H1 2020 RESULTS
July 27, 2020
EXECUTIVE SUMMARY (1/2)
Edenred, a digital champion with strong business and financial fundamentals to overcome the Covid-19 crisis
- A strong growth profile with a robust financial position
- A global player, operating in 46 countries, on vastly underpenetrated markets
- A tech leader, delivering relentless innovation around specific-purpose payment solutions
- 250+ solutions covering essential needs: Eat, Move, Care, Pay
- An agile organization, with local corporate entrepreneurs operating on the ground, supported by e-Quarter's scaling champions and technology experts
H1 2020: strong Group resilience, and sharp rebound in June in Europe
- Total revenue of €696m, down 4.8% like-for-likeand 10.4% as reported due to a negative currency impact (-6.1%)
- Operating revenue of €675m, down 4.6% like-for-like,reflecting +6.6% in Q1 and -15.4%in Q2
- A sharp improvement in June with operating revenue down 9% like-for-like after -19% in April and -18% in May
- EBITDA: €255m, down 12.8% like-for-likeand 17.8% as reported
- FCF generation of €113m vs. €(13)m in H1 2019 due to a temporarily longer float retention time
- Net profit, Group share: €100m
All like-for-like and currency impact figures are excluding Venezuela and based on proforma 2019 figures that include a classification change for revenue recognition in Brazil | 2 |
(neutral impact over the full year). See the appendix, page 39. |
EXECUTIVE SUMMARY (2/2)
FY 2020 outlook
- Continued gradual recovery in H2, particularly in Europe, while still some uncertainties in Latin and North America: year-on-year like-for-likemonthly operating revenue growth >0% at some stage in H2 2020
- Confirmation of €100m cost savings/avoidance plan and selective downward adjustments of 2020E capital expenditure
FY 2020 EBITDA estimate1 | FY 2020 leverage |
between €540m and €610m | < 2.8x EBITDA |
Edenred, a digital champion well positioned for the "post-Covid" world
- A crisis accelerating the need for earmarked funds to fulfill essential needs
- An agile organization combined with a technology platform allowing the Group to seize business opportunities
- Strong financials to pursue our product and technology investment strategy
Capacity to rebound quickly thanks to a resilient business model, strengthened digital leadership, the accelerated deployment of earmarked funds programs, and an ambitious product and technology investment strategy
1. Based on an assumption of an average BRL/EUR exchange rate for the second half of the year equal to the closing spot rate on June 30, 2020. | 3 |
Agenda
- H1 2020 Highlights
- H1 2020 Results
- 2020 Outlook
4
SHARP IMPROVEMENT IN JUNE DRIVEN BY THE GRADUAL END OF LOCKDOWNS AND SHORT-TIME WORK SCHEMES IN EUROPE
Group total operating
revenue like-for-like change
March April May June
-0.5%
-9%
-19%-18%
- Overall resilience thanks to digital business continuity, launch of new initiatives around earmarked funds and products' focus on essential needs: Eat, Move, Care, Pay
- Fast recovery in Europe since June, in line with the gradual easing of lockdown rules:
- Phase-outof short-time work schemes
- Ability to move again
- Higher spending volume at merchants' stores
- Americas still highly impacted as Covid had still not peaked as of end-June
5
SEAMLESS BUSINESS CONTINUITY THANKS TO AGILE TEAMS AND DIGITAL SOLUTIONS
86%
+9pts
of total Edenred business
volume was digital in H1 2020
in Employee Benefits digital adoption in Europe vs. H1 2019
- Close to 100% of Edenred employees have been able to work from home
- Digital ensures good business and usage continuity - digital loading of clients' and users' accounts, launch of plastic-freesolutions in some countries (e.g. Spain, Finland)
- Solutions fitting home/remote working requirements, e.g.:
- Increased flexibility at lunch time vs. on-site cafeteria
- Digital fleet managers' platform to monitor drivers' expenses vs. processing paper receipts and invoices
