Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — FY2019-2020 Earnings Presentation
45 slides from Elior Group Sa's earnings presentation, Nov 25, 2020
Slide 1: Full year 2019-2020 Financial results
November 25, 2020 Full year 2019-2020 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: Full year 2019-2020 Financial results
November 25, 2020 Full year 2019-2020 Financial results
Slide 4: Outstanding commitment of our teams since the onset of this crisis
Outstanding commitment of our teams since the onset of this crisis Elior Services Elior Restauration 1
Slide 5: Strong achievements in a complex year
Strong achievements in a complex year 2
Slide 6: 2019 – 2020: a challenging year where Elior stayed the course
2019 – 2020: a challenging year where Elior stayed the course Elior was on track to achieve its fiscal 2019-2020 objectives: › Ambitious objectives that we were on track to deliver: › organic growth +2% and adjusted EBITA margin+10bps Elior’s agility through pandemic has delivered: › Drop-through be
Slide 7: Corporate Social Responsibility Performance (CSR)
Corporate Social Responsibility Performance (CSR) Act, Measure, Prove Healthy Choice Sustainable ingredients % vegetarian recipes: increase from 15.5 to 20% Responsible ingredients sourcing: 21.6% 20% increase of our sustainable Highlight: Highlight: seafood offer: now more than 1 out of 3 are respo
Slide 8: Elior's proven agility at the service of its clients
Elior’s proven agility at the service of its clients 5
Slide 9: Advantageous diversified market mix
Advantageous diversified market mix 25% 10% 38% 90% 62% 29% 46% Higher Education Others White collars Others B&I Education Healthcare Based on full year 2018-2019 revenues 6
Slide 10: Asset, resource & cost flexibility
Asset, resource & cost flexibility Asset flexibility: Resource & cost flexibility: › Central kitchen & banqueting: social services (US) › Use of furlough and deferred payment programs where available › Grab&Go (Spain) › Urban360 (Italy) › Transfer of employees from one activity (B&I) to another (Hea
Slide 11: Significant improvement on retention
Significant improvement on retention New Business Lost contracts Like for Like Organic growth +5.2% -8.2% FY20 A 140bps improvement -16.7% -19.7% FY19 +7.5% -9.6% +1.3% -0.8% 8
Slide 12: Full Year 2019-2020: selected contracts wins
Full Year 2019-2020: selected contracts wins B&I Education Health and Welfare › Trenitalia-Night train service › City of Rome › Hôpital Sainte Camille › Ministère de la culture › Ville d’Herblay › Texas Health Hospital Frisco et de la communication › Harmony Public Schools-NA › CHU Bordeaux-Services
Slide 13: By accelerating the execution of its strategic plan, Elior will be ideally positioned
By accelerating the execution of its strategic plan, Elior will be ideally positioned when economies recover 10
Slide 14: Elior is accelerating its transformation
Elior is accelerating its transformation 5 Value Creation Drivers 1 ATTRACTIVE MARKETS CATERING CUSTOMER 5 CENTRICITY/CSR 2 CASH MANAGEMENT SERVICES CROSS-SELL /UPSELL COST CLIENT OPTIMIZATION RETENTION 4 3 11
Slide 15: Elior, major player to support economic stimulus plans
Elior, major player to support economic stimulus plans Elior’s team cooked and distributed Serunion guaranteed 34 million meals to vulnerable the distribution of 18,000 meals populations during the first lockdown to Andalusian students during the lockdown 12
Slide 16: Consistent initiatives have increased the retention rate
Consistent initiatives have increased the retention rate Creation of Retention Systematic post-mortem Implementation of a risk Manager positions in all analysis of lost contracts assessment tool to monitor countries & BUs clients at risk in the Group CRM application 13
