Edenred Sa · EURONEXT:EDEN
Edenred Sa — Investor Day (May 2010)
191 slides from Edenred Sa's investor day presentation, May 18, 2010
Slide 1: Investor Day
NEW SERVICES Investor Day May 18, 2010
Slide 2: Disclaimer
Disclaimer This document has been prepared by Accor solely for use in the investor presentation in connection with the proposed contribution- spinoff transaction in which Accor shareholders will receive shares of New Services Holding S.A. (“New Services”) (subject to approval at the combined general
Slide 3: Morning Agenda
Morning Agenda Time Section Theme Speakers 10:30-12:15 1 New Services’ Strategy Jacques Stern, Chief Executive Officer 12:15-1:00 2 Financial Overview Loïc Jenouvrier, CFO in charge of Legal and IT 1:00-1:30 Q&A session May 18, 2010 3
Slide 4: Afternoon Agenda
Afternoon Agenda Time Section Theme Speakers Eliane Rouyer-Chevalier, SVP in charge of 3:00-4:00 3 Focus on Corporate and Financial Communication, and CSR Benefits and Performance New Services: Real Solutions to Society’s Needs Nathalie Renaudin, Vice President for Institutional Relations 4:00-4:45
Slide 5: New Services' Strategy
SECTION 1 New Services’ Strategy Jacques Stern, Chief Executive Officer
Slide 6: Section 1: New Services' Strategy Outline
Section 1: New Services’ Strategy Outline Chapter 1 WHERE WE COME FROM AND WHO WE ARE Chapter 2 WHERE WE’RE GOING: OUR STRATEGY Chapter 3 WHAT WE’RE DOING: EXECUTING OUR STRATEGY Chapter 4 CONCLUSION AND Q&A May 18, 2010 6
Slide 7: Investment Highlights
Investment Highlights 1 Strong, Sustainable Market Fundamentals 2 A Unique Business Model with a Strong Track Record 3 Global Leadership Built on Innovation and Entrepreneurial Capabilities 4 A Well-Balanced Presence in Emerging and Developed Markets 5 A New Strategy Designed to Capture Growth and D
Slide 8: Where We Come From, Who We Are
Chapter 1 WHERE WE COME FROM WHO WE ARE 8
Slide 9: A 50-Year Success Story
A 50-Year Success Story From a concept to From a regional Diversification in benefits deployment of a presence to global products/innovation in business model leadership in meal non-benefits products vouchers 1954 - 1976 1976 - 2000 2000 - 2010 Concept created in the Introduction in Brazil, Ital
Slide 10: A Unique Business Model Based on a Win-Win Relationship
A Unique Business Model Based on a Win-Win Relationship Refund Claims Design & Management New Services Merchant at the heart of Customer Customer fees fees: 3.1% fees: 1.6% 1.6% a win-win BtoBtoC + relationship Merchant fees 3.1% + Lost and expired Expired/lost prepaid 1.2 million 0.6% products: 0.6
Slide 11: Two Categories and Five Families of Products
Two Categories and Five Families of Products Benefits Performance Solutions designed Solutions designed to provide benefits to employees and citizens to improve the performance of organizations Expense Incentive & New Prepaid Meal & Food Non-Food Management Reward Solutions Employee benefits UUB* Ca
Slide 12: Robust Benefits Business/Fast Growing Performance Products
Robust Benefits Business/Fast Growing Performance Products Benefits Performance Total New In € millions Meal & Expense Incentive & Non-Food Total Prepaid Total Food Mgt Reward Solutions Issue Volume (IV) 9,755 1,198 10,953 827 627 N/S 1,454 12,407 IV (% of total) 78% 10% 88% 7% 5% N/S 12% CAGR 2005-
Slide 13: A Global Footprint
A Global Footprint Europe Austria Poland Belgium Portugal Bulgaria Romania IV: Czech Republic Slovakia France Spain 56% Germany Sweden Greece Switzerland Hungary The Netherlands Italy United Kingdom Luxembourg IV: 3% Latin America Argentina Rest of the World Brazil Australia Singapore Chile IV: Chin
Slide 14: Geographical Exposure Well-Balanced Between Developed and Emerging Markets
Geographical Exposure Well-Balanced Between Developed and Emerging Markets Developed Markets Emerging Markets Total Benefits Performance Total Benefits Performance Total Total Issue Volume (IV) 5,394 582 5,976 5,559 872 6,431 12,407 IV (% of total) 43% 5% 48% 45% 7% 52% CAGR 2005-2009 8.3% 29.9% 9.6
Slide 15: A Unique, Growth-Driven Business Model
A Unique, Growth-Driven Business Model A strong track record Issue volume (in €bn) +10.5% CAGR 12.7 12.4 11.4 10.0 8.4 6.8 7.1 2003 2004 2005 2006 2007 2008 2009 Amount of issue volume is key in the Prepaid Services business 15 May 18, 2010 15
Slide 16: A Cash Generating, Low Capital-Intensive Model
A Cash Generating, Low Capital-Intensive Model Funds From Operations (in €m) (1) A cash generating model +25% CAGR 217 184 166 141 A low capital-intensive model: very limited maintenance 92 capex (€30m in 2009) 68 46 A business that generates 2003 2004 2005 2006 2007 2008 2009 about €2bn in float *F
Slide 17: Diversification is Ensuring a Sustainable Growth Profile
Diversification is Ensuring a Sustainable Growth Profile Diversified geographies Diversified customer portfolio Operations in 40 countries Highly fragmented: 2/3 of customers are companies with fewer than 200 employees Issue volume well-balanced between developed and emerging markets Wide ra
Slide 18: Where We Are Going: Our Strategy
Chapter 2 WHERE WE ARE GOING: OUR STRATEGY 18
Slide 19: Strong Market Growth Fundamentals
Strong Market Growth Fundamentals Strong Market Drivers Strong Track Record Issue Volume CAGR 2005/2009(1) Strong, sustainable market growth fundamentals Benefits Performance Demographic factors +7% +20% Socio-professional factors Sociological factors Political factors Addressable Market: €1
Slide 20: Strong, Sustainable Market Growth Fundamentals (1/2)
Strong, Sustainable Market Growth Fundamentals (1/2) Strong opportunity Sources of opportunity for New Services New Services offer Moderate opportunity Weak opportunity Developed markets Emerging markets Demographic Growing urbanization Factors UUB Emergence of a middle class Card Aging population S
Slide 21: Strong, Sustainable Market Growth Fundamentals (2/2)
Strong, Sustainable Market Growth Fundamentals (2/2) Strong opportunity Sources of opportunity for New Services New Services offer Moderate opportunity Weak opportunity Developed markets Emerging markets Work/life balance Environmental factors Sociological Factors Food security Providing healthy and
Slide 22: An Additional Technological Driver: Paperless Migration
An Additional Technological Driver: Paperless Migration From paper to electronics Sources of opportunity for New Services New Services offer Worldwide transactions Increasing need to access Prepaid UUB by payment media, 2000-2010E(1) electronic payment media, even cards for people with no/limited
Slide 23: 2010-2016 Vision
2010-2016 Vision 1954 - 1976 1976 - 2000 2000 - 2010 2010 --2016 2010 2016 From a concept to From a regional Diversification in deployment of a business model presence to global leadership benefits/ Be the undisputed innovation in in meal vouchers non-benefits #1 worldwide Introduction in Brazil ,
