Integrated Report 2018 - Edenred
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Integrated Report 2018
Integrated
Report
2018
3
2017
key figures
Edenred is the world leader in transactional solutions for companies,
employees and partner merchants.
€26 billion 1 billion 2.6 million
in business volume, meals served per year Edenred fuel cards
of which 78% digital using Edenred solutions and toll solutions
770,000 corporate
44 million
employees using
1.5 million
partner
clients our solutions merchants
45
countries 1
8,000
employees
€1,339 million
in revenue
1
Since December 31, 2017, three additional country markets have been opened, in Estonia, Lithuania and Ukraine
4 5
Edenred, Bertrand Dumazy
creating Chairman and Chief Executive
shared value Officer of Edenred
p8
A strategy designed
to ensure profitable and Challenge 1 Challenge 2
sustainable growth By supporting transformations in society and new user behavior in the world
p 10 of work, Edenred takes an entrepreneurial approach to creating
Contribute Vitalize and developing innovative and relevant solutions that foster social well-being
to employee the economy and and promote budget optimization and economic vitality.
Governance securing well-being local employment Fifty years ago, our pioneering spirit gave helping to vitalize the local economy
the Group’s p 18 p 26 rise to the creation of the Ticket Restaurant and promote local employment by
program, an initiative that revolutionized bringing additional revenue to our
performance lunch breaks and still contributes to partner merchants, or supporting the
p 12 employee well-being to this day. Many
Employee Benefits programs have
performance of companies, large and
small, by optimizing the management of
emerged since then, responding ever more their employees’ expenses or facilitating
closely and effectively to the expectations corporate payments in a secure manner.
of employees as well as of corporate
Employees clients and partner merchants, as part of a To more effectively meet these challenges, To more effectively
at the heart of virtuous process of creating shared value
among all stakeholders.
we are drawing on our leadership, our
meet these challenges,
Edenred’s growth digital skills and our local approach to
the needs of our clients, beneficiaries and we are drawing
p 14 It is this ability to create and manage such
partners around the world. on our leadership,
ecosystems that is at the heart of Edenred’s
expertise and which we have been able
We have also given innovation pride of our digital skills and
to transpose into new areas such as
mobility by offering solutions to facilitate place in our approach and, to broaden our local approach to
A Group employee travel and optimize the our field of thinking and experimentation,
the needs of our clients,
committed Challenge 3 Challenge 4 management of associated expenses. we have done so by providing our support
to start-ups, as part of a collaborative co beneficiaries and
to society Today, we are applying our know-how in construction process that is opening up partners around the
p 16 simplifying and securing transactions to the new perspectives for us.
world.
Boost companies’ Invent the solutions field of corporate payment.
As you will see as you read through our
agility by optimizing of tomorrow The societal aspect of our operations is very first Integrated Report, our strategy,
their expense through an integral part of our business model in addition to generating profitable and
Key
management co-construction and a real driver of aspiration for all of sustainable growth, aims to mobilize our
indicators our employees. It is present in the many employees around a unifying project to
p 32 p 38 challenges we seek to address, be it create value, enhance well-being and
p 44 strengthening corporate accountability drive momentum for all of our stakeholders
by improving employees’ quality of life, in our 45 countries.
6 7
Serving a unique ecosystem
Edenred,
creating DM
ORE EFFE
shared value
CT
AN IV
Y
IT
E
BIL
NCE AND
PU
MA AT
OR
ER TRACEA
BLIC
F TR
R MANAGEMENT REQUEST FOR
AC
PE
PROGRA
AND MARKETING REIMBURSEMENT
Edenred is the world leader in transactional solutions for companies,
TIV
ER
GREAT
ENESS
Governments
employees and merchants. The Group connects and drives a virtuous,
EAT
Public institutions
MS
GR
trust-based ecosystem that makes life easier for employees while
improving the performance of corporate clients and partner merchants. 770,000 ND GREA
companies and UE A TER
public institutions VEN
E
Three business lines
LO
R
YA
RE
€26 2
MO
LTY
billion billion
DISTRIBUTION in business transactions
OF THE SERVICE volume
1.5 million
merchants
and partners
M O RE PUR C
LIC IT Y
65% 2 25% 2 10% 2
44 million
IM P
Employee Fleet & Mobility Complementary employees USE OF THE SERVICE
RS
Benefits Solutions solutions and citizens
HA
TE
IN
EA
S
Corporate payments, G R
PO
More than 100 programs A comprehensive range WER AND G
related to food, to manage employee expenses, Incentives and Rewards,
well-being and culture especially those related to mobility and Public Social Programs
For balanced growth in 45 countries
Revenue:
€1.34 billion 3
EBIT:
an Edenred brand
€437 million 3
Four areas of expertise
Breakdown
of 2017 operating revenue
l
Europe: 53 %
Financial Data RegTech FinTech l
intermediation intermediation Compliance Issuer & Processor Latin America: 41 %
Selected ecosystems Big data & Analytics
l
Rest of the World: 6 %
2
% of 2017 operating revenue 3
2017 figures
8 9
A unique Record results in 2017
A strategy designed business model
The Fast Forward strategy is paying off. In 2017,
to ensure profitable Edenred’s business model, which the Group exceeded its annual medium-term organic growth
targets set for three key indicators:
and sustainable growth generates significant cash flows,
allows it to combine a growth-company
profile boasting substantial development
capacity with the characteristics of a robust Operating
group guaranteeing a generous shareholder revenue
To ensure profitable and sustainable growth for both the Group and its stakeholders, return policy. The Group’s business enjoys
major operating leverage, low capital +9.1%
Edenred drew up its Fast Forward strategic plan at the end of 2016. It sets ambitious objectives in terms
intensity and a structurally negative +8.3%
both of the development of the Group’s three business lines and of its financial results. working capital requirement, since a large
+7.4%
proportion of Edenred solutions are prepaid.
