Slide 1: Elior Group FY 2016-2017 Results
FY 2016-2017 Results ELIOR GROUP FY 2016-2017 RESULTS Gilles Cojan - Chairman Pedro Fontana – Deputy CEO Olivier Dubois – CFO December 6, 2017 With the attendance of Philippe Guillemot - CEO
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 INTRODUCTION FY 2016-2017 FY 2016-2017 BUSINESS HIGHLIGHTS FINANCIAL PERFORMANCE 4 5 6 CONTRACT CATERING & CONCESSION CATERING OUTLOOK SERVICES 12/6/2017 3 Elior Group
Slide 4: Introduction
1 INTRODUCTION GILLES COJAN Group Chairman 12/6/2017 4 Elior Group
Slide 5: CEO Appointment: Philippe Guillemot
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK CEO APPOINTMENT: PHILIPPE GUILLEMOT BACKGROUND EXPERTISE • 2013-2016: COO Alcatel- • Decentralized and global Lucent organizations • 2010-2012:
Slide 6: Governance Evolution
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK GOVERNANCE EVOLUTION Shareholding as of November 30, 2017 • Dissociation of Chairman and CEO positions 6.5% • Appointment of Gilles Cojan as Cha
Slide 7: Elior Group Worldwide Market Positions
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK ELIOR GROUP WORLDWIDE MARKET POSITIONS No.4 IN CONTRACT CATERING WORLDWIDE No.3 IN CONCESSION CATERING WORLDWIDE No.1 IN FRANCE, ITALY & SPAIN N
Slide 8: FY 2016-2017 Business Highlights
2 FY 2016-2017 BUSINESS HIGHLIGHTS PEDRO FONTANA Group Deputy CEO 12/6/2017 8 Elior Group
Slide 9: FY 2016-2017 Achievements
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FY 2016-2017 ACHIEVEMENTS • Successful execution of development strategy – organic and external – mainly in the US • Strong business development
Slide 10: Focus on Development in the USA
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FOCUS ON DEVELOPMENT IN THE USA CONTRACT CATERING CONCESSION CATERING • No.5 on US contract catering market • No.2 on US motorways: • Focus on 4
Slide 11: Focus on Contract Renewals on French Motorways
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FOCUS ON CONTRACT RENEWALS ON FRENCH MOTORWAYS • Challenge: aging of the contract portfolio with numerous contracts maturing in 2015 and in 2016
Slide 12: Group Business Profile in 2017
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK GROUP BUSINESS PROFILE IN 2017 A CONSISTENTLY DIVERSIFIED A MORE INTERNATIONAL PORTFOLIO FOOTPRINT 6% Railways, City sites 6% 5% & Leisure UK Ot
Slide 13: FY 2016-2017 Financial Performance
3 FY 2016-2017 FINANCIAL PERFORMANCE OLIVIER DUBOIS Group CFO 12/6/2017 13 Elior Group
Slide 14: FY 2016-2017 Performance
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FY 2016-2017 PERFORMANCE • 3.6% organic growth excluding voluntary contract exits • €429m contribution from acquisitions to Group revenue • 5.9%
Slide 15: FY Revenue Analysis
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FY REVENUE ANALYSIS organic growth excl. impact of REVENUE (€m) FY voluntary voluntary FY 2015- contract contract perimeter 2016- 2016 exits exi
Slide 16: Q4 Revenue Analysis
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK Q4 REVENUE ANALYSIS organic REVENUE (€m) growth excl. impact of Q4 voluntary voluntary Q4 2015- contract contract perimeter 2016- +5.7% 1,550 20
Slide 17: FY EBITDA Analysis
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FY EBITDA ANALYSIS (€m) transformation works on French FY 2015-2016 calendar impact Irma hurricane plan motorways organic growth acquisitions fo
Slide 18: Focus on IT Development
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FOCUS ON IT DEVELOPMENT • 2016-2020 IT master plan forecasted €60m cumulative additional capex • IT-master-plan-related capex over FY 2015-2016
Slide 19: Profit & Loss Account Analysis
