Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico Group — Merger or Acquisition (July 2017)
32 slides from Worldline Sa's merger presentation, Jul 20, 2017
Slide 1: Ingenico ramps up its transformation: Acquisition of Bambora
Ingenico ramps up its transformation: Acquisition of Bambora JULY 20TH, 2017 INVESTORS PRESENTATION
Slide 2: Disclaimer
Disclaimer This document includes forward‐looking statements relating to Ingenico Group’s future prospects, development and business strategies. By their nature, forward‐looking statements involve risks and uncertainties and are not guarantees of future performance. Ingenico Group’s financial condit
Slide 3: Agenda
Agenda • Ingenico ramps up its transformation: acquisition of Bambora Philippe LAZARE, Chairman and CEO • H1 2017 preliminary unaudited financial results Nathalie LOMON, EVP Finance • Conclusion Philippe LAZARE, Chairman and CEO 3
Slide 4: Acquisition of Bambora: Ingenico ramps up its transformation
1 Acquisition of Bambora: Ingenico ramps up its transformation
Slide 5: Key transaction highlights
Key transaction highlights • Acquisition of Bambora, a fast growing player in payment services • Accelerate Ingenico Group's strategy towards payment services with a disruptive approach • Key addition of a customer focused, performance driven payment services provider • Differentiated end-to-end off
Slide 6: Our strategic initiatives to address market evolutions
Our strategic initiatives to address market evolutions Strengthen our unique Continued focus in-store and multichannel Reinforce Online leadership on digitization offering in Europe • Expand in SMB space • Become a one-stop-shop • Be on par with pure digital addressing all complexities of payment pl
Slide 7: Bambora, a fast growing and innovative Payment Service Provider
Bambora, a fast growing and innovative Payment Service Provider • Fast growing company operating across Europe, North America and Australia with over 700 employees Background • Global Payment Service Provider initially built on the SEB merchant acquiring platform • Direct access to SMBs in Europe an
Slide 8: Bambora business overview
Bambora business overview Fast-growing payment services provider initially built on the acquiring platform of SEB, complemented by strategic acquisitions Global Online Europe In-store (c.44% of gross revenues) (c.40% of gross revenues) • Serves more than • Serves almost 66k 46k SMB merchants SMB mer
Slide 9: A booster for Ingenico's growth engine
A booster for Ingenico’s growth engine Unique customer-centric technology solutions driving value for merchants • Technology functionalities improving conversion rate and transactional flows • Nimble onboarding tools make new client boarding fast and efficient • Online, in-app and white label soluti
Slide 10: Customer-centric business model
Customer-centric business model Step up the approach of the fast growing end-to-end payment solutions market for SMBs in Europe Bambora One bundled offering of acquiring, POS and high value added services solutions All-in-one offering My Bambora Seamless Customer support Easy to Personalized web int
Slide 11: Technology enabler of superior customer experience
Technology enabler of superior customer experience A strong technology-centric platform, customer focused and performance driven Instant digital boarding Full service offering Value-added Highly efficient system takes <24 Holistic product offering gives services hours to onboard new customers1 custo
Slide 12: Merchant acquiring step change for the Retail Business Unit
Merchant acquiring step change for the Retail Business Unit Payment Gateway Consumer Merchants Acquirer Scheme Issuers Collector Retail • Key asset for • Leading acquiring • Powerful • Technology ePayments’ position in the knowledge given mindset and accelerating Nordics, especially in-depth superio
Slide 13: Expanded global presence
Expanded global presence Complementary geographical footprint adding scale in Ingenico's markets Online North America Australia In-store Online • Leading provider of online • Largest independent, • Leading provider of enterprise and in-app payment multi-vendor, payment on-line payment solutions solu
Slide 14: Bambora, a key milestone in executing our strategy
Bambora, a key milestone in executing our strategy Strengthen our unique Continued focus in-store and multichannel Reinforce Online leadership on digitization offering in Europe Packaged solutions and go-to- Online acquiring capabilities Digital on-boarding capabilities market channels and exp
Slide 15: Continuous ramp-up in payment services
Continuous ramp-up in payment services Investment in Acquisition of Acquisition of Acquisition of Platform Acquisition of investments Dedicated PSD2 compliant solution and Development for market place of Axis in Spain and Launch of the UK Acquisition of Development Acquisition of of Easycash in Bene
