Edenred SE (EDEN) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the Edenred H1 2022 Revenue Conference Call. I am pleased to present our today's speakers: Mr. Bertrand Dumazy, CEO; and Julien Tanguy, CFO. I will now hand over the call to Mr. Bertrand Dumazy. Sir, please go ahead.

Good morning, ladies and gentlemen. Thank you for being with us for our H1 2022 results. I propose that we move to Page 2 of the presentation. And yes, 2022 H1 marks record results that demonstrates Edenred's capacity to further leverage the scale effect of its unique global platform in a new macroeconomic context. There are 5 things I want you to have in mind. First of all, the total revenue of EUR 920 million is up almost 22% in reported and 18% in like-for-like growth. If we go in fact in the detail of that, our H1 operating revenue is up by almost 21% in reported. It's an acceleration of our growth in Q2 2022 with some operating revenue up 19% like-for-like versus Q2 2021 and our other revenue -- and as you know, the total revenue is the combination of operating revenue and other revenue. Our other revenue are up almost 50% by reaching EUR 31 million. The second thing is that, yes, we had a record high EBITDA in H1 2022 at EUR 365 million, which is up 24% as reported and 22% like-for-like. Our EBITDA margin is up to 39.6 points, which is 1.3 points like-for-like better than what we had in H1 2021. Then because, as you know, at Edenred we are all in for sustainable and profitable growth; this record result in revenue and EBITDA leads to a record high net profit group share up 28% at EUR 170 million. Then yes, revenue growth is important, profit is very important. But cash generation is also what we are looking after and we generated a strong cash level with double-digit like-for-like FFO growth to EUR 299 million. And finally, our S&P Global Ratings has been reaffirmed as strong investment grade in April 2022, but the outlook has been upgraded from stable to positive. If we move to Page 3. As we said, Edenred is better poised than ever to deliver sustainable and profitable growth in 2022, but beyond. How are we going to do that? There are 5 things that we want you to remember. The first thing is yes, we penetrate and we will penetrate further our markets thanks to strong go-to-market and relevant portfolio of solution. Then we have the capacity to offer unparalleled omnichannel user experience thanks to major investments in innovation. Then we will continue to benefit from strong positive structural trends such as the stakeholders' digitalization, the working world transformation, a new area of mobility and quest for more responsible behaviors. The fourth element on which we will continue to work on is to take full advantage of the current favorable macroeconomic context. Inflation increasing the attractiveness of Edenred solution because every employer around the world want to give purchasing power to their employees, but we also have rising interest rates that positively impact the other revenue that used to be called the financial revenue. And finally, we will continue to increase our operating leverage and stronger than ever balance sheet to potentially seize M&A opportunities. Then the last element of my executive summary is the outlook. Our full year 2022 EBITDA estimate is between EUR 770 million and EUR 820 million, which represents for the year 2022 an EBITDA like-for-like growth between 14% and 21%. Now if we go into the details of our performance in H1 2022 and I propose that we move directly to Page 6. As you know, we are a unique B2B2C platform, i.e., we are a platform intermediating more than 50 million users around the world, 2 million merchants in 4 universes through almost 1 million companies that are clients of Edenred. And we are operating in 4 different universes; the eat universe, the care universe, the move universe and the pay universe. If we move to Page 7, we are a platform and a platform has many advantages. As a platform, we are able to generate the virtual circle of growth. What does it mean? First of all, the growth is faster and faster as demonstrated by our record high total revenue growth in H1 2022 by 18% like-for-like. The second platform advantage is it's a scale business and so we are able to generate higher margin. That's why our EBITDA margin has reached 39.6% in H1 2022, which is 131 basis points like-for-like improvement versus H1 2021. The third platform advantage is our growing investment capabilities. If we want to grow faster and faster and more profitably, we need to continue to invest into this platform and in H1 2022, our level of CapEx represent 7.2% of our total revenue and it means that since 2016, we invested more than EUR 1.4 billion in our technology and we intend to continue to do that because we want a stronger platform tomorrow. And finally, as a platform, we create new high barriers to entry. When you are in the economy of platform; the scale, the compliance and the trust are very powerful barriers to entry and are key also to manage 250 programs in 45 countries across 4 universes on global technology stacks. If we move to Page 8. We said that the platform is able to generate more and more growth quarter after quarter. What does it mean? It means that in Q2 2022 versus Q2 2021, the growth has been 19.2% in operating revenue as compared to Q1 where the growth was 15.3% leading to an H1 2022 growing at 17.3% versus H1 2021. Why? Because we have a strong business momentum and it's fueled by our product innovation, the ability to propose on our platform more and more product and services to be more and more attractive to our ecosystem of clients and users. This attractiveness is increased by the inflationary context. In fact you have more and more employers who want to give back purchasing power to their employees and we have the portfolio of digital solution to do so. But the other thing in a context like the one we are, what is needed is enhanced efficiency and more control and we are able to provide that with our fleet and mobility and B2B corporate payment solutions. So looking at the growth of the operating revenue, what does it mean for the EBITDA? Page 9, you see that the EBITDA between H1 2021 and H1 2022 has increased by 22% like-for-like leading to a record high EUR 365 million. As a reminder, in H1 2020 we were at EUR 255 million. And so you see the platform effect on the increase of our EBITDA margin that has moved from 2020 up to 2022 from 36.7% to 39.6%. If we move now to Page 10 and 11. As you understood, our willingness is to further leverage the scale effect of the Edenred platform. Page 11, you see in fact the 4 levers we're going to put in place to increase the scale effect platform. It's going to be our program that are called Beyond Food, Beyond Fuel and Beyond Payment. But also via our technology and products, but also the sales machine that we put in place to increase our go-to-market efficiency. And finally, we are a platform for good contributing to a better world and we will continue to invest and attract more users thanks to this ability to be a platform for good. If we move to Page 12, what does it mean Beyond Food or Beyond Fuel for example? Beyond Food, what you need to know is in fact more than 25% of our Employee Benefits operating revenue is now generated by solution other than meal and food. So in fact meal and food represent 45% and we think this 45%, a proportion of more than 25% is beyond food. What we are doing in food, we are doing it as well in the mobility. So we have more than 30% that is now beyond fuel with solution like the toll, the maintenance or the VAT refund. I propose you now to go into the details of what it means Beyond Food and Beyond Fuel on a platform like the Edenred platform. So if we move to Page 13 and we take first the example of France. You might remember that in France we are the leader with more than 40% market share on the meal benefits market thanks to leading Ticket Restaurant digital offer. But what you might also remember is now under the super-app MyEdenred, we are able to propose 9 solutions so such as Ticket Restaurant, Ticket Mobilite, Ticket Teletravail, Kadeos, ProwebCE in the working currency offer. And this comprehensive offer is able to attract more than 7 million of French employees who can enjoy Edenred benefits. Another way to look at it is today under a single app with a total digital solution, we are able to propose to every employee up to EUR 5,000 of additional purchasing power thanks to this super-app. Another way to say it. When you are an employer and you need to increase the salaries following the inflation, you want to use different solutions to make it happen. Yes, you have to increase the base salary, but you could also think about better using the solution of Edenred because it's a way to complement what you are able to give on salary increase to make sure that you attract and retain your employee, which is absolutely cheap in the context of inflation and in a context of great resignation. And when we look at this portfolio of 9 solutions providing EUR 5,000 of additional purchasing power, very efficient from a fiscal point of view. We know that in fact the vast majority of the companies are not using the total potential of the solution. So the idea for us is to continue to explain and to propose to fuel the growth. Another thing that we are doing in France is to extend our network. And so for example if you look at the gift part of the portfolio of benefits, we have been able to extend the Kadeos network into the world of NFT cards with the inclusion of blockchain-based Sorare solution that we are now proposing to the users of the MyEdenred solution. So it's a good example of a super-app. Many different portfolios of benefits representing EUR 5,000, full digital, being able to be implemented quickly and to be adapted to the solution or to the needs of every company and giving access to a large network of merchants knowing that the digital merchants are more and more present and important into the portfolio of offer of Edenred. If I go deeper into details Page 14 with the example of Beyond Food benefits. In France we have MeyClub, which is the Edenred unique proprietary e-commerce platform. On this e-commerce platform, you have enhanced purchasing power with negotiated discounts and deals in culture, sports, well-being. Why? Because our job is to drive traffic to the merchants and so we are able to negotiate discounts and deals. Everything is integrated into MyEdenred super-app with a best-in-class UX and the success is there. We have today 6.5 million active users. The number of orders on this platform has been multiplied by 2 between H1 2022 and H1 2021 and we have an increase of 65% of unique shoppers. So it's a good example in a country like France that demonstrates the power of the platform and the power of the platform means being able to propose more and more digital solutions to attract more and more users and companies who want to give and receive more purchasing power. What we are doing