Wendel Se · EURONEXT:MF
Wendel — ESG Presentation (June 2021)
56 slides from Wendel's sustainability presentation, June 2021
Slide 1: Wendel – ESG Roadshow Presentation June 2021
Wendel – ESG Roadshow Presentation June 2021 2021 INVESTING FOR THE LONG TERM 1 ESG Presentation| June 2021
Slide 2: Who we are
Who we are 2 ESG Presentation| June 2021
Slide 3: A strong tradition of entrepreneurship supporting long-term investing
“A strong tradition of entrepreneurship supporting long-term investing” A 316-year-old history 273 years 43 years Listed since in the steel industry of investment experience 1859 1. View of steelworks in 1866. Watercolor by Bertier. 2. François de Wendel (1778-1829). 3 ESG Presentation| June 2021
Slide 4: The strength of the Wendel model
The strength of the Wendel model Family business Network & with reference family experience shareholder Permanent A publicly listed Long term capital investment company Le Centre Pompidou-Metz 4 ESG Presentation| June 2021
Slide 5: Our positioning is unique
Our positioning is unique… Several thousand investment firms active in the world But very few… are really make additional grow their companies long term investments over time for up to 25 years 5 ESG Presentation| June 2021
Slide 6: Wendel at a glance
Wendel at a glance €9.1bn Global footprint With offices in Europe and North Gross asset value (1) America 6 ~25 Investment professionals Portfolio companies €1.8bn ~€5.0bn Total liquidity, Market capitalization including €750m of undrawn available facilities €7.5bn Consolidated turnover in 2020 Mode
Slide 7: Wendel's international reach
Wendel’s international reach Europe New York since 2013 Luxembourg since 1931 Paris 7 ESG Presentation| June 2021
Slide 8: How we do it
How we do it Control or Influence Talent Management to play our shareholder role Respect of managers role We control 2 thirds of our companies Talent diversity Wendel supports its Active involvement in strategy : International Network companies over systematic board representation time: its average
Slide 9: A Strong Track Record, Outperforming NAV Consistently
Value in NAV before sale announcement €M A Strong Track Record, Outperforming NAV Consistently Realised €M Editis Orange Nassau Energy Deutsch Exit date: Dec 09 VGG Parcours Exit date: May 08 Exit date: Apr 12 Exit date: July 15 Exit date: May 16 Net IRR: 14% Net IRR: 32% Coc : x2.3 Net IRR: 22% Net
Slide 10: Vision and Wendel's 2024 Ambition: Portfolio
Vision and Wendel's 2024 Ambition: Portfolio Redeploy capital Diversify investment portfolio Redeploy generally towards Diversify with balanced exposure to higher growth, listed and unlisted companies ESG-friendly assets Target Portfolio Build portfolio of 7-10 companies with new investments of c. €
Slide 11: Portfolio: our capital allocation strategy
Portfolio: our capital allocation strategy ▪ Balanced listed/unlisted portfolio Public and ▪ Active and influential ownership in most cases Private assets ▪ Some exposure to Growth Equity/ Late-Stage VC ▪ Resilient mainly /growing sectors with attractive long-term growth prospects Sectors ▪ Demonstr
Slide 12: Portfolio: What we are looking for
Portfolio : What we are looking for Growing, resilient with ESG potential Equity c.€150-500M over time per investment value creation Investment (smaller amounts for growth equity) Partner with like-minded management teams or co-investors EV of €350-2,500M with minimum with demonstrated track record
Slide 13: Portfolio: Wendel Lab
Portfolio: Wendel Lab …to be realized through partnering Wendel Lab objectives… with high quality players • Develop an ecosystem of innovative partners Funds of Funds to create value for our portfolio companies Funds • Build intelligence and expertise on disruptive technological and digital trends •
Slide 14: Wendel's 2024 target portfolio & returns
Wendel’s 2024 target portfolio & returns Private Equity Private Equity Listed Equity Buyout Growth Equity/ VC1 % of NAV Balanced % c. 5 to 10% Target average ~c. 10-15% (for funds) annual return Above c.7% Above c.10% Above 25% in direct investments profile 1-Including funds 14 ESG Presentation| Jun
Slide 15: Wendel's financing guidelines
Wendel's financing guidelines Maintain available liquidity to enable Wendel to seize attractive opportunities (i.e., to safely make a €300M investment at most times) Flexible financing structure that can withstand sudden, pronounced market shocks potentially resulting in capital needs at portfolio l
Slide 16: So, why invest in Wendel?
