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Grape Hospitality, in Eurazeo Patrimoine; 2016 REGISTRATION DOCUMENT ANNUAL FINANCIAL REPORT WorldReginfo - 321d6de1-255a-4acb-bdbe-cf78fdd3a56d CONTENTS Joint interview Michel David-Weill & Patrick Sayer 3 4.3 Consolidated Statement of Other Comprehensive Income 225 4.4 Consolidated Statement of Changes in Equity 226 4.5 Consolidated Statement of Cash Flows 228 1 4.6 Notes to the Consolidated Financial Statements 230 4.7 Statutory Auditors’ report on the consolidated financial PRESENTATION OF THE GROUP statements 296 1 Page 8 1.1 Our investment activity - We Invest 9 5 1.2 Our transformation activity - We Accelerate 23 COMPANY FINANCIAL STATEMENTS 1.3 Our progress - We Move 55 1 Page 299 1.4 Our results - We Deliver 67 1.5 Our governance approach - We Drive 87 5.1 Balance sheet 300 1.6 Other Management Report information 101 5.2 Income statement 302 5.3 Notes to the Company financial statements 303 5.4 Statutory Auditors’ report on the financial statements for the year ended December 31, 2015 329 2 5.5 Five-year financial summary (Article R. 225-102 of the French Commercial Code) 331 EURAZEO’S CORPORATE SOCIAL 5.6 Supplier settlement periods 332 RESPONSIBILITY 1 Page 111 2.1 CSR in the investment policy 112 6 2.2 Progress and highlights of the year 117 INFORMATION ON THE COMPANY AND 2.3 Social information 125 2.4 Environmental information 131 THE SHARE CAPITAL 1 2.5 Societal information 140 Page 335 2.6 Methodology 145 6.1 Information on the Company – Bylaws 336 2.7 Report of one of the Statutory Auditors designated as 6.2 Information on the share capital 342 independent third-party, on the consolidated social, environmental and societal information presented in the 6.3 Shareholding structure 345 Management Report 147 6.4 Shareholders’ agreements 348 6.5 Transactions in the Company’s shares 352 6.6 Factors affecting a potential takeover bid 355 3 6.7 Additional information 357 GOVERNANCE 1 Page 153 7 3.1 Management and supervisory bodies 154 SHAREHOLDERS' MEETING 3.2 Compensation and other benefits received by corporate 1 officers 179 Page 361 3.3 Interests held by members of the Supervisory and Executive 7.1 Special Report on share subscription and purchase options Boards in the Company’s share capital and transactions in (Article L. 225-184 of the French Commercial Code) 362 the Company’s shares by members of the Supervisory and Executive Boards 197 7.2 Special Report on the grant of free shares prepared in accordance with Article L. 225-197-4 of the French 3.4 Risk management, internal control and main risk factors 199 Commercial Code 368 3.5 Report by the Chairman of the Supervisory Board on the 7.3 Agenda 371 composition, the conditions of preparation and organization of the Board’s work and the internal control 7.4 Draft resolutions 387 and risk management procedures implemented 7.5 Observations of the Supervisory Board on the Executive by Eurazeo 214 Board’s report 406 3.6 Statutory Auditors’ report, prepared in accordance with 7.6 Statutory Auditors’ special report on regulated agreements Article L. 225-235 of the French Commercial Code on the and commitments 407 report prepared by the Chairman of the Supervisory board 7.7 Other Special Reports of the Statutory Auditors 415 of Eurazeo SA 218 3.7 Commitments under co-investment plans 219 CROSS-REFERENCES TABLES 1 Page 418 4 Registration Document cross-reference table 418 CONSOLIDATED FINANCIAL Annual Financial Report cross-reference table 420 Executive Board’s report cross-reference table 421 STATEMENTS Corporate Social Responsibility and environmental information 1 cross-reference table 422 Page 221 4.1 Consolidated Statement of Financial Position 222 4.2 Consolidated Income Statement 224 WorldReginfo - 321d6de1-255a-4acb-bdbe-cf78fdd3a56d 2016 REGISTRATION DOCUMENT Annual Financial Report With a diversified portfolio of more than €6 billion in assets under management, of which €1 billion for third parties, Eurazeo is one of the leading listed investment companies in Europe. The Company covers most private equity segments through its business divisions - Eurazeo Capital, Eurazeo Patrimoine, Eurazeo PME, Eurazeo Croissance - and with the support of Eurazeo Development. Its portfolio includes around 30 companies of all sizes and from all sectors, that Eurazeo accompanies in the long term, most often as a majority or key shareholder, working with them to accelerate their transformation strategies. Eurazeo has developed an active presence in Shanghai and Sao Paulo to encourage the international development of its portfolio companies and a network of partners throughout the world. Its investment team is now also present in New York. Eurazeo is a shareholder in: • AccorHotels, Asmodee, Desigual, Elis, Europcar, Fintrax, Les Petits Chaperons Rouges, Moncler, Neovia, Novacap and Sommet Education, in Eurazeo Capital; • ANF Immobilier, CIFA Fashion Business Center, Fonroche Solaire and Grape Hospitality, in Eurazeo Patrimoine; • AssurCopro, Colisée, Dessange