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK PROFIT & LOSS ACCOUNT ANALYSIS €m FY 2016-2017 FY 2015-2016 YoY CHANGE Adjusted EBITDA 531 501 +5.9% Share-based compensation (9) (4) €(5)m Incr
Slide 20: Free Cash Flow Analysis
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FREE CASH FLOW ANALYSIS €m FY 2016-2017 FY 2015-2016 YoY CHANGE Adjusted EBITDA 531 501 +5.9% Share-based compensation impact (9) (4) €(5)m Repo
Slide 21: Non-Recurring Items – Impact on FY 2016-2017
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK NON-RECURRING ITEMS – IMPACT ON FY 2016-2017 P&L IMPACT CASH IMPACT • Restructuring and • c. €(37)m • c. €(23)m contract exits charges • Provisi
Slide 22: Non-Operational Items: Financial Result and Tax
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK NON-OPERATIONAL ITEMS FINANCIAL RESULT TAX Last refinancing initiatives achieved P&L tax rate at c. 34% in 2016 €14m one-off charge from adjustm
Slide 23: Net Debt Analysis
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK NET DEBT ANALYSIS net debt as at net debt as at (€m) 09/30/2016 FCF financial costs net acquisitions dividend other 09/30/2017 (1,706) (1,628) (
Slide 24: Contract Catering & Services
3 CONTRACT CATERING & SERVICES OLIVIER DUBOIS Group CFO 12/6/2017 24 Elior Group
Slide 25: FY 2016-2017 Highlights
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FY 2016-2017 HIGHLIGHTS ACQUISITIONS CONTRACTS INNOVATION & CONCEPTS • 5 acquisitions closed in • Spring building in B&I, city of • Food persona
Slide 26: Financial Performance (1/2)
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FINANCIAL PERFORMANCE (1/2) • 1.2% organic growth impacted by voluntary contract exits (1.5%) and unfavorable calendar effect (c. 1%): – Good pe
Slide 27: Financial Performance (2/2)
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FINANCIAL PERFORMANCE (2/2) FY FY REPORTED ORGANIC €m 2016-2017 2015-2016 GROWTH GROWTH Revenue 4,648 4,228 +9.9% +1.2% o/w France 2,171 2,163 +
Slide 28: Concession Catering
4 CONCESSION CATERING PEDRO FONTANA Group Deputy CEO 12/6/2017 28 Elior Group
Slide 29: FY 2016-2017 Highlights
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FY 2016-2017 HIGHLIGHTS CONTRACTS OPERATIONS • Sevilla, Ibiza and Fuerteventura • Los Angeles, Newark and • Launch of new own brand: airports (S
Slide 30: Financial Performance (1/2)
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FINANCIAL PERFORMANCE (1/2) • 5.0% organic growth - of which +10.5% in airports and (1.3)% on motorways: – Positive traffic trends in airports g
Slide 31: Financial Performance (2/2)
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK FINANCIAL PERFORMANCE (2/2) FY FY REPORTED ORGANIC €m 2016-2017 2015-2016 GROWTH GROWTH Revenue 1,774 1,668 +6.4% +5.0% o/w France 672 657 2.2%
Slide 32: Outlook
5 OUTLOOK OLIVIER DUBOIS Group CFO 12/9/2016 12/6/2017 32 Elior Group
Slide 33: Supporting 2018 Outlook
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK SUPPORTING 2018 OUTLOOK • Contract catering: – Benefits from strong 2017 development – Strong organic growth in North America, the UK and India
Slide 34: 2018 Indications for Modeling Purposes
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK 2018 INDICATIONS FOR MODELING PURPOSES P&L IMPACT CASH IMPACT • D&A • c. 3.2% of sales - • Intangible amortization (at • c. €25m - constant peri
Slide 35: 2018 Ambitions
1. INTRODUCTION 2. FY 2016-2017 BUSINESS HIGHLIGHTS 3. FY 2016-2017 FINANCIAL PERFORMANCE 4. CONTRACT CATERING & SERVICES 5. CONCESSION CATERING 6. OUTLOOK 2018 AMBITIONS • At least 3% organic growth External growth from acquisitions completed to date: over 2% • Stable adjusted EBITDA margin (at con
Slide 36: Q&A
Q&A 12/6/2017 36 Elior Group
Slide 37: 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