Présentation PowerPoint - Edenred.com

PRESENTATION FOR INVESTORS

September 2021

2

EDENRED IN A NUTSHELL

Operating revenue

-1.6%Organic vs. 2019

€1,423m

EBITDA

€580m39.6%EBITDA margin

(-1.1pts L/L vs. 2019)

Business volume

€30bn*

International leader

46 countries

Strong financial profile

11.5 Md€

Market capitalization

x2.5 vs. 2016

BBB+“Strong

Investment Grade” rating by

S&P

10,000 employees

86%digital

*like-for-like (€27bn as reported)

2020 figures

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Agenda

1. Edenred is a unique platform for good

2. Edenred is demonstrating its resilience and its capacity to rebound

3. A growth potential that remains intact in a post-Covid world

4

AN AGILE AND SCALABLE INTERMEDIATION PLATFORM ALLOWING QUICK CLIENT ONBOARDING AS WELL AS FAST DEPLOYMENT OF NEW SOLUTIONS

2020 figures

1. Like-for-like (€27bn reported).

1. B2B2C go-to-market model connecting users and merchants via companies

2. Solving inefficiencies in 4 universes: Eat, Move, Care, Pay

3. Operating in 46 countries through a specific-purpose wallet:

Enabling public and private regulation

Earmarking funds to specific merchant verticals

€30bn1

Business volume

5

MORE THAN A PAYMENT COMPANYEnabling both public and private regulations

1. France example: €192. Diesel / gasoline / other

DIGITAL MEAL VOUCHER FUEL SOLUTION ACCOUNTS PAYABLE

None

Anywhere

Anytime

Anything

Regulation

When?

Where?

What?

How much? No price cap

Public

Affiliated restaurants only

Working days only

Meal

Daily amount1

Private

Affiliated service stations only

Based on fleet manager decision

Energy definedby fleet manager2

Daily amount defined by fleet manager

Private

Corporate supplier only

Customized validity period

Specific supplier invoice

Specific supplier invoice amount

SPECIFIC-PURPOSE SOLUTIONS

UNIVERSAL PAYMENT

GENERAL PURPOSE

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250 SPECIFIC-PURPOSE PROGRAMS TO COVER ESSENTIAL NEEDSSolving inefficiencies for people at work in 4 universes

EAT CARE PAYMOVE

More than 110 meal and food programs

Fuel cards Toll, parking, VAT refund &

maintenance services Greener commuting

Gift, incentive & rewards Employee engagement

platforms Well-being & culture

Portal-based virtual cards (SAAS & API)

Supplier payments Payroll solutions

7

A UNIQUE PLATFORMEarmarking funds toward specific merchant verticals

For partner merchants

A key traffic generator

For Edenred

Monetization power

Edenred Network Edenred Network Edenred Network Supplier Set

8

EDENRED’S PURPOSE: ENRICH CONNECTIONS. FOR GOOD.

• Purchasing power & well-being

• Simplicity of usage

• No cash advances

• Attractiveness & retention

• Productivity

• Security & control

• Detailed reports & analytics

• Simple management process

FOR EMPLOYEEUSERS

FOR CORPORATE CLIENTS

• Traffic generator

• Easier payment reconciliation

• Increased visibility

• More stickiness

FOR PARTNER MERCHANTS

• Formalization of the economy/local job creation

• Reduced administrative burden

• Encourage responsible behavior (e.g. CO2 emission reduction, paperless)

