Earnings Call: H1 2021

Jul 27, 2021

Ladies and gentlemen, welcome to the Edenbred 20 21 Half Year Results Conference Call. I will now hand over to Mr. Bertrand Dumasi, Chairman and CEO. Sir, please go ahead. Thank you. Good morning, everybody. Thanks for being with us to discuss about the 2021 half year results for Edenhead. I propose that we move to Page 2 of the executive summary. So what do you need to know about those results? First of all, Edenorhead has been able to deliver close to 10% like for like operating revenue growth versus 2019. So it is fair to say that Eden Red has much more than recovered the ground lost in H1 2020. In number, versus Q2 2020, we are up almost 31% like for like, which means more than 20% growth across all regions versus H1 2020, we are up 15.3% like for like, meaning double digit growth across all regions and business lines. And more importantly, as compared to H1 2019, we are up 10% like for like. And it is to be noted that we have some areas still lagging behind due to the COVID situation, notably employee benefits in Latin America. So to make a long story short, Eden Red has demonstrated that its growth potential is intact with a relevant offer and a very good sales dynamic. So we posted solid financial results in H1 2021, and we maintained our robust financial position. So our total revenue is up 15.2 percent like for like. Our EBITDA is up almost 21% like for like at €295,000,000 driving the EBITDA margin up to 39%, which is an improvement of 2 30 basis points as reported. We also generated strong cash with double digit like for like FFO growth to €254,000,000 Our net profit group share posted at €133,000,000 which is a growth of +33 percent. We have a high level of liquidity and a solid balance sheet with the issuance of a €400,000,000 sustainability linked 7 year convertible bond. Finally, S and P reaffirmed our strong investment grade rating in May 2021. So based and I move to Page 3. Based on these results in H1 2021, based on the fact that we will continue to leverage our platform to generate sustainable and profitable growth. We are able to raise our guidance for 2021. So the 2021 outlook for Edenhead is a like for like EBITDA growth upgraded to a minimum of plus 9% versus what we previously guided with a minimum of plus 6%. It means an EBITDA guidance range for the year 2021 between €620,000,000 6.70 €1,000,000 So now if we go into the details of those results, I propose that we move to Page 6. As you notice, H1 twenty twenty one operating revenues bounced back 10% higher than the pre COVID level. What you see in the graph on the left of the Slide 6 is the pattern of the year 2020 and the pattern of the first half of the year twenty twenty one. Remember, we entered after a historical year in 2019. We entered with double digit growth in Jan Feb, 2020 then the COVID. So Q1 was at plus 6.6 percent. Then the recession due to the COVID, minus 15% and only one quarter of recession, Eden Red moved back to the growth area with 0.9% in Q3, 1.2% in Q4. So stronger growth quarter after quarter, 3.6% in Q1 2021 and almost plus 31% in Q2, leading to an H1 2021 at plus 15.3% like for like. So if we focus on 2021, we had an encouraging start of the year in Q1, even if there were some restrictions in major countries until May. And then we saw an acceleration of the recovery since the month of May. Why? We had the reopening in Europe in June. So we saw an acceleration at the back end of the quarter. Unfortunately, the situation in Latin America is still distressed and in fact very changing from 1 month to another. That's why we think we have the reservoir of growth to come in Latin America, especially on benefits. If we move to Page 7, you have the breakdown of our performance per geographies. And what you can see is we generated double digit like for like operating revenue growth versus 2019 everywhere except in Latin America, where the health situation just mentioned before remains challenging. So in Europe, versus 2019, plus 11% versus H1 2020, plus 15%. Rest of the world, almost plus 14% versus 2019, plus 10%, slightly more versus 2020. Latin America versus 2020 H1, plus 17% versus H1 2019 plus 6%. If we move now to Page 8, you have the breakdown per, in fact, business lines. So the first one, employee benefits, representing 61% of our total revenue. You see that, in fact, our performance versus 2019 is plus 3.3% but versus 2020 double digit growth at plus 13.4%. In fleet and mobility versus 2020, 20% growth versus 2019, 17% growth. And complementary solution versus 20%, almost plus 15% growth and versus 2019, an impressive 27% growth. So as you can see, Edenhead has been able to generate growth in every geographies, but also on every product lines, whether versus 2020, but also versus 2019, with a reservoir of growth in benefits, especially in Latin America. What does it mean for the margin? Page 9. As you remember, we are a scale business. So as soon as the growth engine is back to the level that we used to have before the COVID crisis, we see an improvement of our EBITDA margin. So in H1 2021, we post a 39% EBITDA margin versus H1 2020 at 36.7% and 39.9% in H1 twenty nineteen. So Page 10, yes, Eden Red is an agile and scalable platform, and we demonstrated in H1 2021 that our growth potential is intact. So as a reminder, Eden Red is a platform allowing quick client onboarding as well as fast development of new solution. This platform of intermediation is very unique because we have a B2B2C, go to market model. We are solving inefficiencies or pain points in 4 universities, the IT universe, the MOVE, the CARE and the pay. And we operate in 46 different countries with and through a specific purpose wallet, enabling public and private regulation and earmarking funds to specific merchant verticals. That's who we are making the connection between 50,000,000 users and 2,000,000 merchants. This very unique platform that is agile and scalable, so leverageable. What we have been doing is to have a disciplined business execution to fully capture Edena's growth potential. So Page 12, you see the mantra. So we are going after scale, we are going after innovation and we are going after transformation. If I start with scale, Page 13, Our job, obviously, on a daily basis is to capture the full potential from our customer base and product portfolio. Remember, we serve 50,000,000 users around the world through 2 50 different programs. So job number 1 is to deliver high quality service. And you can see that, in fact, our indicators are improving quarter after quarter. Our job is also to upsell and cross sell. Upsell means to unlock the full potential of maximum face value increase. And in fact, we are on a positive trend because the face values have increased in many countries. In fact, to face the effect of the COVID crisis, Many governments decided to increase the face value. It is the case in Italy, in Romania, in Austria, in Bulgaria and in Turkey, for example. But to cross sell as well, we leverage our new products and to be able to cross sell them and increase the client's stickiness. A typical example is the Beyond Fuel program, and I will come back to that later on. In terms of scale, Page 