Press release
Paris, July 29, 2015
-
Revenue of €1.058 billion
-
Growth in all geographies; the United States now
the Group's second largest market after China
-
EBITDA up 37%[2] to 23.6% of
revenue
-
Profit attributable to Group shareholders up 63%
to €122 million on a reported basis
-
Guidance raised for 2015
Paris, July 29, 2015 - Ingenico Group (Euronext: FR0000125346 -
ING) announced today its reviewed financial statements for the
six-month period ended June 30, 2015.
Philippe Lazare, the
Chairman and CEO of Ingenico Group, commented: "In the first half of this year, Ingenico Group has once
again demonstrated its continued transformation while managing to
deliver outstanding performance across the board. Our multi-local
approach has delivered steady growth across all regions. Moreover,
the performance of our e-Payments division bears witness to the
successful integration process under way at GlobalCollect. These
results have led us to raise our guidance for both revenue and
EBITDA margin in 2015. We have also continued to make rapid headway
in our key projects, with the deployment of our cross-channel
solutions and the market launch of Telium Tetra, which is
progressing according to plan.
Ingenico Group is ideally positioned to capture
the full range of growth opportunities the payment industry has to
offer."
H1 2015
results
To facilitate the assessment of the Group's performance,
the interim consolidated results for the first half of 2015 are
compared here with pro forma results, i.e., not reviewed, but
restated and adjusted, with effect from January 1 2014, to reflect
the consolidation of GlobalCollect, which took place during fiscal
year 2014. Please see Exhibit 4.
Key figures
(in
millions of euros) |
H1'15 |
H1'14
reported |
H1'14
pro forma2 |
Revenue |
1,058 |
703 |
859 |
Adjusted
gross profit |
474 |
325 |
378 |
As a % of revenue |
44.8% |
46.2% |
44.0% |
Adjusted
operating expenses |
(253) |
(190) |
(219) |
Profit
from ordinary activities, adjusted (EBIT) |
221 |
135 |
159 |
As a % of revenue |
20.9% |
19.3% |
18.5% |
Operating
margin |
194 |
119 |
- |
Net
profit |
124 |
75 |
- |
Net profit
attributable to Group shareholders |
122 |
75 |
- |
EBITDA |
249 |
158 |
182 |
As a % of revenue |
23.6% |
22.4% |
21.2% |
|
|
|
|
Free cash
flow |
59 |
59 |
- |
Net
debt
Net debt-to-EBITDA ratio[3] |
441
0.9x |
251
0.8x |
-
- |
Equity
attributable to Group shareholders |
1,395 |
838 |
- |
15% organic growth
in revenue
To reflect the
enlarged scope of its business, Ingenico Group is now organized
into five divisions: Europe & Africa (the former SEPA and EMEA
segments, without the Middle East), Asia-Pacific and Middle East,
Latin America, North America and e-Payments.
|
H1 2015 |
Q2 2015 |
€m |
% change |
€m |
% change |
Comparable* |
Reported** |
Comparable* |
Reported** |
Europe-Africa |
366 |
4% |
5% |
197 |
8% |
9% |
APAC & Middle East |
210 |
19% |
40% |
111 |
8% |
29% |
Latin America |
119 |
28% |
27% |
65 |
37% |
33% |
North America |
132 |
40% |
67% |
69 |
23% |
50% |
e-Payments |
231 |
17% |
N/A |
118 |
15% |
N/A |
Total |
1,058 |
15% |
50% |
560 |
14% |
48% |
*Reflecting the new
regional breakdown and the acquisition of GlobalCollect as of
January 1, 2014.
**Reflecting the new regional organization
structure.
Performance in the
first half
In the first half of 2015, revenue
totaled €1.058 billion, representing a 50% increase on a reported
basis, including a positive foreign exchange impact of €68 million
and a €196 million contribution from GlobalCollect during the
period. Total revenue included €725 million generated by the
Payment Terminals business and €333 million generated by
Payment Services.
On a comparable basis1, revenue
growth was 15% higher than in H1 2014, due to double-digit growth
in both segments. The substantial 15% growth in Terminals was
supported by the multi-local footprint of the Group, which has
continued to reap the benefits of EMV migration in the United
States, the expansion of NFC technology (in roughly 80% of all
Telium terminals shipped) and the ongoing initiative by emerging
economies to install payment equipment. The Payment Services
business also saw 16% growth, driven by a buoyant e-business
market, vigorous in-store payment services and the Group's first
cross-channel contracts.
