Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — H1 2019-2020 Earnings Presentation
30 slides from Elior Group Sa's earnings presentation, May 27, 2020
Slide 1: First half 2019-2020 Financial results
First half 2019 - 2020 Financial results Wednesday, May 27, 2020
Slide 2: Disclaimer
Disclaimer This document was prepared by Elior Group for the sole purpose of this presentation. This presentation includes only summary information and does not purport to be comprehensive. The information contained in this document has not been independently verified. No representation or warranty,
Slide 3: First half highlights
Mu O clea eliorcroup First half highlights
Slide 4: First half 2019-2020 context
First half 2019-2020 context Up until the outbreak of COVID-19, Elior was well oriented to deliver its annual objectives › French strikes compensated by good performance › Retention 93% versus 90% year ago › Maintained capex below 3% of revenue: 2.2% › Returned to shareholder €20 million share buyba
Slide 5: Thank Elior's teams
Thank Elior’s teams Elior Services Elior Restauration 4
Slide 6: Community actions during COVID-19
Community actions during COVID-19 Elior Italy supports Aladdin partners with Elior supports Elior UK joins forces Serunion guaranteed the most vulnerable the Jewish Community the Red Cross with Olio to help the distribution populations Center in Pittsburgh in France people in need of 18,000 meals by
Slide 7: First half 2019-2020 performance
First half 2019-2020 performance
Slide 8: Second Quarter Revenue Analysis
Second Quarter Revenue Analysis Group Revenue (€ in million) -9.9% 1,277 -9.9% 1,151 1,280 1,277 -2 580 513 -137 1,151 2 10 693 636 5 2 -10.8% +0.1% +0.8% Q2 2019 Q2 2020 Q2 2019 IFRS15 Q2 2019 as Organic Perimeter Forex Q2 2020 France contract catering & services Impact restated Growth impact Inter
Slide 9: First Half Revenue Analysis (1/2)
First Half Revenue Analysis (1/2) Group Revenue (€ in million) -5.2% -5.2% 2,600 2,594 2,594 -6 2,459 1,164 1,086 -161 2,459 23 2 1,419 1,367 12 6 H1 2019 H1 2020 -6.2% +0.1% +0.9% France contract catering & services H1 2019 IFRS15 Actual Organic Perimeter Forex H1 2020 International contract cateri
Slide 10: First Half Revenue Analysis (2/2)
First Half Revenue Analysis (2/2) Group Revenue (€ in million) -6.2% +0.3% +1.5% 2,633 2,594 2,602 17 14 -161 157 2,433 11 H1 2019 as Organic H1 2020 Strikes Impact Coronavirus H1 2020 Voluntary Tesco H1 2020 restated Growth Organic Impact Organic Exits (UK) Organic Revenue Revenue excl. (Italy) Rev
Slide 11: IFRS 16 Impact
IFRS 16 Impact P&L First Half 2020 First Half 2020 IFRS 16 (€ in million) As Published Before IFRS 16 Impact Cancelation of operating Other operating expense (250) (278) +28 leases paid D&A (84) (57) (27) Right of use amortization Recurring operating profit 41 40 +1 Adjusted EBITA 52 51 +1 Financial
Slide 12: First Half Adjusted EBITA Analysis (1/2)
First Half Adjusted EBITA Analysis (1/2) (€ in million) 122 2 -70 1 -4 51 52 4.7% 1 2.1% 2.1% +10bps (260) bps +0 bps (10) bps H1 2019 D&A Coronavirus Corporate Contract Catering H1 2020 before IFRS 16 H1 2020 impact & Others & Services IFRS 16 Impact As published 11
Slide 13: First Half Adjusted EBITA Analysis (2/2)
First Half Adjusted EBITA Analysis (2/2) (€ in million) Group Adjusted EBITA Group Adjusted EBITA margin 122 122 69 52 4.7% 51 37 66 2.1% 26 -13 -11 H1 2019 H1 2020 H1 2019 H1 2020 France contract catering & services International contract catering Corporate & other 12
Slide 14: First Half P&L Analysis
First Half P&L Analysis First Half First Half YoY € in million 2020 2019 change Revenue 2,459 2,594 -5.2% Adjusted EBITA 52 122 (70) Adjusted EBITA margin 2.1% 4.7% (2.6) pts Share based compensation (2) (6) +4 Acq. intangible amortization (10) (10) = EBITA 40 106 (66) Non-recurring (6) (6) = Net fi
Slide 15: Financial Result
Financial Result First Half First Half YoY (in € million) 2020 2019 Change Financial interests, net (13) (28) +15 Amortization of issuing fees (1) (2) +1 Net Foreign exchange (2) 1 -3 Other (1) (2) +1 Net financial expenses (17) (31) +14 14