14, obviously, our job is to continue to further penetrate the market through the segmented approach. Yes, our markets are still vastly underpenetrated. And in fact, this penetration can be boosted by post COVID trends. For example, work from home, we drive further ticket restaurant penetration because employees need more flexibility at lunchtime. To give you an order of magnitude, more than 250 contracts have been signed by Eden Red in the last 12 months with clients who formerly used 100% physical content. And they moved to the virtual content, and they want to move with the leader of the market, which is Eden Reade. We are not afraid to partner. So we are pleased to announce that we partnered with JCINA, which is the leading owner of office space in Europe. And JCINA and ourselves, we work together to make sure that JCINA integrate the seamless and digital ticket restaurant experience in its offer towards its 100,000 customers. Another way to say it, anytime a client is moving to a new Jaesina offices, what will be proposed to this new client instead of having a physical content is to have access to a virtual content and maybe to do some savings and please know, in fact, their employee base. Our job is also to seize the SME opportunity. So by leveraging our external distribution channel, we are pleased by the ramp up of our Itau partnership in Brazil, Itau being the 1st and the largest, in fact, private bank in Brazil. And we are pleased to share with you that in H1 2021, the level of new SME contracts that we signed is equal to the level we were signing in 2019. So on SME contract penetration, we are back and we are back on steady growth. That's for scale. Then the second part of the mantra that we call innovation, Page 15. Innovation, obviously, to fit new working trends. So we are proposing greener and more flexible committing solutions, whether, for example, in France with the TK Mobility or in the U. S, as an example, with commuter benefits. Our offer has been enriched by including micro mobility partners. And you have the list on the bottom left. And thanks to this offer that has evolved, that is more reached of more reach of new partners. In the U. S, we have been able to sign many new clients, an iconic one like Intuit, Harvard or Asana, but also the leading global e commerce company. I cannot say the name, which is for me, but I'm sure you will recognize them. Innovation also to support the shift to new ways of working, new ways of working, for example, with what we call the home the remote working. So we developed the ticket mobility ticket. It's a digital account, for example, in France, up to €550 that is combined with an e commerce platform with more than 4,000 office equipment and consumables references. And in fact, as an employer, you can give this amount to employee And this amount is tax exempted only if you respect, in fact, the conditions of the program. So that's our ways to support the shift to new ways of working, what we call the home office. Then the innovation is also used at Page 1617 for specific purpose programs. So we are proud to share with you the example of the digital food headcount for elderly people that we launched in Romania. It was and it is a 100% digital solution for 150 beneficiaries. What is very interesting is the average age of the user of this program is 83 years old and the digital activation rate is above 80%. So even the elder generation is able to use our earmarking forms solution. And it's a great news because it is the proof that we have a lot to bring to the society. And if digitalization is well done and propose a very seamless user experience, The other ones with an edge that is above 80 are also able to use our solutions. Page 17, another example is the Benefit Xpress 2.0 COVID-nineteen survival pack that we launched in Taiwan. As you know, Taiwan has been confined for the really for the first time. And in fact, many employers want to take care of their employees who are working now from home, and they want to do it in an efficient, safe manner amid the COVID-nineteen pandemic. So we developed this contactless, multi brand digital benefit to buy all essentials with, as usual, with Eden Health, the dedicated online network. So we are pleased to announce that we have more than 35,000 users. And among our clients, very iconic clients such as Google, Qualcomm or J and J in Taiwan. We are leveraging also our innovation effort to offer a seamless experience, Page 18, where one of the crusades that we embarked on is to propose a very seamless experience from A to Z to our users and to our clients. So from online sales ordering and onboarding to 20 fourseven self customer care. So you have an example of the innovation that we launched. For example, the 2nd step, the plasticless format, 0% paper, 0% plastic, all on your mobile. And now it is in 5 different countries and more to come. As you may know, we have a flexible and comprehensive offer because more than 1,000,000 restaurants are connected to our platforms. And in fact, if you add mid delivery partners, we have more than 100 global and local partners who are connected to the Eden Red platform. So one or two last examples of innovation, Page 19, the Beyond Fuel program, I was talking about in executive summary. We are also leveraging innovation for the Beyond Fuel program to enhance fit and mobility value proposition. Three examples. In Brazil, our new GoHub platform for fleet managers, now fleet managers can connect and they have access to all their service related to fleet management. In Europe, the UTA-one box to pay tolls, It's now available in 13 different European countries. In H1 2021, we have been able to increase this number by 5, moving from 8 countries to 13 different countries. The third example is the launch of a dual tank and to pay fuel and tolls in Mexico. And finally, we launched our CO2 offset programs in Latin America, more to come very soon in Europe. And in fact, we are pleased to say that in Mexico, this program has been adopted by 20% of our client base. So it's a strong start and still a lot to go. To finish on innovation and CSI, you know that our job is to scale CSI through white papers and service ecosystem. We have a strong value proposition. It's a digital automation platform to save time and costs. It's a cloud based platform that is available, obviously, 20 fourseven, including when you work from home. And we have been integrating CSI with strong partners, so payment partners. We are dual virtual card issuer with Mastercam and Visa. We are now integrated into management solution and payable solution with Sage. We developed our indirect distribution and commercial partnerships with U. S. Banks such as Citi or Bank of the West. And we are now back to our revenue level of 2019 with some new sales that are offsetting some depressed client volumes still in hotels and media industries. The last part of our mantra is transformation. As we shared with you previously, we further integrated sustainable and sustainable development into Edenrad performance. So you remember that we unveiled our purpose at the 2021 Annual General Meeting, and our purpose is to enrich connections for good. We also