Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico Group — Investor Day (April 2019)
59 slides from Worldline Sa's investor day presentation, Apr 24, 2019
Slide 1: Capital Market Day, April 24th 2019
\ ie Pat y a WA) v2 ws April 24th 2019 INGENICO ingenico
Slide 2: Agenda
AGENDA CAPITAL MARKET DAY 2019 Kr OPENING REMARKS & RETAIL FOCUS ON - STRATEGIC OVERVIEW GROWTH MID-TERM FINANCIAL CLOSING REMARKS OUTCOME COFFEE BREAK Q&A SESSION B&A FIT TO COMPETE COCKTAIL & DEMOS _——— © ingenico 2 *) INGENICO GROUP - CA
Slide 3: Speakers
CAPITAL MARKET DAY 2019 SPEAKERS NICOLAS HUSS ease MICHEL-ALAIN MATTHIEU JENNIFER JOHAN GABRIEL PAULA PROCH DESTOT MILES TJARNBERG DE MONTESSUS FELSTEAD CFO B&A North America Retail Global Online cto Ingenico B® INGEN >- ( K GROUP
Slide 4: Opening Remarks & Strategic Overview
OPENING REMARKS & STRATEGIC OVERVIEW Nicolas Huss CEO &, ingenico
Slide 5: DOCUMENT D’EXECUTION application écran, web et Ne pas utiliser pour l’impression
DOCUMENT D’EXECUTION INGENICO_RVB.ai INFORMATIONS GENERALES COULEURS UTILISEES APPROBATION Client: INGENICO Date : 10 JAN 2014 74/79/85 194/4/24 Utilisation: fichier natif pour application écran, web et microsoft. Ne pas utiliser pour l’impression
Slide 6: DOCUMENT D’EXECUTION application écran, web et Ne pas utiliser pour l’impression
DOCUMENT D’EXECUTION INGENICO_RVB.ai INFORMATIONS GENERALES COULEURS UTILISEES APPROBATION Client: INGENICO Date : 10 JAN 2014 74/79/85 194/4/24 Utilisation: fichier natif pour application écran, web et microsoft. Ne pas utiliser pour l’impression
Slide 7: A New Management, A New Mindset
A NEW MANAGEMENT, A NEW MINDSET MICHEL LEGER Innovation NICOLAS HUSS, CEO MARK ANTIPOF cco MICHEL-ALAIN PROCH CFO JENNIFER MILES North America > MATTHIEU DESTOT BBA JOSE LUIS ARIAS Latin America e@ e@ e@ LUCIANO CAVAZZANA EMEA EGLANTINE DELMAS Internal Audit & Control > JACQUES GUERIN Strategy & Tra
Slide 8: A New Mindset
A NEW MINDSET End-to-end solutions 4 CUSTOMER CENTRICITY Talent development Multiple channels ingenico GROUP
Slide 9: Offering Fitting with Ecosystem Dynamics
OFFERING FITTING WITH ECOSYSTEM DYNAMICS Our Go-To-Market strategy reflected in our operating model B&A * Global presence with local know-how + Largest portfolio of applications with +300 accepted payment means + Market innovator 9) INGEN SMB + Pan-European platform capabilities covering the full pa
Slide 10: Global Reach
GLOBAL REACH ® i tii | 7 —{. —s e e e e e e e e e e e e e 2 2 2 e e +550,000 +1,000 + 8000 €320BN +30M Merchants Banks People Online and instore Installed POS & Acquirers processed Worldwide transactions ingenico 10 * INGENICO GROUP
Slide 11: A Strong Development Over the Past Decade
A STRONG DEVELOPMENT OVER THE PAST DECADE Revenue EBITDA 2,643 X5 X5 488 568 100 2007 + 2018 2007 + 2018 + Revenue multiplied by 5x + EBITDA growing by 16% + Strong diversification per year towards recurring model +» Margin maintained along the period Free Cash-flow X5 238 all 2007 2018 « Strong foc
Slide 12: Our Environment Has Been Evolving
OUR ENVIRONMENT HAS BEEN EVOLVING OVER THE PAST 2 YEARS Payment market Consolidation Technology continues is transforming is accelerating to drive innovation LATEST MARKET TRENDS LATEST MARKET TRENDS LATEST MARKET TRENDS + From cash to epayments worldpay + vantiv. + Ei s * Shift to Android * Evoluti
