Elior Group: Results

Strong business performance

Impact of preparing for the future

PARIS--(BUSINESS WIRE)-- Regulatory News:

• 8.9% revenue growth, of which 3.6% organic growth excluding the impact of voluntary contract exits
• The United States is the Group's second-biggest revenue contributor
• Adjusted EBITDA up 5.9% and adjusted EBITDA margin comes in at 8.3%
• Adjusted earnings per share down 2.9% to €1.02
• Recommended dividend of €0.42 with a stock dividend option

Elior Group (Paris: ELIOR) (Euronext Paris – ISIN: FR 0011950732), one of the world's leading operators in the catering and support services industry, today released its consolidated results for FY 2016-2017, corresponding to the twelve months ended September 30, 2017.

(in € millions)		FY 2016-2017		FY 2015-2016		Year-on-yearchange
Revenue		6,422		5,896		+ 8.9%
Adjusted EBITDA		531		501		+ 5.9%
As a % of revenue		8.3%		8.5%		- 20 bps
Profit attributable to owners of the parent (reported)		114		135		- 15.6%
Reported earnings per share (in €)		0.66		0.78		- 15.4%
Adjusted earnings per share (in €)		1.02		1.05		- 2.9%
Dividend to be recommended at the next AGM (€)		0.42		0.42		-

Commenting on these results, Pedro Fontana, Elior Group's Deputy Chief Executive Officer, said, "The 2016-2017 fiscal year brought with it a number of operational challenges, which were particularly concentrated in the second half. These included an exceptionally unfavorable calendar effect for contract catering, the renewal of a significant number of our motorways contracts in France, and the continued Group-wide rollout of technological transformation programs and upgrades to our information systems. Despite this context, we pursued our expansion drive, both from a commercial standpoint and through a number of strategic acquisitions, notably in the United States. Organic revenue growth came to 3.6%, excluding the impact of voluntary contract exits, and total growth for the year was 8.9%, confirming the quality of our offerings and the strong momentum in our markets. Adjusted EBITDA rose 5.9%. The action plans drawn up to offset the adverse effects of the year's operational challenges were only partially carried out. And added to that, there was the effect of unforeseeable external events in the fourth quarter, including Hurricane Irma in the United States. Over the last three years, the Group has considerably strengthened its international presence, especially in the United States, and has reinforced its leadership positions in France, Spain and Italy. We are now well positioned in our three core activities of contract catering, services and concession catering where there are numerous opportunities to be tapped. All of our teams are ready to move forward with both rigor and enthusiasm to write a new chapter of profitable growth for the Group."

Business development

Business development was buoyant in FY 2016-2017. New contracts signed during the year represent total annual revenue (estimated on a full-capacity basis) of around €700 million, with €500 million for contract catering & services and €200 million for concession catering. During the fourth quarter alone, the Group won major contracts with the following clients:

• Contract catering & services: the Spring office building in Nanterre, the municipality of Saint-Cloud, the Colisée group and the U Arena in France; the Maritime Academy Trust in the United Kingdom; the head office of Barings in the United States; Leon Hospital in Spain; and the municipalities of Lodi and Venaria Reale in Italy.
• Concession catering: the airports in Minneapolis (United States) and Toulouse (France), and the French motorway operators, Vinci and APRR.

The retention rate for contract catering was 93% at end-September 2017, with this figure still reflecting the impact of voluntary contract exits.

External growth

During the fourth quarter of FY 2016-2017, the Group carried out two targeted acquisitions in contract catering in the United States, representing combined annual revenue of around $40 million.

Revenue

Consolidated revenue totaled €6,422 million in FY 2016-2017. The 8.9% year-on-year increase reflects (i) 2.3% organic growth, (ii) acquisition-led growth of 7.3%, and (iii) a negative 0.6% currency effect.

The 2.3% organic growth figure includes a 1.3% adverse impact of voluntary contract exits and an estimated 0.7% unfavorable calendar effect. Excluding the impact of voluntary contract exits, organic growth came to 3.6%.

The portion of revenue generated by international operations rose to 56% from 52% in FY 2015-2016, with the United States now accounting for 19% of the Group's total revenue figure.

Contract catering & services revenue was up €420 million, or 9.9%, on the FY 2015-2016 figure, coming in at €4,648 million and representing 72% of total consolidated revenue.

Organic growth for this business was 1.2%, reflecting (i) a negative 1.5% impact resulting from the Group's strategy of withdrawing from low- and non-profit-making contracts in Europe, and (ii) an estimated 1.0% adverse currency effect.

