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
• Strengthening Eurazeo’s shareholding with long-term capital
• A very active year for portfolio rotation:
€1,354m(*) 9 (*) invested in companies 8 €1,364m exits proceeds €479m(*) (**) 13 & dividends re-invested in companies
(*) Assets Under Management (**) Including reinvestments in Capzanine and Raise
Full Year 2017 Results 21 Our new financial metrics reflect the change in our business model
EURAZEO’S 2002 2017 2017 PF* NEW METRICS EVOLUTION Partnerships
Investment Investment partners partners New financial communication Business model Balance sheet Balance sheet Balance sheet for a new Eurazeo
15 AUM (€bn) 7 3 • Assets under Management - Eurazeo’s balance sheet - Investment partners
8 • Focus on investment division Investment 5 key metrics: divisions 1 - Net Asset Value (NAV) - Economic revenue - Economic EBITDA 358** - Economic net debt 40 Portfolio companies (#) 14
(*) Proforma of Idinvest and Rhône (**) Excluding funds of funds from Idinvest Full Year 2017 Results 22 Assets under Management are our key metrics
31/12/2017 In m€ 31/12/2016 31/12/2017 PF* Eurazeo Capital 2,589 4,058 4,058 Eurazeo PME 405 382 382 Eurazeo Patrimoine 440 320 320 Investment AUM managed partners’ AUM by Eurazeo Eurazeo Croissance 244 237 237 Eurazeo Brands - 60 60 Eurazeo Development 142 240 713 Net cash & Others 1,206 300 -15 Net asset value TOTAL NAV 5,026 5,597 5,754 of portfolio assets NAV per share (€) 68.9 78.2 78.2
Funds managed Eurazeo Capital ** 786 730 730 by Eurazeo for investment partners Eurazeo PME ** 234 396 396 • Portfolio at fair value • Portfolio at fair value • Uncalled committed capital • Uncalled committed capital Eurazeo Patrimoine 26 45 45
** Idinvest @100% 6,924 Investment partners’ AUM • 100% of Idinvest’s AUM Rhône @30% 1,591 • 30% of Rhône’s AUM (*) Proforma of Idinvest & Rhône Total assets managed (**) Including uncalled comittments 1,046 1,171 9,686 by investment partners
TOTAL AUM 6,072 6,768 15,440
Full Year 2017 Results 23 Eurazeo has more than quadrupled its AUM in 9 years
Eurazeo AUM
4.4 x €15.4bn
8.5 Investment partners’ AUM €6.8bn
€3.4bn 1.2 1.2 Eurazeo funds’ AUM
0.4 5.6 5.8 NAV 3.0
Dec. 2008 Dec. 2017 Dec. 2017 PF*
(*) Proforma of Rhône and Idinvest
Full Year 2017 Results 24 Economic revenue by investment division
TOTAL 2016 Eurazeo constant scope (€m) 4,951 2017 (€m) +16%
Companies At Eurazeo constant scope x% 4,254 +18% 1,472 consolidated under equity method 3,413 1,313
2,892
Fully +16% 3,478 consolidated companies 2,941 1,191 1,024 +4%* +3% +1% 294 302 44 44
2016 2017 Eurazeo Eurazeo PME Eurazeo Others Eurazeo Capital Patrimoine constant scope (*) Excluding ANF Immobilier Full Year 2017 Results 25 Economic EBITDA by investment division
TOTAL 2016 Eurazeo constant scope (€m)
727 2017 (€m) +14% 640 +14% At Eurazeo constant scope x% Companies 204 consolidated under equity 473 185 method 414
+16% +11%* Fully 523 consolidated +7% 455 companies 151 130 96 103
2016 2017 Eurazeo Eurazeo PME Eurazeo Eurazeo Capital Patrimoine constant scope (*) Excluding ANF Immobilier Full Year 2017 Results 26 2017 EBITDA growth for non listed portfolio companies
>2/3 of NAV % of NAV* (as of Dec. 31, 2017) at double digit EBITDA growth
40%
33%
15% 12%
EBITDA growth in 2017 <0% 0–10% 10–20% ≥20% (%)
* NAV of portfolio companies excluding listed assets and CPK due to carve-out effect
Full Year 2017 Results 27 Profit & Loss
P&L in €m
2017 2016 PF
Contribution of companies net cost of debt 290.9 217.4
Capital gains (net) 575.2 831.6
Others (122.3) (126.6)
Non-recurring items (263.8) (334.0)
Net consolidated income 480.1 588.3
Net consolidated income Group share 440.6 525.0
(1) Revenue at the holding company, net cost of financial debt of holding sector, operating costs, taxes and amortization of commercial contracts
Full Year 2017 Results 28 Non-recurring items in 2017
Total non-recurring items (€m) (263.8)
• One-off investment costs (101.8)
̵ Acquisition (33.3)
̵ Build-ups operations (39.1)
̵ Others (29.4)
• Restructuring & Carve-out costs (46.6)
• Goodwill (20.5)
• Impairments (26.8)
• Others (68.1)
Full Year 2017 Results 29 Solid cash position
AT EURAZEO LEVEL Solid cash position: c.€379m as of Dec. 31, 2017 No structural financial debt at Eurazeo level Portfolio companies’ financial debts are non recourse to Eurazeo
1,042 -1,679
57 -79 69 1,052 -105 91
379 448
Dec. 31, 2016 Proceeds Investments & Dividends Dividends paid Share Buyback Others Dec. 31, 2017 Post-closing* Dec. 31, 2017 Reinvestments received PF (*) Including 30% of Rhône, 70% of Idinvest, exit of AccorHotels and investment in C2S Full Year 2017 Results 30 Consolidated net debt
In €m
6,307 6,021
4,587 Of which:
3,619 Eurazeo Capital 1,715
2,451 Eurazeo PME 640
1,501 Eurazeo Patrimoine 427
355
2011 2012 2013 2014 2015 2016 2017
Full Year 2017 Results 31 A robust progression in NAV per share in 2017
NAV per share of €78.2 as of Dec. 31, 2017 +13.5% (+15.2% dividend included)
Value Creation 2017 NAV
Eurazeo Brands Others Eurazeo Eurazeo non listed: +11% Development Eurazeo 5% Eurazeo listed: +37% Eurazeo 1% Capital 4% (listed) Croissance 4% +25% +13% Eurazeo 28% Patrimoine 6%
Eurazeo PME 7%
+16% +19%
+55% N.A. 45% Eurazeo Capital (non-listed) NAV +11.4% €5,597m o/w: 42% of assets not revaluated as of Dec. 31, 2017 AUM €6,768m
NAV per share of €79.1 as of March 2, 2018 Nb: NAV per share: adjusted for bonus share Full Year 2017 Results 32 PERFORMANCE DRIVEN ACROSS ALL INVESTMENT DIVISIONS Eurazeo Capital: Strategy & Ambition
STRATEGY
A partner of choice for management teams Average investment pace: with a global ambition €750m per annum; target IRR of 15-20%
