1 st HALF 2013 RESULTS 1 August 28, 2013 1 st HALF 2013 RESULTS Good results, as Eurazeo’s efforts bear fruit
May 08, 2015
1st HALF 2013 RESULTS
August 28, 2013
1st HALF 2013 RESULTS
Good results,as Eurazeo’s efforts bear fruit
2
Contents
1st HALF 2013 RESULTS
03 H1 2013 highlightsGood results, as Eurazeo’s efforts bear fruit
08
15
21
29
Value creation
H1 2013 ResultsVery good results
Accelerating transformation
Appendices
3
H1 2013 HIGHLIGHTS
Good results, as Eurazeo’s efforts bear fruit
1st HALF 2013 RESULTS
4
Consolidated net income group share
Strong disposals driving performance
1st HALF 2013 RESULTS
Net proceedsfrom disposals
€853m*
(*) Of which €413m for Rexel (€225m in February, €85m in June and €103m in August 2013)(**) Between June 30, 2012 and June 30, 2013 proforma from the acquisition of Péters Surgical by Eurazeo PME and the sales of the Flexitallic Group and
Rexel(***)Between Dec. 31, 2012 and August 20, 2013
Net cash
€794m€329m
Average multiple on disposals
2.1x
NAV/share
€59.0+9%***
Decrease in conso-lidated net debt**
~-2.1bn
5
Accelerating our asset rotation
1st HALF 2013 RESULTS
2008 2009 2010 2011 2012 YTD
6.0%4.0%
2.0%
13.0%
23.0%
DISPOSALSin % of NAV as of Jan. 1
2012 YTD 2013
+€853m23% of NAV
+€436m13% of NAV
(*) Rexel = 3 disposals (February, June & August 2013)
*
8 DISPOSALS IN 2012 & 2013In €m
▲ 23% of the NAV sold since January 2013
6
12
14
16
18
20
22
24
26
30/12/11 29/2/12 30/4/12 30/6/12 31/8/12 31/10/12 31/12/12 28/2/13 30/4/13 30/6/13
Accurate market timing
1st HALF 2013 RESULTS
February 14, 2013Second partial sale
June 4, 2013Third partial sale
Aug 7, 2013Fourth partial sale
March 5, 2013Sale of the entire stake
Share price in €
March 01, 2012
First partial sale
12/30/11 02/29/12 04/30/12 06/30/12 08/31/12 10/31/12 12/31/12 02/28/13 04/30/13 06/30/13
7
Strengthening of the financial structure bothat Eurazeo level and within portfolio companies
1st HALF 2013 RESULTS
Net cashx3 since December 31, 2012
Consolidated net debt 2.1bn* decrease €3,197m
Successful refinancing of Elis Debt maturitiesextended to 2017-18
No debt at company level
Debt
(*) Between June 30, 2012 and June 30, 2013 excluding Europcar fleet debt. Proforma of the sale of Flexitallic Group and the block of Rexel shares sold in August 2013 and the acquisition of Péters Surgical by Eurazeo PME
8
VALUE CREATION
1st HALF 2013 RESULTS
9
A 3-step strategy towards value creation
1st HALF 2013 RESULTS
Value creation
Detect qualitycompanies and
identifystrategic sectors
Realize capital gainswhen transformationobjective achieved
Activate alltransformation levers
Eurazeo: well structured and positioned to create value from growth megatrends
MONETIZATIONDETECTION ACCELERATION
10
Example: The Flexitallic Group
1st HALF 2013 RESULTS
DETECTION MONETIZATIONACCELERATION
7 years holding
Revenue €18m11% international
EBITDA €6m
EV €37m
Headcount 46
Revenue €210m90% international
EBITDA €49m
EV€450
m
Headcount 1,250
Limited auction Sale to Bridgepoint
2006 2013Radical transformation of
a French distributor into a global manufacturing leader through:
• Strong corporate governance
• 5 international acquisitions
• Penetration of new markets
• Heavy investment in innovation and manufacturing
2.9x cash multiple*
performance:
€145m net proceeds28% IRR*
(*) 2.4x cash multiple and 70% IRR at Eurazeo level, based on the acquisition of OFIPEC in April 2011
11
Value creation: solid NAV growth
▲ June 30, 2013 NAV/share: +7% versus Dec. 31, 2012
▲ Non-listed companies valuation: +9% versus Dec. 31, 2012
1st HALF 2013 RESULTS
NAVIn € per share
June 30, 2012 Dec. 31, 2012 June 30, 2013 August 20, 2013
49.2
54.1*
58.0*59.0*
(*) NAV with ANF Immobilier at its NAV: €54.8 as of December 31, 2012, €58.8 as of June 30, 2013, €59.8 as of August 20, 2013
(**) Restated for bonus share allocation
+20%
**
12
NAV change by division
1st HALF 2013 RESULTS
3,751
3,972
+6
+284 -594
+21+33 -3 +20 -9 +1 -10
+472
NAV 12/31/1
2
NAV 06/30/1
3
Investments Change infair value
Disposals
Cash&
other
Rexel, Edenred
Idéal Résidences
BFR Groupe
IES and add-on
In €m
13
Conservative valuation of non-listed assets
1st HALF 2013 RESULTS
121
15
115
184
22
145
▲ Net proceeds of disposals exceeded the latest valuation in our NAV
B&B HotelsSept 10
Mors SmittJune 2012
The Flexitallic GroupJuly 2013
NAVin €m
Last NAV Net proceeds from disposals
+52%
+47%
+26%
14
A strong track record over the long-term: weighted average cash on cash multiple of 2.1x
1st HALF 2013 RESULTS
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0xFraikin
Eutelsat
Terreal
Station Casinos
Sirti
B&BRexel
Rexel (February)Edenred
2005 2007 2010 2012 H1 2013
Mors Smitt*
0.0
3.53.4
0.2
Y E A R O F D I S P O S A L
Weighted averagemultiple of 2.1x
2.1
2.4
3.5
ANF Immobilie
r2.9
2.12.3
Aug 2013
Multiple
<€50m
€50–100m
€100–150m
>€150m
Investment size:
x
Rexel (June)
Flexitallic
Group*
Rexel (Aug)
(*) At Eurazeo PME level
2.0
2.4
2.02.0
15
H1 2013 RESULTS
Very good results
1st HALF 2013 RESULTS
16
Increase in revenue in Q2
1st HALF 2013 RESULTS
2,093 2,083
1,286 1,285
