Invest in the PrivateEquitysector throughta ... · OUR VALUES & CONVICTIONS: OPEN-MINDED/...
Transcript of Invest in the PrivateEquitysector throughta ... · OUR VALUES & CONVICTIONS: OPEN-MINDED/...
wealth manager presentation20
18
2206 FR
AN
KFU
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Invest in the Private Equity sectorthrought a leading listed company
Philippe AudouinDirecteur General Finances - CFO - Member of the Executive Board
DisclaimerCONFIDENTIALITYThis presentation (the “Presentation”) has been prepared by Eurazeo.This Presentation may not be distributed, published or reproduced, in full or in part, and the information contained herein must not be released by its recipients to third parties. The recipients of this Presentation undertake not to use the information received hereby for purposes other than those for which the information was communicated to them.
REGULATION
Eurazeo SE is a company listed on Euronext Paris. The recipients of information acknowledge having read and understood the provisions of applicable securities laws and market regulations relating to the use of inside information, and in particular of EU Market Abuse Regulation (Regulation (EU) 596/2014 of the European Parliament and of the Council dated 16 April 2014) as well as article L.465-1 of the French Monetary and Financial Code.
The recipients of information acknowledge moreover that some of the confidential information contained in the Presentation may be regarded as inside information within the meaning of such securities laws and market regulations relating to the use of inside information.
The recipients undertake, in their name and on behalf of the companies of their group, to comply with applicable securities laws and market regulations.
DISCLAIMER
The information contained in this Presentation is provided for information purposes only. Some of the information contained in this Presentation has been obtained from published sources prepared by other parties and it has not been independently verified. Neither Eurazeo nor the group to which it belongs nor any other person assumes any responsibility for the accuracy or completeness of the information contained in this Presentation and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.
The information set out herein is provided as of the date of the Presentation and Eurazeo is under no obligation to update, complete, revise, verify or amend the information contained in this Presentation and/or to provide to you any previous, current or future other materials in relation to Eurazeo or its products or services. Certain statements contained in this document may be statements of future expectations and other forward-looking statements that are based on certain assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
No information provided in the Presentation constitutes or should be used or considered as an offer to sell or a solicitation of any offer to buy the securities or services of Eurazeo or any other issuer in any jurisdiction whatsoever.
None of Eurazeo or any of its affiliates, advisors or representatives shall have any liability whatsoever for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document.
UNITED STATES OF AMERICA
None of the interests of funds managed by Eurazeo or any entity of its group has been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any U.S. state or other relevant jurisdiction. No such registration is contemplated. Neither the U.S. Securities and Exchange Commission nor any U.S. state or other authority or securities commission has reviewed or passed upon the accuracy or adequacy of this Presentation. Any representation to the contrary is a criminal offense. In addition, none of the funds managed by Eurazeo will be registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”), in reliance on one or more exclusions or exemptions therefrom. Investors in any such funds will be required to make certain representations regarding their qualifications, including that each is an “accredited investor” and a “qualified purchaser” as those terms are defined in the Securities Act and Investment Company Act, respectively. There is no public market for the interests in the funds managed by Eurazeo and no such market is expected to develop in the future. Accordingly, investors should be aware that they will be required to bear the financial risks of an investment for an indefinite period of time, including the risk of loss of their entire investment. Past performance is not necessarily indicative of future results and no guarantee can be given that the investment objectives of Eurazeo will be achieved or that investors will receive a return of capital or return on any of their capital. No representations or warranties of any kind are intended or should be inferred with respect to the economic returns or the tax consequences of an investment any fund managed by Eurazeo.
This Presentation relates to investments managed by Eurazeo, which is not registered as an investment adviser pursuant to the Investment Advisers Act of 1940, as amended. As a result, the protections of such registration shall not be afforded to any investor in any fund managed by Eurazeo.
Summary
› EURAZEO AT A GLANCE> a company> an investment plateform> a listed company> a team
› A SELECTIVE & COMMITTED INVESTOR> Selectively investing/qualitative and diversified portfolio/accelerating
companies’ long-term growth> Case studies : Asmodee/Moncler/Colisée/Foncia> Strong cash-on-cash multiple track record> Self transformation & Responsability
› A SOLID TRACK RECORD> Continuous NAV Growth> Solid financial data> Ebitda growth for non listed> Increasing recurring dividends/ fourforld return and outperformance
› THE EURAZEO SHARE, KEY DRIVERS FOR DEMANDING INVESTORS> Access to the performance of the Private Equity Sector> Balance between value creation and controlled risks> Momentum and strong potential
EURAZEO AT A GLANCE
Eurazeo asa company
› A leading investment company, with an award-winning CSR policy
› Historically rooted in Europe (1881), with a transatlantic investmentteam and a global reach (Paris, New York, Luxembourg, Shanghai, Sao Paulo, London, Madrid, Frankfurt, Dubai, Buenos Aires)
› €16bn of Assets Under Management, a dual funded model: permanent capital (€6bn NAV) & capital from investment partners(€10bn)
› A strong financial position
› A solid platform to build future development
5
› A long-term committed investor, with active levers to accelerategrowth
› Operating across the full PE spectrum, Direct Private Equity 56%, Debt 18%, funds of funds 15%, Real Assets 4%, Other 7% as % of AUM,– 2017 Proformaof Idinvest and Rhône
› Dedicated teams to support companies at each stage of theirdevelopment Eurazeo Capital and Rhône (mid to large caps)/Eurazeo PME (smallcaps)/Eurazeo Croissance & Idinvest (growth)/ Eurazeo Patrimoine and Rhône - WeWork –(tangible assets)/Idinvest (Venture Capital, Private Debt, Private funds), Eurazeo brands.
