Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — Investor Day (June 2018)
129 slides from Elior Group Sa's investor day presentation, Jun 26, 2018
Slide 1: Investor Day Elior Group 2021
INVESTOR DAY ELIOR GROUP 2021
Slide 2: Introduction
INTRODUCTION Tuesday, June 26, 2018 ELIOR GROUP
Slide 3: Tuesday, June 26, 2018 ELIOR GROUP
Tuesday, June 26, 2018 ELIOR GROUP
Slide 4: A Story of Success
A STORY OF SUCCESS 1991 1993 1995 1997 1999 1 2,300 9,500 €0.5bn COUNTRY RESTAURANTS AND EMPLOYEES IN REVENUE Tuesday, June 26, 2018 POINTS OF SALE ELIOR GROUP
Slide 5: A Story of Success
A STORY OF SUCCESS 2004 2000 2002 5 8,500 37,000 €1.819bn COUNTRIES RESTAURANTS AND EMPLOYEES IN REVENUE Tuesday, June 26, 2018 POINTS OF SALE 5 ELIOR GROUP
Slide 6: A Story of Success
A STORY OF SUCCESS 2006 2008 2010 2012 2014 2016 12 12,600 60,000 €3.002bn COUNTRIES RESTAURANTS AND EMPLOYEES IN REVENUE Tuesday, June 26, 2018 POINTS OF SALE 6 ELIOR GROUP
Slide 7: A Story of Success
A STORY OF SUCCESS 2017 16 25,000 127,000 €6.422bn COUNTRIES RESTAURANTS AND EMPLOYEES IN REVENUE Tuesday, June 26, 2018 POINTS OF SALE ELIOR GROUP
Slide 8: A New Chapter: Elior Group 2021
A NEW CHAPTER: ELIOR GROUP 2021 AMBITIONS Organic growth above 3% per annum on average and external growth fueled by bolt-on acquisitions in the US Capitalize on our current activities and Adjusted EBITA growth double that of organic growth footprint Cumulative operating free cash flow of €750m over
Slide 9: Strong Positions to Leverage
STRONG POSITIONS TO LEVERAGE 4 3 1 IN CONTRACT IN CONCESSION IN CLEANING CATERING CATERING SERVICES FOR WORLDWIDE WORLDWIDE THE HEALTHCARE MARKET IN 5 FRANCE 3 1 1 1 1 1 2 1 3 3 2 Tuesday, June 26, 2018 ELIOR GROUP
Slide 10: A Redesigned Group Organization
A REDESIGNED GROUP ORGANIZATION CHIEF EXECUTIVE OFFICER Innovation Plan CONTRACT CATERING CONTRACT CATERING CONCESSION CATERING CHIEF FINANCIAL OFFICER SERVICES EUROPE NORTH AMERICA (AREAS) CHIEF PROCUREMENT & CC France Areas Iberia LOGISTICS OFFICER CHIEF INFORMATION CC Italy Areas Italy & DIGITAL
Slide 11: A Reinforced Executive Team
A REINFORCED EXECUTIVE TEAM Europe CEO BRIAN POPLIN GILLES RAFIN OSCAR VELA Recruitement Elior North America Elior Services Areas worldwide underway President and CEO President CEO ESTHER GAIDE RUXANDRA ISPAS BERNARD BENOÎT CORNU Chief Human Group Chief Group Chief DUVERNEUIL Group Chief Resources O
Slide 12: A Mission Reaffirmed
A MISSION REAFFIRMED FEED AND TAKE CARE OF PEOPLE FROM NURSERIES TO CARE HOMES Tuesday, June 26, 2018 ELIOR GROUP
Slide 13: Today's Agenda
TODAY’S AGENDA 1 2 3 4 ELIOR GROUP LIVE DISCOVERY OF 3-YEAR PLAN LEVERS AND MARKETS AND OUR B&I CONTRACT AMBITIONS AND INITIATIVES OPPORTUNITIES CATERING CONCEPTS EXECUTION Tuesday, June 26, 2018 ELIOR GROUP
Slide 14: Elior Group Markets and Opportunities
ELIOR GROUP MARKETS AND OPPORTUNITIES Tuesday, June 26, 2018 ELIOR GROUP
Slide 15: Contract Catering
CONTRACT CATERING PHILIPPE GUILLEMOT ELIOR GROUP CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 16: A Multi-Local Leader in Continental Europe
A MULTI-LOCAL LEADER IN CONTINENTAL EUROPE FRANCE I T A LY SPA IN MARKET SIZE €4bn €6bn €9bn €2bn €2bn €2.5bn €1bn €1bn €2bn OUTSOURCED 74% 31% 27% 78% 70% 48% 52% 64% 37% SELF-OPERATED 26% 69% 73% 22% 30% 52% 48% 36% 63% POSITION 1 1 2 1 3 1 1 1 2 Tuesday, June 26, 2018 Source: Elior internal estim
