Eurazeo Se · EURONEXT:RF
Eurazeo — Eurazeo Paris Ord — FY2022 Earnings Presentation
42 slides from Eurazeo's earnings presentation, Mar 8, 2023
Slide 1: Annual Results 2022
EURAZEO Annual Results 2022
Slide 2: Agenda: Highlights, Fundraising, Financial Results, Reporting, Q&A
01 02 03 04 05 HIGHLIGHTS FUNDRAISING FINANCIAL CHANGE Q&A OF 2022 & ASSET RESULTS IN FINANCIAL SESSION ROTATION REPORTING William KADOUCH- Christophe William KADOUCH- Pierre CHASSAING BAVIÈRE CHASSAING BERNARDIN Co-CEO Co-CEO Co-CEO Head of Investor Relations FULL YEAR 2022 RESULTS - 08.03.2023
Slide 3: Highlights of 2022
01 HIGHLIGHTS OF 2022 William KADOUCH-CHASSAING Co-CEO 1 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 4: 2022 Highlights
2022 HIGHLIGHTS 4 STRONG GROWTH DYNAMIC ASSET SOLID PORTFOLIO IMPROVED IN ASSET ROTATION VALUE CREATION SHAREHOLDER MANAGEMENT RETURN MANAGEMENT GOOD EXECUTION OF PORTFOLIO PROPOSED ORDINARY FEES REALIZATIONS VALUE1 DIVIDEND 380 m€ €2.9bn €7.9bn €2.2/share +20% yoy 100.6€ / share (+8%) +26% FEE RELA
Slide 5: Leadership in ESG
LEADERSHIP IN ESG 5 SFDR ESG RATINGS DECARBONIZATION CLASSIFICATION VALIDATION OF CARBON 90% IN ALL MODULES REDUCTION TARGETS FOR EURAZEO & MAINTAINING THE ELIGIBLE PORTFOLIO AA RATING COMPANIES2 FUNDS BEING RAISED SET FOR 2025 & 2030 OR IN THE INVESTMENT IMPROVING TO PHASE CLASSIFIED 1 AS LOW RISK
Slide 6: Fundraising & Asset Rotation
02 FUNDRAISING & ASSET ROTATION Christophe BAVIÈRE Co-CEO 1 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 7: Fundraising in line
FUNDRAISING IN LINE 7 THIRD PARTY KEY DEVELOPMENTS FUNDRAISING (€bn) _ Successful fundraising in Buyout (PME IV closing above €1bn) & 5.2 Franco-Chinese fund (€200M raised) _ Good dynamic on Digital, Smart City, & Biotech 2.9 3.2 _ Steady growth in Private Debt with 2.4 €1bn raised in 2022 1.6 _ Suc
Slide 8: Strong growth in Wealth segment
STRONG GROWTH IN WEALTH SEGMENT 8 ACCELERATING WEALTH A DISTINCTIVE INFLOWS PLATFORM €823m _ c.3.5bn€ of AUM with 120k+ clients +50% _ 20+ years of operations €550m _ 80+ blue-chip partners (banks, life insurers, IFAs…) €290m _ Ready to start internationalization (partnerships, ELTIF passport) _ Dig
Slide 9: Solid and diversified fundraising pipeline in 2023
SOLID AND DIVERSIFIED FUNDRAISING PIPELINE IN 2023 9 Flagship Mid Large Institutional Growth Secondaries Direct Lending FUNDS Buyout Thematic Digital Smart City Biotech Asset based Infrastructure FUNDS Eurazeo Private Value management Eurazeo Wealth Private Value 3 Growth1 Buyout2 Secondaries3 Real
Slide 10: Good execution of our realization program
GOOD EXECUTION OF OUR REALIZATION PROGRAM 10 AMOUNTS REALIZED FY 2022 MAIN REALIZATIONS in €bn 2.9 PRIVATE EQUITY / REAL ASSETS Real Assets 0,7 1 Private Debt 0,7 Private Equity 1,5 PRIVATE DEBT FY 2022 1. Vitaprotech closed in January 2023 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 11: Selective deployments
SELECTIVE DEPLOYMENTS 11 AMOUNTS DEPLOYED FY 2022 SELECTIVE DEPLOYMENT in €bn IN CATEGORY LEADERS 4.9 CORE SECTORS (ILLUSTRATIVE - IN PRIVATE EQUITY & REAL ASSETS) Real Assets 0,3 Tech-enabled Business-services 1,9 (2023) Private Debt Healthcare Financial Services 2,7 (build-ups) (2023) Private Equi
