Edenred Sa · EURONEXT:EDEN
Edenred Sa — Q1 2024 Earnings Presentation
38 slides from Edenred Sa's earnings presentation, Apr 18, 2024
Slide 1: Q1 2024 Revenue
Q1 2024 REVENUE April 18, 2024
Slide 2: Executive Summary
EXECUTIVE SUMMARY Continued vigorous momentum, leading to a buoyant start of the year Q1 2024 total revenue of €685m, up 21.4% as reported1 and 20.5% like-for-like1 • Operating revenue up 18.8% as reported1 and 16.9% like-for-like1 • Other revenue of €60m, up from €38m in Q1 2023 Solid execution o
Slide 3: Agenda
AGENDA 1. Q1 2024 highlights 2. Q1 2024 revenue 3. 2024 outlook 3
Slide 4: Edenred records an excellent start to the year and continues its strong momentum
Edenred records an excellent start to the year and continues its strong momentum 4
Slide 5: Starting 2024 with robust top line growth
STARTING 2024 WITH ROBUST TOP LINE GROWTH… Operating Revenue in €m 625 +99 Excellent start to the year thanks to continued 5261 strong commercial momentum and powerful long-term drivers Continued success of Edenred core and Beyond solutions, driving further market penetration Q1 2023 Q1 2024 pro
Slide 6: Driven by continued double-digit growth in Benefits & Engagement and Mobility
…DRIVEN BY CONTINUED DOUBLE-DIGIT GROWTH IN BENEFITS & ENGAGEMENT AND MOBILITY Benefits & Engagement Mobility Complementary Solutions ▪ Corporate Payment Services % OF Q1 2024 GROUP OPERATING REVENUE 65% 24% 11% ▪ Incentive & Rewards ▪ Public Social Programs €408m €150m €67m Q1 2024 LIKE-FOR-LIKE OP
Slide 7: Well-balanced growth across geographies
WELL-BALANCED GROWTH ACROSS GEOGRAPHIES Europe +12.8% like-for-like 61% vs. Q1 2023 Latin America +22.0% like-for-like 29% vs. Q1 20231 Rest of the World +28.7% like-for-like 10% vs. Q1 2023 1. Based on adjusted 2023 figures that reflect the reclassification to operating expenses of customer rebates
Slide 8: Rolling out the Beyond22-25 strategy
Rolling out the Beyond22-25 strategy 8
Slide 9: Edenred continues to benefit from powerful long-term drivers
EDENRED CONTINUES TO BENEFIT FROM POWERFUL LONG-TERM DRIVERS Working world transformations A new era of mobility Talent war, increased focus on wellbeing Fleet managers’ demand for greener & demand for personalized benefits and smarter mobility Edenred A FULLY INTEGRATED THE END-TO-END PLATFORM FOR
Slide 10: Scaling the Edenred platform
SCALING THE EDENRED PLATFORM #3. Expand in New Businesses Expand in Enriched business model new business #2. Extend Beyond opportunities Accelerate Beyond Food, 10% #1. Scale the Fuel and Core Payment ▪ Design and Grow further in distribute new underpenetrated services… core markets ▪ … through a ▪
Slide 11: Harnessing the vast potential for organic growth
HARNESSING THE VAST POTENTIAL FOR ORGANIC GROWTH Further room for penetrating our markets Further room for growing the face value usage Benefits & Corporate Current face value usage still far from average of Mobility Engagement Payment 85% of maximum face-values in many countries ~30% ~10% >5% >10
Slide 12: Scaling in the Italian B2B mobility market with the acquisition of IP's energy cards
SCALING IN THE ITALIAN B2B MOBILITY MARKET WITH THE ACQUISITION OF IP’S ENERGY CARDS BUSINESS Acquiring a best-in-class asset Highly recognized brand Extended presence across all Italian regions Strong footprint in the SME segment ~50,000 B2B clients >€30m Revenue in 2023 ~4,600 Fuel stations
Slide 13: Becoming a leader in B2B Mobility in Italy
BECOMING A LEADER IN B2B MOBILITY IN ITALY Leveraging the great complementarity between both Edenred and IP brands… … with cross-selling opportunities ahead In Italy by combining Edenred UTA’s valued-added solutions for #2 Edenred UTA and IP IP customers, such as electronic toll settlement, positi
