Ladies and gentlemen, welcome to the Edenred Q3 2022 Revenue Conference Call. I'm pleased to present our speaker today, Julien Tanguy, CFO. I will now hand over the call to Mr. Julien Tanguy. Sir, please go ahead.
Well, good morning. Welcome to the Q3 2022 revenue presentation of Edenred. I'm very happy to be with you this morning and share this presentation. I propose we move to the executive summary on page two of the presentation. Edenred records a new quarter of strong growth driven by continuously strong commercial momentum in card offers and enhanced success of the Beyond Food, Beyond Fuel, and Beyond Payment strategy. Total revenues stand at EUR 506 million in Q3 2022, up +25.2% as reported and +21.4% like-for-like. For the first time in its history, the group's total revenue exceeded EUR 500 million in a single quarter. Q3 2022 operating revenue standing at EUR 484 million, up 23% as reported, and 19.1% like-for-like.
Double-digit growth across all business lines and all geographies. Other revenue of EUR 23 million in Q3 2022, double the amount recorded in Q3 2021 as a result of the float increase and the positive impact from higher interest rates in all regions. Year to date, Edenred total revenues stands at EUR 1.428 billion, up 22.9% as reported and 19.2% like-for-like versus year to date 2021. In the Q1 , Edenred commitment to sustainable development and its extra-financial performance has been further recognized. Edenred joined the Euronext CAC 40 ESG Index, rewarding its ambitious Ideal CSR policy and its portfolio of digital solutions enabling more responsible behaviors and its purpose revealed last year, enrich connections for good. Moody's ESG Solutions increased the group's score by five points, raising Edenred's status from robust to advanced.
On the next page, we see that Edenred is well-positioned to benefit from the increased scale effect of its platform and generate profitable and sustainable growth in 2022 and beyond. Edenred increasingly invests in technology and product innovation to provide corporates, users, and merchants with best-in-class experiences. Edenred leverages a powerful go-to market to further penetrate its market, in particular, tackle the SME segment. Edenred keeps on enriching its business portfolio by developing Beyond Food, Beyond Fuel, and Beyond Payment solutions, fostering cross-selling and unlocking new growth opportunities. On top of that, Edenred is taking full advantage of macro trends, lasting structural changes arising post-COVID, like remote working, greener mobility, increased digitalization, and virtual continuity. Our solution fits with the needs for additional purchasing power, further strengthening the attractiveness of Edenred solutions.
Edenred is taking full advantage of the economic context, rising interest rates, generating higher other revenue. Thanks to a new quarter of strong growth across the board and a favorable economic environment enhancing the attractiveness of its solutions, Edenred is upgrading its full year 2022 EBITDA outlook to between EUR 810 million and EUR 840 million. On July 26th, we announced an ambition from EUR 770 million to EUR 820 million. Before we move to Q3 highlights, I remind you, as you can see on page four, that Edenred's Capital Market Day will be in London next week under the leadership of Bertrand Dumazy, the management team of Edenred will have the pleasure to present a new plan for the next three years.
Let's move to our Q3 highlights, and let's talk about M&A. I'm on page six. This week, Edenred announced the IPS acquisition. With this acquisition, Edenred CSI expands its value proposition in the U.S. beyond payments. IPS is a global market leader offering a comprehensive invoice submission solution from invoice capture to approval. IPS had been founded in 1991, is based in New Jersey, and proposes a superior technology and strongly focused on innovation and customer services. This acquisition enhances Edenred CSI value proposition by expanding along the value chain and integrating with digital platform a turnkey invoice automation solution. By combining invoice and APS automation, Edenred CSI clients will have access to an end-to-end integrated solution that further simplifies and streamlines the management of the entire account payable process. Edenred CSI expects to strengthen its positioning in key client verticals, thanks to high complementarity between businesses.
IPS features will be easily integrated to Edenred CSI platform, and it will open new growth and cross-selling opportunities. Edenred CSI is happy to welcome the 50 employees of IPS into the Edenred family and to create an end-to-end integrated invoice to pay offering. After the Q3 highlights, we are now moving to our Q3 2022 performance. I move to page eight. As explained in the executive summary, Edenred delivered another outstanding performance in Q3 2022. Operating revenue is at +19.1% like for like versus Q3 2021, bringing the performance of the first nine months of the year to 17.9% like for like versus 2021. This performance is driven by three major trends. First, a sustained commercial momentum, in particular with SME. A continued success of our Beyond Food, Beyond Fuel and Beyond Payment strategies.
