Slide 1: Full-Year 2020 results
Full-Year 2020 results 2021 March 18, 2021 INVESTING FOR THE LONG TERM 1 2020 FY Results | March 18, 2021
Slide 2: 2020 in Brief
2020 in Brief Demonstrated portfolio resilience during an unprecedented crisis Preserved intrinsic shareholder value & potential value creation opportunities Emphasized Engagement & ESG Able to capitalize on solid financial structure, €1.8bn liquidity and modest overall leverage at Wendel and portfo
Slide 3: 2020: A tale of two halves
2020: A tale of two halves H1: Covid 19 outbreak / H2: Gradual end of lockdowns / Global lockdown of major economies Managed reopenings Focused on preserving value against precipitous Moved towards the rebound phase from Q3: declines in revenues and profits at many companies: • Portfolio companies t
Slide 4: 2020 key highlights
2020 key highlights Wendel Full disposal of Allied Universal and Tsebo Wendel office footprint rightsized Wendel Lab: additional capital committed to top quality funds ESG acceleration and extra-financial ratings improved Dividend maintained Executive Board reappointed Portfolio COVID-19 crisis: all
Slide 5: Full-Year 2020 key figures: Good financial performance
Full-Year 2020 key figures: Good financial performance NAV : €159.1 per share, down only 4.3% YoY (as of December 31, 2020) Consolidated sales of €7.5bn, down 8.0% overall of which -5.4% organically Consolidated net loss of €231m (€264m Group share) Proposed dividend for 2020 of €2.9 per share, up 3
Slide 6: Preserved solid financial structure and strong liquidity
Preserved solid financial structure and strong liquidity Modest LTV Ratio : 6.2% Corporate cash balance : €1.08 billion Total liquidity of €1.8bn €750m RCF available, fully undrawn Solid dual credit ratings : BBB & Baa2 Long debt tenure: 4.5 years, no maturity before 2023 As of December 31, 2020 6 2
Slide 7: Major improvements in extra-financial ratings and distinctions in 2020
Major improvements in extra-financial ratings and distinctions in 2020 Extra-financial ratings 2020 2019: 1st assessment with a AA score Low Risk B Score 69/100 58 score (sectoral leader) Ranked #1 among (consistent management 2020: Inclusion in DJSI World peers of similar market of climate change i
Slide 8: 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 9: NAV discount remains high vs. historical data
NAV discount remains high vs. historical data A high discount despite : Comparably lower leverage at Wendel SE and portfolio -10,0% Last 10 years levels average discount: An overall financially -28.5% -20,0% resilient and refocused portfolio Stable dividend payment in -30,0% spite of the COVID crisi
Slide 10: Performance of Group companies
Performance of Group companies FY 2020 Figures include IFRS 16, unless otherwise specified 10 2020 FY Results | March 18, 2021
Slide 11: COVID-19 crisis managed successfully
COVID-19 crisis managed successfully : Bureau Veritas posted resilient performance with dynamic rebound in H2 Stahl protected its margins and cash, thanks to strong cost management Constantia Flexibles maintained its activity level & improved its profitability, despite harsh environment in key emerg
Slide 12: Bureau Veritas
Bureau Veritas ▪ Revenues of €4.6bn, down 9.8% year-on-year, ▪ Organic growth reached -6.0%, and -2.0% in Q4 o Marine & Offshore delivered organic growth of +2.2% o Agri-Food & Commodities, Buildings & Infrastructure, Certification and Industry showed a good level of resistance overall, down 5.1% or
Slide 13: COVID crisis managed successfully
COVID 19 crisis managed successfully : Bureau Veritas posted resilient performance with dynamic rebound in H2 Stahl protected its margins and cash, thanks to strong cost management Constantia Flexibles maintained its activity level & improved its profitability, despite harsh environment in key emerg
Slide 14: Monthly sales analysis: impact of COVID-19 on unlisted companies
Monthly sales analysis: impact of COVID-19 on our consolidated unlisted companies 2019 2020 Basis 100: January 2019 sales Constantia Flexibles Crisis Prevention Institute 180 180 Resilience 160 160 Progressive recovery, 140 140 reducing the gap 120 120 100 100 80 80 60 60 40 40 20 20 - Jan Feb Mar A
Slide 15: IHS Towers
IHS Towers Total growth of +14.0% (1) reflecting the critical nature of IHS activity despite challenging global macro environment ▪ +16.3% organic growth driven by new tenancies, new lease amendments), price escalation mechanisms as well as the positive impact of reset mechanisms related to the deva
Slide 16: Stahl
