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Eurazeo Capital 2002-2017: BUILDING TODAY’S EURAZEO 2018 & BEYOND: A VALUE-ADDED TRANSATLANTIC PE PLAYER 2017 FINANCIAL RESULTS AND NEW METRICS PERFORMANCE DRIVEN ACROSS ALL INVESTMENT DIVISIONS 2002-2017: BUILDING TODAY’S EURAZEO Full Year 2017 Results 4 Delivering rapid growth on every front # OF INVESTMENT DIVISIONS MORE PORTFOLIO COMPANIES 5 40 3x 1 14 2002 2017* 2002 2017* Expanding the investment scope through 5 distinct investment divisions Diversifying the portfolio GROWING WORLDWIDE OUR PEOPLE AT THE HEART OF OUR SUCCESS 5 # offices # employees 117 3x 1 41 2002 2017* 2002 2017* An international exposure with 5 offices to seize local investment opportunities and support build-ups abroad for our portfolio companies Attracting talents from 11 nationalities (*) Excluding Idinvest and Rhône Full Year 2017 Results 5 A talented team driving our success Diversity International staff A gender-balanced team 11 nationalities and culture Management Experienced team Built a strong and unique with an average tenure corporate team of 6 years Average age c.40 years old Full Year 2017 Results 6 An active approach portfolio management, no sleeping assets 2002 – 2018YTD INVESTMENTS €9.7bn 62 invested in companies 2002 – 2018YTD PROCEEDS * 29 €10.3bn exits proceeds (*) Including the sale of the entire stake in Accor SA in March 2018 Full Year 2017 Results 7 A fourfold return to Eurazeo shareholders Return to shareholders Total Shareholder Value 8,265 In €m 4.3x 2,697 2,697 Distribution to shareholders Eurazeo’s average CoC 3,643 c.2x 1,925 5,568 Market cap** (on disposals realized since 2002) June 30, 2002 Increase in market cap Shareholders’ Dec. 31, 2017 up to Dec. 31, 2017 return* Strong outperformance versus indices over 15 years (June 30, 2002 – Dec. 31, 2017)** +381% +212% +155% +143% +126% Total Shareholder Return (TSR) Eurazeo LPX Europe SBF 120 MSCI Europe CAC 40 (*) Ordinary dividends, exceptional dividends and share buybacks (**) Source: Bloomberg Full Year 2017 Results 8 Eurazeo shares: boosting returns and mitigating risks Decreasing volatility January 1, 2002 – Dec. 31, 2017* (%) 80 70 60 50 40 30 Distributable 20 reserves >20yrs 10 of current dividends 02/01/2002 02/01/2006 02/01/2010 02/01/2014 02/01/2018 €2,055m As of Dec. 31st, 2017 15.94 15.6x 1.02 2002 2017 Strong increase in liquidity Average amount per day (in million of euros) Source: Bloomberg (*) Daily volatility calculated on 90-rolling days Full Year 2017 Results 9 A track record of transformation: positioning Eurazeo for the future MULTI- STRATEGIC GEOGRAPHY PARTNERSHIP MULTI-ASSETS MULTI-SIZE 2002 2017 MULTI- DUAL FUNDING STRATEGY MULTI- CORPORATE INVESTORS EXPERTISE A transatlantic investment platform to serve private companies at all stages of their growth Eurazeo is well positioned 2018 to create value in the future Full Year 2017 Results 10 2018 & BEYOND: A VALUE-ADDED TRANSATLANTIC PE PLAYER At our core: accelerating companies’ long-term growth Our values & convictions OPEN-MINDED TENACIOUS RESPONSIBLE BOLD CPK Operational leverage A Reference Partner Digital / CSR Internationalisation Transformation Transformation M&A Serving entrepreneurs and managers at every stage of their development Unlocking potential value Full Year 2017 Results 12 Eurazeo: partner of choice for entrepreneurs & investors An incredibly talented team Ambitious vision for growth • Collaborative skills, a lever to boost innovation • Active throughout the entire PE value chain and outperformance with an enriched model with Rhône and Idinvest: • Thinking differently, reaching further • Transforming companies from local to global • A bespoke approach to each investment • Using every available lever to develop our companies: digitalization, CSR, HR… • Operational value-creation through our local offices F i r s t - class reputation The go-to PE player Top notch performance • Eurazeo Capital, Eurazeo PME & Eurazeo Croissance: • Reinvesting continually in our companies: 6 add-ons per each an undisputed leader in its sector in France, portfolio company in the recent Eurazeo Capital II vintage systematically approached in fundraising rounds • Outperformance vs. MSCI Europe index since 2002 • Idinvest: the reference player in French Tech & Venture of 1.8x • Growing abroad: 60% of Eurazeo Capital's non listed • Average multiple of over 2x on exit since 2002 companies (% of current NAV) are non-French • Aiming for returns above 15% annually • Over €3bn invested in 2017 (Eurazeo and Idinvest) over the medium term Full Year 2017 Results 13 A dual-funded model: the best of both worlds COMBINED MODEL Balance sheet • Permanent capital: long-term development and timing flexibility • c • Create value for stakeholders • Ability to seed new investment teams • Co-investment to align interests with