Eurazeo Se · EURONEXT:RF
Eurazeo — Eurazeo Paris Ord — H1 2024 Earnings Presentation
35 slides from Eurazeo's earnings presentation, Jul 25, 2024
Slide 1: H1 2024 Results
H1 2024 RESULTS July 25, 2024 Confidential information
Slide 2: Agenda
Agenda 01 02 03 04 HIGHLIGHTS FUNDRAISING FINANCIAL Q&A OF H1 2024 & ASSET RESULTS SESSION ROTATION HALF YEAR 2024 RESULTS - 25.07.2024
Slide 3: H1 2024 Highlights
3 H1 2024 1 HIGHLIGHTS William Kadouch-Chassaing co-Chief Executive Officer HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 4: Delivering on our strategic plan
DELIVERING ON OUR STRATEGIC PLAN 4 GROWTH IN ASSET EXPANSION OF OUR IMPROVED ENHANCED PORTFOLIO MANAGEMENT CLIENT REACH OPERATIONAL ROTATION & EFFICIENCY SHAREHOLDER RETURN FUNDRAISING INTERNATIONALIZATION FRE GROWTH BALANCE SHEET EXITS OF OUR LP BASE €0.7bn €2.1bn 70% +21% announced and realized ex
Slide 5: Further progress in ESG and impact
FURTHER PROGRESS IN ESG AND IMPACT 5 ESG IMPACT €706M #81 EURAZEO TRANSITION WORLD'S MOST SUSTAINABLE INFRASTRUCTURE FUND (ETIF) RAISED COMPANIES ACCORDING TO SINCE INCEPTION, STATISTA AND TIME MAGAZINE IN TOP 500 ABOVE TARGET ARTICLE 9 FUND #2 OUT OF 283 PRIVATE EQUITY COMPANIES FOR OUR DIVERSITY,
Slide 6: Fundraising & Asset Rotation
6 FUNDRAISING & 2 ASSET ROTATION Christophe Bavière co-Chief Executive Officer HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 7: Fundraising up sharply in H1 at €2.1bn
FUNDRAISING UP SHARPLY IN H1 AT 7 €2.1BN Third party fundraising (€bn) KEY DEVELOPMENTS 2,105 • Strong Private Debt fundraising with first closing of EPDVII • Final close of Sustainable 1,292 +63% Infrastructure at 706m€ • First closing of Kurma IV (biotech) Wealth 1 • Wealth inflows up +30% in H1 2
Slide 8: Solid and diversified fundraising pipeline for 2024
SOLID AND DIVERSIFIED FUNDRAISING Value 8 PIPELINE FOR 2024 ✓ First closing Flagship Mid-Large Direct Lending Secondaries Growth FUNDS Buyout Institutional ✓ Final closing ✓ First closing Thematic Sustainable Kurma Asset-based Impact FUNDS Infrastructure Biotech Buyout management Eurazeo Sustainable
Slide 9: Expanding our client reach
EXPANDING OUR CLIENT REACH 9 Further success in our wealth Continuous expansion of our solutions franchise international LP base in France & in Europe International LPs in fundraising (€m) Eurazeo’s fundraising from Wealth (€m) 70% New territories : 59% Belgium, Switzerland, Italy, 15% Germany 433 5
Slide 10: Strong pick up in exit activity
STRONG PICK UP IN EXIT ACTIVITY 10 REALIZATIONS (in €M) DEPLOYMENTS (in €M) 1,625 1,697 1,609 -5% x3 483 876 H1 2023 H1 2024 H1 2023 H1 2024 Private Equity Private debt Real Assets HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 11: Realizations across strategies underpinning strong returns
REALIZATIONS ACROSS STRATEGIES UNDERPINNING 11 STRONG RETURNS Illustration of exits YTD (announced and realized) BUYOUT VENTURE / GROWTH REAL ASSETS Realized in July Realized Realized Partial exit Sponsor Trade buyer Trade buyers Realized Realized Trade buyer Trade buyer Announced Announced Trade bu
Slide 12: Financial Results
12 FINANCIAL 3 RESULTS William Kadouch-Chassaing co-Chief Executive Officer HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 13: Double digit increase in fee-paying AUM