Recent acquisitions contributed revenue of €402 million – including €268 million generated in the United States – representing external growth of 9.5%.

The currency effect during the year was a negative 0.8%.

Revenue generated in France totaled €2,171 million. Organic growth amounted to 0.3 %, taking into account the unfavorable impact of voluntary contract exits (approximately 1.0%) and an estimated 1.4% negative calendar effect.

• In the business & industry market, revenue was boosted by strong business development and an increase in average customer spend, which offset the unfavorable calendar effect.
• Revenue generated in the education market was stable compared with FY 2015-2016, as the effect of the higher pace of organic growth in the fourth quarter (led by the start-up of new contracts) was offset by an extremely adverse calendar effect, especially in the second half of the year.
• In the healthcare market, public policy resulted in budget squeezes for hospitals and other facilities, which created a difficult operating environment that led to the Group choosing its bid proposals more selectively and voluntarily withdrawing from certain contracts.

Revenue for the international segment advanced 19.9% to €2,476 million. Organic growth for this segment was 2.2%, including an approximately 2.0% negative impact from voluntary contract exits in Europe. Recent acquisitions generated additional growth of 19.4% during the year, mainly in the United States and the United Kingdom, whereas the currency effect was a negative 1.6%.

• In Spain, the business & industry and education markets performed well, driven mainly by buoyant business development.
• The United States reported strong organic growth, spurred by the start-up of new contracts in all markets.
• In Italy, revenue was hampered by an unfavorable calendar effect in the second half as well as by the impact of voluntary contract exits, especially in the education and healthcare markets.
• Revenue in the United Kingdom felt the benefits of the ramp-up of new contracts, particularly in the healthcare market in the fourth quarter.

Concession catering revenue rose 6.4% year on year to €1,774 million, representing 28% of total consolidated revenue.

Organic growth for the year amounted to 5.0%. Changes in the scope of consolidation pushed up revenue by 1.6% whereas changes in exchange rates had a 0.2% negative effect.

Revenue generated in France totaled €672 million, up 2.2% year on year overall, with acquisition-led growth coming in at 4.1%.

• The motorways market reported a revenue decline, mainly because certain contracts were not renewed and renovation works were carried out at a number of sites whose contracts have been renewed.
• Revenue was also lower in the airports market. The loss of the contract for the fast-food outlets at terminals E and F at Paris-Charles-de-Gaulle airport no longer affects this market’s basis of comparison (since February 2017), but revenue was weighed down during the year by (i) the slump in air traffic at the South Terminal of Orly airport as a result of airlines being assigned differently at the airport's terminals, and (ii) the end of the concession contract for Terminal 2 at Nice airport in June 2017.
• The railway stations, city sites & leisure market reported a revenue increase, powered by the start-up of new contracts in the railway stations segment and the full-year impact of new points of sale acquired in May 2016. This increase was achieved despite the fact that some exhibition center contracts came to an end.

In the international segment, revenue amounted to €1,103 million, up 9.1% year on year, breaking down as 9.4% in organic growth and a 0.3% negative currency effect.

• The motorways market felt the positive effects of higher traffic volumes in Spain and Portugal (but particularly Portugal), as well as the opening of new service plazas in Germany, which more than offset the impact of the closure of several service plazas in Italy.
• Revenue in the airports market was lifted by increasing traffic volumes – especially in Mexico, Spain, Portugal and the United States – and the opening of new points of sale in Spain (Bilbao, Fuerteventura and Ibiza), Portugal (Faro), the United States (LAX) and Mexico.

Adjusted EBITDA, adjusted EBITA and recurring operating profit

Consolidated adjusted EBITDA rose 5.9% year on year to €531 million and represented 8.3% of revenue (including the estimated 5 basis-point dilutive impact of acquisitions carried out during the year).

Adjusted EBITDA for the contract catering & services business line climbed to €342 million from €325 million in FY 2015-2016 and represented 7.4% of revenue.

• In France, adjusted EBITDA totaled €180 million. As a percentage of revenue, it was down slightly on FY 2015-2016 due to the unfavorable calendar effect, higher structural costs (notably related to IT programs) and the start-up of numerous contracts where the month of September is particularly important, notably in the education market.
• In the international segment, adjusted EBITDA rose by €23 million to €162 million but as a percentage of revenue it narrowed slightly year on year. For the absolute value figure, increases in Spain, the United Kingdom and the United States partially offset the decrease posted by Italy due to a negative calendar effect and the impact of the new contract signed with the Italian Ministry of Defense.

