EDENRED (EPA:EDEN) - Edenred: Edenred, a responsible group taking action alongside people at work amid the Covid-19 epidemic

Transparency directive : regulatory news

07/04/2020 07:15

Press release
April 7, 2020

Edenred, a responsible group taking action alongside people at work amid the
Covid-19 epidemic

Edenred is taking action to support its teams, its partner merchants, its
clients and their employee users through the unprecedented health and economic
crisis arising from the Covid-19 epidemic.

* Teams working hard to ensure seamless business continuity for clients, their
  employees and partner merchants.
  - Innovative, adapted programs designed in record time.
  - A number of community relief initiatives launched.

* "More than Ever" fund established to support the most vulnerable Group
   employees as well as restaurant owners, who have been significantly
   impacted by stay-at-home orders. The fund will notably be financed through:
  - The 20% decrease in the proposed dividend for 2019.
  - The reduction in the compensation of the Chairman and Chief Executive
    Officer, in line with AFEP recommendations.
  - The reduction in the compensation of the members of the Group's Executive
    Committee and Board of Directors.

* Combined General Meeting to be held behind closed doors on May 7, 2020.

Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: "I'd
first like to express my deepest gratitude to Edenred's teams, who have shown
extraordinary commitment since the start of the crisis. Every day, around the
world, they are putting all of their energy and agility into ensuring business
continuity for their clients. Innovative solutions adapted to new needs
emerging from the crisis have also been developed in record time thanks to our
digital expertise. In addition to the many relief initiatives implemented by
the Edenred community, we are today announcing the establishment of a special
fund, "More than Ever", intended primarily to assist our most vulnerable
employees and to support our partner restaurant owners, who have been hard hit
by stay-at-home orders. Now, more than ever, Edenred is committed to being the
companion for people at work and supporting them through these tough times."

Agile, community-minded teams working hard

As its teams work hard to ensure seamless business continuity, Edenred, in
collaboration with the public authorities and NGOs, is leveraging its agility
and innovation capabilities to swiftly design specific digital solutions to
help communities feeling the strain of the crisis. For example:

* In the United Kingdom, 1.3 million children from disadvantaged backgrounds
  usually received a free school meal. The Department for Education has called
  on Edenred to ensure that they continue to benefit from a balanced lunch at
  home, by administering dedicated funds for use in a network of partner food
  outlets via QR codes.

* In Brazil, in partnership with the Gerando Falçaoes NGO, Edenred has issued
  27,000 Ticket Alimentaçao cards to enable particularly vulnerable families to
  purchase groceries.

* In France, Edenred has joined forces with BNP Paribas to produce 20,000
  Ticket Restaurant vouchers for the Samu Social humanitarian emergency service
  in Paris, thereby providing assistance to the homeless and other vulnerable
  people.

At the same time, employees from various Edenred subsidiaries have
spontaneously come forward to support local communities through a number of
relief initiatives, including the following:

* In Brazil, Edenred has organized 3,000 free telemedicine consultations for
truck drivers without health insurance, who are particularly exposed to the
  epidemic.

* In China, France and many other countries, Edenred teams are donating face
  masks to hospitals and restaurants.

* In France, Edenred is encouraging Ticket Restaurant cardholders to make
  donations to the French Red Cross and non-profit organization Réseau de
  Cocagne via the MyEdenred mobile app.

"More than Ever" fund established to support Edenred's ecosystem through the
consequences of the Covid-19 epidemic

Edenred has pledged to commit up to EUR15 million to establish the "More than
Ever" fund, whose purpose is to mitigate the consequences of the Covid-19
epidemic on its ecosystem. In particular, the fund will:

- protect Edenred employees, notably the most vulnerable, in countries with
  little or no healthcare coverage or social safety net;

- support partner restaurant owners, who have been severely impacted by strict
  stay-at-home orders in the various countries where the Group operates.

20% decrease in the dividend for 2019

Edenred enjoys a balanced debt profile, with a net-debt-to-EBITDA ratio of 1.9
at end-2019 and no major repayment obligations until 2024. The Group also has a
EUR750 million undrawn syndicated credit facility maturing in 2025.

The Group could therefore honor the dividend announced on February 26, 2020 in
full, while maintaining enough cash to navigate through the current situation
and continue to implement the Next Frontier strategic plan for 2019 to 2022.

