Edenred (EDEN) Investor Update summary

Strategic progress and business transformation

• Nearly doubled total revenue and EBITDA from 2021 to 2024, outperforming mid-term targets and tripling the addressable market, including new segments like employee engagement and EV solutions.

• Beyond solutions now comprise 37–38% of operating revenue, reducing reliance on regulated activities and broadening the offering through acquisitions such as Reward Gateway, GOintegro, and Spirii.

• 93% of solutions are digitalized, processing over €100 billion in annual payment volume and supporting a larger, more diversified customer base.

• Generated over €2.5 billion in free cash flow (2022–2024), funding €1.4 billion in acquisitions and €800 million in dividends.

• Maintains a robust digital B2B2C platform and diversified business lines, with a focus on recurring revenue and platform subscription fees.

Financial performance and growth drivers

• Total revenue grew from €1.6 billion in 2021 to an estimated €2.9 billion in 2024, with like-for-like revenue growth of 21%, 23%, and 14% (consensus) over the past three years.

• EBITDA nearly doubled to ~€1.26 billion in 2024, with margins rising to ~44% and cumulative EBITDA of €3.2 billion over three years.

• Free cash flow conversion rate above 78% from 2022 to 2024, supporting increased shareholder returns.

• Adjusted EPS CAGR of 16% from 2021 to 2024.

• Core growth engine delivers an 11% CAGR after adjusting for exceptional items, driven by secular trends in talent, engagement, mobility, and digital payments.

Revenue model and operational strategy

• Revenue increasingly recurring, with platform subscription and set-up fees complementing volume-based streams.

• 65% of 2024 operating revenue growth from client acquisition, especially in under-penetrated SME markets; 35% from portfolio expansion via upsell and cross-sell.

• Net retention rate above 104% in Benefits and Engagement, with significant cross-sell and upsell potential.

• Indirect sales channels and digital platforms drive SME and large account acquisition.

• High fixed cost structure (about 60%) enables significant scale effects and operating leverage, with margin expansion as scale increases.