INGENICO: 2014: Group transformation in action
(Thomson Reuters ONE) -
Press release
Paris, February 18, 2015
2014: Group transformation in action
Outstanding operating and financial performance
* Annual revenue of ?1.607 billion driven by double-digit growth across all
regions and all business segments (up 19%[1])
* EBITDA[2] at a historic high - 23.4% of revenue
* Profit attributable to Ingenico S.A. shareholders up 43% to ?172 million[3]
* Free cash flow up 44% to ?255 million
* Proposed dividend of ?1, up 25%
Acceleration of the Group transformation strategy
* New brand platform reflecting the Group's evolving profile and ambition
* Acquisition of GlobalCollect, leading full-service e-payment provider
* At the cutting edge of development and innovation with Telium Tetra and
Ingenico Labs
2015 guidance: sustained profitable growth
* Organic growth of c. 10% on a like-for-like basis at constant exchange rates
* EBITDA margin of c. 21%, including in particular GlobalCollect contribution
on a full year basis
Ingenico Group (Euronext: FR0000125346 - ING) announced today its fourth-quarter
2014 revenue and its audited financial statements for the year ended December
31, 2014.
Philippe Lazare, the Chairman and CEO of Ingenico Group, commented: "In 2014,
our strategy yielded excellent results, generating outstanding operating and
financial performance. Our multi-local footprint, combined with the breadth of
our integrated payment solutions offer and our innovation capability, delivered
double-digit growth across all regions and all business segments in which we
operate.
This past year also saw the acceleration of our transformation strategy, as
illustrated by our new brand platform that highlights Ingenico Group's presence
across the entire payment value chain and our unique position in the industry.
The combination between Ogone and GlobalCollect - whose acquisition we finalized
in the fourth quarter - has given us the opportunity to establish a global e-
payment player, thus extending our in-store payment services leadership to the
e-commerce ecosystem. Our aim is to continue to simplify payment for our
customers around the world and across all channels: in-store, online and mobile.
With a new organization in place, we feel confident about our ambition for
profitable growth in 2015."
2014 results
Key figures
To facilitate assessment of the Group's performance, the key consolidated
financial figures for 2014 are compared here with pro forma figures and
adjusted, with effect from January 1, 2013, to reflect the deconsolidation of
TransferTo carried out in 2013. The 2013 pro forma data also reflect the
reclassification of indirect R&D costs in the Payment Services business as
operating expenses to achieve uniform accounting for R&D costs throughout the
Group. See Exhibit 1.
(in millions of |2014* | 2013 2013 | FY 2014 Change/ |
euros) | | | |
| |pro forma3 reported| |
---------------------+------+-------------------+---------------+--------------+
| | | 2013 pro |2013 reported|
| | | forma3 | |
---------------------+------+-------------------+---------------+--------------+
Revenue |1,607 | 1,301 1,371 | +19%[1] | +17% |
| | | | |
Adjusted gross | 735 | 604 600 | +22% | +23% |
profit | | | | |
| | | | |
As a % of revenue |45.7% | 46.4% 43.8% | -70bpts | +190bpts |
| | | | |
Adjusted operating |(411) | (369) (361) | +11% | +14% |
expenses | | | | |
| | | | |
As a % of revenue |-25.6%| -28.3% -26.4% | -270 bpts | - 80 bpts |
---------------------+------+-------------------+---------------+--------------+
Profit from ordinary| | 235 | +38% | +36% |
activities, adjusted| 324 | 239 | | |
(EBIT) | | | | |
| | | | |
As a % of revenue |20.2% | 18.1% 17.4% | +210bpts | +280 bpts |
---------------------+------+-------------------+---------------+--------------+
Profit from | 273 | 192 187 | +42% | +46% |
operating activities| | | | |
---------------------+------+-------------------+---------------+--------------+
Net profit | 172 | 119 113 | +45% | +52% |
---------------------+------+-------------------+---------------+--------------+
Net profit | 172 | 120 114 | +43% | +51% |
attributable to | | | | |
shareholders | | | | |
---------------------+------+-------------------+---------------+--------------+
EBITDA | 377 | 276 279 | +37% | +35% |
| | | | |
As a % of revenue |23.4% | 21.2% 20.3% |+220bpts |+310bpts |
---------------------+------+-------------------+---------------+--------------+
|
---------------------+------+-------------------+---------------+--------------+
Free cash flow | 255 | - 177 | | +44% |
---------------------+------+-------------------+---------------+--------------+
Net debt | 764 | - 296 | | +158% |
| | | | |
Equity attributable |1,076 | - 767 | | +40% |
to shareholders | | | | |
---------------------+------+-------------------+---------------+--------------+
*Fiscal year 2014 includes the contribution of GlobalCollect as of October
1, 2014.
