Wendel Se · EURONEXT:MF
Wendel — H1 2022 Earnings Presentation
31 slides from Wendel's earnings presentation, Jul 29, 2022
Slide 1: H1 2022 Results
H1 2022 Results July 29, 2022 2022 2021 1 H1 2022 results | 07.29.2022
Slide 2: 2022 Half-Year Results key highlights
2022 Half-Year Results key highlights Good start of the year across portfolio: H1 2022 consolidated sales of €4,217.5m, up 16.3% overall and 10.3% organically NAV : €165.6 per share, down 10.4% year-to-date(1) (as of June 30, 2022) • Negatively impacted by market fall, stable since end of March 31,
Slide 3: Performance of Group companies
Performance of Group companies Half-Year 2022 Figures are after IFRS 16, unless otherwise specified 3 H1 2022 results | 07.29.2022
Slide 4: Half-Year 2022 performance of Group's companies
Half-Year 2022 performance of Group’s companies Good sale growth across portfolio, partly thanks to good pricing power Organic External Sales Δ FX impact growth growth Bureau Veritas €2,693.4m +11.4% +6.5% +0.4% +4.5% Constantia Flexibles €985.2m +31.0% +22.6% +5.5% +3.0% Stahl €470.9m +12.2% +9.1%
Slide 5: Half-Year 2022 performance of Group's companies (2/2)
Half-Year 2022 performance of Group’s companies (2/2) Good levels of EBITDAs and margins EBITDA / EBIT Δ H1 2022 Margin for BVI Bureau Veritas €410.9 +8.7% 15.3% Constantia Flexibles €133.2m +34.8% 13.5% Stahl €104.5m -4.4% 22.2% Crisis Prevention Institute $26.2m +27.8% 49.7% ACAMS $8.9m(1) N/A 18.
Slide 6: Leverage of our companies overall at the end of H1 2022
Leverage of our companies overall at the end of H1 2022 Net debt to EBITDA Net debt (end of 2019 and end of June 2022(1)) (as of June. 30 2022 including IFRS 16) 1.9x The lowest level since Bureau Veritas IPO in 1.1x €1,088.8m 2007 2.0x 1.6x €392.2m Acquisition of Propak in H1 2021 1.9x 0.8x €183.8m
Slide 7: ACAMS
ACAMS Strong start to the year for ACAMS, with year-to-date revenue growth of +21.0% (organic growth: +21.1% ; FX: -0.1%) (1) ◼ Double-digit revenue growth driven in part by conference recovery and greater sales of Certifications, Memberships and Training to a few large customers ◼ Conferences gener
Slide 8: Focus on Wendel Lab to 10% of NAV exposure by 2024
Focus on Wendel Lab 5 to 10% of NAV exposure by 2024 • Investments: Funds and direct equity • Portfolio diversification +€49m €164m of new capital Total committed in H1 commitments as • High growth companies 2022 of June 2022(*) • Major technological trends and developments related to digital New de
Slide 9: Financials
Financials 9 H1 2022 results | 07.29.2022
Slide 10: Net income Group share of €479.8 million, up +265% year on year
Net income Group share of €479.8 million, up +265% year on year in millions of euros H1 2021 H1 2022 Revenue 3,626.8 4,217.5 Contribution from subsidiaries 401.5 414.1 In 2022: Financial & operating expenses and taxes (54.5) (59.3) Boosted by the capital Net income from operations (1) 347.0 354.9 ga
Slide 11: NAV of €165.6 as of June 30, 2022
NAV of €165.6 as of June 30, 2022 (in millions of euros) June 30, 2022 Listed equity investments Number of shares Share price(1) 4,850 • Bureau Veritas 160.8 million €25.4 4,078 • IHS 63.0 million $11.0 666 • Tarkett €13.0 105 Investments in unlisted assets(2) 2,968 Other assets and liabilities of W
Slide 12: Net Asset Value per share bridge year-to-date
Net Asset Value per share bridge year-to-date Q1 -11.9 % 188.1 -15.5 Q2 +1.7 % -5.2 Listed -1.6 -0.3 +1.5 -3.0 +1.5 165.6 +3.0 168.6 assets 165.8 +0.7 -0.6 Unlisted Listed Unlisted Others assets Others Dividend Share Headquarters Dividend assets assets restated paid cancellation sale NAV per share N
Slide 13: c.€1.5 bn total liquidity; no refinancing before 2026
Wendel is financed at 1.7% over 2029 in average and has no refinancing before 2026 Weighted average c.€0.8 bn cash(1) + €750m undrawn credit facility Cash available cost of bond debt: extended to July 2027 1.7% Bond maturities Average maturity: 6.9 years c.€1.5 bn total 500 liquidity Moody’s credit
Slide 14: Leverage – Net debt at low level and strong resilience of LTV
Leverage – Net debt at low level and strong resilience of LTV Improved LTV 52.0% 47.5% 36.7% 32.6%31.9% 34.4% 22.9% 12.2% 10.3% Pro forma of the BVI 6.1% 6.0% 6.2% 5.3% (1) dividend payment & the sales proceeds of Wendel Paris HQ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 €
