Slide 1: H1 2018 results
H1 2018 results September 6, 2018 2018 LONG-TERM INVESTOR 1 2018 H1 Results | Sept. 6, 2018
Slide 2: Half Year 2018 key figures
Half Year 2018 key figures Consolidated sales of €4.18bn, up +3.1% Consolidated net income of €115.3m, -€0.9m Group share NAV as of August 24, 2018: • €172.7 per share, up +4.2% over 12 months • LTV ratio @ 13.8% and net debt of €1.3bn(1) 2 2018 H1 Results | Sept. 6, 2018 (1) LTV & Net debt does not
Slide 3: Strong dynamic since the start of the year
Strong dynamic since the start of the year Ongoing portfolio simplification, with 3 small assets disposals Steady organic growth for almost all companies New Talents hirings & management changes • Bureau Veritas: François Chabas appointed CFO • Wendel: French investment team strenghtened (3 new inve
Slide 4: Main portfolio rotation in 2018
Main portfolio rotation in 2018 CSP Technologies sold to AptarGroup, Inc • $342m proceeds, above NAV valuation • Deal completed on August 27, 2018 Sale of Wendel’s stake in Saham group • C. €125m proceeds • Deal completion expected in H2 2018 Exclusivity granted to Unigrains for the sale of Mecather
Slide 5: Portfolio main developments
Portfolio main developments Robust H1 2018 performances • organic growth accelerating to 4.4% in Q2 • 6 acquisitions which supported 3 of the 5 Growth Initiatives EFCC released some accounts in Nigeria Allied Universal to acquire U.S. Security Associates • For approximately $1 billion • Pro forma fo
Slide 6: Performance of Group companies
Performance of Group companies Half Year 2018 6 2018 H1 Results | Sept. 6, 2018
Slide 7: H1 2018 performance of the Group's listed companies
H1 2018 performance of the Group’s listed companies • Revenue of €2.3bn, up 3.5% organically • €20.8bn in sales, good organic growth • Q2 acceleration with +4.4% organic growth • Organic growth at 4.9% (including 8.0% in the second • Growth initiatives up 6.6% organically quarter), with volumes up 2
Slide 8: H1 2018 performance of Group's main unlisted companies
H1 2018 performance of Group’s main unlisted companies Total Organic EBITDA Margin Sales growth growth EBIT for IHS IHS $554.8m +2.5% +14.0% $118.7m 21.4% Stahl €452.4m +27.7% +4.2% €105.1m 23.2% Constantia Flexibles €759.1m +3.4% +3.0% €96.0m 12.6% Allied Universal $2,723.1m +5.2% +3.6% $201.9m 7.4
Slide 9: IHS
IHS +2.5% 554.8 Strong organic growth offset by new FX conversion rate in Sales, $m 541.5 Nigeria ▪ +14% organic growth driven by the increase of owned & MLL towers (+2.4%) and price escalation mechanisms ▪ +2.5% reported growth, due to conversion of Nigerian revenues at NAFEX rate in H1 2018 (c. 36
Slide 10: Stahl
Stahl +27.7% +27.7% sales growth driven organic & external growth Sales, €m 452.4 ▪ +4.2% organic growth mainly driven by Performance 354.3 Coatings; somewhat more challenging market circumstances within the Leather Chemicals divisions ▪ +28.4% external growth reflecting the consolidation of BASF Le
Slide 11: Constantia Flexibles
Constantia Flexibles 734.3 +3.4% 759.1 +3.4% total growth: +3.0% organic growth, +4.1% scope, -2.7% Sales, €m FX impact and -1.1% IFRS 15 impact ▪ Good organic growth driven by price/mix effect (+4.6%) overcompensating volume decrease (-1.6%) ▪ Creative Polypack Ltd. (India) acquisition closed in Ap
Slide 12: Allied Universal
Allied Universal Sales, $m +5.2% 2,723.1 +5.2% total growth, due to a combination of acquisitions and 2,589.6 organic growth ▪ Organic growth of +3.6% ▪ Acquisition in February 2018 of Covenant Security and full- year impact of 2017 acquisitions EBITDA up +8.5% with growing margins ▪ Revenue growth
Slide 13: Cromology
Cromology 367.3 -7.1% -7.1% total decline in sales due to France and Italy Sales[1], €m 341.3 underperformance ▪ -5.1% organic decline mainly resulting from (i) poor market in France, (ii) sharp market decline in Italy, (iii) low DIY trading in France ▪ Paint price increases (+3.4%) have been succes
Slide 14: Oranje-Nassau Développement
Oranje-Nassau Développement Strong revenue growth of +16.2% Strong 2018 first half, in line with strong growth of 2017 EBITDA(1) up +12.7% Strong organic growth of 17.3% driven by a buoyant Positive agreement to amend & extend debt facilities machine tools market On the back of strong topline growth
Slide 15: Diversified geographic & sector exposure
