Philippe Lazare, the Chairman and Chief Executive Officer of Ingenico Group, commented: “Ingenico Group has earned recognition as a growth company. To take that growth further, we will be writing a new chapter in our history in 2016. With the unique positioning we have built up over the past several years, Ingenico Group is poised to strengthen its global leadership in omni-channel payment acceptance to fully meet customer needs. I am confident that our operational excellence, our results-based culture, the quality and commitment of our people will enable us to achieve our ambitious objectives in 2020.”
The electronic payment market is in the midst of a boom driven by the rise of e-commerce, new regulations that restrict the use of physical money around the world and the continuous expansion of the middle class in the emerging economies. As a result of those trends, new consumption patterns and new payment methods have emerged.
Ingenico Group’s unique status as a provider of smart terminals and both online and in-store payment services puts the company in an ideal position to offer its customers simple, secure, omni-channel payment acceptance solutions.
To strengthen its global leadership in omni-channel payment acceptance, Ingenico Group has identified four strategic priorities:
- Strengthen its in-store leadership
- Further develop its position in full-service online payment services by developing cutting-edge features that respond to the needs of large-scale retailers and businesses in the digital economy
- Boost its presence across all channels to be able to offer one-stop omni-channel solutions
- Anticipate technological change and accelerate short-term, medium-term and long-term innovation
- Double-digit annual organic growth combined with €500 million revenue from targeted acquisitions to reach €4 billion revenue in 2020 (at 2015 exchange rates). In the Terminals business, Ingenico Group expects high single-digit average growth between 2015 and 2020. In Payment Services, average growth is expected in the mid-teens, with ePayments at mid to high teen growth.
- 2020 EBITDA margin to reach 22-23%, implying an improved operating performance of +200/300 basis points when compared to preceding mid-term plan target. At the same time, Ingenico Group will continue with strict cost control to improve its operational leverage. In 2016, the Group will be stepping up its efforts to develop and bring to market its offerings in ePayments and to rollout of the new terminal product ranges. Operating expenses will return to a more normal level from 2017 onward.
- The floor for the EBITDA to free cash flow conversion rate is maintained at 45%. The Group plans to limit capital expenditure to approximately 3% to 4% of revenue over the period.
