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Eurazeo — Eurazeo Paris Ord — FY2023 Earnings Presentation

37 slides from Eurazeo's earnings presentation, Mar 7, 2024

  1. Slide 1: Annual Results 2023

    EURAZEO Annual Results 20235

  2. Slide 2: Key highlights, fundraising & asset rotation, financial results, Q&A

    01 02 03 04 KEY FUNDRAISING FINANCIAL Q&A HIGHLIGHTS & ASSET RESULTS SESSION ROTATION William KADOUCH- Christophe William KADOUCH- CHASSAING BAVIÈRE CHASSAING Co-CEO Co-CEO Co-CEO FULL YEAR 2023 RESULTS - 07.03.2024

  3. Slide 3: Key Highlights

    01 KEY HIGHLIGHTS William KADOUCH-CHASSAING Co-CEO 1 FULL YEAR 2023 RESULTS - 07.03.2024

  4. Slide 4: A Year of Transformation and Growth

    A YEAR OF TRANSFORMATION AND GROWTH 4 • Clear ambition : Setting ambitious “build the leading AAM across European Mid-market, Growth & Impact” strategic • 4 key objectives : 1. Focus our value proposition objectives 2. Accelerate shift towards an asset light model 3. Expand & scale up our client fra

  5. Slide 5: Financial Highlights

    FINANCIAL HIGHLIGHTS 5 STRONG GROWTH DOUBLE DIGIT ROBUST ENHANCED IN ASSET RECURRING PORTFOLIO SHAREHOLDER MANAGEMENT1 EARNINGS GROWTH1 VALUE RETURN Fundraising FRE Net portfolio value Proposed dividend +21% +22% €8.3bn +10% (€2.42/share) Fee-paying AUM Contained OPEX Asset rotation 2023 Share Buy-B

  6. Slide 6: Leadership in ESG and Impact

    LEADERSHIP IN ESG AND IMPACT 6 SFDR IMPACT FUNDS ESG RATINGS CLASSIFICATION IMPROVING TO 96% 15% AUM A RATING MAINTAINING THE dedicated to impact AA RATING FUNDS BEING RAISED OR IN THE INVESTMENT vs 13% in 2022 MAINTAINING THE PHASE, CLASSIFIED 1 AS 2 SUCCESSFUL CLOSINGS IN 2023 LOW RISK ARTICLE 8 O

  7. Slide 7: Fundraising & Asset Rotation

    02 FUNDRAISING & ASSET ROTATION Christophe BAVIÈRE Co-CEO 1 FULL YEAR 2023 RESULTS - 07.03.2024

  8. Slide 8: Good Momentum on Fundraising

    GOOD MOMENTUM ON FUNDRAISING 8 Third party fundraising1 (€bn) Key developments Above fundraising target of €3.0bn +21% 3.5 2.9 Private Equity : Real +54% ✓ Buyout : first closing of ECV, ongoing on Assets ECAF and Secondaries Private +31% ✓ Venture : Final closing of Smart City II Debt above target,

  9. Slide 9: Further Growth of International LP Base, Continued Momentum on Wealth

    FURTHER GROWTH OF INTERNATIONAL LP BASE, 9 CONTINUED MOMENTUM ON WEALTH Increasing share of international in Further growth in wealth management institutional LPs inflow franchise (€m) (€m) X2.5 2,622 2,073 FRANCE 813 863 1 69% 591 INTERNATIONAL 48% 305 2020 2021 2022 2023 2022 2023 FULL YEAR 2023 R

  10. Slide 10: Solid and Diversified Fundraising Pipeline for 2024

    SOLID AND DIVERSIFIED FUNDRAISING 10 PIPELINE FOR 2024 Flagship Mid-Large Institutional Secondaries Direct Lending Growth FUNDS Buyout Thematic Sustainable Kurma Asset-based Impact FUNDS Infrastructure Biotech Buyout Eurazeo Private Value management Sustainable Wealth Eurazeo Growth1 Secondaries2 Pr

  11. Slide 11: Deployments and Realizations in Line with Market Trends

    DEPLOYMENTS AND REALIZATIONS IN LINE WITH 11 MARKET TRENDS MARKET EURAZEO European deals DEPLOYMENTS REALIZATIONS (in €bn) (in €bn) 4.9 -20% -41% 3.9 311 2.9 -24% 2.2 185 0.8 announced 1.3 realized 2022 2023 2022 2023 2022 2023 Source : Pitchbook, completed Private equity deals in Europe FULL YEAR 2

  12. Slide 12: Selective Deployments Across All Asset Classes

    SELECTIVE DEPLOYMENTS ACROSS ALL ASSET CLASSES 12 AMOUNTS DEPLOYED in €bn SELECTIVE DEPLOYMENT IN CATEGORY LEADERS 3.9 CORE SECTORS (ILLUSTRATIVE EXEMPLES) Real Assets 0.3 Tech-enabled business services Private Debt 1.5 Healthcare Financial services 2.2 Private Equity Energy transition FY 2023 New c