in the Beyond Food is also true in the Beyond Fuel. So Page 15, you see that our Beyond Fuel offer is booming and I propose a focus on maintenance, which is one of the numerous examples of the Beyond Fuel because we also have the toll for example or the telematics. Maintenance, what does it mean? For example in Brazil, it's a 100% digital solution to optimize the maintenance management. It means that we are able to propose a comprehensive portfolio of services dedicated to fleet managers so for example customizable preventive maintenance, service order, negotiated prices and a decrease of the MTBF, the meantime between failure. We propose a top-notch user experience with a dashboard with more than 140 indicators. We have some dedicated mobile apps and geolocalization. What does it mean in terms of volume? We are now managing more than 400,000 active vehicles. We are connected to 15,000 repair shops and the number of service orders has increased by 20% between H1 2022 versus H1 2021. And obviously the fact that we are in 45 different countries, the fact that we have global technological stacks, we are able to take this technology and roll out in Mexico and Argentina. So more to come in terms of penetration in Brazil, but more to come in terms of geographical reach as well. If we move to the second lever that we will continue to work on and that explain the sustainable and profitable growth of Edenred and I propose that you move to Page 16. The second lever is technology and product. We believe in the power of innovation. We believe in the fact that we need to propose more and more seamless solution totally integrated on the platform. An example here is for example what we call UTA EasyFuel that we launched a few weeks ago. It's a fast, safe and contactless payment solution. You save time to refuel. You don't need to go to the cashier desk to process your transaction. You can do it directly on your smartphone and it's now available in 1,000 stations. This solution allows you not only to save time, but also to prevent fraud and to provide a tighter control to fleet managers. In an economic context of inflation, the ability to control your cost and the cost of energy is more and more important to fleet managers. That's why we have such success on this business line and on the Beyond Fuel program. In terms of numbers, what does it mean? It means that today in the network of Edenred, we have 1.1 million refueling -- energy refueling sources. It means 70,000 ethanol pumps, it means 300,000 EV charging points and it means 700,000 fuel pumps around the world where you will be able in fact with fast, safe and contactless payments to do what you have to do to allow also your fleet managers to prevent more fraud and give more tight control. The further element for us that explain the present success of Edenred, but also the accelerated growth is the go to market. Our ambition at Edenred is to build and improve day after day the sales machine. And what does it mean a sales machine? We take the example of one aspect of it, which is the inbound websales. And what does it mean? It means that in 14 countries as of today representing 90% of the group operating revenue, we have been able to develop and deploy our websales platform. This websales platform allows the SME to onboard easily and to start the program quickly. So it's a fast-growing sales channel to target the SMEs. And in fact when we look at the results through that channel, which is totally digital, totally web-based, we have an increase of 50% in the number of new clients through this websales platform in H1 2022 versus H1 2021. If we make a zoom on one of the country, which is Germany. The name of the platform is Edenred One and in fact we have been able to attract 14,000 SME clients in the large economy of Germans and not only it's efficient, but also it's a recognized seamless experience throughout the onboarding process. So we are glad to share with you in fact the quality of the service, which has been rated at 4.7 out of 5. And you remember, Page 18, that the SME market is a key market for Edenred and the level of penetration on those markets is still low. So for example in France, you have 1.1 million SMEs and in this SME market, in fact less than 10% are penetrated by solutions proposed like the Edenred solution. If you look at the situation in Italy for example, you have 2 million SMEs and you have less than 5% of the SME market that is penetrated by meal voucher solution like the ones proposed by Edenred. So it's a fast-growing segment and it's a segment on which we have a high pricing power. So the deployment of our digital platform and digital inbound sales has in front of us a lot of potential for sustainable and profitable growth. What we are doing in fact in terms of sales machine for the benefits. It's also true for example for our Corporate Payment business line. Page 19, you have a breakdown on the way we are organized in terms of distributing and we distribute our product directly so we have direct sales for the midsized market. But we are using new distribution partners so for example banks for the large and strategic accounts, but we are also using some software partners for the SMEs. So one of the partner being Sage for example knowing that with a bank, it could be a Citibank and direct sales. We go after many midsized markets everywhere in the U.S. along our core verticals, but also looking at some new verticals. So the sales machine is fueling the operating revenue that has been growing by more than 20% in H1 2022 versus 2021. The fourth lever that we are using and we will continue to increase is the fact that yes, Edenred is a platform for good that is contributing to a better world. The platform for good first of all, it means that us the 10,000 employees of Edenred will need to do better. And the good news is on our CSR program around the 3 pillars: people, planet, progress; we are well on track to achieve the 2030 targets. When you look at the progress we did in 2021 versus 2020 and the targets we have by 2030, we are well on track. But what I'm very happy to share with you is, as you know, we have a Capital Market Day in October 2022 and based on the success of this first phase of our plan in CSR, we will announce at the Capital Market Day commitments that will be strengthened versus the current commitments, especially on climate. Then a platform for good for the Edenred employees, but also in fact a platform for good as an enabler for all our users and our clients. Our ambition is to contribute to a better world. And at Edenred, they are words but more importantly they are what we are doing. We just launched a worldwide program that is called Move for Good so you see Page 21. It's a 4 pillar program; we want to raise awareness, we want to reduce and avoid, we want to offset and we want to preserve. What does it mean? It means that around the world, we have a global reach of 3 million vehicles and we have a unique green network with 300 (sic) [ 300,000 ] EV charging points, but also 70,000 ethanol points of energy. The idea is when you are a client of Edenred thanks to our data-powered solution and embedded artificial intelligence, you have access on your cell phone and on your screen to all the information needed to raise your awareness. So we are able to provide real-time data reporting and customizable dashboard to optimize in fact your route and to be aware of your carbon footprint. Then we are able to propose you some alternative solution. So for example if you are in Brazil, we are able to tell you in real time you have an autonomy in your vehicle of 80 kilometers. Today is the day where it's much better for you in terms of carbon footprint, but also from an economic point of view to switch from fuel to bioethanol and the next station is indicated on your cell phone. And then you can offset, you can offset because you will have access and you have access now to offsetting programs totally digital that are going to allow you to act now and not 1 year or a few weeks from now. And finally, we want to preserve because the program we selected for our clients to offset are supporting local project for biodiversity and the recovery of degraded areas. Another example page -- so the next page, which is Page 22. Another example of the power of our specific-purpose money and you know that we are the leader of the specific-purpose money and the usage of this technology can contribute to a better world. We have been able to sign in Africa in Cameroon what we call Agri Edenred. It's a 100% digital solution as in fact as a farmer, you receive some digital money on your cell phone, but this digital money can be spent only to buy what is going to allow you in fact to increase your productivity, i.e., mainly fertilizers. This program is for 600,000 cocoa and coffee farmers that are eligible and in fact it allows them to increase the productivity, but also to increase in fact their income by almost 18%. Another way to say it in an inflation context, when you are a farmer in Cameroon, the cost or the price of fertilizer is skyrocketing. So with your level of overview, you will not be able to buy fertilizers. If you receive some subsidies, then 100% of the subsidies is going to be dedicated thanks to our specific-purpose money technology to buy the fertilizers. It increases your income because otherwise the cost will be too high and it increases the productivity for those farmers that are eligible. Another example of what we are doing is next page so Page 23. As you know, we are in the United Arab Emirates and we are expanding our value-added services to foster inclusion. What does it mean? It means that today we have in Dubai 1.5 million users of our C3Pay salary card. But because we are developing value-added services so one of the value-added services is salary advance. There's now many others such as money transfer, SMS alert services, mobile recharge. And we have already 500,000 users of C3 mobile app so it's 33% of them. And if we zoom on one of the new service we just introduced, which is called salary advance. When you are a user of the Edenred C3Pay solution, you can get up to 50% of your salary in advance in case of emergency. It's quick and easy and in fact you have a instant loan approval. So it's a good example of the usage of our platform, 1.5 million users in Dubai, to develop additional services so to allow for upsell and cross-sell, but new services that foster inclusion in this part of the world. It's what we like at Edenred. So now that you understand the 4 levers we are working with to accelerate in fact the scale effect of our platform. The first one being go beyond food, fuel and payment. The second one, increasing our technology and product innovation. The third one being continue to fuel the sales machine and more and more efficient go-to-market without forgetting being a platform for good for our employees, but also for the 50 million users around the world. So now what does it mean? In details, the H1 2022 results. Julien, we are all yours.

