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Seven reasons to invest in the Edenred Group

Global leader in payment solutions for the working world, employees and merchants

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1. Position as a global leader in relatively untapped markets with excellent development prospects 1. Position as a global leader

Edenred, the global leader in payment solutions for the working world, connects 830,000 corporate clients, 50 million employee users and 2 million partner merchants across 46 countries. Thanks to its global technology platform, the Group managed 2.5 billion transactions in 2018, primarily carried out via mobile applications, online platforms and cards, and representing more than €28 billion in business volume.
Edenred’s 10,000 staff are driven by a commitment to improving employees’ quality of life, increasing companies’ efficiency and boosting merchants’ revenues. They achieve this through three business lines:

  • Employee Benefits (food, meals, well-being, leisure, culture and human services)
  • Fleet & Mobility Solutions (fuel, tolls, maintenance and business travel)
  • Complementary Solutions, including Corporate Payment Services (virtual payment cards, identified wire transfers and supplier payments), Incentives & Rewards (gift cards and platforms, and incentive programs), and Public Social Programs.

Thanks to its agile, innovative approach, leading-edge technological expertise and close contact with each local ecosystem, Edenred seizes opportunities for development in all countries and all of its business lines. These offer significant potential, as the Group operates in underpenetrated markets and benefits from favorable demographic and social fundamentals, such as the formalization of the economy and increasing numbers of people in work worldwide.

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2. A strategy of sustainable and profitable growth 2. A strategy of growth

Through its three business lines, Edenred works at the center of a virtuous ecosystem by providing all of its stakeholders with tangible solutions, including:  

  • Tools to incentivize teams and optimize the performance of corporate clients keen to be attractive employers;
  • Simple, practical solutions to make daily life easier for employees looking to improve their purchasing power and optimize their business expenses;
  • Additional recurring revenue for partner merchants in the Edenred network who want to boost customer loyalty and secure their transactions;
  • Traceability of funds allocated by public authorities to improve the effectiveness of their social and economic policies.

Building on this unique positioning in promising markets, the Group follows a strategy for profitable and sustainable growth, aiming to:

  • Seize growth opportunities that result from increased digitalization of Employee Benefits in order to develop new services and reinforce Edenred’s market-leading position;
  • Become a global leader in the Fleet & Mobility Solutions market, mainly by expanding its presence in Europe and Latin America;
  • Capitalize on the Group’s technological expertise and know-how to develop value-added solutions for emerging B2B transactional ecosystems such as Corporate Payment.

This strategy has proven highly effective, with the Group substantially outperforming year after year its annual organic growth targets set for three key indicators:

  • Like-for-like operating revenue growth of more than 7%
  • Like-for-like operating EBIT growth of more than 9%
  • Like-for-like growth in funds from operations (FFO) of more than 10%

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3. A business model generating strong cash flows 3. Business model

Edenred’s business model is underpinned by a profitable and sustainable growth profile with significant operating leverage. Its operations are not capital-intensive and generate substantial cash flows.
What makes the model unique is that the majority of the solutions developed by Edenred are prepaid, which leads to a structurally negative working capital requirement.
As a result, over the last three years, the Group has recorded annual average like-for-like growth in funds from operations before other income and expenses (FFO) of 18%, exceeding its annual target of more than 10%.
This means the Group is able to apply a balanced capital allocation policy. Edenred regularly completes strategic acquisitions while taking a generous approach to shareholder return and maintaining a healthy level of debt, which has earned it a “strong investment grade” (BBB+) rating by Standard & Poor’s.  

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4. Considerable technological expertise and strong innovation capacity in payments 4. Technological and innovative expertise

As a vanguard innovator always striving to improve user experience, Edenred has developed a leading-edge global technology platform for payments. In 2018, the Group managed 2,5 billion transactions and €28 billion in business volume, mainly carried out by card, mobile or online platforms.
This technological expertise is a major competitive advantage for the Group, giving it an unparalleled capacity for innovation and a high level of agility in terms of deployment processes for value-added services, while keeping transactions made via its platforms totally secure.
The rapid international development of solutions for payments via mobile devices, APIs and online platforms is speeding up the growth of its subsidiaries as well as fintechs that use Edenred’s advanced technology. 

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5. A generous shareholder value policy based on a solid financial position 5. Shareholder value policy

Edenred’s ambition is to maximize value creation for all of its stakeholders, including shareholders, through a balanced deployment of capital between investments and shareholder return, in line with the Group’s growth profile.
With this in mind, Edenred is committed to paying at least 80% of its net profit, Group share in dividends. A dividend of €0.86 per share in respect of 2018 has been approved by the Shareholders Meeting of May 14, 2019.
At the same time, Edenred regularly completes strategic acquisitions with a view to reinforcing its standing as a world leader in Employee Benefits, consolidating its position as a global provider of Fleet & Mobility Solutions and developing its innovative Corporate Payment services. 

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6. 10,000 employees driving forward a Group committed to society 6. 10,000 employees committed

The 10,000 employees located across Edenred’s 46 host countries adhere to a set of five shared values that underpin the Group’s performance: passion for customers, respect, imagination, simplicity and entrepreneurial spirit.
Since it was founded in 1962, Edenred has also been committed to making the world of work a better place for everyone. With this in mind, the Group defined the fundamental principles of its Environmental, Social and Governance (ESG) policy, “People, Planet, Progress”, as improving the lives of individuals, preserving the planet and creating value responsibly. Edenred’s employees are ambassadors for its ambitions.

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7. A responsible governance structure that creates value 7. A responsible governance

Edenred’s governance bodies, selected for the various types of expertise needed to ensure its proper development, guarantee the relevance and compliance of all decisions made by the Group and actions carried out as part of its strategy.
The Board of Directors, which comprises ten members and one observer, has three committees to assist it with its decisions and ensure the Company’s responsible development.
The 13-member Executive Committee brings together operational representatives from the major regions of the world, as well as functional managers who provide expertise to support operations.
In addition, Edenred’s ESG initiatives, led by all of management, are co-constructed by the network of human resources and sustainable development correspondents from all subsidiaries across the 46 countries where Edenred operates.

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