Hightech Payment Systems Sa · CSEMA:HPS

Hightech Payment Systems Sa — HPS — FY2011 Earnings Presentation

31 slides from Hightech Payment Systems Sa's earnings presentation, Mar 27, 2012

  1. Slide 1: HPS 2011 Annual Results

    ì HPS 2011 ANNUAL RESULTS March 27th

  2. Slide 2: 2011 Highlights

    1 2 2011 Highlights 2011 ANNUAL RESULTS

  3. Slide 3: Main Achievements

    Main Achievements 1 • Mekong Development Bank chooses PowerCARD in Vietnam – Management of the en7re electronic payment ac7vi7es – New func7onali7es such as Biometric Cardholder Authen7ca7on – MDB’s strategic partnership with Fullerton Financial Holdings increased its chartered capital to USD 193 bi

  4. Slide 4: Main Achievements

    Main Achievements 1 • INWI selected PowerCARD – Global telecommunica7ons and Internet operator, leader in mobile telephony and high-­‐speed mobile internet in Morocco – PowerCARD func7onali7es to simplify and expand payment channels – Implementa7on of the first batch of the project relevant to top-­‐

  5. Slide 5: Main Achievements

    Main Achievements 1 • AGIL project for MICROPOLE Group – Partnership between ACPQUALIFE and MICROPOLE Group. – Developing evolu7ons to AGIL applica7on (Applica7on de Ges7on Informa7sée des Logements) for the French Ministry of Home Affairs • ACPQualife signs with les Autoroutes du Sud de la France –

  6. Slide 6: Main Achievements

    Main Achievements 1 • Successful 1st milestone of the project Cedicam in France – Processor of 42 acquiring financial ins7tu7ons in 5 countries – 47.19 Million cards and 300,000 merchants – 1.44 Billion card authoriza7ons – Processing of 2 million transac7ons per hour with an access of 3500 simultane

  7. Slide 7: Main Achievements

    Main Achievements 1 • PowerCARD Live at Alinma Bank in Saudi Arabia – The second largest Bank in Saudi Arabia in terms of assets – Alinma Bank is the HPS’ third client in Saudi Arabia, following Bank Muscat and Alrajhi Bank – Implementa7on of the Instant issuance for credit cards module for Bank Al

  8. Slide 8: Main Achievements

    Main Achievements 1 " Zenith Bank Go-­‐Live in Nigeria – Zenith Bank, a leading bank in Nigeria and Africa – Credit, debit and prepaid cards management – Management of the acquiring ac7vity " HPS consolidates its posiYon within Islamic Banks in Qatar and the Emirates – Successful Go-­‐Live for Al Hi

  9. Slide 9: Joint Ventures Activities

    Joint Ventures Ac7vi7es 1 ICPS : + 74% – ISO 27001 Cer7fica7on – PCI Data Security Standards Version 2.0 Cer7fica7on – Credit card issuing for Bramer Bank VSDC – Debit card issuing for MCB Madagascar – MasterCard credit and debit card Issuing and ATM management for ABC Banking. GPS : + 26% – BisB – Ca

  10. Slide 10: Main Worldwide Events

    Main Worldwide Events or" yS Sa European Card Acquiring 22-24 February 2011, Berlin £7) | Baeginny Pe CARTES AFRIQUE ay 2nT1 ad TAC? ANNUAL MEETING & EXPO = y >>) Cards C/ Middle East. 2001 16th annual i] wv Cards (/ Asia 2011 AITEC Banking & _— ciab a Mobile Money West Africa i - (7 Sands :33 MMT A

  11. Slide 11: Worldwide Presence

    Worldwide Presence 1 +320 PowerCARD Users +70 Countries 02 Joint Venture 05 Processing Centers 05 +100 Offices PowerCARD live Centers 06 Na7onal Switchs

  12. Slide 12: 2011 Financial Analysis

    2 2 2011 FINANCIAL Analysis 2011 ANNUAL RESULTS

  13. Slide 13: Scope of Consolidation

    Scope of Consolida7on 2 HPS’ development strategy is based in part on creation of new subsidiaries, strategic acquisitions and creation of Joint Ventures. Subsidiaries JV HPS Dubai 100% 25 % GPS Branch Bahrain ACPQualife 100% HPS Subsidiary Casablanca, Head Office HPS Europe 100% 20 % ICPS Subsidiary

  14. Slide 14: Key Figures

    Key Figures 2 Amounts in ‘000 MAD 31.12.2011 31.12 2010 (*) Opera7ng Revenues 250.143 256.479 Opera7ng Expenses 261.247 237.248 OperaYng Earnings -­‐ 11.104 19.231 Financial Earnings -­‐ 7.087 -­‐ 2.459 Non-­‐current Earnings -­‐ 26.037 10.641 Net Earnings of consolidated companies -­‐ 44.554 25.369