Concession catering adjusted EBITDA came to €193 million (versus €183 million in FY 2015-2016) and represented 10.9% of revenue, down slightly year on year.

• In France, adjusted EBITDA edged down to €70 million from €76 million, reflecting the start-up of new railway station contracts, the impact of works carried out following the renewal of motorway contracts, and higher concession fees.
• In the international segment, adjusted EBITDA rose by €16 million to €123 million. This represented a significant year-on-year increase in adjusted EBITDA margin, which was propelled by higher revenue figures in all regions in Europe and the Americas.

Consolidated adjusted EBITA totaled €342 million, down year on year as a result of increases in depreciation and amortization expense (up €31 million) and net additions to provisions for recurring items (€5 million higher). As a percentage of revenue, depreciation and amortization expense rose by 20 basis points, mainly due to higher capital expenditure related to the transformation plan.

Recurring operating profit, including share of profit of equity-accounted investees, totaled €310 million compared with €331 million in FY 2015-2016. The FY 2016-2017 figure notably includes €9 million in share-based compensation recorded in personnel costs (versus €4 million in FY 2015-2016) and €23 million in amortization of intangible assets related to acquisitions (versus €13 million in FY 2015-2016).

Attributable profit for the period

Non-recurring items represented a net expense of €52 million and primarily included €37 million in reorganization costs, €7 million in provisions for disputes, and €5 million in acquisition-related costs.

At €62 million, net financial expense was slightly lower than in FY 2015-2016, reflecting a decrease in non-recurring expenses (€6 million versus €13 million), which in FY 2016-2017 were mainly related to the amortization of financial assets. Despite the growing costs of US-dollar denominated debt, recurring financial expenses were also lower year on year thanks to the redemption of the high yield bonds and the repricing of the Group's senior debt that took place in January 2016.

The Group's income tax expense rose to €78 million in FY 2016-2017 from €74 million the previous year. The FY 2016-2017 amount included a €14 million non-recurring non-cash charge resulting from an adjustment to the value of deferred tax assets in view of the upcoming reduction in the corporate tax rate in France. The overall tax rate therefore represented 34% including the CVAE tax.

The Group reported a €1 million loss from discontinued operations in FY 2016-2017, mainly relating to non-strategic operations run by Areas in Northern Europe. Most of these operations were sold in the first half of 2017.

Attributable profit decreased 15.6% year on year to €114 million and adjusted attributable profit came to €176 million including the negative impact of the above-described €14 million non-recurring tax charge. Adjusted earnings per share edged down to €1.02.

Cash flow and debt

Free cash flow totaled €122 million, down €51 million on FY 2015-2016 as a result of a €109 million increase in capital expenditure, which was chiefly due to (i) the transformation plan (€32 million), (ii) contract renewals in the concession catering business in France (€38 million), and (iii) strong expansion across all of the Group's activities over the last two fiscal years.

This additional capital spending has provided the Group with the following:

• For the concession catering business: a significant extension to the life of our contract portfolio in the railway stations and motorways markets in France, thanks to new contracts won that have terms of between 8 and 15 years and which will become profitable in the coming years.
• For the transformation plan: the ability to implement our BtoC strategy over the medium and long term using new digital applications, IT systems and data analysis tools.

Net debt totaled €1,628 million at September 30, 2017, representing a €78 million improvement on the September 30, 2016 figure. This year-on-year decrease was achieved thanks to the generation of €122 million in free cash flow and a new €195 million off balance-sheet securitization program, the combined effects of which more than offset the cash outflows related to (i) acquisitions and purchases of equity interests (€128 million), (ii) the dividend payment (€73 million), and (iii) financial expenses (€49 million). The Group's leverage ratio stood at 3.0x EBITDA at September 30, 2017, compared with 3.2x one year earlier.

Outlook

Over the past three years, the Group has strengthened its leadership positions and now has a solid and profitable platform with the diversified global reach that it needs to continue its expansion.

- In contract catering & services, we are number one in France, Italy and Spain, number four in India and the United Kingdom and number five in the United States.

- In concession catering, we are number one in France and Spain, number one in the airports market in Italy, and number two in the motorways market and growing rapidly in airports in the United States.

For the Group's Chief Executive Officer, Philippe Guillemot, and his management teams, the priorities for FY 2017-2018 will be high-quality performance, the ramp up of new contracts, and rigorous management.

