Edenred Sa · EURONEXT:EDEN
Edenred Sa — H1 2015 Earnings Presentation
34 slides from Edenred Sa's earnings presentation, Jul 24, 2015
Slide 1: H1 2015 Results
CONFIDENTIEL Version 10.07.2015 11h00 H1 2015 Results July 24, 2015
Slide 2: H1 Key Figures & Highlights
1 H1 Key Figures & Highlights
Slide 3: H1 2015 Key Figures
H1 2015 KEY FIGURES Solid profit growth, like-for-like and as reported In € millions H1 2015 L/L growth Issue volume 9,110 +9.6% L/L flow-through ratio 57% N/A EBIT 165 +14.6% Funds from operations 148 +14.9% Recurring EPS growth of +10.7% reported 3
Slide 4: H1 2015 Key Achievements
H1 2015 KEY ACHIEVEMENTS Achievements in both pillars of growth and in the shift to digital EMPLOYEE EXPENSE SHIFT TO DIGITAL BENEFITS MANAGEMENT ▌ Stake increase in ProwebCE in ▌ Closing of the UTA acquisition ▌ On track to reach >75% of digital France from 10% to 62% in Germany issue volume by 201
Slide 5: Focus on ProwebCE Investment in France
FOCUS ON PROWEBCE INVESTMENT(1) IN FRANCE An alliance enabling the Group to expand its employee benefits offering A market with strong ProwebCE, leader on the An accretive financial potential in France works council market transaction 38,000 ▌ Strong top-line synergies with works councils(2) ▌ A com
Slide 6: Closing of the UTA Acquisition in Germany
CLOSING OF THE UTA ACQUISITION IN GERMANY A strategic asset for Edenred H1 Achievements Next Steps 2015-2017 2017-2019 ▌ Finalization of the acquisition of a 34% interest in UTA(1) Acceleration of change Option to A leading issuer in the European fuel management and increase Edenred card market fo
Slide 7: Edenred/Daimler Partnership in Brazil
EDENRED/DAIMLER PARTNERSHIP IN BRAZIL Launch of a co-branded MercedesServiceCard/Ticket Car® solution ▌ Card issuer, acquirer and ▌ A promising partnership with a forefront player in the processor, offering all Ticket heavy transportation market in Brazil Car® functionalities ~450,000 trucks curre
Slide 8: Focus on the Shift to Digital in France
FOCUS ON THE SHIFT TO DIGITAL IN FRANCE Leader on the digital meal card market H1 Achievements Innovation ▌ More than 110k beneficiaries at the ▌ Pilot program for Ticket end of H1 2015 Restaurant® on mobile devices, in Around 40% of new beneficiaries partnership with Orange and come from new clie
Slide 9: H1 2015 Results
2 H1 2015 RESULTS
Slide 10: H1 2015 Issue Volume: €9,110M
H1 2015 ISSUE VOLUME: €9,110M Up +9.6% L/L, with a high basis of comparison Like-for-like 13.7% +9.6% 11.0% 12.3% High basis of comparison in H1 €801m 10.0% 9.3% 9.6% 2015 due to a strong contribution from Portugal (~200 bp) Lower contribution from the Scope(1) increase in face value in H1 +0.8%
Slide 11: H1 2015 Latin America Issue Volume: €4,558M
H1 2015 LATIN AMERICA ISSUE VOLUME: €4,558M Up +15.2% L/L, thanks to a strong sales performance L/L growth Q1 Q2 H1 Brazil +12.8% +11.1% +11.9% Hispanic Latin America +25.5% +17.6% +21.3% Total Latin America +17.3% +13.4% +15.2% Brazil: Hispanic Latin America: Strong growth in a challenging econom
Slide 12: H1 2015 Europe Issue Volume: €4,172M
H1 2015 EUROPE ISSUE VOLUME: €4,172M Up +3.5% L/L, with improving trends in Q2 L/L growth Q1 Q2 H1 France +3.1% +4.5% +3.8% Rest of Europe +2.4% +4.2% +3.3% Total Europe +2.7% +4.3% +3.5% France: Rest of Europe: Continued growth for Ticket Restaurant® (up +4.4% L/L) Italy: growth in the private
