INGENICO GROUP: 2019 first half-year results
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Press Release |
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Paris, July 23rd, 2019 |
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2019 first half-year results
Solid growth & financial results
All 2019 objectives raised
Revenue of €1,611 million, up 13% on
a comparable basis1Retail continued to grow at 11%
in the first semester 2019B&A growth reached
16 % driven by Latin America and Asia-Pacific€254
million EBITDA2, representing 15.8% of
revenueExcluding IFRS 16 impact, EBITDA was up 12%
at €237 millionStrong €120 million free
cash-flow already reaching 47% conversion rate€80
million net result Group share +48% vs. H1’18 reported
All 2019 objectives raised on H1’19
performance2019 organic growth guidance raised to
above 9 % (vs. c. 6
%) EBITDA
(after IFRS 16) raised to above €590 million (from >€580
million)
Free
Cash Flow conversion rate raised to c. 50% (from c.
47%)
Ingenico Group (Euronext: FR0000125346 - ING),
the global leader in seamless payment, today announced its results
for the six-month period ended on June 30th, 2019.
Nicolas Huss, Chief Executive Officer of
Ingenico Group, commented: “Activity has been very strong
throughout the semester leading the Group to grow by 31% thanks to
the 13% organic performance and the benefit from the Paymark and BS
Payone contributions. The Retail performance is fully in-line with
our expectations with 11% growth, whilst B&A performed above
expectations at 16%, driven by an over-performance in Brazil and
Asia. This achievement, coupled with the roll-out of cost-savings
initiated in Retail in 2018, and the implementation of our Fit for
Growth program across the Group, enabled us to deliver a solid
EBITDA. At the same time, the deployment of a redesigned cash
control process allowed the Group to reach a record
€120 million free cash-flow for the first semester. For the
second part of the year, the performance in B&A is expected to
normalize whilst Retail will continue to deliver solid double-digit
growth with operating leverage. Our teams are now
fully executing our Fit for Growth transformation plan including
B&A Revival, Retail Acceleration and Corporate actions. The
early achievements of the first semester have created a solid
foundation for our mid-term ambition, as communicated last April.
In the light of the first half over-performance, we are raising all
our 2019 objectives.”
H1 2019 Key figures
|
(in millions of euros) |
H1’19 |
IFRS 16 impact |
H1’19 excl. IFRS 16 |
H1’18 PF* |
H1’18 |
H1’19 excl. IFRS 16 vs. H1’18 PF* |
|
Revenue |
1,611 |
- |
1,611 |
1,413 |
1,229 |
+14% |
|
Adjusted gross profit |
572 |
3 |
570 |
547 |
489 |
+4% |
|
As a % of revenue |
35.5% |
- |
35.4% |
38.7% |
39.7% |
(3.3) pts |
|
Adjusted operating expenses |
(318) |
14 |
(332) |
(335) |
(295) |
-1% |
|
As a % of revenue |
-19.8% |
- |
-20.6% |
-23.7% |
-24.0% |
+3.1 pts |
|
EBITDA |
254 |
17 |
237 |
212 |
193 |
+12% |
|
As a % of revenue |
15.8% |
- |
14.7% |
15.0% |
15.7% |
-0.3 pts |
|
Profit from ordinary activities, adjusted (EBIT) |
188 |
2 |
186 |
170 |
159 |
+9% |
|
As a % of revenue |
11.7% |
- |
11.5% |
12.1% |
12.9% |
(0.6) pts |
|
Operating income |
124 |
2 |
122 |
107 |
94 |
+14% |
|
Net profit |
82 |
0 |
82 |
64 |
55 |
+28% |
|
Net profit attributable to Group shareholders |
80 |
0 |
80 |
61 |
54 |
+32% |
|
|
|
|
|
|
|
|
|
(in millions of euros) |
H1’19 |
IFRS 16 impact |
H1’19 excl. IFRS 16 |
H1’18 PF* |
H1’18 |
H1’19 vs. H1’18 |
|
Free cash flow |
120 |
- |
120 |
- |
23 |
+422% |
|
% FCF/EBITDA conversion |
47.4% |
- |
50.6% |
- |
11.7% |
+35.7 pts |
|
Net debt |
1,466 |
- |
1,466 |
- |
1,702 |
-14% (0.9)x |
|
Net debt-to-EBITDA ratio3 |
2.7x |
- |
2.8x |
- |
3.6x |
|
Equity attributable to Group shareholders |
2,085 |
- |
2,085 |
- |
1,686 |
+24% |
* H1 2018 PF figures including acquisitions made
during the year at 100%, notably the BS Payone and Paymark
operations closed in January 2019.
