Update: Selling VeriFone - Update: Selling VeriFone - A Global View A Global View

Bill NicholsBill Nichols

Our Innovation and CommitmentOur Innovation and Commitment

Our cultureOur cultureour historyour historyour sense of urgencyour sense of urgencyour disciplineour disciplineour managersour managersour operationsour operationsour driveour driveour productsour productsour innovation & commitment our innovation & commitment are geared toward one thing, are geared toward one thing, and one thing onlyand one thing only

To lead the sectorTo lead the sector

TranslatedTranslated … …Your Success.Your Success.

The VeriFone Team of partners The VeriFone Team of partners and employees represent the and employees represent the best people in the businessbest people in the business

Integration of Acquired ProductsIntegration of Acquired Products

VeriFone’s integration of acquired products VeriFone’s integration of acquired products has been a great success:has been a great success:

• NURIT wireless development and NURIT wireless development and manufacturing expertise paying offmanufacturing expertise paying off

• VeriFone model applied to NURIT productsVeriFone model applied to NURIT products• NURIT, Secura & OP new product introductions NURIT, Secura & OP new product introductions

even in year oneeven in year one– OP4100 an important intro to Pay at the Pump market OP4100 an important intro to Pay at the Pump market

• Emerging markets penetration growingEmerging markets penetration growing

Our distributed offices around Our distributed offices around the world work around the clock the world work around the clock to deliver successto deliver success

Honolulu

SacramentoSan Jose

Mexico CityClearwater

Miami

Atlanta

Sao Paolo

Buenos Aires

Paris

WarsawLondon

Bangalore

Singapore

TaipeiHong Kong

Manila

DallasBeijing

Savannah Tel AvivSpain

Italy

China

TorontoNew York

Russia

India

Turkey

Australia

Dublin

Product Design Centers Platform Software Development Centers

Application Development Centers

Offices worldwide are active any day, any time

Working GloballyWorking Globally

VIPs & Resellers

Staying LocalStaying Local

Key to our culture is the growing influence & Key to our culture is the growing influence & responsibility of regional, autonomous organizationsresponsibility of regional, autonomous organizations

• Headed by local Headed by local General ManagersGeneral Managers

• Building Centers of Building Centers of ExcellenceExcellence

• Building regional Building regional product roadmapsproduct roadmaps

Staying LocalStaying Local

This autonomy & entrepreneurialism is already at workThis autonomy & entrepreneurialism is already at work

QSR (IP enabled)QSR (IP enabled)

Started in NAStarted in NANow in EMEA

Petro (multi lane/integrated)Petro (multi lane/integrated)

Started in NAStarted in NANow in LAC

Unattended (self service)Unattended (self service)

Started in EMEAStarted in EMEANow in NA

Our “go to market” strategies Our “go to market” strategies are the most focused, the are the most focused, the most detailed and the most most detailed and the most well executedwell executed

““Go to Market” CommitmentGo to Market” Commitment

VeriFone local office very effectively managing VeriFone local office very effectively managing “go to market” details:“go to market” details:• Country by country certificationsCountry by country certifications

(card assoc, banks, applications)(card assoc, banks, applications)• Application development (writing, testing)Application development (writing, testing)• Marketing strategiesMarketing strategies• Training, channelsTraining, channels• PromotionsPromotions• VAPVAP• Security standardsSecurity standards• High-profile integrationsHigh-profile integrations

(e.g., taxi meters, banks, fuel pumps)(e.g., taxi meters, banks, fuel pumps)

VeriFone’s Go To Market ApproachVeriFone’s Go To Market Approach

Step 1:Identifymarket opportunities

Step 2:Identify candidates

Step 3:Follow integration process

Step 4:Executego-to-market strategies

Example: UnattendedExample: Unattended

Global markets for self-service machinesby major segment, 2002-2010 ($ Millions)

Step 1: Identify market opportunities

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2002 2003 2004 2005 2010

$ M

illio

ns

Financial services Self-service kiosks

Consumer goods vending Automated convenience stores

Self-checkout units

VeriFone Portfolio: UnattendedVeriFone Portfolio: Unattended

Outdoor PIN Pads

OP 3000,SIM 7x0, QX720

ATM / Kiosk

NURIT 6000/6100

Step 3: Follow integration processStep 2: Identify candidates

Multimedia

Custom Payment Terminal Designs

OP 4000

SoftwarePayment Solutions

ATM Management & Switching Solution

(AMSS)