› Independence and timing flexibility due to Permanent Capital
6
Eurazeo asan investment
platform
› A balanced and supportive shareholder base> 3 long-term family shareholders (Mr. David Weill family, JC Decaux
holding, Richardson family, 35.4% as of May 31, 2018) > 21,000+ individual shareholders
› Committed to shareholders> Attractive total Shareholder Return (TSR) > Balanced risk/value creation approach> Qualitative and transparent information, substantive dialogue> Best-in-class governance practices
› The only investment company in the world belongingto the Top 5 CSR indices
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Eurazeo asa listed
company
Financial control
Edward Portet
Communication Investor Relations
Caroline Cohen
Internal audit / Risk mgt
Pierre-Alain Aubin
CSR / Digital
Sophie FlakAccounting
Bérengère de Barmon
Treasury / Capital markets
Stéphane Bostyn
Asia
Marcos GrassoSenior Advisor
Eddie ChenManagingDirector
Chao SunAnalyst
Latin America North America
EXECUTIVE BOARD
11
OlivierMillet*
2
Yann-HervéDu Rusquec
20
MarcFrappier*
4
Renaud Haberkorn*
3
FransTieleman*
#
Jill Granoff
Virginie Morgon*Chief Executive Officer
Philippe Audouin*Chief Financial Officer
Nicolas Huet*General Secretary
Olivier Millet*CEO of Eurazeo PME
Human Resources
Caroline Hadrbolec*
* Member of the Executive Committee
DIRECT INVESTMENT
CORPORATE TEAM SUPPORT
INTERNATIONAL
5
120 talented people
210+ with Idinvest
Eurazeoas a
TEAMinvestment professionals
8
A SELECTIVE & COMMITTED INVESTOR
10
SELECTIVELYinvesting
Maximizing the number of relevant opportunities &
focusing on the most attractive companies
at an inflexion point
2017Strong deal flow
thanks to a dedicated sourcing team
France
>69% outside France
Rest ofthe world
U.S.A.
2017:1,008
Opportunitiesreviewed
28%
31%
41%
Longevity & Health
awareness
Growing Middle Class in emerging
markets
Changing Business & Consumer
patterns
Digital Economy & Big Data
MEGATRENDS
KEY SECTORS
Healthcare&
related services
Luxury&
global brands
E-CommerceConsumer & Bus.
Services
HealthcareTelecom
Bus. ServicesFIG
Clear drivers 2017Opportunities
1,008High priorities
116Offers
submitted
38Deals
11
11
LE GROUPE EURAZEO
Qualitativeand diversified PORTFOLIO
12
ACCELERATINGcompanies’ long-term growth
Internationalisation
M&A
Digital / CSR
Operational leverage
A Reference PartnerTransformation
OUR VALUES & CONVICTIONS: OPEN-MINDED / TENACIOUS / RESPONSIBLE / BOLDSERVING ENTREPRENEURS AND MANAGERS AT EVERY STAGE OF THEIR DEVELOPMENT
UNLOCKING POTENTIAL VALUE
13
1322
41
65
79
10.7%12.4%
15.3%
17,3% 17,9%
CASE STUDY Asmodee
ACTIVITIES2013 2017
Distribution
~50%
Publishing
63%Announced after acquisition date (March 2014)
(1) At constant scope and exchange rates
REVENUES (IN €M)
124175
270
377 442
X 3.6
20152013 2014 2016
EBITDA (in €m)EBITDA Margin
X 6.1
BUSINESS MODELSTRATEGIC PILLARS› Innovate through new games› Build a global footprint› Increase IP content› Build a digital offer
2014 2015 2016 2017
+34% +19% +19% +12%
Long-term target:Publishing activity>60%
2017
TEAM› Recruitment of talented staff
bringing new skills to the organization
STRATEGIC BUILD-UPS
STRONG ORGANIC GROWTH(1)
20152013 2014 2016 2017
Dec. 13, 2013IPO
May 31,2018
39.27
9.80
14
POTENTIAL UPSIDE FROM INCREASED PRESENCE ON THE US MARKET
43% 57%
RoW Italy
2010
WholesaleRetail
75%
25%25%
75%
38 DOS(Directly operated stores) 200+DOS
+20%CAGR
20172010
24%
41%
27%
8% Italy
EMEA
Asia and Rest of the world
Americas
2017
SHARE PRICE (in €) OUTSTANDING REVENUE GROWTH (in €m)
CONTINUED INTERNATIONAL EXPANSION CONTROL OF OPERATIONS IN ALL MARKETS
POTENTIAL UPSIDE FROM RETAIL EXPANSION
CASE STUDY Moncler
15
NURSING HOMES (#)
2014
46
2016
77+67%
3,397 5,881
2014 2016
+73% Homecare Hours (#)
> 3m
Agencies (#)
66
#1 in France(owned
agencies) Services offered: meal preparation, eating assistance, personal care and grooming, house keeping, mobility assistance, companionship, recreational activities
140265
2014 2016
CAGR
+38%
2014 2016
Bien à la Maison NouvelHorizon
96.9%93.8%
BEDS (#)
GROWTH
INTERNATIONAL PRESENCE
› Consolidating the market : +31 nursing homes since Sept. 2014
› Manages 77 facilities : > 70 facilities in France> 6 in Italy> 1 in Spain
