Edenred Sa · EURONEXT:EDEN
Edenred Sa — H1 2019 Earnings Presentation
43 slides from Edenred Sa's earnings presentation, Jul 23, 2019
Slide 1: H1 2019 Results
H1 2019 Results July 23, 2019
Slide 2: Executive Summary
EXECUTIVE SUMMARY Strong double-digit growth in H1 2019, with total revenue of €777m, up 16.8% as reported and 14.6% like-for-like • Double-digit operating revenue growth in all regions and all business lines, following a 2018 record year • 4.4% positive scope effect with the contribution from the
Slide 3: Agenda
Agenda 1. H1 2019 Key Figures & Highlights 2. H1 2019 Results 3. 2019 Outlook 3
Slide 4: H1 2019 Key Financial Figures
H1 2019 KEY FINANCIAL FIGURES H1 2019 H1 2018 Reported L/L growth Annual medium- in €m in €m growth (excl. Venezuela) term targets (L/L) Operating revenue 748 640 +17% +14% > +7% Operating EBIT 220 190 +16% +15% > +9 % Funds from operations 264 200 +33% +23% > +10% 4
Slide 5: H1 2019 Operating Revenue Breakdown & Growth by Business Line
H1 2019 OPERATING REVENUE BREAKDOWN & GROWTH BY BUSINESS LINE Double-digit organic and reported growth across all business lines EMPLOYEE BENEFITS FLEET & MOBILITY COMPLEMENTARY SOLUTIONS SOLUTIONS Corporate Payment Services % OF H1 2019 Incentive & Rewards GROUP OPERATING 63% 26% 11% Public Social
Slide 6: H1 2019 Operating Revenue Breakdown & Growth by Geography
H1 2019 OPERATING REVENUE BREAKDOWN & GROWTH BY GEOGRAPHY Double-digit growth across all regions Rest of the World Europe +22.1% L/L 56% +13.6% L/L 8% +68.9% as reported +16.4% as reported Latin America +14.5% L/L 36% (excluding Venezuela) % of H1 2019 Group operating revenue +9.9% as reported 6
Slide 7: A Global Digital Platform
A GLOBAL DIGITAL PLATFORM A strong competitive advantage to accelerate sustainable and profitable growth Time To Ensure faster deployment Market Security Decrease security risks Be able to scale up innovation quicker Innovation Pool business operations Cost Leverage our global footprint Lower costs
Slide 8: A Global Digital Platform: Current Initiatives
A GLOBAL DIGITAL PLATFORM Current initiatives to boost performance and innovation Some ongoing initiatives: Scale up infrastructure to Migration of Authorization and Replacement of Performance unlock global technology business processing of local IT applications platform growth and applications to t
Slide 9: Leveraging Our Platform to Innovate
LEVERAGING OUR PLATFORM TO INNOVATE Fast roll-out of innovative solutions that fit user needs Fast, seamless mobile payment Seamless digital app-to-app payment with proprietary solutions or global wallet service providers with Edenred Direct Payment Services Access and pay with Edenred credentials
Slide 10: Building a Leading Position in Employee Engagement Platforms
BUILDING A LEADING POSITION IN EMPLOYEE ENGAGEMENT PLATFORMS Fitting customer needs and Edenred’s leadership and intermediation platform model Edenred’s Italian Flex Ben platform An attractive market for Edenred Fitting new customer needs Underpenetrated market For companies More productivity th
Slide 11: Building a Leading Position in Employee Engagement Platforms
