Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico — H1 2006 Earnings Presentation
24 slides from Worldline Sa's earnings presentation, Sep 21, 2006
Slide 1: H1 2006 Results Business Report
H1 - 2006 RESULTS Business Report 21 September 2006 Park Hyatt hotel Solutions de transactions et de paiement sécurisées
Slide 2: Results H1 2006
Results H1 2006 11 -- H1 H1 2006 2006 Financial Financial Results Results >> C. C. MALHER MALHER Business 22 -- B usiness Overview Overview >> A. A. d’ANGELO d’ANGELO 33 -- Questions Questions // Answers Answers H1 2006 Business Report 10/14/2008 2 Solutions de transactions et de paiement sécurisés
Slide 3: Financial Results H1 2006
Financial Results H1 - 2006 H1 2006 Business Report 10/14/2008 3 Solutions de transactions et de paiement sécurisés
Slide 4: H1 2006: Key Achievements
H1 2006: Key Achievements SALES EBIT +25% 255,2 14,7 207,4 x 11,6 1,1 2005 2006 OUTSTANDING GROWTH STRONG PROFITABILITY IMPROVEMENT HEADCOUNT Divestments 1269 ITS 1128 1110 INGENICO DEBITEK SWEDEN 06/2005 12/2005 06/2006 H1 2006 Business Report 10/14/2008 4 Solutions de transactions et de paiement s
Slide 5: Consolidated income statement H1 2006
Consolidated income statement H1 2006 % Millions of € H1 2005 H1 2006 improvement Sales 207,4 255,2 Cost of goods sold -147,5 -176,0 IFRS 2005: Gross margin 59,8 79,2 +2,3% capitalized 28,8% 31,1% R&D R&D - 17,8 -21,5 +0,2% 8,6% 8,4% Sales & Marketing - 15,6 -16,1 +1,2% 7,5% 6,3% G&A - 25,3 -26,9 12
Slide 6: Gross margin evolution
Gross margin Gross margin evolution H1 2005 H1 2006 Sales in M€ Terminals 163,1 204,5 Software and Services 40,5 50,7 Other 3,7 Total 207,3 255,2 Gross margin (% of sales) Terminals 43,0% 43,2% Software and Services 20,3% 21,7% Other -1,4% N/A Total 37,8% 39,0% Indirect Costs -9,0% -7,9% Gross margi
Slide 7: Consolidated income statement H1 2006
Consolidated income statement H1 2006 Millions of € H1 2005 H1 2006 Operating income 1,1 14,7 Non recurring items - 24,0 1,8 EBIT after non recurring items - 22,9 16,5 Net financial expenses - 1,0 - 6,2 NOL utilization Income taxes - 0,8 - 2,0 Net income - 24,6 8,3 EPS N/A 0,28 H1 2006 Business Repo
Slide 8: Non recurring items
Consolidated income statement Non recurring items in M€ H1 2005 H1 2006 Restructuring charges - 2,5 -2,3 ITS, Debitek, Ingenico Sweden Disposal of Assets 2,8 Provision for non quality - 9,9 0,0 Legal claims - 1,5 2,1 Other (including obsolete - 10,1 - 0,8 inventories) TOTAL - 24,0 1,8 H1 2006 Busine
Slide 9: Financial income (expense)
Financial income (expense) O/W 2 M€ are unrealized Millions of € H1 2005 H1 2006 losses Gains / losses on foreign 0,8 - 2,5 exchange Interests expenses - 1,2 - 3,7 Other expenses - 0,6 TOTAL - 1,0 - 6,2 H1 2006 Business Report 10/14/2008 9 Solutions de transactions et de paiement sécurisés
Slide 10: Equity and Net debt
Equity and Net debt M€ January 1st, 2006 101,3 Net Debt: 64,5M€ Gearing: Ö H1 net result 8,3 62,2% Ö Capital increase 1,3 Ö Share based payments 2,5 Ö CTA (1,5) Ö Treasury stock purchases ( 8,1) June 30, 2006 103,8 H1 2006 Business Report 10/14/2008 10 Solutions de transactions et de paiement sécuri
Slide 11: Consolidated cash-flow statement
Consolidated cash-flow statement Millions of € H1 2005 H1 2006 Cash flow from (used in) operations - 9,0 9,8 Change in working capital - 9,6 - 7,0 Cash-flow Cash Flowfrom operations opérationnel -18,6 - 18,6 2,8 2,8 +21,4 CAPEX -7,1 - 4,6 ITS, Debitek, Ingenico Effect of acquisitions & divestitures
Slide 12: Net debt / Gearing
