INGENICO: Growth still very strong in the third quarter of 2012

Ingenico: Growth still very strong in the third quarter of 2012

• Q3 2012 revenue of €311.3 million, up 24.9 percent on a reported basis and 16.7 percent on a comparable basis 
   
• Revenue for the first nine months of €853.6 million, up 23.8 percent on a reported basis and 16.5 percent on a comparable basis1
   
• Double-digit growth in all segments
   
• Full-year guidance raised for revenue and confirmed for profitability:
  • Revenue forecast at between €1.18 and €1.2 billion, representing organic growth of 12 percent or above
  • EBITDA margin^[2] expected to reach or exceed 18.3%

Paris - October 24, 2012. Ingenico (Euronext: FR0000125346 - ING) announced today its revenue figures for the third quarter of 2012.

Philippe Lazare, the Chairman and CEO of Ingenico, commented: "We are extremely pleased with our outstanding performance in the third quarter, which follows the trends observed in the first half of the year. Our product offer perfectly fits demand in all of our Regions, and we have achieved double-digit growth across all of our segments.

In addition, we continue to invest in markets and businesses with high long-range potential for our Group, notably in the United States and in mobile payment through our ROAM Data solutions and Ingenico product ranges.

Despite ongoing macroeconomic uncertainty, we are fully confident in achieving our annual targets. In fact, we have raised our full-year revenue growth guidance to 12 percent or above, while our EBITDA margin is still expected to reach or exceed 18.3 percent."

Q3'12 revenue

To facilitate the assessment of Ingenico's performance in 2012, revenue and key financial figures for first half 2011 have been restated from January 1, 2011 to reflect the change in the scope of consolidation which have occurred during 2011 fiscal year (acquisition of TNET, Paycom and XIRING).

Following IAS 18, revenue from certain activities related to transaction services operated by the Group (TransferTo and "Credit Acquiring" of easycash) is presented gross without deducting TransferTo's payments to operators and interchange fees paid by easycash for credit acquiring, respectively.

In 2011, the Group changed its internal reporting revenue and therefore its segmental information in order to reflect its new structure more adequately. As a consequence, Group created a "Central Operations" division responsible for internal development and production work on terminals sold to sales subsidiaries, as well as businesses operated on an international basis and monitored at Group level, i.e., TransferTo, XIRING and ROAM Data (controlled by Ingenico since February 10, 2012).

Performance in the first nine months

In the first nine months of 2012, revenue totaled €853.6 million, including a positive foreign exchange impact of €19.3 million and a €9.1 million contribution from ROAM Data. Total revenue included €687.0 million generated by the Payment Terminal activity (hardware, servicing and maintenance) and €166.6 million generated by Transaction Services.

On a comparable basis¹, revenue was up 16.5 percent, driven by dynamic expansion in all segments. Growth was particularly strong in Payment Terminals (+13.9 percent¹), showing continuity with the trends observed since the start of the year. Revenue from Transaction Services also continued to rise (up 28.7 percent) thanks to the development of TransferTo. Excluding TransferTo, organic growth in Transaction Services reached 10.1 percent in the first nine months.

Since the start of the year, all regions have contributed to the Group's overall performance. Ingenico has continued to leverage both high growth in emerging markets and shifts in the competitive landscape. The business trend has remained favorable in Latin America (up 28 percent), EEMEA (up 25 percent) and Asia-Pacific (up 6 percent), fueled by the results in China and Southeast Asia.

Sales performance has remained outstanding in the Europe-SEPA Region (up 14 percent), where Ingenico has gained further market share in Payment Terminals. The Group's business in North America has recovered (up 13 percent), particularly in the United States, where revenue has increased by 25 percent. Ingenico has successfully deployed its EMV and contactless terminals, equipping both large retailers and, to a lesser but growing extent, small merchants through distributor networks and Independent Sales Organizations (ISOs). The Group's Central Operations activity has posted a 25-percent increase in revenue driven by the vigorous growth of TransferTo's business.

Services, Maintenance and Transactions accounted for 32 percent of total revenue, with Transactions alone contributing 19.5 percent, up 250 basis points compared with the reported figure for the first nine months of 2011.

Performance in the third quarter

In the third quarter of 2012, revenue totaled €311.3 million, up 24.9 percent on a reported basis. This included a positive foreign exchange impact of €9.7 million and a €5.0 million contribution from ROAM Data. Total revenue included €254.2 million generated by the Payment Terminal activity and €57.1 million generated by Transaction Services.

On a comparable basis¹, revenue was 16.7 percent above the Q3 2011 pro forma figure, fueled by double-digit growth in all segments. Revenue growth in Payment Terminals accelerated to 16.0 percent¹ and the expanding business of TransferTo helped boost Transaction Services revenue by 19.9 percent¹. Excluding TransferTo, Transaction Services revenue was up 3.4 percent as a result of lower growth of transaction volume in Germany and a decrease in Spain.