Slide 24: Our Vision: Undisputed #1 Worldwide Provider of BtoBtoC Prepaid Services
Our Vision: To Be the Undisputed #1 Worldwide Provider of BtoBtoC Prepaid Services BENEFITS PERFORMANCE THE WORLDWIDE LEADER A LEADING PLAYER Expense Incentive & New Prepaid Meal & Food Non-Food Management Reward Solutions A leading player A leading player Positioned in Drivers of worldwide worldwid
Slide 25: Our Strategy
Our Strategy 1 1 Increase penetration rate 5 Volume 2 2 Create new products and Like-for-like issue volume deploy existing ones growth: 5 growth 6% to 14% drivers 3 Extend geographical coverage 4 3 4 Increase face value Product/Service Paperless Systematic Innovation Migration Rollout Select targete
Slide 26: A Strategy Relying on 5 Operational Growth Drivers
1 5 Volume 2 5 growth 4 drivers 3 A strategy relying on 5 operational growth drivers: Product/Service Innovation Paperless Migration Systematic Rollout 4 for organic growth and Cash Flow Engine one for acquisitions REVENUE COSTS CAPEX FLOAT
Slide 27: Organic Growth Drivers to Boost Issue Volume
1 4 Organic Growth Drivers to Boost Issue Volume Volume 5 2 5 growth drivers 4 3 Normalized Meal & Incentive New organic growth Non-Food Expense (at same currency) 6-14% Food Benefits Mgt Prepaid Benefits & Reward Solutions = Price effect Increase face value (1) (2) (2) Inflation & Upsale 4 1-3% New
Slide 28: Increase Penetration Rates
1 Volume 5 2 Increase penetration rates… 5 growth 1 4 drivers 3 Still low penetration rates: Penetration rates e.g. only 12% in France (in %) 75% Uruguay 70% Numerous factors to deepen 65% Hungary penetration rates: 60% Product range 55% Distribution channels 5 1 Volume 2 1 …By offering a divers
Slide 29: Distribution
1 Volume 5 2 …By aligning distribution channels with customer size 5 growth 1 4 drivers 3 Untapped Market: Brazil Users (in millons) New Services + Competitors Total potential users Total population: 191.5m Active population: 110.1m Currently out of target: (80.0)m 21% Unemployment, Informal market,
Slide 30: By Offering a Diversified Range of Media
1 Volume 5 2 …By offering a diversified range of media 5 growth 1 4 drivers 3 Multi-media Multi-use Electronic media Contactless deliver optional technology solutions: possibility for end-users to top-up their Cards meal card with their own money Telephone Multi-use cards: a single card for Inte
Slide 31: By Creating Competitively Differentiated Solutions
1 Volume 5 2 … By creating competitively differentiated solutions 5 growth 1 4 drivers 3 Public Corporate Additional volume Authorities Value-added services customers Set up + help to increase our transaction fees through IT market share platforms installed on customer’s site, distributing New Servi
Slide 32: By Optimizing Customer Portfolios
1 Volume 5 2 … By optimizing customer portfolios 5 growth 1 4 drivers 3 Cross-product penetration rates Example: France Leverage products 7% are customers of at least 2 products (Meal, Gift, CESU) Gifts They represent 33% of issue volume (multi-product sales mainly occur among Car key large accou
Slide 33: Create New Products and Deploy Existing Ones
1 Volume 5 2 5 growth 2 Create new products and deploy existing ones 4 drivers 3 Expense Incentive & Meal & Food Vouchers Non-Food Benefits Management Reward Meal Food Childcare/ Ticket Ticket Countries Ecocheque Gift vouchers vouchers vouchers CESU Transport Car/Exp. mgt Belgium Brazil France Hunga
Slide 34: Extend Geographical Coverage
1 Volume 5 2 Extend geographical coverage 5 growth 3 4 drivers 3 Number of operating countries 1+ new country per annum (1990-2009) New Services geographical coverage (2009) 46 to 48 15 countries under study today, 2 to 4 new countries by 2012, 6 to 8 new countries by 2016 May 18, 2010 34
Slide 35: Increase Face Value
1 Volume 5 2 5 growth 4 Increase face value 4 drivers 3 Inflation Upsale Projected annual CPI growth Current average face value 2010-2015E (in %) vs. maximum face value (defined by law) FRANCE HUNGARY +4% +3.8% Maximum face value Maximum face value +3.5% +3% +2.8% 48% gap 48% gap Average face value
Slide 36: Select Targeted Acquisitions
1 Volume 5 2 Select targeted acquisitions 5 growth 5 4 drivers 3 New Services’ focus: BtoBtoC businesses + Acquire businesses to accelerate deployment of New Services’ strategy focused on growing issue volume Acquisition + Criteria Acquire competitors in markets offering high potential for cash flow
Slide 37: High Cash Flow Generation
1 5 Volume 2 5 growth drivers 4 3 High Cash Flow Generation Product/Service Systematic Paperless Migration Innovation Rollout Cash Flow Engine REVENUE COSTS CAPEX FLOAT
Slide 38: Correlation Between Issue Volume and Free Cash Flow
Correlation Between Issue Volume and Free Cash Flow Example based on 2009 New Services results 1 Impact of a €1bn increase in issue volume Impact % of in €m IV 5 Volume 2 Operating Revenue(1) 60 6% €1bn Operating Costs (40) -4% 4 3 EBIT (without financial revenue) 20 2% Product/Service Paperless Sys
Slide 39: Revenue: Short and Medium-Term Trends
REVENUE COSTS Revenue: Short and Medium-Term Trends CAPEX FLOAT Short- Medium Overview New Services response Term Term Competition in some markets due Offer differentiated services to Customer to the current recessionary corporate customers fees environment Merchant High pricing power as vouchers Op
Slide 40: Costs: the Impact of Migrating to Paperless
REVENUE COSTS Costs: the Impact of Migrating to Paperless CAPEX FLOAT PAPER ELECTRONIC Phase 1 Phase 2 Implementation Cruising speed Short-term increase in costs due to: Increase in issue volume • Investment in technology (Authorization Platforms) • Rollout of electronic solutions (Interface costs/P
Slide 41: Successful Migration to Electronic Media in Brazil and the UK
REVENUE COSTS Example: Successful Migration to Electronic CAPEX FLOAT Media in Brazil and the UK A wide range of Food & Meal vouchers in Brazil New Services media (Issue volume in €m) 3.4% 2 000 3.2% 1 500 2.8% Cards 2.3% 2.3% 2.2% 1 000 2.1% Web 500 0 Mobile phones 2003 2004 2005 2006 2007 2008 200
Slide 42: Float: Short and Medium-Term Trends
REVENUE COSTS Float: Short and Medium-Term Trends CAPEX FLOAT Medium- Short-term Overview term End-user Very stable retention times retention Orient users toward daily/fragmented use Potentially reduced by electronic solutions Merchant (Brazil: NO/Mexico: YES), depending on retention regulations and
Slide 43: Capex: Limited Recurring Capex
REVENUE COSTS Capex: Limited Recurring Capex CAPEX FLOAT Maintenance Capex New product In € millions development: 40 3030 to3540 35 €1m to €2m per 30 product 30 24 25 20 18 18 New country 15 opening: 10 5 €2m to €3m per 0 country 2007 2008 2009 2010 / 2012 Very limited recurring capex, enabling deli