Update on the Fit for Growth
implementation
The Fit for Growth plan has been launched in
February 2019 and is now fully in run mode. Its ambition is to
revive the B&A business unit, accelerate the Retail growth
profile and to transform the Group structure and operating model by
2021. Some key milestones have already been reached during the
first half of 2019:
During the semester, the Group defined the targeted operating
model which is now in the implementation phase. In the meantime,
the rationalization and the migration of its data centres and the
optimization of the procurements through a global function are
ongoing. A first round of contract renegotiations is already
generating savings. In addition, outsourcing and nearshoring
developments are on track and starting to deliver;Retail has
introduced some of its dedicated growth initiatives, notably with
the launch of the Bambora Connect solution, which provides
all-in-one solutions for ISVs, and the offering expansion within
Enterprise to address specific verticals such as self-service
segments. In parallel, Global Online continued to accelerate within
the Travel vertical through the launch of LinkPlus and the roll-out
of Travel Hub. Payone integration is on track and the full-service
offering is now fully certified among their customers;B&A
continued to deploy Android globally, supported by the new
competence centre, and started to implement some initiatives
related to Global account management, delivering already the first
positive outputs. Following the implementation of the B&A
revival plan, the first OPEX savings have been made during the
semester. In the meantime, the product portfolio rationalization is
underway, with c. 20% of product references already
decommissioned.
These milestones are in line with the plan and
enable us to confirm the €20 million positive EBITDA impact
expected to be generated in 2019 and the €100 million positive
EBITDA impact in 2021.
|
|
H1 2019 |
Q2 2019 |
|
€m |
% Change |
€m |
% Change |
|
Comparable1 |
Reported |
Comparable1 |
Reported |
|
Retail |
906 |
11% |
44% |
471 |
10% |
43% |
|
SMBs |
164 |
13% |
12% |
85 |
10% |
10% |
|
Global Online |
274 |
11% |
14% |
141 |
12% |
14% |
|
Enterprise |
195 |
20% |
36% |
104 |
20% |
36% |
|
Payone |
272 |
4% |
172% |
142 |
3% |
174% |
|
B&A |
705 |
16% |
18% |
387 |
20% |
21% |
|
EMEA |
240 |
-3% |
-1% |
130 |
0% |
1% |
|
Latin America |
143 |
104% |
99% |
78 |
108% |
106% |
|
North America |
73 |
-9% |
-4% |
42 |
-13% |
-8% |
|
Asia-Pacific |
248 |
18% |
19% |
136 |
27% |
27% |
|
TOTAL |
1,611 |
13% |
31% |
858 |
14% |
32% |
2019 first half-year
performance
In the first half of 2019, revenue totalled
€1,611 million, representing a 13% increase on a comparable
basis. On a reported basis revenue was 31% higher than in the first
half of 2018 and included a positive foreign exchange impact of €12
million.
Over the semester, the Retail
Business Unit reported a revenue of €906 million, showing an
increase of 11% on a comparable basis. On a reported basis, revenue
increased by 44% during the semester and included a positive
foreign exchange impact of €4 million. Compared with H1’18, the
various activities performed as follows on a like-for-like
basis:
- SMB (up 13%): The performance
was in line with our expectations. The second quarter has been
impacted by the rebalancing of our risk portfolio. During the
semester, SMB continued to expand its merchant base by more than
4,000 new clients per month, which is consistent with the
commercial performance highlighted in past communications. During
the second quarter, SMB has launched a new merchant solution –
Bambora Connect – which is an all-in-one instore offering tailored
specifically for ISVs. This solution is already live with few
partners. In addition, as part of the Fit for Growth plan, the SMB
geographical expansion is progressing well with the first phases of
the implementation of the Bambora blueprint in the Benelux
region.