H1 2012(1) H1 2013
-0.1%
-0.5%
Equity accounted companies
Fully consolidatedcompanies
3,379 3,368
-0.3%
ECONOMIC REVENUEIn €m
(1) Restated
▲ Improvement in Q2
Q1: -0.9%Q2: +1.2% excl. impact of Danone dividends
17
Profit & loss details
1st HALF 2013 RESULTS
(in €m) H1 2012H1 2012
PF(2) H1 2013
Contribution of companies’ net of finance cost
40.8 4.6 4.0
Fair value gains (losses) on investment properties
(3.6) (4.8) 3.4
Capital gains 9.6 9.6 580.5
Taxes and other(1) (50.2) (49.4) (60.1)
Non-recurring items (144.2) (138.0) (165)
Net consolidated income (147.4) (177.9) 362.3
Net consolidated income group share (126.6) (146.7) 328.8
(1) Net finance costs of the holding company business(2) Proforma: impact of disposals of a part of ANF Immobilier, Mors Smitt, Edenred, Rexel and deconsolidation of Fraikin
18
Stable contribution of portfolio companies
1st HALF 2013 RESULTS
H1 2012H1 2012
PF(1) H1 2013 Change
Adjusted EBIT of Group consolidated companies
239.1 214.8 215.5 +0.3%
Net finance costs of Group consolidated companies
(240.9) (238.7) (228.0) (4.5%)
Share of net income of associates after net finance costs
42.6 28.6 16.5 -42%
Contribution of companies net of finance costs
40.8 4.6 4.0
CONTRIBUTION OF COMPANIES NET OF FINANCE COSTS (at 100%)
(1) Proforma: impact of disposals of a part of ANF Immobilier, Mors Smitt, Edenred, Rexel and deconsolidation of Fraikin
+ 8% excl. Elis laundry impact
▲ Heavy seasonality of large Eurazeo companies (Moncler, Europcar)
In €m
19
Capital gains and non-recurring items
1st HALF 2013 RESULTS
4.0
329
0.9
112 -23
381 -19-53
-74
Contributionof companies’ net of finance
costs*
Capitalgains
Danone EBearly
redemption
Deconso. andimpairmentof Fraikin
H1 2013net income*
Other recurring
itemsImpairments
(APCOA+Colyzeo+Banca
Leonardo) Other non-recurring
items
Recurring income €475m(*) Group share
MAIN ITEMS OF H1 2013 NET INCOME GROUP SHAREIn €m
Impact of group share on contribution net
cost of debt
20
A solid financial structure
1st HALF 2013 RESULTS
CONSOLIDATED NET DEBTIn €m
NET CASH AND CASH EQUIVALENTSIn €m
H1 2012 PF H1 2013
5,277
3,197
1,508
1,446
Consolidated net debt (excl. Europcar fleet debt)
Europcar fleet debt(w/o leasing)
(*) Proforma of the acquisition of Péters Surgical by Eurazeo PMEand the sale of the Flexitallic Group and Rexel
*
▲ A fully available revolving credit line of €1bn▲ No debt at company level
-39%
138292
794
Dec. 31,2011
Dec. 31,2012
Aug. 20,2013
21
ACCELERATING TRANSFORMATION
1st HALF 2013 RESULTS
22
Transformations under way & next ambitions (1/2)
1st HALF 2013 RESULTS
To date: • Efficient roll-out of Fast Lane transformational Program driving profitability
Next ambitions: • New mobility services, further internal efficiency projects
To date:
• Management team reinforcement • Kick-off commercial strategy on core business • New strategy for brokerage business • Focus on strategic areas • Relaunch of M&A strategy
Next ambitions:
• Harmonize performance across the network • Accelerate organic growth in core business • Drive sector innovation • Increase accretive acquisitions in strategic areas
To date: • Active portfolio management• Enhanced group structure and operating model concepts
Next ambitions:• Roll out optimal operational model and local successful products• Enhanced new business• Refinancing
To date:
• Disposal of non core assets and focus on hospitality• Asset light strategy• Investment in distribution and digitalization• Organization by brand in Europe and appointment of the new Head of Property
Department
Next ambitions:• Distribution and digitalization• Opportunistic M&A
23
Transformations under way & next ambitions (2/2)
1st HALF 2013 RESULTS
To date:• Globalization, development of the distribution network and expansion
of the product range
Next ambitions:• Further geographical rebalancing (North America, etc.)
• Further diversification towards accessories
To date:
• 50MW photovoltaic plants operational in France• First plant in India (22MW)• 200MW license obtained in Porto Rico• Development of biogas projects and license obtained in geothermia
Next ambitions:
• 200MW under development in Porto Rico• Opening of new countries in photovoltaic• First biogas facilities
To date: • Strong increase in rents and profitability
Next ambitions: • Increase new investments to rebalance the portfolio
To date:
• Launch of new pest control activity • Successful refinancing • Proven M&A and integration know-how • Continuous performance improvements
Next ambitions:
• Finalize New ERP roll-out • Accelerate international expansion • Accelerate products and services innovation • Increase penetration in strategic segments
24
Acquisitions in our strategic sectors
1st HALF 2013 RESULTS
Identifying and selecting key sectors
2
Strategicmonitoring of social trends
1
Targeting and pro-actively approaching investment opportunities (proprietary deals)
3
Increasing purchasingpower in the emergingmarkets
Evolution of purchasingpatterns
Longevity
Health awareness
Environmental concern, natural resources scarcity, etc.
