Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — Investor Day (September 2015)
79 slides from Elior Group Sa's investor day presentation, Sep 24, 2015
Slide 1: Strategic Review 2016-2020: Elior Group 2020
Strategic Review 2016-2020 ELIOR GROUP 2020 Develop, Innovate, Accelerate September 24, 2015
Slide 2: Executive Summary: 2020 Strategy
EXECUTIVE SUMMARY 2020 STRATEGY: Develop, Innovate, Accelerate 1 2 3 ELIOR ELIOR ELIOR A successful growth story Presence on two large and Benefits from significant growth • Track record of organic structurally growing markets opportunities on each market development and acquisitions • Contract cate
Slide 3: Executive Summary: What, Where, How
EXECUTIVE SUMMARY 2020 STRATEGY: Develop, Innovate, Accelerate The 2020 strategy answers three critical questions for the upcoming development of the Group: WHAT? WHERE? HOW? Food will remain our core business, in In countries in which we believe we can reach top With a stronger focus on the contrac
Slide 4: Executive Summary: Tsubaki plan and 2020 objectives
EXECUTIVE SUMMARY 2020 STRATEGY: Develop, Innovate, Accelerate To implement this strategy we have designed a new organization, formed a skilled and This roadmap results in financial objectives experienced team and elaborated an 8-project transformation plan (Tsubaki) focusing on: for 2020: Sales €7-
Slide 5: Our Vision: the Consumers' Turn
Our Vision: the Consumers’ Turn 09/24/2015 5 Elior Group
Slide 6: To be the caterer of choice
TO BE THE CATERER OF CHOICE, DRIVEN BY QUALITY AND INNOVATIVE CONSUMER EXPERIENCE 09/24/2015 6 Elior Group
Slide 7: Today's Agenda
TODAY’S AGENDA 1 2 3 A SUCCESSFUL THE CONTRACT THE CONCESSION GROWTH STORY CATERING MARKET CATERING MARKET 4 5 6 STRATEGY 2020 AMBITIONS CONCLUSION 09/24/2015 7 Elior Group
Slide 8: A Successful Growth Story
1 A SUCCESSFUL GROWTH STORY PHILIPPE SALLE Group Chairman and CEO 09/24/2015 8 Elior Group
Slide 9: One Core Business: Food Catering
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A One Core Business: Food Catering 09/24/2015 9 Elior Group
Slide 10: 106,000 employees, 3.8m customers, 18,000 restaurants
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A Every day, our 106,000 employees* take genuine care of each of our 3.8m customers through 18,000 restaurants and points of sale in 13 countries *In 2014
Slide 11: A Leader in Europe and a Growing Challenger in the USA
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A ELIOR GROUP, A LEADER IN EUROPE AND A GROWING CHALLENGER IN THE USA 2014 2013 2012 2011 2010 2009 2008 2007 2006 5 6 6 2 1 1 1 6 5 4 3 1 3 2 1 POSITION I
Slide 12: Evolution of Business Profile
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A EVOLUTION OF BUSINESS PROFILE A CONSISTENTLY DIVERSIFIED 2014 2013 2012 2011 AN INCREASINGLY BALANCED PORTFOLIO PORTFOLIO 7% Railways, City sites 5% 4% &
Slide 13: A Sustained Growth Pattern
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A SUSTAINED GROWTH PATTERN REVENUE (€m) 5,341 4,464 5,017 3,769 4,158 2010-2014 CAGR +9.1% FY 2010A FY 2011A FY 2012A FY 2013A FY 2014A GROWTH RATE 10.3%
Slide 14: Key Pillars of Success
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A KEY PILLARS OF SUCCESS Focus on Acquisitions via Experienced Decentralized 2 activities: selected partnerships and organization • Contract markets entrep
Slide 15: The Contract Catering Market
2 THE CONTRACT CATERING MARKET PHILIPPE SALLE Group Chairman and CEO 09/24/2015 15 Elior Group
Slide 16: A Large Outsourced Market €150bn
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A LARGE OUTSOURCED MARKET €150bn TOTAL OUTSOURCED ~ €13bn ~ €7bn REST OF EUROPE ~ €47bn ~ €34bn ASIA ~ €13bn ~ €36bn €Xbn REST OF THE WORLD OUTSOURCED MA
Slide 17: An Even Wider Total Contract Catering Market €430bn
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A AN EVEN WIDER TOTAL €430bn CONTRACT CATERING MARKET TOTAL ADDRESSABLE €bn, 2014 120 96 60 280 48 17 14 12 7 12 7 9 150 7 5 4 8 4 34 29 12 7 7 4 3 3 3 3 2
Slide 18: A Structurally Growing Market +6% p.a.
