2019 ANNUAL RESULTS

February 26, 2020

EXECUTIVE SUMMARY

Edenred, the everyday companion for people at work

  • A unique platform of services and payment benefiting all stakeholders, to generate sustainable and profitable growth

2019: a successful start to Next Frontier strategic plan (2019-2022)

  • Scale:Increased penetration, especially among SMEs, Employee Benefits take-up rate up 32 bps
  • Innovation:App-to-app payment API available in 4 new countries, live with more than 40 partners
  • M&A:Several acquisitions enhancing Scale and Innovation in all business lines (e.g. CSI, TRFC, Easy Welfare)
  • Transformation:New action plan around Edenred's employee engagement, corporate and social responsibility and customer centricity

Next Frontier annual medium-term financial targets met in 2019

  • 14% L/L operating revenue growth(vs an annual objective >8%) withdouble-digit growth in all business lines and all regions
  • 14% L/L EBITDA growth(vs an annual objective >10%), leading to an EBITDAof €668m, up 25%as reported
  • 65% FCF/EBITDA conversion rate1(vs an annual objective >65%)

2019, another record year

  • Total revenue: €1,626m, up18%
  • EBIT: €545m, up 18%,in line with 2019 EBIT guidance of between €520m and €550m
  • Net profit, Group share: €312m, up 23%
  • A record high proposed dividend: 0.87€2per share
  • Funds from operations: €524m, up 31%
  • Leverage ratio :1.9x (Strong Investment grade),leaving room for further acquisitions

Edenred expects sustained growth in all business lines and all geographies this year

and confirms annual medium-term targets for 2020

1. At constant regulations and methodologies

2

2. To be proposed at the Shareholders Meeting of May 7, 2020

Agenda

  1. Entering a New Phase of Growth
  2. Q4 & FY 2019 Financial Results
  3. 2020 Outlook & Conclusion

3

Theeveryday companion for

people at work

8

EDENRED PLATFORM

Services and payment platform for people at work

9

A UNIQUE PLATFORM

B2B2C go-to-market model

10

A UNIQUE PLATFORM

Solving inefficiencies for people at work in 4 universes

11

A UNIQUE PLATFORM

Enabling both public and private regulations

GENERAL PURPOSE

UNIVERSAL PAYMENT

Regulation None

Where?Anywhere

When?Anytime

What?Anything

How much?No price cap

SPECIFIC-PURPOSE SOLUTIONS

DIGITAL MEAL VOUCHER

FUEL SOLUTION

ACCOUNTS PAYABLE

Public

Private

Private

Affiliated restaurants

Affiliated service

Corporate supplier

only

stations only

only

Working days only

Based on fleet

Customized validity

manager decision

period

Meal

Energy defined

Specific supplier

by fleet manager2

invoice

Daily amount

Specific supplier

Daily amount1

defined by fleet

invoice amount

manager

1. France example: €19

12

2. Diesel / gasoline / other

A UNIQUE PLATFORM

Earmarking funds toward specific merchant verticals

For partner merchants

  • A key traffic generator

Edenred Network

Edenred Network

Edenred Network

Supplier Set

For Edenred

  • Monetization power

13

14

EDENRED'S PROFITABLE BUSINESS MODEL

Edenred business model

B2B2C

SPECIFIC-PURPOSE WALLET

Acquisition

Profitable platform

ActivationMonetization

Retention

15

A SUSTAINABLE BUSINESS MODEL WITH HIGH BARRIERS TO ENTRY

Much more than a payment company

HIGHLY FRAGMENTED

HIGH LEVEL OF USE-

LARGE NETWORK

A TRUST

B2B CUSTOMER BASE

CASE COMPLEXITY

EFFECT

BUSINESS

Dealing

with:

>850,000 B2B

customers

and their 50m

employees

Managing

Orchestrating

Managing

a multi-local portfolio:

a platform at scale:

for 50+ years:

250+programs

50musers

€31bnin 2019

on behalf of

in 46+countries

and 2mmerchants

employees,

companies and

and 4product lines

partner merchants

2019 figures

16

17

EDENRED: TECH FOR GOOD

FOR EMPLOYEE

FOR CORPORATE

FOR PARTNER

USERS

CLIENTS

MERCHANTS

•

Purchasing power & well-

•

Attractiveness & retention

•

Traffic generator

being

•

Productivity

•

Easier payment

•

Simplicity of usage

reconciliation

•

No cash advances

•

Security & control

•

Increased visibility

•Detailed reports & analytics

•

More stickiness

•

Simple management process

FOR PUBLIC

AUTHORITIES

  • Formalization of the economy/local job creation
  • Reduced administrative burden
  • Encourage responsible

behavior(e.g. CO2emission reduction, paperless)

  • Less fraud

IMPROVE EMPLOYEE

INCREASE COMPANIES'

VITALIZE THE ECONOMY

ENHANCE THE EFFECTIVENESS

ATTRACTIVENESS AND

& TRACEABILITY OF PUBLIC

WELL-BEING

AND LOCAL EMPLOYMENT

EFFICIENCY

POLICIES

18

EASE ACCESS TO HEALTHIER FOOD HABITS

Ticket Restaurant launched more than 50 years ago, now deployed in 35+countries

IMPROVEEMPLOYEES' HEALTH

AND WELL-BEING

bysecuring their food budget and reducing financial

barriers tohealthy diets

>1.5bn 64%

meals served

every year around

the world

ofFrench employees

indicate that Ticket

Restaurantenhances their

well-being at work

19

ENCOURAGE ENVIRONMENTALLY FRIENDLY CONSUMPTION

The 10-year anniversary of Ticket Ecochèque in Belgium

RECONCILEENVIRONMENTALLY

FRIENDLY CONSUMPTION AND

PURCHASING POWER

by distributing up to €250 to employees annually to purchase"green" goods and services in aspecific environmentally friendly merchant network