Slide 17: A Fast-Growing Challenger on High-Potential Markets
A FAST-GROWING CHALLENGER ON HIGH-POTENTIAL MARKETS UNITED KINGDOM INDIA U N I T E D S TAT E S MARKET SIZE €10bn €5bn $132bn OUTSOURCED 56% 37% 37% Since 2017 Since 2013 Since SELF-OPERATED 44% 1993 63% 63% POSITION 4 3 5 Source: Elior internal estimates ELIOR GROUP Tuesday, June 26, 2018
Slide 18: Our Sources of Competitiveness
OUR SOURCES OF COMPETITIVENESS MARKET TRENDS FOOD INNOVATION NEW GROWTH CENTRAL ROSARIO AMBROSINO Elior Italy CEO PETER JOYNER Elior UK Food Developement Director OPPORTUNITIES KITCHENS VÉRONIQUE MOURIER ANTONIO LLORENS PIERRE VON ESSEN Elior France Nutritionist Serunion CEO Elior France CEO Tuesday
Slide 19: Market Trends
MARKET TRENDS ROSARIO AMBROSINO ELIOR ITALY CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 20: Market Trends Across Segments
MARKET TRENDS ACROSS SEGMENTS HEALTHY AND FOOD SAFETY TRANSPARENCY DIGITAL-ENABLED LOCAL FOOD SERVICES Tuesday, June 26, 2018 ELIOR GROUP
Slide 21: Business & Industry Market Trends
BUSINESS & INDUSTRY MARKET TRENDS • Work environment evolution • Rise of millennials • Fragmentation of consumption • Fast and flexible food offers all day long • Grab & go concepts • Click & collect apps • Fast-casual hybrid concepts Tuesday, June 26, 2018 ELIOR GROUP
Slide 22: Healthcare Market Trends
HEALTHCARE MARKET TRENDS • Shorter stays in hospitals • Ageing population • Hospitals as services hubs • More seniors at home • End-to-end patient journey offer • New delivery models Tuesday, June 26, 2018 ELIOR GROUP
Slide 23: Education Market Trends
EDUCATION MARKET TRENDS • Stronger social responsibility • Locally-sourced and safe food at low price point • Healthy meals offers with strong focus on waste management • Attractive concepts for youngsters Tuesday, June 26, 2018 ELIOR GROUP
Slide 24: Food Innovation
FOOD INNOVATION PETER JOYNER VÉRONIQUE MOURIER ELIOR UK FOOD DEVELOPEMENT DIRECTOR ELIOR FRANCE NUTRIONIST Tuesday, June 26, 2018 ELIOR GROUP
Slide 25: Chefs at the Heart of Our Company
CHEFS AT THE HEART OF OUR COMPANY OVER 8,500 CHEFS PARTNERSHIPS WITH CHEFS ACADEMIES RENOWNED CHEFS Tuesday, June 26, 2018 ELIOR GROUP
Slide 26: Constant Culinary Innovation
CONSTANT CULINARY INNOVATION SOURCING AND COOKING RECIPES FOOD DESIGN PRODUCTS TECHNIQUES AND CONCEPT Tuesday, June 26, 2018 ELIOR GROUP
Slide 27: Gustave Roussy
CASE STUDY GUSTAVE ROUSSY EXCELLENCE IN PATIENT CARE Chef Alexandre Bourdas (SaQuaNa**) Tuesday, June 26, 2018 ELIOR GROUP
Slide 28: Gustave Roussy
CASE STUDY GUSTAVE ROUSSY EXCELLENCE IN PATIENT CARE Tuesday, June 26, 2018 ELIOR GROUP
Slide 29: New Growth Opportunities
NEW GROWTH OPPORTUNITIES ANTONIO LLORENS SERUNION CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 30: Share of Stomach
SHARE OF STOMACH NEW PATTERNS OF CONSUMPTION SHORTER LUNCH BREAKS FRAGMENTATION ON-THE-GO OF CONSUMPTION BREAKFAST BOOM Tuesday, June 26, 2018 ELIOR GROUP
Slide 31: Share of Stomach
SHARE OF STOMACH INCREASE REVENUE PER GUEST Tuesday, June 26, 2018 ELIOR GROUP
Slide 32: Silver Economy