Innovation will remain at the heart of our business development strategy and, through a structured and integrated process, it will help increase our operational efficiency and enhance both the quality of our offerings and the experience we provide to our clients and guests.

The Group also intends to continue to grow, both organically and through targeted acquisitions, notably in the United States.

We expect FY 2017-2018 to be another year of growth with:

• Organic growth of at least 3%.Acquisitions completed to date should add over 2% to revenue.
• A stable adjusted EBITDA margin at constant perimeter and forex.
• A slight increase in adjusted earnings per share.

Events after the reporting date

On November 30, 2017, the Group announced that it had acquired CBM Managed Services, strengthening its positions in the correctional facilities catering market in the United States.

In line with the Group's dividend policy, at the next Annual General Meeting the Board of Directors will recommend the payment of a €0.42 per-share dividend. Taking into account the fact that capex will remain high in FY 2017-2018, and with a view to pursuing the Group's external growth strategy, creating shareholder value, the Board will recommend a stock dividend option benefiting from a 5% discount on the share price.

A press conference will be held on Wednesday, December 6, 2017 at 9.30 a.m. (CET), which will also be accessible by webcast on the Elior Group website and by phone by dialing one of the following numbers:

France: + 33 (0) 1 76 77 22 74United Kingdom: + 44 (0) 33 0336 9105United States: + 1 323 794 2093

Access code: 7337962

Financial calendar:

• January 25, 2018: First-quarter FY 2017-2018 revenue – issue of press release before the start of trading
• May 29, 2018: First-half FY 2017-2018 results – issue of press release before the start of trading and conference call
• July 25, 2018: Revenue for the first nine months of FY 2017-2018 – issue of press release before the start of trading

Appendix 1: Revenue by business line and geographic regionAppendix 2: Revenue by geographic regionAppendix 3: Revenue by marketAppendix 4: Adjusted EBITDA by business line and geographic regionAppendix 5: Adjusted EBITA by business line and geographic regionAppendix 6: Simplified cash flow statementAppendix 7: Consolidated financial statementsAppendix 8: Definition of alternative performance indicators

The English-language version of this document is a free translation from the original, which was prepared in French. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions expressed therein, the original language version of the document in French takes precedence over this translation.

About Elior Group

Founded in 1991, Elior Group has grown into one of the world's leading operators in the catering and support services industry, and has become a benchmark player in the business & industry, education, healthcare and travel markets. Now operating in 16 countries, the Group generated €6,422 million in revenue through 25,000 restaurants and points of sale in FY 2016-2017. Our 127,000 employees serve 5.5 million people on a daily basis, taking genuine care of each and every one by providing personalized catering and service solutions to ensure an innovative customer experience.

We place particular importance on corporate social responsibility and have been a member of the United Nations Global Compact since 2004. The professional excellence of our teams, as well as their unwavering commitment to quality and innovation and to providing best in-class service is embodied in our corporate motto: "Time savored".

For further information please visit our website (http://www.eliorgroup.com) or follow us on Twitter (@Elior_Group)

Appendix 1: Revenue by Business Line and Geographic Region
			Q12016-2017			Q12015-2016			Organic growth			Changes inscope ofconsolidation			Currencyeffect			Totalgrowth
(in € millions)
France			556			558			-0.4%			0.0%			0.0%			-0.4%
International			631			535			0.6%			19.8%			-2.6%			17.9%
Contract catering & services			1,187			1,093			0.2%			9.7%			-1.3%			8.5%
France			161			154			-3.4%			8.5%			0.0%			5.1%
International			246			228			8.7%			0.0%			-1.0%			7.7%
Concession catering			407			382			3.9%			3.4%			-0.6%			6.7%
GROUP TOTAL			1,594			1,475			1.1%			8.1%			-1.1%			8.1%

			Q22016-2017			Q22015-2016			Organic growth			Changes inscope ofconsolidation			Currencyeffect			Totalgrowth
(in € millions)
France			593			573			3.5%			0.0%			0.0%			3.5%
International			653			528			4.2%			20.1%			-0.6%			23.7%
Contract catering & services			1,246			1,101			3.8%			9.6%			-0.3%			13.2%
France			145			133			-0.6%			9.1%			0.0%			8.5%
International			228			211			8.2%			0.0%			0.2%			8.3%
Concession catering			373			344			4.8%			3.5%			0.1%			8.4%
GROUP TOTAL			1,619			1,445			4.1%			8.2%			-0.2%			12.0%