- Digital B2B payment automation platform vs. faxing paper checks
6
STRONG RAMP-UP OF APP-TO-APP PAYMENTS (MEAL DELIVERY PLATFORMS)
x2
60
number of transactions vs. H1 2019
partnerships live in 6 countries
through Edenred Digital Payment Services
-
Fast ramp-up of app-to-app payment in Brazil with the launch of Uber Eats, iFood and Rappi:
600k transactions since go live in March 2020 - High adoption rate in France, with 30% of Ticket Restaurant card users logged in Edenred Digital Payment Services (EDPS)
- Continued development with an ambitious roadmap for H2 2020 and 2021, both for new products and for new geographies
7
INNOVATIVE FOOD SOLUTIONS TO REPLACE SCHOOL OR OFFICE CAFETERIA
Two illustrations of specific purpose food programs
An innovative e-voucher system to replace free lunches for UK pupils
- A digital payment solution giving access to a large food network built in 2 weeks
- 1.3 million British pupils as beneficiaries
- £15 per week per eligible child to be spent on food in a dedicated supermarket network
- Initial project for April, first extension until end-June, now extended to the end of August
Launch of a new food benefits program in the USA
- A corporate meal card program to increase employers' attractiveness and improve workers' productivity and wellbeing by securing a budget for food
- Particularly relevant for remote workers and when on-sitefood services are not available
- No tax break
- First client: Spotify (launch date: August 2020)
8
ENSURING AN EFFICIENT ECONOMIC RECOVERY VIA SPECIFIC-PURPOSE SOLUTIONS
Boosting the tourism sector and promoting a green recovery
New holiday benefits in Greece to relaunch local tourism industry
- Since March 2020, up to €300 per employee, to be used in a filtered network of local travel agents, hotels, restaurants
- Tax exempted benefit
- Existing holiday benefits programs in Romania, Slovakia
Reconciling environmentally friendly behaviors and economic recovery
- Strong performance of Ticket Ecochèque in Belgium in Q2 (to stimulate green consumption: 1kg CO2 saved per €1 spent)
- Roll-outof the existing range of benefits dedicated to sustainable mobility (USA, UK, Belgium, Finland) in France last March with the launch of Ticket Mobilité
-
Ticket Mobilité: up to €400 per year per employee (tax exempt)
to pay for mobility (e.g. bicycle purchase and maintenance, public transportation)
-
Ticket Mobilité: up to €400 per year per employee (tax exempt)
9
ACTIVE MANAGEMENT OF P&L AND CASH FLOWS
P&L
- Topline rolling forecast by country and by solution
- €100m opex savings/avoidance plan for full- year 2020 vs. budget, to mitigate Edenred's sensitivity to the consequences of Covid-19 epidemic
- Well on track to reach the €100m cost savings/avoidance target in 2020
Cash flows
- Increased float in H1 2020 as a result of longer retention time due to lockdown measures
- Intended capital expenditure for 2020 revised downward, without compromising the Group's capacity for technological innovation or growth
- Float retention time to return to normal in H2 as users start to spend their funds again at merchants' stores
- No risk to the Group's liquidity and strong financial position with BBB+ Strong Investment Grade rating confirmed by Standard & Poor's last May
10
SUPPORTING EDENRED'S ECOSYSTEM: MORE THAN EVER RELIEF PLAN
Up to €15 million committed to mitigate the consequences of the Covid-19 epidemic on Edenred's ecosystem
An agile bottom-up approach
- A selection of 63 initiatives out of more than 100 proposals from local country managers to:
- Protect Edenred employees, notably in countries with lower healthcare coverage
- Support merchants (e.g. restaurant owners) and professional users (e.g. truck drivers)
- Support scientific research to find a cure for Covid-19
- Initiatives throughout all Edenred countries
Illustrations
-
Strengthening health insurance coverage in some Latin