Slide 44: What We're Doing: Executing the Strategy
Chapter 3 WHAT WE’RE DOING: EXECUTING THE STRATEGY 44
Slide 45: A New Set-Up and Corporate Mission Project to Support our Strategy
A New Set-Up and Corporate Mission Project to Support our Strategy A new New Governance New Organization New KPIs Set-Up NEW SERVICES STRATEGY A powerful Products/Services Enabler Paperless Migration Systematic Rollout Innovation DEPLOY Roll out New Country GENERATE MOTIVATE SHARE SELECT TRANSFORM T
Slide 46: New Governance and Way of Working
New Governance New Organization New KPIs New Governance and Way of Working NEW STRATEGY Systematic Innovation Dematerialization Roll out Products/Services Approach DEPLOY GENERATE MOTIVATE SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan Board of Directors A n
Slide 47: New Organization
New Governance New Organization New KPIs New Organization NEW STRATEGY Systematic Innovation Dematerialization Roll out Products/Services Approach DEPLOY GENERATE MOTIVATE SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan 3 large countries 5 large regions Spani
Slide 48: New KPIs: Aligned with our Value Creation Drivers
New Governance New Organization New KPIs New KPIs: Aligned with our Value Creation Drivers NEW STRATEGY Systematic Innovation Dematerialization Roll out Products/Services Approach DEPLOY GENERATE MOTIVATE SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan Like-f
Slide 49: EDEN, a Powerful Enabler
EDEN, a Powerful Enabler Products/Services Paperless Migration Systematic Rollout Innovation DEPLOY Roll out New Country GENERATE MOTIVATE SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan May 18, 2010 49
Slide 50: EDEN: Innovation
New Governance New Organization New KPIs EDEN: Innovation NEW STRATEGY Systematic Innovation Dematerialization Roll out Products/Services Approach DEPLOY GENERATE MOTIVATE SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan CURRENT PORTFOLIO INNOVATION ENGINE DEP
Slide 51: EDEN: Technology/Paperless Migration
New Governance New Organization New KPIs EDEN: Technology/Paperless Migration NEW STRATEGY Systematic Innovation Dematerialization Roll out Products/Services Approach DEPLOY GENERATE MOTIVATE SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan New Services 23 cou
Slide 52: EDEN: Systematic Rollout
New Governance New Organization New KPIs EDEN: Systematic Rollout NEW STRATEGY Systematic Innovation Dematerialization Roll out Products/Services Approach DEPLOY GENERATE MOTIVATE SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan Product Rollout Process Develop
Slide 53: EDEN: Talents & Incentive Plan
New Governance New Organization New KPIs NEW STRATEGY EDEN: Talents & Incentive Plan Innovation Products/Services DEPLOY GENERATE MOTIVATE Dematerialization Systematic Roll out Approach SHARE SELECT TRANSFORM AMBITION VISION RULES OF GAMES PROTOTYPE Talents & Incentive Plan A strong culture federa
Slide 54: Teams are Already Supporting EDEN
Teams are Already Supporting EDEN Invent 2016 Conquer 2012 Win 2010 Innovation Development EDEN Committee Technology " Barcelona Management Convention Talents Committee PARIS "140" "80" Initial deliverables Project execution PRIORITIZATION DESIGN IMPLEMENTATION January 28, 2010 May 3 Mid-Nov. EDEN l
Slide 55: Conclusion
Chapter 4 CONCLUSION NEW SERVICES
Slide 56: 2010-2016 Vision
2010-2016 Vision 1954 - 1976 1976 - 2000 2000 - 2010 2010 --2016 2010 2016 From a concept to From a regional Diversification in deployment of a business model presence to global leadership benefits/innovati Be the undisputed on in non- in meal vouchers benefits #1 worldwide Introduction in Brazil
Slide 57: Our Product Strategy: From One to Multiple Blockbusters
Our Product Strategy: From One to Multiple Blockbusters Average annual growth Issue volume > 20% Long-Term Future New Prepaid + 10 to 20% blockbusters Solutions + 4 to 10% Non-Food Benefits, Expense Management, Incentive & Reward 2016 E Take-off of 3 new blockbusters 2010 Less than 50% Food Benefits
Slide 58: Our Geographical Strategy: From 3 to Multiple Blockbusters
Our Geographical Strategy: From 3 to Multiple Blockbusters 2009 EBIT contribution # Very large countries > €40m # Medium & large countries: €5m to €40m Long-Term # Small countries < €5m 2016 E 8 Today 2010 5 5 3 18 15 11 22 20 10 to 15 new countries 26 6 to 8 new countries 40 countries 46 to 48 coun
Slide 59: Our Media Strategy: Paperless & Electronic
Our Media Strategy: Paperless & Electronic New Services issue volume per type of media (in %) Paper Long Term Electronic PPS and Watts 20% our authorization platforms that give 2016 us strategic control over the value chain 2010 50% MasterCard 80% a quick, standardized way to access the 70% netw
Slide 60: Investment Highlights
Investment Highlights 1 Strong, Sustainable Market Fundamentals 2 A Unique Business Model with a Strong Track Record 3 Global Leadership Built on Innovation and Entrepreneurial Capabilities 4 A Well-Balanced Presence in Emerging and Developed Markets 5 A New Strategy Designed to Capture Growth and D
Slide 61: Section 2: Financial Overview
SECTION 2 Financial Overview Loïc Jenouvrier, Chief Financial Officer in charge of Legal and IT
Slide 62: Section 2: Financial Overview Contents
Section 2: Financial Overview Contents Chapter 1 NEW SERVICES FINANCIAL OVERVIEW Chapter 2 A ROBUST BUSINESS MODEL 1. Profit & Loss Statement 2. Balance Sheet 3. Cash Flow Statement Chapter 3 FINANCIAL POLICY Chapter 4 CONCLUSION 62 18.05.10 62
Slide 63: New Services Financial Overview
Chapter 1 NEW SERVICES FINANCIAL OVERVIEW 18.05.10 63
Slide 64: Our Business Model
Our Business Model Issue Volume Strong growth Systematic Innovation Dematerialization Roll out Product / Service Approach Cash Flow Engine REVENUE COSTS CAPEX FLOAT A strong growth and highly cash generative business model 18.05.10 64
Slide 65: Key Business Drivers: Issue Volume vs. FFO
Key Business Drivers: Issue Volume vs. FFO 250 2008 200 2009 2007 150 FFO (€m) 2006 100 2005 2004 50 2003 -- 6 7 8 9 10 11 12 13 14 Issue Volume (€bn) Issue Volume is a key driver of operating cash flow generation 18.05.10 65
Slide 66: Key Business Drivers: Issue Volume vs. Float
Key Business Drivers: Issue Volume vs. Float 2,200 2009 2,000 2008 2007 1,800 Float (€m) 1,600 2006 1,400 2005 1,200 2004 2003 1,000 6 7 8 9 10 11 12 13 14 Issue Volume (€bn) Issue Volume is a key driver of Float growth 18.05.10 66
Slide 67: KPIs to Monitor Performance
KPIs to Monitor Performance Profitable Growth Sustainable Cash Flow Generation Issue Volume LfL growth Funds From Operations LfL growth + EBIT EBIT / Issue Volume + D&A - Financial Result - Income Tax +/- Non Cash P&L Items Unlevered Free Cash Flow LfL growth + EBIT before Financial Rev.