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A STRUCTURALLY +6% p.a. GROWING MARKET TOTAL GROWTH €bn ~ 190 150.0 0.3 0.2 0.2 0.1 9.5 141.4 2.2 2.0 1.5 1.2 0.8 0.7 0.4 4.2 2.4 2.3 114.0 9.0 Top 15 co
Slide 19: Contract Catering Is a Resilient Market
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A CONTRACT CATERING IS A RESILIENT MARKET France Italy Spain UK Nominal GDP (i.e. including inflation) Total catering market (outsourced + in-house) Source
Slide 20: Market Characteristics
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A MARKET CHARACTERISTICS Structural Local spending, Low level of Limited New trends: growth with low level bundling barriers snacking, local globally, of i
Slide 21: Key Success Factors in Contract Catering
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A KEY SUCCESS FACTORS IN THE CONTRACT CATERING BUSINESS B TO C B TO B CONSUMER OPERATIONS COMMERCIAL VALUE PROPOSITION EFFECTIVENESS RELATIONSHIP • Differe
Slide 22: Continental Europe: Leader on Mature Markets
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A CONTINENTAL EUROPE: LEADER ON MATURE MARKETS Expected growth Outsourced market size Outsourcing rate (p.a. 2014-2018) Elior position FRANCE €7bn 41% +2-
Slide 23: USA & UK: Major Challenger on High Potential Markets
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A USA & UK: MAJOR CHALLENGER ON HIGH POTENTIAL MARKETS Expected growth Market size Outsourcing rate (p.a. 2014-2018) Elior position UK €7bn* 54% >3% 5 USA
Slide 24: Elior Sources of Competitiveness
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A ELIOR SOURCES OF COMPETITIVENESS Critical Proximity with Innovation Production size clients New concepts tool Purchasing scale Differentiation and market
Slide 25: Conclusion
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A CONCLUSION • A VERY LARGE MARKET • STRUCTURALLY GROWING AND RESILIENT • COMPETITIVENESS THROUGH NATIONAL LEADERSHIP • SIGNIFICANT OPPORTUNITIES 09/24/201
Slide 26: The Concession Catering Market
3 THE CONCESSION CATERING MARKET PEDRO FONTANA CEO of Concession Catering Worldwide 09/24/2015 26 Elior Group
Slide 27: A Worthy Market €23-26bn
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A WORTHY MARKET €23-26bn TOTAL €4bn €3bn €16-19bn REST OF THE WORLD €Xbn MARKET SIZE 09/24/2015 27 Elior Group
Slide 28: A Growing Market Mainly in Airports +4% p.a.