SILVER ECONOMY AGEING POPULATION BETWEEN AUTONOMY AND DEPENDENCE Outsourced seniors market growing In France, 2 million seniors living at from €6bn to €11bn by 2022 home have difficulties preparing meals Sources: Alliance Bernstein, INSEE. Tuesday, June 26, 2018 ELIOR GROUP
Slide 33: Silver Economy
SILVER ECONOMY GROW IN CARE HOMES AND MEALS ON WHEELS Tuesday, June 26, 2018 ELIOR GROUP
Slide 34: Small & Medium Businesses
SMALL & MEDIUM BUSINESSES MAJOR EMPLOYERS COMPETING FOR TALENT 67% of employees A blue ocean of €53bn Same healthy offer in Europe* in subsidized markets and value for money in Europe as large companies *France, Italy and Spain. Sources: GIRA, INSEE. Tuesday, June 26, 2018 ELIOR GROUP
Slide 35: Small & Medium Businesses
SMALL & MEDIUM BUSINESSES DEPLOY FLEXIBLE AND KITCHEN-LESS CONCEPTS Tuesday, June 26, 2018 ELIOR GROUP
Slide 36: Central Kitchens
CENTRAL KITCHENS PIERRE VON ESSEN ELIOR FRANCE CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 37: A Key Asset to Meet Market Expectations
A KEY ASSET TO MEET MARKET EXPECTATIONS NEW MARKETS GLOBAL TRENDS Tuesday, June 26, 2018 ELIOR GROUP
Slide 38: A Unique Network
A UNIQUE NETWORK 100+ CENTRAL KITCHENS 105m MEALS / YEAR Tuesday, June 26, 2018 ELIOR GROUP
Slide 39: An Adequate Infrastructure
AN ADEQUATE INFRASTRUCTURE Location vs. market More multi-market Production Innovation in needs facilities capacities equipment and processes Tuesday, June 26, 2018 ELIOR GROUP
Slide 40: Leader Behavior in Continental Europe
LEADER BEHAVIOR IN CONTINENTAL EUROPE 1 STRONG LEADING UNIQUE EXPERTISE DISCIPLINED EXECUTION POSITIONS AND ASSETS CONSOLIDATE LEADERSHIP AND EXPLORE NEW GROWTH AREAS Tuesday, June 26, 2018 ELIOR GROUP
Slide 41: Challengers in Fast-Growing Markets
CHALLENGERS IN FAST-GROWING MARKETS Tuesday, June 26, 2018 ELIOR GROUP
Slide 42: Challengers in Fast-Growing Markets
CHALLENGERS IN FAST-GROWING MARKETS ELIOR UK ELIOR INDIA ELIOR NORTH AMERICA CATHERINE ROE SANJAY KUMAR BRIAN POPLIN Elior UK CEO Elior India CEO Elior North America President and CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 43: Contract Catering UK
CONTRACT CATERING UK CATHERINE ROE ELIOR UK CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 44: Sustained Growth to #4 Position
SUSTAINED GROWTH TO #4 POSITION 2014-2015 ACQUISITIONS 2017-2018 4 5 663 1,660 14,000 CLIENTS SITES EMPLOYEES Tuesday, June 26, 2018 ELIOR GROUP
Slide 45: Scale Reached in Our 3 Segments
SCALE REACHED IN OUR 3 SEGMENTS BUSINESS & INDUSTRY EDUCATION HEALTHCARE POSITION IN 3 IN 1 CARE LONDON 5 HOMES 4 5 OPERATED BRANDS Regional Business University clients: NHS retail and staff feeding: & Industry clients: Tuesday, June 26, 2018 ELIOR GROUP
Slide 46: Constant Innovation and Customer Focus
CONSTANT INNOVATION AND CUSTOMER FOCUS Tuesday, June 26, 2018 ELIOR GROUP
Slide 47: Ambitious Growth in a Highly Competitive Market in Europe
AMBITIOUS GROWTH IN A HIGHLY COMPETITIVE MARKET IN EUROPE FOOD AND CUSTOMER COMPLEMENTARY OUTSOURCING SERVICE PEOPLE SERVICES OPPORTUNITIES OUTPACE MARKET GROWTH Tuesday, June 26, 2018 ELIOR GROUP
Slide 48: Contract Catering India
CONTRACT CATERING INDIA SANJAY KUMAR ELIOR INDIA CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 49: An Emerging and Promising Market
AN EMERGING AND PROMISING MARKET ~€5bn growing Low outsourcing Very fragmented Positive economic at 17% per year ratio market environment Tuesday, June 26, 2018 ELIOR GROUP