› Italy: 6 residences› China: JV agreement – facility under
construction
DIGITALIZATION
› New website› My Colisée, the first nursing home social network› digitalization of its facilities
NEW MARKET PENETRATION – HOMECARE
OCCUPANCY RATE SALES OPERATIONS (in €M)
CASE STUDY Colisée
Cash on cashmultiple 2.5x
IRR 35%
16
585 565 595 641 696 719
2011 PF 2012 2013 2014 2015 2016 LTM*
REVENUES (€m)
86 90103
125 132 137
0
20
40
60
80
100
120
140
160
2011 PF 2012 2013 2014 2015 2016 LTM*
+4.7%CAGR
+10.9%
14.7% 16.0% 17.2% 19.5% 18.9% 19.0% (*) LTM as of June 30, 2016(**) Excluding refinancing impact (***) From July 2011 to July 2016
Net proceeds
€467m
Multiple
2.4x
NAV appreciation**
(during Eurazeo’s holding period)***
70%
29% 1%
Organic growth contribution
Multiple growthcontribution
OthersEBITDA (€m)CAGR
EBITDA Margin
+430 bps
CASE STUDY Foncia
Cash on cashmultiple 2.4x
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STRONG CASH-
ON-CASH multiple
track record
AVERAGE MULTIPLE OF OVER 2X ON ALL EXITS SINCE 2002
Multiple
<€50m
€50–100m
€100–150m
>€150m
Investment size:
x0,0x
0,5x
1,0x
1,5x
2,0x
2,5x
3,0x
3,5x
4,0x
4,5x
5,0x
Fraikin
Eutelsat
Terreal
Station Casinos
B&B
3.5 3.4
0.2
2.1
2.4
2013
Sirti
Edenred
0.0
3.5
2.9FlexitallicGroup(1)
APCOA0.0
Mors Smitt(1)
ANFImmobilier(2)
0.7
0.0
Intercos
3SP
2014
Rexel(3)
2015
1.8Gault &
Frémont(1)
2.0
Accor
4.6Moncler(5)
2.4
2.02.3 2.2
1.2
Elis(4)
1.4
Europcar(6)
2.0
Cap VertFinance
IMVTechno.(1)
Elis (4)
Foncia
4.1
Moncler(5)
2.8
Moncler(5)
1.7
2.4
2017
2.5
Colisée
ANFImmobilier
5.5x
4.0x
3.5x
3.0x
2.5x
2.0x
1.5x
1.0x
0.5x
0.0x
1.7
Europcar(6)
2.32.3
Elis (4)
7.0x
6.7Moncler(5)
2016 2018
Accor
1.9
2005
(1) At Eurazeo PME level(2) Sale of part of ANF Immobilier’s portfolio (Lyon)(3) On average over the entire investment:
4 disposals in June & August 2013 and April & Sept. 2014
(4) Partial sales of Elis in February 2015, April 2016, May 2016 and October 2017 respectively(5) Partial sales of Moncler in December 2013, May 2015, September 2016 and October 2017 respectively(6) Partial sales of Europcar in June 2015 (IPO) and October 2017 respectively
Exiting: timing, from 2 to 12+ yearsOptions: IPO, Trade sale, financial sponsors
Increase in AUM
7o/w 5.6
3
2017*2002
2.3x16**o/w 6 NAV
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SELFTRANSFORMATION
(*) Excluding Idinvest and Rhône(**) Proforma of Idinvest and Rhône
Number of investment divisions
Number of countries
Number of portfolio companies
2017*
5
2002
1
2017*
5
2002
1
MULTI STRATEGIES
GROWING WORLDWIDE
DIVERSIFYING THE PORTFOLIO
2017*
40
2002
143x
8** 358 **
10**DUAL FUNDED MODEL(in €bn)
RESPONSIBILITY › A unique pioneering commitment to CSR in the PrivateEquity sector> Focus since 2008> CSR integrated in all investment stages since 2013> Implementation in every portfolio> First Private Equity socio-economic impact study ever
published (SME in 2018, full scope of activities in 2019)> The only investment company in the world belonging to the
Top 5 ISR indices> Ethibel Sustainability Index > ESI Excellence Europe, Excellence Investment Register, Pioneer Investment Register// Euronext World 120, Europe 120, France 20 Index, MSCI World ESG Leaders index, STOXX Global ESG Leaders Index, FTSE4Good Global and Europe Index
› Highest standard of governance> Chairman & CEO: separate roles> 7 independent members out of 13 on the Supervisory Board> Audit, Finance, Compensation and Appointments and CSR
Committees> Shareholders’ agreement between founding families
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EURAZEO, A SOLID TRACK RECORD
21
CONTINUOUS NAV Growth
Net Asset Value in Euros per share, adjusted for bonus share allocations and the exceptional dividend in 2016
37.443.6
57.1 58.864.6
68.978.2
0
10
20
30
40
50
60
70
80
90
Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017
+16.1%Including
ordinary dividend
+13.1%
€ per share
CAGR
22
Solid FINANCIAL
data(2017 and 2017 Proforma Idinvest & Rhône)
+16%€4,951m REVENUE
EBITDA €727m +14%ECONOMIC REVENUE & EBITDA 2017(at constant Eurazeo scope)
PORFOLIO ROTATION 2017 Investment €1,354m in 9 companiesRe-investment €479m in 13 companiesProceeds and dividends €1,364m