  13. Slide 13: Realizations Picked Up in Q4 2023

    REALIZATIONS PICKED UP IN Q4 2023 13 EXITS in €bn MAIN EXITS PRIVATE EQUITY / REAL ASSETS 1.3 Announced Real Assets Private Debt 0.4 0.9 0.8 Private Equity PRIVATE DEBT FY 2023 FY 2023 realized announced FULL YEAR 2023 RESULTS - 07.03.2024

  14. Slide 14: Exit Valuations Reflecting Quality of Portfolio

    EXIT VALUATIONS REFLECTING QUALITY OF PORTFOLIO 14 Gross Cash-on-cash 3.2x 3.3x Weighted average : Multiple (CoC) 3.0x 2.7x 2.6x CoC 2.8x Gross IRR 24% 65% 24% 32% 77% IRR 33% Announcement date July 2022 July 2023 Nov. 2023 Dec. 2023 Dec. 2023 Closing status To be closed in 2024 To be closed in 2024

  15. Slide 15: Financial Results

    03 FINANCIAL RESULTS William KADOUCH-CHASSAING Co-CEO 1 FULL YEAR 2023 RESULTS - 07.03.2024

  16. Slide 16: Double Digit Increase in Third Party and Fee-Paying AUM

    DOUBLE DIGIT INCREASE IN THIRD PARTY AND 16 FEE-PAYING AUM ASSETS UNDER FEE-PAYING MANAGEMENT ASSETS UNDER MANAGEMENT in €bn in €bn +9% 35 32 10.7 +12% BALANCE +4% 10.3 26 23 SHEET 7.5 7.3 +3% +12% THIRD 21.7 24.2 PARTY 15.7 +16% 18.2 2022 2023 2022 2023 FULL YEAR 2023 RESULTS - 07.03.2024

  17. Slide 17: Management Fees Up +9% at ~400M€

    MANAGEMENT FEES UP +9% AT ~400M€ 17 MANAGEMENT FEES1 in €m +9% 398 366 _ 3rd party management fees 77 76 (excl. IMG) : THIRD-PARTY IMG +8% adj. for catch-up fees THIRD-PARTY PRIVATE MARKETS 199 186 _ Balance sheet management BALANCE SHEET fees up +18% 104 122 (commitments on EC V) 2022 2023 1. Exclu

  18. Slide 18: Significant Increase in Operating Margin

    SIGNIFICANT INCREASE IN OPERATING MARGIN 18 FEE RELATED EARNINGS (FRE, before finance costs & others, excluding Rhône €m) 34.8% 35-40% _ FRE : +22% yoy 31.0% _ Positive jaw effect 30.1% 138 thanks to well 28.1% contained opex (+3%) 113 26.8% 89 63 _ +380 bps 53 FRE margin 2019 2020 2021 2022 2023 20

  19. Slide 19: Contribution of the Asset Management Activity

    CONTRIBUTION OF THE ASSET MANAGEMENT ACTIVITY 19 % IN €M – excluding Rhône FY 2022 FY 2022 FY 2023 change like Published IFRS 10 IFRS 10 for like Management fees 366 366 398 +9% 2 _ From 3rd party investors 262 262 276 +5% _ From Eurazeo Investment Activity 104 104 122 +17% Operating expenses (253)

  20. Slide 20: Stable Portfolio Value Creation in 2023

    STABLE PORTFOLIO VALUE CREATION 20 IN 2023 €100.6 Valuations drivers in 2023 : +€62m (+1%) change in fair value €8.3bn Realizations above NAV Operational performance €7.9bn Multiple effect +4% +12% +2% -6% Long term track-record : + 17% pa over 3 years + 12% pa over 10 years Value per share : €109.6

  21. Slide 21: Solid Performance of Portfolio Companies

    SOLID PERFORMANCE OF PORTFOLIO COMPANIES 21 Growth Buyout2 REVENUES1 23% REVENUES1 +17% +10% Net portfolio 60% Real Assets value EBITDA1 €8.3bn 12% +13% REVENUES1 5% +11% Hospitality3 EBITDA1 +11% 1- at constant Eurazeo scope and exchange rate. Weighted average revenue : Portfolio company revenue an

  22. Slide 22: 2023 Exits Completed at an Average 23% Premium to NAV

    2023 EXITS COMPLETED AT AN AVERAGE 23% PREMIUM 22 TO NAV 2019 2020 2021 2022 2023 Uplift +74% +98% +15% +51% +56% +120% +35% +17% +11% +10% +70% +0% +33% +36% +66% +103% +42% +22% +60% +10% +10% +17% >100% at exit1 4.8x 23% uplift weighted average 4.4x 4.1x 3.7x 3.2x 3.2x 3.3x Gross CoC 3.0x 3.0x mu

  23. Slide 23: 13% Asset Rotation in 2023 - Volumes Expected to Increase in 2024

    13% ASSET ROTATION IN 2023 - VOLUMES EXPECTED 23 TO INCREASE IN 2024 % of (N-1) portfolio value realized in year N 3,000 10 years average = 24 % 52% Portfolio rotation 2,500 €507 M realized (6.4% of n-1 net portfolio) 27% 28% €491 M announced 2,000 31% 28% 27% (6.2% of n-1 net portfolio) 23% 1,500 1

