Edenred SA · EURONEXT:EDEN
Edenred SA — H1 2010 Earnings Presentation
29 slides from Edenred SA's earnings presentation, Aug 25, 2010
Slide 1: H1 2010 Results
August 25, 2010 H1 2010 RESULTS
Slide 2: Executive Summary – Creation of a New Company
Executive Summary – Creation of a New Company Main steps achieved in H1 2010 Set up a new management team Set up a new Board together with governance principles Define a new strategy, with aligned KPIs Launch a corporate mission project to ensure the roll out of the strategy Create and install the n
Slide 3: Executive Summary – A New Strategy
Executive Summary – A New Strategy A five-year strategy based on 4 organic growth drivers 1 1 Increase penetration rate 2-5% Volume 5 2 2 Create / rollout new products 2-4% Strategy 5 growth 3 Extend geographical coverage 1-2% drivers 4 3 4 Increase face value 1-3% Product/Service Systematic Paperle
Slide 4: Executive Summary – H1 2010 Context
Executive Summary – H1 2010 Context Macro economic conditions Edenred’s positioning Europe: Geographical diversification Still growing unemployment rates Strong exposure to emerging (+0.4pt in Euro zone*) countries (50% of Issue Volume) Low inflation in Europe (1.4% in Euro zone*) Start
Slide 5: Executive Summary – H1 2010 Key Figures
Executive Summary – H1 2010 Key Figures Good performance considering the current environment Strong growth in Issue Volume: up 7.8% L/L Healthy increase in Operating Revenue: up 4.2% L/L, partly offset by a 25.3% L/L diminution in Financial Revenue Operating EBIT growth: up 7.9% L/L A cash
Slide 6: 2010 Interim Results
Chapter 1 2010 Interim Results
Slide 7: Income statement highlights
Income statement highlights June (1) June (1) ∆ ∆ In € millions 2009 2010 reported L/L(2) Issue Volume 6,152 6,615 +7.5% +7.8% Total Revenue 444 461 +3.8% +0.7% Of which Operating Revenue 392 422 +7.7% +4.2% Of which Financial Revenue 52 39 -25.6% -25.3% EBIT 166 155 -7.1% -2.4% Of which operating E
Slide 8: H1 2010 Issue Volume: €6,615m
H1 2010 Issue Volume: €6,615m Like-for-like Issue Volume (L/L) +7.8% €480m 7.8% 7.8% Scope +0.7% 5.7% €40m 3.7% Currency -0.9% €(57)m H1 09 H2 09 FY 2009 H1 10 Reported +7.5% €463m L/L Issue Volume growth in line with our normalized annual target of 6% / 14%, despite a not yet stabilized economic en
Slide 9: H1 2010 Revenue: €461m
H1 2010 Revenue: €461m Like-for-like revenue growth up 0.7%, of which: Like-for-like +0.7% €3m Operating Financial Total L/LGrowth Revenue Revenue Revenue Q1 +3.8% -29.5% -0.4% Scope Q2 +4.5% -20.4% +1.8% +2.7% H1 +4.2% -25.3% +0.7% €12m Currency +0.4% Currency effect*: €2m Q1 Q2 H1 BRL +4.3% +5
Slide 10: H1 2010 Revenue breakdown
H1 2010 Revenue breakdown June June ∆ ∆ In € millions 2009 2010 reported L/L Operating Revenue with Issue Volume 330 343 +3.8% +4.6% (1) Operating Revenue without Issue Volume 62 79 +28.0% +1.7% Operating Revenue 392 422 +7.7% +4.2% Financial Revenue/Free Float 42 32 -24.5% -24.2% Financial Revenue/
Slide 11: H1 2010 EBIT: €155m
H1 2010 EBIT: €155m June June ∆ ∆ In € millions 2009 2010 reported L/L Operating EBIT 114 116 +1.3% +7.9% Financial EBIT 52 39 -25.6% -25.3% Total EBIT 166 155 -7.1% -2.4% Total EBIT/Issue Volume 2.7% 2.3% -0.4 pt Operating EBIT/Issue Volume 1.9% 1.8% -0.1 pt Good growth of Operating EBIT: up 7.9% L
Slide 12: EBIT Flow-through
EBIT Flow-through (1) H1 2009 ∆L/L ∆L/L Currency impact Bolivar devaluation H1 2010 EBIT excl. Bolivar impact EBIT Fin. Revenue Op. Revenue €(13)m €16m 100% 55% flow-through flow-through Total: €166m €12m €(18)m €(13)m Fin. EBIT €8m Total: €155m €52m Fin. EBIT €39m Op. EBIT €114m Op. EBIT €116m Oper
Slide 13: France: margin improvement
France: margin improvement June June ∆ ∆ In € millions 2009 2010 reported L/L Issue Volume 1,271 1,248 -1.8% -1.8% Revenue 82 79 -5.3% -1.9% Of which Operating revenue 69 69 -1.0% +3.0% Of which Financial revenue 13 10 -28.1% -28.1% EBIT 23 24 +3.5% +10.6% Operating EBIT/Issue Volume 0.8% 1.2% +0.4
Slide 14: Rest of Europe: EBIT impacted by a tough environment in Italy and Romania
Rest of Europe: EBIT impacted by a tough environment in Italy and Romania June June ∆ ∆ In € millions 2009 2010 reported L/L Issue Volume 2,128 2,318 +8.9% +5.3% Revenue 157 168 +7.0% -2.8% Of which Operating revenue 138 152 +10.3% -0.5% Of which Financial revenue 19 16 -16.8% -19.6% EBIT 70 61 -12.