A global footprint to support ambitious value creation goals Investment Criteria • >20 investment professionals in NY and Paris • Solid underlying demand drivers • Operating support teams in Shanghai and São Paulo • Vast opportunities for international expansion A dedicated sourcing team scouting opportunities • Ability to scale-up and significantly in Europe and North America enrich the business model, • More deal flow than ever notably through digital strategy • Ability to pick the best suited opportunities for Eurazeo Capital • Ambitious management teams
AMBITION: 2018 & BEYOND
Portfolio Value Creation Growing third-party resources • Drive value from 2017 build-ups on top of permanent capital • Accelerate development of recent acquisitions • Already €730m under management • Seize portfolio rotation opportunities • Keep raising new funds • Set-up portfolio management team Build strategic partnership with Rhône
Full Year 2017 Results 34 Eurazeo Capital: Highlights in 2017
• Iberchem FY Opportunities High priorities Offers submitted Deals • CPK Build-ups 2017 513 54 15 4 • Trader Interactive 17 • WorldStrides
2017 highlights Investments & Significant build-ups re-investments Fintrax / Planet Payment Eurazeo Capital II closed: * • Successfully raised €500m €1,521m • Extension of geographical footprint (in Asia, Middle East, North America) from investment partners €1,411m • Strengthen payment activity • To date, 92% invested in 8 investments Eurazeo’s share Novacap / PCAS • Strengthen Contract Manufacturing Organisation North American activities: Divestments business & Dividends • 2 deals, representing 24% NAV of Eurazeo • Strong portfolio of blue chip clients and Capital non listed * molecules for pharmaceuticals and specialty €750m chemicals markets • A rich U.S. pipeline: 25% of opportunities €591m • US team: 2 recruits in 2017, the Eurazeo Elis / Lavebras, Indusal & Berendsen Eurazeo’s share Capital team has now 6 professionals in NY • Strengthen position in the Latin American, Spanish market and Northern Europe CoC • Top market position, strong synergies
2.7x Europcar / Goldcar Moncler • Become a major player in the low cost segment * Assets Under Management Elis Europcar Full Year 2017 Results 35 Eurazeo Capital: Growth ahead after a solid performance in 2017
Comments Value Eurazeo Capital NAV (Listed) creation: +37% Listed Assets: In €m 1,553 • Opportunistically harvested listed positions in 2017 1,391 512 226 • Still actively supporting high transformation agenda; -576 Highly accretive acquisitions of Lavebras, Indusal and Berendsen by Elis ; Strategic build-up Dec. 31st, Proceeds Investments Value Dec. 31st, of Goldcar by Europcar 2016 & Dividends creation 2017
Eurazeo Capital NAV (Non listed) Value creation: Non Listed Assets: +11% • Substantial investment activity in 2017: In €m 137 2,505 1,185 c.€1bn deployed; 2 deals in the US, 2 in Europe, 1,042 Not 1,199 revaluated 4/5 build-ups with new equity -15 • +11% NAV growth on existing portfolio reflecting 1,463 solid market trends in 2017 and on-going Dec. 31st, Proceeds Investments Value Dec. 31st, transformation work on a young portfolio 2016 creation 2017
2017 EBITDA growth of non listed assets
% of Eurazeo Capital non listed NAV* 41% (as of Dec. 31, 2017) 31% • Economic EBITDA for non listed assets stands at €339m, up +15% on a constant Eurazeo 14% 14% scope basis
• 2/3 of our non-listed portfolio companies <0% 0–10% 10–20% ≥20% have a double digit EBITDA growth in 2017
(*) Excl. CPK due to carve-out effect
Full Year 2017 Results 36 Eurazeo PME: Strategy & Ambition
STRATEGY
A transformational build-up strategy A proven strategy • Majority buy-outs with solid French SMEs • 12 years of transformational deal making, • €40-70m equity per investment (incl. build-ups), 68 deals ability to finance the development over the long term • Leader on the French lower mid cap market
13 experienced professionals • Eurazeo PME III raised in 2017: €658m to finance the next 5 years development, • Digitalization to strengthen leadership including €250m funded by investment and anticipate market trends partners • CSR to enhance performance sustainability
AMBITION: 2018 & BEYOND
Strengthen our French position and pursue international build-ups
Triple company size through add-on acquisitions, mainly abroad
Continue to target IRR of 15-20%. Average investment pace of €100-150m per annum
Full Year 2017 Results 37 Eurazeo PME: Highlights in 2017
FY Opportunities High priorities Offers submitted Deals • Smile Build-ups 2017 129 18 6 2 • In’Tech Medical 11
2017 highlights Investments & Significant build-ups re-investments Eurazeo PME III closed: * • 11 build-ups realized in 2017 • Successfully raised €250m €121m from investment partners €77m • MK Direct / Envie de Fraise: 2 acquisitions: Smile and In’Tech Medical Eurazeo’s share A disruptive business model which Colisée, a successful transformation will accelerate the digital transformation in 3 years: and a multi-channel distribution strategy • Strong performance, with a 2.5x CoC Divestments and 35% IRR €268m* • Flash Europe: • International reach in Italy and China 2 significant build-ups in Germany • Almost doubled the number of facilities €152m Eurazeo’s share • Diversification in Homecare with 2 acquisitions, becomes leader in France An expanded team: 3 recruitments CoC IRR 2.5x 35%
* Assets Under Management Colisée Full Year 2017 Results 38 Eurazeo PME: Performance in 2017
Comments NAV evolution In €m Value creation: • Colisée value creation, proceeds +13% are 39% higher than the last NAV
405 52 382 • Value creation is also driven by Flash Europe 77 Not 69 revaluated and Vignal Lighting Group
-152 313 • Smile and In’Tech Medical are valued at cost
Dec. 31st, 2016 Proceeds Investments Value Dec. 31st, creation 2017
2017 EBITDA growth
% of Eurazeo PME NAV (as of Dec. 31, 2017) 54% • Economic EBITDA at €151m, up +16% in 2017 compared to 2016 on a constant Eurazeo scope basis. Restated for build-ups, EBITDA up by +11% 21% 15% 10%
