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Wendel — Investor Day (December 2012)
24 slides from Wendel's investor day presentation, Dec 6, 2012
Slide 1: Investor Day
December 6, 2012 Investor Day Frédéric Lemoine & Bernard Gautier
Slide 2: 2012 key achievements
2012 key achievements Sale of Deutsch in North America Announced investment in IHS in Africa (closing 2013) Didier Michaud-Daniel, new CEO of Bureau Veritas 2% of capital cancelled S&P rating upgraded to "BB, stable outlook” Investor Day 2012 – December 6 2
Slide 3: 2012 financial achievements
2012 financial achievements New financings & maturities extended Debt further repaid & bond buyback Sound cash position Investor Day 2012 – December 6 3
Slide 4: Net Asset Value & Shareholder Return
Net Asset Value & Shareholder Return
Slide 5: NAV of €106.7 as of November 27, 2012
NAV of €106.7 as of November 27, 2012 (in millions of euros) 11/27/2012 8/21/2012 Listed equity investments Number of shares (millions) Share price(1) 7,712 6,898 • Bureau Veritas 56.3 €83.0 4,672 4,103 • Saint-Gobain 91.7 €28.5 2,612 2,409 • Legrand 14.4 €29.6 428 385 Unlisted equity investments (M
Slide 6: Share performance & total shareholder return
Share performance & total shareholder return Share price rebased on Wendel price as of 11/27/2011 75,0 70,0 Wendel: +52.8% 65,0 60,0 55,0 CAC 40: +16.2% 50,0 45,0 40,0 Share price performance Total Shareholder Return (annualized) November 27, 2012 12 months Since 2002 (*) 12 months Since 2002 (*) We
Slide 7: Wendel's growth strategy
Wendel's growth strategy
Slide 8: Wendel's objectives in the medium term
Wendel’s objectives in the medium term Creating value from existing investments, over the long term Access to financing, at favorable pricing and maturity terms Increasing proportion of unlisted assets through new investments and diversification 8 Investor Day 2012 – December 6 8
Slide 9: Current portfolio
Current portfolio
Slide 10: Wendel Group Structure – Listed assets
Wendel Group Structure – Listed assets 17,5% Coté 50.8% 17.3% 5.5% World leader World leader World leader in compliance in habitat and in products and and certification construction systems for service electrical installations Investor Day 2012 – December 6 10
Slide 11: Wendel Group Structure – unlisted assets
Wendel Group Structure – unlisted assets 75.5% 91.5% 100% 100% 95% 98% 28.4% >25%* 8% Before dilution from financial instruments giving access to share capital * Subject to customary closing conditions and the definitive completion of the acquisition of telecom towers from MTN in Côte d’Ivoire and C
Slide 12: Strong presence in emerging markets
Strong presence in emerging markets IHS* Stahl Bureau Veritas Chryso Parex 100% 63% 47% 53% 44% 49% Legrand Mecatherm Saint-Gobain Kerneos Materis Paints 8% 33% 38% 38% 33% 19% Exposure to emerging countries as of end of H12012. 2012e for Legrand. Saint-Gobain: 33% figure is excluding Distribution &
Slide 13: Performance drivers of Group companies
Performance drivers of Group companies Good organic growth Dynamic external growth Pricing power Reactivity Investor Day 2012 – December 6 13
Slide 14: A strong financial structure
A strong financial structure
Slide 15: Steady reduction in debt since 2009
Steady reduction in debt since 2009 Gross debt reduced by €4.2bn, Improved coverage of financial down 50% costs by dividends received €8,445M* 2009 2012e 2,098 c.-10 €4,170M* 3,506 250 831 2,841 3 089 * includes accrued interest Financial expenses - Dividends received (M€) Start of 2009 27/11/2012 B
Slide 16: Maintaining a strong liquidity to seize opportunities
Maintaining a strong liquidity to seize opportunities €1 billion in cash €2.1 billion in undrawn credit lines Good interest coverage Investor Day 2012 – December 6 16
Slide 17: Good market access
Good market access Average maturity remains long, thanks to efficient debt roll over No maturities before September 2014 Stable LTV ratio < 35%, in the coming 4 years Investor Day 2012 – December 6 17
Slide 18: Looking forward: investment strategy
Looking forward: investment strategy
Slide 19: Wendel's investment strategy
Wendel's investment strategy Two paths, many destinations €200 – 500M Up to €200M of equity per investment of equity per investment In geographic regions All geographic regions well known to Wendel (Germany, Benelux, North America and France) High growth, diversification and Large investments with l
Slide 20: Wendel's new investments: key priorities
Wendel's new investments: key priorities Unlisted companies Exposure to new economies Benefiting from long-term economic trends Control / co-control, working with management, both strategically and operationally Moderate financial leverage Investor Day 2012 – December 6 20
Slide 21: Why invest in Africa ?
Why invest in Africa ? Superior GDP growth Strong demographics Dynamic infrastructure markets Geographical & cultural proximity Investor Day 2012 – December 6 21
Slide 22: Wendel to invest c. 125M$ in IHS through Oranje-Nassau Développement
Wendel to invest c. 125M$ in IHS through Oranje-Nassau Développement Mobile Networks key to African development Pan-African Company Existing first-tier shareholders Scalable investment Investor Day 2012 – December 6 22
Slide 23: Investment in IHS ticks all boxes
Investment in IHS ticks all boxes Unlisted companies Exposure to new economies Benefiting from long-term economic trends Control / co-control, working with management, both strategically and operationally Moderate financial leverage Investor Day 2012 – December 6 23
Slide 24: Disclaimer
Disclaimer • This document has been prepared by Wendel S.A. (“Wendel”). This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person. • No representation or warranty, express or implied, is made as to the fairness, accu