NET CONSOLIDATED INCOMEGROUP SHARE €440.6m in 2017, on eurazeo basis
SOLID CASH POSITION €379m as of Dec. 31, 2017No structural financial debt at Eurazeo level
DISTRIBUTABLE RESERVES(12/31/2017 and PF)
20 yearsof current dividends
€2,055mas of Dec 31, 2017
23
% of NAV*(as of Dec. 31, 2017)
* NAV of portfolio companies excluding listed assets and CPK due to carve-out effect
15%12%
40%
33%
<0% 0–10% 10–20% ≥20%
>2/3 of NAV at double digit
EBITDA growth2017 EBITDA GROWTH
for non listed portfolio companies
EBITDA growth in 2017 (%)
24
Increasing recurring
DIVIDENDS
Special dividendOrdinary dividend
37 38 38 45 45 57 63 63 64 67 74 76 75 79 80 7993
160
64
80
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ANF Immobilier
shares
+6.2% p.a. over 16 years
(1) May 2013 / May 2014: including 3.8% of treasury shares and 5.4% shares cancelled (2) May 2016 / May 2017: including 5.4% of treasury shares and 5.8% shares cancelled
Dividend distribution (in millions of euros)
+126% +155% +143%
+381%
25
Fourfold RETURN &
outperformanceReturn to shareholders
(in millions of euros )
5,568
3,643
2,697 2,697
Increase in market cap
up to Dec. 31, 2017
Shareholders’return*
Dec. 31, 2017June 30, 2002
1,925
8,265
Distribution to shareholders
Market cap**
4.3x
(*) Ordinary dividends, exceptional dividends and share buybacks
(**) Source: Bloomberg
TSR: Eurazeo versus indices over 15 years
(June 30, 2002 – Dec. 31, 2017)**
Total Shareholder Value
M€
CAC 40 SBF 120 MSCI Eurazeo
THE EURAZEO SHARE, KEY DRIVERS FOR DEMANDING INVESTORS
27
ACCESSto the performance
of the Private Equitysector
One of the best performing asset classes over the long-term
Through a listed company
› Market capitalisation: €5bn+
› Liquid investment: average daily volume €15m
› Transparent information
28
BALANCEbetween value creation
and controlled risks
Eurazeo differentiating characteristicsover the long-term
Continuous approach to controllinginherent portfolio risk
› Asset diversification
Careful investment policyto maintain a sound balance sheet
ISR commitment
29
Momentum& strong potential
New combination of strenghts followingrecent strategic moves
› Multi investment strategies
› New geographical footprints
› Dual funded model acceleration
Eurazeo, committed in creating value for its shareholders
› a transatlantic investment platform to serve privatecompanies at all stages of their growth
› a diversified asset manager
THANK YOUFOR YOUR ATTENTION
APPENDICES
32
AuM as of March 31, 2018December 31 December 31 March 31
2016 2017 2018 PF**
Portfolio NAV 3,678 5,057 4,753Eurazeo Capital 2,589 4,058 3,606
Eurazeo Capital unlisted 1,199 2,505 2,505Eurazeo Capital listed 1,391 1,553 1,101
Eurazeo PME 405 382 382Eurazeo Patrimoine 440 320 460Eurazeo Croissance 244 237 245Eurazeo Brands - 60 60
NAV - Eurazeo Development 142 240 715Net cash & other items 1,206 300 327
Cash and cash equivalents 1,052 379 425Other securities and assets/liabilities 140 -93 -105Tax on unrealized capital gains -68 -58 -50Treasury shares 82 72 57
Total NAV 5,026 5,597 5,795# shares* 72,974,031 71,577,752 73,577,752NAV per share (€) 68.9 78.2 78.8
Eurazeo Capital 786 730 665Eurazeo PME 234 396 396Eurazeo Patrimoine 26 45 51
Idinvest (100%) - - 7,804Rhône (30%) - - 1,576
Total AUM for investment partners 1,046 1,171 10,491
TOTAL ASSETS UNDER MANAGEMENT 6,072 6,768 16,286
(*)For 2016, the number of shares is adjusted for the 2017 bonus share grantThe number of shares is adjusted for treasury shares to be canceled
(**) Proforma of Idinvest, Rhône
AUM managedby Eurazeo
Net asset valueof portfolio assets
Funds managed by Eurazeo for investment partners
• Portfolio at fair value• Uncalled committed capital
Investmentpartners’ AUM
Investment partners’ AUM
• 100% of Idinvest’s AUM• 30% of Rhône’s AUM
• Portfolio at fair value• Uncalled committed capital
In millions €
33
Conservative NAV
15
22
8
11 11
16
+98%
+55%
+44%
+26%
+47%
+52%
Last NAV before disposal Net proceeds from disposals
B&B Hotels Mors Smitt Moncler IMV Technologies
Gault & Frémont
979
240
50+55%
Cap Vert Finance
32
621
NAV as of December 31, 2013 NAV as of December 31, 2015
541
Elis
+15%
541
496
125
709
270
