Eurazeo SE · EURONEXT:RF
Eurazeo — Investor Presentation (May 2021)
41 slides from Eurazeo's investor presentation, May 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION May 2021
Slide 2: Agenda
EURAZEO 1 IN A NUTSHELL RECENT Agenda 2 DEVELOPMENTS LONG-TERM 3 GROWTH 4 OUTLOOK INVESTOR PRESENTATION
Slide 3: 01. Eurazeo in a nutshell
3 01. EURAZEO IN A NUTSHELL INVESTOR PRESENTATION
Slide 4: A leading high value-added European private markets investment manager
A LEADING HIGH VALUE-ADDED 4 EUROPEAN PRIVATE MARKETS INVESTMENT MANAGER ASSETS UNDER MANAGEMENT €22.7bn1 PRIVATE EQUITY PRIVATE REAL 74% of AUM2 DEBT ASSETS PRIVATE 20%2 6%2 VENTURE ACCELERATION BUYOUT FUNDS − Digital − Growth − Mid-large − Dedicated − Direct Lending − Real Estate buyout Funds and
Slide 5: Our enhanced model offers multiple benefits to our shareholders
OUR ENHANCED MODEL OFFERS 5 MULTIPLE BENEFITS TO OUR SHAREHOLDERS Sources of funds Benefits for Eurazeo Management Advantages Fees Third-party Investing management Partners Performance Fees – Additional and recurring revenues – Expanding our investment opportunities’ pipeline Investments – Access to
Slide 6: Optimized balance sheet allocation model
OPTIMIZED BALANCE SHEET ALLOCATION MODEL 6 SEED SCALE & ACCELERATE Target 3rd party in 2021-22e Eurazeo Real Estate Eurazeo PrivatePrivate Funds 100% Eurazeo Brands 100% Capital 28% 72% (2014) Capital IV Funds IV Brands Eurazeo Eurazeo Private Real(2017) Assets 100% PMEIIIIII 38% 62% Private Debt De
Slide 7: Strong growth and successful transformation
STRONG GROWTH AND SUCCESSFUL 7 TRANSFORMATION Growing … planting seeds in the asset management … most promising segments AUM (€bn) Weight of tech & healthcare in Private Equity AUM 22 43% x3 7% 8% 2017 2020 7 15% 2017 2020 Tech Healthcare INVESTOR PRESENTATION
Slide 8: ESG: a major driver of value creation
ESG: A MAJOR DRIVER OF VALUE CREATION 8 Improved Reduced risk, Access to company better a wider range performance risk/return of investors ratio INVESTOR PRESENTATION
Slide 9: Setting the ESG benchmark in our sector
SETTING THE ESG BENCHMARK IN OUR SECTOR 9 PLACING SUSTAINABILITY AND IMPACT AT THE HEART OF OUR INVESTMENT MANAGEMENT TO CREATE VALUE THE BEST-IN-CLASS THE MOST AMBITIOUS player in our industry ESG strategy A+ CLIMATE − Achieve net zero emissions by 2040 (SBTi) ON ALL RELEVANT UNPRI CATEGORIES 01. S
Slide 10: A robust financial structure is a key characteristic of Eurazeo
A ROBUST FINANCIAL STRUCTURE IS 10 A KEY CHARACTERISTIC OF EURAZEO €255 NET CASH m position1 €1.5 bn REVOLVING credit facility €3.7 bn DRY powder 1 Net cash position proforma as of March 31, 2021 INVESTOR PRESENTATION
Slide 11: 02. Recent developments
11 RECENT 02. DEVELOPMENTS INVESTOR PRESENTATION
Slide 12: 2020, a record year on all fronts
2020, A RECORD YEAR ON ALL FRONTS 12 RECORD ASSETS UNDER MANAGEMENT RECORD FUNDRAISING RECORD NET ASSET VALUE (in €bn) (in €bn) (in €/share) 85.4 80.3 21.8 18.8 2.9 +16% 2.4 +6.3% +19% 2019 2020 2019 2020 Dec. 2019 Dec. 2020 INVESTOR PRESENTATION
Slide 13: Strong momentum carried through 2021
STRONG MOMENTUM CARRIED THROUGH 2021 13 AMOUNT RAISED FROM LPS A RICH PROGRAM OF FUNDRAISING (in €bn) in 2021-22 2021 2022 2.9 Growth 2.4 Secondary fund Private debt Mid-large buyout Small-mid buyout 1.2 Digital 2019 2020 2021e Real assets 2019 2020 2021e Total YTD1 Amount to be raised Brands 1 As o
Slide 14: Strong portfolio performance
STRONG PORTFOLIO PERFORMANCE 14 OUTSIDE TRAVEL & LEISURE PORTFOLIO (excl. Travel & Leisure) Travel & Leisure Category 1-3 Category 4 CONSOLIDATED COMPANIES GROWTH COMPANIES ENCOURAGING EARLY TRENDS ECONOMIC REVENUE (LFL1) NOT CONSOLIDATED − Worldstrides: first signs of Strong recovery for summer and
Slide 15: A dynamic investment activity YTD
