Edenred’s Key figures and indicators
Everything about Edenred's business model.
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Issue volume Issue volume
The issue volume corresponds to the nominal value of the prepaid service vouchers issued by the Group during the period and to the amount charged on the prepaid cards.
The average annual growth of the Group’s issue volume was +10.4% for the period 2010-2016.
Total issue volume 2016: €19.8 billion
Business model Business model
Employee Benefits is the Group’s traditional business. That is why the key financial indicator has long been issue volume, which is the total face value of preloaded services provided to client companies and public institutions. By contrast, Expense Management and Corporate Payments are not preloaded businesses. They therefore have a different business model characterized by a business volume that differs from issue volume.
In line with Edenred’s transformation, and starting in 2017, the most relevant indicator for measuring the Group’s business volume will therefore be operating revenue, the first common performance indicator for its various businesses.
The Group’s new business model is set out in the diagram below:
Issue volume corresponds to the total face value of the prepaid service vouchers and cards issued (for example Ticket Restaurant®) by Edenred to its corporate and public sector clients.
This issue volume is reimbursed to the merchants (restaurants and other affiliates) several weeks later. Clients and merchants pay fees by the time of the transaction.
Total client and merchant fees + lost & expired prepaid solutions correspond to the operating revenue, the most important part of the total revenue.
Financial revenue generated by investing the float corresponding to the cash received from clients for prepaid services that has not yet been reimbursed to affiliated merchants, contributes also to the total revenue.
Revenue Revenue
| 2016 REVENUE | 2016 | 2015 | Growth like-for-like |
| Operating Revenue | 1,073 | 1,000 | +8.3% |
| Financial Revenue | 66 | 69 | +0.2% |
| Total Revenue | 1,139 | 1,069 | +7.8% |
Funds from operations Funds from operations
The operating cash flow before one-time items (FFO) is calculated as follows:
Net financial expense
| IN MILLION EUROS | 2016 | 2015 |
| EBITDA | 427 | 388 |
| Net financial expense | (58) | (47) |
| Income tax | (97) | (104) |
| Elimination of non-cash revenue and expenses included in EBITDA | 19 | 19 |
| Elimination of provision movement included in net financial expense and income tax | 0 | 1 |
| Dividends received from equity method companies | 8 | 23 |
| Funds from Operations before non-recurring items (FFO) | 299 | 280 |
| IN PERCENTAGE | 2016 | 2015 |
| Like-for-like FFO growth | +15.4% | +12.5% |
The Group’s economic model is a powerful generator of operating cash flow before one-time items (FFO).
During the period from 2010 to 2016, its average annual growth was 15.4%.
Financial statements Financial statements
| IN MILLION EUROS | 2016 | 2015 |
| Issue volume | 19,814 | 18,273 |
| % like-for-like Growth | +10% | +8.7% |
| Revenue | 1,139 | 1,069 |
| Operating revenue | 1,073 | 1,000 |
| Financial revenue | 66 | 69 |
| EBIT | 370 | 341 |
| Net profit - Group Share | 180 | 177 |
| Average numbers of shares (in million shares) | 230 | 228 |
| Net profit per share | 0.78 | 0.78 |
Balance sheet Balance sheet
| IN MILLION EUROS | 2016 | 2015 |
| Intangible assets | 313 | 182 |
| Property, plant & equipment | 38 | 37 |
| Other non-current assets | 1,165 | 824 |
| Working capital Assets | 1,741 | 1,264 |
| Restricted funds | 942 | 858 |
| Cash & cash equivalents | 1,433 | 985 |
| Total assets | 5,632 | 4,150 |
| Total shareholders' equity and minority interests | (1,161) | (1,442) |
| Provisions and deferred tax | 206 | 139 |
| Working capital liabilities | 4,566 | 3,831 |
| Gross debt | 2,021 | 1,622 |
| Total liabilities | 5,632 | 4,150 |
Key ratios and indicators Key ratios and indicators
The Group takes the view that the key indicators of its performance are:
- the growth in its issue volume on a comparable basis,
- the growth of its cash flow before one-time items (FFO) on a comparable basis.
| 2016 | 2015 | |
| Like-for-like growth in issue volume | +10% | +8.7% |
| Like-for-like growth in Funds from Operations | +15.4% | +12.5% |
| Adjusted FFO / Adjusted net debt(2) | 34% | 34% |
(1) Operating EBIT : EBIT excluding financial revenue.
(2) According to Standard & Poor’s methodology.