>800,000

1kg CO2

users

saved per 1€

spent(1)

1. Source: CO2Logic

20

HELP TRANSITION TOWARD SUSTAINABLE TRANSPORTATION (1/2)

Commuter Benefits in the USA

INCENTIVIZE EMPLOYEES TO

SHIFT TOWARD GREENER

COMMUTING

by helping American employees to switch from private to public transportation or ride sharing, for example in New-York City, Boston, San Francisco or Philadelphia

>330,000

500,000t

users

CO2avoided in

2019(1)

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

21

HELP TRANSITION TOWARD SUSTAINABLE TRANSPORTATION (2/2)

Carbon neutrality by LCCC in France

SUPPORT FLEET MANAGERS IN

REDUCING THEIR CARBON

FOOTPRINT

by enabling companies to measure their fleet's

greenhouse gas emissions and offset them through the

acquisition of certified carbon credits andreforestation projects

>55,000

>9million

trees planted

kilometers

since 2018

offset in 2019

22

INCREASE THE EFFECTIVENESS OF PUBLIC SUBSIDIES

Edenred platform earmarks funds managed by Action Logement in France

Action Logementis in charge of managing the subsidies for access to housing in France, with positive impact on job creations

Intermediation platform between eligible

users and eligible merchants, ensuring

compliance with public regulation

Need traceability of

(who? what? when? where? how much?)

+

public subsidies

Payment processing

User-friendly interface to check the eligibility, go through KYC, follow the process

Manage earmarked funds related to3 specific-purpose subsidies

  1. €1.000to moveif you live more than 30km from your employer
  2. Up to €5.000 torefurbish your bathroomif you are retired
  3. Up to €20.000 toimprove the energy performance of your home

Create the network of eligible merchants Collect payment data (i.e. IBAN, Merchant ID)

23

SOLID DRIVERS TO BOOST GROWTH

ESTIMATED SHARE OF 2019-2022 OPERATING REVENUE L/L GROWTH

#1.SCALE

#2.INNOVATION

Business Excellence

M&A

Product

Technology Adjacencies

Penetration

  • Field Sales Efficiency
  • SMEs

Base Maximization

  • Revenue retention
  • Monetization
  • Efficiency

45%

40%

15%

#3.TRANSFORMATION

Corporate & Social Responsibility

Customer Centricity

Employee Engagement

26

NEXT FRONTIER MEDIUM-TERM ANNUAL TARGETS (2019-2022)

Committing to higher targets

Sustainable top-line growth

+

Profitable growth

+

Highly cash-generative model

L/L ANNUAL OPERATING REVENUE GROWTH

>+8%

L/L ANNUAL EBITDA GROWTH

>+10%

ANNUAL FCF/EBITDA CONVERSION RATE*

>65%

* At constant regulations and methodologies

27

MEDIUM-TERM & LONG-TERM CSR TARGETS

A strong corporate commitment to social responsibility

2022

2030

TRAINING-% employees who took at least one course

80%

85%

DIVERSITY-% women among executive positions

25%

40%

OUTREACH-Number of days of volunteering

1,000

5,000

NUTRITION-% food users and merchants educated

50%

85%

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

26%(SBTI2)

52%(SBTI2)

SERVICES- Number of environmentally friendly services

20

1 /country

SOLUTIONS- % eco-designed / recycled solutions

35%

70%

ETHICS- % employee endorsement of Ethics Charter

100%

WMEC3

DATA PROTECTION- % subsidiaries under common standard of compliance

100%

Binding corporate

rules and

and employees educated about personal data issues

Group

certification

QUALITY- % subsidiaries quality-management-certified

50%

85%

1. GHG: Green house gas

28

2. SBTI: Science Based Targets Initiatives - based on COP21 targets

3. WMEC: World's Most Ethical Company

2019: ANOTHER RECORD YEAR

NET PROFIT,

TOTAL REVENUE

EBITDA

EBIT

GROUP SHARE

1,626

668

545

312

1,320

1,378

536

429

461

241

254

502

1,139

427

370

180

2016

2017

2018

2019

2016

2017

2018

2019

2016

2017

2018

2019

2016

2017

2018

2019

30

NEXT FRONTIER MEDIUM-TERM ANNUAL TARGETS IN 2019

FY 2019

L/L ANNUAL OPERATING REVENUE GROWTH >+8%

+14%

L/L ANNUAL EBITDA GROWTH

>+10%

+14%

ANNUAL FCF/EBITDA CONVERSION RATE*

>65%

65%

* At constant float classification and methodology

31

2019 OPERATING REVENUE BREAKDOWN (1/2)

REST OF THE WORLDEUROPE

8%

+70.9%

56%

+16.9%

+19.3%L/L

+13.0%L/L

LATIN AMERICA

36%+12.5%

+14.4%L/L1

1. Excluding Venezuela

% of FY 2019 Group operating revenue

32

2019 OPERATING REVENUE BREAKDOWN (2/2)

EMPLOYEE

FLEET & MOBILITY

COMPLEMENTARY

BENEFITS

SOLUTIONS

SOLUTIONS

Corporate

Payment Services

% OF FY 2019 GROUP

62%

26%

12%

Incentive

OPERATING REVENUE

& Rewards

Public Social

Programs

vs. 65%

vs. 25%

vs. 10%

in 2018

in 2018

in 2018

FY 2019 OPERATING REVENUE GROWTH

REPORTED

+14.1%

+21.8%

+35.6%

LIKE-FOR-LIKE1

+13.0%

+15.8%

+14.9%

2019 operating revenue: €1,570m, up 18.3% (+13.9% L/L)