Thank you, Bertrand. Good morning, everybody. Very happy to be with you this morning to share the presentation of Edenred H1 2022 results. I propose we start with the operating revenue on Page 25. So the operating revenue of Q2 2022 came to EUR 465 million, up plus 24.5% in reported figures and plus 19.2% in like-for-like. This solid performance came on the back of an excellent start to the year and strong growth in operating revenue during the first quarter. It leads Edenred to H1 2022 operating revenue of EUR 891 million, up plus 20.9% versus last year in published figure and plus 27.3% in like-for-like. As you noted, the currency positive impact is plus 4.1% in H1. During these first 6 months of 2022, the group has continued to penetrate its market by capitalizing on its standard technology and sales expertise. Let's zoom now in our business line performance, I move to Page 26. All the business lines posted a double-digit growth both in published and like-for-like figures. Employee Benefits operating revenue grew by 17.7% in published and plus 15.7% in like-for-like fueled by strong sales activity both with large accounts and SMEs. The performance is also driven by the increase of maximum face values in many countries such as Romania, Turkey or France. In H1 2022 Employee Benefits accounts for 59% of Edenred's operating revenue. Fleet & Mobility Solutions operating revenue stands at EUR 252 million, up plus 32.3% versus last year in reported figures and plus 24% in like-for-like. The strong year-on-year growth reflects the successful deployment of our Beyond Fuel strategy. Fleet & Mobility Solutions accounts for 28% of Edenred's operating revenue. Complementary Solutions is up plus 13.6% in reported figures and plus 11.4% in like-for-like despite the high basis of comparison for the first quarter due to the specific earmarked [ external ] programs set up during the first quarter of 2021 amid the health crisis. Growth from the business line reflects the good performance of Corporate Payment Services in North America operated through CSI. On Page 27, you will find our revenue growth per geography. What is true for business lines is also true for all geographies, i.e., a strong double-digit growth everywhere in reported and like-for-like figures. In Europe, Edenred grew by 16% in reported figures and 15.7% in like-for-like. In Latin America, the operating revenue is up 32% in reported figures and almost 17% in like-for-like. And in the Rest of the World, we are performing well too with plus 20.5% operating revenue growth in published and plus 31% in like-for-like. In H1 2022 Europe accounts for 62% of Edenred operating revenue, Latin America accounts for 30% and Rest of the World for 8%. Let's move now to the performance of Europe starting with France on Page 28. The operating revenue of Edenred in France is up 12.2% in Q2 after a growth of more than 10% in Q1. This performance was notably led by robust growth for Employee Benefit Solutions fueled by contract wins for the Ticket Restaurant offering. And as Bertrand presented to you, Edenred is the leader of the market with a market share of over 40%, increasing year after year since 2016. On top of the usual performance, the Beyond Food strategy is successful with an increasingly attractive progressive employee engagement platform MeyClub that allows employees to benefit from discounts on Edenred e-commerce website. Fleet & Mobility business is growing too notably in the SME segment. In the Rest of Europe, the operating revenue is up 20.2% in Q2 and up plus 17.5% in H1. This sustained growth is a result of the growing attractiveness of the solutions offered by the group in its various business lines. In Employee Benefits, Edenred capitalized on face value increase and on our multi-benefits offer to generate growth. The performance of Fleet & Mobility is solid and supported by strong sales especially on the SME market. Let's move from Europe to Latin America and I move to Page 29. In Brazil, the growth in Q2 reached 77 -- 17.7%, in line with our performance in Q1. This growth is supported by the continued success of Itau Unibanco partnership. I remind you Itau is a major Brazilian bank owning a large network of branches across the country. We also delivered a robust performance in Fleet & Mobility Solutions. In accordance with our Beyond Fuel strategy, we are successfully deploying our maintenance and toll solutions with high growth pace. In Hispanic Latin America, our operating revenue is up plus 16.3% in Q2 in line with Q1 confirming the recovery of the region for Employee Benefits business lines with a good sales momentum. The growth of our revenue in Fleet & Mobility is also strongly [ succeeding ] on the deployment of our Beyond Fuel solutions. It's over for the operating revenue. We move now to the other revenue, I am on Page 30. The other revenue is up 49.1% in reported figures driven by increase in float and interest rates in non-euro zone countries. The other revenue stands at EUR 31 million, EUR 10 million more compared to H1 2021. The increase of float is sustained by the growth of our business volume and our investments are positively impacted from higher rates in Europe outside the euro zone and in Latin America. On Page 31, you find the total revenue performance. The total revenue is the sum of operating revenue and other revenue. The total revenue is up plus 25.7% in reported figures in Q2 and is up plus 21.7% in H1 and stands at EUR 922 million for the first half of the year. I propose to move on Page 32 to contemplate the P&L starting with EBIT. So as we've seen previously, the total revenue is up by almost 22%. And on a like-for-like basis, the EBITDA margin was 1.3 percentage points higher year-on-year demonstrating Edenred's ability to capitalize on its operating leverage while continuing to invest in technology and innovation to help drive the group growth. The operating EBIT growth is even higher at 24.3% in like-for-like with an improvement of 1.7 points on the operating EBIT margin. On Page 20 -- on Page 33, we move to the H1 2022 net profit. The net profit group share is increasing significantly and is up by 27.5%. D&A are increasing by 11% as a result of continued investments in technology and innovation. Net profit takes into account a net financial expense of EUR 17 million versus EUR 9 million in 2021. The net financial expense in first half 2021 included the positive impact of the increase in the fair value of Edenred investments in the Partech funds. At the end of the first half 2022, our net profit group share stands at EUR 170 million. After the P&L, I move to free cash flow statements on Page 34. Edenred business model generates significant cash flows delivering funds from operation before other income and expenses of EUR 299 million in first half 2022, up 17.5% as reported. Our total cash related to working capital requested is improving versus 2021 moving from minus EUR 22 million to plus EUR 90 million. Reimbursements of default shares done down during the beginning of the year has been compensated by additional float driven by business volume increase. As you can see, the recurring CapEx stands at EUR 66 million to be compared with EUR 46 million last year. As Bertrand mentioned, it's 7.2% of our total revenue. We can move to the next page to analyze the level of net debt. So the net debt position at the end of H1 2022 stands at EUR 1.056 billion coming from a net debt position of EUR 1.449 billion in H1 2021. This significant decrease of the net debt is the result of a very strong free cash flow generation of EUR 767 million and has been achieved despite the full cash dividend payment we did in June 2022. I go to Page 36 to share with you the robust financial position of Edenred. Edenred's balance sheet is solid with EUR 4.7 billion in cash and restricted cash from balance sheet, short-term financing options for almost EUR 2 billion, no financial covenants and a firepower for M&A of around EUR 1.5 billion to EUR 2 billion. As you can see on the right-hand side of the slide, we have no major debt repayment before 2024 and the soundness of the balance sheet is confirmed by Standard & Poor's. The rating of Edenred is BBB+ and the outlook has been increased to positive from stable in April 2022. This is it for the detailed figures. I give the mic back to Bertrand to share with you our full year outlook.

