Edenred Sa · EURONEXT:EDEN
Edenred Sa — Investor Presentation (November 2015)
38 slides from Edenred Sa's investor presentation, November 2015
Slide 1: Investor presentation
Investor presentation November 2015
Slide 2: Edenred, world leader in prepaid corporate services
EDENRED, WORLD LEADER IN PREPAID CORPORATE SERVICES Key figures at end-2014 clients (companies 660,000 and public institutions) 42 countries 1.4m affiliated merchants > 6,000 employees 41m beneficiaries €17.7bn issue volume meals served and paid for 1bn with Edenred vouchers market share >30% worldw
Slide 3: Main clients & benefits of our solutions
MAIN CLIENTS & BENEFITS OF OUR SOLUTIONS B to B B to G Solutions EMPLOYEE EXPENSE BENEFITS MANAGEMENT INCENTIVE & PSP REWARDS Clients Finance & Procurement Marketing & HR Departments Local & Public Authorities Departments Sales Departments Benefits To make employees’ lives To boost motivation of tea
Slide 4: Our history
OUR HISTORY 1962 > 1976 1976 > 2000 2000 > 2010 2010 > … FROM A PIONEERING FROM A LOCAL FROM A BROADER RANGE HEADING FOR CONCEPT TO A PRESENCE TO GLOBAL OF SOLUTIONS TO A SUSTAINABLE SUCCESSFUL BUSINESS LEADERSHIP STAND-ALONE BUSINESS GROWTH MODEL 1962: Creation of Ticket Since 1976 Developmen
Slide 5: A unique business model
A UNIQUE BUSINESS MODEL Diversified sources of revenues and a negative working capital (1) Business to Business to Employees (2) With issue volume 5
Slide 6: A presence in 42 countries
A PRESENCE IN 42 COUNTRIES 59% in emerging countries and 41% in developed countries ▌Europe +4.8% 46% ▌Rest of the world ▌Latin America +15.8% 4% +18.0% 50% x% % of 2014 issue volume 6 L/L growth 2013/2014
Slide 7: Two pillars to generate strong and sustainable growth
TWO PILLARS TO GENERATE STRONG AND SUSTAINABLE GROWTH Pursue strong growth through: ▌ Formalization of the emerging markets’ economies EMPLOYEE ▌ Penetration rate increase BENEFITS ▌ New solutions and new countries development Accelerate growth through: Long-term organic targets EXPENSE ▌ Roll out a
Slide 8: Digital brings new growth opportunities
DIGITAL BRINGS NEW GROWTH OPPORTUNITIES New types of businesses Simplification of selling and thanks to data traceability distribution processes and analytics Easier and less costly roll-out for Like Expense management solutions Edenred and clients, especially SMEs or the US NutriSavings program Dig
Slide 9: Key figures of the digital shift
KEY FIGURES OF THE DIGITAL SHIFT On track to reach >75% of digital issue volume by 2016 2014 key figure Focus on France with Ticket Restaurant® 2014 digital issue volume by region Rest of ▌ Edenred leads the shift to digital in France Latin Europe the with the Ticket Restaurant® meal card at (end-20
Slide 10: 2014 key figures
2014 KEY FIGURES Stable results as reported, despite negative currency effects In € millions FY 2014 L/L growth L/L targets Issue volume 17,713 +12.0% 8%-14%(1) L/L flow-through ratio 57% N/A >50% EBIT 343 +14.4% €335-350m(2) Funds from operations 261 +15.1% >10%(1) (1) Normalized organic growth tar
Slide 11: Income statement
INCOME STATEMENT Key figures Change Change In € millions 2013 2014 reported L/L(1) Issue volume 17,119 17,713 +3.5% +12.0% Operating revenue with issue volume 830 843 +1.7% +10.8% Operating revenue without issue volume 120 115 -4.8% -6.1% Financial revenue 80 76 -4.7% +3.2% Total revenue 1,030 1,034
Slide 12: 2015 Q3 Revenue
2015 Q3 Revenue
Slide 13: 9M 2015 key achievements
9M 2015 KEY ACHIEVEMENTS Achievements in both pillars of growth and in the shift to digital EMPLOYEE EXPENSE SHIFT TO DIGITAL BENEFITS MANAGEMENT ▌ Stake increase in ProwebCE in ▌ Closing of the UTA acquisition ▌ On track to reach >75% of digital France from 10% to 62% in Germany issue volume by 201
