INGENICO
Paris : ING

February 23, 2012 12:22 ET

INGENICO: FY11 Annual Results

NEUILLY-SUR-SEINE, FRANCE--(Marketwire - Feb 23, 2012) -


FY11 annual results

* 2011 Revenue of over EUR1 billion, objective achieved ahead of plan

* Strong growth in profitability

* Growing contribution of Transactions and Services in total revenue

* An expanded offer in the healthcare vertical market and mobile payments

* Proposed dividend of EUR0.50 (+43%), up for the third year in a row

* Guidance for 2012: growth expected higher than in 2011 and rising profitability

Paris, February 23, 2012 - Ingenico (Euronext: FR0000125346 - ING) announced today its fourth-quarter revenue and its audited financial statements for the year ended December 31, 2011.

                   | 2011  |2010      2010      |   2011/2010 change      |
Key   figures   (in|       |     pro            |                         |
million of euros)  |       |  forma             |                         |
                   |       |                    |                         |
-------------------+-------+--------------------+-------------------------+
                   |       |                    |  Comparable    Reported |
                   |       |                    |   basis[1]       basis  |
-------------------+-------+--------------------+-------------------------+
Revenue            |1 001.1|  926.6     907.0   |      +8%           +10% |
-------------------+-------+--------------------+-------------------------+
EBITDA (2)         | 183.6 |  166.7     165.9   |     +10%           +11% |
As a % of revenue  | 18.3% |  18.0%     18.3%   |    +30 pbs           -  |
-------------------+-------+--------------------+-------------------------+
EBIT (3)           | 154.6 |  125.0     125.7   |     +24%           +23% |
   As a % of       | 15.4% |  13.5%     13.9%   |   +190 pbs     +150 pbs |
revenue            |       |                    |                         |
-------------------+-------+--------------------+-------------------------+
Net          profit| 56.5  |    -        39.6   |       -            +43% |
attributable     to|       |                    |                         |
shareholders       |       |                    |                         |
-------------------+-------+--------------------+-------------------------+

Philippe Lazare, Chairman and CEO of Ingenico, commented: "Thanks to on going buoyant sales throughout 2011, our revenue has exceeded the EUR1 billion threshold for the first time ever. Even in an unsettled macroeconomic environment, Ingenico has achieved impressive operating performance, with 8% organic growth and higher profitability, while carrying on with its investments. In Payment Terminals, we have maintained our solid leadership status in Europe and successfully leveraged the favorable conditions in emerging markets, particularly China, where we have consolidated our number-one position. At the same time, our partnership agreements such as the ones with Google and PayPal in the United-States highlight the key role that Ingenico has come to play in the payment ecosystem.

As forecast, we have stepped up our shift towards Transactions and Services, with the result that recurring business accounts for a growing share of total revenue. We have also continued to invest strategically. Our acquisition of XIRING has enabled us to pursue in the high-potential healthcare market, and with our recent move to a controlling interest in ROAM Data, we are well on our way to an expanded presence in mobile payment. In this context, we begin 2012 with confidence and should deliver higher growth than in 2011 while continuing to improve profitability."

Highlights of the second half and subsequent events

Acquisition of XIRING

By acquiring XIRING, Ingenico has taken a major step towards becoming a leading global provider of secure transaction solutions for the healthcare market, based on XIRING's leadership in France and Ingenico's leadership in Germany. Large- scale programs can now be deployed in countries around the world as they strive to keep healthcare costs under control. XIRING is the number-one provider of solutions to France's healthcare market, currently serving over 25,000 healthcare professionals. The company meets the full range of their needs, from terminal servicing to secure transaction processing.