			Q32016-2017			Q32015-2016			Organic growth			Changes inscope ofconsolidation			Currencyeffect			Totalgrowth
(in € millions)
France			549			557			-1.9%			0.4%			0.0%			-1.5%
International			648			525			0.1%			23.8%			-0.6%			23.3%
Contract catering & services			1,197			1,083			-0.9%			11.7%			-0.3%			10.5%
France			169			168			-0.7%			1.0%			0.0%			0.3%
International			293			258			12.9%			0.0%			0.7%			13.6%
Concession catering			462			427			7.5%			0.4%			0.4%			8.3%
GROUP TOTAL			1,659			1,509			1.5%			8.5%			-0.1%			9.9%

			Q42016-2017			Q42015-2016			Organic growth			Changes inscope ofconsolidation			Currencyeffect			Totalgrowth
(in € millions)
France			473			474			-0.3%			0.0%			0.0%			-0.3%
International			545			476			3.9%			13.2%			-2.6%			14.4%
Contract catering & services			1,018			951			1.8%			6.6%			-1.3%			7.1%
France			197			202			-2.5%			0.0%			0.0%			-2.5%
International			336			314			7.8%			0.0%			-1.0%			6.8%
Concession catering			532			516			3.8%			0.0%			-0.6%			3.2%
GROUP TOTAL			1,550			1,466			2.5%			4.3%			-1.1%			5.7%

			12 months2016-2017			12 months2015-2016			Organicgrowth			Changes inscope ofconsolidation			Currencyeffect			Totalgrowth
(in € millions)
France			2,171			2,163			0.3%			0.1%			0.0%			0.4%
International			2,476			2,065			2.2%			19.4%			-1.6%			19.9%
Contract catering & services			4,648			4,228			1.2%			9.5%			-0.8%			9.9%
France			672			657			-1.9%			4.1%			0.0%			2.2%
International			1,103			1,011			9.4%			0.0%			-0.3%			9.1%
Concession catering			1,774			1,668			5.0%			1.6%			-0.2%			6.4%
GROUP TOTAL			6,422			5,896			2.3%			7.3%			-0.6%			8.9%

Appendix 2: Revenue by Geographic Region
			Q1 2016-2017			Q1 2015-2016			Organic growth			Changes inscope ofconsolidation			Currency effect			Total growth
(in € millions)
France			717			712			-1.0%			1.8%			0.0%			0.8%
Other European countries			560			546			0.0%			5.6%			-3.0%			2.5%
Rest of the world			316			217			10.9%			34.9%			0.1%			45.8%
GROUP TOTAL			1,594			1,475			1.1%			8.1%			-1.1%			8.1%

			Q2 2016-2017			Q2 2015-2016			Organic growth			Changes inscope ofconsolidation			Currency effect			Total growth
(in € millions)
France			738			707			2.7%			1.7%			0.0%			4.4%
Other European countries			552			512			3.2%			6.3%			-1.8%			7.8%
Rest of the world			329			227			10.1%			32.5%			2.7%			45.2%
GROUP TOTAL			1,619			1,445			4.1%			8.2%			-0.2%			12.0%

			Q3 2016-2017			Q3 2015-2016			Organic growth			Changes inscope ofconsolidation			Currency effect			Total growth
(in € millions)
France			718			726			-1.6%			0.6%			0.0%			-1.1%
Other European countries			591			558			1.5%			5.7%			-1.3%			6.0%
Rest of the world			349			225			11.2%			41.3%			2.6%			54.9%
GROUP TOTAL			1,659			1,509			1.5%			8.5%			-0.1%			9.9%

			Q4 2016-2017			Q4 2015-2016			Organic growth			Changes inscope ofconsolidation			Currency effect			Total growth
(in € millions)
France			670			676			-0.9%			0.0%			0.0%			-0.9%
Other European countries			552			518			3.7%			3.7%			-0.8%			6.6%
Rest of the world			328			273			8.8%			15.9%			-4.3%			20.4%
GROUP TOTAL			1 550			1 466			2.5%			4.3%			-1.1%			5.7%

			12 months 2016-2017			12 months 2015-2016			Organic growth			Changes inscope ofconsolidation			Currency effect			Total growth
(in € millions)
France			2,843			2,820			-0.2%			1.0%			0.0%			0.8%
Other European countries			2,256			2,135			2.1%			5.3%			-1.7%			5.7%
Rest of the world			1,323			941			10.2%			30.3%			0.0%			40.6%
GROUP TOTAL			6,422			5,896			2.3%			7.3%			-0.6%			8.9%