495145
115
184
121
COMPANIES
EXIT DATE
Europcar
359
963
+11%
707
1,066
+41%
Foncia
469
334
The FlexitallicGroup
+39%
Colisée
123
89
NAV (in €m)
Sept. 2010 June 2012 Dec. 2013 Dec. 2014 Dec. 2014 February 2015 June 2015 Sept. 2016July 2013 July 2015 July. 2017
34
Share price performance on the long-term
7/1/2002 7/1/2003 7/1/2004 7/1/2005 7/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2010 7/1/2011 7/1/2012 7/1/2013 7/1/2014 7/1/2015 7/1/2016 7/1/2017
Eurazeo LPX Europe SBF 120 MSCI Europe CAC 40
35
Rhône overview, Highlights
Who is Rhône?
› A global alternative investment management firm founded in 1996 by Robert F. Agostinelliand M. Steven Langman
› Fluid team composition across New York and London offices
› Five private equity funds have been raised since inception and currently investing from a €2.6 billion 2015 vintage fund
Professionals
› Approximately 60 people globally, including senior advisors and professionals in their operations group
› 27 investment professionals split equally between New York and London, representing 15 nationalities
AUM› Over €5 billion of assets under managment, including the joint venture with WeWork
› Strong network of Limited Partners (LP’s)
Public Track Record*› Historically top quartile performance across Funds II, III, and IV
› Named among top 4 most consistent performing private equity fund managers by Preqin in 2014
Joint VentureWith WeWork
› Rhône launched a joint venture with WeWork to accelerate the growth of its real estate investment platform
› WeWork is the global leader in the collaborative workspace industry
Source: Prequin and Cambridge Associates
36
Rhône Private Equity, AuM growth
Rhône Capital, strong increase in AUMIn $ million
350 320 8921,252
2,900
Fund I (1997) Fund II (2003) Fund III (2006) Fund IV (2011) Fund V (2015)
Rhône was named among top 4 (out of 196 firms) most consistent performing privateequity fund managers by Preqin in 2014 as supported by Cambridge Associates data ranking Rhône as top quartile for each of its last three funds*
* Source: Preqin and Cambridge Associates
37
Idinvest overview, Highlights
ASSETS UNDER MANAGEMENTAs of Dec. 31st, 2017
Funds of funds30%
Growth3%
Venture28%
Private Debt39%
WHO IS IDINVEST
› A leading European investor founded in 1997
› Spin-off from Allianz in 2010
› Since inception, Idinvest has financed more than 4,000 companies through three business lines: Venture & Growth Capital, Private Debt and Private Funds Group
AUM
› Almost €7 billion of assets under management
› Strong network of Limited Partners (LP’s), includinginsurance companies and leading institutional investors, as well as on behalf of 80,000 High Net Worth Individuals (20% of AuM)
PROFESSIONAL
› The company employs more than 90 people5 OFFICES
› An international expansion with offices in Paris, Frankfurt, Madrid, Dubai and Shanghai
€6.9bn
› A cross-fertilization approach between strategies
› A long-term and consistent track recordacross market cycles
› Critical size thanks to significantAssetsunder Management
› Proven capacity to support the international expansion of European SMEs
› Strong partnerships with industrial corporates
38
Eurazeo Capital, Highlights in 2017
2017 highlightsEurazeo capital II closed
› Successfully raised €500mfrom investment partners
› To date, 92% invested in 8 investments
North American activities
› 2 deals, representing 24% NAV of EurazeoCapital non listed
› A rich U.S. pipeline: 25% of opportunities
› US team: 2 recruits in 2017, the EurazeoCapital team has now 6 professionals in NY
Significant build-upsFintrax / Planet Payment
› Extension of geographical footprint(in Asia, Middle East, North America)
› Strengthen payment activityNovacap / PCAS
› Strengthen Contract Manufacturing Organisation business
› Strong portfolio of blue chip clients and molecules for pharmaceuticals and specialty chemicals markets
Elis / Lavebras, Indusal & Berendsen
› Strengthen position in the Latin American, Spanish market and Northern Europe
› Top market position, strong synergiesEuropcar / Goldcar
› Become a major player in the low cost segment
FY2017
Opportunities
513High
priorities
54
Offers submitted
15
Deals
4
