Edenred Sa · EURONEXT:EDEN
Edenred Sa — H1 2014 Earnings Presentation
31 slides from Edenred Sa's earnings presentation, Jul 24, 2014
Slide 1: H1 2014 Results
H1 2014 Results Press conference call July 24, 2014
Slide 2: H1 Key Figures & Highlights
H1 Key Figures & Highlights Chapter 1 Titre du document - date - Arial regular 8pts 2
Slide 3: H1 2014 Key figures
H1 2014 Key figures In € millions H1 2014 L/L growth Issue volume 8,320 +12.3% Operating revenue with 397 +11.0% issue volume Total revenue 486 +7.9% L/L flow-through ratio 52% N/A EBIT 148 +13.2% Funds from operations 109 +11.9% Strong organic performance in EBIT (+€22m, i.e. +13.2% growth), impact
Slide 4: H1 2014 Key achievements
H1 2014 Key achievements Development in New countries Expense Shift to digital management Entry in the United Development in the SSE(1) 60% of digital Arab Emirates with the payroll card issue volume acquisition of a payroll market at end-June card company, C3 Card with the acquisition of C3 Card F&
Slide 5: Acquisition of C3 Card, a payroll card specialist in the United Arab Emirates
Acquisition of C3 Card, a payroll card specialist in the United Arab Emirates Market Business model Favorable local regulation to guarantee wage Program manager and distributor of payroll traceability for unbanked people: ~2.7m cards unbanked workers(1) in the UAE under the Wage Protection Syste
Slide 6: Development in the Fuel and Fleet sector in Mexico
Development in the Fuel and Fleet sector in Mexico Launch of a joint offer with Context American Express 2014 Mexican tax reform Accreditation by the SAT (Mexican Tax Authority) necessary for companies to Advanced control American justify their fuel expenses and recover & administration Express VA
Slide 7: Launch of the meal card solution in the French market
Launch of the meal card solution in the French market First launch Second launch Context in 2014 in 2015 Governmental decree First version of the Second version of the authorizing the launch of a Ticket Restaurant® card under Ticket Restaurant® card under digital meal card effective the banking mode
Slide 8: H1 2014 Results
H1 2014 Results Chapter 2 8
Slide 9: Issue volume: €8,320m
H1 2014 Issue volume: €8,320m Issue Volume (L/L) 15,2% Like-for-like 13,7% +12.3% 12,2% 11,8% 12,3% €1,010m 11,0% 9,8% 10,4% Scope(1) +3.2% €262m Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 H1 14 Currency -14.0% €(1,149)m Currency impact details Currency impact details H1 2014 Reported 19% Currency ch
Slide 10: Latin America – H1 2014 Issue volume: €4,024m
Latin America – H1 2014 Issue volume: €4,024m Issue volume L/L growth Q1 Q2 H1 Brazil +14.4% +13.9% +14.1% Hispanic Latin America +21.6% +21.5% +21.5% Total Latin America +17.0% +16.8% +16.9% Brazil: Hispanic Latin America: Good performance in Benefits (+12.9% L/L Solid performance by all soluti
Slide 11: Europe – H1 2014 Issue volume: €3,995m
Europe – H1 2014 Issue volume: €3,995m Issue volume L/L growth Q1 Q2 H1 France +7.2% +0.2% +3.7% Rest of Europe +11.3% +5.8% +8.4% Total Europe +9.8% +3.8% +6.7% Total Europe +5.6% +0.7% +3.1% excluding Portugal ► Calendar effect: on average, 1.2% fewer working days in Q2. France: Rest of Europe:
Slide 12: Contribution of growth drivers to H1 2014 issue volume
Contribution of growth drivers to H1 2014 issue volume H1 2014 Medium-term organic issue targets volume growth New geographies +0.2% +0%-1% New solutions +2.5% +2%-4% Face value +4.2% +3%-4% New clients +5.4% +3%-5% Total +12.3% +8%-14% +12.3% L/L growth in H1, in line with annual medium term target
Slide 13: Total revenue: €486m
H1 2014 Total revenue: €486m Like-for-like L/L growth Q1 Q2 H1 +7.9% €39m Operating revenue with IV(2) +11.0% +10.9% +11.0% Operating revenue without IV(3) -13.9% -3.3% -8.9% Scope(1) Financial revenue +1.0% +3.5% +2.2% +2.2% €11m Total revenue +7.1% +8.7% +7.9% Currency -13.5% €(67)m Currency impac
Slide 14: Operating revenue with issue volume: €397m
H1 2014 Operating revenue with issue volume: €397m Operating revenue with IV Operating revenue with IV L/L growth by quarter L/L growth by region 11,0% 11,0% 10,9% 11,0% Q1 Q2 H1 9,8% 9,2% Latin +15.7% +17.3% +16.5% 8,0% 8,1% America Europe +5.3% +3.2% +4.2% Rest of the +15.9% +14.2% +15.0% world TO
Slide 15: Financial revenue: €36m
H1 2014 Financial revenue: €36m Financial revenue L/L growth Financial revenue L/L growth by quarter by region Q1 13 Q2 13 Q3 13 Q4 13 FY 13 Q1 14 Q2 14 H1 14 3,5% Q1 Q2 H1 2,2% 1,0% Latin +18.6% +13.6% +16.0% America -0,6% Europe -13.1% -8.1% -10.7% Rest of the -2,8% +17.7% +34.3% +26.1% world -3,7
Slide 16: EBIT: €148m
