Edenred Sa · EURONEXT:EDEN

Edenred Sa — Merger or Acquisition (May 2023)

24 slides from Edenred Sa's merger presentation, May 16, 2023

  1. Slide 1: Reward Gateway Acquisition by Edenred Deal Presentation

    REWARD GATEWAY ACQUISITION BY EDENRED DEAL PRESENTATION May 16, 2023

  2. Slide 2: Executive Summary

    EXECUTIVE SUMMARY Acquisition of 100% of Reward Gateway, a leading Employee Engagement platform, for an amount of £1.15bn  A SaaS1 platform offering a full suite of employee engagement programs (Employee Savings, Rewards & Recognition, Well-being and Social Animation)  A fast-growing, highly profi

  3. Slide 3: Agenda

    AGENDA 1. Reward Gateway, a leading employee engagement platform 2. A strategic acquisition to go Beyond 3. A plan to scale and expand Reward Gateway internationally 4. Financial considerations 5. Key takeaways 3

  4. Slide 4: Reward Gateway, a leading and fast-growing employee engagement platform

    REWARD GATEWAY, A LEADING AND FAST-GROWING EMPLOYEE ENGAGEMENT PLATFORM Key facts & figures A fast-growing platform Revenue CAGR15/16-19/20 Revenue CAGR19/20-22/23e  Founded in 2006 and currently held by private equity funds +31% In £m +18% 95 4,000+ customers  4,000+ 86 63 8m+ 39 44  6.5m users

  5. Slide 5: A holistic value proposition…

    A HOLISTIC VALUE PROPOSITION… Benefits Employee Rewards & Well-being Social Management Savings Recognition animation 1 Employee Benefits: Suite of 2 Employee Discounts: 3 Employee Recognition: 5 Employee Well-being: 6 Employee Platform modules salary sacrifice benefits discount platform Multi-d

  6. Slide 6: …to meet the needs of a changing working world

    …TO MEET THE NEEDS OF A CHANGING WORKING WORLD Growing physical and Shift towards custom- Shift in new Growing considerations Drop in employee mental health made value proposition generations’ values about purchasing power engagement considerations Further customization of Penetration of remote Focu

  7. Slide 7: A scalable and modular technology platform

    A SCALABLE AND MODULAR TECHNOLOGY PLATFORM 8m Users 2,000+ 4,000+ merchants clients Benefits Employee Rewards & Social animation Well-being Management Savings Recognition Smart Pay1 HRIS2 & Directory Authentication/SSO3 Best-in-class customer satisfaction NPS at ~404 7 1. API integration with payrol

  8. Slide 8: Operating on large addressable employee engagement markets

    OPERATING ON LARGE ADDRESSABLE EMPLOYEE ENGAGEMENT MARKETS1 United Kingdom Australia United States Leading positions in the UK and Australian employee engagement markets totaling TAM: £1.3bn1 TAM: £0.6bn1 TAM: £4.5bn1 £1.9bn c.27% c.26% c.33% c.73% c.74% c.67% Nascent but promising footprint in the

  9. Slide 9: A strongly performing business

    A STRONGLY PERFORMING BUSINESS Strong double-digit A high level of A high level of FCF Recurring revenue like-for-like growth EBITDA margin generation thanks to generation strong EBITDA and negative working capital model >30% CAGR EBITDA margin >45% CAGR c.80% of revenue from 2019/20 to 2022/23e > 4

  10. Slide 10: Agenda

    AGENDA 1. Reward Gateway, a leading employee engagement platform 2. A strategic acquisition to go Beyond 3. A plan to scale and expand Reward Gateway internationally 4. Financial considerations 5. Key takeaways 10

  11. Slide 11: In 2022, 26% of Edenred employee benefits portfolio is already beyond food…

    IN 2022, 26% OF EDENRED EMPLOYEE BENEFITS PORTFOLIO IS ALREADY BEYOND FOOD… Food Beyond Food Meal & Gift Mobility Remote Culture Employee Food Benefits Working Savings 74% 26% 11

