INGENICO GROUP: 2018 full year results - Challenging year - Improved revenue trajectory in the second half 2018 - 2019 EBITDA above €550m -Launch of Fit for Growth transformation plan

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Ingenico Group (Euronext: FR0000125346 - ING), the global leader in seamless payment, today announced its 2018 full-year results.

Nicolas Huss, Chief Executive Officer of Ingenico Group, commented:

In 2018, revenue totalled €2,643 million, representing a 2% increase on a comparable basis, with an acceleration in the second semester while organic growth reached 6%. On a reported basis revenue was 5% higher than 2017 and was including a negative foreign exchange impact of €110 million.

Over the year, posted a revenue of €1,305 million, a decrease of 4% on comparable basis, but returning to a slight organic growth of 2% in the second semester. On a reported basis the activity decreased by 8% and was including a negative foreign exchange impact of €62 million.

The Business Unit reported a revenue of €1,339 million, showing an increase of 8% over the period on comparable basis, with a strong organic growth acceleration in the second semester reaching double digit. On a reported basis, revenue increased by 22% during the year and was including a negative foreign exchange impact of €48 million.

In 2018, adjusted gross profit reached €1,048 million, down 2% compared to €1,066 million in 2017, and representing 39.6% of revenues.

In 2018, adjusted operating costs were €560 million, representing 21.2% of revenue, compared to €540 million in 2017 when adjusted operating costs represented 21.6% of revenue.

The short term savings plan launched in July 2018 delivered €15 million in the second half of this year.

EBITDA was €488 million against €526 million in 2017, representing an EBITDA margin of 18.4%, down 1.9 points compared to the 2017 pro forma figures and 2.6 points compared to 2017 on a reported basis.

The EBITDA stood at €277 million, down from €371 million last year. It represented a 21.2% EBITDA margin, down 4.8 points compared to the 26% pro forma EBITDA margin of 2017, significantly impacted by the negative geographical mix.

The EBITDA came in at €210 million, up 18% versus last year. The margin this year represented 15.7%, up 1.9 points compared to the 2017 pro forma EBITDA, driven by the repositioning of the business unit carried out over the past two years.

EBIT margin represented 15.7% of revenue and reached €416 million, compared to €453 million in 2017.

The other income and expenses reached €-48 million compared to €-30 million in 2017. The increase is mainly due to reorganization and M&A related costs. The operating income also includes price purchase allocation costs that represented €90 million in 2018 compared to €52 million in 2017 (see exhibit 4).

After taking into account the other income & expenses and price purchase allocation above described, operating income was €278 million (10.5% of revenue), against €371 million in 2017 (14.8% of revenue).

The financial results account for €-38 million compared to €-27 million in 2017. Income tax were reduced to €52 million in 2018 from €86 million in 2017. This improvement is mainly explained by the US tax reform and a more favourable change in the country mix. Those changes led to an effective tax rate for the Group of 21.5%, against 25.0% in 2017.In 2018, Group net profit attributable to shareholders came in at €188 million, against €253 million in 2017.

The adjusted free cash flow4 was up 6% in 2018 at €285 million, i.e. a conversion rate of 59%. The group's operations, post other income and expenses, generated a free cash flow of €238 million, i.e. an FCF/EBITDA conversion ratio of 49%. The capital expenditures increased as expected to €117 million against €88 million in 2017.

The Group's net debt increased slightly to €1,518 million against €1,471 million one year ago. This was mainly due to the purchase of the 20% stake in Ingenico Holdings Asia Limited, that of Airlink and €87 million of Ingenico's shares buyback. The ratio of net debt to EBITDA is up to 3.1x from 2.8x at the end of 2017, but down from the first half of 2018 that landed at 3.6x.

In line with the Group's dividend policy, a proposal to distribute a dividend of €1.10 per share will be presented to the Annual General Meeting of shareholders on 11 June 2019, representing a distribution rate of 36%. This dividend will be payable in cash or shares, according to the holder's preference.

In the fourth quarter of 2018, Ingenico Group reported a revenue of €727 million, up 5% on a comparable basis compared to the fourth quarter 2017. On a reported basis, revenue increased by 5% including a negative foreign exchange impact of €17 million.

The Business Unit continued to grow in the fourth quarter with revenue reaching €364 million, up 9% on a comparable basis. On a reported basis, revenue increased by 12%, impacted by a negative foreign exchange impact of €6 million. Compared with Q4'17, the various activities performed as follows on a like-for-like basis:

The Business Unit has stabilized over the last quarter with a revenue increase of 1% in a comparable basis. On a reported basis revenue reaching €364 million, down 1% and negatively impacted by €11 million of foreign exchange. Compared to Q4'17, the various regions performed as follows on a like-for-like basis:

2019 will be a year of transformation as the Group will be focused on three main structural projects through the Fit for Growth plan. This plan encompasses the following streams:

The Fit for Growth plan is expected to deliver €35 million net savings in 2019 while €15 million will be invested to seize future growth opportunities.

The group expects the Retail EBITDA above €270 million, and the B&A EBITDA at c. €280 million.

The 2018 full-year financial results will be discussed in a Group telephone conference call to be held on 12 February 2018 at 6.00pm Paris time (5.00pm UK time). A presentation will be available at . 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: .

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.

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First quarter 2019 revenues: 23 April 2019 (post market)Capital Markets Day: 24 April 2019

EBITDA represents profit from ordinary activities, restated to include the following:

Reconciliation:

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Globe Newswire: 16:44 GMT Tuesday 12th February 2019

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