The key 2014 financial figures impacted by the contribution of GlobalCollect are
presented in Exhibit 3.
Revenue up 19%
+---------------------+---------------------------+----------------------------+
| | FY 2014 | Q4 2014 |
| +-----+---------------------+------+---------------------+
| | M? | Change 2014/2013 | M? | Change 2014/2013 |
| | +------------+--------+ +------------+--------+
| | |Comparable*1|Reported| |Comparable*1|Reported|
+---------------------+-----+------------+--------+------+------------+--------+
|Europe-SEPA | 581 | 10% | -2%** | 163 | 15% | 0%** |
+---------------------+-----+------------+--------+------+------------+--------+
|Asia Pacific | 291 | 21% | 21% | 84 | 17% | 24% |
+---------------------+-----+------------+--------+------+------------+--------+
|Latin America | 204 | 17% | 8% | 61 | 68% | 65% |
+---------------------+-----+------------+--------+------+------------+--------+
|North America | 177 | 47% | 43% | 52 | 17% | 24% |
+---------------------+-----+------------+--------+------+------------+--------+
|EMEA | 247 | 23% | 106% | 64 | 11% | 94% |
| | | | | | | |
|Central Operations***| 107 | 48% | 3% |100***| 37% | 317% |
+---------------------+-----+------------+--------+------+------------+--------+
|Total |1,607| 19% | 17% | 524 | 21% | 43% |
+---------------------+-----+------------+--------+------+------------+--------+
* Reflecting the new regional breakdown and the disposal of TransferTo as of
January 1, 2013
** Based on 2013 revenue including the contribution of Italy and Eastern Europe
in Europe-SEPA
*** Including TransferTo disposal as of December 1st, 2013 and GlobalCollect
acquisition as of October 1st, 2014 within Central Operations
Performance in the fourth quarter
In the fourth quarter of 2014, revenue totaled ?524 million, representing a 43%
increase on a reported basis and included a positive foreign exchange impact of
?1 million and a ?95 million contribution from GlobalCollect. Total revenue
included ?356 million generated by the Payment Terminal business and ?168
million generated by Payment Services.
Performance by business segment
On a comparable basis(1), revenue was 21% above the Q4 2013 figure. The 20%
growth achieved in Payment Terminals reflected stronger-than-expected global
sales activity, particularly in the United States, Brazil and China, with
increased traction of technologically advanced solutions such as EMV, NFC, mPOS
mobile checkout. Growth in Payment Services was up 23%, driven by solid sales
momentum in all segments, particularly in sales of acquiring solutions in
Germany.
During Q4, GlobalCollect achieved a stronger 13% organic growth. With the
company now connected to UnionPay International (a subsidiary of China
UnionPay), its customers can reach out to Chinese consumers via their e-commerce
website.
Including GlobalCollect's contribution, Payment Services would have achieved
organic growth of 18% and accounted for 32% of consolidated revenue, with 21%
generated by e-payments (up 13 %).
Performance by region
During the quarter, the various regions globally delivered higher-than-expected
growth.
Revenue growth accelerated in Europe-SEPA, thanks to strong business dynamic
across all segments. Group delivered large payment terminal orders to banks,
particularly in France, and to large retailers in Germany. At the same time, the
Group stepped up deployment of its payment service strategy across all channels.
With more than 335 million transactions processed in December 2014, Ingenico
Group recorded strong transaction volume growth in Europe-SEPA, both in-store
(up 14 %) and online (up 25 %).
At 68 %, the Group's higher-than-expected growth in Latin America was
attributable to deliveries of large orders for portable terminals and mPOS
solutions in Brazil, and further enhanced by a favorable basis of comparison
with Q4 2013.
Sales momentum likewise remained strong in Asia-Pacific (up 17 %) - above all in
China and Indonesia - and in North America (up 17 %), where the Group continued
to reap the benefits of vigorous growth across all U.S. market segments (greater
than 50 %). Moving beyond Tier 1 retailers, Ingenico Group stepped up deployment
of its EMV and NFC solutions for independent merchants following the launch of
ApplePay in the US market.
Lastly, the Group has continued to enjoy strong 11% growth in EMEA, supported by
the spread of contactless solutions in Central Europe, Poland and Turkey, its
dense distribution network and its direct access to the Russian market.
Performance for the year
In 2014, revenue totaled ?1,607 million, representing a 17% increase on a
reported basis, including a negative foreign exchange impact of ?37 million and
a ?95 million contribution from GlobalCollect on the fourth quarter. Total
revenue included ?1,259 million generated by the Payment Terminal business and
?348 million generated by Payment Services.
Performance by business segment
On a comparable basis(1), revenue growth was 19 % higher than in 2013, due to
double-digit growth in both segments. The 20% growth recorded in Payment
Terminals reflected the Group's multi-local footprint and the accelerated
deployment of EMV, NFC (contactless) and mPOS solutions.
Revenue of Payment Services (excluding GlobalCollect) showed a 6-point increase
to 17 %, due to strong momentum in online payment (with the former Ogone growing
20 %) and the up-selling of new services to Ingenico Payment Services customers
(for example, acquiring services in Germany).
Including GlobalCollect's contribution (9% organic growth) for the fiscal year,
Payment Services would have achieved organic growth of 13% and accounted for
32% of consolidated revenue, with 22% generated by e- payments (?397 million
growing organically by 11%).
Performance by region
The Group recorded double-digit organic growth in all regions on a comparable
basis(1). In Europe-SEPA, Ingenico Group consolidated its payment terminal
market leadership, while further deploying its payment services strategy
combining in-store, online and mobile solutions.
As anticipated, the Group has continued to record a strong growth in North
America (up 47%) based on its active involvement with EMV and NFC solutions
deployment in the United States (up 50%) and delivery ahead of schedule of a
large order in Canada.
The Group has also continued to expand strongly in the emerging markets, with
double-digit revenue growth driven by the deployment of new technology (EMV, NFC
and mPOS solutions). Ingenico Group has confirmed its leading position in its
key markets, particularly in Brazil and China, which accounted for one third of
the total group terminal sales volume in 2014. Lastly, strong growth also
continued in other emerging markets through greater direct presence
(particularly in Indonesia, Mexico and Russia) and an increasingly dense
commercial network, above all in the EMEA region (up 23%).
Adjusted gross margin high at 45.7%
In 2014, adjusted gross profit for the year rose to ?735 million, including a
?31 million contribution from GlobalCollect in the fourth quarter.
Excluding GlobalCollect's contribution in Q4, gross profit for the full year
would have been ?704 million, a 17% increase compared with 2013 pro forma
figure.(3) Gross margin was equal to 46.5% of revenue, up 10 basis points
compared to the 2013 pro forma basis.(3)
This performance is mainly driven by a 90 basis-point increase in gross margin
in Payment Terminals (equipment, services and maintenance) to a historic high of
47%, supported by a combination of outstanding growth in this segment and
procurement cost optimization.
Excluding GlobalCollect's contribution in the fourth quarter, 2014 gross margin
in Payment Services would be equal to 44.3% of revenue, or 380 basis points
lower than the 2013 pro forma basis(3), notably due to the Group's product mix
and the dilutive impact of acquiring services in Germany.
Including GlobalCollect's contribution, full year 2014 adjusted gross profit
would have amounted to ?807 million, equal to 43.7% of revenue.
Operating expenses under control at 25.6% of revenue
Adjusted operating expenses in 2014 totaled ?411 million, including a ?9 million
contribution from GlobalCollect in the fourth quarter.
Excluding the impact of GlobalCollect in Q4, adjusted operating expenses rose
9% in 2014 to ?403 million, up from ?369 million in 2013 on a pro forma
basis.(3) This increase was due primarily to the higher sales, general and
administrative expenses that have accompanied the Group's expansion. Operating
expenses represented 26.6% of revenue, or 170 basis points lower than the 2013
pro forma figure.(3) Ingenico Group has continued to invest in future sources of
growth, above all in R&D, with the rollout of its new Telium Tetra platform and
its evolving online platforms.
Including GlobalCollect's contribution, adjusted operating expenses for the full
year would have amounted to ?446 million, representing 24.2% of revenue.
EBITDA at a historic high - 23.4% of revenue
In 2014, EBITDA stood at ?377 million, including a ?24 million contribution from
GlobalCollect in the fourth quarter.
Excluding the impact of GlobalCollect in Q4, EBITDA for the full year increased
by 28% to ?353 million, up from ?276 million in 2013 on a pro forma basis(3).
The EBITDA margin -a historic high- increased by 220 basis points to 23.4 % of
revenue.
GlobalCollect's EBITDA margin in the fourth quarter was equal to 25% of revenue.
This exceptionally high result reflected the impact of the US dollar
appreciation, foreign exchange gains at a time of high volatility of emerging
market currencies, as well as reversals of accruals. On a full-year basis,
GlobalCollect's EBITDA totaled ?62 million, representing 18% of revenue.
Including GlobalCollect's contribution for the full year, the Group's EBITDA
would have amounted to ?415 million, equal to 22.5% of consolidated revenue.
Adjusted EBIT margin of 20.2%
In 2014, adjusted EBIT stood at ?324 million, including a ?23 million
contribution from GlobalCollect in the fourth quarter.
Excluding the impact of GlobalCollect in Q4, adjusted EBIT for the full year
increased by 28% to ?301 million, up from ?235 million in 2013 on a pro forma
basis.(3) The EBIT margin was 19.9% of revenue, up 180 basis points.
Including GlobalCollect's contribution, Group's EBIT for the full year would
have amounted to ?361 million, equal to 19.6% of consolidated revenue.
Profit from operations up 42%
Other operating income and expenses represented a net expense of -?18 million,
up from - ?14 million in 2013 on a pro forma basis(3), with increased expenses
related to the acquisition and integration of new entities.
Purchase Price Allocation expenses held fairly steady at ?32 million (including
?6 million related to GlobalCollect in Q4), versus ?30 million in 2013.
After accounting for Purchase Price Allocation and other operating income and
expenses, profit from operations totaled ?273 million, a 42% increase compared
with the ?192 million pro forma figure for 2013.(3) Operating margin increased
by 220 basis points to 17% of revenue.
Profit attributable to Ingenico S.A. shareholders up 43%
In 2014, the net profit attributable to Ingenico S.A. shareholders grew to ?172
million, up sharply from the 2013 pro forma(3) basis of ?120 million.
The net finance costs included in this result remain relatively flat at -?19.5
million, despite a sharp increase in net debt related to issuance of a fixed
rate bond of ?450 million maturing in 2021 and a new syndicated line of ?600
million.
Income tax expense rose from ?56 million(3) in 2013 to ?81 million. As of the
December 31, 2014 reporting date, the effective tax rate was down 130 basis
points to 31.8%, due mainly to the evolution of the geographical mix.
Proposed dividend of ?1 per share, up 25%
In line with the Group's dividend policy, the Board of Directors will be
proposing that the shareholders vote at their Annual Meeting of May 6, 2015 to
distribute a dividend of ?1 per share, representing a payout ratio of 35%.
Dividends will be payable in cash or in shares, at the option of the holder.
A stronger financial position
Total equity attributable to Ingenico S.A. shareholders increased to ?1.076
billion.
In 2014, Ingenico Group's operations generated free cash flow of ?255 million,
up from ?177 million in 2013. This improvement is mainly attributable to the
increase in EBITDA and continued control over working capital, which showed a
?40 million surplus despite significant increase of Group's business activity
(up 19%). At the same time, Ingenico Group stepped up its investments. Investing
activity net of disposals totaled ?51 million, compared with ?40 million in
2013, as the Group rolled out its new integrated global Telium Tetra offer and
upgraded its online platforms.
The main cash outflows in 2014 totaled ?722 million, up from ?398 million in
2013. The ?820 million outflow for the GlobalCollect acquisition was the primary
contributor.
Accordingly, as of December 31, 2014, the Group's net debt stood at ?764
million, up from ?296 million as of December 31, 2013. OCEANE bonds constituted
a large proportion of that total. Moreover, most of the outstanding bonds were
redeemed early on January 15, 2015, generating the issuance of a total of
6,770,902 shares.
After accounting for this early redemption, the Group's net debt was ?653
million, while the net debt-to-equity ratio stood at 55% and the net debt-to-
EBITDA ratio was 1.7x (or 1.6x including GlobalCollect's contribution on a full-
year basis).