Slide 68: Strength of Business Model Driven by Issue Volume
Strength of Business Model Driven by Issue Volume Issue Volume €12.4bn 03A-09A CAGR: 10.5% Cash Flow Engine EBIT FFO €327m €184m UNLEVERED FREE CASH FLOW CHANGE IN FREE FLOAT (1) €280m CAPEX €98m €(30)m Notes: Based on 2009 figures. (1) At constant perimeter and exchange rate. 18.05.10 68
Slide 69: A Robust Business Model
Chapter 2 A ROBUST BUSINESS MODEL 18.05.10 69
Slide 70: Pro Forma Assumptions
Pro Forma Assumptions Pro forma IFRS financial accounts prepared on a standalone basis since 2007 Key P&L adjustments New operating expenses representing central functions previously performed by Accor SA Additional interest expenses representing New Services’ debt allocation post demerger
Slide 71: Profit & Loss Statement
Profit & Loss Statement 18.05.10 71
Slide 72: Profit & Loss Statement Overview
Profit & Loss Statement Overview P&L BS CFS In €m 2007 2008 2009 Issue Volume 11,437 12,696 12,407 % LfL Growth NA 13.5% 5.7% Revenue 837 946 902 EBIT 320 365 327 Recurring Profit After Tax 131 167 154 Number of Shares (in million of shares) 225 225 225 Clean EPS (Recurring Profit After Tax per shar
Slide 73: Revenue
Revenue P&L BS CFS In €m 2007 2008 2009 Issue Volume 11,437 12,696 12,407 Operating Revenue with Issue Volume 619 673 661 % of Issue Volume 5.4% 5.3% 5.3% Operating Revenue without Issue Volume 122 144 147 Operating Revenue 741 817 808 Financial Revenue on Free Float 81 110 72 Financial Revenue on R
Slide 74: Operating Revenue with Issue Volume
Operating Revenue with Issue Volume P&L BS CFS In €m 2007 2008 2009 Operating Revenue with Issue Volume 619 673 661 % Issue Volume 5.4% 5.3% 5.3% Of which Europe (1) 5.4% 5.3% 5.1% LatAm 5.3% 5.2% 5.5% Note: (1) Decrease mainly related to Romania and Italy; other countries stable. In France, Operati
Slide 75: EBIT
EBIT P&L BS CFS In €m 2007 2008 2009 Operating Revenue 741 817 808 Financial Revenue 96 129 94 Revenue 837 946 902 Operating Costs (including D&A) (517) (581) (575) EBIT 320 365 327 Operating EBIT (1) 224 236 233 % of Issue Volume 2.0% 1.9% 1.9% Note: (1) EBIT before Financial Revenue. Flexible cost
Slide 76: EBIT Transformation Rate
EBIT Transformation Rate P&L BS CFS 2008/2009 2008/2009 In €m 2009 Δ LfL Δ LfL Ops. Fin. Issue Volume 12,407 719 Operating Revenue 808 28 Financial Revenue 94 (19) Revenue 902 28 (19) Operating Expenses (539) (13) (13) D&A (36) (1) (1) EBIT 327 €(5)m LfL 14 (19) EBIT / Issue Volume 2.6% Operating EB
Slide 77: A Balanced Activity
A Balanced Activity P&L BS CFS 2009A Issue Volume 2009A Revenue 2009A EBIT Other Other Other 3% 7% 3% LatAm 41% LatAm LatAm Europe Europe 37% Europe 52% 45% 56% 56% €12,407m €902m €327m (1) Note: (1) Split before €(24)m of unallocated worldwide structures. Diversified financials though a presence in
Slide 78: Net Profit
Net Profit P&L BS CFS In €m 2007 2008 2009 EBIT 320 365 327 Financial Result (1) (92) (87) (104) Recurring Profit before Tax 228 278 223 Income Tax (68) (86) (62) Minority Interests (17) (25) (7) Recurring Profit After Tax 131 167 154 Non-Recurring Expenses (26) (15) (211) o/w Restructuring Costs &
Slide 79: Balance Sheet
Balance Sheet NEW | 18.05.10 SERVICES
Slide 80: Pro Forma Balance Sheet
Pro Forma Balance Sheet P&L BS CFS In €m 2007 2008 2009 In €m 2007 2008 2009 Total Shareholders’ Equity and Intangible Assets 101 110 99 (1,203) (1,137) (1,187) Minority interests Tangible Fixed Assets 29 37 37 Other Non-Current Assets 713 673 588 Provisions and Deferred Tax 109 99 141 Working Capit
Slide 81: Consolidated Shareholders' Equity
Consolidated Shareholders’ Equity P&L BS CFS In order to realise the debt allocation, assets are acquired from Accor SA by New Services Holding at market value Internal acquisitions are done before separation, and are therefore considered as intra-group operations (no goodwill possible) Assets
Slide 82: Float
Float P&L BS CFS In €m 2007 2008 2009 In €m 2007 2008 2009 Trade Receivables 1,095 846 894 Vouchers in Circulation 2,895 2,587 2,883 Other Receivables, Accruals & 169 253 261 Trade & Other Payables 269 488 304 Stocks Working Capital Assets 1,264 1,099 1,155 Working Capital Liabilities 3,164 3,075 3,
Slide 83: Free Float
Free Float P&L BS CFS Float €2,032m = Financial Revenue on Restricted Funds (1) Restricted Funds €565m €22m + Financial Revenue on Free Float Free Float €1,467m €72m Cash & Cash Financial Equivalents Revenue Note: Based on 2009 figures. (1) Mostly located in France and Romania. Both Free Float and R
Slide 84: Free Float vs. Restricted Funds
Free Float vs. Restricted Funds P&L BS CFS Free Float Restricted Funds Full ownership No regulatory constraints Free transferability within the group Decision on type of investments / Decision on maturity of investments Free Cash Feeds directly Treated as an into Cash & opera
Slide 85: Cash Flow Statement
Cash Flow Statement 18.05.10 85
Slide 86: Funds From Operations (FFO)
Funds From Operations (FFO) P&L BS CFS In €m 2007 2008 2009 EBIT 320 365 327 D&A 25 31 36 Financial Result (92) (87) (104) Income Tax (78) (83) (77) Non-Cash Items 2 9 3 Non-Recurring Provisions (11) (18) (1) Funds From Operations 166 217 184 Like for Like Growth NA 23.7% 13.2% Double digit growth o
Slide 87: A Virtuous Business Model
A Virtuous Business Model P&L BS CFS - Tax Operating Revenue EBIT + D&A before Unlevered Issue Fees & Operating Financial Free Volume Comm. Expenses Revenue Cash on Free - Recurring Flow + Float Capex Financial Revenue on Rest. + Δ in Free Funds Float Restricted Funds Free Float A virtuous business
Slide 88: Unlevered Free Cash Flow
Unlevered Free Cash Flow P&L BS CFS In €m 2007 2008 2009 EBIT 320 365 327 Financial Revenue on Free Float Elimination (81) (110) (72) EBIT before Financial Revenue on Free Float 239 255 255 Tax Rate 30.5% 28.6% 31.0% Tax (73) (73) (79) D&A 25 31 36 Recurring Capex (18) (24) (30) Change in Free Float
Slide 89: Business Model
Business Model NEW | 18.05.10 B SERVICES
Slide 90: A Virtuous Business Model
A Virtuous Business Model Fees & Commissions Tax - 5.3% €79m Commissions Operating Issue + Revenue Volume with Operating EBIT before D&A + Unlevered Affiliates Volume Expenses Financial €36m Fees 4.3% I.V. Revenue on Free €12.4bn €661m Free Float Cash + €539m 2.1% I.V. Flow €255m Lost & - Recurring
Slide 91: Key Takeaways on Business Model Specificities
Key Takeaways on Business Model Specificities Issue Volume Main business driver Available to New Services Change in Free Float included into Unlevered Free Cash Flow Free Float Generates revenue accounted for in Financial Revenue (and restated in Unlevered Free Cash Flow) Not taken into ac
Slide 92: Financial Policy
Chapter 3 FINANCIAL POLICY 18.05.10 92
Slide 93: Financial Policy and Capital Structure
Financial Policy and Capital Structure Objective of a strong Investment Grade rating Objective of diversified and well-balanced financing Already fully secured sources of financing at the time of demerger, with a mix of short and long term debt €600m of 1-year bridge to bond €900m of 5-yea
Slide 94: Cash Management Policy