Slide 13: Way Forward to Address Our Ambition
WAY FORWARD TO ADDRESS OUR AMBITION IN THE CHANGING ENVIRONMENT “Trusted technology partner “The most Proactive Partner in the new world of acceptance” in the new world of commerce” Worldwide . leadership Strategic & accelerators scale Industrial Globa) reach Business Dedicated & local optimization
Slide 14: DOCUMENT D’EXECUTION application écran, web et Ne pas utiliser pour l’impression
DOCUMENT D’EXECUTION INGENICO_RVB.ai INFORMATIONS GENERALES COULEURS UTILISEES APPROBATION Client: INGENICO Date : 10 JAN 2014 74/79/85 194/4/24 Utilisation: fichier natif pour application écran, web et microsoft. Ne pas utiliser pour l’impression
Slide 15: Mid-Term Financial Outcome
MID-TERM FINANCIAL OUTCOME Michel-Alain Proch CFO ingenico
Slide 16: 2019 Updated Guidance
2019 UPDATED GUIDANCE INITIAL 2019 GUIDANCE UPDATED 2019 GUIDANCE (Before IFRS 16 impact) UPDATED 2019 GUIDANCE (After IFRS 16 impact) Revenues 4-6% organic growth (flat B&A / double digit Retail) EBITDA > €550M (c:€280M BBA / > €270M Retail) FCF conversion c.50% conversion rate (i.e. C€275M FCF) OU
Slide 17: Our Mid-Term Drivers
OUR MID-TERM DRIVERS Profitable growth Strong FCF Capital allocation acceleration generation priorities Restore profitable growth of B&A Driven by EBITDA acceleration Growth project investments, Retail growth acceleration Strong financial discipline focus on organic Fit for Growth plan execution cap
Slide 18: DOCUMENT D’EXECUTION application écran, web et Ne pas utiliser pour l’impression
DOCUMENT D’EXECUTION INGENICO_RVB.ai INFORMATIONS GENERALES COULEURS UTILISEES APPROBATION Client: INGENICO Date : 10 JAN 2014 74/79/85 194/4/24 Utilisation: fichier natif pour application écran, web et microsoft. Ne pas utiliser pour l’impression
Slide 19: Fit for Growth initiatives
Adapt our industrial capabilities Portfolio optimization R&D optimization Back-book optimization Organization streamlining Technology & operational efficiencies Product portfolio rationalization Transformation of sales model Android Competence Center SMB geographical expansion Tetra ramp up Establis
Slide 20: Improve Operating Leverage and Drive Efficiency
IMPROVE OPERATING LEVERAGE AND DRIVE EFFICIENCY G&A Procurement Technology Operating streamlining optimization transformation model Group processes redesign and Global procurement function Simplification of !T Legal structure standardization creation application landscape reorganization into two sub
Slide 21: 2021 Fit for Growth Plan
2021 FIT FOR GROWTH PLAN B&A Retail Revival Acceleration €40M €20M €100M t + EBITDA impact G&A { { streamlining Procurement { { optimization 33 initiatives Technology { t transformation Operating f if model Execution Clear + + €40M dedicated governance ingenico GROUP 21 + INGENIC
Slide 22: Bridge 2018-2021 Group EBITDA
BRIDGE 2018-2021 GROUP EBITDA > 110 c10 c.700* > 60 O+ > 550 30 > 580 | 488 _— = Includes €80m Includes €20m of Fit for Growth of Fit for Growth 2018 RETAIL B&A 2019 IFRS 16 2019 RETAIL B&A 2021 EBITDA GUIDANCE IMPACT GUIDANCE GUIDANCE (excl. IFRS 16) (incl. IFRS 16) EBITDA building blocks 2018-2021
Slide 23: Bridge 2018-2021 B&A EBITDA
BRIDGE 2018-2021 B&A EBITDA ! 5 | ¢,300* c. 295 (30) 1 30 7” ee : i | = I 1 1 15 | ¢.280 1 ! 277). (20) | ! I I 1 1 ! on | I ! I 1 I | ! I ! I ! I ! f ! 1 ! I ! I I 1 FIT FOR I 1 FITFOR y 1 GROWTH | I GROWTH 2018 MIX | Baa GLOBAL | 2019 IFRS 16 2019 mix I B&A cLoBaL | 2021 EBITDA RELATED — IREVIVAL