Annual
A balanced capital growth target
allocation policy 1,000 1,073 1,272 >7 %
A three-pronged strategy
In 2017, Edenred generated close to €400
million in free cash-flow, which enabled it
1 2 3 to finance €280 million in strategic acquisitions
2015 2016 2017
for the Group, and to pay out €138 million to
shareholders, while maintaining a stable debt
Employee Benefits Fleet & Mobility Solutions Complementary Solutions ratio compared with 2016. Operating
EBIT 7
Seize development opportunities, Strengthen Edenred’s position Leverage Edenred’s global presence,
especially those offered by digitization. as a global player. know-how and technological expertise to: +16.0%
l Increase the Group’s presence in this lB
roaden the Group’s positioning lD
evelop new dedicated transactional +17.3%
still under-addressed market with strong in the value chain of this large, ecosystems, especially in the +12.6%
growth fundamentals, particularly in underpenetrated and high-growth area of corporate payment, with
the small and medium-sized enterprise market, driven by increased financial flows between companies
segment, via new distribution channels. employee mobility. representing several thousand billion Annual
euros each year. growth target
l Consolidate Edenred’s leadership, lE
xtend Edenred’s geographic
thanks to its strong capacity footprint through organic growth and lD
evelop new digitized and automated 272 304 370 >9%
for innovation and differentiation, acquisitions. payment solutions, notably by using
enhanced by digitization. virtual card technologies developed
lA
ccelerate the deployment of
by the PrePay Solutions subsidiary, the
l Maximize value creation through solutions dedicated to light vehicles. 2015 2016 2017
European leader in prepaid services.
greater customer loyalty, combined
with cost optimization by digitizing offers
and processes. Successful
integrations Funds
from operations (FFO)
World leader Leader in Latin America, Launch of the Edenred Corporate The Group’s financial solidity has enabled it to
number 2 in Europe5 Payment offer in 2017 carry out strategic external growth transactions +21.8%
over the past three years.
2017 growth: +8.5%4
+15.4%
2017 growth: +68.2%4 2017 growth: +5.0%4 +12.5%
(o/w +6.6% organic) (o/w +19.7% organic) (o/w +8.1% organic) In particular, Edenred has made two significant
acquisitions in the field of Fleet & Mobility
Solutions – UTA in Germany and Embratec
1 billion meals served per year using 2.6 million Edenred fuel cards Signature of a global contract with IATA6 Annual
in Brazil – serving to position the Group today
growth target
Edenred solutions and toll solutions (90 countries) and first contracts as a global player in this fast-growing business.
signed with FinTechs and European The managerial support necessary to bring 280 299 388 >10%
900,000 partner restaurants 90,000 partner service stations, companies in various industries: more than 1,300 new employees onboard
and food stores toll stations and and foster support for the Fast Forward project
maintenance workshops and the values of the Group was crucial;
2015 2016 2017
it was a major driver of the success of these
Digitization rate in 2017: 68% deals. Other factors stemmed from the
Successful integration Edenred teams’ ability to integrate best
+40% new SME of Embratec in Brazil practices established at UTA and Embratec in 4
2017 operating revenue growth vs. 2016
clients in 2017 and UTA in Europe order to together carve out a global leadership
5
On the pan-European, multi-brand market
6
International Air Transport Association
position. 7
Operating profit before other income and expenses
10 11
Committees reinforcing
Governance the Group’s responsibility
securing the Group’s The Board of Directors has three committees to assist it with its decisions
performance and to ensure the Company’s responsible development. Edenred’s CSR
Audit and Risks Committee compensation and benefits of executive governance
directors, on the policy of granting stock
The Audit and Risks Committee is responsible options and on changes in the composition Given the social nature of Edenred’s
Edenred’s governance bodies guarantee the relevance for ensuring the appropriateness and corporate purpose, Corporate Social
of the Company’s management bodies.
and compliance of all decisions made by the Group and actions consistent application of the accounting Responsibility (CSR) falls within the remit
carried out as part of its strategy. policies used for the preparation of the
The Commitments Committee of the Human Resources Department.
consolidated and parent company financial
statements, and to monitor the process of In addition to the two regulatory committees, Edenred’s Corporate Social
preparing financial information. In particular, Edenred has created a Commitments Responsibility roadmap is
it monitors the accuracy of the financial Committee that meets at least once a co-constructed with the country
information provided to guarantee the year and whose responsibility is to issue organizations and jointly managed
The Board of Directors
40%
reliability of the Group’s financial statements recommendations on any transaction within the Group by networks of
and reduce its exposure to risks liable to affect the Group’s strategy or to Human Resources and Sustainable
materially change its business base. Development correspondents.
Founded on the values of gender balance, diversity and independence, women Compensation and Validated by the Executive Committee,
the Board of Directors is made up of 40% women and 60% men from the on the Edenred
Appointments Committee it is cascaded to the various managers
Board of Directors
countries where the Group operates, each possessing strong financial and The Compensation and Appointments
and all Group employees, as well
digital expertise, especially internationally. With the exception of Bertrand Committee advises the members of the Board
as to external stakeholders. Its
implementation and performance are
Dumazy, Chairman and Chief Executive Officer of Edenred, all directors are of Directors on the determination of the
the subject of indicators monitored
independent. The Board of Directors met seven times in 2017, with an average annually.
attendance rate of 87%.
Executive Committee
Membership of the Board of Directors Comprising 13 members, the Executive Committee brings together operational
representatives from the major regions of the world, as well
90%
as functional managers who provide expertise to operations.
Jean-Paul Bailly Gabriele Galateri di Genola
Chairman of RATP and Honorary Chairman of Assicurazioni Generali SpA independent Members of the Executive Commitee
Chairman of La Poste Group directors
Maëlle Gavet
Anne Bouverot Chief Operating Officer of Compass Jacques Adoue Bertrand Dumazy Laurent Pellet
Director of companies
Executive Vice President, Chairman and Chief Operating Officer,
Françoise Gri
Human Resources and Corporate Chief Executive Officer Asia-Pacific and Middle East
Sylvia Coutinho Chief Executive Officer of Françoise Gri Social Responsibility
Chief Executive Officer Conseil, Lead Independent Director 8
of UBS Group Brazil Antoine Dumurgier Elie du Pré de Saint Maur
Jean-Romain Lhomme Patrick Bataillard Chief Operating Officer, Executive Vice President,
Dominique D’Hinnin Founder and Manager of Lake Invest Sarl Executive Vice President, Finance Fleet & Mobility Solutions Marketing and Strategy,
Chairman of the Board of Directors and Chief Operating Officer,
of Eutelsat Communications SA Bertrand Méheut Arnaud Erulin
Corporate Payment
Director of companies
Bertrand Dumazy Chief Operating Officer, Philippe Relland-Bernard
Chairman and Chief Executive
Director’s Charter Gilles Coccoli Northern Europe, Central Europe,
Executive Vice President,
Chief Operating Officer, Brazil France and Belgium
Officer of Edenred SA Philippe Citerne Each member of the Board of Directors
Legal and Regulatory Affairs
Board observer is required to adhere to the principles
of conduct set out in the Director’s
Diego Frutos
Charter and undertakes to act at Philippe Dufour Chief Operating Officer, Dave Ubachs
all times in the Company’s interest. Hispanic and North America
Executive Vice President, Executive Vice President,
Alternative Investments Digital and IT
Directors comply with the best practices
of corporate governance and apply Graziella Gavezotti
The Lead Independent Director is the point of contact between the other independent directors and
8 the ethical principles laid down in the Chief Operating Officer,
the Chairman and Chief Executive Officer, allowing them to raise any matters not included on the agenda. charter. Southern Europe
He or she also responds to requests from shareholders not represented on the Board of Directors
12 13
Improving the quality Developing employees
Employees of life at work, a mission and talents, a vital Three talent
at the heart of and a commitment challenge for Edenred management
programs
Edenred’s growth Improving the quality of life at work
is one of Edenred’s main missions,
Supporting the development and
transformation of employees’ skills is key
l Talent Week is aimed at young
not only for its corporate clients but also to implementing the Group’s strategy and
talents in the Group (five to ten
for its own employees. increasing the employability of employees,
years’ professional experience).
