Edenred Sa · EURONEXT:EDEN
Edenred Sa — FY2010 Earnings Presentation
23 slides from Edenred Sa's earnings presentation, Feb 24, 2011
Slide 1: 2010 Results - Press presentation
February 24, 2011 2010 Results Press presentation
Slide 2: Creation of a unique "pure player"
Creation of a unique “pure player”...… Inventor of Ticket Restaurant®, global leader in prepaid corporate services Unique Designer of solutions that make employee’s lives easier and improve the efficiency expertise and of organizations positioning The dedicated funds management expert, at the
Slide 3: Win 2010
Win 2010 Invent 2016 Conquer 2012 Successfully becoming an independent company Win Foundations laid for deploying the strategy 2010 Meeting financial targets 2010 Issue volume and FFO like-for-like growth in line with guidance 24 février 2011 3
Slide 4: Win 2010: Successfully becoming an independent company
Invent 2016 Conquer 2012 Win 2010 Win 2010 Successfully becoming an independent company Appointment of a new Board of Directors and definition of the corporate governance system Creation of a new management team Launch of the corporate mission project to deploy the strategy effectively Creation and
Slide 5: Win 2010: Meeting financial targets
Invent 2016 Conquer 2012 Win 2010 Win 2010 Meeting financial targets 1 2010 1 Increase penetration rate in existing markets 2-5% 5.4% 5 Volume 2 Create new products and deploy 2 2-4% 0.6% existing ones 5 growth drivers 3 Extend geographical coverage 1-2% 0.0% 4 3 4 Increase products face value 1-3%
Slide 6: 2010 Issue Volume by Product
Invent 2016 Conquer 2012 2010 Issue Volume by Product Win 2010 Corporate B2B Public B2B Employee Benefits Expense Management Incentive & Rewards Public Social Programs TOTAL Meal and Quality of Food life Issue Volume 10,882 1,210 1,100 538 145 13,875 (in € millions) As a % of IV 78% 9% 8% 4% 1% 100%
Slide 7: 2010 issue volume by region
Invent 2016 Conquer 2012 2010 issue volume by region Win 2010 Growing weight of emerging markets Emerging markets: Developed markets: Strong growth Moderate growth 45% +15%* 55% +4%* As a % of 2010 issue volume * Like-for-like growth February 24, 2011 7
Slide 8: Income statement: key figures
Invent 2016 Conquer 2012 Income statement: key figures Win 2010 Change Change In € millions 2009 2010 (reported) (LFL)(1) Issue volume 12,407 13,875 +11.8% +10.0% Operating revenue 808 885 +9.6% +6.3% Financial revenue 94 80 -14.8% -16.8% Total revenue 902 965 +7.0% +3.9% Operating EBIT(2) 233 248 +
Slide 9: Net profit
Invent 2016 Conquer 2012 Net profit Win 2010 In € millions 2009 2010 EBIT 327 328 Net financial expense (104) (62) Operating profit before tax and non-recurring items 223 266 Non-recurring income and expenses, net (211) (100) Of which demerger costs (3) (44) Of which impairment losses (138) (43) Inc
Slide 10: Sound financial position
Invent 2016 Conquer 2012 Sound financial position Win 2010 In € millions 2009 2010 Total debt 1,566 1,582 Current financial assets (1,263) (1,557) Net debt 303 25 Adjusted FFO/Adjusted net debt (1) 32% 57% Financial profile justifying a strong investment grade(2) rating (1) According to the Standard
Slide 11: Financial strategy
Invent 2016 Conquer 2012 Financial strategy Win 2010 Maintain strong investment grade rating Long-term Financial Policy Achievement 2010 Strong cash flow generation 2010 FFO: €213m Strong cash-generating model 2010 Unlevered Free Cash Flow: €287m Limited development capex Targeted acquisitions polic
Slide 12: Out to conquer 2012
Invent 2016 Conquer Out to conquer 2012 2012 Win 2010 Invent 2016 Cultivate known growth markets Conquer Focus on issue volume growth in our 2012 core business by systematically deploying our expertise Create the conditions for conquering new Win growth markets 2010 Speed up the digital transition A
Slide 13: A strategy of growth: Cultivating known growth markets
A strategy of growth Cultivating known growth markets Activate the four organic growth drivers to deliver normalized annual issue volume growth of 6%-14% like-for-like, in line with guidance 2011 Outlook Continued strong momentum in Latin America, with high basis of comparison Increase penetration
Slide 14: New product launches
Invent 2016 Conquer 2012 Leveraging our expertise to innovate in known growth markets Win 2010 New product launches Corporate BtoB Public BtoB Expense Public Social Employee Benefits Management Incentive & Rewards Programs Launch of innovative Launch of “green” gift card corporate card in Italy in t
Slide 15: Launch of Ticket Restaurante in Mexico
Invent 2016 Conquer 2012 Launch of Ticket Restaurante® in Mexico Win 2010 Attractive socio-economic fundamentals Population of 109 million Active population of 47 million, nearly 50% in urban areas Favorable regulatory environment Strong government commitment to promoting the food access for a
Slide 16: Edenred enables government aid program in India
Invent 2016 Conquer 2012 Edenred enables government aid program in India Win 2010 Purpose of the program To distribute public aid to underprivileged families in Madhya Pradesh State How it works Edenred: the distribution system “processor”, responsible for printing, distributing and authorizing fo
Slide 17: Targeted acquisitions to generate more volume
Invent 2016 Targeted acquisitions Conquer 2012 to generate more volume in our known growth markets Win 2010 (1) No. 4 in Romania, with nearly 5% market No. 7 in Italy, with roughly 3% market share share 2009 issue volume: €53m Estimated 2010 issue volume: €70m Purchase price: €5.5m Enter
Slide 18: Out to conquer 2012
Invent 2016 Conquer Out to conquer 2012 2012 Win 2010 Invent 2016 Cultivate known growth markets Conquer Focus on issue volume growth in our core 2012 business by systematically deploying our expertise Create the conditions for conquering new growth markets Win Speed up the digital transition 2010 A
Slide 19: Target of 50% of digital issue volume by 2012
Invent 2016 Conquer 2012 Create the conditions for conquering new growth markets Win 2010 Target of 50% of digital issue volume by 2012 2011-2012 Post-transition Acceleration of the shift to paperless solutions Long-term benefits Target date moved forward to 2012 (from 2016 previously) New revenue s
Slide 20: Digital transition: long-term effects
Invent 2016 Conquer 2012 Digital transition: long-term effects Win 2010 Long-term effects Example: Ticket Alimentação in Brazil Merchant and client fees 1999 2010 Stable operating revenue/issue volume New revenue sources % digital IV 0% 100% ratio Operating revenue/IV 4.8% 4.8% Expired/lost products
Slide 21: Conclusion
Conclusion
Slide 22: A strategy to drive growth in issue volume
A strategy to drive growth in issue volume Invent 3 Invent 2016 2016 Develop new growth drivers Conquer 2012 Cultivate known growth markets Focus on issue volume growth in our core business by systematically deploying our 2 expertise Conquer Create the conditions for conquering new 2012 growth
Slide 23: Mobilizing teams around a federating project
Mobilizing teams around a federating project Deployment of the issue volume growth strategy Board of Directors Executive Committee 40 countries 6,000Pays employees Entrepreneurial Performance Innovation Sharing Simplicity spirit A network organized to effectively implement the strategy February 24,