Edenred Sa · EURONEXT:EDEN
Edenred Sa — FY2022 Earnings Presentation
70 slides from Edenred Sa's earnings presentation, Feb 21, 2023
Slide 1: FY 2022 Results
FY 2022 RESULTS February 21, 2023
Slide 2: Another set of record results in 2022
ANOTHER SET OF RECORD RESULTS IN 2022 Record full-year top line growth further boosted by a marked acceleration in Q4 Total revenue at €2,031m in FY 2022, up 24.8% as reported, including 29.6% growth in Q4 • Operating revenue at €1,944m, up 22.8% as reported and 19.2% like-for-like • Other revenue
Slide 3: Strong outlook for 2023 and beyond
STRONG OUTLOOK FOR 2023 AND BEYOND Taking full advantage of its unique platform, Edenred is setting the ground for further sustainable and profitable growth in the coming years Scaling the core to grow further in still vastly underpenetrated existing markets Accelerating the Beyond Food, Beyond
Slide 4: Agenda
AGENDA 1. 2022 results 2. BEYOND22-25: scaling the Edenred platform 3. FY 2022 detailed financial performance 4. 2023 outlook 4
Slide 5: 2022: Strong performance, far beyond previous records
2022: STRONG PERFORMANCE, FAR BEYOND PREVIOUS RECORDS €2,031m €836m €881m €386m +24.8% +24.9% +70.1% +23.3% reported vs. 2021 reported vs. 2021 reported vs. 2021 reported vs. 2021 5
Slide 6: Strong commercial momentum translated into double-digit like-for-like growth
Strong commercial momentum translated into double-digit like-for-like growth across the board 6
Slide 7: Record L/L operating revenue growth in 2022
RECORD L/L OPERATING REVENUE GROWTH IN 2022 +19.2% L/L growth in FY 2022 operating revenue +22.3% Operating revenue at €1,944m in 2022 +19.1% +17.3% Marked acceleration in Q4 driven by sound execution of end-of-year campaigns and continued success of Beyond strategy H1 22 Q3 22 Q4 22 Like-for-li
Slide 8: Robust double-digit growth in all business lines
ROBUST DOUBLE-DIGIT GROWTH IN ALL BUSINESS LINES… Employee Benefits Fleet & Mobility Complementary Solutions ▪ Corporate Payment Services % OF FY 2022 GROUP OPERATING REVENUE 59% 28% 13% ▪ Incentive & Rewards ▪ Public Social Programs €1,152m €539m €253m FY 2022 REPORTED OPERATING REVENUE GROWTH vs.
Slide 9: ...and in all geographies
…AND IN ALL GEOGRAPHIES Europe +17.7% reported 61% +17.7% like-for-like vs. FY 2021 Latin America +33.6% reported 31% +18.7% like-for-like vs. FY 2021 Rest of the World +25.2% reported 8% +32.7% like-for-like vs. FY 2021 9
Slide 10: Top-line growth drove further increase in profitability
Top-line growth drove further increase in profitability 10
Slide 11: Record-high EBITDA, in the upper end of the guidance
RECORD-HIGH EBITDA, IN THE UPPER END OF THE GUIDANCE EBITDA up +23.3% L/L vs. 2021 EBITDA in €m EBITDA at €836m, in the upper end of the €836m €810m to €840m target range1 €670m Increase of 24.9% in reported figures Margin up 69 bps L/L thanks to strong 41.2% increase in both operating and oth
Slide 12: Cash generation was at its highest
Cash generation was at its highest 12
Slide 13: Record free cash flow leads to unleveraged profile
RECORD FREE CASH FLOW LEADS TO UNLEVERAGED PROFILE Free cash flow up +70.1% Net debt down -€509m vs. 2021 vs. 2021 €881m 1,000 €170m 900 €816m 800 €518m 700 600 €307m 500 €711m 400 300 200 100 - FY 2021 FY 2022 Dec 31, 2021 Dec 31, 2022 EBITDA to FCF 1 Net debt conversion 77% 85% to EBITDA 1.2x 0.4x
Slide 14: Also delivering outstanding extra-financial performance
Also delivering outstanding extra-financial performance 14
Slide 15: Strengthened long-standing ESG commitment
STRENGTHENED LONG-STANDING ESG COMMITMENT Outperforming 2022 targets Among the industry’s leading ESG ratings 2022 Member since September 2022 target 2022 % of women among executive 31% 33% 72/100 +2 pts vs. 2021 positions 2023 member of the % GHG emissions Sustainability Yearbook intensity reductio
Slide 16: Agenda
AGENDA 1. 2022 results 2. BEYOND22-25: scaling the Edenred platform 3. FY 2022 detailed financial performance 4. 2023 outlook 16
Slide 17: Edenred, the everyday platform for people@work
Edenred, the everyday platform for people@work in… 17
Slide 18: Edenred vision
Edenred vision New market paradigm Edenred platform advantage
Slide 19: Working world transformations