American countries - Stimulating consumption in restaurants, e.g.:
- Participation in HORECA Comeback initiative in Belgium
- "Let's Eat Out" marketing campaign in Central Europe
- Supporting essential needs for professional users
- Access to sanitary facilities for European truckers
- Free online health consultations for Brazilian truckers
11
Agenda
- H1 2020 Highlights
- H1 2020 Results
- 2020 Outlook
12
H1 2020 OPERATING REVENUE
H1 2020 down 4.6% L/L (of which -15.4% in Q2) and down 10.2% as reported
Q2 2020 | H1 2020 | |
€292m | €675m | |
REPORTED | -23.4% | -10.2% |
Scope | +0.3% | +0.4% |
Currency | -8.2% | -6.0% |
LIKE-FOR-LIKE | -15.4% | -4.6% |
€381m | €751m | |
Q2 2019 | H1 2019 |
L/L OPERATING REVENUE CHANGE
14.2% | 14.6% | 13.2% | 13.6% | 13.9% | ||||||
6.6% | ||||||||||
-4.6% | ||||||||||
-15.4% | ||||||||||
Q1 19 | Q2 19 | Q3 19 | Q4 19 | FY 19 | Q1 20 | Q2 20 | H1 20 |
13
H1 2020 OPERATING REVENUE BREAKDOWN PER BUSINESS LINE
EMPLOYEE | FLEET & MOBILITY | COMPLEMENTARY | ||||
BENEFITS | SOLUTIONS | SOLUTIONS | ||||
| Corporate | |||||
Payment Services | ||||||
% OF H1 2020 GROUP | 61% | 26% | 13% | | Incentive | |
OPERATING REVENUE | & Rewards | |||||
| Public Social | |||||
Programs | ||||||
€412m | €173m | €90m | ||||
H1 2020 OPERATING REVENUE CHANGE | ||||||
LIKE-FOR-LIKE | -8.7% | -1.4% | +11.0% | |||
REPORTED | -12.9% | -10.7% | +6.1% | |||
14
H1 2020 OPERATING REVENUE - EMPLOYEE BENEFITS
Temporary impact from furlough measures and delayed merchant revenue
€412m | -8.7% |
L/L | |
in H1 20 | -12.9% |
as reported |
L/L operating revenue change
13.0% | |||
3.2% | |||
-8.7% | |||
-20.6% | |||
FY 19 | Q1 20 | Q2 20 | H1 20 |
During the lockdown
- Temporary impact from short-timeworking (benefit allowance calculated based on the number of actual days worked)
- Delayed merchant revenue due to limited traffic in- store
After the lockdown
- Client fees: recovery led by end of furlough measures
- Merchant fees: recovery fueled by traffic rebound in reopened stores
15
H1 2020 OPERATING REVENUE - FLEET & MOBILITY SOLUTIONS
Mixed effects from stay-at-home requirements on heavy and light fleet segments
€173m | -1.4% |
L/L | |
in H1 20 | -10.7% |
as reported |
L/L operating revenue change
15.8% | 12.8% | ||
-1.4% | |||
-14.3% | |||
FY 19 | Q1 20 | Q2 20 | H1 20 |
During the lockdown
- Heavy fleet solutions (trucking business) more resilient than light fleet solutions (mostly vans and small trucks)
After the lockdown
- Progressive rebound in heavy fleet solutions
- Fast rebound in light fleet solutions as soon as stay-at- home measures were eased
- Pursued innovation strategy, e.g. launch of a new fleet management platform in Europe in H1
16
H1 2020 OPERATING REVENUE - COMPLEMENTARY SOLUTIONS
New specific purpose programs and stronger appetite for digital secured Corporate Payment solutions leading to 11% L/L operating revenue growth in H1
€90m
in H1 20
+11.0% | Strong performance of new specific purpose programs to |
L/L | combat Covid impacts, e.g.: |
+6.1% | |
▪ Free school meals program in the UK | |
as reported | |
- Covid-19voucher relief program in Italy
L/L operating revenue growth
14.9% | 12.1% | 11.0% | |
9.9% | |||
- NGO-fundedfood cards in Brazil
- Childcare programs for caregivers in France
- Increased attractiveness of digital corporate payment services, as an alternative to paper-based solutions, e.g.:
▪ | CSI B2B platform | ||||
▪ | Virtual card issuing | ||||
FY 19 | Q1 20 | Q2 20 | H1 20 | ▪ | Identified IBAN |
17
H1 2020 OPERATING REVENUE BREAKDOWN PER REGION
REST OF THE WORLD | EUROPE | ||
9% | +3.5% L/L | 61% | -3.5% L/L |
+1.0% as reported | -2.6% as reported | ||
LATIN AMERICA
30% -8.1% L/L
-24.5% as reported
% of H1 2020 Group operating revenue | 18 |
H1 2020 OPERATING REVENUE - EUROPE
Strong rebound in June, particularly in France
€411m | -3.5% |
L/L | |
in H1 20 | -2.6% |
as reported |
L/L CHANGE