- Global Online (up 11%): The
activity evolved as expected throughout the period, with strong
growth in the emerging regions, as India for example, growing more
than 30% during the semester. The recent launch of our Russian
acquiring capabilities with local partners is a clear success,
benefiting from additional cross-border volumes. In parallel,
synergies within Retail are materializing as the division is now
routing towards the internal Bambora acquiring platform around €2
billion of flows on an annual basis, in line with the Fit for
Growth plan. The division’s focus on the Travel vertical is gaining
ground in a reinforced risk framework with the roll-out of Travel
Hub and the launch of LinkPlus in-app solution leading to a growing
pipeline of new prospects. In the meantime, major commercial
successes have been signed during the semester in Latin America,
China, and Russia.
- Enterprise (up 20%): The
performance came in better than expected, benefiting from a strong
traction on both transaction activities and sale of POS. In the
latter, the targeted Healthcare vertical has been a clear driver,
benefiting from a local incentive in Germany for the deployment of
healthcare devices. The dynamic should start to face a tough
comparison basis from the third quarter as the deployment started
in Q2’18 and the incentive ended on June 30th. In addition, North
America has been a strong driver this semester, benefiting from a
continuous market share gain among the large US retailers. In
parallel, the transaction business continued its double-digit
growth. This has been driven by the European omnichannel instore
platform (Axis), in which processed volumes continue to increase
thanks to market share gains, and by Turkey, where our fiscal
gateway is benefiting from our large merchant installed base. In
parallel, the development of products and offers related to the
growth initiatives are in line with the Fit for Growth plan.
Solutions combining payment acceptance and acquiring capabilities
will enable us to accelerate in the omnichannel retail space and in
the self-service market segments.
- Payone (up 4%): The division
performed in line with the plan, on track to accelerate
progressively over the second half of the year to reach its
cruising speed by 2020. The current performance has been slowed
down by the integration process of the two entities and a tough
comparison basis impacting the first half of the year. The
integration process is progressing well, with legal entities being
rationalized and ongoing IT migration. The full-service offering
has been certified within the BS Payone merchants’ portfolio
during the second quarter, enabling its roll-out. In addition, the
saving banks partnership is progressively fuelling the growth by
converting their customers to the Payone payment solutions.
The B&A Business Unit
posted a revenue of €705 million, a 16% increase on a
comparable basis. On a reported basis the activity increased by 18%
and included a positive foreign exchange impact of €8 million.
Compared to H1’18, the various regions performed as follows on a
like-for-like basis:
- Europe, Middle-East & Africa (down
3%): The region revenue stabilized during the second
quarter. During the overall semester, mature countries were
relatively resistant and emerging ones were ramping up fuelled by
new clients gains. Despite a consolidation effect that continued to
put pressure on the DACH region (Germany, Austria, Switzerland),
Western Europe revenue is progressively normalizing while facing
pricing pressure. Eastern Europe exceeded our expectations, driven
by Russia and the CIS countries. Some countries in Southern Europe
experienced a challenging semester impacted by a weaker demand from
the local acquirers.
- Asia-Pacific (up 18%): Most
of the countries were well oriented this semester, delivering a
better performance than expected and benefiting from a favourable
comparison basis that will fade in the second half of the year.
China has benefited from a strong demand in APOS from third-party
processors and the main local banks. While it is beneficial to the
first half performance, the latter is driven by the phasing of
their budget allocation which should lead to a weaker Chinese
performance in the second part of the year. South East Asia
remained dynamic, still fuelled by the Indonesian market where
Ingenico continued to successfully deploy its traditional and
Android POS to local Banks and APM processors. India is maintaining
good momentum while Thailand continued to face a challenging
environment in the second quarter. In addition, Japan remained
strong, benefiting from the EMV migration, while Australia declined
this semester on a contract shift from the second
quarter.
- Latin America (up 104%): The
performance has been strong throughout the first semester, driven
by a very dynamic Brazilian market. It benefited from a strong
momentum as Ingenico Group continued to gain large market shares
and to deploy APOS across the main local players, while its
flexible go-to-market continues to attract the largest local
acquirers. In addition, cross-region deals have been won during the
second quarter feeding the growth of Argentina, Peru and Chile.
Overall, the current pipe sustains a double-digit growth in the
third quarter becoming stable sequentially and versus last year
revenues in the fourth quarter.
