Edenred SE

Earnings Release • Jul 18, 2012

First-half 2012: 9.5% like-for-like growth in issue volume, reflecting the strong performance in Latin America

•			Strong 9.5%* growth in issue volume in line with objectives1			, reflecting:
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• Good economic conditions and a strong sales performance in Latin America (up 21.8%*), which accounts for more than 50% of total issue volume.
• Low growth in Europe (up 1.2%* excluding Hungary² ), impacted by the decline in the number of people in work.
• Sustained growth in Rest of the world (up 11.7%*).

• Total revenue of €511 million, up 7.3%*, reflecting:

• An increase of 9.3%* in operating revenue with issue volume³ , in line with the rise in issue volume.
• A slight decline in operating revenue without issue volume, generated by less recurring businesses.
• An increase of 7.4%* in financial revenue, despite the decline in reference rates in most countries.

*Like-for-like, year-on-year growth in the first half

(in € millions)	st half 1 2011	st half 1 2012	% change
			Reported	Like-for-like4
Issue volume	7,264	7,865	+8.3%	+9.5%
Operating revenue with IV 5	374	401	+7.2%	+9.3%
Operating revenue without IV	82	64	-22.0%	-2.1%
Total operating revenue	456	465	+1.9%	+7.3%
Financial revenue	44	46	+2.1%	+7.4%
Total revenue	501	511	+1.9%	+7.3%

¹ Normalized organic growth target for the 2010-2016 period of 6% to 14% a year. Normalized growth is the objective that management considers to be attainable if unemployment does not rise. 2

5 IV : Issue volume.

In Europe including Hungary, issue volume was down 2.1% in the first half.

³ Corresponds to fees paid on prepaid service vouchers.

⁴ Based on comparable scope of consolidation and constant exchange rates.

FIRST-HALF ISSUE VOLUME UP 9.5% LIKE-FOR-LIKE

Issue volume amounted to €7,865 million in the six months ended June 30, 2012, an increase of 9.5% like-for-like and of 8.3% as reported, reflecting the 0.2% positive impact of changes in scope of consolidation and the 1.4% negative currency effect for the period.

Like-for-like growth in issue volume by region

Like-for-like growth in issue volume	st quarter 2012 1	nd quarter 2012 2	st half 2012 1
Latin America	+22.1%	+21.5%	+21.8%
Europe Europe excluding Hungary	-0.3% +2.7%	-3.8% -0.2%	-2.1% +1.2%
Rest of the world	+13.6%	+9.8%	+11.7%
TOTAL	+10.4%	+8.5%	+9.5%

Latin America: €4.0 billion in first-half issue volume

In Latin America, which accounted for more than 50% of the Group's business in the first half, issue volume rose by a very sharp 21.8% like-for-like in a favorable economy. The increase was in particular led by an excellent sales performance, which resulted in major new client wins, especially in Brazil. Growth was also driven by the ramp-up of new solutions such as Ticket Restaurante® in Mexico (up 30.1% like-for-like) and Junaeb in Chile, a public social program for students (up 36.7% like-for-like).

In Brazil, issue volume increased by 22.7% like-for-like, with gains across the entire solutions portfolio, including meal and food vouchers (up 22.2% like-for-like) as well as the Ticket Car® expense management business (up 22.9% like-for-like).

Hispanic Latin America saw sharp growth in issue volume, which rose by 20.3% like-for-like, reflecting a strong performance in all solutions with increases of 16.9% for Ticket Restaurante® /Ticket Alimentación ® and 29.6% for Ticket Car® .

Europe: €3.6 billion in first-half issue volume

Issue volume in Europe was slightly lower in the first half, due to the impact of the situation in Hungary⁶ . Issue volume rose by 1.2% like-for-like excluding Hungary, in a challenging economic environment shaped by a decline in the number of people in work and low inflation rates. Business was stable in the second quarter, reflecting an unfavorable basis of comparison (with one to two additional bank holidays) and a deteriorated situation in Italy (down 1.3% in the first half, including a 2.1% like-for-like decline in the second quarter).

In Western Europe, issue volume rose 1.3% like-for-like in the first half, mainly led by higher penetration rates. In France, for example, business performed well in the first half, with issue volume rising 2.1% like-forlike, including a 3.5% increase for Ticket Restaurant® , thanks to new client wins. In the United Kingdom, the Childcare Vouchers® business delivered a good performance with like-for-like growth in issue volume of 5.4%.

Central Europe saw a 20.3% like-for-like decline for the period, as business was negatively impacted by the situation in Hungary, where issue volume fell by 85.4%.

⁶ Where legislation favoring local companies was introduced in the meal voucher market on January 1, 2012.

TOTAL FIRST-HALF REVENUE UP 7.3% LIKE-FOR-LIKE

Total revenue corresponds to the sum of operating revenue (derived from the sale of programs and services) and financial revenue (derived from investing available cash). In the first half of 2012, it amounted to €511 million, an increase of 7.3% like-for-like over the prior-year period.

FIRST-HALF OPERATING REVENUE UP 7.3% LIKE-FOR-LIKE

First-half 2012 operating revenue totaled €465 million, representing an increase of 7.3% like-for-like. On a reported basis, the increase was 1.9% after taking into account:

• • The 4.3% negative effect of changes in scope of consolidation, corresponding to the divestment of non-core businesses in 2011 (notably Davidson Trahaire in Australia and WorkPlace Benefits) and the decision to stop issuing BtoC gift vouchers in France as from January 1, 2012.
• • The 1.1% negative net currency effect, due mainly to the Brazilian real.

Like-for-like growth in operating revenue ¹ st quarter 2012 2 nd quarter 2012 1 st half 2012 With issue volume +9.4% +9.2% +9.3% Without issue volume +0.3% -4.3% -2.1% TOTAL +7.8% +6.7% +7.3%

Like-for-like growth in operating revenue by type of revenue

• Operating revenue with issue volume climbed by a robust 9.3% like-for-like to €401 million in the first half. In Latin America, it reflected the trends seen for issue volume, which rose by more than 20%. In Europe excluding Hungary, operating revenue with issue volume rose by 2.4% for the period.

Like-for-like growth in operating revenue with IV7	st quarter 2012 1	nd quarter 2012 2	st half 2012 1
Latin America	+19.7%	+19.9%	+19.8%
Europe Europe excluding Hungary	-1.1% +2.4%	-1.3% +2.3%	-1.2% +2.4%
Rest of the world	+14.1%	+8.8%	+11.4%
TOTAL	+9.4%	+9.2%	+9.3%

• Operating revenue without issue volume amounted to €64 million, a slight decline for the period (down 2.1% like-for-like). This revenue is primarily generated by corporate marketing and incentive consulting services, which are less recurring and generate lower margins than the other solutions. The second quarter was in particular impacted by the termination of non-recurring contracts in Germany recorded in second-quarter 2011.

7 IV : Issue volume

FIRST-HALF FINANCIAL REVENUE UP 7.4% LIKE-FOR-LIKE

In the first half, financial revenue rose by 7.4% like-for-like, thanks to a slight increase in the average investment rate and despite the decline in reference rates in most countries. Given this decline, growth slowed to 4.5% in the second quarter from 10.4% in the first.

CONCLUSION

In the first half of 2012, total revenue rose by a robust 7.3% like-for-like.

This performance reflects sustained 9.3% growth in operating revenue with issue volume, especially in Latin America and Rest of the world, while the economic environment was more difficult in Europe.

Financial revenue continued to trend upwards, rising 7.4% despite the decline in reference rates in most countries over the period.

Lastly, with a 9.5% increase in issue volume in the first half, Edenred is pursuing its commitment⁸ to strong and sustainable growth.

UPCOMING EVENTS

August 30: First-half 2012 results

October 17: Third-quarter 2012 revenue

Edenred, which invented the Ticket Restaurant® meal voucher and is the world leader in prepaid corporate services, designs and delivers solutions that make employees' lives easier and improve the efficiency of organizations.

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Edenred solutions ensure that funds allocated by companies are used as intended. These solutions help to manage:

Employee benefits (Ticket Restaurant®, Ticket Alimentación, Ticket CESU, Childcare Vouchers, etc.).

Expense management process (Ticket Car, Ticket Clean Way, Ticket Frete, etc.)

Incentive and rewards programs (Ticket Compliments, Ticket Kadéos, etc.).

The Group also supports public institutions in managing their social programs.

Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 39 countries, with some 6,000 employees, nearly 580,000 companies and public sector clients, 1.3 million affiliated merchants and 36.2 million beneficiaries. In 2011, total issue volume amounted to €15.2 billion, of which 58% was generated in emerging markets.

Ticket Restaurant® and all other tradenames of Edenred products and services are registered trademarks of Edenred SA.