• Less fraud

FOR PUBLIC AUTHORITIES

IMPROVE EMPLOYEE WELL-BEING

VITALIZE THE ECONOMY AND LOCAL EMPLOYMENT

INCREASE COMPANIES’ ATTRACTIVENESS AND

EFFICIENCY

ENHANCE THE EFFECTIVENESS & TRACEABILITY OF PUBLIC

POLICIES

9

A LONGSTANDING CSR COMMITMENT COMBINED WITH SOLUTIONS ACTING AS POWERFUL ENABLERS OF MORE RESPONSIBLE BEHAVIORS

A STRONG CSR STRATEGY SOLUTIONS POSITIVELY IMPACTING

USERS’ BEHAVIOURS

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2022 2030

DIVERSITY - % women among executive positions 25% 40%

TRAINING - % employees who took at least one course, with the

engagement of 100% employees receiving at least one CSR training by 2025

80% 85%

OUTREACH - Number of days of volunteering 1 000 days 5 000 days

EMISSIONS - % intensity reduction vs. 2013 (GHG1/m2) 26%2 52%2

SERVICES - Number of environmentally friendly services 20 1/country

SOLUTIONS - % eco-designed / recycled solutions

0 net paper as from 202135% 70%

NUTRITION AND FOOD WASTE - % food users and merchants

sensitized to nutrition and food waste50% 85%

ETHICS - % employee endorsement of Ethics Charter 100% WMEC3

DATA PROTECTION - % subsidiaries under common standard of

compliance and employees educated about personal data issues

100%Group

Binding corporate

rules and

certification

QUALITY - % subsidiaries quality-management-certified 50% 85%

1 GHG: Greenhouse gas. 2 SBTI: Science Based Targets Initiatives – based on COP21 targets 3 WMEC: World’s Most Ethical Company.

A PLATFORM FOR GOODA strong commitment to social responsibility

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A LONGSTANDING AND RECOGNIZED CSR COMMITMENT

Among industry leaders

Industry leader;

Member since 2011

“Advanced COP” status

Climate score: B

“Supply Chain” score: A-

Above industry average

Low risk

7th percentile in its industry

57/100

Top 30 percentile of its industry

59/100

Top 10 of its industry

C+ Prime

Industry leader

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IMPROVE EMPLOYEES’ HEALTH AND WELL-BEINGby securing their food budget and reducing financial barriers to healthy diets

>1.5bnmeals served

every year around the world

64% of French employees indicate that Ticket

Restaurant enhances their well-being at work

EASE ACCESS TO HEALTHIER FOOD HABITSTicket Restaurant launched more than 50 years ago, now deployed in 35+ countries

131. Source: CO2Logic

RECONCILE ENVIRONMENTALLY FRIENDLY CONSUMPTION AND PURCHASING POWER by distributing up to €250 to employees annually to purchase “green” goods and services in a specific environmentally friendly merchant network

1kg CO2

saved per

€1 spent(1)

>800,000 users

ENCOURAGE ENVIRONMENTALLY FRIENDLY CONSUMPTIONThe 10-year anniversary of Ticket EcoCheque in Belgium

14

INCENTIVIZE EMPLOYEES TO SHIFT TOWARD GREENER COMMUTINGby helping American employees to switch from private to public transportation or ride sharing, for example in New York City, Boston, San Francisco or Philadelphia

1. Estimation based on US Department of Transportation and US Environmental Protection Agency (EPA) data

500,000tCO2 avoided in

2019(1)

>330,000 users

HELP TRANSITION TOWARD SUSTAINABLE TRANSPORTATIONCommuter Benefits in the USA

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SUPPORT FLEET MANAGERS IN REDUCING THEIR CARBON FOOTPRINTby enabling companies to measure their fleet’s greenhouse gas emissions and offset them through the acquisition of certified carbon credits and reforestation projects

40 millionkilometers

offset in 2020

>55,000 trees planted

since 2018

HELP TRANSITION TOWARD SUSTAINABLE TRANSPORTATIONCarbon neutrality by LCCC in France

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Agenda




In 2020, Edenred demonstrated its resilience and its capacity to rebound quickly when the situation returns to normal

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LIMITED IMPACT OF COVID CRISIS ON FULL-YEAR 2020 OPERATING REVENUE

Like-for-like Group operating revenue change vs. 2019.

