CREATION OF A LEADER IN THE IDENTIFICATION AND ... · P. Mc Enaney Director Paragon ID UK ......

Information meeting

16 may 2017

MERGER OF ASK WITH THE IDENTIFICATION DIVISION OF PARAGON GROUP LTD.

CREATION OF A LEADER

IN THE IDENTIFICATION AND TRACEABILITY MARKET

Copyright Paragon Group Ltd. 2017


Management & Governance Paragon ID

2

L. SalmonCFO Paragon Group Ltd.

▪ Board

J. Rogers

ChairmanVP Corporate Development

Paragon Group Ltd.

V. Huot

Board Member - Representing

LBO France GestionPartner, Head of Innovation Capital

D. Durant des Aulnois

Board MemberParagon ID

L. Astall

Non-Executive Board

MemberInterim chair of UK Sport

▪ Paragon

Group Ltd.

▪ Management team

J. Zuccarelli

General Manager

Paragon ID

F. Gauthier

Director

Paragon ID EMEA

P. Mc Enaney

Director

Paragon ID UK

T. Burgess

Director

Paragon ID USA


Presentation of Paragon Group Ltd.

3

A EUROPEAN LEADER

• Paragon Customer Communications

• Paragon ID

A GLOBAL ORGANISATION

+€625 M PROFORMA TURNOVER

+€40 M PROFORMA EBITDA

PRIVATE OWNERSHIP

• 77.3% of the capital is controlled by M. Patrick J. Crean, Chairman & CEO

• Balanced detained by the management team

STRONG BANKING PARTNERSHIPS


Strengths of the Paragon Group

4

A corporate team with a strong M&A experience

An ability to attract new talents

A thorough financial discipline

An entrepreneurial approach focused on profitabilityimprovement


Division Paragon CC

5

▪ eCommerce Website development, development of e-commerce

and web2print platforms.

▪ Data Big data management

▪ Marketing Multichannel campaigns

Multi-site marketing multipoint for concessions

Management of customer logins

▪ Document management Print and digital

Documents (Operational, transactionnal, legal, secure& technical)

BPO


Division Paragon ID

6

▪ e.ID (national identity)

▪ Transport & Smart Cities

▪ Traceability and brand protection


A strong track-record of external growth

7

2000 2005

Strong track-record :

+30 acquisitions +15 years

Proven expertise in

business integration

Ability to transform and

turn around companies

2010 2015 2017

Hardys of Castleford

Wordcraft Digital Print

Eddotrans

Aiza Print Mgt.

Ward Knowles

Wright Printing Services

Lithotech Fka Danel

IFCO

Horner Brothers

Stralfors Magnetic

RR Donneley

IRS

Harlands of Hull

Impectus

Pressure Seal Systems

Rault-EPPE

D’Haussy


Paragon Group Ltd - key numbers

8

Paragon CC

Paragon ID

€625m

€110m €515m

NB : Paragon’s financial year starts July 1st and ends June 30th.

2016/17pro forma

176

315

400

625+

2013/14 2014/15 2015/16 2016/17pro forma

9

15

24

40+

2013/14 2014/15 2015/16 2016/17pro forma

Turnover debt ratio 2x EBITDA


April 2017 : Creation of Paragon ID

9

▪ Paragon Group Ltd. Contributed to ASK its

shares in the six companies making up the

Paragon Identification (PID) branch in exchange

of

• 45 706 119 new ASK ordinary shares valued at €1,92672 per share

• €10m convertible bonds issue

• €10m non-convertible bonds issue

▪ Objective to remain quoted on the stock

exchange and to use the quote to accelerate

growth plans

▪ Project to change ASK’s registered name to

Paragon ID

▪ Distribution of Paragon ID’s share

capital(in % of number of shares on a fully diluted basis,

of 58 956 632 shares)

77,5%

6,2%

16,3%

Paragon Group Ltd.

Historical Shareholders of ASK

Floating


Indicative financial data estimated for 2016/17 (Year Ended on 30/06/2017)

10

NB : The combination constitutes in a reverse takeover in line with IFRS 3 “Business Combinations”, thus and in line with the accounting standard following the transaction

the legal Acquirer, ASK, will be treated as the acquired entity from an accounting stand point. As a result, the historical data to be presented as part of the new groups

financial statements will be the data of the Paragon Identification Division.

Proforma Figures in €m - Estimated, unauditedDivision

IdentificationASK

Turnover 76 34 110

Underlying EBITDA1 8,4 0,0 8,4

EBITDA Margin 11,2% 0% 7,7%

Debt bonds (shareholder)

Financial Net Debt

20

17(1) Operating profit before depreciation, amortisation and exceptional items.