Move to a controlling interest in ROAM Data

In order to reinforce its mobile payment offer notably for small merchants, Ingenico has taken a controlling interest in ROAM Data, based in Boston, USA. Ingenico has previously held 43% stake since November 2009. The innovative solutions of ROAM combine hardware, software and services for mobile payment, with a m-commerce platform. Its customer list includes merchant service providers such as Global Payments, Sage, Intuit, or First Data. ROAM's mobile readers support multiple devices disregarding the Operating System (iOS, Android and Blackberry to PCs and Macs,.). ROAM also offers turnkey mobile phone POS applications.

2011 financial data

The consolidated financial data has been drawn up in accordance with International Financial Reporting Standards. In order to provide meaningful comparable information, that data has 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 IFRS 3 and to IFRS3R, the purchase price for new entities is allocated to the identifiable assets acquired and subsequently amortized over specified periods.

To facilitate the assessment of Ingenico's performance in 2011, revenue and key financial figures for 2010 have been restated from January 1, 2010 to reflect the change in the scope of consolidation which have occurred during 2010 fiscal year and presented on an adjusted basis ("2010 pro forma"): acquisition of TransferTo, Ingenico Prepaid Services France (formerly Payzone France), Ingenico Services Iberia (formerly First Data Iberica).

Detailed analysis of key audited published financial figures is available in Appendix2.

EBITDA is not an accounting term; it is a financial metric defined here as profit from ordinary activities before amortization, depreciation and provisions and before expenses of shares distributed to employees and officers (the reconciliation of profit from ordinary operations to EBITDA is available in Exhibit3).

EBIT is equal to profit from ordinary activities, adjusted for amortization of the purchase price for newly acquired entities allocated to the identifiable assets acquired.

Operating cash flow is defined as EBITDA less change in working capital less investments net of disposals.

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.

Key figures

(in millions of euros)              2011  |2010       pro        | 2010  |
                                          |           forma      |       |
------------------------------------------+----------------------+-------+
Revenue                            1001.1 |           926.6      | 907.0 |
                                          |                      |       |
Adjusted gross profit               417.1 |           372.4      | 366.1 |
                                          |                      |       |
      As a % of revenue             41.6% |           40.2%      | 40.4% |
                                          |                      |       |
Adjusted operating expenses        (262.5)|          (247.4)     |(240.4)|
------------------------------------------+----------------------+-------+
EBITDA                              183.6 |           166.7      | 165.9 |
                                          |                      |       |
      As % of revenue               18.3% |           18.0%      | 18.3% |
------------------------------------------+----------------------+-------+
EBIT                                154.6 |           125.0      | 125.7 |
                                          |                      |       |
      As a % of revenue             15.4% |           13.5%      | 13.9% |
------------------------------------------+----------------------+-------+
Profit from operating activities    110.8 |             -        | 73.8  |
------------------------------------------+----------------------+-------+
Net profit                          58.0  |             -        | 39.6  |
Net    profit    attributable   to  56.5  |                      | 39.6  |
shareholders                              |                      |       |
------------------------------------------+----------------------+-------+

------------------------------------------+----------------------+-------+
Operating cash flow                 119.2 |             -        | 158.9 |
------------------------------------------+----------------------+-------+
Net debt                            109.7 |             -        | 109.1 |
                                          |                      |       |
Equity       attributable       to  623.5 |             -        | 545.6 |
shareholders                              |                      |       |
------------------------------------------+----------------------+-------+

Revenue up 8.3%

A change in reporting procedure

In 2011, Ingenico went further with reorganization, creating a "Central Operations" division responsible for the following:

* Internal development and production work on terminals sold to sales subsidiaries.

* Businesses operated on an international basis and monitored at Group level, i.e. TransferTo and, starting in the first quarter ROAM Data (controlled by Ingenico since February 12, 2012).

* Entities not yet assigned to a profit center (XIRING).

All of this led Ingenico to change its procedures for internal reporting revenue and therefore segmental information in order to reflect its new structure more adequately. To ensure continuity in quarterly reporting and facilitate the assessment of Ingenico's performance, the quarterly breakdown of 2011 revenue has been provided in Exhibit 4.