Slide 17: New Elior Plan makes clients' needs the focus of our transformation
New Elior Plan makes clients’ needs the focus of our transformation 14
Slide 18: New models in B&I: more flexible in terms of when and where
B&I New models in B&I: more flexible in terms of “when and where” without compromising on quality Service mode In house Outsourced Delivery Connected fridges Click to serve Click&collect Grab&Go Assisted service On-site On-site for Central Kitchen Central Kitchen Food Manuf. Food service Production
Slide 19: New offers that respond to new consumption trends
B&I New offers that respond to new consumption trends Aligned with the high street quality standards Encompassing CSR requirements: healthy, transparent, renewable packaging, locally sourced Offers that meet the new consumption trends and commercial catering code 16
Slide 20: Production modes allow us to roll out new solutions by leveraging existing assets
B&I Production modes allow us to roll out new solutions by leveraging existing assets Distinct from point of consumption Supporting longer shelf-lifes Ensuring cost competitiveness 17
Slide 21: Digital expertise and production innovations enabling innovative distribution systems
B&I Digital expertise and production innovations enabling innovative distribution systems Agile & flexible formats allowing extended service hours With limited or no on-site staff Enabled by digital tools on par with the Foodtech experience 18
Slide 22: Elior proactive during the COVID-19 crisis
Education Elior proactive during the COVID-19 crisis 19
Slide 23: Hyper-personalized food for care homes and deliveries
Health and Welfare Hyper-personalized food for care homes and deliveries 20
Slide 24: Elior Services consolidates its leadership position in bio-cleaning
Services Elior Services consolidates its leadership position in bio-cleaning 60 new COVID-19 Afnor’s certifications bio-cleaning protocols for our clients (72 criteria) 21
Slide 25: Financial results 2019-2020
2019-2020 Financial results 22
Slide 26: Fourth quarter revenue analysis
Fourth quarter revenue analysis (in €m) -21.0% +1.8% +2.0% 1,098 1,100 1,079 2 0 -227 246 852 Q4 2019 Organic Q4 2020 Covid-19 Impact Q4 2020 Organic Voluntary Tesco Q4 2020 Organic Revenue Growth Organic revenue (Organic) Revenue excl. exits (Italy) (UK) Revenue excl. specific Covid-19 events and c
Slide 27: Second half revenue analysis
Second half revenue analysis (in €m) -34.7% +1.6% +1.9% 2,366 2,374 2,329 6 2 -807 845 1,521 H2 2019 Organic H2 2020 Covid-19 Impact H2 2020 Organic Voluntary Tesco H2 2020 Organic Revenue Growth Organic Revenue (Organic) Revenue excl. exits (Italy) (UK) Revenue excl. specific Covid-19 events and co
Slide 28: Full year revenue analysis (1/2)
Full year revenue analysis (1/2) (in €m) 4,923 -19.4% -19.4% 4,923 France contract catering 3,967 -968 & Services 2,212 3,967 4 8 1,778 International contract catering 2,689 Corporate 2,182 & Other -19.7% +0.1% +0.2% 22 7 2018- 2019 2019-2020 2018 - 2019 Organic Perimeter Forex 2019 - 2020 Growth ef
Slide 29: Full year revenue analysis (2/2)
Full year revenue analysis (2/2) (in €m) -19.7% +0.7% +0.9% +1.7% 4,956 4,967 5,006 4,923 11 22 17 -968 1,002 3,955 2018 - 2019 Organic 2019 - 2020 Covid-19 2019 - 2020 Strikes impact 2019 - 2020 Voluntary Tesco 2019 - 2020 Revenue Growth Organic Impact Organic Organic exits (UK) Organic revenue (Or
Slide 30: Full year EBITA analysis (1/2)
Full year EBITA analysis (1/2) (in €m) Group Adjusted EBITA Group Adjusted EBITA margin 176 176 France contract catering 109 & Services -10 3.6% International contract 90 catering -13 2,689 -23 Corporate -30 -1.7% & Other -26 -69 -69 2018 - 2019 2019 - 2020 2018 - 2019 2019 - 2020 27