Slide 14: Acquisition of Spirii, a European SaaS platform for EV charging
ACQUISITION OF SPIRII, A EUROPEAN SAAS1 PLATFORM OFFERING A BROAD RANGE OF EV CHARGING SOLUTIONS , a best-in-class asset for EV charging Infrastructure 3rd party hardware reseller partnering with 2019 Founded in Denmark best-in-class technology providers Selected examples 18 European countries cover
Slide 15: With Spirii, Edenred is best positioned to benefit from e-mobility in Europe
WITH SPIRII, EDENRED IS BEST POSITIONED TO BENEFIT FROM E-MOBILITY IN EUROPE Integrated Fleet 360° Charging Solutions Services Road Work & Depot Home Fleet Services Hybrid card & mobile app for From project design & CP1 marketplace & data Billing & payment solutions, CP1 location finder & remote ins
Slide 16: Reinforcing Benefits Beyond Food: RB acquisition in Brazil
REINFORCING BENEFITS BEYOND FOOD: RB ACQUISITION IN BRAZIL Attractive employee transport market Acquiring RB1 to drive scale 1999 Founded Mandatory benefit for employees ~300 employees ~30% of total workforce using public transportation to commute Customers, with a 15,000+ daily strong SME focus
Slide 17: Rolling out the Reward Gateway offer in Continental Europe
Rolling out the Reward Gateway offer in Continental Europe 17
Slide 18: All set for the deployment of Reward Gateway in Continental Europe
ALL SET FOR THE DEPLOYMENT OF REWARD GATEWAY IN CONTINENTAL EUROPE Confirmed appreciation for engagement platforms by HR managers and employees Sales team recruited and go-to-market strategy defined Sales pitching in France and Belgium : positive feedback from sales teams Roll-out in Belgium,
Slide 19: Update on Italy investigation process
Update on Italy investigation process 19
Slide 20: Italian case: where do we stand?
ITALIAN CASE: WHERE DO WE STAND? What happened? • May 2021:x 4 lots (out of 15) won by Edenred Italy as part of Consip 9 public tender, for a Business Volume of c.€600m xxxxxxxxx for 2 to 3 years • Sept. 2021: Tender’s award challenged by a competitor, Repas (est. market share of 5%), before the adm
Slide 21: What was in place before February 2024?
WHAT WAS IN PLACE BEFORE FEBRUARY 2024? Worldwide • Whistleblowing system on many dimensions (e.g. Anticorruption, Antitrust and competition law, Anti Money Laundering) • Mandatory trainings on Business ethics and Compliance (e.g. Anticorruption, Antitrust and competition law, Anti Money Laundering,
Slide 22: What did we put in place since February 2024?
WHAT DID WE PUT IN PLACE SINCE FEBRUARY 2024? New tender procedure • Group-wide framework prepared with the assistance of a world-leading audit firm – ongoing Q2 2024 • Deployment in all Edenred business units – scheduled for H2 2024 New process overview • Each public and private contract is assesse
Slide 23: Agenda
AGENDA 1. Q1 2024 highlights 2. Q1 2024 revenue 3. 2024 outlook 23
Slide 24: Q1 2024 Total Revenue
Q1 2024 TOTAL REVENUE Q1 20231 Total revenue €565m LIKE-FOR-LIKE +20.5%1 Scope +5.2% Currency -4.4% REPORTED +21.4%1 €685m Q1 2024 1. Based on adjusted 2023 figures that reflect the reclassification to operating expenses of customer rebates in Brazil, recognized as a decrease in revenue in 2023. The
Slide 25: Another quarter of strong operating revenue growth
Q1 2024 operating revenue ANOTHER QUARTER OF STRONG OPERATING REVENUE GROWTH Q1 20231 Operating revenue €526m LIKE-FOR-LIKE +16.9%1 Scope +5.5% Currency -3.6% REPORTED +18.8%1 €625m Q1 2024 1. Based on adjusted 2023 figures that reflect the reclassification to operating expenses of customer rebates
