Elior Group Sa · EURONEXT:ELIOR
Elior Group Sa — FY2015-2016 Earnings Presentation
44 slides from Elior Group Sa's earnings presentation, Dec 9, 2016
Slide 1: FY 2015-2016 Results
FY 2015-2016 Results ELIOR GROUP FY 2015-2016 RESULTS Philippe Salle - Chairman and CEO December 9, 2016 Olivier Dubois - CFO
Slide 2: Disclaimer
DISCLAIMER This document was prepared by Elior 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, expre
Slide 3: Agenda
AGENDA 1 2 3 FY 2015-2016 FY 2015-2016 CONTRACT CATERING & ACHIEVEMENTS FINANCIAL PERFORMANCE SERVICES 4 5 6 CONCESSION CATERING OUTLOOK CONCLUSION & Q&A 12/9/2016 3 Elior Group
Slide 4: FY 2015-2016 Achievements
1 FY 2015-2016 ACHIEVEMENTS PHILIPPE SALLE Group Chairman and CEO 12/9/2016 4 Elior Group
Slide 5: FY 2015-2016 Financial Targets Achieved
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FY 2015-2016 FINANCIAL TARGETS ACHIEVED REVENUE GROWTH EBITDA MARGIN +3.1% organic excluding impact 8.6% EBITDA* margin of voluntary contract exits excl
Slide 6: Business Profile in 2016
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A BUSINESS PROFILE IN 2016 A CONSISTENTLY DIVERSIFIED A MORE INTERNATIONAL PORTFOLIO FOOTPRINT 6% Railways, City sites 6% 3% & Leisure UK Other 10% Motorw
Slide 7: Acceleration of Acquisition Strategy
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A ACCELERATION OF ACQUISITION STRATEGY STRATEGIC ACQUISITIONS IN OPPORTUNISTIC ACQUISITION IN CONTRACT CATERING CONCESSION CATERING 5 acquisitions closed
Slide 8: Governance
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A GOVERNANCE Shareholding as of November 30, 2016 • Shareholding evolution: support from long-term investors and improved liquidity 5.2% 6.5% Emesa*** CDP
Slide 9: Significant Progress on Tsubaki Plan Execution
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A SIGNIFICANT PROGRESS ON TSUBAKI PLAN EXECUTION GROWTH FOCUS 1 2 SALES MARKETING EFFECTIVENESS & (BtoB) PRICING 8 (BtoC) 3 OPERATIONAL DIGITAL EXCELLENCE
Slide 10: Tsubaki 1: Sales Effectiveness
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 1: SALES EFFECTIVENESS MAIN ACHIEVEMENTS • Retention rate in contract catering*: 93% Retention rate 93.2% • Record year in terms of new business
Slide 11: Tsubaki 2: Marketing & Pricing
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 2: MARKETING & PRICING Worko Super Wild Coffee Briciole • Definition of three BtoC KPIs • Design of IT architecture for front office application
Slide 12: Tsubaki 3: Digital
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 3: DIGITAL TimeChef AccorHotels digital wall Wiiish software • Development of web applications • First global internal innovation contest (Life4
Slide 13: Tsubaki 4: Purchasing
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 4: PURCHASING • 20 bps gross savings achieved in FY 2016 corresponding to 10 bps net savings (excluding impact of acquisitions) • Set up of virt
Slide 14: Tsubaki 5: Portfolio Review
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 5: PORTFOLIO REVIEW • Disposal of non strategic assets representing cumulative revenue of c. €80m (Chile, Mexico, France, Belgium) - no more dis
Slide 15: Tsubaki 6: G&A
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 6: G&A • Move of head office to Paris-La Défense • Harmonization of finance rules at each level of the organization (from business line to point
Slide 16: Tsubaki 7: Human Resources
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 7: HUMAN RESOURCES • Identification and Group-wide sharing of the 5 core values: – Employee recognition – Loyalty – Innovation – Operational exc
Slide 17: Tsubaki 8: Operational Excellence
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 8: OPERATIONAL EXCELLENCE Definition of a new CSR strategy, the Elior Group Positive Foodprint Plan™. 4 commitments to achieve 4 sustainable dev
Slide 18: Tsubaki 8: Operational Excellence
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A TSUBAKI 8: OPERATIONAL EXCELLENCE • Contract catering: focus on back-office through lean management approach restaurant per restaurant – Definition of s
Slide 19: IT Main Achievements
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A IT MAIN ACHIEVEMENTS • IT master plan to support Tsubaki projects: 6 programs focusing on the digital transformation • Rollout of new versions of site m
Slide 20: FY 2015-2016 Financial Performance
2 FY 2015-2016 FINANCIAL PERFORMANCE OLIVIER DUBOIS Group CFO 12/9/2016 20 Elior Group
Slide 21: FY Revenue Analysis
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FY REVENUE ANALYSIS organic REVENUES (€m) growth excl. impact of voluntary voluntary FY 2014- contract contract perimeter FY 2015- +3.9% 5,896 2015 exit
Slide 22: Q4 Revenue Analysis