So, why invest in Wendel? Undervalued best-in-class portfolio Overall portfolio quality & Diversification Access to diversified geographies Access to unlisted assets & listed assets Long term trend exposure Mega America Clear and value creating investment North Trends IPO ESG strategy Assets TSR Hid
Slide 17: Portfolio overview
Portfolio overview 17 ESG Presentation| June 2021
Slide 18: Current Portfolio: €9.1bn of Gross Asset Value
Current Portfolio: €9.1bn of Gross Asset Value 42% Listed Asset: Controlling stake in Bureau Veritas 46% Unlisted Assets Misc. 12% Cash For new portfolio companies or reinvestment in existing portfolio €1.08bn cash / 6.8% LTV ratio 18 ESG Presentation| June 2021
Slide 19: Portfolio Structure – Unlisted Assets
Portfolio Structure – Unlisted Assets Mobile telephone Flexible packaging High-performance Manufacture & Crisis Prevention & Infrastructure in EM coatings & leather distribution of paints Training Services finishing products 4th Largest independent multinational Towerco #2 in Europe #1 worldwide in
Slide 20: COVID-19 impacts on our companies
COVID-19 impacts on our companies 2019 2020 Basis 100: January 2019 sales Crisis Prevention Institute Constantia Flexibles Before the crisis, most companies had been Progressive recovery, 180 reducing their leverage to “corporate 180 Resilience 160 reducing the gap 160 levels”, with cash on hand, 14
Slide 21: Balanced exposure to geographies and sectors
Balanced exposure to geographies and sectors % OF GROSS ASSET VALUE SECTOR EXPOSURE (1) GEOGRAPHIC EXPOSURE (1) Energy North America Telecom & 12% 14% Infrastructure Africa & other 22% Industry 25% 4% Unlisted assets 46% Health Eastern Europe 3% 2% Government, Administration & Education 5% Automotiv
Slide 22: ESG Strategy
ESG Strategy 22 ESG Presentation| June 2021
Slide 23: A formalized ESG Strategy based on measurable performance
A formalized ESG Strategy based on measurable performance A two-pillar strategy A 3-year roadmap 4 thematic priorities ▪ ESG at Wendel ▪ Commitments ▪ Climate change ▪ ESG within portfolio ▪ Objectives ▪ Gender parity & diversity companies ▪ KPIs ▪ Health & Safety of employees and consumers ▪ Sustai
Slide 24: An ESG strategy aligned with acknowledged sustainability frameworks
An ESG strategy aligned with acknowledged sustainability frameworks Defining Wendel's alignment with the following UN Sustainable Development Goals: A signatory of the United Nations' Principles for Responsible Investment (PRI), the United Nation's Global Compact and of the France Invest Parity char
Slide 25: ESG Governance at Wendel
ESG Governance at Wendel: Executive and non-Executives bodies are involved ESG Steering Committee of Wendel Established by the Executive Board Supervisory Board Composed of an Executive Board member and of the Company’s different business and support divisions David Darmon Christine Zoubeïda Boulhar
Slide 26: ESG/CSR are part of Top Management variable compensation
ESG/CSR are part of Top Management variable compensation non-financial objectives since 2018 Acceleration of the CSR strategy accounted for 22.5% weighting of non-financial objectives for Executive board variable compensation Coordination committee members (19 top managers) variable compensation is
Slide 27: We intend to disclose ESG information in compliance with leading reporting standards
We intend to disclose ESG information in compliance with leading reporting standards As a publicly-listed company, Wendel and its controlled companies publish an annual Extra- Financial Performance Declaration (EFPD), audited by an independent third-party Wendel's EFPD complies with the Grenelle 2 L
Slide 28: Extra-financial ratings and distinctions
Extra-financial ratings and distinctions Extra-financial ratings 2021/2020 2020 : Low Risk 2020 : B Score 2020: 69/100 2020: Inclusion in DJSI World 2021: AA score (consistent management Above industry (sectoral leader) Ranked #1 among and DJSI Europe with a 71 of climate change in average peers of
Slide 29: Wendel's Integration of ESG through the Investment Cycle
Wendel’s Integration of ESG through the Investment Cycle PRIOR TO INVESTMENT OWNERSHIP PHASE EXIT Investment Year 1: Valuing Screening ESG due diligence Value-creation process decision Priority Setting transformation Investment exclusion Phase 2 : Integration of due First annual Engagement Ad hoc pr
Slide 30: Exclusion Policy
Exclusion Policy In addition to refraining from investing in entities involved in the production, marketing or use of, or trade in, illegal products or activities, Wendel will also not invest in entities directly and significantly involved in the production, distribution, marketing or trading in Thi
Slide 31: ESG Performance in Wendel's portfolio - Summary
