Edenred Sa · EURONEXT:EDEN
Edenred Sa — H1 2013 Earnings Presentation
23 slides from Edenred Sa's earnings presentation, Jul 24, 2013
Slide 1: H1 2013 Results
H1 2013 Results Press conference call July 24, 2013
Slide 2: H1 Key Figures & Highlights
H1 Key Figures & Highlights Chapter 1 Titre du document - date - Arial regular 8pts 2
Slide 3: H1 2013 Key Figures
H1 2013 Key Figures In € millions H1 L/L 2013 growth Issue volume 8,576 +11.0% Operating revenue 483 +7.4% Financial revenue 42 -5.8% Total revenue 525 +6.2% EBIT 172 +7.7% Funds from operations 143 +12.3% Strong H1 results, in line with the Group’s targets(1) (1) Normalized targets: +6% to +14% L/L
Slide 4: H1 2013 Highlights
H1 2013 Highlights New client gains Acquisitions +5.3%(1) +2.8%(2) and partnership Acquisitions made in H1: Examples of significant new contracts representing +135,000 new beneficiaries: Acquisition closed Entry in Columbia with the acquisition of Big Pass New country Business development in Expansi
Slide 5: Focus on the Frete Market: Repom acquisition completed
Focus on the Frete Market: Repom acquisition completed Leader in a high growth potential market Integration Successful closing on Feb. 28, 2013(1) 62% stake acquired for €53m Call option on the remaining 38% stake recognised in debt for €64m at June-end Recent trends Client fee 1% MasterCard ~
Slide 6: Focus on the acquisition of Opam, Mexico
Focus on the acquisition of Opam, Mexico Targeted acquisition Acquisition of OPAM 91% food vouchers Meal, gas cards, gift, public social programs Key Figures • More than 1,000 clients • 100% digital • Issue volume of more than €140m in 2012 • Consolidated in the P&L from July 2013(1) A targeted
Slide 7: Focus on Portugal
Focus on Portugal Favorable change in legislation inspired by other European models Maximum meal allowance exemption Today ~85% of employees still €7.26 €6.83 €6.83 have a cash meal allowance Voucher FOCUS +13% Cash +33% +60% Short term strategy to €6.41 gain significant volume Potential rapid shift
Slide 8: H1 2013 Results
H1 2013 Results Chapter 2 Titre du document - date - Arial regular 8pts 8
Slide 9: Issue Volume: €8,576m
H1 2013 Issue Volume: €8,576m Like-for-like Issue Volume (L/L) +11.0% €864m 12,2% 11,0% 11,0% 10,4% 10,5% 10,1% Scope(1) 9,8% +2.8% 8,5% €221m Currency -4.8% €(374)m Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 H1 13 Reported +9.0% €711m Issue volume up +11.0% L/L in H1, reflecting the dynamism of emer
Slide 10: Latin America – H1 2013 Issue Volume: €4,603m
Latin America – H1 2013 Issue Volume: €4,603m Issue Volume L/L Growth Q1 Q2 H1 Brazil +16.9% +11.0% +13.9% Hispanic Latin America +21.8% +27.8% +24.9% TOTAL +18.8% +17.9% +18.4% Latin America: Very good sales performance in a favorable economic environment (salary increases and formal job creation
Slide 11: Europe – H1 2013 Issue Volume: €3,652m
Europe – H1 2013 Issue Volume: €3,652m Issue Volume L/L Growth Q1 Q2 H1 France -0.2% +7.9% +3.7% Rest of Europe -0.3% +4.5% +2.1% TOTAL -0.3% +5.7% +2.7% ► Calendar effect: on average, 2.8% fewer working days in Q1, neutral impact in Q2. France: good performance in H1 thanks to the gain of new Tic
Slide 12: Contribution of Growth Drivers to H1 2013 Issue Volume
Contribution of Growth Drivers to H1 2013 Issue Volume New geographies H1 2013 organic issue volume growth 11.0% Targeted contribution of 1% to 2% from 2015 3 new countries opened, of which Finland in 2011, Japan(1) in 2012 and = Colombia(2) in 2013 Enter new 4 0.0% New solutions geographies +2.