  15. Slide 15: Operating Revenues

    OperaYng Revenues 2 ì Operating Revenues : 250 MDH – decrease of 2,5%. " PowerCARD project revenues : 53 MDH – decrease of 37% – HPS has targeted strategic projects by extending its offer to management of large ins7tu7ons where decision making has a longer 7me frame. This 7me frame, further stressed

  16. Slide 16: Operating Revenues

    OperaYng Revenues 2 ì Operating Revenues : 250 MDH – decrease of 2,5%. " Maintenance Revenues : 54 MDH – increasing by 20% – Increase of 20% between 2010 and 2011. – Expected increase of 47% for the next 5 years thanks to exis7ng customers. +47% 79 MDH +27% 54 MDH 42 MDH 2009 2010 2011 2012 2013 20

  17. Slide 17: Operating Revenues

    OperaYng Revenues 2 ì Operating Revenues : 250 MDH – decrease of 2,5%. " ACPQualife acYviYes : 64 MDH – increasing by 25% – Good performance despite the crisis. – Realiza7ons on-­‐line with the ini7al business plan: 95 % of the objec7ves reached. ì Global evolution of the Activity in 2011 256 MDH

  18. Slide 18: Regional Breakdown

    Regional Breakdown 2 08% 04% 46% 11% 20% 11%

  19. Slide 19: Payment Activity Breakdown

    Payment AcYvity Breakdown 2 12% 06% 25% 15% 27% 15%

  20. Slide 20: Breakdown by type of Activity

    Breakdown by type of Ac7vity 2 ACP Qualife 27% New Projects 24% ‘‘Exis&ng customer reten&on and sa&sfac&on is an important factor driving HPS business development strategy. Others 5% The quick evolu&on of technology and Maintenance 24% regulatory standards New Requirements 20% requires that our clie

  21. Slide 21: Operating Expenses

    OperaYng Expenses 2 Taxes 3% Others 3% Amor7za7ons & allowances 7% External expenses 21% Salaries 53% supplies consumed 13% – Increase of salaries by 11% due to strengthening of opera7ng staff in 2010 (+14%) and in 2011 (+4%). – Increase of supplies consumed by 20% due to subcontrac7ng strategy. The

  22. Slide 22: Non-current Expenses

    Non-­‐current Expenses 2 – Decision to review the license revenue recogni7on for PowerCARD projects. – Adjustment of 26 MDH, amount of a license revenue recorded in 2010. This amount has been accounted as a non-­‐current expense for 2011. The revenue will be recognized as project advances. 11 MDH ha

  23. Slide 23: R&D Activities

    R&D Ac7vi7es 2 At the center of its strategy, HPS continuously reinvests over 10% of its revenues in R&D • More than 13.000 man-­‐days devoted to R&D for 2011 • 26 millions MAD costs mainly consisYng of direct costs of dedicated staff -­‐ increase of 30% • Main avenues of development – PowerCARD V3.

  24. Slide 24: Cash breakdown

    Cash breakdown 2 ì Net Cash flow of -­‐4,3 MDH for 2011 – Opera7ng Cash Flow of 8,4 MDH, increasing by 38% : Working Capital decreasing by 43 MDH (-­‐20%). – Cash flows related to financing transac7ons and from financial transac7ons : -­‐12,6 MDH. Investments, Refund of the debt and Dividends paid to s

  25. Slide 25: Activity Perspectives

    3 2 ACTIVITY PerspecYves 2011 ANNUAL RESULTS

  26. Slide 26: Forecast of payment industry

    Forecast of payment industry 3

  27. Slide 27: Industry Perspectives

    Industry Perspec7ves 3 As a result of the looming financial crisis, changes in the industry are expected to con7nue with important focus aimed at innova7on, the development of new business models and more dependency on risk management facili7es. Industry Related OpportuniYes – The mergers and acquisi

  28. Slide 28: HPS Positioning

    HPS Posi7oning 3 Recurring Revenue ConsolidaYon – Large client base (more than 100 sites). – Con7nuous need to respond and cater to evolving technical regulatory requirements in the industry. HPS OpportuniYes – Replacing obsolete and costly electronic payment plahorms. – Strong HPS visibility remain

  29. Slide 29: 2012 Objectives

    2012 Objec7ves 3 RecogniYon of License Revenue – With more important and bigger customers come longer and more sophis7cated projects. The nature of these projects are more concerned with a global solu7on that covers all business aspects rather than smaller more targeted business needs. – Star7ng 201

  30. Slide 30: 2012 Objectives

    2012 Objec7ves 3 Key Figures of 2012 – Expected Opera7ng Revenues : 280 MDH +12%. – Current PowerCARD Projects : 48 MDH. – Maintenance : 62 MDH – Recurrent Revenues (Payment Ac7vi7es) : 56 MDH – Exis7ng customers of ACPQualife : 56 MDH – New PowerCARD projects PWC : 23 MDH – New customers ACPQualife

  31. Slide 31: Thank You

    THANK YOU e @ @

HPS — FY2011 Earnings Presentation on 6ix