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A GROWING MARKET MAINLY +4% p.a. IN AIRPORTS TOTAL GROWTH 2014-2018 +5-6% p.a. +1-2% p.a. +2% p.a. 09/24/2015 28 Elior Group
Slide 29: Market Characteristics
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A MARKET CHARACTERISTICS MOTORWAYS RAILWAYS AIRPORTS Segment growth Segment growth Segment growth R²=88% CAGR %, 2008-14 R²=83% CAGR %, 2008-14 R²=78% CAGR
Slide 30: Market Characteristics: Railways, Motorways, Airports
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A MARKET CHARACTERISTICS RAILWAYS MOTORWAYS AIRPORTS Market Resilient Cyclical Cyclical features Local Local Global Consumer trends Willingness to buy — De
Slide 31: Key Success Factors in Concession Catering Segments
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A KEY SUCCESS FACTORS IN THE CONCESSION CATERING SEGMENTS RAILWAYS MOTORWAYS AIRPORTS • Portfolio of attractive external brands and innovative internal con
Slide 32: Continental Europe: Leader in France, Italy and Spain
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A CONTINENTAL EUROPE: LEADER IN FRANCE, ITALY AND SPAIN Expected growth Market size Per segment (p.a. 2014-2018) Elior Group position FRANCE 40% MOTORWAYS
Slide 33: USA: Challenger with Significant Opportunities
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A USA: CHALLENGER WITH SIGNIFICANT OPPORTUNITIES Expected growth Market size (p.a. 2014-2018) Elior Group position AIRPORTS 6 €3.6bn +6% MOTORWAYS 2 €0.6bn
Slide 34: Elior Group Sources of Competitiveness
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A ELIOR GROUP SOURCES OF COMPETITIVENESS Brands & concepts Strong local rooting Operational excellence portfolio Leadership positions allowing to Leverage
Slide 35: A Solid Brands Portfolio
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A SOLID BRANDS PORTFOLIO Own brands Franchised brands FAST FOOD COFFEE SHOP CASUAL DINING PREMIUM & FINE DINING FAST CASUAL RETAIL divers 09/24/2015 35 E
Slide 36: A Fully Integrated Network to Capture Global Opportunities
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A FULLY INTEGRATED NETWORK TO CAPTURE GLOBAL OPPORTUNITIES 2015: A global and • Capitalizing on expertise Elior Group integrated on each market segment i
Slide 37: Conclusion
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A CONCLUSION • A WORTHY MARKET • TWO DIFFERENT DYNAMICS • A SOLID BRANDS PORTFOLIO • SIGNIFICANT OPPORTUNITIES IN AIRPORTS 09/24/2015 37 Elior Group
Slide 38: Strategy
4 STRATEGY PHILIPPE SALLE Group Chairman and CEO 09/24/2015 38 Elior Group
Slide 39: Elior Group 2020: What, Where, How?
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A ELIOR GROUP 2020: WHAT, WHERE, HOW? SCOPE EXPERIENCE REACH 09/24/2015 39 Elior Group
Slide 40: Scope: What?
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A SCOPE: WHAT? Focus Contract and Selective approach on food concession catering on other BtoB services 09/24/2015 40 Elior Group
Slide 41: Reach: Where?
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A REACH: WHERE? UNDERLYING STRATEGY CONTRACT CATERING CONCESSION CATERING Focus • Consolidate Continental • Consolidate Continental Europe Europe Scale See
Slide 42: Experience: How? Consumer habits changing fast
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A EXPERIENCE: HOW? CONSUMER HABITS ARE CHANGING FAST... Increasingly Hyper information Mobility Digital natives service-based economy 09/24/2015 42 Elior G
Slide 43: Experience: How? Opportunities to stand out
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A EXPERIENCE: HOW? ... OFFERING A WIDE SCOPE OF OPPORTUNITIES TO STAND OUT Food and nutrition Place entertainment Digital experience 09/24/2015 43 Elior Gr
Slide 44: An Efficient Organization to Implement the Strategy