integrate in the managers long term incentive plan 3 commitments of our sustainable development plan, 1 in people, 1 in planet, 1 in progress. So in terms of ability to get some free shares, 25% of the performance is now linked for the top 350 people of Eden had linked to those sustainable development objectives. And in fact, we use them, let's say, what is offered on the financial markets. And based on that, we have been able to leverage new sustainability linked financing instrument with a €400,000,000 convertible bond that we have been able to raise with a negative yield to maturity of minus 12 basis points. And this, in fact, financial instrument is linked to the ability to achieve by 2025 3 sustainability criteria, 1 in people, 1 in climate and 1 in progress. So that's what I wanted to share with you, to explain to you the performance of Edenhead in H1 2021. I propose now that we go more into the detailed performance and results. Thanks to Julien Tanguy, the CFO of the group. Julien, we are all yours. Thank you, Daphne. Good morning, everyone. I propose we move now to Page 23 to review our H1 twenty twenty one performance. The first half of twenty twenty one demonstrates a strong recovery despite a challenging Operating revenue in Q2 is up by 30.6 percent like for like and almost 28% in reported figures. This very strong performance in Q2 brings our revenue to €736,000,000 in H1, I. E. A growth of 15 percent in like for like and 9% in reported figures. As already mentioned by Bertrand, it is a 10% growth versus 2019 in like for like. I propose we analyze the key driver of the strong performance of Eden Ref through some comments about 2 main regions, Europe and Latin America. Before moving to discussion, I remember you that during this H1, our activity has been impacted by the age situation, but at different level according to the geographies. And the comparison basis in Q2 is favorable. In Q2 2020, have been impacted by full lockdown in most of the regions where we have operations. Let's move to Page 24. So in Europe, the 15% growth in H1 is the result of a good sales momentum combined with gradual reopening linked to the situation. Our revenue is growing by more than 11% compared to 2019. In France, the growth in Q2 is close to an impressive 60%. In 2020, the lockdown did not allow our users to spend their benefits. In 2021, thanks to a progressive reopening starting in the second half of May, the revenue has been slightly boosted by the catch up of reimbursement volume accumulated during the Q1 of 2021. This catch up has started but is not over yet. Funds has been accumulated in 2022. On top of that, France delivered solid commercial success, especially on digital ticket restaurants, thanks to our digital leadership. Compared to 2019, we delivered a mid single digit of new growth. Regarding the rest of Europe, like in France, we delivered a solid recovery impacted by the gradual easing of restrictions in the second half of the quarter. The double digit growth is a consequence of our capacity to innovate in all our business lines. I share a few examples with you. The digital gift solution in Italy for employee benefits and the Beyond Fuel strategy and our range of services that includes tolls and VAT refunds for fleet and mobility. All in all, the performance is robust across all business lines and market segments, driving double digit growth versus the H1 2019. Let's move now to America on Page 25. In Latin America, the health situation has been challenging during the last quarter. In this context, we have delivered mid single digit like for like growth versus H1 2019 and a strong growth versus 2020. In Brazil, we have posted an increase of 31% in Q2, thanks to an excellent performance in fleet and mobility, supported with the success of our B and Q services and especially our maintenance solutions. Our sales performance is also solid. The partnership with Itau, one of the largest banks in Brazil, and the employee benefit market is continuing its ramp up in a challenging health situation. In Latin America, we are deploying also our Beyond Fuel strategy across the region and the deployment is doing well, delivering growth. In Q2, the growth of this region is above 30% despite a difficult and fast changing health situation in several countries. In this uncertain environment, Latin America revenue is up by 17% like for like compared to 2020. This is it for the operating revenue. Let's move now to the other revenue, previously named financial revenue, and I'm on Page 26. Other revenues stand at €21,000,000 growing 10% in like for like and down by 3.5% in reported figures. In Europe, we have higher level of float, but lower interest rates. Non Eurozone countries have strongly decreased their interest rates from Q2 2020. It is the case in the UK, in Czech Republic and in Romania. In Latin America, the level of float is higher and our aging policy compensates the decrease of interest rates in Mexico. In the rest of the world, we have big change in percentage, but low amount in euro. This change is mostly driven by Turkey where interest rates increased strongly, compensated by negative ForEx impact. So to have a global view on our total revenue, I propose we move to Page 27. As a conclusion on top line, I remember total revenue is the sum of total acting revenue and other revenue. In Q2, our total revenue is up by 30% in like for like. This growth in Q2 allows us to deliver a 15% growth in H1. It also means 8.8% growth compared to 2019 in line for line. We move now on Page 28. So thanks to a strong growth of our revenue, the EBITDA is up by more than 20% like for like in H1 2021, and our EBITDA margin stands at 39%, which is an improvement of 183 basis points in like for like compared to 2020. The increase of EBITDA at 21% is higher than our revenue increase, plus 15%, demonstrating our capacity to leverage our cost structure. EBIT is growing by 25.8%. The increase of EBIT in amounts is the same as the increase of EBITDA in amounts. Our operating EBIT margin is improving by 2 73 basis points like for like compared to last year. If we move to net profit, the net profit group share is increasing by 33% and stands at €133,000,000 As we already saw, the EBIT stands at €232,000,000 Main variations compared to 2020 regarding the net profit are other income and expenses and net financial expenses. Other income and expenses goes from minus €30,000,000 to minus €7,000,000 explained by lower level of write off compared to last year. And the net financial expense is improving by €6,000,000 and is a consequence of a one off event, I. E, the valuation at fair market value of our investments in ParTech Partners. I propose we move now to the free cash flow. With an EBITDA increasing by 15.6% in reported figures, our FFO is increasing by 22.7%, demonstrating a strong level of conversion and the capacity to generate cash from our operations. The working capital and float numbers in H1 2021 shows a return to normal free cash flow pattern. Our float decreased by €189,000,000 in H1 2021. It has decreased by €256,000,000 on the same period in 2019. The flow decrease also points out the gradual use of prepaid funds accumulated in 2020 and Q1 