The increased attractiveness of our solutions as evidenced by progressive face value increases in Ticket Restaurant offer to protect employee purchasing power, as it is the case of Ticket Restaurant and discount, and enhanced efficiency thanks to Data for fleet and mobility solutions. I propose we move to page nine to focus on the performance per business lines. Regarding the business lines, we carried double-digit growth for all of them in year to date 2022 for both reported and like-for-like figures. Employee Benefits operating revenue is at 17.7% in reported figures. Fleet and Mobility is at 31.7%, and this performance was driven by a robust sales momentum and the success of our Beyond Fuel strategy. Complementary Solutions is at 19.6%.
For the first 9 months of the year, employee benefits accounts for 58% of Edenred's platform operating revenue with an operating revenue above EUR 800 million. Fleet and mobility accounts for 29% and an operating revenue standing at almost EUR 400 million. Complementary solutions accounts for 13% of the total operating revenue of the group. I move to page 11 to contemplate our performance per geography. In Q3, Edenred operating revenue grew at double digits in every geography, +16.5% in Europe, +33.3% in Latin America, and +20.7% in rest of the world. Currencies had a positive impact in Latin America, especially coming from real and reais, while currency impact is negative for the rest of the world.
Let's zoom in on two main geographies, and let's start with Europe on page 11. In Europe, which represents 61% of Edenred's platform operating revenue, we delivered a strong growth of 16.3% in like for like. Everywhere in Europe, we registered a solid momentum in sales for both employee benefits and fleet and mobility business lines. In France, the operating revenue growth for the first nine months of the year stands at 10.4%, and this performance is driven by a good commercial momentum for both employee benefits and fleet and mobility. In employee benefits, this sales performance is supported by Beyond Food solutions. For example, the Ploëc employment engagement platform continued to deliver robust growth.
This sales performance is also supported by continued success of our leading digital Ticket Restaurant offer, despite the effect of the decrease of the daily spending cap implemented as from July, from 38 EUR down to 19 EUR. Despite the high comparison basis, the catch-up in reimbursements in Q3 2021 following the end of COVID restrictions. I remind you, our users had not been able to spend their benefits due to health restrictions during the first half of 2021. Edenred's users spent more benefits during summer 2021. In the rest of Europe, the operating revenue is up 18.6% for the first three quarters of the year. The growth of Edenred operating revenue is supported by a solid performance in employee benefits, with continued and progressive increase in face value for Ticket Restaurant due to inflationary context.
Legal face value have been increased by public authorities in many countries in the beginning of the year. In Poland, +60% in February. In Romania, +50% in June, or in Czech Republic, +20% in September. Once the maximum face value is increased, our sales team are promoting the usage of the new maximum face value to our clients. The revenue performance in the rest of Europe is also supported by sharp growth in fleet and mobility solutions, driven by increased market penetration in the SME segment. This is it for Europe. I propose now we zoom in Latin America on page 12. Latin America accounts for 31% of Edenred's platform operating revenue in Q3. It stands at EUR 432 million, at 33.3% in reported figures and 18% in like-for-like.
This double digit growth is true for both Brazil and Hispanic Latin America. In Brazil, in year to date, the growth stands at 16.8% and is supported by sustained commercial momentum in employee benefit solutions, with increasing contribution from Itaú Unibanco partnership and the success of our virtual canteen offer. It is also driven by the robust performance in fleet and mobility solutions, notably driven by the undisputed success of Beyond Fuel solutions with maintenance and toll. I remind you, we did the acquisition of Greenpass, a toll, digital operator earlier this year. The review for operating revenue is now over. I move to page 13 to comment on our other revenue. At the end of September, the other revenue stands at EUR 53 million to be compared to EUR 32 million at the end of the same period in 2021.
It is a 67% increase versus 2021 in reported figures. Other revenue growth is increasing quarter after quarter, up to doubling in Q3 versus Q3 last year. This strong performance is the consequence of a sustained business momentum positively impacting the float. As our BV is growing, our float is growing too. Continued impact of increasing interest rates outside the Eurozone, as well as first effect of increase of interest rates in the Eurozone are explaining this growth. Decisions taken by ECB in July, September has an impact on interest rate level in Euro countries. To conclude with the Q3 performance, I move to page 15 and to total revenue. I remind you that the total revenue is the sum of operating revenue and other revenue.
