Edenred Sa · EURONEXT:EDEN
Edenred Sa — Investor Presentation (August 2018)
48 slides from Edenred Sa's investor presentation, August 2018
Slide 1: Investors presentation
Investors presentation August, 2018 1
Slide 2: Agenda
Agenda 1. Edenred In A Nutshell 2. Fast Forward Strategic Plan 3. Financial Performance 4. Corporate Social Responsibility & Governance 5. Deep Dive Into Business Lines 2
Slide 3: At the heart of a win-win ecosystem
AT THE HEART OF A WIN-WIN ECOSYSTEM 44 million Public institutions employee users + traceability and efficiency Distribution of the + Use of the service service purchasing power and simplicity + + performance and €26 billion revenue 770,000 attractiveness business volume and loyalty 1.5 million corp
Slide 4: One leadership based on four know-how
ONE LEADERSHIP BASED ON FOUR KNOW-HOW Financial Intermediation Selected ecosystems World leader in transactional solutions for FinTech RegTech Issuer & Processor Compliance companies, employees and merchants Data Intermediation Big data & Analytics 4
Slide 5: 3 business lines
3 BUSINESS LINES 66%* 25%* 9%* EMPLOYEE BENEFITS FLEET & MOBILITY SOLUTIONS COMPLEMENTARY SOLUTIONS #1 in Latin America #1 worldwide #2 in Europe** More than 100 solutions for Corporate Payment A full range of solutions food to help companies manage employee Incentive & Rewards well-being bu
Slide 6: An international leader with a multi-local presence
AN INTERNATIONAL LEADER WITH A MULTI-LOCAL PRESENCE 8,000 employees in 45 countries Employees by region (2017) Europe: 47% (of which 16% in France) Latin America: 40% Rest of the World: 13% 6
Slide 7: Agenda
Agenda 1. Edenred In A Nutshell 2. Fast Forward Strategic Plan 3. Financial Performance 4. Corporate Social Responsibility & Governance 5. Deep Dive Into Business Lines 7
Slide 8: Fast Forward strategic plan
FAST FORWARD STRATEGIC PLAN Accelerate our development through the Set ambitious organic growth targets integration of our acquisitions Mid-term annual targets (Like-for-Like growth) Boost performance of our acquisitions & > +7% Operating generate synergies to Revenue … position ourselves as a glo
Slide 9: 2016-2017-H1 2018: Outperformance
2016-2017-H1 2018: OUTPERFORMANCE An organic growth higher than objectives Reported figures in € million Annual medium-term (1) Like-for-like growth figures FY 2016 FY 2017 H1 2018 objectives Operating revenue 1,000 1,073 1,272 640 +8% +9% +12% > +7% 2015 2016 2017 H1 2018 Operating EBIT 272 304 370
Slide 10: Acquisitions
ACQUISITIONS Successful integrations FY 2017 Reported growth 2 transformational acquisitions in Fleet & Mobility Solutions +1,300 employees joining the Group +19% Operating revenue European expansion Operating EBIT +22% Building a leader in Brazil Business & costs synergies Funds from operations +30
Slide 11: A digital company
A DIGITAL COMPANY Ambition: more than 85% Edenred’s business volume will be digital by 2020 DIGITAL % OF BUSINESS VOLUME IN 2017 By geography By business line Latin America Fleet & Mobility 97% +1pt vs 2016 99% Solutions Rest of the World Employee 68% 79% +6pts vs 2016 78% Benefits Complementary Eur
Slide 12: Unique technological leadership
UNIQUE TECHNOLOGICAL LEADERSHIP A global platform to fuel the Fast Forward growth strategy Edenred’s global technology platform MULTI-TECHNOLOGY OMNICHANNEL Mobile Cards NFC tag Smart transfers PROPRIETARY - NFC - Plastic/virtual - QR code - Prepaid/postpaid Strong competitive - App-to-App - Closed/
Slide 13: Recent emblematic partnerships to enhance the user experience