VeriFone Unattended: Go-To-MarketVeriFone Unattended: Go-To-Market

Step 4: Execute go-to-market strategies

Self-Service Payment Systems from the Worldwide Leader in Secure, Payment Technology

The VeriFone Portfolio of SolutionsThe VeriFone Portfolio of Solutions

Our objective is to dominate, shape and ultimately change this industry

• Scale & economiesScale & economies• BrandBrand• Solution portfolioSolution portfolio• Execution &Execution &

disciplinediscipline• PeoplePeople

The best brands and thebreadth you’ll need

VeriFone is developing VeriFone is developing unique, complete solutions unique, complete solutions that are extending payment that are extending payment like never beforelike never before

VeriFone SolutionsVeriFone Solutions

• Accelerating solutions areas:Accelerating solutions areas:– QSR, taxi, petro, hospitality, transit & unattendedQSR, taxi, petro, hospitality, transit & unattended

• Solutions are impacting and changing business Solutions are impacting and changing business processes:  processes:  – Speed of service, marketing at the POS, privacy & Speed of service, marketing at the POS, privacy &

serviceservice

• Solutions are also driving growth in support, Solutions are also driving growth in support, services and softwareservices and software

Ways VeriFone Will GrowWays VeriFone Will Grow

VeriFone will grow via traditional channels and VeriFone will grow via traditional channels and with world class discipline and planningwith world class discipline and planning

New TechnologyAcquisitions

New Vertical Markets

New Geographic Markets

Sources of Growth

VeriFone scale allows us to VeriFone scale allows us to quickly address worldwide quickly address worldwide trends in fraud and securitytrends in fraud and security

Addressing Fraud and SecurityAddressing Fraud and Security

• PCI PED leadership:  PCI PED leadership:  – Largest product portfolioLargest product portfolio– Sole manufacturer on PCI board Sole manufacturer on PCI board

of advisorsof advisors– Thought leadership in RetailThought leadership in Retail

• VeriFone technology replacing VeriFone technology replacing systems (DSS)systems (DSS)

VeriFone growth, stability and VeriFone growth, stability and ability to re-invest is fueled by ability to re-invest is fueled by initiatives around the worldinitiatives around the world

Global InitiativesGlobal Initiatives

• Major initiatives: contactless pilots, mobile Major initiatives: contactless pilots, mobile solutions, banking initiatives, unattended, taxisolutions, banking initiatives, unattended, taxi

• Major clients: RBS, McDonalds, FIMPE, Major clients: RBS, McDonalds, FIMPE, CitiBank, Tesco, associations …CitiBank, Tesco, associations …

• Major wins on all fronts:  UK, Germany, Spain, Major wins on all fronts:  UK, Germany, Spain, Russia, Turkey, Brazil, Mexico, China, Russia, Turkey, Brazil, Mexico, China, Australia, U.S., Canada, Poland, Venezuela, Australia, U.S., Canada, Poland, Venezuela, Colombia, India, Argentina, Singapore …Colombia, India, Argentina, Singapore …

Global Technology DriversGlobal Technology Drivers

ContactlessContactless

EMV

WirelessWireless

IP-EnabledIP-Enabled

Security

UnattendedUnattended

VAT Tax

Our market leadership is Our market leadership is evident behind the evident behind the scenes tooscenes too

World class personnel

State of the art e-SCMtools & systems

Unparalleled flexibility andcost productivity

Global, regional and localsupplier alliances

Global capacity

Quality

Demand management excellence

Behind the Scenes LeadershipBehind the Scenes Leadership

Unparalleled capabilityas you would expectfrom the industry leader

Premier Supply Chain that guarantees a competitive advantage for our customers

Our success is most defined Our success is most defined however by our ability to however by our ability to compete, to garner big wins, compete, to garner big wins, and to be consistent and to be consistent everywhere we operateeverywhere we operate

Competitiveness and ConsistencyCompetitiveness and Consistency

• Regional growth & successRegional growth & success

• Major wins versus Ingenico & HypercomMajor wins versus Ingenico & Hypercom

• Weakened competition: CEO turnsWeakened competition: CEO turns

Thank You!Thank You!