Slide 50: Straight to #3 Position
STRAIGHT TO #3 POSITION MEGABITE CRCL 165,000 Founded in 2005 Founded in 1983 100 SITES MEALS / DAY Leader on premium 4th largest catering B&I corporate segment company in India in India BHOPAL 4,000 EMPLOYEES MUMBAI AMRAVATI BANGALORE CHENNAI 40% 6 CENTRAL KITCHENS COMBINED GROWTH Tuesday, June 26,
Slide 51: A Focused Development Plan
A FOCUSED DEVELOPMENT PLAN Food services only Further develop Innovate to stay Grow selectively current B&I footprint ahead in premium in private segments education A SELF-FUNDED GROWTH OUTPACING THE MARKET Tuesday, June 26, 2018 ELIOR GROUP
Slide 52: Contract Catering North America
CONTRACT CATERING NORTH AMERICA BRIAN POPLIN ELIOR NORTH AMERICA PRESIDENT AND CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 53: The Largest Market with Promising Perspectives
THE LARGEST MARKET WITH PROMISING PERSPECTIVES $132bn Outsourcing ratio Structural growth Market structure growing at 2.5%+ <40% drivers in all that plays to our segments strengths Tuesday, June 26, 2018 ELIOR GROUP
Slide 54: A Balanced Portfolio of Brands and Segments
A BALANCED PORTFOLIO OF BRANDS AND SEGMENTS Small Enough to Care… and… Big Enough to Make a Difference Elior acquires Introduction of Elior brand Gourmet Organic growth Holdings Acquisitions 2013 2015 Functional integration 2018 Education - 2014 Universities 12% Business Dining 4% Education - 8 30%
Slide 55: Key Differentiators
KEY DIFFERENTIATORS CULINARY EXEMPLARY LOCAL TEAMS, INNOVATION SERVICE GLOBAL RESOURCES Tuesday, June 26, 2018 ELIOR GROUP
Slide 56: Structure for Future Growth
STRUCTURE FOR FUTURE GROWTH POSITION Niche markets evolving to unique positioning ACQUISITIONS Geography – Segment position - Market expansion B&I / CULTURAL CORRECTIONS K-12 / SENIOR NUTRITION HEALTHCARE Tuesday, June 26, 2018 ELIOR GROUP
Slide 57: A Unique Production Infrastructure
A UNIQUE PRODUCTION INFRASTRUCTURE Central kitchen Central production facility Tuesday, June 26, 2018 ELIOR GROUP
Slide 58: What We've Achieved
WHAT WE’VE ACHIEVED 1 Retention Rate People Development Win Rate Accelerated Growth 2 Client Prestige 3x Organic Growth Operational Strategic Initiatives Excellence 3 Margin Expansion Transformational 4 Contract Size Projects Portfolio Transformation 5 Double Market Share Tuesday, June 26, 2018 ELIO
Slide 59: Looking Ahead
LOOKING AHEAD People • U.S. labor market challenges Development • Internal promotions • Confirmed external acquisition targets Accelerated • Continued focus on market-leading Growth organic growth OUTPACE MARKET Operational • Disciplined menu management GROWTH AND CONTINUE Excellence • Food and labo
Slide 60: Elior Services
ELIOR SERVICES GILLES RAFIN ELIOR SERVICES PRESIDENT Tuesday, June 26, 2018 ELIOR GROUP
Slide 61: Leader in the Largest Services Market in France
LEADER IN THE LARGEST SERVICES MARKET IN FRANCE POTENTIAL MARKET OUTSOURCING RATE MARKET GROWTH €25bn 55% +3% Source: Elior internal estimate. Tuesday, June 26, 2018 ELIOR GROUP
Slide 62: A Strong Know-How in Three Fields of Expertise