investment partners • No structural debt at Eurazeo level • Reduced risk profile Investment partners • Reduction of volatility & increase • Stronger global network for sourcing the liquidity of Eurazeo’s shares and portfolio development • c • Development of synergies • Additional investment capacity • Free up resources to seed new investment strategies • Recurring revenue streams and to access new geographies • Attract new investors and the best teams Full Year 2017 Results 14 A virtuous circle Benefits for our shareholders Benefits for our companies • Access to and application of best practices • An enlarged network • Access to a more diversified • Access to and application and less risky portfolio of best practices • Better sourcing of investment opportunities • Quality of investment and corporate • An enhanced global footprint COMBINED MODEL support teams • A broader and deeper relationship network Virtuous circle • Identification of new opportunities • Recurring revenues ensuring for M&A greater visibility • Freeing up resources to seed new investment strategies and to access new geographies Benefits for investment partners Benefits for talents • Selection specific funds among full-range of strategies • A global reach to attract • Increased traction for investors top international talents given the full-range of products • Thorough expertise • Leverage Eurazeo’s international in each investment team investment teams for Eurazeo’s partners • Greater mobility • Create stickiness (more contact • International network opportunities) with investors thanks to an enlarged range of products Full Year 2017 Results 15 Unique in our scope DUAL-FUNDED MODEL (AUM) Total €6bn €9bn* AUM Shareholders NAV Investment partners €15bn* Permanent capital Capital from investment partners MULTISTRATEGY INVESTMENTS Investment partners’ share Mid to large cap Small cap Brands Venture capital Idinvest 8 Rhône Investment divisions Growth capital Tangible assets Private debt Private funds Rhône (WeWork) Idinvest Idinvest Idinvest Luxembourg GLOBAL REACH London Frankfurt New York EUROPE Paris Trans- Madrid Dubai Shanghai atlantic AMERICAS ASIA PE player São Paulo Buenos Aires (*) Proforma of Idinvest and Rhône Full Year 2017 Results 16 Operating across the PE spectrum AUM by asset class AUM: breakdown on private equity Others Real assets 5% 4% Large caps 66% Funds of funds 14% €15bn 61% Direct Venture 20% private equity 2017 PF* Mid caps 9% 17% Debt Growth 5% (*) Proforma of Idinvest and Rhône Full Year 2017 Results 17 New model, new governance EXECUTIVE COMMITTEE Definition & Implementation Executive Board of strategic priorities Focus on governance - Strategic and competitive - Resources allocation overview - Shareholders and Supervisory Board - Business sectors relationships and asset classes strategy - Financial performance - External Virginie Morgon Philippe Audouin Nicolas Huet Olivier Millet - International representation, Chief Executive Officer Chief Financial Officer General Secretary Member of deployment strategy communication Executive Board & CEO of Eurazeo PME and lobbying - External growth and M&A - Fundraising and LP’s relationship strategy - Portfolio companies performance reviews - HR strategy Marc Frappier Frans Tieleman Renaud Haberkorn Caroline Hadrbolec Managing Partner, Managing Partner, Managing Partner, Chief Human Head of Head of Eurazeo Head of Resources Officer Eurazeo Capital Development Eurazeo Patrimoine Full Year 2017 Results 18 Agility, excellence & breadth • Defining its investment strategy (investment allocations by risk/return profile, growth sectors) Give more autonomy & responsabilities to • A dedicated Investment Committee for each investment division composed of COMEX members, investment MDs and qualified independent committee the investment teams member • Build and monitor its budget and HR strategy • Help in the definition of the transformation guidelines of our companies Enhance the • Follow-up of the action plans and performance performance of our companies • Leverage our network of expertise (internal corporate team, local offices, external marketplace) Strengthen investment execution and partners relationship: Develop our • Coordination of Eurazeo, Rhône and Idinvest fundraising strategy relationship with investment partners • Group strategic overview • Transversal vision of our investment strategy Full Year 2017 Results 19 2017 FINANCIAL RESULTS AND NEW METRICS 2017: A landmark year • Successful launch of Eurazeo North America: team and first 2 investments realized (WorldStrides, Trader Interactive) • Successful launch of Eurazeo Brands, with its 1st investment in Nest Fragrances • Strategic investments and partnerships: 70% of Idinvest, 30% of Rhône • Strong performance of the portfolio companies
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