Slide 12: Financial Results
03 FINANCIAL RESULTS William KADOUCH-CHASSAING Co-CEO 1 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 13: Growing assets under management
GROWING ASSETS UNDER MANAGEMENT 13 ASSETS UNDER +10% MANAGEMENT 34.1 in €bn 30.9 _ AUM at €34.1bn, up +10% _ +12% third party AUM 21.8 _ Fee-paying AUM at €24.3bn 18.8 +29% 16.3 2018 2019 2020 2021 2022 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 14: Double digit growth in recurring revenue
DOUBLE DIGIT GROWTH IN RECURRING REVENUE 14 MANAGEMENT FEES 380 in €m +20% _ Management fees : 3171 +20% like-for-like (+23% current) 243 216 _ Average management 186 fee rate : c.1.4% 2018 2019 2020 2021 2022 1. adjusted for Kurma first integration and forex FULL YEAR 2022 RESULTS - 08.03.2023
Slide 15: Double digit growth in FRE
DOUBLE DIGIT GROWTH IN FRE 15 FEE RELATED EARNINGS 140 (FRE, before finance costs & others, €m) 120 _ FRE up +26% with improved 120 operating leverage +26% in spite of investments for growth 100 961 _ Strong FRE growth 80 72 31.6% expected in 2023 60 thanks to revenue expansion 30.2% 29.5% and cost
Slide 16: Contribution of the asset management activity
CONTRIBUTION OF THE ASSET MANAGEMENT ACTIVITY 16 % % IN €M FY 2021 FY 2022 change change Like for like2 current Management fees 317 380 +20% +23% _ From 3rd party investors 232 277 +19% +24% _ From Eurazeo Investment Activity 85 104 +22% +22% Operating expenses1 (221) (260) +18% +21% Fee Related Ear
Slide 17: Contribution of the investment activity: successful execution of exit plan
CONTRIBUTION OF THE INVESTMENT ACTIVITY : 17 SUCCESSFUL EXECUTION OF EXIT PLAN GROSS CASH-ON-CASH 4,4x MULTIPLE 3,7x (CoC) 3,2x c.€1.3bn 3,1x proceeds for Eurazeo 2,7x (in line with anticipated 15-20% range) 42% 25% 31% 30% Gross IRR 22% Average CoC 3.5x (closed in Jan. 2023) c.€0.9bn capital gains
Slide 18: Contribution of the investment activity: P&L
CONTRIBUTION OF THE INVESTMENT ACTIVITY : P&L 18 IN €M FY 2021 PF FY 2022 _ Capital gains from exits +897 M€ Net capital gains or loss & other revenue1 2,034 879 _ Change in fair value +60 M€ Impairments (20) (52) _ Investment related costs -81 M€ Others2 (143) (213) _ Management fees for the AM act
Slide 19: Strength of portfolio companies
STRENGTH OF PORTFOLIO COMPANIES 19 CONSOLIDATED INVESTMENT GROWTH COMPANY PORTFOLIO COMPANIES (NOT CONSOLIDATED)2 Economic revenue1, €m Economic EBITDA1, €m Revenue, €m +36% 5 137 3 789 764 +36% +32% 578 FY 2021 FY 2022 FY 2021 FY 2022 1. At constant Eurazeo scope and FX change – EBITDA of consolida
Slide 20: Group profit & loss
GROUP PROFIT & LOSS 20 IN €M FY 2021 PF FY 2022 A Contribution of the Asset Management Activity 253 214 B Contribution of the Investment Activity 1,870 615 C Contribution of portfolio companies net of finance costs 25 71 Amortization of contracts and other assets relating to goodwill allocation (213
Slide 21: Net asset value up +8% at 127.1€ / share