› Iberchem› CPK› Trader Interactive› WorldStrides
Build-ups
17
Investments &re-investments
€1,521m*-------------
€1,411m Eurazeo’s share
Divestments& Dividends
€750m*-------------
€591m Eurazeo’s share
CoC
2.7x-------------
MonclerElis
Europcar
* Assets under management
39
Eurazeo Capital, portfolio companies (1/2)% of
Control% of
InterestRanking 2017 sales (€m)
79.7% 59.8% Leading European board games and trading cards publisher & distributors Fast growing market 442
91.1% 68.3% New group dedicated to 10+ iconic European chocolate and confectionery brands from Mondelez International - 248
10.0% 7.4% High-growth clothing and accessories designer & distributor Fast growing market 761
10.2% 5.7% Rental and cleaning of textiles and hygiene services #1 in Europe 2,215
34.9% 30.6% Short-term car rentals with a fleet of ca.200,000 vehicles #1 in Europe 2,412
92.1% 69.1% Leading player in Tax Free Shopping & Dynamic Currency Conversion #2 in the world 268
CPK
40
Eurazeo Capital, portfolio companies (2/2)% of
Control% of Interest Ranking 2017 sales (€m)
71.7% 71.7%% Spanish-based manufacturer of fragrance and flavouringredients with diversified end markets - 126
40.8% 30.5% Pioneer in employer-sponsored nurseries #2 in French nursery market 192
n.a. 7.8% Leading brand in luxury outerwear Fast growing luxury brand 1,194
17.3% 13.0% Leader in the animal nutrition and health sector Fast growing market 1,683
62.0% 46.7% Leading global pharmaceutical and essential chemicals company
Leading positions in its target growing end-markets 896
100% 74.9% Global leaders in the hospitality and services management education sector #2 & #3 in the world CHF155(1)
50.0% 50.0%Leading online classified marketplace and marketing software solutions provider for commercial and recreational dealers
- $90
100% c.80% Largest educational student travel company and study abroad organization un the U.S. - -
(1) Sommet Education: adjusted sales
41
Eurazeo PME, Highlights in 2017
2017 highlightsEurazeo PME III closed:
› Successfully raised €250m from investment partners
2 acquisitions: Smile and IN’TECH Medical Colisée, a successful transformation in 3 years:
› Strong performance, with a 2.5x CoCand 35% IRR
› International reach in Italy and China
› Almost doubled the number of facilities
› Diversification in Homecare with 2 acquisitions, becomesleader in France
An expanded team: 3 recruitments
Significant build-ups11 Build-ups realized in 2017
K direct / Envie de fraise:
› A disruptive business model whichwill accelerate the digital transformation and a multi-channel distribution strategy
Flash Europe:
› 2 significant build-ups in Germany
FY2017
Opportunities
128High
priorities
18
Offers submitted
6
Deals
2› Smile› In’Tech Medical
Build-ups
11
Investments &re-investments
€121m*-------------
€77m Eurazeo’s share
Divestments
€268m*-------------
€152m Eurazeo’s share
CoC IRR
2.5x 35%-------------
Colisée
* Assets under management
42
Eurazeo PME, portfolio companies
% of Control % of Interest 2017 sales (€m)
47.5% 33.2% French leader in insurance brokerage specialized in building protection 27
76.5% 64.8% Global network of c. 1,900 franchised hair care and beauty salons 99
43.1% 30.2% European leader in premium freight, specialized in urgent and critical shipment for automotive, industrial sectors and lab testing 246
68.0% 42.2% Manufacturer of orthopedic surgical tools to be used in the highly demanding spinal surgery sector 61
60.5% 51.2% Belgian Brasserie theme-based restaurant chain 120
55.0% 38.5% Complementary brands specializing in home linen 202
51.9% 36.3% World leader in critical GPS applications 101
86.8% 60.8% Leading player in the design, manufacture and distribution of sutures and other single-use sterilized surgical devices 64
66.2% 41.1% Leading integrator and outsourcer of open source solutions 83
77.1% 54.0% European leader in signaling and lighting for industrial and commercial vehicles 107
MK Direct
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Eurazeo Patrimoine, Highlights in 2017
2017 highlights
Disposal of ANF Immobilier, ANF Immobilier HOTELS
and of Colyzeo’s Stake in Accorhotels
Restructuring and relaunch of Reden Solar
