Edenred Sa · EURONEXT:EDEN
Edenred Sa — H1 2022 Earnings Presentation
51 slides from Edenred Sa's earnings presentation, Jul 26, 2022
Slide 1: H1 2022 Results
H1 2022 RESULTS July 26, 2022 1
Slide 2: Executive Summary (1/2)
EXECUTIVE SUMMARY (1/2) Record H1 2022 results demonstrate Edenred’s capacity to further leverage the scale effect of its unique global platform in a new macro-economic context Total revenue of €922m in H1 2022, up 21.7% as reported and 18.1% like-for-like ▪ H1 2022 operating revenue up 20.9% as r
Slide 3: Executive Summary (2/2)
EXECUTIVE SUMMARY (2/2) Edenred is better poised than ever to deliver sustainable and profitable growth in 2022 and beyond Further penetrating its markets thanks to strong go-to-market and relevant portfolio of solutions Capacity to offer unparalleled omni-channel UX thanks to major investments
Slide 4: Agenda
Agenda 1. H1 2022 key figures & highlights 2. H1 2022 results 3. FY 2022 outlook 4
Slide 5: Another buoyant quarter leads to record performance in H1
Another buoyant quarter leads to record performance in H1 5
Slide 6: A unique B2B2C platform
A unique B2B2C platform INTERMEDIATING 50M+ USERS AND 2M MERCHANTS IN 4 UNIVERSES, WITH A B2B2C MODEL >50m €30bn Users Business volume >2m Merchants Everyday ~900k companion for people at work Companies Eat Care Move Pay Meal & Food Gift, incentive & rewards Fuel & Fleet Corporate Payments Employee
Slide 7: The platform advantage: a virtuous circle of growth
The platform advantage A VIRTUOUS CIRCLE OF GROWTH Cross-selling / upselling Faster Record-high total revenue growth in H1 2022 Retention growth Time-to-market +18% like-for-like vs. H1 2021 Digital sales channels Mutualized costs Higher EBITDA margin reaching 39.6% in H1 2022 Scale effect Pricing p
Slide 8: Q2 marks an acceleration in top line growth
A strong performance in H1 2022 Q2 MARKS AN ACCELERATION IN TOP LINE GROWTH Operating revenue in €m +17.3% Continued strong business L/L momentum and commercial 891 dynamism fueled by product innovation +19.2% 736 +15.3% L/L L/L Increased attractiveness of our solutions in an inflationary 465 42
Slide 9: Operating leverage leads to increase in H1 2022 EBITDA margin
A strong performance in H1 2022 OPERATING LEVERAGE LEADS TO 60 BP INCREASE IN H1 2022 EBITDA MARGIN VS. H1 2021 Record-high L/L EBITDA growth Strong increase in EBITDA margin EBITDA in €m +22.0% 41.50% like-for-like 40.50% 39.6% 365 39.50% 39.0% 295 38.50% 255 37.50% 36.7% 36.50% 35.50% H1 2020 H1 2
Slide 10: Further leveraging the scale effect of the Edenred platform
Further leveraging the scale effect of the Edenred platform 10
Slide 11: Continued focus on 4 areas to harness Edenred's potential
CONTINUED FOCUS ON 4 AREAS TO HARNESS EDENRED’S STRONG POTENTIAL Business profile 1 Expanding our portfolio Beyond Food, Beyond Fuel and EDENRED PLATFORM Beyond Payment to foster cross-selling and upselling Technology & product 2 Offering an enriched omni-channel digital UX €30bn >50m Business volum
Slide 12: Expanding the portfolio beyond food, beyond fuel and beyond payment
Business profile 1 EXPANDING THE PORTFOLIO BEYOND FOOD, BEYOND FUEL AND BEYOND PAYMENT Expanding range of solutions Robust and balanced business profile Illustrative Beyond Food >25% of Employee Benefits operating revenue is generated by solutions other than (Multi-benefit solutions e.g., MyEdenre
Slide 13: Leading the French market with a unique digital platform
Business profile 1 LEADING THE FRENCH MARKET WITH A UNIQUE DIGITAL PLATFORM A comprehensive portfolio of benefits integrated into the MyEdenred super-app A wide range of benefits across 3 universes Eat Care Move 40%+ market share on meal benefits market 1 thanks to leading Ticket Restaurant digital
Slide 14: Beyond Food benefits: developing solutions for employers and employees