A transformation strategy in action
A new brand platform / Breadth and depth of the Group's integrated offer
In order to reflect its evolution from a payment terminals provider to the
leader in seamless payment, Ingenico now operates under the dedicated corporate
brand name "Ingenico Group." Encompassing three brand names - Smart Terminals,
Payment Services and Mobile Solutions - the new brand architecture showcases the
Group's brand promise to provide trusted, seamless, secure solutions whatever
the channel, be it in-store, online or mobile, in today's changing payment
landscape.
Integration of GlobalCollect / Creation of an e-payments business unit
Completed in September 2014, the acquisition of GlobalCollect represents a
significant step in the implementation of Ingenico Group's transformation
strategy and its accelerated shift to a payment services-based business model.
As a result, the Group's online ("card-non-present") payment transaction
business, which reached European scope through the acquisition of Ogone in
2013, has been extended to include worldwide fully integrated e-payments. These
two entities have been merged into a single e-payments business unit with a
common culture and workforce, so that they can leverage the complementarity of
their offers. This will be particularly valuable in assisting Ogone customers
with the challenge of achieving international reach.
Headed by Stephen Büchner, the new business unit will also help accelerate the
GlobalCollect integration process and expand the Group's online payment business
around the world.
Innovation / The launch of numerous initiatives
Innovation is a core component of the Group's strategy of supporting merchants
in a changing commerce environment through initiatives focused on usage.
In addition to business-related innovations - such as Telium Tetra - the Group
has announced its plan to establish Ingenico Labs, an advanced R&D unit
dedicated to next-generation solutions. The purpose is to strengthen the
capacity for innovation across the Group so that new solutions and services can
be tested more swiftly in real-world conditions and then developed to keep pace
with emerging payment habits.
In 2014, for example, Ingenico Group developed France's first "one-click"
donation process and also the first contactless donation with screen
advertising.
At the same time, Ingenico Group is partnering with venture capital firm Partech
with the launch of Partech Growth, a fund providing late-stage funding to tech
and digital startups. The aim of this investment is to foster the sharing of
ideas, experience and expertise. It is also likely to lead to new partnerships.
Executive Committee appointments / Encompassing the Group's new scope
In January 2015, Ingenico Group announced new appointments to its Executive
Committee to reflect the evolution of its business scope and the retirement of
Patrice Durand. Now composed of fourteen members - three of them from
GlobalCollect - the Executive Committee has operational responsibilities (e-
payment, platforms, smart terminals), geographic responsibilities (Europe &
Africa; Asia-Pacific & Middle East; North America; Latin America) and transverse
responsibilities (Innovation; Finance; Strategy; Human Resources and Risks). The
Group is now organized into four regions to capitalize on specific knowledge of
local payment issues and strong customer relationships.
Lastly, Pierre-Antoine Vacheron has been appointed EVP, Finance, Strategy &
Performance. He will be in charge of driving the transformation of the Group and
maintaining growth dynamics.
2015 outlook
With its unique positioning in a structurally growing electronic payment market,
Ingenico Group has entered 2015 with full confidence.
In this early portion of the year, the business trend is encouraging. After the
outstanding performance of its Payment Terminals business in 2014 (20% organic
growth), the Group expects revenue to grow by roughly 10% over the pro forma
revenue figure for 2014, which is ?1.846 billion (including the contribution of
GlobalCollect, whose acquisition was completed on September 30, 2014) on a
comparable basis at constant exchange rates.
In 2015, the Group also expects its EBITDA margin to be around 21%, reflecting
the evolution of its product and geographical mix and ongoing investment.
Finally, the Group would like to point out that, after GlobalCollect
acquisition, 2016 revenue target is now expected over ?2.2 billion[4], with an
EBITDA margin of more than 20%.
Conference call
A conference call to discuss Ingenico Group's FY 2014 results will be held on
February 18, 2015 at 6.00p.m., Paris time.
Dial-in number: 01 70 99 32 08 (French domestic), +1 334 323 6201 (for the
United States) and
+44 (0)20 7162 0077 (international).
The presentation will also be available on www.ingenico.com/finance.
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 Group. These data, assumptions and estimates
may change or be amended as a result of uncertainties connected in particular
with the performance of Ingenico Group and its subsidiaries. These statements
are by their nature subject to risks and uncertainties as described in Ingenico
Group registration document ("document de reference"). These forward-looking
statements in no case constitute a guarantee of future performance, and involve
risks and uncertainties. Actual performance may differ materially from that
expressed or suggested in the forward-looking statements. Ingenico Group
therefore makes no firm commitment on the realization of the growth objectives
shown in this release. Ingenico Group 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.