RECENT EMBLEMATIC PARTNERSHIPS TO ENHANCE THE USER EXPERIENCE Fast global roll-out of innovative solutions fostering end-user engagement Fast, seamless payment with mobile Order & pay for your meal in a few steps Edenred, the only meal Proprietary solutions benefits issuer to offer access to meal de
Slide 14: Sustained growth across all business lines
SUSTAINED GROWTH ACROSS ALL BUSINESS LINES H1 2018 operating revenue breakdown & growth by business line EMPLOYEE BENEFITS FLEET & MOBILITY COMPLEMENTARY SOLUTIONS SOLUTIONS Corporate Payment % OF H1 2018 Incentive & Rewards GROUP OPERATING REVENUE 66% 25% 9% Public Social Programs H1 2018 OPERATING
Slide 15: Sustained growth across all regions
SUSTAINED GROWTH ACROSS ALL REGIONS H1 2018 operating revenue breakdown & growth by geography Europe 57% +13.0% L/L +14.7% as reported Rest of the World 6% +8.3% L/L Latin America -4.3% as reported +10.4% L/L(1) 37% (excluding Venezuela) -7.8% as reported % of H1 2018 Group operating revenue (1) H1
Slide 16: Agenda
Agenda 1. Edenred In A Nutshell 2. Fast Forward Strategic Plan 3. Financial Performance 4. Corporate Social Responsibility & Governance 5. Deep Dive Into Business Lines 16
Slide 17: Double-digit organic growth in all regions in H1 2018
DOUBLE-DIGIT ORGANIC GROWTH IN ALL REGIONS IN H1 2018 H1 2018 operating revenue by geography EUROPE 2018 vs. 2017 L/L growth H1 2018 Q1 Q2 H1 operating revenue of H1 2018 57% €362m France +8.6% +10.2% +9.4% Group +14.7% Europe excl. France +13.8% +15.9% +14.9% operating vs. revenue €316m in H1 2017
Slide 18: Other operating income (formerly financial revenue) €25m
OTHER OPERATING INCOME (FORMERLY FINANCIAL REVENUE) Decrease mainly linked to less favorable investment conditions in Europe Reported L/L change In €m H1 2018 H1 2017 change (excluding Venezuela) H1 2018 Latin America 16 20 -19.1% -5.2%(1) Other operating income Europe 7 12 -44.3% -44.2% (ex financi
Slide 19: H1 2018 total income: €665m
H1 2018 TOTAL INCOME (FORMERLY TOTAL REVENUE): €665M Double-digit organic growth partially offset by strong currency headwinds H1 2018 €665m Reported +2.3% Total income (formerly total revenue) growth in Q2 2018 Reported L/L change In €m Q2 18 Q2 17 change (excluding Venezuela) Venezuela -0.5% Ope
Slide 20: H1 2018 total EBIT: €215m
H1 2018 TOTAL EBIT: €215M L/L operating EBIT and EBIT margins up 2.2pts and 1.2pts, respectively Reported H1 2017 In € millions H1 2018 H1 2017 L/L change(1) change published Operating revenue 640 616 +4.0% +11.6% 616 Other operating income (A) 25 34 -27.3% -17.5% 34 Total income 665 650 +2.3% +10.1
Slide 21: H1 2018 net profit: €124m
H1 2018 NET PROFIT: €124M Increase in net profit, Group share Reported In € millions H1 2018 H1 2017 change EBITDA 251 243 +3.8% Depreciation and amortization excluding PPA (25) (24) Purchase price allocation (PPA) (11) (12) EBIT 215 207 +4.3% Including +€19m in capital Share of net profit from equi
Slide 22: H1 2018 cash flow statement
H1 2018 CASH FLOW STATEMENT Strong funds from operations and free cash flow generation In € millions H1 2018 H1 2017 Funds from operations 200 179 +17.5% L/L Increase/(decrease) in cash linked to changes in float (1) (270) (263) (Increase)/decrease in restricted cash (121) (83) (Increase)/decrease i
Slide 23: Debt profile and capital allocation policy
DEBT PROFILE AND CAPITAL ALLOCATION POLICY Gross debt (in €m): Floating-rate Fixed-rate Cost of debt Edenred’s capital allocation policy 2,000 3.2% 3.5% 3.1% 2.8% 2.7% 2.7% 2.5% 3.0% Maximize value creation for shareholders through a 1,500 2.0% 2.5% balanced deployment of capital between: 1.8%(1)