Q1 20 | Q2 20 | H1 20 | |
France | +2.0% | -31.3% | -13.5% |
Rest of Europe | +7.8% | -5.9% | +0.8% |
Total Europe | +5.9% | -13.1% | -3.5% |
France
- One of the hardest hit countries by stay-at-home and short- time working measures in April and May
- Strong rebound in June, as client orders returned to positive territory
- Employee Benefits: merchant revenue still delayed in June, but situationimproving thanks to a daily spending cap revised up from €19 to €38 in restaurants:
- Averagedigital transaction value in restaurants is up 50% in June vs pre-Covid situation
- Fleet & Mobility: positive performance in June vs last year
Rest ofEurope
- Employee Benefits: mixed situations with gradual recovery, at different levels from one country to another depending on timing and conditions of the lockdown easing
- Fleet & Mobility: on-going recovery in Continental Europe, while TRFC is still impacted by the lockdown in the United Kingdom
19
H1 2020 OPERATING REVENUE - LATIN AMERICA
Peak of Covid crisis not yet reached at end-June
€203m | -8.1% |
L/L | |
in H1 20 | -24.5% |
as reported |
L/L CHANGE
Q1 20 | Q2 20 | H1 20 | |
Brazil | +7.1% | -22.2% | -8.2% |
Hispanic Latin America | +0.6% | -16.0% | -8.0% |
Total Latin America | +5.2% | -20.4% | -8.1% |
Brazil
- Peak of Covid crisis not yet reached at end-June
- Employee Benefits impacted notably by closed restaurants. Fast adoption rate of meal delivery platform
app-to-app payment solutions
- Fleet & Mobility: better resilience of heavy fleet vs. light fleet solutions, reinforced by positive effects from a particularly good harvest season
- Negative retail fuel price effect in H1
Hispanic Latin America
- An overall lack of control of the spreading epidemic
- Mexico strongly impacted by epidemic and negative retail fuel price effect in Fleet & Mobility Solutions
20
H1 2020 OTHER REVENUE
Higher float more than offset by lower interest rates and strong negative currency effect from Latin America
OTHER REVENUE
€21m in H1 20
vs. €26m in H1 19
- Higher float in H1 2020 vs. H1 2019 due to extended Employee Benefits retention time
- Lower interest rates worldwide, especially in non-Eurozone and non-European countries
- Negative currency effects in Latin America
Other revenue in €m | H1 2020 | H1 2019 | Reported | L/L change |
change | ||||
Latin America | 11 | 15 | -20.3% | -5.3% |
Europe | 8 | 8 | -6.5% | -6.2% |
Rest of the World | 2 | 3 | -40.1% | -34.9% |
Total | 21 | 26 | -18.4% | -9.2% |
21
FLOAT INVESTMENT POLICY
A FLOAT MAINLY GENERATED IN EUROPE
Regional breakdown of the float
A CAUTIOUS INVESTMENT POLICY
| Centralized cash management |
| Investment in money market instruments |
REST OF THE WORLD
~5%
EUROPE ~80%
in local currency only (bank term deposits | |
with no risk on capital) | |
| No float transfer between currencies |
(natural hedge) | |
| Optimized maturity management policy |
LATIN AMERICA
<15%
Diversified and high-standard |
counterparties |
22
H1 2020 TOTAL REVENUE
H1 organic resilience hindered by negative FX changes in Latin America
Q2 2020 | H1 2020 | |
€301m | €696m | |
REPORTED | -23.6% | -10.4% |
Scope | +0.3% | +0.4% |
Currency | -8.3% | -6.1% |
LIKE-FOR-LIKE | -15.5% | -4.8% |
€394m | €777m | |
Q2 2019 | H1 2019 |
TOTAL REVENUE DETAILS (IN €M)
H1 20 | H1 19 | Reported | L/L | |
change | change | |||
Operating revenue | 675 | 751 | -10.2% | -4.6% |
Other revenue | 21 | 26 | -18.4% | -9.2% |
Total revenue | 696 | 777 | -10.4% | -4.8% |
CURRENCY EFFECTS (IN €M)
BRL | (36) |
MXN | (5) |
Other currencies | (6) |
Total impact | (47) |
23
H1 2020 EBIT: €192M
High seasonality of operating leverage this year, with encouraging signs of a
rebound and a €100m cost savings/avoidance plan that should pay off in H2
In € millions | H1 2020 | H1 2019 | Reported | L/L |
change | change | |||
Operating revenue | 675 | 751 | -10.2% | -4.6% |
Other revenue (A) | 21 | 26 | -18.4% | -9.2% |
Total revenue | 696 | 777 | -10.4% | -4.8% |