+-------------+------------------------------+-----------------------------
+
|             |              2011            |      Fourth quarter 2011   |
|             +------+-----------------------+-----+----------------------+
|             |  EURm|         Change        | EURm|         Change       |
|             |      +-------------+---------+     +-------------+--------+
|             |      | Comparable  | Reported|     | Comparable  |Reported|
|             |      |   basis3    |   basis |     |   basis3    |   basis|
+-------------+------+-------------+---------+-----+-------------+--------+
|Europe-SEPA  |471.6 |    6.0%     |   9.2%  |135.6|    5.3%     |   6.3% |
+-------------+------+-------------+---------+-----+-------------+--------+
|Latin America|173.4 |    7.7%     |   6.9%  |54.3 |    16.0%    |   11.5%|
+-------------+------+-------------+---------+-----+-------------+--------+
|Asia-Pacific |167.8 |    27.9%    |   30.2% |54.0 |    5.1%     |   8.4% |
+-------------+------+-------------+---------+-----+-------------+--------+
|North America| 77.5 |   -22.6%    |  -22.7% |28.3 |    -0.2%    |   -0.7%|
+-------------+------+-------------+---------+-----+-------------+--------+
|EEMEA        | 77.4 |    18.5%    |   8.4%  |26.0 |    40.9%    |   25.4%|
|             |      |             |         |     |             |        |
|Central      |      |             |         |     |             |        |
|Operations   | 33.5 |    63.3%    |  239.9% |13.4 |   115.0%    |  173.0%|
+-------------+------+-------------+---------+-----+-------------+--------+
|Total        |1001.1|    8.3%     |   10.4% |311.6|    11.1%    |   11.2%|
+-------------+------+-------------+---------+-----+-------------+--------+

Performance for the year

In 2011, revenue totaled EUR1,001.1 million, supporting a 10.4% increase on a reported basis. Revenue included a negative foreign exchange impact of EUR7.8 million and revenue from 2011 acquisitions of EUR5.6 million. Total revenue included EUR833.7 million generated by the Payment Terminal business (hardware, servicing and maintenance) and EUR167.3 million generated by Transaction Services.

On a like for like basis, revenue was 8.3% higher than in 2010. This performance can be attributed to a higher-than-expected increase in payment terminal sales (up 6.0%), driven by strong demand in China during the year and by rising sales in Brazil towards the end of the fourth quarter. The accelerating growth in Transaction Services revenue (21.8%, compared with 16.4% en 2010) was due to rising, consistently buoyant demand for easycash and Axis services and to TransferTo. Excluding TransferTo, Transaction Services grew by 14.6% during the year.

In 2011, all regions contributed to the Group's overall growth, with the anticipated exception of North America which has nevertheless started its sales recovery in the second half. Ingenico has continued to leverage growth in emerging markets (4) which now generate 45% of total revenue, up from 41% in 2010 on a pro forma basis:

* Rapid growth has continued in Asia-Pacific (up 28%), driven by the deployment of payment equipment in China and the Group's expanding sales presence in South-East Asia, particularly in Indonesia.

* Favorable business trend in Latin America (up 8%), as sales have remained strong in Brazil with an acceleration at the end of the fourth quarter, and expanded in Mexico.

* Ingenico's business in the EEMEA region has continued to recover (up 18.5%), including sustained sales growth in Russia, the Middle East and Africa.

Business has likewise held up well in Europe-SEPA (up 6%), where Ingenico has consolidated its payment terminals positions. At the same time, the Group has successfully leveraged its expanding Transaction Services business through easycash and rising sales of the Axis solution, particularly on a pan- European scale.

While the full-year revenue figures in North America decreased by 23%, and as anticipated, sales have picked up in the United States during the second half as the first Telium terminals were shipped. During the fourth quarter, Ingenico began working with ISOs (Independent Sales Organizations) and acquirers to equip merchants, with the first roll-out of an offer towards small merchants carried out ahead of schedule.