Thank you, Julien. We discussed a lot about the facts -- the engine of Edenred, which is our platform. We discussed a little bit about the mega trends that are very positive tailwinds for Edenred. There is one last thing that I want to share with you and it's Page 38 is the fact that we are, since the war in Ukraine that started in February 2022, in a very new macroeconomic context. And when we look at this macroeconomic context, we are very positive for the contribution of this context to the sustainable and profitable growth of Edenred. What does it mean? First of all, the Edenred solutions are more and more attractive in this context. First of all, we have inflation and so inflation means purchasing power for the employees. It also means difficulties for many companies and especially the SMEs to follow the pace of inflation. That's why our digital comprehensive offer to give back purchasing power in a fiscal efficient manner is more and more attractive for the employers around the world. The second thing is when you are in such a context, you are looking for enhanced efficiency and more control. It's what we can provide with our Fleet & Mobility Solutions and also the B2B Corporate Payment Solutions, things that are more under control and things that are more efficient. So yes, the Edenred portfolio of solutions is more attractive in such an environment. The second thing is yes, when you have inflation, you have increase in maximum face value of our programs. So we saw that for the Ticket Restaurants where we had some increase in the legal maximum face value decided by governments. It's true in Romania, it's true in Turkey and it's also true in France where the government decided in fact last Friday to increase the face value by 4%. Then when you have an increase in the maximum face value, it doesn't mean that it's going to happen and it's our know-how to convince clients in fact to use what has been given from a legal and, let's say, regulatory point of view to be used by the employers for their employees. It's not automatic so it's our job to make sure that it is understood and it's going to be used by the employers to give more purchasing power to their employees. The third element that is new is the increase in interest rates. And in fact the increase in interest rates, we see immediately the impact on our other revenue. We see in H1 an increase of 49%. It's an increase that is very notable in Latin America and non-euro countries. But knowing that the Central Bank of Europe decided last week to increase the basis point by -- to increase in fact by 50 basis points is going to help us in the coming semesters. So that's another new element that contributes to accelerate the revenue generation and the profitability of Edenred. The last thing is yes, we saw an increase in fuel price and when we look at what it means for Edenred, it means an increase of the like-for-like operating growth of about 2.5 points to 3 points in fact contribution in H1 2022. So to make a long story short, there are a lot of tailwinds that are positive for Edenred in this current macroeconomic context. So to conclude, Page 39. Yes, Edenred is in a stronger position than ever to generate sustainable and profitable growth. First, because we will continue to strengthen our platform every day and what we want to achieve with our unique scalable platform is to penetrate more our under-penetrated market, to bring more and more new solutions and services on the market via the platform, to increase the upselling and the cross-selling. But also the ability to distribute products that have not been developed by Edenred, but will be connected to the Edenred platform to contribute to our mission being the everyday companion for people at work. But also because we are a digital platform accessible via API to have our product and services distributed by some other platforms. I remember all of you that we are now connected for example to more than 200 food delivery platform around the world. The second thing that is positive for the sustainable and profitable growth of Edenred is we have new trends that have accelerated on the market. The digitalization of our stakeholders is good for the digital leader. The working world transformation and especially the remote working is good for Edenred. People are looking more and more for virtual canteens, people are looking more and more for employee engagement solutions and people are looking for more and more greener mobility. Thanks to our data-powered product and solution in Fleet & Mobility, that's something we can provide. And finally as I said, since Feb 2022 we are now in a new macroeconomic context and inflation and corporate needs for enhancing employee engagements are making the Edenred solution even more attractive. So the combination of the platform advantage of megatrends that are accelerating and a new macroeconomic context are positive for Edenred. That's why for the full year 2022, our EBITDA estimate is between EUR 770 million and EUR 820 million, which represent a yearly like-for-like growth of EBITDA between 14% and 22% -- 21%, sorry. Thanks a lot for your attention. And Julien and myself, we are all yours to answer all the questions you may have.