› Significant organic growth over 2017 (+15% revenue) with 36MW built
Completion of Grape Hospitalityfirst of 3 phases capex plan (€35m – 21 hotels for the first phase)
› Achieve +3% top line growth and +16% EBITDA growth
Secured pipeline
Signed acquisition of C2s, the 8th largest private clinicoperator in france with 11 clinics
› Revenue: c.€160m
› Equity investment: c.€100m alongside management and medical practitioners
› Closing expected mid March 2018
Under exclusivity for the forward purchase of an office building to be developed in the western crescent of Paris, close to la Defense
Signed Reden Solar’s build-up:
20mw portuguese portfolio, additional equity investment€12M (Eurazeo share)
FY2017
Opportunities
88High
priorities
15
Offers submitted
9
Deals
2
› REDEN Solar (closed)› C2S Group
(closing expected midMarch 2018)
Build-ups
2
Investments &re-investments
€79m*Divestments& Dividends
€2689m*-------------
€280m Eurazeo’s share
ANF ImmobilierCoC IRR
2.3x 13%
* Assets under management
44
Eurazeo Patrimoine, portfolio companies
% ofControl % of Interest Ranking
100% 77.6% Leading ready-to-wear wholesale center in Europe Located in Paris inner rim
46.8% 46.6% Major player in renewable energies -
70.2% 54.6% A platform dedicated to the hotel business Portfolio of 85 Accorhotels hotels in Europe
n.a. n.a. The eighth largest private clinic operator in FranceRegional leader in Auvergne Rhône-Alpes and Burgundy Franche-Comté
45
Eurazeo Croissance, Highlights in 2017
2017 highlightsFarfetch:
› Strong growth driven by new partnershipswith luxury brands and boutiques
› $397m investment from JD.com alongside strategicpartnership on marketing, logistics and technology
Doctolib:
› €61m raised in 2017 via 2 rounds
› European leader in doctors' appointments
› 15 million French and German patients use Doctolib every month
Post-closing event:
› Investment in ContentSquare
ReinvestmentsYounited Credit
› Participated in the €40m fundraisingled by Bpifrance in September
Vestiaire Collective
› Participated in the €58m fundraisingled by Vitruvian announced in January
FY2017
Opportunities
141High
priorities
18
Offers submitted
3
Deals
2› Doctolib(closed in 2017)› ContentSquare (Closed in
January 2018)
Investments &re-investments
€30m
Divestments
€77m
FonrocheCoC
1.3x
46
Eurazeo Croissance, portfolio companies
Online market place for luxury goods and beauty products
A pioneer in electric vehicle fast chargers
Hi-tech company specialized in high power electronics solutions
The leading provider of cloud-based human resources service delivery solutions
Leading marketplace of pre-owned fashion and luxury products
Leading peer-to-peer lending platform in Continental Europe
Leading medical online booking platform in Europe
47
Eurazeo Brands, Highlights in 2017
2017 highlights
TEAM:
› Launched the U.S. team with CEO Jill Granoff and Managing Director, Adrianne Shapira
› Added 2 new investment professionalsin New York
› Interviewed candidates for Europe
SOURCING:
› Screened 137 opportunities by networking with entrepreneurs, brands, VC firms, Private Equity firms, and investment banks
› Developed awareness of Eurazeo Brands across the consumer and retail landscape
2017 highlights
DILIGENCE:
› Evaluated 11 high-priority opportunities, submitted 5 non-binding offers
EXECUTION:
› Completed a majority investmentin NEST Fragrances, for $70M, in partnership with founder, Laura Slatkin
› NEST is a premium home fragrance and fine fragrance brand sold in leading North American department stores and specialty stores, as well as direct to consumer online
FY2017
Opportunities
137High
priorities
11
Offers submitted
5
Deals
1› NEST Fragrances
Investments
$70m*
(*) Converted to €60m
48
Eurazeo Development, portfolio companies
Independent investment company specialized in ‘capital and private debt’ financing to French SMEs and SMIs for development projects and transmission transactions.
Europe’s first investment and development platform dedicated to the asset management industry
Raise invests with minority capital on the long run in mid-cap companies with strong growth strategies
OTHER
18.3% A private and independent investment bank founded in Milan.
