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Eurazeo — Eurazeo Paris Ord — H1 2023 Earnings Presentation
32 slides from Eurazeo's earnings presentation, Jul 27, 2023
Slide 1: H1 2023 Results
EURAZEO H1 2023 RESULTS July 27, 2023
Slide 2: Highlights, Operational Performance, Financial Results, Q&A
01 02 03 04 HIGHLIGHTS OPERATIONAL FINANCIAL Q&A OF H1 2023 PERFORMANCE RESULTS SESSION HALF YEAR 2023 RESULTS - 27.07.2023
Slide 3: H1 2023 Highlights
3 H1 2023 1 HIGHLIGHTS William Kadouch-Chassaing co-Chief Executive Officer HALF YEAR 2023 RESULTS - 27.07.2023
Slide 4: H1 2023 Highlights
H1 2023 HIGHLIGHTS 4 CONTINUED GROWTH IN STABLE EXCEPTIONAL BUILDING THE ASSET MANAGEMENT PORTFOLIO VALUE ITEMS IMPACT PLATFORM INCREASED AUM DEDICATED FEE RELATED EARNINGS VALUE CREATION IMPACT OF CHANGE TO A LOW-CARBON & MORE IN IFRS 10 STATUS INCLUSIVE ECONOMY €69m (€27m) €1.9bn €4.7bn +37% yoy
Slide 5: Laying the Foundation for Future Growth
LAYING THE FOUNDATION FOR FUTURE GROWTH 5 o Adapting organization to business purpose as a full-fledged Asset Manager Decisions on organization o Further alignment of executive board incentives with shareholder value creation and people o New appointments in selected strategies and functions Review
Slide 6: Operational Performance
6 OPERATIONAL 1 PERFORMANCE Christophe Bavière co-Chief Executive Officer HALF YEAR 2023 RESULTS - 27.07.2023
Slide 7: Double Digit Increase in Fee-Paying AUM
DOUBLE DIGIT INCREASE IN FEE-PAYING AUM 7 Total AUM1, €bn Fee-paying AUM1, €bn +3.5% 34.0 35.2 +16% 25.1 21.7 H1 2022 H1 2023 H1 2022 H1 2023 (1) includes commitments from the balance sheet in Eurazeo’s funds HALF YEAR 2023 RESULTS - 27.07.2023
Slide 8: Fundraising of €1.3bn in a Slower Environment
FUNDRAISING OF €1.3BN IN A SLOWER ENVIRONMENT 8 Third party fundraising (€bn) Key developments 1,788 • Continued robust momentum in ow Rhône Private Debt (+35% vs. H1 2022) -15% 1,292 • In Private Equity, further Wealth fundraising in Venture and Secondaries • Second close of Sustainable 1 Infrastru
Slide 9: Robust Momentum in Private Debt
ROBUST MOMENTUM IN PRIVATE DEBT 9 EPD VI (latest Direct Lending vintage) EURAZEO PRIVATE DEBT STRATEGY €2bn+ 9-10% 4.8bn target size target Direct Lending net IRR Total AUM 35.2 Bn 19% 6.9Bn Private Debt 0.3% 2.1bn Corporate default rate1 €500m and Asset based deployed 0% in H1 23 loss ratio1 1. dat
Slide 10: Selective Deployments and Realizations in H1 in Line with the Market
SELECTIVE DEPLOYMENTS AND REALIZATIONS IN H1 10 IN LINE WITH THE MARKET MARKET EURAZEO European deals DEPLOYMENTS REALIZATIONS (in €bn) (in €m) 2,906 72 -35% 1,697 707 47 -41% 170 -54% -39% 483 79 -40% -27% H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 Source : Pitchbook, completed Private deals i
Slide 11: Solid Performance of Portfolio Companies