EDENRED SHOWED RESILIENCE AT THE PEAK OF THE CRISIS AND CAPACITY TO REBOUND WHEN

SITUATION RETURN TO NORMAL

Strong start to the year with double-digit operating revenue growth until mid-March

In Q2 2020, impact of lockdown measures mitigated by digital business continuity, positioning on essential needs and launch of new initiatives around earmarked funds

From June to October▪ Fast recovery in Europe, with a good pick up in commercial

activity

▪ Mixed situation in Latin America due to more gradual easing

of lockdowns

▪ Positive contribution from Covid-19 specific-purpose

programs

In the later part of the year▪ Continued growth in Europe despite 2nd wave of lockdowns

▪ Improvement of the situation in Latin America

+6,6%

-15,4%

+0,9% +1,2%

Q1 Q2 Q3 Q4

GROUP OPERATING REVENUE

€1,423M, -1.6% L/L vs. 2019

H1 20: -4.6% H2 20: +1.1%

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OPERATIONAL DISCIPLINE TO OVERCOME THE COVID CRISIS IN 2020

Community

Fast switch to remote working: close to 100% of Edenred employees at the peak

A limited number of confirmed cases: c.5% of total group manpower in 2020

Support to our employees and ecosystem through the 70 local initiatives of the More than Ever relief plan

Digitalization driving business continuity

Further adoption of digital sales channels, i.e. screen-to-screen meetings, websales, telesales

Promoting specific-purpose money as a key lever to relaunch the local economy (e.g. daily spending cap increased to €38 in France, tax-exempt amount for gift cards doubled in France and Italy)

New programs, including emergency Covid-specific ones leveraging Edenred’s platform

Technology and product innovation to improve UX (e.g. contactless payment) and cater to new macro trends and working routines

Customers

€100m+ cost avoidance plan achieved while pursuing investments in key areas (i.e. innovation, IT security, compliance)

+6% in Capex vs. 2019

Focus on credit management mainly in Fleet & Mobility

Costs&Cash

CSR Reinforced positioning as an enabler of socially and environmentally responsible behaviors

A strong commitment through the People/Planet/Progress CSR roadmap

H1 2021 operating revenue bounced back to 10% higher than pre-Covid level

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STRONG DOUBLE-DIGIT ORGANIC GROWTH IN H1 2021

Much more than catching up, Edenred has been able to capitalize on its fundamentals to grow significantly despite a changing environment:

Encouraging start to the year despite new restrictions in major

countries until May

Accelerated recovery since May:

▪ Reopening in Europe in June, consumption accelerating at

the back-end of the quarter

▪ Changing and still distressed situation in Latin America (e.g.,

urban mobility and consumption still below pre-Covid levels,

restaurants partly closed)

In Q2, favorable comparison basis vs. 2020

+6,6%

-15,4%

+0,9% +1,2% +3,6%

+30,6%

Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

H1 20: -4.6% H1 21: +15.3%H2 20: +1.1%

L/L YoY operating revenue change

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DOUBLE-DIGIT L/L OPERATING REVENUE GROWTH VS. 2019 EXCEPT IN LATIN AMERICA WHERE THE HEALTH SITUATION REMAINS CHALLENGING

Like-for-like operating revenue growth% of H1 2021 Group operating revenue

64%

EUROPE

28%

8%

REST OF THE WORLD

+13.9% vs. H1 2019+11.2% vs. H1 2019

LATIN AMERICA

+10.3% vs. H1 2020+15.1% vs. H1 2020

+6.0% vs. H1 2019

+17.2% vs. H1 2020

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DOUBLE-DIGIT L/L GROWTH VS. 2019 IN FLEET & MOBILITY AND COMPLEMENTARY SOLUTIONS; ONGOING RECOVERY IN EMPLOYEE BENEFITS

EMPLOYEEBENEFITS

FLEET & MOBILITY SOLUTIONS

COMPLEMENTARYSOLUTIONS

% OF H1 2021 GROUP OPERATING REVENUE

Corporate Payment Services

Incentive& Rewards

Public Social Programs

+13.4% +20.1% +14.8%H1 2021 LIKE-FOR-LIKE

OPERATING REVENUE GROWTH vs. H1 2020

26% 13%61%

+3.3% +17.3% +26.7%H1 2021 LIKE-FOR-LIKE

OPERATING REVENUE GROWTH vs. H1 2019

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CLOSE TO 10% L/L OPERATING REVENUE GROWTH VS. 2019, DRIVING EBITDA MARGIN GRADUALLY BACK TO PRE-COVID LEVEL

H1 19 H1 20 H1 21

H1 2021 OPERATING REVENUE: €736M

+9.6% L/L vs. H1 201939,9%

36,7%

39,0%

H1 19 H1 20 H1 21

H1 2021 EBITDA MARGIN: 39.0%

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H1 2021 H1 2020 L/L change

Operating revenue 736 675 +15.3% +9.2%

Other revenue (A) 21 21 +10.4% -3.5%

Total revenue 757 696 +15.2% +8.8%

Operating expenses (462) (441) +11.8% +4.9%

EBITDA 295 255 +20.9% +15.6%

EBITDA margin 39.0% 36.7% +183 bps +230 bps

Operating EBIT (B) 211 171 +27.8% +23.5%

Operating EBIT margin 28.6% 25.3% +273 bps +332 bps

EBIT (C)=(A)+(B) 232 192 +25.8% +20.5%

EBIT margin 30.6% 27.6% +256 bps +297 bps

Reported changeIn € millions

Edenred operating leverage

Revenue grew 15% L/L, driven by sales performance and the gradual recovery

Costs increased 12% L/L, mostly due to payroll and other expenses

EBITDA UP 20.9% L/L, INCREASING L/L MARGIN BY 183 BPS

H1 2021 EBITDA

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€133M, UP 32.9%

H1 2021 H1 2020 Reported change

EBITDA 295 255 +15.6%

D&A excluding PPA (46) (43)

PPA (17) (20)

EBIT 232 192 +20.5%

Share of net profit from equity-accounted companies 4 6

Other income and expenses (7) (13)

Operating profit including share of net profit from equity accounted companies

229 185

Net financial expense (9) (15)

Income tax expense (73) (57)

Net profit attributable to non-controlling interests (14) (13)

Net profit, Group share 133 100 +32.9%

In € millions

H1 2021 net profit

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1. H1 2020 float increase was atypical, explained by the accumulation of funds by users during the strict lockdown in Q2 2020. H1 2019 outflow was €(256)m.

2. Including French ADLC fine of €157m, increase in WCR stood at €226m and free cash flow at €(225)m in H1 2021.

STRONG FFO GENERATION IN LINE WITH SOLID EBITDA GROWTH

H1 2021 H1 2020

EBITDA 295 255

Funds from operations (FFO) 254 207

Increase/(Decrease) in cash linked to changes in float1 (189) 313

Decrease/(Increase) in WCR, excl. float2 (69) 135

(Increase) in restricted cash (18) (489)

Recurring capex (46) (53)

Free cash flow (FCF)2 (68) 113

In € millions

Strong double-digit L/L FFO growth related to EBITDA growth and high level of conversion

Working capital and float changes in H1 2021 show:

▪ A return to a normal free cash flow pattern

▪ The gradual use of prepaid funds accumulated in 2020

EBITDA to FCF

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€459m

€(34)m

€(93)m

€(280)m

DECREASING NET DEBT DRIVEN BY LTM STRONG CASH GENERATION

€(1,501)m €(1,449)m

June 30, 2020Net debt position

Free cash flow Acquisitions Shareholder returnCurrency effects and other non-recurring items

June 30, 2021Net debt position

Of which:

• Paid dividends: €(83)m, of which €(23)m paid

to non-controlling interests

• Purchase of treasury shares: €(12)m

Of which €(157)m of

ADLC fine

Net debt as of June 30, 2021: €(1,449)m

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Agenda




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TRANSFORMATIONINNOVATIONSCALE

DISCIPLINED BUSINESS EXECUTION TO FULLY CAPTURE EDENRED’S GROWTH POTENTIAL

Customer centricity

Employeeengagement

CSR

Products

Technology

Brilliant basics

Market penetration

S I T

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CAPTURING THE FULL POTENTIAL FROM OUR CUSTOMER BASE AND PRODUCT PORTFOLIO

Delivering high-quality service

Upselling and cross-selling

Unlocking the full potential of maximum face-value increase, e.g., Italy, Romania, Austria, Bulgaria, Turkey

Leveraging new products to cross-sell and increase client stickiness – e.g., “Beyond Fuel”

S I T

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LEVERAGING OUR DIGITAL LEADERSHIP AND AGILITY TO FURTHER GROW IN ALL SEGMENTS

Most Edenred markets are still

less than 25% penetrated

Penetration to increase as

companies upgrade their

processes:

▪ Shift to virtual canteen

▪ Flexible benefits platforms

▪ Centralized digital fleet management

▪ Automated B2B payments

New digital way of selling to

mid-size and large accounts

via screen-to-screen meetings

Increased productivity with

more meetings number per

week

Easier, faster and more

efficient client onboarding

<10% penetrated in most of

Edenred’s markets

Telesales and websales

investments to capture this

opportunity with appropriate

acquisition costs

Leveraging external

distribution channels – e.g.,

ramp-up of Itaù partnership in

Brazil

New SME contracts back to

2019 level

FURTHER MARKET PENETRATION EMPOWERED

BY DIGITALIZATION

PERFORMANCE BOOSTED BY DIGITAL SALES

CHANNEL ADOPTION

SME OPPORTUNITY REMAINS SIGNIFICANT

S I T

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LEVERAGING FULL DIGITALIZATION TO OFFER A SEAMLESS EXPERIENCE

S I T

Online sales, ordering and onboarding

Fully digital registration, ordering and signing processes

Plasticless format

0% paper, 0% plastic, all on your mobile

Flexible & comprehensive offer

>1m restaurants

>100 global and local meal delivery partners

Seamless payment

In-app payment for meal delivery

NFC and mobile payment

24/7 self-customer care

MyEdenred mobile app

24/7 AI chatbot

image image image image image

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BRINGING CANTEEN UP TO 2.0

Source: GMV study, 2019.

Physical canteen

HoursFood

choiceLocation Accessibility Costs

fixed limited on-siteon-site at the

canteenmostly fixed

ANYTIME ANYTHING ANYWHERE ANYHOW FLEXIBLE

HIGHER COST EFFICIENCY

HIGHER USER SATISFACTION

Up to 20% savingsvs. canteen

Adapted to new workingroutines

3x more "highly satisfied" vs. canteen

~20% more « satisfied and « highly satisfied » vs. canteen

S I T

An appealing choice for both employees and employers

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ANYWHERE

1. 2020 FOOD Barometer Survey.

Coworking space

72% of employees ordered food at least once through

one of these 2 channels during the pandemic1

Home officeOffice 1 million restaurants and food stores Hundreds of partners creating

new experiences at lunch time

Dine-in Click-&-collect Meal delivery

platforms

Your lunch break

when you need it

ANYTHING

ANYTIMEANYHOW

S I T

The most comprehensive and flexible food offer with Ticket RestaurantBRINGING CANTEEN UP TO 2.0

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Short-term wins during the pandemic

To replace closed on-site cafeterias

To maintain meal benefits when employees are mostly working from home

Larger, longer-term opportunity to be seized with the

definitive shift to virtual canteen

CANTEEN 2.0 OFFERING NEW COMMERCIAL OPPORTUNITIES

Partnering with the leading owner

of office space in Europe, to

integrate the seamless and digital

Ticket Restaurant experience in its

offer towards its 100,000 customers

S I T

Covid health restrictions accelerating the shift to virtual canteen

More than 250 contracts signed in

the last twelve months with clients

formerly using 100% physical

canteens

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Bringing differentiation and cross-selling opportunities

UTA One – the most comprehensive electronic toll solution in Europe

Supported in 13 countries

5 new countries in 2021: Norway, Sweden, Denmark, Switzerland, and Hungary

Integrating EBV Finance

VAT and excise duty refund services

Working with 31 European countries

VALUE-ADDED SERVICES FOR TRANSPORTATION COMPANIES ACROSS EUROPE

Key pain points for fleet managers Difficult finding reliable repair shops

Lack of price reference

Lack of technical know-how

Inefficient and manual processes

Seamless experience throughout process Leveraging technology to integrate and automate

complex workflow

A qualified affiliated merchant network in Brazil

Ongoing roll-out in Hispanic Latin America

FACILITATING MAINTENANCE MANAGEMENT IN LATIN AMERICA

Lowering Group revenue sensitivity to fuel price by ~20% in 2020

FOSTERING “BEYOND FUEL” STRATEGY S I T

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“BEYOND FUEL” TO ENHANCE FLEET & MOBILITY VALUE PROPOSITION

Integrating value-added services to become the

one-stop shop for fleet managers and drivers

Go-live of Edenred GoHub platform for fleet managers in Brazil, where they can connect and access all their services related to fleet management

Securing and facilitating payment:

▪ Launch of a dual tag to pay fuel and tolls in Mexico

Ramp-up of CO2 offset programs in Latin America, e.g., adopted by 20% of the client base in Mexico

S I T

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SCALING CSI THROUGH A WIDE PAYMENT AND SERVICE ECOSYSTEM

A strong value proposition

A digital automation platform to save time and costs:

▪ 50% of companies still paying with paper checks

▪ AP staff spending 84% of their time on processing transactions

Cloud-based platform – available 24/7, including when working from home

Integrated with strong partners, e.g.:

Dual virtual card issuer

Providing fully embedded, integrated payables solution

Indirect distribution and commercial partnerships with US banks

Revenue back to 2019 level with new sales offsetting still

depressed client volume in Hotels and Media industries

S I T

40

DEVELOPING INNOVATIVE SOLUTIONS FITTING NEW WORKING TRENDS

A digital account (up to €550) combined with an

e-commerce platform (>4k office equipment/ consumables references)

An easy and efficient way for HR to engage employees and ensure convenient working conditions at home

First client

S I T

Greener and more flexible commuting solutions

From company cars to public transportation to a flexible and comprehensive offer including micromobility:

An offer adopted by the leading global e-commerce company and other clients in the USA:

Supporting the shift to new ways of working

41

LEVERAGING EDENRED’S DIGITAL PLATFORM TO IMPLEMENT INNOVATIVE SPECIFIC-PURPOSE PROGRAMS (1/2)

Digital food aid card for elderly people

in Romania

100% digital solution to provide elderly people in need with a purchasing power supplement for food

~150,000 beneficiaries, with an average age of 83

Easy to use with an activation rate above 80%

Acceptance network focused on local shops to promote the local economy

S I T

42

LEVERAGING EDENRED’S DIGITAL PLATFORM TO IMPLEMENT INNOVATIVE SPECIFIC-PURPOSE PROGRAMS (2/2)

Benefit Xpress 2.0

Covid-19 Survival Pack in Taiwan

To take care of employees working from home in an efficient, safe manner amid the Covid-19 pandemic

Contactless, multi-brand digital benefit to buy all essentials – with a dedicated online network (e.g., Momo, Foodpanda, Carrefour, 7-eleven, Books.com)

A dedicated online sales portal on top of traditional tele- and field-sales

>35k users among our clients

S I T

43

FURTHER INTEGRATING SUSTAINABLE DEVELOPMENT INTO EDENRED’SPERFORMANCE

Edenred’s purpose:

“Enrich Connections. For Good.”