Diversified geographic & sector exposure GEOGRAPHIC EXPOSURE (1) SECTOR EXPOSURE (1) Telecom & Energy Africa & other North America infrastructure 12% 20% 21% 15% Industry 7% Automotiv e & Health transportation 4% Eastern Europe 10% Gov ernment, 4% administration & education Asia Pacific 4% 20% Rest
Slide 16: Wendel financials
Wendel financial s Half Year 2018 16 2018 H1 Results | Sept. 6, 2018
Slide 17: HY 2018 consolidated results
HY 2018 consolidated results in millions of euros H1 2017 H1 2018 Contribution from subsidiaries 357.0 336.7 Financial & operating expenses and taxes -120.0 -96.4 Net income from operations (1) 237.1 240.4 Non-recurring income -24.4 -41.2 Impact of goodwill allocation -86.8 -83.8 Total net income 12
Slide 18: Net Asset Value & Return to Shareholders
Net A sset Val ue & Return to Sharehol ders 18 2018 H1 Results | Sept. 6, 2018
Slide 19: NAV of €172.7 as of August 24, 2018
NAV of €172.7 as of August 24, 2018 (in millions of euros) August 24, 2018 Investments in listed entities Number of shares Stock price(1) 4,456 • Bureau Veritas 177.2 million €22.2 3,937 • Saint-Gobain 14.2 million €36.7 519 Investments in unlisted companies & OND(2) 4,726 Other assets and liabiliti
Slide 20: Good growth in Net Asset value over the past three years
Good growth in Net Asset value over the past three years 181.3 176.4 172.9 172.7 165.8 167.3 166.9 162.0 153.9 145.8 139.6 139.5 128.2 Mar-16 May-16 Aug-16 Nov-16 Dec-16 Mar-17 May-17 Aug-17 Nov-17 Dec-17 Mar-18 May-18 Aug-18 20 2018 H1 Results | Sept. 6, 2018
Slide 21: Main changes in Net Asset Value since May 2018
Main changes in Net Asset Value since May 2018 In millions of euros 124 -104 7,993 168 182 -96 Change in Other value of 7,719 unlisted assets Change in Disposal of Change in value of Saint- CSP and value of Gobain Mecatherm Bureau Veritas NAV as of NAV as of May 2, 2018 August 24, 2018 21 2018 H1 Re
Slide 22: Debt optimization at holding company level
Debt optimization at holding company level As of Aug. 24, 2018 Gross debt reduced to €2,519m Net debt of €1.3 bn & Loan-to-value ratio Cost of bond debt reduced to 2.19% following April 2018 debt repayment 13.8% Before proceeds from Saham, Mecatherm & CSP deals Corporate credit rating by S&P: BBB-/s
Slide 23: Return to shareholders
Return to shareholders €2.65 dividend 424,197 shares per share paid in bought back in 2018 May, for a total amount of up +12.8% y-o-y €51.6m Annualized TSR since June 13, 2002 +12.9% +4.4% Euro Stoxx 50 Wendel total net return Source: FactSet, TSR calculated with respect to average last 20 trading d
Slide 24: New financial agenda for 2019
New financial agenda for 2019 From 2019, Net Asset Value will be calculated at the end of each quarter Date Event Publication November 29, 2018 2018 Investor Day Publication of NAV and trading update (pre-market release) March 21, 2019 2018 FY Results Publication of NAV as at Dec. 31, 2018 (pre-mark
Slide 25: Key takeaways
Key takeaway s 25 2018 H1 Results | Sept. 6, 2018
Slide 26: Key takeaways for the first half 2018
Key takeaways for the first half 2018 Good performance overall, thanks to a resilient & defensive portfolio A lot of actions have been taken to enhance the business profile of our companies over the last 8 months, and there is still a lot of things to do Deal flow: looking actively for targets of €2
Slide 27: Appendix: Performance of Group companies
A ppendix 1 Performance of Group companies 27 2018 H1 Results | Sept. 6, 2018
Slide 28: Saint-Gobain
Saint-Gobain Good organic growth in H1 2018 Sales, €m 20,409 +1.9% 20,787 +4.9% ▪ Organic growth at 4.9% (including 8.0% in the second like-for-like quarter), with volumes up 2.4% ▪ 4.4% negative currency impact, mainly due to the depreciation of the US dollar and of certain Asian and emerging count
Slide 29: Bureau Veritas
Bureau Veritas Sales, €m 2,360.1 -0.9% 2,338.3 +3.5% organic revenue growth with Q2 acceleration at +4.4% +6.1% ▪ Growth Initiatives up 6.6% organically, Base Business is @ constant +2.0% currency ▪ External growth +2.6% ▪ Adverse FX of -7.0% Adj. Op. Adj. Op. margin up +10bps organically, +20bps at
Slide 30: Tsebo
Tsebo Sales, $m +16.2% 312.8 Strong revenue growth of +16.2% 269.3 ▪ Organic growth (+8.9%) driven by Cleaning, Catering and Facilities Management businesses ▪ Positive scope change (+0.8%) with one acquisition in 2017 ▪ Favorable FX impact (+6.5%) as a result of the ZAR appreciation vs. the USD EBI