with a focus on both work skill and life skills.
Edenred’s 8,000 employees are its most valuable asset, demonstrating every day their l The Edenred Executive Academy
With this in mind, many Group country
ability to take action and deliver superior performance. In the Group’s transformation, organizations have undertaken to assess In 2018, Edenred will start rolling out a global provides the opportunity for high-
Human Resources policies and the managerial approach are powerful tools for providing the level of employee satisfaction via a Best e learning platform, allowing shared training potential employees from across the
structure and driving engagement and motivation. Place To Work approach. From 2018, a Group courses to be implemented for all employees. Group to prepare for future career
survey will be conducted, with action plans advancements by improving their
supported by the Executive Committee. The Group will also strengthen its ability to leadership and personal development
identify and track high-potential employees and gaining experience in business
Five values that inspire all employees daily by establishing a talent review process in all
countries.
development, among other things.
In 2017, when the Group’s new identity was unveiled, Edenred’s values were revisited.
Diversity, a source of l Edenstep, Edenred’s graduate
program since 2017, aims to boost
They encourage everyone to give the best of themselves and thereby strive for excellence in services value and performance the attraction of young graduates with
to stakeholders. high potential by offering 24 months of
In its Charter of Ethics, the Group reaffirms international experience in two Group
its commitment to forbidding all forms of countries.
discrimination.
In 2017,
Decisions with regard to hiring, promotion,
training and compensation are based solely
on the individual’s capabilities, skills and
84%
of employees
experience. Edenred is a multi-local company attended at least
deeply committed to nurturing its pluricultural one training course
diversity. The Group is aware that the diversity during the year
of its employees is a strength and valuable
Passion for customers Respect Imagination asset, while also reflecting the diversity of its
The more we engage with companies, True business excellence can only be Imagination stimulates the desire for customers.
employees and merchants, the clearer achieved with respect. We are respectful innovation, and gives rise to progress.
their needs become, and the simpler towards our customers, by being proactive, We recognize this, and so we put our own
it is to determine the changes we should accountable, and honest; to our colleagues, imagination to work, generating inspirational
be making. We will not stop improving by expressing gratitude and recognition; ways to connect companies, employees
every last detail of everything we do until to our shareholders, by using the resources and merchants, for the working world of
8,000
100% of our customers insist that their friends they put at our disposal efficiently; and to today and tomorrow.
do business with us. society, by promoting products and services
Breakdown of employees by region
that create value for all stakeholders. employees (2017 data)
50.2% l
women,
Europe: 45%
49.8% l
men Latin America: 40%
l
Rest of the
Edenred’s new
values are the
38% World: 13%
of woman hold a Worldwide
Simplicity Entrepreneurial spirit bedrock of our management position structures: 2%
Our customers want their interactions with us Our entrepreneurial spirit drives growth, corporate culture.
to be simple and easy. We know that it instills our pioneering soul in the
is hard to make things simple. This is why
we always make sure to promote simplicity
new business territories we want to explore,
strengthens local empowerment, and
50%
of employees are
in everything we do, and transparency in makes us focus relentlessly on operational Bertrand Dumazy
everything we say. excellence. aged under 35
Chairman and Chief Executive
Officer of Edenred
14 15
Three pillars to meet
A Group the major challenges
committed The Group’s new sustainable development policy is based on three pillars grouping
to society together a series of commitments. Dedicated action plans are in place to ensure that these
commitments are properly implemented:
Edenred is driven by a deep commitment to making employees’ lives easier and companies
more efficient. To achieve this, the Group conducts its business based on an ambitious
sustainable development policy, involving its stakeholders and drawing on the recommendations
of France’s Grenelle II Act, GRI 9 guidelines and the United Nations Global Compact.
A materiality matrix to identify major issues
1 2 3
In 2017, the Group sought to give fresh impetus to its sustainable development policy by proposing an action
plan for 2022, in line with its Fast Forward strategic plan.
PEOPLE PLANET PROGRESS
To prepare this action plan, a global materiality study was conducted in 2017 through interviews with Group’s
internal and external stakeholders, identifying and prioritizing the issues facing Edenred according to their One of Edenred’s missions is to improve the Edenred aims to preserve Edenred is committed to creating
relevance to its stakeholders and their impact on the Company’s performance. quality of life of its stakeholders on the basis the environment by reducing its carbon value by developing its business and
of three underlying goals: footprint and its consumption partnerships in an ethical way
be a benchmark employer by providing of resources, by designing eco-services throughout its value chain, ensuring IT
a favorable environment for professional for mobility and food waste and by security and data protection and meeting
development and encouraging diversity in managing the impact of its solutions and the expectations of its stakeholders
Seven major issues all of its forms, promote solutions services across their lifecycle. while making them partners in its digital
for well-being through a healthy and transformation.
sustainable diet, and contribute to local
development by becoming personally
High
impact IT security involved and sharing the benefits of growth.
