Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico — Investor Day (March 2013)
56 slides from Worldline Sa's investor day presentation, Mar 26, 2013
Slide 1: Deploying our strategy across our geographies
Deploying our strategy across our geographies
Slide 2: EMEA: Developing the region
EMEA: Developing the region Jacques Behr, EVP EMEA
Slide 3: EMEA: A wide geographical range with multiple dynamics
EMEA : A wide geographical range with multiple dynamics Russia : 98 employees Paris to manage export: (production site in Tver) 44 employees EMEA market size : • Russia : 800K units • CIS : 200K units • Middle East : 2M units • Turkey : 2.2M units Turkey : • Africa : 800K units 109 employees • South
Slide 4: EMEA – Strategic Initiatives 2013
EMEA – Strategic Initiatives 2013 Russia Increase our market share in traditional POS business Turkey Seize new opportunities due to changing market conditions Africa Dynamic market for another POS usage Investor Day, March 26 2013 93
Slide 5: Russia & CIS countries: Increase our market share in traditional POS
Russia & CIS countries: Increase our market share in traditional POS Market Drivers : > Steady economic growth rate > Strong POS market growth > Increasing solutions & service requirements > Russian laws to enforce electronic payments > Large Kiosk and Unattended Market > Mobile payment to become po
Slide 6: Turkey: Seize new business opportunities due to changing market conditions
Turkey: Seize new business opportunities due to changing market conditions Market Drivers: > High volume, mature and price sensitive market > Deep market reorganization and new revenue opportunities > 2012 Turkish Ministry of Finance indicates that all current check out devices must be replaced by O
Slide 7: Africa: Dynamic market for different way to pay
Africa: Dynamic market for different “ way to pay” Market Drivers: > 1 billion people, 56 countries with fast growing economies, young & unbanked populations > Government & financial institutions promote electronic transaction platforms using existing infrastructure and equipment providing cheap and
Slide 8: Africa – SASSA business case
Africa ‐ A different “ way to pay” business case: SASSA: South African Social Security Agency In 2012, the South African Ingenico provided: government deployed a social welfare program to poor 4,500 pinpad for individual population enrollment and pin entry SASSA enrolled and issued 10M EMV 8,000 bio
Slide 9: Africa – GhIPPS E ZWICH business case
Africa ‐ A different “ way to pay” business case: GhIPPS – the E ZWICH program GhIPPS, the Ghana national payment switch launched 2 years ago, E ZWICH a biometric‐based program aiming at promoting public and financial electronic services A successful partnership between GhIPPS and Ingenico: Full 100
Slide 10: EMEA – Developing the region
EMEA – Developing the region Russia : Grow Ingenico’s revenue, leveraging on organic market growth, recent acquisition and local manufacturing Turkey : Seize the new business oppportunity related to new local fiscal – ECR POS project Africa : Move from POS vendor to end to end mobile solution provid
Slide 11: Latin America: Sustaining growth
Latin America: Sustaining growth Oscar Bello, EVP Latin America
Slide 12: LAR – the market leader with room for growth
LAR – the market leader with room for growth CarCAAn • Fastest growing subregion of LAR • Combined indirect and direct access to banks, processors Mexico and PSPs. • Nb people ‐ 125 • Recent commercial focus with • Size of the market ‐ 560K dedicated team • Direct operation • Key customers: BBVA Ban
Slide 13: Significant growth through expansion over the last years
Significant growth through expansion over the last 2 years > In 2010 Ingenico was only doing business with 18 of the top 30 acquirers in LAR > After a two‐year campaign we have expanded our customer base to include ALL of the top 30 acquirers in LAR Investor Day, March 26 2013 102
Slide 14: Diversified customer base
Diversified customer base Investor Day, March 26 2013 103
Slide 15: LAR Strategy for Growth
LAR Strategy for Growth Grow existing customer base Expand to new customers and new countries Diversify into new vertical markets Expand reach beyond current value chain Investor Day, March 26 2013 104
Slide 16: Brazil: still potential for growth
Brazil: still potential for growth Great market dynamics Opportunities for Ingenico Development of countryside regions Olympics and World Cup Growth of credit Launch new products and C & D sectors under development solutions E‐Government Tax collection tool Long term customer partnerships Increased
