Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — FY2018-2019 Earnings Presentation
35 slides from Elior Group Sa's earnings presentation, Dec 4, 2019
Slide 1: Full Year 2018-2019 Financial Results
FULL YEAR 2018 - 2019 FINANCIAL RESULTS
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: 01
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Slide 4: 2018 - 2019 Objectives Achieved
2018 - 2019 Objectives Achieved OBJECTIVE DELIVERED Organic growth close -1% from continuing activities* Organic growth close -0.8% from continuing activities* ~1% additional revenue growth from acquisitions** +1.4% additional revenue growth from acquisitions** Stable adjusted Ebita margin at 3.
Slide 5: New Elior
New Elior Pure player, Attractive Profile to Create Value second largest worldwide, in contract catering and services Sustainably strengthened COMMITTED Asset light business model in growing balance sheet TO CSR * industry Strong margin improvement and cash generation potential *CSR: Corporate Socia
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Slide 7: Facts & Figures
Facts & Figures over 5 million 6 23,500 guests every day countries restaurants and points of sale 110,000 €4.9 billion 2,300 employees in revenue sites handled by Elior Services 6
Slide 8: Strong presence in main countries
Strong presence in 6 main countries EUROPE NORTH AMERICA No.4 No.5 in contract catering in the in contract catering in United Kingdom the United States No.1 in contract catering & in No.1 in contract catering cleaning services for in Italy Healthcare in France No.1 INDIA In contract catering in Spai
Slide 9: Our Missions
Our Missions CATERING SERVICES Every day, our We earn our guests’ experts are committed trust every day by to providing excellent serving services at our great-tasting, customer locations healthy food. and those occupying them 8
Slide 10: Elior, responsible by nature
Elior, responsible by nature SOCIETAL ENVIRONMENTAL ECONOMICAL • 29,000 generation Z hired* • ~1 out of 3 seafood • €1.5bn of procurement • 19,270 senior hired** sustainably sourced with a strong focus on local (+6.8% yoy at group level) sourcing • 49% of management • 83.3% of Elior sites sorting •
Slide 11: Progress on the pillars of our Positive Foodprint
Progress on the 4 pillars of our Positive Foodprint HEALTHY SUSTAINABLE THRIVING PEOPLE CIRCULAR PRIORITIES CHOICES INGREDIENTS AND COMMUNITIES ECONOMY Progressing the Progress the share of local, Implement systematic Biowaste share of plant-based and organic and responsible Boost internal promotion
Slide 12: Recipe for success Value Creation Drivers
Recipe for success 5 Value Creation Drivers 11
Slide 13: Key Objectives Continental Europe
Key Objectives Continental Europe Where We Are Leader: Be The Best Performing Player France Italy Spain Elior Services • Leverage CSR as Rebalance portfolio • Improve margins • Strengthen differentiator towards: • Leverage further leadership position in • Further embrace • private sector adjacencies
Slide 14: Key Objectives Accelerate Growth Countries
Key Objectives Accelerate Growth Countries Where We Are Challenger: Significantly Outpace Market Growth UK USA INDIA Outperform • Complete integration of Leverage technology to the leading trio through: past acquisitions become: • ambitious conquest • Adopt a customer- • most valuable pure play stra
Slide 15: Key innovations
Key innovations Capture Each Moment SMEs and Restaurants Opportunities of Consumption without Kitchens with Seniors 14
Slide 16: Key Achievements
Key Achievements Organization & People: • Enhance health and Safety policy, organization and initiatives • Strengthen corporate and country management committees through optimized organizations and key talents additions • Ensure a robust Succession Planning process and foster internal mobility and p
Slide 17: Key Achievements
Key Achievements Contracts: • Elior France: Sense, SEB HQ, Chennevières sur Marne city • Elior India: Goldman Sachs, LinkedIn, Cisco • Elior Italy: AGCO Laverda, ICS International School • Elior North America: California Academy of Sciences, Bowie State University, Aspire • Elior Spain: National Art
Slide 18: Performance
PERFORMANCE
Slide 19: Positive contribution of the AREAS Transaction
Positive contribution of the AREAS Transaction Announced on Enterprise value: Capital gains: November 30th €1,542 million €208 million Closed on July 1st 19
Slide 20: Fourth Quarter Revenue Analysis