A STRONG KNOW-HOW IN THREE FIELDS OF EXPERTISE HOSPITALITY SERVICES CLEANING AND SENSITIVE IN HEALTHCARE ENVIRONMENTS FACILITY MANAGEMENT No.1 500 40 No.1 2,000 50 250 20 IN CLEANING REFERENCES YEARS OF IN HOTELS REFERENCES YEARS OF REFERENCES YEARS OF SERVICES EXPERIENCE MARKET EXPERIENCE EXPERIENC
Slide 63: Differentiation Through Innovation
DIFFERENTIATION THROUGH INNOVATION Tuesday, June 26, 2018 ELIOR GROUP
Slide 64: Synergies with Contract Catering in Healthcare
SYNERGIES WITH CONTRACT CATERING IN HEALTHCARE Global offer with contract 200+ clients (30% of business) catering for Healthcare clients Tuesday, June 26, 2018 ELIOR GROUP
Slide 65: Ramsay Générale de Santé
CASE STUDY RAMSAY GÉNÉRALE DE SANTÉ LEADING PRIVATE HOSPITAL GROUP Tuesday, June 26, 2018 ELIOR GROUP
Slide 66: Ambitions for 2021
AMBITIONS FOR 2021 End-to-end patient Strengthened expertise in Specific approach journey offer Facility Management on markets with low in Healthcare outsourcing level MAINTAIN PROFITABLE GROWTH WITH STRONG CASH FLOW CONVERSION Tuesday, June 26, 2018 ELIOR GROUP
Slide 67: Areas
AREAS OSCAR VELA AREAS WORLDWIDE CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 68: Areas at a Glance
AREAS AT A GLANCE MARKET No.3 €1.8bn €25-28bn WORLDWIDE AREAS 2017 REVENUE TOTAL MARKET SIZE Others Latam 10% Airports 6% Europe 46% 81% USA PROMISING TRAFFIC TRENDS Railway 13% Stations 12% Airports passengers Italy 2017-2034 CAGR: +3.6% 10% Railways passengers N. Europe 44% 2015-2025 CAGR: +3.2% M
Slide 69: Areas at a Glance
AREAS AT A GLANCE KEY FIGURES 14 21,000 89 84 220 330m COUNTRIES EMPLOYEES AIRPORTS RAILWAY MOTORWAY CUSTOMERS IN 14 COUNTRIES STATIONS PLAZAS EACH YEAR Tuesday, June 26, 2018 ELIOR GROUP
Slide 70: Areas at a Glance
AREAS AT A GLANCE BEST PARTNERS BEST PARTNERS (LANDLORDS) BEST PARTNERS (BRANDS) Tuesday, June 26, 2018 ELIOR GROUP
Slide 71: One Business, Two Stories of Success
ONE BUSINESS, TWO STORIES OF SUCCESS ONE COMMON STRATEGY REINFORCE GROW LEADERSHIP Team Customer Operational Growth Excellence EUROPE NORTH & SOUTH AMERICA BALANCED & PROFITABLE LEADERSHIP Tuesday, June 26, 2018 ELIOR GROUP
Slide 72: Leader in France, Spain & Italy
LEADER IN FRANCE, SPAIN & ITALY NORTHERN EUROPE SPAIN AND PORTUGAL ITALY 1 1 1 AREAS POSITION IN FRANCE 3 IN AIRPORTS 2019-2021 REVENUE ALREADY CONTRACTED ~80% ~80 % ~50 % Tuesday, June 26, 2018 ELIOR GROUP
Slide 73: Growing Challenger in USA & Latam
GROWING CHALLENGER IN USA & LATAM USA LATIN AMERICA 3 2 AREAS POSITION IN MEXICO & CHILE 2019-2021 REVENUE ALREADY CONTRACTED >90% >70% Tuesday, June 26, 2018 ELIOR GROUP
Slide 74: Boosting Free Cash Flow
BOOSTING FREE CASH FLOW 60% CONVERSION RATE Operational free cash flow / EBITDA Tuesday, June 26, 2018 ELIOR GROUP
Slide 75: Florida Turnpike
CASE STUDY FLORIDA TURNPIKE OUR FIRST SUCCESSFUL VENTURE IN US MOTORWAYS Okahumpka Okahumpka Turkey Lake Turkey Lake Canoe Creek Canoe Creek Fort Drum Fort Pierce Fort Pierce West Palm Beach West Palm Beach Pompano Pompano Snapper Creek Snapper Creek Tuesday, June 26, 2018 ELIOR GROUP
Slide 76: Gare du Nord
CASE STUDY GARE DU NORD THE BIGGEST TENDER EVER WON IN FRENCH STATIONS Tuesday, June 26, 2018 ELIOR GROUP
Slide 77: Barcelona Airport
CASE STUDY BARCELONA AIRPORT DOUBLING OUR PRESENCE IN A FAST-GROWING TOURIST-HUB IN SPAIN BEFORE BEFORE BEFORE BEFORE BEFORE Tuesday, June 26, 2018 ELIOR GROUP
Slide 78: Elior Group 2021: We're Prepared!