Cash Management Policy Centralized cash management at Group level with strictly defined policies Only Tier 1 counterparts: best rated in the countries we operate in No risk on invested capital: money market investments Diversification: limited exposure by counterpart Monthly reporting by c
Slide 95: Exchange Rate Risk Management Policy
Exchange Rate Risk Management Policy New Services invests cash in the country where it is generated locally Change in exchange rates impacts accounting transcription of Issue Volume, Revenue and EBIT Impact on EBIT Brazilian Real €8.1m Venezuelan Bolivar Fuerte €3.3m Exchange Rate +/- 10% vs. €
Slide 96: Conclusion
Chapter 4 CONCLUSION 18.05.10 96
Slide 97: A Unique Business Model
A Unique Business Model Issue Volume A well-balanced Strong growth Unique Float geographic track record characteristics positioning with 50/50 emerging Limited Capex and developed requirement market allowing to capture growth opportunities Solid Unlevered Free Cash Flow generation 18.05.10 97
Slide 98: Value Creating Financial Objectives
Value Creating Financial Objectives Normative (1) LfL Issue Volume growth on the mid-term: 6-14% Normative (1) LfL Funds From Operations growth on the mid-term: >10% Prudent investment strategy Strong Investment Grade rating Note: (1) Normative growth means the level of growth that the Group
Slide 99: Appendix
Appendix NEW SERVICES | 18.05.10 B
Slide 100: Cash Flow Statement
Cash Flow Statement In €m 2007 2008 2009 EBIT 320 365 327 Depreciation & Amortization 25 31 36 Financial Result (92) (87) (104) Income Tax (78) (83) (77) Change in working capital 189 154 111 Change in recurring Restricted Funds (19) (49) (13) Other (9) (9) 2 Non recurring items (5) (17) (146) Cash
Slide 101: Definitions of Key Terms
Definitions of Key Terms 2009A Aggregate Definition (€m) Issue Volume (IV) 12,407 Face value of issued vouchers and prepaid cards over the accounting period Revenue 902 Operating Revenue + Financial Revenue Operating Revenue 808 Operating Revenue with Issue Volume + Operating Revenue without I
Slide 102: Section 3: Focus on Benefits & Performance
SECTION 3 Focus on Benefits & Performance Eliane Rouyer-Chevalier, Senior Vice-President in charge of Corporate and Financial Communication and CSR
Slide 103: Section 3: Focus on Benefits and Performance Contents
Section 3: Focus on Benefits and Performance Contents NEW SERVICES: THE GLOBAL LEADER IN EMPLOYEE Chapter 1 AND PUBLIC BENEFITS NEW SERVICES: PREPAID SOLUTIONS TO IMPROVE THE Chapter 2 PERFORMANCE OF ORGANIZATIONS May 18.2010 103
Slide 104: New Services: Global Leader in Employee and Public Benefits
Chapter 1 NEW SERVICES: THE GLOBAL LEADER IN EMPLOYEE AND PUBLIC BENEFITS May 18.2010 104
Slide 105: A Wide Range of Products
A Wide Range of Products Benefits Meal & Food Benefits Non Food Benefits Family assistance solutions to take care of young children Solutions that enable employees to pay for childcare, dependent care or housekeeping Employee benefits Solutions to enable employers to help defray Gift voucher solutio
Slide 106: A Win-Win Solution for All Stakeholders
A Win-Win Solution for All Stakeholders
Slide 107: A Unique Model Based on a Win-Win Relationship for All Stakeholders
A Unique Model Based on a Win-Win Relationship for All Stakeholders Partnering public authorities and companies, helping them to distribute and deploy their social and economic policies Improving Implementing Public authorities 390,000 attractiveness economic and corporate customers in 33 countries
Slide 108: Advantages for Public Authorities, Institutions and Unions
Advantages for Public Authorities, Institutions and Unions Public authorities 390,000 corporate Economic and social in 33 countries customers Efficient implementation advantages NEW SERVICES 900,000 23 million 1 job created on merchants end-users An alternative solution average for every 30 to c
Slide 109: A Sustainable Relationship with Public Authorities
A Sustainable Relationship with Public Authorities Public authorities in 33 countries 390,000 corporate 3 different cases Situation today for customers New Services NEW SERVICES Cancellation of tax break on New Services still present 900,000 23 million Sweden meal vouchers: with taxed meal vouchers:
Slide 110: A Sustainable Relationship with Corporates
A Sustainable Relationship with Corporates Public authorities 390,000 corporate A fringe benefit, tax-free to a certain level in 33 countries customers A way to increase employee loyalty Gains in productivity and well-being NEW SERVICES Improved health and motivation Less absenteeism, less foo
Slide 111: A Sustainable Relationship with Merchants
A Sustainable Relationship with Merchants Public authorities 390,000 corporate A source of customer loyalty in 33 countries customers Additional revenue: Meal vouchers represent 15% of restaurant owners’ total revenue in NEW SERVICES France (2) Food vouchers account for 12% to 30% of revenue gen
Slide 112: A Sustainable Relationship with End-Users
A Sustainable Relationship with End-Users Public authorities 390,000 corporate in 33 countries customers NEW SERVICES Increased purchasing power with a fringe benefit Better control over the basic needs budget 900,000 23 million merchants end-users Part of the family budget is dedicated to basic
Slide 113: Real Solutions to Society's Needs
Real Solutions to Society’s Needs Nathalie Renaudin, Vice President for Institutional Relations
Slide 114: Executive Summary: Real Solutions to Society's Needs
Executive Summary Real solutions to society’s needs Growing concern about society’s needs Follow-up to public concerns and the recommendations of: National Authorities European Institutions International Organizations New Services meets these needs by designing effective solutions 114 Ma
Slide 115: Four Illustrative Actions
Four illustrative actions Identification of Work/life Social Nutrition Health needs Balance Policy Interest from international ILO EU ILO FAO organisations 1 2 3 4 Childcare Corresponding Meal and Food FOOD vouchers and Agricultural New Services services to vouchers programme vouchers programmes ind
Slide 116: Meal and Food Vouchers: Supporting the Social Pact
1 Meal and Food Vouchers: a means of supporting the social pact The International Labour Organization (ILO) is the tripartite UN agency that brings together: Governments Employers Workers of its member states in common action to promote decent work throughout the world 116 May 18.2010
Slide 117: ILO: Food at Work
1 ILO: Food at Work Cycle of poor nutrition and low national productivity “Workplace meals largely are a missed opportunity” 117
Slide 118: The FOOD Programme
2 To move to the next level… The FOOD Programme Fighting Obesity through Offer and Demand May 18.2010 118
Slide 119: The FOOD Project, Cofunded by the European Commission
2 The FOOD project, cofunded by the European Commission Objective: to use the meal voucher as a vector of communication between companies and restaurants in order to promote balanced nutrition The 2007 White Paper on New Services, coordinator of nutrition strategy underlines a public-private consort