Slide 14: First nine months of 2015
FIRST NINE MONTHS OF 2015 Financial highlights Issue volume Revenue +8.7% L/L(1) growth, +7.8% L/L growth reflecting: in operating revenue with issue volume Robust growth in Latin America up 13.0% L/L Positive momentum in Europe up 3.7% L/L -0.5% L/L change Strong growth in the Rest of the wor
Slide 15: 9M 2015 issue volume: €13,290M
9M 2015 ISSUE VOLUME: €13,290M Up 8.7% L/L, but negative currency effects Like-for-like 10.0% 9.3% Robust YTD L/L growth for the Group +8.7% 8.7% 7.0% €1,104m Q3 L/L growth remains solid in spite of tough macro environment in Brazil Q1 15 Q2 15 Q3 15 YTD Scope(1) +0.9% €108m Of which €(530)m due
Slide 16: 9M 2015 Latin America issue volume: €6,588M
9M 2015 LATIN AMERICA ISSUE VOLUME: €6,588M Up 13.0% L/L, thanks to increased penetration L/L growth Q1 Q2 Q3 YTD Brazil +12.8% +11.1% +5.7% +9.7% Hispanic Latin +25.5% +17.6% +15.1% +19.1% America Total Latin America +17.3% +13.4% +9.0% +13.0% Brazil: Hispanic Latin America: +9.7% L/L growth, in
Slide 17: 9M 2015 Europe issue volume: €6,139M
9M 2015 EUROPE ISSUE VOLUME: €6,139M Up 3.7% L/L, confirming a positive momentum L/L growth Q1 Q2 Q3 YTD France +3.1% +4.5% +3.3% +3.6% Rest of Europe +2.4% +4.2% +4.5% +3.7% Total Europe +2.7% +4.3% +4.1% +3.7% France: Rest of Europe: Ticket Restaurant® up 4.2% L/L YTD (and 3.9% L/L in Q3) Ital
Slide 18: 9M 2015 total revenue: €782M
9M 2015 TOTAL REVENUE: €782M Up 6.8% L/L and 5.6% as reported, including currency impacts Like-for-like +6.8% L/L growth Q1 Q2 Q3 YTD €51m Operating revenue with IV(2) +9.0% +9.2% +5.3% +7.8% Scope(1) +3.4% Operating revenue w/o IV(3) +4.0% +3.7% +6.9% +4.9% €25m Financial revenue +2.7% -2.7% -1.6%
Slide 19: 9M 2015 revenue details
9M 2015 REVENUE DETAILS Operating revenue with IV: €621m Financial revenue: L/L growth €52m by region L/L growth Q1 Q2 Q3 YTD L/L growth Q1 Q2 Q3 YTD Latin America +14.8% +14.5% +8.0% +12.2% Latin America +19.2% +8.3% +10.8% +12.6% Europe +3.2% +3.3% +1.6% +2.7% Europe -12.4% -14.3% -17.3% -14.6% Re
Slide 20: Outlook 2015
Outlook 2015
Slide 21: Focus on currencies
FOCUS ON CURRENCIES Emerging market currencies under pressure in summer 2015 MAIN CURRENCY TRENDS IN 2015 Financial markets were under Aug. 12 Sept. 30 strong pressure throughout the summer of 2015 due to fears about €/BRL (-27.6%) China’s real growth. Context More specifically, the Chinese €/TR
Slide 22: Outlook 2015
OUTLOOK 2015 Organic Q4 issue volume growth expected to be similar to Q3, at the Group level as well as in Brazil top-line Operating revenue with IV(1) growth: ~100 bp difference with IV growth expected in FY 2015 trends Financial revenue expected to be stable over the full year 2015 EBIT Up
Slide 23: Appendices
Appendices
Slide 24: Four types of solutions
FOUR TYPES OF SOLUTIONS Employee Expense Incentive and Management of benefits management rewards public social programs 24 ●●● ●●● ●●● ●●●
Slide 25: Closing of the UTA acquisition in Germany
CLOSING OF THE UTA ACQUISITION IN GERMANY A strategic asset for Edenred H1 Achievements Next Steps 2015-2017 2017-2019 ▌ Finalization of the acquisition of a 34% interest in UTA(1) Acceleration of change Option to A leading issuer in the European fuel management and increase Edenred card market fo
Slide 26: Focus on ProwebCE investment in France
FOCUS ON PROWEBCE INVESTMENT(1) IN FRANCE An alliance enabling the Group to expand its employee benefits offering A market with strong ProwebCE, leader on the An accretive financial potential in France works council market transaction 38,000 ▌ Strong top-line synergies with works councils(2) Edenred
Slide 27: Edenred/Daimler partnership in Brazil