About Ingenico Group
Ingenico Group (Euronext: FR0000125346 - ING) is the global leader in seamless
payment, providing smart, trusted and secure solutions to empower commerce
across all channels, in-store, online and mobile. With the world's largest
payment acceptance network, we deliver secure payment solutions with a local,
national and international scope. We are the trusted world-class partner for
financial institutions and retailers, from small merchants to several of the
world's best known global brands. Our solutions enable merchants to simplify
payment and deliver their brand promise.
Learn more at www.ingenico.com twitter.com/ingenico
Contacts / Ingenico Group
Investors & Communication Communication Investors
Catherine Blanchet Coba Taillefer Caroline Alamy
VP IR & Communication Corporate External Communications Investor Relations
catherine.blanchet(at)ingenico.com Manager caroline.alamy(at)ingenico.com
(T) / +33 1 58 01 85 68 coba.taillefer(at)ingenico.com (T) / +33 1 58 01 85 09
(T) / +33 1 58 01 89 62
Next events
Conference call on FY14 results: February 18 2015 at 6pm (Paris)
Q1'15 revenue: April 29, 2015
Annual General Meeting: May 6, 2015
EXHIBIT 1
Basis for preparing the 2014 accounts
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 the depreciation and amortization expenses arising on the
acquisition of new entities. Pursuant to IFRS3R, the purchase price for new
entities is allocated to the identifiable assets acquired and subsequently
amortized over specified periods.
The main financial data for 2014 is discussed on an adjusted basis, i.e., before
Purchase Price Allocation (PPA); see Exhibit 4.
(in millions of euros) 2013 pro forma before |reclassification| 2013 pro |
reclassification | | forma3 |
------------------------------------------------+----------------+-------------+
Adjusted gross profit 500 | - | 500 |
/ Terminal | | |
| | |
As a of revenue 46.1% | | 46.1% |
| | |
Adjusted gross profit 93 | 11 | 104 |
/ Payment Services | | |
| | |
As a of revenue 43.0% | | 48.0% |
------------------------------------------------+----------------+-------------+
Adjusted gross profit 593 | 11 | 604 |
| | |
As a of revenue 45.6% | | 46.4% |
------------------------------------------------+----------------+-------------+
Research & Development (94) | (11) | (105) |
| | |
Sales & Marketing (119) | - | (119) |
| | |
General & (145) | - | (145) |
Administrative | | |
------------------------------------------------+----------------+-------------+
Adjusted operating (358) | (11) | (369) |
expenses | | |
| | |
As a of revenue -27.5% | | -28.3% |
------------------------------------------------+----------------+-------------+
To facilitate assessment of the Group's performance, the key consolidated
financial figures for 2014 are compared here with pro forma figures and
adjusted, with effect from January 1, 2013 ("pro forma 2013"), to reflect the
deconsolidation of TransferTo, carried out in 2013, and the reorganization of
the Group's operating segments. The 2013 pro forma data also reflect the
reclassification of specific R&D costs related to the Group's Services platforms
as operating expenses to achieve uniform accounting for R&D costs throughout the
Group.
EBITDA is not an accounting term; it is a financial metric defined here as
profit from ordinary activities before amortization, depreciation and provisions
and before expenses of shares distributed to employees and officers (the
reconciliation of profit from ordinary operations to EBITDA is available in
Exhibit4).
EBIT is equal to profit from ordinary activities, adjusted for amortization of
the purchase price for newly acquired entities allocated to the identifiable
assets acquired.
Free cash flow is equal to EBITDA less: cash and other operating income and
expenses, changes in working capital requirements, investing activities net of
disposals, financial expenses net of financial income and tax paid.