DOUBLE DIGIT INCREASE IN FEE-PAYING AUM 13 Total AUM1, €bn Fee-paying AUM1, €bn +9% 35.4 32.4 +10% 26 BALANCE 10.2 10.3 24 SHEET +1% 7.4 7.4 -1% 22.2 25.0 THIRD +13% 16.1 18.4 +14% PARTY H1 2023 PF H1 2024 H1 2023 PF H1 2024 (1) Restated from Rhône and MCH exits. Iincludes commitments from the balan
Slide 14: Third party management fees up +13%
THIRD PARTY MANAGEMENT FEES UP +13% 14 MANAGEMENT FEES1 in €m +8% 204 189 _ 3rd party management fees THIRD-PARTY IMG +14% 41 up +13% 36 +13% _ Balance sheet management THIRD-PARTY PRIVATE MARKETS 92 104 fees down -3% -3% BALANCE SHEET 61 59 H1 2023 PF H1 2024 1. Restated for exit from Rhone & MCH a
Slide 15: Double digit increase in FRE
DOUBLE DIGIT INCREASE IN FRE 15 FEE RELATED EARNINGS (FRE, before finance costs & others, excluding Rhône €m) _ FRE up 21% yoy 71.2 _ Maintaining positive jaws whilst 58.8 +21% investing in growth _ FRE margin at 34.8% H1 2023 PF 1 H1 2024 1 Restated for exit from Rhone & MCH and IMGP base effect HA
Slide 16: Contribution of the asset management activity
CONTRIBUTION OF THE ASSET MANAGEMENT 16 ACTIVITY H1 2023 % in €m H1 2024 proforma change Management fees 189 204 +8% _ From 3rd party investors 129 145 +13% _ From Eurazeo Investment Activity 61 59 -3% Operating expenses1 (130) (133) +2% Fee Related Earnings (FRE), before finance costs & others 59 7
Slide 17: Stable portfolio value creation in H1 2024
STABLE PORTFOLIO VALUE 17 CREATION IN H1 2024 Valuations drivers in H1 24 : €100.6 €8.3bn Operational performance Realizations above NAV €8.0bn Adjusting multiples and +1% +3% +2% -7% discounts Long term track-record : change in fair value : -48m€ (-0.6% or +0.1% per share) + 12% pa over 10 years Va
Slide 18: Solid performance of portfolio companies
SOLID PERFORMANCE OF PORTFOLIO COMPANIES 18 Growth Buyout2 REVENUES1 23% REVENUES1 +15% +8% Net 60% portfolio value Real Assets EBITDA1 €8.0bn 12% +15% REVENUES1 5% +18% Hospitality3 EBITDA1 +38% 1. 1- at constant Eurazeo scope and exchange rate. Weighted average revenue : Portfolio company revenue
Slide 19: Balance sheet exits 15% uplift on H1 2024
BALANCE SHEET EXITS 15% UPLIFT ON H1 2024 19 2020 2021 2022 2023 2024 Uplift at exit1 +120% +35% +17% +11% +10% +70% +0% +33% +36% +66% +103% +42% +22% +60% +10% 54% +17% +17% -18% +15% +42% 4.4x 4.1x 3.7x 3.2x 3.2x 3.3x 3.0x 3.0x 3.0x 2.8x 2.7x 2.7x Gross CoC 2.6x 2.5x 2.5x multiple 2.1x 2.0x 1.8x
Slide 20: On track for realizations pick-up in 2024
ON TRACK FOR REALIZATIONS PICK-UP IN 2024 20 Realizations by semester (€m) _ H1 2024 realizations already above FY 2023 levels _ €710m including announced deals, ie. 9% rotation of n-1 x4 portfolio 368 552 _ Diversified exit pipeline for the 139 rest of the year 2023 2024 H1 H2 HALF YEAR 2024 RESULT
Slide 21: Contribution of the investment activity
CONTRIBUTION OF THE INVESTMENT ACTIVITY 21 in €m H1 2023 H1 2024 proforma Portfolio net change in fair-value (27) (48) Other change in fair-value 48 (6) Performance fees owed to the AM activity (1) (2) Management fees owed to the AM activity (61) (59) Steering costs (13) (13) Others1 (16) (28) Contr
Slide 22: Group profit & loss
