Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico Group — FY2016 Earnings Presentation
29 slides from Worldline Sa's earnings presentation, Feb 23, 2017
Slide 1: Ingenico Group FY 2016 earnings results
ingenico GROUP FY 2016 earning results FEBRUARY 23R, 2017 @ SEAMLESS PAYMENT
Slide 2: 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 3: Agenda FY 2016
-agenda FY 2016 @ FY16 Key highlights Philippe Lazare, Chairman and CEO @ Performance and financial results Nathalie Lomon, EVP Finance e@ Strategic update & outlook Philippe Lazare, Chairman and CEO
Slide 4: FY16 Key Highlights
FY16 Key Highlights
Slide 5: Highlights
Highlights e Strong revenue growth : €2,312m ¢ Like-for-like growth: +8% ¢ Like-for-like growth excl. Brazil and the US: +16% e EBITDA margin 20.6% e FCF/ EBITDA conversion of 52% e Net income, attributable to shareholders up to €244m (+6%) e Key Highlights « ePayments as one of the key pillars with
Slide 6: 2016 Highlights / revenue by market
2016 Highlights / revenue by market ePayments Europe Africa +11% +14%* €2,312M +8%* ——— APAC & Middle East +25%* North America a Ae =| Latin America -20%* *Growth rate at constant FX & scope Ingenico Group - FY16 Results Ingenico GROUP
Slide 7: 2016 Highlights / ePayments
2016 Highlights / ePayments e Back to double digit growth in H2 (>20% YoY) e Commercial success among international retailers ¢ Full-service payment processing to Aliexpress ¢ Global payment processing and conversion optimization for Booking.com e Development of best-in-class functionalities ¢ Front
Slide 8: 2016 Highlights / omnichannel progress
2016 Highlights / omnichannel 04 progress 2016 KPI Deployments 8 contracts signed in Q4 Carrefour: Deployment of Lane 5000 terminals combined with centralized in-store solution and online services 27 contracts signed representing 1bn transactions/year Pipeline >30 prospects with 9 new ones in Q4 Cov
Slide 9: 2016 Highlights / Smart Terminals
2016 Highlights / Smart Terminals APAC & Middle-East Europe & Africa Strong presence - Strong growth in and relationship China with customers - Sustained - Regulation-driven performance in - replacement cycle the remaining - Expansion in 50% of the region emerging markets and service Outstanding per
Slide 10: Performance and financial results FY 2016
Performance and financial results FY 2016
Slide 11: Basis of presentation for FY16 financials
Basis of presentation for FY16 financials For a better understanding of the Group’s performance * Operating performance and income statements in this presentation are prepared on an adjusted basis, i.e. excluding the impact of PPA amortization (IFRS3) * Foreign exchange gains and losses (including h
Slide 12: FY16 / strong and sustained growth
FY16 / strong and sustained growth Year-on year: +5% Revenue (in M€) 2,312 + FX impact: -72M€ 2,197 * Scope impact: +10M€ Like-for-like: +8% Life-for-like excl. US and Brazil: +16% 1,607 By geography * Outstanding performance in Europe and APAC 1,371 + Unfavourable conditions in US and Brazil 1,206
Slide 13: Q4'16 organic growth / performance per region
Q4’16 organic growth / performance per region ePayments (+19%*) North America (-32%*) Europe & Africa (+7%*) Replacement cycle in nordic - EMV deadline countries r ation ; share rket share g in Eastern gains inn verticals Increasing volumes (Si xPansion In ern Europe r( demand in South East Asia and
Slide 14: FY16 / consolidated income statement
FY16 / consolidated income statement FY16 Changes In €M FY15 Vs. FY15 Revenue 2,312 2,197 +8%* Gross Profit 987 972 +2% In % of revenue 42.7% 44.3% (160)bpts EBITDA 476 508 (6)% In % of revenue 20.6% 23.1% (250)bpts EBIT 403 437 (8)% In % of revenue 17.5% 19.9% (240)bpts Net profit, attributable to