Appendix 3: Revenue by Market
			Q1 2016-2017			Q1 2015-2016			Organic growth			Changes in scope of consolidation			Currency effect			Total growth
(in € millions)
Business & industry			505			500			-0.4%			3.9%			-2.4%			1.0%
Education			385			305			0.5%			26.3%			-0.3%			26.4%
Healthcare			296			288			0.7%			2.4%			-0.4%			2.7%
Contract catering & services			1,187			1,093			0.2%			9.7%			-1.3%			8.5%
Motorways			129			132			-2.6%			-0.1%			0.2%			-2.5%
Airports			177			168			6.7%			0.1%			-1.0%			5.7%
City sites & leisure			101			82			8.5%			15.9%			-1.0%			23.5%
Concession catering			407			382			3.9%			3.4%			-0.6%			6.7%
GROUP TOTAL			1,594			1,475			1.1%			8.1%			-1.1%			8.1%

			Q2 2016-2017			Q2 2015-2016			Organic growth			Changes in scope of consolidation			Currency effect			Total growth
(in € millions)
Business & industry			525			497			3.7%			3.0%			-1.0%			5.7%
Education			421			315			7.2%			26.3%			0.2%			33.7%
Healthcare			300			289			0.4%			2.8%			0.5%			3.7%
Contract catering & services			1,246			1,101			3.8%			9.6%			-0.3%			13.2%
Motorways			113			120			-5.8%			0.0%			0.5%			-5.3%
Airports			165			148			11.0%			0.0%			0.2%			11.2%
City sites & leisure			95			76			9.3%			15.9%			-0.7%			24.4%
Concession catering			373			344			4.8%			3.5%			0.1%			8.4%
GROUP TOTAL			1,619			1,445			4.1%			8.2%			-0.2%			12.0%

			Q3 2016-2017			Q3 2015-2016			Organic growth			Changes in scope of consolidation			Currency effect			Total growth
(in € millions)
Business & industry			544			506			-0.7%			9.0%			-0.8%			7.5%
Education			356			292			-4.0%			25.8%			0.1%			21.9%
Healthcare			297			285			1.8%			2.1%			0.3%			4.2%
Contract catering & services			1,197			1,083			-0.9%			11.7%			-0.3%			10.5%
Motorways			150			145			3.3%			0.0%			0.4%			3.6%
Airports			215			188			13.7%			0.0%			0.6%			14.3%
City sites & leisure			97			94			1.6%			1.8%			0.0%			3.5%
Concession catering			462			427			7.5%			0.4%			0.4%			8.3%
GROUP TOTAL			1,659			1,509			1.5%			8.5%			-0.1%			9.9%

			Q4 2016-2017			Q4 2015-2016			Organic growth			Changes in scope of consolidation			Currency effect			Total growth
(in € millions)
Business & industry			495			441			2.8%			10.7%			-1.2%			12.2%
Education			235			228			-0.6%			4.7%			-1.2%			2.8%
Healthcare			288			281			2.5%			1.6%			-1.6%			2.5%
Contract catering & services			1,018			951			1.8%			6.6%			-1.3%			7.1%
Motorways			194			196			-0.9%			0.0%			-0.5%			-1.4%
Airports			241			220			10.3%			0.0%			-1.0%			9.3%
City sites & leisure			98			99			-1.6%			0.0%			0.1%			-1.5%
Concession catering			532			516			3.8%			0.0%			-0.6%			3.2%
GROUP TOTAL			1,550			1,466			2.5%			4.3%			-1.1%			5.7%

			12 months 2016-2017			12 months 2015-2016			Organic growth			Changes in scope of consolidation			Currency effect			Total growth
(in € millions)
Business & industry			2,070			1,945			1.2%			6.6%			-1.4%			6.4%
Education			1,396			1,139			1.0%			21.8%			-0.2%			22.6%
Healthcare			1,182			1,144			1.3%			2.2%			-0.3%			3.3%
Contract catering & services			4,648			4,228			1.2%			9.5%			-0.8%			9.9%
Motorways			586			593			-1.3%			0.0%			0.1%			-1.2%
Airports			798			724			10.5%			0.0%			-0.3%			10.2%
City sites & leisure			390			351			4.0%			7.7%			-0.3%			11.3%
Concession catering			1,774			1,668			5.0%			1.6%			-0.2%			6.4%
GROUP TOTAL			6,422			5,896			2.3%			7.3%			-0.6%			8.9%