  24. Slide 24: Contribution of the Investment Activity: P&L

    CONTRIBUTION OF THE INVESTMENT ACTIVITY : P&L 24 IN €M FY 2022 FY 2022 FY 2023 Published IFRS 10 IFRS 10 Net capital gains or loss & other revenue1 897 - - (+) change in fair value/fair value gains (losses) 60 - - (+) other income 22 - - (+) change in fair value on the portfolio - 891 62 (+) other c

  25. Slide 25: Group Profit & Loss

    GROUP PROFIT & LOSS 25 IN €M FY 2022 FY 2022 FY 2023 Published IFRS 10 IFRS 10 A Contribution of the Asset Management Activity (excl. Rhône) 211 194 128 B Contribution of the Investment Activity 615 540 (91) C Contribution of portfolio companies net of finance costs 71 - - Amortization of contracts

  26. Slide 26: Delivering Attractive Shareholder Return

    DELIVERING ATTRACTIVE SHAREHOLDER RETURN 26 CONFIRMING GROWING ONGOING EXECUTION OF INCREASED ORDINARY DIVIDEND SHARE BUYBACK Aiming for further dividend growth in coming years 2.42€ 129 M€ in 2023 2.20€ +10% above initial target of 100 M€ 1.75€ 1.50€ >200 M€ in 2024 started in January 2020 2021 202

  27. Slide 27: Robust Financial Structure

    ROBUST FINANCIAL STRUCTURE 27 Total Equity as of end 2023 €8.4bn Revolving Credit Facility Net financial debt €0.8bn €1.5bn as of end 2023 9% gearing Net financial debt €0.3bn Proforma of announced exits1 >4% gearing 1. Including proceeds for DORC and EFESO announced in Q4 2023, to be realized in 20

  28. Slide 28: Q&A

    04 Q&A 1 FULL YEAR 2023 RESULTS - 07.03.2024

  29. Slide 29: Appendix

    APPENDIX 1 FULL YEAR 2023 RESULTS - 07.03.2024

  30. Slide 30: Assets Under Management

    ASSETS UNDER MANAGEMENT 30 in €m 31/12/2022 31/12/2023 Change (%) vs. EZ BS AUM 3rd party AUM Total AUM EZ BS AUM 3rd party AUM Total AUM 31/12/2022 PF Private Equity, Eurazeo 8,706 13,841 22,547 8,965 15,530 24,495 +9% Mid-large buyout 4,723 2,165 6,888 4,747 3,085 7,833 +14% Small-mid buyout 1,103

  31. Slide 31: Growing Assets Under Management

    GROWING ASSETS UNDER MANAGEMENT 31 ASSETS UNDER MANAGEMENT (in €bn) AUM at €35.0bn, 3.5 0.5 0.6 35.0 up +9% 32.0 -1.9 3RD PARTY AUM – up 12% – 69% of total AUM Value Taildown FY 2022 Fundraising Creation New BS & redemptions commitments Others FY 2023 FULL YEAR 2023 RESULTS - 07.03.2024

  32. Slide 32: Selected Funds Performance

    SELECTED FUNDS PERFORMANCE 1 32 Vintage Fund size o/w BS Strategy Fund name % invested % realized Gross MOIC Gross IRR Year (m€) (€m) Private Equity ECIV 2017 2,500 1,712 90% 62% 1.9x 19% MLBO ECIII 2014 2,000 1,506 97% 144% 1.8x 13% PME IV 2021 1,049 400 43% 3% 1.6x 62% SMBO PME III 2017 658 405 96

  33. Slide 33: Portfolio NAV Composition

    PORTFOLIO NAV COMPOSITION 33 Others2 Robust and prudent valuation approach ‒ Using LTM multiples ‒ in line or below market spot multiples Real Assets Buyout 12% ‒ Moderate leverage (~5x EBITDA), ‒ Interest rates covered at ~70% Brands 9% Portfolio MLBO 43% ‒ Discount on older financing rounds NAV ac

  34. Slide 34: Financial Agenda

    FINANCIAL AGENDA 34 May 16, 2024 July 25, 2024 November 06, 2024 1ST QUARTER 2024 HALF YEAR 2024 3rd QUARTER 2024 REVENUES RESULTS REVENUES FULL YEAR 2023 RESULTS - 07.03.2024

  35. Slide 35: About Us

    ABOUT US 35 EURAZEO CONTACTS INVESTOR RELATIONS ANALYST COVERAGE Bank of America Alexandre Tissières Pierre Agathe Berenberg Christoph Greulich BERNARDIN Chanoine CM-CIC Arnaud Palliez pbernardin@eurazeo.com achanoine@eurazeo.com +33 (0)1 44 15 16 76 +33 (0)1 44 15 87 68 Degroof Petercam Joren Van A

  36. Slide 36: Disclaimer

    DISCLAIMER 36 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

  37. Slide 37: www.eurazeo.com

    www.eurazeo.com

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