1. Excluding Venezuela

33

2019 KEY ACHIEVEMENTS

#1.SCALE

#2.INNOVATION

#3.TRANSFORMATION

Business Excellence

M&A

Product

Technology

Adjacencies

CSR

Employee Engagement

Customer Centricity

2019 KEY ACHIEVEMENTS

  • ~+20% new SMEcontracts
  • Employee Benefitstake-uprateup 32bps
  • 9 acquisitionssigned or closed (o.w. CSI, TRFC)
  • 25 millionmobile payment transactions
  • Payment API live in 4 new countries
  • App Container livein 4 countries
  • 54 certifications & recognitionsrelated to our commitment to corporate social responsibility
  • Global Employee Engagement surveyevery 2 years
  • Set-upof aglobal Net Promoter Score program

34

Business Excellence

2019 UPDATE ON EMPLOYEE BENEFITS REGULATION

CONTINUED POSITIVE TREND LED BY NEW PRODUCTS

AND FACE-VALUE INCREASES

Effect on business volume

+

−

2019 key achievements

  • Products
    • Holiday voucher (Slovakia)
    • Ticket Mobilité (France)
  • Maximumface-value increase
    • Spain
    • Belgium
    • Implemented in 2020:
      • Italy
      • Czech Republic
      • Romania

35

Innovation - Product: PAYMENT APIs

LIVE WITH 40 PARTNERS, 4 NEW COUNTRIES OPENED IN 2019

Since April

Since March

Since April

Since Sept.

Since Nov.

+6 to 10 new

countries

  • >30 partners including:

TO BE

LIVE

2018

2019

DELIVERED

IN 2020

36

Innovation - Technology

TECHNOLOGY TO ENABLE A BUSINESS WHERE RELIABILITY IS KEY

SERVICE LEVEL

DISASTER

CLOUD

AGREEMENT

RECOVERY

SECURITY

100% cloud-based by

24/7 "Follow the Sun"

Next level protect

Doubled security

2022

monitoring

and restore operations

and compliance team

Scalability

Best-in-class tools:

Security operations

Redundancy

▪

SolarWind

center

▪

AppDynamics

Security and privacy

by design

37

M&A to fuel scale and innovation

2019 ACQUISITIONS IN EDENRED'S 3 BUSINESS LINES

BUILD A LEADING POSITION

BUILD UP OPERATIONS IN

EXPAND EDENRED'S

IN EMPLOYEE ENGAGEMENT

FLEET & MOBILITY

FOOTPRINT IN CORPORATE

PLATFORMS

SOLUTIONS

PAYMENT

(1)

€782m>€60m

spent in 2019 additional EBITDA in 2020E

1. Signed in H2 2019, closed in February 2020

38

Innovation - Adjacencies

CSI: FRUITFUL INTEGRATION AND SUSTAINED RAMP-UP OF NEW CLIENTS AND INITIATIVES

A SUCCESSFUL YEAR

  • Significant client winsinexisting (e.g media) andnew verticals (e.g. utilities), with goodramp-upin H2 2019
  • Partnershipsandcollaborations with 10 banks, including newly signedtop US-wide institutions
  • Promisingramp-up of CSI Travelsolution

•Successful integration in Edenred Group

•Sales team's reinforcement

FY 2019 figures

+34% card spend

+18%(1)revenue

1. CSI 2019 revenue, excluding the loss of one large account at the time of CSI acquisition

39

Agenda

  1. Entering a New Phase of Growth
  2. Q4 & FY 2019 Financial Results
  3. 2020 Outlook & Conclusion

40

FY 2019 OPERATING REVENUE

Up 18.3% as reported and 13.9% L/L

2019 OPERATING REVENUE

Q4 2019

FY 2019

€445m

€1,570m

REPORTED

+19.0%

+18.3%

Scope

+5.4%

+5.3%

Currency(1)

-0.1%

-0.9%

Venezuela

+0.1%

0.0%

LIKE-FOR-LIKE(1)

+13.6%

+13.9%

€374m

€1,327m

Q4 2018

FY 2018

L/L OPERATING REVENUE GROWTH

13.3%

14.2%

14.6%

13.2%

13.6%

13.9%

FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19

€70M FROM SCOPE

€(12)M FROM FOREX

EFFECTS IN FY 2019

EFFECTS IN FY 2019

Scope effects are mainly

Impact in €m

coming from:

BRL

(10)

ARS

(7)

MXN

6

Other

(1)