EBITDA | 255 | 310 | -17.8% | -12.8% |
EBITDA margin | 36.7% | 39.9% | -3.3pts | -3.4pts |
Operating EBIT (B) | 171 | 223 | -23.4% | -18.7% |
Operating EBIT margin | 25.3% | 29.7% | -4.4pts | -4.4pts |
EBIT (C)=(A)+(B) | 192 | 249 | -22.8% | -17.7% |
EBIT margin | 27.6% | 32.0% | -4.4pts | -4.4pts |
Cost dynamics
- Increased cost base in Q1 vs. 2019 against a backdrop of double-digitgrowth until mid-March
- Fast response with a €100m cost savings/avoidance plan vs. budget, designed via a bottom-upapproach
- Well on track to reach the €100m cost savings/avoidance target in 2020
24
H1 2020 EBIT: €192M, DOWN 18% L/L AND 23% AS REPORTED
High seasonality of profitability in 2020, and particularly negative currency effects
H1 2019 EBIT | Operating revenue | Other revenue | Changes in | Currency | Venezuela | H1 2020 EBIT |
L/LΔ: €(35)m | scope | effect | ||||
€(42)m | €(2)m | €6m | €(19)m | ||
€0m
€249m
€192m
25
H1 2020 NET PROFIT
Net profit, Group share at €100m
H1 2020 | H1 2019 | Reported | ||
In € millions | change | |||
EBITDA | 255 | 310 | -17.8% | |
D&A excluding PPA | (43) | (43) | ||
PPA | (20) | (18) | ||
EBIT | 192 | 249 | -22.8% | |
Share of net profit from equity-accounted companies | 6 | 6 | ||
Other income and expenses | (13) | (12) | ||
Operating profit including share of net profit from equity | 185 | 243 | ||
accounted companies | ||||
Net financial expense | (15) | (14) | ||
Income tax expense | (57) | (69) | ||
Net profit attributable to non-controlling interests | (13) | (14) | ||
Net profit, Group share | 100 | 146 | -31.4% | |
Mainly comprising technology asset write-offs
26
EBITDA TO FCF
A business model ensuring profitable growth and cash generation
H1 2020 | H1 2019 | |
In € millions | ||
EBITDA | 255 | 310 |
Funds from operations (FFO) | 207 | 264 |
Increase/(Decrease) in cash linked to changes in float | 313 | (256) |
Decrease in WCR, excl. float | 135 | 148 |
Increase in restricted cash | (489) | (132) |
Recurring capex | (53) | (37) |
Free cash flow (FCF) | 113 | (13) |
- H1 2020 float increase due to higher prepaid solutions retention time
- Float retention time to return to normal by the end of the year
- H1 capex reflects ongoing technology development during the period
- H2 2020E capex < H2 2019 level
27
NET DEBT AT JUNE 30, 2020: €1,501M
A lower net debt thanks to high level of cash flow generation in H2 2019, strong business resilience and longer float retention in H1 2020
June 30, 2019 | Currency effects | June 30, 2020 | |||
Free cash flow | Acquisitions | Shareholder return | and other non- | ||
Net debt position | Net debt position | ||||
recurring items | |||||
Of which:
- Paid dividends: €(73)m, of which €(13)m paid to non-controlling interests
- Capital increase: €2m
- Purchase of treasury shares: €(80)m
€(1,630)m
€(24)m
€(151)m
€526m
Of which:
• EBV, Mint portfolio, Benefit Online acquisitions
• Exercise of UTA put option (positive impact)
€(1,501)m
€(222)m 1
Of which €(194)m currency effects
1. Does not include an amount of €157 million corresponding to the fine issued by France's antitrust authority, which will be paid in first-quarter 2021. | 28 |
A ROBUST FINANCIAL POSITION
High level of liquidity and solid balance sheet
- €4.6bn cash, cash equivalents and restricted funds on balance sheet
- €1.5bn short-term financing options :
- undrawn revolving credit facility of €750m
- Commercial paper authorization of €1bn with €750m from short-term NEU CP (of which €228m was used as of end-June2020) and €250m from medium-term NEU MTN
- No financial covenants
- June: a new €600m 9-yearbond issue paying a record low interest rate for an Edenred bond (1.375%) - increasing debt maturity while optimizing cost of debt
Strong Investment Grade rating
-
BBB+ rating, Outlook stable confirmed by
Standard & Poor's last May - No major reimbursements before 2024
750 | ||||||||||||||||
NEW | ||||||||||||||||