Diversity and data privacy
Business ethics
Labor and
human rights Energy
and climate Responsible
payment Client
digitization satisfaction
IMPORTANCE FOR STAKEHOLDERS
Governance Talent management
Employee engagement Sustainable
and well-being and healtyh food
Resources and waste promotion
management Accessibility to
Edenred’s solutions
Eco-conception In 2017,
Employees The Edenraid
188
and circular economy Sustainable
mobility promotion
Local adaptation committed to supporting challenge to help
Value creation
Social and economic
communities associations supported
seriously ill children
contribution
€1.86
Edenred plays an active role in community In 2017, Edenred organized the first
Responsible
procurement Stakeholder inclusion
development through outreach projects such million Edenraid sporting challenge to support the
as Idealday, its international day of action for in donations made Make-A-Wish® Foundation.
and dialog
employees and other stakeholders.
Over two months, 2,300 employees in
Low
impact
IMPORTANCE FOR EDENRED’S BUSINESS High
impact
On September 22, 2017, more than 5,000
employees took part in the event through a
variety of sustainable development initiatives
586
days dedicated to volunteer
40 countries ran, walked or cycled the
equivalent of eight times around the Earth
in order to raise money and help make the
in 30 countries. work by employees dreams of seriously ill children come true.
Global Reporting Initiative (GRI)
9
16 17
Challenge
1
Contribute
to employee
well-being
Employee Benefits offered by
Edenred in such areas as food,
human services and leisure
improve the purchasing power
and quality of life of millions of employees
worldwide. Edenred therefore contributes
directly to employee well-being, alongside
companies and public authorities.
18 19Contributing Facilitating access
Improving to a better to culture and
quality of life way of life leisure activities
for employees Edenred has drawn on its Ticket Restaurant
program, which provides a win-win solution
Ever attentive to the changing expectations
of employees in terms of their well-being,
on both the social and economic fronts, Edenred has developed solutions in numerous
to extend its Employee Benefits offering. countries that now give access to sport,
culture and other leisure activities.
Employee Benefits offered by Edenred to its corporate clients increase
Edenred’s human services solutions enable
users’ purchasing power. Thanks to Edenred solutions, employees users to outsource certain tasks at a lower In many emerging and developed
can enjoy improved working conditions and a better work-life balance. cost, giving them more time to look after their economies, governments are eager to
loved ones and achieve a better work-life ensure that workers have access to leisure
balance. time. In Brazil, for example, Ticket Cultura
gives users access to a wide range
Supporting parents of cultural products and services, such as
cinema, theater and museum tickets, as well
Childcare services supported by as DVDs and books, at preferential prices.
governments and companies give parents
peace of mind and make it easier for
Under the Ticket Lounas program in Finland,
women to return to work. In Spain,
Promoting for example, Ticket Guardería enables
food, culture and sport are all accessible
via a single card. The all-in-one service
a more parents to save on social contributions
for all forms of childcare, from childminders
includes a mobile app that enables
balanced diet In Romania, and nurseries to after-school clubs.
employees to access their accounts and
identify one of the 10,000 restaurants and
meal vouchers In addition to financial support, the Ticket
food outlets or one of the 4,500 cultural or
A pioneer in well-being in the workplace, increase users’ Junior program in the Czech Republic
sporting venues where they can spend their
Edenred initiated the Ticket Restaurant purchasing power provides a dedicated platform that puts
dedicated funds.
program in France back in the 1960s, creating by around parents in direct contact with childcare
a win-win system for the government,
companies and employees that was later 20 to 40% 10 structures, simplifying and speeding up
women’s transition back to work.
rolled out in more than 35 other countries.
Helping employees free up time
The program is supported by tax exemption For employees who have to look after loved
measures for both employers and ones, such as an elderly parent or a disabled
employees, so that everyone can enjoy
a quality lunch regardless of their income.
An obesity relative, Ticket CESU, offered by Edenred
The daily use of Ticket Restaurant gives In Portugal, prevention program in France and co-financed by the employer,
provides effective support for hiring care
employees access to a balanced meal
during their work day at a reduced cost. 86% In the United States, where obesity affects
assistants. It can also be used to delegate
tasks such as housework and human services,
For workers in France on the minimum of workers nearly 40% of the adult population, promoting
making employees’ lives easier.
wage, for example, being part of the Ticket surveyed see meal good eating habits is a key public health issue
Restaurant program halves their lunch vouchers as aimed at preventing the chronic illnesses
budget, which represents around 16% of a workplace associated with being overweight.
their monthly expenses. incentive 11
The NutriSavings program created by
In Spain, Edenred in 2012 enables US companies
By improving concentration levels and
employers estimate to help their employees prevent obesity
reducing workplace accidents, taking
that the level of by putting them in contact with healthcare
a pleasant lunch break also has a positive
employee absenteeism professionals, insurance providers and
impact on employee productivity.
has decreased by food industry representatives.
In certain emerging economies, Edenred
has extended its field of action by
38% Based on voluntary participation, the
program enables employees to analyze
since the meal voucher
introducing Ticket Alimentación that can the nutritional value of their purchases
system was
be used to purchase food items in retail and to benefit from discounts
introduced 12
outlets, thereby optimizing the food budget that encourage healthier eating habits.
for the employee’s whole family.
10
Source: “Macroeconomic impact of an increase in the value Source: Murillo, J., Romani, J., “Analysis of the economic impact
12
of meal vouchers in Romania”, GEA Strategy & Consulting, 2013 of meal vouchers in Spain”, Barcelona Science Park, University of Barcelona, 2011
Source: IPSOS Barometer on “Employee well-being and motivation in Europe”, 2014
11
20 21A pioneer in
Developing mobile payment
digital services that make True to its innovative and entrepreneurial
life easier for employees spirit, Edenred is leveraging its expertise
to capture all the opportunities offered
by the widespread use of smartphones,
particularly mobile payment applications.
At the forefront of innovation in its constant drive to improve the employee experience, Edenred is stepping up This payment method enables users to
the transition of its solutions to digital media, which now account for 78% of business volume. pay with their mobile devices instead of
their bank cards at partner merchants.
The Group’s ambition is to increase this proportion to more than 85% by 2020. Digitization enhances the economic
Edenred is the only player in its segment
and social benefits of Edenred solutions, by making them easier to use, simpler to manage and capable of supporting to offer mobile payment in eight countries
new connected, personalized services while keeping transactions totally secure. on three continents, a service that is
highly appreciated by users. Already in
2017, 10 million transactions were made
using smartphones, via mobile solutions
developed in-house or in partnership with
such global mobile payment players as
Apple Pay, Samsung Pay and Google Pay.