The Group's "Central Operations" division reported strong growth (63%), due to expanding business for TransferTo.

In 2011, the share of total revenue generated by recurring business (servicing, maintenance and transaction services) rose to 31%, up by a substantial 300 basis points compared with 2010 (on a reported basis).

Performance in the fourth quarter

Business growth accelerated in the fourth quarter of 2011, generating revenue of EUR311.6 million, which was 11.1% higher than in 2010 on a pro forma basis. That result includes a EUR3.9 million negative foreign exchange effect and the EUR4.1 million contributed by entities acquired in 2011 (EUR2.7 million of which was added by XIRING in December). Payment Terminal revenue was EUR261.2 million, while Transaction Service revenue was EUR50.4 million.

Sales performance in Brazil proved stronger than expected in December, and the trends anticipated in the other regions were validated during the fourth quarter. Business was up in the other emerging markets: growth in Asia- Pacific (up 5%) was impacted, as expected, by an unfavorable basis of comparison with the 57% growth reported in Q4 2010, while EEMEA confirmed recovery (up 41%).

In the Europe-SEPA region, Ingenico once again achieved robust growth (up 5%) and has seen no impact of macroeconomic development on sales performance.

Business remained steady in North America. Revenue increased in the United- States, while performance in Canada was impacted by an unfavorable basis of comparison with the prior-year period.

The "Central Operations" division posted high growth (up 115%) driven by expanding business for TransferTo.

Gross profit up 140 basis points

On a pro forma basis, gross profit for the full year increased by 140 basis points to 41.6%. The main driver of this performance was the 190 basis- point improvement in gross profit on the Payment Terminal business (hardware, servicing and maintenance), which reached 42.6% of revenue in 2011, due notably to the continuous improvement in gross profit on hardware and good margin performance in maintenance.

Gross profit on Transaction Services was 36.8%, compared with 37.4% in 2010 on a pro forma basis, reflecting TransferTo's growth, which has a dilutive impact on gross profit. Excluding TransferTo, gross profit increased by 140 basis points from 42.4% in 2010 to 43.8% in 2011.

Operating expenses under control

Operating expenses represented 26.2% of revenue, 50 basis points lower than the 2010 pro forma figure.

On a comparable basis, operating expenses rose slightly from EUR247.4 million in 2010 (pro forma) to EUR262.5 million in 2011. This increase was primarily attributable to the higher sales and administrative expenses related to the expansion of support functions at Group and regional levels.

EBITDA1 up 10%

EBITDA increased by 10% to EUR183.6 million, compared with EUR166.7 million in 2010 (pro forma). The EBITDA margin was 18.3% of revenue, up 30 basis points against 2010 pro forma.

EBIT2 margin up 190 basis points

In 2011, EBIT increased by 23.7% to EUR154.6 million, compared with EUR125.0 million in 2010 (pro forma). EBIT margin was 15.4% of revenue, up 190 basis points. The primary explanation for this change was a decrease in the provision for non- quality risk, which had a substantial impact on the 2010 financial statements (EUR6.1 million in the first half of 2010).

Significant growth in profit from operations, up 50%

In 2011, Purchase Price Allocation expenses (MoneyLine, Planet, Sagem Monetel, Landi, easycash and XIRING) decreased to EUR26.2 million and other operating income and expenses amounted for -EUR17.6 million, compared to -EUR23.1 million in 2010. Other operating income and expenses primarily included costs for the migration of applications to Telium2 platform (EUR3.4 million), the costs of transferring the head office (EUR4.2 million) and the (ISS) tax settlement in Brazil (EUR3.4 million).

After accounting for Purchase Price Allocation expenses and other operating income and expenses, profit from operations rose by 50% to EUR110.8 million from EUR73.8 million in 2010. Operating margin increased by 300 basis points to 11.1% of revenue.

