Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — H1 2017-2018 Earnings Presentation
32 slides from Elior Group Sa's earnings presentation, May 29, 2018
Slide 1: Elior Group H1 2017-2018 Results
ELIOR GROUP H1 2017-2018 RESULTS Philippe Guillemot – Group CEO Esther Gaide – Group CFO May 29, 2018
Slide 2: Disclaimer
DISCLAIMER This document was prepared by Elior Group for the sole purpose of this presentation. This presentation includes only summary information and does not purport to be comprehensive. The information contained in this document has not been independently verified. No representation or warranty,
Slide 3: Agenda
AGENDA 1 2 3 HIGHLIGHTS GROUP CONTRACT CATERING & FINANCIAL PERFORMANCE SERVICES 4 5 6 CONCESSION CATERING OUTLOOK CONCLUSION AND Q&A 05/29/2018 3 Elior Group
Slide 4: Highlights
1 HIGHLIGHTS PHILIPPE GUILLEMOT Group CEO 05/29/2018 Elior Group
Slide 5: Financial Highlights
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL HIGHLIGHTS • H1 2017-2018 performance consistent with preliminary figures released on May 16 − Total revenue growth of 3.9% of which 2.9% organic growth − Ad
Slide 6: Governance
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A GOVERNANCE NON INDEPENDENT DIRECTORS INDEPENDENT DIRECTORS Gilles Gilles Anne BOARD OF DIRECTORS Cojan Auffret Busquet Chairman Senior independent director Independent
Slide 7: Organizational Changes
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A ORGANIZATIONAL CHANGES Chief Executive Officer Chief Financial Officer Contract Catering Contract Catering Concession Services Europe North America Catering (Areas) Ch
Slide 8: Appointment of Experienced Profiles
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A APPOINTMENT OF EXPERIENCED PROFILES Esther Ruxandra UNDERWAY Ispas Gaide Chief Chief Procurement Human Resources Financial & Logistics Officer Director Officer Bernard
Slide 9: Strengthening of Balance Sheet
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A STRENGTHENING OF BALANCE SHEET • Increase of €-RCF ceiling from 300m to 450m • Extension of the maturity of most term loans and RCF up to May 2023: • €800m term loan a
Slide 10: Group Financial Performance
2 GROUP FINANCIAL PERFORMANCE ESTHER GAIDE Group CFO 05/29/2018 10 Elior Group
Slide 11: H1 Revenue Analysis
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A H1 REVENUE ANALYSIS GROUP REVENUE (€m) H1 H1 2016- organic perimeter 2017- 2017 growth effect forex effect 2018 3,339 3,213 +3.9% +3.5% (2.5)% 2,552 2,433 +2.9% 780 78
Slide 12: Q2 Revenue Analysis
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A Q2 REVENUE ANALYSIS REVENUES (€m) Q2 Q2 2016- organic perimeter 2017- 2017 growth effect forex effect 2018 1,645 1,619 +1.6% +3.5% Including unfavorable 1,246 1,266 ca
Slide 13: EBITDA Analysis
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A EBITDA ANALYSIS GROUP ADJUSTED GROUP ADJUSTED EBITDA (€m) EBITDA MARGIN -100 bps 255 (9.6)% 237 231 43 40 7.9% 6.9% 215 192 (3) (1) H1 2016-2017 H1 2017-2018 H1 2016-2
Slide 14: Profit & Loss Account Analysis
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A PROFIT & LOSS ACCOUNT ANALYSIS H1 H1 €m YoY CHANGE 2017-2018 2016-2017 Adjusted EBITDA 231 255 (9.6)% Adjusted EBITDA margin 6.9% 7.9% (100)Bps EBITA 123 160 (23.1)% A
Slide 15: Free Cash Flow Analysis
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FREE CASH FLOW ANALYSIS €m H1 2017-2018 H1 2016-2017 YoY CHANGE Adjusted EBITDA 231 255 (9.6)% Share-based compensation impact (5) (6) +1M€ Reported EBITDA 226 249 (24
Slide 16: Non Recurring Items
