Edenred Sa · EURONEXT:EDEN
Edenred Sa — Investor Presentation (November 2022)
59 slides from Edenred Sa's investor presentation, Nov 22, 2022
Slide 1: Presentation for investors November 2022
Presentation for investors November 2022
Slide 2: Content
CONTENT A unique and virtuous intermediation platform 2016-2022: a journey of disruption for Edenred BEYOND22-25, a plan to scale the Edenred platform As a frontrunner, Edenred is accelerating on ESG A strong financial profile 2
Slide 3: Edenred is a unique and virtuous intermediation platform
Edenred is a unique and virtuous intermediation platform
Slide 4: A B2B2C platform intermediating 52M users and 2M merchants through 950K companies
A B2B2C PLATFORM INTERMEDIATING 52M USERS AND 2M MERCHANTS THROUGH 950K COMPANIES 52m €35bn1 Business volume Users 2m Merchants 950k Companies 1. 2022 estimates 4
Slide 5: Driving positive impacts on essential needs, for all stakeholders
DRIVING POSITIVE IMPACTS ON ESSENTIAL NEEDS, FOR ALL STAKEHOLDERS For employees For corporate clients ▪ Purchasing power and well-being ▪ Employee engagement and payroll efficiency ▪ Simplified mobility experience ▪ Fleet total costs of ownership efficiency ▪ Smoother corporate expense experience EN
Slide 6: A comprehensive portfolio of 250+ programs across 45 countries
A COMPREHENSIVE PORTFOLIO OF 250+ PROGRAMS ACROSS 45 COUNTRIES Employee Benefits 58%1 Fleet & Mobility 29%1 Complementary Solutions 13%1 Meal & Food Gift Culture Fuel / EV2 charging Fleet Maintenance Accounts Payable VCN3 API Payroll Ethanol & Portal Wellbeing Remote working Mobility Toll Freight Pa
Slide 7: A global platform, operating in 45 countries
A GLOBAL PLATFORM, OPERATING IN 45 COUNTRIES 2022 operating revenue contribution1 Latin America Europe 31% 61% Rest of the World 8% 1. Consensus of financial analysts as of September 30, 2022 7
Slide 8: 2016-2022: A journey of disruption for Edenred
2016-2022: A journey of disruption for Edenred, shaping new standards in the industry
Slide 9: Portfolio management, product & technology, sales & marketing, ESG
PORTFOLIO PRODUCT SALES ESG MANAGEMENT & TECHNOLOGY & MARKETING Positioning ESG at the heart Multiplying the opportunities Disrupting the product & Scaling up Edenred business of Edenred and decreasing the risks technology approach excellence capabilities 9
Slide 10: Business line mix: expanding the range of solutions
BUSINESS LINE MIX: EXPANDING THE RANGE OF SOLUTIONS % of operating revenue, indicative Employee Benefits Fleet & Mobility ~26% Beyond Food +5pts ~30% Beyond Fuel +30pts ~21% PORTFOLIO ~74% Meal & Food ~70% Fuel MANAGEMENT ~79% ~100% 2016 2022E1 2016 2022E1 1. Estimates 10
Slide 11: Geographic mix: higher operating revenue contribution from Europe
GEOGRAPHIC MIX: HIGHER OPERATING REVENUE CONTRIBUTION FROM EUROPE % of operating revenue 8% Rest of the World 31% Latin America 7% 42% PORTFOLIO 61% Europe MANAGEMENT 51% 2016 2022E1 1. Consensus of financial analysts as of September 30, 2022 11
Slide 12: External growth has contributed to the portfolio evolution
EXTERNAL GROWTH HAS CONTRIBUTED TO THE PORTFOLIO EVOLUTION Edenred has performed selective acquisitions… … mainly in 2016-2019 ~€1.6bn invested since 2016 Split of operating revenue growth from 2016 to 2022 YTD 4% 5% EMPLOYEE BENEFITS 10% 1% ~€0.2bn 6% 18% 13% 14% 14% 8% 9% MOBILITY FLEET & ~€0.8bn
Slide 13: Edenred disrupting product and technology standards in its industry
EDENRED DISRUPTING PRODUCT AND TECHNOLOGY STANDARDS IN ITS INDUSTRY From To Edenred in 2022 Paper Digital 100% new solutions are digital Omnichannel user Foodtech In-store user experience experience 200+ and Mobility platforms data experts and practitioners Payment Enriched connections ~200 @Edenred
Slide 14: With ~€1.7bn invested in technology spend since 2016
WITH ~€1.7BN INVESTED IN TECHNOLOGY SPEND SINCE 2016 Edenred total technology spend [€m; % of total revenue] ~360 €1.7bn Cumulated spend 301 over 2016-2022 252 263 3,000 PRODUCT & TECHNOLOGY Tech staff2 2019 2020 2021 2022E1 15.5% 18.0% 18.5% 18.5% 1. Estimates 2. Internal & external employees 14
