PRESS
RELEASE
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February 23, 2017 |
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2016 Annual
Results
Strong growth in earnings
EBIT up to a record high |
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Issue volume
€19,814 million |
+10.0% |
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Operating revenue
€1,073 million |
+8.3% |
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Operating EBIT
€304 million |
+17.3% |
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Funds from operations[1]
€299 million |
+15.4% |
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Operating EBIT margin up
1.1 points to 28.3%
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EBIT at an all-time high of
€370 million despite a €32 million negative currency effect
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Net profit, Group share up
1.9% to €180 million
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Recommended dividend of €0.62
per share, representing a payout ratio of
80%[2]
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Net debt reduced by €49
million to €588 million
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Significant achievements paving
the way for success with the Fast Forward strategic plan:
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A good performance in the Employee Benefits business, with an 8.5% rise in issue volume (like-for-like) driven by
commercial success, innovative initiatives in mobile payment
solutions and new value-added services.
-
A sharp rise in Expense
Management as a percentage of Edenred's total business,
accounting for 18% of consolidated operating
revenue versus 14% in 2015. This reflects the two-fold increase in the size of the business in Brazil
following the acquisition of Embratec assets, and double-digit organic growth in operating revenue (up
13% like-for-like).
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Ongoing shift to digital
solutions, which accounted for 70% of total issue volume in
2016 compared to 65% in 2015.
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Bertrand Dumazy,
Chairman and Chief Executive Officer of Edenred, said:
"In 2016, Edenred proved that it has set itself on
a course of profitable and sustainable growth, with EBIT at an
all-time high and cash flow generation up sharply. We delivered
solid performances in Europe and a good level of growth in
Latin America despite a difficult economic environment in
Brazil. In the Employee Benefits business line, we continued to
enhance our offering and to develop innovative new digital and
mobility solutions. On the corporate vehicle fleet management
market, we became market leader in Latin America following our
acquisition of Embratec in Brazil. We also recently increased our
stake in UTA to 51%, becoming the number two issuer of multi-brand
Europe-wide solutions."
"We are confident
as we move into 2017 and will pursue our Fast Forward strategic
plan with the aim of developing new sources of growth, especially
in corporate payment solutions. Value creation is at the heart
of our strategy as we focus on growth in operating revenue and
operating EBIT. We intend to continue generating strong levels of
cash flow so that we can return a high dividend to our shareholders
while retaining enough financial flexibility to leverage external
growth opportunities and maintain our 'Strong Investment Grade'
credit rating".
2016 ANNUAL
RESULTS
The consolidated financial
statements for 2016[3] were
approved by the Board of Directors on February 22, 2017.
2016 key
financial metrics
(in € millions) |
2016 |
2015 |
% change |
Reported |
Like-for-like[4] |
Issue volume |
19,814 |
18,273 |
+8.4% |
+10.0% |
Operating
revenue
Financial revenue
Total revenue |
1,073
66
1,139 |
1,000
69
1,069 |
+7.3%
-4.2%
+6.5% |
+8.3%
+0.2%
+7.8% |
Operating
EBIT
Financial EBIT
Total EBIT |
304
66
370 |
272
69
341 |
+11.6%
-4.2%
+8.4% |
+17.3%
-0.2%
+13.8% |
Net profit, Group share |
180 |
177 |
+1.9% |
|
Earnings
per share, Group share[5]
(in €) |
0.78 |
0.78 |
+0.8% |
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Issue volume up
10.0% like-for-like at €19.8 billion
In line with the Group's historic
medium-term target of 8%-14% annual organic growth, issue volume
for the year was up 10.0% like-for-like to
€19,814 million, driven in particular by 12.7%
like-for-like growth in the fourth quarter. Reported growth stood
at 8.4% for the year, after taking into account:
-
The 5.8% positive impact from changes in the
scope of consolidation relating to the acquisition of Embratec
assets in Brazil, which were transferred to a joint venture
65%-owned by Edenred and fully consolidated over an eight-month
period, and that of La Compagnie des Cartes Carburants (LCCC) in
France, which is 69.2% owned and was fully consolidated over the
12-month period.
-
The negative 7.4% currency effect, primarily due
to the depreciation of the Brazilian real (down 4.3%), Mexican peso
(down 14.8%) and Venezuelan bolivar fuerte (down 63.6%)
against the euro.
-
Issue volume by type of
solution
|
Employee
Benefits |
Expense
Management |
Incentive & Rewards |
Public Social
Programs |
TOTAL |
Issue volume
(in € millions) |
14,731 |
3,842 |
824 |
416 |
19,814 |
% of total IV[6] |
75% |
19% |
4% |
2% |
100% |
Like-for-like growth |
+8.5% |
+15.1% |
+15.4% |
nm |
+10.0% |
The year saw 8.5% like-for-like
growth in the issue volume of Employee
Benefits associated with meals and food and quality of life,
which represented 75% of 2016 issue volume. Expense Management, Edenred's second growth engine,
delivered robust 15.1% like-for-like growth and now accounts for
19% of total issue volume versus 16% in 2015. Incentive &
Rewards and Public Social Programs both posted strong growth in the
year, accounting now for 4% and 2%, respectively, of total issue
volume.
