds issued have been converted to equit
Slide 30: Outlook
Outlook ,
Slide 31: 2017 objectives confirmed
2017 objectives / confirmed EBITDA margin Organic growth Slightly c. 7% increasing vs. 2016 ingenico GROUP
Slide 32: Outlook: Mid-term
Outlook / Mid-term Revenue objective High single digit organic growth FCF/Ebitda Normative conversion ratio 45% Improvement in EBITDA margin Pay-out ratio 35% ingenico GROUP
Slide 33: Appendices
Appendices ,
Slide 34: Profit & Loss as of June 30, 2017
Profit & Loss as of June 30*, 2017 (in millions of euros) June 30, 2017 June 30, 2016 REVENUE 1,222 1,133 Cost of sales -716 -650 GROSS PROFIT 506 484 Distribution and marketing costs -108 -99 Research and development expenses Oil -87 Administrative expenses -109 -113 PROFIT FROM ORDINARY ACTIVITIES
Slide 35: Balance sheet as of June 30, 2017
Balance sheet as of June 30, 2017 ASSETS EQUITY AND LIABILITIES (in millions of euros) June 30, 2017 \June 30, 2016 (in millions of euros) June 30, 2017) June 30, 2016 Goodwill 1,438 1,358 — Share capital 62 61 Other intangible assets 504 499 Share premium account 816 766 Property, plant and equipme
Slide 36: Profit & Loss as of December 31, 2016
Profit & Loss as of December 315t, 2016 (in millions of euros) Dec. 31, 2016 Dec. 31, 2015 REVENUE 2,312 2,197 Cost of sales “1, 33iil -1,237 GROSS PROFIT 981 960 Distribution and marketing costs -210 -203 Research and development expenses -178 -157 Administrative expenses 232 212 PROFIT FROM ORDINA
Slide 37: Balance sheet as of December 31, 2016
Balance sheet as of December 315t, 2016 ASSETS ——————> EQUITY AND LIABILITIES panna) (in millions of euros) Dec. 31,2016 | Dec. 31,2015 = (in millions of euros) Dec. 31, 2016 | Dec. 31, 2015 Goodwill 1,409 1,351 Share capital 61 61 Other intangible assets 488 509 — Share premium account 762 722 Prop
Slide 38: Corporate governance
Corporate governance Board of directors Board committees Management ¢ The Ingenico Group Board of Directors applies best practices in terms of independence and balanced representation of both management and shareholders’ interests e Philippe Lazare combines the positions of Chairman and CEO of Ingen
Slide 39: Ownership structure
Ownership structure Ingenico’s top 10 shareholders as of December 315t, 2016 m Allianz Global Investors GmbH m Bpifrance Participations S.A. = Jupiter Asset Management, LTD (U.K.) Oddo Meriten Asset Management S.A. mw AXA Investment Managers (Paris) = The Vanguard Group, Inc. BlackRock Fund Advisors
Slide 40: Investor Relations
ngenico GROUP INVESTOR RELATIONS v¥ Laurent MARIE, VP Investor Relations (T): +33 15801 92 98 (M): +33 7 84 50 18 90 ¥ Kevin WORINGER, Investor Relations Manager (T): +33 158 01 85 09 (M): +33 6 02 18 59 08 @ SEAMLESS PAYMENT
Ingenico Group — Debt Investor Presentation (September 2017) on 6ix