Edenred Sa · EURONEXT:EDEN
Edenred Sa — H1 2016 Earnings Presentation
39 slides from Edenred Sa's earnings presentation, Jul 22, 2016
Slide 1: H1 2016 Results
| H1 2016 Results July 22, 2016 Edenred
Slide 2: H1 Key Figures & Highlights
1 H1 Key Figures & Highlights Bertrand Dumazy, Chairman & CEO
Slide 3: First-Half 2016: Strong H1 performance on track to deliver full-year targets
FIRST-HALF 2016 Strong H1 performance on track to deliver full-year targets ▌ Solid L/L issue volume growth (+8.4%) with Q2 better than Q1 as expected, reflecting continued acceleration in Europe (+8.3%) and sustained growth in Latin America (+8.1%) ▌ Operating EBIT margin of 26.3%, increasing in bo
Slide 4: H1 2016 Key Figures
H1 2016 KEY FIGURES Strong L/L performance in H1 H1 2016 L/L growth In € millions Issue volume 9,079 +8.4% Total revenue 526 +6.1% EBIT 161 +13.0% Funds from operations 125 +14.2% 4
Slide 5: H1 2016 Issue Volume by Type of Solution
H1 2016 ISSUE VOLUME BY TYPE OF SOLUTION Solid growth across all families of solutions EMPLOYEE EXPENSE BENEFITS MANAGEMENT INCENTIVE PUBLIC & REWARDS SOCIAL PROGRAMS +7.1% +11.6% +17.9% NM(1) growth in L/L issue volume growth in L/L issue volume growth in L/L issue volume growth in L/L issue volume
Slide 6: H1 2016 Key Achievements
H1 2016 KEY ACHIEVEMENTS Continuous innovation and reinforced offer through acquisitions Employee Benefits Expense Management ▌ Launch of Apple Pay for Ticket Restaurant® ▌ Closing of the Embratec acquisition in Brazil card in France #1 provider of fuel cards & 1 3 maintenance solutions for light ve
Slide 7: Launch of Apple Pay for Ticket Restaurant card in France
EMPLOYEE BENEFITS Launch of Apple Pay for Ticket Restaurant® card in France ▌ 200,000 employee beneficiaries use the Ticket Restaurant® card at the end of June 2016 ▌ 80% have already made a transaction using contactless (NFC) payment ▌ Since the launch of the Ticket Restaurant® card in April 2014,
Slide 8: Continuous shift to digital in Japan and Uruguay
EMPLOYEE BENEFITS Continuous shift to digital in Japan and Uruguay ▌ Launch of the first digital meal card, Ticket Restaurant® Touch, in Japan in April 2016 ▌ A network of over 30,000 affiliated shops in Japan ▌ A new innovative service combined with a dedicated portal site and smartphone applicatio
Slide 9: Continued gain of new clients
EMPLOYEE BENEFITS Continued gain of new clients Europe Latin America Rest of the World ~1,800 beneficiaries ~ 25,000 beneficiaries of Ticket Restaurant® of Ticket Restaurant® ~1,400 beneficiaries of Ticket Restaurant® ~7,000 beneficiaries ~ 1,300 beneficiaries of Ticket Plus® Card of Ticket Restaura
Slide 10: Embratec: A Key Milestone in Fuel & Fleet Acceleration
EMBRATEC: A KEY MILESTONE IN FUEL & FLEET ACCELERATION Finalization of Embratec acquisition in Brazil(1) ▌ Successful closing of the acquisition in May 2016 ▌ Doubling Edenred’s fuel card and maintenance offering in the fast-growing and under-penetrated Expense Management market ▌ Creation of a new
Slide 11: Embratec Integration Well Underway
EMBRATEC INTEGRATION WELL UNDERWAY Creation of a major player in Fuel & Fleet ▌ #1 provider in Brazil of fuel cards & maintenance solutions for light vehicles and #2 for heavy vehicles ~27k clients >1m active cards >24.5k affiliated service stations & maintenance workshops (58% market coverage
Slide 12: H1 2016 Results
2 H1 2016 Results Patrick Bataillard, Executive Vice-President, Finance
Slide 13: Strong L/L Issue Volume Growth in H1: +8.4%
STRONG L/L ISSUE VOLUME GROWTH IN H1: +8.4% Stable issue volume as reported in spite of strong currency impacts H1 2015 IV €9,110m €761m L/L issue volume increase H1 2016 growth, reflecting in particular: 10.0% 9.3% Like-for-like +8.4% 8.4% 8.7% 9.3% 8.4% strong performance of the Latin 7.0% 7.4
Slide 14: H1 2016 Europe Issue Volume: €4,562m
H1 2016 EUROPE ISSUE VOLUME: €4,562M Up +8.3% L/L, thanks to improved Q2 vs. Q1 and positive calendar effect in Q2(1) L/L growth Q1 Q2 H1 50% of total Europe excluding issue volume +8.4% +11.5% +9.9% France France +4.2% +6.2% +5.2% Total Europe +6.9% +9.7% +8.3% Europe excluding France: France: +4