  12. Slide 12: …including expansion into employee benefits & savings platforms

    …INCLUDING EXPANSION INTO EMPLOYEE BENEFITS & SAVINGS PLATFORMS …thanks to successful integration and scale Platforms already live in 17 countries… of key players on this market Date of acquisition One of the Top 3 players on the market 2008 c.4m users #1 player on the market 2015 c.7m active users

  13. Slide 13: Creating a unique platform providing a comprehensive employee benefits and engagement offer (1/2)

    CREATING A UNIQUE PLATFORM PROVIDING A COMPREHENSIVE EMPLOYEE BENEFITS AND ENGAGEMENT OFFER (1/2) Employee Benefits Employee Engagement Benefits management Employee Rewards & Well- Social platform Savings Recognition being animation Flexible benefits allocation engine Non-Edenred/ Edenred third part

  14. Slide 14: Creating a unique platform providing a comprehensive employee benefits and engagement offer (2/2)

    CREATING A UNIQUE PLATFORM PROVIDING A COMPREHENSIVE EMPLOYEE BENEFITS AND ENGAGEMENT OFFER (2/2) Employee Benefits Employee Engagement Benefits management Employee Rewards & Well- Social platform Savings Recognition being animation Flexible benefits allocation engine Non-Edenred/ Edenred third part

  15. Slide 15: ESG is embedded in both companies' DNA

    ESG IS EMBEDDED IN BOTH COMPANIES’ DNA Committed to putting ESG at the heart of all actions Improve quality of life Empower our people to ENRICH CONNECTIONS. be their true selves FOR GOOD. Measure and reduce Preserve the environment environmental impact MAKE THE WORLD A BETTER PLACE TO WORK Build su

  16. Slide 16: Agenda

    AGENDA 1. Reward Gateway, a leading employee engagement platform 2. A strategic acquisition to go Beyond 3. A plan to scale and expand Reward Gateway internationally 4. Financial considerations 5. Key takeaways 16

  17. Slide 17: Combining Edenred and Reward Gateway's compelling offers

    COMBINING EDENRED AND REWARD GATEWAY’S COMPELLING OFFERS Edenred in the UK A combination of both offers  Started in 1982  A dedicated team around 5 tracks to ensure the successful combination of UK operations 10k+ customers  4,000+ 4m+  6.5m users  3 key enablers:  42k+ merchant partners Peopl

  18. Slide 18: Expand Reward Gateway in selected countries

    EXPAND REWARD GATEWAY IN SELECTED COUNTRIES Focus on France illustration Focus on Germany illustration Employee benefits & engagement market Employee benefits & engagement market Savings Savings Well-being Well-being ~5% & Discounts ~15% & Discounts ~20% Beyond Addressed by Edenred Food Rewards & En

  19. Slide 19: A deal with sizeable expected synergies

    A DEAL WITH SIZEABLE EXPECTED SYNERGIES Extended value proposition and business UK integration synergies synergies  Combining the existing businesses of Edenred  International roll-out with expansion to 6 countries and Reward Gateway already planned (Belgium, France, Germany, Italy, Romania, Spain

  20. Slide 20: Agenda

    AGENDA 1. Reward Gateway, a leading employee engagement platform 2. A strategic acquisition to go Beyond 3. A plan to scale and expand Reward Gateway internationally 4. Financial considerations 5. Key takeaways 20

  21. Slide 21: Financial considerations

    FINANCIAL CONSIDERATIONS Transaction considerations Solid financial profile post-transaction  Acquisition of 100% of the share capital from two  A transaction adding €51m (£45m) in additional private equity firms (Abry Partners and Castik EBITDA before synergies in FY 2023 for Edenred Capital)  A

  22. Slide 22: Agenda

    AGENDA 1. Reward Gateway, a leading employee engagement platform 2. A strategic acquisition to go Beyond 3. A plan to scale and expand Reward Gateway internationally 4. Financial considerations 5. Key takeaways 22

  23. Slide 23: Key takeaways

    KEY TAKEAWAYS Edenred acquires a leading Employee A critical milestone in accelerating the Engagement platform with market 1 leading positions in the UK and in Beyond vision to extend Edenred Employee Benefits offer Australia and building presence in the USA Capturing short-term synergies (tech Eden

  24. Slide 24: Enrich connections. For good.

    Enrich connections. FOr QOOd

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