Edenred Sa · EURONEXT:EDEN
Edenred Sa — H1 2018 Earnings Presentation
38 slides from Edenred Sa's earnings presentation, Jul 24, 2018
Slide 1: H1 2018 Results
H1 2018 Results July 24, 2018 1
Slide 2: Disclaimer
DISCLAIMER Financial data for 2018 are provided in accordance with IFRS 15 and IFRS 9, effective since January 1, 2018. To ensure a meaningful comparison with 2017, financial data for the period included in this presentation have been restated in accordance with the new standards. Reconciliation tab
Slide 3: Agenda
Agenda 1. H1 2018 Key Figures & Highlights 2. H1 2018 Results 3. 2018 Outlook 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY Accelerated organic operating revenue growth of 13.4%(1) in Q2 2018, following on from 9.8%(1) in Q1 Record organic growth in H1 2018, reflecting Edenred’s successful innovation strategy, its rebalanced portfolio of business lines and geographies, and the strong operating lever
Slide 5: H1 2018 Key Financial Figures
H1 2018 KEY FINANCIAL FIGURES Record organic growth H1 2018 H1 2017 Reported L/L growth Annual medium- in €m in €m growth (excl. Venezuela(1)) term targets (L/L) Operating revenue 640 616 +4% +12% > +7 % Operating EBIT 190 173 +11% +20% > +9 % Funds from operations 200 179 +11% +18% > +10% (1) H1 20
Slide 6: H1 2018 Operating Revenue Breakdown & Growth by Business Line
H1 2018 OPERATING REVENUE BREAKDOWN & GROWTH BY BUSINESS LINE Sustained growth across all business lines EMPLOYEE BENEFITS FLEET & MOBILITY COMPLEMENTARY SOLUTIONS SOLUTIONS Corporate Payment % OF H1 2018 Incentive & Rewards GROUP OPERATING 66% 25% 9% Public Social Programs REVENUE H1 2018 OPERATING
Slide 7: H1 2018 Operating Revenue Breakdown & Growth by Geography
H1 2018 OPERATING REVENUE BREAKDOWN & GROWTH BY GEOGRAPHY Sustained growth across all regions Europe 57% +13.0% L/L +14.7% as reported Rest of the World 6% +8.3% L/L Latin America -4.3% as reported +10.4% L/L(1) 37% (excluding Venezuela) -7.8% as reported % of H1 2018 Group operating revenue (1) H1
Slide 8: Employee Benefits €420m +10.0% L/L
EMPLOYEE BENEFITS Innovative offers creating differentiation and fueling growth H1 2018 operating revenue L/L operating revenue growth (excluding Venezuela) €420m (1) 11.8% (1) 10.0% (1) (1) 8.5% +10.0% L/L (1) 7.1% +4.0% as reported FY 17 Q1 18 Q2 18 H1 18 STRONG Q2 2018 INNOVATIVE ACHIEVEMENTS BY
Slide 9: Fleet & Mobility Solutions €161m +16.3% L/L
FLEET & MOBILITY SOLUTIONS Sustained growth across all our segments H1 2018 operating revenue L/L operating revenue growth €161m 19.7% 17.9% +16.3% L/L 16.3% 14.7% +4.2% FY 17 Q1 18 Q2 18 H1 18 as reported STRONG Q2 2018 INNOVATIVE ACHIEVEMENTS BY EDENRED Fuel & Fleet Launch of UTA European Exclus
Slide 10: Edenred Corporate Payment
EDENRED CORPORATE PAYMENT Innovating to build solutions that make Corporate payments smart & efficient VIRTUAL VIRTUAL ACCOUNT IDENTIFIED TAILOR- CARD CARD PAYABLES BANK MADE PORTAL API SOLUTION TRANSFERS PROGRAMS PAY-OUT CASH-IN Pilot successfuly Live in 15 countries launched +23 new countries (to
Slide 11: Unique Technological Leadership
UNIQUE TECHNOLOGICAL LEADERSHIP A global platform to fuel the Fast Forward growth strategy Edenred’s global technology platform MULTI-TECHNOLOGY OMNICHANNEL Mobile Cards NFC tag Smart transfers PROPRIETARY - NFC - Plastic/virtual - QR code - Prepaid/postpaid Strong competitive - App-to-App - Closed/
Slide 12: Recent Emblematic Partnerships to Enhance the User Experience
RECENT EMBLEMATIC PARTNERSHIPS TO ENHANCE THE USER EXPERIENCE Fast global roll-out of innovative solutions fostering end-user engagement Fast, seamless payment with mobile Order & pay for your meal in a few steps Edenred, the only meal Proprietary solutions benefits issuer to offer access to meal de
Slide 13: Agenda
Agenda 1. H1 2018 Key Figures & Highlights 2. H1 2018 Results 3. 2018 Outlook 13