<0% 0–10% 10–20% ≥20%
Full Year 2017 Results 39 Eurazeo Patrimoine: Strategy & Ambition
STRATEGY INVESTMENT PILLARS
Real Estate and Real Asset Operating platforms owning their assets: Private Equity division of Eurazeo: Grape Hospitality, Reden Solar, C2S • Value-add and opportunistic strategies • Generate topline and EBITDA growth through operating excellence generating IRR between 12-17% • Align real estate and operations ownership to maximize depending on risk profile value creation through significant investment plans • Focused on Western Europe • Create integrated, agile platforms poised for build-ups • Ticket size: €30-200m Value-add real estate • Forward purchase: purchase quality assets at a higher yield than market. Address yield shift risk and benefit from rental upside • CIFA: arbitrage between property yield and cost of debt generating high cash yield
Special situations
AMBITION: 2018 & BEYOND
Support our existing portfolio: An annual €100-250m investment deployment pace build-up projects in 2018 should lead to a c.€1bn AUM within 3 years
Expand to other European markets Collaborate with Rhône to drive WeWork Real Estate fund through joint-ventures and build-ups expansion
Full Year 2017 Results 40 Eurazeo Patrimoine: Highlights in 2017
• REDEN Solar FY Opportunities High priorities Offers submitted Deals (closed) Build-ups 88 15 9 2 • C2S Group 2 2017 (closing expected mid March 2018)
2017 highlights Secured pipeline Investments Disposal of ANF Immobilier, ANF Immobilier Signed acquisition of C2S, the 8th largest private Hotels and of Colyzeo’s stake in AccorHotels €79m* clinic operator in France with 11 clinics: • Revenue: c.€160m • Equity investment: c.€100m alongside management Restructuring and relaunch of Reden Solar: and medical practitioners • Significant organic growth over 2017 Divestments • Closing expected mid March 2018 (+15% revenue) with 36MW built & Dividends * Under exclusivity for the forward purchase €269m of an office building to be developed in the Western crescent of Paris, close to La Defense Completion of Grape Hospitality €280m first of 3 phases capex plan Eurazeo’s share Signed Reden Solar’s build-up: 20MW (€35m – 21 hotels for the first phase) Portuguese portfolio, additional equity investment • Achieve +3% top line growth and €12m (Eurazeo share) +16% EBITDA growth CoC IRR 2.3x 13%
ANF Immobilier * Assets Under Management
Full Year 2017 Results 41 Eurazeo Patrimoine: Net Asset Value
Comments NAV evolution In €m Value creation: • +19% value creation mainly driven by CIFA, +19% Grape Hospitality and ANF Immobilier 440 82 320 • Proceeds generated by the disposal 79 Not of ANF Immobilier and ANF Immobilier Hotels 79 revaluated and by the disposal of Colyzeo’s stake 242 -280 in AccorHotels
Dec. 31st, Proceeds Investments Value Dec. 31st, • Investment: Reden Solar 2016 & Dividends creation 2017
2017 EBITDA growth % of Eurazeo Patrimoine NAV* 83% • Economic EBITDA at €103m, up +7% on a constant Eurazeo scope basis.
17% - -
<0% 0–10% 10–20% ≥20%
* As of 31-Dec-17, excluding ANF Immobilier ; Reden Solar NAV at cost
Full Year 2017 Results 42 Eurazeo Croissance: Strategy & Ambition
STRATEGY
Minority investments alongside founders European-centric approach, opportunistic and other investors in the US
Initial equity ticket between €15m and €25m Leveraging Eurazeo’s and Idinvest’s teams, with ability to reinvest significantly over time portfolio and network to provide business opportunities to our portfolio companies Focus on digital: software, marketplaces, fintech, platforms
AMBITION: 2018 & BEYOND
Joining forces with Idinvest to create a leading Accelerate our development thanks to investment European player with strong financial capabilities in the team, extended geographical coverage and enhanced deal flow Actively contribute to the development of our portfolio companies and prepare first exits in the short term
Full Year 2017 Results 43 Eurazeo Croissance: Highlights in 2017
• Doctolib FY Opportunities High priorities Offers submitted Deals (Closed in 2017) 141 18 3 2 • ContentSquare 2017 (Closed in January 2018)
2017 highlights Reinvestments Investments & Farfetch: re-investments Younited Credit • Strong growth driven by new partnerships €30m • Participated in the €40m fundraising with luxury brands and boutiques led by Bpifrance in September • $397m investment from JD.com alongside strategic partnership on marketing, logistics Vestiaire Collective and technology • Participated in the €58m fundraising Divestments led by Vitruvian announced in January Doctolib: • €61m raised in 2017 via 2 rounds €77m • European leader in doctors' appointments • 15 million French and German patients use Doctolib every month CoC Post-closing event: • Investment in ContentSquare 1.3x
Fonroche
Full Year 2017 Results 44 Eurazeo Croissance: Performance in 2017
Comments NAV Value creation: In €m +16% • Active work on 244 40 237 the legacy portfolio Not 30 revaluated ̵ Exit of Fonroche ̵ Fundraising of IES and partnership -77 with Nexans will drive value creation in the future
Dec. 31st, Proceeds Investments Value Dec. 31st, 2016 creation 2017
• Strong performance of the digital portfolio NAV – Digital assets Value ̵ Average revenue growth of c.80% in 2017 vs. creation: In €m 2016 +38% • Continued internationalization: 173 ̵ Farfetch: exceptional growth, 40 notably in China ̵ PeopleDoc: strong acceleration 28 in the US 105 ̵ Younited Credit: ramp-up of Italy and opening of Spain • Widened product offering ̵ Younited Credit: short-term deposit, small loans * ̵ Vestiaire Collective: enhanced user experience, B2B, consignment st st Dec. 31 , Investments Value Dec. 31 , • Path to profitability: increasing repeat business, 2016 creation 2017 operating leverage, improved cash collection