Slide 24: No major repayments due before 2025
NO MAJOR REPAYMENTS DUE BEFORE 2025 H1 2018 Total gross debt: Debt repayment schedule €2.199bn (€m) Repayments (bonds, Schuldschein loan, bank loans) Undrawn revolving credit facility 700 500 500 254 229 2 117 137 60 (1) (2) 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Share of total debt (%) 0
Slide 25: FY 2018 outlook
FY 2018 OUTLOOK Edenred to substantially outperform its annual medium-term targets in 2018 > +7 % > +9% > +10% L/L operating L/L operating L/L FFO growth revenue growth EBIT growth Edenred aims to report FY 2018 EBIT of between: €440m and €470m (1) (vs. €429m in 2017) (1) Based on an assumption of a
Slide 26: Agenda
Agenda 1. Edenred In A Nutshell 2. Fast Forward Strategic Plan 3. Financial Performance 4. Corporate Social Responsibility & Governance 5. Deep Dive Into Business Lines 26
Slide 27: Corporate social responsibility
CORPORATE SOCIAL RESPONSIBILITY Three main pillars 1 2 3 Foster a better life Preserve the environment Create value responsibly Be a top employer by ensuring Reduce our carbon footprint Ensure Ethics performance on a positive environment for and amount of energy, natural our entire value chain profe
Slide 28: Corporate social responsibility: 2022 and 2030 targets
CORPORATE SOCIAL RESPONSIBILITY 2022 and 2030 targets 2017 2022 2030 TRAINING - % employees who received at least 1 learning 78% 80% 85% DIVERSITY - % women among executive positions 21% 25% 40% SOLIDARITY - Number of days of volunteering 586 1,000 5,000 NUTRITION - % food users & merchants sensitiz
Slide 29: Women and men of Edenred
WOMEN AND MEN OF EDENRED 7 782 In 2017, 90% of Edenred’s employees were working in an environment engaged in the “Best Place to Work” approach employees 50% 50% 32% Sales Women Men & Marketing 50% 15%* IT aged under 35 Engines of our commercial wins 19% & innovation Managers * 21% including contract
Slide 30: Governance principles
GOVERNANCE PRINCIPLES A governance fully complying with the AFEP-MEDEF Code Board of Directors (10 members) 90% independent directors 40% women on the Edenred Board of Directors How does the Management: Chairman and Chief Executive Officer and a Vice-Chairman of Board work? the Board and Lea
Slide 31: Agenda
Agenda 1. Edenred In A Nutshell 2. Fast Foward Strategic Plan 3. Financial Performance 4. Corporate Social Responsibility & Governance 5. Deep Dive Into Business Lines 31
Slide 32: Edenred's value proposition
EDENRED’S VALUE PROPOSITION EMPLOYEE BENEFITS FLEET & MOBILITY COMPLEMENTARY SOLUTIONS SOLUTIONS Corp. Payment: Secure, instant, Managing ▌ ▌ Anti-fraud & cost-effective efficient and smart payment transactional flows ▌ Tax-effective employee solutions ▌ I&R: Convenient solutions for efficiently com
Slide 33: Employee Benefits
EMPLOYEE BENEFITS 33
Slide 34: Creator of the Ticket Restaurant concept in 1960's
CREATOR OF THE TICKET RESTAURANT CONCEPT IN 1960’s These solutions vitalize the economy and local employment through local spending e.g., in France 1 job is created for every 23 users of meal vouchers 900,000 restaurants or food shops affiliated Edenred offers More than its solutions in more than 1
Slide 35: Employee Benefits: competitive landscape
EMPLOYEE BENEFITS Competitive landscape: Edenred is the industry leader on a large, global and growing market 3 global players Local and regional players1 #1 or #2 #1 to #3 Challenger in all in most position countries countries A STILL UNDERPENETRATED INDUSTRY: 20% to 25% global penetration rate(3).