Slide 15: Conclusion
Conclusion 15 H1 2022 results | 07.29.2022
Slide 16: H1 2022 key takeaways
H1 2022 key takeways Good start of the year across our portfolio Significant portfolio rotation and roll out of the 2021-2024 capital redeployment roadmap notably with ACAMS acquisition, gradual Wendel Lab ramp up Still some uncertainties on raw materials prices or shortages, inflationary pressures,
Slide 17: Q&A session
Q&A session 17 H1 2022 results | 07.29.2022
Slide 18: Appendix
Appendix Financial information as of June 30, 2022 18 H1 2022 results | 07.29.2022
Slide 19: Bureau Veritas
Bureau Veritas ▪ Revenue of €2.7bn, up 11.4% year-on-year ▪ Organic growth increased by +6.5% in H1 2022, of which +5.2% in Q2, benefiting from solid market trends across most businesses despite facing the external disruption from the Russia/Ukraine war and the wave of lockdown measures across many
Slide 20: Tarkett
Tarkett Strong sales growth of +24.0% and continued increases in selling prices in H1 2022. ▪ +17.6% of organic growth (o/w +12.7% is driven by selling prices & +4.6% by volumes) ▪ +6.6% of FX thanks to the strengthening of the dollar against the Euro Adjusted EBITDA of €126.2m in H1 2022 up +12.0%
Slide 21: Constantia Flexibles
Constantia Flexibles Total growth of 31%, with record organic growth of 22.6% partly driven by price increases but also through volume growth and mix improvement ▪ Sales are up +31.0% in total over the period, driven mostly by waves of price increases necessary to compensate for the inflationary pre
Slide 22: Stahl
Stahl Sales up +12.2% with strong growth across both Coatings and Leather ▪ +9.1% organic growth, +3.1% FX impact ▪ All segments showed good performance in both quarters. ▪ Growth largely led by price/mix effects as volumes declined, notably due to (i) Chinese lockdowns, (ii) continued supply chain
Slide 23: Crisis Prevention Institute (CPI)
Crisis Prevention Institute (CPI) H1 2022 sales growth of +19.8% as compared with H1 2021 demonstrating an ongoing demand for new Certified Instructors notably in Special Topic certifications • Success of the new program launches including specialty topics such as Trauma, Autism, and Advanced Physic
Slide 24: H1 2022 performance of Group's consolidated companies
H1 2022 performance of Group’s consolidated companies Organic EBITDA, Op. profit Margin Sales Δ growth for BVI Bureau Veritas 2,693.4m +11.4% +6.5% 410.9m 15.3% Constantia Flexibles €985.2m +31.0% +22.6% €132.2m 13.5% Stahl €470.9m +12.2% +9.1% €104.5m 22.2% Crisis Prevention $52.7m +19.8% +21.2% $2
Slide 25: H1 2022 consolidated sales
H1 2022 consolidated sales in millions of euros H1 2021 H1 2022 Δ Organic Δ Bureau Veritas 2,418.4 2,693.4 +11.4% +6.5% Constantia Flexibles 752.1 985.2 +31.0% +22.6% Stahl 419.8 470.9 +12.2% +9.1% Crisis Prevention Institute 36.5 48.2 +32.2% +21.2% ACAMS (1) n/a 19.8 n/a n/a Consolidated sales (2)
Slide 26: H1 2022 sales of companies accounted for by the equity method
H1 2022 sales of companies accounted for by the equity method in millions of euros H1 2021 H1 2022 Δ Organic Δ Tarkett n.a. 1,564.0 n.a. n.a. 26 H1 2022 results | 07.29.2022
Slide 27: IFRS - Summary table of main aggregates before and after IFRS 16
IFRS 16 - Summary table of main aggregates before and after the application of IFRS 16 Sales EBITDA Net debt (in millions) H1 2021 H1 2021 H1 2022 H1 2022 H1 2022 H1 2022 H1 2021 H1 2022 before after before after before after IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 Stahl €419.8 €470.9 €107.7
Slide 28: Financial agenda
Financial agenda 28 H1 2022 results | 07.29.2022
Slide 29: Financial agenda
Financial agenda 10.28.2022 Q3 2022 Trading update - Publication of NAV as of September 30, 2022 (pre-market release) 12.01.2022 2022 Investor Day 03.17.2023 2022 Full Year Results - Publication of NAV as of December 31, 2022 (pre-market release) 04.28.2023 Q1 2023 Trading update - Publication of NA
Slide 30: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2022 H1 results presentation, to be held on July 29, 2022. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person. • No
Slide 31: For more information, please visit www.wendelgroup.com
For more information, please visit www.wendelgroup.com 31 H1 2022 results | 07.29.2022