The digital innovation drive is continuing
in 2018. Employees can now order and
Reinventing pay online for meals delivered to their
workplace. Payment is made easily via
the lunch break the partner’s website or mobile app
using the funds available in the Edenred Technological expertise,
The combination of the Ticket Restaurant In 2017, more than account, without the need to provide
one of Edenred’s strategic assets
card and the MyEdenred mobile app makes
paying for lunch even easier and gives
10 million any information about the associated
card. Aligned with new user behavior, the
Edenred initiated its shift to digital technology back in the 2000s, in Latin America.
mobile transactions initiative has already been launched in
users access to all their account information All of its solutions in the region are now paperless and the transition is also under way
were carried out by users France and is set to be rolled out in four
directly on their smartphone. In addition to in Europe, where digital solutions currently account for 61% of the total.
of Edenred solutions other countries during 2018.
consulting their payment notifications and
in 8 countries
checking their account balance, users can
Today, technological expertise is one of the Group’s key assets. Its capacity for
also benefit from the additional services
offered by the app, such as the geolocation Replacing paper customer-focused innovation is supported in particular by its PrePay Solutions (PPS)
subsidiary, the European leader in prepaid solutions and a licensed e-money issuer.
of partner merchants and promotional offers
near their workplace. with cards: a plus for
the environment While PPS has its own direct clientele, which includes many FinTechs, it also helps the Group
deploy innovative services and solutions in the areas of Employee Benefits, Fleet & Mobility
Solutions and Corporate Payment. This means developing and using technologies that are
Turnkey solutions
As part of the process of digitizing its
solutions and replacing paper vouchers
A wider selection increasingly open and agile while maintaining the highest standards in transaction security.
for a smoother travel with cards, Edenred conducted the first at preferential prices In 2017, PPS received four Emerging Payments Awards in London.
comparative Ticket Restaurant life-cycle
experience assessment to ensure that the change Edenred provides employees with dedicated
Information technology is the top item on Edenred’s list of expenses and its largest
employee category after sales.
genuinely benefits the environment. platforms where they can purchase a range
Through its Fleet & Mobility Solutions, of products and services in just a few clicks,
Edenred also provides employees with
digital services that make traveling easier.
78% The assessment showed that the card has
a more positive impact on climate change
while benefiting from preferential prices
negotiated with e-commerce partners such
of the business volume
generated by Edenred and natural resources. More specifically, as vente-privee.
In France, holders of the Ticket Fleet Pro in 2017 came the shift to digital reduces greenhouse gas
card can use the associated mobile app to from digital solutions emissions by 64% and cuts the use of natural The platforms allow employees to choose
consult their account balance, geolocate resources by 86%13, primarily because only from a wide variety of entertainment, travel
one of the 2,000 service stations in the one card is produced and sent to the user and leisure offers that can be paid for using
Edenred partner network or save their travel
itineraries to facilitate future trips.
every two years. the subsidies provided by their company’s
works council or their own personal funds.
15% 14
of Edenred
employees
work in IT
13
Study conducted by consulting firm HAATCH in France, in 2016, for the Ticket Restaurant solution 14
Not including the 650 external service providers working in IT
22 23Fostering financial
inclusion for employees
on low wages Reconciling Nathalie Renaudin,
Public Affairs Director,
public interest Edenred
and economic
According to the World Bank, financial exclusion affects close to two billion people worldwide,
primarily in emerging economies. Financial exclusion is the lack of access to basic financial development
services, or access at a cost that discourages their use. And yet, financial inclusion is a key
factor in reducing extreme poverty and promoting shared wealth. Edenred contributes
to financial inclusion by creating and developing services specifically for employees who do not
have a bank account.
How does a private-sector Can you describe your
company such as Edenred day-to-day interactions with
contribute to public policy, and public institutions?
in what areas in particular?
Protecting unbanked We use a continuous monitoring approach to
employees Edenred develops and delivers real-world identify those involved and gather information
that can help us anticipate the political, social
with payroll cards C3 Card solutions to societal needs, which contribute
to meeting the objectives of public policy, and economic challenges that will affect the
whether on a national, European or global countries in which we operate.
was named best payment program
The wages of unbanked or underbanked level.
financed by a government or
employees are generally paid in cash. The We look at studies conducted by academics
business at the Emerging Payments
subsequent lack of traceability and control Generally speaking, Edenred is a key and researchers and the approach taken
Awards in London in 2017.
generates security issues and supports the contact for international organizations, by international organizations, such as
informal economy. European institutions and national decision- the OECD15, the ILO16 and the FAO17, and
makers. We also communicate regularly Custom-designed we forge partnerships with them. We also
respond directly to issues expressed by
Edenred creates digital solutions that improve
the day-to-day lives of these disadvantaged
with the organizations that have the power in accordance governments or local authorities.
to regulate our systems, so that we can
employees. explain the specific characteristics of our with the applicable
In the United Arab Emirates, more than
programs and their value added and legislation, these Have the solutions offered by
500,000 employees on low wages receive
thereby ensure the smooth development
programs help Edenred produced conclusive
of our business.
their monthly pay via the C3 payroll card to meet objectives results?
offered by Edenred to local companies. Our solutions have always been based
The Group was a pioneer in this market back on the “win-win” principle: from our that reconcile Through surveys, barometers and
in 2009 when the UAE government introduced
its Wages Protection System, which aims to
original Ticket Restaurant program aimed the public interest macroeconomic studies, we regularly assess
the effects of the programs introduced locally
ensure the traceability of wages in order
at improving employee eating habits,
to our childcare or CESU vouchers that
with economic to meet the needs and expectations of
to limit the informal economy and protect compensate for the lack of public nursery development. companies, employees and public authorities.
workers. facilities and the various solutions that
provide access to sport, culture and In this way, we can ensure that the virtuous
The C3 card, together with the associated transportation to make employees’ lives circle created by the introduction of our
mobile app, can be used by employees easier and improve their well-being and programs continues to produce positive
to withdraw money from automated teller productivity. results over time.
machines, pay for in-store or online purchases,
consult their accounts, transfer funds to their Custom-designed in accordance with the
country of origin or top up the call credit on applicable legislation, these programs help
their smartphones. to meet objectives that reconcile the public
interest with economic development.