Slide 13: Contribution of Growth Drivers to H1 Issue Volume
CONTRIBUTION OF GROWTH DRIVERS TO H1 ISSUE VOLUME In line with annual medium-term target H1 2015 organic issue Medium-term targets volume growth (1) New geographies +0.2% +0%-1% New solutions +2.3% +2%-4% Face value +2.5% +3%-4% New clients +4.6% +3%-5% Total +9.6% +8%-14% (1) Including the contribu
Slide 14: H1 2015 Total Revenue: €539M
H1 2015 TOTAL REVENUE: €539M Up +7.8% L/L, reflecting strong issue volume trends Like-for-like +7.8% L/L growth Q1 Q2 H1 €38m Operating revenue with IV(2) +9.0% +9.2% +9.1% Scope(1) +4.2% Operating revenue w/o IV(3) +4.0% +3.7% +3.8% €21m Financial revenue +2.7% -2.7% 0.0% Currency(1) Total revenue
Slide 15: H1 2015 Revenue Detail
H1 2015 REVENUE DETAIL Operating revenue with IV: €428m Financial revenue: L/L growth €36m by region Q1 Q2 H1 Q1 Q2 H1 L/L growth L/L growth Latin America +14.8% +14.5% +14.6% Latin America +19.2% +8.3% +13.7% Europe +3.2% +3.3% +3.3% Europe -12.4% -14.3% -13.3% Rest of the world +13.2% +11.8% +12.5
Slide 16: H1 2015 EBIT: €165M
H1 2015 EBIT: €165M Double digit EBIT growth in both like-for-like and reported figures Change Change In € millions June 2014 June 2015 reported L/L Total revenue 486 539 +10.8% +7.8% Operating EBIT 112 129 +15.8% +19.5% Financial EBIT 36 36 -1.5% 0.0% Total EBIT 148 165 +11.5% +14.6% Operating EBIT
Slide 17: Flow-Through Ratio
FLOW-THROUGH RATIO Operating flow-through ratio of 57%, in line with objective of >50% Operating revenue Financial revenue Changes Currency effect(2) L/L∆: €38m L/L∆: €0m in scope(1) H1 2015 EBIT H1 2014 EBIT (reported) (reported) €1m €165m €148m €22m €0m €(6)m of which Flow-through €(4)m from BRL r
Slide 18: Operating EBIT Margin
OPERATING EBIT MARGIN(1) Year-on-year margin improvement in H1 Operating flow-through Currency effect and ratio(2) of 57% changes in scope Operating EBIT/ Operating EBIT/ operating revenue operating revenue (reported) -1.7pts (reported) +2.5pts 25.6% 24.8% H1 2014 H1 2015 (1) As a percentage of oper
Slide 19: H1 2015 Net Profit
H1 2015 NET PROFIT Recurring earnings per share of €0.40,up +11% In € millions June 2014 June 2015 EBIT 148 165 Net financial expense (27) (21) Equity accounted entities - 4 Operating profit before tax and non-recurring items 121 148 Non-recurring income and expenses, net (7) (8) Income tax expense
Slide 20: Cash Flows
CASH FLOWS L/L growth in Funds From Operations of +14.9% In € millions June 2014 June 2015 Funds From Operations 109 148 (Increase)/decrease in float(1) (123) (182) (Increase)/decrease in restricted cash (14) 2 (Increase)/decrease in working capital (excl. float) (21) (42) Recurring capex (19) (22)
Slide 21: Net Debt Bridge
NET DEBT BRIDGE End of period position Strong generation of Free Cash Flow Change Net debt position Currency effects(2) and H1 2014 (before currency H1 2015 Net debt effects other Net debt position Free Cash External Shareholders’ and other non- non-recurring position (reported) Flow acquisitions(1)
Slide 22: Conclusion
3 Conclusion
Slide 23: Focus on Currencies
FOCUS ON CURRENCIES A 5% depreciation of the BRL in H1 & tougher comps in H2 Average Implied Average rate Closing rate Average rate rate rate(1) June 30, H1 2014 H1 2015 Q3 2014 Q4 2014 FY 2014 FY 2015 2015 BRL/€ Brazilian real 3.15 3.31 3.47 3.01 3.18 3.12 3.39 -5% -13% -8% -8% Expected currency im