NET ASSET VALUE UP +8% AT 127.1€ / SHARE 21 INVESTMENT PORTFOLIO1 ASSET MANAGEMENT TOTAL NET ASSET VALUE €/share €/share €/share 117,8 127,1 100.6 +8.0% 93,1 +8.0% + 24,7 26,6 = +7.7% FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 1. Portfolio, cash & others FULL YEAR 2022 RESULTS - 08.03.2023
Slide 22: NAV investment portfolio: 100.6 €/share
NAV INVESTMENT PORTFOLIO1 : 100.6 €/SHARE 22 +8% 0.8 103.1 3.1 3.0 +1.3 100.6 -0.4 1.1 2.4 -3.9 93.1 Shareholder remuneration FY Realisations Forex First Underlying Market Others FY 2022 Dividend Shares FY above NAV revaluations3 performance impact2 & SBB cancellation 2021 before shareholder impact
Slide 23: NAV asset management: 26.6 €/share
NAV ASSET MANAGEMENT : 26.6 €/SHARE 23 €/share VALUATION BASED ON +7.7% MULTI-CRITERIA APPROACH Growth in recurring earnings +5.9 (FRE LTM +25% at 120 M€) 26.6 24.7 +0.4 +0.4 Prudent approach to FRE valuation -4.8 – Sum of the parts – LTM used as base for calculation – Cautious approach to multiples
Slide 24: Financial flexibility
FINANCIAL FLEXIBILITY 24 c.€7.4bn Dry Powder Solid balance sheet at holding level for investments Net cash POSITION €38m €4.9bn FROM LIMITED PARTNERS Revolving Credit Facility (UNDRAWN) €1.5bn €2.5bn COMMITMENTS FROM EURAZEO BALANCE SHEET FULL YEAR 2022 RESULTS - 08.03.2023
Slide 25: Increasing shareholder return
INCREASING SHAREHOLDER RETURN 25 GROWING SHARE ORDINARY DIVIDEND BUYBACK 2.20€ +26% 100 M€ 1.75€1 Aiming for envelope announced in May 2022, further 1.50€ dividend 0.9€/share of NAV accretion in 2022 growth in coming 100 M€ years new envelope announced today 2020 2021 2022 2 proposed 1. An extraordi
Slide 26: Levers of value creation to accelerate transition towards asset management
LEVERS OF VALUE CREATION TO ACCELERATE 26 TRANSITION TOWARDS ASSET MANAGEMENT Grow 3rd party Improve operating Optimize capital Focus & scale Allocation AUM Leverage _ Enlarge and _ Stronger focus on flagship _ Confirming 35-40% of FRE _ Rebalance value between internationalize our LP funds margin m
Slide 27: Change in Financial Reporting
04 CHANGE IN FINANCIAL REPORTING Pierre BERNARDIN Head of Investor Relations & Financial Communication 1 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 28: Change in accounting & financial disclosure in 2023
CHANGE IN ACCOUNTING & FINANCIAL DISCLOSURE IN 2023 28 REFLECTING THE TRANSFORMATION OF THE BUSINESS MODEL APPLYING THE IFRS 10 EXEMPTION (from 1st January 2023 ) _ Deconsolidating portfolio companies EURAZEO NOW QUALIFIES AS AN _ Portfolio value to be accounted for on a mark-to- “INVESTMENT COMPANY
Slide 29: Main changes on the P&L
MAIN CHANGES ON THE P&L : REFLECTING THE AM ACTIVITY 29 PERFORMANCE AND MARK-TO-MARKET ON PORTFOLIO Current Main impacts of change €M reporting of status _ FRE _ unchanged A Contribution of the AM activity _ PRE _ balance sheet aligned with 3rd party _ capital gains and fair value through the P&L _
Slide 30: Portfolio value to be reported directly in balance sheet