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A AN EFFICIENT ORGANIZATION TO IMPLEMENT THE STRATEGY ELIOR GROUP CHAIRMAN AND CEO CONTRACT CATERING SERVICES CONCESSION CATERING France France Airports (I
Slide 45: Tsubaki: 8 Projects
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A TSUBAKI: 8 PROJECTS GROWTH FOCUS 1 2 SALES MARKETING EFFECTIVENESS & (BtoB) PRICING 8 (BtoC) 3 OPERATIONAL DIGITAL EXCELLENCE EXPERIENCE QUALITY FOCUS 7
Slide 46: Tsubaki Growth: Client Offering
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A TSUBAKI GROWTH: CLIENT OFFERING 1 Retention Maintain leadership positions SALES and develop new territories EFFECTIVENESS (BtoB) Development (new CRM) Of
Slide 47: Tsubaki Cost: Cost-Base Management
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A TSUBAKI COST: COST-BASE MANAGEMENT Organization and processes 4 Improve efficiency Review of spending (volume and price) PURCHASING New business models 5
Slide 48: Tsubaki Quality
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A TSUBAKI QUALITY Corporate culture 7 Attract, motivate and Group organization HUMAN RESOURCES retain performing employees Incentives review 8 Quality of s
Slide 49: A New Group Brand Identity
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A NEW GROUP BRAND IDENTITY A corporate visual identity and baseline to match the Group strategy, driven by quality and innovative customer experience. Ti
Slide 50: Strategy in the USA Contract Catering Market
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A STRATEGY IN THE USA CONTRACT CATERING MARKET BRIAN POPLIN CEO of Trust House Services 09/24/2015 50 Elior Group
Slide 51: Elior Group Will Accelerate in the USA
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A ELIOR GROUP WILL ACCELERATE IN THE USA OUR MISSION IN THE USA BE A TRUE IDEA SHAKER ON THIS KEY MARKET 09/24/2015 51 Elior Group
Slide 52: USA: A Story of Growth in a Large Market
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A USA: A STORY OF GROWTH IN A LARGE MARKET Total outsourced Market size (€bn) Expected growth Profitability market size: (2014-2018) €34bn B&I1 13 1-3% C
Slide 53: Successful Track Record of Acquisitions in the USA
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A SUCCESSFUL TRACK RECORD OF ACQUISITIONS IN THE USA 2013 2008 2011 2015 PF 2014 sales: CREATION +€90m +€255m INTEGRATION +€36m €360m Founded by Michael WI
Slide 54: A Niche Player on Promising Segments
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A A NICHE PLAYER €3.0bn ON PROMISING SEGMENTS MARKET Segment Niches Outsourced market €bn - 2014 Outs. Rate Elior Senior nutrition All estimated 1 26% m
Slide 55: Case Study: Starr Acquisition
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A CASE STUDY: STARR ACQUISITION Penetration of Through the Providing a Capitalising on the attractive acquisition of a combination of experienced teams hig
Slide 56: 2020 Ambitions
5 2020 AMBITIONS PHILIPPE SALLE OLIVIER DUBOIS Group Chairman and CEO Group CFO 09/24/2015 56 Elior Group
Slide 57: 2020 Ambitions: Sales €7-8bn
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 AMBITIONS SALES €7-8bn • Organic growth >3% on average p.a. (low inflation case scenario) • M&A up to €1bn cash investment over 5 years 09/24/2015 5
Slide 58: 2020 Ambitions: Revenues
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 AMBITIONS REVENUES €bn 0.7-1.4 7.0-8.0 1.0-1.2 5.6 (0.2-0.3) 2015E Divestments and Organic growth Acquisitions 2020F revenues contracts termination
Slide 59: 2020 Ambitions: EBITDA Margin 9-10%
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 AMBITIONS EBITDA MARGIN 9-10% 09/24/2015 59 Elior Group
Slide 60: EBITDA Margin