In Brazil, on the other hand, independent
truckers receive payments on prepaid cards
which enable them to withdraw cash and pay
for their travel-related expenses (fuel, tolls and
meals).
15
ECD: Organisation for Economic
O 16
ILO: International Labour Organization 17
F AO: Food and Agriculture Organization
Co-operation and Development of the United Nations
24 25Challenge
2
Vitalize
the economy and
local employment
Edenred operates at the heart
of a transactional ecosystem built on trust
between companies, merchants
and employees. This virtuous circle helps
stimulate the local economy and create local
jobs that are vital to regional development
and the expansion of the formal economy.
26 27Contributing to
the development of
the local economy
Through Employee Benefits and Fleet & Mobility Solutions, more than
€26 billion is spent annually across 1.5 million partner merchants.
In this way, Edenred actively contributes to vitalizing local merchants.
A growth driver Strengthening
for merchants 90,000 merchant appeal
partner service
Edenred’s sales forces, which promote the The fact that the allocated funds must stations, toll stations Apart from increased customer traffic,
Group’s solutions among local companies, be used within one year strengthens the and maintenance Edenred partner merchants benefit from
motivate employees to spend their funds program’s effectiveness as a driver of local workshops tools that are designed to improve their
with local merchants, providing the latter economic growth. In some countries, the business performance.
with a significant and steady source of win-win system has been extended beyond
additional revenue. the food sector to sport, culture and leisure
900,000
In Sweden, one of the Group’s most digitized
activities. markets, Edenred offers its 10,000 partner
Meal vouchers, which enjoy a favorable partner restaurants a management tool based
tax framework and are jointly financed In Fleet & Mobility Solutions, more than restaurants and on a digital platform that provides access
with the employer, provide employees with 90,000 partner service stations, toll stations food stores to key data from Ticket Restaurant card
supplementary purchasing power that can and maintenance workshops worldwide transactions. By analyzing such statistics
only be used within a filtered network of have seen their revenue boosted by as the average amount purchased and
500,000
local partner restaurants and food stores. additional customer traffic from Edenred the number of customers per day or hour,
solutions. restaurants can improve their business
non-food performance and optimize management
partner stores by aligning their offering with customer
needs and desires.
€7.5
In Brazil, in Fleet & Mobility Solutions,
Edenred is co-funding, alongside certain
billion 21
is injected annually
service stations, the construction of rest
into the French
areas for truckers. The truck stops are
food service industry
a genuine differentiating factor that give
thanks to meal vouchers,
the merchants a competitive edge by
of which:
attracting and building the loyalty of drivers
In Spain, In Slovakia,
who stop to fill their tanks.
71% meal vouchers
account for €4.7 billion
30%
of partner restaurants
believe that for restaurants
meal vouchers (traditional
of total restaurant
help build and fast-food)
revenue 19
customer loyalty18
91% €1.3 billion
for supermarkets
of Brazilian
that sell ready-to-eat
Source: Murillo, J., Romani, J. 2011. “Analysis of the economic
18 merchants surveyed
products
impact of meal vouchers in Spain”, AQR, IREA, Barcelona Science Park, believe that meal
University of Barcelona, 2011 and food vouchers
Source: According to 62% of restaurants surveyed, IPSOS Barometer, Slovakia, 2014
19
have led to
Source: Bogaziçi University/IBPT/IPSOS/National Center for Public Opinion
€1.5 billion
20
Research/PPM Factum/PwC/Saint-Etienne, C./Taloustutkimus Oy University an increase
of Barcelona/University of São Paulo in customers 20 for local merchants
Source: “Meal vouchers, beneficial on three levels”,
21
Alternatives Economiques, 2015
28 29Supporting
local
employment Securing business’ José Eduardo Pontes
Head of Violeta
long-term viability Supermarkets, Brazil
Increased customer traffic in local stores, simplified administrative procedures
and an attractive tax framework for Employee Benefits: Edenred solutions
help create local jobs and combat the informal economy.
Helping to formalize The Violeta supermarket network is the result In terms of management tools, I think the
the economy Impact, a tool of a Brazilian success story, which began
in 1958 with Café Violeta, opened by
range of applications offered by Edenred
Brazil specifically for employee users is
to monitor job José Eduardo Pontes’ father. Today, the efficient and useful. In the future, it would be
Meal vouchers contribute directly
to creating jobs in the restaurant and food creation in Europe network comprises six supermarkets and
more than 850 employees, serving some
nice if partner merchants also had access to
these resources.
retail industries. In France, for example, 15,000 customers each day.
Launched in 2014, Impact is a project
for every 23 new users of meal vouchers,
aimed at assessing the effectiveness
Has being an Edenred
one restaurant job is created.
of public policies in the human
How does the Edenred solution partner helped you weather
services sector. improve your operations, Brazil’s economic crisis?
In the area of human services, Ticket CESU
in France, or its equivalent in other Group in terms of business and of Being an
countries, helps expand the formal economy The public-private partnership, management tools? Edenred partner Yes, the solutions offered by Edenred
coordinated by the European have been a big help during this difficult
by encouraging individuals to declare paid
domestic work such as housecleaning, Federation for Services to Individuals
Commercially, Employee Benefits offered
provides time. They have enabled me to maintain
childcare and personal assistance services, and chaired by Edenred, includes eight
by Edenred ensure a steady stream of additional security. the same number of customers as before.
notably thanks to financial contributions from partners from 11 European countries.
employees, who use the solution every day
the government and their employer. Its objective is to create a guide that Ticket Alimentação fees are justified by the
in our stores.
will help EU Member States to better major benefits the system provides to end
The European Commission currently estimates monitor their policies in support of the users and Edenred partner merchants alike.
Belonging to this network has also proved
that the formalization of the economy human services sector. The project also Being an Edenred partner provides
valuable in attracting new customers. And
could create 5.5 million jobs in the human focuses on such issues as job creation, additional security.
profitability has improved as well. In addition
services sector. the transition to the formal economy
to buying the groceries permitted under
and the return on public investment.
Ticket Alimentação regulations, customers
The long-term goal is to help public
often purchase additional non-food items
authorities enhance their systems’
like clothing and toys that they pay for with
effectiveness.
their own money.
In France In France, more than
1 job 120,000
is created for every jobs are created
23 each year thanks to
the meal
users
voucher system 23
of meal vouchers 22
Source: Fidal-KPMG, 2017
22
Source: “Meal vouchers, beneficial on three levels”,
23
Alternatives Economiques, 2015
30 31Challenge
3
Boost companies’
agility by
optimizing their expense
management
Edenred solutions help companies of all
sizes optimize their expense management,
particularly in relation to employee mobility.
