Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — FY2021 Earnings Presentation
44 slides from Elior Group Sa's earnings presentation, Nov 24, 2021
Slide 1: 2020-21 Full Year Financial Results
2020-21 Full Year Financial Results Wednesday, November 24, 2021
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: Thank You to our Teams
Thank You to our Teams Elior Services Elior Catering 2
Slide 4: Agenda
1. Full Year 2020-21 Highlights Agenda 2. Full Year 2020-21 Financial Results 3. Strategic Update & Ambitions 2024 4. Q&A 3
Slide 5: Full Year 2020-21 Highlights
Full Year 2020-21 Highlights 4
Slide 6: Strong Rebound in the Fourth Quarter 2020-21
Strong Rebound in the Fourth Quarter 2020-21 Fourth quarter revenues reach 85% of fourth quarter 2018-19: Elior’s agility › Compared to 73-74% in the previous three quarters of the fiscal year 2020-21 has continued › Every month in 2020-21was impacted by COVID-19 compared to only 7 months in 2019-20
Slide 7: Full Year 2020-21 Financial Results
Full Year 2020-21 Financial Results 6
Slide 8: Fourth Quarter 2020-21 Revenue
Fourth Quarter 2020-21 Revenue Group Revenue by Geography +71.6 +8.6% 907 907.4 836 -3.6 0.5 France 74.7 413 International 412 835.8 Corporate & Others 491 423 +8.9% -0.4% +0.1% 1 3 Q4 2020 Organic Perimeter Forex Q4 2021 Growth Q4 2020 Q4 2021 7
Slide 9: Full Year 2020-21 Revenue
Full Year 2020-21 Revenue Elior Group Revenue (in €m) Group Revenue by Geography -276.7 -7.0% 3,966.8 3,967 France 3,690 -209.1 1,778 International 1,711 -3.9 3,690.1 -63.8 Cities 2,182 1,975 -5.3% -0.1% -1.6% 7 4 FY 2020 Organic Perimeter Forex FY 2021 Growth FY 2020 FY 2021 8
Slide 10: Full Year 2020-21 Retention
Full Year 2020-21 Retention Revenue in €m Full Year 2021 Retention Rate (-5.3%) 129 Openings 2021 Closing 2021 3,967 -131 91.4% -113 118 Openings 2020 Closing 2020 compared to -212 91.8% 3,758 year ago -2.9% +6.2% -8.6% Like New Lost FY 2021 FY 2020 for Like Business contracts Organic Revenue (1 – F
Slide 11: September 2021 Key Financials YoY and vs. Full Year 2019
September 2021 Key Financials YoY and vs. Full Year 2019 -13% +7% Revenue › Operating Margin improved by 40 bps vs 2019 despite lower revenue (-13%) EBITA at 2019 forex rate and excluding 2021 one-off staff Sept. 2019 Sept. 2020 Sept. 2021 mobility costs EBITA Drop-Through › EBITA Drop-Through reduc
Slide 12: Full Year 2020-21 EBITA
Full Year 2020-21 EBITA Group Adjusted EBITA Group Adjusted EBITA -13 -21 France contract catering & -30 Services -22 -1.7% -1.7% International contract catering -21 -26 Corporate & -64 -64 Others -69 -69 FY 2020 FY 2021 FY 2020 FY 2021 11
Slide 13: Full Year 2020-21 Profit and Loss Statement
Full Year 2020-21 Profit and Loss Statement FY 2021 FY 2020 YoY change Revenue 3,690 3,967 -277 Adjusted EBITA (64) (69) 5 Adjusted EBITA margin -1.7% -1.7% Share based compensation (5) (0) (5) Net amort. of intangible assets recognized on consolidation (18) (20) +2 EBITA (87) (89) 2 Impairment of g
Slide 14: Full Year 2020-21 Income Tax
Full Year 2020-21 Income Tax In €m FY 2021 FY 2020 YoY change Tax on Added Value (CVAE-IRAP) (11) (19) +8 Current Tax 2 4 (1) Deferred Tax 20 (68) +88 Total Income Tax 12 (83) +95 13
Slide 15: Full Year 2021 Free Cash Flow
Full Year 2021 Free Cash Flow In €m 100 -62 16 -35 19 13 -6 Reported Change Other Cash FY 2021 Tax FY 2021Free CAPEX EBITDA in OWC items Operating FCF Paid Cash-Flow 13 25 -18 5 27 -15 -11 FY 2020 Reported CAPEX Change Other Cash Tax FY 2021Free Free Cash Flow EBITDA in OWC items Paid Cash-Flow 14
Slide 16: Operating Working Capital
Operating Working Capital In €m and % of FY revenue Deferred payment of social charges in France -39 and in the US and of VAT in the UK French tax credit +76 +46 CICE receivables 42 OWC as 3 Reported -24 -24 -56 Normalized -71 OWC -101 FY 2018 FY 2019 FY 2020 FY 2021 Normalized OWC 0.1% -0.5% 0.1% -