Slide 24: Bridge 2018-2021 Retail EBITDA
BRIDGE 2018-2021 RETAIL EBITDA I | 15 \¢. 400** 1 30 om (| c.70 | Hi I I I lo ss 2s fp | >65" | (10) 5 17270 2 | ; — I 210 a ' ; 1 ! I I 1 | 1 ! 1 | 1 ! ! fl I 1 ! I I i] 1 i) 1 FITFOR ! | FITFOR | 1 GROWTH | 1 GROWTH 1 1 1: ! 2018 GROWTH 1 _ RETAIL GLOBALT 2019 IFRS 16 2019 GROWTH RETAIL GLOBAL) 20
Slide 25: 2018-2021: €100M Additional Cash Generation
2018-2021: €100M ADDITIONAL CASH GENERATION (30-40) (10-20) c. 330 238 2018 EBITDA IFRS 16 IFRS 16 CAPEX WC OTHERS 2021 FCF (excl. IFRS 16) EBITDA LEASE (Taxes & Interests) FCF IMPACT REPAYMENT FCF building blocks 2018-2021: > €180M EBITDA increase Retail capex contained to 5% of revenues in average
Slide 26: Value creation by 2021
BY 2021 RETAIL ORGANIC GROWTH B&A REPOSITIONING AND ACCELERATION OPTIMIZATION FOCUS ON FREE REDESIGN OF GROUP CASH FLOW GENERATION OPERATING MODEL Create value for all stakeholders ingenico OUP - CAPITAL MARKET DAY 2019 GROUP
Slide 27: B&A
B&A North America ingenico
Slide 28: Banks & Acquirers
BANKS & ACQUIRERS “Trusted technology partner in the new world of payment acceptance” ingenico GROUP
Slide 29: POS Market Reaches Maturity but Still Growing
POS MARKET REACHES MATURITY BUT STILL GROWING Global market growth (market size in €bn) 1.9 27 INGENICO PLAYING 2.6 FIELD Traditional & High-End 8 Low-End 2013 2018 2021 ingenico GROUP
Slide 30: A More Fragmented POS Market
A MORE FRAGMENTED POS MARKET WITH THE ENTRY OF NEW PLAYERS a a Zz z a . & z Nemexisient POS system fully integrated 5 =x =x z Android platform market 2 Zz Incumbent players S g (Proprietary & security e share from 5% today to 40% e Incumbent players 9 a} driven POS) Ly ie (Proprietary / Android) 5 3
Slide 31: Our Ambition / Conviction
OUR AMBITION / CONVICTION LEADERSHIP PARTNERS Banks and acquirers ISOs and ISVs Proven Products . Fintechs and and capabilities Being the most merchant aggregators trusted technology partner in the new world of payment acceptance Extended market footprint Scale with local know-how NEW WORLD OF COMME
Slide 32: Our Strategic Approach - How to Win
OUR STRATEGIC APPROACH - HOW TO WIN Leverage our Accelerate our Develop adjacent Industrial & leadership on growth with services and commercial Tetra Android deployment model redesign e e e e e e e e e e ingenico 32 * INGENICO GROUP - CAPITAL MARKET DAY 2019 GROUP
Slide 33: Europe, Middle-East & Africa
Ww i oO > = 5°) a oO aS - cj = EUROPE, MIDDLE-EAST & AFRICA MARKET SIZ INGENIC c.€1.0BN £495M -1%/ 1% Addressed Organic 9 Revenue 018 Growth market size 2018 2018-2021 Market drivers and how to win Mature market in Western Europe as equipment refreshes are no longer driven by PCI security cycles New
Slide 34: North America
NORTH AMERICA MARKET SIZ INGENIC c.€700M €163M 0% / 2% Addressed Organic 018 Revenue Growth market size 2018 2018-2021 Market drivers and how to win 2 US Market back to preEMV renewal cycle A=—™ 6° Capitalize on upgrade cycle to gain market share in top g with a new cycle expected in 2019-2020 - s 2
Slide 35: Latin America
LATIN AMERICA MARKET SIZ c.€500M Addressed 018 market size INGENIC 8% / 10% Organic Growth 2018-2021 €199M Revenue 2018 Market drivers and how to win Mm Growing market in Brazil, driven by mPOS — - S and acquiring competition albeit at a slower 3 = pace than 2019 £ am => ~=Mexico and other Latam mar
