Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico — FY2013 Earnings Presentation
33 slides from Worldline Sa's earnings presentation, Feb 19, 2014
Slide 1: FY 2013 Earning Results
FY 2013 Earning Results February 19th, 2014
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. The trends and objectives given in this presentation are based on data, assumptions and estimates considered reasonable by Ingenico. These data, assumptions and estimates may change or be amended as a result of uncertainties connected
Slide 3: Agenda FY 2013
Agenda FY 2013 1. Review of Activities Philippe Lazare – Chairman & CEO 2. Financial Results Patrice Durand – EVP Finance & Operations 3. 2014 Outlook Philippe Lazare – Chairman & CEO Ingenico – FY 2013 results 3
Slide 4: Review of activities FY 2013
Review of activities 1 FY 2013 Ingenico – FY 2013 results
Slide 5: 2013: Very good performance
2013: Very good performance Very strong revenue growth Revenue: €1.371 bn Reported growth: +14% Like-for-like growth: +14% EBITDA: 20.3% of revenue Net income group share: €114m, +18% Free Cash Flow improvement: €177m, +42% Proposed dividend of €0.80 per share, +14% FY14 Guidance: Like-for-l
Slide 6: We have a multilocal presence as a result of strategic initiatives
We have a multilocal presence as a result of strategic initiatives SEPA - Investing into on- line (Ogone) NAR / US payment services - Investing into the ISOs channel-to- market and mobile payment EMEA APAC - Investing in Russia - Investing in China - Restructuring and Indonesia distribution network
Slide 7: We have the right and innovative products and services, driving growth
We have the right and innovative products and services, driving growth A unique platform for services (Telium): NFC, multimedia as a standard Open to all payment means (international schemes, close-loop, NFC, wallets, QR code, etc.) Tailored to new regulations (ex: ECRPOS in Turkey) Driving transfor
Slide 8: We have a complete offer to provide payment solutions, whatever the channel
We have a complete offer to provide payment solutions, whatever the channel More than 250k merchants connected to Ingenico’s platforms Managing 3.5 bn transactions Mobile payment platform available in 8 countries In Europe, >300M transactions for Christmas shopping, whatever the channel IN-STORE ON-
Slide 9: We have started to diversify the business model towards payment services
We have started to diversify the business model towards payment services Group Europe-SEPA 28% 2013 2013 48% Revenue 52% Revenue 5% 67% Ingenico – FY 2013 results 9
Slide 10: Ogone integration is well on track
Ogone integration is well on track Ogone growth in 2013: +32% Demonstrated its capability to manage strong growth… +15k merchants connected to Ogone’s platform UK revenue x3 … while working on group synergies Ogone and easycash platforms connected 2 months after the acquisition 95% of easyca
Slide 11: We are a trusted partner of global brands
We are a trusted partner of global brands Ingenico is the Partner of choice of global brands (financial institutions, retailers…) as well as new entrants, to open network with acquirers and payment schemes. Latest initiatives beyond traditional use cases Global mPayment partnership mPayment in Franc
Slide 12: Financial Results FY 2013
2 Financial Results FY 2013 Ingenico – FY 2013 results
Slide 13: Basis of presentation for FY 2013 financials
Basis of presentation for FY 2013 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
Slide 14: Outstanding performance
Outstanding performance FY 2013 FY 2012 Changes In M€ vs. FY 2012 Revenue 1371 1 206 +14%* Gross Profit 600 513 +17% In % of revenue 43.8% 42.5% + 130 bpts EBITDA 279 223 +25% In % of revenue 20.3% 18.5% + 180 bpts EBIT 239 190 +26% In % of revenue 17.4% 15.7% + 170 bpts Net profit, attributable to
Slide 15: Over-performing top line growth
Over-performing top line growth Revenue (in M€) Year-on year: + 14% Ogone: 55M€ +14% 1371 Negative FX impact: -52M€ 1206 Like-for-like: +14% 1001 Double digit growth on all business segments +14%: Growth from Terminals* business +13%**: Accelerated growth from Transactions with Ogone FY2011
Slide 16: Leveraging geographically differentiated strategy
Leveraging geographically differentiated strategy Latin America +0% 14% Europe SEPA +7% Asia Pacific 43% €1371M 17% +21% +14%* 9% EMEA 9% 8% +40% Central Operations North America +12% +42% *Growth rate at constant FX & scope Ingenico – FY 2013 results 16
Slide 17: Terminals: Increased gross profit margin driven by volumes and Ingenico's strong expertise
Terminals: Increased gross profit margin driven by volumes and Ingenico’s strong expertise Terminals (Hardware, Services & Maintenance) FY 2013 / In M€ FY 2013 FY 2012 Revenue 1074 +14%* Increased volumes Gross Profit 494 +13% Strong purchasing capacity In % of revenue 46.0% +160bps Track record in
Slide 18: Transactions: Positive impact from the strategic development towards online solutions