Slide 17: Full Year 2020-21 Net Debt
Full Year 2020-21 Net Debt In €m -113 -11 24 -39 -995 -3 -7 -13 -65 1 -1,108 Sept. 2020 FCF excl. Securitization Interest paid & Net Discontinued Debt Repayment of FX and Other Sept. 2021 Net Debt Securitization financial fees Acquisitions activities Refinancing lease liabilities Net Debt (IFRS 16)
Slide 18: Full Year 2020-21 Liquidity
Full Year 2020-21 Liquidity In €m -316 -91 630 -41 -22 539 -32 -7 -3 -204 225 314 -7 Sept. 2020 FCF excl. Securitization Interest paid & Discontinued Net acquisition Debt FX and Other Sept. 2021Actual State Sept. 2021Actual Available Securitization financial fees activities Refinancing Available Liq
Slide 19: Successful Refinancing
Successful Refinancing Before Average cost of debt Debt maturity in € million 3.00% 2.65% 660 1.72% 360 530 225 2023 2024 2025 2026 2027 a) 30/09/2020 31/03/2021 30/09/2021 Estimate After Average cost of debt Debt maturity in € million 550 2.65% 2.89% 360 1.72% 350 225 100 30/09/2020 31/03/2021 30/0
Slide 20: Full Year 2021-22 Outlook
Full Year 2021-22 Outlook Organic growth Adjusted EBITA margin Capex around at least +18% between 2% - 2.5% 2.5% of revenue At constant rates and based on all known COVID-19 protocols at the time of publication 19
Slide 21: Strategic Update & Ambitions 2024
Strategic Update & Ambitions 2024 20
Slide 22: Elior's Value Creation Drivers (VCD)
Elior’s Value Creation Drivers (VCD) 1 Attractive Markets Catering Customer 5 Centricity/CSR 2 Cash Management Services Cross-sell /upsell Cost Client Optimization Retention 4 3 21
Slide 23: Value Creation Drivers Deep Dive
Value Creation Drivers Deep Dive VCD 1 VCD 2 VCD 3 VCD 4 VCD 5 Mix Shift Towards Increased Customer Systematic Focus Continuous Cost Cash Management Attractive Markets Centricity/CSR on Retention Optimization and Allocation › Address self- › Systematically › Leverage crisis › Reshape › Focus on DSO
Slide 24: Catering Solutions Flexible over time and space, Inflexible on Quality
Catering Solutions that are Flexible over time, Flexible in Space, Inflexible in Terms of Quality VCD 2 › Local Sourcing › Home Made › Best Nutritional Profile › Digital Experience 23
Slide 25: Increase Addressable Markets: Small and Midsize Businesses (SMBs)
Increase Addressable Markets: Small and Midsize Businesses (SMBs) VCD 1 Aditionnal SMBs Aditionnal Original B&I market: Original B&I market: market: SMBs market: €3bn €1.3bn €1.2bn €500m Source: Company estimates 24
Slide 26: Italy Case Study: Deployment Accelerated with I Colti
Italy Case Study: Deployment Accelerated with I Colti VCD 2 Food360 Number of SMB Sites 160 140 136 120 Urban360 100 80 60 51 40 The Market 20 17 2 0 2018 2019 2020 2021 25
Slide 27: CSR: 2025 Objectives Reaffirmed
CSR: 2025 Objectives Reaffirmed VCD 2 Food waste -30% Reduce by 2025, Compared to 2020, per meal -12% Renewable electricity Greenhouse gas emission 80% By 2025 and reduced our energy consumption By 2025, compared to 2020, per meal, scope 1-2-3 Menu CO2 Reduction By menu redesign that respects Footpr
Slide 28: CSR: 2021 Main Achievements
CSR: 2021 Main Achievements VCD 2 Healthy Sustainable Circular Thriving teams choices ingredients model and local communities 100% in 2021 42% in 2021 99.7% in 2021 50% in 2021 of our operations have of fish & seafood served of revenues from entities are of managers at Elior are women* implemented a
Slide 29: Massive Deployment of Nutri-Score in Education and B&I in France
Massive Deployment of Nutri-Score in Education and B&I in France VCD 2 B&I Nov 2019 2020 Oct 2021 Elior announced Launched Nutri-Score at Nutri-Score Nutri-Score 642 for B&I at Ansamble sites in France 2019 2020 2021 Education June 2022 Sept 2020 Oct 2021 Nutri-Score Elior launched Nutri-Score at de
