Wendel Se · EURONEXT:MF
Wendel — Merger or Acquisition (September 2016)
15 slides from Wendel's merger presentation, Sep 20, 2016
Slide 1: Acquisition of Tsebo
Acquisition of Tsebo September 20, 2016 Acquisition of Tsebo | September 20, 2016 1
Slide 2: Introduction
Introduction On September 19, Wendel signed an agreement with a view to acquiring Tsebo. The company provides solutions such as facilities management, catering, cleaning and security services, as well as remote camp management to clients across Africa. Acquisition of Tsebo | September 20, 2016 2
Slide 3: Tsebo
Tsebo Wendel’s 4th platform in Africa established since 2013 Leading pan-African facilities services provider Unrivalled footprint in Africa, with presence in 23 countries Attractive growth prospects organically and through acquisition Strong cash generation Resilient business model Strong managemen
Slide 4: The leading pan-African facilities services provider
Tsebo In brief The leading pan-African facilities services provider Founded in 1971, ‘homegrown’ African company ZAR 6.33bn of sales (1) ZAR 507m of EBITDA (1) 7,000 + client sites across a variety of industries 34,000 + staff (1) Period ended March 31, 2016 Acquisition of Tsebo | September 20, 2016
Slide 5: Transaction highlights
Tsebo Transaction highlights € 331m Entreprise Value(1) Up to 4x EBITDA of debt to finance the acquisition, enabled by a growing, cash-generative business Co-investment negotiation underway with management & B-BBEE investors Up to €200m of equity to be invested by Wendel, subject to debt financing &
Slide 6: A long history of outperformance and integrating acquisitions
A long history of outperformance and integrating acquisitions From a single country business to a Pan African player “Structuring and consolidation" “Investment for growth driven by M&A” 2015 M&A: Malandela and Thorburn (Security) 2014 2012 M&A: Backbone M&A: Ubunye Cleaning Management, Callguard an
Slide 7: A diversified model, generating strong & resilient growth
A diversified model, generating strong & resilient growth Through organic & external growth Growth driven by a combination of organic and … with a progressive diversification of external growth … service offering and geographic presence 2007-2016 2010 Sales Sales CAGR: +15.3% Cleaning EBITDA margin
Slide 8: Tsebo, the pan-African leader in facility services
Tsebo, the pan-African leader in facility services African Expertise, Global Standards • Tsebo takes responsibility for non-core activities outside of its clients expertise, enabling them to focus on their core businesses What they do • Solutions and services offered include: facilities management,
Slide 9: Business overview
Business overview Facilities management Technical services Remote camp management Tsebo maintains buildings, lifts and escalators, provides full, turnkey establishment and Heating Ventilation and AC, plumbing and management of remote camps in isolated electrical systems and provide construction loca
Slide 10: Tsebo's brand values
Tsebo’s brand values Building productivity In Africa & The Middle East 1 provide clients with a dependable operational foundation that supports their growth across Africa & the Middle East Measurable client benefits 2 Create powerful solutions for clients that they can measure in hard terms Innovati
Slide 11: An outstanding management team
An outstanding management team Clive Smith Tim Walters Chris Jardine W Louw J Wentzel M Kalawe FC Smit S Narain K Khan Exec Director CEO Cleaning CEO – CEO – Security CEO CFO CEO – FM CEO – ATS GM – Karam Operations / CIO Catering services Years at Tsebo 24 15 6 12 5 2 2 20 27 Qualification ACIS CA
Slide 12: Investment thesis fully aligned with Wendel's strategy
Investment thesis fully aligned with Wendel’s strategy Tsebo is a unique platform to support African growth Strong macro trends Africa is one of world’s fastest-growing region, underpinned by strong fundamentals, e.g. demographics & urbanization Established value Clear value proposition for customer
Slide 13: Conclusion
Conclusion Acquisition of Tsebo | September 20, 2016 13
Slide 14: Increases Wendel's African footprint
Tsebo Increases Wendel’s African footprint 4th direct acquisition in Africa Tsebo is an ideal platform to benefit from the African growth €1+ bn invested in in IHS, Saham, SGI Africa & Tsebo Enhanced African portfolio diversification Acquisition of Tsebo | September 20, 2016 14
Slide 15: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the presentation, to be held on September, 20 2016. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person. • No representat