1. Excluding Venezuela

41

FY 2019 OPERATING REVENUE - EUROPE

Sustained double-digit organic and reported growth

2019 OPERATING REVENUE IN EUROPE

€884m

+13.0%

L/L

in FY19

+16.9%

as reported

L/L GROWTH 2019 VS. 2018

Q1

Q2

Q3

Q4

FY

France

+9.0%

+8.2%

+9.2%

+13.6%

+10.2%

Rest of Europe

+16.3%

+15.6%

+12.7%

+13.0%

+14.3%

Total Europe

+13.8%

+13.4%

+11.7%

+13.2%

+13.0%

MAIN EUROPEAN ACCOMPLISHMENTS

France

  • Solid performance of Ticket Restaurant and ProwebCE
  • Sustainedramp-up of Fleet & Mobility Solutions for light fleet, e.g. supermarkets' monobrand fuel cards via LCCC

Rest of Europe

  • Solid growth in Employee Benefitsregion-wide
  • Light fleet solutions andvalue-added services (e.g. toll, VAT refund) growing fast in Italy, Germany and Austria
  • Good integration of acquired companies (e.g. Easy Welfare, TRFC)

42

FY 2019 OPERATING REVENUE - LATIN AMERICA

Sustained double-digit organic and reported growth

2019 OPERATING REVENUE IN LATIN AMERICA

€559m

+14.4%

L/L

in FY19

+12.5%

as reported

L/L GROWTH 2019 VS. 2018

Q1

Q2

Q3

Q4

FY

Brazil

+11.7%

+12.9%

+12.7%

+19.7%1

+14.5%

Hispanic Latin America

+19.7%

+21.1%

+20.7%

-1.8%

+14.4%

Total Latin America

+13.9%

+15.1%

+15.1%

+13.7%

+14.4%

MAIN ACCOMPLISHMENTS IN LATIN AMERICA

Brazil

  • Strong organic growth in both Employee Benefits and Fleet & Mobility in 2019

Good ramp-up of toll & maintenance solutions

  • Positiveeffect from a change in revenue classification in Q4, no impact on full-year growth

Hispanic Latin America

  • Sustaineddouble-digit organic growth in 2019
  • Mexico:
    • As expected, Q4 negatively impacted by country recession(GDP -0.1% in 2019 vs. +2% in 2018)
    • Tough comparison basis vs. Q4 2018:
      −Fleet & Mobility: Q4 2019 average fuel price below Q4 2018
  • Employee Benefits: decision to submit to less Navideños tenders than in 2018, following a change in the rules for awarding this benefits to issuers, leading to volume cutdown by 3x

1. Up 15.1% excluding a positive effect from a revenue classification change between

43

operating revenue and other revenue in Q4. See 2019 pro-forma figures on slide 63.

2019 OTHER REVENUE

Mixed effects across regions

OTHER REVENUE

€56min FY19

vs. €51m in FY18

  • €3bn float
  • Positive effect from slightly higher interest rates outside the eurozone
  • Decreasing interest rates in Latin America

Other revenue in €m

FY 2019

FY 2018

Reported

L/L change(1)

change

Latin America

32

32

+0.9%

+0.4%

Europe

17

14

+21.0%

+21.1%

Rest of the World

7

5

+42.9%

+51.9%

Total

56

51

+10.4%

+11.0%

1. Excluding Venezuela

44

FY 2019 TOTAL REVENUE

Up 18.0% as reported and 13.8% L/L

2019 TOTAL REVENUE

Q4 2019

FY 2019

€456m

€1,626m

REPORTED

+17.7%

+18.0%

Scope

+5.2%

+5.1%

Currency(1)

-0.1%

-0.9%

Venezuela

+0.1%

0.0%

LIKE-FOR-LIKE(1)

+12.5%

+13.8%

€388m

€1,378m

Q4 2018

FY 2018

Q4 2019 TOTAL REVENUE

Q4 19

Q4 18

Reported

L/L

change

change

Operating revenue

445

374

+19.0%

+13.6%

Other revenue

11

14

-17.8%

-18.9%

Total revenue

456

388

+17.7%

+12.5%

FY 2019 TOTAL REVENUE

FY 19

FY 18

Reported

L/L

change

change

Operating revenue

1,570

1,327

+18.3%

+13.9%

Other revenue

56

51

+10.4%

+11.0%

Total revenue

1,626

1,378

+18.0%

+13.8%

1. Excluding Venezuela

45

2019 EBIT: €545M

Strong double-digit growth in EBITDA, operating EBIT and EBIT

In € millions

2019

2018

Reported

L/L

change

change(1)

Operating revenue

1,570

1,327

+18.3%

+13.9%

Other revenue (A)

56

51

+10.4%

+11.0%

Total revenue

1,626

1,378

+18.0%

+13.8%

EBITDA- restated for IFRS 16 impact

639

536

+19.3%

+13.8%

EBITDA margin- restated for IFRS 16 impact

39.3%

38.8%

+0.4pt

0.0pt

EBITDA

668

536

+24.8%

+13.8%

EBITDA margin

41.1%

38.8%

+2.2pts

0.0pt

Operating EBIT (B)

489

410

+19.3%

+15.3%

Operating EBIT margin

31.1%

30.9%

+0.3pts

+0.4pts

EBIT(C)=(A)+(B)

545

461

+18.3%

+14.8%

EBIT margin

33.5%

33.4%

+0.1pt

+0.3pts

1. Excluding Venezuela

46

2019 EBIT: €545M, UP 18.3% AS REPORTED AND 14.8% L/L

Profitable growth in a context of technology investments

2018 EBIT

Operating revenue

Other revenue

Changes in

Currency

Venezuela

L/LΔ: €185m(1)

scope

effect(1)

