Untitled - HPS Worldwide

146 Pages·2017·12.56 MB·English

ENABLING INNOVATIVE PAYMENTS
www.hps-worldwide.com
Summary
Global Economic Environment 8
Message from the President 11
HPS OVERVIEW 14
Strategy 16
Governance 26
HPS SOLUTIONS 32
Payment Market 34
Positioning 38
Research and Development 40
Business 42
The Solutions 44
Regional Deployment 46
Key Achievements 52
HPS PROCESSING 56
Overview 58
Payment Offer 60
Switching Offer 62
Microfinance Offer 66
HPS SERVICES 68
Environment 70
Positioning 72
Key Achievements 76
CSR 78
CSR Label 80
The HPS Foundation 82
ACTIVITY REPORT 84
Key Figures 86
Activity Analysis 90
Subsidiaries and Investments 98
Prospects 104
Post-closing events 105
FINANCIAL REPORT 106
Corporate Account 109
Consolidated Accounts 121
Statutory Auditors Reports 137
Draft Resolutions 141
HPS HPS
OVERVIEW SOLUTIONS
The HPS Group provides solutions and services Being the Group’s historical entity, HPS Solutions
involving electronic payment. After over 20 years designs, develops, markets, installs and supports
in business, HPS is one of the world leaders in the a suite of multi-channel electronic payment
industry. It supports more than 350 institutions in 85 solutions. Our PowerCARD software suite offers
countries around the world by developing offers to comprehensive, configurable and scalable solutions
cover all aspects related to multi-channel payment that meet the most specific user needs. Deemed
activity. These offers are structured around 3 Business as "Positive" by Gartner for 3 consecutive years,
Units that act hand in hand: HPS Solutions, HPS PowerCARD is positioned within the world’s Top 5 of
Processing and HPS Services. the best solutions in the industry.
485 MILLION 326 MILLION
Dirhams Dirhams 68%
+ 37,4% + 22,9%
373 253
Employees Employees
68%
76% 24%
1995
Since
+85
COUNTRIES
OFFER
Card Issuing Payment Analytics
+350
Credit Management Mobile Payment
FINANCIAL INSTITUTIONS
Merchant Acquiring ATM Management
Fraud Monitoring POS Management
+110
e/m Commerce
PRODUCTION SITES
More Information
P 32
+12
CUMULATIVE R&D CENTURIES
More Information
P 14
ANNUAL REPORT 2016
ANNUAL REPORT 2016
HPS HPS
PROCESSING SERVICES
HPS Processing offers electronic payment solutions Being the Group’s historical entity, HPS Solutions
in outsourcing mode. HPS Processing implements designs, develops, markets, installs and supports
hardware platforms, defines processes and uses a suite of multi-channel electronic payment
the PowerCARD software suite to offer the most solutions. Our PowerCARD software suite offers
adapted solutions to the needs of its customers. comprehensive, configurable and scalable solutions
Based on PCI-DSS-certified infrastructures, HPS that meet the most specific user needs. Deemed
Processing ensures a level of availability, security as "Positive" by Gartner for 3 consecutive years,
and business continuity in line with the best PowerCARD is positioned within the world’s Top 5
industry standards. of the best solutions in the industry.
40 MILLION 112 MILLION
Dirhams 8,5% Dirhams 23,5%
N.A + 38,6%
19 60
Employees Employees
5% 16%
2016 2010
Since Since
OFFER OFFER
Payment Software qualification
Switching Owner AMOA
Microfinance IT Engineering
Infrastructure Engineering
More Information
P 56
More Information
P 68
7
GLOBAL
ECONOMIC
ENVIRONMENT
The global economic landscape began to change in the second half of 2016, and the developments achieved,
since last summer, indicate accelerated growth in a number of important economies. Growth forecasts for
2017 and 2018 have been revised upwards by the IMF however, at the same time, risks are much higher and the
uncertainty has also increased sharply.
Growth in world production is estimated at about in manufacturing and trade worldwide, which began
3.1% in 2016, deemed stable compared to 2015. This in the second half of 2016.
rate, however, masks divergent developments in
• Downward revisions in terms of growth forecasts
the different regions. In advanced economies, the
for emerging and developing countries are the
acceleration of growth was more robust than expected,
result of deterioration in the outlook on several
mainly due to the recovery in manufacturing output.
large countries, particularly in Latin America and
On the other hand, growth in some emerging countries
the Middle East, due to the continued deterioration
slowed down due to particular factors.
of their economies within recent years as well as
Thus, although the growth rate in China was slightly decreases in oil production. Growth forecasts for 2017
higher than expected due to the continued recovery, and 2018 have been revised upwards for China as
activity was lower than expected in a few Latin a result of stronger stimulus than expected, as well
American countries - that are currently in recession, as for Russia where rising oil prices are expected to
such as Argentina and Brazil, or even Turkey which has boost recovery.
faced a sharp contraction in tourism revenues.
On the other hand, the risks leading to such growth are
Global growth in 2016 has observed two phases: a more important than ever, especially in the medium
difficult first half, initially marked by turmoil in global term - given the uncertainty surrounding widespread
financial markets, and then a general improvement economic policies.
that began within the second half of the year.
Thus, economic stimulus measures in the United States
Given the more robust growth in the second half of and China will have to be reduced or canceled over
2016, IMF analyses estimate that growth in 2017 and time in order to avoid unsustainable fiscal dynamics.
2018 should be in line with previous estimates, but with Furthermore, and in general terms, the risks of