Like-for-like growth |
First
quarter |
Second quarter |
Third
quarter |
Fourth
quarter |
2016 |
Latin America |
+7.5% |
+8.7% |
+14.3% |
+19.4% |
+12.4% |
Europe |
+6.9% |
+9.7% |
+6.4% |
+6.8% |
+7.4% |
Rest of the
World |
+12.1% |
+11.1% |
+6.0% |
+11.8% |
+10.3% |
TOTAL |
+7.4% |
+9.3% |
+10.2% |
+12.7% |
+10.0% |
In Latin
America, issue volume for the year was up
12.4% like-for-like at €9.7 billion, or
49% of the Group's total issue volume.
In Brazil,
issue volume for 2016 rose by 4.2% like-for-like despite a very
weak economic environment. Issue volume for the Employee Benefits
business line continued to increase slightly, up 1.2% like-for-like
despite the ongoing rise in the unemployment rate[7].
Expense Management solutions continued to record strong
like-for-like growth, gaining 14.0%.
In Hispanic Latin
America, issue volume was up 23.8% like-for-like, reflecting
strong growth for Expense Management solutions (up 14.9%
like-for-like) and Employee Benefits (up 30.5% like-for-like, aided
partly by Venezuela on account of rising inflation). Like-for-like
growth in Mexico, Edenred's biggest market in
the region, was 13.3%, with an acceleration in the second half of
the year.
In Europe,
2016 issue volume was €9.4 billion (or 47% of
the Group's total issue volume), up 7.4%
like-for-like.
Europe (excluding
France) posted like-for-like growth of 8.9%. Issue volume rose
3.0% in Italy. In Germany, Edenred recorded growth of more than 50%
for its Ticket Plus® Card
solution. In the UK, childcare vouchers were up 5.9% like-for-like.
Issue volume rose 9.7% like-for-like in Central Europe, driven by a
good sales performance in an improved economic environment. All
other European countries delivered double-digit like-for-like
growth in issue volume.
France
recorded solid 4.6% like-for-like growth in issue volume,
reflecting a further 3.4% increase in the Ticket
Restaurant® meal voucher
solution. Edenred leads the digital meal voucher market in France,
wirh around 300,000 users of its Ticket Restaurant®
card solution. The Group also benefited from 7.1% growth in Ticket
Kadéos® gift vouchers
and cards during the year.
Lastly, issue volume in the
Rest of the World was up by 10.3% like-for-like over the year, led mainly by strong
growth in Turkey, the region's primary
contributor.
Total revenue up
7.8% like-for-like to €1,139 million
Like-for-like growth |
First
quarter |
Second quarter |
Third
quarter |
Fourth quarter |
2016 |
Operating revenue with IV |
+5.8% |
+7.8% |
+9.6% |
+10.2% |
+8.3% |
Operating revenue without IV |
+6.6% |
+5.2% |
+12.2% |
+9.3% |
+8.2% |
Operating
revenue |
+5.9% |
+7.3% |
+9.9% |
+10.0% |
+8.3% |
Financial
revenue |
-3.1% |
+0.1% |
-2.5% |
+6.8% |
+0.2% |
Total revenue |
+5.2% |
+6.9% |
+9.1% |
+9.9% |
+7.8% |
Total revenue
for 2016 amounted to €1,139 million,
representing a like-for-like increase of 7.8%
on the previous year. Total revenue comprises operating revenue
with issue volume (80% of total revenue), operating revenue without
issue volume (14% of total revenue), and financial revenue
(6% of total revenue).
On a reported basis, the year-on-year change was a rise of
6.5%, after taking into account the
5.3% positive impact from changes in the scope of
consolidation and the 6.5% negative currency effect.
Operating revenue
with issue volume increased by 8.3%
like-for-like to €918 million. This reflects
an acceleration in growth in Latin America during the second half
and continued strong like-for-like gains in Europe over the last
three quarters.
Growth in
operating revenue with issue volume by region
(like-for-like)
Like-for-like growth |
First
quarter |
Second quarter |
Third
quarter |
Fourth
quarter |
2016 |
Latin America |
+6.2% |
+6.6% |
+12.5% |
+14.1% |
+9.7% |
Europe |
+5.1% |
+8.9% |
+7.3% |
+8.0% |
+7.4% |
Rest of the World |
+7.9% |
+8.6% |
+2.4% |
+0.4% |
+4.8% |
TOTAL |
+5.8% |
+7.8% |
+9.6% |
+10.2% |
+8.3% |
Operating revenue
without issue volume was up 8.2%
like-for-like at €155 million, driven in
particular by a good performance from ProwebCE in France.
Total operating
revenue climbed 8.3% like-for-like, mainly reflecting a 7.6%
rise in operating revenue in the Employee Benefits business line,
where the take-up rate[8] remained
stable in 2016 (up 2 basis points), and a 13.1% increase in
operating revenue for the Expense Management business line (on a
like-for-like basis).
While growth in the float
accelerated[9], rising
€165 million in 2016 to €2,619 million, financial revenue remained virtually stable
like-for-like (up 0.2%) at €66 million. This
reflects a solid increase in Latin America (up
11.0% like-for-like) and in the Rest of the World (up 13.3%),
offsetting the 12.8% like-for-like decline in Europe attributable to the fall in interest rates.