Slide 13: Operating Revenue: €483m
H1 2013 Operating Revenue: €483m Operating Revenue Growth (L/L) 7,8% 8,0% 8,1% 7,7% 7,2% 7,5% 7,4% 6,7% Like-for-like +8.0% x% +7.4% €34m Scope(1) +1.4% -4.7% €7m Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1 13 Q2 13 H1 13 With IV (2) +9.4% +9.2% +8.2% +9.2% +9.0% +8.0% +8.1% +8.1% Without IV +0.3% -4.3% +6.5%
Slide 14: Operating Revenue Growth
H1 2013 Operating Revenue Growth Operating Revenue L/L Growth Operating Revenue with IV(2) by Type of Revenue L/L Growth by Region Q1 Q2 H1 Q1 Q2 H1 Latin America +15.0% +11.8% +13.4% With issue +8.0% +8.1% +8.1% volume Europe -0.1% +3.4% +1.6% Without issue +4.8% +1.0% +3.1% volume(1) Rest of the w
Slide 15: Financial Revenue: €42m
H1 2013 Financial Revenue: €42m Financial Revenue Growth (L/L) 10,4% Financial Revenue L/L Growth Q1 Q2 H1 4,5% 3,2% Latin America -0.6% +10.6% +4.7% 0,9% -2,1% Europe -10.7% -16.3% -13.4% Rest of the world -4.0% -10.4% -7.3% -6,3% -5,2% -5,8% TOTAL -6.3% -5.2% -5.8% Q1 12 Q2 12 Q3 12 Q4 12 FY 12 Q1
Slide 16: EBIT: €172m
H1 2013 EBIT: €172m June June Change Change In € millions 2012 2013 reported L/L Operating revenue 465 483 +3.8% +7.4% Financial revenue 46 42 -7.6% -5.8% Total revenue 511 525 +2.8% +6.2% Operating EBIT 124 130 +4.6% +12.5% Financial EBIT 46 42 -7.6% -5.8% Total EBIT 170 172 +1.4% +7.7% Operating E
Slide 17: Flow-through ratio
Flow-through ratio(1) Operating Financial Digital Currency effect revenue revenue and changes L/L∆: €34m Extra costs L/L∆: €(2)m in scope Flow-through Flow-through ratio ratio 51% 100% H1 2012 EBIT H1 2013 EBIT (reported) €(2)m (reported) €17m €(2)m €170m €(11)m €172m of which: • Currency: €(12)m(2)
Slide 18: Net Profit
Net Profit June June In € millions 2012 2013 EBIT 170 172 Net financial expense (20) (22) Operating profit before tax and non-recurring items 150 150 Non-recurring income and expenses, net (1) (8) (1) Income tax expense (40) (46) Minority interests (9) (7) Net profit, Group share 100 89 Recurring pr
Slide 19: Sound Financial Position
Sound Financial Position In € millions June 2012 Dec. 2012 June 2013 Gross debt 1,419 1,303 1,298 Other financial liabilities 141 85 244 (1) Cash and current financial assets (1,148) (1,473) (1,017) Net debt 412 (85) 525 (2) (3) (2) Adjusted FFO/Adjusted net debt(2) 38% 95% 38% Financial profile ref
Slide 20: 2013 Outlook
2013 Outlook Chapter 3
Slide 21: FY 2013 Outlook and Guidance
FY 2013 Outlook and Guidance H2 TOPLINE Similar trends as in H1, in terms of business and financial revenue TRENDS CONFIRMATION OF L/L Operating EBIT: Digital extra costs: FY TARGETS ≥50% flow-through(1) €(5)m VEF/$ BRL/€ IMPACT OF CURRENCY 2012 rate 5.3 2.51 ASSUMPTIONS 2013 expected rate 6.3 2.7
Slide 22: Conclusion
Conclusion Chapter 4 Titre du document - date - Arial regular 8pts 22
Slide 23: Our Long-term Strategy
Our Long-term Strategy Invent 2016 Benefit solutions strategy: enrich our benefit programs with services Expense management strategy: roll-out expense 2016 management solutions Invent A/B strategy: develop solutions for Affiliates & Beneficiaries 2012 Conquer Conquer 2012 Organic Growth Stra