All regions contributed during the
period to the Group's overall performance. In
Europe-Africa, sales momentum for both payment terminals and
in-store payment services was robust in mature markets. Revenue
growth accelerated in North America, particularly
in the United States (>+90%), Ingenico Group's second
largest market in the first semester. The Group's vigorous
expansion in the emerging markets also
continued, particularly in China and Brazil.
The e-Payments
division showed strong growth across all entities and geographic
areas, especially in APAC and Latin America. The legacy Travel and
Gaming businesses have lost none of their vibrancy, and the Group
won its first major contracts in new vertical markets, such as
online education. These results reflect the successful integration
process under way at GlobalCollect.
Performance in the
second quarter
In the second quarter of 2015,
revenue totaled €560 million, representing a 48% increase on a
reported basis, including a positive foreign exchange impact of €37
million and a €100 million contribution from GlobalCollect during
the period. Total revenue included €388 million generated by the
Terminals business and €172 million generated by Payment
Services.
On a comparable basis1, revenue was
14% above the Q2 2014 figure. Brisk business in China and the
United States drove the 13% increase in Terminals revenue, while
sound performance across all segments was behind the 16% rise in
Payment Services revenue.
In the second quarter, the Group
posted strong organic growth across all divisions, successfully
deploying its geographically differentiated strategy. Compared with
Q2 2014, the various divisions performed as follows on a
like-for-like basis:
- Europe-Africa
(+8%): Ingenico Group delivered sound performance in the region
despite a troubled economy in Russia. In Italy, the Group returned
to growth this quarter, due to the introduction of new tax rules.
In Germany, a fresh wave of terminal replacements boosted business,
and the trend in Payment Services was also positive. Moreover, a
change in accounting methods had a beneficial impact on the Group's
figures for the period. In the United-Kingdom, the Group has
further reinforced its strong position by securing contract
renewals with major acquirers and leading ISOs (Independent Sales
Organization). Ingenico Group has continued to gain ground in
Romania and other emerging markets. In addition, the Group has
further expanded its in-store Payment Services in Western Europe,
where its cross-channel offering has led to greater market
presence.
- Asia-Pacific and
Middle East (+8%): Ingenico Group once again posted rapid
growth in China (+22%). With its end-to-end offering, the Group's
local subsidiary Landi has captured the banking industry's growth
potential. In India, the Group's performance exceeded its
expectations for the period. Results were buoyed by a government
tax incentive program designed to promote the shift to electronic
payment, and the trend is expected to continue over the next
quarters. However, while market dynamics remain strong in
Indonesia, a change of seasonality due to bank tenders offset the
Group's otherwise good performance in the region. Business for the
quarter was down in Turkey, but upcoming certifications should pave
the way for a return to growth in the next quarters.
- Latin America
(+37%): The primary driver of growth in the
region was a high level of investment by Brazil's major acquirers.
The Group's business grew substantially across the region, notably
in Central America and in Chile. As for Mexico, performance has
been impacted by a high basis of comparison on the back of a strong
replacement of payment equipment in 2014 in response to new
regulations.
- North America
(+23%): The Group's outstanding performance in
the United States continued this quarter at a 68% pace. It was
driven by ongoing deployment of EMV and NFC solutions across all
segments, from large-scale retailers to small and even micro
merchants, whom the Group now serves with mobile payment solutions
tailored to their needs. Due to its expanded market presence,
Ingenico Group is well-positioned to capture the shift to EMV in
new vertical markets, such as hospitality with the deployment of
its EMV touchscreen terminals for G6 Hospitality (which includes
the Motel 6 and Studio 6 brands).
As expected, the Group's performance in Canada was affected by a
very high basis of comparison created by an extremely large order
in the second quarter of 2014.
- e-Payments
(+15%): Ingenico Group's two online payment entities once again
recorded double-digit growth, driven by the current e-commerce
boom. In addition, GlobalCollect achieved 15% growth thanks to a
favorable product mix involving foreign exchange activities for
cross-border transactions.
Gross profit up
25%
On a pro forma basis2, adjusted
gross profit in the first half of 2015 increased by 25%
year-on-year to €474 million. It reached 44.8% of revenue,
gaining 80 basis points compared with H1 2014.