PORTFOLIO VALUE TO BE REPORTED DIRECTLY IN BALANCE SHEET NAV PRESENTATION REPORTING IN BALANCE SHEET UNTIL 2022 FROM 1ST JANUARY 2023 Portfolio value Portfolio value + 7.8 bn€ + 7.8bn€ Cash & other Cash & other assets/liabilities assets/liabilities Value of the Asset Balance sheet : at book value Ma
Slide 31: Associated changes in financial communication
ASSOCIATED CHANGES IN FINANCIAL COMMUNICATION TO 31 ALIGN WITH INDUSTRY BEST PRACTICE Funds disclosure AUM PRE _ Regular disclosure _ Aligning AUM from BS _ Accrued 3rd party on performance of main funds on 3rd parties AUM : performance fees ▪ Portfolio investments (removing Asset Management value)
Slide 32: Q&A
05 Q&A 1 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 33: Appendix
APPENDIX 1 FULL YEAR 2022 RESULTS - 08.03.2023
Slide 34: Growing assets under management
GROWING ASSETS UNDER MANAGEMENT 34 ASSETS UNDER MANAGEMENT (in €bn) Private Equity VENTURE & BUYOUT PRIVATE PRIVATE REAL ACCELERATION FUNDS DEBT ASSETS 29%1 34%1 12%1 21%1 4%1 _ Digital & Smart City _ Mid-large buyout _ Dedicated Funds _ Direct Lending _ Real Estate _ Growth _ Small-mid buyout and M
Slide 35: Growing assets under management
GROWING ASSETS UNDER MANAGEMENT 35 ASSETS UNDER MANAGEMENT (in €bn) 3.2 1.9 34.1 30.9 -0.2 3RD PARTY AUM -1.7 – up 12% – 71% of total AUM Net new money Fee Paying AUM up 29% at €24.3bn FY 2022 Fundraising Taildown Value Others FY 2022 & redemptions Creation FULL YEAR 2022 RESULTS - 08.03.2023
Slide 36: Assets under management
ASSETS UNDER MANAGEMENT 36 IN €M 31/12/2021 31/12/2022 Change (%) NAV 3rd party AUM Total AUM NAV 3rd party AUM Total AUM vs. 31/12/2021 Private Equity, Eurazeo 5,925 12,677 18,602 7,130 13,841 20,971 +13% Mid-large buyout 3,056 1,818 4,874 3,649 2,165 5,813 +19% Small-mid buyout 760 1,110 1,870 761
Slide 37: Portfolio companies performances
PORTFOLIO COMPANIES PERFORMANCES 37 FY 2021 FY 2022 % % Economic revenue, € change change PF actual PF1 PF lfl2 Mid-large buyout 1,585.4 2,503.6 +58% +52% Small-large buyout 1,505.7 1,771.1 +18% +9% Brands 317.7 369.6 +16% +16% Real Assets 380.6 492.5 +29% +29% Total economic revenue 3,789.4 5,136.8
Slide 38: Portfolio NAV composition
PORTFOLIO NAV COMPOSITION 38 TOP 20 COMPANIES Others2 AS OF DECEMBER 31, 2022 (% TOTAL GROSS PORTFOLIO NAV) 6% 5% 4% Real Assets 4% 11% 4% 4% Brands 4% 9% Portfolio MLBO 44% 4% NAV 3% 4% 8,3 Mds€1 3% 3% Growth 3% 23% 2% SMBO 2% 9% 2% 2% 2% 1% 1% 1. Gross Portfolio NAV breakdown by value of investmen
Slide 39: Financial agenda
FINANCIAL AGENDA 39 May 16, 2023 July 27, 2023 November 08, 2023 1ST QUARTER 2023 HALF YEAR 2023 3rd QUARTER 2023 REVENUES RESULTS REVENUES FULL YEAR 2022 RESULTS - 08.03.2023
Slide 40: About us
ABOUT US 40 EURAZEO CONTACTS INVESTOR RELATIONS ANALYST COVERAGE Bank of America Philip Middleton Pierre Agathe Berenberg Christoph Greulich BERNARDIN Chanoine CM-CIC Alexandre Gérard pbernardin@eurazeo.com achanoine@eurazeo.com +33 (0)1 44 15 16 76 +33 (0)1 44 15 87 68 Degroof Petercam Joren Van Ak
Slide 41: Disclaimer
DISCLAIMER 41 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 42: www.eurazeo.com
www.eurazeo.com