Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico Group — H1 2016 Earnings Presentation
25 slides from Worldline Sa's earnings presentation, Jul 26, 2016
Slide 1: H1 2016 earning results
H1 2016 earning results JULY 26TH , 2016
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 2016
agenda H1 2016 Highlights and strategic update Philippe Lazare, Chairman and CEO Performance and financial results Nathalie Lomon, EVP Finance Conclusion Philippe Lazare, Chairman and CEO
Slide 4: Highlights & Update on Strategy and Operations
Highlights & Update on Strategy and Operations H1 2016
Slide 5: Continued increase in business performance
H1’16 / continued increase in business performance • Strong revenue growth : €1,133m • Like-for-like growth: +12% • Reported growth: +7% • High profitability even with continued investments / EBITDA at 21.5% • Net profit attributable to Ingenico Group shareholders up to €122m • Key Highlights • Soli
Slide 6: Operational update / Tetra
Operational update / Tetra • Tetra deployment across regions APAC & Middle-East Latin America Europe & Africa - 1st deal in - Introduction - Large Brazil in France, shipments - Ready to Italy, in Australia deploy in Switzerland Mexico and UK • MarketPlace update • +130 apps ready or being developed
Slide 7: Operational update / ePayments
Operational update / ePayments • Technological platforms upgrade: Best in class services in the industry • Strategic progress: Increasing flows with strategic clients • IngenicoConnect: Fully deployed on cross-border platform • Important contract with Alipay • Offer: Provide full-service payment pro
Slide 8: Operational update / cross-channel
Operational update / cross-channel All functionnalities Business case: Deployment in Selecta France available progress Unified portal and 4 contracts signed in reporting Contactless terminals Q2 on vending machines Token CRM Refund by web +10 deals in the Refund by web pipeline Unified back office S
Slide 9: Strategic update / acquisitions
Strategic update / acquisitions • Acquisition of 70% of Lyudia / Distribution partner in Japan • Provides SW development, certifications, logistics, maintenance and support in Japan • Gives us the foundation to be well positioned to capture Japan EMV migration • Acquisition of Think & Go NFC / Conne
Slide 10: Performance and financial results
Performance and financial results H1 2016
Slide 11: Basis of presentation for H1'16 financials
Basis of presentation for H1’16 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. excluding the impact of PPA amortization (IFRS3) • Foreign exchange gains and losses (including
Slide 12: Strong and sustained growth
H1’16 / strong and sustained growth Revenue (in €M) 1,133 Year-on year: +7% 1,058 • FX impact: -€50M Like-for-like: +12% By geography • Solid growth across most regions • +15% like-for-like excluding Brazil 703 By business segment 656 • Terminals / +15% • Payment Services / +5% including e-Payments:
Slide 13: Group transformation in progress
H1’16 / group transformation in progress H1 2016 Revenue €1,133M 30% Payment Services Including ePayments : 20% of Group revenue 70% Terminals 13 Ingenico Group – H1'16 Results
Slide 14: Revenue by region
H1’16 / revenue by region APAC & Middle East 23% +32%* Europe & 36% Africa +15%* €1,133M 8% Latin America +12%* -14%* 13% 20% North America +14%* ePayments +1%* *Growth rate at constant FX & scope 14 Ingenico Group – H1'16 Results
Slide 15: Q2'16 organic growth / performance per region
Q2’16 organic growth / performance per region North America (+11%*) Europe & Africa (+13%*) APAC & Middle-East (+29%*) - EMV migration - Replacement - Market shares cycle in nordic - Leading position gains among US countries in China large retailers - Market share - Buoyant market and new gains in E
Slide 16: Consolidated income statement
H1’16 / consolidated income statement H1’16 Changes In €M H1’15 vs. H1’15 Revenue 1,133 1,058 +12%* Gross Profit 490 474 +3% In % of revenue 43.2% 44.8% (160)bpts EBITDA 244 249 (2)% In % of revenue 21.5% 23.6% (210)bpts EBIT 206 221 (7)% In % of revenue 18.1% 20.9% (280)bpts Net profit, attributabl
Slide 17: Gross profit by activity
H1’16 / gross profit by activity in €M Terminals Payment Services H1’16 Revenue 788 345 1,133 Like-for-like growth +15% +5% +12% Adj. Gross profit 368 122 490 In % of revenue 46.7% 35.3% 43.2% High margin despite spendings on ePayments platforms, products launch and client mix 17 Ingenico Group – H1
Slide 18: Operating expenses
H1’16 / operating expenses in €M H1’16 H1’15 Research & Development 87 69 Sales & Marketing 84 82 General & Administrative 113 102 Adj. Operating expenses 284 253 In % of revenue 25.1% 23.9% High margin despite spendings on ePayments platforms, products launch and client mix 18 Ingenico Group – H1'1
Slide 19: Net profit
H1’16 / net profit In €M H1’16 H1’15 Adj. EBIT 206 221 Purchase Price Allocation (21) (25) Other income & expenses (0) (3) Financial result & Equity (1) (6) Method Income before tax 183 188 Income tax (56) (64) Income tax rate 30.7% 34.2% Net profit 127 124 Net profit, attributable to 122 122 Ingeni
Slide 20: Free Cash Flow
H1’16 / Free Cash Flow In €M H1’16 H1’15 EBITDA 244 249 Working capital changes (69) (81) Capex (27) (27) Other income & expenses (2) (1) Interests paid (7) (8) Tax paid (75) (73) 64 59 WCR limited despite revenue growth Strong Free Cash Flow generation 20 Ingenico Group – H1'16 Results
Slide 21: Robust financial structure
H1’16 / robust financial structure In €M H1’ 16 H1’15 Net debt Net debt as of Jan. 1 252 764 Free Cash Flow 64 59 441 414 Dividend paid (35) (31) OCEANE - 184 1.6 251 252 232 Acquisitions net of disposals 4 94 0.8 0.9 Others (13) 18 0.6 0.5 0.5 0.3 0.3 Change in net debt (20) (324) 0.2 0.15 Net debt
Slide 22: Conclusion
Conclusion
Slide 23: Outlook / on track to deliver 2016 objectives
Outlook / on track to deliver 2016 objectives Organic growth EBITDA margin ≥10% c. 21 % 23 Ingenico Group – H1'16 Results
Slide 24: 2020 growth plan
2020 growth plan / committed to deliver long- term growth Revenue objective >€4bn* EBITDA margin Double-digit 22-23% organic growth FCF/Ebitda conversion ratio Pay-out ratio 45% 35% * At 2015 exchange rate and including targeted acquisitions (c. €500M) 24 Ingenico Group – H1'16 Results
Slide 25: Investor Relations
INVESTOR RELATIONS Stéphanie CONSTAND, VP Investor Relations (T): +33 1 58 01 85 68 (M): +33 6 08 91 53 60 Caroline ALAMY, Investor Relations Manager (T): +33 1 58 01 85 09 (M): +33 6 30 09 10 15