Paul
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Non-GAAP financial measuresWith respect to any non-GAAP financial measures presented in the information, reconciliations of non-GAAP to GAAP financial measures may be found in Verifone’s quarterly earnings release as filed with the Securities and Exchange Commission as well as the Appendix to these slides. Management uses non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. Management believes that these Non-GAAP financial measures help it to evaluate Verifone’s performance and to compare Verifone’s current results with those for prior periods as well as with the results of peer companies. These non-GAAP financial measures contain limitations and should be considered as a supplement to, and not as a substitute for, or superior to, disclosures made in accordance with GAAP
Forward looking statementsToday’s discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Verifone’s actual results or actions may differ materially from those projected in the forward-looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to Verifone’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K and quarterly reports on Form 10- Q. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise
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Sheetal ShahOperations
Increasing efficiency and discipline
Joe MachJune FelixCarlos LimaSteve AliferisRegional Leadership
Delivering global solutions locally
Marc RothmanFinance
Driving improved results and delivering greater shareholder value
Paul GalantVision
Driven by clients’ current and future needs
Vin D’Agostino Strategy
Defining market dynamics and strategy for growth
Glen RobsonSolutions
Launching next-generation, client-centric devices and services
Agenda
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Sheetal ShahOperations
Increasing efficiency and discipline
Joe MachJune FelixCarlos LimaSteve AliferisRegional Leadership
Delivering global solutions locally
Marc RothmanFinance
Driving improved results and delivering greater shareholder value
Paul GalantVision
Driven by clients’ current and future needs
Vin D’Agostino Strategy
Defining market dynamics and strategy for growth
Glen RobsonSolutions
Launching next-generation, client-centric devices and services
Agenda
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Verifone history
mPOS series
Mxseries
Verifonefounded
Vxseries
20041981 2014 201620082006 20122010
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Verifone is a company that is essential to the payments industry
Verifone cloud services process 7.6B transactions
annually
~30M devices globally accepting
payments securely
Payments accepted across >150 countries
We earned $2B total revenue in
FY16
~6,000 professionals
working around the world
We are a leader in virtually all
markets where we operate
Provide our clients with:• Consumer payments acceptance• Connectivity between merchants and financial institutions• Security and comprehensive payment and commerce services
OUR VISION
To be our clients’ most trusted, secure, and innovative technology partner, providing integrated payments and commerce solutions globally
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Verifone’s clients are facing unprecedented change
Acceleration away from cash to
electronic payments
Growing consumer expectation for omni-channel experiences
1 2 3 4 5
IMAGE IMAGE IMAGE
Increasing complexity of
consumer payments
Proliferation of POS solutions
Convergence of payments and
commerce
Market forces impacting our clients
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Our clients need Verifone to help navigate these market forces and drive growth
Create more POS touch points with high personalization and accept payments in multiple formats
Drive differentiated and higher yielding consumer relationships to compete on more than price
Reduce security and fraud risks
Lower total cost of ownership
Enable omni-channel experiences
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• 35 years of experience deploying highly secure and ubiquitous payment solutions across the globe
• We are a truly global, Silicon Valley based technology company, with deep payments expertise
• We operate as a solutions company, leveraging global scale and local execution
• We have a focused innovation agenda targeting frictionless consumer authentication and identity, Internet of Payment Things, and alternative payments
• Our guiding principle is that we are an enabler to our clients and do not compete in their core businesses
Verifone is a strong and unique partner for our clients
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OUR STRATEGY
Build next-generation devices and connect them with our expanded services to enable the future of payments and commerce
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To execute this strategy, we set four goals in FY14…
Earn back the trust of our clients1
Launch next-generation devices to meet the evolving needs of our clients 2
Enable new omni-channel and commerce capabilities through proprietary technology and partnerships
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Connect our clients to Verifone cloud services through new platforms3
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… and we have made material progress in achieving them …
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2
1 Earn back the trust of our clients
Connect our clients to Verifone cloud services
Launch next-generation devices
4 Enable new omni-channel and commerce capabilities
FY14 Today
• Terminal sales orientation• Solutions and
relationship orientation
• Multiple operating systems, gateways, and services
• Streamlined platforms for payments and commerce
• Fragmented terminal base with limited capabilities
• Next-generation commerce capable devices
• Limited e-commerce and omni capability
• Broader e-commerce and omni technology and partnerships
Status
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… creating real value for our clients and Verifone
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3
2
4
Earn back the trust of our clients
Connect our clients to Verifone cloud services
Launch next-generation devices
Enable new omni-channel and commerce capabilities
Our impact
We’ve significantly increased revenues with our Top 100 clients over the past 3 years
We have ~2 million devices connected to our payment services platforms globally
Next-generation devices will generate between 5-10% of revenue in FY17
Our non-GAAP Services revenue has grown from ~38% in FY14 to an expected 41% in FY17
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In FY17, we begin one of the most robust launches of new devices and services that will fuel our growth through FY20
mPOS series
Mxseries
Verifone founded
Vxseries
Engage SeriesE-series (mPOS)Value SeriesCarbon (iPOS)
Device ServicesPayment ServicesCommerce ServicesOmni-channel
20041981 2017201620082006 2011
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IProvide newsolutions in the
market segmentswhere we operate IIExpand our share
in under-penetrated geographies
Capture newsegments withnew solutions
Our success provides a foundation from which we will establish three pillars of growth increasing total revenues at a CAGR of 5-6%
VerifoneFY17 – FY20 CAGR
Value CarbonSystems
DeviceServices
Payment Services
Commerce Services
Omni-channelServices
+4-5%
+7-8%
Engage E-series
Note: P&L figures are non-GAAP
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Success with our clients translates into success with our shareholders
RevenueGrowth
+5-6%FY17-FY20
CAGR
OperatingMargin Target
15%-16%FY20
EPS Growth
~15%FY17-FY20
CAGR
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Note: P&L figures are non-GAAP