Edenred SA · EURONEXT:EDEN

Edenred SA — Q1 2017 Earnings Presentation

27 slides from Edenred SA's earnings presentation, Apr 18, 2017

  1. Slide 1: Q1 2017 Revenue

    Q1 2017 Revenue April 18, 2017

  2. Slide 2: Q1 2017 Executive Summary

    Q1 2017 EXECUTIVE SUMMARY A strong performance in Q1, both like-for-like and in reported figures, in line with the Fast Forward strategic plan ▌ Q1 revenue reflecting strong operating performance and the contribution of two major acquisitions in Expense management  Operating revenue like-for-like g

  3. Slide 3: Q1 2017 Key Events

    | Q1 2017 Key Events Edenred

  4. Slide 4: January 2017: Stake increase in UTA

    JANUARY 2017: STAKE INCREASE IN UTA Edenred #2 issuer of multi-brand Europe-wide solutions Edenred increases its stake in UTA Expense Management: from 34% to 51%(1) Edenred’s 2nd growth engine ▌ Acquisition of an additional 17% of UTA’s capital for ~€83m A world leader in Expense Management ▌ Accret

  5. Slide 5: April 2017: Acquisition of Moneo Resto assets

    APRIL 2017: ACQUISITION OF MONEO RESTO ASSETS Edenred accelerates the shift to digital in France ▌ Acquisition of Moneo Resto meal vouchers assets  ~1,500 corporate clients, of which 90% are SMEs  65,000 employee beneficiaries in France  100% digital ▌ Post-acquisition :  More than 400,000 Frenc

  6. Slide 6: Launch of Edenred Corporate Payment

    MARCH 2017: LAUNCH OF EDENRED CORPORATE PAYMENT A new accounts payable management solution in Europe Leveraging our existing assets License agreement Edenred sales, PPS(1) as financial CSI globalVCard enablement and institution: platform supervision team virtual card and provided in SaaS taking care

  7. Slide 7: Solution to automate management of supplier transactions

    MARCH 2017: LAUNCH OF EDENRED CORPORATE PAYMENT An innovative solution for Corporates to automate the management of their transactions with suppliers Wire transfers ERP System Single File Upload Virtual Cards Integrated with ERP or Full management of Managing different Cash-back rewards accounting s

  8. Slide 8: Successful 10-year €500 million bond issue

    MARCH 2017: SUCCESSFUL 10-YEAR €500 MILLION BOND ISSUE Another successful refinancing operation Very favorable conditions Bonds  €500 million bond Undrawn committed  10 years revolving credit facility  1.875% Schuldschein loan  More than 3 times oversubscribed Bank loans in BRL Well-balanced deb

  9. Slide 9: Q1 2017 Revenue

    | Q1 2017 Revenue Edenred

  10. Slide 10: Q1 2017 Operating Revenue

    Q1 2017 OPERATING REVENUE Robust reported growth fueled by continued positive momentum in organic growth and significant scope effects Q1 2016 €233m  €23m L/L operating revenue increase Like-for-like +10.0% 9.9% 10.0% 10.0% 7.3% 8.3% 5.9% Scope +17.5% Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17  €41m from

  11. Slide 11: Operating Revenue & L/L Growth by Business Line

    Q1 2017 OPERATING REVENUE & L/L GROWTH BY BUSINESS LINE High double-digit L/L growth in Expense Management and mid-single digit L/L growth in Employee Benefits, in line with medium-term targets EMPLOYEE EXPENSE COMPLEMENTARY BENEFITS MANAGEMENT SOLUTIONS Corporate Payment Incentive & Rewards Public

  12. Slide 12: Q1 2017 Employee Benefits Operating Revenue

    Q1 2017 – EMPLOYEE BENEFITS OPERATING REVENUE Strong +6.7% L/L growth, despite the Brazilian macroeconomic situation  L/L operating revenue growth Q1 2017 operating revenue 8.8% 9.3% 8.8% of total 7.6% 65% 6.7% operating revenue €198m 4.1% Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 In Latin America In Eur

  13. Slide 13: Q1 2017 Expense Management Operating Revenue

    Q1 2017 – EXPENSE MANAGEMENT OPERATING REVENUE Faster growth in Q1 (+27.1% like-for-like), reflecting good performances across the board, on top of significant scope effects  L/L operating revenue growth 27.1% Q1 2017 21.7% of total operating revenue 25% 14.7% operating revenue €76m 13.1% 13.1% 3.7

  14. Slide 14: Operating Revenue & L/L Growth by Geography

    OPERATING REVENUE & L/L GROWTH BY GEOGRAPHY Sustained growth across all regions EUROPE 51% of Q1 2017 operating revenue +8.9% L/L growth ROW 6% of Q1 2017 operating +9.1% L/L growth revenue LATIN 43% AMERICA of Q1 2017 operating +11.8% L/L growth revenue 14

