Edenred: 2010, the Founding Year: Creation of a World Leader who Reached its Objectives

By Edenred, PRNE
Wednesday, February 23, 2011

PARIS, February 24, 2011 -

    - A new Long-term Growth Strategy

    - 2010 performance in line with guidance

    - Issue volume up 10% like-for-like[1], with 15% growth in emerging

    - Funds from operations[2] up 15.1% like-for-like, in line with the
Group's guidance of normalized growth over 10% per year like-for-like

    - EBIT of EUR328 million, at the high end of the guidance range

    - A new strategy to increase the Group's long-term growth potential,
while ensuring that profits continue to rise in the short-term

    - Focus on issue volume growth in Edenred's core business

    Guidance confirmed of normalized growth in issue volume of between 6% and
14% per year like-for-like

    - A faster shift to digital solutions

    Objective: paperless solutions to account for 50% of issue volume by 2012

    - A cash-generating business model

    - Recommended dividend[3] of EUR0.50 per share, representing a payout
ratio close to 70%[4]

2010, the founding year

Unique expertise developed over 50 years in the business

Edenred, which invented the Ticket Restaurant(R) meal voucher, designs
and delivers solutions that make employees' lives easier and improve the
efficiency of organizations. Its unique expertise ensures companies that
allocated funds are used specifically as intended.

World leader in prepaid corporate services, during 50 years of innovation
Edenred has forged relationships with all of its stakeholders, based on
dialogue, mutual interests and responsibility:

    - Companies and public sector customers, concerned with being
      an attractive employer, with motivating their teams and optimizing
      their performance.

    - Beneficiaries, who appreciate the simplicity and convenience of
      service cards and vouchers in making their lives easier.

    - Affiliated merchants, seeking to increase their revenue, retain
      their customers and secure their transactions.

    - Public authorities, looking to improve the effectiveness of their
      social and economic policies, to deliver benefits and to ensure the
      traceability of funds allocated to benefit programs.

2010, the launch year

On June 29, 2010, the Extraordinary General Meeting of Accor shareholders
approved the demerger of the Hospitality and Services businesses, leading to
the creation of Edenred, a pure player in prepaid services that is now listed
on the Paris stock exchange.

Following this decision, in 2010 Edenred laid the foundations for a new
long-term growth strategy in three steps: "Win 2010", "Conquer 2012", "Invent

The membership of the Board of Directors has strengthened Edenred's
international profile and enhanced its expertise in new technologies, human
resources management and innovation.A new management team has been
appointedwith a focus on networked processes and local engagement and
empowerment.Edenred's pioneering spirit is embodied in the EDEN corporate
project (initials of the project's French slogan -
"EntreprendreDifferemmentENsemble" - which has been translated as "Moving
Forward Differently Together.") that is supported by the Group's 6,000
employees. It is the basis of the Edenred corporate brand, which symbolizes
the creation of a specific, federating corporate identity.

The new strategy has led to the redefinition of Edenred's corporate
offering around three types of solution for managing:

    - Employee benefits (Ticket Restaurant(R), Ticket Alimentacion, Ticket
      CESU, Childcare Vouchers, etc.).

    - Expense managementprocesses (Ticket Car, Ticket Cleanway, etc.).

    - Incentive and rewards programs(Ticket Compliments, Ticket Kadeos,

Edenred also offers a range of solutions for public sector customers, to
help them manage their social programs.

2010 Results

The consolidated financial statements for 2010 were approved by the Board
of Directors on February 23, 2011. The Group's main financial metrics for the
period are presented below:

    (in EUR millions)                   2009   2010   % change     % change
                                                     (reported)     (L/L[5])

    Issue volume                      12,407 13,875     +11.8%       +10.0%

    Revenue, of which:                   902    965      +7.0%        +3.9%
    Operating revenue                    808    885      +9.6%        +6.3%
    Financial revenue                     94     80     -14.8%       -16.8%

    EBIT, of which:                      327    328      +0.4%        +2.8%
    Operating EBIT                       233    248      +6.5%       +10.7%
    Financial EBIT                        94     80     -14.8%       -16.8%

    Operating profit before tax and
    non-recurring items                  223    266     +19.4%
    Net profit (loss), Group share      ( 57)    68         -
    Recurring profit after tax           141    165     +17.0%
    Earnings per share before
    non-recurring items (in EUR)        0.63   0.73


Issue volume amounted to EUR13,875 million in 2010, up +10.0%
like-for-like. The reported increase was +11.8%, lifted by the 1.4% positive
currency effect for the year.