ELIOR GROUP 2021: WE’RE PREPARED! A worldwide organization managed globally prepared for future challenges EUROPE AMERICA Selective and Profitable STRATEGICALLY ALIGNED Leadership FCF Profitable Business FCF Development SOLID 75% 2019-2021 REVENUE ALREADY CONTRACTED 88% ~90% 2019-2021 REVENUE ALREAD
Slide 79: Levers and Initiatives
LEVERS AND INITIATIVES Tuesday, June 26, 2018 ELIOR GROUP
Slide 80: Culture of Progress
CULTURE OF PROGRESS OPERATIONS SUPPORT FUNCTIONS Marketing and Culture Maturity map innovation initiatives Selection of progress Tools of end-markets Processes Best practices Tuesday, June 26, 2018 ELIOR GROUP
Slide 81: Our Initiatives
OUR INITIATIVES FINANCE PEOPLE IT & Innovation CLIENTS DIGITAL CSR ON-SITE MENU-TO- ORGANIZATION SOURCING EFFICIENCY VALUE CHAIN Tuesday, June 26, 2018 ELIOR GROUP
Slide 82: Innovation Turned into Reality
INNOVATION TURNED INTO REALITY TIME HORIZON THINK TEST DO 10+ YEARS 5+ YEARS 3 YEARS Time to reality Challenge Start-up program TARGETS Guests Clients Employees Tuesday, June 26, 2018 ELIOR GROUP
Slide 83: CSR Value Chain
CSR VALUE CHAIN Tuesday, June 26, 2018 ELIOR GROUP
Slide 84: Elior Group Positive Foodprint Plan
ELIOR GROUP POSITIVE FOODPRINT PLAN Tuesday, June 26, 2018 ELIOR GROUP
Slide 85: Initiatives' Leaders
INITIATIVES’ LEADERS PEOPLE CLIENT DEVELOPMENT “MENU TO SOURCING” MIREILLE BOU ANTOUN & RETENTION VALUE CHAIN BRIAN POPLIN RUXANDRA ISPAS ON-SITE ORGANIZATION IT & DIGITAL FINANCE EFFICIENCY BERNARD DUVERNEUIL ESTHER GAIDE PIERRE VON ESSEN FRÉDÉRIC LÉZY Tuesday, June 26, 2018 ELIOR GROUP
Slide 86: People
PEOPLE MIREILLE BOU ANTOUN ELIOR GROUP VP TALENT Tuesday, June 26, 2018 ELIOR GROUP
Slide 87: A People Company with Strong Ambitions
A PEOPLE COMPANY WITH STRONG AMBITIONS HEALTH & TALENT SAFETY INCENTIVES Tuesday, June 26, 2018 ELIOR GROUP
Slide 88: A Company That Exceeds Health & Safety Industry Standards
A COMPANY THAT EXCEEDS HEALTH & SAFETY INDUSTRY STANDARDS HEALTH & SAFETY CULTURE TRAINING AND COMMUNICATION KPI STANDARDIZATION AND FOLLOW-UP TODAY Tuesday, June 26, 2018 ELIOR GROUP
Slide 89: A Place Where People Can Learn and Grow
A PLACE WHERE PEOPLE CAN LEARN AND GROW Tuesday, June 26, 2018 ELIOR GROUP
Slide 90: Motivating Incentives Aligned with Group Strategy
MOTIVATING INCENTIVES ALIGNED WITH GROUP STRATEGY FROM CORPORATE TO OPERATIONS AD-HOC FRONT LINE INCENTIVES SHORT-TERM INCENTIVE SCHEME FUTURE (EMPLOYEE SHARE OWNERSHIP PLAN) LONG-TERM INCENTIVE PLAN (FOR TOP MANAGEMENT) Tuesday, June 26, 2018 ELIOR GROUP
Slide 91: Client Development and Retention
CLIENT DEVELOPMENT AND RETENTION BRIAN POPLIN ELIOR NORTH AMERICA PRESIDENT AND CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 92: Three Main Growth Drivers
THREE MAIN GROWTH DRIVERS DEVELOP NEW CLIENTS GROW OUR EXISTING RETAIN OUR CLIENTS INSTALLED CLIENT BASE >3% ORGANIC GROWTH ON AVERAGE PER YEAR Tuesday, June 26, 2018 ELIOR GROUP
Slide 93: Best Practices to Leverage Across the Group
BEST PRACTICES TO LEVERAGE ACROSS THE GROUP DEVELOP TALENTED TEAMS STRUCTURE PROCESSES • Professionalization and training • Selling methodology / stage-gate sales process • Collaboration between sales and operations • Standardized offers and solid concepts portfolio • Dedicated retention team • Rete
Slide 94: Ambitions Supported by Global Tools
AMBITIONS SUPPORTED BY GLOBAL TOOLS Marketing automation Social selling B2C digital initiatives Next-gen client portal Common CRM tool to manage new business and retention TODAY Tuesday, June 26, 2018 ELIOR GROUP
Slide 95: Menu-to-Sourcing Value Chain
MENU-TO- SOURCING VALUE CHAIN RUXANDRA ISPAS ELIOR GROUP CHIEF PROCUREMENT AND LOGISTICS OFFICER Tuesday, June 26, 2018 ELIOR GROUP
Slide 96: A Fast-Changing Environment
A FAST-CHANGING ENVIRONMENT SOURCING TECHNOLOGY ALTERNATIVE GROWTH ENVIRONMENT REVOLUTION DRIVERS Tuesday, June 26, 2018 ELIOR GROUP
Slide 97: Elior Group Paradox
