Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — H1 2023-24 Earnings Presentation
38 slides from Elior Group Sa's earnings presentation, 2024
Slide 1: Half-Year Results 2023-2024
2023-2024 Half-Year Results 1
Slide 2: Disclaimer
2023-2024 HALF-YEAR RESULTS eliorcroup e 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 dooument has not been independently
Slide 3: Agenda
01 02 03 04 05 Introduction Financial Results Business Review Outlook & Conclusion Q&A eliorcroup e
Slide 4: Introduction
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Slide 5: H1 2023-24 Highlights
H1 2023-24 Highlights Strong performance resulting from the strategy implemented since April 2023 3.2% 5.9% At breakeven +150bps €131m 4.1x €30m 5
Slide 6: Financial Results
Financial Results 6
Slide 7: Solid organic growth, with the DMS acquisition lifting total revenue
Solid organic growth, with the DMS acquisition lifting total revenue +645 (+26.0%) 3,123 -18 517 2,478 146 503 14 +5.9% +20.8% -0.7% H1 2023 Organic Scope FX H1 2024 DMS Cater to You revenue growth revenue (US) 7
Slide 8: Good momentum in L4L boosted by catch-up on prices
Good momentum in L4L boosted by catch-up on prices +146 (+5.9%) 92.3% -158 222 -34 2,624 93.6% 90 2,478 26 +1.0% +3.6% +9.0% -6.4% -1.3% H1 2023 L4L volumes Price Openings Closings Voluntary exits H1 2024 91.3% revenue and other revisions and Organic drivers renegotiations revenue Net development Li
Slide 9: Operational profitability improving steadily
Operational profitability improving steadily 100 +€59m +150bps 3.2% 41 1.7% H1 2023 H1 2024 H1 2023 H1 2024 adj. EBITA adj. EBITA margin margin 9
Slide 10: Thanks to price negotiation efforts and operational efficiencies
Thanks to price negotiation efforts and operational efficiencies 13 -14 100 29 6 20 41 5 H1 2023 L4L volumes and Price vs costs Net development Efficiencies Scope Other and Forex H1 2024 adj. EBITA other drivers inflation balance & synergies adj. EBITA 10
Slide 11: Net profit at a turning point
Net profit at a turning point, Elior will pursue this momentum with method and confidence Simplified income statement (in €m) H1 2023-24 H1 2022-23 YoY change Revenue 3,123 2,478 645 Adjusted EBITA 100 41 59 Adjusted EBITA margin 3.2% 1.7% +150bp Share-based compensation 1 (3) 4 Net amort. of intang
Slide 12: Sharp improvement in OWC drives strong cash conversion
Sharp improvement in OWC drives strong cash conversion 188 -13 169 -43 -5 83 -38 131 -41 H1 2024 Capex IFRS16 lease Change in op. Non-recurring Tax paid H1 2024 Reversible Normalized adj. EBITDA repayments working capital cash FCF working cap FCF recovery 12
Slide 13: Elior back to positive cash generation in H1
Elior back to positive cash generation in H1 improving by €146m year-over-year on a normalized basis 169 -6 2 -38 131 128 -10 -8 78 -15 H1 2023 Adj. EBITDA CAPEX IFRS16 lease Change in op. Tax paid Other H1 2024 Reversible Normalized FCF payments working capital cash items FCF working cap FCF recove
Slide 14: Net debt reduced by €137m in the first semester
Net debt reduced by €137m in the first semester -44 20 -8 -1,256 169 -1,393 Sep 30, 2023 FCF Interest paid & Change in FX & other Mar 31, 2024 Net debt finance costs IFRS 16 lease liabilities Net debt 14
Slide 15: Deleveraging ahead of schedule
As a result, Elior Group is deleveraging ahead of schedule and will pursue its efforts to maintain the dynamic covenant holiday 7.5 8.3 7.1 6.0 5.25 4.5 5.4 4,1 30/09/2022 31/03/2023 30/09/2023 (*) 31/03/2024 31/09/2024 15
Slide 16: Liquidity improves by €29m in the first semester
Liquidity improves by €29m in the first semester including first repayment of state guaranteed loan -6 -20 -44 131 -28 342 -4 313 Sep 30 2023 Normalized FCF Cash from on- NEU CP Interest paid & PGE (state FX and other Mar 31 2024 Available liquidity balance sheet repayments other finance costs guara
Slide 17: Business Review
-YEAR RESULTS 2023-2024 HALF eliorcroup eC 03 Business
Slide 18: Pro forma revenue and EBITA up across all segments