Number of

shares2

Price

per share

Stock Exchange Data (on 13/05/2017) 58 M 1,37 € 80 M€

Company valuation 58 M 1,93 € 112 M€(2) Number of shares in issue – Non diluted basis

PARAGON ID - PRESENTATION


12Copyright Paragon Group Ltd. 2017

Creation of Paragon ID

A LEADER IN IDENTIFICATION DIVISION

A technology

company

A growing

company

An industrial

company

A services

company


Paragon ID : A growing company

2010-11

Acquisitions of

BemroseBooth

Acquisition of Gresset &

Stralfors’ magnetic

activities

€36 M CA 2015-16

Acquisition of

Magnadata’s ticketing

activity

Integration of processes

for magnetic slurry and

inlay

2016-17

Merger with ASK

€110 M CA

€75 M CA

2000

Creation


Paragon ID : A technology company

TECHNOLOGICAL BASE: CONTACTLESS

AntennaChip & Embedded software Support

SECURITY• Against fraud & counterfeiting

• Against identity theft

SPEED• of border controls and access to

public transport

• Within the supply chain & at check

out

PRODUCTSPEOPLE

15Copyright Paragon Group Ltd. 2017 15

Markets undergoing high growth,due to the growing requirements in terms of security and speed

2017 2021

Source : IDTechEx - RFID Forecasts, Players and Opportunities 2016-2026

32,3Mds

11,5Mds

GROWTH OF CONTACTLESS

TECHNOLOGIES MARKET

(RFID, NFC, ETC.) – IN UNITS

ID documents, cards, transport

tickets, bank cards, health

cards, etc. in unitsPEOPLE

Traceability labels: luxury

products, healthcare,

consumer goods. in units

OBJETS

4,3Mds

3,2Mds

2017 2021

28Mds

8,3Mds

2017 2021


Paragon ID : A global and industrial company

7 MANUFACTURING

SITES

605

EMPLOYEES

7080

127

50278

436


e.ID : Technology at the heart of ID documents

E-Covers

(e-covers inlays) OEMs 19 STATES

Royaume-UniEtats-Unis France Israël

Belgique Côte d’Ivoire GrèceGabon

PhilippinesLesotho Mozambique Ouzbekistan

Sierra Leone Ukraine Kenya Géorgie

A unique technology for antenna design: silver ink guaranteeing

durability, reliability and protecting against forgery. (tamper-evident, new security features linked to the shape of the antenna, etc.)

SECURITY

SPEED


NEW YORKPARIS

LONDONMIAMI

CASABLANCACHICAGO

OSLOLISBONLYON

TURIN

Transport & Smart Cities : An answer to access control and mobility

18

+150 CITIES WORLDWIDESOLUTIONS

A comprehensive range of

solutions guaranteeing security

and successful transactions.

SECURITY

SPEED

▪ Issuing : chip, OS, tickets, cards, smartphones

▪ Acquiring : readers, couplers, charging station

SINGAPORELOS ANGELES

SAN FRANCISCOMEXICOSYDNEYLE CAIRE

MARSEILLETEL AVIVHELSINKIPORTO


Traceability & Brand Protection, a growing need to secureproducts and their supply chainbesoin croissant

19

+300 CLIENTSSOME APPLICATIONS

RETAIL

HEALTHCARE

BRAND PROTECTION

A range of solutions (RFID tags, hardware) and services (software,

data management, smartphones - NFC) ensuring an efficient

transition towards a more digital world.

SECURITY

SPEED


Paragon ID : A wide range of solutionsdedicated to sensitive applications

e.IDIdentification documents

Transport & Smart CitiesTraceability

& Brand Protection

Associated services and security (personalisation, data management, design, encodage, etc.)

PRODUCTSPEOPLE


Paragon ID activity

Turnover per activityIn % of turnover pro forma 2016/17

Turnover per geographic areaIn % du turnover pro forma 2016/17

13%

55%

32%27%

33%

19%

18%

3%e.ID

Transport &

Smart Cities

Traceability &

Brand protection EMEA(outside France & UK)

France

North

America

UK

Rest of

the World

110M€

110M€


Organic and external growth drivers

22

▪ Geographical spread North America

Asia and Oceania, based on 1st success stories: Sydney, Singapore, Hong-Kong

▪ Banking ~50% of the market for bank cards is already contactless

Growing market for associated services (personalisation)

on-going innovation for the fight against fraud (One-time-CVV)

▪ Services & digital Growth of Smartphone applications (HCE)

Growth of personalisation and data management services

Developement of IoT (NFC) applications - Tag-to-web


Turnover multiplied by 2 for 2021,With an EBITDA over 10%

23

2020-21

>10%EBITDA

250 M€CA

MERCI


CREATION OF A LEADER IN THE IDENTIFICATION AND ... · P. Mc Enaney Director Paragon ID UK ......

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