* Closing in January 2018 Full Year 2017 Results 45 Eurazeo Brands: Strategy & Ambition
BACKGROUND AND VISION
• Launched in May 2017 as Eurazeo’s fifth investment division
• Goal is to be the investment partner of choice for exceptional consumer brands striving to accelerate growth and value creation
• Allocated $800m of permanent capital to be deployed over 4-5 years Beauty Food Leisure across 6 target sectors:
Fashion Home Wellness
STRATEGY AMBITION: 2018 & BEYOND
• Leverage extensive global network to secure • Build diversified portfolio of high quality brands compelling investment opportunities • Develop global team • Target equity checks between $10m and $100m, with co-investment from Eurazeo Capital • Drive value creation by leveraging strategic and for checks exceeding $100m, up to $600m operating expertise of team members and advisors
• U.S. & European Investments • Achieve CoC of 2-3x and IRR of 20+%
• Majority or Minority Positions
Full Year 2017 Results 46 Eurazeo Brands: Highlights in 2017
FY Opportunities High priorities Offers submitted Deal • NEST Fragrances 2017 137 11 5 1
2017 highlights 2017 highlights Investments Team: Diligence: $70m* • Launched the U.S. team with CEO Jill Granoff • Evaluated 11 high-priority opportunities, and Managing Director, Adrianne Shapira submitted 5 non-binding offers • Added 2 new investment professionals in New York (*) Converted to €60m Execution: • Interviewed candidates for Europe • Completed a majority investment in NEST Fragrances, for $70M, Sourcing: in partnership with founder, Laura Slatkin • Screened 137 opportunities by networking • NEST is a premium home fragrance with entrepreneurs, brands, VC firms, and fine fragrance brand sold in leading Private Equity firms, and investment banks North American department stores and specialty stores, as well as direct • Developed awareness of Eurazeo Brands to consumer online across the consumer and retail landscape
Full Year 2017 Results 47 Eurazeo Development: Extending Eurazeo’s reach
Our proven investment teams Investment Partners attract strong investment partners
Our dual funded model enables transformative mergers
The long-term trust performance and reputation led to the alliance
Building network, investment capacity and investor base
Full Year 2017 Results 48 Blue-chip investor base: larger, broader and deeper
Investors by region* (by volume) 15% 10%
2011 France 2017 39% 30% Europe 27 73 60% RoW Investors Investors
46%
€0.4bn AUM €1.2bn (*) Before Idinvest merger
AUM 3x
• Insurance companies New investors including: • Pension funds +46 • Sovereign Wealth Funds • High Net Worth Individuals
Full Year 2017 Results 49 Positive investment partner feedback
PME III Fund marked by a continued 85% strong support from existing investors re-up rate*
Remarkable performance. Fully experienced team. Understood that structuring and Eurazeo Capital II Investor transforming companies creates value. Eurazeo PME II & III Investor
The Eurazeo platform is differentiated by We value the ethics: social its brand’s attractiveness to sellers and managers, and environmental issues the cohesiveness and experience of its teams, are meticulously examined. and the effort to build a long-term and transparent relationship with its investment partners. Eurazeo PME II & III Investor Investor in all three recent funds
Performance, strong processes and openness are key
(*) Calculated on committed amount
Full Year 2017 Results 50 Growing relationships to the next level
French home base with a deep penetration Nurturing and deepening of the smartest and largest investors in France existing relationships both at Eurazeo and Idinvest Top level investment partners network: pension funds, insurance companies, asset managers, families
Adding large international institutions esp. in the US Growing outside Current relationships with non European investors of Europe representing over €500bn in AUM ; aiming to deepen the relationship and selectively add a few
Cross-fertilisation Sharing network with Rhône Integrating partner relations with Idinvest
Full Year 2017 Results 51 Idinvest
Christophe Benoist BAVIÈRE GROSSMANN
Managing CEO Partner (since 2001) (since 2002)
• 28 years in the industry • 24 years in the industry
• Ex CEO of Allianz Global Investors France, • Head of Venture & Growth Vice-CEO and CIO of Allianz Private Equity • Ex Viventures, Financière de Brienne, • MBA Ottawa, Actuary, ESLSCA EDF, NASA
• PHD in Physics, MBA IEP Paris
Full Year 2017 Results 52 Idinvest overview - Strategy
A cross-fertilization approach between strategies
A long-term and consistent track record across market cycles
Critical size thanks to significant Assets under Management
Proven capacity to support the international expansion of European SMEs
Strong partnerships with industrial corporates
Full Year 2017 Results 53 Idinvest Overview - Highlights
WHO IS IDINVEST • A leading European investor founded in 1997 • Spin-off from Allianz in 2010 Assets Under Management • Since inception, Idinvest has financed more than As of Dec. 31st, 2017 4,000 companies through three business lines: Venture & Growth Capital, Private Debt and Private Funds Group Growth 3% AUM Private Debt Venture 39% • Almost €7 billion of assets under management 28% • Strong network of Limited Partners (LP’s), including insurance companies and leading €6.9bn institutional investors, as well as on behalf of 80,000 High Net Worth Individuals (20% of AuM)
PROFESSIONAL Funds of funds • The company employs more than 90 people 30%
5 OFFICES • An international expansion with offices in Paris, Frankfurt, Madrid, Dubai and Shanghai
Full Year 2017 Results 54 A strong performance over 10 years
Growth of Assets Under Management (€bn) 6.9
x5 + 17% p.a.