Slide 15: FY16 / gross profit by activity
FY16 / gross profit by activity in€M Terminals Payment Services FY16 Revenue 1,584 728 2,312 Like-for-like growth +7% +11% +8% Adj. Gross profit 733 255 987 In % of revenue 46.3% 35.0% 42.7% High margins despite change in geographic mix, and spendings on ePayments platforms Ingenico Group - FY16 Res
Slide 16: FY16 / operating expenses
FY16 / operating expenses in €M FY16 FY15 Sales & Marketing 175 168 Research & Development 177 155 General & Administrative 232 212 Adj. Operating expenses 584 536 In % of revenue 25.3% 24.4% Increased spendings for Telium Tetra launch and ePayments platforms Ingenico Group - FY16 Results Ingenico G
Slide 17: FY16 / net profit
FY16 / net profit In M€ FY16 FY15 Adj. EBIT 403 437 Purchase Price Allocation (42) (48) Other income & expenses (5) (8) Financial result & Equity Method (8) (21) Income before tax 348 359 Income tax (97) (125) Income tax rate 27.9% 34.5% Net Result 251 235 Net Result, attributable to 244 230 shareho
Slide 18: FY16 / Free Cash Flow
FY16 / Free Cash Flow In M€ FY16 FY15 EBITDA 476 508 Working capital changes (12) (14) Capex (77) (62) Other income & expenses (4) (5) Interests paid (4) (5) Tax paid (131) (137) Free Cash Flow 248 285 Strong Free Cash Flow generation despite higher investments with a FCF/ EBITDA at 52% Ingenico Gro
Slide 19: FY16 / sound financial structure
FY16 / sound financial structure Net debt In ME FY16 FY15 764 Net debt as of Jan. 1 252 764 Free Cash Flow 248 285 Dividend paid (37) (31) OCEANE = 185 296 Call option on shares (14) - 252 Acquisitions net of disposals (61) 87 75 126 Others (10) (14) 7 Change in net debt 126 512 2012 2013 2014PF* 20
Slide 20: Proposed dividend / increasing by +15% to 1,50€
Proposed dividend / increasing by +15% to 1,50€ in 2016 1.5* 1.3 >x5 1 0.8 0.7 0.5 0.3 i; 2009 2010 2011 2012 2013 2014 2015 2016 * Dividend proposed to next AGM Ingenico Group - FY16 Results Ingenico GROUP
Slide 21: Strategic Update & Outlook
Strategic Update & Outlook
Slide 22: Strategy / new organization
Strategy / new organization . . 2016 revenue split per BU e Creation of a customer-centric organization e Address distinct needs of physical and online retailers and banks and acquirers Retail Banks & Acquirers e Better suited with Group’s size and evolution e North America maintains a unique struct
Slide 23: Revenue / transactions processed in 2016
• 2016 Transactions • Revenue processed in 2016 • • • # merchants • • • # currencies # payment methods • • • • 23
Slide 24: Revenue / terminals produced in 2016
• • 2016 # terminals produced Revenue in 2016 • • • # banks/acquirers • Payment method Complete product agnostic range • • • 24
Slide 25: Outlook / 2017 objectives
Outlook / 2017 objectives EBITDA margin slightly increasing vs. 2016 Ingenico Group - FY16 Results Ingenico
Slide 26: Outlook / Updated mid-term outlook
Outlook / Updated mid-term outlook Revenue objective High single digit Improvement in organic growth EBITDA margin FCF/Ebitda Normative conversion ratio Pay-out ratio 45% 35% Ingenico Group - FY16 Results Ingenico ;ROUP
Slide 27: Appendix
Appendix
Slide 28: PPA at Year End and amortization
| PPA at Year End and amortization By Acquisition Amortization easycash (4) (4) (4) (4) (3) Sagem Monetel (4) (4) (1) 0 0 XIRING (1) (1) (1) (1) (1) Ogone (7) (7) (4) (4) (4) GlobalCollect (24) (24) (24) (24) (24) Others (2) (2) (1) (1) (1) Total (42) (41) (35) (34) (33) Ingenico Group - FY16 Result
Slide 29: Investor Relations
ingenico GROUP INVESTOR RELATIONS Y Caroline ALAMY, Investor Relations Manager (T): +33 1 58 01 85 09 (M): +33 6 3009 10 15 @ SEAMLESS PAYMENT