- North America (down 9%): The
performance was in line with our expectations, impacted by a weaker
demand in Canada in the first half while benefiting from an
improving trend in the United-States getting back to a more
positive dynamic in the second quarter. As expected, the
performance in Canada has contracted during the second quarter,
still impacted by a high comparison basis. The dynamic is expected
to improve progressively in the second half of the year, benefiting
from purchasing volumes getting back to a more normative level. In
parallel, the US-based activities are improving in the second
quarter on ISV ramp-up. The country should benefit in the second
part of the year from a solid pipeline of projects and the
continued ramp-up of the current ISV certifications.
Note: all below P&L analysis versus last year
are based on H1’18 proforma figures (including BS Payone and
Paymark since January 1st, 2018).
Adjusted gross profit
In the first half of 2019, adjusted gross profit
reached €572 million (€570 million excluding IFRS 16), representing
35.5% of revenue (35.4% of revenue excluding IFRS 16) to be
compared with €547 million in the first half of 2018, or 38.7% of
revenue. Retail adjusted gross profit rate was stable, while
investing into growth initiatives and B&A adjusted margin was
impacted by an unfavourable geographical mix, mainly driven by the
104% organic growth in Latin America, and isolated pricing pressure
in some mature countries, as expected.
Adjusted operating expenses
During this first half of 2019, adjusted
operating expenses have reached €318 million. Excluding the
positive IFRS 16 effect of €14 million, adjusted operating
expenses were €332 million, stable compared to H1’18 while revenue
base increased by c. €200 million. Adjusted operating expenses rate
has decreased from 23.7% to 20.6% down 310 bps excluding the IFRS
16 positive effect. These results have been achieved through a
strong cost control initiated first in Retail in H2’18, then rolled
out and accelerated in B&A and Group support functions through
the implementation of the Fit for Growth plan.
EBITDA margin
EBITDA came in at €254 million including a
positive IFRS 16 effect of €17 million. Without this effect, EBITDA
would be €237 million, against €212 million like-for-like in the
first half of 2018 (€193 million on reported basis), thus an
improvement of €25 million, of which €8 million is derived from the
Fit for Growth plan. Excluding the €5 million investment in
Retail growth initiatives as communicated on February 12th, this
improvement represents €30 million up 14% versus last year, fully
in line with revenue growth.
The Retail EBITDA came in at
€122 million. Excluding positive IFRS 16 impact of €10
million, the EBITDA reached €112 million (12.4% of revenue) to be
compared with €96 million (11.8% of revenue) in H1’18, an increase
of 60 bps. Excluding the €5 million growth initiatives investment,
EBITDA would have reached €117 million, at 12.9% of revenue,
increasing by 110 bps. This overall performance is fully in line
with our annual Retail EBITDA objective to be above €285
million.
The B&A EBITDA stood at
€132 million. Excluding positive IFRS 16 impact of €7 million,
the EBITDA reached €125 million (17.7% of revenue) to be
compared with €116 million (19.4% of revenue) in H1’18, decreasing
by 170 bps. This EBITDA improvement of €9 million is derived from
an over-performance in revenue in both Latin America and Asia. In
line with the B&A revival plan as previously communicated, the
Fit for Growth positive EBITDA impact in H1’19 (€8 million) has
compensated the pressure on the gross profit coming from
geographical mix evolution and isolated pricing pressure in some
mature countries. As a consequence, we raise our B&A EBITDA
objective for the year from c. €295 million to c. €305 million.
Operating income
EBIT margin reached €188 million, compared
to €170 million in the first half of 2018 (€159 million on
reported basis).
The other income and expenses (OIE) reached
€-13 million compared to €-16 million in H1’18 (€-18 million
on reported basis), this includes an exceptional non-cash profit of
€5 million. On a like-for-like basis the OIE for the first semester
represents €-18 million.
The operating income also includes purchase
price allocation amortization that represented €50 million in
the first half of 2019 compared to €47 million in H1’18 (see
exhibit 4).
After other income & expenses and purchase
price allocation described above, operating income came in at
€124 million, compared to €107 million in the first half of
2018 (€94 million on reported basis).
Net profit attributable to
shareholders
The financial result accounted for €-21 million
compared to €-20 million in H1’18 (€-19 million on reported
basis).
