Download the presentation - Ingenico

Morgan Stanley TMT Conference
Barcelona – November 17 2011

Disclaimer
This presentation contains forward-looking statements. The trends and objectives given
in this presentation 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 statements are by their nature subject to risks and uncertainties.
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.
2

Ingenico: a world leader in POS Terminals
2010 sales: €907M
World market share (H1’2011): 38%*
� N 1 in Europe
� N 1 in China
� N 1 in Asia-Australia
� N 1 in Brazil
� N 2 in North America
Installed base: >15 million POS worldwide
An international group
� First customer: Brazilian
� First nationality of employees: Chinese
� First country by revenue: Germany
* Estimated market share based on published revenue
3

Ingenico: an experienced and focus management team
CEO: Philippe Lazare
� Board member since March 2006
� CEO since July 2007
� Chairman & CEO since January 2010
Main achievements:
� Achievement of fabless model
� Acquisition of Sagem Monetel: best in class R&D
� Acquisition of Landi who became n 1 in China
� Structured the group in Regional Business Units with managing directors
responsible for full P&L
� Positioned Ingenico in the Transactions field : acquisition of easycash, leading PSP
in Germany, internationalization of its business model is underway
Seasoned management team from high tech and payment companies (Paypal,
Mastercard, Experian, Gemalto, …)
4

Ingenico: providing secured solutions through
innovative portfolio of terminals
Renewed range of payment terminals in 20 months
� Telium2 OS as cost & performance differentiating factor
� A gateway for services: NFC, color screen, multimedia as a standard
A fully renewed terminal range covering all market segments
� Retail, banking & vertical markets
New solutions to address new markets
� iSMP: Turn iPod touch® & iPhone® into EMV
secure mobility payment solution
� WebPOS: Shop-in-a-box services offer for merchants
� iPA: bridging PDA & payment in a single device
� iWL touch 280-350: The 1st mobile payment solution
designed for merchants’ value-added services
5

Number of POS terminals per ‘000 people
40
35
30
25
20
15
10
5
0
Source: Euromonitor / IMF
Ingenico: a strong growth potential
in emerging markets
2005 2006 2007 2008 2009 2010 Average - mature payment countries Average - BRIC
Source: Euromonitor / IMF
Mature Payment Countries
avg. 24 terminals p.1,000 inh.
6
Emerging Countries
avg. 2 terminals p. 1,000 inh.
Emerging markets*: 43% of H1’11
revenue, vs.37% in H1’10
Emerging markets & urbanization drive
growth
Increased middle class with access to
financial services
Governments pushing for tax collection
Micro credit / Financial inclusion
(ex: Fino in India)
*Emerging markets are Latin America, Asia-Pacific and EEMEA

Ingenico: providing one-stop-shop solutions to merchants
End-to-end payment & VAS solutions
� easycash: n 1 in Germany, managing solutions for merchants, starting from
the POS terminal (>275k connected POS)
� Deploying easycash business model in other European countries
Solutions on a multi-country scale
� AXIS: Worldwide cross-border & front-end processing solutions
� Gaining traction with major counterparts and on a multi-country scale
Cross-channels solutions
� Internet: e-payment services deployed
� First customers validating the convergence off line/on line: Veolia, JC Decaux
� Mobile: NFC compliant, iSMP, Mobile Service Provider (48% in Roam-data)
Transactions: 13% of 2010 sales => 25% of 2013 sales
7

Ingenico: a growing worldwide player
in the payment ecosystem
In the payment ecosystem, payment terminal will remain a key element
� Continuous shift towards card electronic payment
� Gateway to cash usage moving towards dematerialized services (top-up, air time, bill payment,…)
� New shopping & payment experience driving shift towards combined Physical + Online +
Mobile payments
Merchant integrated offer requires expertise in payment terminals,
a complex ecosystem with high barriers to entry
Ingenico key assets to provide one-stop-shop solutions
� 30 years of experience & expertise
� Know-how of certification & security constraints
� Portfolio of >1,000 payment & VAS applications
� Global payment infrastructure
� PSP credibility & experience (easycash)
No other player has equivalent expertise in payment ecosystem
8

Ingenico: a global partner of banks and retailers
Major financial institutions &
merchants are using our
products and solutions over
the world (in >100 countries)
� Dual vendor policy
Supporting new entrants
in the Payment ecosystem
� Google, Apple
Operating services for more
than 160k small merchants
9

Ingenico: a successful listing story
Market capitalization: ~€1.5bn
Share price evolution
� Overperformed CAC by 71% in 2010
� Overperformed CAC by 28% since January
Source: Bloomberg. Share price from Jan 1 2010 to November 9 2011
10
Shareholder structure
as of November 1 2011
Including:
-Fidelity (FMR LLC): 5.6%
-Jupiter AM: 5.1%
-Concert Consellior: 3.5%
-Allianz: 2.0%