Slide 16: Free Cash Flow Analysis
Free Cash Flow Analysis (€ in million) 110 -53 42 -57 -4 13 14 28 17 2 H1 2020 Capex Change in OWC Securitization Other Cash Operating Tax Paid H1 2020 IFRS 16 Impact on H1 2020 FCF Adjusted EBITDA Items FCF before IFRS 16 FCF before IFRS 16 EBITDA As Published -74 89 -74 42 1 14 28 7 -18 8 2 H1 201
Slide 17: Net Debt Analysis before IFRS 16
Net Debt Analysis before IFRS 16 (€ in million) -24 Leverage ratio: -7 Leverage ratio: 1.8x EBITDA* 14 2.5x EBITDA* -539 -20 -5 -6 0 -563 Sept. 2019 Free Cash- Financial Share Buy Acquisitions Discontinued Forex and March 2020 Net Debt Flow Fees back Activities Other Net Debt Including IFRS 16 Elior
Slide 18: Liquidity
Liquidity (€ in million) Elior’s Available Liquidity at the end of March 2020 was €917 million: › includes cash of €779 million after drawing down of the Revolving Credit Facilities of €450 million and US$250 million. › Remaining available credit lines amount to €138 million. › Covenant holiday obta
Slide 19: Elior Group overview
Elior Group overview 17
Slide 20: Elior's three key priorities
Elior’s three key priorities Reinforcement of cash Continue to adjust to uncertain Agile and responsive management discipline to levels of revenues to a new environment minimize cash consumption › B&I progressive recovery as of June › Reopening protocols well-defined › Rapid adaptation of the cost t
Slide 21: Central kitchens: the right assets for safe home-made meals
Central kitchens: the right assets for safe home-made meals Economic consequence of the COVID-19 pandemic has significantly increased the demand for community / social services meals provided by our central kitchens. › Central kitchen have proven to be the perfect way to adjust to sudden production
Slide 22: People, work & food safety: our proven standards
People, work & food safety: our proven standards supports our trusted relation with clients › +8,600 sites holding certifications › Food safety management system based relating on standards and strict procedures and to healthy, safety, environment guidelines (HACCP, ISO 22000, etc.) › Matrix of inte
Slide 23: Elior has the right expertises
Elior has the right expertises Hygiene & safety Operational agility › Long established priority & management › Diversified solutions to address client needs practice & constraints at local level: Click & collect, table service, table reservation, › Leading central kitchen infrastructure delivery › E
Slide 24: Digital solutions: key enabler of the new normal
Digital solutions: key enabler of the new normal Digital capabilities & solutions are more important than ever to: › Support new service & operating models (advance booking, delivery etc..) › Enable 100% cashless payment › Provide transparency on hygiene & sanitation measures as well as product’s or
Slide 25: More trusted than ever by clients
More trusted than ever by clients The K-12 team at Farmington central kitchen in New Mexico received love and appreciation when they arrived to work last week. The team has served 136,096 meals since they started this journey on March 20! 24
Slide 26: Developments in four main directions
Developments in four main directions Increase market share Accelerate discussions with self operated prospects › Smaller players unable to meet increasing standards in hygiene & food safety › Demanding hygiene & food safety protocols › Highly leveraged competitors exposed are driving additional oppo
Slide 27: Elior is accelerating its transformation
Elior is accelerating its transformation 5 Value Creation Drivers 1 ATTRACTIVE MARKETS CATERING CUSTOMER 5 CENTRICITY/CSR 2 CASH MANAGEMENT SERVICES CROSS-SELL /UPSELL COST CLIENT OPTIMIZATION RETENTION 4 3 26
Slide 28: Conclusion and Q&A
Conclusion and Q&A
Slide 29: Financial agenda
Financial agenda July 23, 2020: November 25, 2020: Third quarter revenues Full year results 2019 - 2020 2019 - 2020 28
Slide 30: Concluding remarks
Concluding remarks