2021. Our level of CapEx is slightly below last year at €37,000,000 At the end of H1, the free cash flow generated since the 1st January is minus €68,000,000 Let's move now to our net debt evolution, and I'm on Page 31. The bridge presented on this slide is from June 2020 to June 2021. The free cash flow generated over the last 12 months stands at €459,000,000 as we can see on this page. Thanks to this free cash flow, the net debt has decreased since June 2020. At the end of June 2021, our net debt stands at €1,450,000,000 With the net debt that has decreased, we have a robust financial position, as we can see on Page 32. We have a high level of liquidity and a solid balance sheet. As Bertrand mentioned, we have been able to issue a first sustainability linked 7 year convertible bond of about €400,000,000 in June. It is a 0 coupon and negative bond with a 7 year maturity. At the end of June, our balance sheet is solid. We have €4,900,000,000 of cash equivalents, restricted cash on our balance sheet. We have over €1,500,000,000 of financing options available, and we have no financial covenants. Our BBBPs rating has been reaffirmed by Stellan Poor's in May 2021, and we have no major reimbursement before 2024 and the bond that is due in 2024 is a convertible bond that could be converted into shares. Bertrand, I'll let you mic for the end of the presentation. Okay. Thank you, Julien. So based on the detailed financial performance, what does it mean in terms of outlook and guidance for 2021? I propose that we move to Page 64. First of all, our growth potential is intact and now Eden Red is well on track to harness it. So remember that we have 4 trends accelerated by the crisis that are bringing new opportunities for Edenhead. First, we are living in a more connected digital and contactless world, so it's good for Edenhead. We are living in a more remote working world, and Edenhead is developing new and innovative solutions to fit those new needs. We are living in a world seeking for more responsible behavior and Edenhead is a platform for good. And finally, in the corporate world seeking more efficient and secure payments, Edenhead is digitalizing B2B payments. The second element to have in mind is, yes, as usual, Edenrad will deliver a disciplined business execution to fully capture our growth potential. We will focus on scale, on innovation and on transformation. So yes, the growth potential of Eden Reg is intact, and we have the strong willingness to harness it. If we move to Page 35, in fact, in H1 2021, we demonstrated some strong business trends that are leading to significant outperformance versus 2019. Our operating revenue has been growing at double digit growth in H1 2021 versus 2019, but we still have some recovery potential in France and Latin America, where employee benefits were or are still impacted by COVID related restriction. However, there are still some uncertainties regarding the health crisis. You noticed the recently announced resolution related to new variants. And so very humbly, we don't know the exit timing of the health crisis, and so it remains uncertain. Finally, when we look at the macro environment, we see both tailwinds and headwinds. Among the potential tailwinds, inflation that could start increasing a little bit and maybe the rise of short term interest. But there are also some potential headwinds such as the GDP growth or the unemployment level. So based on the strong performance of H1, based on the fact that we see significant positive business trends for Edenhead, but aware as well on the uncertainties as to the exit timing of the prices, Page 36. We are happy to, in fact, increase our minimum 2021 like for like EBITDA growth guidance, we are happy to upgrade it from 6% minimum to 10% minimum. What does it mean in numbers? It means that our reported EBITDA guidance for 2021 is between €620,000,000 €670,000,000 Thank you for your attention to this presentation. And Julien and myself, we are now all yours to answer all the questions you may have. Thank you, sir. First question is from Mr. Simon Lachey from Stifel two questions for me, please. First of all, could you give us an update on the backlog of volumes at the end of June? And secondly, on like for like growth, could you share with us the exit rate in June and also your expectations for H2 in the context of EBITDA guidance, please? Thanks. Hello, Simon. So Julien, maybe I let you give the answers on the backlog of the volume. I guess, Simon, you mean the reimbursement volume that did not become reimbursement yet? Yes, sure. Yes. Yes. So as you know, due to the head situation in the last quarters, some funds have been accumulated by our users and have not been spent yet in our network. As I said during the presentation, the catch up of the backlog has started, especially in Europe and in France, thanks to the reopening of the restaurants at the end of May. But it is only the beginning of this catch up, meaning that, obviously, all the fans that have been accumulated during the start of the pandemic is not over. What we see is that what has been accumulated in Q1 has been spent in Q2, especially during the month of June. It means that the amounts that have been accumulated at the end of last year are still to come, and it will probably be spent during the last 6 months of this year. And this is included in our guidance. Okay. If I go back to the second question, so to be sure that everybody understand the notion that I just discovered of exit rate, I guess you mean the like for like growth in the month of June, I. E, the last month of the quarter. So as you know, Simon, we don't communicate on a monthly basis. But what I can share with you is the month of June is in the same line as the quarter of the Q2 of the year 2021. So we are well on track for the 2nd part of the year. Okay. Thanks. Thank you, sir. Next question is from Mr. Julien Richer from Kepler Cheuvreux. Sir, go ahead. Good morning, everyone. Two questions also for me, please. The first one in terms of SMEs, you mentioned the fact that new SME signature is in line with pre COVID level. I guess it includes the partnership with Itau. We have a little bit more color on the Itau partnership? What is the contribution at this stage? What you expect at cruising speed? And when do you expect cruising speed to be reached? And second question about the health restriction that you mentioned and especially the COVID passport that has been announced in France and Italy. What might be the impact on restaurants? Do you think that this might have a negative impact on volume? And given the different kind of client fee that is paid between restaurant and large supermarkets, for example, Do you think this might be an headwind in the coming months? Thank you. Okay. Hello, Julien. Thank you for your two questions. The first one as to the SMEs. Yes, the ICAU partnership is part of our SME penetration effort. And it's what we in fact, what we announced when we signed the partnership 2 years ago. So where do we stand? As I said, 18 months ago, I was not happy about the results of this partnership in the sense that we were not as far with the plan. We all committed to on both parts. And both parts