D'ieteren Group Sa/nv · EURONEXT:DIE
D'ieteren Group Sa/nv — Investor Day (April 2022)
28 slides from D'ieteren Group Sa/nv's investor day presentation, Apr 28, 2022
Slide 1: Investor Day: Group Financials & ESG
D'leteren Group Investor Day Group Financials & ESG “To build a family of businesses that reinvent industries in search of excellence and meaningful impact” == ee ee Z 7h ‘A y Francis Deprez - CEO we Arnaud Laviolette - CFO 1805 D'leterenGroup April 28", 2022 _S aS a ae
Slide 2: Agenda
Agenda I. D’leteren Immo Il. Anew growth pillar: Parts Holding Europe Ill. Principles of capital allocation IV. ESG V. Ambitions VI. Current year trading oe 1805
Slide 3: D'Ieteren Immo: real estate activities in Belgium
D’'leteren Immo”: real estate activities in Belgium Purpose Creating timeless living and working spaces adapted to the evolving needs of people and society Book value of the real 37 sites in portfolio estate portfolio (Em) 197 206 Brussels 179 178 «187 195 Wallonia Flanders 2016 2017 2018 2019 2020
Slide 4: Agenda
Agenda I. D’leteren Immo Il. Anew growth pillar: Parts Holding Europe Ill. Principles of capital allocation IV. ESG V. Ambitions VI. Current year trading oe 1805
Slide 5: A new growth pillar: Parts Holding Europe
Anew growth pillar: Parts Holding Europe European leader in spare parts omni-channel distribution and services for light vehicles and trucks Critical distribution partner in the independent aftermarket ecosystem PHE — PARTS HOLOING EUROPE — c.80% c.20% Of sales Of sales One c.490 Leading distributio
Slide 6: Significant value creation levers and accretion for DIG
Significant value creation levers and accretion for DIG Further expand the core business through organic growth Further economies of scale Operating leverage Structurally low capex & stable working capital leading to high cash conversion Enlarge footprint in existing geographies and support growth i
Slide 7: And strong 2021 results
And strong 2071 results 2021 business performance M&A FY Growth a Spain €2.01bn * Resilience of the Group sales aftermarket business in the * AD Marina ge 5 persistent health crisis Contributing 411.8% * Regenauto to €39.9m vs.2019 * Gain of additional market shares Italy of sales * Group’s ability
Slide 8: Agenda
Agenda I. D’leteren Immo Il. Anew growth pillar: Parts Holding Europe Ill. Principles of capital allocation IV. ESG V. Ambitions VI. Current year trading
Slide 9: Our businesses are financially ring-fenced...
Our businesses are financially ring-fenced... Portfolio companies PROVEN & SUSTAINABLY SCALABLE BUSINESS MODELS STRONG & INCENTIVIZED MANAGEMENT; TEAMS LARGE & GROWING ENGAGED PERSONNEL ICONSOLIDATION' POTENTIAL MARKETS 1. M&A 2. Other stakeholders + Personnel * Society * Customers SALES GROWTH MARG
Slide 10: ...and generate significant free cash-flows
...and generate significant free cash-flows Portfolio companies Portfolio companies Acquisitions ~~ 24 * Transformative M&A. + Additional growth * DIG support on pillars Free cash-flow generation o ESG o Financial performance o Digital agenda o Management Value creation Dividends incentives Sharehol
Slide 11: Agenda
Agenda I. D’leteren Immo Il. Anew growth pillar: Parts Holding Europe Ill. Principles of capital allocation IV. ESG V. Ambitions VI. Current year trading
Slide 12: Responsible investment
Responsible investment . . | We embed Sustainability and ESG in each stage of the investing cycle. an PRI __ yas Targeted Search Preliminary ESG analysis ESG action plan Continuous support v ESG as an investment theme Vv Materiality analysis Y ESG governance ¥ Sector exclusion* (desktop research) v
Slide 13: Active ownership
Active ownership 1805, DIG ESG value creation drivers Businesses Sustainability Pillars Reporting & Communi- cation Dileteren Group ESG presentation 13 rr
Slide 14: D'Ieteren Group ESG value creation drivers
D'leteren Group ESG value creation drivers D’leteren Belron . Moleskine D‘leteren Immo TVH Automotive People Engagement 86 % 86% / 88% / 3.6%, 74% 88% 76% * Ona scale of 1 to 5 MI EE ESE IE LX | 84.9, 83.4) / S: 60 / / / 18.7 40* Customer Satisfaction / AS: 53 * Fist satisfaction measurement in 2022
Slide 15: Business-specific sustainability pillars