€22m

€(6)m

€0m

€63m

€5m

2019 EBIT

€545m

€461m

1. Excluding Venezuela

47

2019 NET PROFIT: €312M, UP 22.9%

Strong increase in net profit, Group share

2019

2018

Reported

In € millions

change

EBITDA- adjusted for IFRS 16 impact

639

536

+19.3%

KEY COMMENTS

IFRS 16 impact (non-cash)

EBITDA

668

536

+24.8%

D&A excluding PPA

(85)

(54)

PPA

(38)

(21)

EBIT

545

461

+18.3%

▪+€29m on EBITDA

  • €(29) on D&A

Neutral on EBIT

Share of net profit from equity-accounted companies

14

11

Other income and expenses

(25)

(31)

Operating profit including share of net profit from equity

534

441

accounted companies

Net financial expense

(35)

(37)

Income tax expense

(153)

(119)

Net profit attributable to non-controlling interests

(34)

(31)

Net profit, Group share (A)

312

254

+22.9%

Weighted average number of shares outstanding (B)

240,767

236,451

(in thousands)

EPS, Group share [(A)/(B)](in €)

1.30

1.07

+20.5%

2019

2018

Impairment of assets & goodwill

(17)

(6)

Acquisition fees & other fees

(6)

(16)

Restructuring

(4)

(5)

Other

2

(4)

48

EBITDA TO FCF

A business model ensuring profitable growth and cash generation

2019

2018

In € millions

EBITDA

668

536

EBITDA- adjusted for IFRS 16 non-cash impact

639

1

536

Funds from operations (FFO)

524

400

FCF/EBITDA

Increasein cash linked to changes in float

20

161

65%conversion rate1

Decreasein WCR, excl. float

349

243

(Increase)in restricted cash

(395)

(279)

Recurring capex

(98)

(90)

Free cash flow (FCF)

400

435

Free cash flow- at constant float classification

412

1

435

  • 2019 free float increase partly offset by volume decline in Mexican Navideños campaign in Q4
  • Strong working capital excluding float inflow, mainly due to highthird-party prepaid program volume growth, compensated in restricted cash (Neutral on FCF generation)

1. 2019 changes in regulations and methodologies: EBITDA: €29m IFRS 16 non-cash impact ; FCF: €12m change in float classification of some prepaid Fleet & Mobility Solutions

in Brazil

49

2019 NET DEBT: €1,290M

Strong free cash flow generation fueling acquisitions and shareholder return

December 31, 2018

Currency effects

December 31, 2019

IFRS 16

Free cash flow

Acquisitions

Shareholder return

and other non-

Net debt position

Net debt position

recurring items

€(659)m

€400m

€(782)m

€(91)m

€(1,290)m

€(134)m

€(24)m

50

KEY ACHIEVEMENTS SINCE 2019

FINANCING INSTRUMENT TIED WITH SOCIAL AND ENVIRONMENTAL CRITERIA FOR THE FIRST TIME

€750m undrawn revolving credit facility maturity extended and tied

with social and environmental criteria for the first time

  • Extended maturityfrom 2023 to 2025 - with two 1-year extension option
  • Increased amountfrom €700m to€750m
  • Improved financial conditions
  • Introduction of environmental and social performanceinto the calculation of the financing costs
    • KPI 1: Reach by 2030 an85% nutrition awareness rateamong merchants and employees using its solutions to promote healthy and sustainable eating habits
    • KPI 2: Target a52% cut in greenhouse gas emissions intensity by 2030 compared with 2013to combat global warming

CONVERTIBLE BOND ISSUED AT MARKET

RECORD CONDITIONS

€500m convertible bond issued at market record conditions

  • Zero-coupon
  • -1.53%yield
  • 40% premium
  • 5 years maturity

NO MAJOR DEBT REPAYMENTS

BEFORE 2024

750

125

121

500

500

500

500

250

233

37

2020

2021

2022

2023

2024

2025

2026

2027

NEU CP and other

Bonds

Schuldschein loan

Undrawn revolving

Convertible bonds

credit facility

51

A SOUND DEBT PROFILE

CONTINUED REDUCED AVERAGE COST OF DEBT

Gross debt

-36bps

€2.8bn

€2.5bn

€1.9bn

€1.9bn

2.5%

1.2%

0.8%

1.8%

2016

2017

2018

2019

Cost of debt (%)

Floating-rates

Fixed-rates

  • AVERAGE DEBT MATURITY~5 YEARS
  • COST OF DEBT AT0.8%
  • LEVERAGE RATIO OF1.9X, WITH ANET DEBT OF €1,290M
    AS OF DEC. 31, 2019

52

NEXT FRONTIER STRATEGIC PLAN: PROGRESSIVE DIVIDEND POLICY

PROGRESSIVE DIVIDEND POLICY

RECORD HIGH PROPOSED1DIVIDEND

ANNOUNCED IN OCTOBER 2019

FOR 2019

Dividend growth

€0.87 per share

in absolute terms2every year

+€0.01 vs. 2018

0.85 0.86 0.87

0.62

2016

2017

2018

2019

1. To be proposed at the Shareholders Meeting of May 7, 2020. Shareholders will be offered the option of payment in 100% cash or 100% shares with a 10% discount