233 | 500 | 500 | 500 | 500 | 600 | |||||||||||
33 | ||||||||||||||||
250 | 233 | 37 | ||||||||||||||
121 | ||||||||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |||||||
NEU CP and other | Bonds | Schuldschein loan | ||||||||||||||
Undrawn revolving | Convertible bonds | BRL bank loan | ||||||||||||||
credit facility |
29
Agenda
- H1 2020 Highlights
- H1 2020 Results
- 2020 Outlook
30
FY 2020 OUTLOOK - OPERATING REVENUE
H2 2020: Continued gradual recovery in Europe, and still some uncertainties in the Americas
Employee Benefits
- Some delayed user spending in H1 will generate merchant revenue in H2
- Ongoing positive effects of innovation and digitalization process in Europe
- Latam still impacted by lockdown measures in Q3
Fleet & Mobility
- Continued gradual recovery in Europe
- Latam still impacted by lockdown measures in Q3
Complementary Solutions
- Further contribution from new specific-purpose programs
- Corporate Payment still impacted in some specific verticals in North America (travel, hospitality, media)
L/L monthly operating revenue growth > 0% vs. LY at some stage in H2 2020
31
FY 2020 OUTLOOK - PROFITABILITY
Continued gradual recovery in H2 2020 combined with the €100m cost savings/avoidance plan will have a positive impact on operating leverage
FY 2020 EBITDA estimate1
between €540m and €610m
1. Based on an assumption of an average BRL/EUR exchange rate for the second half of the year equal to the closing spot rate on June 30, 2020. | 32 |
FY 2020 OUTLOOK - CASH FLOW
H2 2020
- Gradual business recovery
- Float retention time to return to normal after a longer retention time in H1 due to lockdowns
- Further negative FX impact on the float
- Capex in H2 2020 < H2 2019
- Limited M&A transactions
FY 2020 leverage
< 2.8x EBITDA
33
A DIGITAL CHAMPION WITH STRONG FUNDAMENTALS TO OVERCOME
THE CURRENT CRISIS, WELL POSITIONED FOR THE "POST-COVID" WORLD
Edenred' strong business and financial fundamentals
- A strong growth profile with a robust financial position
- A global player, operating in 46 countries, on vastly underpenetrated markets
- A tech leader, delivering relentless innovation around specific-purpose payment solutions
- 250+ solutions covering essential needs: Eat, Move, Care, Pay
- An agile organization, with local corporate entrepreneurs operating on the ground, supported by e-Quarter's scaling champions and technology experts
Seize business opportunities and pursue the product and technology investment strategy
- Front-lineron markets experiencing fast-paced digitalization: shift from paper to card, ramp-upof innovative digital features such as app-to-apppayment, contactless payment
- Leverage our platform and innovation capabilities to launch efficient specific-purpose programs
- Help corporates gain efficiency and attractiveness
- Support governments in providing efficient and targeted stimulus to the economy
- Pursue our ambitious technology and product innovation strategy and seize medium-term M&A opportunities in all business lines
The capacity to rebound quickly thanks to our resilient profile, strengthened digital leadership, the accelerated deployment of earmarked funds programs, and an ambitious product and technology investment strategy
34
APPENDICES
EDENRED: TECH FOR GOOD
A recognized commitment
36
OPERATING REVENUE
Q1 | Q2 | H1 | |||||
In € millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
Europe | 228 | 213 | 183 | 209 |
France | 70 | 69 | 41 | 59 |
Rest of Europe | 158 | 144 | 142 | 150 |
Latin America | 121 | 129 | 82 | 140 |
Rest of the world | 34 | 28 | 27 | 32 |
Operating revenue | 383 | 370 | 292 | 381 |
Q1 | Q2 | |||
In % | Reported | Like-for-like | Reported | Like-for-like |
411 | 422 |
111 | 128 |
300 | 294 |
203 | 269 |
61 | 60 |
675 | 751 |
H1 | |
Reported | Like-for-like |
Europe | +6.9% | +5.9% | -12.3% | -13.1% |
France | +2.0% | +2.0% | -31.3% | -31.3% |
Rest of Europe | +9.3% | +7.8% | -4.7% | -5.9% |
