Worldline Sa · EURONEXT:WLN
Worldline Sa — Ingenico Group — FY2014 Earnings Presentation
33 slides from Worldline Sa's earnings presentation, Feb 18, 2015
Slide 1: Full Year 2014 Earning Results
Full Year 2014 Earning Results FEBRUARY 18TH, 2015
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 2014
Agenda FY 2014 • Review of 2014 key highlights Philippe Lazare – Chairman & CEO • Financial results Patrice Durand – EVP Finance & Operations • Group transformation in action Philippe Lazare – Chairman & CEO towards 2015 3 Ingenico Group – FY 2014 Results
Slide 4: Review of 2014 key highlights
Review of 1 2014 key highlights FY 2014
Slide 5: FY 2014 / Group transformation in action
FY 2014 / Group transformation in action Outstanding operating and financial performance • FY14 revenue: €1.6bn / Double digit growth across all regions and business segments • EBITDA at historic high: 23.4% • Profit attributable to shareholders: €172M; +43% • Free cash flow: €255M; +44% • Proposed
Slide 6: Multi-local approach / driving strong performance
Multi-local approach / driving strong performance North America Europe SEPA Asia Pacific - # 1 in - #1 in - # 1 in China**: 1/3 Europe** Canada** of 2014 - Deploying - EMV and shipments payment NFC - Increased services, deployment commercial whatever in the US network the channel +47%* +10%* +21%* (
Slide 7: A comprehensive offer / building a seamless agnostic offer
A comprehensive offer / building a seamless agnostic offer, whatever the channel IN-STORE ONLINE MOBILE • #1 in payment terminals • 170 countries • 100K merchants worldwide connected to our • 40K+ merchants • NFC/EMV native / 11+ million connected to our plaforms platform NFC terminals to date / • O
Slide 8: Trusted partner / from small merchants to global brands
Trusted partner / from small merchants to global brands Example of 2014 customer cases / simplifying payment while enhancing consumer experience smart terminals / in-store / online/ EMV end-to-end mobile mobile encryption solutions payment 8 Ingenico Group – FY 2014 Results
Slide 9: Accelerating Group transformation towards software and services
Accelerating Group transformation towards software and services / GlobalCollect acquisition 2014PF* Revenue €1,846M including €397M 2009 Revenue from e-payments / €701M 22% contribution 32% 12% 68% 88% *2014PF revenue including GlobalCollect contribution 9 Ingenico Group – FY 2014 Results
Slide 10: 2014 / at a glance
2014 / at a glance • Outstanding operating and financial performance • Strategy tailored to each territory • GlobalCollect acquisition accelerating the Group transformation strategy • Focus on innovation and development 10 Ingenico Group – FY 2014 Results
Slide 11: Financial Results
Financial Results S , FY 2014
Slide 12: Basis of presentation for FY 2014 financials
Basis of presentation for FY 2014 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. exclude the impact of PPA amortization (IFRS3) • Foreign exchange gains and losses (including
Slide 13: 2014 / outstanding financial and operating performance
2014 / outstanding financial and operating performance FY 2014 FY 2013 FY 2013 Changes In M€ Pro forma Reported vs. FY13 PF Revenue 1,607 1,301 1,371 +19%* Gross Profit 735 604 600 +22% In % of revenue 45.7% 46.4% 43.8% - 70 bpts EBITDA 377 276 279 +37% In % of revenue 23.4% 21.2% 20.3% + 220 bpts E
Slide 14: FY14 results / including GlobalCollect contribution in Q4 2014
FY14 results / including GlobalCollect contribution in Q4 2014 FY14 FY14 Q4’14/ GlobalCollect Historical scope Ingenico Group Revenue 1,512 95 1,607 Gross Profit 704 31 735 In % of revenue 46.5% 32.6% 45.7% EBITDA 353 24 377 In % of revenue 23.4% 25.3% 23.4% EBIT 301 23 324 In % of revenue 19.9% 24.
