Slide 1: Elior Group FY 2017-2018 Results
ELIOR GROUP FY 2017-2018 RESULTS
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: Today's Agenda
TODAY’S AGENDA 1 2 3 GROUP CONTRACT CATERING & FY HIGHLIGHTS FINANCIAL PERFORMANCE SERVICES 4 5 6 CONCESSION CATERING OUTLOOK CONCLUSION AND Q&A 12/04/2018 3 ELIOR GROUP
Slide 4: FY Highlights
1 FY HIGHLIGHTS PHILIPPE GUILLEMOT ELIOR GROUP CEO 12/04/2018 4 ELIOR GROUP
Slide 5: FY Financial Objectives Achieved
FY FINANCIAL OBJECTIVES ACHIEVED OBJECTIVE ACTUAL • Organic growth close to 3.0% • Organic growth of 3.0% • Adjusted EBITA margin • Adjusted EBITA margin between 4.3% and 4.6% of 4.3% • Capex within the €300m envelope • Capex of €288m 12/04/2018 5 ELIOR GROUP
Slide 6: A Clear and Strengthened Organization
A CLEAR AND STRENGTHENED ORGANIZATION • Group Executive Management team completed • Areas Management team succession plan implemented • Elior France Management team simplified and reinforced • Support functions reinforced 12/04/2018 6 ELIOR GROUP
Slide 7: Responsibility at the Core of Group's Mission
RESPONSIBILITY AT THE CORE OF GROUP’S MISSION Help our guests to achieve Through better procurement, Innovate and collaborate to Create and promote local good health through increase the sustainability of reduce food waste and other jobs which are inclusive and providing healthy choices our ingredie
Slide 8: Elior Group 2021: On Track to Restore Performance
ELIOR GROUP 2021: ON TRACK TO RESTORE PERFORMANCE • Clear mandates for operations • Spread of culture of progress throughout the organization • Key initiatives identified and launched to support profitable growth • Clear objectives and aligned incentives Back to basics 12/04/2018 8 ELIOR GROUP
Slide 9: Strategic Review of Areas Launched to Accelerate Development
STRATEGIC REVIEW OF AREAS LAUNCHED TO ACCELERATE DEVELOPMENT • Significant growth opportunities in each activity • Elior Group 2021 designed for returning to strong cash flow generation profile • However today: more opportunities than we can finance • Break-up of activities could allow for accelerat
Slide 10: Areas: A Leader with Potential
AREAS: A LEADER WITH POTENTIAL • Attractive industry with solid secular trends driving sustained growth • A global leader with strong positions across geographies and diversified end-markets • Unique retail proposal built around strong landlord relationships, differentiated brand portfolio and opera
Slide 11: Group Financial Performance
2 GROUP FINANCIAL PERFORMANCE ESTHER GAIDE ELIOR GROUP CFO 12/04/2018 11 ELIOR GROUP
Slide 12: Group Business Profile in 2018
GROUP BUSINESS PROFILE IN 2018 A CONSISTENTLY DIVERSIFIED A MORE INTERNATIONAL PORTFOLIO FOOTPRINT 6% Railways, City sites 6% 4% & Leisure UK Other 9% Motorways 33% 12% Business Italy & Industry 43% 13% 15% France Airports Spain & Portugal 18% 20% 21% USA Healthcare Education FY 2017-2018 REVENUE: €
Slide 13: FY Revenue Analysis
FY REVENUE ANALYSIS GROUP REVENUE (€m) FY FY 2016- organic perimeter 2017- 2017 growth effect forex effect 2018 6,694 6,422 +4.2% 1,832 +2.9% 1,774 (1.7)% 4,862 +3.0% 4,648 FY 2016-2017 FY 2017-2018 6,422 6,694 Contract catering & Services Concession catering 12/04/2018 13 ELIOR GROUP
Slide 14: Q4 Revenue Analysis
Q4 REVENUE ANALYSIS REVENUES (€m) Q4 Q4 2016- organic perimeter 2017- 2017 growth effect forex effect 2018 1,640 +0.2% 1,550 +5.8% +2.8% 568 532 +2.8% 1,018 1,073 Q4 2016-2017 Q4 2017-2018 1,550 1,640 Contract catering & Services Concession catering 12/04/2018 14 ELIOR GROUP
Slide 15: EBITA Analysis (1/2)
EBITA ANALYSIS (1/2) GROUP ADJUSTED GROUP ADJUSTED EBITA (€m) EBITA MARGIN (100) bps 342 (16.7)% 285 110 105 5.3% 4.3% 243 190 (12) FY 2016-2017 (10) FY 2017-2018 FY 2016-2017 FY 2017-2018 Contract catering & Services Concession catering Corporate Of which (30) bps of D&A increase 12/04/2018 15 ELIO
Slide 16: EBITA Analysis (2/2)
EBITA ANALYSIS (2/2) (€m) Underlying FY 2016-2017 D&A CICE One-offs performance Acquisitions Forex FY 2017-2018 -26 -7 -7 -23 -5 11 342 285 12/04/2018 16 ELIOR GROUP
Slide 17: Profit & Loss Account Analysis
PROFIT & LOSS ACCOUNT ANALYSIS FY FY €m YoY CHANGE 2017-2018 2016-2017 Adjusted EBITA 285 342 €(57)m Adjusted EBITA margin 4.3% 5.3% (100)bps Impact of upward revision of Elior NA business plan and buy-back of Reported EBITA 256 333 €(77)m minorities on share-based Acq. intangible amortization (22)