EXHIBIT 2:
Income statement, balance sheet, cash flow statement
1. CONSOLIDATED INCOME STATEMENT (AUDITED)
(in millions of euros) 2014 2013
Revenue 1 607 1 371
Cost of sales (877) (771)
Gross profit 730 600
Distribution and marketing costs (157) (143)
Research and development expenses (115) (102)
Administrative expenses (166) (146)
Profit from ordinary activities 291 208
Other operating income 1 1
Other operating expenses (19) (22)
Profit from operating activities 273 187
Finance income 48 36
Finance costs (68) (54)
Net finance costs (20) (18)
Share of profit of equity-accounted investees (1) (0)
Profit before income tax 252 169
Income tax expense (81) (56)
Profit for the period 113
Attributable to:
- owners of Ingenico SA 172 114
- non-controlling interests 0 (1)
EARNINGS PER SHARE (in euros)
Net earnings
- Basic earnings per share 3.16 2.17
- Diluted earnings per share 2.94 2.07
2. CONSOLIDATED BALANCE SHEETS (AUDITED)
ASSETS
(in millions of euros) 2014 2013
--------------------------------------------------------------------
NON-CURRENT ASSETS
Goodwill 1 343 849
Other intangible assets 545 180
Property, plant and equipment 52 39
Investments in equity-accounted investees 14 14
Financial assets 7 9
Deferred tax assets 41 34
Other non-current assets 28 25
TOTAL NON-CURRENT ASSETS 2 028 1 150
CURRENT ASSETS
Inventories 118 102
Trade and related receivables 426 349
Scheme debtors 2 -
Other current assets 35 30
Current tax receivables 9 7
Derivative financial instruments 11 1
Merchant float 308 -
Cash and cash equivalents 426 352
Assets classified as held for sale - -
TOTAL CURRENT ASSETS 1 337 841
--------------------------------------------------------------------
TOTAL ASSETS 3 365 1 991
--------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------
Share capital 57 53
Share premium account 575 426
Retained earnings and other reserves 417 298
Translation reserve 24 (11)
EQUITY ATTRIBUTABLE TO INGENICO S.A. SHAREHOLDERS 1 074 765
Non-controlling interests 2 1
--------------------------------------------------------------------
TOTAL EQUITY 1 076 767
--------------------------------------------------------------------
NON-CURRENT LIABILITIES
Long-term loans and borrowings 1 036 560
Provisions for retirement benefit obligations 18 11
Other provisions 25 16
Deferred tax liabilities 119 49
Other non-current liabilities 36 25
TOTAL NON-CURRENT LIABILITIES 1 234 660
CURRENT LIABILITIES
Short-term loans and borrowings 154 88
Other provisions 18 15
Trade and related payables 413 328
Merchant creditors 310 -
Other current liabilities 126 111
Current tax liabilities 29 18
Derivative financial instruments 4 4
Liabilities classified as held for sale - -
TOTAL CURRENT LIABILITIES 1 055 564
--------------------------------------------------------------------
TOTAL LIABILITIES 2 289 1 224
--------------------------------------------------------------------
--------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 3 365 1 991
--------------------------------------------------------------------
3. CONSOLIDATED CASH FLOW STATEMENTS (AUDITED)
(in millions of euros) 2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year 172 113
Adjustments for:
· Share of profit of equity-accounted investees 1 0
· Income tax expense / (income) 81 56
· Depreciation, amortization and provisions 79 71
· Change in fair value 4 3
· Gains / (losses) on disposal of assets 1 2
· Net interest costs 15 17
Share-based payment expense 10 7
Interest paid (16) (16)
Income tax paid (93) (82)
CASH FLOWS FROM OPERATING ACTIVITIES BEFORE CHANGE IN NET WORKING 255 171
CAPITAL
Change in working capital
· Inventories (10) (5)
· Trade and other receivables (28) (37)
· Trade and other payables 77 81
CHANGE IN NET WORKING CAPITAL 40 38
NET CASH FLOW FROM OPERATING ACTIVITIES 295 209
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of tangible and intangible fixed assets (52) (40)
Proceeds from sale of tangible and intangible fixed assets 1 1
Acquisition of subsidiaries, net of cash acquired (800) (368)
Disposal of subsidiaries, net of cash disposed of 6 9
Loans and advances granted and other financial assets (1) (2)
Loan repayments received 3 2
Interest received 10 7
NET CASH FLOW FROM (USED IN) INVESTING ACTIVITIES (833) (392)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share capital issues 0 0
Purchase/(sale) of own shares 1 (1)
Proceeds from loans and borrowings 1.041 275
Repayment of loans and borrowings (386) (108)
Change in the Group's ownership interests in controlled entities (15) (3)
Changes in other financial liabilities (5) 2
Changes in the fair value of hedging instruments - 0
Dividends paid (20) (12)
NET CASH FLOW USED IN FINANCING ACTIVITIES 615 152
Effect of exchange rates fluctuations 5 (11)
CHANGE IN CASH AND CASH EQUIVALENTS 83 (42)
Cash and cash equivalents at beginning of the year 329 371
Cash and cash equivalents at year end ((1)) 412 329
((1)) CASH AND CASH EQUIVALENTS
Marketable securities and short-term deposits (only portion
classified as cash) 67 87
Cash on hand 359 265
Bank overdrafts (included in short-term borrowings) (15) (23)
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS 412 329
EXHIBIT 3
2014 pro forma key financial data
To facilitate assessment of the Group's performance from January 1, 2015 onward,
consolidated revenue and the key consolidated financial figures for 2014 have
been restated, with effect from January 1, 2014, to reflect the acquisition of
GlobalCollect completed on September 30, 2014 ("2014 pro forma") and presented
on an adjusted basis (restated to reflect Purchase Price Allocation expenses
recognized on acquisitions and divestitures).