Slide 15: H1 2016 Latin America Issue Volume: €4,124m
H1 2016 LATIN AMERICA ISSUE VOLUME: €4,124M Sustained +8.1% L/L growth, despite high basis of comparison L/L growth Q1 Q2 H1 45% of total Brazil +5.3% +3.7% +4.5% issue volume Hispanic Latin +11.1% +16.5% +13.8% America Total Latin America +7.5% +8.7% +8.1% Brazil: Hispanic Latin America: +4.5% L/
Slide 16: H1 2016 Total Revenue: €526m
H1 2016 TOTAL REVENUE: €526M Up +6.1% L/L, and -2.4% as reported, reflecting currency impacts H1 2015 €33m L/L total revenue increase Revenue €539m L/L growth Q1 Q2 H1 in €m Like-for-like +6.1% Operating revenue with IV +5.8% +7.8% +6.8% 420 Operating revenue without IV(3) +6.6% +5.2% +5.8% 74 Fin
Slide 17: H1 2016 Operating Revenue with Issue Volume
H1 2016 OPERATING REVENUE WITH ISSUE VOLUME Good performance across all regions Operating revenue with issue volume L/L growth Q1 Q2 H1 in €m Revenue increase across all regions driven by issue Europe +5.1% +8.9% +7.0% 214 volume growth, with acceleration in Europe and sustained growth in Latin Am
Slide 18: H1 2016 Operating Revenue without Issue Volume and Financial Revenue
H1 2016 OPERATING REVENUE WITHOUT ISSUE VOLUME AND FINANCIAL REVENUE Operating revenue without issue volume Financial revenue L/L growth by region L/L growth Q1 Q2 H1 in €m L/L growth Q1 Q2 H1 in €m Europe +7.1% +3.4% +4.6% 46 Europe -16.3% -14.5% -15.4% 14 Latin America +4.4% +0.8% +2.7% 10 Latin A
Slide 19: H1 2016 EBIT: €161m
H1 2016 EBIT: €161M Strong +13.0% L/L growth, well above +6.1% L/L growth in revenue Change Change In € millions H1 2016 H1 2015 reported L/L Total revenue 526 539 -2.4% +6.1% Operating EBIT 129 129 +0.7% +17.1% Financial EBIT 32 36 -12.6% -1.6% Total EBIT 161 165 -2.2% +13.0% +28% Operating revenue
Slide 20: H1 2016 EBIT Bridge
H1 2016 EBIT BRIDGE Strong L/L performance, and negative currency impacts Operating revenue Financial revenue Changes Currency effect(2) L/L∆: €33m L/L∆: €0m in scope H1 2015 EBIT H1 2016 EBIT (reported) (reported) €165m €21m €0m €3m €(28)m €161m Flow-through of which: ratio(1) of €(16)m from BRL 66
Slide 21: Operating EBIT Margin
OPERATING EBIT MARGIN(1) Strong L/L operating profitability increase in H1 2016 Operating Currency mix effect flow-through and changes in ratio(2) of 66% scope Operating EBIT/ Operating EBIT/ Operating EBIT/ operating revenue operating revenue +2.5pts operating revenue (L/L) -1.9pts (reported) (repo
Slide 22: H1 2016 Net Profit
H1 2016 NET PROFIT Change in net profit reflecting non-recurring costs and currency effects Change In € millions H1 2016 H1 2015 reported EBIT 161 165 -2.2% Net financial expense (23) (21) Share of associate net profit 4 4 Non-recurring income and expenses, net (18) (8) Income tax expenses (44) (51)
Slide 23: Cash Flow Statement
CASH FLOW STATEMENT L/L growth in Funds From Operations of +14.2% In € millions H1 2016 H1 2015 Change L/L Funds from operations 125 148 +14.2% Increase/(decrease) in cash linked to changes in float (1) (180) (182) (Increase)/decrease in restricted cash (57) 2 (Increase)/decrease in working capital
Slide 24: Net Debt Bridge from June 2015 to June 2016
NET DEBT BRIDGE FROM JUNE 2015 TO JUNE 2016 Net debt position Currency effects(2) and June 30, 2015 (before currency June 30, 2016 Net debt effects other Net debt position Free Cash External Shareholders’ and other non- non-recurring position (reported) Flow acquisitions return recurring items) item
Slide 25: Net Debt Bridge from December 2015 to June 2016
NET DEBT BRIDGE FROM DECEMBER 2015 TO JUNE 2016 Net debt position Currency effects(2) and (before currency December 31, 2015 other June 30, 2016 effects Net debt Net debt Free Cash External Shareholders’ and other non- non-recurring position items position Flow acquisitions return recurring items) (
Slide 26: Debt Maturity Profile