Slide 120: ILO: Workplace Solutions for Childcare
3 ILO: Workplace Solutions for Childcare 120 May 18.2010
Slide 121: ILO: Workplace Solutions for Childcare
3 ILO: Workplace Solutions for Childcare Objectives of the study Review practices regarding workplace childcare solutions in 10 countries Focus on the opportunities and constraints of each national and workplace situation Offer recommendations Focus on the practical rather than the theoretic
Slide 122: FAO: For a World Without Hunger
4 FAO: For a world without hunger Government objective: to encourage the use of fertilizer that increases farm productivity and rice production Programme to deliver technical solutions: Greater safety and transparency More efficient use of State subsidies Value-added service for the governmen
Slide 123: FAO: Evaluation of the Ticket Agri
4 FAO: evaluation of the Ticket Agri 2 year-long evaluation study: Agricultural production and productivity Food safety Self-sufficiency at a time of rising food prices + attention to: Programme implementation performance Impacts on private sector development in the national agro-deale
Slide 124: Market Overview
Market Overview ;
Slide 125: 2009 Worldwide Addressed Market
2009 Worldwide Addressed Market Issue Volume (in €bn) Food & Meal Non-Food Total Benefits Europe 14.3 3.6 17.9 North America 0 0.4 0.4 Latin America 13.9 0.2 14.1 14.1 Rest of the world 0.2 0.2 0.4 Total 28.4 4.4 32.8 A very fast growing market, mostly BtoBtoC, with a 2005/2009 CAGR of 7% for Food &
Slide 126: Pre-requisites for Building a Leadership Position in Benefits
Pre-requisites for building a leadership position in Benefits 3 New Services competitive advantages Benefits Specific BtoBtoC Providers distribution channels aligned by company size Pioneer in 90% of the countries 5 1 with the appropriate tax rules Organization and size of 5 the acceptance network
Slide 127: Existing Players and Potential New Entrants
Existing Players and Potential New Entrants Relationship Relationship Middle office Brand with with merchants systems (paper awareness & Market share corporates (acceptance or electronic Financial (sales force) network) processing) strength New Services/ International Existing player players Local B
Slide 128: Competitive Landscape
Competitive Landscape Number of Competitors Market Position New Services’ Meal & food Non-food market position France 3 12 No.1 Two Global Players Brazil 147 92 No.1 UK 0 42 No.1 Italy 12 3 No.1 Other International smaller Belgium 2 1 No.1 player No. players 1 Hungary 11 11 No.2 No.2 No.3 Mexico 11
Slide 129: Our Global Footprint in Employee and Public Benefits
Our Global Footprint in Employee and Public Benefits Key figures as of Dec. 2009 (in €m) Europe Food/ Non-food Meal benefits Issue volume 5,288 1,062 €6.4bn Operating revenue 257 77 €0.3bn €4.3bn Rest of the world Food/ Non-food Latin America Meal benefits Food/ Non-food Issue volume 253 63 Meal ben
Slide 130: Employee and Public Benefits: Key Takeaways
Employee and Public Benefits: Key Takeaways A win-win A fast growing Strong solution market leadership for every stakeholder, €33bn in 2009 Front-ranked in most the best guarantee of developed and the business’ 7% CAGR emerging markets long-term growth 2005/2009 and strong competitive edge Benefits
Slide 131: Prepaid Solutions to Improve Performance of Organizations
Chapter 2 NEW SERVICES: PREPAID SOLUTIONS TO IMPROVE THE PERFORMANCE OF ORGANIZATIONS May 18.2010 131
Slide 132: A Wide Range of Products
A Wide Range of Products PERFORMANCE Expense New Prepaid Incentive & Reward Management Solutions Solutions to manage Gift voucher solutions Payroll cards for un- or company car maintenance designed for companies underbanked employees and fuel costs (with no tax exemption) Travel card, as an alternat
Slide 133: Business Model
Business Model »
Slide 134: A Unique Model Based on a Win-Win Relationship
A Unique Model Based on a Win-Win Relationship Improving Public authorities 80,000 attractiveness in 33 countries (1) corporate customers and performance NEW SERVICES At the heart of a win-win BtoBtoC relationship Enhancing Increasing purchasing revenue and power, well- 172,000 12 million loyalty be
Slide 135: Same Business Model as Benefits, but 3 Types of Acceptance Networks
Same Business Model as Benefits, but 3 Types of Acceptance Networks Client fees + Merchant fees Card issued by a merchant, to be accepted in its Closed point of sales Monobrand card: + • Carrefour, Wal-mart, loop One single brand: issuing brand • Starbucks, etc 8% Proper card Limited acceptanc
Slide 136: Same Business Model as Benefits: Comparative Analysis
Same Business Model as Benefits: Comparative Analysis 4 sources of revenue: Performance vs. Benefits Incentive & New Prepaid Expense Mgt Reward Solutions Market size 1 Client fees 2 Merchant fees 3 Lost and expired 4 Financial revenue Total revenue/Issue Volume 4% to 7% 6% to 8% 1% to 4% EBIT/Issue
Slide 137: Performance Products: Value-Added for Stakeholders
Performance Products: Value-Added for Stakeholders Expense Management Incentive & Reward 80,000 Track and secure payment Improve employee performance Corporate Optimize expense reporting Reinforce corporate attractiveness customers Simplify fulfillment Capture the value of their human re
Slide 138: An Innovation-Driven Strategy to Develop New Prepaid Solutions
An Innovation-Driven Strategy to Develop New Prepaid Solutions • To replace travelers checks TRAVEL PREMIUM • Payroll card • Large Saver Club CASH-BACK Membership/ Cash-back savings model for retailers Prepay Solutions is one of our R&D labs for new prepaid solutions May 18.2010 138
Slide 139: Market Overview and Positioning
Market Overview and Positioning
Slide 140: 2009 Estimated Addressed Market
2009 Estimated Addressed Market (1) Markets targeted by BtoBtoC BtoC New Services Markets not Expense Incentive New Prepaid Total Incentive Total targeted by New Prepaid Solutions mgt & Reward Solutions BtoBtoC & Reward BtoC New Services in €bn Expense Gift UUB Gift Youth/ Remittances Consumer mgt B
Slide 141: Proficient in All Pre-Requisites for Leadership in Performance Products
New Services is Proficient in All of the Pre-Requisites for Building Leadership in Performance Products New Services will leverage its Benefits expertise to develop Performance Products New Services enjoys major competitive advantages with… …”Ticket” already recognized worldwide, a front-ranked Bene
Slide 142: Our Global Footprint in Performance Products
Our Global Footprint in Performance Products Key figures as of Dec. 2009 (in €m) Europe Exp Incentive & Mgt Reward Issue volume 7 586 IV €0.6bn Operating rev. 11 95 €0.04bn Rest of the World Latin America Exp Incentive IV Mgt & Reward Exp Incentive €0.9bn Mgt & Reward Issue volume 2 36 Issue volume
Slide 143: Performance: Key Takeaways
Performance: Key Takeaways Same business A large and fast A leading position model as Benefits growing addressed market Expense Management: Same stakeholders, No. 1 in Latin America already well-known by €87bn in 2009 New Services Incentive & Reward: 20% CAGR No. 1 in Europe Leverage our leadership