Slide 36: Asia-Pacific
ASIA-PACIFIC MARKET SIZ INGENIC c.€1.4BN -1%/1% Addressed €447M Organic 018 Revenue Growth market size 2018 2018-2021 7. Market drivers and how to win (2 Mature APAC markets driven by renewal & Leverage local leadership to seize volume g cycles (Australia, Japan) and some ASP 3 opportunities in grow
Slide 37: Organic Growth Wrap-Up
ORGANIC GROWTH* WRAP-UP 2018 2018-2021 GROWTH CAGR EMEA -16% -1%/ 1% NORTH AMERICA -9% 0% / 2% LATIN AMERICA 36% 8% / 10% ASIA PACIFIC -A% -1%/ 1% 0% / 2% B&A TOTAL -4% ingenico GROUP
Slide 38: Reposition Industrially to Restore Profitable Growth
REPOSITION INDUSTRIALLY TO RESTORE PROFITABLE GROWTH MARKET FACTORS STRUCTURAL FACTORS Renewal phases more spread out Acquirers concentration and Android ramp-up and new players opportunities INTERNAL FACTORS Decentralized organization ADAPT OUR INDUSTRIAL CAPABILITIES FOCUS OUR GO TO MARKET ORGANIZ
Slide 39: We Are in Motion
WE ARE IN MOTION Industrial redesign Commercial redesign Increase efficiency Client centric and solutions oriented Product range simplification New Operating model Android international Operate as ONE company deployment . Sales transformation and R&D and manufacturing effectiveness optimization Enfo
Slide 40: B&A Value Creation Levers
2018 4% Organic revenue decline €277M EBITDA * At constant 2019 FX B&A VALUE CREATION LEVERS LEADING POSITION 1 + Global positioning 2 + Local know-how BUSINESS REPOSITIONING « Adapt our industrial capabilities + Focus our go to market organization + R&D optimization + Android competence center + Pr
Slide 41: Retail speakers
Johan Tjarnberg (am) Retail bias e ™ Paula Felstead e\ cTO bse \ Gabriel de Montessus Global Online ingenico
Slide 42: Retail
RETAIL “We are shaping the most _ customer focused payment experience in the new world of commerce” ingenico GROUP
Slide 43: Transformation Track Record in Last Months
TRANSFORMATION TRACK RECORD IN LAST 18 MONTHS Two new Complete New Growth New leadership Verticals strategic payment value Oriented model dedicated accelerators Chain Capabilities Operating Model Talent technology management [BS/PAYONE| a ‘el 2x revenues Improved Positioned Speed profitability for n
Slide 44: Our Ambition / Conviction
OUR AMBITION / CONVICTION OUR CUSTOMERS VERTICALS (“Yo Merchant direct New targeted gs Increased focus vertical focus on SW partners We are shaping the most customer focused payment experience in the new world of FOCUS ON commerce NEW WORLD PAYMENTS OF COMMERCE Cross border Omni-channel Multiple pay
Slide 45: Our Strategic Approach - Where to Win
OUR STRATEGIC APPROACH - WHERE TO WIN RETAIL BUSINESS LINES SMB ENTERPRISE PAYONE Sy TARGET POSITION eoce LEADING POSITION IN ALL OUR TARGET VERTICALS & REGIONS ec5e GEOGRAPHIC FOCUS Global Global DACH Plug & Play Modularized Modularized oo PRODUCT FOCUS Full-Service Full-Service Full-Service © eco
Slide 46: Our Strategic Approach - How to Win
OUR STRATEGIC APPROACH - HOW TO WIN x& wa New Growth Dedicated Portfolio Channel Model & Growth Approach Verticalization Initiatives & Synergies + New Growth Channel Model + Launch of dedicated + Investment allocation based + Plug & Play (e.g. commercial org growth initiatives across on portfolio ap