[Operator Instructions] We already have one question from Andre Juillard from Deutsche Bank.

Congratulations for these good results. A few questions, if I may. The first one was about the new developments and especially Ticket Alimentacion or things like that in the mature market. Do you have any good news from discussion with government regarding the activity environment? Second question is about balance sheet and we are seeing that you're able to generate a lot of cash and decrease more rapidly than expected your leverage. Could you give us some ideas about the use of cash or the potential releverage of the company? And third question about the French market. We've seen that Swile and Natixis merge. What are the key interpretation you do from this merger and the fact that it would reduce the number of players in France, which I think is a good news for the French market? But that's my interpretation, interested to have yours.

Andre, thank you for all your questions. So first of all, there is no mature market. The truth is all our markets are underpenetrated. We shared with all of you the numbers in terms of SME penetration less than 10% in France, less than 5% in Italy and we could take the countries one by one. So in fact that's the beauty of the markets we are operating on, there is no mature market. All the markets are still at opportunity in terms of penetration. The second thing is because we are the worldwide digital leader with a platform that is stronger every day and with the intention to increase our level of investment and you notice that our level of CapEx is at 7.2%. So because 2023 is a good year, we accelerate in fact our investments in the platform because we believe in the platform advantage. So thanks to the platform advantage, there is no mature market as well. We're going to grab more and more market share and more and more share of wallet. Once again if you look at France, EUR 5,000 of total benefits that can be proposed. It's a very nice way for the employers to fight against inflation and to give back with a fiscal efficient solution to give back the purchasing power. Something I can share with you, Andre. I have always been a sales rep for Edenred, but those days unlike the crazy sales rep, all the CEOs that I meet, I share with them the EUR 5,000 and immediately we have a meeting between the Head of Finance and the people in charge of benefits in the company. Because many people did not realize that the portfolio of Edenred was so vast was so unused in fact. But do we have good news from the governments? Yes, we have. If you look at the face value increase: in Turkey, it has increased by 50% recently; in Romania a few weeks ago it has increased by 50% the face value moving from RON20 to RON30; in France last week, as I said, the increase of the face value was supposed to be 2.5% and the government decided to move to 4% starting September 1. 4% is better than 2.5%, but it's not enough because inflation is going to be 6.5% in France. But yes, the sense of this story right now is more and more attraction to benefits coming from the employers, but also coming from the governments who are looking at efficient solution to fight against the inflation. Your second question was our balance sheet. Yes, it's true that we believe in sustainable and profitable growth at Edenred. We believe that revenue growth is vanity, profit growth is vanity, but cash growth is king. So our job is to make sure that we are generating cash, cash to give back to our shareholders via our progressive dividend policy, but cash also to fuel the growth of our platform via technological investment, but also investment into our sales machine as explained. But when needed -- and you know that our big priority is organic growth. But when needed, when we think that from an economic point of view it makes better sense to make some acquisitions, we make some acquisition. But you also know that we are very strict on our financial discipline. That's why for the last 2 to 3 years, we didn't buy much because the multiples were very high. But now that the situation on the multiple front is getting better, we could be more acquisitive in the future knowing that as a platform, our priority is to go after digital services that have been developed during the last 3 to 5 years with the right multiple and that could be integrated quickly on our digital platform. So for example if we find a mobility service that has been developed in one country that is pushing further our ability to be the everyday companion for people at work and if we think that it's more efficient to buy then to develop ourselves, boom, we will make the acquisition at the right multiple and integrate those services into the Edenred family. So yes, we generate cash. Yes, we are deleveraged and for sure, our leverage is going to be below 1 by the end of the year. And when I say below 1, it's much, much below 1. So we have some dry powder, but it's not because we have dry powder that we will not spend wisely. The priority is to fuel our organic growth by investing into our asset. The second priority is to keep our strict financial discipline and to invest in any digital services that will accelerate the strength of our platform. Your third question was about the French market. So yes, you have a kind of merger between Swile and Natixis. Our view on that is first of all, it's very logic. It's a scale business, it's a global business. And so you have 2 actors who are only in France and one of them, if I'm not mistaken Swile, the revenue of Swile after 6 years in France was EUR 11 million and EUR 34 million negative EBITDA. And what we discovered with the publication of the merger is the merger of both of them makes a new entity that is not profitable. It means that what they said is they said that their intention is to be profitable by 2024. So what does it mean? It means that in a scale business, in a global business like the ones where use large cost for compliance, cybersecurity. In fact concentration is a logical consequence. So the fact that both players now tries to be together is for me very logic and that's my interpretation. And it's -- let's say the best example of what we shared with you. We are in a scale business, we are in a global business and if we invest more on the platform, it makes more and more difficult for players that are only local with limited investment capability to follow the pace of innovation and development. Then you are right, in fact it's 1 player less on the French market. And I strongly suspect that there will be some other consolidation to come. Having said that, as you know, we love competition because we are competitive people. And as you see, our growth in France in Q2 was more than 12%.

We have another question from Simon LeChipre from Stifel.

Three questions for me, please. First of all, on the margin performance. Could you give us some color on the operating leverage as the margin improvement was a bit more limited than I was expecting if we exclude the contribution from other revenue? Is it like inflation eating a little bit into margin or is it just higher investments to fuel growth? And in this context, could you give us some color on H2 and should we expect margin to improve year-on-year in the second half? Secondly on CapEx, so slightly above 7% in H1. Is it the new norm? Should we expect CapEx to stay about 7% going forward? And lastly, on Brazilian regulation, is there any update that we should be aware of?