Gross Margin in the Terminals
business saw a 40 basis-point increase to 47.8% of
revenue2 .This
performance was supported by a combination of strong growth in this
segment and a favorable product and geography mix.
Gross margin in the Payment Services
business rose by 170 basis points to 38.2% of revenue on a pro
forma basis2. There were
three reasons behind this strong growth: continued progress in cost
control on the Axis platform, an e-Payments budget that projects
greater spending in the second half and positive results in the
foreign exchange business.
Operating
expenses under control at 23.9% of revenue
On an adjusted basis, operating
expenses in the first half of 2015 increased by 15% to a total of
€253 million, as higher capital expenditure was required to
keep pace with the Group's expansion. They represented 23.9% of
revenue, versus 25.5% in the first half of 2014 on a pro forma
basis2.
EBITDA margin up
240 basis points to 23.6% of revenue
On a pro forma basis2
, EBITDA increased by 37% to €249 million, up from €182 million in
the first half of 2014. The EBITDA margin increased by 240 basis
points to 23.6% of revenue.
EBIT margin up
240 basis points
In the first half of 2015, EBIT
increased by 39% to €221 million, compared with €159 million in the
first half of 2014 on a pro forma basis2. The EBIT
margin was 20.9% of revenue, up 240 basis points.
Profit from
operating activities up over H1 2014
Other operating income and expenses
represented a net expense of €3 million, up from €2 million in the
first half of 2014.
Purchase Price Allocation expenses totaled €25 million in the
first half of 2015, versus €26 million in the prior-year period on
a pro forma basis.2
After accounting for Purchase Price
Allocation and other operating income and expenses, profit from
operations totaled €194 million, a 45% increase compared with the
€119 million figure for the first half of 2014. The Group's
operating margin increased to 18.3% of revenue.
Profit
attributable to Group shareholders up over H1 2014
Income tax expense rose from €37 million in the
first half of 2014 to €64 million in the first half of 2015. As of
June 30 2015, the Group's estimated effective tax rate was up to
34%, reflecting a less favorable country mix.
The profit attributable to Ingenico Group S.A. shareholders
includes net finance costs of €6 million.
In the first half of 2015, net profit attributable to Ingenico
Group S.A. shareholders rose sharply to €122 million, up from €75
million in the prior-year period.
A sound financial
position in line with the Group's growth plan
Total equity attributable to Ingenico
Group S.A. shareholders was €1.395 billion.
During the first half of 2015,
Ingenico Group's operations generated free cash flow of €59
million. This result was in line with the prior-year amount, due to
the rise in tax expense and a more significant change in working
capital requirement. At the same time, however, the Group's working
capital requirement fell from 12%of revenue in the previous year to
11% of revenue as a result of good control over inventory and trade
receivables. The Group has maintained its goal for the year of
converting 45 to 50% of EBITDA into free cash flow.
On June 26, 2015, Ingenico Group
successfully issued 7-year zero-coupon convertible bonds (OCEANEs)
with a total principal amount of €500 million. As of June 30, 2015,
the Group's net debt had decreased to €441 million, an amount
including €111 million for the early redemption of OCEANE bonds at
the beginning of the year.
Accordingly, the net debt-to-equity
ratio stood at 32%, while the net debt-to-EBITDA ratio was 0.9x,
down from 1.8x as of end-December 2014 on a pro forma basis. The
Group's finances thus returned to what they were before the
GlobalCollect acquisition.
Highlights of the
second quarter
Strategic partnership with Fosun
In May 2015, Ingenico Group entered into a partnership with Fosun
to accelerate development in China. Their agreement gives a fund
managed by Fosun a 20% interest in Ingenico Group's Hong Kong-based
holding company for the business of the Group's Chinese subsidiary
Landi.
Collaboration between Ingenico Payment Services and Google
Inc.
In the second quarter of 2015, Ingenico Payment Services signed an
agreement with Google Inc. to help online merchants boost their
cross-border sales. The pilot program launched initially in Belgium
brings together the expertise of both companies in relation to
payment and consumer habits in order to offer merchants the tools
they need to develop their business abroad.
Bpifrance becomes an Ingenico Group
shareholder
Bpifrance has acquired a 5.5% stake in Ingenico Group's share
capital from Morpho, a subsidiary of Safran.