1.4
2007 2017
Full Year 2017 Results 55 Dynamic fundraiser and agile investor (1/2)
Active approach to investment strategies’ portfolio
1997 1999 2001 2003 2007 2013 2015 2016
Matching the need of their investor base
A diversified risk/return portfolio of products… … Supporting commercial effort
Illustrative Risk Target IRR Target Multiple
Venture High 20-25% 3,0x • Investment strategies reflecting investors’ needs or interests Growth Mid. to High 15-20% 2,0x • Ability to cross-fertilize across investors Secondary Mid. 15-20% 1,5x base Fund of fund Mid. 12-15% 1,8x • Broad risk/return portfolio enabling large commercial reach Debt Low 5-12% 1,4x
Full Year 2017 Results 56 Dynamic fundraiser and agile investor (2/2)
High quality institutional investors, enabling cross-selling Blue-chip investors
End of 2017: Investors by geography • Tier-1 Banks & Insurers (On committed amount) • 10+ International Corporate 37% 163 institutional • Middle East leading investors investors International 63% France
Full Year 2017 Results 57 A strong and experienced management team
A dynamic and entrepreneurial team Investment team
Growth 2 Private Debt 15 Venture 12 39 people
Funds of funds 10
• From 25 (Allianz spin-off) to 90 headcount • Full European coverage (end of 2017) • A strong middle office (36 persons) • 10+ years of common history for the executive committee
Full Year 2017 Results 58 A proven track record…
Since inception
€4.9bn €3.8bn 4,000+ deployed distributed companies
Selection of former and current portfolio companies
Full Year 2017 Results 59 … Alongside a network of serial entrepreneurs
Full Year 2017 Results 60 Case study
KEY DATA France – creation 2005
INTELLIGENT PERFORMANCE 70% IRR 40x on investment MARKETING ENGINE Data as of September 2017 v
Revenues (€m) 1623
1193
745
444
2 20 26 43
2006 2009 2010 2011 2012 2013 2014 2015 2016
Evolution between Entry (2006) Exit (2013)
Sales Pre-revenue $1.2bn
Ownership 24% 23%
Full Year 2017 Results 61 Case study
KEY DATA France – creation 2005
34% IRR 9.4x on investment OPEN DATA SOLUTIONS Data as of September 2017
v Revenues (€m) 106
77 63 54
2006 2013 2014 2015 2016
Evolution between Entry (2006) Exit (2016)
Sales Pre-revenue $100m
Ownership 15% 20%
Full Year 2017 Results 62 Sample of Idinvest’s direct lending portfolio exits
Industry-leading software Software and consulting Leading contract manufacturing solutions including watch list filtering for infrastructure company producing high quality and trade compliance solutions & construction works ancillaries for manufacturers of spinal implants worldwide.
First entry May 2011 March 2013 September 2012
Risk monitoring Healthcare Equipment Sector Software provider software & services & Services
Instrument Mezzanine Mezzanine Mezzanine
Performance data:
Exit date September 2014 December 2016 July 2017
Multiple 2.5x 1.4x 1.6x
IRR 33% 22% 19%
Full Year 2017 Results 63 Idinvest venture portfolio (selection)
MARKETPLACE DEEPTECH*
GAMING FINTECH & INSURTECH SMART CITY
DIGITAL HEALTHCARE ADTECH & MARTECH SAAS
(*) Deeptech includes sectors such as Artificial Intelligence, Virtual Reality, Internet of Things, Cybersecurity
Full Year 2017 Results 64 Conclusion A unique combination of strengths
• A common and complementary French heritage • A like-minded investment philosophy • A unique European platform with critical size and ability to fund any stage of the business cycle • A larger portfolio including non equity products enabling relationship with broad range of investment partners • Creating a leading European player in Growth equity • An enhanced European footprint • Complementary investor base • Access to French retail, representing a nascent opportunity for PE
• A common and complementary transatlantic heritage • A like-minded investment philosophy • An enhanced global footprint • Complementary sector and country capabilities translating into enriched dealflow • A broader and deeper relationship network • A strengthened and diversified shareholder base • Eurazeo gains an economic participation in a high-performing, growing international PE firm • Eurazeo enters new peer group of diversified asset managers
Full Year 2017 Results 66 2018 and beyond: top priorities
Value creation and Growing with Idinvest financial performance
Pursue our fundraising Enrich our partnership to provide the means with Rhône for our future ambitions
Full Year 2017 Results 67 The reference partner for entrepreneurs and managers to assist them in the transformation and internationalization of their companies
Full Year 2017 Results 68 Appendices
Including Detailed Information by Investment Division Idinvest: Venture & Growth
Investment focus Management team
+ 6 Investment • Targeting innovative companies Directors / with a proven disruptive model + 4 Associates on high-growth sectors & Analysts / Benoist Grossmann Nicolas Chaudron Mathieu Baret + 3 middle-officer ̵ Managing Partner ̵ Comex Partner ̵ Comex Partner focused on VC • Commitment to Ethical (since 2002) (since 2001) (since 2005) & Growth business Investment ̵ 24 years ̵ 17 years ̵ 16 years in the industry in the industry in the industry
• Lead or co-lead investments AUM evolution Cumulative AUM with a hands-on approach and board seats to support business execution €2.1bn Current fundraising: €400m and strategy development €800m €2.1bn • Consistent ability to exit
2011 2017 • Value-added relationships with Investment Partners Track record Key Indicators
Investments >150
Ticket size €1-40m
IPOs 16
Full Year 2017 Results 70 Idinvest: Private debt
Investment focus Management team
+ 6 Investment • Healthy European SMEs Directors / + 6 Associates & Analysts / • Flexible approach to Christophe Bavière Eric Gallerne François Lacoste Local presence transactions: acquisition ̵ CEO (since 2001) ̵ Partner ̵ Comex Partner in Germany and Spain with 2 FTEs financing, refinancing, growth ̵ 28 years (since 2012) (since 2008) in the industry ̵ 25 years ̵ 17 years in portfolio in the industry in the industry management • Portfolio diversification by issuer, sector, country Private Debt Activities Cumulative AUM