Appendix 4: Adjusted EBITDA by Business Line and Geographic Region
			12 months 2016-2017			12 months 2015-2016			Y-on-y change (€m)			Y-on-y change (%)
(in € millions)
France			180			186			(7)			-3.6%
International			162			139			23			16.5%
Contract catering & services			342			325			17			5.1%
France			70			76			(6)			-7.4%
International			123			108			16			14.4%
Concession catering			193			183			10			5.4%
Corporate			(4)			(8)			3			nm
GROUP TOTAL			531			501			30			5.9%

Appendix 5: Adjusted EBITA by Business Line and Geographic Region
			12 months 2016-2017			12 months 2015-2016			Y-on-y change (€m)			Y-on-y change (%)
(in € millions)
France			129			151			(22)			-14.4%
International			106			102			3			3.4%
Contract catering & services			235			253			(18)			-7.2%
France			36			46			(10)			-21.8%
International			75			61			13			21.6%
Concession catering			110			107			3			3.0%
Corporate			(13)			(13)			0			nm
GROUP TOTAL			333			348			(15)			-4.4%

Appendix 6: Simplified Cash Flow Statement
			12 months			12 months			Y-on-y change (€m)
(in € millions)			2016-2017			2015-2016
Adjusted EBITDA			531			501			+30
Impact of share-based compensation			(9)			(4)			(5)
Reported EBITDA			522			497			25
Change in working capital			3			0			+3
Net capex			(292)			(183)			(109)
Tax paid			(57)			(79)			+22
Non-recurring cash items			(53)			(61)			+8
Free cash flow			122			173			(51)

Appendix 7: Consolidated Financial Statements
Consolidated Income Statement
(in € millions)			12 monthsended Sept. 30,2017			12 monthsended Sept. 30,2016
Revenue			6,422			5,896
Purchase of raw materials and consumables			(1,982)			(1,824)
Personnel costs			(2,802)			(2,618)
Share-based compensation expense			(9)			(4)
Other operating expenses			(1,028)			(889)
Taxes other than on income			(82)			(67)
Depreciation, amortization and provisions for recurring operating items			(189)			(153)
Net amortization of intangible assets recognized on consolidation			(23)			(13)
Recurring operating profit			307			328
Share of profit of equity-accounted investees			3			3
Recurring operating profit including share of profit of equity-accounted investees			310			331
Non-recurring income and expenses, net			(52)			(50)
Operating profit including share of profit of equity-accounted investees			258			281
Net financial expense			(62)			(63)
Profit before income tax			196			218
Income tax			(78)			(74)
Loss for the period from discontinued operations			(1)			(6)
Profit for the period			117			139
Attributable to owners of the parent			114			135
Attributable to non-controlling interests			3			3
Earnings per share (in €)			0.66			0.78

Consolidated Balance Sheet – Assets
(in € millions)			Sept. 30, 2017			Sept. 30, 2016
Goodwill			2,562			2,542
Intangible assets			479			379
Property, plant and equipment			668			575
Non-current financial assets			83			65
Equity-accounted investees			7			6
Fair value of derivative financial instruments			3			-
Deferred tax assets			189			216
Total non-current assets			3,991			3,782
Inventories			123			117
Trade and other receivables			810			933
Current income tax assets			32			25
Other current assets			79			72
Short-term financial receivables			9			10
Cash and cash equivalents			140			161
Assets classified as held for sale			9			18
Total current assets			1,202			1,335
Total assets			5,193			5,118

Consolidated Balance Sheet – Equity and Liabilities
(in € millions)			Sept. 30, 2017			Sept. 30, 2016
Share capital			2			2
Reserves and retained earnings			1,562			1,514
Non-controlling interests			55			41
Total equity			1,618			1,557
Long-term debt			1,685			1,846
Fair value of derivative financial instruments			8			16
Non-current liabilities related to share acquisitions			24			19
Deferred tax liabilities			73			74
Provisions for pension and other post-employment benefit obligations			112			113
Other long-term provisions			23			27
Other non-current liabilities			6			5
Total non-current liabilities			1,931			2,099
Trade and other payables			793			730
Due to suppliers of non-current assets			74			42
Accrued taxes and payroll costs			582			557
Current income tax liabilities			14			9
Short-term debt			75			11
Current liabilities related to share acquisitions			14			22
Short-term provisions			61			50
Other current liabilities			24			25
Liabilities classified as held for sale			8			15
Total current liabilities			1,644			1,461
Total liabilities			3,575			3,560
Total equity and liabilities			5,193			5,117