Net debt / Gearing Millions of € 31/12/2005 30/06/2006 Financial liabilities - 175,0 - 162,8 Net cash 111,5 98,2 Net debt - 63,5 - 64,6 Equity 101,3 103,9 Gearing - 63% - 62% H1 2006 Business Report 10/14/2008 12 Solutions de transactions et de paiement sécurisés
Slide 13: Business Overview
Business Overview H1 2006 Business Report 10/14/2008 13 Solutions de transactions et de paiement sécurisés
Slide 14: Actions and Achievements
Actions and Achievements Outstanding Revenue Increase Latin America – North America – Italy – Asia ++ 109% 109% ++ 47% 47% ++ 71% 71% ++ 66% 66% Supply Chain Improvement Qualification of new EMS in Romania and China Plastics closer to Customer (Brazil, Romania, China) EMS Quality Level Improvement I
Slide 15: Major Wins
Major Wins Turkey – 50K Wireless Terminals delivered before year end Australia – First Order with Commonwealth Bank, 35% of their business Colombia – Market leader with 95% share The Netherlands – 5M€ orders for EMV migration USA – 3 Ingenico Terminals Certified by “Chase Paymentech Solution” US lar
Slide 16: Market Growth Factors
Market Growth Factors EMV and ‘Chip and Pin’ deployed in 5 countries only, acceleration to ’08 and ’09 deadline Pan-Continental payment platforms like SEPA* Emerging Countries terminalization Tax collection Tourism Security and competitiveness to enlarge the Merchant base for the acquirer banks Mobi
Slide 17: Ingenico Value Chain
Ingenico Value Chain LARGE SYSTEM RETAIL ROUTER INTEGRATORS NCC BACK END Traditional Payment Issuing Bank Network Aggregation/Hosting Cards Processor MERCHANTS Acquiring Bank SPECIFIC Vertical H1 2006 Business Report 10/14/2008 17 Solutions de transactions et de paiement sécurisés
Slide 18: Ingenico Product Strategy
Ingenico Product Strategy New range of unattended devices Security higher than standards required Ingenico Product Contactless and NFC Strategy Terminals Introduce Biometry H1 2006 Business Report 10/14/2008 18 Solutions de transactions et de paiement sécurisés
Slide 19: Biometry
Biometry Integrate biometric captors in terminals Merchant Identification Finger Print storage in case of dispute Cardholder Identification H1 2006 Business Report 10/14/2008 19 Solutions de transactions et de paiement sécurisés
Slide 20: Ingenico Product Strategy
Ingenico Product Strategy New range of unattended devices Increase Patent Effort Security higher than standards required Environment friendly design Ingenico Product Contactless and NFC Strategy Terminals Introduce Biometry Top Class design style High resolution display H1 2006 Business Report 10/14
Slide 21: A True Patent Policy
A True Patent Policy Over 30 Patent Projects since September 2005 setup setup of of aa Patent Patent Committee Committee A printer using standard ordinary paper and no ink under Chief Scientist responsibility A new method to ascertain that a POS is malware-free A new one-time-password system with im
Slide 22: Conclusion
Conclusion Ingenico is re-inventing itself within its own culture Ingenico is taking advantage of its strength, of being a Multi-Local company Ingenico is innovating, designing the future of secure transaction acceptance solutions We are expanding our territorial coverage We are going to deploy glob
Slide 23: H1 2006 Business Report
H1 2006 Business Report 10/14/2008 23 Solutions de transactions et de paiement sécurisés
Slide 24: Questions/Answers
Questions/Answers H1 2006 Business Report 10/14/2008 24 Solutions de transactions et de paiement sécurisés