A DYNAMIC INVESTMENT ACTIVITY YTD 1 15 PRIVATE EQUITY: Omnichannel IP software & communication services Local payments Well-being, natural platform infrastructure beauty products 4 build-ups platform Cybersecurity Testing and Homecare Premium services certification products petfood a major build-up
Slide 16: Delivering on our accelerated exit program
DELIVERING ON OUR ACCELERATED EXIT PROGRAM 16 Syndications / Co-investments Secondary Growth − Digital marketing − Asset management − Marketing tech − Tech companies corporation company 49% 20% 100% 32% stake sold strategic sale stake sold strategic sale for €280m proceeds of 40-50% €340m €70m gross
Slide 17: 03. Long-term growth
17 LONG-TERM 03. GROWTH INVESTOR PRESENTATION
Slide 18: Eurazeo's consistent track record is a key success factor to attract LP capital
EURAZEO’S CONSISTENT TRACK RECORD IS A KEY 18 SUCCESS FACTOR TO ATTRACT LP CAPITAL C.60% EXITS BETWEEN 1.5X-3.0X COC INVESTMENT Moncler2 SIZE: 10.0x Moncler2 10.0 7.0x Moncler2 Moncler2 Asmodee 6.7 Farfetch >€150m 4.0x 4.6 4.1 4.0 4.1 Terreal Mors Smitt1 Vignal C2S 3.5x 3.5 3.5 Flexitallic 3.4 Light
Slide 19: Short-term discount to NAV widened to -20%
SHORT-TERM DISCOUNT TO NAV WIDENED TO -20%1 19 AFTER 10 YEARS OF SIGNIFICANT AND REGULAR IMPROVEMENT 3-YEAR AVERAGE SHARE PRICE DISCOUNT TO NAV SPOT (%) DISCOUNT -31% -15% -12% c.-20%1 +12% pa net, incl. dividends €85.4 €34.7 NAV/share2 Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec
Slide 20: 04. Outlook
20 04. OUTLOOK INVESTOR PRESENTATION
Slide 21: On track to double our AUM within 5-7 years
ON TRACK TO DOUBLE OUR AUM WITHIN 5-7 YEARS1 21 + POSITIVE MARKET OUTLOOK FOR PRIVATE CAPITAL DOUBLING AUM 202X + in 5-7 years ACCELERATING FUNDRAISING + SCALING UP INVESTMENT DIVISIONS 2020 + OPTIMIZING OUR BALANCE SHEET 2017 1. Announced in November 2020 INVESTOR PRESENTATION
Slide 22: Strong dynamic of exits in 2021 and 2022
STRONG DYNAMIC OF EXITS IN 2021 AND 2022 22 SUPPORTING NET ASSET VALUE GROWTH Unlocking hidden value − Rebound in PE transactions expected in 2021 from investments = following a global decline of 24% in 2020 − High asset valuations − A sale premium for high-quality A mature assets that have emerged
Slide 23: Regularly growing dividend policy
REGULARLY GROWING DIVIDEND POLICY 23 SUPPORTED BY HIGHER RECURRING REVENUES FROM ASSET MANAGEMENT (in €) +6.7% +20% CAGR 1.50 1.25 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 INVESTOR PRESENTATION
Slide 24: Key takeaways
Key 24 SCALING UP − Further fundraising OUR INVESTMENT growth in 2021-2022 DIVISIONS takeaways GROWING − Increase shareholder RECURRING remuneration / dividend EARNINGS − Ambitious exit INCREASING program in 2021 and 2022 NET ASSET − Portfolio development VALUE INVESTOR PRESENTATION
Slide 25: Appendices
25 APPENDICES INVESTOR PRESENTATION
Slide 26: Assets under management
ASSETS UNDER MANAGEMENT 26 In €m 31/12/2020 PF 31/03/2021 Change (%) vs. vs. NAV 3rd party AUM Total AUM NAV 3rd party AUM Total AUM LTM 31/12/2020 PF Private Equity, Eurazeo 4,536 8,465 13,001 4,439 9,412 13,851 26% 7% Mid-large buyout 2,523 1,226 3,749 2,542 1,406 3,949 -1% 5% Small-mid buyout 570
Slide 27: High value added: private equity 74% of AUM
HIGH VALUE ADDED: PRIVATE EQUITY 74% OF AUM 27 REAL ASSETS Real Estate PRIVATE EQUITY (€15.9BN; 74% AUM) Infrastructure − 1.7% average management fee1 − 20% performance fee PRIVATE − Fee paying AUM based on commitment DEBT Mid-large PRIVATE DEBT (€4.4BN; 20% AUM) €22.7bn2 buyout BUYOUT − 0.8% averag
Slide 28: Eurazeo's net asset value is well exposed to the most promising sectors
EURAZEO’S NET ASSET VALUE IS WELL EXPOSED 28 TO THE MOST PROMISING SECTORS Real Assets (15%) TRANSVERSAL FOCUS ON: Asset (% of NAV) Management (21%) €6.8bn1 32% TECH Others Net Asset Value Acceleration Buyout (44%) 17% HEALTHCARE (20%) 1) Assets not revalued on a quarterly basis INVESTOR PRESENTATIO
Slide 29: Continuing our fast revenue expansion from asset management