Luxury & global brands
Technology & digital
Financial services
Healthcare:
Environment & energy-driven businesses:
• IES: pioneer in electric vehicle chargers
• Idéal Résidences: group of medical, social and health care facilities
• Péters Surgical: the world's 4th-largest surgical suture specialist
• Groupe Cap Vert Finance: European leader in electronics recycling
4 acquisitions in H1 2013,
amounting to ~€100m
25
CONCLUSION
1st HALF 2013 RESULTS
26
Conclusion
▲ Accelerating new investments
▲ Pursuing value creation within portfolio companies
▲ Aiming at a lower discount rate
1st HALF 2013 RESULTS
27
Active share buyback
1st HALF 2013 RESULTS
865,700 sharesbought in 2013
902,747 sharescancelled at July 19, 2013
A C T I V E S H A R E B U Y B A C K P R O G R A M
€36m | €41/share i.e. 1.3% of total shares
28
As of August 20, 2013In €m
High discount on non-listed assets
1st HALF 2013 RESULTS
NAV Market Cap.56 56
882 882
992 992
2,0171,370
4,036
3,299
▲ 19% discount on our NAV as of August 20, 2013 implies a 35% discount on non-listed assets
Implicit value of non-listed assets
Other
Non listed assets
Listed assets
Cash & treasury shares
35% discount on non-listed
assets
29
APPENDICES
Including Group company detailed information
1st HALF 2013 RESULTS
30
Contents
1st HALF 2013 RESULTS
31 Financial appendices
36 Group company detailed information
75 Other
31
43%
21%
4%
7%
7%
17%
NAVin €m
Breakdown of NAV as of June 30, 2013
1st HALF 2013 RESULTS
EURAZEO CAPITAL (LISTED)
CASH & OTHER
EURAZEO PATRIMOINE
EURAZEO PME
EURAZEO CROISSANCE
EURAZEO CAPITALCAPITAL (NON LISTED)
32
Net Asset Value as of June 30, 2013
1st HALF 2013 RESULTS
(1) Net of allocated debt
(2) Accor shares held indirectly through Colyzeo funds are included on the line for these funds
Interest Nb shares Price NAV as of June. 30, 2013
with ANF at its NAV
€ €M ANF @ €30.7
Eurazeo Capital Listed 824,6
Rexel 11.08% 31,368,739 17.32 543,2
Accor 8.83% 20,101,821 26.60 534,8
Accor net debt -250,2
Accor net (1) (2) 20,101,821 281,3
Eurazeo Capital Non Listed 1,725,0
Eurazeo Croissance 172,0
Eurazeo PME 278,8
Eurazeo Patrimoine 282,2 353.4
ANF Immobilier 48.93% 8,675,095 22.49 195.1 266.3
Colyzeo and Colyzeo 2 (2) 87.0
Other assets 20.9
Cash 637.2
Tax on unrealized capital gains -51,5 -65.5
Treasury shares 3.39% 2,346,578 82,7
Total value of assets after tax 3,971.9 4,029.1
NAV per share 58.0 58.8
Number of shares 68,502,238 68,502,238
33
Net Asset Value as of August 20, 2013
1st HALF 2013 RESULTS
Interest Nb shares Price NAV as of August 20, 2013
with ANF at its NAV
€ €M ANF @ €30.7
Eurazeo Capital Listed 797.8
Rexel 9.07% 25,668,739 18.22 467.7
Accor 8.83% 20,101,821 28.98 582.6
Accor net debt -252.6
Accor net(1) (2) 20,101,821 330.1
Eurazeo Capital Non Listed 1,725.0
Eurazeo Croissance 172.0
Eurazeo PME 209.9
Eurazeo Patrimoine 281.0 353.4
ANF Immobilier 48.93% 8,675,095 22.36 194.0 266.3
Colyzeo and Colyzeo 2 (2) 87.0
Other assets 21.1
Cash 793.6
Non-affected debt
Tax on unrealized capital gains -51.8 -66.0
Treasury shares 3.43% 2,346,578 87.9
Total value of assets after tax 4,036.4 4,094.6
NAV per share 59.0 59.8
Number of shares 68,419,738 68,419,738
(1) Net of allocated debt
(2) Accor shares held indirectly through Colyzeo funds are included on the line for these funds
34
Strengthened cash position
1st HALF 2013 RESULTS
CASH POSITIONIn €m
292
637794
-7636-32 -48
-142
248-15
Netdisposals
12/31/2012 06/30/2013 08/20/2013
Dividends received Dividends
paid
605
Sharesrepurchased
Investments*
Debt reimbursement
and other
Disposals
Other
(*) Mostly investments in Idéal Résidences and IES(**) Including investment in Cap Vert Finances (€36m), Péters Surgical (€30m) and reinvestment in Flexitallic (€10m)
Investments**
-76
35
Eurazeo share price performance
1st HALF 2013 RESULTS
20
25
30
35
40
45
50Eurazeo
LPX
CAC 40
▲ YTD 2013 TSR: +45% vs. 17% for the CAC40
▲ TSR: +126% vs. +54% for the CAC40 between July 2002 and August 16, 2013
12/30/11 02/29/12 04/30/12 06/30/12 08/31/12 10/31/12 12/31/12 02/28/13 04/30/13 06/30/13 08/16/13
36
DETAILED INFORMATION ON EURAZEO CAPITAL
1st HALF 2013 RESULTS
37
8.9%ECONOMIC INTEREST
EQUITY METHOD
▲ Solid revenues growth in first-half 2013, supported by a favorable calendar of events in the second quarter
• Up 1.8% increase like-for-like, including 3.3% in the second quarter
▲ Robust growth from management and franchise fees
• Up15.9% in first-half revenue, confirming Group transformation
▲ Development in line with the transformation plan of the company: 9,940 rooms opened, of which 80% asset light
