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Edenred Sa — Q3 2010 Earnings Presentation

21 slides from Edenred Sa's earnings presentation, Oct 19, 2010

  1. Slide 1: Conference Call Q3 2010 Revenue

    October 19, 2010 CONFERENCE CALL Q3 2010 Revenue

  2. Slide 2: Q3 2010 Highlights

    Q3 2010 Highlights Faster Issue Volume Growth: up 13.7% L/L in Q3 2010 vs. 7.8% L/L in H1 Faster Operating Revenue Growth: up 9.5% L/L in Q3 2010 vs. 4.2% L/L in H1  Emerging markets :  Good momentum in Latin America, reflecting a booming economy, particularly in Brazil (increase in the number of

  3. Slide 3: September-end 2010 (YTD) Issue Volume: €9,843m

    September-end 2010 (YTD) Issue Volume: €9,843m Issue Volume (L/L) Like-for-like +9.7% €886m 13.7% 9.7% Scope 8.1% 8.4% +0.6% 7.4% 7.2% €59m 5.7% 3.6% 3.8% Currency -2.4% €(221)m Q1 09 Q2 09 Q3 09 Q4 09 FY 09 Q1 10 Q2 10 Q3 10 YTD 10 Reported +7.9% €724m Faster Issue Volume (IV) growth in Q3, reflect

  4. Slide 4: YTD 2010 Issue Volume Growth by region

    YTD 2010 Issue Volume Growth by region L/L Growth Q1 Q2 Q3 YTD France +4.7% -7.9% +3.2% -0.4% Rest of Europe +4.9% +5.6% +6.1% +5.5% Latin America +10.6% +17.9% +22.8% +17.3% Rest of the world +5.4% +18.5% +19.4% +14.3% TOTAL +7.2% +8.4% +13.7% +9.7%  France: Q3 IV growth in line with Q2, which was

  5. Slide 5: YTD Operating Revenue: €629m

    YTD Operating Revenue: €629m Operating Revenue 9.5% 9.0% Like-for-like 8.1% +5.9% €34m 7.7% 7.6% 5.9% 4.5% 3.8% Reported Like-for-like Scope +2.9% €17m Q1 10 Q2 10 Q3 10 YTD 10 Currency effect * Currency -0.7% €(4)m Q1 Q2 Q3 YTD BRL +4.7% +5.7% +5.3% +5.2% VEF -6.7% -6.4% -11.1% -8.0% Other +1.4% +2

  6. Slide 6: France YTD Operating Revenue: €101m

    France YTD Operating Revenue: €101m 8.6% 4.7% 4.2% 1.9% Q1 Q2 Q3 YTD  Meal vouchers: Good performance in Q3, with operating revenue up 11.7% L/L  Incentive & Rewards: A more cyclical business and a highly competitive environment (IV down 2.6% L/L in Q3) October 19, 2010 6

  7. Slide 7: Rest of Europe YTD 2010 Operating Revenue: €222m

    Rest of Europe YTD 2010 Operating Revenue: €222m L/L Growth Q1 Q2 Q3 YTD UK +2.1% +5.4% +3.7% +3.7% Belgium +19.3% +22.3% +22.5% +21.3% Italy -2.4% -3.9% -2.3% -2.9% Romania -18.5% -36.2% -33.7% -29.4% TOTAL REST OF EUROPE +0.3% -1.4% +3.6% +0.7%  UK: Strong demand in Childcare  Italy: First signs

  8. Slide 8: Latin America YTD 2010 Operating Revenue: €258m

    Latin America YTD 2010 Operating Revenue: €258m L/L Growth Q1 Q2 Q3 YTD Brazil +7.6% +8.6% +12.9% +9.8% Hispanic Latin America +10.8% +15.5% +21.7% +16.0% TOTAL LATIN AMERICA +9.1% +11.7% +16.6% +12.6%  Brazil: Both Benefits and Performance products driven by favorable macroeconomic conditions and

  9. Slide 9: YTD 2010 Financial revenue: €58m

    YTD 2010 Financial revenue: €58m Financial Revenue (L/L) -11.6% -20.4% -21.1% -29.5% Q1 10 Q2 10 Q3 10 YTD 10 L/L Growth Q1 Q2 Q3 YTD France -27.9% -28.3% -17.9% -25.1% Rest of Europe -20.3% -19.0% -19.1% -19.5% Latin America -38.7% -16.4% +2.5% -20.6% Rest of the world -30.1% -11.5% -4.7% -16.2% TO