Latin America | -5.6% | +5.2% | -41.9% | -20.4% |
Rest of the world | +18.9% | +18.4% | -15.0% | -9.8% |
Operating revenue | +3.5% | +6.6% | -23.4% | -15.4% |
-2.6%-3.5%
-13.5%-13.5%
+2.1% +0.8%
-24.5%-8.1%
+1.0% +3.5%
-10.2%-4.6%
37
OTHER REVENUE
Q1 | Q2 | H1 | |||||
In € millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
Europe | 4 | 4 | 4 | 4 |
France | 2 | 2 | 1 | 1 |
Rest of Europe | 2 | 2 | 3 | 3 |
Latin America | 7 | 7 | 4 | 7 |
Rest of the world | 1 | 1 | 1 | 2 |
Other revenue | 12 | 13 | 9 | 13 |
Q1 | Q2 | |||
In % | Reported | Like-for-like | Reported | Like-for-like |
8 | 8 |
3 | 3 |
5 | 5 |
11 | 15 |
2 | 3 |
21 | 26 |
H1 | |
Reported | Like-for-like |
Europe | +2.7% | +2.4% | -15.1% | -14.2% |
France | -5.8% | -5.8% | -1.8% | -1.8% |
Rest of Europe | +9.0% | +8.5% | -22.8% | -21.4% |
Latin America | -11.3% | -3.2% | -29.3% | -7.4% |
Rest of the world | -24.0% | -20.1% | -54.6% | -48.2% |
Other revenue | -8.4% | -3.4% | -27.9% | -14.7% |
-6.5%-6.2%
-3.9%-3.9%
-8.2%-7.7%
-20.3%-5.3%
-40.1%-34.9%
-18.4%-9.2%
38
REVENUE CLASSIFICATION CHANGE IN BRAZIL - PRO FORMA FIGURES
Group Operating Revenue | Q1 | Q2 | Q3 | Q4 | FY |
Actual 2019 | 369 | 379 | 377 | 445 | 1 570 |
Pro forma 2019 | 370 | 381 | 379 | 440 | 1 570 |
Group Other Revenue | Q1 | Q2 | Q3 | Q4 | FY |
Actual 2019 | 14 | 15 | 16 | 11 | 56 |
Pro forma 2019 | 13 | 13 | 14 | 16 | 56 |
Latin America Operating Revenue | Q1 | Q2 | Q3 | Q4 | FY |
Actual 2019 | 128 | 138 | 137 | 156 | 559 |
Pro forma 2019 | 129 | 140 | 139 | 151 | 559 |
Latin America Other Revenue | Q1 | Q2 | Q3 | Q4 | FY |
Actual 2019 | 9 | 9 | 10 | 4 | 32 |
Pro forma 2019 | 7 | 7 | 8 | 9 | 32 |
39
TOTAL REVENUE
Q1 | Q2 | H1 | |||||
In € millions | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
Europe | 232 | 217 | 187 | 213 |
France | 72 | 71 | 42 | 60 |
Rest of Europe | 160 | 146 | 145 | 153 |
Latin America | 128 | 137 | 86 | 147 |
Rest of the world | 35 | 29 | 28 | 34 |
Total revenue | 395 | 383 | 301 | 394 |
Q1 | Q2 | |||
In % | Reported | Like-for-like | Reported | Like-for-like |
419 | 430 |
114 | 131 |
305 | 299 |
214 | 284 |
63 | 63 |
696 | 777 |
H1 | |
Reported | Like-for-like |
Europe | +6.9% | +5.9% | -12.4% | -13.1% |
France | +1.8% | +1.8% | -30.5% | -30.5% |
Rest of Europe | +9.3% | +7.8% | -5.1% | -6.1% |
Latin America | -5.9% | +4.7% | -41.3% | -19.7% |
Rest of the world | +16.8% | +16.5% | -17.0% | -11.7% |
Total revenue | +3.1% | +6.3% | -23.6% | -15.5% |
-2.7%-3.6%
-13.3%-13.3%
+2.0% +0.7%
-24.3%-8.0%
-1.0% +1.6%
-10.4%-4.8%
40
FROM NET PROFIT, GROUP SHARE TO FREE CASH FLOWS
In € millions | H1 2020 | H1 2019 |
Net profit attributable to owners of the parent | 100 | 146 |
Non-controlling interests | 13 | 14 |
Dividends received from equity-accounted companies | 11 | 9 |
Difference between income tax paid and income tax expense | (7) | 6 |
Non-cash income and expenses | 90 | 89 |
= Funds from operations before other income and expenses (FFO) | 207 | 264 |
Decrease (increase) in working capital | 448 | (108) |
Decrease (increase) in restricted cash | (489) | (132) |
= Net cash from (used in) operating activities | 166 | 24 |
Recurring capital expenditures | (53) | (37) |
= Free cash flows (FCF) | 113 | (13) |
41
EBITDA, OPERATING EBIT & EBIT
In € millions | H1 2020 | H1 2019 | Reported | Like-for-like | In € millions | H1 2020 | H1 2019 | Reported | Like-for-like | |||
Europe | 154 | 168 | -8.3% | -8.9% | Europe | 114 | 130 | -11.9% | -11.9% | |||
France | 28 | 42 | -33.3% | -33.3% | France | 15 | 28 | -48.4% | -48.4% | |||
Rest of Europe | 126 | 126 | -0.1% | -0.8% | Rest of Europe | 99 | 102 | -1.8% | -1.8% | |||
Latin America | 86 | 129 | -33.3% | -16.6% | Latin America | 57 | 94 | -40.0% | -23.4% | |||
Rest of the world | 11 | 18 | -40.6% | -47.0% | Rest of the world | 0 | 7 | -97.9% | -121.2% | |||
Holding and others | 4 | (5) | -170.9% | -99.0% | Holding and others | 0 | (8) | -96.9% | -47.7% | |||