EBIT up 13.8%
like-for-like to a record high of €370 million
Total EBIT
rose 8.4% on a reported basis in 2016, reaching an all-time high of
€370 million. Like-for-like, total EBIT
advanced by €47 million, or 13.8%. Changes in the scope of
consolidation had a positive €14 million impact, while the
currency effect was a negative €32 million. Total EBIT comprises
operating EBIT and financial EBIT, which corresponds to financial
revenue.
2016 operating
EBIT by region
(in € millions) |
2016
|
2015
|
% change |
Reported |
Like-for-like |
|
Latin America |
166 |
169 |
-1.8% |
+9.6% |
Europe |
144 |
118 |
+22.5% |
+23.7% |
Rest of the World |
8 |
8 |
-3.7% |
-3.4% |
Worldwide
structures |
(14) |
(23) |
-37.9% |
-13.9% |
TOTAL |
304 |
272 |
+11.6% |
+17.3% |
Operating
EBIT (which excludes financial revenue) rose 17.3% like-for-like to €304 million, a good performance that reflected an
operating flow-through ratio[10] of
56.5%, in line with the historic medium-term
target of more than 50%.
Latin America
posted like-for-like growth of 9.6% in
operating EBIT, as the operating EBIT margin remained at a high
level despite the morose economic climate in Brazil, the region's
biggest market. In Europe, operating EBIT rose
by a strong 23.7% like-for-like, driving a
significant improvement in the operating EBIT margin.
The Group's operating EBIT margin
gained 1.1 points to stand at 28.3%, reflecting a 2.2-point
improvement in the like-for-like operating margin, offset by a
1.1-point decline resulting from a positive scope impact coupled
with an unfavorable geographical mix effect. This mix effect
relates to fluctuations in exchange rates in the Group's different
regions, which operates with different levels of profitability.
Locally however, the operating margins of the Group's subsidiaries
are not affected by exchange rate fluctuations since their income
and expenses are denominated in local currencies.
Net
profit
Net profit, Group
share rose 1.9% in 2016 to €180 million,
up from €177 million in 2015.
Net profit includes €26 million in
net non-recurring costs. These consist of fees (€9 million),
primarily relating to acquisitions carried out, impairment of
assets (€15 million), the cost of additional initiatives rolled out
to optimize the Group's organization (€19 million), and the
residual balance of other non-recurring items (€17 million income)
- relating mainly to the accounting recognition of compensation due
following the decision handed down on December 13, 2016 by the
International Centre for Settlement of Investment Disputes (ICSID)
in the dispute opposing Edenred and the Hungarian State.
Net profit also includes net
financial expense (€58 million versus €47 million in 2015),
the share of profit of associates and joint ventures
(€8 million), income tax expense (€102 million) and minority
interests (an expense of €12 million in 2016 versus
€5 million in 2015, with the increase attributable to the
creation of the Ticket Log joint venture in Brazil).
Strong cash flow
generation
The Edenred business model
generates significant cash flow. In 2016, funds from operations
before non-recurring items (FFO) came in at a
record €299 million, up
15.4% like-for-like and in line with the
Group's annual growth target of more than 10%.
The free cash
flow generated over the year totaled €352
million. A total net amount of €149 million was allocated to the payment of
dividends and the share buyback program, and €196 million to acquisitions.
After taking into account the
above, along with the positive currency effect and non-recurring
items for a total of €42 million, the Group's net debt stood
at €588 million at December 31, 2016
(versus €637 million at end-2015). The ratio of net debt to
EBITDA improved, at 1.4 versus 1.6 in 2015.
Active management
of debt
During the year, Edenred began to
prepare the refinancing for its €510 million bond maturing in
October 2017, issuing a €250 million Schuldschein loan - a German form of private
placement - consisting of fixed- and floating-rate coupons
with an average maturity of 6.1 years, and an average financing
cost of 1.2%.
In 2016, Edenred also set up two
bank loans, each for BRL 250 million[11] and
falling due in 2018 and 2019 respectively, and took advantage of
more favorable financing conditions to extend its €700 million
(undrawn) revolving credit facility for a further two years through
to July 2021.
These transactions helped further
strengthen the Group's debt profile. The average cost of debt was
2.5% (1.6% excluding the Brazilian loans, versus 2.0% in
2015). Excluding the bond issue maturing in October 2017,
almost half of which has already been refinanced, Edenred has no
major debt repayments due before 2020. The average maturity of the
Group's debt is 4.4 years. These transactions also helped Edenred
diversify its sources of financing and extend its investor
base.
KEY ACHIEVEMENTS
IN 2016 AND EARLY 2017
Further digital
development
The shift to
digital continued at a rapid pace, with digital issue volume
representing 70% of the total issue volume at end-2016, up
5 points versus last year.
In Europe,
the transition launched in 2010 is accelerating and digital issue
volume now represents 43% of the region's
total issue volume (up 7 points from 36% at end-2015). In Latin America, digital solutions accounted for
96% of total issue volume at end-2016, up 2
points on end-2015. In the Rest of the
World region, digital solutions represented 73% of total issue volume, a 3-point increase
year-on-year.
Development of
digital mobile and web solutions for the Employee Benefits business
line
Edenred is
currently the only meal voucher issuer to offer Apple
Pay[12]. Edenred
has been offering this service to the 300,000 holders of its Ticket
Restaurant® cards in
France since July 2016 and to the 90,000 Ticket
Restaurant® card holders
in Spain since December 2016. Payment can be made directly with an
iPhone or Apple Watch at all Ticket Restaurant®-affiliated
restaurants and merchants equipped with a contactless payment
terminal.