Slide 31: Full year EBITA analysis (2/2)
Full year EBITA analysis (2/2) (in €m) 176 4 3.6% -268 -1.8% -1.7% 2 15 2 -71 -69 2018 - 2019 D&A Covid-19 Corporate Contract 2019 - 2020 IFRS 16 2019 - 2020 Impact & Others Catering before IFRS 16 Impact & Services 28
Slide 32: Full year P&L analysis (after IFRS16)
Full year P&L analysis (after IFRS16) (in €m) 2019-2020 2018-2019 YoY change Revenue 3,967 4,923 -19% ADJUSTED EBITA (69) 176 (245) Adjusted EBITA margin -1.7% 3.6% (5,3)pts Share based compensation - 5 (5) EBITA (69) 181 (250) Acq. Intangible amortization (20) (21) +1 Impairment of goodwill (123) -
Slide 33: Financial result
Financial result (in €m) 2019 - 2020 2018 - 2019 YoY change Financial interests (net) (32) (63) +31 Amortization of issuing fees (2) (11) +9 Net foreign exchange (2) 15 -17 Impairment of non consolidated entities (6) (10) +4 Other 4 - +4 Net financial expenses (38) (69) +31 30
Slide 34: Tax
Tax (in €m) P&L tax Taxes paid (in €m) 2020 2019 YoY (in €m) 2020 2019 YoY Total (83) 4 -87 Total (11) (24) +13 Deferred (68) 30 -98 Current (15) (26) 11 31
Slide 35: Free cash flow analysis: EBITDA to FCF
Free cash flow analysis: EBITDA to FCF (in €m) 53 -89 35 -15 -23 -14 -62 -73 58 -23 -11 FY 2020 CAPEX Change US minority Securitization Other Cash FY 2020 Op. Tax Paid FY 2020 Free IFRS 16 FY 2020 Free Adjusted in OWC shareholder Items FCF Before Cash Flow Impact on Cash Flow EBITDA s buyout IFRS16
Slide 36: Net debt analysis before IFRS16
Net debt analysis before IFRS16 (in €m) -228 -539 -767 -73 -17 -13 -7 0 -21 -50 -48 -€119m Sept. 2019 Free Cash Flow Financial Acquisitions Discontinued FX and Share Buy back Dividends PAI Price Sept. 2020 Net Debt Fees Activities Other paid Adjustment Net Debt Including IFRS 16: net debt at €995m c
Slide 37: Liquidity
Liquidity Elior’s Available Liquidity at the end of September 2020 was €630 million: › Includes cash of €38 million › Remaining available credit › Covenant ‘holiday’ extended. after drawing down of the lines amount to €592 Next test will be at the end of revolving credit facilities of million. 2022
Slide 38: Key Takeaways
Key Takeaways: We enter 2021 with an optimized cost base that will drive higher profitability over the long term 35
Slide 39: Outlook
Outlook B&I Education Health and Welfare 36
Slide 40: Summary
Summary We enter 2021 with an optimized cost base that will drive higher profitability over the long-term Proactively managing Delivering outstanding Maximizing our Transforming our business liquidity and our financing commitment by our teams solid and diversified via 5 value creation capacity thank
Slide 41: Q&A
Q&A
Slide 42: Appendix
Appendix 39
Slide 43: Free cash flow analysis: year-on-year
Free cash flow analysis: year-on-year (in €m) -299 227 -245 -23 -15 25 -73 58 -23 -43 12 -3 FY 2019 Adjusted CAPEX Change US minority Securitization Other Cash Tax Paid FY 2020 Free IFRS 16 FY 2020 Free Free Cash Ebitda in OWC shareholders Items Cash Flow Impact on Cash Flow Flow buyout Before IFRS
Slide 44: Full year 2020 net result excluding one-offs
Full year 2020 net result excluding one-offs (in €m) +308 -179 105 -37 123 2,689 117 -487 Net Result Non-recurring Impairment of Tax effect on Unrecognized tax Net Result excl. as reported items, gross goodwill, gross non-recurring items losses and valuation one-offs allowances 41
Slide 45: IFRS16 Impact
IFRS16 Impact (in €m) FY 2020 FY 2020 IFRS 16 P&L As Published Before IFRS 16 Impact Other operating expenses (420) (479) +59 D&A (178) (121) (57) Recurring operating profit (89) (91) +2 Adjusted EBITA (69) (71) +2 Financial expenses (net) (38) (31) (7) Income tax (83) (86) +3 Net result from discon