Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico Group — FY2018 Earnings Presentation
34 slides from Worldline Sa's earnings presentation, Feb 12, 2019
Slide 1: Analyst Presentation
FEBRUARY 127TH ANALYST PRESENTATION ingenico GROUP
Slide 2: Results Full Year 2018
RESULTS FULL YEAR 2018 ° . 2) Ingenico Group - FY'18 Financia | Results Ingenico GROUP
Slide 3: Key operational highlights
FY’18 RESULTS Key operational highlights Lack of execution Deployment Recovery 3 in mature markets of Android in emerging countries a EMEA - North America Russia - India - Brazil - Indonesia Brazil - Indonesia 7 Grow Accelerate Launch a direct access to SMB growth new Global Online VT merchants prof
Slide 4: Key financial highlights
€2,643m revenues 2% organic* growth €238m Free Cash Flow™ 49% FCF/EBITDA conversion * Growth rate at constant FX & scope FY’18 RESULTS Key financial highlights €488m EBITDA 18.4% EBITDA margin €32m negative forex impact €1,518m Net debt 3.1x Net debt/EBITDA €188m Net profit (Group share) vs. €253m i
Slide 5: Business Unit overview
FY’18 RESULTS Business Unit overview N€M Revenues EBITDA EBITDA margin (%) ” ” FY Hi H2 5 7 ” 7 Fy’18 FY’17PF organic organic organic Fy'18 FY'17PF Fy’18 FY’17PF Change B&A 1,305 1,428 -4% -11% +2% 277 371 21.2% 26.0% -4.8 pts Retail 1,338 = 1,280 +8% +6% +10% 210 178 15.7% 13.9% +1.8 pts IngenicoGr
Slide 6: Income Statement
IN-€M Gross Revenues Gross Profit Sales & Marketing Research & Development General & Administrative Adj. operating expenses In % of Gross revenues EBITDA In % of Gross revenues EBIT In % of Gross revenues Operating income Net finance costs Share of equity accounted investees Income tax expense Non-c
Slide 7: Free Cash Flow
FY’18 RESULTS Free Cash Flow IN -€M FY’18 FY'17 EBITDA 488 526 Working capital changes 22 (63) Capex (117) (87) ; Other income & expenses (47) (32) Interests paid (17) (8) Tax paid (90) (97) . Free Cash Flow 238 239 Conversion rate 48.9% 45.5% . Adjusted FCF* 285 269 Conversion rate 58.5% 51.1% * Fr
Slide 8: Net Debt evolution
FY’18 RESULTS Net Debt evolution IN €M Fy’18 FY'17 Net debt as of Jan. 1 1,471 126 Free Cash Flow 238 239 Dividend paid (55) (40) Share buybacks (87) - Acquisitions net of disposals et (1,248) Others (14) (296)* Change in net debt (47) (1,345) Net debt 1,518 1,471 as of December 31 * Of which €269m
Slide 9: Main road blockers to our initial guidance
FY’18 RESULTS Main road blockers to our initial guidance 570 @ (25) — — (48) P| | FY'18 guidance FX impact Iran sanctions Commercial miss Product miss Costs savings FY'18 EBITDA (Top of the €545- reported 570m range) €25m impact related to exceptional factor Commercial miss impacted by lack of execu
Slide 10: 2017-2018 revenue organic growth context
FY’18 RESULTS 2017-2018 revenue organic growth context - B&A organic CAGR of 2% over the two years reflecting a stabilization B&A + 4% organic decline in 2018 vs 8% organic growth 2017 * 2017 impacted by PCI renewals and Indian demonetization + 8% organic growth in 2018 vs 5% organic growth 2017 Ret
Slide 11: Guidance 2019
GUIDANCE 2019 ° . ti) Ingenico Group - FY'18 Financia | Results Ingenico GROUP
Slide 12: Drive Group repositioning and acceleration
FY’19 GUIDANCE Drive Group repositioning and acceleration New management & Operating structure * Corporate governance evolution with separation of Chairman & CEO functions * New seasoned international management team demonstrating our talents attractiveness Michel-Alain Proch Paula Felstead Nick San
Slide 13: 2019 Guidance
FY’19 GUIDANCE Ingenico Group 4-6% organic growth 2019 EBITDA > €550m* c.50% FCF conversion Banks & Acquirers Retail Flat organic growth Double digit organic growth c.€280m EBITDA > €270m™ EBITDA Fit For Growth Plan €35m net savings and €15m investments factored into the guidance . . “Includes €5m n
Slide 14: Fit For Growth Plan overview
FY’19 GUIDANCE Fit For Growth Plan overview B&A revival BU actions €15m savings €5m investments Retail accelerated growth €10m investments €35m net savings & €15m investments G&A Global Operational actions efficiency streamlining €20m savings ° . ts) Ingenico Group - FY'18 Financial Results Ingenico
Slide 15: Global actions
FY’19 GUIDANCE - FIT FOR GROWTH PLAN Global actions G&A streamlining and operational efficiency Improve agility Organization Procurement & IT Data center simplification optimization consolidation eee €20m net savings €15m B&A / €5m Retail ° . (1s ) Ingenico Group - FY'18 Financial Results Ingenico G
Slide 16: Retail: Focus on Growth
is ) Ingenico Group - FY'18 Financial Results RETAIL FOCUS ON GROWTH ingenico GROUP
Slide 17: Track record in transformation