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 AMBITIONS EBITDA MARGIN In bps 20-60 ~(20) 900-1000 40-80 20-40 840 2015E EBITDA Divestments and Purchasing G&A Acquisitions 2020F EBITDA MARGIN con
Slide 61: Free Cash Flow/EBITDA 45-50%
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 MAIN AMBITIONS FREE CASH FLOW*/EBITDA 45-50% * FCF: EBITDA +/- CHANGE IN WORKING CAPITAL– CAPEX - NON-RECURRING – TAX 09/24/2015 61 Elior Group
Slide 62: Ongoing Priorities for Use of Cash
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 AMBITIONS ONGOING PRIORITIES FOR USE OF CASH M&A LEVERAGE SHAREHOLDERS RETURN Minimum payout: Required returns > 2 x WACC* Target net debt/EBITDA: 2
Slide 63: 2020 KPIs
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs OPERATIONS CUSTOMER QUALITY FINANCE HUMAN RESOURCES 09/24/2015 63 Elior Group
Slide 64: 2020 KPIs
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs OPERATIONS OPERATIONS CUSTOMER QUALITY FINANCE HUMAN RESOURCES 09/24/2015 64 Elior Group
Slide 65: Customer Quality: Net Promoter Score
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs CUSTOMER QUALITY NET PROMOTER SCORE 09/24/2015 65 Elior Group
Slide 66: 2020 KPIs
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs OPERATIONS OPERATIONS CUSTOMER QUALITY FINANCE HUMAN RESOURCES 09/24/2015 66 Elior Group
Slide 67: Human Resources KPIs
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs HUMAN RESOURCES SENSE OF BELONGING COMP & BEN STAFF TURNOVER 09/24/2015 67 Elior Group
Slide 68: 2020 KPIs
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs OPERATIONS OPERATIONS CUSTOMER QUALITY FINANCE HUMAN RESOURCES 09/24/2015 68 Elior Group
Slide 69: Finance KPIs
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs FINANCE EBITDA - CAPEX - NON-RECURRING CASH +/- WORKING CAPITAL - TAX CASH FCF - INTEREST CASH NET CASH 09/24/2015 69 Elior Group
Slide 70: Finance: Capex
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs FINANCE EBITDA - CAPEX ~5% of revenues Concession Catering - NON-RECURRING CASH (except 2016 and 2017) +/- WORKING CAPITAL ~2% of revenues - TA
Slide 71: Finance: Non-Recurring Cash
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs FINANCE EBITDA - CAPEX - NON-RECURRING CASH €60m over 2016/2017 +/- WORKING CAPITAL Restructuring costs - TAX CASH Non-core business exit costs
Slide 72: Finance: Working Capital
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs FINANCE EBITDA - CAPEX - NON-RECURRING CASH Reduce DSO +/- WORKING CAPITAL • Invoicing acceleration - TAX CASH • Faster cash collection FCF Off
Slide 73: Finance: Tax Cash and Purchasing
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs FINANCE EBITDA - CAPEX - NON-RECURRING CASH +/- WORKING CAPITAL - TAX CASH Optimization ongoing in France Special focus on Spain and USA furthe
Slide 74: Finance: Debt Refinancing
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs FINANCE EBITDA - CAPEX - NON-RECURRING CASH +/- WORKING CAPITAL Debt refinancing - TAX CASH Renegociation of securitization conditions Swap agr
Slide 75: 2020 KPIs
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A 2020 KPIs OPERATIONS OPERATIONS CUSTOMER QUALITY FINANCE HUMAN RESOURCES 09/24/2015 75 Elior Group
Slide 76: Conclusion
6 CONCLUSION PHILIPPE SALLE Group Chairman and CEO 09/24/2015 76 Elior Group
Slide 77: Key Takeaways
1. A SUCCESSFUL GROWTH STORY 2. THE CONTRACT CATERING MARKET 3. THE CONCESSION CATERING MARKET 4. STRATEGY 5. 2020 AMBITIONS 6. CONCLUSION AND Q&A KEY TAKEAWAYS DEVELOP INNOVATE ACCELERATE Focus on current scope Differentiation through Tsubaki plan Specific approach by innovative offering Organizati
Slide 78: To be the caterer of choice
TO BE THE CATERER OF CHOICE, DRIVEN BY QUALITY AND INNOVATIVE CONSUMER EXPERIENCE 09/24/2015 78 Elior Group
Slide 79: Elior Group 2020
Strategic Review 2016-2020 ELIOR GROUP 2020 Develop, Innovate, Accelerate