At the end of September, our total revenue stands at EUR 1,138 million, at 19.2% compared to 2021. I move now to the last part of the presentation, the 2022 outlook on page 16. Edenred is a platform, and to increase the scale effect and to capture sustainable and profitable growth, we are activating three levers. First, Edenred is deploying a powerful go-to-market strategy to further penetrate its core markets, maintaining a continuously strong commercial momentum in the context of increasing attractivity of its solution. Second, Edenred is unlocking new growth opportunities, thanks to its extended portfolio of Beyond Food, Beyond Fuel, and Beyond Payment solutions to foster cross-selling and broaden its value proposition. Third, Edenred is investing in product and technology innovations to seize opportunities arisen with secular trends in order to fuel future growth.
As a consequence, Edenred is upgrading its full year 2022 EBITDA range to between EUR 810 million and EUR 830 million, due to the strong performance in Q3 and the other revenue evolution. This is the end of the presentation. I'm now ready to answer your questions, and hope you will have the opportunity to attend our Capital Market Day the next two days in London or to follow our events on our website.
Ladies and gentlemen, if you wish to ask a question, please press zero one on your telephone keypad. The first question comes from Julien Richer from Kepler Cheuvreux. Sir, go ahead.
Yes, good morning, everyone. I have three questions, if I may. The first one, have you seen any impact from current strikes in France on your fleet and mobility activity? And if you can remind us the contribution of the SME in France. The second question, any update on the discussion in Brazil regarding the potential change in regulation for the meal voucher activity? And the last one, if you could please give us some details on the maturity of your float investment on average and in Europe more specifically. Thank you.
Okay. Thank you, Julien. Three very interesting questions. The first one about the current strike in France. Well, first, fleet and mobility in France is a business that is not that big compared to what we do in employee benefits. However, it's something that is growing fast. We don't have an indication regarding the impact of strike on our activity today. It's too early indeed to give you a view on that. Strike has started a few weeks ago. No impact of the strike in September, and we see what happened in October in the coming days.
When we look at the strike, we know that 25% of gas stations were facing some issues with at least one of the products they are selling. It's big, but it's not that much. We'll see in the coming weeks how it goes. Regarding Brazil. Yes, there are some news in terms of regulation. Maybe I can come back on the different things that have been decided in Brazil since one year. One year ago, almost, it was in November 2021, a new decree was introduced for PAT, which is the meal voucher for workers in Brazil.
This decree was with two major decisions. One, which has been implemented in December, and another that was under discussion. The first thing is about the rebates and the payment terms. Rebates and payment terms have been banned for the PAT in Brazil, starting December last year. This is the first part of the decision that has been taken. Then three topics have been introduced and were under discussion. These three topics are interoperability, portability, and open loop. It was in November last year. Now, a law has been voted in August, and indeed it's a very good news for us. Why is it a very good news?
It's because PAT has been confirmed as a very important social program in Brazil. What has been decided in August is as follows. We had a decree in November, now we have a law. This law has been voted. Rebates and payment terms have been banned for that. This is the first thing. Regarding the three other topics, they are now in the law, but we are still waiting for the application decree. We are waiting for the application decree for interoperability, portability, and open loop. What has been decided in November was to wait for May 2023 for the implementation of these new three topics, and it is still the case.
Now we have some discussion with the local authorities to see how those decrees will be written, and how those three things will be implemented. What is clear today is that it's still quite blurry when we look especially at interoperability and portability. We have months in front of us to have discussions with local government, and we know that we have also elections in Brazil within 10 days, because the thirteenth of October we'll have the second round of the presidential election in Brazil. This is for the update on Brazil regulation. Now, your first question on the maturity of float. First, regarding the float, I remind you that we have around EUR 4 billion of float.
80% of this float is in Europe, 20% is in America and Latin America. When I say 80% of the float is in Europe, it means that 80% of the float is distributed between Eurozone and non-Eurozone countries. First thing to know. In terms of float, which is the money that is loaded on the card of our users and that has not been spent yet, it is what you can see in our balance sheet in restricted cash and cash. The rules in terms of investment for restricted cash and cash are not the same. The maturity of investment for cash is below one year, while the maturity for restricted cash can go from one month to several years.
It means that when we have an increase of interest rates, you don't have the immediate impact in our other revenue, because we need to wait for some investment to go to their end in order we can reinforce with new conditions. The other revenue impact we have today in our P&L is the beginning of the impact of interest rates in our other revenue. It means that it will grow depending on the level of interest rates in the coming quarters.
Okay. Sorry, for restricted cash, I'm correct by saying that France is restricted, so it means that the cash in France is with potentially several years of maturity?