Slide 14: H1 2018 Operating Revenue
H1 2018 OPERATING REVENUE Accelerating operating revenue gains in Q2 leading to solid double-digit L/L growth H1 2018 €640m L/L operating growth (excluding Venezuela) Reported +4.0% (2) 13.4% (2) (2) (2) 11.6% 9.3% 9.8% Venezuela -0.5% Scope +1.0% FY 17 Q1 18 Q2 18 H1 18 2017 growth rates do not t
Slide 15: H1 2018 Operating Revenue – Europe €362m
H1 2018 OPERATING REVENUE – EUROPE Sustained double-digit L/L growth 2018 vs. 2017 H1 2018 L/L growth operating revenue of Group €362m Q1 Q2 H1 operating 57% +14.7% France +8.6% +10.2% +9.4% revenue vs. €316m in H1 2017 Europe excl. France +13.8% +15.9% +14.9% Total Europe +11.9% +14.1% +13.0% Franc
Slide 16: H1 2018 Operating Revenue – Latin America €243m
H1 2018 OPERATING REVENUE – LATIN AMERICA Solid double-digit L/L growth in H1 2018, with an acceleration in Brazil 2018 vs. 2017 L/L growth (excluding Venezuela) H1 2018 operating revenue Q1 Q2 H1 of Group €243m Hispanic Latin America +15.8%(1) +15.4%(1) +15.6%(1) 37% operating -7.8% revenue vs. Bra
Slide 17: H1 2018 Other Operating Income (Formerly Financial Revenue)
H1 2018 OTHER OPERATING INCOME (FORMERLY FINANCIAL REVENUE) Decrease mainly linked to less favorable investment conditions in Europe In €m Reported L/L change H1 2018 H1 2017 change (excluding Venezuela) Other operating income impacted by: Latin America 16 20 -19.1% -5.2%(1) Strong currency effect
Slide 18: H1 2018 Total Income (Formerly Total Revenue): €665m
H1 2018 TOTAL INCOME (FORMERLY TOTAL REVENUE): €665M Double-digit organic growth partially offset by strong currency headwinds H1 2018 €665m Reported +2.3% Total income (formerly total revenue) growth in Q2 2018 Reported L/L change In €m Q2 18 Q2 17 change (excluding Venezuela) Venezuela -0.5% Ope
Slide 19: H1 2018 Total EBIT: €215m
H1 2018 TOTAL EBIT: €215M L/L operating EBIT and total EBIT margins up 2.2pts and 1.2pts, respectively Reported H1 2017 In € millions H1 2018 H1 2017 L/L change(1) change published Operating revenue 640 616 +4.0% +11.6% 616 Other operating income (A) 25 34 -27.3% -17.5% 34 Total income 665 650 +2.3%
Slide 20: H1 2018 EBIT Bridge
H1 2018 EBIT BRIDGE Strong operating leverage despite currency headwinds Operating revenue Other operating Changes L/L∆: €71m Currency effect Venezuela income in scope (excluding Venezuela) (excluding Venezuela) H1 2017 EBIT H1 2018 EBIT €207m €35m €(6)m €2m €(22)m €(1)m €215m of which: €(16)m from
Slide 21: H1 2018 Net Profit: €124m
H1 2018 NET PROFIT: €124M Increase in net profit, Group share Reported In € millions H1 2018 H1 2017 change EBITDA 251 243 +3.8% Depreciation and amortization excluding PPA (25) (24) Purchase price allocation (PPA) (11) (12) EBIT 215 207 +4.3% Including +€19m in capital Share of net profit from equi
Slide 22: H1 2018 Cash Flow Statement
H1 2018 CASH FLOW STATEMENT Strong funds from operations and free cash flow generation In € millions H1 2018 H1 2017 Funds from operations 200 179 +17.5% L/L Increase/(decrease) in cash linked to changes in float (1) (270) (263) (Increase)/decrease in restricted cash (121) (83) (Increase)/decrease i
Slide 23: Net Debt Bridge
NET DEBT BRIDGE Bridge from December 31, 2017 to June 30, 2018 Net debt position Dec. 31st, 2017 (before currency Currency effect June 30, 2018 net debt position Free cash Acquisitions (incl. Shareholders’ effects and other and other non- net debt position (IFRS 9 restated) flow put options) return
Slide 24: Net Debt Bridge
NET DEBT BRIDGE Bridge from June 30, 2017 to June 30, 2018 Net debt position June 30, 2017 (before currency Currency effect June 30, 2018 net debt position Free cash Acquisitions (incl. Shareholders’ effects and other and other non- net debt position (reported) flow put options) return non-recurring
Slide 25: Agenda