The increase reflects strong growth in emerging markets (up +15%
like-for-like). These markets accounted for 55% of total volume, led by Latin
America.Growth in developed countries was a more moderate+4% like-for-like.

This strong performance was underpinned by the Group's solutions for
managing employee benefits related to food (78% of issue volume) and quality
of life (9%) and by solutions for optimizing expense management (8%), which
saw like-for-like volume increases of, respectively, +11%, +18% and +17%.On
the other hand, issue volume in the more cyclical incentive and rewards
business (4% of the total) declined by -19% like-for-like.Lastly, the public
social programs business (1% of issue volume) expanded by a moderate +3%.

The drivers of last year's 10.0% growth in issue volume were:

Increased penetration rates in existing markets(accounting for +5.4
points of growth),supported by growth in salaried employment in emerging
markets.Edenred deployed effective sales and marketing initiatives in all its
markets to attract new clients and beneficiaries,adding more than 62,000
beneficiaries in France and Brazil for Ticket Restaurant(R) meal vouchers and
nearly 13,000 in the United Kingdom for Childcare Vouchers.

Increased average face values (+4.0 points).Targeted initiatives were
launched with clients and public authorities to raise face values in
correlation with wages or prices, especially in emerging countries, and
particularly in Latin America.

New products (+0.6 points).Introduced in Belgium in late 2009, the
Ticket EcoCheque voucher made a substantial contribution to this
increase.Growth was also driven by the deployment of existing products in
other countries, such as Ticket Guarderia in Spain - the same product as
Childcare Vouchers in the UK - which accounted for 50% of the increase in
issue volume in Spain for the year.

The 10.0% like-for-like growth in 2010 issue volume was in line with
Edenred'snormative guidance of between +6% and +14% a year.


    (in EUR millions)                    2009   2010   % change    % change
                                                       (reported)    (L/L)

    Operating revenue generated by
    issue volume                          661    729     +10.4%       +7.0%
    Other operating revenue               147    156      +5.8%       +3.0%
    Operating revenue                     808    885      +9.6%       +6.3%
    Financial revenue                      94     80     -14.8%      -16.8%
    Total revenue                         902    965      +7.0%       +3.9%

Total revenue for the year amounted to EUR965 million, an increase of
+7.0% as reported and +3.9%like-for-like, reflecting:

A 6.3% like-for-like increase in operating revenue to EUR885
.Growth was led by Latin America, while the situation was more mixedin
Europe.Operating revenue generated by issue volume contributed strongly to
growth, rising by +7.0% like-for-like, compared with a +3.0% increase for
other operating revenue.

A 16.8% drop in financial revenue to EUR80 million, due to generally
lower interest rates worldwide.The decline bottomed out in the final quarter
of the year, with financial revenue for the quarter down by just 0.3%

A 2.3% positive currency effect. All functional currencies strengthened
against the euro (in particular the Brazilian real), except for the
Venezuelan bolivar.

EBIT UP 2.8% like-for-like

EBIT stood at EUR328 million, at the high end of the EUR310 million to
EUR330 million
target range.

Operating EBIT up 10.7% like-for-like

In 2010, operating EBIT (which excludes financial revenue) rose by a
strong +10.7% like-for-like.The operating flow-through ratio[6] stood at 49%.

In France, operating EBIT totaled EUR30 million, an increase of +64.9% as
reported and +74.4% like-for-like.Net operating margin[7] rose by 0.5 points
to 1.2%, led by a strong sales performance and effective management of
operating costs.

In the Rest of Europe, operating EBIT came to EUR97 million, down -4.3%
as reported and -5.7% like-for-like.The decline was due to the difficult
economic conditions prevailing in most Eastern European countries and the
competitive pressures observed last year in Italy and Romania.Net operating
margin for the region contracted by 0.2 point to 2.1% for the year.

In Latin America, operating EBIT amounted to EUR139 million, up by a
strong +8.9% as reported and +13.5% like-for-like.Net operating margin was
0.3 point lower at 2.2%, mainly impacted by the negative currency effect
related to the bolivar.Excluding Venezuela, this ratio remained stable year
on year.

In all, operating EBIT as a percentage of operating revenue came to 28.0%
as reported in 2010, compared with 28.8% the previous year. The decline was
mainly due to a negative currency effect.Like-for-like, the margin rate
improved by a strong 1.2 point.