In May 2016, Edenred launched
the first mobile payment app for meal vouchers in
Italy. This Ticket Restaurant® app allows
employees to pay for their lunch in restaurants and supermarkets
using either contactless payment or a code sent to their
smartphone. As well as being fast, personalized and user-friendly,
this interactive app has a location search function developed in
partnership with TripAdvisor.
In August 2016, Edenred teamed up
with the Carrefour group to launch Carrefour
Ticket Xpress, an e-voucher service in Taiwan, allowing
Carrefour Taiwan to replace the 8 million+ paper gift vouchers it
issues each year with a mobile payment solution. Carrefour Ticket
Xpress is available on all major banks' online loyalty program
channels. Consumers can use their reward points to get Carrefour
Ticket Xpress delivered directly to their mobile devices and spend
them by simply scanning the barcode at any of Carrefour's 87 Taiwan
stores.
Edenred
number 1 for Expense Management solutions in Latin
America
In May 2016, Edenred finalized the
combination of its Expense Management operations in Brazil with
those of Embratec in a new company called Ticket Log, 65%-owned by
Edenred and 35%-owned by Embratec's founding shareholders. This
transaction enabled Edenred to double the size of its Expense
Management business in Brazil, creating the leading supplier of
fuel card and maintenance solutions for light vehicles and number
two for heavy vehicles.
Ticket Log serves around 27,000
clients, representing more than one million active cards that can
be used at more than 24,500 affiliated service stations and
maintenance workshops, or 58% of Brazil's national network. With
approximately 60 billion liters of fuel consumed in 2014 and a low
penetration rate (between 15% and 20%), the Brazilian B2B fuel card
segment has significant growth potential.
Edenred financed the deal mainly
by contributing assets to the new entity, with an additional cash
payment of BRL 810 million, financed locally. At end-December
2016, the transaction had unlocked cost and business synergies of
around BRL 16 million[13] since May
1, 2016 (the date Embratec's assets were consolidated), in line
with the target of BRL 60 million in annual synergies within
three years.
Launch of new
Expense Management solutions
In Latin America, besides its
Ticket Log joint venture with Embratec, Edenred leveraged its
number one position in Mexico to deliver vigorous growth in the
country, while accelerating its development in other markets such
as Argentina.
In Mexico during the year, Edenred
launched Ticket Car Go, a new contactless payment solution that can
be used to pay for fuel costs. Based on Near Field Communication
(NFC) technology, this solution is currently being tested by a
company operating one of the largest vehicle fleets in Latin
America. In all, 30,000 vehicles have been fitted with NFC Ticket
Car Go stickers. Also in Mexico, Edenred launched Ticket Car Pro, a
mobile app allowing fleet managers to consult information remotely
about use of the cards or to block card use.
In Europe, Edenred stepped up its
cooperation with UTA throughout the year. Ticket Fleet Pro was
launched in France, a solution designed by La Compagnie des Cartes
Carburant (LCCC) in partnership with UTA. Ticket Fleet Pro is
especially aimed at the light vehicle fleet market. Holders of the
Ticket Fleet Pro card have access to a multi-brand network of over
2,500 service stations. The card also offers a number of related
services. For example, Ticket Fleet Pro can be linked up with a
badge for paying toll charges or certain car park and car washing
station fees, with all such expenses consolidated in a single
invoice.
In June 2016, Edenred launched its
Spendeo solution in Romania to manage and optimize employee
business trips before, during and after traveling. Revolving around
a shared web platform, user portal and a MasterCard payment card,
this solution allows companies to credit, customize and monitor
funding for their employees' business trips (amount, location,
hotel rating, etc.). Employees also benefit from an easy and
effective way of managing their expenses and claims.
In November 2016, Edenred expanded
its solutions for SMEs in Spain with the launch of its Ticket
Gasolina fuel card, the product of an alliance with Solred, Spain's
largest network of service stations (Repsol, Campsa and Petronor).
Ticket Gasolina enables companies to benefit from a discount of
between 3% and 5% depending on their fuel consumption. The card
also simplifes administration, since VAT is deducted directly and
clients only have to settle one monthly invoice. Users of the card
are offered secure payment and no longer have to pay for fuel they
need for professional purposes out of their own pockets.
Lastly, through Cardtrend, a
Malaysian company acquired in 2014, Edenred has an ideal platform
from which to develop its software offering across South-East Asia,
particularly with local and regional oil companies, and to develop
multi-brand solutions.
Presentation of
Fast Forward, Edenred's three-year strategic plan
In October 2016, Edenred unveiled
its new Fast Forward strategic plan, designed to accelerate the
Group's transformation over the next three years while laying the
foundations for new sources of profitable and sustainable growth.
The plan leverages the Group's unique expertise in designing and
managing value-added solutions within transactional
ecosystems.
These ecosystems have solid fundamentals and the Group's aim is to
continue unlocking the strong growth potential they offer. Edenred
will look to leverage the growth opportunities that result from
increased digitalization of Employee Benefits solutions,
consolidate its position among the global leaders of the Expense
Management market following the acquisition of Embratec in Brazil
in 2016 and of a controlling interest in UTA in 2017, and
capitalize on the Group's expertise to develop value-added
solutions for new ecosystems such as Corporate Payments.