Organic growth was very strong across all regions except for Central Operations, with an acceleration observable in the Europe-SEPA Region (up 16 percent), Latin America (up 40 percent) and EEMEA (up 29 percent), where Ingenico has successfully leveraged its product offer and a changing competitive landscape. Sales activity remained dynamic in Asia-Pacific (up 6 percent) and showed continued improvement in North America (up 9 percent).

Performance for the quarter, by geography and on a like-for-like basis compared with the third quarter of 2011:

• Europe-SEPA (up 16.5 percent): Ingenico has continued to benefit from strong growth in the Payment Terminals business, leveraging changing competitive landscape of Europe's key markets, notably in the United Kingdom, France and Spain.
   
• Latin America (up 40.1 percent): The main driver of enhanced performance was extremely strong sales growth in Brazil whereas business continued to expand in the other countries in the region. In Brazil, the Group's new range of mobile terminals has enjoyed strong uptake. At the same time, the renewal of payment terminal estates and the emergence of new players in the acquiring business have been beneficial to Ingenico.
   
• Asia-Pacific (up 5.7 percent): The Group's performance was supported by consolidation of its already strong position in China, where double-digit growth has continued, and also by increasing market presence in Southeast Asia.
   
• North America (up 9.0 percent): Sales in the region showed further recovery. In the United States, Ingenico has begun to reap the benefits of its strategy of targeting the small merchant segment, ahead of its deployment plan. New agreements have been signed with major transaction acquirers and Independent Sales Organizations, which are expected to pay off as of 2013.
   
• EEMEA (up 28.7 percent): The high business growth in the region is primarily attributable to strong development in Russia, where Ingenico strengthened its direct presence by acquiring its distributor last April.
   
• Central Operations (down 6.4 percent): Performance in the region was affected by the anticipated decrease in the highly cyclical healthcare business in Germany, which had performed exceptionally well last year. TransferTo has continued to enjoy dynamic growth (in excess of 90 percent).

Outlook

Over the first nine months of the year, Ingenico's Payment Terminal business did extremely well, particularly in the Europe-SEPA Region and Brazil, with growth in emerging markets and changing competitive landscape fueling performance.

On this basis, Ingenico raises its full-year revenue guidance. Revenue was initially forecasted to exceed €1.14 billion, generating organic growth¹ of more than 8.3 percent. Ingenico expects now full- year revenue to range between €1.18 billion and €1.2 billion, translating into organic growth higher than or equal to 12 percent. The Group reminds that the fourth quarter of 2011 represents a very high basis of comparison, given that independently of underlying economic conditions, revenue in that period were particularly high in the Europe-SEPA Region and in Latin America.

In addition, Ingenico maintains its outlook for EBITDA margin², expected to exceed or to be equal to 18.3%, with an EBITDA between €216 million and €221 million. Ingenico thus demonstrates its ability to consolidate profitability at a high level, even as the Group continues to invest in future sources of growth, notably in the United States and in mobile payments.

CONFERENCE CALL

A conference call to discuss Ingenico's Q3 revenue will be held on October 24, 2012 at 6.00 p.m., Paris time. Dial-in number: 01 70 99 32 12 (French domestic) or +44 (0)207 1620 177 (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. These data, assumptions and estimates may change or be amended as a result of uncertainties connected in particular with the performance of Ingenico and its subsidiaries. These statements are by their nature subject to risks and uncertainties as described in Ingenico 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 therefore makes no firm commitment on the realization of the growth objectives shown in this release. Ingenico 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 (Euronext: FR0000125346 - ING)

Ingenico is a leading provider of payment solutions, with over 17 million terminals deployed in more than 125 countries. Its 3,600 employees worldwide support retailers, banks and service providers to optimize and secure their electronic payments solutions, develop their offer of services and increase their point of sales revenue. More information on www.ingenico.com.

 EXHIBIT 1:

2011 pro forma key financial figures

To facilitate the assessment of Ingenico's performance in 2012, revenue and key financial figures for 2011 have been restated from January 1, 2011 to reflect the group's scope of consolidation as of January 1 2012 and presented on an adjusted basis ("2011 pro forma"), i.e. including the change in the scope of consolidation which have occurred during 2011 fiscal year: acquisitions of TNET, Paycom and XIRING. These figures have been adjusted to the evolution of recognition of exchange gains or losses arising on translation of transactions denominated in foreign currency ("pro forma 2011 restated"). A net charge of €3.9 million has been reclassified from net finance costs to cost of sales.

* Group scope as of January 1, 2012

Pro forma quarterly revenue: