investor presentation

June 2016
INVESTOR PRESENTATION
ACCELERATING TRANSFORMATION
Eurazeo, a long term professional investor
ACTIVE PROFESSIONAL INVESTOR
EXPERIENCED TEAMS
 A committed & hands-on investor
 34 Investment professionals
 Crystallizing value through Asset rotation
 Stable & recognized investment teams
 130+ years existence
 Long-term experience, deep industry
 Investment cases built on a mid-long horizon
knowledge & sector specific
 Incentivized on value creation
34 portfolio companies
STRONG BALANCE SHEET
> €5bn NAV
CSR
 A strong CSR commitment embedded
in investment process and portfolio companies
management
 Permanent capital
 No structural debt at Eurazeo level
 Member of Ethibel Sustainability Index
Excellence Europe* (sole Private Equity company
in this index) & Euronext Vigeo Eurozone 120*
 Net cash position: c.€1bn as of December 2015
 Limited leverage at portfolio companies’ level
* Both are Vigeo indices
2
INVESTOR PRESENTATION
A major evolution to a leading diversified
& international Private Equity company
DIRECT INVESTMENT
Mid to large companies
EURAZEO
DEVELOPMENT
Growth investments with a resilient base
Sourcing, Syndication
& Fund raising
Small midcaps
French-based international buy&build
INTERNATIONAL
PRESENCE
Growth equity
Support team
High growth minority investments
Support
& Investment team**
>€75m-750m*
€15-75m*
€15-20m*
Real assets
>€25m*
Real asset opportunities in Western Europe
CORPORATE TEAM SUPPORT
Financing, cash mgt & hedging
Internal audit
Financial control
Risk management
Asset Management
CSR / Digital
PLATFORMS
Com. & IR
HR
Legal
Accounting (IFRS)
SMC & debt
* Equity investments for Eurazeo stake
** Opening in Summer 2016
3
INVESTOR PRESENTATION
A major transformation over the recent period
2010
2011
2012
2013
2014
2015
2016**
9
10
10
8
8
10
14
NEW
1
2
3
4
3
6
7
6
5
7
8
6
8
1*
2*
3*
Sourcing
Shanghai office
Platforms
2
2
Sao Paulo office
# Number of companies
* Colyzeo & ANF Hôtels not included
** As of May 2016, with 1 in exclusive discussions
New York office
4
INVESTOR PRESENTATION
Eurazeo teams
EXECUTIVE BOARD
General Secretary
& Legal
Patrick Sayer*
Virginie Morgon*
CEO
Philippe Audouin*
CFO
Deputy CEO
Nicolas Huet*
DIRECT INVESTMENT
# investment professionals
Eurazeo
Development
Marc
Olivier
Millet*
Frappier*
13
9
Yann-Hervé
Du
Rusquec
3
Renaud
Haberkorn*
3
Frans
Tieleman*
3
INTERNATIONAL
China
Eddie Chen
Managing Director
Chao Sun
Analyst
Frank Gong
Senior Advisor
Marcos Grasso
Managing Director
Brazil
CORPORATE TEAM SUPPORT
Financial
control
Investor
Relations
Internal audit /
Risk mgt
Caroline Cohen
Pierre-Alain
Aubin
Human
Resources
Financing / Cash mgt /
Hedging
Accounting (IFRS)
Ewa Brandt
Stéphane Bostyn
Communication
Sandra Cadiou
Edward Portet
CSR / Digital
Sophie Flak
* Member of the Executive Committee
5
Bérengère
de Barmon
INVESTOR PRESENTATION
Seeking growth through megatrends
MEGATRENDS
KEY SECTORS
Longevity/
Health awareness
Longevity continues to increase
for advanced economies by 5
years every 20 years (70 yrs
in 1970 vs 80 yrs in 2010)*
Healthcare
&
related services
Growing
Middle Class in
emerging markets
Middle class in Asia Pacific x6
in 2009-2030,
i.e. +2.7bn new people**
Luxury
&
global brands
Changing business
& consumer patterns
New forms of commerce continue
to transform how people access
products & services. (The number
of connected devices in OECD
countries will be approx 14x larger
in 2022 than in 2015).***
E-Commerce
Consumer & Bus.
Services
Digital Economy
& Big Data
Big data and intelligent
automation allow unprecedented
amounts of data to be analyzed,
enabling the creation of new
solutions that can fundamentally
change organizations.
Healthcare
Telecom
Bus. Services
FIG
•
•
INVESTMENTS(1)
Source: OECD & World Bank ** Source: OECD. The Middle class is defined as households with daily expenditures between USD10
and USD100 per person in purchasing power parity terms *** Source: OECD. OECD Digital Economy Outlook 2015.
(1) Investments 2016YTD
6
INVESTOR PRESENTATION
Growth drivers supported by accelerating
transformation of our portfolio companies
Process optimization
reinforcement
Management
Organic
growth
Corporate
governance
China & Brazil
Corporate Teams
Strategy
Build-ups
Digital / Innovation
International
7
INVESTOR PRESENTATION
Eurazeo has stepped up the momentum
of asset rotation
Asset Rotation in % of NAVn-1, since 2011
2015: A record year for both investments and exits
Investments
Exits
14%
3%
Total investments in 2015
~€550m + €100m
5%
16%
1%
2011
30%
13%
2012
committed*
Net proceeds in 2015
13%
€1,192m
25%
11%
2013
2014
2015
8
(*) €100m committed in Capzanine
INVESTOR PRESENTATION
Cash-on-cash multiple: a strong track record
5,0x
4,5x
Investment
size:
4,0x
Terreal
3,5x
3.5
3,0x
2,5x
Fraikin
Mors Smitt (1)
3.5
3.4
ANF
Immobilier (2)
Eutelsat
2.4
B&B
2.9
Rexel (3)
2.4
2.3
2.1
2,0x
3.3
Flexitallic
Group (1)
1,0x
Station
Casinos
0,0x
2005
(1)
(2)
(3)
(4)
2.2
1.8
Gault &
Frémont (1)
0.7
Europcar
1.7
Elis (4)
€50–100m
<€50m
x
Multiple
Elis (4)
APCOA
Sirti
0.0
€100–150m
2.0
1.4
1.2
Intercos
0.2
Cap Vert
Finance
2.0
Edenred
0,5x
Moncler
IMV
Techno. (1) Accor
2.0
1,5x
>€150m
0.0
2013
2014
0.0
3SP
2015
At Eurazeo PME level
Sale of part of ANF Immobilier’s portfolio (Lyon)
On average over the entire investment: 4 disposals in June & August 2013 and April & Sept. 2014
Sale of part of Elis on February 2015, April 2016 and
9
May 2016 respectively
2016 YTD
INVESTOR PRESENTATION
+14% average annual NAV growth (dividend not included)
CAGR
+14%
+16%
61.1
NAV
as of Dec. 31*
In € per share
68.9
Dividend
included
62.8
46.7
40.3
2011
2012
2013
2014
2015
NAV/ share as of April 29, 2016**: €68.3
(*) Adjusted for bonus share allocations, including 2016 (i.e. based on 73,665,278 shares)
(**) With listed companies valued at their spot share prices
10
INVESTOR PRESENTATION
We are steadily increasing
our dividend distribution
DIVIDEND DISTRIBUTION in €m
Special dividend
Ordinary dividend
Ordinary dividend CAGR: +6.4% over 12 years
ANF Immobilier shares
64
293
38
45
45
2004
2005
2006
80
57
63
63
64
67
74
76
75
79
80
2007
2008
2009
2010
2011
2012
2013
2014*
2015
2016
FY 2015 Dividend
Bonus share
€1.20 /share
+ €1.20 special dividend
1 for 20
(*) Purchase and cancellation of 5.8% of total shares in 2013
11
INVESTOR PRESENTATION
We have delivered a solid return to shareholders
In €m
6,691
1,080
2,381
436
Eurazeo has returned to its shareholders
more than its initial market capitalization
since June 30, 2002
865
2,385
Active share buyback policy
and regular dividend
distribution:
Shareholders’ return
1,925
4,310
1,925
Increase in
market cap up to
May 31, 2016(1)
June 30, 2002
May 31, 2016
Ordinary dividend
Special dividend
Share buyback
Shareholder value,
May 31, 2016
Share price: €58,51
Market cap
Eurazeo outperformed the index over a long
period of c.14 years(2):
TSR
CAGR
Eurazeo
+242%
+9%
CAC 40
+84%
+4%
SBF 120
+106%
+5%
Eurazeo NAV/Share growth:
(Including dividends)
CAGR
Dec. 31st, 2011-April 29th, 2016
+15.3%
(1) Including capital increases. Source: Bloomberg
(2) Between July 1st, 2002 and May 31, 2016
12
INVESTOR PRESENTATION
Historical performance of Total Shareholder Return
CAGR for an investment in Eurazeo as of Dec. 31st, 20xx until Dec. 31st, 2015
2002-08 vs. 2009-15
Basic Points
+4.8
+2.6
+2.8
+2.8
+0.7
(0.8)
+1.5
+8.2
+6.2
+3.1
+18.8
+17.5
+5.8
+4.8
+1.6
+8.2
33%
Eurazeo
30%
CAC 40
18%
18%
17%
13%
9%
9%
9%
7%
5%
9%
8%
6%
5%
7%
4% 4%
1%
From Dec. 31st: 2002*
To Dec. 31st:
2015
2002
2015
2003
2015
2004
2015
2005
2%
2006
3%
14%
12%
11%
8%
13%
12%
7%
1%
2007
9%
1%
2008
2009
2010
2011
2012
2013
2014
2015
2015
2015
2015
2015
2015
2015
2015
2015
2015
=
-








0%
June
2002
2008
2008
2015
Relative performance of Eurazeo vs. CAC 40




(*) As of July 1st, 2002
Source: Bloomberg
13
INVESTOR PRESENTATION
A long-term shareholder base and a strong
corporate governance
SHAREHOLDING STRUCTURE
A STRONG CORPORATE GOVERNANCE
as of December 31, 2015(1)
Sofina
5.3%
Joliette Matériel
2.2%
Free
• Separation of the roles of Chairman
float(3)
and CEO
61.4%
• Independence of the Supervisory Board:
Crédit Agricole(2)
14.6%
8 independent members out of 13
• Audit Committee, Finance Committee,
Compensation and Appointments
Committee, CSR Committee
Concert(1)
16.5%
• Existence of a shareholder agreement
between founding families (“Concert”,
former SCHP)
(1) Concert as of December 31, 2015
(2) Including 8.0% of capital related to exchangeable bonds
(3) 3.8% of treasury shares
14
INVESTOR PRESENTATION
Eurazeo’s vision: CSR as a source of sustainable value creation
In an increasingly complex and demanding environment, Eurazeo continues to develop its CSR commitment in keeping with a practical
approach focused on continuous improvement and extending well beyond the timeframe of the investment.
Integral part of Eurazeo’s responsible shareholder role, the implementation of a CSR approach helps bring out the potential of companies
to create value, while combining economic development, reduced environmental impacts, social progress and balanced governance.
Eurazeo’s CSR strategy and 2020 objectives
Eurazeo, a Responsible Shareholder
• Signatory of the UN PRI since 2011
• Signatory of the UN Global Compact since 2014
• Presence in Ethibel Sustainability Index (ESI) Excellence Europe (sole Private Equity company in
this index) & Euronext Vigeo Eurozone 120, both are Vigeo indices
• Prize for the Best Registration Document at the Grands Prix de la Transparence
• CSR Committee within the Supervisory Board
• Dedicated CSR department and operational internal CSR committee
15
INVESTOR PRESENTATION
Breakdown of NAV
NAV
% of total
As of Dec. 31, 2015*
As of April 29, 2016**
Others
Treasury
20%
Eurazeo
PATRIMOINE
Eurazeo PME
Others
2%
23%
Total NAV =
€5 074M
6%
19%
Eurazeo
CAPITAL
Eurazeo
PATRIMOINE
Eurazeo PME
4%
39%
26%
Eurazeo
CAPITAL
7%
Eurazeo CROISSANCE
Listed
Unlisted
Total NAV =
€5 031M
7%
6%
Eurazeo CROISSANCE
4%
Treasury
Unlisted
4%
33%
Listed
(**) With listed companies valued at their spot share prices
(*) Split after tax
16
INVESTOR PRESENTATION
Eurazeo: A diversified group of market leaders (1/3)
(1)
4.5%
Hotel manager: Accor operates in 92 countries
with 160,000 employees
#1 IN THE WORLD
5,581
70%
79.4%
Leading European board games and trading cards
publisher & distributors (Closing on 21 January 2014)
FAST GROWING
MARKET
270
73%
High-growth clothing and accessories designer & distributor
FAST GROWING
MARKET
933
10%
14.2%
Rental and cleaning of textiles and hygiene services
#1 IN EUROPE
1,415
30%
42.4%
Short-term car rentals with a fleet of ca.200,000 vehicles
#1 IN EUROPE
2,142
83%
90.0%
Leading player in Tax Free Shopping & Dynamic
Currency Conversion
#2 IN THE WORLD
212
-
49.9%
Leader in property management in France
#1 IN FRANCE
696
10%
17.3%
Leader in the animal nutrition and health sector
FAST GROWING
MARKET
1,517
79%
13.0%
Leading brand in luxury outerwear
FAST GROWING
LUXURY BRAND
880
84%
41.0%
Pioneer in employer-sponsored nurseries
#2 IN FRENCH
NURSERY MARKET
144
-
Global leasers in the hospitality and services management
education sector
#2 & #3 IN THE
WORLD
CHF173
-
634
-
-
-
9.8%
100.0%
67%
(4)
%
2015 sales
International
(€ m)
% Economic
interest
Leading global pharmaceutical and essential chemicals
company
A new group dedicated to more than 10 iconic European chocolate
and confectionery brands from Mondelez International
(1) Minority positions in Banca Leonardo & Fraikin not included
(2) % of sales outside Europe
(3) InVivo NSA: based on FY2014/15 figures
(4) In exclusive discussions. Closing expected in H1 2017
17
Leading positions in its target
growing end-markets
(2)
INVESTOR PRESENTATION
(3)
(2)
Eurazeo: A diversified group of market leaders (2/3)
(1) % Economic
interest
Fourth-largest French group specialized in accommodation for the
dependent elderly persons (medical senior nursing homes)
264
3%
76.3%
Global network of c. 1,900 franchised hair care and beauty salons
65
40%
59.7%
Belgian Brasserie theme-based restaurant chain
114
0%
87.2%
Leading player in the design, manufacture and distribution of
sutures and other single-use sterilized surgical devices
63
60%
83
77%
166
50%
88%
42.9%
Grape
Hospitality
%
International
64.1%
77.1%
(3)
2015 sales
(€ m)
European leader in signaling and lighting for industrial and commercial
vehicles
European leader in premium freight, specialized in urgent and
critical shipment for automotive, industrial sectors and lab testing
50.1%
World leader in critical GPS applications
99
54.0%
Complementary brands specializing in home linen
186
2015 sales
(€ m)
% Economic
interest
%
International
49.7%
French real estate investment company with
downtown trophy assets in major French cities
LARGE OPERATOR IN
LYON, BORDEAUX
AND MARSEILLE
49
-
78.0%
Leading ready-to-wear wholesale center in Europe
LOCATED IN
PARIS INNER RIM
15
-
A platform dedicated to the hotel business
PORTFOLIO OF 85
ACCORHOTELS
HOTESL IN EUROPE
216
-
(1) Not included minority positions in The Flexitallic Group & Fondis
(2) Based on FY2014 results
(3) Our limited partner position in Colyzeo not included
18
(2)
INVESTOR PRESENTATION
Eurazeo: A diversified group of market leaders (3/3)
A pioneer in electric vehicle fast chargers
Hi-tech company specialized in high power electronics solutions
Major player in renewable energies
Leading peer-to-peer lending platform in Continental Europe
Leading marketplace of pre-owned fashion and luxury products
The leading provider of cloud-based human resources service delivery solutions
Online market place for luxury goods and beauty products
PLATFORMS
Europe’s first investment and development platform dedicated to the asset management industry
Independent investment company specialized in ‘capital and private debt’ financing to French SMEs
and SMIs for development projects and transmission transactions.
OTHER
% Economic
interest
18.3%
A private and independent investment bank founded in Milan.
19
INVESTOR PRESENTATION