Business profile 1 BEYOND FOOD BENEFITS: FURTHER DEVELOPING OUR SOLUTIONS FOR EMPLOYERS AND EMPLOYEES MeyClub, Edenred’s unique proprietary e- commerce platform Enhancing purchasing power with negotiated discounts and deals (e.g., culture, sports, wellbeing) Integrated into MyEdenred super-app with
Slide 15: Beyond Fuel is booming – focus on maintenance
Business profile 1 BEYOND FUEL IS BOOMING – FOCUS ON MAINTENANCE 100% digital solutions to optimize maintenance management in Brazil ~400k active vehicles Comprehensive portfolio of services dedicated to fleet ~15k repair shops managers (e.g., customizable preventive maintenance, service order, ne
Slide 16: The power of innovation: seamless refuel or recharge solution
Technology & product 2 THE POWER OF INNOVATION: SEAMLESS SOLUTION TO REFUEL OR RECHARGE IN AN EXTENSIVE NETWORK A global network of 1.1m energy UTA EasyFuel®: fast, safe and refueling sources contactless payment… Save time refueling: no need to go to the cashier’s desk, process your transaction ~7
Slide 17: The power of Edenred's sales machine: inbound websales
Go-to-market 3 THE POWER OF EDENRED’S SALES MACHINE: INBOUND WEBSALES INCREASINGLY CONTRIBUTING TO COMMERCIAL MOMENTUM Zoom on Germany Websales platform launched 14 countries1 have a websales platform in 2017 Strong know-how, optimizing every step of the sales funnel Fast-growing sales channel to ta
Slide 18: Growth opportunities in the underpenetrated SME market
Go-to-market 3 FURTHER GROWTH OPPORTUNITIES IN THE VASTLY UNDERPENETRATED SME MARKET Focus on SME market in France and Italy ~1.1m # of SME ~2.0m # of SME > 90% > 95% Fast-growing segment Higher pricing power < 10% < 5% fr employees From 1 to 99 it employees From 1 to 99 SME without meal vouchers SM
Slide 19: CSI segmented approach is boosting growth
Go-to-market 3 CSI SEGMENTED APPROACH IS BOOSTING GROWTH CORE VERTICALS NEW VERTICALS MEDIA HOSPITALITY GOLF UTILITY PROPERTY ENERGY CLUBS & TELCO MANAGEMENT OIL & GAS ILLUSTRATIONS Mid-size market Direct Sales Focus on key core verticals, expanding into new verticals: unique ecosystem connectivity
Slide 20: A platform for good, contributing to a better world
ESG 4 A PLATFORM FOR GOOD, CONTRIBUTING TO A BETTER WORLD Edenred is well on track to achieve 2030 targets 2020 2021 2030 % women among executive position 29% 34% 40% % greenhouse gas emissions reduction vs. 2013 -46% -46% -52% % of merchants and users sensitized to balanced 44% 57% 85% nutrition an
Slide 21: Move for Good, a program for the planet
A platform for good, contributing to a better world 4 MOVE FOR GOOD, A PROGRAM FOR THE PLANET A four-pillar program… …leveraging Edenred’s distinctive assets Raise by providing real-time GoHub giving a 360° vision data reporting and customizable awareness on GHG1 emissions data to dashboards Data-po
Slide 22: Specific-purpose money: enhancing agricultural productivity
A platform for good, contributing to a better world 4 THE POWER OF SPECIFIC-PURPOSE MONEY: ENHANCING AGRICULTURAL PRODUCTIVITY TO IMPROVE STANDARDS OF LIVING Rolling out in Cameroon 100% digital solution giving direct and secured online access to subsidies for agricultural inputs Harnessing Tech for
Slide 23: Expanding value-added services to foster inclusion in UAE
A platform for good, contributing to a better world 4 EXPANDING VALUE-ADDED SERVICES TO FOSTER INCLUSION IN UNITED ARAB EMIRATES Addressing essential needs: zoom on salary advance ~5k corporate clients use Edenred’s payroll portal Get 50% of your salary in advance in case of emergencies ~1.5m C3Pa
Slide 24: Agenda
Agenda 1. H1 2022 key figures & highlights 2. H1 2022 results 3. FY 2022 outlook 24
Slide 25: Outstanding growth in both reported and L/L figures
Q2 & H1 2022 operating revenue OUTSTANDING GROWTH IN BOTH REPORTED AND L/L FIGURES Q2 2021 H1 2021 Operating revenue €373m €736m LIKE-FOR-LIKE +19.2% +17.3% Scope -0.4% -0.5% Currency +5.7% +4.1% REPORTED +24.5% +20.9% €465m €891m Q2 2022 H1 2022 25