Transactions: Positive impact from the strategic development towards online solutions Transactions FY 2013 / In M€ FY 2013 FY 2012 Revenue 297 +11%* Gross Profit 106 +38% Gross profit fostered by on-line development of Ogone In % of revenue 35.8% + 140bps In % of revenue 43.8% - 50 bps excluding Tra
Slide 19: Operating expenses: Continuing to invest in a fast moving environment
Operating expenses: Continuing to invest in a fast moving environment FY 2012 H1 2013 H2 2013 FY 2013 In M€ Research & As expected, accelerating 85 45 49 94 Development investment in H2 in focused Sales & R&D and Sales & Marketing 105 60 61 121 to support strategy Marketing deployment: Telium 3, Gen
Slide 20: Net result attributable to shareholders increased by 18%
Net result attributable to shareholders increased by 18% In M€ FY 2013 FY 2012 EBIT 239 190 in % of revenue 17.4% 15.7% Purchase Price Allocation (30) (26) Impact of TransferTo divestment Other income & expenses (21) 1 & Ogone acquisition Limited increase despite Ogone Financial result & Equity Meth
Slide 21: Continuous focus on cash generation
Continuous focus on cash generation In M€ FY 2013 FY 2012 EBITDA 279 223 Working capital changes 38 3 Capex (40) (44) Other income & expenses (10) (9) Interests paid (9) (5) Tax paid (82) (42) Free Cash Flow 177 125 Continued control of working capital requirements Strict monitoring of inventories
Slide 22: Continued strong liquidity position & financial flexibility
Continued strong liquidity position & financial flexibility Net debt (in M€) In M€ FY 2013 FY 2012 430 * Net debt as of January 1 75 110 Free Cash Flow 177 125 296 Dividend paid (13) (14) 1.8 Acquisitions net of disposals (363) (69) Others (22) (7) 110 1.1 75 0.60 0.6 0.39 0.3 0.18 Change in net deb
Slide 23: Increasing dividend by +14% in 2013
Increasing dividend by +14% in 2013 2013 2012 Net income, attributable to owners (in €m) 114 97 Dividend per share (in €) 0.80 0.70 Pay out Ratio 37% Dividend of €0.80 per share, payable in cash or in share will be proposed to next Annual General Meeting Ingenico – FY 2013 results 23
Slide 24: 2014 Outlook
3 2014 Outlook Ingenico – FY 2013 results
Slide 25: Focus on 2016 ambition plan
Focus on 2016 ambition plan Positioning Ingenico as the global leader in seamless payment, whatever the channel, facilitating payment activities for merchants, directly or indirectly Positioned on a structurally secular growth, we have 3 key focus/assets to drive continued growth Multi local Inn
Slide 26: Continue to leverage our multi-local differentiated strategy
Continue to leverage our multi-local differentiated strategy Mobile payment Increased demand for multichannel More security in services the US EMV migration Point-to-point encryption New regulation Growing middle- driving new class (50% of the world’s opportunities population by 2030, vs 30% Integra
Slide 27: Innovation driving growth. Telium 3, our next generation platform
Innovation driving growth. Telium 3, our next generation platform Improved form factor TELIUM 3 business payment acceptance & in consumer connected apps devices Ingenico – FY 2013 results 27
Slide 28: A comprehensive offer to work with our customers and partners
A comprehensive offer to work with our customers and partners New consumers habits Increased payment touch points Mobility, Internet, social medias Mobile, multi-lane, kiosk, desk, etc Introduction of tablets/smartphones Multichannel strategy across the full combined with mPOS for merchants payment
Slide 29: 2014 targets: Continued profitable growth
2014 targets: Continued profitable growth Early 2014, business activity seems to be holding up well and should continue to grow in most markets Like-for-like growth ≥ 10%* EBITDA margin ≥ 21% * At constant exchange rate and based on FY13 pro forma revenue at €1.301bn (excluding TransferTo disposed o
Slide 30: Ingenico, a strong platform for the future
Ingenico, a strong platform for the future A truly global player, with strong scale effect Positioned all across the value chain from payment terminals to services, including e-commerce and mobile Market leader in hardware: >20 million POS installed, accepting more than 250 payment means and connect
Slide 31: Appendix
4 Appendix Ingenico – FY 2013 results
Slide 32: 2013 Pro Forma, excluding TransferTo for the full year
2013 Pro Forma, excluding TransferTo for the full year FY 2013 FY 2013 In M€ Reported Pro forma Revenue 1301 1371 Adjusted Gross Profit 593 600 In % of revenue 45.6% 43.8% Adjusted OPEX (358) (361) In % of revenue 27.5% 26.4% EBITDA 276 279 In % of revenue 21.2% 20.3% Adjusted EBIT 235 239 In % of r
Slide 33: PPA
PPA Purchase Price Allocation at Year End and amortization By Acquisition Net Book value Amortization 31/12/2013 2013 2014 2015 2016 2017 easycash 39 (8) (8) (7) (4) (4) Sagem Monetel 16 (8) (4) (4) (4) (4) XIRING 11 (2) (2) (2) (2) (1) Ogone 45 (7) (7) (7) (7) (7) Others 18 (5) (4) (4) (1) (1) Tota