worked hard to make it happen. And it's not an easy task, in fact, to train the salespeople, to incentivize the salespeople and to get some experience at the sales level from Itau because our programs are not that easy to sell. They are very technical and they need an initial investment very significant. Now that it has been done and now that the 2 parts really want this partnership to work, we see an improvement month after month. And by the way, that's something I look at very carefully at every monthly business review that we do with every operating company of the group. And so what I can say is now in 2021, the results we got for the 1st 6 months of the year are in line with the plan. Having said that, it will take time to get a significant strong contribution at group level because it's a machine. It's a machine that is doing well, but it's a machine that is deployed only in Brazil versus only in Brazil and for ticket restaurant. So to make a long story short, very encouraging SME results, very encouraging ramp up of the Itau partnership. And I think we will be, let's say, at our speed rate of full potential 12 to 18 months from now. Next question is from Mr. Paul Stivivant from Barclays. Sir, go ahead. No, sorry, sorry, sorry. Sorry. I'm sorry. That's why Julien was somehow mute. There was a second question as to the health restrictions. So and what might be the impact of the health restriction that we see arising everywhere around the world? So yes, we see some sanitary pass that are put in place here and there. The truth is we don't see the impact yet in our numbers because there is a lot of talk. But in terms of implementation, we are not there yet. What could be the impact? We don't know yet. It's part of our guidance. What we think is, once again, as it happened for the last 18 months, if for whatever reasons, the sanitary passage will create some time to go to the restaurant, I. E. I don't go to the restaurant and I prefer to wait. What we observed for the last 18 months when the restaurants were closed, we saw an accumulation of voucher. It means that the revenue is not lost. The revenue is just delayed, okay? So and the other thing we saw as well and it was one of your question, we didn't see any major change in merchant mix. So to make a long story short, as of today, we don't see the impact of the idea of putting in place the same tariff passes. And if it happens, we think it's going to be milder than what we saw with the confinement. But following the same pattern, I. E, there will be an accumulation of voucher. So the revenue is not lost. The revenue is simply delayed, and we don't expect any significant change in the merchant mix. And remember that the people got adapted to the situation, so we saw some evolution of behaviors. And thanks to our strong partnerships with new delivery platform, we have more than 100 new delivery platform partners now that are connected to Edenhead. There are some alternative to have access, in fact, to the menus of the restaurant. That's why we didn't see any major change in merchant mix. Thank you. Thank you, Junior. Next question is from Mr. Paul Sullivan from Barclays. Sir, please go ahead. Yes. Good morning, everyone. Just a few for me. Firstly, just a follow-up on the second half growth. I mean, on balance per trend, do you expect an acceleration on the 2 year growth rate that you saw in the Q2? And sort of in a bit more detail, I mean, can you sustain the momentum in fleet and then accelerate in benefits? That's the sort of the crux of it. Secondly, could you just talk a little bit more about the moving parts within complementary? Sort of rolled off a little bit in the second quarter with a bit of a drag. And can you put some numbers behind the uplift in corporate payments? And also, can you talk about the sort of the market positioning there? And then finally, your ambitions as you move from products towards a fully fledged benefits platform, could you just talk about what your sort of ambition is there? And just align to that, do you think we'll need to see more investment or M and A to deliver on that potential upside? Thank you. Thank you for your three questions. And guess I need 60 minutes to answer to all of them. Sorry. No, no, no. The truth is there is a lot of passion on our side behind. So if I take them 1 by 1 and I do it in view with Julien. So I start Julien and anything you would like to add. So first thing is the 2nd part of the year, as I said, we many positive things based on the results of H1. And we have one big uncertainty, which is the acceleration of the variant. And the truth is when we look at the variant, we all know that it's going to happen, I. E, the propagation is going to be very fast. The level of infection is going to be very high. The thing that we don't know is the severity of the cases. So it's going to be a balance between the quantity times the severity. And so we don't know yet how it's going to be planned. That's why we came with a range knowing that the €620,000,000 of EBITDA is in fact something we are comfortable to do whatever the situation, unless there is a nuclear explosion. So what do I expect in the 2nd part of the year? I think and one of your question was benefits versus fleet. I think the trend you saw in benefits will continue. We could be hurt a little bit by the evolution of the variant, but we don't know the severity. If things are going better in Latin America, knowing that we didn't perform as good as we would like based on all the restrictions you saw in many major countries and for us, especially Mexico and Brazil. So benefits, it could be slightly less. It could be more depending on the evolution of the variant. And to be observed precisely in the situation in Latin America where we are not yet at our full potential. In terms of fleet, when we look at the momentum we have on our Beyond Fuel program, as of today, we don't see any reason why we will not sustain a solid double digit growth in the 2nd part of the year. Even if the basis of comparison, obviously, is going to be much more favorable in H2 because in Q2, Fleet and Mobility, Q2 2020 has been badly hurt. But the fundamentals of our Beyond Fuel program, the competitiveness of our energy cards that we are bringing to the market, we don't see any reason why the good fundamentals will not continue. So do I see an acceleration in H2 versus H1 based on the uncertainty we have with the variant? It's too early to say, But the fundamentals are there, I. E. Underpenetrated market, very good commercial dynamism, innovation that is spot on. The combination of that are the fundamentals and the good engines that will continue in H2. You talk about the moving parts, for example, social programs that we developed in COVID time. So we gave you the example of Romania and the example of Taiwan. The truth is on those ones, we don't know. So if the COVID becomes strong due to the variance, it could have an impact on food and benefits, but the good news is we demonstrated that we're able to leverage very quickly our digital platform. So some of the programs will stop, some new programs will appear. We don't know. The only thing we know is in every country because we are