Slide 144: Section 4: Success Stories
NEW SERVICES SECTION [4) Success Stories
Slide 145: PrePay Solutions: A Key Asset to Support New Services' Strategy
PrePay Solutions: A Key Asset to Support New Services’ Strategy Philippe Dufour, Senior Vice-President in charge of Strategy and Development
Slide 146: The Electronic Pre-Pay Tandem Delivers Powerful Industry Dynamics
Electronic Prepaid NICHES MASS PRE PAY SPECIALISTS STANDARD THE ELECTRONIC PRE-PAY TANDEM DELIVERS POWERFUL INDUSTRY DYNAMICS May 18.2010 146
Slide 147: B2B2C Electronic Prepaid: Main Stakeholders
B2B2C Electronic Prepaid: Main Stakeholders Clients ECOSYSTEM End-users • Corporates • Employees • Governments • Citizens • Public institutions Program Authorization Merchant Manager & Transaction Processor networks • Client order & billing • Account activation • Open loop • Fulfilment • Txn authori
Slide 148: PrePay Solutions in a Nutshell
PrePay Solutions in a Nutshell Transactions • Inception in 2000 100m 90m 47% 80m CAGR 70m • UK market leader in retail prepaid 60m 50m processing 40m 30m 20m • Open, closed and filtered programs 10m m 2007 2008 2009 2010 • 35m cards under management Activity Volume $800m • Vertically integrated busi
Slide 149: The Scope of PrePay Solutions Activities
The Scope of PrePay Solutions Activities Clients ECOSYSTEM End-users • Corporates • Employees • Governments • Citizens • Public institutions Program Manager Authorization Merchant & Transaction Processor networks • Client order & billing • Account activation • Open loop • Fulfilment • Txn authorisat
Slide 150: PrePay Solutions: A Wide Range of Products
PrePay Solutions: A Wide Range of Products 4 Examples of New Prepaid Solutions • Replacement of travellers TRAVEL checks and foreign currencies • Premium Payroll Card PAYROLL • Large Saver Club CASH BACK Membership/ Cash back savings model for retailers • Magnum Promotion program PROMOTION launched
Slide 151: A Successful Process: Issue Volume and Activity Volume
ISSUE VOLUME - 10 000 15 000 20 000 5 000 £000s janv.-08 févr.-08 mars-08 avr.-08 mai-08 juin-08 juil.-08 août-08 sept.-08 oct.-08 nov.-08 déc.-08 janv.-09 févr.-09 Activity Volumes mars-09 avr.-09 mai-09 Program beginning Jan. 2008 juin-09 juil.-09 A Successful Process Case 1 (real case) août-09 De
Slide 152: New Services Capabilities Extended by Prepay Solutions
New Services Capabilities Extended by Prepay Solutions Clients ECOSYSTEM End-users • Corporates • Employees • Governments • Citizens • Public institutions Program Manager Authorization Merchant & Transaction Processor networks • Client order & billing • Account activation • Open loop • Fulfilment •
Slide 153: Close Collaboration Between New Services and PrePay Solutions
Close Collaboration Between New Services and PrePay Solutions 19 programs launched with New Services in 2 years May 18.2010 153
Slide 154: Scope Broadened by the MasterCard Agreement
New Services Scope Broadened By the MasterCard Agreement Clients ECOSYSTEM End-users • Corporates • Employees • Governments • Citizens • Public institutions Program Authorization Merchant Manager & Transaction Processor networks • Client order & billing • Account activation • Open loop • Fulfilment
Slide 155: Prepaid Card Scheme
Prepaid Card Scheme End-users Merchants Corporate Clients Cardholders (Affiliates) Distribute prepaid cards Use prepaid cards to buy to employees products/services Send Transmit Distribute funds Data cards Other Authorize/Reject Local or Regional transaction payment schemes Transmit data and MIS* or
Slide 156: PrePay Solutions: A Key Asset for New Services
PrePay Solutions: A key Asset for New Services To develop a paper-to-electronic migration strategy Migration To deliver key components of the prepaid value chain Value Chain To generate additional sources of profit € (new markets) Profit May 18.2010 156
Slide 157: From Paper to Card: a Dynamic, Value-Adding Trend
From Paper to Card: a Dynamic, Value-Adding Trend Oswaldo Melantônio Filho, Chief Operating Officer Brazil
Slide 158: Brazil 2009 Key Figures
2009 key figures 2009 Total Volume €2,945m 53,000 Customers 280,000 Merchants 2,820,000 Active cards 1,074 Employees May 18.2010 158
Slide 159: Reasons for Moving from Paper to Card
Reasons for moving from paper to card Capture an emerging market trend Innovation Fight against misuse, Create competitive fraud and theft differentiation “First Mover” Security Paper Card Optimize processes and Deliver Convenience reduce costs over the for customers, medium term merchants and users
Slide 160: Brazil: a Pioneer in Migrating to Electronic Cards
Brazil: a pioneer in migrating to electronic cards PAPER VOUCHER ELECTRONIC CARD ELECTRONIC CARD (launched in) (launched in) 2010 1976 2003 (73%) 1990 1999 (100%) 1st Electronic Card in the PAT Market 1990 1994 (100%) 1st smart card in Brazil May 18.2010 160
Slide 161: From Paper to Card in Meal & Food Vouchers
From paper to card in Meal & Food vouchers 1,817 Users (Thousands) New Sales 2 000 75% card / 25% paper 100% 1 800 Migration + New Sales 160,000 cards/year 1 600 1 400 1 200 829 1 000 71% 800 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 BD TR Card TA card From 55% To 89% May 18.2010 161
Slide 162: From Paper to Card: a New Business Model (1/2)
From paper to card: a new business model (1/2) PAPER CARD REVENUE 6 SOURCES 11 These 6 new card revenue sources represent ~10% of total revenue Same sources of revenue as paper • Customer Service Commission + additional sources of revenue: • Merchant fee • Card issuance (new!) • Payment advance • Ca
Slide 163: From Paper to Card: a New Business Model (2/2)
From paper to card: a new business model (2/2) PAPER CARD COST 5 DRIVERS 6 The card cost structure is 60% lower than paper Paper cost drivers: Card cost drivers: • Recycled security paper voucher • Card embossing • Printing • Delivery • Voucher cover • Acquiring • Delivery • Processing • Reimburseme
Slide 164: Conclusion
Conclusion Significant opportunities for New Services in the short/medium term: − Brazil as a card processing center for Latin America: economies of scale; − Ten years of processing know-how to be transferred to other countries; High level of satisfaction from users, customers and merchants Po
Slide 165: Merci Beaucoup, Thank You, Muito Obrigado
MERCI BEAUCOUP THANK YOU MUITO OBRIGADO 165
Slide 166: Ticket Car in Chile: Successful Rollout in Latin America
Ticket Car in Chile: Successful Rollout in Latin America Jean-Louis Claveau, Chief Operating Officer Hispanic Latin America and North America
Slide 167: Ticket Car is an Expense Management Solution
Ticket Car is an Expense Management Solution Focusing on Targeting Based on Fuel Consumption Urban Fleets Payment Cards: Online & Offline Car & Light Truck Long-Haul Trucks Maintenance Web Management & Reporting On-the-Road Expenses (in Selective Gas development) Station & Repair Net
Slide 168: History of a Successful Rollout in Latin America