Slide 15: A very strong and sustained growth
A very strong and sustained growth 1,607 Revenue (in M€) Year-on year: +17% 1,512 • FX impact: -37M€ • GlobalCollect contribution in Q4: 1,371 +95M€ 1,301 1,206 Like-for-like: +19% By geographies 1,001 • Double digit growth across all regions By business segment • Terminals / Outstanding growth : +2
Slide 16: Continued to leverage geographically differentiated strategy
Continued to leverage geographically differentiated strategy Asia Pacific +21%* Europe SEPA 18% +10%* 36% €1,607M EMEA 15% +19%* +23%* 7% 13% 11% Central Operations +48%* Latin America North America +17%* +47%* *Growth rate at constant FX & scope / excluding contribution of GlobalCollect in Q4 16 In
Slide 17: Strong fundamentals across all business segments
Ingenico Group historical scope / Strong fundamentals across all business segments Payment in €M Terminals Total FY14* Services* Revenue 1,259 254 1,512 Like-for-like growth +20% +17% +19% Adj. Gross profit 591 113 704 In % of revenue 47.0% 44.3% 46.5% • Terminals: Outstanding volume growth combined
Slide 18: Operating expenses under control while investing for future growth
Ingenico Group historical business / operating expenses under control while investing for future growth drivers FY 2013 FY 2013 in €M FY 2014* pro forma reported Research & Development 112 105 94 Sales & Marketing 128 119 121 General & Administrative 163 145 146 Adj. Operating expenses 403 369 361 I
Slide 19: Net result attributable to shareholders up 43%
Net result attributable to shareholders up 43%* FY 2013 In M€ FY 2014 Pro forma Adj. EBIT 324 235 Purchase Price Allocation (32) (30) Other income & expenses (18) (14) Financial result & Equity Method (21) (18) Income before tax 252 174 Income tax (81) (56) Income tax rate 31.8% 33.0% Net Result 172
Slide 20: Record free cash flow generation
Record free cash flow generation In M€ FY 2014 FY 2013 EBITDA 377 279 Working capital changes 40 38 Capex (51) (40) Other income & expenses (12) (10) Interests paid (6) (9) Tax paid (93) (82) 255 177 • Strong EBITDA improvement • Continued control over working capital despite significant increase of
Slide 21: A continued strong financial structure
A continued strong financial structure FY FY In M€ 2014 2013 Net debt 764 653 Net debt as of Jan. 1 296 75 Free Cash Flow 255 177 Dividend paid (20) (13) 1.8 296 1.6 OCEANE conversion 131 - 1.1 Acquisitions net of 110 75 0.7 (809) (363) 0.6 disposals 0.6 0.3 0.4 0.2 0.1 Others (25) (22) Dec 31 2011
Slide 22: Proposed dividend / Increasing by +25% to 1€ in 2014
Proposed dividend / Increasing by +25% to 1€ in 2014 €1* >x3 €0.8 €0.7 Pay Out €0.5 Ratio: 35% €0.35 €0.3 2009 2010 2011 2012 2013 2014 * Dividend proposed to next AGM 22 Ingenico Group – FY 2014 Results
Slide 23: Group transformation in action towards 2015
Group 3 transformation in action towards 2015
Slide 24: A new brand to illustrate the evolution of the Group
A new brand / to illustrate the evolution of the Group and the new ambition 24 Ingenico Group – FY 2014 Results
Slide 25: GlobalCollect integration / creation of an e-payments business unit
GlobalCollect integration / creation of an e-payments business unit One single e-payment business unit • Online processing • Replicating our in-store payment • Pan-European player leadership to the e-commerce ecosystem • Tier 2- Tier 3 merchants Same • 170 countries DNA • 150 payment methods • World
Slide 26: innovation / fuelling future growth
innovation / fuelling future growth Innovation driving new payment process Telium Tetra / Creating a fully integrated • > 60% of terminals shipped in 2014 commerce ecosystem around the Point of Sale embedding NFC ~ 9M ~ 4M x15 62% 8% 2010 2014 NFC • One-click donation process • Contactless payment t
Slide 27: innovation / multiplication of initiatives at early stage developments
innovation / multiplication of initiatives at early stage developments Telium Tetra / Paving the way for payment acceptance in connected devices Ingenico Labs • Advanced R&D unit dedicated to next-generation solutions • Testing new solutions and services in real-world conditions Partnership with Par
Slide 28: New organisation / reflecting Group's new scope
New organisation / reflecting Group’s new scope New appointments to Executive Committee: 14 members, including 3 from GlobalCollect Executive Committee’s key responsibilities • Operational: e-Payment, Platforms and Smart Terminals • Geographic: Europe & Africa, Asia-Pacific & Middle East, North Amer
Slide 29: 2015 / continued profitable growth
2015 / continued profitable growth Early 2015 • Business trends are encouraging • LfL growth: c. +10%* FY15 guidance • EBITDA margin: c. 21% / evolution of product and geographic mix and ongoing investments * At constant exchange rate and based on FY14 pro forma revenue at €1.846bn (including Global
Slide 30: Appendix
4 Appendix
Slide 31: 2014 pro forma / including GlobalCollect acquisition in 2014
2014 pro forma / including GlobalCollect acquisition in 2014 FY 2014 FY 2014 In M€ Pro Reported forma Revenue 1,846 1,607 Adjusted Gross Profit 807 735 In % of revenue 43.7% 45.7% Adjusted OPEX (446) (411) In % of revenue 24.2% 25.6% EBITDA 415 377 In % of revenue 22.5% 23.4% Adjusted EBIT 361 324 I
Slide 32: 2013 Pro Forma / R&D Reclassification
2013 Pro Forma / R&D Reclassification 2013PF before Reclassification 2013PF In M€ reclassification Adjusted Gross Profit / Terminal 500 - 500 As a % of revenue 46.1% 46.1% Adjusted Gross Profit / Payment 93 11 104 Service 43.0% 48.0% As a % of revenue Adjusted Gross Profit 593 11 604 As a % of reven
Slide 33: PPA at Year End and amortization
PPA at Year End and amortization By Acquisition Amortization 2014 2015 2016 2017 2018 easycash (8) (8) (4) (4) (4) Sagem Monetel (4) (4) (4) (4) (1) XIRING (3) (2) (1) (1) (1) Ogone (7) (7) (7) (7) (4) GlobalCollect (6) (24) (24) (24) (24) Others (4) (3) (2) (2) (1) Total (32) (48) (42) (41) (35) 33