53

2. At least +€0.01 per annum

Agenda

  1. Entering a New Phase of Growth
  2. Q4 & FY 2019 Financial Results
  3. 2020 Outlook & Conclusion

54

2020 : EDENRED'S 10-YEAR ANNIVERSARY

55

OUTLOOK AND CONCLUSION

SUSTAINED GROWTH IN ALL REGIONS AND ALL BUSINESS LINES, DRIVEN BY:

  • Scale:
    • Further grow inunder-penetratedmarkets, especially among SMEs
    • Maximize customer baseby increasing the level of up- and cross-selling
  • Innovation:
    • Digital innovation:App-to-app direct payment roll-out in new countries, split-payment development, roll-out of container app
    • Continued investment intechnology: >€250m dedicated in 2020(capex + opex)
    • Ramp-upof adjacenciessuch as Corporate Payment in North America and Employee Engagement Platforms in Europe
  • M&A:
    • Integrateand grow recently acquired companies (e.g. CSI, TRFC, Employee engagement platforms)
    • Conducttargeted acquisitionsto accelerate growth and create additional value
  • Transformation:
    • Execute ourIdealstrategy for sustainable development
    • Deploy Net Promoter Score program globally toimprove customer satisfaction
    • Improve Employee Engagementvia a global survey and action plan

EDENRED CONFIRMS ANNUAL

MEDIUM-TERM TARGETS FOR 2020

>8%L/L OPERATING REVENUE GROWTH

>10%L/L EBITDA GROWTH

>65%ANNUAL FCF/EBITDA CONVERSION RATE1

1. At constant regulation on float's classification and methodology

56

APPENDICES

EDENRED: TECH FOR GOOD

A recognized commitment

58

TECHNOLOGY INVESTMENTS

TECHNOLOGY INVESTMENTS

~€250m p.a.

% of technology costs

Security,

Applications

Infrastructure

Compliance

(Front, Middle & Back)

& Network

& Support

35%

35%

20%

10%

Technology capex

Technology opex

80-90% of Edenred's

15-20% of Edenred's opex

recurring capex1

1. Excluding M&A

59

EMPLOYEE BENEFITS AND FLEET & MOBILITY SOLUTIONS ORGANIC OPERATING REVENUE GROWTH

Employee Benefits

11.7%

14.5%

13.9%

11.9%

11.8%

13.0%

FY 18

Q1 19

Q2 19

Q3 19

Q4 19

FY 19

Fleet & Mobility solutions

16.8%

17.1%

14.6%

17.7%

15.8%

13.7%

FY 18

Q1 19

Q2 19

Q3 19

Q4 19

FY 19

L/L operating revenue growth (excluding Venezuela)

L/L operating revenue growth

60

OPERATING REVENUE

Q1

Q2

Q3

Q4

In € millions

2019

2018

2019

2018

2019

2018

2019

2018

Europe

213

183

209

179

208

179

254

214

France

69

63

59

55

59

54

77

67

Rest of Europe

144

120

150

124

149

125

177

147

Latin America

128

119

138

124

137

116

156

138

Rest of the world

28

17

32

18

32

18

35

22

Operating revenue

369

319

379

321

377

313

445

374

Q1

Q2

Q3

Q4

In %

Reported

L/L (excl.

Reported

L/L (excl.

Reported

L/L (excl.

Reported

L/L (excl.

Venezuela)

Venezuela)

Venezuela)

Venezuela)

Europe

+16.4%

+13.8%

+16.4%

+13.4%

+16.4%

+11.7%

+18.3%

+13.2%

France

+9.0%

+9.0%

+8.2%

+8.2%

+9.2%

+9.2%

+13.6%

+13.6%

Rest of Europe

+20.3%

+16.3%

+20.0%

+15.6%

+19.4%

+12.7%

+20.4%

+13.0%

Latin America

+7.3%

+13.9%

+12.5%

+15.1%

+17.3%

+15.1%

+12.9%

+13.7%

Rest of the world

+64.1%

+20.9%

+73.5%

+23.1%

+79.8%

+16.3%

+66.6%

+17.3%

Operating revenue

+15.6%

+14.2%

+18.1%

+14.6%

+20.3%

+13.2%

+19.0%

+13.6%

FY

2019

2018

884

755

264

239

620

516

559

497

127

75

1,570

1,327

FY

Reported

L/L (excl.

Venezuela)

+16.9% +13.0%

+10.2% +10.2%

+20.0% +14.3%

+12.5% +14.4%

+70.9% +19.3%

+18.3% +13.9%

61

OTHER REVENUE

Q1

Q2

Q3

Q4

In € millions

2019

2018

2019

2018

2019

2018

2019

2018

Europe

4

4

4

3

4

3

5

4

France

2

2

1

1

1

1

2

2

Rest of Europe

2

2

3

2

3

2

3

2

Latin America

9

8

9

8

10

8

4

8

Rest of the world

1

1

2

1

2

1

2

2

Other revenue

14

13

15

12

16

12

11

14

Q1

Q2

Q3

Q4

In %

Reported

L/L (excl.

Reported

L/L (excl.

Reported

L/L (excl.

Reported

L/L (excl.