Significant growth in net profit attributable to shareholders, up 43% to EUR56.5 million

In 2011, the net profit attributable to Ingenico S.A. shareholders was EUR56.5 million, compared with 39.6 million in 2010.

This figure included a rise in total finance costs to EUR27.1 million (versus EUR9.8 million in 2010). This increase is primarly due to non-cash impact (-EUR9.4 million) of accounting for the convertible bond issued in March 2011 in accordance with IFRS and the accelerated amortization of the expense of putting in place the syndicated credit facility in 2009 that was refinanced in August 2011. The net profit attributable to Ingenico S.A. shareholders also included foreign exchange losses of EUR4.1 million resulting from the impact of exchange rate fluctuations on the conversion of transactions in foreign currencies.

Income tax expense was stable at EUR22.5 million (compared with EUR22.7 million in 2010), and the tax rate stood at 26.9% (5) in 2011, versus 35.5% in 2010. The decrease in the tax rate is mainly due to the abnormally high rate in 2010 resulting from non-recurring expenses (particularly goodwill in North America), and growing contribution to Group results from Landi, an entity taxed at below the average rate for the Group.

Proposed dividend of EUR0.50 per share, up 43%

In 2011, net earnings per share were EUR1.11, up from EUR0.81 in 2010. The Board of Directors will be proposing that the shareholders vote at their Annual Meeting of May 3, 2012 to increase the dividend for the third year in a row to EUR0.50 per share, with dividends payable in cash or in shares, at the option of the holder.

Enhanced financial position

Total equity attributable Ingenico S.A. sharholders increased to EUR623.5 million at December 31, 2011.

Net debt at December 31, 2011 remained stable at EUR109.7 million (versus EUR109.1 million at December 31, 2010).

The EUR119.2 million generated in operating cash flow (6) resulted from high EBITDA1, efficient management of investments net of disposals excluding financial investments (EUR34.4 million, representing 3.4% of revenue) and the impact of a negative change in working capital of EUR30.0 million, mostly due to the remedy of a temporary postponed payment to suppliers as at December 31, 2010 and lower inventory at December 31, 2011.

Cash flow from investing activities totaled EUR107.3 million, up 41% as a result of acquisitions carried out during the year, particularly the acquisition of XIRING for EUR53.8 million in December 2011.

Cash flow from financing activities totaled EUR191.8 million, primarily from the EUR250 million convertible bond issued on March 11, 2011 maturing on January 1, 2017 and the repayment of the EUR34 million acquisition credit facility taken out in June 2010. This figure also includes a cash dividend payment of EUR5.3 million.

Ingenico's main financial ratios at December 31, 2011 demonstrate the Group's strong financial structure. At December 31, 2011 the net debt to equity ratio was 18%. The net debt to EBITDA1 ratio was 0.6x.

2012 outlook

Ingenico has begun 2012 with confidence in its ability to continue to grow both revenue and profitability with its accelerated move towards transactions and services along with recent strategic investments.

As 2012 gets off to a start, business seems to be holding up in all segments, and should continue to expand in emerging markets and North America. In Europe, Group has not observed any decrease in demand in Payment Terminals at this stage despite current economic environment and the outlook for Transaction Services for the first few months of the year confirms its growth forecast.

Ingenico should post a revenue growth greater than 8% on a comparable basis (on a like-for-like basis at constant exchange rates) and EBITDA1 margin growth of 18.3% or higher.

Thanks to its hedging policy, Ingenico does not anticipate that changes in the U.S. dollar/euro exchange rate will have a material impact on its accounts.

CONFERENCE CALL

A conference call to discuss Ingenico's Q4'11 revenue and FY 2011 results will be held on February 24, 2012 at 8.30am, Paris time. Dial in number: 01 70 99 32 12 (French domestic) or +44 (0)20 7162 0177 (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.