Slide 30: Dynamic Shared Innovation
Dynamic Shared Innovation VCD 2 Innovative Projects posted on the Life4 platform Connections to our Life4 platform 157 +261% 79 15 2019 2020 2021 2019 2020 2021 29
Slide 31: 2021 Elior's Innovations Awards
2021 Elior’s Innovations Awards VCD 2 Elior Services Elior UK Elior North America Effi See Eco Points Healthy at home Elior Italy Elior Catering Serunion I Colti Heol Easy Q 30
Slide 32: Ambitions 2024: Retention
Ambitions 2024: Retention VCD 3 Systematic Focus on retention: Retention will improve from 91.4% to around 95% through several key actions Systematic processes & additional resources to boost retention Measure consumer Gain client trust Align Define and monitor Manage pro-actively Perform systematic
Slide 33: Ability to Passthrough Cost Inflation
Ability to Passthrough Cost Inflation VCD 4 Contract types (in % of revenue) 4% 8% Cost Plus Immediate P&L Private Anytime: through negotiations on top of price revisions 40% P&L Public Mainly through yearly price revisions Fixed Price 48% Case by case basis 32
Slide 34: Ambitions 2024: Profitability Improvement with Revenue back to Pre-COVID Level
Ambitions 2024: Profitability Improvement with Revenue back to Pre-COVID Level VCD 4 240bps -120bps -40bps 20bps 3.6% Around 4.6% EBITA Margin FY19 Optimization of Reinvestment Pricing, change Zone mix in EBITA Margin FY24 cost structure in development in mix, inflation revenue recovery and organiza
Slide 35: Ambitions 2024: Evolution of Organic Growth vs CAPEX Ratio
Ambitions 2024: Evolution of Organic Growth vs CAPEX Ratio VCD 5 FY18 and FY19 restated from Areas and Italy Organic growth vs capex ratio FY20 to FY22 organic growth restated from L4L impact 3x 2x 0.9 0.2 -1.5 -1.4 FY18A FY19A FY20A FY21A FY22 FY23 FY24 34
Slide 36: Ambitions 2024 & CSR Objectives 2025
Ambitions 2024 & CSR Objectives 2025 Organic growth: Adjusted EBITA: -12% Greenhouse at least +7% CAGR margin around 4.6% gas emission for 2022-23 and 2023-24 in 2024 By 2025, compared to 2020, per meal, scope 1-2-3 Food waste -30% Reduce by 2025, Compared to 2020, per meal Organic revenue growth Re
Slide 37: Q&A
om e eliorsroup QGA
Slide 38: Appendices
Appendices 37
Slide 39: Financial Agenda
Financial Agenda January 27 February 28 May 18 July 27 2022 2022 2022 2022 First quarter revenues AGM Half year results Third quarter revenues 2021-2022 2020-2021 2021-2022 2021-2022 38
Slide 40: Alternative Performance Indicators
Alternative Performance Indicators Organic growth in consolidated revenue: as described in Chapter 4, Section 4.2 of the fiscal Universal Registration Document, growth in consolidated revenue expressed as a percentage and adjusted for the impact of (i) changes in exchange rates, (ii) changes in acco
Slide 41: Modelling Details for Full Year 2021-22
Modelling Details for Full Year 2021-22 Working Capital: Net financial expenses: CVAE: Non-recurring cash: flat interest rate 2.89% flat year-on-year around €50 - 60m 40
Slide 42: New Offering and Operating Models: more Flexible in terms of when and where
New Offering and Operating Models: more Flexible in terms of “when and where” without compromising on Quality Reinventing our core catering business by introducing new offerings, new production methods and ways to make meals available to guests, leveraging on existing infrastructure and digital inno
Slide 43: History and Key Milestones
History and Key Milestones Entry into the US Entered French Build-up Company taken private contract catering market Philippe Guillemot concession presence by Charterhouse, (acquisition of Trust appointed CEO catering market in Spain Chequers and Robert House Services) (Dec. 2017) Zolade Acquisition
Slide 44: eliorGroup
eliorGroup