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A NON RECURRING ITEMS P&L IMPACT CASH IMPACT • Costs of restructuring, reorganization and • c. €(12)m • c. €(18)m project exits • M&A costs • c. €(2)m • c. €(1)m 05/29/2
Slide 17: Net Debt Analysis
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A NET DEBT ANALYSIS net debt as at net acquisitions net debt as of (€m) 09/30/2017 FCF financial costs & investments other 3/31/2018 (1,628) 1,783 Leverage ratio: CBM Ma
Slide 18: Contract Catering & Services
3 CONTRACT CATERING & SERVICES PHILIPPE GUILLEMOT Group CEO 05/29/2018 05/27/2016 18 Elior Group
Slide 19: H1 2017-2018 Highlights
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A H1 2017-2018 HIGHLIGHTS ACQUISITIONS COMMERCIAL ACTIVITY OPERATIONS & CONCEPTS • North America: CBM • 92.2% retention rate (vs. • Appointment of Pierre von Essen Manag
Slide 20: Financial Performance (1/2)
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE (1/2) Organic growth: +2.9% Over 10% organic growth in North America, driven by new contracts Strong organic growth in the UK thanks to new c
Slide 21: Financial Performance (2/2)
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE (2/2) H1 H1 REPORTED ORGANIC €m 2017-2018 2016-2017 GROWTH GROWTH Revenues 2,552 2,433 +4.9% +2.9% o/w France 1,160 1,149 +1.0% +1.0% o/w Interna
Slide 22: Concession Catering
4 CONCESSION CATERING PHILIPPE GUILLEMOT Group CEO 22 Elior Group
Slide 23: H1 2017-2018 Highlights
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A H1 2017-2018 HIGHLIGHTS OPENINGS CONTRACTS • 2 service plazas on AP6 (Spain) • 15 PoS in Barcelona airport (Spain) • 24 PoS in airports (Portugal) • Renewal of Ifema a
Slide 24: Financial Performance (1/2)
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE (1/2) Organic growth: 2.9% Continued strong organic growth in international operations thanks to strong traffic trends on Portuguese motorways
Slide 25: Financial Performance
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE H1 H1 REPORTED ORGANIC €m 2017-2018 2016-2017 GROWTH GROWTH Revenues 788 780 +1.0% +2.9% o/w France 299 306 (2.4)% (2.4)% o/w International 489 4
Slide 26: Outlook
5 OUTLOOK PHILIPPE GUILLEMOT ESTHER GAIDE Group CEO Group CFO 05/29/2018 26 Elior Group
Slide 27: May-15-2018 Guidance Confirmed
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A May-15-2018 GUIDANCE CONFIRMED ADJUSTED REVENUES EBITDA MARGIN ADJUSTED EPS CAPEX Organic growth 7.5% to 7.8% Down yoy c. €300m close to 3% 05/29/2018 27 Elior Group
Slide 28: Financial Agenda
1. HIGHLIGHTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL AGENDA • June 26, 2018: Investor Day – Elior Group head office • July 25, 2018: Revenue for the first nine months • December 4, 2018: Full-year results 05/29
Slide 29: Conclusion and Q&A
6 CONCLUSION and Q&A PHILIPPE GUILLEMOT ESTHER GAIDE Group CEO Group CFO 05/29/2018 29 Elior Group
Slide 30: Appendix
APPENDIX 05/29/2018 30 Elior Group
Slide 31: Definition of Alternative Performance Indicators
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS Organic growth in consolidated revenue: Growth in consolidated revenue expressed as a percentage and adjusted for the impact of (i) changes in exchange rates, using the calculation method described in Chapter 4, Section 4.1.4.1 of the FY 2015-2016 Reg
Slide 32: For Modelling Purposes: 2018 Indications
2018 INDICATIONS FOR MODELLING PURPOSES ESTIMATED FY ESTIMATED FY P&L IMPACT CASH IMPACT • D&A 3.2% of sales NA • Non recurring c. €(20)-(30)m c. €(30)-(40) m • Intangible amortization €(20)m-€(25)m NA (at constant perimeter) • Financial interest charge (at c. €(50)m c. €(50)m constant rates and deb