Income tax landed at €21 million in this first
half from €23 million in the first half of 2018 (€20 million on
reported basis). The latter has benefited from a general decline of
the taxation rates and a more favourable mix in terms of taxes.
Those changes led to an effective tax rate of 20.4%, against 26.9%
in H1’18.
After accounting for €1 million of
non-controlling interests, the 2019 first half Group net profit
attributable to shareholders came in at €80 million, up 32%
compared to €61 million in the first half of 2018 (up 48% vs. €54
million on reported basis).
Cash generation
The free cash flow improved very significantly
during the first half of 2019 at €120 million compared to
€23 million in the first half of 2018. The major elements of
the free cash-flow improvement were:
- Contribution of EBITDA increase of €44 million on reported
basis, net of non-cash IFRS 16 effect;
- Strong improvement of change in working capital by €40 million,
resulting from a fully redesigned cash control process with a
better efficiency on cash collection;
- Increase of capital expenditure by €7 million reaching €60
million (€18 million in B&A and €42 million in Retail),
against €53 million in H1’18. The level of capital intensity
is fully in line with the Group mid-term investment policy, i.e. c.
€30 million of investments per year for B&A and, for Retail, c.
4% to 5% of its own revenue;
- OIE increased by €2 million reaching €18 million as already
mentioned;
- Interests paid stable at €10 million;
- Tax paid decreased by €23 million, from €48 million in the
first half of 2018 to €25 million in the first half of 2019
benefiting from a €25 million one-off reimbursement of the French
tax authority.
In consequence, netted from this one-off
reimbursement, free cash-flow for the first half 2019 would have
represented €95 million, leading to a sustainable first half
conversion rate of c. 37%.
Group net debt
The Group's net debt decreased to
€1,466 million against €1,518 million at the beginning of
the year. The major elements of this evolution are the €120 million
free cash-flow generation and the €73 million net cash-out mainly
related to the Paymark acquisition. The ratio of net debt to
EBITDA3 is down to 2.7x from 3.1x at the end of 2018 and 3.6x end
of June last year.
In July 2019:
- The Group has paid the cash portion (€34 million) of its 2018
dividend to the 49.4% of shareholders who elected a distribution in
cash. 50.6% of the total dividend amount has been paid in stock
(534,871 shares);
- The Group has decided to immediately optimize its overall
financing cost with an early redemption of the €250 million term
loan maturing in 2020 as a result of the improved regularity in
cash generation derived from a reinforced cash control process
implemented in H1’19.
All 2019 objectives raised
- Revenue: The Group raises its 2019
expectations to achieve an organic growth above 9%
compared to c. 6% previously communicated. B&A revenue is
expected to grow organically above 7% (vs. c. 2%) and Retail to
achieve a double-digit organic growth.
- EBITDA (after application of IFRS 16): The
Group increases its target to reach an EBITDA above
€590 million (vs. >€580 million). This target
factors in €20 million EBITDA positive impact related to the
Fit for Growth plan. The group expects the Retail EBITDA to be
above €285 million (unchanged) and the B&A EBITDA to be at
c. €305 million (vs. c. €295 million).
- Free cash-flow: The Group raises its cash
generation objective to reach a free cash-flow conversion
rate of c. 50% (vs. c. 47%) leading to free cash-flow of
c. €300 million.
Conference Call
The financial results for the first half of 2019
will be discussed in an audio webcast and a Group telephone
conference call to be held on 23rd July 2019 at 6.00pm Paris time
(5.00pm UK time). The presentation and audio webcast will
be available at www.ingenico.com/finance.
The call will be accessible by dialling one of the following
numbers: +33 (0) 1 72 72 74 03 (from
France), +1 646 722 4916 (from the US) and
+44 20 7194 3759 (from other countries), with the
conference
ID: 23155297#.
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 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
Third quarter 2019
revenue: 22nd October 2019 (post market)
EXHIBIT 1 Basis for
preparing the 2019 interim financial statements
The consolidated interim 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 the first half of
2019 have been analyzed on an adjusted basis, i.e. before purchase
price allocation (PPA). Please see Exhibit 4.