Successful OCEANE bond issue
In June 2015, Ingenico Group issued a new OCEANE zero-coupon bond
maturing in 2022 with a nominal amount of €500 million. The
conversion price has been set at a premium of 55% over the
reference price[4] for
Ingenico Group stock. Through this bond issue, the Group has taken
advantage of favorable market conditions to diversify its sources
of funding and finance a strategy geared towards profitable
growth.
Outlook
The Group has raised its guidance for annual
revenue growth to between 10% and 12% on a comparable
basis.[5]
Based on how well both of its
businesses have performed in the first half of the year, the Group
has also raised its full-year guidance for EBITDA margin, which is
now expected to reach or exceed 22% of revenue in 2015.
Conference
call
A conference call to discuss Ingenico Group's H1
2015 results will be held on July 29, 2015 at 6.00 p.m., Paris
time. Dial-in numbers: 01 70 99 32 12 (French domestic),
+1 334 323 6203 (for the United States) and +44 (0)20
7162 0177 (international) with the conference code: 954277. 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 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.
Learn more at www.ingenico.com twitter.com/ingenico
Contacts / Ingenico
Group
Investors & Communication Stéphanie Constand-Atellian
VP IR & External Communication
stephanie.constand@ingenico.com
(T) / 01 58 01 85 68 |
Communication Coba
Taillefer
External Communication Manager
coba.taillefer@ingenico.com
(T) / 01 58 01 89 62 |
Investors Caroline
Alamy
Investor Relations Manager
caroline.alamy@ingenico.com
(T) / 01 58 01 85 09 |
Upcoming events
Conference call on H1 2015 results: July 29, 2015 at 6 p.m., Paris
time
Q3 2015 revenue: October 22, 2015
EXHIBIT
1
Basis for preparing the 2015 interim financial statements
The consolidated
financial statements have been drawn up in accordance with
International Financial Reporting Standards (IFRS). In order to
provide meaningful comparable information, these data have 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 2015 has been analyzed on an adjusted basis, i.e., before
purchase price allocation (PPA). Please see Exhibit 3.
To facilitate
assessment of the Group's performance from January 1st, 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 a
non-reviewed adjusted basis (restated to reflect Purchase Price
Allocation expenses recognized on acquisitions and divestitures).
Please see Exhibit 4.
EBITDA is not an
accounting term; it is a financial metric defined here as profit
from ordinary activities before depreciation, amortization and
provisions, and before expenses for shares distributed to employees
and officers. The reconciliation of adjusted profit from ordinary
operations to EBITDA is available in Exhibit 3.
EBIT (Earnings
Before Interest and Taxes) 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 statements, balance sheet, cash flow statements
1. INTERIM
CONSOLIDATED INCOME STATEMENTS (REVIEWED)
(in millions of euros) |
June 30, 2015 |
June 30, 2014 |
|
|
|
|
|
|
Revenue |
1 058 |
703 |
Cost of sales |
(590) |
(378) |
|
|
|
Gross profit |
468 |
325 |
|
|
|
Distribution and marketing costs |
(99) |
(76) |
Research and development expenses |
(70) |
(50) |
Administrative expenses |
(102) |
(77) |
|
|
|
Profit from ordinary
activities |
197 |
122 |
|
|
|
Other operating income |
0 |
0 |
Other operating expenses |
(3) |
(2) |
|
|
|
Profit from operating
activities |
194 |
119 |
|
|
|
Finance income |
60 |
20 |
Finance costs |
(66) |
(28) |
|
|
|
Net finance costs |
(6) |
(8) |
|
|
|
Share of profits of equity-accounted investees |
0 |
0 |
|
|
|
Profit before income tax |
188 |
112 |
|
|
|
Income tax expense |
(64) |
(37) |
|
|
|