It depends on the product. You are right when you say that Ticket Restaurant is a regulated product, so the flow of Ticket Restaurant is restricted cash. Now, when we look at the gift card, Kadeos, it is a non-regulated product, so the float of Kadeos is cash.
Okay. Perfect. Thank you.
The next question comes from Simon Lechip from Stifel. Sir, please go ahead.
Yes, good morning. Three questions from me, please. First of all, the usual one on the oil price contribution in Q3, please. Secondly, if you could share your expectation for the rest of the year, and basically do you expect a similar pace of growth for Q4? Lastly, on the APD guidance, I mean, I know it's a revenue call, but if you could give us some color on your expectations in terms of operating leverage for the second half. It seems that the new midpoint of your guidance implies some margin improvement, but mainly driven by your other revenues. If you could share your thoughts on your operating margin evolution, that would be very helpful. Thank you.
Okay. Simon, could you please repeat your second question because it was not that clear.
If you could just share your expectation for Q4, and basically do you expect a similar pace of growth in Q4?
Okay. First question regarding the fuel price impact on our revenue, you know that, for H1, the impact of fuel price was between 2.5% and 3% on our performance. In Q3 it's lower. You know the fuel price is lower compared to where it was in Q2. Impact of fuel price in Q3 is around 2%. If you look at our performance, +21%, you can consider that 2% of those 21% are coming from fuel price. Regarding Q4, a few comments on that. You know Q4 is a big quarter for Edenred because it's a quarter of Christmas period with big business in terms of gift card.
Last year we did a very good performance in Q4. We had very big tailwinds. Many decisions have been taken in some countries to increase the tax break of gift card. It was the case in Italy, it was the case in France, it was the case in Belgium, where our dedicated product had been created at the end of COVID period. The comparison basis for Q4 is higher. However, we see the trend of our business in Q3, which is quite strong. It's not possible for me to give you some color on the performance of gift card because it's too early. We are only mid-October, so we don't have visibility on what gift card period will be.
We see the trend of Q3 with a good sales momentum. Our performance in Q4 should be in line with what we've done in Q3, knowing that we know that companies will try to protect the purchasing power of their employees. The third question and the operating leverage, as you know, so we are a platform. We want to be able to add the new services to the platform and to be able to grow our top line.
Because we are a platform, we are able to deliver performance in terms of EBITDA margin. However, we also know we need to invest and to prepare the future growth of the company. This is the reason we want to have new features to our platform. We want to innovate. We want to be able to bring new solutions to our users and to our clients. Yes, the top line is going to grow fastly. We can also decide to invest. We know that 2022 has been a year of investment.
When I say investment, it's not only CapEx, it's also OpEx, because we invest in some technology that we need to consider as OpEx. We will give you more color on that at the end of the year, obviously. We are talking of revenue in Q3. Keep in mind that we are going to keep on growing our top line. We are also in a year of investment at Edenred.
Okay. Thank you.
Thank you.
The next question comes from Ed Young from MS. Sir, please go ahead. Ed Young, you could ask your question.
Hello, can you hear me?
Yes.
Yes.
Great. Perfect. Thank you for taking my questions. I've got two, if that's okay. The first one was on growth in Hispanic Latin America. There was quite a strong acceleration there. I appreciate the presentation says, you know, good performance in employee benefits, but I wonder if you could give a little bit more color on what's driven that sort of standout result there. Then the second one, you've previously indicated at the half-year results that the free cash flow conversion to EBITDA could be, you know, decently ahead of the guidance. I just wondered if you could give an update on where you expect cash conversion to be this year given the upgraded guidance. Thanks.
Well, regarding Hispanic Latin America, we have good performance because we have a really good sales momentum with our new platform in fleet and mobility. You know that we have created a platform in Brazil for fleet and mobility. On this platform, you have an energy card plus maintenance and toll, and we have decided to deploy this platform in other countries. We are deploying this platform in Argentina. We are deploying this platform in Mexico. We are happy to have the same success in those countries that the success we have in Brazil with this kind of solution. This is the reason why we are growing in Hispanic Latin America.
We are also growing in employee benefit, especially in Mexico, which is also a big country. These are the reason why we are performing so well in Latin America in Q3 this year. Regarding the free cash flow conversion, you know that in our guidance we gave three years ago during our CMD, we are committed to a conversion ratio from EBITDA to free cash flow of at least 65%. I confirm that we will be above the 65%. Our ambition is to be at least at 70-75% in terms of conversion ratio from EBITDA to free cash flow.