Slide 36: Employee Benefits: untapped potential
EMPLOYEE BENEFITS Harnessing the untapped potential of Employee Benefits thanks to digitization, product innovation and cross-selling 1 2 3 Increased market penetration New solutions Cross-selling Products and sales channels digitization Digital allows A key driver to improve our capacity to reach n
Slide 37: Digitization offers strong topline growth opportunities
DIGITIZATION OFFERS STRONG TOPLINE GROWTH OPPORTUNITIES Focus on Employee Benefits business opportunities Impact on business volume Impact on operating revenue More differentiation (e.g., mobile New revenues from merchants Shift to digital of payment) & corporates (e.g., fees per existing products +
Slide 38: Employee Benefits: business model
EMPLOYEE BENEFITS: BUSINESS MODEL A highly profitable model Edenred is at the heart of a network of corporate clients, employee users and partner merchants Main key indicator: Issue volume(1) Design/ Request Management reimbursement and sale Operating revenue with CLIENT business volume MERCHANT FEE
Slide 39: Fleet & Mobility Solutions
FLEET & MOBILITY SOLUTIONS 39
Slide 40: Fleet & Mobility Solutions
FLEET & MOBILITY SOLUTIONS Help companies to manage their corporate expenses, mainly linked to fleet Optimization of vehicle fleet servicing costs up to 20% (fuel, toll & maintenance cards, etc.) A single card to pay for tolls, fuel and vehicle maintenance without carrying large amounts of cash 2.6
Slide 41: Fuel & fleet market
FUEL & FLEET MARKET A large, multi-local and fast-growing market with a low penetration rate Competitive landscape Average annual Over €1,000bn 25% growth of US specialist players annual average 5-10% penetration for Fuel & Fleet spend solutions Large fuel card specialists NORTH LATIN AFRICA & AMERI
Slide 42: Edenred has become a global player on the Fleet & Mobility market
EDENRED HAS BECOME A GLOBAL PLAYER ON THE FLEET & MOBILITY MARKET A large footprint in Latin America & Europe #2 Europe-wide player in multi-brand fuel cards Edenred Fuel & Fleet solution Only Edenred Fuel & Fleet acceptance network Edenred Travel & Expense solutions #1 in Latin America #1 in Braz
Slide 43: Fleet & Mobility Solutions: focus on UTA in Europe
FLEET & MOBILITY SOLUTIONS Focus on UTA in Europe Gradually increased stake, from a 34% minority interest in 2015, to an 83% stake in early 2018(1) New growth strategy well on track: Expand internationally Enhance the network Tackle Light Fleet market 2014 – before acquisition 2018 In # of accep
Slide 44: Fleet & Mobility Solutions: business model
FLEET & MOBILITY SOLUTIONS: BUSINESS MODEL Fuel & Fleet and Travel & Expense solutions Edenred is at the heart of a network of corporate clients, Fleet & Mobility employee users and partner merchants solutions Main key indicator: Transaction volume Numerous additional merchant categories Edenred Cor
Slide 45: Complementary Solutions
COMPLEMENTARY SOLUTIONS 45
Slide 46: Complementary Solutions
COMPLEMENTARY SOLUTIONS Several families of solutions CORPORATE INCENTIVE & PUBLIC SOCIAL PAYMENT REWARDS PROGRAMS Smarter & more efficiently Boost motivation of teams, Value- improve sale force performance Deliver specifically allocated manage financial flows between public funds to citizens propos
Slide 47: Edenred Corporate Payment
EDENRED CORPORATE PAYMENT Innovating to build solutions that make Corporate payments smart & efficient VIRTUAL VIRTUAL ACCOUNT IDENTIFIED TAILOR- CARD CARD PAYABLES BANK MADE PORTAL API SOLUTION TRANSFERS PROGRAMS PAY-OUT CASH-IN Pilot successfuly Live in 15 countries launched +23 new countries by (
Slide 48: Contact
CONTACT Solène Zammito solene.zammito@edenred.com Loïc Da Silva loic.dasilva@edenred.com 48