  10. Slide 10: YTD 2010 Total Revenue: €687m

    YTD 2010 Total Revenue: €687m Like-for-like  Like-for-like revenue growth of 2.8%, of which: +2.8% €19m L/LGrowth Q1 Q2 Q3 YTD Operating Revenue +3.8% +4.5% +9.5% +5.9% Scope Financial Revenue -29.5% -20.4% -11.6% -21.1% +2.5% €17m Total Revenue -0.4% +1.8% +7.3% +2.8% Currency  Currency effect*:

  11. Slide 11: Conclusion

    Q3 2010 Revenue CONCLUSION

  12. Slide 12: Conclusion

    Conclusion Faster Issue Volume growth in Q3: +13.7% L/L in Q3 2010, vs. +7.8% L/L in H1, reflecting good overall momentum Operating Revenue Financial Revenue up 9.5% L/L in Q3 2010 down 11.6% L/L in Q3 2010  Emerging markets:  Emerging markets:  Good momentum in Latin America,  Latin America ben

  13. Slide 13: FY 2010 Guidance

    FY 2010 Guidance L/L Financial EBIT: L/L Operating EBIT: 100% flow-through 40% to 50% flow-through L/L financial revenue expected to decline by around 10% in H2 Currency effect on FY 2010 EBIT o New Bolivar rate (5.3VEF/USD vs 4.3 previously) => €8m negative effect on FY EBIT o Expected impact of US

  14. Slide 14: Appendices

    Q3 2010 Revenue APPENDICES

  15. Slide 15: Issue Volume

    Issue Volume Q1 Q2 H1 Q3 September end (YTD) In € millions 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 France 612 641 659 607 1,271 1,248 502 518 1,773 1,766 Rest of Europe 1,044 1,135 1,084 1,183 2,128 2,318 1,016 1,107 3,145 3,425 Latin America & Caribbean 1,246 1,301 1,327 1,536 2,573 2,837

  16. Slide 16: Operating Revenue

    Operating Revenue Q1 Q2 H1 Q3 September end (YTD) In € millions 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 France 35 36 34 33 69 69 30 32 100 101 Rest of Europe 69 79 69 73 138 152 63 70 201 222 Latin America & Caribbean 74 78 81 91 155 169 82 89 237 258 Rest of the world 15 15 15 17 30 32 15

  17. Slide 17: Financial Revenue

    Financial Revenue Q1 Q2 H1 Q3 September end (YTD) In € millions 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 France 7 5 6 5 13 10 5 4 19 14 Rest of Europe 9 8 10 8 19 16 9 8 28 23 Latin America & Caribbean 11 6 8 6 19 12 7 6 25 19 Rest of the world 1 - - 1 1 1 1 1 2 2 FINANCIAL REVENUE 28 19 24

  18. Slide 18: Total Revenue

    Total Revenue Q1 Q2 H1 Q3 September end (YTD) In € millions 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 France 42 41 40 38 82 79 35 36 118 115 Rest of Europe 78 87 79 81 157 168 72 77 229 245 Latin America & Caribbean 85 84 89 97 174 181 90 96 262 277 Rest of the world 16 15 15 18 31 33 15 17

  19. Slide 19: Exchange rates

    Exchange rates 2010 vs. 2010 vs. 2010 vs YTD YTD 2010 vs 1€ = X Q1 2009 Q1 2010 2009 Q2 2009 Q2 2010 2009 Q3 2009 Q3 2010 2009 2009 2010 2009 foreign average average Change average average Change average average Change average average Change currency rate rate (in %) rate rate (in %) rate rate (in %

  20. Slide 20: Impact of new Bolivar exchange rate YTD

    Impact of new Bolivar exchange rate YTD Application of new Bolivar exchange rate to YTD figures Full impact recognized in Q3 figures YTD GROUP’s FIGURES With previous With new Impact of the (In € millions) VEF/$ rate of 4.3 VEF/$ rate of 5.3 VEF/$ rate change Issue Volume 9,988 9,843 (145) Operating

  21. Slide 21: Change in accounting method impact

    Change in accounting method impact Change in accounting method in Germany’s gift voucher segment (1) In € millions Impact on reported Total Revenue Q1 +4.9 +2.2% Q2 +2.0 +0.9% S1 +7.0 +1.6% Q3 +2.4 +1.1% S1+Q3 +9.4 +1.4% Q4 -9.4 -3.8% S2 -7.0 -1.5% Total 0 0.0% (1) Change made in Q4 2009 to comply w

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