Elior : Full year 2019-2020 Financial results Presentation

November 25, 2020

Full year 2019-2020 Financial results

Disclaimer

This document was prepared by Elior Group for the sole purpose of this presentation. This presentation includes only summary information and does not purport to be comprehensive. The information contained in this document has not been independently verified.

No representation or warranty, express or implied, is made as to, and no reliance should be placed upon, the fairness, accuracy, completeness or correctness of the information or opinions contained in this document and none of Elior Group, its affiliates, directors, employees and representatives accept

any responsibility in this respect.

Certain information included in this presentation are not historical facts but are forward-looking statements. The forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business strategies and the economic environment in which Elior Group operates, and involve known and unknown risk, uncertainties and other factors, which may cause actual results, performance or achievements, or industry results or other events, to be materially different from those expressed or implied by these forward-looking statements.

Forward-looking statements speak only as of the date of this presentation and Elior Group expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Such forward looking statements in this presentation are for illustrative purposes only. Forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Elior Group. Actual results could differ materially from those expressed in, or implied or projected by, forward-looking information and statements. These risks and uncertainties include those discussed or identified under "Facteurs de Risques"

in the Registration Document filed by Elior Group with the Autorité des marchés financiers ("AMF") on January 24, 2019, (number: 408 168 003) which is available on the AMF's website and on Elior Group's website at www.eliorgroup.com.

This presentation does not contain or constitute an offer of Elior Group's shares for sale or an invitation or inducement to invest in Elior Group's shares in France, the United States of America or any other jurisdiction.

November 25, 2020

Full year 2019-2020 Financial results

Outstanding commitment of our teams since the onset of this crisis

Elior Services

Elior Restauration

1

Strong achievements in a complex year

2

2019 - 2020: a challenging year where Elior stayed the course

Elior was on track to achieve its fiscal 2019-2020 objectives:

• Ambitious objectives that we were on track to deliver:
• • organic growth +2% and adjusted EBITA margin+10bps

Elior's agility through pandemic has delivered:

• Drop-throughbelow 30%: delivered 27%
• Strengthened cash management processes and capex control:
• • Change in working capital +€35m
  • Capex below 3%: delivered 2.2%
• Use of existing capacity to serve new segments and implemented new food service solutions
• Adapted offers, contractual model, terms and financial conditions

Covenant 'holiday' extended until September 30, 2022

3

Corporate Social Responsibility Performance (CSR)

Act, Measure, Prove

Healthy Choice		Sustainable ingredients
% vegetarian recipes: increase from 15.5 to 20%		Responsible ingredients sourcing: 21.6%
		20% increase of our sustainable
Highlight:		Highlight: seafood offer: now more than
		1 out of 3 are responsibly sourced!

Thriving People & Communities	Circular economy
	% women manager: 48.8%	% site sorting biowaste: increase from 83 to 89%
	Incident frequency rate: 18% reduction
Highlight:	The incident frequency rate tells us the risk or	Highlight:
probability of an accident occurring. In 2020,

we have seen a reduction of 18% since 2019

4

Elior's proven

agility at the service of its clients

5

Advantageous diversified market mix

25%

10%			38%
90%
29%	46%	62%

Higher Education	Others		White collars	Others
	B&I	Education	Healthcare

Based on full year 2018-2019 revenues

6

Asset, resource & cost flexibility

Asset flexibility:

• Central kitchen & banqueting: social services (US)
• Grab&Go (Spain)
• Urban360 (Italy)
• Multiplication of service modes enabled by digital assets

Resource & cost flexibility:

• Use of furlough and deferred payment programs where available
• Transfer of employees from one activity (B&I) to another (Health and Welfare)
• Fixed cost, terms and commitments renegotiated

7

Significant improvement on retention

FY20

FY19

New Business

Lost contracts

Like for Like

Organic growth

+5.2%-8.2%

A 140bps improvement	-16.7%		-19.7%

+7.5%-9.6%

+1.3%

-0.8%

8

Full Year 2019-2020: selected contracts wins

B&I

Education

Health and Welfare

›

Trenitalia-Night train service

›

City of Rome

›

Hôpital Sainte Camille

›

Ministère de la culture

›

Ville d'Herblay

› Texas Health Hospital Frisco

et de la communication

›

Harmony Public Schools-NA

›

CHU Bordeaux-Services

›

Bank of England

›

Illinois Mathematics & Science

› Royal Marsden NHS Foundation

›

Wincanton-UK

Academy

trust-UK

›

FC Barcelona

›

Tower Hamlets-UK

›

Olona Valle Hospital-Italy

›

Orange-Services

›

Alicante schools

›

Hopital Alto Guadalquivir-Spain

Significant activities to support Covid-19 related public programs

9

By accelerating the execution

of its strategic plan, Elior

will be ideally positioned when economies recover

10

Elior is accelerating its transformation

5 Value Creation Drivers

1
ATTRACTIVE
MARKETS
	CATERING
5	CUSTOMER	2
CENTRICITY/CSR
CASH
MANAGEMENT
	SERVICES
	CROSS-SELL
	/UPSELL
COST	CLIENT
OPTIMIZATION	RETENTION
4	3