Slide 17: Brazil: positioned to capture large vertical market opportunities
In Brazil we are well positioned to capture very large vertical market opportunities…. Mobile Payments E‐Government Retail •60M smartphones •Education, Heathcare, •Large retailers likes •NFC + POS e‐ID and Defense Walmart, P de A, Carrefour •Major acquirers •Manage projects need in‐store mobile eval
Slide 18: Latin America business case: SEEDUC Bahia
Latin America business case: SEEDUC Bahia Seizing the Vertical opportunity in Education SEEDUC Bahia (and all 27 states) received federal gov’t subsidies for education, based on student attendance Issue: Need to accurately & efficiently track attendance real‐time in state schools Solution: Use of In
Slide 19: Mexico is primed for growth
Mexico is primed for growth 5% Growth 95% opportunity (non POS equipped) 5,000K merchants Only 5% of all payment transactions are captured electronics A huge opportunity for growth, with new low cost terminal configurations and with mobile payments Ingenico today has the right products for this mark
Slide 20: Latin America: Sustain growth
Latin America : Sustain growth EMV, NFC and 3G communications driving the need to update existing installed base in Latin America Growth potential remains in Brazil with strong economic dynamics, new verticals and mobile payment development Increased focus outside Brazil with Mexico as a priority wi
Slide 21: APAC & China: Seizing the opportunities
APAC & China: Seizing the opportunities Patrice Le Marre, EVP APAC & China
Slide 22: APAC: Strong growth potential with different market challenges
APAC: Strong growth potential with different market challenges to tackle across APAC India: China: Market driven by Volume‐driven market Government initiatives •1.35B habitants •5 POS / 000’ habitants •1.2B habitants •7 M terminals installed •<1 POS / 000’habitants •30% growth within •700K terminals
Slide 23: APAC: Channel to market and presence by country
APAC: Strong growth potential with different market challenges to tackle across APAC China: Volume driven market India: •Channel to market – Direct Market driven by •1300 employees Government initiatives •6 biggest Chinese banks covered •Channel to market – Direct •New third parties PSP •50 employee
Slide 24: APAC: Strong growth potential across APAC
APAC: Strong growth potential with different market challenges to tackle across APAC Deliver POS – continue to lead and develop market shares Leading the market Administrate installed base > Australia > China Consolidation in Manage transaction Acquisition > Australia Monetize Installed > China Pre‐
Slide 25: Indonesia: Providing Terminal Management System
Indonesia: Providing Terminal Management System to facilitate fleet administration Selling hardware + TMS solution to increase the fields of deployment, secure the network and increase the ability to deliver additional value in the future. Reducing by 3 the cost of fleet administration Investor Day,
Slide 26: India – Partnership in Biometry (Aadhaar – UID)
India – Partnership in Biometry allowing financial inclusion (Aadhaar – UID) By providing a clear proof of identity, Aadhaar (UID) will also facilitate entry for poor and underprivileged residents into the formal banking system and the opportunity to avail services provided by the government and the
Slide 27: APAC – Ready to capture growth driven by mobile acceptance devices
APAC – Ready to capture growth driven by mobile acceptance devices The regulation is globally moving towards CHIP and PIN solutions > India and Australia will require CHIP & PIN Solution, mandatory by June 2013 and June 2014, respectively > Rest of Asia – still under validation, but already Chip & S
Slide 28: China: Consolidating strong positions through JV in mobile payment
China: Consolidating strong positions through JV in mobile payment JV with ZTE combining: > Ingenico’s large installed base and relationships with CUP and banks > ZTE’s technology and relationships with China Mobile and other Telecom carriers To build an end to end solution to enable consumer mobile
Slide 29: Ingenico: The right assets to continue to grow in APAC
Ingenico: The right assets to continue to grow in APAC The right geographical coverage across the region Still significant growth opportunities in hardware, driven by massive deployments to move from cash to electronic payments The right technologies to capture additional growth (mobile payment, bio
Slide 30: North America: Executing the strategy