Profit for the period |
124 |
75 |
|
|
|
Attributable to: |
|
|
- owners of Ingenico Group SA |
122 |
75 |
- non-controlling interests |
1 |
0 |
|
|
|
EARNINGS PER SHARE (in euros) |
|
|
Net earnings |
|
|
- Basic earnings per share |
2,03 |
1,42 |
- Diluted earnings per share |
2,02 |
1,34 |
2. INTERIM
CONSOLIDATED BALANCE SHEET (REVIEWED)
ASSETS |
|
|
(in millions of euros) |
June 30, 2015 |
Dec. 31, 2014 |
|
|
|
|
|
|
NON-CURRENT
ASSETS |
|
|
Goodwill |
1 350 |
1 343 |
Other intangible assets |
529 |
545 |
Property, plant and equipment |
51 |
52 |
Investments in equity-accounted investees |
15 |
14 |
Financial assets |
11 |
7 |
Deferred tax assets |
41 |
41 |
Other non-current assets |
30 |
28 |
TOTAL NON-CURRENT ASSETS |
2 027 |
2 028 |
|
|
|
CURRENT ASSETS |
|
|
Inventories |
148 |
118 |
Trade and related receivables |
476 |
426 |
Receivables related to intermediation
activities |
14 |
2 |
Other current assets |
27 |
35 |
Current tax receivables |
9 |
9 |
Derivative financial instruments |
8 |
11 |
Funds related to intermediation activities |
265 |
308 |
Cash and cash equivalents |
810 |
426 |
TOTAL CURRENT ASSETS |
1 757 |
1 337 |
|
|
|
TOTAL ASSETS |
3 784 |
3 365 |
|
|
|
EQUITY AND
LIABILITIES |
|
|
|
|
|
|
|
|
Share capital |
61 |
57 |
Share premium account |
720 |
575 |
Retained earnings and other reserves |
565 |
417 |
Translation reserve |
48 |
24 |
Equity for the period attributable
to
Ingenico Group S.A. shareholders |
1 395 |
1 074 |
Non-controlling interests |
2 |
2 |
TOTAL EQUITY |
1 397 |
1 076 |
|
|
|
NON-CURRENT LIABILITIES |
|
|
Long-term loans and borrowings |
956 |
1,036 |
Provisions for retirement benefit obligations |
19 |
18 |
Other provisions |
23 |
25 |
Deferred tax liabilities |
140 |
119 |
Other non-current liabilities |
96 |
36 |
TOTAL NON-CURRENT
LIABILITIES |
1 234 |
1 234 |
|
|
|
CURRENT
LIABILITIES |
|
|
Short-term loans and borrowings |
295 |
154 |
Other provisions |
21 |
18 |
Trade and related payables |
424 |
413 |
Payables related to intermediation activities |
279 |
310 |
Other current liabilities |
102 |
126 |
Current tax liabilities |
29 |
29 |
Derivative financial instruments |
4 |
4 |
TOTAL CURRENT LIABILITIES |
1 153 |
1 055 |
|
|
|
TOTAL LIABILITIES |
2 387 |
2 289 |
|
|
|
TOTAL EQUITY AND
LIABILITIES |
3 784 |
3 365 |
-
INTERIM CONSOLIDATED CASH FLOW
STATEMENTS (REVIEWED)
(in millions of euros) |
June 30, 2015 |
June 30, 2014 |
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES |
|
|
Profit for the period |
124 |
75 |
Adjustments for: |
|
|
· Share of profit of equity-accounted
investees |
(0) |
(0) |
· Income tax expense / (income) |
64 |
37 |
· Depreciation, amortization and provisions |
45 |
31 |
· Change in fair value |
0 |
2 |
· (Gains) / losses on disposal of assets |
1 |
(0) |
· Net interest costs / (revenue) |
5 |
8 |
Share-based payment expense (1) |
9 |
5 |
Interest paid |
(13) |
(11) |
Income tax paid |
(73) |
(28) |
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
BEFORE CHANGE IN NET WORKING CAPITAL |
161 |
118 |
|
|
|
Change in working capital |
|
|
· Inventories |
(23) |
(7) |
· Trade and other receivables |
(41) |
(35) |
· Trade and other payables |
(17) |
0 |
CHANGE IN NET WORKING
CAPITAL |
(81) |
(42) |
NET CASH FLOWS FROM OPERATING
ACTIVITIES |
80 |
76 |
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
Acquisition of tangible and intangible fixed
assets |
(28) |
(21) |
Proceeds from sale of tangible and intangible fixed
assets |
1 |
0 |
Loans and advances granted and other financial
assets |
(4) |
(1) |
Loan repayments received |
1 |
1 |
Interest received |
5 |
5 |
NET CASH FLOWS FROM INVESTING
ACTIVITIES |
(25) |
(16) |
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
