creation of a leader in the identification and ... · p. mc enaney director paragon id uk ......
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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
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
Copyright Paragon Group Ltd. 2017
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
Copyright Paragon Group Ltd. 2017
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
Copyright Paragon Group Ltd. 2017
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
Copyright Paragon Group Ltd. 2017
Division Paragon ID
6
▪ e.ID (national identity)
▪ Transport & Smart Cities
▪ Traceability and brand protection
Copyright Paragon Group Ltd. 2017
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
Copyright Paragon Group Ltd. 2017
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
Copyright Paragon Group Ltd. 2017
April 2017 : Creation of Paragon ID
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▪ 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
Copyright Paragon Group Ltd. 2017
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
Copyright Paragon Group Ltd. 2017
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
13Copyright Paragon Group Ltd. 2017
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
14Copyright Paragon Group Ltd. 2017
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
16Copyright Paragon Group Ltd. 2017
Paragon ID : A global and industrial company
7 MANUFACTURING
SITES
605
EMPLOYEES
7080
127
50278
436
17Copyright Paragon Group Ltd. 2017
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
18Copyright Paragon Group Ltd. 2017
NEW YORKPARIS
LONDONMIAMI
CASABLANCACHICAGO
OSLOLISBONLYON
TURIN
Transport & Smart Cities : An answer to access control and mobility
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+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
19Copyright Paragon Group Ltd. 2017
Traceability & Brand Protection, a growing need to secureproducts and their supply chainbesoin croissant
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+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
20Copyright Paragon Group Ltd. 2017
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
21Copyright Paragon Group Ltd. 2017
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€
22Copyright Paragon Group Ltd. 2017
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
23Copyright Paragon Group Ltd. 2017
Turnover multiplied by 2 for 2021,With an EBITDA over 10%
23
2020-21
>10%EBITDA
250 M€CA
MERCI
Copyright Paragon Group Ltd. 2017
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