local made of local companies in every local countries, we will do everything we can to leverage the opportunities that will appear based on the situation we are in. So for example, 1 month ago, I was completely unable to talk to you about Taiwan because Taiwan was not recompined. Taiwan was the number one of the top countries where the COVID was so weak and suddenly things have changed. And the agility of Eden had because we are able to leverage the platforms that we have been developing for the last 3 years. So yes, there are some moving parts. It's part of the guidance between $620,000,000 $670,000,000 But what we lose on one hand, we are able to compensate on the other hand. Your first question was about our ambition as to the benefits platform. Yes, we love all the markets we are in, and we love the benefits market. We are the number one in the world. And all the investments and efforts we have been doing in the past are paying off. They are paying off because when you look at our resilience versus the major players around the world, you will see that in bad times, such as in 2020, we have been much more resilient than our competitors. And then when the time of the rebound comes, what you see in H1 2021 is we've rebound, in fact, faster and higher than the competitors. And it's due to all the investments and our commercial dynamism in every country. So do we want to continue to invest? The answer is yes. Do we want to do some M and A to consolidate when it's faster, when it's cheaper via consolidation and via acquisitions? The answer is yes. Are we strong enough in terms of balance sheet to make some acquisitions? The answer is yes. We are stronger today than we are than we were, in fact, at the presentation of our results in March 2021. So yes, in benefits, we will continue to invest whether via organic growth or via some acquisition. And yes, we will continue to monitor closely our CapEx, but we are here to prepare for the future because we are absolutely convinced that our growth potential is intact. And let me remind everybody that, in fact, in 2020, we took the courageous decision to continue to invest, and our level of CapEx has increased by 6%. So in 2020, even in tough times, we were convinced by the future of growth of Edenhead and by having continued investing, probably now we get the benefits of this sustained investments by rebounding faster and higher than our competitors. One of your sub question, and then I will start, is as to corporate payments. Yes, we believe in the market potential of corporate payments in the U. S. We believe more now than before the crisis because the crisis revealed in the U. S. The absolute need to move from cash and check to digital payments. We built and we increased infrastructure in 2020. We have more partners of distribution and integration. And we see, in fact, the level of sales that are close to the level we had in 2019 even if, unfortunately, the media market and the travel American economy is very dynamic, more dynamic in B2C than in B2B. And in B2B, unfortunately, it's not as dynamic as we would like it to be in Media and Hospitality. But thanks to the new sales, we are able to compensate the trends we see in Hospitality and Media. So to make a long story short, at CSI, we will see some strong double digit growth in 2021. Very comprehensive. Thank you very much. Thank you, sir. Thank you, sir. Next question is from Mr. Rahul Chopra from HSBC. Sir, please go ahead. Hello. Yes, couple of questions from my side. In terms of Latin America and France, can you give a sense that where are we related to 29 within the employment benefit category, please? That's the first question. And secondly, in terms of digital penetration versus SME versus large customer given the work from home and digital eruption, could you just give a sense of how that penetration has moved for SME's customers in general? Thank you so much. Hello, Raul. Thank you for your questions. The connection for your first question was not excellent. So you talked about Latin America and France in benefits, but then there was a cut. So can would you be kind enough to repeat your question? Yes, please. So basically, yes, that's what I was referring. So related to 2019 levels, where are we within the benefit in France and Latin America? I think you said about the wider geography, but within the specific segments, if you can give, please. Okay. Okay. So maybe so first of all, what we said is in Latin America, when you look at the COVID-nineteen situation in the 2 major countries that are, in fact, the 2 engines in Latin America, which are Brazil and Mexico, what you can see is that from 1 week to another, you can move from an orange confinement to a green free zone and then back to a red confinement. Things are changing on a weekly basis, first thing. The second thing is this week and last week, the situation was getting better in Brazil, but the situation was getting worse in Mexico. So we are in a situation of acceleration and deceleration depending on the level of confinement and deconfinance. And it is done in the normative band that has been poor in Latin America. As you know, Brazil is one of the worst performing country in terms of level of vaccination and high level of contamination. So the economic recovery will happen in Brazil, but we are not there yet where we would like to be. The level of unemployment is still very high. The GDP growth will go better if I listen to the macroeconomists, but will not be a good year in 2021. So to make a long story short, when you look at the performance of benefits in 2021 versus 2020, the double digit growth numbers are very encouraging. But if you compare them to 2019, the growth we have demonstrates that we are not yet at our growth potential. The growth should be higher. And Latin America is the main contributor to that. So for us, it's a reservoir of growth. And we are very committed to go after this reservoir of growth as soon as we face better sanitary conditions. To a lesser extent, the situation in France can be better than where we are today, even if where we are today is very encouraging versus 2020. But as previously said and based on the question of, in fact, of SIMON, we know that we have some backlog, I. E, business volume that has not been yet transformed into reimbursement volume. So we know that the situation is also a reservoir of growth for France. Your second question as to the mix due to the COVID situation. In fact, the COVID situation did not change our willingness to further increase the penetration of our solutions. For a long time, both solutions were only for large companies because they were not easy to handle because they were not digital solutions. Now that we fully digitalize all our programs, it's much more convenient from a client perspective and from a user perspective. So and we know that the markets are vastly underpenetrated, and we know also that part of the underpenetration is coming from the SMEs. That's why it was a reservoir of growth for us before the crisis. We have been able to grow the number of contracts during the crisis, but the growth was not as good as this was before the crisis. That's why we are very happy to be