SOLID PERFORMANCE OF PORTFOLIO COMPANIES 11 H1 PORTFOLIO PERFORMANCE1 (EXCL. GROWTH) GROWTH COMPANIES REVENUE2 EBITDA2 REVENUE2 +14% +13% +15% 1- Includes MLBO, SMBO, Brands, and Real Assets portfolios 2- at constant Eurazeo scope and exchange rate. Weighted average revenue : Portfolio company reven
Slide 12: Financial Results
12 2 FINANCIAL RESULTS William Kadouch-Chassaing co-Chief Executive Officer HALF YEAR 2023 RESULTS - 27.07.2023
Slide 13: Continued Growth in Management Fees
CONTINUED GROWTH IN MANAGEMENT FEES 13 MANAGEMENT FEES (in €m) 380 315 243 185 169 +13% 127 181 204 116 140 2020 2021 2022 2023 H1 H2 HALF YEAR 2023 RESULTS - 27.07.2023
Slide 14: Improved FRE Margin Thanks to Revenue Growth and Disciplined Cost Management
IMPROVED FRE MARGIN THANKS TO REVENUE 14 GROWTH AND DISCIPLINED COST MANAGEMENT FEE RELATED EARNINGS (FRE, €m) FRE MARGIN (%) 140 34.0% 33.5% 120 120 33.0% 96 100 31.6% 32.0% 70 80 72 30.3% 54 +37% 31.0% 60 29.7% 41 30.0% 40 69 50 41 29.0% 20 29 0 28.0% 2020 2021 2022 2023 FY 2020 FY 2021 FY 2022 H1
Slide 15: Contribution of the Asset Management Activity
CONTRIBUTION OF THE ASSET MANAGEMENT ACTIVITY 15 H1 2022 H1 2023 % in €m change IFRS 10 IFRS 10 current Management fees 181 204 +13% _ From 3rd party investors 139 143 +3% _ From Eurazeo Investment Activity 42 61 +45% Operating expenses1 (131) (136) +3% Fee Related Earnings (FRE), before finance cos
Slide 16: A Favorable Market Context for the Valuation of Our Portfolio
A FAVORABLE MARKET CONTEXT FOR THE VALUATION 16 OF OUR PORTFOLIO Earnings growth Limited sensitivity to Improving market metrics of the portfolio change in interest rates Buy-out : Solid performance of H1 2023 o Rates hedged at c.70% portfolio companies market performance o <5x EBITDA leverage Real
Slide 17: Cautious Valuation Approach Leads to Slight Decrease in Fair Value of the Portfolio
CAUTIOUS VALUATION APPROACH LEADS TO SLIGHT 17 DECREASE IN FAIR VALUE OF THE PORTFOLIO €7.9bn €8.0bn -€27m change in fair value FY Forex Underlying Multiples Scope H1 2022 portfolio and valuation 2023 performance HALF YEAR 2023 RESULTS - 27.07.2023
Slide 18: Contribution of the Investment Activity
CONTRIBUTION OF THE INVESTMENT ACTIVITY 18 in €m H1 2022 H1 2023 (IFRS 10) (IFRS 10) Portfolio net change in fair-value 464 (27) Other change in fair-value (133) 48 Management fees owed to the AM activity (42) (61) Steering costs (9) (13) Others1 (5) (21) Contribution of the Investment Activity 276
Slide 19: Group IFRS Profit & Loss
GROUP IFRS PROFIT & LOSS 19 H1 2022 H1 2023 in €m IFRS 10 IFRS 10 A Contribution of the Asset Management Activity 44 64 B Contribution of the Investment Activity 276 (74) Amortization of contracts and other assets relating to goodwill allocation (7) (6) Income tax expense (5) 3 Non-recurring items 6
Slide 20: Significant Financial Headroom
