Wendel Se · EURONEXT:MF
Wendel — H1 2023 Earnings Presentation
32 slides from Wendel's earnings presentation, Jul 28, 2023
Slide 1: H1 2023 Results
H1 2023 Results July 28, 2023 2023 2021 1 H1 2023 results | July 28, 2023
Slide 2: 2023 Half-Year Results key highlights
2023 Half-Year Results key highlights Solid growth of consolidated sales: H1 2023 consolidated sales(1) of €3,443.6m, up 6.5% overall and 6.0% organically NAV : €163.2 per share, overall stable (-0.9%) year-to-date(2) (as of June 30, 2023) • On July 25, 2023, Wendel received several binding offers t
Slide 3: New strategic orientations: a very active start of the year
New strategic Orientations: a very active start of the year Active portfolio rotation • On July 25, 2023, Wendel received several binding offers to acquire Constantia Flexibles • €557m equity invested to acquire Scalian, deal closed on July 27, 2023 • Wendel Growth: €37m invested or committed in H1
Slide 4: Performance of Group companies
Performance of Group companies Half-Year 2 0 2 3 Fig u r es ar e a ft er I FR S 1 6 , u n less ot h er w ise specified 4 H1 2023 results | July 28, 2023
Slide 5: Half-Year 2023 performance of Group's companies (1/2)
Half-Year 2023 performance of Group’s companies (1/2) Organic External Sales Δ FX impact growth growth Bureau Veritas €2,904.2m +7.8% +9.4% +1.5% -3.1% Stahl €443.0m -5.9% -14.3% +8.4% +0.0% Crisis Prevention Institute $58.2m +10.5% +11.3% - -0.8% ACAMS $49.1m (1) +1.0% +1.0% - - Tarkett (equity acc
Slide 6: Half-Year 2023 performance of Group's companies (2/2)
Half-Year 2023 performance of Group’s companies (2/2) EBITDA / EBIT Δ H1 2023 Margin for BVI Bureau Veritas €434.2 +5.7% 15.2% Stahl €92.0m -12.0% 20.8% Crisis Prevention Institute $26.0m -0.8% 44.7% ACAMS $9.7m +8.9% 19.9% Tarkett (equity accounted) €126.1m -0,1% 7.8% Constantia Flexibles €167.0m +
Slide 7: Leverage of our companies overall at the end of H1 2023
Leverage of our companies overall at the end of H1 2023 Net debt to EBITDA Net debt (end of 2019 and end of June 2023(1)) (as of June. 30 2023 including I FRS 16) 1.9x The lowest level since Bureau Veritas IPO in 0.95x €930.8m 2007 2.0x 1.0x A few acquisitions in the €315.8m meantime 1.9x 1.6x ISG a
Slide 8: Financials
Financials 8 H1 2023 results | July 28, 2023
Slide 9: Net income Group share of €39.6m
Net income Group share of €39.6m down from the €479.8m of H1 2022, which was impacted by the €589.9m capital gain on the disposal of Cromology in millions of euros H1 2022 H1 2023 Revenue 3,232.3 3,443.6 Contribution from subsidiaries 414.1 402.1 In 2022: Financial & operating expenses and taxes (59
Slide 10: Net Asset Value per share bridge year-to-date
Net Asset Value per share bridge year-to-date Q1 +2.8% Q2 +6.9 -1.6 -3.6% -0.7 172.5 -5.0 Unlisted 167.9 assets Others -0.7 -3.2 +3.2 166.4 Listed assets Listed assets Unlisted -0.4 163.2 assets Div idend Others Div idend paid restated NAV per share NAV per share NAV per share Pro forma NAV per as o
Slide 11: NAV of €163.2 as of June 30, 2023
NAV of €163.2 as of June 30, 2023 (in millions of euros) June 30, 2023 Listed equity investments Number of shares Share price(1) 4,543 • Bureau Veritas 160.8 million €24.6 3,962 • I HS 63.0 million $8.7 505 • Tarkett €11.2 75 Investments in unlisted assets(2) 3,372 Other assets and liabilities of We
Slide 12: Wendel is financed at 2.4% average cost with no maturity until 2026
Wendel is financed at 2.4% average cost with no maturity until 2026 c.€1.7bn cash + €875m undrawn credit facility extended to July 2028 Weighted av erage Cash av ailable cost of bond debt: 2.4% Exchangeable bonds into Bond maturities 750 NEW Bureau Veritas’ shares (25% premium) Average maturity: 5.1
Slide 13: Leverage – Net debt at low level and strong resilience of LTV
Leverage – Net debt at low level and strong resilience of LTV Low LTV 52.0% Before closing of 47.5% Scalian and disposal 36.7% of Constantia 32.6% 31.9% 34.4% Flexibles. Pro forma of these 22.9% transactions & dividend received 12.2% 10.3% 6.1% 6.0% 6.2% 5.8% 8.5% from Bureau Veritas LTV would be no
Slide 14: Conclusion
Conclusion 14 H1 2023 results | July 28, 2023
Slide 15: H1 2023 key takeaways
H1 2023 key takeways A very dynamic start of the year for Wendel and its portfolio companies… … but still an uncertain and challenging environment 3 large transactions announced – fully in line with the strategic orientations : • Issue of exchangeable bonds in Bureau Veritas shares, providing an add
Slide 16: Q&A session
Q&A session 16 H1 2023 results | July 28, 2023
Slide 17: Appendix
Appendix F in a n c ia l in f o r m a t io n a s o f J u n e 3 0 , 2 0 2 2 17 H1 2023 results | July 28, 2023