11

Elior, major player to support economic stimulus plans

Elior's team cooked and distributed		Serunion guaranteed
34 million meals to vulnerable		the distribution of 18,000 meals
populations during the first lockdown		to Andalusian students during the lockdown

12

Consistent initiatives have increased the retention rate

Creation of Retention

Systematic post-mortem

Implementation of a risk

Manager positions in all

analysis of lost contracts

assessment tool to monitor

countries & BUs

clients at risk in the Group

CRM application

13

New Elior Plan

makes clients' needs

the focus of our transformation

14

B&I

New models in B&I: more flexible in terms of

"when and where" without compromising on quality

Service mode

Delivery

Connected fridges

Click to serve

Click&collect

Grab&Go

Assisted service

Production mode

		In house	Outsourced

On-site	On-site for	Central Kitchen	Central Kitchen	Food Manuf.	Food service
standard	satellites	standard	MAP	company	operator

15

B&I

New offers that respond to new consumption trends

Aligned with the high street quality standards

Encompassing CSR requirements: healthy,

transparent, renewable packaging, locally sourced

Offers that meet the new

consumption trends and commercial catering code

16

B&I

Production modes allow us to roll out new solutions by leveraging existing assets

Distinct from point of consumption

Supporting longer shelf-lifes

Ensuring cost competitiveness

17

B&I

Digital expertise and production innovations enabling innovative distribution systems

Agile & flexible formats allowing extended service hours

With limited

or no on-site staff

Enabled by digital tools on par with the Foodtech experience

18

Education

Elior proactive during the COVID-19 crisis

19

Health and Welfare

Hyper-personalized food for care homes and deliveries

20

Services

Elior Services consolidates its leadership position in bio-cleaning

60 new COVID-19		Afnor's certifications
bio-cleaning protocols		for our clients (72 criteria)

21

2019-2020 Financial results

22

Fourth quarter revenue analysis

(in €m)

-21.0%	+1.8%	+2.0%
1,079	1,098	1,100
2	0
-227	246
	852

Q4 2019	Organic	Q4 2020	Covid-19 Impact	Q4 2020 Organic	Voluntary	Tesco	Q4 2020 Organic
Revenue	Growth	Organic revenue	(Organic)	Revenue excl.	exits (Italy)	(UK)	Revenue excl. specific
				Covid-19			events and contracts

23

Second half revenue analysis

(in €m)

-34.7%	+1.6%	+1.9%
2,329	2,366	2,374
6	2
-807	845
	1,521

H2 2019	Organic	H2 2020	Covid-19 Impact	H2 2020 Organic	Voluntary	Tesco	H2 2020 Organic
Revenue	Growth	Organic Revenue	(Organic)	Revenue excl.	exits (Italy)	(UK)	Revenue excl. specific
				Covid-19			events and contracts

24

Full year revenue analysis (1/2)

(in €m)

France contract catering

& Services

International contract catering

Corporate

& Other

4,923

-19.4%

3,967

2,212

1,778

2,689

2,182

	22			7
2018- 2019	2019-2020

		-19.4%
4,923
	-968			3,967
		4	8
	-19.7%	+0.1%	+0.2%
2018 - 2019	Organic	Perimeter	Forex	2019 - 2020
	Growth	effect

25

Full year revenue analysis (2/2)

(in €m)

	-19.7%		+0.7%		+0.9%		+1.7%
4,923				4,956	11	4,967	22	17	5,006
	-968		1,002
		3,955
2018 - 2019	Organic	2019 - 2020	Covid-19	2019 - 2020	Strikes impact	2019 - 2020	Voluntary	Tesco	2019 - 2020
Revenue	Growth	Organic	Impact	Organic		Organic	exits	(UK)	Organic
		revenue	(Organic)	Revenue excl.		Revenue excl.	(Italy)		Revenue excl.

Covid-19	specific events	specific events
		and contracts

26

Full year EBITA analysis (1/2)

(in €m)

Group Adjusted EBITA

Group Adjusted EBITA margin

	176
			176
France contract
catering	109
& Services
	-10		3.6%
International
contract	90
catering
	-23	-13
	-30
Corporate			-1.7%
& Other		-26
		-69		-69
	2018 - 2019	2019 - 2020	2018 - 2019	2019 - 2020

27

Full year EBITA analysis (2/2)

(in €m)

176	4
3.6%
		-268
					-1.8%		-1.7%
				15		2
				-71		-69
			2
2018 - 2019	D&A	Covid-19	Corporate	Contract	2019 - 2020	IFRS 16	2019 - 2020
		Impact	& Others	Catering	before IFRS 16	Impact
				& Services

28

Full year P&L analysis (after IFRS16)

(in €m)