The Fast Forward plan has resulted
in ambitious new organic growth targets for the coming three years
(see the "2017 Outlook" section at the end of this press release).
Edenred's aim is to maximize value creation for its shareholders
through a balanced deployment of capital between investments and
shareholder return which led the Group to revise its dividend
policy (see the "Dividend policy" section).
Edenred increased its stake in UTA to 51% to
become a world leader in Expense Management
The Group took a further step to
develop its Expense Management business line in January 2017 when
it increased its stake in Union Tank Eckstein (UTA) from 34% to
51%. UTA is the number two Europe-wide player specialized in
multi-brand fuel cards, toll solutions and maintenance services.
Thanks to this transaction, Edenred now manages 2.6 million fuel
cards and toll solutions worldwide and close to 6.3 billion liters
of fuel. The Group's cards are accepted at 70,000 affiliated
service stations.
Edenred intends to speed up the
development of UTA solutions for heavy vehicle fleets, particularly
in Central and Eastern Europe, while gradually rolling out to its
own clients its offer of new solutions in the light vehicle fleet
segment such as Ticket Fleet Pro launched in France.
UTA is fully consolidated as from
January 1, 2017. The acquisition of an additional 17% of UTA's
capital for around €83 million[14] should
have an accretive impact of around 5% on 2017 net profit, Group
share, before the impact of purchase accounting
adjustments.[15] UTA's
minority shareholders[16] have put
options in Edenred's favor covering the remaining 49% of capital.
Edenred will record a liability of around €200 million (gross) in
its consolidated financial statements in respect of these
options.
DIVIDEND
POLICY
As part of its strategic plan Fast
Forward, the Group asserted its commitment to favour a balanced
deployment of capital between investments and shareholder return,
in line with Edenred's growth profile. Drawing on its strong
balance sheet, tight rein on debt and sound liquidity, Edenred
wishes to leverage growth opportunities in line with its goals.
This led it to revise its dividend policy which, from now on, will
aim at paying out at least 80% of net profit, Group share.
In that respect, the recommended
dividend for 2016 amounts to €0.62 per share, representing a payout ratio of 80% of
net profit, Group share (versus 108% in 2015). Shareholders may opt
to receive the entire dividend in cash or to receive half in cash
and half in shares[17]. The
dividend will be put to the vote at Edenred's Annual Shareholders'
Meeting to be held on May 4, 2017.
Regarding investments in 2017,
Edenred already exercised its call option on an additional 17% of
UTA's capital, leading to a cash outflow of €83 million. It should
also be noted that UTA's minority shareholders hold put options on
the remaining 49% of the capital, to be recognized as a liability
in Edenred's financial statements for approximately €200
million.
2017
OUTLOOK
The Group expects its performance
in 2017 to be in line with the medium-term targets of its
three-year strategic plan Fast Forward:
-
Like-for-like growth of more
than 7% in operating revenue, driven by a mid-single-digit rise
in operating revenue for the Employee Benefits business line and a
double-digit increase in Expense Management operating revenue (on a
like-for-like basis).
-
Like-for-like growth of more
than 9% in operating EBIT.
-
Like-for-like growth of over
10% in funds from operations before non-recurring items
(FFO).
The Group expects continued strong
growth of its business in Europe in 2017. Latin America should
evolve broadly in line with 2016, with robust growth in Mexico
despite emerging macroeconomic uncertainties and a continued
contrasted performance in Brazil, shaped by weak growth in Employee
Benefits owing to rising unemployment but strong double-digit
growth in Expense Management.
In line with its strategic goals,
the Group will focus on delivering growth in operating revenue and
in operating EBIT while continuing to generate high levels of cash
flow and maintaining its "Strong Investment Grade" rating.
UPCOMING
EVENTS
April 12, 2017: First-quarter 2017
revenue
May 4, 2017: Annual Shareholders' Meeting
July 25, 2017: First-half 2017 results
October 13, 2017: Third-quarter 2017 revenue
___
Edenred, which invented the Ticket
Restaurant® meal voucher
and is the world leader in prepaid corporate services, designs and
manages solutions that improve the efficiency of organizations and
purchasing power to individuals.
By ensuring that allocated funds are used
specifically as intended, these solutions enable companies to more
effectively manage their:
-
Employee benefits (Ticket
Restaurant ®, Ticket
Alimentación, Ticket CESU, Childcare Vouchers, etc.)
-
Expense management process (Ticket
Car, Ticket Clean Way, Repom, etc.)
-
Incentive and reward programs (Ticket Compliments, Ticket Kadéos, etc.)
The Group also
supports public institutions in managing their social programs.
Listed on the Euronext Paris stock exchange,
Edenred operates in 42 countries, with close to 8,000 employees,
750,000 companies and public sector clients, 1.4 million affiliated
merchants and 43 million beneficiaries. In 2016, total issue volume
amounted to almost €20 billion.
Ticket
Restaurant® and all other
tradenames of Edenred products and services are registered
trademarks of Edenred SA.