WORKING WORLD TRANSFORMATIONS A surging demand for differentiated and customized employee benefits solutions HR managers planning to have a differentiated and personalized employee benefits strategy Source: Willis Towers Watson 2021 Global Benefit Trends Survey A portfolio of 100+ 100+ Employee in %
Slide 20: A new era of mobility
A NEW ERA OF MOBILITY Surging fleet manager demand for solutions to manage energy mix & automation Pain-point intensity for fleet managers [1-low; 5-high] Source: Global Fleet Survey 2021 Energy mix 2.8 & carbon emissions 4.2 Automation 3.1 (software & telematics) 3.4 2.5 2019 Ownership strategy 3.1
Slide 21: Payments' digitalization
PAYMENTS’ DIGITALIZATION A $25tn US B2B Payment market Still vastly inefficient SHIFTING TO DIGITAL of businesses still pay other 81% firms via paper checks Cost to issue and deposit ~$9tn $26bn checks for US businesses CHECKS Annual losses from $18bn check fraud in the US ~$15tn ACH1 likely to conv
Slide 22: Edenred vision
Edenred vision New market paradigm Edenred platform advantage 22
Slide 23: An efficient business model by design
AN EFFICIENT BUSINESS MODEL BY DESIGN B2B2C & specific purpose An efficient business model B2B2C: bulk user acquisition through companies 52m+ users 2m+ merchants 950k+ corporate B2B2C activation clients Addressing daily essential needs Monthly wallet loading Eat Care Move Pay Specific purpose Netwo
Slide 24: A platform combining local relevance & global scale
A PLATFORM COMBINING LOCAL RELEVANCE & GLOBAL SCALE Digital 1 experiences Local Relevance Business applications 2 Accelerated Time-to-Market Digital services 3 Global Scale Infrastructure 4 24
Slide 25: Offering a seamless user and client experience with plasticless
Digital 1 experiences OFFERING A SEAMLESS USER AND CLIENT EXPERIENCE WITH PLASTICLESS Global plasticless rollout Illustration with Ticket Restaurant in Finland c. x2 Rapid adoption after launching in 2019 Average increase in plasticless active 1 out of 3 new clients choose plasticless users in 202
Slide 26: Edenred, a leader in employee engagement platforms
Business 2 applications EDENRED, A LEADER IN EMPLOYEE ENGAGEMENT PLATFORMS Rolling out employee engagement platforms Live in 12 countries Zoom on France Zoom on Belgium #1 player on the market #1 player on the market c. 7m active users c. 4m eligible users 2,000 partner brands 400 partner brands c.+
Slide 27: Enriching the ecosystem through interconnected third-party digital services
3 Digital services ENRICHING THE ECOSYSTEM THROUGH THE INTEGRATION OF INTERCONNECTED THIRD-PARTY DIGITAL SERVICES Partnering with Chargepoint to foster transition to Green GreenMobility Mobility State-of-the-art road charging offer Be the privileged partner for mixed-fleet management c. 400,00
Slide 28: Investing to further develop best-in-class tech foundations
4 Infrastructure INVESTING TO FURTHER DEVELOP BEST-IN-CLASS TECH FOUNDATIONS Further investing in technology in 2022 Key milestones achieved in 2022 Improved fundamentals 10% Platform • Strong stability improvement • Increased reliability with continued migration to 20% 2022 Core infrastructure te
Slide 29: A platform creating a competitive advantage for Edenred
A PLATFORM CREATING A COMPETITIVE ADVANTAGE FOR EDENRED… Edenred platform advantage = New Beyond services More revenue New client segments ▪ Acquisition (e.g., B2B2C) ▪ Engagement ▪ Monetization Decreased cost to serve 29
Slide 30: ...and increasing barriers to entry
… AND INCREASING BARRIERS TO ENTRY Dealing Investing Managing Managing with: in innovation: a multi-solutions c.€38bn of 950k+ corporate €1.9bn invested and multi-local business volume clients, 52m+ users since 2016 in portfolio: on behalf of and 2m+ partner technology ; 250+ programs employees, mer
Slide 31: To deliver the Edenred vision, we have a plan: 22-25
To deliver the Edenred vision, we have a plan: 22-25 31
Slide 32: Operating on vastly underpenetrated markets
OPERATING ON VASTLY UNDERPENETRATED MARKETS Employee Benefits Fleet & Mobility Corporate Payment Addressable market, business volume Addressable market, business volume Addressable market, business volume c. 35% c. 10% c. 30% €300bn €1,700bn ~€10,000bn c. 70% c. 65% c. 90% SME segment is 3x to 5x le
Slide 33: 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 Payment Core ▪ Design and distribute new services… Grow further in ▪ … in a comprehensive underpenetrated platf
Slide 34: ...cascading across business lines...