▲ Transforming actions in H1 to sustain future performance of the Group:
• Investments in distribution (€120m over 4 years starting from H1 2013)
• Savings plan (€100m in 2013–2014) with effects in H2 2013
• Reorganization by brand in Europe and appointment of the new Head of Property Department management
1st HALF 2013 RESULTS
38
1st Half 2013 highlights
1st HALF 2013 RESULTS
In €m H1 2013 H1 2012Reportedchange
Comparablechange
Revenue 2,694 2,717 -0.9% +1.8%
EBITDAR
% margin
817
30.3%
835
30.7%
-2.2%
-0.4%
EBIT
% margin
198
7.4%
212
7.8%-6.6% -6.4%
Net debt 581 804 -27.7% -
39
1st Half 2013 highlights
1st HALF 2013 RESULTS
(€m) H1 2013 H1 2012 Var. Var. L-f-L(1)
Hotels 2,628 2,662 -1.3% +1.7%
Upscale & Midscale
Economy
1,680
948
1,710
952
-1.7%
-0.5%
+2.3%
+0.5%
Other businesses 66 55 +19.6%(2) +6.1%
Total 2,694 2,717 -0.9% +1.8%
(1) At comparable scope of consolidation and exchange rates(2) Strata acquisition (Mirvac)
▲ Highlights: – First-half 2013 performance driven by a very dynamic second quarter
▲ Financial situation:
– Revenue in the Upscale and Midscale segment rose by 3.7% like-for-like in Q2 (+2.3% in H1),led by emerging markets, with double-digit growth in Latin America (up 13.9% in Q2)and Africa-Middle East (up 15.3% in Q2)
– Revenue from Economy hotels increased by 2.4% like-for-like in Q2 (+0.5% in H1), driven by Germany and the UK, benefited from a few signs of improvement in Italy and Portugal. France’s performance improved, compared with the early part of the year
– Asset management on track: €248m Adjusted Net Debt Impact to date from binding agreements
▲ Mid-term targets and outlook:
– First-half 2013 trends confirmed in July and expected to continue in H2, especially in Up & Midscale segment
– The €100m savings plan between 2013 and 2014 has been launched in H1 and will generate effects starting from H2
– 2013 EBIT guidance: €510–530m vs. €526m in 2012
40
82.2%ECONOMIC INTEREST
FULLY CONSOLIDATED
▲ Stable sales+1.6% excluding impact of renegotiation from 2 airports from lease to management contracts
▲ Slight decrease in EBITDADifficult weather conditions early 2013 and slightly disappointing performance of Park and Guard in Scandinavia
▲ Stabilized net debtUnfavorable swap rates ended end of H1 2012
In €m H1 2013 H1 2012Reportedchange
Comparablechange
Revenue 334.0 340.1 -1.8% -1.6%
EBITDA
% margin
25.5
7.6%
26.8
7.9%
-4.8%
-4.6%
Net debt 641.6 659.3 -2.7% -1.2%
1st HALF 2013 RESULTS
1st Half 2013 highlights
41
▲ Highlights:
• Germany: reorganization & implementation of optimal operational model
▲ Financial situation:
• Next debt maturity in April 2014: currently being addressed
▲ Mid-term targets:
• Continuous active portfolio management
• Roll-out of international best-practices
• Focus on new business acquisition
1st HALF 2013 RESULTS
42 1st HALF 2013 RESULTS
(1) FY impact in 2012 and 2013: €40m and €12m respectively
82.6%ECONOMIC INTEREST
FULLY CONSOLIDATED
▲ Steady topline performance• French activities posting a 1.9% organic growth• International activities suffering from current turmoil, particularly in southern Europe
▲ Improving margins• +1.5pt increase thanks to tight cost control, accretive acquisitions
and CICE impact (+€4m in H1 2013)• Temporary impact on EBIT due to change in linen amortization(1)
▲ Successful refinancing• Amend & Extend of senior facility to October 2017• Issuance of a €450m High-yield bond as well as a €553m private mezzanine tranche
In €m H1 2013 H1 2012Reportedchange
Comparablechange
Revenue 600.0 580.7 +3.3% +1.0%
EBITDA
% margin
190.3
31.7%
175.9
30.3%
+8.2%
EBIT
% margin
100.5
16.8%
105.8
18.2% -4.9%
Net debt 2,003 1,969 +1.7%
43 1st HALF 2013 RESULTS
1st Half 2013 highlights
▲ Highlights:
• Successful refinancing of Elis in June, leveraging on the attractive profile of the company and the appetite of the market
• Continued M&A strategy with several acquisitions in Europe, o/w Inotex in January, and the disposal of non-core subsidiary Molinel in May
▲ Financial situation:
• Continuous growth supported by strong positions in France and increasingly in other European countries (e.g. Switzerland)
▲ Mid-term targets:
• Sustained attention on cash generation and deleveraging initiatives
• Clear focus on international expansion both through further acquisitions and organic growth
44 1st HALF 2013 RESULTS
▲ Amend & Extend of Senior Facility: pushing first maturity from 2014 to 2017
• 3 year extension of senior tranches with next maturity in October 2017
• Uplift in margin to 425bp
