Press
Release |
Paris,
24nd April
2019
|
Our ambition:
becoming the most proactive and trusted payment
partner
Accelerate Retail profitable growth and restore B&A competitive
edge
Focus on client centricity to capture value along the entire
payment chain
Execute a global transformation through the implementation of the
Fit for Growth plan
Simplify our organization to gain agility and efficiency
Improve Ingenico
growth and margin profile creating value for all
stakeholders
Organic 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 execution
45-50% 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
twitter.com/ingenico
For more experts' views, visit our
blog.
Contacts / Ingenico Group
Investors
Laurent Marie
VP Investor Relations &
Financial Communication
laurent.marie@ingenico.com
(T) / (+33) (0)1 58 01 92 98 |
Investors
Kévin Woringer
Investor Relations Manager
kevin.woringer@ingenico.com
(T) / (+33) (0)1 58 01 85 09
|
Communication
Hélène Carlander
PR Officer
helene.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
CMD 2019
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announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: INGENICO via Globenewswire