Sustainable development integrated in the managers’

long-term incentive plan through 3 commitments:

: 40% women among executive position by 2030

: -52% greenhouse gas emissions by 2030 vs. 2013

: 85% of merchants & users sensitized to sustainable food by 2030

New sustainability-linked financing instrument

€400m convertible bonds, negative yield to maturity -0.12%

3 sustainability criteria to be achieved by 2025 (in line with People, Planet, Progress Ideal policy)

S I T

A capital allocation policy supported by a robust financial position

45

A ROBUST FINANCIAL POSITION

1. Includes cash, cash equivalents and other current financial assets

High level of liquidity and solid balance sheet Strong Investment Grade rating

Standard & Poor’s reaffirmed BBB+ rating, Outlook stable, in May 2021

No major reimbursements before 2024

First sustainability-linked 7-year convertible bond of about €400m issued with a 37.5% premium, -0.12% yield and no interest

€4.9bn cash1 and restricted funds on balance sheet

Over €1.5bn financing options: Undrawn revolving credit facility of €750m

Commercial paper authorization of €1bn (of which €100m was used as of end June 2021)

No financial covenants

104233 37

500 500 500 500 400600

750

2021 2022 20242023 2025 2026 2027

Schuldschein loan

Convertible bonds

Bonds

20292028

NEW

Neu CP

Undrawn committed

revolving credit facility

FUTURE GROWTH SUPPORTED BY INVESTMENT IN TECHNOLOGY

1. Excluding M&A

€250 -€300mTECHNOLOGY INVESTMENTS

Technology capex Technology opex

Applications(Front, Middle & Back)

Infrastructure& Network

Security,Compliance

& Support

35% 35% 20% 10%

15-20% of Edenred’s opex80-90% of Edenred’s

recurring capex1

% of annual technology costs

47

3 MAIN BUSINESS LINES

Recurring revenue

Promising and significant long-term growthin underpenetrated markets

Scalable

High cash conversion

EBIT accretive from year 1

Valuation in line with industry multiples

KEY CRITERIA

KEY CRITERIA FOR M&A DEAL SELECTIONAlignment with the Group’s overall strategy and stringent financial discipline

EMPLOYEEBENEFITS

FLEET & MOBILITY SOLUTIONS

CORPORATE PAYMENT SERVICES

Bolt-on acquisitions to consolidate Edenred’sleadership

Build-up acquisitionsto strengthen Edenred’sposition as a global multiservice player

Expansion of Edenred’sexpertise in new verticals

48

2020 DIVIDEND

0.62

0.85 0,86 0,70 0.75

2016 2017 2018 2019 2020

€0.75 per share+7.1% vs. 2019

A dividend consistent with the Group profile and performance

Growth profile company

Solid balance sheet and strong cash generation

Ambition to quickly return to pre-Covid level and apply a progressive dividend policy

4 trends accelerated by the crisis and positioning Edenred well for the “post-Covid” world

50

TREND #1: IN A MORE CONNECTED, DIGITAL & CONTACTLESS WORLD

EDENRED KEEPS ON STRENGTHENING ITS DIGITAL LEADERSHIP WITH CONTINUOUS INNOVATION

Trends accelerated by the crisis bringing new opportunities

Plasticless programs, the next level of product digitalization in France, Finland and Spain

▪ No plastic, no paper, no delivery

▪ Issued in 24h, can be used directly via API/Mobile payment

▪ Perfectly suited to home-working

▪ No risk of loss or theft, always accessible through MyEdenred

Benefit Xpress: accelerating employee benefits distribution in Taiwan

▪ A digital voucher solution designed to simplify the Employee Welfare Committee’s work

▪ Efficiency for HR admin.: from a 45-day manual process to 1-day digital distribution