CONTINUING OUR FAST REVENUE EXPANSION 29 FROM ASSET MANAGEMENT MANAGEMENT FEES1 98 % (in €m) 243 216 186 OF AUM IN CLOSED-END FUNDS 144 +13% No risk of early redemption FY 2017 PF FY 2018 PF FRE MARGIN FY 2019 PF FY 2020 6-10 YEARS + POTENTIAL EXTENSIONS Long-term visibility 80 (in €m) +18% 70 34.0%
Slide 30: P&L, under IFRS standards
P&L, UNDER IFRS STANDARDS 30 In €m 2019 PF 2020 Fee Related Earnings (FRE) 59 70 Performance Related Earnings (PRE) 65 50 A. Contribution of the Asset Management Activity 125 120 B. Contribution of the Investment Activity 100 191 C. Contribution of portfolio companies net of finance costs 229 -139 A
Slide 31: Contribution of the asset management activity
CONTRIBUTION OF THE ASSET MANAGEMENT ACTIVITY 31 In €m 2019 PF 2020 % Management fees 216 243 +12.7% _ from 3rd party limited partners 141 163 +16.0% _ from calculated Eurazeo Investment Activity 75 80 +6.6% Operating expenses1 -156 -173 +10.8% Finance costs and other income -0.4 -0.7 n.s. Fee Relat
Slide 32: Contribution of the investment activity
CONTRIBUTION OF THE INVESTMENT ACTIVITY 32 In €m 2019 PF 2020 Capital gains or loss & other revenue1 474 633 Performance fees paid to Eurazeo Asset Management Activity -63 -48 Impairments -196 -264 Investment-related expenses -28 -37 Management fees paid to Eurazeo Asset Management Activity -75 -80
Slide 33: A European leader powered by its worldwide network
A EUROPEAN LEADER POWERED BY ITS WORLDWIDE 33 NETWORK Luxembourg Berlin London Frankfurt 11 Paris OFFICES New York Madrid internationally Seoul Shanghai 300 PARTNERS Singapore 25 NATIONALITIES at Group level* São Paulo 53% OF PORTFOLIO ECONOMIC REVENUES earned outside France Development offices Inve
Slide 34: Hidden value is materialized at exits
HIDDEN VALUE IS MATERIALIZED AT EXITS 34 NAV (IN €M) B&B MORS THE MONCLER IMV GAULT CAP VERT ELIS EUROPCAR FONCIA COLISÉE HOTELS SMITT FLEXITALLIC Exit date: TECHNOLOGIES & FRÉMONT FINANCE Exit date: Exit date: Exit date: Exit date: GROUP Dec. 2013 Exit date: Feb. 2015 June 2015 Sept. 2016 July 2017
Slide 35: A long-term shareholder base & a strong corporate governance
A LONG-TERM SHAREHOLDER BASE 35 & A STRONG CORPORATE GOVERNANCE 2.3% 3.5% 3.5% Rhône Treasury A STRONG Richardson Partners shares family CORPORATE GOVERNANCE – Separation of the roles of Chairman and CEO 16.7% Michel David-Weill – Independence of the Supervisory Concert Board: 7 independent members
Slide 36: Supervisory Board
SUPERVISORY BOARD 36 STRONG CORPORATE GOVERNANCE Michel David-Weill3 Jean-Charles Decaux3 Olivier Merveilleux Roland du Luart2-4 Anne Lalou*(3)(4) Chairman of the Supervisory Board, Vice-Chairman of the Supervisory Board du Vignaux2-3 Chairman of the Compensation Chairwoman of the CSR Committee Chai
Slide 37: People are our core asset
PEOPLE ARE OUR CORE ASSET 37 PARTNERS COMMITTEE: 20+ YEARS IN THE INDUSTRY EXECUTIVE BOARD c.300 STAFF Virginie Morgon Philippe Audouin Nicolas Huet Olivier Millet Christophe Bavière Marc Frappier Chief Executive Officer Directeur Général General Secretary Chairman of EMC1’s Senior Managing Partner
Slide 38: Financial agenda
FINANCIAL AGENDA 38 May 20, 2021 July 28, 2021 November 09, 2021 1st Quarter 2021 Half-Year 2021 3rd Quarter 2021 Revenues Results Revenues INVESTOR PRESENTATION
Slide 39: About us
ABOUT US 39 EURAZEO CONTACTS ANALYST COVERAGE INVESTOR RELATIONS Bank of America Philip Middleton Berenberg Christoph Greulich Pierre Haojing BERNARDIN PAN CM-CIC Alexandre Gérard [email protected] [email protected] Degroof Petercam Joren Van Aken +33 (0)1 44 15 16 76 +33 (0)1 44 15 89 36 Exane
Slide 40: Disclaimer
DISCLAIMER 40 CONFIDENTIALITY This presentation (the “Presentation”) has been prepared by Eurazeo. This presentation may not be distributed, published or reproduced, in full or in part, and the information contained herein must not be released by its recipients to third parties. The recipients of th
Slide 41: www.eurazeo.com
www.eurazeo.com