• Full debt offering: mezzanine, Current fundraising: unitranche, senior loans, €900m Senior Debt Direct Lending corporate loans, leasing €2.7bn • Buy & Hold strategy Corporate Loans Asset Finance
Selected Operations Key Indicators
Investments >180
Ticket size €1-50m
Full Year 2017 Results 71 Idinvest: Funds of funds
Investment focus Management team
+ 2 Investment • Long-term relationships Directors / with over 150 GPs + 4 Associates & Analysts / Christophe Bavière Jean Plamondon Christophe Simon Ongoing • Small and mid-sized ̵ CEO (since 2001) ̵ Partner ̵ Comex Partner recruitment of an Investment transactions ̵ 28 years (since 2006) (since 2007) in the industry ̵ 30 years ̵ 10 years director and in the industry in the industry an Analyst • Emphasis on buyout / growth assets Private Debt Activities Cumulative AUM
• Selection of the best Primary & Secondary Funds: management teams Primary Funds Secondary Transactions 25% €2.1bn • 100% Europe Mandates: Direct Co-Investments 75%
Key Indicators
Investments >400
GP relationships >150
Ticket size Up to €50m
Full Year 2017 Results 72 Idinvest: transaction term highlights
Equity amount invested by Eurazeo: c.€230m Enterprise Value: €310m Shareholder structure post transaction:
Eurazeo will hold c.70% ownership of Idinvest
The Idinvest’s management team will retain c.30% ownership Financial terms:
Eurazeo will gradually acquire the 30% remaining shares held by Idinvest’s management over the coming years
Idinvest will retain total management autonomy and an unchanged management team
Eurazeo will invest in the funds managed by the Idinvest teams Closing expected in first half of 2018
Full Year 2017 Results 73 Detailed information on Financials – Eurazeo Capital
Change (€m) 2017 2016 2017 / 2016
Assets Under Management 4,787 3,375 +42%
Net Asset Value 4,058 2,589 +57%
Investment 1,521 537 Eurazeo share 1,411 404 # of companies 4 3
# of build-ups 4 - Divestment + Dividends 750 1,316 Eurazeo share 591 1,057 # of full exit - 1
# of partial exit 3 2
Portfolio companies (#) 15 11 As of Dec. 31
Full Year 2017 Results 75 Financials – Eurazeo Capital
Eurazeo Capital non listed
Change 2017** (€m) 2017 2016 PF* 2017/2016PF 12 months
Economic revenue 2,430 2,045 +18.8% 3 117
Economic EBITDA 339 295 429 +14.9% % margin 14% 14% 14%
Economic Net Debt 1,900 1,458 Portfolio leverage 4.0x 3.7x
(*) PF (i.e. at Eurazeo constant scope): same comparison basis versus 2017 (**) PF: portfolio companies acquired in the course of 2017 are included for 12 months, based on perimeter as of Dec. 31st, 2017
Full Year 2017 Results 76 2017 Full-Year Highlights (1/5)
Revenue (€m) Change • In 2017, Asmodee posted revenue of €442.3m, up +17% on a reported basis compared to the previous year; this growth was mainly driven by the good performance in Europe (France, the U.K. and the Nordics in particular) as also by the cards trading segment which confirmed its favorable trend in all the Group’s European countries (mainly driven by the Pokémon brand) 442 • As per Group’s activity in the US, 2017 has been a transition year marked by: (i) the reshuffling +17% of Asmodee distribution network, (ii) management strengthening and (iii) supply chain issues 377 (since resolved) • Asmodee continued the pursuit of its previously launched strategic initiatives: enhancement of its editorial contents in all regions and on all media, consolidation and launch of its US branch and the strengthening of its digital platform offering
• IFRS net revenue is €248m. Taking fully into account the sale of products temporarily CPK distributed by previous owner, revenue amount to €348m in 2017, including €96m of co-manufacturing for Mondelēz. IFRS • Successful carve-out with a fully autonomous IT system in place, outstanding service rates 248 349 and a new central team at HQ level dedicated to confectionery and chocolate brands' revival • First operational actions with new advertising campaigns for Carambar and Poulain, No comparable data in 2016 the announcement of a partnership with the French Football Federation, the launch of new SKUs under the Poulain brand • Arrival of a new CEO, Thierry Gaillard (previously Chairman and CEO of Suntory France and Belgium), early 2018
• In 2017, Desigual sales landed at €761m, -11.5% down vs the previous year mainly due to a decrease in wholesale orders in the multi-brand distribution network for both the Spring-Summer and Autumn-Winter collections and a decrease in company-owned store revenue, impacted also by the ongoing store rationalization plan 761 • This decrease is mainly driven by the performance in Europe, representing c. 90% of total group (12)% sales. Meanwhile, Latam countries (c. 3% of group sales) have closed the year with a double-digit 861 growth year on year. In terms of segments, the digital channel (c. 12% of group sales) reported single digit sales growth compared to last year • Jean-Paul Goude joined in September 2017 as new Artistic Advisor: his first capsule collection is included in the 2018 Spring-Summer collection 2017 (12 months) 2016 (12 months) Full Year 2017 Results 77 2017 Full-Year Highlights (2/5)
Revenue (€m) Change
• Revenue of €2,214.9mn, up +46%, driven by the acquisition of Berendsen 2,215 • EBITDA margin improvement in all geographies and strong increase in headline net result +46% • A year marked by major acquisitions, which accelerated the Group’s international expansion 1,513 • Proposal of a payment of €0.37 per share, stable vs last year
• Revenue of €2,412m, up +12% on reported basis, +13.5% YoY at constant exchange rates with organic growth of +3.4%. The significant increase in Group revenues was the result of positive rental day volume growth across all the Group’s key markets • Excluding the impact of New Mobility and the Buchbinder acquisition, 2,412 Adjusted Corporate EBITDA increased by +8.1% at constant exchange rates to €273m in 2017 +12% • Net income of €61m, resulting from higher non-recurring expenses, higher net financing costs 2,151 and a more normative income tax rate • The board of Directors has decided to recommend the payment of a dividend of approximately €0.15 per share for 2017 representing 40% of the Group’s net income.