BUILDING A LEADING POSITION IN EMPLOYEE ENGAGEMENT PLATFORMS Tackling an underpenetrated market via organic development and acquisitions Organic development + Scale up and seize opportunities through a progressive M&A approach 2012 2015 2019 11
Slide 12: #3 Global Specialist Player in Fleet & Mobility
#3 GLOBAL SPECIALIST PLAYER IN FLEET & MOBILITY Strong growth generated by a combination of organic and external growth New monobrand programs enhancing Ongoing integration of The Right Edenred’s Fleet & Mobility platform Fuelcard Company (TRFC) in the UK Launch of two large programs in Mexico Goo
Slide 13: Corporate Payment Services Offer
CORPORATE PAYMENT SERVICES OFFER A full range of innovative payment technologies VIRTUAL CARDS CORPORATE IDENTIFIED BANK TAILOR-MADE ACCOUNTS TRAVEL TRANSFERS PROGRAMS PAYABLE PAY-OUT CASH-IN New client wins Strong volume ramp-up at Foncia New client wins Launch of Live in 50 countries (Af
Slide 14: Focus on CSI
FOCUS ON CSI Integration on track, progressive ramp-up of new products and new contracts Ongoing integration Key successes in Accounts Payable Launch of CSI Travel Implementation of Edenred’s Significant client wins on core Accounts reporting systems Payable business Bring VCN advantages Rei
Slide 15: Agenda
Agenda 1. H1 2019 Key Figures & Highlights 2. H1 2019 Results 3. 2019 Outlook 15
Slide 16: H1 2019 Operating Revenue
H1 2019 OPERATING REVENUE Strong start to the year in both organic and reported figures L/L operating growth Q2 2019 H1 2019 €379m €748m 15.3% 14.6% 14.2% 14.6% 14.4% 13.4% 13.3% 9.8% Reported +18.1% +16.8% Venezuela -0.1% -0.1% Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 H1 19 Scope +5.0% +4.5% €
Slide 17: H1 2019 Operating Revenue – Europe
H1 2019 OPERATING REVENUE – EUROPE Strong 13.6% organic growth 2018 2019 H1 2019 L/L growth FY Q1 Q2 H1 operating revenue of Group operating 56% €422m France +10.0% +9.0% +8.2% +8.6% Europe excl. +13.6% L/L +16.8% +16.3% +15.6% +15.9% revenue France +16.4% as reported Total Europe +14.6% +13.8% +13.
Slide 18: H1 2019 Operating Revenue – Latin America
H1 2019 OPERATING REVENUE – LATIN AMERICA Double-digit organic growth in Brazil and Hispanic Latin America 2018 2019 H1 2019 L/L growth (excluding Venezuela) FY Q1 Q2 H1 operating revenue 36% of Group operating €266m Hispanic Latin America +17.7% +19.7% +21.1% +20.4% revenue +14.5% L/L Brazil +10.0%
Slide 19: H1 2019 Other Revenue
H1 2019 OTHER REVENUE Recovery following a challenging 2018 Reported L/L change In €m H1 19 H1 18 change (excluding Venezuela) Other revenue boosted by: Latin America 18 16 +9.3% +11.1% Good business momentum (float increase) Europe 8 7 +20.0% +20.2% Positive effect from slightly higher Rest of
Slide 20: H1 2019 Total Revenue: €777M
H1 2019 TOTAL REVENUE: €777M Up 16.8%, fueled by strong 14.6% organic growth and positive scope effects Q2 2019 H1 2019 Total revenue growth in Q2 2019 €394m €777m Reported L/L change In €m Q2 19 Q2 18 change (excluding Reported +18.3% +16.8% Venezuela) Operating revenue 379 321 +18.1% +14.6% Vene
Slide 21: H1 2019 EBIT: €249M
H1 2019 EBIT: €249M Strong double-digit growth in EBITDA, operating EBIT and EBIT Reported In € millions H1 2019 H1 2018 L/L change(1) change Operating revenue 748 640 +16.8% +14.4% Other revenue (A) 29 25 +15.6% +19.1% Total revenue 777 665 +16.8% +14.6% EBITDA 310(2) 251 +23.0% +14.6% EBITDA margi