…CASCADING ACROSS BUSINESS LINES… Employee Benefits Fleet & Mobility Complementary Solutions Expand Expand in New Businesses, e.g., Expand in New Businesses, e.g., Expand in New Businesses, e.g., Rewards and recognition B2B2C mobility Ticket Xpress Asia expansion US employee benefits & engagement US
Slide 35: ...and extending Edenred total addressable market up to x3
… AND EXTENDING EDENRED TOTAL ADDRESSABLE MARKET UP TO X3 Employee Benefits Fleet & Mobility Corporate Payment TAM: €1,000bn volume TAM: €4,000bn volume TAM: €25,000bn volume +Other (wellbeing, health, +Fleet mobility benefits) management +US ACH2,3 €700bn €2,300bn €15,000bn +On- road +B2E gifting s
Slide 36: Scale the core - examples
SCALE THE CORE - EXAMPLES Employee Benefits Fleet & Mobility Corporate Payment Further increase in take-up rate in Increase penetration of the SME Developing CSI platform ecosystem 2022 segment • Building new verticals (Property • Penetration of SME segment • Leverage go-to-market Management,
Slide 37: Focus on face-value increases in Employee Benefits
Scale the core FOCUS ON FACE-VALUE INCREASES IN EMPLOYEE BENEFITS Actively harnessing the potential for face-value increases Usage of face-value increase is progressive Historical Average 2-year time horizon for face-value usage to 43% observation reach 85% of the new maximum legal face-value of Ede
Slide 38: Extend Beyond - examples
EXTEND BEYOND - EXAMPLES Beyond Fuel: Beyond Food: Edenred Flexível in Portugal scaling maintenance in LatAm Multi-benefits solution for employees’ purchasing power Best-in-class multi-country platform MyEdenred super-app offering full spending flexibility for Optimal user experience, using
Slide 39: Extend Beyond through M&A
EXTEND BEYOND THROUGH M&A Beyond Food Beyond Fuel Beyond Payment Growing Beyond in mobility by partnering with Betterway in France in January 2023 Acceleration in toll with the Expanding Edenred CSI's value acquisition of Greenpass in proposition in the US Beyond Brazil in February 2022 Paymen
Slide 40: Extend Beyond with value-added partnerships
EXTEND BEYOND WITH VALUE-ADDED PARTNERSHIPS Leveraging Edenred’s platform to distribute mobility solutions x September 2022 January 2023 Distribution partnership to support Edenred invests €4m in Betterway to client companies in their transition consolidate strategic vision and to sustainable mobili
Slide 41: As a frontrunner Edenred is also accelerating on ESG
As a frontrunner Edenred is also accelerating on ESG 41
Slide 42: Strengthening a long-standing ESG commitment
STRENGTHENING A LONG-STANDING ESG COMMITMENT EMPLOYER OF CHOICE NET ZERO CARBON BY 2050 TRUSTWORTHY TECH FOR GOOD as Edenred & via Edenred solutions 42
Slide 43: Increased focus and reinforced ambition with KPIs
As Edenred INCREASED FOCUS AND REINFORCED AMBITION WITH 8 KPIS TOPIC KPIs #1. % women among executive positions DIVERSITY #2. % of employees who attended at least EMPLOYABILITY one training course #3. Number of days of volunteering ENGAGEMENT #4. % GHG reduction in intensity on scope 1&2 GHG REDUCTI
Slide 44: Edenred Agri: enhancing agricultural productivity
Via Edenred solutions EDENRED AGRI: ENHANCING AGRICULTURAL PRODUCTIVITY THANKS TO SPECIFIC-PURPOSE MONEY Link to video 44
Slide 45: Agenda
AGENDA 1. 2022 results 2. BEYOND22-25: scaling the Edenred platform 3. FY 2022 detailed financial performance 4. 2023 outlook 45
Slide 46: Marked acceleration in Q4 driving further growth in 2022
Q4 & FY 2022 operating revenue MARKED ACCELERATION IN Q4 DRIVING FURTHER GROWTH IN 2022 Q4 2021 FY 2021 Operating revenue €454m €1,583m LIKE-FOR-LIKE +22.3% +19.2% Scope +0.6% -0.1% Currency +2.8% +3.7% REPORTED +25.8% +22.8% €569m €1,944m Q4 2022 FY 2022 46
Slide 47: Strong performance in Europe with double-digit L/L growth
Q4 & FY 2022 operating revenue – Europe STRONG PERFORMANCE IN EUROPE WITH DOUBLE-DIGIT L/L GROWTH OPERATING REVENUE Q4 comments vs. 2021 France +17.7% €1,189m as reported Acceleration of Ticket Restaurant thanks to: 61% in FY 22 ▪ New iconic key account wins +17.7% L/L ▪ Further penetration of the