  15. Slide 15: Q1 2017 Europe Operating Revenue

    Q1 2017 – EUROPE OPERATING REVENUE Continued positive momentum across the region L/L growth Q1 Q1 2017 Europe excluding of total operating revenue +8.8% France operating revenue 51% €156m France +9.2% Total Europe +8.9% Europe excluding France: France:  Central Europe: more than +15% L/L Q1 growth

  16. Slide 16: Q1 2017 Latin America Operating Revenue

    Q1 2017 – LATIN AMERICA OPERATING REVENUE A contrasted performance between Brazil and the rest of the region L/L growth Q1 Q1 2017 Brazil -0.9% operating revenue of total 43% operating revenue €130m Hispanic Latin America +37.2% Total Latin America +11.8% Brazil: Hispanic Latin America:  Mexico: mo

  17. Slide 17: Q1 2017 Financial Revenue

    Q1 2017 FINANCIAL REVENUE An increase in financial revenue in Latin America, partly offset by interest rate declines in Europe Q1 2016 Q1 2017 reported In €m L/L growth growth In €m Latin America 7 +14.8% +37.4% 10  Financial revenue decline in Europe, reflecting Europe 7 -9.9% -11.2% 6 negative tr

  18. Slide 18: Q1 2017 Total Revenue

    Q1 2017 TOTAL REVENUE Strong +9.6% L/L increase and +29.6% as reported, thanks to scope effects Q1 2016 €249m  €24m L/L total revenue increase Revenue Q1 2016 Q1 2017 Like-for-like +9.6% Reported In €m L/L growth growth In €m Operating revenue 233 +10.0% +30.7% 305 Financial revenue 16 +3.1% +12.7%

  19. Slide 19: Outlook

    | Outlook Edenred

  20. Slide 20: Confirmed Outlook

    CONFIRMED OUTLOOK 2017 guidance in line with Fast Forward medium-term targets 2017 expected business trends ▌ Europe: sustained growth ▌ Latin America:  Sustained growth in Hispanic Latin America  Contrasted growth patterns in Brazil  Employee Benefits impacted by peak in unemployment rate  Expe

  21. Slide 21: Appendices

    Appendices

  22. Slide 22: Total Operating Revenue

    TOTAL OPERATING REVENUE Q1 In € millions 2017 2016 Europe 156 128 France 50 45 Rest of Europe 106 83 Latin America 130 88 Rest of the world 19 17 Operating revenue 305 233 Q1 Change Change In % reported L/L Europe 22.1% 8.9% France 11.7% 9.2% Rest of Europe 27.8% 8.8% Latin America 48.1% 11.8% Rest

  23. Slide 23: Employee Benefits

    EMPLOYEE BENEFITS L/L issue volume increase 11.2% 9.9% 8.2% 8.2% 8.5% 6.1% Q1 16 Q2 16 Q3 16 Q4 16 FY 16 Q1 17 23

  24. Slide 24: Financial Revenue

    FINANCIAL REVENUE Q1 In € millions 2017 2016 Europe 6 7 France 3 3 Rest of Europe 3 4 Latin America 10 7 Rest of the world 2 2 Financial revenue 18 16 Q1 Change Change In % reported L/L Europe -11.2% -9.9% France -8.5% -8.5% Rest of Europe -13.1% -10.8% Latin America 37.4% 14.8% Rest of the world -2

  25. Slide 25: Total Revenue

    TOTAL REVENUE Q1 In € millions 2017 2016 Europe 162 135 France 53 48 Rest of Europe 109 87 Latin America 140 95 Rest of the world 21 19 Total revenue 323 249 Q1 Change Change In % reported L/L Europe 20.3% 7.9% France 10.5% 8.1% Rest of Europe 25.7% 7.8% Latin America 47.2% 12.1% Rest of the world 6

  26. Slide 26: Average Exchange Rates

    AVERAGE EXCHANGE RATES 2017 vs. 2016 vs. 2016 vs. 2016 vs. 2016 vs. 2016 2015 2015 2015 2015 €1 = X foreign currency Q1 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Change Change Change Change Change (in % ) (in % ) (in % ) (in % ) (in % ) Bolivar Fuerte (VEF) 737.39 232.99 -68.4% 512.29 -57.3% 720.

  27. Slide 27: 2017 Expected Calendar Effects

    2017 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2017 Nb of Nb of Nb of Nb of Nb of Working days days days days days days Europe 2 -2 -1 0 -1 Latin America 3 -2 0 -2 -1 Rest of the world 0 -2 0 0 -2 TOTAL 2 -2 0 -1 -1 27

Edenred — Q1 2017 Earnings Presentation on 6ix