FY’19 RETAIL Track record in transformation Revenues x2* Rejuvenated 2 strategic A a1 management Profitability accelerators 8 (average 12-years in payment) improvement Proven Full payment Agile organization blueprint value chain designed for growth . . (17) Ingenico Group - FY'18 Financial Results *
Slide 18: Retail: Focus on growth
FY’19 RETAIL Focus on growth Expand SMB repeatable model Strategic initiatives Global Online verticalization Accelerate our growth Accelerate eCom in Asia and Latam Expand advanced acquiring position Intensify customer focus New operating model Investments prioritization & verticalization Growth Cha
Slide 19: BSPayone and Paymark focus
FY’19 RETAIL BSPayone and Paymark focus |BS /PAYONE Paymark * Reach significant position across all * Complement our footprint in the Pacific segments in DACH region * Accelerate Ingenico’s direct access to * Deploy a coherent direct to merchant merchants strategy strategy * Global reach improvement
Slide 20: Retail EBITDA deployment
FY’19 RETAIL EBITDA deployment +45 > 270 (10) +5 210 i |_| Le — > €20m net , from FX and Embedded growth ; 2018 EBITDA FX impact Embedded growth Growth investments Global actions BSPayone+Paymark FY‘'19 EBITDA Est. EBITDA building blocks: + EBITDA expansion >10% from revenues growth + €10m impact fr
Slide 21: Fit to Compete
21 ) Ingenico Group - FY'18 Financial Results FIT TO COMPETE ingenico
Slide 22: B&A Lessons learned
FY’19 B&A Lessons learned Market factors Adapt our industrial Renewal phases more spread out snene and Android ramp-up capabilities Structural factors Focus our Go to Market Acquirers concentration and new players organization opportunities Internal factors Redesign to leverage our Decentralized org
Slide 23: B&A: We are in motion
FY’19 B&A We are in motion Product range simplification Industrial redesign Increase efficiency Android international deployment R&D and manufacturing optimization Client-readiness organization Commercial redesign Client centric and solutions oriented Build performance-driven culture Leverage our br
Slide 24: B&A EBITDA deployment
FY’19 B&A EBITDA deployment a ~ c.280 277 i \ +15 , H | | 15 H H | c.€20m net \. from FX and business mix / 2018 EBITDA FX impact Mix related Android investments B&A revival Global actions FY'19 EBITDA Est. EBITDA building blocks: - EBITDA impacted by the geographical with mature markets providing a
Slide 25: Focus on Cash 2019
FOCUS ON CASH 2019 ° . 2s ) Ingenico Group - FY'18 Financia | Results Ingenico GROUP
Slide 26: Financial discipline: Focus on cash
FY’19 FINANCIAL DISCIPLINE Focus on cash > 60 5 (20) | (10) €.275 Po _ 238 2018 FCF EBITDA OIE Capex Wc Others 2019E FCF FCF building blocks: + > €60m impact from activities * Capex to continue to grow to accelerate our growth going forward (4-5% of revenues in 2019) + Strict working capital managem
Slide 27: Deliver sales performance to merchants
Deliver sales performance to merchants ° . 27 ) Ingenico Group - FY'18 Financial Results Ingenico GROUP
Slide 28: Conclusion
2018 2019 Going forward 22 ) Ingenico Group - FY'18 Financial Results INGENICO Conclusion A challenging year Mainly for our B&A activities Repositioning and acceleration Focused and committed on execution Capital Market Day on April 24th, 2019 Ingenico strategic plan ingenico GROUP
Slide 29: Appendices
APPENDICES ° . 22 ) Ingenico Group - FY'18 Financial Results Ingenico GROUP
Slide 30: Quarterly reported figures
FY’18 Quarterly reported figures IN €M Q1'18 Q2’18 Q3'18 Q4'18 FY’18 Retail 302 328 345 364 1,339 SMBs 88 98 103 105 393 Global Online 119 126 136 141 521 Enterprise 95 105 106 118 424 Banks & Acquirers 280 319 342 364 1,305 EMEA 114 128 127 125 495 Latin America 34 38 58 69 199 North America 30 46
Slide 31: Quarterly new reporting figures
Quarterly new reporting figures FY’18 IN €M Q1'18 Q2'18 Q3'18 Q4'18 FY’18 Retail 302 328 345 364 1,339 SMBs 70 78 82 84 314 Global Online 117 124 134 139 514 Enterprise 67 76 75 91 309 Payone 48 51 54 50 202 Banks & Acquirers 280 319 342 364 1,305 EMEA 114 128 127 125 495 Latin America 34 38 58 69 1
Slide 32: PPA at year end and amortization
FY’18 PPA at year end and amortization By Acquisition 2018 2019 2020 2021 2022 Bambora (49) (48) (48) (48) (48) Easycash (4) (4) (3) (3) Ogone (4) (4) (4) (3) (3) lecisa (2) (2) (2) (2) (1) GlobalCollect (24) (24) (24) (24) (24) Nera (2) (2) (2) (2) (2) Techprocess (1) (1) (1) (1) (1) Others (3) (1)
Slide 33: 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 34: Investor Relations contacts
vy Laurent MARIE, VP Investor Relations (T): +33 1 58 01 92 98 (M): +33 7 84 50 18 90 vy Kevin WORINGER, Investor Relations Manager (T): +33 1 58 01 85 09 (M): +33 6 02 18 59 08 ° . ts) Ingenico Group - FY'18 Financial Results | ngen Ico GROUP