Slide 22: H1 2019 EBIT: €249M
H1 2019 EBIT: €249M Successful integration of acquisitions more than offsetting negative currency impacts Operating revenue Changes H1 2018 EBIT L/L∆: €92m(1) Other revenue in scope Currency effect(1) Venezuela H1 2019 EBIT €215m €29m €5m €7m €(7)m €(0)m €249m of which: €(4)m from BRL €(2)m from ARS
Slide 23: H1 2019 Net Profit: €146M
H1 2019 NET PROFIT: €146M Increase in net profit, Group share, of 17.9% Reported In € millions H1 2019 H1 2018 change EBITDA 310 251 +23.0% Depreciation and amortization excluding PPA (43) (25) Of which €(14)m impact from IFRS 16 application from Purchase price allocation (PPA) (18) (11) January 1st
Slide 24: H1 2019 Funds from Operations: €264M
H1 2019 FUNDS FROM OPERATIONS: €264M 22.8% like-for-like FFO growth Reported In € millions H1 2019 H1 2018 change L/L change EBITDA 310 251 +23.0% +14.6% Funds from operations 264 200 +32.6% +22.8% Increase/(decrease) in cash linked to changes in float(1) (256) (270) (Increase)/decrease in restricte
Slide 25: Net Debt at June 30, 2019: €1,630M
NET DEBT AT JUNE 30, 2019: €1,630M Strong free cash flow generation fueling acquisitions and shareholder return Currency June 30, 2018 IFRS 16 Free cash Acquisitions Shareholder effects(1) and June 30, 2019 net debt position impacts flow (incl. put options) return other non- net debt position recurr
Slide 26: Agenda
Agenda 1. H1 2019 Key Figures & Highlights 2. H1 2019 Results 3. 2019 Outlook 26
Slide 27: Outlook
OUTLOOK H2 2019 expected trends • Enhancing our global digital platform, enabling both better performance and faster innovation to generate sustainable and profitable growth • Sustained growth in all regions and all business lines thanks to its business excellence and innovation capabilities • Ongoi
Slide 28: FY 2019 Outlook
FY 2019 OUTLOOK Edenred confirms Fast Forward’s annual medium-term targets for 2019 > +7% > + 9% > +10% L/L operating L/L operating L/L FFO growth revenue growth EBIT growth Edenred aims to report FY 2019 EBIT of between: €520m and €550m (1) (1) Based on an assumption of an average Brazilian real/Eu
Slide 29: Save the Date – October 23, 2019
SAVE THE DATE – OCTOBER 23, 2019 Capital Markets Day in London October 23, 2019 29
Slide 30: Appendices
Appendices 30
Slide 31: Environment, Social & Governance (ESG)
ENVIRONMENT, SOCIAL & GOVERNANCE (ESG) A recognized commitment Since 2013, Edenred has been listed in the Dow Jones Sustainability Indices. Launched in 1999, the DJSIs were the first global indices tracking the financial performance of leading sustainability-driven companies worldwide Edenred is p
Slide 32: Employee Benefits and Fleet & Mobility Organic Operating Revenue Growth
EMPLOYEE BENEFITS AND FLEET & MOBILITY SOLUTIONS ORGANIC OPERATING REVENUE GROWTH Employee Benefits Fleet & Mobility 16.8% 17.1% 15.4% 13.7% 14.5% 13.9% 14.2% 11.7% FY 18 Q1 19 Q2 19 H1 19 FY 18 Q1 19 Q2 19 H1 19 L/L operating revenue growth (excluding Venezuela) L/L operating revenue growth 32
Slide 33: Operating Revenue
