Press Release |
Paris, 24nd April 2019
|
Our ambition: becoming the most proactive and
trusted payment partnerAccelerate Retail profitable growth and
restore B&A competitive edge Focus on client centricity to
capture value along the entire payment chainExecute a global
transformation through the implementation of the Fit for Growth
planSimplify our organization to gain agility and efficiency
Improve Ingenico growth and margin profile
creating value for all stakeholdersOrganic CAGR 2018 to 2021
above 6%EBITDA* of c. €700 million in 2021€100 million of EBITDA
impact in 2021 derived from Fit for Growth plan execution45-50% of
FCF/EBITDA conversion*Above 35% pay-out ratio
Ingenico Group (Euronext: FR0000125346 - ING), the
global leader in seamless payment, is presenting its 2021
objectives during a Capital Market Day held in Paris.
Nicolas Huss, Chief Executive Officer of
Ingenico Group, commented: "I am very excited today to
present Ingenico's new strategy and financial ambition for 2021.
Over the past decade, through several transformational
acquisitions, we have repositioned Ingenico Group across the entire
payment value chain, from a pure payment terminal leader to a full
payment services leading provider. Our goal now is to fully
leverage and optimize Ingenico's asset portfolio through the
execution of our Fit for Growth global transformation plan bringing
the Group to the next level. We are embarking on this journey with
a new leadership team focused on making Ingenico the most proactive
and trusted partner of the payment ecosystem. The expansion of the
Group offering along with a more agile and efficient organization
will enable Retail to accelerate its profitable growth and B&A
to restore its competitive edge. Ingenico aims at reaching an
average organic growth rate above 6% over the period 2018 to 2021
and an EBITDA of c. €700 million in 2021 with a 45% to 50% free
cash flow conversion. We are fully in motion to deliver Ingenico
new strategy creating value for all stakeholders."
(*) After IFRS 16 application. The Group estimates
the IFRS 16 impact on 2019 EBITDA at +c.€30m with no impact on free
cash flow
The New Ingenico: bringing the Group to the
next level by 2021
The payment industry has been booming over the
past decades, from the first electronic cards and POS equipment, to
the multiplication of payment means. While the migration from cash
to electronic transactions remains a driver, specific vertical
dynamics and merchant needs are new catalysts, quite as much as the
technology changes themselves. Those drivers have widened the
competitive landscape, attracting new players but opening new
opportunities for Ingenico Group.
Led by a new leadership team, the Group aims at
accelerating its growth profile while improving its profitability.
By 2021, this transformation will bring Ingenico Group to the next
level, generating 2/3 of its revenue and more than 50% of its
EBITDA in payment services.
With a full end to end offer approach, Ingenico
focuses on client centricity, selling directly to merchants and
indirectly through partners. Its dedicated technology strategy,
coupled with a clear focus on selected merchant and customer
verticals, will bring to the market differentiated solutions.
The Group: restore flexibility and agility
through the Fit for Growth plan
The Group's transformation goes hand-in-hand
with a streamlining program in order to bring more flexibility and
agility to Ingenico. The Fit for Growth is a holistic
transformation plan encompassing 33 work streams in 6 programs: (i)
Operating model, (ii) Retail acceleration, (iii) B&A Revival,
(iv) Technology transformation, (v) G&A streamlining, and, (vi)
Procurement optimization. Therefore, the Fit for Growth plan is
expected to generate €100 million of EBITDA impact in
2021, with €40 million in Retail and
€60 million in B&A As part of the operating model
program, the Group will reorganize its legal structure, ERP
landscape and analytical structure to create by the end of 2019 two
sub-groups, one for B&A and one for Retail. This new
organization will enable each Business Unit to gain transparency,
accountability in performance monitoring as well as increase its
own business agility.
B&A: be the trusted technology partner in
the new world of payment acceptance
As the POS market is transforming, through rapid
technological evolution, B&A is adapting his offering to this
new ecosystem. From the Android POS to its global positioning and
local know-how, B&A already has all the relevant assets to
seize new business opportunities. In the coming three years, the
business unit will concentrate its efforts at leveraging its
leadership on Tetra, accelerating the worldwide deployment of
Android devices and bringing effectiveness into its organization.
Therefore, B&A is expected to grow between 0% to 2% over the
next three years and to reach c. €300 million of EBITDA
in 2021, including €60 million of savings derived from the Fit
for Growth plan.
Retail: be the most proactive partner in the
new world of commerce
Retail is evolving in a rapidly changing
environment. Over the past few years, Retail has transformed itself
in one of the key payment players providing solutions directly to
merchants or through partners. Thanks to strategic acquisitions,
organic investments and a complete reorganization, revenues and
profitability have significantly improved over the past 3 years.
The business unit is now accelerating its growth profile, through
10 Fit for Growth initiatives focused at deploying the SMB
repeatable operating model, strengthening Global Online vertical go
to market, expanding Enterprise offering, materializing Payone
synergies and proposing a unique customer experience through
technology orchestration. Therefore, Retail is expected to reach
11% to 12% organic growth in 2021 and to reach an EBITDA of
c. €400 million at this time, including €40 million of
savings derived from the Fit for Growth plan.
Ingenico Group 2021 plan
Ingenico Group has set itself the following 2021
financial objectives (after IFRS 16 application):
- Revenue: The group expects to achieve an organic CAGR
2018-2021 above 6%.
- EBITDA: The group targets an EBITDA of c.
€700 million in 2021, including €100 million of savings
derived from the Fit for Growth plan.
- Free cash-flow: The group has the ambition to reach a
free cash-flow conversion rate of 45-50%.
- Pay-out ratio: above 35%
Video Webcast & Conference Call
The mid-term strategic plan and the 2021
financial objectives will be discussed in a video webcast and a
Group telephone conference call to be held on 24th April 2019 at
9.00am Paris time (8.00am UK time). The presentation will be
available and the video webcast will be accessible at
www.ingenico.com/finance. The call will be accessible by
dialling one of the following numbers:
+33 (0) 1 70 37 71 66 (from France),
+1 646 843 4608 (from the US) and
+44 20 3003 2666 (from other countries) with the
conference password: Ingenico.
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 to
the performance of Ingenico Group and its subsidiaries. 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. This
release shall not constitute an offer to sell or the solicitation
of an offer to buy or subscribe for securities or financial
instruments.
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.
Stay in touch with
us: www.ingenico.com
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Contacts / Ingenico Group
Investors Laurent MarieVP Investor Relations & Financial
Communication laurent.marie@ingenico.com (T) / (+33) (0)1 58 01 92
98 |
InvestorsKévin WoringerInvestor Relations
Managerkevin.woringer@ingenico.com(T) / (+33) (0)1 58 01 85 09
|
CommunicationHélène CarlanderPR
Officerhelene.carlander@ingenico.com(T) / (+33) (0)1 58 01 83
17 |
Upcoming events
Annual General Meeting: June 11th, 2019 2019 half
year results: July 23rd, 2019