Slide 26: Continued performance in Europe with double-digit LFL growth
Q1 2024 operating revenue – Europe CONTINUED PERFORMANCE IN EUROPE WITH DOUBLE-DIGIT LFL GROWTH OPERATING REVENUE Q1 comments vs. Q1 2023 France +18.0% €382m as reported Continued strong momentum in Ticket Restaurant 61% in Q1 24 delivering double-digit growth, fueled by new client wins +12.8% LFL
Slide 27: Sustained momentum across the region
Q1 2024 operating revenue – Latin America SUSTAINED MOMENTUM ACROSS THE REGION OPERATING REVENUE Q1 comments vs. Q1 20231 +15.7% Brazil €182m as reported 29% in Q1 24 Strong momentum in Benefits & Engagement, +22.0% continuously delivering double-digit growth LFL Mobility growth fueled by the tr
Slide 28: Strong other revenue growth
Q1 2024 other revenue STRONG OTHER REVENUE GROWTH Sustained business momentum positively impacting the float in all geographies, in particular in Brazil OTHER REVENUE Q1 2024 benefiting from a positive interest rate impact explained by: €44m €60m in Q1 24 ▪ Positive effect of H1 2023 interest ra
Slide 29: Agenda
AGENDA 1. Q1 2024 highlights 2. Q1 2024 revenue 3. 2024 outlook 29
Slide 30: Further sustainable and profitable growth in 2024 and beyond
FURTHER SUSTAINABLE AND PROFITABLE GROWTH IN 2024 AND BEYOND Edenred keeps on capturing sustainable and profitable growth opportunities Meeting the growing needs arising from a changing working world and the advent of a 1 new era of mobility Further penetrating its core markets notably in the SME se
Slide 31: Enrich connections. For good.
Enrich connections. FOr QOOd
Slide 32: Appendices
APPENDICES
Slide 33: Edenred, a world leader in Benefits & Engagement with an extended value proposition
EDENRED, A WORLD LEADER IN BENEFITS & ENGAGEMENT WITH AN EXTENDED VALUE PROPOSITION Distributing additional 3rd party benefits… …and expanding to engagement through M&A Employee Rewards & Employee Benefits management platform Well-being Savings Recognition Communications Edenred benefits 3rd-party b
Slide 34: Edenred, a world leader in B2B Mobility
EDENRED, A WORLD LEADER IN B2B MOBILITY Fuel Beyond Fuel Solutions Fuel/ EV1 charging Fleet Toll Freight VAT refund Ethanol maintenance payment services Share of 2023 operating 70% 30% revenue Acquisitions in Q1 2024 Our brands 1. Electric Vehicle 34
Slide 35: Revenue by region
REVENUE BY REGION Q1 Q1 Q1 In € millions 2024 2023 In € millions 2024 2023 In € millions 2024 2023 Europe 383 324 Europe 32 22 Europe 415 346 France 91 86 France 8 4 France 98 90 Rest of Europe 292 238 Rest of Europe 25 19 Rest of Europe 317 256 1 182 157 20 12 1 202 169 Latin America Latin America
Slide 36: 2023 published and adjusted figures
2023 PUBLISHED AND ADJUSTED1 FIGURES (in € millions) Edenred - Operating Revenue Q1 Q2 Q3 Q4 FY Published 2023 519 562 575 655 2 311 Adjusted 2023 526 569 583 664 2 343 Edenred - EBITDA H1 H2 FY Published 2023 483 611 1 094 Adjusted 2023 483 611 1 094 Edenred - EBITDA margin H1 H2 FY 2023 reported 4
Slide 37: Average exchange rate
AVERAGE EXCHANGE RATE Average rates Spot rate as Spot rate as 2024 vs. 2023 of €1 = X foreign currency Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 YTD 2023 of 31.03.2023 Change (in %) 31.03.2024 Brazilian real (BRL) 5.38 5.58 4% 5.40 5.31 5.33 5.40 5.40 5.60 Mexican Peso (MXN) 18.45 20.06 8% 19.28 18.57
Slide 38: 2024 expected calendar effects
2024 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2024 Nb of Nb of Nb of Nb of Nb of Working days days days days days days Europe (1) 1 1 1 2 Latin America (2) 2 1 2 4 Rest of the world (0) 0 1 1 1 TOTAL (1) 1 1 1 2 38