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Edenred’s Key figures and indicators

Everything about Edenred's business model.

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Operating revenue Operating revenue

Operating revenue includes:

Commissions paid by corporate clients ;
Commissions paid by partner merchants when benefits and services used by employees are presented for reimbursement;
revenue from employee users ;
Profits on vouchers that are lost or expire without being reimbursed ; and
revenue generated by value added businesses such as incentive programs, human services and event-related services. The corresponding revenue is the amount billed to the corporate client, and is recognized on delivery of the solutions.

RevenueRevenue

	2017 in € million	2016 in € million	Reported growth	Like-for-like growth
Operating revenue	1,272	1,073	+18.6%	+9.1%
Financial revenue	67	66	+1.1%	+0.0%
Total revenue	1,339	1,139	+17.6%	+8.6%

Business model Business model

Edenred is pursuing its transformation, in line with its Fast Forward strategic plan unveiled at a dedicated event in October 2016. Fast Forward is designed to realign the current business base while laying the foundations for new sources of profitable, sustainable growth.

Through this ambitious strategic plan, the Group wants to continue to grow its Employee Benefits business, broaden its presence in Fuel & Mobility Solutions and expand its Corporate Payment activities, which are included in the Complementary Solutions business line.

The Group’s new business model is set out in the diagram below:

EBIT EBIT

	2017 in € million	2016 in € million	Reported growth	Like-for-like growth
Operating EBIT	370	304	+21.9%	+16.0%
Financial EBIT	67	66	+1.1%	+0.0%
Total EBIT	437	370	+18.1%	+13.1%

Total EBIT corresponds to operating profit before other income and expenses, equal to operating EBIT and financial EBIT, equal to financial revenue.

Funds from operations (FFO) Funds from operations (FFO)

	2017 in € million	2016 in € million
EBITDA	510	427
Net financial expense	(50)	(58)
Income tax paid	(113)	(97)
Non cash income and expenses included in EBITDA	30	19
Dividends received from investment in associates and joint ventures	11	8
Funds from operations before other income and expenses	388	299

	2017	2016
Reported growth in FFO	+29.8%	+6.5%
Like-for-like growth in FFO	+21.8%	+15.4%

The Edenred’s business model generates a large amount of FFO.

Income statement Income statement

	2017 in € million (excluded number of shares)	2016 in € million (excluded number of shares)
Total revenue	1,339	1,139
Of which operating revenue	1,272	1,073
Of which financial revenue	67	66
Total EBIT	437	370
Of which operating EBIT	370	304
Net profit - Group Share	247	180
Weighted average number of shares outstanding (in thousands)	233,064	230,113
Earnings per share – Group share	1,06	0,78

Balance sheet Balance sheet

	2017 in € million	2016 in € million
Goodwill	994	904
Intangible assets	433	313
Property, plant and equipment	46	38
Other non-current assets	160	261
Working capital Assets	2,103	1,741
Restricted funds	1,127	942
Cash and cash equivalents	1,440	1,433
Total assets	6,303	5,632
Equity	(1,287)	(1,161)
Provisions and deferred tax	219	206
Working capital liabilities	5,218	4,566
Gross debt	2,153	2,021
Total liabilities	6,303	5,632

Key ratios and indicators Key ratios and indicators

Three key indicators in line with annual medium-term targets from the Fast Forward strategic plan:

• Like-for-like operating revenue growth > + 7%, resulting from a mid-single digit like-for-like growth of operating revenue in Employee benefits and a double-digit like-for-like growth of operating revenue in Fleet & Mobility Solutions;

• Like-for-like operating EBIT growth > + 9%;

• Like-for-like Funds from operations growth > + 10%.

The Group’s estimated ratio of adjusted funds from operations to adjusted net debt is 42% compared to 34% in 2016, above the 30% threshold supporting the “Strong Investment Grade” rating based on Standard & Poor’s criteria.

	2017	2016
Like-for-like operating revenue growth	+9.1%	+8.3%
Like-for-like operating EBIT growth	+22%	+17,3%
Like-for-like FFO growth	+29.8%	+15.4%
Adjusted FFO / adjusted net debt	42%	34%

More information about financial results and quarterly information, click here.