Stahl Sales down 17.2% (-14.3% organic, -2.9% FX) impacted by COVID-19 mostly in Q2, with return to organic growth in Q4. ▪ Stahl began 2020 with positive volume and sales trends. In Q1, limited impact of COVID-19 outbreak, mainly in China, resulted in a contained sales drop of -2.4%. ▪ Q2 global lo
Slide 17: Constantia Flexibles
Constantia Flexibles Resilient activity in 2020 (-0.4% organically YoY), with a good performance in Europe, emerging countries being impacted by lockdowns (-1,9% total growth, +0.4% scope effect, -1.9% FX) ▪ Very robust performance from the Pharma end market, up +6.3 % but decline in the Consumer en
Slide 18: Cromology
Cromology Revenue down -6.0% in 2020 due to extreme lockdown conditions in March-April in Europe, followed by a strong rebound in activity since mid-May. Back to positive organic growth in H2 2020. ▪ Sales down -6.2% organically. ▪ Near complete shutdown of activity over the 2-month lockdown in Euro
Slide 19: Crisis Prevention Institute (CPI)
Crisis Prevention Institute (CPI) Revenue down –27.3% in 2020 due to the impact of the COVID-19 crisis and associated economic lockdowns and social distancing restrictions ▪ Since a low point in April (revenue down by c.55% in Q2) during full shutdowns, the activity progressively recovered thanks to
Slide 20: Modest leverage at the end of 2020
Modest leverage at the end of 2020 No cash injected into our portfolio companies over the course of 2020 Net debt to Net debt to Net debt to Net debt EBITDA(1) EBITDA(1) EBITDA(1) (as of December, (as of Dec. 31, 2019) (as of June 30, 2020) (as of December 31, 31, including IFRS 2020) 16) Bureau Ver
Slide 21: Wendel financials
Wendel financials Full-Year 2020 21 2020 FY Results | March 18, 2021
Slide 22: Consolidated sales down 5.8% organically, with Q4 only down -1.0%
Consolidated sales down 5.8% organically, with Q4 only down -1.0% Consolidated sales (in €m) Net income from operations (in €m) (1) -8.0% -29.6% primarily mirroring Bureau Veritas 8,110.5 Organic -5.8% 7,459.2 Scope +0.5% 449.7 Bureau Veritas -36.6% FX -2.7% Other companies +14.4% and disposals 316.
Slide 23: Net loss Group share of €264.1 million
Net loss Group share of € 264.1 million in millions of euros 2019 2020 Contribution from subsidiaries 589.5 430.7 Financial & operating expenses and taxes (139.8) (114.2) In 2019: • €644m gain on sale of Net income from operations (1) 449.7 316.5 Allied Universal Non-recurring income 442.2 (105.7) I
Slide 24: Net Asset Value & Return to Shareholders
Net Asset Value & Return to Shareholders 24 2020 FY Results | March 18, 2021
Slide 25: Adjustments to NAV methodology implemented as of Dec. 31, 2020
Adjustments to NAV methodology implemented as of Dec. 31, 2020 No significant impact(1) on NAV as of December 31, 2020 (+0.3%) 2021 main updates concern unlisted assets Primarily valued with peers multiples sample, reviewed annually Transaction multiples and purchase offers may be used with applicat
Slide 26: Net Asset Value bridge for 2020
Net Asset Value bridge for 2020 -2.6 % -4.3 % 166.3 -15.1 +11.7 -1.4 +2.8 161.9 -10.4 +11.2 159.1 -2.2 138.6 Exc. Unlisted Others dividend Bureau Assets (1) Bureau payment Veritas Unlisted Assets Others Veritas NAV per share NAV per share NAV per share Pro forma as of as of as of NAV per share Dec.
Slide 27: NAV of €159.1 as of December 31, 2020
NAV of €159.1 as of December 31, 2020 (in millions of euros) Dec. 31, 2020 Listed equity investments Number of shares Share price(1) 3,599 • Bureau Veritas 160.8 million €22.4 3,599 Investments in unlisted assets(2) 3,910 Other assets and liabilities of Wendel and holding companies(3) 74 Cash and ma
Slide 28: Leverage – Net debt at low level and strong resilience of LTV
Leverage – Net debt at low level and strong resilience of LTV Improved LTV Strong resilience of LTV 47.5% 52.0% in spite of Covid-19 crisis 36.7% 32.6% 31.9% 34.4% 22.9% 12.2% 6.1% 6.0% 6.2% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 € billion Net debt at a low level 4.5 4.1 3.3 3.2 3.4
Slide 29: Dividend
Dividend • Proposing a €2.90 per share dividend, up 3.6% 2.90 € 2.80 € 2.80 € 2.65 € Dividend increasing year on year 2.35 € 2.15 € 2.00 € 1.85 € 1.75 € 1.25 € 1.30 € 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 In euros per share, ordinary dividend The 2011 ordinary dividend included an e
Slide 30: 2024 Roadmap & Investment strategy
2024 Roadmap & Investment strategy André François Poncet, Group CEO David Darmon, Group Deputy CEO LONG-TERM INVESTOR 30 2020 FY Results | March 18, 2021
Slide 31: A refocused portfolio, poised for further redeployment
A refocused portfolio, poised for further redeployment Beginning of 2018(1) Wendel as of end-2020 13 companies in portfolio: 6 companies in portfolio: o/w 7 assets with equity valuations below €200m ~€650 million Refocused on larger assets returned to shareholders +Saint-Gobain over the last 3 years