Venezuela)

Venezuela)

Venezuela)

Venezuela)

Europe

+11.9%

+12.0%

+28.5%

+28.8%

+29.5%

+30.1%

+15.2%

+14.6%

France

-1.3%

-1.3%

-1.4%

-1.4%

+6.0%

+6.0%

-1.3%

-1.3%

Rest of Europe

+24.0%

+24.1%

+56.2%

+56.7%

+45.8%

+46.7%

+25.2%

*

+24.3%

*

Latin America

+1.9%

+5.4%

+17.2%

+17.2%

+24.9%

+20.3%

-37.4%

-38.4%

Rest of the world

+42.5%

+66.0%

+59.3%

+90.0%

+88.4%

+77.3%

-1.1%

-4.1%

Other revenue

+7.9%

+12.0%

+23.9%

+26.7%

+31.7%

+28.1%

-17.8%*

-18.9%*

FY

2019 2018

17

14

6

6

11

8

32

32

7

5

56

51

FY

Reported

L/L (excl.

Venezuela)

+21.0% +21.1%

+0.4% +0.4%

+36.7% +36.8%

+0.9% +0.4%

+42.9% +51.9%

+10.4% +11.0%

  • Q4 2019 has been impacted by a retroactive effect related to a change in revenue classification in Brazil. Some revenues related to merchant fast reimbursement are now recognized as Operating revenue vs. Other revenue. Neutral effect on 2019full-year revenue.

On a pro-forma basis, other revenue in Q4 is up 17.4% like-for-like and 18.4% as reported in Latin America, and up14.3% like-for-like and 15.4% as reported

62

for the Group.

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

371

380

379

440

1,570

Group Other Revenue

Q1

Q2

Q3

Q4

FY

Actual 2019

14

15

16

11

56

Pro forma 2019

12

14

14

16

56

Latin America Operating Revenue

Q1

Q2

Q3

Q4

FY

Actual 2019

128

138

137

156

559

Pro forma 2019

130

139

139

151

559

Latin America Other Revenue

Q1

Q2

Q3

Q4

FY

Actual 2019

9

9

10

4

32

Pro forma 2019

6

8

8

10

32

63

TOTAL REVENUE

Q1

Q2

Q3

Q4

In € millions

2019

2018

2019

2018

2019

2018

2019

2018

Europe

217

187

213

182

212

182

259

218

France

71

65

60

56

60

55

79

69

Rest of Europe

146

122

153

126

152

127

180

149

Latin America

137

127

147

132

147

124

160

146

Rest of the world

29

18

34

19

34

19

37

24

Total revenue

383

332

394

333

393

325

456

388

Q1

Q2

Q3

Q4

In %

Reported

L/L (excl.

Reported

L/L (excl.

Reported

L/L (excl.

Reported

L/L (excl.

Venezuela)

Venezuela)

Venezuela)

Venezuela)

Europe

+16.3%

+13.7%

+16.6%

+13.6%

+16.6%

+12.0%

+18.2%

+13.2%

France

+8.7%

+8.7%

+7.9%

+7.9%

+9.2%

+9.2%

+13.3%

+13.3%

Rest of Europe

+20.3%

+16.4%

+20.5%

+16.2%

+19.8%

+13.3%

+20.5%

+13.2%

Latin America

+6.9%

+13.3%

+12.8%

+15.3%

+17.7%

+15.4%

+10.0%

+10.8%

Rest of the world

+62.9%

+23.5%

+72.8%

+26.8%

+80.2%

+19.7%

+62.3%

+16.0%

Total revenue

+15.3%

+14.1%

+18.3%

+15.0%

+20.7%

+13.8%

+17.7%

+12.5%

FY

2019

2018

901

769

270

245

631

524

591

529

134

80

1,626

1,378

FY

Reported

L/L (excl.

Venezuela)

+17.0% +13.2%

+9.9% +9.9%

+20.3% +14.7%

+11.8% +13.6%

+69.3% +21.2%

+18.0% +13.8%

64

EBITDA, OPERATING EBIT & EBIT

In € millions

2019

2018

Europe

359

284

France

86

66

Rest of Europe

273

218

Latin America

275

251

Rest of the world

42

13

Holding and others

(8)

(12)

Total EBITDA

668

536

L/L (excl.

ReportedVenezuela)

+26.6% +14.1%

+30.1% +17.6%

+25.6% +13.0%

+9.6% +7.9%

+228.2% +60.1%

-29.9%-50.0%

+24.8% +13.8%

In € millions

2019

2018

Europe

280

234

France

59

49

Rest of Europe

221

185

Latin America

204

188

Rest of the world

19

5

Holding and others

(14)

(17)

Total Operating EBIT

489

410

In € millions

2019

2018

Europe

297

248

France

65

55

Rest of Europe

232

193

Latin America

236

220

Rest of the world

26

10

Holding and others

(14)

(17)

Total EBIT

545

461

Reported

L/L (excl.

Venezuela)

+20.0% +14.3%

+20.7% +20.5%

+19.8% +12.6%

+8.6% +9.9%

+269.1% +106.1%

-14.2%-31.6%

+19.3% +15.3%

L/L (excl.

