Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico — FY2012 Earnings Presentation
35 slides from Worldline Sa's earnings presentation, Feb 27, 2013
Slide 1: FY 2012 Earning Results
FY 2012 Earning Results February 27th, 2013
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: Agenda FY 2012
Agenda FY 2012 1. Review of Activities Philippe Lazare – CEO 2. Financial Results Patrice Durand – EVP Finance & Operations 3. 2013 Outlook Philippe Lazare – CEO Ingenico – FY 2012 results 3
Slide 4: Review of activities FY 2012
Review of activities 1 FY 2012 Ingenico – FY 2012 results
Slide 5: FY 2012: Very strong annual results
FY 2012: Very strong annual results Very strong revenue growth Revenue: €1.206 bn Reported growth: +20% Like-for-like growth: +14.5% Proven ability to increase margins while investing in future sources of growth EBITDA: 18.5% of revenue, +50 basis point Net result attributable to Ingenico
Slide 6: FY12: Strong growth contribution across all regions
FY12: Strong growth contribution across all regions, independently from macroeconomic conditions Central Operations + 23% Latin America + 29% 1 206.4M€ Europe + 14% Asia Pacific SEPA + 13% + 9% EEMEA + 16% North America + 9% *Growth rate at constant FX & scope Ingenico – FY 2012 results 6
Slide 7: Key customers wins
Key customers wins Banks/Acquirers Mobility Merchants Partnerships Ingenico – FY 2012 results 7
Slide 8: Over performed in payment terminals (+13%)
Over performed in payment terminals (+13%*): the right international presence & the right products The best and most Over performed market in SEPA-Europe region comprehensive product despite macro environment range Gaining market share, notably in UK and Central iWL, iSC, iSMP, iSelfService Euro
Slide 9: Continuous growth on Transactions: +23%
Continuous growth on Transactions: +23%* Continued strong growth of Transfer To: +91% Activity resilience in Transactions (excluding Transfer To): +8% Good traction in Axis pre-processing solutions across Europe First year of successfully deploying easycash outside Germany Promising launch of e-
Slide 10: Strong business model, fueling investment for future growth
Strong business model, fueling investment for future growth 1206 1001 18.5% Published revenue in €m EBITDA in % of revenue 907 18.3% 18.3% 728 701 15.9% 15.0% 568 506 14.8% 2006 2007 2008 2009 2010 2011 2012 Ingenico – FY 2012 results 10
Slide 11: Investing towards the US market
Investing towards the US market Top 10 first US merchants Focused efforts in products, R&D, and sales & acquirers marketing efforts to secure and develop customer First Data base Elavon Global Payments Confirmed Tier 1 Telium acceptance with major wins Bank of America against competitors in last 3 m
Slide 12: Investing in the mobile payment space
Investing in the mobile payment space February 2012: Ingenico becomes the majority shareholder of ROAM…. 50,000 merchants 100+ Employees connected 2013: Ingenico and ROAM combine forces to design a secured world class white label solution that enables our partners to address small merchants: Stron
Slide 13: Positioning Ingenico at the heart of the shopping experience
Positioning Ingenico at the heart of the shopping experience New merchant requirements Ingenico solutions •Multichannel acceptance Address •Multi support issuing Int’l complexity •Multiple country Acquiring Issuing •Dynamic marketing Bring •VAS-loyalty@mobile flexibility •New formats, new payment me
Slide 14: FY 2012 at a glance
FY 2012 at a glance Over performed in depressed economic environment A diversified international exposure with multilocal presence The right and innovative products Robust business model Capacity to expand a high level of margin while investing for future growth Ingenico – FY 2012 results 14
Slide 15: Financial Results FY 2012
2 Financial Results FY 2012 Ingenico – FY 2012 results
Slide 16: Basis of presentation for FY 2012 financials
Basis of presentation for FY 2012 financials For better understanding of the Group's performance Operating performance and income statements in this presentation are prepared on an adjusted basis, i.e. exclude the impact of PPA amortization (IFRS3) 2011 pro-forma financial data include 2011 acqu
Slide 17: Strong operational performance
Strong operational performance Changes FY 2012 FY 2011 FY 2011 In M€ Proforma Reported vs. FY 2011 vs. FY 2011 restated restated Proforma Reported restated restated Revenue 1 206 1 022 1 001 +14%* +20% Gross Profit 513 425 413 +21% + 24% In % of revenue 42.5% 41.6% 41.3% +90 bps +120 bps EBITDA 223
Slide 18: Over performing top line growth
Over performing top line growth Revenue (in M€) Year-on year: + 20% Positive FX impact: +25M€ Acquisitions: 11M€ 1206 1022 Like-for-like: +14% 1001 +13%: growth generated by Terminals 907 business (hardware, servicing & maintenance) Volume growth in HW Continued increased contribution of mob
Slide 19: Terminals: Sustained strong gross profit margin
Terminals: Sustained strong gross profit margin Terminals (Hardware, Services & Maintenance) FY 2012 / FY 2011 PF In M€ FY 2012 restated Very strong volume growth Revenue 981 +13%* Hardware: continuous improvement of Gross Profit 436 +22% production costs due to purchasing efficiencies In % of reven