▲ Issuance of new debt tranches
• €450m issuance of senior bond (B+) at 6%, due 2018
• Private placement of €553m of mezzanine debt, split between cash (380) and PIK (173) instruments at an average margin of 8% over euribor, due 2018
▲ Swap renegotiation
• Sharp reduction of average swap rate at 1,4%, hedging around 80% of current Senior facilities
▲ Controlled financial cash costs
• Estimated normative cash cost around €115m, in line with average historical figures(1)
• 5 times PF LTM EBITDA of cash-pay debt as of June
▲ Increasing room to focus on Elis’ development
BEFORE (12/31/2012) AFTER (06/30/2013)
Senior facilities1,25
8Senior facilities 895
General facility 86 General facility 110
Other debts 18 Other debts 21
Senior Sec. Bonds 450
Senior debt1,36
2Senior debt
1,476
Junior Mezz. 350 Senior Sub. Bonds 380
Senior Mezz. 270 Senior PIK Notes 173
Accrued interests 20 Accrued interests 15
Cash (54) Cash (41)
Net financial debt
1,948
Net financial debt
2,003
1st Half 2013 highlights
(1) Based on current Euribor forecasts
In €m
R E F I N A N C I N G
1st HALF 2013 RESULTS45
87.4%ECONOMIC INTEREST
FULLY CONSOLIDATED
In €m H1 2013H1 2012 reported
Reportedchange
Comparablechange
Revenue 864 888 -2.7% -1.9%
Adj. Corp. EBITDA
% margin
18.2
2.1%
7.8
0.9%
+133.3% +137.7%
Adj. EBIT
% margin
68.0
7.9%
58.4
6.6%+16.4% +17.4%
Corp. Net debt 567 567 +0.1% n/a
▲ Resilience of Europcar’s volumes and better quality of business in still tough but slightly recovering leisure market resulting in slight decrease in revenues by -1.9%*
▲ Improved EBIT and Corporate EBITDA thanks to successful execution of new revenue capacity management and continuous deployment of FastLane program measures more than offsetting decrease in revenues
▲ Continuous focus on Cash management
(*) at constant exchange rates and perimeter
46
1st Half 2013 highlights
1st HALF 2013 RESULTS
▲ Resilient volumes in tough market environment
– Revenues down by -1.9% vs. H1 2012 at constant exchange rate and perimeter
• Limited decrease in volumes (rental days down by -0.3%) despite exit from non profitable business in Italy thanks to improved market conditions at Q2 2013 in the B2B segment, still resilient Leisure demand and a strong refocus on Commercial initiatives
• RPD down by -1.6% in a still tough competitive environment but already reflecting better trend thanks to Revenue and Capacity Management initiatives
– InterRent launch since April / May 2013 in France, UK and Germany
▲ FastLane costs reduction initiatives already resulting in significant margins improvement– Continuous improvement of the fleet utilization rate by +1.1pt (74.8% vs. 73.7% as of H1 2012)
– Average Fleet holding cost per unit down by –6.4% over the period
– Network and Headquarters optimization
– Decrease in other overhead costs (incl. insurance)
– Significant Corporate EBITDA margin improvement by +1.2pt vs. H1 2012
▲ Improved Cash-flow generation – Strong improvement of non fleet and fleet working capital
– Corporate Net Debt of €567m as of June 30, 2013, with Corporate leverage at 4.4x
47 1st HALF 2013 RESULTS
33.8%ECONOMIC INTEREST
EQUITY METHOD
▲ Resilience of the Residential Real Estate Services Business in tough Brokerage market environment
▲ Stable EBITDA despite continuous marketing investment linked to the “Foncia’s 40th Birthday” Commercial Action Plan thanks to tight cost management
▲ Re-launch of the acquisition strategy with 7 acquisitions closed since the beginning of the year
In €m H1 2013H1 2012 reported
Reportedchange
Comparablechange
Revenue 287.6 286.7 +0.3% -0.8%
EBITDA
% margin
44.2
15.4%
44.6
15.6%
-1.0% -2.3%
Net debt 339 359 -5.7% n.a.
48
72%
12%
7%9%
1st Half 2013 highlights
1st HALF 2013 RESULTS
▲ Slightly increase in revenues by +0,3%– Resilience of the RRES activities– Decrease in the Brokerage business but
better trend observed for the Q2 2013 benefitting from recent investments
▲ Stable EBITDA standing at €44.1m– Good resilience of the EBITDA margin
(15.4% vs. 15.6% in H1 2012) despite lower revenues and sales force investment in Brokerage business and lower interest rates on Client Accounts
▲ Strong deleveraging, in particular thanks to good management of the Working Capital– Net debt stands at €339m at June 2013
vs €359m last year despite €14m of acquisitions outflows as of H1 2013
– Net Debt / EBITDA at 3.8x vs. 4.3xas of H1 2012
▲ Re-launch of the acquisition strategy– 7 acquisitions closed since Jan-13 with
a full-year revenue contribution of €12.4m
In €m H1 2013AH1
2012A % var.
