Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico — H1 2008 Earnings Presentation
27 slides from Worldline Sa's earnings presentation, 2008
Slide 1: H1 2008 results: Actions and Performance
H1 2008 results Actions and Performance
Slide 2: Contents
Contents Review of activities H1 2008 P. Lazare Financial results H1 2008 C. Malher Outlook and Conclusions P. Lazare Questions / Answers 2 H1 2008 Results
Slide 3: Review of activities H1 2008
1 Review of activities H1 2008 Philippe Lazare 3 H1 2008 Results •
Slide 4: Ingenico worldwide
Ingenico worldwide Subsidiaries Offices 2500 employees 38 offices and subsidiaries Commercial presence in over 125 countries 15 million active payment terminals (over 1/3 of installed base) 4 H1 2008 Results •
Slide 5: Highlights of H1 2008
Highlights of H1 2008 Very good financial performances with a continued improvement in operating margin A stronger international position with a promising acquisition in China, positioning Ingenico as leader in the region, major commercial wins and market share gains Integration of Sagem Monetel wel
Slide 6: A robust performance in H1 2008
A robust performance in H1 2008 First‐half revenue up 24% at constant exchange rates and 10% like‐ for‐like and at constant exchange rates Significant improvement in gross margin to 37.2%, versus 34.5% in the first half of 2007* Sharp growth in EBIT, up 41.3% to €33.5m, with a margin of 10.7% in the
Slide 7: Growth in revenue: +24% (at constant exchange rates)
Growth in revenue: + 24% (at constant exchange rates) Geographical breakdown of H1 2008 revenue*: €313.8 million Northern Europe Asia/Asia €49.9m Pacific €22.9m % change at % change Southern constant proforma** South America exchange Europe rates €50.8m €80.5m Asia/Asia Pacific 19% 6% Northern Europ
Slide 8: Integration of Sagem well on track
Integration of Sagem well on track Generation of significant synergies over three years, visible from H2 2008 Reduction in product costs Pooling know‐how in R&D Combining commercial networks Harmonizing product ranges First product FROM a new range at end 2008 8 H1 2008 Results •
Slide 9: Several in-house workshops to reinforce our leadership
Several in‐house workshops to reinforce our leadership Workshop 1: Develop an innovative, comprehensive range of payment terminals Workshop 2: Develop dedicated major services and solutions for global accounts Workshop 3: Optimise quality and customer support Workshop 4: Improve visibility and maxim
Slide 10: Financial results H1 2008
2 Financial results H1 2008 Cyril Malher 10 H1 2008 Results •
Slide 11: Basis of presentation of financial information for H1 2008 results
Basis of presentation of financial information for H1 2008 results The accounting treatment of acquisitions and, in first place particular, Sagem Monetel, in accordance with IFRS 3 has a substantial impact on Ingenico's financial statements For better appreciation of the Group's performance, some da
Slide 12: High profitability
High profitability H1 2007 H1 2008 €m % change (1) adjusted adjusted Sales 260.1 313.8 +21% Cost of sales (170.3) (196.9) Gross margin 89.8 116.9 +30% 34.5% 37.2% +2.7bp R&D (19.3) (26.5) Sales & Marketing (17.6) (21.0) G&A (29.3) (35.9) Operating profit from 23.7 33.5 +41% ordinary activities % of
Slide 13: Ebitda also up strongly
Ebitda also up strongly 2007 2008 Sales 260.1 313.8 Operating profit from ordinary activities adjusted 23.7 33.5 Depreciation and amortization * 10.5 12.4 Share‐based payments 3.1 4.4 37.3 50.3 EBITDA adjusted 14.3% 16% * Depreciation and amortization impacting operating profit from ordinary activit
Slide 14: Allocation of purchase price of Sagem Monetel, MoneyLine, Planet