Slide 15: Unlocking the small and medium-sized enterprises opportunity
UNLOCKING THE SMALL AND MEDIUM-SIZED ENTERPRISES OPPORTUNITY THANKS TO BUSINESS EXCELLENCE Operating in underpenetrated … and leveraging selective markets… … ramping up direct channels… distribution partners Penetration rate, % of total market Employee Employee Benefits ~30% # distance sales FTE2 Be
Slide 16: Edenred: ESG by design
EDENRED: ESG BY DESIGN +13pts -46% +28pts Diversity Climate change Sustainable food ▪ 34% women among ▪ Reduction in GHG1 ▪ 57% of food users & executive positions in intensity in 2021 vs. 2013 merchants made aware 2021 vs. 21% in 2017 (greenhouse gas of balanced nutrition emissions/m²) and food was
Slide 17: Edenred ESG commitment recognized
EDENRED ESG COMMITMENT RECOGNIZED Has joined the CAC 40 ESG index 17
Slide 18: Reaching another dimension
REACHING ANOTHER DIMENSION 2016 2019 2022E1 2016 – 2022E €2bn €1.6bn €1.1bn x1.8 €811m €668m €427m x1.9 €402m €312m €180m x2.2 €640m €400m €352m x1.8 18
Slide 19: Edenred market capitalization, x3.3 since October 2015
EDENRED MARKET CAPITALIZATION, X3.3 SINCE OCTOBER 2015 Edenred share price Edenred market capitalization €bn 12.7 +235% Edenred Delta +200pts x3.3 3.8 +36% CAC 40 +33% SBF 120 20151 2022E2 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19 Apr-20 Jan-21 Oct-21 Jul-22 1. Edenred stock price on October 1st, 20
Slide 20: Creating jobs and talent pools at Edenred
CREATING JOBS AND TALENT POOLS AT EDENRED # of staff1 >70 ~12,000 nationalities 37 average age 2016-2022 ~50% x1.7 women ~7,200 ~3,700 Sales & marketing staff1 2016 2022E2 ~3,000 Tech staff1 1. Internal & external staffs 20
Slide 21: BEYOND22-25, a plan to scale the Edenred platform
BEYOND22-25, a plan to scale the Edenred platform
Slide 22: Edenred, the everyday platform for people@work in…
Edenred, the everyday platform for people@work in…
Slide 23: On a path to €5bn total revenue by 2030
BEYOND22-25 ON A PATH TO €5BN TOTAL REVENUE BY 2030 Edenred total revenue [€bn] 5 M&A opportunity 2 Organic growth on current scope 1.0 1.1 2010 2015 2022E1 2030E2 1. Estimates 2. At current FX rate 23
Slide 24: Scaling the Edenred platform
BEYOND22-25 SCALING THE EDENRED PLATFORM #3. Expand in New Businesses Expand in new business Enriched business model opportunities #2. Extend Beyond Accelerate Beyond Food, 10% Fuel and Payment ▪ Design and distribute #1. Scale the new services… Core Grow further in ▪ … in a comprehensive underpenet
Slide 25: Cascading across business lines
BEYOND22-25 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 & eng
Slide 26: Capitalizing on key assets
BEYOND22-25 CAPITALIZING ON KEY ASSETS +90% Brand equity ~12,000 52m+ €1.7bn €2bn+ of a market leader EBITDA growth highly engaged users Amount invested since M&A fire power over 2016-2022E people 2016 to invest 2m+ +25% 90% merchants 70%+ Q3 2022 reported Board total revenue independence rate; 950k
Slide 27: A platform creating a competitive advantage for Edenred
BEYOND22-25 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 27
Slide 28: A platform combining local relevance & global scale
BEYOND22-25 A PLATFORM COMBINING LOCAL RELEVANCE & GLOBAL SCALE Experiences Local Relevance Business applications Accelerated Time-to-Market Digital services Global Scale Infrastructure 28
Slide 29: A platform creating a competitive advantage for Edenred
BEYOND22-25 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: Expanding Edenred total addressable market beyond: up to x3
BEYOND22-25 EXPANDING EDENRED TOTAL ADDRESSABLE MARKET BEYOND: UP TO X3 Employee Benefits Fleet & Mobility Corporate Payment TAM: €1,000bn volume TAM: €4,000bn volume TAM: €25,000bn volume +Other (wellbeing, health, mobility benefits) +Fleet management +US ACH2,3 €700bn €2,300bn €15,000bn +On-road +
Slide 31: Launching and deploying new services