H1 2014 EBIT: €148m In € millions June June Change Change 2013 (1) 2014 reported L/L Total revenue 503 486 -3.4% +7.9% Operating EBIT 118 112 -5.8% +17.0% Financial EBIT 41 36 -9.6% +2.2% Total EBIT 159 148 -6.7% +13.2% Operating EBIT Latin America, €76m: strong performance, with operating perform
Slide 17: Flow-through ratio
Flow-through ratio Operating Financial Currency effect and revenue revenue changes in scope L/L∆: €38m L/L∆: €1m H1 2013 EBIT (restated) €1m H1 2014 EBIT €159m (reported) €21m €(33)m €148m of which: Flow-through Scope: €2m Operating EBIT ratio of Currency: €(35)m(1) Operating€116m EBIT of which:
Slide 18: Net profit
H1 2014 Net profit In € millions June June (1) 2013 2014 EBIT 159 148 Net financial expense (24) (27) Operating profit before tax and non-recurring items 135 121 Non-recurring income and expenses, net (8) (7) Income tax expense (41) (39) Tax on dividends (6) (4) Minority interests (4) (1) Net profit
Slide 19: 2014 Outlook
2014 Outlook Chapter 3 Titre du document - date - Arial regular 8pts 19
Slide 20: Focus on currencies
Focus on currencies Average rate Closing rate Average rate H1 H1 Dec.31, June 30, Q3 Q4 BRL/€ 2013 2014 2013 2014 2013 2013 Brazilian 2.67 3.15 3.26 3.00 3.03 3.10 real -15% +1% +3% +9% Strong depreciation of -15% in H1 A better basis of comparison expected in H2 Expected currency impacts H2 FY H1 I
Slide 21: FY 2014 Outlook and guidance
FY 2014 Outlook and guidance Continuation of H1 operating trends in terms of issue volume and operating revenue with issue volume growth H2 L/L Latin America: similar trends as in H1, for both Benefits and TOPLINE Expense management TRENDS Europe: continuation of H1 trends, excluding the impac
Slide 22: Appendices
Appendices Titre du document - date - Arial regular 8pts 22
Slide 23: Issue volume
Issue volume Q1 Q2 H1 In € millions 2013 2014 2013 2014 2013 2014 France 665 713 661 662 1,326 1,375 Rest of Europe 1,124 1,302 1,203 1,318 2,327 2,620 Latin America* 2,025 1,902 2,199 2,122 4,224 4,024 Rest of the world 159 145 161 156 320 301 Issue Volume* 3,973 4,062 4,224 4,258 8,197 8,320 Q1 Q2
Slide 24: Operating revenue with issue volume
Operating revenue with issue volume Q1 Q2 H1 In € millions 2013 2014 2013 2014 2013 2014 France 29 30 28 28 57 58 Rest of Europe 61 66 62 67 123 133 Latin America* 101 91 106 100 207 191 Rest of the world 7 7 8 8 15 15 Operating revenue with IV* 198 194 204 203 402 397 Q1 Q2 H1 Change Change Change
Slide 25: Operating revenue without issue volume
Operating revenue without issue volume Q1 Q2 H1 In € millions 2013 2014 2013 2014 2013 2014 France 5 5 5 6 10 11 Rest of Europe 13 11 11 9 24 20 Latin America* 7 5 8 7 15 12 Rest of the world 6 5 5 5 11 10 Operating revenue without IV* 31 26 29 27 60 53 Q1 Q2 H1 Change Change Change Change Change Ch
Slide 26: Financial revenue
Financial revenue Q1 Q2 H1 In € millions 2013 2014 2013 2014 2013 2014 France 5 5 6 4 11 9 Rest of Europe 6 4 5 5 11 9 Latin America* 8 8 8 8 17 16 Rest of the world 1 1 1 1 2 2 Financial revenue* 20 18 21 18 41 36 Q1 Q2 H1 Change Change Change Change Change Change In % reported L/L** reported L/L**
Slide 27: Total revenue
Total revenue Q1 Q2 H1 In € millions 2013 2014 2013 2014 2013 2014 France 40 40 38 38 78 78 Rest of Europe 80 81 78 81 158 162 Latin America* 117 104 122 115 239 219 Rest of the world 13 13 15 14 28 27 Total revenue* 250 238 253 248 503 486 Q1 Q2 H1 Change Change Change Change Change Change In % rep
Slide 28: EBIT
EBIT In € millions Change Change H1 2013* H1 2014 reported L/L** France 22 17 -24.1% -18.9% Rest of Europe 42 46 9.4% 8.9% Latin America* 102 93 -9.1% 21.4% Rest of the world 1 3 N/A N/A Worldwide structures -8 -11 35.4% 38.2% EBIT 159 148 -6.7% 13.2% * 2013 restated figures: application of the VEF
Slide 29: Exchange rates
Exchange rates Average exchange rates 2013 and 2014 2014 vs. 2013 2014 vs. 2013 2014 vs. 2013 1€ = X foreign Q1 2013 Q1 2014 Change Q2 2013 Q2 2014 Change H1 2013 H1 2014 Change currency (in %) (in %) (in %) Bolivar Fuerte 14.92* 68.50 -78.2% 14.76* 68.25 -78.4% 14.84* 68.37 -78.3% (VEF) Brazilian r
Slide 30: H1 2014 scope effects
H1 2014 scope effects Acquisitions Consolidation date Big Pass, Colombia February 2013 Repom, Brazil March 2013 Opam, Mexico June 2013 Bonus, Brazil January 2014 Nets Prepaid, Finland January 2014 30
Slide 31: 2014 Expected calendar effects
2014 Expected calendar effects Q1 Q2 Q3 Q4 2014 Working days Nb of days % change Nb of days % change Nb of days % change Nb of days % change Nb of days % change Europe 0 0.0% (1) -1.2% 0 0.3% 1 0.9% 0 0.0% Latin America 2 2.6% (1) -1.9% (0) 0.0% 2 2.8% 2 0.8% Rest of the world 0 0.5% (0) -0.4% (1) -