• Revenue of €267.8m in 2017, up +24.0% vs 2016 • Solid performance, both in Tax Free and in Dynamic Currency Conversion, driven by robust underlying market trends since the beginning of the year in the tourism industry in Europe 268 as well as ongoing sales dynamism +24% • Successful refinancing of the company in December 2017 216 • Strong M&A activity in Q4 2017, with two acquisitions completed: GB Tax Free (#3 tax free player in the UK) and Planet Payment (leading DCC and processing payment specialist in the US), strengthening Fintrax payments business and developing its international network
2017 (12 months) 2016 (12 months) Full Year 2017 Results 78 2017 Full-Year Highlights (3/5)
Revenue (€m) Change • In 2017, Iberchem recorded net sales of €125.8m, up +13.7% vs the previous year on a reported basis and +15.6% at constant scope and exchange rates • Iberchem generated a double-digit growth year-on-year across both the fragrances 126 and flavors segments and in all 3 regions (EMEA, Asia and Latam) +14% • Since November 2017, an important raw materials crisis is affecting the F&F industry 111 due to several supply disruptions on key synthetic raw materials, which is expected to last until the end of the first half 2018. The Company is currently trying to mitigate the impact in cooperation with its customers
• 2017 revenue stands at €191.6m increasing by +23.5% vs the previous year on a reported basis and by +10.1% at constant FX rate and perimeter. • +12% growth in revenue in France thanks to continuous new openings and some small M&A deals (Babydoux and Campacrèches). Number of certified places up 192 by +13% in Dec-17 vs Dec-16 +24% 155 • 2 acquisitions finalized in the UK: Magic Nurseries and Kiddi Caru, creating a strong platform of 36 centers in the newly opened country. • Successful refinancing closed in July 2017, alongside our second UK acquisition
• Revenues have increased by +4.7% between 2016 and 2017 (of which +1.3% at constant scope and FX) • Performance has notably been driven by South America, EEMEA and the additives 1,683 division. Asia continued however to be impacted by the pork crisis in Vietnam +5% while Philippines and China performed well 1,608 • Neovia has remained dynamic from an external growth perspective, acquiring 5 companies over the past 12 months including Sanpo (fifth largest petfood player in China) and Epicore (a North American expert in larval feed and probiotics on the global aquaculture market) most recently
2017 (12 months) 2016 (12 months) Full Year 2017 Results 79 2017 Full-Year Highlights (4/5)
Revenue (€m) Change • In 2017, Novacap reported revenues of €895.6m, up +40.4% vs the previous year on a reported basis and +20.7% at constant scope and exchange rates • The Group’s solid growth stems from the Performance Chemicals division which benefitted from an exceptionally strong demand for its specialty solvents following several supply disruptions at its key competitors 896 • Strong M&A activity in 2017 as Novacap completed 3 significant acquisitions (PCAS, Chemoxy +40% and ID Bio) which fit in perfectly with its strategy to create a global leader in the Pharmaceutical 638 synthesis and fine specialty chemicals industry. The Company intends to continue its ambitious external growth policy in 2018 • PCAS, which remained listed on Euronext Paris, reported 2017FY net sales of €218.3m up +13.7% compared to the previous year
• Trader generated revenue of $90 million in 2017, up +13% year-on-year. The company delivered growth across all marketplaces largely driven by the impressive performance of the recreational segment – RVs - through increased adoption and new customers joining the platform. • The performance of the commercial segment, which comprises both Commercial Truck Trader $90m and Equipment Trader was also strong, in line with the recreational segment. +13% • Trader Interactive completed its carve-out from Dominion Enterprises, its previous parent company, in 2017. The Company successfully completed each of the identified separation $80m projects covering finance, IT and HR. • Trader equally made tremendous progress on its 100-day strategic plan, focused on optimization and external growth.
2017 (12 months) 2016 (12 months)
Full Year 2017 Results 80 2017 Full-Year Highlights (5/5)
Revenue (CHF m) Change • Acquisition of WorldStrides was completed on December 15, 2017.
• Eurazeo invested in partnership with Primavera Capital Group, a major China-based investment firm. Eurazeo’s total investment is $469m, representing a majority equity stake of approximately 80%.
• Headquartered in Charlottesville, Virginia, WorIdStrides provides experiential learning to over 400,000 students per year covering academic, professional, performing arts, and athletic programming.
• For the fiscal year ended June 30, 2017, the company generated over $580m in revenue and adjusted EBITDA margin of ~13%
• Adjusted revenues decreased 5.5% in 2017 compared to 2016 in a context of slightly growing prices. Revenues are adjusted to eliminate the exceptional negative impact linked with change in academic calendar.
155 • The Group continued to be impacted by the past disappointing intakes following (6)% the lack of leadership, investment and marketing & enrolment efforts over 164 the last months of previous ownership
• Sommet Education has launched significant initiatives since arrival of new management team, including the set up of new marketing and enrolment hubs (UK and China) as well as the implementation of new programs and partnerships on various campuses
2017 (12 months) 2016 (12 months)
Full Year 2017 Results 81 Detailed information on Financials – Eurazeo PME
Change (€m) 2017 2016 2017 / 2016
Assets Under Management 778 642 +22%
Net Asset Value 382 405 +13% LFL
Investment 121 147 Eurazeo share 77 103 # of companies 2 3 # of build-ups 3 - Divestment 268 46 Eurazeo share 152 35 # of divestments 2 - # of recap 2 2
Portfolio companies (#) 10 10 As of Dec. 31
Full Year 2017 Results 83 Financials – Eurazeo PME
Change 2017 ** (€m) 2017 2016 PF* 2017/2016PF 12 months
Economic revenue 1,191 1,024 +16% 1,111
Economic EBITDA(1) 151 130 144 +16% % margin 13% 13% 13%
Economic net debt 640 511 Portfolio leverage 3.9x 3.4x
(1) Consolidated portfolio companies EBITDA (*) PF (i.e. at Eurazeo constant scope): same comparison basis versus 2017 (**) PF: portfolio companies acquired in 2017 are included over 12 months, based on perimeter as of Dec. 31st, 2017
Full Year 2017 Results 84 2017 Full-Year Highlights
Revenue (€m) Change 2016* (12 months) 2017** (12 months)
1,111 +14% 973
• Main drivers of 2017 performance are (i) 3 acquisitions with strong growth 246 +45% (ii) internal growth on core business (iii) Digital activity 170 • 3 build ups closed in 2017 / +26% at constant perimeter including build-ups
202 • Acquisition of Envie de Fraise : closing October 2017 +2% 198 • Strong performance of Linvosges +7% vs N-1 offset by Saget underperformance
• Strong performance for ABL and Vignal 107 +28% • +18% at constant perimeter including build-ups 83 • New plant in China : 1st deliveries in March 2018 101 • Netwave integration completed /14% at constant perimeter including build-ups +18% • Good performance on both BUs: Network and Sources (+8% vs LY) 86 and Systems and Solutions (25% after a disappointing 2016 results)