Okay. Thank you.
The next question comes from Justin Forsythe, from Credit Suisse. Sir, please go ahead.
Hello. Thank you so much for taking my questions. Have a couple here. Just wanted to review first the mechanics of the decrease in Ticket Restaurant face values. Totally understand the concept there and percent of revenues kind of derived from the face value, of course, but maybe you could just kinda parse out what the actual impact was on revenues, kind of implies that benefits growth would have been even higher had this impact not happened. It'd be good to know what the impact was there. Also wanted to touch a little bit on the corporate payment side of the business. You mentioned a Beyond Payment strategy, not something I believe I recall hearing before, so maybe you could outline what you mean by that.
Additionally, wanted to hear a little bit more about the IPS acquisition. You know, how much did you pay? What do you expect the contribution be to revenue? And also about the solution itself. It sounds like you know, maybe you were dealing with the payment side of things, but not necessarily the receipt of the invoice and the processing of the invoice. But maybe you could talk about what that adds and what that means, as far as cross-selling and synergy as well when you start bringing that into clients that they have and vice versa. Thank you.
Okay. Well, two big questions I would say. Let's start with the first one about face value and how we manage the face value decrease and the impact on our P&L. First thing.
Increase.
Increase. First thing regarding the face value, on average, our clients are using 85% of the maximum face value available in the countries. When we see some public authorities increasing the maximum face value, like, I took the example during the presentation of Romania, so Romania has increased by 50% the maximum face value available in June. It takes us from one-two years to use the new maximum face value and to get 85% from this new maximum face value. It means that we need to visit our clients one by one to discuss with them of the opportunity they have with this new maximum face value.
Obviously, we take advantage of salary negotiation to push this increase knowing that when you are an employee, you are always, you have a better perception when you receive both salary increase and benefit increase. As I said, we have some face value increase, some maximum face value increase in many countries, and we are pushing that to our clients with large accounts, with middle market accounts, and with SME, and we do that through our websites. The impact on our revenue. It will take one-two years before we have the full impact of this new face value in our revenue.
85% of our revenue coming from business volume is a percentage of the transaction. It means that when we have an increase in face value, we have an increase in our operating revenue. This is for the face value increase. I guess one comment because something happened yesterday in France. We have a new decree that has been voted. The maximum face value in France was 11 EUR or a little bit more than 11 EUR. Due to a new law, this maximum face value will go to 13 EUR.
It means that the face value in France will have been increased by more than 15% since the first of January this year, because it is the third face value increase this year after something like 2.6% in January, 4% in September, and another 8%-9% before the end of this year. This is it for the face value. Now, I move to your question on corporate payments. Yes, we are talking of a Beyond Payment strategy, like we have a Beyond Food and Beyond Fuel strategy. What does it mean? I think the link with the IPS acquisition will be easy to do. CSI is coming from the payment automation business, so the capacity to automate the payment of your suppliers.
IPS is doing an invoice automation business. It means the way to automate the invoice workflow in a company. You receive an invoice, you are able to read the invoice to manage the accounting of the invoice, then it's payment. With IPS, we go beyond payments as we are able to propose to our clients more services, including the invoice management. Now in terms of acquisition, IPS, as I said, has 50 employees, and I can tell you that the revenue of IPS is below $10 million. It's an acquisition which is important because it brings new feature to Edenred CSI platform.
In terms of revenue, it's something that is not material at group level, but we believe that we'll be able to do cross-selling and to improve the stickiness of the clients that are all today in the portfolio of CSI. That's what I can tell you about IPS acquisition. Last word about this, as I said, it's less than $10 million revenue, and it is a profitable company with a positive EBITDA.
Okay. Got it. Thank you very much. I just have one follow-up on the face value. That's super helpful. Just one thing in addition on the daily spending limit decrease. Do you have any comments on what impact that would have been to that would be or has been to growth in employee benefits?
Well, indeed, when we are talking of the face value increase, it has a positive impact on our business volume and a positive impact in our operating revenue. When we look at the way this money is spent, it is the daily cap, the amount you can spend every day. It moved a lot in France over the last two years. After the COVID, the government has decided to move this cap from EUR 19 to EUR 38. This cap has been in place from mid-2020 till June 2022.