ReportedVenezuela)

+20.0% +14.7%

+18.4% +18.2%

+20.5% +13.6%

+7.5% +8.6%

+163.7% +80.8%

-14.2%-31.6%

+18.3% +14.8%

65

FY 2019 CASH FLOW STATEMENT

(in € millions)

FY 2019

FY 2018

+

Net profit attributable to owners of the parent

312

254

+

Non-controlling interests

34

31

+

Dividends received from equity-accounted companies

9

12

-

Difference between income tax paid and income tax expense

-8

-18

-

Non-cash income and expenses

177

121

=

Funds from operations before other income and expenses (FFO)

524

400

+

Decrease (Increase) in working capital

369

404

+

Recurring decrease (Increase) in restricted cash

-395

-279

=

Net cash from (used in) operating activities

498

525

-

Recurring expenditure

-98

-90

=

Free cash flows (FCF)

400

435

66

SUMMARIZED BALANCE SHEET

As of December 31, 2019

In € millions

Dec 19

Dec 18

In € millions

Dec 19

Dec 18

Goodw ill

1,604

976

Total equity

(1,043)

(1,451)

Intangible assets

706

432

Property, plant & equipment

169

52

Investments in associates

69

66

Gross debt and other financial

3,163

2,696

liabilities

Other non-current assets

169

123

Provisions and deferred tax

239

215

Float (Trade Receivables, net)

2,142

1,949

Funds to be redeemed (float)

5,161

4,959

Working capital excl. float (assets)

290

233

Working capital excl. float (liabilities)

1,366

851

Restricted cash

1,864

1,402

Cash and cash equivalents and other

1,873

2,037

current financial assets

Total assets

8,886

7,270

Total equity and liabilities

8,886

7,270

Net debt

1,290

659

Total working capital

4,095

3,628

o/w float

3,019

3,010

67

AVERAGE EXCHANGE RATE

Average rates

Spot rate

Spot rate

€1 = X foreign currency

Q1 2019

Q1 2018

2019 vs. 2018

Q2 2019

Q2 2018

2019 vs. 2018

Q3 2019

Q3 2018

2019 vs. 2018

Q4 2019

Q4 2018

2019 vs. 2018

FY 2019

FY 2018

2019 vs. 2018

as of

as of

Change (in %)

Change (in %)

Change (in %)

Change (in %)

Change (in %)

31.12.2019

31.12.2018

Brazilian real (BRL)

4.28

3.99

-6.7%

4.41

4.29

-2.6%

4.41

4.60

4.4%

4.56

4.35

-4.6%

4.41

4.31

-2.4%

4.52

4.44

Mexican Peso (MXN)

21.80

23.03

5.6%

21.50

23.12

7.5%

21.60

22.07

2.2%

21.32

22.62

6.1%

21.55

22.71

5.4%

21.22

22.49

Argentine Peso (ARS)

44.33

24.23

-45.3%

49.34

28.02

-43.2%

56.12

37.38

-33.4%

65.73

42.37

-35.5%

53.88*

33.00

-38.8%

67.26

43.13

British Pound Sterling (GBP)

0.87

0.88

1.3%

0.87

0.88

0.1%

0.90

0.89

-1.1%

0.86

0.89

3.1%

0.88

0.88

0.8%

0.85

0.89

Turkish Lira (TRY)

6.11

4.69

-23.2%

6.60

5.22

-21.0%

6.31

6.60

4.7%

6.42

6.28

-2.2%

6.36

5.70

-10.4%

6.68

6.06

US Dollar (USD)

1.14

1.23

8.3%

1.12

1.19

6.1%

1.11

1.16

4.6%

1.11

1.14

3.1%

1.12

1.18

5.5%

1.12

1.15

Bolivar Sovereign (VES)

2 992

0.28

-99.99%

5 793

0.85

-99.99%

15 917

34.07

-99.8%

34 335

182.87

-99.5%

14 759

54.52

-99.6%

51 471

644.95

  • In line with IAS 29 standard, a EUR/ARS exchange rate of 67.26 has been used.

2019 EBIT sensitivity to a +5% change

BRL MXN

~€8.5m ~€2m

68

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

69

FAST FORWARD 2016-2018: A GAME CHANGER IN TERMS OF SIZE

BUSINESS VOLUME

In €bn, reported figures

+54%

28

18

2015

2018

TOTAL REVENUE

In €m, reported figures

+29%

1,378

1,069

2015

2018

EBITDA

In €m, reported figures

+38%

536

388

2015

2018

EBIT

In €m, reported figures

+35%

461

341

2015

2018

71

FAST FORWARD 2016-2018: A GAME CHANGER IN TERMS OF GROWTH PROFILE

FUNDS FROM

OPERATING REVENUE

OPERATING EBIT

OPERATIONS (FFO)

As a %, like-for-like growth1

As a %, like-for-like growth1

As a %, like-for-like growth

+23.5%

+21.8%

+17.3%

+16.0%

+15.4%

+17.0%

+13.3%

+8.3% +9.3%

2016 vs.

2017 vs.

2018 vs.

2016 vs.

2017 vs.

2018 vs.

2016 vs.

2017 vs.

2018 vs.

2015

2016

2017

2015

2016

2017

2015

2016

2017

1. Excluding Venezuela.

72

FAST FORWARD 2016-2018: A GAME CHANGER IN TERMS OF BUSINESS AND GEOGRAPHIC MIX

EDENRED OPERATING REVENUE

As a %, in €m, 2015 - 2018

1,327

1,327

10%

6%

COMPLEMENTARY

999

25%

999

37%

7%

12%

SOLUTIONS

FLEET & MOBILITY

14%

42%

EMPLOYEE

74%

65%

57%

BENEFITS

51%

2015

2018

2015

2018

REST OF THE WORLD

LATIN AMERICA

EUROPE

73

Attachments

  • Original document
  • Permalink

Disclaimer

Edenred SA published this content on 26 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 February 2020 08:28:04 UTC