DEBT MATURITY PROFILE A well-balanced and evenly spread debt maturity profile Amounts in €m +2 years 510(1) 500 Bonds NEW Undrawn committed 700 700 revolving credit facility 250 225 Schuldschein loan 137 Bank loans in BRL 70(2) 70(2) 113 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 NEW NEW NEW
Slide 27: Conclusion
3 Conclusion Bertrand Dumazy, Chairman & CEO
Slide 28: 2016 Outlook and Guidance
2016 OUTLOOK AND GUIDANCE FY 2016 EBIT target: €350m to €370m H2 2016 issue volume growth is expected to remain solid with: Organic Growth in Europe reflecting a continued positive momentum and some negative calendar effects, top-line about 2 days on average in H2 trends in H2 Improving trends
Slide 29: Pursuit of 2016 Key Priorities
PURSUIT OF 2016 KEY PRIORITIES 1. Deploy sustainable and profitable growth platform in Employee Benefits 2. Accelerate development in Expense Management 3. Develop and monetize opportunities created by the shift to digital (from B2B to B2B2C/B2C2B) 4. Increase the pooling of IT resources 5. Deploy t
Slide 30: Appendices
4 Appendices
Slide 31: Issue Volume
ISSUE VOLUME Q1 Q2 H1 In € millions 2016 2015 2016 2015 2016 2015 France 767 735 806 696 1,573 1,431 Rest of Europe 1,452 1,346 1,536 1,395 2,989 2,741 Latin America 1,872 2,284 2,252 2,274 4,124 4,558 Rest of the world 193 188 200 192 393 380 Issue volume 4,284 4,553 4,794 4,557 9,079 9,110 Q1 Q2 H
Slide 32: Operating Revenue with Issue Volume
OPERATING REVENUE WITH ISSUE VOLUME Q1 Q2 H1 In € millions 2016 2015 2016 2015 2016 2015 France 32 31 33 30 65 61 Rest of Europe 73 68 77 71 149 139 Latin America 83 104 104 105 187 209 Rest of the world 9 10 10 9 19 19 Operating revenue with IV 197 213 224 215 420 428 Q1 Q2 H1 Change Change Change
Slide 33: Operating Revenue without Issue Volume
OPERATING REVENUE WITHOUT ISSUE VOLUME Q1 Q2 H1 In € millions 2016 2015 2016 2015 2016 2015 France 13 6 14 20 27 26 Rest of Europe 10 11 9 8 19 19 Latin America 5 6 5 7 10 13 Rest of the world 8 8 9 9 18 17 Operating revenue without IV 36 31 37 44 74 75 Q1 Q2 H1 Change Change Change Change Change Ch
Slide 34: Financial Revenue
FINANCIAL REVENUE Q1 Q2 H1 In € millions 2016 2015 2016 2015 2016 2015 France 3 4 3 3 5 7 Rest of Europe 4 4 4 5 9 9 Latin America 7 10 8 8 16 18 Rest of the world 2 1 1 1 2 2 Financial revenue 16 19 16 17 32 36 Q1 Q2 H1 Change Change Change Change Change Change In % reported L/L reported L/L report
Slide 35: Total Revenue
TOTAL REVENUE Q1 Q2 H1 In € millions 2016 2015 2016 2015 2016 2015 France 48 41 50 53 97 94 Rest of Europe 87 83 90 84 177 167 Latin America 95 120 117 120 213 240 Rest of the world 19 19 20 19 39 38 Total revenue 249 263 277 276 526 539 Q1 Q2 H1 Change Change Change Change Change Change In % report
Slide 36: Operating EBIT & Total EBIT
OPERATING EBIT & TOTAL EBIT Change Change In € millions H1 2016 H1 2015 reported L/L France 12 11 7.1% 5.6% Rest of Europe 49 37 33.0% 34.2% Latin America 71 87 -17.1% 10.8% Rest of the world 4 3 12.7% 7.2% Worldwide structures (7) (9) -26.6% 9.5% Operating EBIT 129 129 0.7% 17.1% Change Change In €
Slide 37: Focus on Currencies
FOCUS ON CURRENCIES Average Actual Actual Actual Assumed Actual Assumed rates H1 2015 H1 2016 H2 2015 H2 2016 FY 2015 FY 2016 Brazilian real BRL/€ 3.31 4.13 4.08 3.87 3.69 4.00 -20% +5% -8% Assumed currency impacts (2016 vs. 2015) In € millions H2 2016 FY 2016 H1 2016 assumed (1) assumed Currency Br
Slide 38: Average Exchange Rates
AVERAGE EXCHANGE RATES 2016 vs. 2016 vs. 2016 vs. 2015 vs. 2015 vs. 2015 vs. 2015 2015 2015 2014 2014 2014 €1 = X foreign currency Q1 2016 Q1 2015 Q2 2016 Q2 2015 H1 2016 H1 2015 Q3 2015 Q4 2015 FY 2015 Change Change Change Change Change Change (in % ) (in % ) (in % ) (in % ) (in % ) (in % ) Bolivar
Slide 39: 2016 Expected Calendar Effects
2016 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2016 Nb of Nb of Nb of Nb of Nb of Working days % change % change % change % change % change days days days days days Europe 0 -0.4% 2 3.1% -1 -1.8% -1 -2.2% -1 -0.4% Latin America 0 -0.1% 1 1.9% -1 -1.0% 0 -0.1% 0 0.2% Rest of the world 1 0.9% 1 1.7% 0 -0.