BEYOND22-25 LAUNCHING AND DEPLOYING NEW SERVICES BEYOND FOOD BEYOND FUEL Indicative Indicative ~35% ~40% of Employee Benefits operating revenue of Fleet & Mobility operating revenue from Beyond Food solutions in 2025 from Beyond Fuel solutions in 2025 ~35% Beyond Food ~40% Beyond Fuel 26% $ 30% $ ~6
Slide 32: A platform creating a competitive advantage for Edenred
BEYOND22-25 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 32
Slide 33: An efficient business model by design
BEYOND22-25 AN EFFICIENT BUSINESS MODEL BY DESIGN B2B2C & specific purpose An efficient business model B2B2C: bulk user acquisition through companies Users Merchants Corporates B2B2C activation clients Addressing daily essential needs Monthly wallet loading Eat Care Move Pay Specific purpose Network
Slide 34: A winning business model across acquisition, engagement and monetization
BEYOND22-25 A WINNING BUSINESS MODEL ACROSS ACQUISITION, ENGAGEMENT AND MONETIZATION Edenred business Edenred performance model specificities vs. Neobanks – 2021 B2B2C: bulk user acquisition through companies End-user cost of acquisition ÷2 Addressing daily essential needs Monthly wallet loading Dai
Slide 35: A platform creating a competitive advantage for Edenred
BEYOND22-25 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 35
Slide 36: The Edenred platform advantage
BEYOND22-25 THE EDENRED PLATFORM ADVANTAGE Accelerated sustainable and profitable growth Cost-to-serve efficiency SaaS fees on value-added services Revenue from Beyond solutions Revenue from core products Revenue from core products Accelerated Increased reach Increased cross-sell Increased Increased
Slide 37: Leading to a bigger ambition for Edenred
BEYOND22-25 LEADING TO A BIGGER AMBITION FOR EDENRED MEDIUM-TERM ANNUAL Global Performance Ambition TARGETS (2022-2025) Annual L/L EBITDA growth >+12% vs. >+10% in Next Frontier19-22 Annual FCF1 / EBITDA >70% vs. >65% in Next Frontier19-22 conversion rate2 SBTi3 Net Zero Carbon by 2050 Scope 1, 2, 3
Slide 38: As a frontrunner, Edenred is accelerating on ESG
As a frontrunner, Edenred is accelerating on ESG
Slide 39: Major progress since 2017
MAJOR PROGRESS SINCE 2017 12 out of the 17 UN4 sustainable develop- Key Indicators 2017 2021 ment goals covered DIVERSITY1 % women among executive positions 21% 34% % employees who received at least 1 training session/year, with 100% of TRAINING 78% 85% employees to have received CSR training by 202
Slide 40: ESG by design
BEYOND22-25 ESG BY DESIGN EMPLOYER OF NET ZERO CARBON TRUSTWORTHY CHOICE by 2050 TECH FOR GOOD 40% OF WOMEN AMONG EXECUTIVE SBTI1 TARGETS IN LINE WITH 1.5°C SUSTAINABLE FOOD & MOBILITY POSITIONS BY 2030 SCENARIO BY 2030 PROMOTION as Edenred & via Edenred solutions 1. Science Based Targets initiative
Slide 41: With a strong financial profile, Edenred is taking full benefit of the economic environment
With a strong financial profile, Edenred is taking full benefit of the current economic environment
Slide 42: Another record-year in 2022
Another record-year in 2022
Slide 43: 2022: Strong Q3 and 9M revenue growth
2022: STRONG Q3 AND 9M REVENUE GROWTH Operating revenue Other revenue €m +17.9% €m +65.4% L/L L/L A strong financial 1,375 53 profile Another record-year in 1,130 2022 +19.1% +99.7% A favorable current L/L L/L 32 economic environment 23 A sound balance sheet and a balanced capital 484 deployment pol
Slide 44: Driving to record-high total revenue growth
DRIVING TO RECORD-HIGH TOTAL REVENUE GROWTH Q3 2021 9M 2021 €405m €1,162m LIKE-FOR-LIKE +21.4% +19.2% A strong financial profile Scope -0.1% -0.3% Another record-year in 2022 A favorable current Currency +3.8% +4.0% economic environment A sound balance sheet and a balanced capital deployment policy
Slide 45: And an upgraded FY 2022 EBITDA outlook
AND AN UPGRADED FY 2022 EBITDA OUTLOOK Edenred is upgrading its FY 2022 EBITDA outlook range to A strong financial profile Another record-year in 2022 A favorable current economic environment €810m – €840m1 A sound balance sheet and a balanced capital deployment policy (from €770m-€820m previously)
Slide 46: A favorable current economic environment
A favorable current economic environment