ELIOR GROUP PARADOX Saving as % of spend by BU Robust practices and State-of-the-art software Valuable distributor Aggregation of selected proven successes… solutions… partnerships… categories… but strong dispersion but slow adoption but low agility and but limited cross-border scalability procureme
Slide 98: The Supply Chain We Want
THE SUPPLY CHAIN WE WANT Starting with Forward- Delivering Maximizing Building customer needs looking and consistently benefit from supplier mitigating risk size and alliances for presence growth Tuesday, June 26, 2018 ELIOR GROUP
Slide 99: Our Strategy to Win
OUR STRATEGY TO WIN ADOPTION Enhance menu relevance and superiority Strengthen our Deploy Group supply chain repository of processes TODAY Tuesday, June 26, 2018 ELIOR GROUP
Slide 100: On-Site Organization Efficiency
ON-SITE ORGANIZATION EFFICIENCY PIERRE VON ESSEN ELIOR FRANCE CEO Tuesday, June 26, 2018 ELIOR GROUP
Slide 101: Challenges of Our On-Site Operations
CHALLENGES OF OUR ON-SITE OPERATIONS DISPERSION DIVERSITY EXTERNAL COMPETITIVE EVOLUTION PRESSURE INTENSITY OF FRONTLINE JOB ROLES Tuesday, June 26, 2018 ELIOR GROUP
Slide 102: Efficiency Enablers
EFFICIENCY ENABLERS Labor planning Focus on value ORGANIZATION TOOLS INFRASTRUCTURE PROCESSES Tuesday, June 26, 2018 ELIOR GROUP
Slide 103: Maturity Map
MATURITY MAP Equipment upgrade Site opening workflow Processes optimization Network speed enhancement TODAY Tuesday, June 26, 2018 ELIOR GROUP
Slide 104: IT & Digital
IT & DIGITAL BERNARD DUVERNEUIL FRÉDÉRIC LÉZY ELIOR GROUP CHIEF INFORMATION HEAD OF DIGITAL AND DIGITAL OFFICER Tuesday, June 26, 2018 ELIOR GROUP
Slide 105: A Reviewed and Structured IT Master Plan
A REVIEWED AND STRUCTURED IT MASTER PLAN Top line, increase Direction of the project stages turn over END NEW2025 TO 2029-2030 ROADMAP Wiiish Tegara OGUMA GRM • €60m investment Performance Satisfaction Labor costs SCALABILITY monitoring Joy f ood client NPS Cry stal ORB Tsubaki efficiency Time Chef
Slide 106: Project Portfolio Secured by Tight Processes and Governance
PROJECT PORTFOLIO SECURED BY TIGHT PROCESSES AND GOVERNANCE Governance Security Digital / Innovation Infrastructure Application globalization harmonization Data GATE PROCESSES CLEAR PRIORITIES AND AMBITIONS: AND DECISION BODIES STRENGTHEN AND INNOVATE Tuesday, June 26, 2018 ELIOR GROUP
Slide 107: Our Convictions on Digital
OUR CONVICTIONS ON DIGITAL DATA IS THE FUEL OF SUCCESS INCREASE REVENUES DATA AT THE HEART OF CONSUMER KNOWLEDGE ELIOR GROUP MAKE IS KEY TRANSFORMATION OPTIMIZE ELIOR GROUP VARIABLE THE CATERING COSTS INDUSTRY'S DIGITIZATION ALLOWS SCOUT NEW TECHNOLOGIES US TO FOCUS ON LIFT AND SHIFT BENCHMARK VALUA
Slide 108: Group Digital Roadmap
GROUP DIGITAL ROADMAP Develop targets Enhance targets’ Engage in personalized knowledge experiences relationships ENABLE DATA COLLECTION LEVERAGE POWER OF DATA 2016 2017 2018 2019 2020 2021 THINK, DESIGN AND TEST DEVELOP, DEPLOY AND SCALE • Back to basics required Short term: focus on key Mid & long
Slide 109: Finance
FINANCE ESTHER GAIDE ELIOR GROUP CHIEF FINANCIAL OFFICER Tuesday, June 26, 2018 ELIOR GROUP
Slide 110: Our Mission
OUR MISSION RISK ANTICIPATION AND MITIGATION SUPPORT OPERATIONS OPTIMIZE TAX AND ARBITRATE ALLOCATION BALANCE SHEET OF RESOURCES CASH FLOW GENERATION AND VALUE CREATION Tuesday, June 26, 2018 ELIOR GROUP
Slide 111: Our Organization
OUR ORGANIZATION CENTRAL TEAMS GROUP CHIEF FINANCIAL OFFICER Financial controlling OPERATIONAL TEAMS Consolidation CC France Tax CFO Concession CC India Services CFO Catering CFO Treasury & Financing CFO CC Italy Legal CFO CC Spain Insurance CFO Finance reports to finance CC UK M&A CFO Investor Rela
Slide 112: Our Methodology: From Monthly Reporting to Monthly Consolidated Closing
OUR METHODOLOGY: FROM MONTHLY REPORTING TO MONTHLY CONSOLIDATED CLOSING REACTIVITY CLOSER MONITORING OF CASH Tuesday, June 26, 2018 ELIOR GROUP