Financial EBIT down 16.8% like-for-like

Financial EBIT - corresponding to financial revenue - amounted to EUR80
. As explained above, the -16.8% like-for-like decline was due to
generally lower interest rates worldwide.


Net financial expense totaled EUR62 million.In September 2010, Edenred
issued EUR800 million worth of 3.625% 7-year bonds to refinance part of its
existing debt.

Recurring profit after tax amounted to EUR165 million, versus EUR141
in 2009, a +17.0% increase.

After deducting non-recurring costs of EUR100 million mainly related to
the demerger (EUR44 million), impairment losses (EUR43 million), income tax
expense (EUR89 million) and minority interests (EUR9 million), net profit,
Group share came to EUR68 million in 2010, following a loss of EUR57 million
the previous year.


Funds from operations before non-recurring items (FFO) amounted to EUR213
, versus EUR184 million in 2009, representing a like-for-like increase
of 15.1%, in line with the Group's guidance of more than 10% annual
normalized growth.

Unlevered free cash flow[8]generated over the year totaled EUR287

Net debt at December 31, 2010 stood at EUR25 million, down sharply from
EUR303 million one year earlier.The ratio of adjusted funds from operations
to adjusted net debt came to 57%, higher than required for a strong
investment grade rating[9].


The float (created by a structurally negative working capital
requirement) amounted to EUR2,249 million at December 31, 2010, an increase
of EUR217 million from theyear-earlier figure.

The medium-term goal is to improve the average rate of interest earnedon
the float while holding firm to the prudent investment guidelines issued by
the Group in terms of counterparties and instruments, by investing 50% of the
float at maturities of more than one year, compared with 13% at end-2010.
Implementation of this objective will depend on interest rate trends.

Lastly, in consideration of Edenred's low capital intensive business
model that generates significant amounts of cash and its net debt of just
EUR25 million at end-2010, the Board is recommending setting the dividend at
EUR0.50 per share, representing,this year, a payout ratioclose to 70% of
recurring profit after tax.

A new long-term growth strategy

Edenred has developed a two-pronged strategy to meet its "Conquer 2012"
objective. It intends to focus on issue volume growth in its core business by
systematically deploying its skills, while accelerating the digital
transition in order to increase its long-term growth potential.

Focus on growth in the core business

The Group is maintaining its issue volume growth guidance of +6% to +14%
per year, focusing on five mainly organic drivers:

Increasing penetration in existing markets: 2% to 5% per year

In 2011, the Group expects to leverage strong growth in Latin America
(although growth rates will reflect high 2010 comparatives) and improved
trends in Western Europe, where unemployment rates are stabilizing.However,
the economic environment in Central and Eastern Europe is expected to remain

Creating new products and deploying existing ones: 2 to 4% per year

Innovation is one of the cornerstones of Edenred's strategy to grow issue
volume. Products launched in the second half of 2010 that will contribute to
issue volume this year include the first expense management cards deployed in
Spain and Italy and the innovative gift solutions introduced in the United
(Compliments Green cards) and India (Ticket Compliments Holiday

In Mexico, the January 2011 Law on Food Aid for Workers paves the way for
the introduction of Ticket Restaurant(R) meal vouchers in a market that could
potentially represent 750,000 to 1 million beneficiaries by 2016. The Group
is already ranked No. 1 in the Ticket Alimentacion food voucher market in
Mexico, with a 22% share.

In India, Edenred is involved in a public social program with the Madhya
Pradesh regional government to secure the distribution of dedicated funds to
families in need. The program is aimed at 5 million families - a total of 30
million beneficiaries - and represents managed volume estimated at around
EUR800 million over five years.

Extending geographic coverage: 1% to 2% per year

This growth driver will make a significant contribution within three
years.The Group has confirmed its objective of expanding into six to eight
new countries by 2016.

Increasing product face value: 1% to 3% per year

Targeted initiatives were launched with clients and public authorities to
raise face values in correlation with wages or prices, especially in emerging
countries, representing more than 50% of total issue volume, and more
specifically in Latin America.

Carrying out targeted acquisitions

In line with its targeted acquisitions strategy, Edenred made two
acquisitions quickly accretive to earnings - one in late 2010 and the other
in early 2011 - that enabled the Group to consolidate its leadership in
existing markets.

With the EUR5.5 million acquisition of Euroticket'sbusiness, Romania's
fourth-largest issuer of meal and gift vouchers, Edenred firmed up its
leadership in the country, where it now holds a nearly 40% market share.

