March 15, 2006 14:59 ET

INGENICO GROUP : Results for Fiscal Year 2005

NEUILLY-SUR-SEINE -- (MARKET WIRE) -- March 15, 2006 --

- H2 2005 REVENUES UP 6.8% (on a like-for-like basis)






1 ) Key figures:

(IFRS accounting, in millions of euros)

|                         |2004 |2005 |
|Revenue                  |427.4|436.9|
|Gross profit             |163.2|167.7|
|Profit from operations   | 15.7|  8.2|
|Non-recurring items      | -3.9|-38.6|
|Finance costs and income | -9.2| -5.7|
|taxes                    |     |     |
|Loss on disposal of      |    0| -4.0|
|assets                   |     |     |
|Net profit               |  2.6|-40.1|
2) Revenue up 6.8 percent in the second half (on a like-for-like basis)

Ingenico booked EUR 436.9 million in consolidated revenue for the year.

On a like-for-like basis, this translates into annual growth of 3.7 percent and 6.8 percent growth in the second half.

This growth surge demonstrates the transient nature of the delivery problems that were behind the fairly static financials in the first half.

3) Operating profit in line with forecasts

Consolidated profit from operations was EUR 8.2 million in fiscal year 2005, compared to EUR 15.7 million in fiscal year 2004 (IFRS accounting).

Equal to 1.9 percent of revenues, this figure is in line with the Group's September 2005 forecasts.

Operating profit in the second half of 2005 jumped to 3.1 percent of revenue (EUR 7.1 million), up from 0.5 percent of revenue in the first half of 2005 (EUR 1.1 million).

This increase was due above all to improved gross profit for the Group as a whole.

While the cost reduction plan unveiled and implemented last September had no impact on the cost structure in the second half, as anticipated, it will begin to have an impact in the first half of 2006.

4) Finalization of non-recurring charges and provisions

In the second half of 2005, Ingenico finalized the amount of non-recurring provisions required to restructure the Group and implement its new strategy.

After EUR 24 million in the first half, Ingenico recorded non-recurring charges and provisions totaling EUR 14.6 million in the second half.

The following items had a significant impact:

- A EUR 7.3 million restructuring charge to cover a reduction of over 12 percent in the Group's permanent workforce.

- EUR 6.2 million in non-recurring litigation expenses.

A major share of this total went to settling a legal dispute out of court in the United States at the end of the year (including the corresponding attorneys' fees). This was deemed to be the best solution to resolve this dispute.

- EUR 4.8 million to finalize total engineering cost overruns identified in the first half with regard to deployment of a high-end product in a specific region.

Ingenico also booked EUR 3.7 million in exceptional income, derived chiefly from gains on disposal of property.

5) Net profit

As part of a program to dispose of non-strategic assets announced last September, Ingenico in some cases recognized losses based on firm or likely offers received during year end closing.

As required by accounting standards, gains estimated on the same basis will be recognized in 2006 year in which the related transactions are completed.

This entry related to timing, which is in line with the economics presented in Septembe , is a loss of 4 millions euros.

The overall result attributable to Group shareholders in 2005 was a net loss of EUR 40.1 million.

6) Net debt and cash flow

Net debt was EUR 63.4 million at December 31, 2005, compared to EUR 59.3 million at June 30, 2005 and EUR 41.5 million at December 31, 2004.

This positive trend in the second half was due in part to a sharp decrease in Group inventories (down EUR 12 million in the second half).

At December 31, 2005, cash and cash equivalents (i.e. marketable securities) totaled EUR 109.3 million.


In September 2005, Ingenico unveiled a new plan of action aimed at raising profitability to the level achieved by the Group's top competitors while maintaining at least 10 percent organic growth per year.

Implementation has proceeded as initially anticipated, with specific reference to the following points:

- Greater cost control (EUR 14.2 million is expected to be saved in 2006).

- Higher gross profit as a result of the Redesign to Cost program (EUR 7 million is expected to be saved in 2006).

- Supply and industrial chain stabilized and enhanced.

- Reduced inventories.

- Number of product lines scaled back.

Equally encouraging progress has been made in the U.S. banking sector and France, both singled out as top-priority markets:

- A major contract signed with the Bank of America.

- Certification of Ingenico's flagship product in France (I5100).

As part of a program of focusing more heavily on its core business, Ingenico moved during the first quarter of 2006 to sell off several subsidiaries of little strategic interest to the Group or with insufficient market share to be able to make a significant contribution:

- Debitek (a U.S. subsidiary focused on a micro-market of magnetic- stripe card systems) was sold to Heartland Payment Systems in February 2006.

- Ingenico Sweden was sold to BBS in March 2006, along with an exclusive distribution agreement covering the whole of the Scandinavia region.

- ITS (a U.K. subsidiary specializing in purchase card transaction processing) was sold to American Express in March 2006.

Last September, Ingenico publicly forecast that these transactions would bring in EUR 10 million in cash and lead to an annual revenue "shortfall" of EUR 25 million.

However, the outcome was significantly better than anticipated. These asset sales generated EUR 11.9 million in cash, whilst reducing annual revenues at the relevant Group units by only EUR 9.5 million.


2005 was a year of transition for the Group. Today, in light of how successful the plan of action described above has been and how buoyant the market is, Ingenico can confidently assert that it will be meeting the objectives it set for 2006 (10 percent organic growth and a 5 percent operating margin).

Based on currently available information, Ingenico therefore forecasts revenue growth of over 15 percent in Q1 2006.

"A great deal has been accomplished in 6 months' time, and the objectives we announced have been met. 2006 will be the year in which we reap the benefits of the Group's remarkable accomplishments," declared Ingenico CEO Amedeo d'Angelo.

Ingenico will be communicating its results for 2005 to the financial community on March 16 at 8.30 a.m.

About Ingenico

Throughout the world businesses rely on Ingenico for secure and expedient electronic transaction acceptance. Ingenico products leverage proven technology, established standards and unparalleled ergonomics to provide optimal reliability, versatility and usability. This comprehensive range of products is complimented by a global array of services and partnerships, enabling businesses in a number of vertical sectors to accept transactions anywhere their business takes them. For more information about Ingenico, a leading supplier of electronic acceptance technology, please visit



Jérôme Goaër

+33 1 40 71 32 95 -

Laetitia Guillot-Tantay

+33 1 40 71 32 71 -


Caroline Brochard-Garnier


Communication, Groupe Ingenico

190-192 avenue Charles de Gaulle

F-92200 Neuilly-sur-Seine

Tel. + 33 1 46 25 82 56

F-92816 PUTEAUX cedex

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