Thank you, Simon, for your 3 questions. As to the margin performance, in fact what has happened, first of all we are a scale business. So a scale business means that at the end of the day, our margin should continue to improve and it's what you see in H1 with an improvement versus H1 2021 in published from 30% to 39.6%, but in like-for-like it's an improvement of 131 basis points. So yes, the margin is improving. Could we have a higher level of margin in H1? The answer is yes, Simon. The decision we made is to accelerate our investments and investments at Edenred are mainly development and development is in our sales force, but it's also in the development of the digital capabilities of our platforms. And digital capabilities means developers and part of the development the developers can do in CapEx, but part of it is still in OpEx. So when we started and understood the equation we are in, i.e. a new macroeconomic context that could be favorable to Edenred, we decided as usual at Edenred to accelerate our investments. That's why you see a level of CapEx that is slightly above 7% because we accelerate boom, boom, boom. And so it means that you can imagine the same acceleration on OpEx because for technological investment, it's a combo of CapEx and OpEx. So yes, we limited a little bit of EBITDA margin improvement because we want to accelerate our development. The second thing you have to take into account is at Edenred, we are operating in 45 different countries and the level of profitability from 1 geographical zone to another is somehow similar, but still there are some differences. And if you look at the weight of Latin America, the weight in fact of Latin America in 2022 is lower than the weight we had in fact in 2020 for example knowing that Latin America globally is slightly more profitable in terms of EBITDA margin than Europe for example. So here in fact, the good news is you have an EBITDA margin improvement. The good news is we could have done better, but we want to accelerate our development so it's one way to use the surplus of margin. And there is another aspect, which is the geographical weight. No impact Latin America, slightly more -- let's say globally slightly more EBITDA margin relative and the weight of Latin America as compared to the previous year is slightly lower. There is another good news behind that, Simon, is the margins -- the EBITDA margin in Europe is increasing. So it's a combination of less weight in Latin America, higher EBITDA margin in Latin America, but growing EBITDA margin in Europe and then the willingness to accelerate our development. Then your second question was about the CapEx. So we said at the last Capital Market Day in 2019 that our level of CapEx should be between 6% and 7%, 7.2% for the semester is very close to 7%. But yes, I expect -- in the future depending on the economic conditions obviously and depending on the growth opportunities that we see, but I expect our level of CapEx to be closer to 7% plus than 7% minus. And once again when you are in the platform economy, when you are looking for scale, time is of the essence and innovation is of essence and we don't want to miss any train as long as we see many, many growth opportunities. Your third question was Brazil as to the regulation. The question is do you have any news? And the answer is no, we don't have any news. We have conversation working on the different elements and so we'll see how it goes. But once again we have been in Brazil since 1976, 100% of our people in Brazil are Brazilians. They know well the business and they know well how to discuss with the authorities to make sure that even if the administration is changing on a regular basis, they do well the work of education and explanation.

We have another question from Justin Forsythe from Credit Suisse.

Nice quarter. First, I want to ask the question around the Employee Benefits segment. So are you seeing any signs of deceleration in the addition of employees to the platform at your employer clients? That's question #1. And question number 2, I know you've spoken a little bit in the past about impact on employment on the Employee Benefits segment. Can you help quantify that for us? For instance if unemployment was to increase to 10% from 7%, would Edenred see a corresponding drop or would it be disproportionate given the size of the businesses that Edenred Red works with? And lastly, I wanted to dive in a little bit on the SMB points you were making. Of course you mentioned that's an underpenetrated channel. But can you remind us of the sales strategy within that business and if you expect to do a lot of self-onboarding there? And if that's the case, will you expect marketing costs to sign up those SMBs to go up as a result?

Thank you for your questions and welcome onboard. So your first question is do we see some deceleration on Employee Benefits segment? The answer is no. As of today -- as of yesterday night, we don't see any deceleration. Your second question is what would be the impact on unemployment -- of unemployment on the Edenred business. First of all, we are in vastly underpenetrated markets. So yes, it's true that if you have a rise in unemployment, you have less people theoretically to serve on every portfolio of each client because on average they will employ less people. But having said that, due to the fact that our markets are underpenetrated and due to the fact that we have more and more upselling and cross-selling to be done thanks to our product innovation, we think that we should be able to more than compensate the negative aspect of the rising unemployment. So when you say is it going to be disproportionate, the answer is yes, positively disproportionate. It means that we believe that thanks to the scale advantage we have with the platform, we believe that due to the underpenetration, we believe that with our sales machine whether on field but also websales as we demonstrated a few minutes ago; we feel that we have more tailwinds than headwinds. You are right to say that at some point of time, there might be some recession leading to unemployment. And you are right to say that it's going to have an impact on our portfolio of current users so less user to serve. But you have to remember that we are in 45 different countries so it means that the recession might not be the same from one zone to another, an intensity that could be different. The second aspect is, as I said, underpenetration and investments on our platform to allow more upselling and cross-selling makes for us in the total of tailwinds stronger than some of the headwinds we might have. Your third question is about SME and SMB. Yes, you -- in fact let me give you a few elements. All our markets are underpenetrated. The most underpenetrated submarket per business line and per country is the SME. So one of the priority is to penetrate. Why? Because in fact economically, it's what is in fact the most efficient. When you have to move 1 client from 1 provider to another provider, the level of commercial efforts and probably even the pricing is not as, let's say, acquisitive than going after unpenetrated market. So we have a very well defined, let's say, taking order in terms of which market, which clients we want to go after first. The second thing is the SME game is a game that we love because it's a very technical game with a complex equation. You have to look carefully at your cost of acquisition, you have to look carefully at your churn, you have to look carefully at your pricing and you have to look carefully at your cost of satisfying the customer. And we love that because it's a scale business and we love that because it's a business based on a very strong expertise. So a few years ago we decided that it was one of the many levers on which we wanted to be the best so at Edenred, we built at the headquarter a center of expertise that we are using country by country to make sure that we respect the different rules of the equation and so we will continue. We will -- we are more and more digital because the cost of serving needs to be reduced as much as we can. So the on-boarding is going to be more and more fully self-on-boarding driven. And in fact the websales are going to continue to increase because the name of the game is to reduce the cost of servicing, to reduce the cost of distributing and the name of the game is to find the right equation between the cost of acquisition and the lifetime value of the customers. And that's an equation we love working on and we love maximizing because we have scale and we are in 45 countries. So we can try things in one country, look at the results. If we fail, we stop. If we succeed, bam we are able to start alive in some other countries. So I'll give you an example. What is the right proportion in lead generation between internalization and externalization? What is the right percentage? What is the right percentage in terms of lead conversion between using external providers and internal providers? What is the minimum number of salespeople, telesales or websales, you need to have to make sure that you are at scale? And we can test and learn all the different equation on a weekly, monthly, quarterly basis to continue to improve the machine because we are at scale and we have the luxury to try different formula in different countries. So to make a long story short, SMB will continue to be one of our priorities and we will continue to work on the maximization of the equation taking all the elements into account.

Our next question comes from Geoffrey d'Halluin from Bank of America.