regional differences: degradation stem from several factors:
• In terms of advanced economies, projected growth • A withdrawal motion, including the adoption
is revised upward in the United States, due to the of protectionist measures, with a slowdown in
expected easing of fiscal policy and the recovery of global growth due to the decrease in trade and
confidence, which, if persisted, will strengthen the international investment flows.
cyclical dynamics. The outlook has also improved for
• A higher-than-expected interest rate hike in the
Europe and Japan, on the basis of a cyclical recovery
ANNUAL REPORT 2016
United States, which could trigger a tightening productivity in many countries over the last 30 years,
of global financial conditions as well as a strong witnessing a weaker distribution of wealth. It is clear
dollar appreciation, with negative repercussions for that technological advances and trade integration,
vulnerable countries. both of which drive growth in the medium and long
term, have contributed partly to this situation.
• Negative interaction chains between weak demand,
low inflation, fragile balance sheets and anemic General and economic policy choices will therefore be
productivity growth in a few advanced countries crucial in order to guide prospects and reduce risks in
with high capacity surpluses. the near future.
• Non-economic factors, including geopolitical In terms of preserving global economic growth,
tensions, extreme climate events, as well as terrorism governments will have to avoid protectionist measures
and security issues. and double their efforts so as to ensure that the
benefits of growth are better shared.
• These risks are linked to one another and can be
mutually reinforcing: a withdrawal motion into one’s To this end, countries could increase tax progressivity,
own might be coupled with a rise in geopolitical invest in skills, lifelong learning and quality education,
tensions, or non-economic shocks can directly affect or increase the occupational as well as geographic
economic activity and undermine the confidence of mobility of workers as a means to both facilitate and
market operators. accelerate the adjustment of the labor market towards
structural changes.
TThese risks are linked to one another and can be
mutually reinforcing: a withdrawal motion into one’s Many of the problems facing the global economy
own might be coupled with a rise in geopolitical require national policies to be supported by
tensions, or non-economic shocks can directly affect multilateral cooperation. Important areas where
economic activity and undermine the confidence of collective action is needed include maintaining an
market operators. open trading system, preserving global financial
stability, establishing fair tax systems, continuing to
The social divide due to globalization and, more
help low-income countries meet their development
importantly, to the evolution of technologies are also
goals, as well as mitigate and adapt to climate change.
a major challenge that will intensify in the future.
Analysis shows that wages have not kept pace with
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ANNUAL REPORT 2016
Today, we are part of
T
a small group of players
who are capable of
N
shaping future industry
E trends
D
I
Dear shareholders,
S
After such remarkable results in 2015, HPS can achieve even
better results in 2016 - with a growth of more than 37% in its
activities.
E
These performances, which reflect the accuracy of our vision
as well as the relevance of our strategy, have been achieved in
a still uncertain global economic environment and in a global
R industry payment in full reconfiguration.
In this digital age, customers are more connected, more
informed and more demanding. They want faster, easier
P to use and cheaper financial services. The dream for
customization of payment services is coming true, turning
each customer into a unique segment. The data that allows
for an impressive knowledge of each customer is at the heart
of the customers’ experience battle.
E These trends have led to a reconfiguration of the payment

market. The reaction of traditional actors to Fintech and other
E new entrants is underway. We are witnessing the emergence
of a digitally reconfigured market which, under the impulse
H
of regulators, should encourage co-operation, co-evolution
and the rationalization of costs.
G
Outstanding Performances
T
Thanks to the agility and expertise of our Group, we support
A traditional players to accelerate their digital transformation,
and we bring our payment expertise and our ability to provide

innovative solutions to new entrants. Our ability to effectively
M support and guide our clients enabled us to close the year 2016
S with very solid financial and operational performances.
In fact, the HPS Group recorded consolidated revenues of
486 million MAD, representing an organic growth of 37.4%
S compared to the previous year. We were capable of improving
O our operating margin to 14.8%, compared with 13.5% in 2015.
Net income increased by 48.3%, representing a net margin
rate of 12.2%, compared to 11.3% in 2015.
E
In line with our sustainable growth strategy, and in order to
R
strengthen our recurring revenues, the Group continued to
develop its transactional licensing business model based
M on invoicing in terms of business volume performed by
our customers. This resulted in a strong 15% growth of
F recurring revenues in 2016, which totaled to 244 million MAD,
representing 50% of the Group’s total revenues and 69% of the
revenues generated by our payment activities.
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