Slide 16: Continuous transformation of the group
Continuous transformation of the group Banks & Banks & Retail Acquirers Acquirers 13% Impact on 44% business units 48% 52% 56% split1 Banks & 87% Acquirers 2 Retail Retail Payment Payment3 Payment Services Services Services Higher 31% 38% revenue share in payment 62% services1 69% 100 Terminals Term
Slide 17: Presence across the whole payment value chain
Presence across the whole payment value chain Terminals Payment Services Transaction Value-added Terminals Collecting Acquiring “Gateway" services Presence in loyalty, In-store (Europe) selected European #1 player globally Online (global) fraud, FX and data and online (global) countries analytics se
Slide 18: Accretive transaction for Ingenico
Accretive transaction for Ingenico • 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 c.1 to 2% • Synergies of €30 million
Slide 19: H1 2017: Preliminary unaudited financial results
2 H1 2017: Preliminary unaudited financial results
Slide 20: Basis of presentation for H1'17 preliminary unaudited financials
Basis of presentation for H1’17 preliminary unaudited financials • Full audited H1’17 results will be released on July 26th, 2017 • For a better understanding of the Group’s performance • Operating performance and income statements in this presentation are prepared on an adjusted basis, i.e. excludi
Slide 21: H1'17 highlights
H1’17 highlights • Revenue: €1,222m • Organic growth*: +5% • Reported growth: +8% • EBITDA margin 20.0% • Key Highlights • Solid performance in most regions. Organic growth excl. Brazil: +6% • Outstanding performance in Asia and Europe • Improvement in North America vs. Q1 2017 • Unfavorable macroec
Slide 22: New organization in place
New organization in place A Global client-centric organization Banks & Acquirers Retail Allowing banks and acquirers to Supporting digitalization of differentiate through innovation and commerce and maintain leadership value-added services while in omnichannel payment improving cost efficiency (esta
Slide 23: Optimizing our operating model
Optimizing our operating model • Operational excellence plan • All local managers involved and committed • Continuous financial controlling • Plan expected to deliver €20-25m costs efficiency* • Continuous improvement driven by the new organization • Procurement and costs efficiency • Operational ex
Slide 24: H1'17 organic growth / +5%
H1’17 organic growth / +5% Revenue (in €M) Year-on year: +8% • Organic impact: 5% • FX impact: €12m 1,222 By geography • Solid growth across most regions 1,142 1,133 • +6% like-for-like excluding Brazil By traditional business segments 1,058 • Terminals: +3% • Payment Services: +11% By new business
Slide 25: H1'17 / revenue by region
H1’17 / revenue by region 25% APAC & Middle East +13%* Europe & 36% Africa +6%* €1,222M Latin America +5%* 7% -9%* 10% North America 22% -16%* ePayments +12%* *Growth rate at constant FX & scope 25 Ingenico Group – Acquisition of Bambora and H1 2017 preliminary results
Slide 26: Q2'17 organic growth / performance per region
Q2’17 organic growth / performance per region ePayments (+11%*) North America (+1%*) Europe & Africa (+4%*) Retail: B&A: B&A: - Investments - Increase in - PCI v1 enhancing volume orders replacement cycle scalability and - Stabilization of - Favorable performance the market regulation in - Strong ra
Slide 27: H1'17 / preliminary results
H1’17 / preliminary results H1’17 Changes In €M H1’16 vs. H1’16 Revenue 1,222 1,133 +8% Gross Profit 512 490 +4% In % of revenue 41.9% 43.2% (130)bpts EBITDA 244 244 n.s. In % of revenue 20.0% 21.5% (150)bpts EBIT 221 206 7% In % of revenue 18.1% 18,2% (10)bpts Free Cash Flow 69 64 +8% FCF/EBITDA co
Slide 28: Conclusion
3 Conclusion
Slide 29: Ingenico, a presence across the whole value chain
Ingenico, a presence across the whole value chain • Bambora, a key milestone in the execution of Ingenico’s strategy • Expand its own acquiring capabilities on top of existing partnerships in order to enhance the full-service offer • Step up the approach of the fast growing end-to-end payment soluti
Slide 30: Appendices
4 Appendices
Slide 31: H1'17 / gross profit by activity
H1’17 / gross profit by activity in €M Terminals Payment Services H1’17 Revenue 832 390 1,222 Like-for-like growth +3% +11% +5% Adj. Gross profit 385 127 512 In % of revenue 46.3% 32.4% 41.9% Margins remain strong despite change in geographical mix and platform’s investments 31 Ingenico Group – Acqu
Slide 32: Investor Relations
INVESTOR RELATIONS Laurent MARIE, VP Investor Relations (T): +33 1 58 01 92 98 (M): +33 7 84 50 18 90 Kevin WORINGER, Investor Relations Manager (T): +33 1 58 01 85 09 (M): +33 6 02 18 59 08