Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico Group — H1 2015 Earnings Presentation
29 slides from Worldline Sa's earnings presentation, Jul 29, 2015
Slide 1: H1 2015 earning results
H1 2015 earning results JULY 29TH , 2015
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 H1 2015
agenda H1 2015 Highlights Philippe Lazare, Chairman and CEO Financial results Pierre-Antoine Vacheron, EVP Strategy, Performance & Finance 2015 strategic update & outlook Philippe Lazare, Chairman and CEO
Slide 4: Highlights
Highlights H1 2015 1D
Slide 5: Strong increase in business performance & results
H1’15 / strong increase in business performance & results Strong revenue growth : €1,058m • Like-for-like growth: +15% • Reported growth: +50% • Growth well-balanced across region and segments EBITDA margin progression to 23.6% Net income, attributable to shareholders up to €122m Solid Balan
Slide 6: 2015 objectives raised
2015 objectives / raised Organic growth EBITDA margin +10 to 12 % ≥ 22 % * At constant exchange rate and based on FY13 pro forma revenue at €1.301bn (excluding TransferTo disposed on December 1, 2013) 6 Ingenico Group – H1'15 Results
Slide 7: Group transformation in progress
H1’15 / group transformation in progress H1 2015 Revenue €1,058M Including e-Payments : 22% of Group revenue Payment Services 31% Terminals 69% 7 Ingenico Group – H1'15 Results
Slide 8: Revenue by region
H1’15 / revenue by region 20% APAC & Middle East Europe Africa 35% €1,058M 11% Latin America +15%* 12% 22% North America e-Payments *Growth rate at constant FX & scope 8 Ingenico Group – H1'15 Results
Slide 9: Organic growth: solid performances in all regions
H1’15 organic growth / solid performances in all regions +40% NAR - US Growth : +90%, Group’s second +4% largest market Europe & Africa - Good dynamic in both mature and emerging markets +19% APAC&ME - Sustainable Growth in China LAR +28% - Strong Growth in - Growth driven by India Terminals segment
Slide 10: Financial Results
Financial Results H1 2015
Slide 11: Basis of presentation for H1'15 financials
Basis of presentation for H1’15 financials 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. exclude the impact of PPA amortization (IFRS3) • Foreign exchange gains and losses (including he
Slide 12: Strong and sustained growth
H1’15 / strong and sustained growth Revenue (in M€) 1058 Year-on year: +50% • FX impact: +68M€ 859 Like-for-like: +15% By geography • Solid growth across all regions 703 656 By business segment • Terminals / +15% • Payment Services / +16% with e-Payments: +17% H1'13 H1'14 H1'14 PF* H1'15 Pro forma i
Slide 13: Consolidated income statement
H1’15 / consolidated income statement H1’15 H1’14 H1’14 Changes In M€ Reported Pro forma* vs. H1’14PF Revenue 1,058 703 859 +15%** Gross Profit 474 325 378 +25% In % of revenue 44.8% 46.2% 44.0% + 80 bpts EBITDA 249 158 182 +37% In % of revenue 23.6% 22.4% 21.2% + 240 bpts EBIT 221 135 159 +39% In %
Slide 14: Gross profit by activity
H1’15 / gross profit by activity in €M Terminals Payment Services H1’15 Revenue 725 333 1,058 Like-for-like growth +15% +16% +15% Adj. Gross profit 347 127 474 In % of revenue 47.8% 38.2% 44.8% • Terminals: Strong revenue growth and positive mix effect • Payment Services: Costs under control (Axis)
Slide 15: Operating expenses under control
H1’15 / operating expenses under control H1’14 H1’14 in €M H1’15 pro forma reported Research & Development 69 55 48 Sales & Marketing 82 73 65 General & Administrative 102 90 77 Adj. Operating expenses 253 219 190 In % of revenue 23.9% 25.5% 27.0% • S&M and G&A expenses under control • Financing inn
Slide 16: Net result