Slide 26: Double-digit L/L growth in all business lines in H1 2022
DOUBLE-DIGIT L/L GROWTH IN ALL BUSINESS LINES IN H1 2022 EMPLOYEE FLEET & MOBILITY COMPLEMENTARY BENEFITS SOLUTIONS SOLUTIONS Corporate Payment Services % OF H1 2022 GROUP OPERATING REVENUE 59% 28% 13% Incentive & Rewards Public Social Programs €528m €252m €111m H1 2022 REPORTED OPERATING REVE
Slide 27: Double-digit L/L growth in all geographies in H1 2022
DOUBLE-DIGIT L/L GROWTH IN ALL GEOGRAPHIES IN H1 2022 EUROPE REST OF THE WORLD +16.0% reported +20.5% reported 62% 8% +15.7% like-for-like +31.3% like-for-like vs. H1 2021 vs. H1 2021 LATIN AMERICA +32.5% reported 30% +16.9% like-for-like vs. H1 2021 % of H1 2022 Group operating revenue 27
Slide 28: Europe: robust double-digit organic growth
Q2 & H1 2022 operating revenue – Europe ROBUST DOUBLE-DIGIT ORGANIC GROWTH OPERATING REVENUE Q2 comments vs. 2021 €551m +16.0% as reported France 62% in H1 22 Sustained commercial dynamism of the leading +15.7% Ticket Restaurant digital offer L/L Success of the Beyond Food strategy with an incre
Slide 29: Latin America: solid performance across the region
Q2 & H1 2022 operating revenue – Latin America SOLID PERFORMANCE ACROSS THE REGION OPERATING REVENUE Q2 comments vs. 2021 €270m +32.5% as reported Brazil 30% in H1 22 Further growth in Employee Benefits supported by +16.9% L/L the continued success of Itaù Unibanco partnership Robust performance
Slide 30: Other revenue up 46.5% L/L driven by float and interest rates
H1 2022 other revenue OTHER REVENUE UP 46.5% L/L DRIVEN BY INCREASE IN FLOAT AND INTEREST RATES OTHER REVENUE Sustained business momentum positively impacting the float €31m in H1 22 Positive impact from higher rates outside the vs. €21m in H1 21 euro zone and in Latin America Reported Other rev
Slide 31: Total revenue €922m, up 21.7% L/L
Q2 & H1 2022 total revenue €922M, UP 21.7% L/L VS. H1 2021 Q2 2021 H1 2021 Total revenue €383m €757m LIKE-FOR-LIKE +20.4% +18.1% Scope -0.4% -0.4% Currency +5.7% +4.0% REPORTED +25.7% +21.7% €482m €922m Q2 2022 H1 2022 31
Slide 32: From revenue to EBIT
From revenue to EBIT SHARP INCREASE IN EBITDA, OPERATING EBIT AND EBIT L/L Reported In € millions H1 2022 H1 2021 change change Operating revenue 891 736 +17.3% +20.9% Demonstrated operating leverage Other revenue (A) 31 21 +46.5% +49.1% Record-high L/L revenue growth Total revenue 922 757 +18.1%
Slide 33: Significant increase in net profit, Group share
H1 2022 net profit SIGNIFICANT INCREASE IN NET PROFIT, GROUP SHARE OF +27.5% Reported H1 2022 H1 2021 change In € millions EBITDA 365 295 +23.6% D&A excluding PPA (50) (46) PPA (20) (17) EBIT 295 232 +27.3% Share of net profit from equity-accounted companies 1 4 Other income and expenses (9) (7) Ope
Slide 34: Strong FFO generation
EBITDA to FCF STRONG FFO GENERATION H1 2022 H1 2021 Reported change In € millions Funds from operations (FFO) 299 254 +17.5% Strong double-digit L/L FFO Increase/(Decrease) in cash linked to changes in float (267) (189) growth and positive contribution of total WCR Decrease/(Increase) in WCR, excl
Slide 35: Decreasing net debt driven by strong cash generation
Net debt as of June 30, 2022 DECREASING NET DEBT DRIVEN BY LTM STRONG CASH GENERATION Currency effects June 30, 2021 June 30, 2022 Free cash flow Acquisitions Shareholder return and other non- Net debt position Net debt position recurring items €(1,056)m €(60)m €(1,449)m €(269)m €(45)m €767m Of whic
Slide 36: A robust financial position
A ROBUST FINANCIAL POSITION High level of liquidity and solid balance sheet Strong Investment Grade rating €4.7bn in cash1 and restricted funds on balance BBB+ rating, Outlook increased to “positive” from sheet “stable” by Standard & Poor’s in April 2022 €1.75bn in short-term financing options
Slide 37: Agenda
Agenda 1. H1 2022 key figures & highlights 2. H1 2022 results 3. FY 2022 outlook 37