▪ Flexibility for the users to choose the benefits they want

of global web traffic comes from mobile devices>50%

51

TREND #2: IN A MORE REMOTE WORKING WORLD

1. Morgan Stanley research, 2020.

2. Harvard Business Review July 30, 2020.

EDENRED IS DEVELOPING NEW AND INNOVATIVE SOLUTIONS


From physical canteens to virtual ones

Growing need to preserve link with employees

New mobility solutions to increase workers’ flexibility

Potential new solutions for remote workers

employees who have been working from home in the main European market would like to do it more in future1

of managers skeptical on maintaining remote workers’ motivation241%

>60%

52

TREND #3: IN A WORLD SEEKING MORE RESPONSIBLE BEHAVIOR

EDENRED IS PLATFORM FOR GOOD


Encourage environmentally friendly consumption

▪ With Ticket Ecochèque in Belgium, increasing employees’ purchasing power dedicated to “green” goods and services

Embracing new mobility trends

▪ Including micromobility players and self-service bikes in new mobility employee benefits (e.g. New York Citi bikes, Lime scooters)

Fighting against food waste

▪ Promoting restaurants and solutions helping to reduce food waste: Anti-gaspi label in France, Too good to go partnership

of consumers expect strong CSR commitment from brands90%

53

TREND #4: IN A WORLD SEEKING MORE EFFICIENT & SECURE PAYMENTS

EDENRED IS DIGITALIZINGB2B PAYMENTS


Increased attractiveness for CSI full accounts payable (AP) cloud-based platform:

▪ One platform for all your AP

▪ Accessible everywhere (incl. when working from home)

▪ Time and cost savings by eliminating checks

▪ Accuracy, efficiency, control and security

▪ Easier payment reconciliation

Strong commercial dynamic, leveraging both direct and indirect sales channels thanks to new partnerships (e.g. Sage, Citi bank)

Targeting new verticals (e.g. utilities, real estate) and mitigating volume decreases in the existing portfolio

of accounts payable in North America still

paid by paper checks~50%

Edenred will continue to leverage its platform to generate sustainable and profitable growth in 2021

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Dealingwith:

>850,000 B2B customers

and their >50memployees

Managinga multi-local portfolio:

250+ programs

in 46+ countries

and 4 product lines

HIGHLY FRAGMENTED B2B CUSTOMER BASE

HIGH LEVEL OF USE-CASE COMPLEXITY

Orchestratinga platform at scale:

>50m users

and 2m merchants

LARGE NETWORKEFFECT

Managingfor 50+ years:

€30bn in 2020on behalf of employees,

companies and partner merchants

A TRUSTBUSINESS

A SUSTAINABLE BUSINESS MODEL WITH HIGH BARRIERS TO ENTRYMuch more than a payment company

2020 figures

56

EDENRED TO GROW SIGNIFICANTLY IN 2021 VS. 2019, DESPITE A CHANGINGENVIRONMENT WITH POTENTIAL NEW RESTRICTIONS

Potential tailwinds

Inflation is expected to increase

Rising short-term interest rates

Potential headwinds

If GDP growth drops below pre-Covidlevel after 2021 catch-up

If unemployment stays above pre-crisis level

Evolving macro environment with both tailwinds and headwinds

Still uncertainties regarding the health crisis

Recently announced restrictions related to new variants all around the world

Therefore, the exit timing of the health crisis remains uncertain

Strong business trend leading to significant outperformance vs. 2019

Double-digit operating revenue growth in H1 2021 vs. H1 2019

Still some recovery potential in France and Latin America, where Employee Benefits were or are still impacted by Covid-related restrictions

57

EDENRED WILL CONTINUE TO LEVERAGE ITS PLATFORM TO GENERATE SUSTAINABLE AND PROFITABLE GROWTH IN 2021

1. Based on the assumption of an average BRL/EUR exchange rate for 2021 equal to 6.35.

i.e., a minimum 2021 EBITDA L/L growth of +9%

FY 2021 EBITDA guidance1

between €620m and €670m vs. €580m reported in 2020

Contacts

To have more information about the company:

Cédric Appert - Financial Communication & Investor Relations Director

[email protected]

Loïc Da Silva - Investor Relations

[email protected]

To schedule a meeting:

Martine Gadby - IR Financial Marketing

[email protected]

mailto:[email protected]



Présentation PowerPoint - Edenred.com

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