2014 | 2014 |
(in millions of euros) | |
pro forma | reported |
---------------------------------------------------------------+----------+
Revenue 1,846 | 1,607 |
| |
Adjusted gross profit 807 | 735 |
| |
As a % of revenue 43.7% | 45.7% |
| |
Adjusted operating expenses (446) | (411) |
| |
As a % of revenue -24.2% | -25.6% |
---------------------------------------------------------------+----------+
Profit from ordinary activities, adjusted (EBIT) 361 | 324 |
| |
As a % of revenue 19.6% | 20.2% |
---------------------------------------------------------------+----------+
Profit from operating activities 290 | 273 |
---------------------------------------------------------------+----------+
Net profit 177 | 172 |
---------------------------------------------------------------+----------+
Net profit attributable to shareholders 177 | 172 |
---------------------------------------------------------------+----------+
EBITDA 415 | 377 |
| |
As a % of revenue 22.5% | 23.4% |
---------------------------------------------------------------+----------+
*
EXHIBIT 4 :
Impact of purchase price allocation (PPA)
(in millions of euros) 2014 excl. PPA PPA impact 2014 reported
-------------------------------------------------------------------------
Gross profit 735 (5) 730
-------------------------------------------------------------------------
Operating expenses (411) (27) (438)
-------------------------------------------------------------------------
Profit from ordinary activities 324 (32) 292
-------------------------------------------------------------------------
Reconciliation of profit from ordinary activities to EBITDA
EBITDA represents profit from ordinary activities, restated to include the
following:
* Provisions for impairment of tangible and intangible assets, net of
reversals (including impairment of goodwill or other intangible assets with
indefinite lives, but not provisions for impairment of inventories, trade
and related receivables and other current assets), and provisions for risks
and charges (both current and non-current) on the liability side of the
balance sheet, net of reversals.
* Expenses related to the restatement of finance lease obligations on
consolidation.
* Expenses recognized in connection with the award of stock options, free
shares or any other payments to be accounted for using IFRS 2, Share-based
Payment.
* Changes in the fair value of inventories in accordance with IFRS 3, Business
Combinations, i.e. determined by calculating the selling price less costs to
complete and sell.
Reconciliation
(in millions of euros) 2014 2013 2013 reported
pro forma3
-------------------------------------------------------------------------------
Profit from ordinary activities 292 205 208
-------------------------------------------------------------------------------
Allocated assets amortization 32 30 30
-------------------------------------------------------------------------------
EBIT 324 235 239
-------------------------------------------------------------------------------
Other amortization and provisions for 44 34 34
liabilities
Share based payment expenses 9 7 7
-------------------------------------------------------------------------------
EBITDA 377 276 279
-------------------------------------------------------------------------------
--------------------------------------------------------------------------------
[1] On a like-for-like basis at constant exchange rates.
[2] EBITDA is not an accounting term; it is a financial metric defined here as
profit from ordinary activities before amortization, depreciation and provisions
and before expenses of shares distributed to employees and officers
[3] Excluding the contribution of TransferTo (disposed of in December 2013) and
including the reclassification of indirect R&D costs in the Payment Services
business as operating expenses.
[4] At comparable FX vs. 2012
ingenico-group-full-year-results.pdf:
http://hugin.info/143483/R/1895543/672227.pdf
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Source: INGENICO via GlobeNewswire
[HUG#1895543]
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Datum: 18.02.2015 - 17:36 Uhr
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