Slide 48: Continued strong commercial momentum across Latin America
Q4 & FY 2022 operating revenue – Latin America CONTINUED STRONG COMMERCIAL MOMENTUM ACROSS THE REGION OPERATING REVENUE Q4 comments vs. 2021 +33.6% €603m as reported Brazil 31% in FY 22 Growth acceleration in Employee Benefits solutions with a +18.7% L/L strong contribution from Edenred Food and B
Slide 49: Other revenue almost doubling over a year
Q4 & FY 2022 other revenue OTHER REVENUE ALMOST DOUBLING OVER A YEAR OTHER REVENUE Sustained business momentum positively impacting the float Increases in interest rates in all geographies throughout the year €44m €87m in FY 22 €33m in Q4 2022 vs. €44m in FY 21 2023 to benefit from the full
Slide 50: Total revenue passed the €2 billion mark
Q4 & FY 2022 total revenue TOTAL REVENUE PASSED THE €2 BILLION MARK Q4 2021 FY 2021 Total revenue €465m €1,627m LIKE-FOR-LIKE +26.3% +21.2% Scope +0.8% +0.0% Currency +2.5% +3.6% REPORTED +29.6% +24.8% €603m €2,031m Q4 2022 FY 2022 50
Slide 51: Record EBITDA thanks to operating leverage
From revenue to EBITDA RECORD EBITDA THANKS TO OPERATING LEVERAGE AND OTHER REVENUE CONTRIBUTIONS L/L Reported In € millions FY 2022 FY 2021 change change Operating revenue 1,944 1,583 +19.2% +22.8% Record operating and other revenue growth translates into higher EBITDA Other revenue (A) 87 44 +95
Slide 52: Strong increase in net profit, Group share
FY 2022 net profit STRONG INCREASE IN NET PROFIT, GROUP SHARE Reported FY 2022 FY 2021 change In € millions EBITDA 836 670 +24.9% D&A excluding PPA (107) (95) PPA (42) (37) EBIT 687 538 +27.7% Share of net profit from equity-accounted companies 2 8 Other income and expenses (30) (33) Operating profi
Slide 53: Strong EBITDA to free cash flow conversion rate
EBITDA to FCF STRONG EBITDA TO FREE CASH FLOW CONVERSION RATE THANKS TO RECORD FUNDS FROM OPERATIONS FY 2022 FY 2021 In € millions EBITDA 836 670 Funds from operations (FFO) 673 556 Record FFO generation at €673m, up +21% over a year Increase in cash linked to changes in float +264 +198 Higher f
Slide 54: Leverage ratio down to 0.4x EBITDA
Net debt as of December 31, 2022 HIGH LEVEL OF CASH FLOW DRIVING LEVERAGE RATIO DOWN TO 0.4X EBITDA Currency effects December 31, 2021 December 31, 2022 Free cash flow Acquisitions Shareholder return and other non- Net debt position Net debt position recurring items €(89)m €(307)m 0.4x EBITDA €(240)
Slide 55: Financial position
FINANCIAL POSITION Average debt maturity of 3.9 years Gross debt profile Gross debt 3500 €3.3bn 4.00% 750 €3.1bn 3000 €2.8bn €2.8bn 3.50% 50% 3.00% 62% 2500 600 70% 2.2% 2.50% 37 500 500 500 500 2000 400 69% 2.00% 1500 1.50% 2023 2024 2025 2026 2027 2028 2029 1000 0.8% 0.8% 0.7% 1.00% Schuldschein l
Slide 56: Capital allocation
CAPITAL ALLOCATION Proposed 2022 dividend1 Balanced capital deployment 1 Consistent capex policy to further drive innovation and €1.00 sales +11% vs. 2021 ▪ Capex = 7-8% of total revenue 2 Acquisitive in all 3 business lines in line with the Group’s progressive ▪ €2bn+ in M&A fire power given curren
Slide 57: Agenda
AGENDA 1. 2022 results 2. BEYOND22-25: scaling the Edenred platform 3. FY 2022 detailed financial performance 4. 2023 outlook 57
Slide 58: Ideally positioned to capture growth opportunities in a new market paradigm
IN A NEW MARKET PARADIGM, EDENRED IS IDEALLY POSITIONED TO CAPTURE GROWTH OPPORTUNITIES As the everyday platform for people at work, Edenred is promoting socially, economically and 1 environmentally virtuous solutions, enriching connections for Good. Edenred has a proven ability to identify and conv
Slide 59: Further sustainable and profitable growth in 2023 and beyond
FURTHER SUSTAINABLE AND PROFITABLE GROWTH IN 2023 AND BEYOND Beyond22-25 targets confirmed On a path to €5bn total revenue for 2023 by 2030 5 M&A opportunity Organic > +12% > 70% 2 growth on current scope Like-for-like growth EBITDA to FCF conversion rate1 2022 2030E2 1. At constant regulation and m
Slide 60: Enrich connections. For good.