The acquisition of RistoChef, Italy's seventh-largest provider of meal
vouchers, enabled the Group to strengthen its leadership in the country, with
a market share of more than 40%. The transaction was based on an enterprise
value of EUR12 million.

Accelerating the digital transition

The transition to paperless solutions is a strategic priority for Edenred
that will create new opportunities.This technological shift will provide
benefits for all stakeholders, in the shape of optimized processes for
clients and affiliates and solutions that are fast and easy for beneficiaries
to use.It will also enable Edenred to ensure that public authorities can more
effectively monitor and trace the use of dedicated funds.

The digital transition will accelerate in 2011 to meet a new goal of
generating 50% of issue volume through paperless solutions by 2012, versus an
earlier target date of 2016.

During thisspeed up stage (2011/2012),Edenred forecasts one-shotextra
costs of EUR10 to EUR15 million per yearand expects positive long-term
effects as soon as 2013. Indeed, during the digital transition most
paper-based solutions will remain, and start-up and new recurring digital
costs will be incurred.Over the longer term, however, the digital transition
will prove cost-effective, as demonstrated in Brazil by the transition from
paper vouchers to the Ticket Alimentacao card.From 2013, Edenred is aiming
for an operating flow-through ratio of more than 50%.

Concerning recurring capital expenditure, as no major investment linked
to the shift to digital solutions is required,Edenred is still expecting to
spend EUR30 million to EUR40 million a year.


Having completed its founding year in 2010, Edenred is now aiming to
"Conquer 2012" by focusing on issue volume growth in its core business and
accelerating the shift to paperless solutions.This two-pronged strategy will
increase the Group's long-term growth potential while ensuring that profits
continue to rise in the short-term.

At the same time, the Group plans to "Invent 2016" by immediately
pursuing paths to open new growth territories.

UPCOMING EVENT:Quarterly Report released on April 18, 2011

Edenred, which inventedthe Ticket Restaurant(R) meal voucher and is the
world leader in prepaid corporate services, designs and delivers solutions
that make employees' lives easier and improve the efficiency of

By ensuring that allocated funds are used specifically as intended, these
solutions enable companies to more effectively manage their:

    - Employee benefits (Ticket Restaurant(R), Ticket Alimentacion, Ticket
      CESU, Childcare Vouchers, etc.)

    - Expense management process (Ticket Car, Ticket Cleanway, etc.)

    - Incentive and rewards programs (Ticket Compliments, Ticket Kadeos,

The Group also supports public institutions in managing their social

Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 40
countries, with 6,000 employees, nearly 530,000 companies and public sector
customers, 1.2 million affiliated merchants and 34.5 million beneficiaries.
In 2010, total issue volume amounted to EUR13.9 billion, of which 55% was
generated in emerging markets.

Full details of Edenred's 2010 results are available on the Company's
website: www.edenred.com.

Ticket Restaurant(R) and all other tradenames of Edenred products and
services are registered trademarks of Edenred SA.


[1]Like-for-like:at comparable scope of consolidation and exchange rates.

[2]Funds from operations before non-recurring items (FFO).

[3]To be recommended at the Annual Shareholders' Meeting on May 13, 2011.

[4]Total dividend as a percentage of recurring profit after tax.

[5]Based on a comparable scope of consolidation and at constant exchange

[6]Operating flow-through ratio:ratio between the like-for-like change in
operating EBIT and the like-for-like change in operating revenue.

[7]Net operating margin:operating EBIT expressed as a percentage of issue

[8]Unlevered Free Cash Flow is an indicator of the Company's
cash-generating capacity.

[9]The ratio of adjusted funds from operations to adjusted net debt,
determined by the Standard & Poor's method, must be at least 30% to maintain
a Strong Investment Grade rating.

Eliane Rouyer-Chevalier, Executive Vice President Communications -
Phone.: +33 (0)1 74 31 86 26 -eliane.rouyer at edenred.com; Media relations,
Anne-Sophie Sibout, Media Relations Director - Phone: +33 (0)1 74 31 86 11 - anne-sophie.sibout at edenred.com; Nuno Afonso, Press Attache - Phone: +33 (0)1 74 31 86 27 -
nuno.afonso at edenred.com; Investor relations, Solene Zammito, Financial Communications Director - Phone: + 33 (0)1 74 31 86 18 - solene.zammito at edenred.com; Virginie Monier, Investor Relations - Phone: + 33 (0)1 74 31 86 16 - virginie.monier at edenred.com

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