Slide 18: Free Cash Flow Analysis
FREE CASH FLOW ANALYSIS €m FY 2017-2018 FY 2016-2017 YoY CHANGE Adjusted EBITDA 500 531 €(31)m Share-based compensation impact (29) (9) €(20)m Impact of upward revision of Elior NA business plan and buy-back of Reported EBITDA 471 522 €(51)m minorities on share-based compensation valuation – Change
Slide 19: Net Debt Analysis
NET DEBT ANALYSIS (€m) (49) Leverage ratio: 116 Leverage ratio: (36) 15 3.0x EBITDA 3.6x EBITDA (pro-forma for (pro-forma for acquisitions) (1,628) acquisitions) (228) (20) (1,830) Net debt Free cash Interests Dividend Share capital Acquisitions Others Net debt 2017 flow paid in cash increase 2018 e
Slide 20: Contract Catering & Services
3 CONTRACT CATERING & SERVICES PHILIPPE GUILLEMOT ELIOR GROUP CEO 12/04/2018 20
Slide 21: FY 2017-2018 Highlights
FY 2017-2018 HIGHLIGHTS • ACQUISITIONS COMMERCIAL ACTIVITY OPERATIONS & INNOVATION • CBM Managed Services, a • 92% retention rate in catering • Reinforced organization in France leading provider of • BPCE, EDF, city of Garches and • Development of Weeky Connect foodservices to correctional Fontaineb
Slide 22: A New Generation of Responsible Central Kitchens
A NEW GENERATION OF RESPONSIBLE CENTRAL KITCHENS 22 ELIOR GROUP
Slide 23: Financial Performance
FINANCIAL PERFORMANCE • Organic growth: +2.4% Good development in Spain New contracts in all segments in NA In France, good performance in Education largely offsetting lower B&I and Healthcare Higher commercial selectivity in Italy affecting top line Growth in Healthcare and Education in the UK • Ad
Slide 24: Financial Performance
FINANCIAL PERFORMANCE FY FY REPORTED ORGANIC €m 2017-2018 2016-2017 GROWTH GROWTH Revenues 4,862 4,648 +4.6% +2.4% o/w France 2,185 2,171 +0.6% +0.6% o/w International 2,677 2,476 +8.1% +4.0% Adjusted EBITA 190 243 (21.8)% As % of sales 3.9% 5.2% (130)bps o/w France 98 129 (24)% As % of sales 4.5% 5
Slide 25: Concession Catering
4 CONCESSION CATERING PHILIPPE GUILLEMOT ELIOR GROUP CEO 12/04/2018 25 ELIOR GROUP
Slide 26: FY 2017-2018 Highlights
FY 2017-2018 HIGHLIGHTS ORGANIZATION OPERATIONS CONTRACTS • Appointment of Oscar Vela as • A Table and Deli&cia: homologated • 15 PoS in Barcelona airport (Spain) Areas CEO as internal franchises. • 7 PoS at Malaga airport (Spain) • Confirmation of vertical • New own concepts launch: In • 3 PoS in r
Slide 27: Financial Performance (1/2)
FINANCIAL PERFORMANCE (1/2) Organic growth: 4.4% Strong traffic on motorways in Portugal and France and in airports in Spain, Portugal, Italy and France New points of sales on Spanish motorways and in Spanish, Portuguese, American, Danish, Mexican, Colombian and French airports Good trends on
Slide 28: Financial Performance (2/2)
FINANCIAL PERFORMANCE (2/2) FY FY REPORTED ORGANIC €m 2017-2018 2016-2017 GROWTH GROWTH Revenues 1,832 1,774 +3.3% +4.4% o/w France 665 672 (1.0)% (1.0)% o/w International 1,166 1,103 +5.7% +7.5% Adjusted EBITA 105 110 (4.5)% As % of sales 5.7% 6.2% (50)bps o/w France 32 36 (11.1)% As % of sales 4.8
Slide 29: Outlook
5 OUTLOOK PHILIPPE GUILLEMOT ELIOR GROUP CEO 12/04/2018 29 ELIOR GROUP
Slide 30: 2019: 1st Year of the Elior Group 2021 Plan
2019: 1 ST YEAR OF THE ELIOR GROUP 2021 PLAN • Focus on execution of Elior Group 2021 • 2019: a year of stabilization, as planned – Above 1% organic growth at constant accounting standards incl. impact from voluntary termination of underperforming contracts in Italy External growth from acquisitions
Slide 31: Financial Agenda
FINANCIAL AGENDA • January 24, 2019: Revenue for the first quarter of 2018-2019 • March 22, 2019: AGM • May 29, 2019: Half-year results • July 25, 2019: Revenue for the first nine months of 2018-2019 12/04/2018 31 ELIOR GROUP
Slide 32: Conclusion Q&A
6 CONCLUSION Q&A PHILIPPE GUILLEMOT ESTHER GAIDE ELIOR GROUP CEO ELIOR GROUP CFO 12/04/2018 32 ELIOR GROUP
Slide 33: Appendix
APPENDIX 12/4/2018 33 Elior Group
Slide 34: Definition of Alternative Performance Indicators
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS Organic growth in consolidated revenue: Growth in consolidated revenue expressed as a percentage and adjusted for the impact of (i) changes in exchange rates, using the calculation method described in Chapter 4, Section 4.1.4.1 of the FY 2015-2016 Reg