Slide 31: Nippon Oil Pump
Nippon Oil Pump +16.6% Strong 2018 first half, in line with strong growth of 2017 3,410 Sales, ¥m 2,924 Strong organic growth of 17.3% driven by a buoyant machine tools market ▪ Core products grew strongly due to high demand with trochoid pump sales up 15.9% and hydraulic motor sales moderately up 2
Slide 32: Appendix: Strategy
A ppendix 2 Strategy 32 2018 H1 Results | Sept. 6, 2018
Slide 33: 2017-2020 main strategic pillars unchanged
2017-2020 main strategic pillars unchanged 2. DEVELOP & 1. INVEST CRYSTALLIZE VALUE Wendel may invest ca. €3bn total equity, Continue to help the portfolio depending on markets conditions, in companies to develop with a long- Europe, Africa & North America in DOUBLE-DIGIT TSR term view: companies of
Slide 34: Key priorities
Key priorities Focus on well-known investment regions: Europe, North America and Africa • Strengthen European Investment team Concentrate on companies that move the needle • Target €200 – 700 million initial equity investments • Simplify the portfolio Develop our portfolio companies • Redeploy resou
Slide 35: Appendix: Financial information as of June 30, 2018
A ppendix 3 Financial information as of June 30, 2018 35 2018 H1 Results | Sept. 6, 2018
Slide 36: H1 2018 consolidated sales
H1 2018 consolidated sales in millions of euros H1 2017 H1 2018 Change Organic change Bureau Veritas 2,360.1 2,338.3 -0.9% +3.5% Constantia Flexibles (1) 734.3 759.1 +3.4% +3.0% Cromology (2) 367.3 341.3 -7.1% -5.1% Stahl 354.3 452.4 +27.7% +4.2% Oranje-Nassau Développement (3) 234.7 284.4 +21.2% +1
Slide 37: H1 2018 sales of companies accounted for by the equity method
H1 2018 sales of companies accounted for by the equity method in millions of euros H1 2017 H1 2018 Change Organic change Allied Universal 2,393.3 2,250.1 -6.0% +3.6% IHS 504.6 458.4 -9.1% +14.0% Oranje-Nassau Développement PlaYce 3.5 3.9 +13.4% n.a. 37 2018 H1 Results | Sept. 6, 2018
Slide 38: Net income from operations
Net income from operations In millions of euros H1 2017 H1 2018 Bureau Veritas 197.8 203.9 Stahl 42.6 57.7 Constantia Flexibles 35.4 40.9 Cromology 7.9 -4.5 Allied Universal (equity accounted) 5.7 3.6 Saint-Gobain (equity accounted) 40.7 - Dividend from Saint-Gobain 17.8 18.4 IHS (equity accounted)
Slide 39: Consolidated income statement
Consolidated income statement In millions of euros H1 2017 H1 2018 Net sales 4,050.7 4,175.4 Other income from operations 7.2 6.6 Operating expenses -3,708.1 -3,807.8 Net gain (loss) on sale of assets -0.4 -9.3 Asset impairment - -24.4 Other income and expenses -9.3 - Operating income 340.0 340.5 In
Slide 40: Consolidated balance sheet
Consolidated balance sheet In millions of euros 06/30/2018 12/31/2017 In millions of euros 06/30/2018 12/31/2017 Share capital 185.1 185.0 Goodwill 3,405.7 3,575.0 Premiums 50.9 48.7 Intangible assets, net 1,978.3 2,181.8 Retained earnings & other reserves 1,761.5 1,730.5 Property, plant & equipment
Slide 41: Conversion from accounting presentation to economic presentation
Conversion from accounting presentation to economic presentation Equity method Wendel Bureau Constantia Group (in millions of euros) Cromology Stahl OND holding Veritas Flexibles Allied total IHS companies Universal Net income from operations Net sales 2,338.3 759.1 341.3 452.4 284.4 - 4,175.4 EBITD
Slide 42: Bank and bond debt as of June 30, 2018
Bank and bond debt as of June 30, 2018 December 31, 2017 June 30, 2018 In millions of euros Nominal amount Maturity Nominal amount Maturity Syndicated credit Undrawn Oct. 2022/€750m Undrawn Oct. 2022/€750m Wendel bond debt 2,870 2,519 350 April 2018 - - 500 July 2019 500 July 2019 212 September 2019
Slide 43: Adjustments to the NAV calculation method
Reminder : Adjustments to the NAV calculation method – valuation of unlisted investments since 12/31/2017 Before adjustments After adjustments H1: EV is the average of the values calculated for two EV is always the average of the values calculated periods (previous year and the budget for the curren
Slide 44: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2018 half-year results presentation, to be held on September 06, 2018. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other p
Slide 45: 2018 H1 Results | Sept. 6, 2018
45 2018 H1 Results | Sept. 6, 2018