RRES France(1) 207.2 204.0 +1.6%
Brokerage 33.3 37.1 -10,2%
Total France 240.6 241.1 -0.2%
International 25.3 24.4 +3.7%
Other and Interco 21.7 21.3 +1.9%
Total 287.6 286.7 +0,3%
Real Estate Services France
Recurring revenue: 88%
Brokerage
Other and interco
International
H1 2013Arevenue
(1) RRES France: Residential Real Estate Services France including Joint-Property Management and Lease Management businesses
49
(1) Unaudited management reporting
33.6%ECONOMIC INTEREST
EQUITY METHOD
▲ Solid top line growth mainly driven by pencil business, with sound growth in the color business and lower growth in Skin Care
▲ EBITDA is down by 21.9% compared to H1 2012 mainly due to higher production costs and overheads, and €1.1m one-off costs in the US
▲ €15.4m deleverage compared to June last year, some improvements in working capital management
In €m (1) H1 2013 H1 2012Reportedchange
Net sales 153.1 138.2 +10.8%
EBITDA
% margin
14.9
9.7%
19.1
13.8%
-21.9%
Net debt 195.5 210.9 -7.3%
1st HALF 2013 RESULTS
50
1st Half 2013 highlights
▲ Highlights:
• Sales up 10.8% in the first semester 2013
• EBITDA margin down by 4.1 pt due to c. €1.1m one-off in the US (0.7% of sales) and higher operational cost: management is working to recover the profitability in the second semester of the year
▲ Financial situation:
• Net debt reduction by €15.4m compared to June last year and in line with last December (-0.2%)
• Working capital improvements especially in the payables and receivables management, with a strong focus on collection and tangible results in overdue reduction
▲ Mid-term targets:
• Order intake has been showing positive trend across all the regions since beginning of the year
• Focus on cash flows and margins to translate the topline growth into cash
1st HALF 2013 RESULTS
51
(1) Italian Fiduciary business (2) Unaudited management reporting(3) Distribution of 0.12 €/share dividend in H1 2013, corresponding to a total amount of €34m and a dividend of €6.1m for Eurazeo
19.3%ECONOMIC INTEREST
▲ Stable Group net revenues in a difficult financial environmentSales negatively impacted from lower Proprietary Trading revenues
▲ The macro-economic environment is mainly affecting the M&A advisory business, slow growth of sales (+3.7%) although the strengthening of the pan-European team
▲ Strong progression of Customer Financial AssestGrowth supported by both:(i) Net New Money (including +€0.2bn via COFIB(1) acquisition), and (ii) Market Performance
▲ €34m dividend distribution in 2013 €6.1m paid to Eurazeo
In €m (2) H1 2013 H1 2012Reportedchange
Total net revenue 67.4 68.2 -1.2%
Net profit
% margin
7.7
11.4%
7.6
11.2%
+0.7%
Total customer financial assets
6,212 5,355 +16.0%
Total equity(3) 342 338 +0.9%
1st HALF 2013 RESULTS
52
1st Half 2013 highlights
▲ 6 months net revenues at €67.4m, almost stable compared to last last year same period (€68.2m)
• Advisory fees up 3.7% to €27.4m, leveraging on pan-European team which now includes Swiss and Scandinavian offices, along with teams based in Italy, France, Benelux, Germany and Spain
▲ Private banking showing sound growth• Revenues up 22.9% to €27.3m
• Leveraging on: (i) main Italian business, which is growing organically and through small acquisition such as COFIB (independent fiduciary business)(ii) French division, (iii) newly built Swiss activity
▲ Net result in line with H1 2012
• GBL is working in two directions: strengthening business teams and leaning corporate and support functions
▲ Mid-term targets:• Creating:
(i) strong independent European plateform for M&A advisory on one side, (ii) strong Private Banking activities on the other side, leveraging on the current leadership position among Italian independent Private Banking networks
• Recurring dividend distribution (double digit yield)
1st HALF 2013 RESULTS
53
(1) Excluding other revenues (€1.9m in H1 2013 and €4.8m in H1 2012)
31.2%ECONOMIC INTEREST
EQUITY METHOD
▲ Moncler is pursuing its rapid development
+10% growth in sales for the group
+18% growth in sales for the Moncler brand
▲ The Moncler brand continues to develop its retail channel and to diversify geographically its sales
The Moncler brand opened 4 new stores in the first half 2013
In €m H1 2013 H1 2012 Change
Net sales(1) 247 225 +10%
Moncler 183 155 +18%
Sportswear 64 70 -9%
Net Debt 239 295 -19.0%
1st HALF 2013 RESULTS
54
1st Half 2013 highlights
M O N C L E R R E T A I L N E T W O R K A S O F J U N E 2 0 1 2 87 stores | + 4 in H1 2013
Retail stores: 31
ASIA
50
EUROPE
6
NORTH AMERICA
• Retail sales represent in H1 2013 more than half of the brand’s sales versus 44% in H1 2012
• The retail channel continues to enjoy a sustained like for like growth at +16% (at comparable foreign exchange rates) which compares to +13% in the full year 2012
• Continued geographic expansion, Italy representing around a quarter of the sales in H1 2013
1st HALF 2013 RESULTS
55 1st HALF 2013 RESULTS
9.1%ECONOMIC INTEREST
EQUITY METHOD
▲ Another resilient performance in Q2, despite a challenging environment in Europe and the Pacific
• Q2 sales broadly stable year-on-year on a reported basis ; strong contribution from Platt and Munro, acquired in H2 2012
• Sequential improvement on a constant and same-day basis (-3.3% in Q2 after -3.7% in Q1), mainly driven by the United States, but also by China and Brazil
▲ Resilient profitability in H1 with Adjusted EBITA margin of 5.1% thanks to margin discipline and cost control
• Calendar impact in H1 represented half of the 40bp drop in Adj. EBITA margin
• Distribution and administrative expenses (excl. depreciation) reduced by 2.9% in H1, close to the 3.5% drop in sales on a constant and same-day basis
In €m H1 2013 H1 2012 Change
Reported revenue 6,468.8 6,568.1 -1.5%
Adjusted EBITA
% margin
331.9
5.1%
370.7
5.5%
-10.5%
Reported net debt 2,628.9 2,458.4 6.9%
56
DETAILED INFORMATION ON EURAZEO PME
1st HALF 2013 RESULTS
57
Financials
1st HALF 2013 RESULTS
(€m) H1 2013 H1 2012Reportedchange
Like-for-like change
Revenue 220.3 218.4 + 1% + 7%
EBITDA*
% margin
34.8
15.8%
37.5
17.2%
- 7% - 2%
Net debt
Portfolio leverage
163,2**
2.7x
266.7
3.4x
(*) Majority Investments as of June 30, 2013(**) Net debt out of Flexitallic recorded as Assets for Sale
58
3 acquisitions in H1 2013
▲ Idéal Résidences: group of medical, social and health care facilities
▲ Péters Surgical: the world's 4th-largest surgical suture specialist
▲ Groupe Cap Vert Finance: European leader in electronics recycling
1st HALF 2013 RESULTS
59
Investment in Idéal Résidences
1st HALF 2013 RESULTS
Attractive industry with strong resilience brought by longevity, health awareness, numerus clausus and lack of capacities
Quality platform in leading locations for building-up a larger, homogenous and consistent group
Highly skilled management team with demonstrated ability to integrate and transform new acquisitions
Build a groupof about
20 facilities
1. Numerous French build-ups opportunities
2. Focus on underperforming healthcare facilities, pricing power
3. Rerating of a cohesive group
• Idéal Résidences manages five senior assisted living facilities and a post-acute care and rehabilitation center, all located in the greater Paris region and representing a total of 515 beds.