Slide 20: Transactions: robust fundamentals
Transactions: robust fundamentals Transactions FY 2012 / In M€ FY 2012 FY 2011 PF As expected, gross margin impacted Revenue 225 +23%* by dilutive effect of higher contribution of TransferTo Gross Profit 77 +15% - Excluding Transfer To, gross profit of Transactions is up 44.3% of revenues In % of re
Slide 21: Controlling OPEX level while fueling a group development
Controlling OPEX level while fueling a group development FY 2012 FY 2011 FY 2011 In M€ pro forma reported R&D costs increase to support restated development of new operating system and future Research & Development 85 71 68 growth (US market and mobility) Sales & Marketing 105 83 80 Sales & Marketin
Slide 22: As expected, strongly decreased OPEX during second semester
As expected, strongly decreased OPEX during second semester FY 2012 H1 2012 H2 2012 In M€ Research & Development 85 41 44 Managed to control OPEX through general cost Sales & Marketing 105 50 55 efficiency, leading to a strong inflexion of H2 General & Administrative 133 69 64 2012 OPEX (24.5% of re
Slide 23: From EBITDA to EBIT
From EBITDA to EBIT FY 2012 Actual FY 2011 Actual FY 2011 In M€ Pro Forma reported restated restated EBIT 190 153 151 In % of revenue 15.7% 14.9% 15.1% Amortization & Depreciation (30) (28) (26) Provision for liabilities & warranty 2 1 1 Share-based payment (5) (4) (4) EBITDA 223 184 180 in % of rev
Slide 24: Net result attributable to shareholders multiplied by 1.7
Net result attributable to shareholders multiplied by 1.7 FY 2011 In M€ FY 2012 restated EBIT 190 151 in % of revenue 15.7% 15.1% Purchase Price Allocation (26) (26) Other income & expenses +1 (18) Financial result & Equity Method (15) (26) Income before tax 150 81 Higher tax rate mainly Income tax
Slide 25: Other income & expenses
Other income & expenses In €M 2012 2011 Non recurring costs (9) (15) Gains/(Losses) on disposals of assets and 10 (2) acquisition of financial assets Disposal of plant, property, equipment, (0) (1) intangible assets and other Misc. - 0 Total other income & expenses 1 (18) Reduction of non recurring
Slide 26: Financial result
Financial result In €M 2012 2011 Interest expense (22) (26) FY impact of the renegotiation of 2011 Income from cash & syndicated loan 9 7 cash equivalent Net interest costs (13) (19) Foreign exchange gains/losses 0 (0) Other financial income/expenses (1) (4) Net finance costs (14) (26) Equity method
Slide 27: Net debt
Net debt In M€ FY 2012 FY 2011 Net debt as of January 1 110 109 EBITDA 223 180 Working capital changes 3 (30) Capex (45) (34) Other income & expenses (9) (16) Interest and tax paid (47) (31) Free Cash Flow 125 69 Dividend paid (14) (5) Acquisitions net of disposals (69) (81) Convertible bond (IFRS)*
Slide 28: Strong working capital improvement despite strong activity increase
Strong working capital improvement despite strong activity increase In M€ FY2012 FY2011 Variance FY2012 Variance FY2011 Inventories (105) (95) (12) 16 Receivables (365) (364) (1) (72) Payables 368 352 16 26 Working capital (102) (107) 3* (30)* variance Strict management of inventories and trade rece
Slide 29: Strong liquidity position & financial strength
Strong liquidity position & financial strength Net debt (in M€) 2 120 109 110 1,8 100 1,6 1,4 75 80 1,2 1 60 0,8 0.7 0.6 40 0,6 0,4 0.3 20 0.20 0.18 0,2 0.11 0 0 December 31 2010 December 31 2011 December 31 2012 Net Debt / Equity Net Debt / EBITDA Ingenico – FY 2012 results 29
Slide 30: 2013 Outlook
3 2013 Outlook Ingenico – FY 2012 results
Slide 31: 2013: a new year of profitable growth
2013: a new year of profitable growth In current environment, confidence in increasing revenue and margin Early 2013: Business seems to be holding up well Growth should continue in emerging market and North America Like-for-like revenue growth ≥8% EBITDA > 18.5% Ingenico – FY 2012 results 31
Slide 32: Deploying multi-channel strategy by leveraging acquisition
Deploying multi-channel strategy by leveraging acquisition 1 Leading pan-European online PSP with 4 Flexible e-payment services global reach Direct connections to over 10 years experience in online payments 4 200 banks and acquirers Well established pan-European market positions 4 80 payment methods
Slide 33: Ogone: the perfect fit with Ingenico
Ogone: the perfect fit with Ingenico… Create an unrivalled offering for a one-stop-shop, multi-channel payment solution for small-to-large merchants globally – covering the payment value chain Merchant Transaction « gateway » Collecting1 Acquiring VAS Provider2 Mainly In-store financial institutions
Slide 34: 2013 key focus
2013 key focus Continuing to leverage international & multi-local presence and complete product range Leveraging 2012 investments US market Mobile payment Telium 3 launch Closing and integrating Ogone Focus on synergies in European markets Ingenico – FY 2012 results 34
Slide 35: Increasing dividend by +40% in 2012
Increasing dividend by +40% in 2012 2012 2011 Net income, attributable to owners (in €m) 97 56 Dividend per share (in €) 0.70 0.50 Dividend of €0.70 per share, payable in cash or in share will be proposed to next Annual General Meeting Ingenico – FY 2012 results 35