back to the new client level signature we had back to 2019. But we also go after large clients because they are new working trends. So beyond fuel and so if you think about the fleet management solutions, it's for fleet managers who have hundreds of vehicles to manage. When we develop maintenance, obviously, it's for fleet that has a significant size. And when we talk about the virtual content, the move from a physical content to a digital content, when we partner with JCNA, this offer is mainly for large clients. So to make a long story short, thanks to the digitalization and the agility of Edenhead and the decentralization of Edenhead and the willingness to segment, we are able to go after small, medium and large clients, and we are able to customize our offers and our go to market. That's helpful. Thank you so much. Thanks. Thank you, sir. Next question is from Mr. Geoffrey Delroy from Bank of America. Sir, go ahead. Yes, good morning, everyone. Three questions from my side, please. The first one is just related to the EBITDA targets for the full year. I mean, if we take the low point of the guidance, which is the €620,000,000 it implies about flattish EBITDA growth in the second half of the year given it was up about 20% plus in the first half on the like for like basis. Just wanted to know if we need to have in mind any investment or any headwinds you need to have in this any investment you need to have in the second half or any headwinds, which could explain this kind of slowdown compared to the first half? Or this is very much driven by the uncertainties regarding the health crisis? The second question is, would you mind to quickly get back to inflation? So you said it's going to be a tailwind. Could you just remind us what's your sensitivity to the fuel price, please? And do you see any opportunities to increase the face value of the tickets if inflation is going up? And thirdly, just follow-up on the backlog. I guess at the end of December last year, you said it's about €300,000,000 to €400,000,000 Is it the kind of numbers we need to have in mind for this year given you said Q1 backlog has been using in Q2? Thank you. Okay. Thank you, Geoffrey, for your question. I'll answer the first one and I will let Julien answering the second and the third one. So your first question as to the EBITDA target, EUR 6.20 million. Any other headwinds than the COVID variance impact? The answer is no. The 620s is the rock bottom, and it's a minimum. And the major driver that lead us to this minimum is a major credit volume crisis. Don't expect anything else to justify that level. Okay. So regarding the two last questions. First, about inflation and starting with the sensitivity to fuel price. Well, first, you know that 9% of our revenue are sensitive to fuel price. We have reduced our exposition to fuel price by 20% between 2019 2020. This is the first thing. Secondly, you know that what is important for us is the retail fuel price, meaning the price that is paid at pump by our users and the variation of the retail fuel price are not the same as the one that we can see on the old market. And yes, fuel price has been a tailwind during the 1st part of the year due to the comparison basis of 2020. Then if we look at the inflation, I think that we have 2 things to keep in mind. The first one is the impact of the inflation on the interest rates because with inflation, we can expect to see the interest rates going up. The inflation will have an impact on our activity and our financial results, but it's not 100% immediate because as you've seen during the last months, the level of long term interest rates went up, then they went down. And we have most of our cash, which is invested in short term interest, meaning that the level of the short term interest rates will change once the long term interest rates will go up. So it will take time to see the impact on our financial revenue. And then you mentioned the face value. Yes, with inflation, we can see 2 things on the face value. The first one is that some of our clients are not at 100% of the face value they can offer to their employees. So with inflation, we can see some increase in face value coming from the employees from the employers to please their employees. And the second thing is that some governments can decide to increase the level of tax break for face value. But one more time, it will take times before we see this kind of decision. But obviously, with inflation, it can happen. And your last question about backlog. So yes, you're right. We had between €300,000,000 €400,000,000 that have been accumulated at the end of last year. As we said, when we published Q1 results, this amount has increased during the Q1 by about €100,000,000 And as I said, around what has been accumulated in Q1 has been spent in Q2. So we still have, let's say, €300,000,000 in our balance sheet that will be spent in the coming months. And as I already said, it is included in our guidance. Thank you very much. Thank you, Jorge. Thank you, sir. Next question is from Mr. Andre Julien from Deutsche Bank. Sir, please go ahead. Yes, good morning. Thank you for taking my questions. 3, if I may. First one is about Latin America, where I think that you're still suffering in this region. I just wanted to ask you what are the kind of leverage you are expecting to have in the next few months to have an improvement in all your different segments and especially employee benefits? 2nd one is, could you remind us the balance you could have between benefits and social programs? Because we see that in H1 complementary solutions have been driving growth, where you are still relatively low in gross and employee benefits. So do you really expect to have a balance between these two segments? And last question was about external growth. Could you remind us what is your firepower for external growth? And do you still focus on corporate payments? Or are you considering any opportunity that could come and especially in America, where probably valuation could be more attractive at the moment? Thanks. Okay. Thank you, Andre. So Latin America, first of all, make no mistake, all over we have been growing at 17% in H1 2020, not bad. What we are saying is versus 2019, we are growing at plus 6%. We are talking of plus 6% versus 2019 on the continent that is still very badly hurt by the COVID. So I just want to make sure that we don't need the meeting with some negativity. Here, we are talking of relative performance. So I should say it differently. It has been a blast in Europe with 13% growth versus 2020 and 11% growth in 2019, which is the proof of our double digit growth potential. It's intact in Europe, and we are able to harness it. And at the same time, in Latin America, that is much more badly hit. In H1 2021, we are able to grow at 6%. But because we believe and we demonstrate that our growth potential is intact, we say that Latin America is a reservoir of growth, especially in benefits. So what can we leverage in the next few months? First of all, we have a very good dynamic in terms of fleet and mobility and on the Beyond Fuel program that is based on service contracts. And so it doesn't stop from day 1. So the accumulation