OPERATING REVENUE Q1 Q2 H1 In € millions 2019 2018 2019 2018 2019 2018 Europe 213 183 209 179 422 362 France 69 63 59 55 128 118 Rest of Europe 144 120 150 124 294 244 Latin America 128 119 138 124 266 243 Rest of the world 28 17 32 18 60 35 Operating revenue 369 319 379 321 748 640 Q1 Q2 H1 L/L (ex
Slide 34: Other Revenue (Formerly Financial Revenue)
OTHER REVENUE (FORMERLY FINANCIAL REVENUE) Q1 Q2 H1 In € millions 2019 2018 2019 2018 2019 2018 Europe 4 4 4 3 8 7 France 2 2 1 1 3 3 Rest of Europe 2 2 3 2 5 4 Latin America 9 8 9 8 18 16 Rest of the world 1 1 2 1 3 2 Other revenue 14 13 15 12 29 25 Q1 Q2 H1 L/L (excl. L/L (excl. L/L (excl. In % Re
Slide 35: Total Revenue
TOTAL REVENUE Q1 Q2 H1 In € millions 2019 2018 2019 2018 2019 2018 Europe 217 187 213 182 430 369 France 71 65 60 56 131 121 Rest of Europe 146 122 153 126 299 248 Latin America 137 127 147 132 284 259 Rest of the world 29 18 34 19 63 37 Total revenue 383 332 394 333 777 665 Q1 Q2 H1 L/L (excl. L/L
Slide 36: H1 2019 Cash Flow Statement
H1 2019 CASH FLOW STATEMENT In € millions H1 2019 H1 2018 Funds from operations 264 200 (1) Increase/(decrease) in cash linked to changes in float -256 -270 (Increase)/decrease in restricted cash -132 -121 (Increase)/decrease in working capital (excl. float) 148 83 Recurring capex -37 -37 Free cash
Slide 37: EBITDA, Operating EBIT & EBIT
EBITDA, OPERATING EBIT & EBIT L/L (excl. L/L (excl. In € millions H1 2019 H1 2018 Reported In € millions H1 2019 H1 2018 Reported Venezuela) Venezuela) Europe 130 110 +17.5% +13.2% Europe 168 135 +24.8% +13.3% France 28 27 +5.2% +5.2% France 42 36 +17.0% +5.5% Rest of Europe 102 83 +21.4% +15.7% Res
Slide 38: Summarized Balance Sheet
SUMMARIZED BALANCE SHEET As of June 30, 2019 In € millions June 19 Dec 18 June 18 In € millions June 19 Dec 18 June 18 Goodwill 1,604 976 965 Total equity (1,338) (1,451) (1,569) I ntangible assets 606 432 427 Property, plant & equipment 139 52 48 Gross debt and other financial I nv estments in asso
Slide 39: Net Debt
NET DEBT Bridge from December 31, 2018 to June 30, 2019 Currency December 31, 2018 IFRS 16 Free cash Acquisitions Shareholder effects(1) and June 30, 2019 net debt position impacts flow (incl. put options) return other non- net debt position recurring items €(659)m €(1,630)m €(91)m €(13)m €(751)m €(
Slide 40: No Major Repayments Due Before 2025
NO MAJOR REPAYMENTS DUE BEFORE 2025 Debt repayment schedule (€m) Total gross debt as of June 30, 2019: €2.9 bn Repayments (bonds, Schuldschein loan, bank loans, NEU CP) Undrawn revolving credit facility 700 552 500 500 500 258 231 121 140 2019 2020 2021 2022 2023 2024 2025 2026 2027 Share of total d
Slide 41: Average Exchange Rate
AVERAGE EXCHANGE RATE Average rates Average rates Spot rate Spot rate 2019 vs. 2018 2019 vs. 2018 2019 vs. 2018 as of as of €1 = X foreign currency Q1 2019 Q1 2018 Q2 2019 Q2 2018 H1 2019 H1 2018 Q3 2018 Q4 2018 FY 2018 Change (in %) Change (in %) Change (in %) 30.06.2019 30.06.2018 Brazilian real (
Slide 42: 2019 Expected Calendar Effects
2019 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2019 Nb of Nb of Nb of Nb of Nb of Working days days days days days days Europe -1 0 1 0 0 Latin America 0 -1 2 2 2 Rest of the world -1 1 1 0 2 TOTAL -1 0 2 0 1 42
Slide 43: Contact
CONTACT Solène Zammito [email protected] Loïc Da Silva [email protected] 43