Contacts

Media relations

Anne-Sophie Sibout, Head of Media Relations - Phone: +33 (0)1 74 31 86 11 – anne-sophie.sibout@edenred.com Anaïs Lannes, Media Relations Officer - Phone: +33 (0)1 74 31 86 27 – anais.lannes@edenred.com

Investor relations

Virginie Monier, Head of Financial Communication – Phone: + 33 (0)1 74 31 86 16 – virginie.monier@edenred.com

⁸ Normalized organic issue volume growth target for the 2010-2016 period of 6% to 14% a year. Normalized growth is the objective that management considers to be attainable if unemployment does not rise

Appendices

Issue Volume

	Q1			Q2		H1
In € millions	2011	2012	2011	2012	2011	2012
France Rest of Europe Latin America Rest of the world	659 1,148 1,628 119	666 1,127 1,987 129	617 1,232 1,742 120	613 1,157 2,054 132	1,276 2,380 3,370 239	1,279 2,284 4,041 261
TOTAL ISSUE VOLUME	3,554	3,909	3,710	3,956	7,264	7,865

	Q1		Q2			H1
In %	Change	Change	Change	Change	Change	Change
	reported	L/L*	reported	L/L*	reported	L/L*
France	1.0%	2.7%	-0.6%	1.4%	0.2%	2.1%
Rest of Europe	-1.8%	-2.0%	-6.1%	-6.4%	-4.0%	-4.3%
Latin America	22.1%	22.1%	17.9%	21.5%	19.9%	21.8%
Rest of the world	8.4%	13.6%	10.3%	9.8%	9.3%	11.7%
TOTAL ISSUE VOLUME	10.0%	10.4%	6.6%	8.5%	8.3%	9.5%

*At constant scope of consolidation and exchange rates

Operating Revenue

	Q1			Q2		H1
In € millions	2011	2012	2011	2012	2011	2012
France Rest of Europe Latin America Rest of the world	36 81 94 17	34 76 113 11	34 78 100 16	32 72 115 12	70 159 194 33	66 148 228 23
OPERATING REVENUE	227	234	229	231	456	465

	Q1		Q2		H1
In %	Change	Change	Change	Change	Change	Change
	reported	L/L*	reported	L/L*	reported	L/L*
France	-7.1%	2.5%	-3.3%	3.3%	-5.3%	2.9%
Rest of Europe	-5.7%	-4.7%	-8.0%	-6.6%	-6.8%	-5.7%
Latin America	20.9%	20.9%	14.8%	18.8%	17.7%	19.8%
Rest of the world	-35.0%	6.1%	-30.7%	3.7%	-32.9%	4.9%
OPERATING REVENUE	2.8%	7.8%	1.0%	6.7%	1.9%	7.3%

*At constant scope of consolidation and exchange rates

	Q1		Q2			H1
	2011	2012	2011	2012	2011	2012
France Rest of Europe Latin America Rest of the world	5 7 9 1	5 8 10 1	5 8 9 1	5 7 9 1	10 16 17 1	10 15 19 2
Financial Revenue	22	24	23	22	44	46

Financial Revenue

In € millions	2011	2012	2011	2012	2011	2012
France	5	5	5	5	10	10
Rest of Europe	7	8	8	7	16	15
Latin America	9	10	9	9	17	19
Rest of the world	1	1	1	1	1	2
Financial Revenue	22	24	23	22	44	46
	Q1		Q2		H1
In %	Change reported	Change L/L*	Change reported	Change L/L*	Change reported	Change L/L*
France	0.6%	5.4%	-2.3%	1.1%	-0.9%	3.2%
Rest of Europe	7.1%	3.8%	-14.2%	2.7%	-4.0%	3.2%
Latin America Rest of the world	13.9% 39.9%	15.1% 59.5%	-1.1% 36.6%	4.2% 51.1%	6.3% 38.2%	9.6% 55.1%

Total Revenue

	Q1			Q2		H1
In € millions	2011	2012	2011	2012	2011	2012
France Rest of Europe Latin America Rest of the world	41 88 102 18	39 84 123 12	39 87 109 17	37 79 124 13	80 175 211 35	76 163 247 25
Total Revenue	249	258	251	253	501	511

		Q1		Q2		H1
In %	Change	Change	Change	Change	Change	Change
	reported	L/L*	reported	L/L*	reported	L/L*
France	-6.1%	2.9%	-3.2%	3.0%	-4.7%	3.0%
Rest of Europe	-4.6%	-4.0%	-8.6%	-5.8%	-6.6%	-4.9%
Latin America	20.3%	20.4%	13.5%	17.7%	16.8%	19.0%
Rest of the world	-32.2%	8.1%	-27.9%	5.7%	-30.0%	6.9%
Total Revenue	3.4%	8.0%	0.5%	6.5%	1.9%	7.3%

*At constant scope of consolidation and exchange rates