Consolidated Cash Flow Statement
(in € millions)			12 months ended Sept. 30, 2017			12 months ended Sept. 30, 2016
Cash flows from operating activities
EBITDA			522			497
Change in working capital			3			0
Interest and other financial expenses paid			(49)			(81)
Tax paid			(57)			(79)
Other cash movements			(53)			(61)
Net cash from/(used in) operating activities			365			275
Cash flows from investing activities
Purchases of and proceeds from sale of property, plant and equipment and Intangible assets			(292)			(183)
Purchases of and proceeds from sale of non-current financial assets			(29)			(24)
Acquisition/sale of shares in consolidated companies			(99)			(253)
Net cash from/(used in) investing activities			(420)			(460)
Cash flows from financing activities
Dividends paid to owners of the parent			(72)			(55)
Movements in share capital of the parent			1			2
Purchases of treasury shares			0			(1)
Dividends paid to non-controlling interests			(2)			(1)
Proceeds from borrowings			14			550
Repayments of borrowings			(155)			(352)
Net cash from/(used in) financing activities			(214)			143
Effect of exchange rate and other changes			193			1
Net increase/(decrease) in cash and cash equivalents			(77)			(41)

Appendix 8: Definitions of Alternative Performance Indicators

Organic growth in consolidated revenue: Growth in consolidated revenue expressed as a percentage and adjusted for the impact of (i) changes in exchange rates, using the calculation method described in Chapter 4, Section 4.1.4.1 of the FY 2015-2016 Registration Document, and (ii) other-than-marginal changes in scope of consolidation.

Reported Ebitda: This indicator corresponds to the following, as recorded in the consolidated income statement: recurring operating profit including share of profit of equity-accounted investees whose activities are the same or similar to those of the Group, before (i) net depreciation and amortization expense included in recurring operating profit and (ii) net additions to provisions included in recurring operating profit.

Adjusted Ebitda: Reported Ebitda as defined above adjusted for the impact of share-based compensation expense (stock options and free shares granted by Group companies).

Adjusted Ebitda margin: Adjusted Ebitda as a percentage of consolidated revenue.

Adjusted Ebita: Recurring operating profit reported under IFRS adjusted for the impact of share-based compensation expense (stock options and free shares granted by Group companies) and amortization of intangible assets recognized on consolidation.

Adjusted earnings per share: This indicator is calculated based on consolidated profit for the period attributable to owners of the parent adjusted for non-recurring income and expenses, net of the income tax effect calculated at the Group’s standard tax rate of 34%, and amortization of intangible assets recognized on consolidation (mainly customer relationships).

Free cash flow: The sum of the following items as defined in the FY 2015-2016 Registration Document and recorded either as individual line items or as the sum of several individual line items in the consolidated cash flow statement:

• adjusted Ebitda;
• net capital expenditure (i.e. amounts paid as consideration for property, plant and equipment and intangible assets used in operations less the proceeds received from sales of these types of assets);
• change in working capital;
• tax paid, which notably includes corporate income tax, the CVAE tax in France and the IRAP tax in Italy;
• other cash movements, which primarily comprise cash outflows related to (i) non-recurring items in the income statement and (ii) provisions recognized for liabilities resulting from fair value adjustments recognized on the acquisition of consolidated companies.

Conversion rate: free cash flow as a percentage of adjusted Ebitda.

Leverage ratio (as defined in the covenants in the Senior Facilities Agreement and presented for the Group’s debt at a given period-end): The ratio between (i) the Group’s net debt (at a given period-end determined based on the definition and covenants in the Senior Facilities Agreement as described in Chapter 4, Section 4.7.2 of the FY 2015-2016 Registration Document: “Senior Facilities Agreement”, i.e. excluding unamortized issuance costs and the fair value of derivative instruments) and (ii) adjusted Ebitda calculated on a rolling basis for the twelve months preceding the period-end concerned, further adjusted to exclude the impacts of acquisitions and divestments of consolidated companies during the twelve months preceding said period-end.

View source version on businesswire.com: http://www.businesswire.com/news/home/20171205006499/en/

Investor relations
Marie de Scorbiac, +33 (0)1 71 06 70 13
[email protected]
or
Press contact
Anne-Laure Sanguinetti, +33 (0)1 71 06 70 57
[email protected]

Source: Elior Group

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In