This is Geoff d'Halluin from Bank of America. Three questions, please, from my side. Just quickly getting back to the minus EUR 15 million result for EBITDA, sorry to get back to that. But just to just to clarify your prior answer, that's coming from higher OpEx so that's explaining the move from plus EUR 2 million to minus EUR 15 million between H1 last year and H1 this year? My second question is regarding your EBITDA guidance of the EUR 770 million to EUR 820 million for that year. I guess you said it basically means between 14% to 21% like-for-like growth. I think you had reported 22% in the first half. So taking the midpoint is 17.5% so imply kind of deceleration in the second half even taking the high end of the range. So just would like to get why you should see a kind of deceleration in second half? Is it driven by more investment to come? So happy to get your thoughts there. And thirdly, regarding the CMD in October, November. Just would like if you can share with us a bit of what are going -- the key topics you are going to discuss during this event if possible.

So Geoffrey, I will take care of the third one and the second one and Julien will take care of the first one. I will start with the third one. Geoffrey, you need to be there in October to see what we're going to discuss about and -- but the discussion will be about accelerated growth due to the platform effect of Edenred. So the explanation of what the platform is, where are we as a platform and what do we foresee in terms of megatrends, but also macroeconomic mix with the platform. So it's going to be very technological driven for all of us to better understand where we are in our journey of total disruption and evolution of Edenred into the platform model. But I will not say more than that because it's going to be a very good day. We will be very proud to explain to you where we want to go and we will be very happy to take your questions because by the questioning all of you are making, you help us to grow better and stronger. But bear with us and it's going to be in London and we trust that you're going to be with us. Your second question was about the EBITDA guidance. So yes, it's between 14% and 21%. What do we foresee for the second half of the year? We foresee a lot of positive tailwinds that will continue in fact in the second half. And we see a few things to be taken into account knowing that we love being in the higher part of the range that we give and you know that's something we enjoy at Edenred. But there are a few things to take into account if you look at the performance in terms of like-for-like growth. The first thing is the basis of comparison. In fact H2 '21 was stronger than H1 '21. Why? Because H1 '21 was still in certain countries COVID months. So we know the basis of comparison in H2 is going to be stronger than in H1. The second thing you need to take into account is the fuel price. We benefited in H1 from the fuel price effects. It has contributed to an additional growth of between 2.5% and 3%. And we know that in H2, the basis of comparison is going to be stronger because in fact if you look at the evolution of the Brent and the WTI, it has increased starting in fact in H2 2021. And so the 2.5% to 3% growth we saw in H1 mechanically will be reduced by half moving to, let's say, between 1.2% and 1.5%. The third element in the basis of comparison and it's always the same at Edenred, the Q4 is very strong every year. Why? Because you have the gift campaign and every year the gift campaign is a new campaign. We are in business for growth. We have all the services to continue to have a strong growth in gift. But last year we had a little bit of help from the regulatory environment because some countries have doubled the incentive for Christmas. Why? Because in those countries, it was a new wave of COVID. So we know that we have a strong basis of comparison in the gifting in 2022. But we also know that we operate better and better on gift. So it should be a good year, but too early to say. So to make a long story short, we know that the basis of comparison is going to be stronger in H2 than in H1 due to the gifting campaign, due to the fuel price effect and due to the COVID effect that did happen in H1 -- in fact H1 versus H2 last year. That's why it's too early to say where we're going to be, but probably based on the trends that we see that are much more deep and profound, we should be in the upper range of this between 14% and 21%. Then you had a question on others, Julien?

Yes. So a few comments on that. So yes, we have a gap between what was in others last year and what we have in 2022. 2 explanations to that. The first one, which represents around 50% of the gap, comes from the long-term incentive plan that we manage. You know that those plans are a 3-year plan and we did a poor performance in 2020 compared to what we used to do. So this year we took into consideration the good performance of 2021 out of 2022. So I would say that it is a comparison basis that explains this gap between 2021 and 2022. And the second main topic we have in the variation comes from investments that we consciously decided, as Bertrand explained. So yes, we have an increase in terms of CapEx. But you know that tech development increase means both CapEx and OpEx increase. So you have a part of this OpEx increase that you find in others as we are managing that at [indiscernible] level.

We have another question from Ed Young from Morgan Stanley.

I've got 2 that haven't been asked. First of all on France, I appreciate it's still a very good growth rate there and well above where your guidance is. But relatively speaking, it's the slowest growing region compared to the, I guess, exceptional growth you're seeing elsewhere. Is that just variance? Is there anything going on in that market in particular? You were very keen to say earlier, Bertrand, that there's no such thing as a mature market so presumably you've got even higher expectations maybe. But just any color on France particularly will be interesting. And the second thing is you can't cover every theme and every megatrend in the presentation, but you didn't mention virtual canteen which you mentioned I think in the last 2 or 3 quarters. Just noting that the contract caterer is now reporting very strong business and industry volumes, Compass well above 2019 levels. Is that coming through as maybe a little more of a headwind of signing virtual canteen or is progress there still strong?

Ed, thanks a lot for your question. And as you know, Julien was the Head of France for a certain number of years. So Julien, I propose that you answer the first question and maybe we can talk together about the virtual canteen.

Yes. So in France so yes, we did plus 12% in Q2 which is a great performance. When you compare France to other countries, I think you have to take into consideration few things. The first one is that inflation is France is not that higher. It means that when you compare inflation in European countries and in France because the government took few decisions, the inflation in France for the last 12 months is something like 5% to 6%. When you look at the inflation in the rest of Europe, it's between 7.5% and 10%. So inflation has not the same impact in France as in other countries. Nevertheless, as Bertrand said, we have tailwinds regarding the face value of Ticket Restaurants. So the government decided to increase the face value the 1st of January of 2.5% and last week they have decided to add another 4% on the face value, which means that the face value in France is going to increase by more than 6.5% this year compared to last year. So this is the first thing I want to say. Second thing in terms of performance, I can tell you that generating more than 12% growth in France is a good performance when we compare to other markets and when we compare to competitors. As we already mentioned in the presentation, our market share is growing on the Ticket Restaurants. It means that we were at 36% in 2016, now we are above 40% and when I say above, it's 41%, 42% according to last studies we did in 30th June. It means that we are gaining market share and we are still pushing on that. And the last thing regarding the France performance compared to other countries. Keep in mind that the Fleet & Mobility business in France is not that big. It means that yes, we have the Fleet & Mobility, but it's quite small compared to our other businesses. It means that you have no fuel price impact on the performance of France. So it can explain the gap between France and other countries.