North America: Executing the strategy Thierry Denis, EVP North America
Slide 31: Ingenico: Leading Player in North America
Ingenico: Leading Player in North America Acquisition of IVI‐Checkmate in 2002 provided Ingenico with entry in both Canada & US markets USA – Regional Head Office > Headquarters in Atlanta > Staff: 137 > Ingenico number 2 position > Clients: mostly large retailers (Walmart, Home Depot, USPS,…) > Mar
Slide 32: NAR Strategy: Double US market share in 3 years
NAR Strategy: Double US market share in 3 years Maintain our strong presence 1 in the large retailers segment: Est ~ 125K > Provides large volume orders > Provides brands recognition for Ingenico 2 Est ~ 85K merchants Penetrate the bankcard segment: a significant growth opportunity 3 > An estimated
Slide 33: Large US retailers: Our historical segment
Large US retailers: Our historical segment Around 30% of lanes in top tier retailers Addressable market: 2m POS US retailers have to deal with: > Increasing security requirements > EMV migration > Multiple NFC solutions being piloted > Consumers buying more products online & “showrooming” > Developm
Slide 34: Consolidate our position with US retailers
Consolidate our position with US retailers by offering a complete range of solutions Providing the full range of “future proof” and flexible solutions to our retailers > 100% of terminals delivered are EMV ready > NFC – Partnership with PayPal, Google, ISIS > Security: : Partnership with market Poin
Slide 35: Leverage on key partnerships to offer retailers tomorrow's solution now
Leverage on key partnerships to offer retailers tomorrow’s solution now Wallet & NFC – We are ready > Partnerships with PayPal, Google, ISIS > First to go pilot with PayPal on Home Depot terminals in January 2012 > Pilot of ISIS solutions started in Q4 2012 at 4 T‐Mobile store locations. Going to ne
Slide 36: The Home Depot: a 100% Ingenico Customer
The Home Depot: a 100% Ingenico Customer In lane hardware & software solution > Need for new generation signature capture device with latest technology > After extensive 14 month RFP, won 85k lane deal in December 2012 > Software solutions: • EMV application • P2PE – OnGuard > Roll out started and w
Slide 37: The Home Depot: Extending market to external contractors
The Home Depot: a 100% Ingenico Customer Extending market to external contractors > Contractors provide services onthe ground in the name of The Home Depot and charge customers > The Home Depot wanted to equip them with a payment system > An Ingenico / Roam pilot solution started in February using a
Slide 38: US Bankcard segment: Successful roll out of a 3 year strategic plan
US Bankcard segment: Successful roll out of a 3 year strategic plan Strategic action initiated 18 months ago 1. Investment in key resources (R&D and Sales) 2. Development of strategic local banking applications for major processors (using Canadian EMV core application as starting point) 3. Promotion
Slide 39: Bankcard: Moving forward
Bankcard: Moving forward From processors’ certification to ISOs > Drive down to the wider ISO community > Each ISO added to the portfolio will increase on going revenue Ingenico to support the trend towards high end solutions > Tablet solutions moving to small merchants (portable, pinpad or desktop
Slide 40: EMV: Ingenico's DNA
EMV: Ingenico’s DNA First mover advantage with strong EMV experience > More specifically, Canadian core application used to build US core applications > 100% of terminals being deployed are EMV compliant > Chip & Pin or Chip & Signature option : our terminals are suited for both New drivers for Vert
Slide 41: Ingenico on track to double market share in the US
Ingenico on track to double market share in the US Replicate our success in large retail with small merchants Leverage on Ingenico’s unique range of products to deliver solutions for all use cases and segments Ingenico will benefit from EMV migration > Leverage worldwide experience > Uniquely positi
Slide 42: Europe-SEPA: SEPA at the forefront of the Group's offering
Europe‐SEPA: SEPA at the forefront of the Group’s offering Pierre‐Antoine Vacheron, EVP SEPA‐Europe
Slide 43: 2010-2012: Building the foundations for the new model in the region
2010‐2012: Building the foundations for the new model in the region 2012 revenue split Italy & CE Northern Positions reinforced in Payment & Iberica Terminals France Transactions offering enlarged and Germany expanded to other geographies Significant growth in transactions by leveraging on acquisiti