• The group generated €27 million in revenue in 2012.
Direct sourcingMarch 2013
Investment €21
million
Equity interest 54%
Group of 5 nursing homesand post-acute facilities
60
Investment in Idéal Résidences
1st HALF 2013 RESULTS
AGING POPULATION IN FRANCEIn million people over 60 years old
NURSING HOME MARKETIn France
2060*2025*2013
23.6
18.915.6
New opportunities:• New consumer expectations
• Investment needs
+21%
+25%
(*) Insee expectation in 2010
13.9
12.0
9.2
9.0
55.9
• 225,000 new dependent people every year in France
• Expenses for dependency will rise up to €22bn in 2012 (1.1% of the GDP)
• Government's position toward dependency is expected to change and therefore bring opportunities
Orpéa
Domus Vi
Korian
Médica
Others In %
61
Investment in Péters Surgical
1st HALF 2013 RESULTS
• Founded in 1926, Péters Surgical has three operating locations all maintaining a high standard of service. Its products are recognized worldwide and distributed in over 75 countries.
• The group generated €37 million in revenue in 2012 (50% outside France).
4th largest surgicalsuture specialist
Auction July 2013
Investment €30
million
Equity interest 90% French specialist in sutures, wall reinforcement and drains
Resilient and duplicable business model internationally
Strong network abroad, 75 countries covered at export, base for further international expansion
Build an international
leader
1. Room to accelerate organic growth in France
2. Consolidate business position through the strengthening of R&D
3. Numerous identifiedinternational build-ups
62
The surgical suture market
1st HALF 2013 RESULTS
WORLDWIDE SUTURE MARKETIn €bn
FRENCH SUTURE MARKET
2018e2011
3.22.4
+4.4% CAGR
• US, Brazilian and Chinese markets: the most attractive markets in terms of size and growth perspective
• Eastern European and Asian countries: important development potential remaining
• The French sutures market (7% of the worldwide sutures market) is mature and stable, concentrated among 4 players making the arrival of a new challenger very unlikely
• High entry barriers mainly due to regulatory requirements (EC-marking, etc.)
• Sutures have proved to be more resilient to public spending’s higher monitoring than medical equipment
• #4 player worldwide
• #3 in France Péters Surgical benefits from a strong position:
63
Investment in Cap Vert Finance
1st HALF 2013 RESULTS
• CVF is specialized in leasing, recycling and maintaining IT systems through its brands AS Lease and IB Remarketing.
• The group generated €59 million in revenue
in 2012.
Direct sourcing July 2013
Investment €36
million
Equity interest 57%
European leader inelectronics recycling through PLC management Sustainable strong growth in maintaining activities
High recurring revenues
Strong profitability notably related to the recycling activity
Efficient operational reporting
Build an international
leader
1. International business development in emerging countries and the USA
2. Numerous build-ups opportunities in light of effective economies of scale
3. Business developments beyond telecom industry
64
Electronics recycling market
1st HALF 2013 RESULTS
FLEET OF SERVERS (WORLDWIDE)In million units
WORLDWIDE STORAGE MARKET
2013201220112010
41383532
TCAM: +9%
201120102009
211917
In Mds$
TCAM: +11%
• Increase in demand for IT equipment
• Need for spare parts for maintenance and power increase
• New maintenance needs to increase the IT equipment lifespan
• Exponential increase in power needs and medium-term storage• Continuous increase worldwide in the volume of data to process
(servers), to deliver (network equipment) or to store• Fleets of servers grow worldwide
Many opportunitie
s:
65
Portfolio
1st HALF 2013 RESULTS
As of June 30, 2013€279m
As of July 17, 2013€210m
66
Highlights
1st HALF 2013 RESULTS
34.8
24.7
6.5
30.4
55.7
103.0
220.3
37.5
45.0
30.1
58.4
84.8
218.4
Other (Gault & Frémont,
Mors Smitt, Fondis)
Portfolio EBITDA**
+1%
+21%
-5%
+1%
na
-7%
• Strong activity in maintenance programs in France & USA
• Decrease on the Canadian activity• New projects in Asia and Germany
• Opening of 3 restaurants in H1 2013 and one on the new concept “Leon de B”
• On a comparable basis, sales decreased by 5.6%(like the market)
• Launch of the Camille Albane activity in the US
• Acquisition of Idéal Résidences the 26th of March 2013
• New build up projects
• Sale of Mors Smitt to Wabtec mid-June 2012
• Average margin: 15.8%
• Decrease mainly due to Léon de Bruxelles market conditions
+7%
-2%
ChangeChange inl.f.l. basis*
H1 2012H1 2013
R E V E N U E (€m)
(*) Adjusted for Mors Smitt sale and Idéal Résidences acquisition (**) Majority Investments as of june 30,2013
67
DETAILED INFORMATION ON EURAZEO CROISSANCE
1st HALF 2013 RESULTS
68
Financials*
1st HALF 2013 RESULTS