Slide 38: Taking full benefit of the current macro-economic context
TAKING FULL BENEFIT OF THE CURRENT MACRO-ECONOMIC CONTEXT Increased purchasing power with Employee Benefits offer More attractive solutions Enhanced efficiency and more control with Fleet & Mobility and B2B Corporate Payments solutions Increased legal maximum face value decided by governments
Slide 39: Stronger position than ever to generate sustainable and profitable growth
EDENRED IS IN A STRONGER POSITION THAN EVER TO GENERATE SUSTAINABLE AND PROFITABLE GROWTH Edenred is strengthening its platform every day through increased technology investments and product innovation to continue to lead the transformation of its 1 markets. Edenred is ideally positioned to capture
Slide 40: Save the date: 2022 Capital Markets Day
SAVE THE DATE 2022 CAPITAL MARKETS DAY London, October 25
Slide 41: Appendices
APPENDICES 3~
Slide 42: Operating revenue by region
OPERATING REVENUE BY REGION Q1 Q2 H1 In € millions 2022 2021 2022 2021 2022 2021 Europe 270 237 281 238 551 475 France 76 69 74 66 150 135 Rest of Europe 194 168 207 172 401 340 Latin America 123 97 148 107 270 204 Rest of the world 33 29 36 28 70 58 Operating revenue 426 363 465 373 891 736 Q1 Q2 H
Slide 43: Operating revenue by business line
OPERATING REVENUE BY BUSINESS LINE Q1 Q2 H1 In € millions 2022 2021 2022 2021 2022 2021 Employee Benefits 256 223 271 225 528 448 Fleet & Mobility 117 90 135 100 252 190 Complementary Solutions 53 50 59 48 111 98 Operating revenue 426 363 465 373 891 736 Q1 Q2 H1 In % Reported Like-for-like Reported
Slide 44: Other revenue
OTHER REVENUE Q1 Q2 H1 In € millions 2022 2021 2022 2021 2022 2021 Europe 5 3 6 3 11 7 France 2 1 1 1 3 3 Rest of Europe 3 2 5 2 8 4 Latin America 7 6 10 6 17 11 Rest of the world 1 1 2 1 3 3 Other revenue 13 10 18 10 31 21 Q1 Q2 H1 In % Reported Like-for-like Reported Like-for-like Reported Like-fo
Slide 45: Total revenue
TOTAL REVENUE Q1 Q2 H1 In € millions 2022 2021 2022 2021 2022 2021 Europe 275 240 287 241 562 481 France 78 70 75 67 153 137 Rest of Europe 197 170 212 174 409 344 Latin America 130 103 158 113 287 216 Rest of the world 34 30 38 30 73 60 Total revenue 439 373 482 384 922 757 Q1 Q2 H1 In % Reported L
Slide 46: EBITDA, operating EBIT & EBIT
EBITDA, OPERATING EBIT & EBIT In € millions H1 2022 H1 2021 Reported Like-for-like In € millions H1 2022 H1 2021 Reported Like-for-like Europe 242 192 +25.8% +25.5% Europe 194 151 +28.5% +28.2% France 55 49 +13.5% +13.5% France 41 35 +17.6% +17.6% Rest of Europe 187 144 +30.0% +29.5% Rest of Europe
Slide 47: H1 2022 free cash flow
H1 2022 FREE CASH FLOW In € millions H1 2022 H1 2021 Net profit attributable to owners of the parent 170 133 Non-controlling interests 16 14 Dividends received from equity-accounted companies 10 14 Difference between income tax paid and income tax expense 10 14 Non-cash income and expenses 93 79 = F
Slide 48: Summarized balance sheet
SUMMARIZED BALANCE SHEET June 30, Dec.31, June 30, June 30, Dec.31, June 30, In € millions In € millions 2022 2021 2021 2022 2021 2021 Goodwill 1,608 1,506 1,499 Total equity (806) (869) (1,006) Intangible assets 728 677 674 Property, plant & equipment 155 156 165 Gross debt and other financial Inve
Slide 49: Average exchange rate
AVERAGE EXCHANGE RATE Average rates Average rates Spot rate Spot rate as 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 as of €1 = X foreign currency Q1 2022 Q1 2021 Q2 2022 Q2 2021 H1 2022 H1 2021 Q3 2021 Q4 2021 FY 2021 of 30.06.2022 Change (in %) Change (in %) Change (in %) 30.06.2021 Brazilian real (
Slide 50: 2022 expected calendar effects
2022 EXPECTED CALENDAR EFFECTS Q1 Q2 Q3 Q4 2022 Nb of Nb of Nb of Nb of Nb of Working days days days days days days Europe 1 (0) (1) (2) (2) Latin America 1 (0) 0 (1) (0) Rest of the world 1 0 0 (0) 1 TOTAL 1 (0) (0) (1) (1) 50
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