History of a Successful Rollout in Latin America 2009 2004 1999 1995 May 18.2010 168
Slide 169: Strong Growth: Today an €800 Million Business
Strong Growth: today an €800 million Business Issue 2005-09 CAGR Volume +29% 800 €786m 700 €679m 600 €541m 500 Chile 400 Argentina 300 €283m Mexico 200 Brasil €75m 100 0 2000 2005 2007 2008 2009 At constant 2009 exchange rates May 18.2010 169
Slide 170: A Robust and Diversified Client Base
A Robust and Diversified Client Base UTILITIES INDUSTRIAL TRANSPORTATION PUBLIC SERVICES OTHERS May 18.2010 170
Slide 171: Product Functionalities & Customer Benefits
Product Functionalities & Customer Benefits Fuel expense management: $ and liters Elimination of fraud, generating - Per vehicle and driver savings of 20% to 25% - Per kilometer (odometer data retrieved) - Detailed customer reports Web Reporting of Fuel Consumption & Alerts Stations Odometer Rea
Slide 172: Product Functionalities & Customer Benefits
Product Functionalities & Customer Benefits Fuel expense management: $ and liters - Per vehicle and driver Elimination of fraud, generating savings - Per kilometer (odometer data retrieved) of 20% to 25% - Detailed customer reports One single invoice with VAT information Optimized administra
Slide 173: Example of Value Added: Ticket Car Carbon Control
Example of Value Added: Ticket Car Carbon Control New tool to monitor customers’ carbon footprint: • Tracks fuel use by type (ethanol, common gas, diesel, biodiesel) • Simulates carbon emissions and fuel budget if the environmentally friendly solution is chosen Emission Fuel Consumption (liters) May
Slide 174: The Competitive Advantage of the Watts Platform
The Competitive Advantage of the Watts Platform Platform flexibility enables fast customization and innovation with an offer of new services (toll, parts, parking…) Business Rules Call Center Management & Opera- Financial Processing tions Platform ERP May 18.2010 174
Slide 175: Chile: Rollout Adapted to the Local Market
Chile: rollout adapted to the local market... Petrobras RFP in Oct. 2008 to replace Essocard after acquisition of 180 stations 1,000 corporate clients with 7,000 active cards yielding $70m in annual volume Won by New Services thanks to the uniqueness of its value proposition: - Not only robust
Slide 176: Leveraging Existing Product Framework for Quick Rollout
…while leveraging existing product framework for quick rollout Brazil only 4 months Chile May 18.2010 176
Slide 177: Conclusion
Conclusion Leadership position in Latin America with potential new countries to open Fleet cards: a large and fast growing market Advanced technology to leverage growth and innovation New value-added services: maintenance and on-the-road expenses May 18.2010 177
Slide 178: Ecochèque in Belgium: An Innovative Employee Benefit
Ecochèque in Belgium: An Innovative Employee Benefit Bernard Rongvaux, Chief Operating Officer Northern Europe, Middle-East and Africa
Slide 179: Ecocheque in Belgium
Ecocheque in Belgium Green Purchasing power Employee Benefit A government-supported union initiative to raise environmental awareness and increase employee purchasing power May 18.2010 179
Slide 180: An Environmentally Friendly Employee Benefit
An environmentally friendly employee benefit To purchase environmental Employee benefit goods and services Energy conservation Exempt from payroll taxes Beneficiary pays no tax Water conservation Delivery process Encourage sustainable mobility Industry-wide or company collective bargaini
Slide 181: Key Figures
Key figures Designed and launched in less than 6 months! Tax incentive Acceptance Tax incentive Product system defined network organized system finalized launched December 2008 March 2009 May 2009 June 2009 Fast ramp-up First 9 Months – Key Figures 20,500 clients 5,370 affiliates 700,000 b
Slide 182: Ecocheque – Key Takeaways
Ecocheque – Key Takeaways Key Success Factors Intensive active affiliation process (time-to-market) Firm affiliate commitment to accepting the vouchers only for environmentally friendly products and services Intensive advertising Industry-specific marketing drives Marketing partnerships
Slide 183: A Successful Acquisition and Integration: Exit Group
A Successful Acquisition and Integration: Exit Group in the Czech Republic Arnaud Erulin, Chief Operating Officer Central Europe and Scandinavia
Slide 184: Czech Market Overview
Czech market overview #4 170,000 end-users #2 14% New Services: 330,000 27% #3 41% end-users 16% 188,000 market share end-users post acquisition #1 43% 520,000 users 1.2 million meal voucher end-users €640 million in issue volume New Services, #2 in a relative highly penetrated market (39%) Gain IV
Slide 185: A Complex Operational and Legal Set-Up
A complex operational and legal set-up 4,000 users 20,500 users 5,500 users 21,200 users 4,000 users 3,000 users 51,300 users 8,800 users 19,200 users 15,200 users 5,800 users 6,500 users 12 Companies/165,000 end-users to take over and integrate €15 million in enterprise value May 18.2010 185
Slide 186: A Close Geographic Fit
A close geographic fit New Services Regional Market Share • 2008 • 2010 CD 39% CD 39% SDX 38% SDX 38% 8% AS EG 8% 6% 14% AS 14% EG 54% AS 56% 53% SDX 29% 2% CD 10% SDX 58% CD CD %4% 56% SDX 29% SDX 58% CD 26% EG 1% AS 2% 12% CD 26% AS 12% 54% EG 1% CD 10% 10% AS 10% EG 2% 62% 18% 18% 7% 7% AS CD 18%
Slide 187: Overview of the Negotiation Process
Overview of the negotiation process May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 LOI Voucher Due diligence switchover October 1, 2009 Signing preparation Deal closing X 12 Integration preparation Rollout June 8, 2009 September 18, 2009 September 30, 2009 Last LOI Signed Final Signing Final Closing A co
Slide 188: Two Different Cultures
2 different cultures €162m in issue volume €78m in issue volume 14,000 customers 10,000 customers 90 employees 60 employees 8 sales agencies (7% of IV ) 20 sales agencies (49% of IV) Exit Group characteristics Different business model Different clients Very few value-added services
Slide 189: 3-Step Integration Plan
3-step integration plan Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Secure Most tasks anticipated during the negotiation phase Communication 2.9 million vouchers produced and delivered by Oct. 1 Affiliate signing 1,450 additional affiliate contracts signed 84% of IV secured by the end of October
Slide 190: 3-Step Integration Plan
3-step integration plan Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Secure Optimize 5% of Exit Group staff left after 3 months New governance 95% of IV secured by Company integration events Dec. 2009 Optimize initial Sales organization €300K invested in IT New marketing tools (Web, collateral,
Slide 191: 3-Step Integration Plan
3-step integration plan Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Secure Optimize Maximize Define Target organization (HR) Integrate sales teams Optimize customer values September 30, 2009 Final Closing Optimize agency network Begin up-selling and cross-selling Acquisition accretive as of 2010 201
New Services Holding S.A. (Edenred) — Investor Day (May 2010) on 6ix