In June, the cap went back to 19 EUR, where it was before, and now it is going up from 19 EUR to 25 EUR since the first of October this year. This cap has an impact on our revenue, but indeed it has an impact on the time when we can book our revenue, because we book our revenue when the money is spent in our network of merchants. When you can spend more on a daily basis, it means that our revenue are recognized more quickly, which is not the case when you are back to 19 EUR. The business volume that is loaded on our card does not change. It means that the revenue that has not been recognized during Q3 will be recognized in the coming quarters.
Got it. I guess. Sorry, one other follow up just on that, what you just said. I mean, does that mean you can potentially get more float income, meaning that you have to settle with merchants later and the usage is extended more over time?
Yes. As I said, when we have face value increase, it has an impact on our revenue. What I can tell you is that the face value increase we see today will have an impact on our P&L on the coming quarters and on the coming years. It means that what we see today will have an impact for the years to come for Edenred. Keep in mind that once the face value, maximum face value has been increased, it never goes down. It means that when we have an increase like we have in France from 11 EUR - 13 EUR, it means that it will stay at 13 EUR for forever, I would say.
Yep. All righty. Thank you very much. Really appreciate it.
Thank you.
Ladies and gentlemen, I would like to remind you that if you wish to ask a question, please press zero one on your telephone keypad. The next question comes from Paul Sullivan from Barclays. Sir, please go ahead.
Yeah. Sorry, good morning, everyone. Three from me. Firstly, can I just clarify on something you said about Q4. Am I right in hearing despite tough comps in Q4, you still expect growth in Q4 to be similar to the sort of high teens or even low twenties that you've delivered in Q3? That's the first question. Secondly, can you quantify the contribution from inflation within the employee benefits portfolio in the third quarter? Finally, how should we think about cyclicality as we go into next year, particularly given the expansion you've seen in your SME customer base, which could be a little bit more volatile and risk to employment generally if Europe tips into recession? Thank you.
Regarding Q4, as I said, we see a strong sales momentum since the beginning of this year. We did a great performance in Q1 and Q2. In Q3, we confirmed the level of performance. You've seen that the level of fuel price and the fuel price impact on our revenue is lower in Q3. It means that our growth excluding fuel price is at a very good level. We see that purchasing power is at the heart of many discussions in many countries today. Even if we have a comparison basis, which is high due to the performance we did in Q4 last year, we believe that we will be able to maintain the level of growth we had since the beginning of this year.
I can't tell you exactly what will be the result of the discount. Peak season is not easy, but definitely we are on a good track and we believe we will be able to deliver the same level of growth as we did over the last three quarters. Regarding inflation on employee benefits, you know, as I explained with the increase of maximum face value, the impact of inflation in employee benefits takes time. It takes more time than what we see in Fleet and Mobility business.
Because in fleet and mobility business, we see the fuel price at pump increasing very quickly, and the impact on our revenue is immediate, which is not the case with employee benefits. We have many face value increase in many countries. I took few examples today. The impact of the inflation on employee benefits will start obviously this year, but it will be there for the next quarter and at least for next year. We need 1-2 years to deploy new maximum face value. The impact of inflation for Edenred is starting in 2022 and will be there for the next 2-3 years.
Regarding next year, the impact of a possible recession, the first thing is that we don't see a recession yet. You see that we have a very strong sales momentum. We are able to get new clients. We have new clients in large accounts. We have new clients in SMEs for both employee benefits and fleet and mobility. We really believe that the attractiveness of our solution is a very high level today due to inflation. For employee benefits, we come with purchasing power. For fleet and mobility, we come with cost control. Our markets are still under-penetrated.
One more time, it's true for all our markets, it's true for fleet and mobility, it's true for employee benefits, and it's also true for corporate payments. With recession, yes, unemployment could go up. It means that the portfolio of our users could be impacted. But now when we look at the market we are in, when we look at the number of SME we can go after, we believe that we will be able to compensate the impact of unemployment on our BV by new sales, and we will still be able to grow even if we are in a less favorable macroeconomic environment.
That's great. Thank you very much.
Thank you, Paul.
We have no more questions. Julien Tanguy, back to you for the conclusion.
Well, thank you very much. Thank you for attending this conference this morning, and thank you for your questions. As I said, this Q3 has been an historical quarter for Edenred. I would be happy to meet you next Tuesday in London with Bertrand and with all Edenred management team to share with you our new three-year plan. We have many things to discuss to you, and we will be very happy to be on stage and to give you more color on the strategy of Edenred for the next three years. Thank you very much. Goodbye.
Ladies and gentlemen, the conference is over. Thank you all for your participation. You may now disconnect.