Pro forma revenue and EBITA up across all segments +158 +51 (+5.3%) (+105%) 3,123 100 49 2,965 +5.7% +4.3% H1 2023 Contract Multiservices H1 2024 H1 2023 Contract Multiservices Corporate H1 2024 Revenue Catering Revenue EBITA Catering and Other EBITA 18
Slide 19: Confirmed priority: pursue deleveraging by strengthening FCF generation
Confirmed priority: pursue deleveraging by strengthening FCF generation through continued efforts on all profitability levers 19
Slide 20: Food cost inflation finally cooling to below FY22 levels
Food cost inflation finally cooling to below FY22 levels France US UK Spain FY 22 H1 23 H2 23 H1 24 20
Slide 21: Maintaining pricing momentum
Maintaining pricing momentum +114 426 +144 283 312 +4.4% 79 139 Sep-22 Mar-23 Sep-23 Mar-24 21
Slide 22: Good discipline in net business development and portfolio streamlining
Good discipline in net business development and portfolio streamlining -70 144 74 -34 64 30 +3.2% -1.6% +1.6% +2.6% -1.3% +1.3% 9 7 6 5 2 1 4.9% -2.9% 12.1% 8.1% -2.9% 20.3% Net Vol. Net-net Net Vol. Net-net dev. exits total dev. exits total 22
Slide 23: Delivery of synergies well underway
Delivery of synergies well underway 16 30 27 7 H2 2023 H1 2024 H2 2023 H1 2024 23
Slide 24: Reinforced by sustained efforts on cost efficiencies
Reinforced by sustained efforts on cost efficiencies €29m 20 30 29 7 9 20 23 20 €29m H1 H2 H1 2023 2023 2024 24
Slide 25: Outlook & Conclusion
2023-2024 HALF-YEAR RESULTS N a eliorcro
Slide 26: Outlook for FY2023-2024
2023-2024 HALF-YEAR RESULTS Outlook for FY2023-2024 Vas FY2023-24E Organic revenue growth: 4% to 5% Further contract portfolio streamlining in 2023-24 FY2023-24E Adjusted EBITA margin at least 2.5% FY26E cost synergies target of €44m eliorcroup e las 30/09/2024E Net debt / EBITDA ratio around 4.0x R
Slide 27: Conclusion
2023-2024 HALF-YEAR RESULTS eliorcroup e Conclusion Amore agile and efficient Group with profitability trending upwards... ... and growth sustained by closer relationships with clients | Our strategy is starting to bear fruit with streamlined internal processes creating significant cost efficiencies
Slide 28: Q&A
2023-2024 HALF-YEAR RESULTS y B eliorcroup eC
Slide 29: Appendices
-2024 HALF-YEAR RESULTS 2023 elioreioup © Appendic es \® a “ore
Slide 30: Updated other financial considerations for FY2023-24
Updated other financial considerations for FY2023-24 - - 30
Slide 31: Reported revenue by geographic area
Reported revenue by geographic area 2023-24 H1 2022-23 H1 H2 FY France 1,607 France 1,112 1,428 2,540 Europe (excl. France) 841 Europe (excl. France) 719 704 1,423 Rest of the World 675 Rest of the World 647 613 1,260 GROUP TOTAL 3,123 GROUP TOTAL 2,478 2,745 5,223 31
Slide 32: Pro forma revenue by operating segment
Pro forma revenue by operating segment 2023-24 H1 Pro forma 2022-23 H1 H2 FY Contract Catering 2,293 Contract Catering 2,169 1,982 4,151 Multiservices 823 Multiservices 789 804 1,593 Sub-total 3,116 Sub-total 2,958 2,786 5,744 Corporate & Other 7 Corporate & Other 7 9 16 GROUP TOTAL 3,123 GROUP TOTA
Slide 33: Pro forma adjusted EBITA by operating segment
Pro forma adjusted EBITA by operating segment 2023-24 H1 Pro forma 2022-23 H1 H2 FY Contract Catering 91 Contract Catering 49 (2) 47 Multiservices 16 Multiservices 9 29 38 Sub-total 107 Sub-total 58 27 85 Corporate & Other (7) Corporate & Other (9) (8) (17) GROUP TOTAL 100 GROUP TOTAL 49 19 68 33
Slide 34: Income tax breakdown
Income tax breakdown (in €m) H1 2023-24 H1 2022-23 YoY change Tax on added value (CVAE) (5) (4) (1) Current tax (9) (0) (9) Deferred tax (6) 1 (7) Total income tax (20) (3) (17) 34
Slide 35: Breakdown of change in working capital
Breakdown of change in working capital -4 83 15 -8 20 -8 41 6 5 Inventories Receivables Payables Social Tax Other Net change in working cap. 35
Slide 36: Alternative performance indicators
Alternative performance indicators • • • • • • • 36
Slide 37: Financial calendar for fiscal 2023-2024
Financial calendar for fiscal 2023-2024 37
Slide 38: Thank you!
2023-2024 HALF-YEAR RESULTS & eliorcroup eC