The adjusted gross margin and the adjusted
operational expenses disclosed exclude the depreciation and
amortization, provisions, expenses for the shares distributed to
employees and officers and purchase price allocation (“PPA”) –
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. EBITDA
considers the impacts of IFRS 16. The reconciliation of adjusted
profit from ordinary operations to EBITDA is available in Exhibit
4.
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, tax paid and the reimbursement of
lease liability resulting from IFRS 16.
The financial net debt disclosed excludes the
financing line of merchants pre-financing as well as lease
liabilities resulting from the first application of IFRS 16.
EXHIBIT 2
Following the closing of the combination of BS
Payone with the Ingenico DACH assets, the reporting evolves towards
greater transparency and making it easier to read the joint-venture
performance. In parallel, the former Ogone activities recognized in
Global Online and Enterprise are transferred to SMB and Bambora
Pacific is now consolidated in Enterprise.
|
1. FORMER REPORTING ON A REPORTED BASIS |
|
|
|
|
In millions of euros |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
|
Retail |
302 |
328 |
345 |
364 |
1,339 |
|
SMBs |
88 |
98 |
103 |
105 |
393 |
|
Global Online |
119 |
126 |
136 |
141 |
521 |
|
Enterprise |
95 |
105 |
106 |
118 |
424 |
|
B&A |
280 |
319 |
342 |
364 |
1,305 |
|
EMEA |
114 |
128 |
127 |
125 |
495 |
|
Latin America |
34 |
38 |
58 |
69 |
199 |
|
North America |
30 |
46 |
42 |
44 |
163 |
|
APAC |
101 |
107 |
113 |
126 |
447 |
|
TOTAL |
581 |
648 |
687 |
727 |
2,643 |
|
|
|
|
|
|
2. NEW REPORTING ON A REPORTED BASIS |
|
|
|
|
In millions of euros |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
|
Retail |
302 |
328 |
345 |
364 |
1,339 |
|
SMBs |
69 |
77 |
82 |
84 |
312 |
|
Global Online |
117 |
124 |
134 |
139 |
514 |
|
Enterprise |
67 |
76 |
75 |
91 |
309 |
|
Payone |
49 |
52 |
54 |
50 |
204 |
|
B&A |
280 |
319 |
342 |
364 |
1,305 |
|
EMEA |
114 |
128 |
127 |
125 |
495 |
|
Latin America |
34 |
38 |
58 |
69 |
199 |
|
North America |
30 |
46 |
42 |
44 |
163 |
|
APAC |
101 |
107 |
113 |
126 |
447 |
|
TOTAL |
581 |
648 |
687 |
727 |
2,643 |
|
|
|
|
|
|
3. NEW REPORTING ON A PRO FORMA BASIS |
|
|
|
|
In millions of euros |
Q1 2018 PF |
Q2 2018 PF |
Q3 2018 PF |
Q4 2018 PF |
2018 PF |
|
Retail |
389 |
425 |
447 |
466 |
1,728 |
|
SMBs |
70 |
78 |
82 |
84 |
314 |
|
Global Online |
117 |
124 |
134 |
139 |
514 |
|
Enterprise |
76 |
86 |
84 |
101 |
348 |
|
Payone |
125 |
137 |
147 |
142 |
551 |
|
B&A |
280 |
319 |
342 |
364 |
1,305 |
|
EMEA |
114 |
128 |
127 |
125 |
495 |
|
Latin America |
34 |
38 |
58 |
69 |
199 |
|
North America |
30 |
46 |
42 |
44 |
163 |
|
APAC |
101 |
107 |
113 |
126 |
447 |
|
TOTAL |
669 |
744 |
789 |
830 |
3,032 |
EXHIBIT
3 Income statements, balance sheet, cash flow
statements
|
1. CONSOLIDATED INCOME STATEMENTS |
|
|
| |
|
|
|
(in millions of euros) |
30 June 2019 |
30 June 2018 |
| |
|
|
|
REVENUE |
1,611 |
1,229 |
|
Cost of sales |
(1,074) |
(768) |
| |
|
|
|
GROSS PROFIT |
537 |
461 |
| |
|
|
|
Distribution and marketing costs |
(149) |
(131) |
|
Research and development expenses |
(98) |
(87) |
|