GROUP PROFIT & LOSS 22 H1 2023 in €m H1 2024 proforma A Contribution of the Asset Management Activity 56 65 B Contribution of the Investment Activity (69) (156) Amortization of contracts and other assets relating to goodwill allocation (3) (3) Income tax expense 3 (4) Non-recurring items – excluding
Slide 23: Increased return to shareholders in line with objectives
INCREASED RETURN TO SHAREHOLDERS IN LINE 23 WITH OBJECTIVES Ordinary Dividend €179m paid in May 2024 (€2.42 /share) 5% yield 1 Share buy-back €109m in H1, for cancellation (€1.43 /share) 1. as of 16 July 2024 (based on a 77€ share price) HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 24: Q&A
24 4 Q&A HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 25: About us
ABOUT US www.eurazeo.com 25 EURAZEO CONTACTS ANALYST COVERAGE INVESTOR RELATIONS Alpha Value Saïma Hussein Bank of America suspended 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
Slide 26: Appendices
26 APPENDICES HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 27: Robust financial structure
ROBUST FINANCIAL STRUCTURE 27 Shareholder Equity as of June 2024 €7.6bn Revolving Credit Facility €1.5bn Net financial debt €1.0bn as of June 2024 13% gearing HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 28: Assets under management
ASSETS UNDER MANAGEMENT 28 in €m 31/12/2023 PF 30/06/2024 Change (%) vs. EZ BS AUM 3rd party AUM Total AUM EZ BS AUM 3rd party AUM Total AUM 31/12/2023 PF Private Equity, Eurazeo 9,187 15,987 25,174 8 727 15 895 24 622 -2% Mid-large buyout 4,747 3,085 7,833 4 453 2 873 7 327 -6% Small-mid buyout 997
Slide 29: Assets under management bridge
ASSETS UNDER MANAGEMENT BRIDGE 29 ASSETS UNDER MANAGEMENT (in €bn) 34.6 2.1 +0.3 +0.1 35.4 -1.8 Net new money Taildown Value FY 2023 Fundraising & redemptions Creation Others H1 2024 HALF YEAR 2024 RESULTS - 25.07.2024 Confidential information
Slide 30: Selected funds performance
SELECTED FUNDS PERFORMANCE1 30 Vintage Fund size o/w BS Strategy Fund name % invested Gross MOIC Gross IRR Gross DPI Year (m€) (€m) Private Equity ECIV 2017 2,500 1,712 83% 1.9x 17% 0.7x MLBO ECIII 2014 2,000 1,506 97% 1.8x 12% 1.5x PME IV 2021 1,049 400 43% 1.6x 31% 0.3x SMBO PME III 2017 658 405 9
Slide 31: Portfolio value composition
PORTFOLIO VALUE COMPOSITION 31 Others2 Robust and prudent valuation approach ‒ Using LTM multiples 3% ‒ in line or below market spot multiples Buyout 12% ‒ Moderate leverage (~5x EBITDA), ‒ Interest rates covered at ~70% 42% Net portfolio value ‒ Discount on older financing rounds across the board 8
Slide 32: H1 realisations already above FY23 levels
H1 24 REALISATIONS ALREADY ABOVE FY23 LEVELS 32 % of (N-1) portfolio value realized in year N 3,000 10 years average = 24 % 52% 2,500 2,000 28% 27% 27% 28% 31% 23% 1,500 11% 18% 11% 1,000 9% 6% 500 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 REALIZATIONS EXITS IN M€ ANNOUNCED EXIT
Slide 33: Shareholder base & governance
SHAREHOLDER BASE & GOVERNANCE 33 5% 0.4% Treasury 1% Guyot shares Group Executives & CORPORATE GOVERNANCE 4% Family Others Richardson Family _ Separation of the roles of Chairman 5% and CEO Solages Family _ Independence of the Supervisory Board: 10% 7 independent members out of 132 Michel David-Weil
Slide 34: Disclaimer
DISCLAIMER 34 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 35: www.eurazeo.com
www.eurazeo.com Confidential information