49
Eurazeo, a long-term shareholder base and a strong corporate governance
Shareholding structureAs of May 31, 2018
A strong corporate governanceAs of May 31, 2018
› Separation of the roles of Chairman and CEO
› Independence of the Supervisory Board: 7 independent members out of 13(2)
› Audit Committee, Finance Committee, Compensation and Appointments Committee, CSR Committee
› Existence of a shareholder agreement between foundingfamilies (“M. DAVID-WEILL CONCERT ”, former SCHP)
JCDecaux Holding16.1%
Richardson Family3.1% Free float(1)
64.6%
M. David-Weill Concert(family shareholders)
16.2%
(1) Including 8.3% held by Tikehau Capital SCA and Salvepar SAS, and 3.5% of treasury shares(2) Excluding the member of the Supervisory Board representing employees. 7 independent
members out of 13, following the 2018 shareholders’ meeting.
50
Eurazeo’s Supervisory Board: strong corporate governance
31 6 7
141110
Non-voting member
Honorary Chairman
9
13
85
17
2 4
Non-voting member
15 1612
1. Michel David-Weill (3)Chairman of the Supervisory Board, Chairman of the Finance CommitteeCurrent term of office expires: 2018
2. Jean-Charles Decaux (3)Vice-Chairman of the Supervisory BoardJoint CEO of JCDecaux HoldingCurrent term of office expires: 2020
3. Olivier Merveilleux du Vignaux (2) (3)Manager of MVM Search BelgiumCurrent term of office expires: 2018
4. Anne Dias* (1) (2)Chairwoman ad Founder of Aragon Global HoldingsCurrent term of office expires: 2021
5. Roland du Luart (2) (4)Chairman of the Compensationand Appointment CommitteeCompany DirectorCurrent term of office expires: 2020
6. Anne Lalou* (3) (4)Chairwoman of the CSR CommitteeDirector of La Web School FactoryCurrent term of office expires: 2018
7. Victoire de Margerie* (3)Principal shareholder and Chairwoman of Rondol IndustrieCurrent term of office expires: 2020
8. Françoise Mercadal-Delasalles* (2) (3)Deputy Managing Director of Crédit du NordCurrent term of office expires: 2019
9. Amélie Oudéa-Castera* Chairwoman and Co-founder of the Rénovons le Sport Français associationCurrent term of office expires: 2022
10. Stéphane Pallez* (1) (4) Chairwoman and Chief Executive Officerof La Française des Jeux (FDJ)Current term of office expires: 2021
11. Georges Pauget* (1) (2)Managing Partner of Almitage.LdaCurrent term of office expires: 2020
12. JCDecaux Holding represented by Emmanuel Russel (1) (2) (4)Deputy Managing Director of JCDecauxHolding SASCurrent term of office expires: 2018
13. Patrick SayerPrevious CEO of EurazeoCompanies Director InvestorCurrent term of office expires: 2022
14. Christophe Aubut (2) Employee representativeCurrent term of office expires: 2019
15. Bruno Roger (3)Honorary ChairmanChairman of Global Investment Banking of Lazard Group
16. Jean-Pierre Richardson (1)Non-voting member Chairman and Chief Executive Officer of Joliette Matériel SACurrent term of office expires: 2018
17. Robert AgostinelliNon-voting memberCo-founder & Managing Director of Rhône GroupCurrent term of office expires: 2022
*Independent member(1) Member of the Audit Committee(2) Member and permanent guest of the Compensation and Appointment Committee(3) Member and permanent guest of the Finance Committee(4) Member of the CSR Committee
51
Financial Agenda
July 25,2018
1st Half 2018 Results
November 8,2018
3rd Quarter 2018 Revenues
July 26,2018
Web conferencefor shareholders
52
About usEURAZEO CONTACTSINVESTOR RELATIONS
› Caroline [email protected]+ 33 (0)1 44 15 16 76
› Haojing [email protected]+ 33 (0)1 44 15 89 36
EURAZEO SHARES
› ISIN code: FR0000121121
› Bloomberg/Reuters: RF FP, Eura.pa
› Indices: SBF120, DJ EURO STOXX, DJ STOXX EUROPE 600, MSCI, NEXT 150, LPX Europe, CAC MID&SMALL, CAC FINANCIALS
› Share capital as of May 15,2018: 78,030,886
› Statutory threshold declarations 1%
RESEARCH ON EURAZEO
› CM-CIC Alexandre Gérard
› Exane BNP Paribas Mourad Lahmidi
› Goldman Sachs Matija Gergolet
Philip Richards
› HSBC Pierre Bosset
› Jefferies Matthew Hose
› JP Morgan Cazenove Christopher Brown
› Kepler Cheuvreux David Cerdan
› Oddo Christophe Chaput
› SG Patrick Jousseaume
www.eurazeo.com