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 36 2020 FY Results | Mar
Slide 37: 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 38: Key takeaways
Key takeaways LONG-TERM INVESTOR 38 2020 FY Results | March 18, 2021
Slide 39: Wendel is well positioned to seize further opportunities
Wendel is well positioned to seize further opportunities Resilient overall portfolio stability with significant exposure to beneficiaries from ESG tailwinds € Moderate leverage at corporate & portfolio company levels Roadmap to redeploy capital Opportunity to embed ESG deeply into the firm, for comp
Slide 40: Q&A session
Q&A session 40 2020 FY Results | March 18, 2021
Slide 41: Appendix 1
Appendix 1 41 2020 FY Results | March 18, 2021
Slide 42: Improved debt profile as of December 31, 2020
Improved debt profile as of December 31, 2020 €1.08 bn cash + €750m undrawn credit facility Oct. 2024 Weighted average cost of bond debt: 2.09% Average maturity: 4.5 years 500 500 €1.8 bn total liquidity 300 300 Moody’s credit rating: Baa2/stable Since September 5, 2018 S&P credit rating: BBB/stable
Slide 43: 2020 performance of Group's main unlisted companies
2020 performance of Group’s main unlisted companies EBITDA, Op. profit Organic Margin Sales Δ for BVI, growth EBIT for IHS(1) Bureau Veritas 4,601.0 -9.8% -6.0% €615.0 13.4% Constantia Flexibles €1,505.3m -1.9% -0.4% €189.4m 12.6% Crisis Prevention $63.8m -27.3% -27.3% $26.1 40.9% Institute IHS $1,4
Slide 44: 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 45: Appendix 2
Appendix 2 Financial information as of Dec. 31, 2020 45 2020 FY Results | March 18, 2021
Slide 46: FY 2020 consolidated sales
FY 2020 consolidated sales in millions of euros 2019 2020 Δ Organic Δ Bureau Veritas 5,099.7 4,601.0 -9.8% -6.0% Constantia Flexibles 1,534.3 1,505.3 -1.9% -0.4% Cromology 667.8 627.6 -6.0% -6.2% Stahl 808.7 669.4 -17.2% -14.3% CPI n.a. 56.0 n.a. -24.9% Consolidated sales 8,110.5 7,459.2 -8.0% -5.8%
Slide 47: FY 2020 sales of companies accounted for by the equity method
FY 2020 sales of companies accounted for by the equity method in millions of euros 2019 2020 Δ Organic Δ IHS 1,099.7 1,231.2 +12.0% +16.3% 47 2020 FY Results | March 18, 2021
Slide 48: IFRS summary table before and after IFRS 16
IFRS 16 - Summary table of main aggregates before and after the application of IFRS 16 Sales EBITDA (EBIT for IHS) Net debt (in millions) FY 2019 FY 2019 FY 2020 FY 2020 FY 2020 FY 2020 FY 2019 FY 2020 excluding including excluding including excluding including IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 1
Slide 49: Net income from operations
Net income from operations In millions of euros 2019 2020 Bureau Veritas 477.7 302.8 Stahl 94.3 78.3 Constantia Flexibles 44.2 49.5 Cromology -19.2 15.6 Tsebo -9.2 -7.6 CPI - -2.6 Allied Universal (equity accounted) 58.5 - Dividend from Saint-Gobain 4.1 - IHS (equity accounted) -60.9 -5.3 Total cont
Slide 50: Consolidated income statement
Consolidated income statement In millions of euros 2019 2020 Net sales 8,110.5 7,459.2 Other income from operations 16.4 6.2 Operating expenses -7,358.8 -6,940.3 Net gain (loss) on sale of assets -3.4 -29.6 Asset impairment -29.7 -170.5 Other income and expenses -9.3 -24.6 Operating income 725.7 300
Slide 51: Consolidated balance sheet
Consolidated balance sheet In millions of euros 12/31/2020 12/31/2019 In millions of euros 12/31/2020 12/31/2019 Share capital 178.9 178.7 Goodwill 3, 488.6 4,112.0 Premiums 55.,3 53.3 Intangible assets, net 1,692.3 1,769.0 Retained earnings & other reserves 2,033.6 1,791.5 Property, plant & equipme
Slide 52: Conversion from accounting presentation to economic presentation
Conversion from accounting presentation to economic presentation Equity- Wendel Bureau Constantia method Group (in millions of euros) Cromology Stahl Tsebo CPI holding Veritas Flexibles investments total companies IHS Net income from operations Net sales 4 601,0 1 505,3 627,6 669,4 - 56,0 7 459,2 EB
Slide 53: Financial agenda
Financial agenda 53 2020 FY Results | March 18, 2021
Slide 54: Financial agenda
Financial agenda 04.28.2021 Q1 2021 Trading update / Publication of NAV as of March 31, 2021 (pre-market release) 06.29.2021 Annual General Meeting 07.29.2021 H1 2021 results / Publication of NAV as of June 30, 2021, and condensed Half-Year consolidated financial statements (pre-market release) 10.2
Slide 55: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2020 annual results presentation, to be held on March 18, 2021. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person.
Slide 56: 2020 FY Results | March 18, 2021
56 2020 FY Results | March 18, 2021