Total EBITDA | 255 | 310 | -17.8% | -12.8% | Total Operating EBIT | 171 | 223 | -23.4% | -18.7% |
In € millions | H1 2020 | H1 2019 |
Europe | 122 | 138 |
France | 18 | 31 |
Rest of Europe | 104 | 107 |
Latin America | 68 | 109 |
Rest of the world | 2 | 10 |
Holding and others | 0 | (8) |
Reported Like-for-like
-11.6%-11.5%
-43.8%-43.8%
-2.1%-2.1%
-37.3%-20.9%
-79.3%-93.5%
-96.9%-47.7%
Total EBIT | 192 | 249 | -22.8% | -17.7% |
42
SUMMARIZED BALANCE SHEET
As of June 30, 2020
In € millions | June 20 | Dec 19 | June 19 | In € millions | June 20 | Dec 19 | June 19 |
Goodwill | 1,495 | 1,604 | 1,604 | Total equity | (1,207) | (1,043) | (1,338) |
Intangible assets | 661 | 706 | 606 | ||||
Property, plant & equipment | 151 | 169 | 139 | ||||
Investments in associates | 64 | 69 | 64 | Gross debt and other financial | 3,832 | 3,163 | 3,237 |
liabilities | |||||||
Other non-current assets | 188 | 169 | 144 | Provisions and deferred tax | 222 | 239 | 244 |
Float (Trade Receivables, net) | 1,758 | 2,142 | 2,158 | Funds to be redeemed (float) | 4,935 | 5,161 | 4,908 |
Working capital excl. float (assets) | 316 | 290 | 277 | Working capital excl. float (liabilities) | 1,477 | 1,366 | 1,122 |
Restricted cash | 2,295 | 1,864 | 1,574 | ||||
Cash and cash equivalents and other | 2,331 | 1,873 | 1,607 | ||||
current financial assets | |||||||
Total assets | 9,259 | 8,886 | 8,173 | Total equity and liabilities | 9,259 | 8,886 | 8,173 |
Net debt | 1,501 | 1,290 | 1,630 | Total working capital | 4,338 | 4,095 | 3,595 |
o/w float | 3,177 | 3,019 | 2,750 |
43
NET DEBT AT JUNE 30, 2020: €1,501M
Net debt variation from December 2019 to June 2020
December 31, 2019 | Currency effects | June 30, 2020 | |||
Free cash flow | Acquisitions | Shareholder return | and other non- | ||
Net debt position | Net debt position | ||||
recurring items | |||||
€(1,290)m | €(1,501)m |
€(4)m | |
€113m | €(93)m |
€(227)m
Of which:
- Paid dividends: €(66)m, of which €(6) paid to non-controlling interests
- Capital increase: €1m
Of which €(194)m currency effects
44
AVERAGE EXCHANGE RATE
Average rates | Average rates | Spot rate Spot rate |
€1 = X foreign currency | Q1 2020 | Q1 2019 | 2020 vs. 2019 | Q2 2020 | Q2 2019 | 2020 vs. 2019 | H1 2020 | H1 2019 | 2020 vs. 2019 | Q3 2019 | Q4 2019 | FY 2019 | as of | as of |
Change (in %) | Change (in %) | Change (in %) | 30.06.2020 | 30.06.2019 | ||||||||||
Brazilian real (BRL) | 4.87 | 4.28 | -12.2% | 5.96 | 4.41 | -26.1% | 5.42 | 4.34 | -19.9% | 4.41 | 4.56 | 4.41 | 6.11 | 4.35 |
Mexican Peso (MXN) | 21.83 | 21.80 | -0.1% | 25.96 | 21.50 | -17.2% | 23.89 | 21.65 | -9.4% | 21.60 | 21.32 | 21.55 | 25.95 | 21.82 |
Argentine Peso (ARS) * | 69.34 | 48.67 | -29.8% | 78.90 | 48.01 | -39.1% | 78.90 | 48.34 | -38.7% | 91.46 | 80.91 | 67.26 | 78.90 | 48.34 |
British Pound Sterling (GBP) | 0.86 | 0.87 | 1.4% | 0.89 | 0.87 | -1.6% | 0.87 | 0.87 | -0.1% | 0.90 | 0.86 | 0.88 | 0.91 | 0.90 |
Turkish Lira (TRY) | 6.72 | 6.11 | -9.1% | 7.59 | 6.60 | -13.1% | 7.16 | 6.36 | -11.2% | 6.31 | 6.42 | 6.36 | 7.68 | 6.57 |
US Dollar (USD) | 1.10 | 1.14 | 3.0% | 1.10 | 1.12 | 2.1% | 1.10 | 1.13 | 2.5% | 1.11 | 1.11 | 1.12 | 1.12 | 1.14 |
Bolivar Sovereign (VES) | 77 922 | 2 992 | -96.2% | 186 412 | 5 793 | -96.9% | 132 167 | 4 393 | -96.7% | 15 917 | 34 335 | 14 759 | 227 751 | 7 463 |
* In line with IAS 29 standard, Argentine Peso rates used are spot rates. | 45 |
2020 EXPECTED CALENDAR EFFECTS
Q1 | Q2 | Q3 | Q4 | 2020 | ||||||
Working days | Nb of | Nb of | Nb of | Nb of | Nb of | |||||
days | days | days | days | days | ||||||
Europe | 1 | -1 | 0 | 0 | 0 | |||||
Latin America | 1 | -1 | -1 | -1 | -2 | |||||
Rest of the world | 1 | 0 | 1 | 1 | 3 | |||||
TOTAL | 1 | |||||||||
-1 | 0 | 0 | 0 | |||||||
46
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Edenred SA published this content on 27 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2020 06:15:13 UTC