Slide 47: Technology - How to Win
x& VERTICAL GROWTH STRATEGY LEGACY FACTORS TECHNOLOGY - HOW TO WIN Leverage capabilities to all customers, regardless of entry point Speed & Geographical Connectivity UX, Data Agility Expansion & oerenips & Analytics 1 4 o08o © per o5o e e e e e e e @ e e e e a NEW LEADERSHIP / INNOVATION a OPEN SOU
Slide 48: Technology & Products - How to Win
TECHNOLOGY & PRODUCTS - HOW TO WIN APIs & SDKs GlobalToken Service : s : e q ° oo &, Data e ad enablement e Hybrid Cloud e ° @ Risk & Fraud services MW Azure ® SF Non card RUE ST Payments WeChat Pay > Be Alipay e@ Private y network ingenico GROUP
Slide 49: SMB
SMB Market dynamics INGENICO SMB MAIN COMPETITORS Local Banks Regional PSPs New Global Players ADDRESSED MARKET" Our position and how to win in SMB NEW GROWTH CHANNEL MODEL & VERTICALIZATION + Ingenico & Bambora SMB merged + Dedicated ISV Partner channel in Europe OUR STARTING POINT + Scale (>500K m
Slide 50: Global Online
GLOBAL ONLINE Market dynamics ADDRESSED MARKET* INGENICO GLOBAL ONLINE MAIN COMPETITORS Global Cross Boarder Gateway and Full Service providers Regional gateway providers (PSPs) 12-13% Organic 6-8€bn h Our position and how to win in Global Online a OUR STARTING POINT NEW GROWTH CHANNEL MODEL & VERTI
Slide 51: Enterprise
ENTERPRISE Market dynamics INGENICO ENTERPRISE MAIN COMPETITORS Regional gateway providers Global omni channel full service providers ADDRESSED MARKET* Our position and how to win in Enterprise a OUR STARTING POINT ~~ NEW GROWTH CHANNEL MODEL & VERTICALIZATION wal + Scale in processing in Europe and
Slide 52: Payone
PAYONE Market dynamics INGENICO PAYONE MAIN COMPETITORS Local / Regional NSPs and acquires Global e-com / omni channel full service providers ADDRESSED MARKET* Our position and how to win in DACH a OUR STARTING POINT ~~ NEW GROWTH CHANNEL MODEL & VERTICALIZATION wal + Regional market share leader iN
Slide 53: Organic Growth Wrap-Up
ORGANIC GROWTH* WRAP-UP cada TBRCETED 16% >15% GLOBAL ONLINE 0% 12-13% ENTERPRISE -2% 5-7% PAYONE a 8-10% RETAIL TOTAL “ingen ora revere growth ingenico 53 + INGENICO GROUP - CAPITAL MARKET DAY 2019 GROUP
Slide 54: Retail Value Creation Levels 2021
RETAIL VALUE CREATION LEVELS 2021 DEDICATED GROWTH INITIATIVES 1 + SMB geographical 11-12% expansion Organic BUSINESS 2 + Establish ISV leadership revenue OPTIMIZATION (SMB) growth 3 + Establish leadership in in 2021 self-service in Europe 4 + Global e-com acceleration in Asia and Latam 1 + Transfor
Slide 55: Closing Remarks
CLOSING REMARKS Nicolas Huss CEO §, ingenico
Slide 56: Conclusion
CONCLUSION Fit For Growth 2019 - REPOSITIONING AND ACCELERATING REVIVED B&A RETAIL ACCELERATION ingenico GROUP
Slide 57: DOCUMENT D’EXECUTION application écran, web et Ne pas utiliser pour l’impression
DOCUMENT D’EXECUTION INGENICO_RVB.ai INFORMATIONS GENERALES COULEURS UTILISEES APPROBATION Client: INGENICO Date : 10 JAN 2014 74/79/85 194/4/24 Utilisation: fichier natif pour application écran, web et microsoft. Ne pas utiliser pour l’impression
Slide 58: Disclaimer
58)* INGEN 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 finan
Slide 59: Investor Relations
INVESTOR RELATIONS Laurent MARIE VP Investor Relations (T): +33 15801929 Kevin WORINGER Investor Relations Manager 8 (T): +33 158 01 85 09 (M): +33 7 84 50 18 90 (M): +33 6 02 18 59 08 ingenico GROUP