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A Q4 REVENUE ANALYSIS organic REVENUES (€m) growth excl. impact of voluntary voluntary Q4 2014- contract contract perimeter Q4 2015- +5,2% 1,466 2015 exit
Slide 23: EBITDA Analysis
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A EBITDA ANALYSIS EBITDA* (€m) EBITDA* MARGIN (bps) 501 gross +5.5% 475 2014- impact 2015- 2015 from net 2016 EBITDA contract savings on increase in impac
Slide 24: Profit & Loss Account Analysis
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A PROFIT & LOSS ACCOUNT ANALYSIS FY FY €m YoY CHANGE 2015-2016 2014-2015 EBITDA* 501 475 +5.5% EBITDA* margin 8.5% 8.4% +10 bps EBITDA* margin excl. impac
Slide 25: Free Cash Flow Analysis
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FREE CASH FLOW ANALYSIS FY FY €m YOY CHANGE 2015-2016 2014-2015 EBITDA* 501 475 +5.5% Including €(11)m from Change in WCR (3) 33 €(36)m acquisitions and
Slide 26: Non Recurring Items
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A NON RECURRING ITEMS P&L IMPACT CASH IMPACT • Restructuring charges • c. €(35)m • c. €(50)m • Closure of loss-making • c. €(9)m • c. €(4)m sites and disp
Slide 27: Non-Operational Items
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A NON-OPERATIONAL ITEMS FINANCIAL RESULT TAX Last refinancing initiatives achieved P&L tax rate at c. 34% in 2016 Tax credit on the balance sheet: c. €130
Slide 28: Net Debt Analysis
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A NET DEBT ANALYSIS net debt as at net debt as at 09/30/2015 FCF financial costs net acquisitions dividend other 09/30/2016 (€m) (1,452) (1,706) (81) 173
Slide 29: 2017 Indications for Modelling Purposes
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A 2017 INDICATIONS FOR MODELLING PURPOSES P&L IMPACT CASH IMPACT • Restructuring and portfolio • c. €25m • c. €25 m review • Intangible amortization (at •
Slide 30: Contract Catering & Services
3 CONTRACT CATERING & SERVICES PHILIPPE SALLE Group Chairman and CEO 12/9/2016 30 Elior Group
Slide 31: FY 2015-2016 Highlights
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FY 2015-2016 HIGHLIGHTS ACQUISITIONS CONTRACTS INNOVATION & CONCEPTS • 4 acquisitions closed in • Natixis and Pont d’Issy RIE • Launch of the new ZestEa
Slide 32: Financial Performance (1/2)
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE (1/2) • Strong organic growth at 3.3% before voluntary contract exits • (2.0)% impact of voluntary contract exits, notably in Ital
Slide 33: Financial Performance (2/2)
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE (2/2) FY FY REPORTED ORGANIC €m 2015-2016 2014-2015 GROWTH GROWTH Revenues 4,228 3,995 +5.8% +1.3% o/w France 2,163 2,136 +1.3% +2
Slide 34: Concession Catering
4 CONCESSION CATERING PHILIPPE SALLE Group Chairman and CEO 12/9/2016 34 Elior Group
Slide 35: FY 2015-2016 Highlights
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FY 2015-2016 HIGHLIGHTS ACQUISITION CONTRACTS OPENINGS & INNOVATION • French railway assets • 10-year SNCF contract • Inauguration of redesigned • Copen
Slide 36: Financial Performance (1/2)
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE (1/2) • Organic growth driven by strong international activity throughout the year • EBITDA margin up 30 bps YoY • France performa
Slide 37: Financial Performance (2/2)
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A FINANCIAL PERFORMANCE (2/2) FY FY REPORTED ORGANIC €m 2015-2016 2014-2015 GROWTH GROWTH Revenues 1,668 1,679 (0.6)% +1.7% o/w France 657 715 (8.2)% (6.3
Slide 38: Outlook
5 OUTLOOK PHILIPPE SALLE OLIVIER DUBOIS Group Chairman and CEO Group CFO 12/9/2016 38 Elior Group
Slide 39: Supporting 2017 Outlook
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A SUPPORTING 2017 OUTLOOK • Contract catering: – Acceleration of organic growth in the UK and the US – Negative calendar impact (2016: leap year and favou
Slide 40: 2017 Ambitions
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A 2017 AMBITIONS REVENUES EBITDA** MARGIN RATE EBITDA** and adjusted EPS*** Organic growth* of at least Up 20 to 30 bps vs. Significant growth 3% excludin
Slide 41: 2020 Main Ambitions
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A 2020 MAIN AMBITIONS SALES EBITDA MARGIN FREE CASH FLOW*/EBITDA €7-8bn 9-10% 45-50% • Organic growth >3% on average p.a. (low inflation case scenario) •
Slide 42: 2020 Ambitions: Priorities for Use of Cash
1. FY 2015-2016 ACHIEVEMENTS 2. GROUP FINANCIAL PERFORMANCE 3. CONTRACT CATERING & SERVICES 4. CONCESSION CATERING 5. OUTLOOK 6. CONCLUSION AND Q&A 2020 AMBITIONS ONGOING PRIORITIES FOR USE OF CASH M&A LEVERAGE SHAREHOLDERS RETURN Required returns > 2x cost of Target net debt/EBITDA: Minimum payout:
Slide 43: Q&A
6 Q&A PHILIPPE SALLE Group Chairman and CEO 12/9/2016 43 Elior Group
Slide 44: Q&A
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