(*) Economic financials: 100% of 3SP Group’s consolidated financials and 39.3% of Fonroche’s consolidated financials
(€m) H1 2013 H1 2012Reportedchange
Revenue 29.3 33.7 -13%
EBITDA
% margin
-0.7
NM
6.1
18.1%
nm
69
Investment in IES
1st HALF 2013 RESULTS
O N B O A R D C H A R G E R S E X T E R N A L C H A R G E R S
Carmanufacturers
Tier 1
Electric vehicles manufacturers
Industrialelectric vehicles
External chargers for private and
professional use
Publicchargingstations
• IES is specialized in the design and manufacturing of charging solutions, being among the few companies globally to manage both of the existing standards in electric vehicle chargers, CHAdeMO and Combo
• IES managed to grow its revenue from €5m in 2006 to €14m in 2012
Direct sourcing June 2013
EV€22
million
Equity interest 93%
Pioneer in electric vehicle chargers
Diversified product offering
Strong R&D and technological knowhow
Demonstrated capability to supply the world’s major OEMs
Build a global leader in electric vehicle chargers
1. International business development in Europe, North America and Asia
2. Boost R&D activities
3. External growth opportunities
Wall-box
70
The electric vehicle market
1st HALF 2013 RESULTS
2011 2012 2013 2014 2015 2016 2017 20180
100
200
300
(*) Excluding conventional hybrids (no recharge)
Source: market surveys
THE EUROPEAN ELECTRIC VEHICLE MARKET*In k units
Low expansion scenario:Steady growth but limited to a niche market
Significant expansion scenario:Strong consumer adoption
▲ The electric vehicle addresses several critical challenges of which:• Decreasing CO2 emissions• Reducing dependence on fossil fuels • Cutting urban air pollution
▲ The electric vehicle market presents a high growth potential with all major car manufacturers launching an electric model
2
1
71
NAV as of June 30, 2013€179m
Portfolio
1st HALF 2013 RESULTS
Invested amount as of June 30, 2013
72
DETAILED INFORMATION ON EURAZEO PATRIMOINE
1st HALF 2013 RESULTS
73
1st Half 2013 highlights
▲ H1 Rents in line with budget– +8% like-for-like growth
– FY 2013 rents target +14% confirmed
▲ Appraisal and NAV stable– +€3.4m change in fair value
– Triple Net NAV stable at 30.7 €/share (despite dividend paid of 1€/share)
▲ Follow on projects in Marseille– Ilot 34 project to be delivered this summer in Marseille fully
commercialized
– Desbief site in Marseille available for restructuring
▲ Acquisition in progress– Bordeaux: two investments secured out of one fully rent to Casino
– Lyon “Carré de Soie”: new investment for 36,000 m² offices building rent to Alstom Transport
– Bid placed for an asset in Lyon – Rue de la République
1st HALF 2013 RESULTS
74
Financials
IFRS (in €m) H1 2013H1 2012 ProForma
Change H1 2012 H1 2011
Gross Rental Income 17.1 14.5 17.9% 38.5 45.2
EBITDA 11.4 8.4 40.5% 30.6 38.3
% margin 66.7% 57.9% 11.1 79.5% 84.7%
Recurring EBITDA 11.4 8.4 40.5% 30.6 30.5
% margin 66.7% 57.9% 11.1 79,5% 81.5%
Cash Flow 8.3 5.1 70.6% 21.8 29.6
Recurring cash flow 8.3 5.1 70.6% 21.8 21.7
RCF per share 0.5 0.8 0.8
In €m H1 2013
ReportedH1 2012
ReportedH1 2011
Reported
Real Estate portfolio 927 1,685 1,607
Net Debt 357 542 489
NAV per share 31.4 41.2 40.5
Triple Net NAV 30.7 39.7 39.6
LTV 38.7% 32.2% 30.4%
1st HALF 2013 RESULTS
75
OTHER
1st HALF 2013 RESULTS
76
A long-term shareholder base and strong corporate governance
1st HALF 2013 RESULTS
SHAREHOLDING STRUCTURE as of June 30, 2013
Separation of the roles of Chairman and CEO
Independence of the Supervisory Board: 7 independent members out of 12
Audit Committee, Finance Committee, Compensation and Appointments Committee
Existence of a shareholder agreement between founding families (former SCHP)
(1) Including 3.39% of treasury shares(2) Concert as of June 13, 2013
Crédit Agricole18.01%
Sofina5.73%8.74%
22.23%
FoundingFamilies(2)
20.29%
x.x% = voting rights
23.46%
Strong corporate Governance
Free float(1)
55.97%
77
Financial Agenda
1st HALF 2013 RESULTS
3rd Quarter Revenue November 7, 2013
FY 2013 Revenue & Results March 19, 2014
1st Quarter 2014 Revenue (after market close) May 6, 2014
Shareholders' Meeting May 7, 2014
78
About us
1st HALF 2013 RESULTS
Eurazeo contactsInvestor Relations
Caroline Cohen• [email protected]
+ 33 (0)1 44 15 16 76Corporate & Financial
CommunicationSandra Cadiou
• [email protected]+ 33 (0)1 44 15 80 26
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
• 68,419,738 shares in circulation
• Statutory threshold declarations 1%
Research on Eurazeo
• Alpha Value Catherine Radiguer
• Exane BNP-Paribas Charles-Henri de Mortemart
• Goldman Sachs Markus Iwar
• HSBC Pierre Bosset
• JP Morgan Cazenove Christopher Brown
• Kepler Cheuvreux Pierre Boucheny& David Cerdan
• Natixis Céline Chérubin
• Oddo Christophe Chaput
• SG Patrick Jousseaume
• UBS Denis Moreau
www.eurazeo.com