In addition, corporate payment innovations
respond to the emergence of new security
and traceability needs, as well as the
demand for immediacy, especially in today’s
booming e commerce environment.
32 33Optimizing Facilitating
corporate business
expenses travel
In addition to providing
real-time information that
helps us make decisions,
Edenred assists companies of all sizes in managing their expenses, providing Facilitating mobility for employees means offering them
the Ticket Log partnership
customized solutions that are in line with new work practices focused gives us greater security services and interfaces that provide greater autonomy and
on enhanced employee mobility and autonomy. In doing so, Edenred acts and control over avoid upfront costs.
as a facilitator for companies seeking to optimize costs. our monthly expenses.
Hassle-free travel
Solar Group Edenred’s business travel and commuter
Improving traceability Simplifying Ticket Log client, Brazil
offerings respond to new trends in mobility,
while strengthening corporate responsibility
and control within administrative and and agility.
a filtered network accounting processes Thanks to payment cards supported by
dedicated platforms, which are programmed
Edenred is a global player in the Fleet & Edenred’s management tools typically in line with criteria defined by corporate
Mobility Solutions market: leader in Latin interface with the administrative and financial clients, employees can book plane tickets,
America, fast-growing major player in management systems of its corporate train tickets, hotels and rental cars and also
Europe and expanding presence in Asia. clients, incorporating additional services make miscellaneous business purchases
such as centralized billing and automated without having to pay upfront. Employees
Edenred’s Fleet & Mobility Solutions enable VAT recovery, which greatly simplify in Europe and emerging economies alike
corporate clients to: the accounting process for companies. appreciate the autonomy, security and
l establish a network of partner flexibility associated with these solutions.
merchants where employees can make
their purchases; In some countries, Edenred also offers
commuter programs. Commuter Check, for
l set a maximum daily allowance for example, is a flexible, employer-subsidized
employees during business travel; solution available in the United States that
l visualize precise data on employee motivates employees to use public transit
travel expenses (amounts spent, distance or other environmentally friendly modes of
traveled, carbon footprint). transportation. This multimodal approach
reduces employee users’ commuter expenses
Thanks to a defined network and a set of by up to 40%.
personalized management tools, companies
Our company wanted to
can trace, filter and control transactions
more easily and accurately, thereby reduce the administrative Multi-service cards
achieving significant cost savings. costs associated with expense for truckers
management. The business travel market
Thanks to Expendia Smart, totaled more than Truckers spend their working life on the road.
we now have better control
of the process. €28 billion Using a single card managed by Edenred,
truck drivers can make cross-border
Offsetting the Since it was created
I can delegate the task of in 2017 25
journeys and pay for tolls, fuel and vehicle environmental footprint in 2011, the Carbon
Credit program has
travel planning to employees
In France, the three
maintenance at partner outlets.
of travel generated more than
and verify in advance that
their arrangements comply largest travel This eliminates the need to carry large
In Brazil, Edenred’s largest country, Ticket 30,000
metric tons
expenses are: 25 amounts of cash, thereby enhancing safety.
with company policy, Log's Carbon Credit program generates
via an efficiently designed 31% carbon credits by replacing traditional fuel
of carbon credits
Eliminating fraud, web platform. with ethanol in flex-fuel vehicles.
22%
applying filters and simplifying 18%
VAT recovery processes
can generate up to
20% Christina Di Lorenzo
Assistant accountant, Fuel Accommodation Food
24
S ource: Client testimonials with quantitative data
collected annually by Group subsidiaries
in savings 24 25
Source: EPSA Consulting study, 2016
Senvion Italia, Expendia Smart Fleet 26
Source: Internal survey of a panel of 100 French
& Mobility Solution client companies, September 2016
34 35Facilitating
corporate
Supporting new forms Antoine Dumurgier, payment
Chief Operating Officer,
of mobility Fleet & Mobility Solutions,
Edenred
Edenred has extended its expertise to the management of corporate payment.
The growing number and size of these flows has given rise to an increased need
for security, traceability and immediacy.
With Edenred Corporate Payment, launched in 2017, the Group is leveraging
its technological know-how and expertise to address these new challenges.
Why is employee How does Edenred encourage What kinds of solutions A technology Multiple areas of application
mobility a strategic issue responsible management exist for transportation of the future for
for companies? of this increased mobility? professionals?
agile companies
Mobility is an increasingly important issue Thanks to a wide array of fuel cards and We offer solutions that are tailored to
for companies. During travel, employees other solutions for paying for vehicle- the specific needs of transportation and Managing corporate payments such
work very little or not at all and are related expenses, Edenred simplifies life for logistics companies, whose employees are as accounts payable is a complex
susceptible to fatigue and sometimes even employees by eliminating the need to make professional drivers whose main job is to process, particularly for multiple, recurring
stress. Employee mobility is rising steadily, upfront payments and reducing time spent drive a vehicle. transactions, resulting in significant costs for
as are the costs associated with it. reporting expenses. each of the parties involved.
Our objective is twofold: make life easier
Mobility can be divided into two broad For companies, improved control of fuel for the driver and optimize expense To optimize flow management, Edenred
categories: round-trip commutes and business expenditure translates into considerable management for the employer. has introduced a new payment method
travel or sales appointments. cost savings. Our eco-driving and carbon In Europe, for example, we offer featuring innovative virtual card technology. In the travel sector, In the hotel sector, the In the real estate sector,
credit programs also help companies interoperable fuel-card and toll solutions Edenred was chosen by the French online hotel Edenred was selected by
who wish to reduce their carbon footprint that enable long-haul drivers to pay By offering security, immediacy and International Air Transport booking platform HCorpo Foncia, Europe’s leading
New forms of mobility will improve the
achieve their objective more easily. for fuel and tolls with a single card across traceability and eliminating the need Association (IATA) to uses Edenred single-use residential real estate
everyday lives of employees. Autonomous
the continent. We also offer services for reconciliation, the technology yields develop and manage its virtual cards to help large services company, to
cars, for example, will allow employees to
such as access to parking facilities, sizable savings for companies employing new-generation payment companies and government develop a unique digital
rest or work while traveling. The movement
vehicle maintenance, road assistance this type of solution. system for processing the agencies precisely identify payment solution for
of employees from one place to another
and fuel tax recovery. purchase of airline tickets each booking, facilitate collecting the monthly rent
during the workday also generates costs and
from more than 400 airlines payment at checkout and from millions of tenants.
pollution. As a result, companies are looking
worldwide. The system will reconcile cancellations or Based on individual owner
for ways to optimize the carbon cost of their
be exclusively rolled out modifications. and tenant IBAN numbers,
business travel. Large organizations in particular
by Edenred in more than identified wire transfer
are concerned by this issue.