Fourth Quarter Revenue Analysis Group Revenue (€ in million) -0.6% -0.6% 1,078 11 1,071 1,078 -16 477 -9 7 1,071 489 596 578 -0.8% +0.6% +1.1% -1.5% 5 4 Q4 2018 Organic Growth Perimeter Forex IFRS15 Impact Q4 2019 Q4 2018 Q4 2019 effect France contract catering & services International contract cate
Slide 21: Full Year Revenue Analysis (1/2)
Full Year Revenue Analysis (1/2) Group Revenue (€ in millions) +0.8% 61 -49 4,923 +0.8% 4,886 4,923 4,886 66 -40 2,185 2,212 2,677 2,689 24 22 -0.8% +1.4% +1.2% -1.0% 2017 - 2018 2018 - 2019 2017 - 2018 Organic Growth Perimeter Forex IFRS15 Impact 2018 - 2019 France contract catering & services effe
Slide 22: Full Year Revenue Analysis (2/2)
Full Year Revenue Analysis (2/2) Group Revenue (€ in million) +1.3% 4,898 4,886 -49 (-0.8%) 59 4,837 4,839 -40 42 4,797 -1.0% -0.8% +0.8% +1.3% 2017 - 2018 IFRS15 2017 - 2018 Organic Growth 2018 - 2019 Voluntary 2018 - 2019 Alabama, MoD 2018 - 2019 Revenue impact restated organic revenue exits organ
Slide 23: H2 Adjusted EBITA Analysis (1/2)
H2 Adjusted EBITA Analysis (1/2) (€ in millions) 53 Greater commercial selectivity & operational discipline 12 44 0 2.3% -2 1.9% (0) bps (10) bps +50 bps H2 2018 Actual D&A Corporate & Other Contract Catering H2 2019 Actual & Services 23
Slide 24: Full Year Adjusted EBITA Analysis (1/2)
Full Year Adjusted EBITA Analysis (1/2) (€ in millions) Group Adjusted Group Adjusted EBITA EBITA margin +0.5% +0.5% 176 176 175 175 98 109 3.6% 3.6% 92 90 -15 -23 2017 - 2018 2018 - 2019 2017 - 2018 2018 - 2019 France contract catering & services International contract catering Corporate & other 24
Slide 25: Full Year Adjusted EBITA Analysis (2/2)
Full Year Adjusted EBITA Analysis (2/2) (€ in millions) 176 175 Impact of past -7 capex increase 17 -9 IT investments 3.6% 3.6% Greater commercial selectivity & operational discipline (10) bps (20) bps +40 bps FY 2018 Actual D&A Corporate & Other Contract Catering FY 2019 Actual & Services 25
Slide 26: P&L Analysis
P&L Analysis € in millions 2018 - 2019 2017 - 2018 YoY change Revenue 4,923 4,886 +0.8% Adjusted EBITA 176 175 +1 Adjusted EBITA margin 3.6% 3.6% = Share based compensation 5 (29) 34 US Stock Ownership Plan EBITA 181 146 +35 Acq. intangible amortization (21) (19) -2 Impairment of goodwill (64) +64 R
Slide 27: Focus on Tax
Focus on Tax € in millions 2018 - 2019 2017 - 2018 Current Income Tax* (4) (6) Deferred Tax Asset 30 25 CVAE** (21) (22) Income Tax 4 (2) *Including net tax credit on Areas transaction of €20 million in 2018 - 2019 **CVAE: Cotisation sur la valeur ajoutée des entreprises; company value-added contrib
Slide 28: Free Cash Flow Analysis
Free Cash Flow Analysis (€ in millions) -114 -22 29 60 298 251 222 FY 2019 CAPEX Change in OWC Non recurring Cash FY 2019 Securitization FY 2019 Adjusted EBITDA Adjusted Op. FCF Adjusted Op. FCF excl. Securitization 59 2 55 48 251 -2 89 FY 2018 Adjusted Ebitda CAPEX Change in OWC Non recurring Secur
Slide 29: Net Debt Analysis
Net Debt Analysis (€ in millions) Leverage ratio: Leverage ratio: 3.6x EBITDA* 1.8x EBITDA* -50 -15 -539 1,319 -54 -33 -9 227 -94 -1,830 Sept. 2018 Free Cash Interests Dividends Net Discontinued Net Share FX and other Sept. 2019 Net Debt Flow Paid Acquisitions activities Deleveraging buy back Net De
Slide 30: Outlook
A ourTLoOK
Slide 31: Mid-term Ambitions
Mid-term Ambitions Annual Adjusted EBITA CAPEX Organic Growth Margin an increase of between of 2% to 4% 10 and 30 Below 3% basis points of revenue per year 31
Slide 32: 2019 - 2020 Objectives
2019 - 2020 Objectives • Organic growth of 2% for the full year: • Dynamic growth will become visible as of the second quarter • Impact of voluntary exits in Italy and contract termination in the UK still significant in Q1 and softening throughout the year • Adjusted EBITA margin increase of at leas
Slide 33: Return to Shareholders
Return to Shareholders • Return to shareholders up to €350 million (cumulative) through 2021*: • €50 million share buyback completed at end-September 2019 • €0.29 per share dividend recommended for AGM approval (payout ratio to 50% from 40% year ago) • Resume share buyback over the period *Dependi
Slide 34: Financial Agenda
Financial Agenda • January 22, 2020: First quarter revenues 2019 - 2020 • March 20, 2020: AGM • May 27, 2020: Half year results 2019 - 2020 • July 23, 2020: Third quarter revenues 2019 - 2020 • November 25, 2020: Full year results 2019 - 2020 34
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