Slide 15: Latin America: good performance, despite Bolivar devaluation
Latin America: good performance, despite Bolivar devaluation June June ∆ ∆ In € millions 2009 2010 reported L/L Issue Volume 2,573 2,837 +10.3% +14.4% Revenue 174 181 +4.9% +6.2% Of which Operating revenue 155 169 +9.5% +10.4% Of which Financial revenue 19 12 -33.3% -29.3% EBIT 82 79 -4.7% +3.8% Ope
Slide 16: Net profit
Net profit June June In € millions 2009 2010 EBIT 166 155 Net financial expense (41) (41) Operating profit before tax and non-recurring items 125 114 (1) Demerger costs and other non-recurring items (5) (35) Income tax expense (43) (40) Minority interests 12 2 Net profit, Group share 65 37 Recurring
Slide 17: Cash Flow
Cash Flow June June In € millions 2009 2010 EBITDA 183 167 Net Financial Expense (41) (41) Income Tax (48) (40) Non-Cash Items 0 3 Funds From Operations 94 89 (Decrease)/Increase in working capital (140) (147) Recurring (Decrease)/Increase in restricted cash (4) (8) Recurring capex (16) (12) Develop
Slide 18: Float: €1,976m up €118m vs. June 2009
Float: €1,976bn up €118m vs. June 2009 June Dec. June June Dec. June In € millions In € millions 2009 2009 2010 2009 2009 2010 Trade Receivables 877 894 934 Vouchers in circulation 2,584 2,883 2,904 Other Receivables, 243 261 273 Trade & Other Payables 394 304 279 Accruals & Inventories Working Capi
Slide 19: Key Performance Indicators
Key Performance Indicators June Dec. June 2009 2009 2010 L/L Growth in Issue Volume +7.8% +5.7% +7.8% EBIT/ Issue Volume margin 2.7% 2.6% 2.3% Operating EBIT/Issue Volume margin 1.9% 1.9% 1.8% Unlevered Free Cash Flow (In € millions) N/A 280 267 L/L FFO Growth N/A +13.2% +4.0% August 25, 2010 19
Slide 20: H2 2010 Outlook – FY 2010 Guidance
Chapter 2 H2 2010 Outlook FY 2010 Guidance
Slide 21: Macro-economic impacts on Issue Volume and Revenue
Macro-economic impacts on Issue Volume and Revenue Issue Volume Financial Revenue Europe: growth still impacted by a Hit by further decline in interest tough economic environment rates worldwide: Still rising unemployment rate in Euro zone: +0.4pt in H2 2010E at 10.4% 10% to 20% L/L decrease
Slide 22: FY 2010 Guidance
FY 2010 Guidance Given this economic environment, and assuming: L/L Operating EBIT: L/L Financial EBIT: 40% to 50% flow-through 100% flow-through FY 2010 EBIT target: €300m to €330m FY 2010 Net Financial Expense: €70 to €75m August 25, 2010 22
Slide 23: Conclusion
Chapter 3 Conclusion
Slide 24: Conclusion
Conclusion H1 Results and FY 2010 target Edenred’s Strategy Solid H1 results given a mixed economic A new strategy at a starting point of environment, mainly driven by Edenred’s implementation strong presence in Latin America 6,000 people in 40 countries to deploy the No major change in macr
Slide 25: Appendices
Chapter 3 Appendices
Slide 26: Pro Forma H1 2009 Income Statements
Pro Forma H1 2009 Income Statements Restated PF Reported Reallocation Pro Forma Edenred Devaluation figures after In € millions by Accor to Hotels (1) adjustments (2) PF figures Impact (3) Bolivar deval. Issue Volume 6,152 - - 6,152 -465 5,687 Revenue 465 -21 - 444 -26 418 Operating expenses -273 16
Slide 27: Change in accounting method impact
Change in accounting method impact Change in accounting method in the gift segment in Germany (1) In € millions Impact on reported Total Revenue Q1 +4.9 +2.2% Q2 +2.0 +0.9% S1 +7.0 +1.6% Q3 +2.4 +1.1% S1+Q3 +9.4 +1.4% Q4 -9.4 -3.8% S2 -7.0 -1.5% Total 0 0.0% (1) Change made in Q4 2009 to comply with
Slide 28: Exchange rates
Exchange rates 2010 vs. 2010 vs. 2010 vs Q1 2009 Q1 2010 2009 Q2 2009 Q2 2010 2009 H1 2009 H1 2010 2009 1€ = X foreign average average Change average average Change average average Change currency rate rate (in %) rate rate (in %) rate rate (in %) Bolivar Fuerte (VEF) 2.78 5.87 -52.7% 2.97 5.47 -45.
Slide 29: EBIT Flow through
EBIT Flow through June 2009/2010 2009/2010 In € millions 2010 Δ LfL Ops. Δ LfL Fin. Issue Volume 6,615 480 Operating Revenue 422 16 Financial Revenue 39 (13) Revenue 461 16 (13) EBIT 155 8 (13) Flow-through 55% 100% August 25, 2010 29