Administrative expenses |
(152) |
(132) |
| |
|
|
|
PROFIT FROM ORDINARY ACTIVITIES |
137 |
112 |
| |
|
|
|
Other operating income |
4 |
0 |
|
Other operating expenses |
(17) |
(18) |
| |
|
|
|
PROFIT FROM OPERATING ACTIVITIES |
124 |
94 |
| |
|
|
|
NET FINANCE COSTS |
(21) |
(19) |
| |
|
|
|
PROFIT BEFORE INCOME TAX |
103 |
75 |
| |
|
|
|
Income tax expense |
(21) |
(20) |
| |
|
|
|
NET PROFIT |
82 |
55 |
| |
|
|
|
Attributable to: |
|
|
|
- Ingenico Group SA shareholders |
80 |
54 |
|
- non-controlling interests |
1 |
0 |
| |
|
|
|
EARNINGS PER SHARE (in euros) |
|
|
|
Net earnings: |
|
|
|
- basic earnings per share |
1.30 |
0.88 |
|
- diluted earnings per share |
1.30 |
0.88 |
| |
|
|
| |
|
|
|
2. CONSOLIDATED BALANCE SHEET |
|
|
|
|
|
|
|
ASSETS |
|
|
|
(in millions of euros) |
30 June 2019 |
31 Dec. 2018 |
|
Goodwill |
2,802 |
2,490 |
|
Other intangible assets |
1,123 |
965 |
|
Property, plant and equipment |
202 |
90 |
|
Investments in equity-accounted investees |
1 |
8 |
|
Financial assets |
70 |
23 |
|
Deferred tax assets |
51 |
53 |
|
Other non-current assets |
55 |
37 |
|
TOTAL NON-CURRENT ASSETS |
4,305 |
3,666 |
|
Inventories |
214 |
188 |
|
Trade and related receivables |
688 |
651 |
|
Receivables related to intermediation activities |
384 |
243 |
|
Other current assets |
40 |
38 |
|
Current tax assets |
25 |
36 |
|
Derivative financial instruments |
8 |
16 |
|
Funds related to intermediation activities |
751 |
462 |
|
Cash and cash equivalents |
1,094 |
775 |
|
TOTAL CURRENT ASSETS |
3,205 |
2,409 |
|
TOTAL ASSETS |
7,509 |
6,075 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
-- |
|
(in millions of euros) |
30 June 2019 |
31 Dec. 2018 |
|
Share capital |
63 |
63 |
|
Share premium account |
867 |
867 |
|
Other reserves |
1,253 |
990 |
|
Translation differences |
(97) |
(75) |
|
Equity for the period attributable to Ingenico
Group SA shareholders |
2,085 |
1,845 |
|
Non-controlling interests |
269 |
6 |
|
TOTAL EQUITY |
2,354 |
1,850 |
|
Non-current borrowings and long-term debt |
1,960 |
1,864 |
|
Provisions for retirement and benefit obligations |
54 |
21 |
|
Other long-term provisions |
21 |
23 |
|
Deferred tax liabilities |
236 |
204 |
|
Other non-current liabilities |
98 |
59 |
|
TOTAL NON-CURRENT LIABILITIES |
2,369 |
2,171 |
|
Short-term loans and borrowings |
759 |
466 |
|
Other short-term provisions |
22 |
16 |
|
Trade and related payables |
681 |
626 |
|
Payables related to intermediation activities |
1,088 |
665 |
|
Other current liabilities |
189 |
252 |
|
Current tax liabilities |
44 |
27 |
|
Derivative financial instruments |
3 |
2 |
|
TOTAL CURRENT LIABILITIES |
2,787 |
2,054 |
|
TOTAL LIABILITIES |
5,155 |
4,225 |
|
TOTAL EQUITY AND LIABILITIES |
7,509 |
6,075 |
|
3. CONSOLIDATED CASH FLOW STATEMENTS |
|
|
|
| |
|
|
|
|
(in millions of euros) |
30 June 2019 |
31 Dec. 2018 |
|
| |
|
|
|
|
Profit for the period |
82 |
189 |
|
|
Adjustments for: |
|
|
|
|
- Share of profit of equity-accounted investees |
0 |
(0) |
|
|
- Income tax expense/(income) |
21 |
52 |
|
|
- Depreciation, amortization and provisions |
111 |
162 |
|
|
- Change in fair value |
5 |
(1) |
|
|
- (Gains)/losses on disposal of assets |
-4 |
0 |
|
|
- Net interest costs/(revenue) |
20 |
35 |