83 • 2017 strong growth with a good contribution in France +13% +11% 75 • Acquisition of Virtua (€7m Sales) completed in Switzerland on December 22nd
• Revenue declined due to lagging export sales 64 -6% 68 • Integration of Vectec (acquired in Dec. 2016)
• Acquisition of Pyxidis (cases & trays used to transport & sterilize implant + 61 +9% instruments) : closing November 2017 56 • One other build-up under exclusivity
27 • 4 build-up acquisitions achieved since the acquisition +48% 18 • Turnover stable at constant perimeter including build-ups
99 -2% • Purchase of master franchises in the US realized 101
120 • Overperforming market each month of 2017 +3% 117 • 2 openings (1 Léon de B. and 1 Léon de Bruxelles) in 2017
Other 1 1
(*) Adjusted 2016 figures for MKDirect, Orolia, AssurCopro, Smile and In’Tech for 12 months and Colisée Exit (**) Consolidated accounts adjusted for smile and In’Tech on 12 months and exit of Colisée Full Year 2017 Results 85 Detailed information on Financials – Eurazeo Croissance
Change (€m) 2017 2016 2017 / 2016
Net Asset Value 237 244 +53%
Investment 30 39
# of companies 1 1
# of build-ups 3 -
Divestment 77 -
# of companies 1 -
Portfolio companies (#) 7* 6 As of Dec. 31
(*) Excluding ContentSquare closed in Jan. 2018
Full Year 2017 Results 87 2017 Full-Year Highlights
• €61m raised in 2017 via 2 rounds • Strong growth driven by new partnerships with luxury brands • European leader in doctors' and boutiques appointments • $397m investment from JD.com • 15 million French and Germans alongside strategic partnership on use Doctolib every month marketing, logistics & technology
• Growth acceleration notably • €58m raised in 2017 in the US (annual revenue • Key hires made at executive level +175% in Q4 17) • New logistics center opened • Over 225 new clients won in Tourcoing to absorb volume including Atos, Avis Budget growth Group, BNP Paribas, etc
• €40m raised in 2017 • Continued growth at +25% • Leading online consumer credit year-on-year platform in continental Europe • Fundraising with Nexans end • More than €500m in loans of 2017 to grow product range financed since inception • Profitability increase
• Revenue more than doubled vs. 2016 • Strong development of all business units: mining, O&G and advanced manufacturing • Successful launch of new applications: water E&P and energy storage
Full Year 2017 Results 88 Detailed information on Financials – Eurazeo Patrimoine
Change (€m, Eurazeo share) 2017 2016 2017 / 2016
Assets Under Management 366 466 (21)%
Net Asset Value 320 440 (27)%
Investment 79 129
# of companies 1 1
Divestment + Dividends 269 16
EZ share 280
# of Divestments 1 1
Portfolio companies (#) 4* 4 As of Dec. 31
(*) Excluding C2S signed in Jan. 2018
Full Year 2017 Results 90 Financials – Eurazeo Patrimoine
Change 2017 ** (€m) 2017 2016 PF* 2017/2016PF 12 months
Economic revenue 302 294 +2.7% 265 +3.8%***
103 96 76 Economic EBITDA +6.8% 34% 33% +11.2%*** 34%
Economic net debt 549 520 549 Portfolio leverage 7.2x 7.6x
(*) PF (i.e. at Eurazeo constant scope): same comparison basis versus 2017. Financials for ANF Immobilier are YTD at end of Q3, due to disposal in October 2017. Net Debt of ANF Immobilier is excluded in both 2017 and 2016 (and in the leverage). (**) PF: portfolio companies acquired in the course of 2017 are included over 12 months, based on perimeter as of Dec. 31st, 2017, excluding ANF Immobilier (***) Excluding ANF Immobilier
Full Year 2017 Results 91 2017 Full-Year Highlights
• 2017 performance in line • Strong EBITDA growth up +16% • Spin off of former solar division with expectation vs 2016, mainly fueled by topline of Fonroche group, now an • EBITDA down -3% vs 2016 growth on most geographies independent pure player in solar due to the departure of some and productivity gains energy, rebranded Reden Solar tenants on the 1st floor of CIFA 3 • Phase 1 of the capex program • Significant organic growth vs 2016: • Acquisition of CIFA 4 completed (21 hotels) almost completed, revenue up +15% in December 2017 (1,500 sqm, in line with budget and calendar • EBITDA 2017 up +12% vs 2016 100% occupied, generating • Phase 2 of the capex program due to perimeter effect and strong €640k annual rent) (28 hotels) launched in late 2017 performance of French solar plants • CIFA 3 lease-up plan on track: • New F&B offering deployment over the year ongoing negotiations with new on track: 8 hotels under franchise • Reconstruction of Porto Rico solar tenants on the 1st floor for plant following Maria hurricane c. 2,000 sqm in September 2017 • Digitalization: solid revenue • Launch of the construction growth of Paris Fashion Shops of the first solar plant in Mexico B2B online platform
Full Year 2017 Results 92 Detailed information on 2017 Full-Year Highlights
• Eurazeo Brands acquired a majority stake in partnership Transaction with Laura Slatkin, founder • Investment of US $70m*
Eurazeo Brands • $5.6bn Home Fragrance and $8.9bn fine fragrance markets invested $70m* in Sector • Premium segments growing at high single digit rates Nest Fragrances, the first portfolio • NEST is a leading premium home fragrance brand company since its Brand with omni-channel distribution launch in May 2017 • Growing fine fragrance brand sold in Sephora
• Sales Growth: +18.5% vs LY 2017 results • EBITDA Growth: +19.0 % vs LY
(*) Converted to €60m
Full Year 2017 Results 94 OTHER A long-term shareholder base and a strong corporate governance
SHAREHOLDING STRUCTURE A STRONG CORPORATE GOVERNANCE As of December 31, 2017
Treasury Stock • Separation of the roles of Chairman 4% Free float(1) and CEO 59% JC Decaux Holding 16% • Independence of the Supervisory Board: 6 independent members out of 11 (2)
Concert • Audit Committee, Finance Committee, 18% Compensation and Appointments Committee, Richardson CSR Committee family 3% • Existence of a shareholder agreement between founding families (“Concert”, former SCHP)
(1) Including 7.7% of Tikehau (2) Excluding the member of the Supervisory Board representing employees
Full Year 2017 Results 96 Financial Agenda
April 25, 2018 Annual Shareholders’ Meeting
May 3, 2018 1st Quarter 2018 Revenues
July 25, 2018 1st Half 2018 Results
November 8, 2018 3rd Quarter 2018 Revenues
Full Year 2017 Results 97 About us
EURAZEO CONTACTS RESEARCH ON EURAZEO
Investor Relations • CM-CIC David Consalvo Caroline Cohen • [email protected] • Exane BNP Paribas Raphaël Veverka + 33 (0)1 44 15 16 76
Communication • Goldman Sachs Matija Gergolet Sandra Cadiou Philip Richards • [email protected] + 33 (0)1 44 15 80 26 • HSBC Pierre Bosset
EURAZEO SHARES • Jefferies Matthew Hose
• ISIN code: FR0000121121 • JP Morgan Cazenove Christopher Brown • Bloomberg/Reuters: RF FP, Eura.pa • Indices: SBF120, DJ EURO STOXX, DJ STOXX • Kepler Cheuvreux David Cerdan EUROPE 600, MSCI, NEXT 150, LPX Europe, CAC MID&SMALL, CAC FINANCIALS • Oddo Christophe Chaput • 72,315,130 shares in circulation as of Dec. 31, 2017 • SG Patrick Jousseaume • Statutory threshold declarations 1% www.eurazeo.com
Full Year 2017 Results 98