Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico — FY2010 Earnings Presentation
32 slides from Worldline Sa's earnings presentation, Feb 28, 2011
Slide 1: 2010 Earnings Results
2010 Earnings Results February 28 2011
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: Contents
Contents Review of activities 2010 Ph. Lazare Financial results 2010 P-A. Vacheron Outlook Ph. Lazare FY 2010 Results • February 28, 2011• page 3
Slide 4: Review of activities 2010
Review of activities 2010 Philippe Lazare
Slide 5: 2010: an outstanding year for Ingenico
2010: an outstanding year for Ingenico Strong topline growth – 2010 revenue: €907.0m – Year-on year: +29% – Like-for-like: +10% Demonstrated profitable growth and operating leverage – Adjusted current operating income*: 13.9% (+250 basis points) – EBITDA margin at 18.3% – Doubled net operating cash
Slide 6: Strong topline growth
Strong topline growth Revenue in million euros Year-on year: +29% Contribution of acquired companies: €17.9m Positive FX impact: +€50.7m mostly driven +29% by stronger Real (Brazil), Australian and Canadian dollars +10% Like-for-like: +10% +9.4%: growth derived from terminals (hardware, services & m
Slide 7: 15% Revenue growth in Q4'10
15% Revenue growth in Q4’10 Q4’10 revenue contribution by region Q4’10 revenue performance by region at constant FX rates Asia Pacific +15% Group 20% Europe SEPA 46% Europe SEPA +12% Latin Asia Pacific +57% Total: America €280.2m 17% Latin America +12% North America -4% North America 10% EEMEA +3% E
Slide 8: 2010 strong revenue increase led by Asia Pacific, Europe & Latin America
2010 strong revenue increase led by Asia Pacific, Europe & Latin America 2010 revenue contribution by region 2010 revenue performance by region at constant FX rates Latin Group +10% Europe SEPA America 48% 18% Europe SEPA +15% Total: Latin America +8% Asia Pacific €907.0m 15% Asia Pacific +41% North
Slide 9: Simultaneously significantly fueling profitability
Simultaneously significantly fueling profitability Demonstrated operating leverage – Adjusted current operating income: 13.9% (+250 basis points) EBITDA margin of 18.3%, achieved 3 years ahead of 2013 strategic plan Doubled net operating cash flow at €158.9m – Revenue and margins fueling operational
Slide 10: Various initiatives taken to fuel and support the strategy
Various initiatives taken to fuel and support the strategy Beyond easycash, €58m invested in Organic initiatives 2010 to acquire all assets supporting 2013 targets Sustained R&D •€71m vs €63m in 2009 to preserve efforts our edge in HW and solutions Ingenico Prepaid Services France New skills to Inge
Slide 11: Towards a new company profile with increased direct access to merchants
Towards a new company profile with increased direct access to merchants 3 Value-added 2 Transactions services Management 1 POS terminals ITS On Line payments - Remote Mobile estate management Deliver service directly to merchants FY 2010 Results • February 28, 2011• page 11
Slide 12: 2010: paving ground for an acceleration of 2013 strategic plan: POS leadership
2010: paving ground for an acceleration of 2013 strategic plan 1- Reinforce leadership on POS through differentiation 1 POS Widely Renewed range of POS terminals in 20 months – Full PCIPED 2.0 – Telium2 – PIN Pad, signature capture with first significant commercial success User-friendly interface –
Slide 13: Provide payment solutions on a global scale
2010: paving ground for an acceleration of 2010-2013 strategic plan 2- Provide payment solutions on a global scale 2 Leveraging assets to build a differentiated approach for merchants Transactions AXIS & e-payment easycash Korvac Providing solutions on a multi-country scale – First customers with Ax
Slide 14: Differentiate and penetrate vertical markets with VAS
2010: paving ground for an acceleration of 2010-2013 strategic plan 3-Differentiate and penetrate vertical markets with VAS 3 Acquired all assets to fuel growth and achieve 2013 target VAS – Increased value-added services (“VAS”) bricks beyond easycash loyalty solutions – Access to distribution netw
Slide 15: Financial results 2010
Financial results 2010 Pierre-Antoine Vacheron
Slide 16: Basis of presentation for 2010 financials
Basis of presentation for 2010 financials Accounting treatment of acquisitions in accordance with IFRS 3 & IFRS 3R has several impacts on Ingenico's financial statements For better appreciation of the Group's performance – Operating performance and income statements in this presentation are prepared
Slide 17: Significant rise in profitability emphasing operating leverage
Significant rise in profitability emphasing operating leverage In €m 2009 2009 2010 published pro forma published Revenue 700.7 761.4 907.0 Adj. Gross Margin 270.9 296.1 366.1 In % of revenue 38.7% 38.9% 40.4% Adj. Current operating income 80.1 89.3 125.7 in % of revenue 11.4% 11.7% 13.9% EBITDA 105