International, Groupe Flash, Léon de Bruxelles, MK Direct, Orolia, Péters Surgical and Vignal Lighting Group, in Eurazeo PME; • Farfetch, IES Synergy, l-Pulse, PeopleDoc, Vestiaire Collective and Younited Credit, in Eurazeo Croissance. It is also a shareholder in the management platforms, iM Square and Capzanine. These investments are assigned to the Eurazeo Development division, which is also responsible for deal sourcing activities and fund management for major international institutional investors. LABEL OR This label recognizes the most transparent Registration Documents according to the criteria of the Annual Transparency Ranking. The English language version of this report is a free translation from the original, which was prepared in French. All possible care has been taken to ensure that the translation is an accurate presentation of the original. However, as in all matters of interpretation, views or opinions expressed in the original language version of the document in French take precedence over the translation. This Document is a free translation of the Registration Document that was filed with the French Financial Markets Authority (AMF) on April 6, 2017 pursuant to Article 212-13 of its General Regulations. It may be used in support of a financial transaction if supplemented by a prospectus approved by the AMF. This document contains all information relating to the Annual Financial Report. It was drawn up by the issuer and is binding upon the persons who signed it. WorldReginfo - 321d6de1-255a-4acb-bdbe-cf78fdd3a56d 2016 REGISTRATION DOCUMENT Eurazeo 1 1 ETIEN CROISÉ 2 Eurazeo 2016 Registration Document WorldReginfo - 321d6de1-255a-4acb-bdbe-cf78fdd3a56d Joint interview JOINT INTERVIEW 1 “WE GENERATE GROWTH” 2016 Registration Document Eurazeo 3 WorldReginfo - 321d6de1-255a-4acb-bdbe-cf78fdd3a56d 1 Joint interview Michel David-Weill Chairman of the Supervisory Board Patrick Sayer Chief Executive Offi cer s we assess fi scal year 2016 and outline future prospects, Michel David-Weill and Patrick Sayer discuss the opportunities A and threats of today’s world and Eurazeo’s strengths in this new environment. Q. _Michel David-Weill, you live in be slowed down but it will continue due both France and the United States, to the lender-borrower relationship between what do you think of recent numerous countries and the US. developments in the world? Q. _Patrick Sayer, what are M. D.-W. _Today the world is reacting the consequences for Eurazeo, to two underlying and signifi cant which has just set up an investment movements. The standard of living team in the US? in emerging countries has changed quite radically in recent years. P. S. _Globalization, which relies At the same time, the arrival of new on the speed of transport and forms of business in developed countries communication resources, is an absolutely has spurred great fortunes, like in the irreversible trend, even though there may 19th century. be stages in the process. Accelerating the Now in competition with the rest growth of Eurazeo and its companies of the world, growth has been much slower necessarily entails international expansion, for the middle class, who are quite hence our presence in China, Brazil and concerned about the future. now New York, even though the world “Accelerating the is asking new questions about the US. P. S. _And so we see the rise of growth of Eurazeo protectionism, but trying to turn back the M. D.-W. _I was brought up with the and its companies clock on globalization is simply not saying “Never sell America short,” which realistic... I truly believe. The US remains a very necessarily entails vibrant economy that can accelerate international M. D.-W. _No, indeed. Mr. Trump, since Eurazeo’s growth. he is the most visible example, is above expansion.” all looking to monetize his imports. P. S. _In this context, our long-term Patrick Sayer Nevertheless, I think that globalization will objective is to better balance our portfolio between Europe and the US. Eurazeo has a place in this market. We bring our long-term capital investment practice and our rather unique vision of asset management, which appeals to many entrepreneurs. Because of our US presence, we can also assist companies that no longer wish to play the “board game” of European integration: “I’ll try Italy, then Germany, but if I fail I go back two spaces...” They thus have direct access to a market of 325 million consumers before tackling the rest of the world. Asmodee is a striking example; it also draws the greatest benefi t. M. D.-W. _ I hear investors in the US becoming interested once again in Europe. They have a lot of reasons to feel this way. 4 Eurazeo 2016 Registration Document WorldReginfo - 321d6de1-255a-4acb-bdbe-cf78fdd3a56d Joint interview JOINT INTERVIEW 1 “We generate growth and are heavily involved alongside our companies.” Patrick Sayer P. S. _We offer US companies a veritable green card to Europe, since the US funds established here are not truly European.
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