Next events

Conference call on Q4 revenue & FY11 results: February 24 at 8.30am (Paris) Q1 12 revenue: April 19, 2012 Annual Meeting of Shareholders: May 3, 2012


EXHIBIT 1: Income statement, balance sheet, cash flow statement


1. CONSOLIDATED INCOME STATEMENT (AUDITED)

2. CONSOLIDATED BALANCE SHEETS (AUDITED)

3. CONSOLIDATED CASH FLOW STATEMENTS (AUDITED)

EXHIBIT 2: Detailed breakdown of reported financial information, from revenue to operating income

Reported revenue up 10.4%

+----------------------+---------------------------+-------------------- -+
|(in millions of euros)|          Q4 2011          |           2011       |
|                      +-----+---------------------+------+---------------+
|                      | EURm  | Change in reported  |  EURm  | Change in |
|                      |     |        data         |      | reported data |
+----------------------+-----+---------------------+------+---------------+
|Europe-SEPA           |135.6|        6.3%         |471.6 |        9.2%   |
|                      |     |                     |      |               |
|Latin America         |54.3 |        11.5%        |173.4 |        6.9%   |
|                      |     |                     |      |               |
|Asia-Pacific          |134.0|        8.4%         |167.8 |       30.2%   |
|                      |     |                     |      |               |
|North America         |28.3 |        -0.7%        | 77.5 |       -22.7%  |
|                      |     |                     |      |               |
|EEMEA                 |26.0 |        25.4%        | 77.4 |        8.4%   |
|                      |     |                     |      |               |
|Central Operations    |13.4 |       173.0%        | 33.5 |       239.9%  |
+----------------------+-----+---------------------+------+---------------+
|Total                 |311.6|        11.1%        |1001.1|       10.4%   |
+----------------------+-----+---------------------+------+---------------+

Full year performance

In 2011, revenue totaled EUR1,001.1 million, up 10.4% on a reported basis. Revenue included a negative foreign exchange impact of EUR7.8 million and revenue from 2011 acquisitions of EUR5.6 million. Total revenue included EUR833.7 million generated by the Payment Terminal business (hardware, servicing and maintenance) and EUR167.3 million generated by Transaction Services.

In 2011, all regions contributed to the Group's overall growth, with the anticipated exception of North America which has nevertheless started its sales recovery in the second half. Ingenico has continued to leverage growth in emerging markets, particularly in Asia-Pacific (equipment in China), in Latin America (activity remained dynamic in Brazil) and confirmed recovery in EEMEA (sustained sales growth in Russia, the Middle-East and Africa).

Business has likewise held up well in Europe-SEPA (up 6%). Revenue in North America remained down and as anticipated, sales have picked up in the United States during the second half as the first Telium terminals were shipped. The Group's Central Operations division reported strong growth (up 63%), due to expanding business for TransferTo.

Fourth quarter performance

Business growth accelerated in the fourth quarter of 2011, generating revenue of EUR311.6 million, which was 11.1% higher than in 2010 on a pro forma basis. That result includes a EUR3.9 million negative foreign exchange effect and the EUR4.1 million contributed by entities acquired in 2011 (EUR2.7 million of which was added by XIRING in December). Payment Terminal revenue was EUR261.2 million, while Transaction Service revenue was EUR50.4 million.


Sales performance in Brazil proved stronger than expected in December, and the trends anticipated in the other regions were validated during the fourth quarter. Business was up in the other emerging markets and in the Europe-SEPA region, Ingenico once again achieved robust growth and had no indication that sales performance was affected by macroeconomic developments.

Business remained steady in North America. Revenue increased in the United- States, while performance in Canada was impacted by an unfavorable basis of comparison. The Central Operations division posted high growth driven by expanding business for TransferTo.

Gross profit up 120 basis points

Gross profit amounted to EUR416.8 million, compared with EUR366.1 million in 2010. Gross profit included EUR0.3 million of amortization expense on allocated assets. Gross profit gained 120 basis points to 41.6% thanks to higher gross profit in Payment Terminal (hardware, servicing and maintenance).