Slide 18: Terminals: gross margin boosted by hardware
Terminals: gross margin boosted by hardware Gross margin in Hardware sales Terminals reached 44% (+400bp) (Hardware & Maintenance) – Increased contribution of Telium2 -based terminals with higher margin 2010 / – Continuous shift portable/ In €m 2010 2009 PF countertop Revenue 789.6 +16.9% – Improved
Slide 19: Transactions: robust fundamentals
Transactions: robust fundamentals Transactions 2010 / Performance in all transactions In €m 2010 2009 PF business segments in line with expectations Revenue 117.4 +16.4% Fastest growth in credit acquiring & Transfer To activities 44.8 – Revenue representing 8% of FY10 Gross Margin revenue against 2%
Slide 20: Operating expenses: under control
Operating expenses: under control 2009 2009 2010 in €m adj. published Pro forma Sales & Marketing 47.5 52.7 69.2 Research & Development 64.0 62.7 71.4 General & Administrative 79.3 91.4 99.8 TOTAL operating expenses 190.8 206.8 240.4 as % of revenue 27.2% 27.2% 26.5% Sales & Marketing costs increase
Slide 21: Net income increased by 47%
Net income increased by 47% In €m 2009 2010 Adj. Current Operating Income 80.1 125.7 in % of revenue 11.4% 13.9% Purchase Price Allocation (19.3) (28.8) Current Operating Income 60.8 96.9 Other operating expenses (13.4) (23.1) Operating profit 47.4 73.8 Financial result & equity method (2.5) (11.5)
Slide 22: Achieved significant increase of EBITDA
Achieved significant increase of EBITDA In €m 2009 2010 Adj. Current Operating Income 80.1 125.7 +57% in % of revenue 11.4% 13.9% +250bp Amortization and provision for liabilities +18.6 +35.0 Share-based payment +6.7 +5.3 EBITDA 105.4 165.9 +57% In % of revenue 15.0% 18.3% +330 bp FY 2010 Results •
Slide 23: Strong cash conversion driven by operating leverage and tight working capital
Strong cash conversion driven by operating leverage and tight management of working capital In €m 2009 2010 Net debt as of January 1 (77.4) 144.4 EBITDA 105.4 165.9 -Continuous focus on inventories Working capital changes (1.8) 16.2 &trade receivables - improvement of trade Capex (23.0) (23.2) payab
Slide 24: Reinforced financial flexibility
Reinforced financial flexibility In €m 2009 2010 Net debt as of December 31 144.4 109.1 Net debt / Equity 0.3x 0.2x Net debt / EBITDA 1.4x 0.7x FY 2010 Results • February 28, 2011• page 24
Slide 25: Simplified Balance Sheet
Simplified Balance Sheet Dec 31 Dec 31 In €m 2009 2010 Goodwill 414.2 466.3 Tangible & intangible Assets 199.6 188.1 Other non current assets 48.4 69.0 Current assets 409.6 540.0 Including trade & related receivables 225.3 254.1 Total assets 1071.8 1263.4 Equity 493.1 545.6 Borrowings & long term de
Slide 26: Increasing dividend by 17% in 2010
Increasing dividend by 17% in 2010 2009 2010 Change Net income (in €m) 26.8 39.6 +48% Average weighted number of 46.6 48.9 shares (in million) Net income per share (in €) 0.58 0.81 +40% Dividend per share (in €) 0.30 0.35 +17% Dividend of €0.35 per share, payable in cash or in share will be proposed
Slide 27: 2010 financial performance at a glance
2010 financial performance at a glance Market trends are positive and potentially higher than long term historical average We are well-positioned to leverage our geographies Telium2 is delivering as expected – Improvement of Terminals cost structure – Telium2 will be deployed on all regions by the e
Slide 28: Outlook
Outlook Philippe Lazare
Slide 29: Management priorities for 2011: delivering our 2013 strategic plan
Management priorities for 2011: delivering our 2013 strategic plan Terminals: maintain product leadership – iPA 280 (PayPDA) is taking off – Mobile POS (iWL) is clearly ahead of competition – Unattended range to capture market potential of vending machines Transactions: enlarged offering and enhance
Slide 30: 2011 outlook: continuing profitable growth
2011 outlook: continuing profitable growth 2011 In €m 2010 at constant FX & perimeter guidance Terminals growth in line with market historical trends (+3/+5%) Revenue 907 965-985 Transactions: +12/+15%, above market trends Adj. profit from ordinary Robust business model on Terminals 13.9% ≥13.9% and
Slide 31: 2011 management priorities: capturing payment market opportunities
2011 management priorities: capturing payment market opportunities beyond 2013 strategic plan Ready to provide full range of payment and VAS solutions to merchants, in liaison with banks Capturing value in dematerialized services with POS as an entry point Ready to seize further acquisition opportun
Slide 32: Ingenico investment case
Ingenico investment case Key focused strategy Technological leadership Well positioned in a growing market Continuous shift towards e-payments Structural changes in the payment ecosystem Leveraging key assets to expand margins Track record of profitable growth & financial strength FY 2010 Results •