Slide 24: 2015 Outlook and Guidance
2015 OUTLOOK AND GUIDANCE FY 2015 EBIT target: €365m to €380m Issue volume trend similar to Q2 2015, with : Growth in Latin America impacted by a more challenging economic context in Brazil and Organic tougher comps in Mexico(1) top-line Business expansion gaining momentum in Europe trends in
Slide 25: Appendices
4 Appendices
Slide 26: Issue Volume
ISSUE VOLUME Q1 Q2 H1 In € millions 2014 2015 2014 2015 2014 2015 France 713 735 662 696 1,375 1,431 Rest of Europe 1,302 1,346 1,318 1,395 2,620 2,741 Latin America 1,902 2,284 2,122 2,274 4,024 4,558 Rest of the world 145 188 156 192 301 380 Issue volume 4,062 4,553 4,258 4,557 8,320 9,110 Q1 Q2 H
Slide 27: Operating Revenue with Issue Volume
OPERATING REVENUE WITH ISSUE VOLUME Q1 Q2 H1 In € millions 2014 2015 2014 2015 2014 2015 France 30 31 28 30 58 61 Rest of Europe 66 68 67 71 133 139 Latin America 91 104 100 105 191 209 Rest of the world 7 10 8 9 15 19 Operating revenue with IV 194 213 203 215 397 428 Q1 Q2 H1 Change Change Change C
Slide 28: Operating Revenue without Issue Volume
OPERATING REVENUE WITHOUT ISSUE VOLUME Q1 Q2 H1 In € millions 2014 2015 2014 2015 2014 2015 France 5 6 6 20 11 26 Rest of Europe 11 11 9 8 20 19 Latin America 5 6 7 7 12 13 Rest of the world 5 8 5 9 10 17 Operating revenue without IV 26 31 27 44 53 75 Q1 Q2 H1 Change Change Change Change Change Chan
Slide 29: Financial Revenue
FINANCIAL REVENUE Q1 Q2 H1 In € millions 2014 2015 2014 2015 2014 2015 France 5 4 4 3 9 7 Rest of Europe 4 4 5 5 9 9 Latin America 8 10 8 8 16 18 Rest of the world 1 1 1 1 2 2 Financial revenue 18 19 18 17 36 36 Q1 Q2 H1 Change Change Change Change Change Change In % reported L/L reported L/L report
Slide 30: Total Revenue
TOTAL REVENUE Q1 Q2 H1 In € millions 2014 2015 2014 2015 2014 2015 France 40 41 38 53 78 94 Rest of Europe 81 83 81 84 162 167 Latin America 104 120 115 120 219 240 Rest of the world 13 19 14 19 27 38 Total revenue 238 263 248 276 486 539 Q1 Q2 H1 Change Change Change Change Change Change In % repor
Slide 31: Operating EBIT & Total EBIT
OPERATING EBIT & TOTAL EBIT Change Change In € millions H1 2014 H1 2015 reported L/L France 8 11 41.3% -0.8% Rest of Europe 37 37 1.9% 4.1% Latin America 77 87 14.2% 21.3% Rest of the world 1 3 n/a n/a Worldwide structures (11) (9) -16.2% -26.7% Operating EBIT 112 129 15.8% 19.5% Change Change In €
Slide 32: Exchange Rates
EXCHANGE RATES Average exchange rates for 2014 and 2015 2015 vs, 2015 vs, 2015 vs, 2014 2014 2014 €1 = X foreign currency Q1 2014 Q1 2015 Q2 2014 Q2 2015 H1 2014 H1 2015 Change Change Change (in % ) (in % ) (in % ) Bolivar Fuerte (VEF) 68.50 134.41 -49.0% 68.25 218.57 -68.8% 68.37 176.48 -61.3% Braz
Slide 33: Scope Effects
SCOPE EFFECTS Acquisitions Consolidation date Acquisitions Bonus, Brazil Consolidation January 2014date Bonus, Nets Brazil Finland Prepaid, January 2014 Nets C3 Prepaid, CARD, Finland United Arab Emirates January 2014 July 2014 C3 CARD, Asia Cardtrend, United Arab Emirates July 2014 August 2014 Card
Slide 34: 2015 Expected Calendar Effects
2015 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2015 Nb of Nb of Nb of Nb of Nb of Working days % change % change % change % change % change days days days days days Europe 0 0.0% 0 0.4% 0 0.6% 1 1.0% 1 0.5% Latin America 1 1.4% 0 0.5% -1 -0.9% 0 -0.5% 0 0.1% Rest of the world 0 0.4% 0 -0.1% -1 -2.3% 2 2