Follow Edenred on
Twitter: www.twitter.com/Edenred
___
CONTACTS
Media
Relations
Anne-Sophie Sibout
+33 (0)1 74 31 86 11
anne-sophie.sibout@edenred.com
Jehan O'Mahony
+33 (0)1 74 31 87 42
jehan.omahony@edenred.com |
Investor and
Shareholder Relations
Aurélie Bozza
+33 (0)1 74 31 84 16
aurelie.bozza@edenred.com
|
APPENDICES
Glossary and list of references
needed for a proper understanding of financial information
-
Main terms
Like-for-like or organic growth
corresponds to comparable growth, i.e., growth at constant
exchange rates and scope of consolidation. This indicator reflects
the Group's business performance.
Changes in activity (like-for-like
or organic growth) represent changes in amounts between the current
period and the comparative period, adjusted for currency effects
and for the impact of acquisitions and/or disposals.
The impact of acquisitions is
eliminated from the amount reported for the current period and
changes in activity are calculated in relation to this adjusted
amount for the current period. The impact of disposals is
eliminated from the amount reported for the comparative period and
changes in activity are calculated in relation to this adjusted
amount for the comparative period. The sum of these two amounts is
known as the impact of changes in the scope of
consolidation or the scope effect.
The calculation of changes in
activity is translated at the exchange rate applicable in the
comparative period and divided by the adjusted amount for the
comparative period.
The currency effect is the
difference between the amount for the reported period translated at
the exchange rate for the reported period and the amount for the
reported period translated at the exchange rate applicable in the
comparative period
Issue volume corresponds to the
face value of prepaid checks and paper vouchers issued during the
period, plus the amount loaded on prepaid cards.
It is tracked for all vouchers and cards in circulation that are
managed by Edenred.
-
Alternative Performance
Measurement indicators included in the 2016 Annual Financial
Report
The alternative performance measurement indicators
outlined below are presented and reconciled with accounting data in
the Annual Financial Report.
Indicator |
Reference note in Edenred's 2016 consolidated financial
statements in the Annual Financial Report |
Operating revenue with issue volume |
Note
4.3 |
Operating revenue without issue volume |
Note
4.3 |
Operating revenue (total) |
Note
4.3 |
Financial revenue |
Note
4.3 |
EBIT |
Note
4.5 |
Net debt |
Note
6.5 |
Funds from operations (FFO) |
Consolidated statement of cash flows (Note 1.4) |
-
Alternative Performance
Measurement indicators not included in the 2016 Annual Financial
Report
Indicator |
Definitions and reconciliations with Edenred's 2016
consolidated financial statements |
Operating EBIT |
Corresponds
to EBIT adjusted for financial revenue.
As per the published consolidated financial statements, operating
EBIT for 2016 was €304 million, comprising:
|
Financial EBIT |
Corresponds
to financial revenue.
As per the published consolidated financial statements, financial
EBIT for 2016 was €66 million. |
Free cash flow |
Corresponds
to funds from operations minus cash used in recurring capital
expenditure.
At December 31, 2016, based on the consolidated statement of cash
flows:
- €410 million in net cash from operating
activities
- minus €58 million in cash outflows for recurring
capital expenditure
|
-
Method used to calculate the
main management ratios
Indicator |
Definitions and reconciliations with Edenred's 2016
consolidated financial statements |
Operating
flow-through ratio |
This ratio
reflects the operating EBIT margin arising on changes in activity
(like-for-like basis).
It corresponds to: (Like-for-like growth in operating
EBIT)/(Like-for-like growth in operating revenue).
At December 31, 2016, the operating flow-through ratio was 56.5%,
based on:
- Like-for-like operating EBIT growth: €47
million
- Like-for-like operating revenue growth: €83
million
|
Operating EBIT margin |
This ratio
reflects the operating EBIT margin based on reported
figures.
It corresponds to: (operating EBIT)/(operating revenue).