Proceeds from share capital issues |
- |
0 |
Purchase/(sale) of treasury shares |
0 |
(0) |
Proceeds from loans and borrowings |
1 133 |
447 |
Repayment of loans and borrowings |
(887) |
(192) |
Change in the Group's ownership interests in
controlled entities |
94 |
- |
Changes in other financial liabilities |
6 |
1 |
Dividends paid to shareholders |
(31) |
(20) |
NET CASH FLOWS USED IN FINANCING
ACTIVITIES |
315 |
235 |
|
7 |
0 |
CHANGE IN CASH AND CASH
EQUIVALENTS |
377 |
295 |
|
|
|
Cash and cash equivalents at beginning of the
year |
412 |
329 |
Cash and cash equivalents at end of the period
(1) |
789 |
624 |
|
|
|
Comments |
|
|
|
|
|
(1) share-based payment
expense of €9.4 million,
including €3.3 million paid in equity instruments and €6.1
million |
paid in cash. |
|
|
|
|
|
(2) CASH AND CASH EQUIVALENTS |
June 30, 2015 |
June 30, 2014 |
Short-term investments and short-term
deposits
(only portion classified as cash) |
306 |
244 |
Cash on hand |
504 |
417 |
Bank overdrafts (included in short-term
borrowings) |
(22) |
(38) |
TOTAL CASH, CASH EQUIVALENTS AND
SHORT-TERM INVESTMENTS |
789 |
624 |
EXHIBIT 3
Impact of purchase
price allocation (PPA)
(in millions of euros) |
H1'15 adjusted
excl. PPA |
PPA impact |
H1'15 reported |
Gross profit |
474 |
(6) |
468 |
Operating expenses |
(253) |
(19) |
(272) |
Profit from ordinary activities |
221 |
(25) |
197 |
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) |
H1'15 |
H1'14 pro forma2 |
H1'14 reported |
Profit from ordinary activities |
197 |
133 |
122 |
Allocated assets amortization |
25 |
26 |
13 |
EBIT |
221 |
159 |
135 |
Other D&A and changes in provisions |
20 |
18 |
18 |
Share-based payment expenses |
8 |
5 |
5 |
EBITDA |
249 |
182 |
158 |
EXHIBIT 4
2014 pro forma
financial data
To reflect the
enlarged scope of its business, Ingenico Group is now organized
into five divisions: Europe & Africa (the former SEPA and EMEA
segments, without the Middle East), Asia-Pacific and Middle East,
Latin America, North America and e-Payments.
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).
Pro forma revenue
for 2014
(reflecting the new regional
breakdown and the acquisition of GlobalCollect as of January 1,
2014)
(in
millions of euros) |
Q1
2014 |
Q2
2014 |
Q3
2014 |
Q4
2014 |
2014 |
|
|
|
|
|
Europe
& Africa |
168 |
181 |
182 |
197 |
728 |
APAC
& Middle East |
64 |
86 |
80 |
97 |
327 |
Latin
America |
45 |
49 |
50 |
61 |
205 |
North
America |
33 |
46 |
53 |
57 |
189 |
e-Payments |
90 |
96 |
99 |
112 |
397 |
Total |
400 |
459 |
464 |
524 |
1,846 |
2014 pro forma key
financial data
(including GlobalCollect as of
January 1, 2014)
(in
millions of euros) |
H1'14
pro forma |
H1'14
reported |
Revenue |
859 |
703 |
Adjusted
gross profit |
378 |
325 |
As a % of revenue |
44.0% |
46.2% |
Adjusted
operating expenses |
(219) |
(190) |
As a % of revenue |
(25.5%) |
(27.0%) |
Profit
from ordinary activities, adjusted (EBIT) |
159 |
135 |
As a % of revenue |
18.5% |
19.3% |
Profit from
operating activities |
- |
119 |
Net
profit |
- |
75 |
Net profit
attributable to Group shareholders |
- |
75 |
EBITDA |
182 |
158 |
As a % of revenue |
21.2% |
22.4% |
[1] On a like-for-like basis at constant exchange
rates.
[2] Pro forma figures including the contribution of
GlobalCollect from January 1, 2014.
[4] The reference price is equal to the volume-weighted average
price for the Company's stock on the Euronext Paris stock market
between the opening of market trading on June 23, 2015 and the time
when the final terms of the offering are set.
[5] Pro forma revenue of €1.846 billion in 2014.
INGENICO
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions 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
HUG#1942133