Published revenue in m€
Ingenico: a robust business model
Revenue: x2 since 2006
EBITDA margin increase by ≥ +330 bps
since 2009
506
*At constant exchange rates
568
728
15.9%
701
15.0%
Moving to Telium2 platform
11
907
18.3%
>985
*
≥18.3%
2006 2007 2008 2009 2010 2011
Guidance
Moving to fabless model
March
Dec
Merger with Acquisition of
Sagem Monetel easycash
EBITDA (in % of revenue)

Ingenico: towards a new company profile
with increased recurring revenue
Leveraging installed POS base
of >15 millions to generate
recurring maintenance &
services revenue
Increased revenue from
Transactions
18%
2008 2009 2010 H1 2011 2013
Target
Transactions Maintenance revenues
Combination of growth & increased recurring revenue => more recurring profitability
12
22%
4%
28%
13%
32%
in H1’11
17%
40%
25%
Revenues from maintenance, services &
transactions (in % of published revenue)

A sustained profitable growth and operating leverage
in 2010:
� Like-for-like growth: +10% vs. 2009
� EBITDA:18.3% (+280 bpts)
� Strong cash conversion* improvement: 62% vs. 56% in 2009
in H1’2011:
Ingenico: a sustainable profitability
� Like-for-like growth: +6% vs. H1 2010pf
� EBITDA: +100 bpts vs. H1 2010pf
2011: confirming profitable growth while investing
� Like-for-like growth: ≥+6.3%
� EBITDA ≥18.3% vs. 18% in 2010pf
Proven track record in integrating new entities
Balanced presence between emerging and mature payment markets
*Cash flow before acquisitions and dividends
13

Managing financial
flexibility
Generating operating
cash flow
Focused acquisitions
Ingenico: financial strength and flexibility
to execute strategy
Robust balance sheet : shareholder equity at €564m*
Raised €250m convertible bonds in March2011
Net debt of €94.5m, x0.5 EBITDA**
150m€ of undrawn bank facility
2010 Cash conversion: 62%
Low capital intensive model: capex at 20-25m€ p.a
Balanced revenue structure (geomix, increased contribution of
recurring revenue from Transactions)
Maintain leadership on POS market
Provide end-to-end solutions cross-channels and on a global scale to
leverage the transactions management business
Differentiate and penetrate vertical markets with VAS provided as
white label approach and/or own brand
Ready to seize further acquisition opportunities to be a key player
in the payment industry beyond leadership in POS
*As of June 30 2011
** Last Twelve Months
14

Key focused strategy
Technological leadership
Ingenico investment case
Well positioned in a growing market
Continuous shift towards electronic payments
Structural changes in the payment ecosystem generating opportunities
for enlarged leadership
Leveraging key assets to expand margins
Track record of profitable growth & financial strength
15

Appendix
September 13 2011

POS: Point of Sale / e-payment terminal
VAS: Value-added Services
Glossary
SEPA: Single Euro Payment Area. 27 European Union members, Island, Liechtenstein, Norway and
Switzerland
Acquirer: financial institution responsible for the underlying transactions (authorization, clearing
& settlement) with its merchant-customers
Issuer: Cardholder’s bank
Processor: a technical operator providing infrastructure to support acquirer functions, such as
authorization, clearing and settlement services. In practice, acquirers outsourced merchant
acquiring services to processor
PSP: A Payment Service Provider is a company performing all or part of electronic payment
services and potentially including settlement as per Payment Service Directive in Europe. In the
US, settlement is always performed by financial institutions
Scheme: provides a payments mechanism through the existing (debit or credit) card payment
infrastructure
ISO: Independent Sales Offices
17

Typical payment transaction flow
18

Value
chain
Revenue
type
easycash: a major step to move up the value chain
Hardware
Terminal
services
Connectivity Preprocessing
Market POS terminal market
Transaction services Financial
institutions
mostly
VAS
Ingenico
entities
One off
Monthly
fee
Ingenico mostly provides POS
terminals to either directly (large
retailers) or indirectly (banks,
distributors)
Revenue business model mostly
relies on one off fees
Merchant Services Processor Acquirer VAS provider
Monthly
fee
Monthly
fee
19
Processing
Fixed fee
per
transaction
Settlement
% of
transaction
in value
Easycash operates payment & VAS services for merchants
Value-added
Services
Monthly fee+
Fixed charge /
transaction
Revenue business model relies on recurring revenue through a per transaction payment type of business

easycash business model at a glance
20

easycash: business model profile
21