ESG Performance in Wendel’s portfolio - Summary Climate change • - 23 % of CO2 emissions • Emission reduction goal • -20 % reduction goal of • 103 % revenue increase for • 11 % drop of carbon per employee (vs. 2019) aligned of the Paris carbon emissions by 2030 online trainings, avoiding emissions r
Slide 32: ESG mindset & commitments at Wendel SE - 2020
ESG mindset & commitments at Wendel SE - 2020 32 ESG Presentation| June 2021
Slide 33: Environmental commitments
Becoming an exemplary ESG leader for peers and portfolio companies – Environmental commitments E Upholding the highest standards in environmental management S • Yearly disclosing of our carbon footprint (scope 1, 2 and 3 calculation) G • 100% renewable energy contract for Paris and Luxembourg office
Slide 34: Social & Societal commitments
Becoming an exemplary ESG leader for peers and portfolio companies – Social & Societal commitments E S Acting as a responsible employer and citizen G • Encouraging professional development and fulfillment – 100% employees receive a 360° evaluation and a skills development plan and 98% benefitted fro
Slide 35: Governance commitments
Becoming an exemplary ESG leader for peers and portfolio companies - Gouvernance E S G Promoting healthy governance and robust business ethics • Fostering a culture of ethics among teams – 94% employee signatures of our code of ethics and 98% people trained in business ethics in 2020 • A balanced po
Slide 36: Development of internal policies and processes to support our commitment
Development of internal policies and processes to support our commitment Code of ethics Tax policy Human Portfolio review of ESG resources policies maturity Foster our culture of Support worklife balance Provide tailored support for Recall our commitment transparency and sound (Remote work, Right to
Slide 37: Solidarity actions in the context of the COVID-19 health crisis
Solidarity actions in the context of the COVID-19 health crisis As a show of solidarity, members of the Executive Board and the Supervisory Board gave up 25% of their 2020 fixed compensation for three months. This amount will be injected into Wendel's endowment fund to finance philanthropic causes.
Slide 38: Questions & Answers
Questions & Answers 38 ESG Presentation| June 2021
Slide 39: Appendix
Appendix 39 ESG Presentation| June 2021
Slide 40: Wendel Value creation model
Wendel Value creation model 40 ESG Presentation| June 2021
Slide 41: Supervisory Board – composition before the Shareholders' Meeting
Supervisory Board – composition before the Shareholders’ Meeting Priscilla de Moustier Jacqueline Nicolas ver Hulst Gervais Pellissier Guylaine Saucier Tammenoms Bakker Chairman Vice-President Chair of the Audit, Risks and Chair of the Governance independent member Lead Member Compliance Committee a
Slide 42: A formalized ESG Strategy
A formalized ESG Strategy Each portfolio company now establishes a 2023 ESG Roadmap highlighting commitment and progress around the 4 key ESG thematics prioritized by Wendel. 42 ESG Presentation| June 2021
Slide 43: 2023 ESG Roadmap: Be a role model
2023 ESG Roadmap Be a role model – Empower excellence and engagement 43 ESG Presentation| June 2021
Slide 44: 2023 ESG Roadmap: Be a role model
2023 ESG Roadmap: Be a role model – Empower excellence and engagement 44 ESG Presentation| June 2021
Slide 45: 2023 ESG Roadmap: Building sustainable companies
2023 ESG Roadmap: Building sustainable companies 45 ESG Presentation| June 2021
Slide 46: 2023 ESG Roadmap: Building sustainable companies
2023 ESG Roadmap: Building sustainable companies 46 ESG Presentation| June 2021
Slide 47: 2023 ESG Roadmap: Building sustainable companies
2023 ESG Roadmap: Building sustainable companies 47 ESG Presentation| June 2021
Slide 48: Main risks identified at Wendel level
Main risks identified at Wendel level 48 ESG Presentation| June 2021
Slide 49: Additional information about controlled Companies
Additional information about controlled Companies 49 ESG Presentation| June 2021
Slide 50: Bureau Veritas – value creation model
Bureau Veritas – value creation model 50 ESG Presentation| June 2021
Slide 51: Constantia Flexibles value creation model
Constantia Flexibles value creation model 51 ESG Presentation| June 2021
Slide 52: ESG Presentation| June 2021
52 ESG Presentation| June 2021
Slide 53: ESG Presentation| June 2021
53 ESG Presentation| June 2021
Slide 54: ESG Presentation| June 2021
54 ESG Presentation| June 2021
Slide 55: To find out more, visit our revamped ESG webpage
To find out more, visit our revamped ESG webpage https://www.wendelgroup.com > ESG section 55 ESG Presentation| June 2021
Slide 56: ESG Presentation| June 2021
56 ESG Presentation| June 2021