		2019-2020	2018-2019	YoY change
	Revenue	3,967	4,923	-19%
	ADJUSTED EBITA	(69)	176	(245)
	Adjusted EBITA margin	-1.7%	3.6%	(5,3)pts
	Share based compensation	-	5	(5)
	EBITA	(69)	181	(250)
	Acq. Intangible amortization	(20)	(21)	+1
	Impairment of goodwill	(123)	-	(123)
	Non-recurring	(117)	(27)	(90)
	Financial charges	(38)	(69)	+31
	Income tax	(83)	4	(87)
	NET RESULT FROM CONT.OP.	(450)	(68)	(518)
	Net result from discontinued operations	(37)	202	(239)
	NET RESULT	(487)	270	(757)
	Minority Interest	4	1	+3
	NET RESULT GROUP SHARE	(483)	271	(754)

29

Financial result

(in €m)

		2019 - 2020	2018 - 2019	YoY change
	Financial interests (net)	(32)	(63)	+31
	Amortization of issuing fees	(2)	(11)	+9
	Net foreign exchange	(2)	15	-17
	Impairment of non consolidated entities	(6)	(10)	+4
	Other	4	-	+4
	Net financial expenses	(38)	(69)	+31

30

Tax

(in €m)

P&L tax

Taxes paid

(in €m)	2020	2019	YoY		(in €m)	2020	2019	YoY

Total

(83)

4

-87

Total

(11) (24) +13

Current	(68)	30	-98

Deferred

(2)

15

-17

31

Free cash flow analysis: EBITDA to FCF

(in €m)

53	-89
		35	-23							-15
				-14		-62		-73	58
					-23
							-11
FY 2020	CAPEX	Change	US minority	Securitization	Other Cash	FY 2020 Op.	Tax Paid	FY 2020 Free	IFRS 16	FY 2020 Free
Adjusted		in OWC	shareholder		Items	FCF Before		Cash Flow	Impact on	Cash Flow
EBITDA			s buyout			IFRS16		Before IFRS 16	EBITDA

32

NET DEBT ANALYSIS BEFORE IFRS16

(in €m)

-228

-539

-767

-73

-17
-13
	-7		0
			-21
		-50

-48

-€119m

Sept. 2019	Free Cash Flow	Financial	Acquisitions	Discontinued	FX and	Share Buy back	Dividends	PAI Price	Sept. 2020
Net Debt		Fees		Activities	Other		paid	Adjustment	Net Debt

Including IFRS 16: net debt at €995m compared to €782 million (pro forma IFRS 16) at Sept. 30, 2019

33

Liquidity

Elior's Available Liquidity at the end of September

2020 was €630 million:

› Includes cash of €38 million		› Remaining available credit
after drawing down of the		lines amount to €592
revolving credit facilities of		million.
€200 million and no drawing
on the US$ facility.

• Covenant 'holiday' extended.
  Next test will be at the end of 2022 based on financial results as of September 30, 2022

34

Key Takeaways:

We enter 2021 with an optimized cost base that will drive higher profitability over the long term

35

Outlook

B&I

Education

Health and Welfare

36

Summary

We enter 2021 with an optimized cost base that will drive higher profitability over the long-term

Proactively managing		Delivering outstanding		Maximizing our
liquidity and our financing		commitment by our teams		solid and diversified
capacity thanks to our		to increase customer		business mix to position us
agility, flexible		goodwill, coupled with		well for the varying
organization, and strict		through close monitoring		lockdown Covid-19
cost management		and renegotiating of		measures
				contracts

Transforming our business via 5 value creation drivers to accelerate our transformation to drive innovative solutions to emerge from this crisis more competitive in an even stronger position

Medium term: Return to solid revenue growth and higher margin

on post crisis rebound and new offerings

37

Q&A

Appendix

39

Free cash flow analysis: year-on-year

(in €m)

				-299
227	-245
		25	-23							-15
				-23				-73	58
					-43
						-3	12
FY 2019	Adjusted	CAPEX	Change	US minority	Securitization	Other Cash	Tax Paid	FY 2020 Free	IFRS 16	FY 2020 Free
Free Cash	Ebitda		in OWC	shareholders		Items		Cash Flow	Impact on	Cash Flow
Flow				buyout				Before IFRS 16	EBITDA

40

Full year 2020 net result excluding one-offs

(in €m)

+308
-179
105
-37
123
2,689
117
-487

Net Result	Non-recurring	Impairment of	Tax effect on	Unrecognized tax	Net Result excl.
as reported	items, gross	goodwill, gross	non-recurring items	losses and valuation	one-offs
				allowances

41

IFRS16 Impact

(in €m)

	P&L	FY 2020	FY 2020	IFRS 16
	As Published	Before IFRS 16	Impact
	Other operating expenses	(420)	(479)	+59
	D&A	(178)	(121)	(57)
	Recurring operating profit	(89)	(91)	+2
	Adjusted EBITA	(69)	(71)	+2
	Financial expenses (net)	(38)	(31)	(7)
	Income tax	(83)	(86)	+3
	Net result from discontinued operations	(37)	(36)	(1)
	Net result	(487)	(484)	(3)

42