Business-specific sustainability pillars We support our businesses in developing and implementing their sustainability strategy. R&O / Materiality Strategy Ambition Progress Materiality assessment Definition of Setting KPls Monitoring at (incl. Stakeholder dialogue sustainability & targets different
Slide 16: Example: D'Ieteren Automotive sustainability KPIs
Example: D’leteren Automotive sustainability KPIs We measure our businesses’ progress against their sustainability pillars, and support them where needed. D’leteren Automotive has secured a Sustainability-Linked Loan (Dec. 2021) with 2 Sustainability 2025 pillars KPI Target 2021 Value targets to be
Slide 17: ESG reporting and communication
ESG reporting and communication We continuously improve our reporting to provide reliable and comparable Uo oni Deebatic information to our stakeholders and prepare for upcoming regulations. Detailed disclosure for each of our businesses Increased focus on quantitative information EU taxonomy and TC
Slide 18: Agenda
Agenda I. D'leteren Immo Il. Anew growth pillar: Parts Holding Europe Ill. Principles of capital allocation IV. ESG V. Ambitions VI. Current year trading oe 1805
Slide 19: Summary of businesses 2025 ambitions
Summary of businesses 2025 ambitions D'leteren Belron Automotive Sales growth ; , . . (CAGR 2021-2025) >10% High single digit Adjusted operating margin ; ° (by 2025) >4% >23% Annual Adjusted free cash-flow* (by 2025) >€165m >€850m TVH Parts ~8% >14% >€170m Moleskine Low double-digit >25% >€30m SS “A
Slide 20: Ambition to exceed €1bn of operating profit group share by 2025
Ambition to exceed €1bn of operating profit group share by 2025 Adjusted operating profit, Group’s share (in €m) el | 4PHE | >1bn m@TVH Parts (as from Q4-21, Group's share) mD'leteren Automotive, Moleskine and Corp. & Unallocated = Belron (Group's share) 557 388 341 i = i: . // 17 18 19* 20** 21 25e
Slide 21: Ambition to generate nearly €1bn of PBT group share by 2025
Ambition to generate nearly €lbn of PBT group share by 2025 Adjusted PBT, Group’s share (Group's KPI) (in €m) porary | +PHE | Leneee i >950 m@TVH Parts (as from Q4-21, Group's share) mD'leteren Automotive, Moleskine and Corp. & Unallocated =Belron (Gr "sshare) elron (Group's share) APHE Yo LQ422e! >
Slide 22: Significant cash expected to be generated by the activities
Significant cash expected to be generated by the activities Portfolio companies ~~ @& Free cash-flow generation close to €2bn 2022-25 of cumulated free cash-flow, Group’s share expected to be generated by our activities over D'leterenGroup Significant cash upstream potential to pursue our strategy D
Slide 23: Agenda
Agenda I. D'leteren Immo Il. Anew growth pillar: Parts Holding Europe Ill. Principles of capital allocation IV. ESG V. Outlook VI. Current year trading oe 1805
Slide 24: Impacts of inflation on our businesses
Impacts of inflation on our businesses Belron * Material costs actively managed with supplier base to mitigate price pressures * Labour at agreed rates and standard times * Some time lag depending on the structure of the contracts with insurers Leaders in their respective industries Strong brands, u
Slide 25: Q1-22 trading update: overall very strong start of the year
Q1-22 trading update: overall very strong start of the year D'leteren Belron [Parts Moleskine ff PHE ' Automotive ! 1 ' t ' 1 1 Sales growth +7% +18% +24% +29% | +15% Drivers Volumes -14.0% + Volume growth of Strong volumes Driven by US and MESS Atlre-laltel ' Mix impact 9.9% and price Europe H grow
Slide 26: In a highly uncertain environment, FY-22 outlook confirmed
In a highly uncertain environment, FY-22 outlook confirmed Belron Automotive leskine Strong order backlog => Sales growth Low double-digit organic some volume recovery > 25% YoY expected Slightly above organic sales growth (including impact of c.€80m transformation costs) Adjusted operating result A
Slide 27: Q&A
Q&A 1805 D)'leterenGroup “To build a family of businesses that reinvent industries in search of excellence and meaningful impact” 1805
Slide 28: Disclaimer
Disclaimer This document contains forward-looking information that involves risks and uncertainties, including statements about D'leteren Group’s and its portfolio companies’ financial projections, future performance, plans, objectives, expectations and intentions. Forward-looking statements can be