At December 31, 2016, the operating EBIT margin was 28.3%, based
on:
- Operating EBIT: €304 million
- Operating revenue: €1,073 million
|
Issue
volume
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|
2016 |
2015 |
In € millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
767 |
735 |
806 |
696 |
676 |
614 |
1,054 |
965 |
|
3,303 |
3,010 |
Rest of
Europe |
1,452 |
1,346 |
1,536 |
1,395 |
1,399 |
1,353 |
1,662 |
1,559 |
|
6,049 |
5,653 |
Latin
America |
1,872 |
2,284 |
2,252 |
2,274 |
2,564 |
2,030 |
2,978 |
2,264 |
|
9,666 |
8,852 |
Rest of
the world |
193 |
188 |
200 |
192 |
194 |
183 |
209 |
195 |
|
796 |
758 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
4,284 |
4,553 |
4,794 |
4,557 |
4,833 |
4,180 |
5,903 |
4,983 |
|
19,814 |
18,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
|
Change reported |
Change L/L |
In % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
4.4% |
4.2% |
15.8% |
6.2% |
10.0% |
3.4% |
9.3% |
4.5% |
|
9.7% |
4.6% |
Rest of
Europe |
7.9% |
8.4% |
10.1% |
11.5% |
3.4% |
7.7% |
6.6% |
8.1% |
|
7.0% |
8.9% |
Latin
America |
-18.0% |
7.5% |
-1.0% |
8.7% |
26.3% |
14.3% |
31.5% |
19.4% |
|
9.2% |
12.4% |
Rest of
the world |
2.7% |
12.1% |
4.2% |
11.1% |
5.8% |
6.0% |
7.2% |
11.8% |
|
5.0% |
10.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
-5.9% |
7.4% |
5.2% |
9.3% |
15.6% |
10.2% |
18.5% |
12.7% |
|
8.4% |
10.0% |
Operating revenue
with issue volume
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|
2016 |
2015 |
In € millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
32 |
31 |
33 |
30 |
28 |
26 |
49 |
45 |
|
142 |
132 |
Rest of
Europe |
73 |
68 |
77 |
71 |
70 |
66 |
84 |
78 |
|
304 |
283 |
Latin
America |
83 |
104 |
104 |
105 |
118 |
91 |
129 |
95 |
|
434 |
395 |
Rest of
the world |
9 |
10 |
10 |
9 |
9 |
10 |
10 |
9 |
|
38 |
38 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
197 |
213 |
224 |
215 |
225 |
193 |
272 |
227 |
|
918 |
848 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
|
Change reported |
Change L/L |
In % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
1.4% |
1.9% |
11.0% |
5.6% |
4.8% |
2.7% |
9.7% |
5.7% |
|
7.0% |
4.1% |
Rest of
Europe |
6.3% |
6.6% |
9.2% |
10.3% |
6.9% |
9.2% |
6.9% |
9.3% |
|
7.3% |
8.9% |
Latin
America |
-20.1% |
6.2% |
-0.8% |
6.6% |
29.4% |
12.5% |
36.2% |
14.1% |
|
10.0% |
9.7% |
Rest of
the world |
-2.2% |
7.9% |
1.6% |
8.6% |
2.4% |
2.4% |
-3.4% |
0.4% |
|
-0.5% |
4.8% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
-7.7% |
5.8% |
4.2% |
7.8% |
17.0% |
9.6% |
19.2% |
10.2% |
|
8.2% |
8.3% |
Operating revenue
without issue volume
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|
2016 |
2015 |
In € millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
13 |
6 |
14 |
20 |
12 |
11 |
14 |
13 |
|
53 |
50 |
Rest of
Europe |
10 |
11 |
9 |
8 |
9 |
9 |
16 |
17 |
|
44 |
45 |
Latin
America |
5 |
6 |
5 |
7 |
6 |
6 |
6 |
4 |
|
22 |
23 |
Rest of
the world |
8 |
8 |
9 |
9 |
9 |
8 |
10 |
9 |
|
36 |
34 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
36 |
31 |
37 |
44 |
36 |
34 |
46 |
43 |
|
155 |
152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
|
Change reported |
Change L/L |
In % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
129.0% |
4.4% |
-32.0% |
2.6% |
14.7% |
14.7% |
11.9% |
11.9% |
|
7.7% |
7.7% |
Rest of
Europe |
0.7% |
8.7% |
1.6% |
5.1% |
-8.7% |
0.0% |
-4.2% |
1.7% |
|
-3.0% |
3.5% |
Latin
America |
-23.6% |
4.4% |
-20.9% |
0.8% |
15.0% |
29.1% |
3.7% |
19.9% |
|
-8.3% |
12.3% |
Rest of
the world |
3.2% |
7.5% |
7.7% |
15.1% |
9.9% |
12.5% |
16.6% |
14.9% |
|
9.3% |
12.5% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
20.0% |
6.6% |
-16.0% |
5.2% |
6.7% |
12.2% |
5.5% |
9.3% |
|
2.4% |
8.2% |
Total operating
revenue
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|
2016 |
2015 |
In € millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
45 |
37 |
47 |
50 |
40 |
37 |
63 |
58 |
|
195 |
182 |
Rest of
Europe |
83 |
79 |
86 |
80 |
79 |
75 |
100 |
95 |
|
348 |
328 |
Latin
America |
88 |
110 |
109 |
111 |
124 |
97 |
135 |
99 |
|
456 |
418 |
Rest of
the world |
17 |
18 |
19 |
18 |
18 |
18 |
20 |
18 |
|
74 |
72 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
233 |
244 |
261 |
259 |
261 |
227 |
318 |
270 |
|
1,073 |
1,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
|
Change reported |
Change L/L |
In % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
21.1% |
2.2% |
-6.5% |
4.4% |
7.5% |
6.0% |
10.2% |
7.1% |
|
7.2% |
5.1% |
Rest of
Europe |
5.6% |
6.9% |
8.3% |
9.7% |
4.9% |
8.0% |
4.9% |
7.9% |
|
5.9% |
8.1% |
Latin
America |
-20.3% |
6.1% |
-2.0% |
6.3% |
28.6% |
13.4% |
34.7% |
14.3% |
|
9.0% |
9.8% |
Rest of
the world |
0.3% |
7.7% |
4.5% |