Slide 18: Bureau Veritas: Strong H1 2023 operating and financial performance
Bureau Veritas : Strong H1 2023 operating and financial performance Strong organic revenue growth (+9.4%) ➢ Four businesses delivered very strong organic growth: Marine & Offshore, +15.6%, Industry, +15.5%, Certification, +11.2%, and Buildings & Infrastructure (B&I), +10.8%. Agri-Food & Commodities
Slide 19: Constantia Flexibles – Strong growth of sales and EBITDA
Constantia Flexibles – Strong growth of sales and EBITDA Total growth of 13.3%, with record organic growth of 11.7% driven by price increases and mix improvement ▪ Strong grow th in the Pharma markets and sustained grow th in the Consumer markets despite a somewhat more challenging macro env ironmen
Slide 20: Stahl – Sales down in H1 impacted by low volumes
Stahl – Sales down in H1 impacted by low volumes across the industry. Solid EBITDA margin. Sales down (-5.9%) impacted by lower volumes, as observed generally in the industry ➢ Organic growth was –14.3%. Scope effect of +8.4%. FX impact was nil ➢ Activity in the global coatings industry was generall
Slide 21: Crisis Prevention Institute – Double digit sales growth
Crisis Prevention Institute – Double digit sales growth, strong margin despite costs increase Total revenue growth of +10.5% as compared with H1 2022. ➢ Growth underpinned by continued expansion of t he installed base of Certified Instructors (CIs), as well as the related growth in renewals and peer
Slide 22: ACAMS – Sales up +1% in H1
ACAMS – Sales up +1% in H1 with a +17% growth in Q2 impacted by Conferences timing effects Revenue of $27.7m in Q2, up 17% year on year impacted by Conferences timing H1 revenue totaled $49.1m (1), up 1% ➢ As expected, revenue decline in Q1 2023 was offset by strong growth Q2 2023 October 2023 ➢ Q1
Slide 23: Wendel Growth is ramping up: new direct investments completed
Wendel Growth is ramping up: 3 new direct investments completed 3 new direct investments made: Total commitments of c.€206m • o/w c.€166m in funds, c. 70% have already been called • o/w c.€40m invested or committed in direct opportunities Direct investment & funds Mid-term target exposure: €500m 23
Slide 24: H1 2023 performance of Group's consolidated companies
H1 2023 performance of Group’s consolidated companies Organic EBITDA, Op. profit Margin Sales Δ growth for BVI Bureau Veritas 2,904.2m +7.8% +9.4% 434.2m 15.0% Stahl €443.0m -5.9% -14.3% €92m 20.8% Crisis Prevention $58.2m +10.5% +11.3% $26m 44.7% Institute ACAMS $49.1m (1) +1.0% +21.1% $9.7m 19.9%
Slide 25: H1 2023 consolidated sales
H1 2023 consolidated sales in millions of euros H1 2022 H1 2023 Δ Organic Δ Bureau Veritas 2,693.4 2,904.2 +7.8% +9.4% Stahl 470.9 443.0 -5.9% -14.3% Crisis Prevention Institute 48.2 53.9 +11.8% +11.2% ACAMS (1) 19.8 42.5 n/a n/a Consolidated sales (2) 3,232.3 3,443.6 +6.5% +6.0% (1) ACAMS account s
Slide 26: H1 2023 sales of companies accounted for by the equity method
H1 2023 sales of companies accounted for by the equity method in millions of euros H1 2022 H1 2023 Δ Organic Δ Tarkett 1,564.0 1,608.2 +2.8% +3.9% 26 H1 2023 results | July 28, 2023
Slide 27: Discontinued operations – IFRS 5
Discontinued operations – IFRS 5 in millions of euros H1 2022 H1 2023 Δ Organic Δ Constantia Flexibles (1) 917.9 1,039.6 +13.3% +11.7% (1) I n accordance w ith I FRS 5, t he cont ribut ion of t his port folio company has been reclassified in "Net income from discont inued operat ions and operat ions
Slide 28: IFRS - Summary table before and after the application of IFRS 16
IFRS 16 - Summary table of main aggregates before and after the application of IFRS 16 Sales EBITDA Net debt (in millions) H1 2022 H1 2022 H1 2023 H1 2023 H1 2023 H1 2023 H1 2022 H1 2023 including excluding including excluding including excluding IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 Stahl
Slide 29: Financial agenda
Financial agenda 29 H1 2023 results | July 28, 2023
Slide 30: Financial agenda
Financial agenda Thursday October 26th, 2023 Q3 2023 Trading update – Publication of NAV as of September 30, 2023 (after-market release) Thursday December 7th, 2023 2023 Investor Day Wednesday February 28 , 2024 FY 2024 results – Publication of NAV as of December 31, 2023, and Full-Year consolidated
Slide 31: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2023 H1 results presentation, to be held on July 28, 2023. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person. • No
Slide 32: For more information, please visit www.wendelgroup.com
For more information, please visit www.wendelgroup.com 32 Wendel Q3 2022 Trading Update | October 28, 2022