SIGNIFICANT FINANCIAL HEADROOM 20 c.€7.3bn Dry Powder Solid balance sheet for investments Net debt POSITION €426m €5.0bn (5% gearing) FROM LIMITED PARTNERS Revolving Credit Facility ow €480m drawn €1.5bn €2.3bn COMMITMENTS FROM EURAZEO BALANCE SHEET HALF YEAR 2023 RESULTS - 27.07.2023
Slide 21: Save the Date: Capital Markets Day on November 30, 2023
SAVE THE DATE 21 Capital Markets Day on November 30, 2023 HALF YEAR 2023 RESULTS - 27.07.2023
Slide 22: Q&A
22 Q&A HALF YEAR 2023 RESULTS - 27.07.2023
Slide 23: About Us
ABOUT US 23 EURAZEO CONTACTS INVESTOR RELATIONS ANALYST COVERAGE Bank of America Philip Middleton Pierre Agathe Berenberg Christoph Greulich BERNARDIN Chanoine CM-CIC Arnaud Palliez pbernardin@eurazeo.com achanoine@eurazeo.com +33 (0)1 44 15 16 76 +33 (0)1 44 15 87 68 Degroof Petercam Joren Van Aken
Slide 24: Appendices
24 APPENDICES HALF YEAR 2023 RESULTS - 27.07.2023
Slide 25: Assets Under Management
ASSETS UNDER MANAGEMENT 25 in €m 31/12/2022 30/06/2023 Change (%) vs. EZ BS AUM 3rd party AUM Total AUM EZ BS AUM 3rd party AUM Total AUM 31/12/2022 PF Private Equity, Eurazeo 8,706 14,300 23,006 8,597 14,580 23,176 +1% Mid-large buyout 4,723 2,165 6,888 4 701 2 191 6 891 0% Small-mid buyout 1,103 1
Slide 26: Assets Under Management Bridge
ASSETS UNDER MANAGEMENT BRIDGE 26 ASSETS UNDER MANAGEMENT (in €bn) 34.4 1.3 -0.5 -0.03 +0.02 35.2 Net new money Taildown Value FY 2022 Fundraising & redemptions Creation Others H1 2023 HALF YEAR 2023 RESULTS - 27.07.2023
Slide 27: Selected Funds Performance
SELECTED FUNDS PERFORMANCE 27 Vintage Fund size o/w BS Strategy Fund name % invested % realized Gross MOIC Gross IRR Year (m€) (€m) Private Equity ECIV 2017 2,500 1,712 90% 62% 1.9x 21% MLBO ECIII 2014 2,000 1,506 97% 142% 1.8x 13% PME IV 2021 1,049 400 35% 4% 1.5x 48% SMBO PME III 2017 658 405 94%
Slide 28: Portfolio Fair Value Change
PORTFOLIO FAIR VALUE CHANGE 28 31/12 Value creation 30/06 Value Creation Deployments Realizations Others (in €m) 2022 (%) 2023 Mid-Large buyout 3,469 2 0% +34 (28) (15) 3,462 Small-Mid buyout 699 (27) -4% +32 (68) (4) 634 Growth 1,759 (40) -2% +115 (12) (4) 1,819 Brands 739 20 3% +6 (1) - 764 Ventur
Slide 29: Portfolio Value Composition
PORTFOLIO VALUE COMPOSITION 29 TOP 20 COMPANIES Others2 AS OF JUNE 30, 2023 (% TOTAL GROSS PORTFOLIO NAV) 6.5% 7% 5% 4% 2% 12% 4% 4% 4% Net 4% 10% portfolio 44% 4% value 4% 3% 8.0 Mds€1 3% 3% 23% 3% 2% 8% 2% 2% 2% 2% 1% 1% 1. Data in % are calculated on total gross portfolio value of investment as o
Slide 30: Shareholder Base & Governance
SHAREHOLDER BASE & GOVERNANCE 30 6% 0.4% Treasury 1% Guyot shares Group Executives & CORPORATE GOVERNANCE 4% Family Others Richardson Family _ Separation of the roles of Chairman 6% and CEO Solage Family _ Independence of the Supervisory Board: 9% 7 independent members out of 132 Michel David-Weill
Slide 31: Disclaimer
DISCLAIMER 31 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 32: www.eurazeo.com
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