11.7% |
6.0% |
7.3% |
5.7% |
7.0% |
|
4.1% |
8.4% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
-4.2% |
5.9% |
0.8% |
7.3% |
15.5% |
9.9% |
17.0% |
10.0% |
|
7.3% |
8.3% |
Financial
revenue
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
In €
millions |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|
2016 |
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
3 |
4 |
3 |
3 |
2 |
3 |
2 |
3 |
|
10 |
13 |
Rest of
Europe |
4 |
4 |
4 |
5 |
5 |
6 |
4 |
4 |
|
17 |
19 |
Latin
America |
7 |
10 |
8 |
8 |
9 |
7 |
10 |
8 |
|
34 |
33 |
Rest of
the world |
2 |
1 |
1 |
1 |
1 |
0 |
1 |
2 |
|
5 |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
16 |
19 |
16 |
17 |
17 |
16 |
17 |
17 |
|
66 |
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
|
Change reported |
Change L/L |
In % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
-25.1% |
-25.1% |
-22.1% |
-22.1% |
-14.1% |
-14.1% |
-17.4% |
-17.4% |
|
-20.1% |
-20.1% |
Rest of
Europe |
-9.8% |
-9.1% |
-10.9% |
-8.9% |
-8.9% |
-5.2% |
-11.5% |
-7.4% |
|
-10.3% |
-7.7% |
Latin
America |
-19.4% |
7.1% |
-1.5% |
13.0% |
10.3% |
2.0% |
32.3% |
23.0% |
|
4.2% |
11.0% |
Rest of the
world |
2.5% |
14.3% |
5.1% |
14.4% |
5.6% |
8.4% |
9.4% |
16.3% |
|
5.7% |
13.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
-17.0% |
-3.1% |
-7.8% |
0.1% |
0.3% |
-2.5% |
9.6% |
6.8% |
|
-4.2% |
0.2% |
Total
revenue
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
|
2016 |
2015 |
In € millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
48 |
41 |
50 |
53 |
42 |
40 |
65 |
61 |
|
205 |
195 |
Rest of
Europe |
87 |
83 |
90 |
84 |
84 |
81 |
104 |
99 |
|
365 |
347 |
Latin
America |
95 |
120 |
117 |
120 |
133 |
104 |
145 |
107 |
|
490 |
451 |
Rest of
the world |
19 |
19 |
20 |
19 |
19 |
18 |
21 |
20 |
|
79 |
76 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
249 |
263 |
277 |
276 |
278 |
243 |
335 |
287 |
|
1,139 |
1,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
|
FY |
|
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
Change reported |
Change L/L |
|
Change reported |
Change L/L |
In % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France |
16.7% |
-0.3% |
-7.5% |
2.7% |
5.9% |
4.5% |
8.8% |
5.9% |
|
5.4% |
3.4% |
Rest of
Europe |
4.7% |
6.0% |
7.3% |
8.7% |
4.1% |
7.3% |
4.2% |
7.2% |
|
5.0% |
7.3% |
Latin
America |
-20.3% |
6.2% |
-1.9% |
6.7% |
27.2% |
12.6% |
34.5% |
15.0% |
|
8.6% |
9.9% |
Rest of
the world |
0.5% |
8.0% |
4.5% |
11.8% |
6.0% |
7.3% |
5.9% |
7.6% |
|
4.2% |
8.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
-5.2% |
5.2% |
0.2% |
6.9% |
14.5% |
9.1% |
16.6% |
9.9% |
|
6.5% |
7.8% |
EBIT
|
2016 |
2015 |
|
Change reported |
Change L/L |
In € millions |
|
|
|
|
|
|
|
|
|
France |
44 |
42 |
|
5.9% |
3.7% |
Rest of
Europe |
127 |
108 |
|
18.0% |
20.6% |
Latin
America |
200 |
202 |
|
-0.8% |
9.8% |
Rest of
the world |
13 |
12 |
|
-0.1% |
2.9% |
Worldwide
structures |
(14) |
(23) |
|
-37.9% |
-13.9% |
|
|
|
|
|
|
Total |
370 |
341 |
|
8.4% |
13.8% |
[1] Before
non-recurring items.
[2] Total
dividend as a percentage of net profit, Group share.
[3] The audit
has been completed and the auditors will issue their opinion before
the Registration Document is filed.
[4] At constant
scope of consolidation and exchange rates (corresponding to organic
growth).
[5] Shares
outstanding: 230,113 thousands of shares in 2016 versus 227,773
thousands of shares in 2015.
[7] The
unemployment rate in Brazil was around 12% at end-December 2016
compared to around 9% at end-2015 (source: Banco centrale do
Brasil).
[8] Ratio of
operating revenue with issue volume to total issue volume.
[9] The float
corresponds to the working capital requirement, or service vouchers
in circulation less trade receivables.
[10] Ratio of
the like-for-like change in operating EBIT to the like-for-like
change in operating revenue.
[11] BRL 500
million, equivalent to €146 million based on the closing EUR/BRL
exchange rate of 3.43 at December 31, 2016.
[12] Apple Pay
is compatible with the iPhone 6s, iPhone 6s Plus,
iPhone 6, iPhone 6 Plus, iPhone SE and Apple
Watch.
[13] Around
€4.1 million at the average 2016 exchange rate of BRL 3.861 for one
euro.
[14] The
transaction values UTA at €385 million (enterprise value on a
100% basis), or market capitalization of around €480 million
(100% basis).
[15] Around 2%
after the impact of purchase accounting adjustments.
[16] The
founders of UTA (the Eckstein and Van Dedem families) and Daimler
hold 34% and 15% of UTA's share capital respectively.
[17] With a 10%
discount.
Edenred 2016 Annual results_PR
EN
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: EDENRED S.A. via Globenewswire
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