Slide 44: Ingenico in Europe covers the full value chain of payment
Ingenico in Europe is the only player covering the full value chain of payment Approval Schemes Acquirers Issuers Merchants Consumers Investor Day, March 26 2013 133
Slide 45: Ingenico in Europe covers the full value chain of payment
Ingenico in Europe is the only player covering the full value chain of payment Approval Schemes Acquirers Issuers Gifts, Loyalty Multiple payment standards, Certified programs, with local/global protocols connections Prepaid services and regulations GATEWAY Multi‐channel Reporting, VAS, CRM and Data
Slide 46: Ingenico in Europe covers the full value chain of payment
Ingenico in Europe is the only player covering the full value chain of payment Approval Schemes Acquirers Issuers Gifts, Loyalty Multiple payment standards, Certified programs, with local/global protocols connections Prepaid services and regulations GATEWAY Multi‐channel Reporting, VAS, CRM and Data
Slide 47: Ingenico in Europe covers the full value chain of payment
Ingenico in Europe is the only player covering the full value chain of payment Approval Schemes Acquirers Issuers Specific geographies Gifts, Loyalty Multiple payment standards, Certified programs, with local/global protocols connections Prepaid services and regulations GATEWAY Multi‐channel Reporti
Slide 48: Ingenico in Europe covers the full value chain of payment
Ingenico in Europe is the only player covering the full value chain of payment Approval Schemes Acquirers Issuers Specific geographies Gifts, Loyalty Multiple payment standards, Certified programs, with local/global protocols connections Prepaid services and regulations GATEWAY Multi‐channel Reporti
Slide 49: Moving up the value chain: VAS as enabler of incremental revenue
Moving up the value chain: VAS as enabler of incremental revenue Easier mobile top‐ An example: up functionnalities Prepaid Services Incremental revenue for merchants and acquirors More efficient distribution model for such services through the combination of: > User friendly terminals > Centralised
Slide 50: VAS: increasing range of e-money services
VAS: Ingenico in Europe provides an increasing range of e‐money services Opportunity for merchants Ingenico’s offering and expertise > Combination of e‐money for end to end solutions : services (prepaid cards, > POS know‐how and gateway wallets, loyalty) and mobile footprint phones > Track record in
Slide 51: Growth in SEPA will rely on expansion in the value chain
Growth in SEPA will rely on expansion in the value chain, depending on segments and geographies Unique end to end … allowing targeting offering in the SEPA specific requirements region… of key vertical segments Banks and Acquirors Small & micromerchants Acceptance Issuing Hospitality of selected pro
Slide 52: A proven ability to expand the value chain with banks and acquirers
A proven ability to expand the value chain with banks and acquirers Case study: Major European Acquirer On‐line processing Payment Payment gateway gateway Call center Call center Call center Level 1 Level 1 Level 1 Level 1 Maintenance Maintenance Maintenance Maintenance Payment Payment Payment Payme
Slide 53: BNPP in Belgium: white-labelled managed solution
BNPP in Belgium: combining all the skills of Ingenico in a white‐labelled managed solution All types A branded Marchant Mobile A branded portal Payment Acquiring of readers… Application for merchants Gateway « Read card » Manage interaction with reader « manage merchant provide certified Cross borde
Slide 54: SEPA strategy to deliver 20m€ synergies from Ogone acquisition
Strict execution of SEPA strategy will deliver 20m€ synergies expected from Ogone’s acquisition in 2015 Synergie Description multi‐channel Offer large merchants payment solution for their various distribution channels • epayment • POS terminals • AXIS payment gateway • Acquiring (in selected geograp
Slide 55: Two levers to secure synergies
Two levers to secure synergies Organisation: easycash Integration: systematic and Ogone under same management and collective approach within SEPA Salesforces Product Technical Organisation offering streams •One face •Epayment •Easycash‐ to principle offering Ogone (very •Leads sharing •Cross channel
Slide 56: SEPA: Execute the transformation
SEPA: Execute the transformation Ingenico’s unique offering in payment solutions in Europe is driving momentum Anticipated evolution in the value chain follows a vertical go to market strategy Strict execution of Ingenico’s strategy in Europe will generate 20m€ EBITDA synergies with Ogone in 2015 In