Slide 47: Inflation: a positive play for the Edenred platform
BEYOND22-25 INFLATION: A POSITIVE PLAY FOR THE EDENRED PLATFORM Driver Time-horizon impact Business line impact Short term Medium term EB F&M CS A strong financial (< 1 year) (1 to 3 years) profile Enhanced attractiveness of Edenred solutions Another record-year in 2022 A favorable current Increase
Slide 48: Actively harnessing the potential for face value increases
BEYOND22-25 ACTIVELY HARNESSING THE POTENTIAL FOR FACE VALUE INCREASES… The know-how to leverage the current environment A strong financial To protect the purchasing power of employees, profile public authorities are increasing the legal face Since early 2022, face value increases Another record-yea
Slide 49: … that will progressively materialize
BEYOND22-25 … THAT WILL PROGRESSIVELY MATERIALIZE Face value usage/maximum legal face value Face value increases are progressive 1 Average face value usage is ~85% of maximum legal face value in Employee Average 2-year time horizon for face value usage to reach 85% of the new maximum legal face valu
Slide 50: Interest rates increase is an incremental factor of other revenue growth
BEYOND22-25 INTEREST RATES INCREASE IS AN INCREMENTAL FACTOR OF OTHER REVENUE GROWTH BEYOND FLOAT EXPANSION Short-term interest rates evolution from A €4bn1 float mainly generated 2016 to 2025 (%) in Europe Rest of the Futures rates Nov-22 to Dec-25 Europe Latin America World 16 A strong financial p
Slide 51: A sound balance sheet and a balanced capital deployment policy
A sound balance sheet and a balanced capital deployment policy
Slide 52: A robust financial position providing €2bn in fire power
BEYOND22-25 A ROBUST FINANCIAL POSITION PROVIDING €2BN IN FIRE POWER High level of liquidity with no major Highly deleveraged financial profile repayments before 2024 Diversified financing sources with €1.5bn raised Gross debt at €3.0bn2 with an average amount of since 2019 at attractive all-in rate
Slide 53: A balanced capital deployment policy
BEYOND22-25 A BALANCED CAPITAL DEPLOYMENT POLICY 1 Consistent recurring capex policy to further drive innovation and sales ▪ Capex = 7-8% of total revenue A strong financial 2 Acquisitive in all 3 business lines profile ▪ Contribution from external growth with ~€1.6bn invested since 2016 to reinforc
Slide 54: Capex
BEYOND22-25 1 CAPEX Capex as a % of total revenue [€m] 7.1% 7.0% - 7.5% 7.0% 6.0% 136 - 1472 A strong financial profile 104 114 BEYOND22-25 Another record-year in 98 2022 Annual capex A favorable current economic environment c.7-8% of total revenue A sound balance sheet and a balanced capital deploy
Slide 55: Technology investments
BEYOND22-25 1 TECHNOLOGY INVESTMENTS Technology investments in 2022E1 Technology investments in 2025E1 9% A strong financial profile 38% Another record-year in Technology 18% ~€360m Technology €450m - 2022 Opex Capex2 A favorable current €500m economic environment A sound balance sheet 35% and a bal
Slide 56: €2bn in M&A fire power, as an additional booster to organic growth
BEYOND22-25 2 €2BN IN M&A FIRE POWER, AS AN ADDITIONAL BOOSTER TO ORGANIC GROWTH Priorities per business line Key common criteria Employee ▪ Bolt-on acquisitions in Meal & Food ▪ 3 key qualities required for the Benefits assets: ▪ Build-up to extend Beyond Food – Clients' portfolio ▪ Expand in new b
Slide 57: A progressive dividend policy
BEYOND22-25 3 A PROGRESSIVE DIVIDEND POLICY €1.1bn Dividends paid in the last 6 years1 0.90 A strong financial profile BEYOND22-25 Another record-year in 0.86 2022 0.85 Dividend growth 0.75 A favorable current in absolute terms every year economic environment 0.70 0.62 A sound balance sheet and a ba
Slide 58: We connect, you win
Slide 59: Contacts
CONTACTS To have more information about the company Cédric Appert – Financial Communication & Investor Relations Director cedric.appert@edenred.com Baptiste Fournier – Investor Relations Manager baptiste.fournier@edenred.com To schedule a meeting Dalila Courtel – IR Financial Marketing dalila.courte