Maybe I can add a different angle. When you think about France, there is still a lot of penetration to be made for example in SMEs, a lot of upselling and cross-selling with our EUR 5,000 portfolio of digital solutions. But you also have the macroeconomic context of France, you have more unemployed people in France than in the average of Europe, you have less economic growth in France than the average of Europe and you have relatively less inflation in France then. So France is really in the middle of the corridor. That's why maybe when you look at the growth in France of 12%, it sounds or it looks like a little bit mild as compared to the average growth in the group. But mild as a point is unfortunately, I may say, Ed. You had a second question on virtual canteens. Yes, in fact it continues. It continues because remote working, which is the #1 driver, is here to stay. And due to the fact that you have less and less people in the office, due to the fact that people are more satisfied with a virtual canteen solution than with a physical canteen, due to the fact that it's less costly for the employers; we see the movement continuing. But as I explained before, it's going to be a movement along many years because it takes time in the sense that generally speaking, you need to wait for possibilities with your landlord and then you need to get an agreement with your workers' council because generally speaking it's co-managed between the coworkers' council and the employer. So the trend is there. The trend doesn't decelerate, but then it's opportunistic in the sense that you need to have the right window of opportunities. But it's a top priority for us as well to make sure that people who are looking for a more adaptive solution to the remote working are using the Edenred digital solution.

We have our last question from Paul Sullivan from Barclays.

First one for me, can you remind us of the free cash flow guidance for the full year and how we should be thinking about conversion versus the target? Secondly, in aggregate what was the contribution from inflation in Employee Benefits in the second quarter? And then finally, as it becomes more meaningful, can you give us some help on how to model other revenues in the breakdown of float by currency and remind us of the sensitivity to euro zone rate changes going forward?

I propose, Julien, you take 1 and 3 and I will start answering on 2.

Yes, perfect. You can start by answering on 2.

So regarding the free cash flow and the conversion ratio, you know that our commitment is to convert at least 65% of our EBITDA into free cash flow. When I look at the performance we've been able to deliver during the first half of the year and regarding the growth that we are generating, I'm quite confident in the fact that we will be above those 65% and when I say above, it will be quite good performance compared to the 65%. And you know that over the last 2 years, we've been able to be at more than 80% in conversion. This can give you an idea of where we could land knowing that last year we did well because we did a great performance with this card in last quarter. So we are committed to deliver more than 65% and we will do that this year, even more maybe more than 75%. I know you are very, let's say, conservative. But the probability that we do more than 75% is still high. It's super high. So then the question #3 as to the other revenue evolution.

Yes. So the other revenue came from EUR 21 million last year to EUR 31 million this year. When we look at the distribution of the float per geography, 80% of the float is in Europe and 20% is in Latin America. And in Europe if you look at the 80%, 1/4 of this 80% are in a non-euro zone country and 80% is in euro zone country. So what does it mean? It means that today we took advantage of the interest rates in Brazil and in Latin America. So in Brazil, the SELIC is above 12% today. Last year it was at 2% in January and 6% in September. So we have a big increase even if the second semester will be with a higher comparison basis. And in non-euro zone country, we have a big interest rate increase. It's true in the U.K. It's true in Czech Republic. In Czech Republic, it's something like 500 basis points. In Romania, it's almost 400 basis points. So this is what you see in our other revenue. Then regarding the euro zone country where interest rates are going to increase in the coming months. It started last week with the 50 basis point increase decided by the ECB. So it will come and, as Bertrand said, it will have an impact on our other revenue in the coming semesters. Last comment about the other revenue. It is the impact of Turkey because when you look at the line Rest of the World, you see that you have a discrepancy between the like-for-like performance and the reported performance. It is a consequence of the devaluation of the Turkish lira. So we have high interest increase and we have high interest rates in Turkey, but we also have the impact of the depreciation of your local currency.

Okay. So then your question as to the contribution of inflation on Employee Benefits. It's a super complex question and the answers I have for you at this stage are only qualitative answers. On the Fleet & Mobility, we are able to compute quite scientifically what it means because we know the evolution of different price and then we know country per country, price formula per price formula; what is due to a take-up rate on the value, but what is also due to the number of transactions. What is, let's say, the pricing that is based on the meters for example. So we are able to say that it's between 2.5% and 3%. On Employee Benefits, the only thing I can say it has a positive impact on face value increase and this impact is going to continue and probably amplify. But by how much, it's difficult to say because then what happens is the usage of the maximum [indiscernible] is very different from one product to another and from one country to another, then the pace of usage is very different as well. And finally, we also have inflation in our costs. So looking at the revenue is only one side of the equation. The other side is the cost. So at the end of the day, on Employee Benefits, I'm not able in fact to give you a credible number. The only thing I'm able to say is positive. And what we want to be is an inflation winner and we demonstrate that. We want to benefit from the increased value of the potential portfolio we have, but we also want to control well our cost structure to make sure that we continue to create some value. That's the name of the game for us.

That's great. And just to clarify, the 1.2% to 1.5% contribution from oil that you talked about, was that in the second half or for the full year?

Yes. What I said is on Fleet & Mobility when we look at the contribution of H1 to H1, it's about 2.5% to 3%. And so then when we look at what has been the fuel price in H2 2021, it was much higher than in H1 2021. And so our computation leads to the fact that the delta in H2 should be 1.2%, 1.5% instead of 2.5% and 3%. Another way to say it, the growth coming from the fuel price should be divided by 2 in H2 versus H1. So it's now 10:07 a.m. Paris time. So maybe little time to conclude. So in a nutshell, we are very pleased by the H1 2022 results. Those results demonstrate our capability to accelerate our growth not only the growth, but what we like, i.e., sustainable and profitable growth. The second thing is when we look at the performance of Edenred, now we are looking at the global performance, i.e., the financial performance we discussed a lot about, but also the extra financial performance. The purpose of Edenred is to enrich connections for good and we want to be a tech for good, i.e. the ability to use our leadership in digital specific-purpose money to contribute to a better world by being an enabler in many countries for many users. The third thing is we believe that more than ever we are very poised to generate growth in the future. Why? Because we will continue to strengthen our platform from a technological point of view, from a product point of view. The idea is to penetrate deeper, the idea is to upsell and cross-sell more, the idea is to be distributed and distribute products on our platforms or the platforms of others. The other element is yes, there are some trends that are very positive and positive for Edenred; digitalization, working world transformation and an area or era of greener mobility. And finally, we are in a new macroeconomic context since February 2022. This context if we play it well and we demonstrated that we are able to play it well, it's a context where you need to give back as an employer more purchasing power, you need to control more your costs and so due to the inflation, it's good for Edenred. The interest rate increase is good for Edenred. So in this new macroeconomic context, Edenred solutions are more and more attractive. So we are positive on our H2 and more importantly, we are positive beyond H2 on our ability to generate sustainable and profitable growth. Thank you for your attention. Thank you for your questions because it help us better understand our business and continue to make progress and we wish you a wonderful day. Bye-bye.

Bye-bye.

Ladies and gentlemen, this concludes today's conference. Thank you all for participating. You may now disconnect.