Transforming Ingenico towards profitable growth: Investor conference today at 2:30- - 2013 targeted revenue above 1 billion € with circa 40% of recurring revenue
- - Revenue from transactions to be multiplied by 3 between 2009 (PF) and 2013
- - EBITDA[1] > 18% of revenue in 2013
Neuilly-sur-Seine, 9 June, 2010, Ingenico (Euronext : FR0000125346 - ING), the leading worldwide provider of payment solutions, today announces its 2010-2013 strategic plan. The group will hold today at 2:30 pm CET in Paris an investor presentation that will focus on the current and future developments of the payment market and the execution of Ingenico's transformation plan.
With the successful integration of easycash, Ingenico is focused on maintaining its leadership in POS terminals while growing the transactions management and value-added services. This transformation should enable revenue to exceed 1 billion € in 2013. The Group's objective is to multiply revenue from transactions by 3 between 2009 and 2013. As a consequence, recurring revenue should represent circa 40% of total revenue in 2013 compared to 28% in 2009 pro forma. By 2013, EBITDA margin is expected to be above 18% of total revenue.The evolution of payment ecosystem is driving strong opportunities:
The payment market is structurally growing with a continuous evolution towards electronic payments. Structural changes of the payment ecosystem are also driven by new expectations from consumers and merchants, the growth in emerging countries, the prominent regulation and changes in technology. New trends in shopping experience drive a shift towards offers that combine POS, online and mobile payments and for which the expertise of Ingenico in the complex payment ecosystem is a key differentiator.
Highlights of the 2010-2013 Strategic Plan:
- 2013 revenue above 1 billion € is based on growth in all segments with increasing direct access to merchants, coming from POS to transaction management and value added services.
- Revenue from transactions should triple in 2013 from €84 million in 2009 pro forma. This will be mainly driven by organic growth, the internationalization of the easycash business model outside Germany, and will be fuelled by focused acquisitions.
- EBITDA margin is expected to be above 18% of revenue in 2013 based on further optimized costs of the POS activity combined with operating leverage allowed by transactions related revenues. Synergies from the Group combination with easycash should generate 12 million € incremental EBITDA in 2013.
Philippe Lazare, Chairman & CEO of Ingenico declared: "We are deploying our focused strategy for transformation towards services whilst consolidating our POS leadership. Ingenico is in a unique position to take advantage of a growing payment market. By combining organic growth, internationalization of our services, and focused acquisitions, we will expand recurring revenue contribution up to around 40% in 2013 with strong operating leverage. I am confident that we will deliver our 2013 targets and that we will provide significant value creation for our stakeholders thanks to the synergies between our business segments."
The full investor presentation will be available on Ingenico's web site as of 2:30 pm CET:http://www.ingenico.com/en/finance/publications/investors_presentations/.
Update on FY2010 performance:
Based on the current performance, the 2010 revenue is expected to be in the high end of our guidance (790 to 805 million €), with the EBITDA margin in the range of 16% to 17% of the 2010 revenue. This FY update takes into account H1 expectations. In H1 2010, revenue is expected to be above 380 million €, compared to 341 million € in 2009 pro forma. The operating margin rate should be comparable to H1 2009 pro forma. Without a one off event due to a component quality issue of some products of the former range, this margin rate would have been expected around 10% of the revenue. This isolated quality issue has been identified and dealt with.
H1, 2010 revenue and results will be reported on July 29, 2010, after the closing of Euronext Paris.
This press release contains forward-looking statements. The trends and objectives given in this release 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 in particular with the performance of Ingenico and its subsidiaries. These forward-looking statements in no case constitute a guarantee of future performance, involves risks and uncertainties and actual performance may differ materially from that expressed or suggested in the forward-looking statements. Ingenico therefore makes no firm commitment on the realization of the growth objectives shown in this release. Ingenico and its subsidiaries, as well as their executives, representatives, employees and respective advisors, undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future developments or otherwise. This release does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for securities or financial instruments.
About Ingenico (Euronext: FR0000125346 - ING)
Ingenico is a leading provider of payment solutions, with over 15 million terminals deployed in more than 125 countries. Its 2,850 employees worldwide support retailers, banks and service providers to optimize and secure their electronic payments solutions, develop their offer of services and increase their point of sales revenue. More information on www.ingenico.com.
+-------------------------+--------------------+
|INGENICO – Investor |INGENICO – Corporate|
|Relations |Communication |
+-------------------------+--------------------+
|Catherine Blanchet | Rémi Calvet|
+-------------------------+--------------------+
|Investor Relations | VP Communication|
|Director | |
+-------------------------+--------------------+
|catherine.blanchet@ingeni|remi.calvet@ingenico|
|co.com |.com |
+-------------------------+--------------------+
|+33 1.46.25.82.20 | +33 1.46.25.78.23|
+-------------------------+--------------------+
+-------------------------+--------------------+
Exhibit
2009 pro forma financials
To facilitate the assessment of Ingenico's performance, 2009 data have been restated to reflect the changes in consolidation scope during the year ("2009 pro forma"), i.e. including the operations of Easycash and eliminating the operations of Sagem Denmark, Manison Finland and Moneyline Banking Systems as of January 1, 2009.
The consolidated financial data has been drawn up in accordance with International Financial Reporting Standards. In order to provide meaningful comparable information, that data has been presented on an adjusted basis, i.e. restated to reflect in particular the depreciation and amortization expense arising on the acquisition of new entities.
+-------------------------+-------------------+-----------+-----------+
|(in millions of euros) | H1 2009 published| 2009 | H1 2009 |
+-------------------------+-------------------+-----------+-----------+
| | | published| pro forma|
+-------------------------+-------------------+-----------+-----------+
|Revenue | 317,7| 700,7| 341,2|
+-------------------------+-------------------+-----------+-----------+
|Adjusted Gross Profit | 124,7| 270,9| 134,9|
+-------------------------+-------------------+-----------+-----------+
|Adjusted Operating | -98,0| -190,8| -105,3|
|Expenses | | | |
+-------------------------+-------------------+-----------+-----------+
|Adjusted Operating Profit| 26,7| 80,1| 29,5|
|from ordinary activities | | | |
+-------------------------+-------------------+-----------+-----------+
|Operating Profit from | 17,4| 60,8| 15,7|
|ordinary activities | | | |
+-------------------------+-------------------+-----------+-----------+
+-------------------------+-----------+
|(in millions of euros) | 2009 |
+-------------------------+-----------+
| | pro forma|
+-------------------------+-----------+
|Revenue | 761,9|
+-------------------------+-----------+
|Adjusted Gross Profit | 301,6|
+-------------------------+-----------+
|Adjusted Operating | -207,6|
|Expenses | |
+-------------------------+-----------+
|Adjusted Operating Profit| 93,9|
|from ordinary activities | |
+-------------------------+-----------+
|Operating Profit from | 66,4|
|ordinary activities | |
+-------------------------+-----------+
[1] EBITDA: profit from ordinary activities before amortization , depreciation & provisions and before share based payment expenses
This information is provided by HUGIN