Slide 113: Our Key Financial Indicators
OUR KEY FINANCIAL INDICATORS ORGANIC WORKING OPERATING NON EBITA CAPEX GROWTH CAPITAL FCF RECURRING Available at BU level All BU CEOs accountable for those metrics Tuesday, June 26, 2018 ELIOR GROUP
Slide 114: Controlling: Contract Profitability
CONTROLLING: CONTRACT PROFITABILITY GROUP Monitoring and controlling Contract EBIT margin Country / BUs Arbitrating Monitoring and controlling Contract EBIT margin OPERATIONS Elaborating Monitoring and controlling Contract operating margin Tuesday, June 26, 2018 ELIOR GROUP
Slide 115: Return on Investment
RETURN ON INVESTMENT Procedure already Finite CAPEX CAPEX criteria Reinforced designed envelope investment committee Tuesday, June 26, 2018 ELIOR GROUP
Slide 116: Controlling: Monitoring of WCR
CONTROLLING: MONITORING OF WCR INVOICE ____________ ____________ ____________ _________ Inventories: limited room DSOs: already implemented DPOs: to be investigated for improvement – progress expected Tuesday, June 26, 2018 ELIOR GROUP
Slide 117: Tax Management
TAX MANAGEMENT Strong focus going forward Appointment of a Group tax manager Tuesday, June 26, 2018 ELIOR GROUP
Slide 118: Financing
FINANCING 100% floating Securitization 450 majority hedged until 2020 Private placement H1 2018 leverage: 3.5x net debt/EBITDA Revolving facility Covenants: Term loan • 4x net debt/EBITDA at September 30 • 4.5x net debt/EBITDA at 1,030 250 March 31 Cost of debt: c. €50m p.a. 360 340 100 150 EUR USD
Slide 119: 3-Year Plan Ambitions and Execution
3-YEAR PLAN AMBITIONS AND EXECUTION Tuesday, June 26, 2018 ELIOR GROUP
Slide 120: 3-Year Plan Pillars
3-YEAR PLAN PILLARS Improve free cash flow Address future selected Develop talented and generation growth areas performing teams Tuesday, June 26, 2018 ELIOR GROUP
Slide 121: Clear Mandates for Operations
CLEAR MANDATES FOR OPERATIONS Consolidate Outpace market Outpace market Maintain Get payback leadership and growth from growth and profitable on past explore new current base continue the growth and investments and growth areas build-up innovate grow selectively Tuesday, June 26, 2018 ELIOR GROUP
Slide 122: Our Path Towards 2021
OUR PATH TOWARDS 2021 Operating free cash flow • Organic growth above 3% per annum on average and external growth fueled by bolt-on acquisitions in the US • Adjusted EBITA growth double that of organic growth • Cumulative operating free cash €750m flow of €750m over the period, cumulative OFCF alloc
Slide 123: Uses of Cash
USES OF CASH OPERATING FREE CASH FLOW €750m cumulative 2019-2021 TAX FINANCIAL COSTS M&A DELEVERAGING DIVIDEND Focused on US Payout: 40% of contract catering Target below 3x net result 30% profit before tax in FY c.€50m p.a. Acquisition by the end of Option for script 2018 multiple below 2021 divide
Slide 124: Top 120 Executive Incentives
TOP 120 EXECUTIVE INCENTIVES Short-term incentives indexed on Long-term incentive plan based organic growth and operating FCF on EPS increase and TSR Tuesday, June 26, 2018 ELIOR GROUP
Slide 125: Guidance Confirmation for 2018
GUIDANCE CONFIRMATION FOR 2018 ADJUSTED EBITDA MARGIN BETWEEN 7.5% AND 7.8% ORGANIC GROWTH CAPEX WITHIN THE CLOSE TO 3% €300M ENVELOPE EBITA MARGIN BETWEEN 4.3% AND 4.6% Tuesday, June 26, 2018 ELIOR GROUP
Slide 126: Today's Takeaways
TODAY’S TAKEAWAYS 4 1 3 Strong fundamentals The right The agility of a Increase free cash and solid positions in organization strong local flow generation our three activities and team presence with the and allocate benefits of acting resources with as a Group discipline Tuesday, June 26, 2018 ELIOR
Slide 127: A New Chapter for 2018-2021
A NEW CHAPTER FOR 2018-2021 Tuesday, June 26, 2018 ELIOR GROUP
Slide 128: A New Chapter for 2018-2021
A NEW CHAPTER FOR 2018-2021 Tuesday, June 26, 2018 ELIOR GROUP
Slide 129: Investor Day Elior Group 2021
INVESTOR DAY ELIOR GROUP 2021