At a special meeting on April 6, 2020, Edenred's Board of Directors decided,
however, to decrease the proposed dividend for 2019 to EUR0.70 per share,
representing a 20% reduction compared with the amount initially announced. This
decision will be submitted to shareholders for approval at the Combined General
Meeting on May 7, 2020, which will be held behind closed doors. The dividend
payment options remain unchanged(1).

Reduction in management's and directors' compensation to be paid in 2020

Bertrand Dumazy, Chairman and Chief Executive Officer of the Group, will forgo
25% of his compensation to be paid in 2020, as per the conditions laid out by
French business association AFEP in its recommendations of March 29, 2020. A
corresponding amount will be donated to the "More than Ever" fund. Similarly,
the members of the Group's Executive Committee and Board of Directors have
voluntarily decided to donate part of their compensation to the fund.

Combined General Meeting to be held behind closed doors on May 7, 2020

In accordance with the emergency legal and regulatory measures adopted to slow
the spread of the virus, Edenred's Combined General Meeting, taking place at
10:00 am on May 7, 2020 at Edenred's headquarters, will exceptionally be held
behind closed doors, with no shareholders physically in attendance.

The Meeting will be broadcast with a delay on Edenred's website
(www.edenred.com, Investors/Shareholders section, then Annual General Meeting).

In light of this situation, the following shall apply:

* shareholders are required to take part in advance, either by voting remotely
(online or by post) or by giving proxy to the Chairman of the Meeting;

* shareholders are invited to vote or give proxy to the Chairman of the Meeting
  online (given how uncertain postal delivery times are in the current
  circumstances). As in prior years, Edenred will offer the option of voting or
  giving proxy to the Chairman via the Votaccess secure platform, which will be
  live from 9:00 am (Paris time) on April 20, 2020 until 3:00 pm (Paris time)
  on May 6, 2020;

* as it will not be possible to ask questions during the Meeting, shareholders
  can send their questions by post (registered mail, return receipt requested)
  or by email (AGM.2020@edenred.com), provided they are received no later than
  April 30, 2020.

Detailed information on how to take part remotely prior to the Meeting can
notably be found in the notice of meeting published in the French legal gazette
(BALO) on April 1, 2020. Given that circumstances may change in line with
public health, legal and regulatory requirements, shareholders are encouraged
to regularly check the section dedicated to the General Meeting on Edenred's
website
(https://www.edenred.com/en/investors-shareholders/about-agm).

(1) Shareholders will have the option to receive the dividend 100% in cash or
100% in shares, with a 10% discount.

Edenred is a leading services and payments platform and the everyday companion
for people at work, connecting 50 million employees and 2 million partner
merchants in 46 countries via more than 850,000 corporate clients.

Edenred offers specific-purpose payment solutions for food (meal vouchers),
fleet and mobility (fuel cards, commuter vouchers), incentives (gift vouchers,
employee engagement platforms) and corporate payments (virtual cards). These
solutions enhance employee well-being and purchasing power, improve companies'
attractiveness and efficiency, and vitalize the employment market and the local
economy.

Edenred's 10,000 employees are committed to making the world of work a
connected ecosystem that is safer, more efficient and more user-friendly every
day.

In 2019, thanks to its global technology assets, the Group managed EUR31
billion in business volume, primarily carried out via mobile applications,
online platforms and cards.

Edenred is listed on the Euronext Paris stock exchange and included in the
following indices: CAC Next 20, FTSE4Good, DJSI Europe and MSCI Europe.

For more information: www.edenred.com

The logos and other trademarks mentioned and featured in this press release are
registered trademarks of Edenred S.A., its subsidiaries or third parties. They
may not be used for commercial purposes without prior written consent from
their owners.

Edenred is celebrating its tenth anniversary in 2020.

CONTACTS

Communications Department

Marie-Laurence Bouchon
+33 (0)1 86 67 20 08
marie-laurence.bouchon@edenred.com

Media Relations

Matthieu Santalucia
+33 (0)1 86 67 22 63
matthieu.santalucia@edenred.com

Investor Relations

Solène Zammito
+33 (0)1 86 67 23 13
solene.zammito@edenred.com

Loïc Da Silva
+33 (0)1 86 67 20 67
loic.dasilva@edenred.com

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EDENRED (EPA:EDEN) - Edenred: Edenred, a responsible group taking action alongside people at work amid the Covid-19 epidemic

Transparency directive : regulatory news

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