Agenda 1. H1 2018 Key Figures & Highlights 2. H1 2018 Results 3. 2018 Outlook 25
Slide 26: 2018 Outlook by Region
2018 OUTLOOK BY REGION H2 2018 expected trends Europe Latin America Employee Benefits: Employee Benefits: - Further improvement of Edenred’s competitive - In Brazil, in a context of persistently high edge driven by innovation skills, enabling quick, unemployment and uncertainty linked to the cost-ef
Slide 27: FY 2018 Outlook
FY 2018 OUTLOOK Edenred to substantially outperform its annual medium-term targets in 2018 > +7 % > +9% > +10% L/L operating L/L operating L/L FFO growth revenue growth EBIT growth Edenred aims to report FY 2018 EBIT of between: €440m and €470m (1) (vs. €429m in 2017) (1) Based on an assumption of a
Slide 28: Appendices
Appendices 28
Slide 29: IFRS Restated 2017 Operating Revenue
IFRS RESTATED 2017 OPERATING REVENUE Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 In € millions Reported Restated Change Reported Restated Change Reported Restated Change Reported Restated Change Reported Restated Change Europe 156 161 +5 160 155 -5 149 149 0 208 187 -21 673 652 -21 France 50 57 +7 50 49
Slide 30: IFRS Restated 2017 Operating EBIT & EBIT
IFRS RESTATED 2017 OPERATING EBIT & EBIT H1 2017 H2 2017 FY 2017 In € millions Reported Restated Change Reported Restated Change Reported Restated Change Europe 85 92 +7 98 83 -15 183 175 -8 France 18 25 +7 24 14 -10 42 39 -3 Rest of Europe 67 67 0 74 69 -5 141 136 -5 Latin America 89 90 +1 99 99 0
Slide 31: Balance Sheet – IFRS 9 & 15 Impacts
BALANCE SHEET – IFRS 9 & 15 IMPACTS June 2017 reported to June 2018 new standards Dec 17 IFRS 9 & Dec 17 Jun 17 Dec 17 IFRS 9 & Dec 17 Jun 17 In € millions Jun 18 In € millions Jun 18 Restated IFRS 15 Reported Reported Restated IFRS 15 Reported Reported Goodwill 965 994 994 1,050 Total equity (1,569
Slide 32: Operating Revenue
OPERATING REVENUE Q1 Q2 H1 In € millions 2018 2017 2018 2017 2018 2017 Europe 183 161 179 155 362 316 France 63 57 55 49 118 107 Rest of Europe 120 104 124 106 244 209 Latin America 119 132 124 132 243 263 Rest of the world 17 17 18 19 35 37 Total operating revenue 319 310 321 306 640 616 Q1 Q2 H1 L
Slide 33: Other Operating Income (Formerly Financial Revenue)
OTHER OPERATING INCOME (FORMERLY FINANCIAL REVENUE) Q1 Q2 H1 In € millions 2018 2017 2018 2017 2018 2017 Europe 4 6 3 6 7 12 France 2 3 1 3 3 5 Rest of Europe 2 3 2 3 4 7 Latin America 8 10 8 9 16 20 Rest of the world 1 2 1 1 2 2 Other operating income 13 18 12 16 25 34 Q1 Q2 H1 L/L (excl. L/L (excl
Slide 34: Total Income (Formerly Total Revenue)
TOTAL INCOME (FORMERLY TOTAL REVENUE) Q1 Q2 H1 In € millions 2018 2017 2018 2017 2018 2017 Europe 187 167 182 161 369 328 France 65 60 56 52 121 112 Rest of Europe 122 107 126 109 248 216 Latin America 127 142 132 141 259 283 Rest of the world 18 19 19 20 37 39 Total income 332 328 333 322 665 650 Q
Slide 35: Operating EBIT & EBIT
OPERATING EBIT & EBIT Change L/L Change In € millions H1 2018 H1 2017 (excl. reported Venezuela) Europe 110 92 +20.9% +18.0% France 27 25 +7.2% +6.2% Rest of Europe 83 67 +26.0% +22.3% Latin America 85 90 -5.9% +13.5% Rest of the world 2 2 +1.0% +14.7% Holding and others (7) (11) -39.3% -53.7% Total
Slide 36: Average Exchange Rate
AVERAGE EXCHANGE RATE Average rates 2018 vs. 2018 vs. 2018 vs. Spot rate Spot rate 2017 2017 2017 €1 = X foreign currency Q1 2018 Q1 2017 Q2 2018 Q2 2017 H1 2018 H1 2017 as of as of Change Change Change 30.06.2017 30.06.2018 (in%) (in%) (in%) Bolivar Fuerte (VEF) 28 002 737 -97.4% 84 802 1 424 -98.3
Slide 37: 2018 Expected Calendar Effects
2018 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2018 Nb of Nb of Nb of Nb of Nb of Working days days days days days days Europe -1 1 0 1 1 Latin America -2 2 -1 1 1 Rest of the world -2 -3 0 1 -3 TOTAL -1 1 0 1 1 37
Slide 38: ceginest
ceginest WIN