EDENRED/DAIMLER PARTNERSHIP IN BRAZIL Launch of a co-branded MercedesServiceCard/Ticket Car® solution ▌ Card issuer, acquirer and ▌ A promising partnership with a forefront player in the processor, offering all Ticket heavy transportation market in Brazil Car® functionalities ~450,000 trucks curre
Slide 28: Contribution of growth drivers to 2014 issue volume
CONTRIBUTION OF GROWTH DRIVERS TO 2014 ISSUE VOLUME In line with annual medium term targets 2014 organic issue Medium-term targets volume growth (1) New geographies +0.2% +0%- 1% New solutions +2.6% +2%- 4% Face value +3.9% +3%- 4% New clients +5.3% +3%- 5% Total +12.0% +8%- 14% (1) Including the co
Slide 29: Issue volume
ISSUE VOLUME Q1 Q2 Q3 YTD FY In € millions 2014 2015 2014 2015 2014 2015 2014 2015 2013 2014 France 713 735 662 696 592 614 1,967 2,045 2,757 2,880 Rest of Europe 1,302 1,346 1,318 1,395 1,275 1,353 3,895 4,094 4,904 5,342 Latin America 1,902 2,284 2,122 2,274 2,289 2,030 6,313 6,588 8,824 8,851 Res
Slide 30: Operating revenue with issue volume
OPERATING REVENUE WITH ISSUE VOLUME Q1 Q2 Q3 YTD FY In € millions 2014 2015 2014 2015 2014 2015 2014 2015 2013 2014 France 30 31 28 30 27 26 85 87 121 127 Rest of Europe 66 68 67 71 63 66 196 205 253 270 Latin America 91 104 100 105 109 91 300 300 425 413 Rest of the world 7 10 8 9 9 10 24 29 31 33
Slide 31: Operating revenue without issue volume
OPERATING REVENUE WITHOUT ISSUE VOLUME Q1 Q2 Q3 YTD FY In € millions 2014 2015 2014 2015 2014 2015 2014 2015 2013 2014 France 5 6 6 20 5 11 16 37 21 21 Rest of Europe 11 11 9 8 8 9 28 28 52 45 Latin America 5 6 7 7 6 6 18 19 25 24 Rest of the world 5 8 5 9 7 8 17 25 22 25 Operating revenue without I
Slide 32: Financial revenue
FINANCIAL REVENUE Q1 Q2 Q3 YTD FY In € millions 2014 2015 2014 2015 2014 2015 2014 2015 2013 2014 France 5 4 4 3 4 3 13 10 21 17 Rest of Europe 4 4 5 5 6 6 15 15 21 20 Latin America 8 10 8 8 10 7 26 25 34 35 Rest of the world 1 1 1 1 0 0 2 2 4 4 Financial revenue 18 19 18 17 20 16 56 52 80 76 Q1 Q2
Slide 33: Total revenue
TOTAL REVENUE Q1 Q2 Q3 YTD FY In € millions 2014 2015 2014 2015 2014 2015 2014 2015 2013 2014 France 40 41 38 53 36 40 114 134 163 165 Rest of Europe 81 83 81 84 77 81 239 248 326 335 Latin America 104 120 115 120 125 104 344 344 484 472 Rest of the world 13 19 14 19 16 18 43 56 57 62 Total revenue
Slide 34: Operating EBIT & total EBIT
OPERATING EBIT & TOTAL EBIT Change In € millions 2013 2014 Change L/L reported France 22 23 0.8% -1.0% Rest of Europe 76 80 6.0% 6.0% Latin America 184 178 -2.9% 22.0% Rest of the world (1) 5 n/a n/a Worldwide structures (18) (19) 6.4% 1.0% Operating EBIT 263 267 1.3% 17.8% Change In € millions 2013
Slide 35: Balance sheet
BALANCE SHEET In € millions 2013 2014 In € millions 2013 2014 Goodwill 574 570 Total equity (1,290) (1,320) Intangible assets 132 160 Property, plant & equipment 58 44 Gross debt 1,605 1,409 Other non-current assets 80 91 Provisions and deferred tax 163 168 Working capital assets Restricted cash 1,1
Slide 36: Average exchange rates
AVERAGE EXCHANGE RATES 2015 vs. 2015 vs. 2015 vs. 2015 vs. 2014 2014 2014 2014 €1 = X foreign currency Q1 2014 Q1 2015 Q2 2014 Q2 2015 Q3 2014 Q3 2015 YTD 2014 YTD 2015 Change Change Change Change (in % ) (in % ) (in % ) (in % ) Bolivar Fuerte (VEF) 68.50 134.41 -49.0% 68.25 218.57 -68.8% 66.22 221.
Slide 37: Scope effects
SCOPE EFFECTS Acquisitions Consolidation date Acquisitions Bonus, Brazil Consolidation January 2014date Bonus, Nets Brazil Finland Prepaid, January 2014 Nets C3 Prepaid, CARD, Finland United Arab Emirates January 2014 July 2014 C3 CARD, Asia Cardtrend, United Arab Emirates July 2014 August 2014 Card
Slide 38: Contact
Investor Relations Louis Igonet – Head of Financial Communication +33 (0)1 74 31 87 16 Contact [email protected] Aurélie Bozza – Investor Relations +33 (0)1 74 31 84 16 [email protected]