of the commercial success will, in fact, will continue to benefit us the 2nd part of the year and after that, in fact, because we continue to innovate. And that's why we shared with you the dual tag in Mexico or in fact, the GoHub solution in Brazil. So we can count on that. And the second thing is, as I said, in Brazil, in terms of sanitary commission, it seems that things are getting better. The level of vaccination is increasing. So my only comment is there is more positive to come in Latin America. And the last thing is, as I shared with you, is the Itau partnership is improving month after month. So all those engines will continue to deliver a good level of growth, once again, 17% in H1 2020 versus H1 2020. Your second question was the balance between benefits and social programs. Once again, make no mistake, complementary solutions represent 13% of our total revenue, first thing. The second thing is in complementary solution. We have CSI, so Corporate Payment Services. And CSI will drive good growth in H2 because once again, we have a very good solution and we are waiting a little bit for the media and hospitality to go back to the level of 2019. But up to now, we have been able to compensate with new programs. And then we have incentive and rewards that will continue. Why? Because in a more remote working world, more and more employees are using incentive and reward program to increase the loyalties of their employees. So we have a trend based on the remote working that will continue and on which we are well positioned to serve well. And one thing is the public social programs. And what I've been saying is it's cherry on the cake in the sense that we will go after every new opportunity. And when it stops, it stops. So for example, in the UK, you remember that in Q1, we had the Department for Education Program. As you know, the program has started in Q2. And if you look at the performance of Q2 for the group versus, in fact, 2020, but also versus 2019, the performance is at 10% growth. So to make a long story short, yes, the fact that Edenrad is in 46 different countries, the fact that we are managing 250 different programs and the fact that we have technological assets that we can leverage to face any new situation and try to get a benefit from that, yes, I'm absolutely convinced that due to this diversity and agility, we are able to compensate. And we do it on a weekly, monthly, quarterly, semester of the year and year on year basis, thanks to the diversity of our programs. Then your first question was about external growth. Maybe, Julien, as to the dry powder? Yes. So dry powder, as Bertrand mentioned during the presentation, is about €1,500,000,000 and it has improved since the beginning of this year, thanks to our strong cash generation. In terms of M and A, we stay focused on that and we won't miss any opportunity. When we look at our strategy with our different business lines, we are still there to consolidate the market on the employee benefits. We are ready to build up new services on our fleet and mobility platform as we did during the last 2 or 3 years. And then we have the corporate payment in the U. S. Where we know that the market will consolidate. So we have a strong asset with CSI. The level of activity is back to 2019, and we know that we will have some opportunity to consolidate whether client portfolio or some small companies doing this kind of business. So we are still focused on M and A, and we will seize any opportunity keeping our stringent financial discipline. Okay. Thank you. Okay. Thank you, Andre. Thank you, sir. Last question is from Mr. Morangi from Exane. Please go ahead. Yes, good morning and thanks for taking my question. I have 2. The first one is on the fleet and mobility business. So the plus 40% like for like growth in Q2, how much came from the increase in fuel prices? And then the second question is about take up rates, especially in Latin America. How take up rates are trending in the 2 main countries, Brazil and Mexico? Thank you. Okay. I will answer your second question and maybe I'll leave the first one to Julien. Globally, if you look at the take up rates and we are not great fan of communicating on that during the semester because due to the dynamic we have on our installed base, the full situation of the take up rate is much more precise at the end of the year. But having said that, globally, our take up phase are doing well on average around the world. Having said that, if you look at Latin America, the sector price for now has been a little bit under pressure on benefits. That's why we said it's a reservoir. Why? Because the situation the economic situation has been not the best. We have some kind of pressure on the corporate side. But you remember, Mohad, we have been through the cycle many times, I. E. To prove that the Latin American markets are very reactive markets in the sense that the huge pressure on the commercial conditions when times are tough. And on that, our decision has always been the same. We want to keep our clients. They are our assets, and we want to keep them and to please them and to give them reasons to pay more in the future based on additional services and the innovation we bring to the table. So due to the macroeconomic concerns in Brazil, we have some concern on the take up rate. We have been through that in the past, and we are very confident that as soon as the macroeconomic condition will grow better, coupled with the innovation that we bring to the market on employee benefits, we see an improvement in the near future. But globally, which is another beauty of Eden Hann, thanks to the 45 different countries and thanks to the 250 different programs and thanks to our sales dynamism and innovation level, globally for the group, when you look at the take up rates, things are well oriented. For just sensitivity to the fuel price, yes, so we have sensitivity to fuel price. So as I said previously, 9% of Eden revenue is sensitive to fuel price in 2021. And we know that the fuel price has increased in 2021 compared to 2020. So if we look at what it represents at group level, it's around 1% of our growth in H1. So I would say 15% of growth. It's 3% in Q2 to be compared to 31% of growth, and it's about 25% of the growth of the Fit and Mobility, so 25% of 31% of Great. Thank you very much. Thank you. Okay. Thank you. So maybe it's time for me to conclude. So thanks for your attention to Ed and Ed. We have been pleased to deliver close to 10% like for like operating revenue growth versus 2019 in H1 2020. We have been pleased to report double digit growth across all regions and all business lines. We have been pleased to demonstrate that, in fact, the growth potential of Edenrad is intact. And thanks to a relevant offer and a good sales dynamic, we're pleased to demonstrate that we are able to harness that potential. Even if there are some uncertainties on the propagation and severity of the variant, we are pleased to improve by 50% our minimum like for like growth for 2021 from 6% to 9% with full year twenty 21 EBITDA guidance of between €620,000,000 €670,000,000 Thanks a lot for your attention and hope to see you soon and talk to you soon. Bye bye.