|
|
- Share-based payment expense |
5 |
0 |
|
|
Interest paid |
(16) |
(24) |
|
|
Income tax paid |
(25) |
(90) |
|
|
Cash flows from operating activities before change in net
working capital |
199 |
323 |
|
|
Inventories |
(23) |
(22) |
|
|
Trade and other receivables |
25 |
(94) |
|
|
Trade payables and other payables |
(6) |
137 |
|
|
Change in net working capital |
(4) |
22 |
|
|
Change in net working capital coming from intermediation
activities |
(8) |
(6) |
|
|
NET CASH FLOWS FROM OPERATING ACTIVITIES |
187 |
339 |
|
| |
|
|
|
|
Acquisition of fixed assets |
(60) |
(117) |
|
|
Proceeds from sale of tangible and intangible fixed assets |
6 |
1 |
|
|
Acquisition of subsidiaries, net of cash acquired |
5 |
(36) |
|
|
Disposal of subsidiaries, net of cash disposed of |
(73) |
|
|
|
Loans and advances granted and other financial assets |
(3) |
(3) |
|
|
Loan repayments received |
2 |
6 |
|
|
Dividend received |
0 |
0 |
|
|
Interest received |
4 |
7 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
(119) |
(143) |
|
| |
|
|
|
|
Proceeds from share capital issues |
(0) |
|
|
|
Purchase/sale of treasury shares |
0 |
(87) |
|
|
Issuance of borrowings |
127 |
304 |
|
|
Proceeds from loans and borrowings |
(0) |
(95) |
|
|
Repayment of loans and borrowings |
- |
(93) |
|
|
Change in the Group’s ownership interests in controlled
entities |
6 |
4 |
|
|
Changes in other financial liabilities |
(15) |
(0) |
|
|
Effect of financial derivative instruments |
0 |
(1) |
|
|
Dividends paid to shareholders |
(4) |
(55) |
|
|
Taxes on financing activities |
- |
4 |
|
|
NET CASH FLOWS FROM FINANCING ACTIVITIES |
114 |
19 |
|
|
Effect of exchange rate fluctuations |
3 |
(3) |
|
|
CHANGE IN CASH AND CASH EQUIVALENTS |
185 |
174 |
|
| |
|
|
|
|
Net cash and cash equivalents at beginning of the year |
763 |
589 |
|
|
Net cash and cash equivalents at year end |
948 |
763 |
|
| |
|
|
|
| |
|
|
|
| |
30 June 2019 |
31 Dec. 2018 |
|
|
CASH AND CASH EQUIVALENT |
|
|
|
|
Short-term investments and short-term deposits (only for the
portion considered as cash equivalents) |
140 |
103 |
|
|
Cash |
954 |
672 |
|
|
Bank overdrafts |
(146) |
(12) |
|
|
TOTAL NET CASH AND CASH EQUIVALENTS |
948 |
763 |
|
EXHIBIT 4
Impact of purchase price allocation
("PPA")
|
(in millions of euros) |
H1 2019 adjusted |
Other D&A |
H1 2019 excl.PPA |
PPA Impact |
H1 2019 incl. PPA |
|
Gross profit |
572 |
(18) |
554 |
(17) |
537 |
|
Operating expenses |
(318) |
(48) |
(366) |
(34) |
(400) |
|
EBITDA/Profit from ordinary activities |
254 |
(66) |
188 |
(50) |
138 |
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 recognized in connection with the award of stock
options, free shares or any other payments to be accounted for
using IFRS 2, share-based compensation.
Reconciliation:
|
(in millions of euros) |
H1 2019 |
H1 2018 |
|
Profit from ordinary activities |
138 |
112 |
|
Allocated assets amortization (PPA) |
50 |
47 |
|
EBIT |
188 |
159 |
|
Other D&A and changes in provisions |
61 |
34 |
|
Share-based compensation |
5 |
1 |
|
EBITDA |
254 |
193 |
1 On a like-for-like basis and at constant rate2
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 share-based compensations.3
On a LTM basis
- PR_ING_GROUP_2019_07_23_VF