H1’15 / net result H1’14 H1’14 In M€ H1’15 reported pro forma Adj. EBIT 221 135 159 Purchase Price Allocation (25) (13) (26) Other income & expenses (3) (2) - Financial result & Equity (6) (8) - Method Income before tax 188 112 - Income tax (64) (37) - Income tax rate 34.2% 33% - Net Result 124 75 -
Slide 17: Free Cash Flow
H1’15 / Free Cash Flow In M€ H1’15 H1’14 EBITDA 249 158 Working capital changes (81) (42) Capex (27) (21) Other income & expenses (1) (2) Interests paid (8) (6) Tax paid (73) (28) 59 59 • Working capital changes due to temporary seasonality effect • WCR represents 11% stable vs last year • Tax paid
Slide 18: Robust financial structure
H1’15 / robust financial structure In M€ H1’ 15 H1’14 Net debt 764 Net debt as of Jan. 1 764 296 Free Cash Flow 59 59 Dividend paid (31) (20) 414 441 OCEANE 2011-2017 111 10 1.8 1.6 251 Issuing of OCEANE 2015-2022 73 - 155 0.8 0.9 Acquisitions net of disposals 94 - 0.6 0.7 0.8 0.3 0.3 Others 18 (4)
Slide 19: A smart business model
a smart business model Mid term target EBITDA High cash Growth margin conversion > +10% > 20% confirmed H1 results confirm strengths of Group’s Business Model 19 Ingenico Group – H1'15 Results
Slide 20: 2015 strategic update & outlook
2015 strategic update & outlook
Slide 21: GlobalCollect integration
strategic update / GlobalCollect integration AFTER ONE YEAR Growth : +17% organic in H1 2015 Integrated organisation (Comex) 21 Ingenico Group – H1'15 Results
Slide 22: Multichannel gateway
strategic update / Multichannel gateway The offer: • 1 GW managing in-store and on- line transaction • 1 back-office for global reporting and configuration • 1 token to identify consumer in- store and on-line • 1 set of cross channel services (eg click and collect) • Market first real cross channel
Slide 23: Telium Tetra: major progress
strategic update / Telium Tetra: major progress New features to better monitor More than 30 Apps ready : loyalty, customer terminal functioning and better manage survey, donation, menu ordering, advertising, terminal life cycle etc. New ergonomics, fully web-designed Pilots expected late 2015/early
Slide 24: Innovation: key achievements in H1'15
strategic update / innovation: key achievements in H1’15 Paving the way for payment acceptance in connected devices Partnership to help online merchants boost their business abroad In H1 2015, Ingenico Labs developed technologies enabling Group’s clients to use Apple Pay solutions, including contact
Slide 25: A strong platform for the future
Ingenico Group / a strong platform for the future A truly global player, with strong scale effect Positioned all across the payment value chain Stronger into software and services An unrivalled combination of geographical coverage, network of acquirers/banks and payment methods A well-bala
Slide 26: Appendix
Appendix
Slide 27: 2014 pro forma including GlobalCollect
2014 pro forma / including GlobalCollect H1 2014 FY 2014 In M€ Pro Pro forma forma Revenue 859 1,846 Adjusted Gross Profit 378 807 In % of revenue 44.0% 43.7% Adjusted OPEX (219) (446) In % of revenue 25.5% 24.2% EBITDA 182 415 In % of revenue 21.2% 22.5% Adjusted EBIT 159 361 In % of revenue 18.5%
Slide 28: 2013 Pro Forma R&D Reclassification
2013 Pro Forma / R&D Reclassification 2013PF before Reclassification 2013PF In M€ reclassification Adjusted Gross Profit / Terminal 500 - 500 As a % of revenue 46.1% 46.1% Adjusted Gross Profit / Payment 93 11 104 Service 43.0% 48.0% As a % of revenue Adjusted Gross Profit 593 11 604 As a % of reven
Slide 29: PPA at Year End and amortization
PPA at Year End and amortization By Acquisition Amortization 2014 2015 2016 2017 2018 easycash (8) (8) (4) (4) (4) Sagem Monetel (4) (4) (4) (4) (1) XIRING (3) (2) (1) (1) (1) Ogone (7) (7) (7) (7) (4) GlobalCollect (6) (24) (24) (24) (24) Others (4) (3) (2) (2) (1) Total (32) (48) (42) (41) (35) 29