90 countries. systematically provides
New forms Foncia with an overview
of mobility of all payments made by
transfer.
will improve The single-use
the everyday virtual card Identified wire transfer is
90
an efficient and secure
lives of alternative to the check and
employees. The system allows users to make countries and direct debit methods, which
40 million
a secure payment remotely or online are sometimes difficult to
by issuing a one-time number reconcile.
that may only be used for the set transactions
amount of the specific transaction expected
and that expires after a limited time. over the long-term
36 37Challenge
4
Invent the solutions
of tomorrow through
co-construction
Edenred anticipates and embraces
social expectations by co-constructing
innovative solutions for the future
alongside civil society stakeholders,
entrepreneurs and its own employees.
38 39Co-constructing
Working together with our clients
with civil society
stakeholders
Thierry Stucker Alfredo Bernacchi
For the past 50 years, Edenred has supported the social changes that have Industry Financial Programs Marketing Director,
reshaped the world of work. The Group brings together public authorities, Director, IATA, Geneva Edenred Mexico
companies and employees to define and implement programs that make
society throughout the world a better place.
Educating people Ensuring the Every year, one billion meals
are served and paid for
IATA 28
set time frame. Edenred's ability to take into
account the required features, as well as the
Why did Bimbo choose to work with Edenred?
to improve eating habits effectiveness of public across the world under the In 2017, IATA issued an international call for
way it responded quickly and adapted to Alfredo Bernacchi: The more than 30,000
Edenred launched the European Fighting
social programs Ticket Restaurant program, tender for solutions to make the system for
our requirements, was evident throughout the
process and confirmed by the travel agents
vehicles in Bimbo’s distribution network make
over 130,000 fuel purchase transactions per
providing Edenred with a payments between airlines and travel agents
Obesity through Offer and Demand (FOOD) and airlines throughout the test phase. month. The goal was therefore to reduce
Edenred is committed to the management privileged vantage point in more efficient.
program in 2009. The initiative brings management costs.
together public authorities, nutritionists,
of social programs for low-income groups observing eating habits at How is the solution being deployed in
academic researchers and nine Group
and ensures that funds can be traced and work. The digitization Why did IATA choose Edenred to develop its
the 90 countries planned? Edenred's solution of giving Bimbo employees a
are allocated to the right person at the right of meal vouchers to card new IATA EasyPay system?
subsidiaries to improve the nutritional value fuel card that can be used in a filtered network
time. This is a sure sign of effectiveness for and mobile makes it easier
of dishes served during employee lunch Thierry Stucker: IATA and Edenred teams of 460 service stations was very attractive, as
the public authorities, NGOs and private to gather information on Thierry Stucker: One of the key drivers was
breaks. are following the implementation plan, was the simplification of the administrative
partners that contribute to the program, as Edenred’s ability to provide a solution that
employee eating habits and allocating roles and responsibilities based on processes, which reduced the number of
well as for the people it benefits. met our operational needs within the time
The program, which in its early stages was promote access to healthy the specifications of each country. We have monthly bills from 2,000 to 4.
constraints.
backed by the European Commission,
In the area of education, the Ticket and balanced meals. put in place all the necessary data processing
is now run by Edenred with the support and reporting systems between IATA and Were any particular innovations used for the
Juneab program issues food subsidies to Edenred is a trusted partner due to its
and know how of its partners. Since Edenred, in order to ensure the compliance project?
disadvantaged university students in Chile. outstanding quality of service and many years
2012, a survey has helped those involved of the solution and an accurate transaction
In Italy, the Dote Scuola program helps of experience in prepaid solutions. Add to that Alfredo Bernacchi: We discovered during
to understand employees’ needs and Bertrand Dumazy processing.
low-income families with children aged its expansive geographic reach and ability to our discussions that Bimbo had identified a
encourage restaurants to offer healthier, Chairman and Chief Executive
between 6 and 18 to pay for school expenses. effectively manage costs, and we were certain problem of vehicle fuel fraud.
more balanced meals, mainly by using Officer of Edenred Thanks to the soundness of the Edenred
awareness-raising tools. that Edenred was the right choice to make this
solution, IATA EasyPay is gradually and agilely
Edenred also provides assistance in Africa, major industrial initiative a success. To remedy this situation, Edenred suggested
being rolled out to all markets.
where Ticket Agri in Burundi jointly funds the equipping the company's vehicles with the
purchase of farming supplies with farmers How did you work together to co-construct Near Field Communication (NFC) contactless
to improve their harvests and financial the solution during the project? technology commonly used at tolls in order
independence over the medium term.
Since the program began, 300,000 people Thierry Stucker: Edenred's expertise and support
Grupo Bimbo to ensure that only these vehicles could be
refueled. This innovative solution resulted in the
have benefited from this development aid were crucial for developing and deploying creation of Ticket Car GO.
each year. Bimbo, Mexico’s largest network of
IATA EasyPay. Edenred helped us to turn
industrial-scale bakeries, was looking to Co-constructing this solution with Bimbo has
business needs into a technical solution, and
improve the management of its vehicle fleet, also led us to implement an online reporting
resulted in a tool that was perfectly tailored to
which is the most extensive in Latin America. system broken down by vehicle, driver and
our specifications.
transaction, which is now greatly appreciated
During our many meetings, we developed by our clients. Our innovativeness and decision
a stimulating, effective and flexible working to dedicate a team to this solution explain how
environment based on the shared goal of Edenred has been successfully working with
delivering a quality solution within the Bimbo for the past two years.
European restaurant
owners have found that
the demand for balanced
meals has almost doubled
in the past 5 years.
It reached
30%
27
in 2017
27
S ource: 2017 FOOD survey, conducted
on 20,000 employees in 8 European countries. 28
IATA: International Air Transport Association, which brings together most of the world’s airlines, representing 84% of global air traffic.
40 41You can also read