Operating expenses under control

Reported operating expenses stood at EUR288.3 million in 2011, up from EUR269.2 million in 2010. This figure includes the EUR25.8 million amortization expense on allocated assets. This increase was primarily attributable to the higher sales and administrative expenses related to the expansion of support functions at Group and regional levels. Operating expenses were equaled to 28.8% of revenue, 90 basis points lower than the 2010 figure.

EBITDA1 up 11%

EBITDA increased 11% to EUR183.6 million, compared with EUR165.9 million in 2010. The EBITDA margin was 18.3%.

Margin on ordinary activities up 210 basis points to 12.8%

Reported profit from ordinary activities grew by 33% to EUR128.5 million, versus EUR96.9 million in 2010. Margin on ordinary activities was equal to 12.8% of revenue, an increase of 210 basis points year on year. The main difference with EBIT2 is due to Purchase Price Allocation.

Margin on operating activities up 300 basis points to 11.1%

Profit from ordinary activities increased by 50% to EUR110.8 million, versus 73.8 million in 2010. Profit from ordinary activities included other operating income and expenses for -EUR17.6 million, compared to -EUR23.1 million in 2010. Other operating income and expenses primarily included costs for the migration of applications to Telium2 platform (EUR3.4 million), the costs of transferring the head office (EUR4.2 million) and the (ISS) tax settlement in Brazil (EUR3.4 million).

Margin on operating activities was equal to 11.1% of revenue, an increase of 300 basis points year on year.

EXHIBIT 3: 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          2011  Pro forma 2010  2010
----------------------------------------------------------------------
EBITDA                                     183.6      166.7      165.9
----------------------------------------------------------------------
Allocated assets amortization              (25.7)     (27.3)     (25.8)

Other amortization and provisions for
liabilities                                  1.2       (9.1)      (9.1)

Share based payment expenses                (4.5)      (5.3)      (5.3)
----------------------------------------------------------------------
Profit from ordinary activities/EBIT       154.6      125.0      125.7
----------------------------------------------------------------------

EXHIBIT 4: 2011 quarterly revenue as per new segmental reporting

Ingenico changed its procedures for internal reporting revenue and therefore segmental information in order to reflect its new structure more adequately.

To ensure continuity in quarterly reporting and facilitate the assessment of Ingenico's performance, the quarterly breakdown of 2011 revenue is as follows:

| EEMEA             |  10.7   |  21.4   |  19.3   |  26.0   |  77.4  |
+-----------------------+---------+---------+---------+---------+-----
|Central Operations |   5.8   |   6.2   |   8.1   |  13.4   |  33.5  |
+-----------------------+---------+---------+---------+---------+-----
| Total             |  204.9  |  235.3  |  249.2  |  311.6  | 1001.1 |
+-----------------------+---------+---------+---------+---------+-----

(1)On a like for like basis at constant exchange rates and constant Group scope (2)Profit from ordinary activities before depreciation, amortization and provisions, and before expenses of shares distributed to employees and officers

(3)Profit from ordinary activities restated to reflect amortization of the purchase price for new entities allocated to the identifiable assets acquired (4)The term "emerging markets" refers here to Latin America, Asia-Pacific, EEMEA and TransferTo. (5)Tax rate: tax expense/(profit before income tax - share of profits of associates) (6)Operating cash flow from operations is defined as EBITDA, less change in working capital and investments net of disposals.

ingenico: http://hugin.info/143483/R/1588646/498624.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: INGENICO via Thomson Reuters ONE

[HUG#1588646]

Contact Information

  • INGENICO
    Investor Relations
    Catherine Blanchet
    Investor Relations Director
    Email Contact
    +33 1.58.00.85.68

    INGENICO - Corporate Communication
    Remi Calvet
    VP Communication
    Email Contact
    +33 1.58.00.80.80