Enrich connections. FOr QOOd
Slide 61: Appendices
APPENDICES
Slide 62: Operating revenue by region
OPERATING REVENUE BY REGION Q1 Q2 Q3 Q4 FY In € millions 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Europe 270 237 281 238 283 241 355 294 1,189 1,010 France 76 69 74 66 71 65 94 86 315 286 Rest of Europe 194 168 207 172 212 176 261 208 874 724 Latin America 123 97 148 107 161 120 172 128 603
Slide 63: Operating revenue by business line
OPERATING REVENUE BY BUSINESS LINE Q1 Q2 Q3 Q4 FY In € millions 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Employee Benefits 256 223 271 225 275 233 349 279 1,152 961 Fleet & Mobility 117 90 135 100 143 110 144 114 539 414 Complementary Solutions 53 50 59 48 65 50 77 61 253 208 Operating reve
Slide 64: Other revenue
OTHER REVENUE Q1 Q2 Q3 Q4 FY In € millions 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Europe 5 3 6 3 9 3 17 5 37 14 France 2 1 1 1 1 1 3 3 7 6 Rest of Europe 3 2 5 2 8 2 14 2 30 8 Latin America 7 6 10 6 11 6 14 7 42 25 Rest of the world 1 1 2 1 2 1 3 2 8 5 Other revenue 13 10 18 10 23 11 33 1
Slide 65: Total revenue
TOTAL REVENUE Q1 Q2 Q3 Q4 FY In € millions 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Europe 275 240 287 241 292 244 372 299 1,226 1,024 France 78 70 75 67 72 67 97 88 322 292 Rest of Europe 197 170 212 174 220 178 275 210 904 732 Latin America 130 103 158 113 172 126 186 135 645 477 Rest of
Slide 66: EBITDA & EBIT
EBITDA & EBIT In € millions 2022 2021 Reported Like-for-like In € millions 2022 2021 Reported Like-for-like Europe 536 426 +26.1% +26.0% Europe 458 354 +29.5% +29.5% France 117 107 +9.7% +9.7% France 93 85 +9.3% +9.3% Rest of Europe 419 319 +31.6% +31.5% Rest of Europe 365 269 +35.9% +35.9% Latin Am
Slide 67: 2022 free cash flow
2022 FREE CASH FLOW In € millions 2022 2021 Net profit attributable to owners of the parent 386 313 Non-controlling interests 31 30 Dividends received from equity-accounted companies 10 14 Difference between income tax paid and income tax expense 26 16 Non-cash income and expenses 220 183 = Funds fr
Slide 68: Summarized balance sheet
SUMMARIZED BALANCE SHEET In € millions Dec 22 Dec 21 In € millions Dec 22 Dec 21 Goodwill 1,605 1,506 Total equity (613) (869) Intangible assets 738 677 Property, plant & equipment 157 156 Gross debt and other financial Investments in associates 67 67 3,341 3,538 liabilities Non-current derivative i
Slide 69: Average exchange rate
AVERAGE EXCHANGE RATE Average rates 2022 vs. 2022 vs. 2022 vs. €1 = X foreign currency 2022 vs. 2021 2022 vs. 2021 2021 2021 2021 Spot rate as of Spot rate as of Q1 2022 Q1 2021 Q2 2022 Q2 2021 Q3 2022 Q3 2021 Q4 2022 Q4 2021 Change FY 2022 FY 2021 Change Change Change Change 31.12.2022 31.12.2021 (
Slide 70: 2023 expected calendar effects
2023 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2023 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 1 (1) (1) (1) (2) Rest of the world 1 (1) (0) (0) (0) TOTAL 1 (1) (1) (1) (2) 70