Edenred (EDEN) investor relations material

Strategic vision and market positioning

• Targets over €5 billion in total revenue by 2030, driven by organic growth, M&A, and a diversified global leadership in benefits, engagement, and mobility, leveraging a unique B2B2C platform and mission-critical infrastructure.

• Operates in 44 countries, serving 60 million users and 2 million merchants, with 96% digital operations and a strong focus on underpenetrated SME segments.

• Three strategic pillars—Attract (client acquisition), Enrich (cross-sell/upsell), and Activate (new services for users and merchants)—drive growth and platform monetization.

• Maintains leadership in Benefits & Engagement, Mobility, and Payment Solutions, with 70% of revenue from markets where it is #1.

• ESG and sustainability are integral, with a net zero carbon emission plan for 2050 approved by SBTi, >70% women in executive positions, and -18% GHG emissions reduction (scope 1 & 2).

Financial guidance and capital allocation

• Targets sustainable and profitable EBITDA like-for-like growth of 8%–12% annually for 2027–2028, with a rebasing year in 2026 (2%–4% growth) due to regulatory changes and portfolio optimization.

• Free cash flow to EBITDA conversion rate expected at or above 65% throughout the plan, reflecting strong cash generation and a shift toward non-prepaid and less regulated activities.

• Annual CapEx to remain disciplined at 6%–8% of total revenue, with 90% dedicated to product and technology, and €1.8 billion planned for product, tech, and data/AI investments over 2026–2028, including a sixfold increase in data and AI spend.

• Balanced capital allocation includes progressive dividend increases, share buybacks, and maintaining a strong investment grade rating, with ample headroom for bolt-on M&A.

• New reporting structure from 2026 will provide business line-level financials, enhancing transparency and alignment with strategic priorities.

Business line developments and innovation

• Benefits & Engagement: Market leader in 31 countries, targeting 2.5 solutions per client by 2028, with strong cross-sell/upsell potential and a focus on SME penetration and regulatory-driven upsell.

• Mobility: Diversified portfolio (fuel, EV, toll, maintenance, fleet management) with a 360-degree e-mobility offer, aiming to double revenue per vehicle with EV adoption and expand to 800,000 more vehicles by 2028.

• Payment Solutions & New Markets: Focuses on innovative B2B/B2C payment solutions, embedded finance, and expansion in fast-growing regions like the Middle East and Asia, leveraging the in-house Paytech platform.

• Retail Media and value-added merchant services are expected to more than triple revenues by 2028, capitalizing on the growing, engaged user base and advanced data/AI capabilities.

• Leverages a mission-critical, open platform with 99.99% uptime, 25m+ cards issued annually, and 500+ API connections.