Information concerning allocation of purchase price of Sagem Monetel, MoneyLine, Planet Depreciation Depreciation Nature Gross amounts period H1 2008 Portfolio of customers 36.6 10 years 0.9 Hardware technology 11.6 3 years 1.0 Software technology 5.8 3 years 0.5 Hardware & Software technologies in
Slide 15: 2007/2008 proforma
2007/2008 proforma Reminder: The proforma data for the first half of 2008 established on the basis of instructions no. 2005‐11 and no. 2007‐05 of the AMF, ruling 809/2004 of the European Commission and in accordance with the recommendations of the CESR are shown in appendix 18 of the published accou
Slide 16: Trends in gross margin
Trends in gross margin Management data H1 2007 H1 2008 Sales of terminals 207.5 252.4 Sagem Integration (1.8%) Gross margin terminals 98.2 117.3 Other savings 1% % of sales 47.3% 46.5% Sales software & services 52.6 61.4 Quality & mix improvement Gross margin software & services 13.8 23.1 % of sales
Slide 17: Income statement under IFRS for H1 2008
Income statement under IFRS for H1 2008 H1 2007 H1 2008 €m statutory statutory Sales 260.1 313.8 Cost of sales (170.3) (202.5) Gross margin 89.8 111.3 34.5% 35.5% R&D (19.3) (28.6) Sales & Marketing (18.2) (23.2) G&A (29.3) (35.9) Operating profit from ordinary 23.1 23.6 activities % of sales 8.9% 7
Slide 18: Net profit
Net profit €m H1 2007 H1 2008 Operating profit from ordinary activities 23.1 23.6 Other operating income and expenses (2.4) (8.0) Operating profit 20.7 15.7 Financial result (2.9) (2.3) Taxation (5.4) (4.2) Net profit 12.4 9.3 Net profit before impact of merger‐related and restructuring expenses 15.
Slide 19: Non-recurring items
Non‐recurring items Non‐recurring items in €m H1 2007 H1 2008 Restructuring (3.9) (7.6) Disposal of 2,0 (0,5) o.w. €6m for the subsidiaries/activities Barcelona center Disputes / Quality problems (0.5) 0.1 Other 0 TOTAL (2.4) (8.0) 19 H1 2008 Results •
Slide 20: H1 2008 – Cash flow statement (restated)
H1 2008 – Cash flow statement (restated) €m H1 2007 H1 2008 Change Cash flow from operations before WCR 26.2 13 (13.2) WCR (10.2) 17.7 27.9 Cash flow after WCR 16.0 30.7 14.7 CAPEX (6.2) (7.9) (1.7) Cash flow after CAPEX 9.8 22.8 13 Change in scope of consolidation 3.3 0.7 N/A (subsidiaries/activiti
Slide 21: H1 2008 – Trends in shareholders' equity & debt
H1 2008 – Trends in shareholders' equity & debt €m On January 1, 2008 195.9 H1 results 9.2 Dividends (10.8) Sagem Monetel capital increase 202.3 Share‐based payments and capital increase for 5.9 SOP Translation adjustment (2.3) Purchase of own shares (7.2) Oceane (redemption/conversion)* 56.2 Other
Slide 22: Conclusion on financial statements
Conclusion on financial statements Very good performance for the first half: Very good operational performance given: Initial costs covering product convergence and commercial overlaps with an estimated total impact of €2‐2.5m on the operating profit from ordinary activities Launch of the services b
Slide 23: Outlook and Conclusions
3 Outlook and Conclusions Philippe Lazare 23 H1 2008 Results •
Slide 24: Outlook and conclusions
Outlook and conclusions A balanced international geographical presence that stands up well to regional slowdowns Integration under way that will generate future synergies, notably in manufacturing costs and R&D expenses A promising positioning focusing on offering profitable services A sound balance
Slide 25: The Group's objectives for 2008
The Group's objectives for 2008 We confirm a sales growth target of between 7% and 10% despite commercial overlaps (at constant exchange rates) We confirm a target of operating profit from ordinary activities of between 12% and 13% of sales 25 H1 2008 Results •
Slide 26: Questions / Answers
4 Questions / Answers 26 H1 2008 Results •
Slide 27: Thank you
THANK YOU 27 H1 2008 Results •