Wendel Se · EURONEXT:MF
Wendel — Debt Investor Presentation (September 2009)
38 slides from Wendel's debt investor presentation, September 2009
Slide 1: Credit Update September 2009
C dit Update Credit U d t September 2009
Slide 2: The Group at end-August 2009
The Group at end-August 2009 World leader assessment and World leader in the housing certification and construction markets World leader in electrical equipment 18% 52% 31% World leader in sublingual g allergy gy 46% 76%* Leader therapy in specialty chemicals for construction 48%* 89%* 8% 100% The w
Slide 3: Management team as of end-August 2009
Management team as of end-August 2009 P t i k Tanguy Patrick T Investment committee Managing Director Management committee Anne-Lise Bapst Director of communication Stéphane Bacquaert Managing Director Caroline Bertin Delacour Director of legal affairs Executive Board Olivier Chambriard Managing Dir
Slide 4: H1 2009 - Highlights
H1 2009 - Highlights ■ Very high financial market volatility and deterioration in economic conditions ■ Saint-Gobain’s €1.5bn rights issue ■ New chairman of Wendel’s Executive Board ■ Sale S l off Oranje-Nassau’s O j N ’ oilil & gas business b i and d a bl block k off B Bureau V Veritas it shares h
Slide 5: First half results impacted by continued economic slowdown and high non-recurring accounting losses
First half results impacted by continued economic slowdown and high non-recurring accounting losses
Slide 6: Summary of H1 2009 results
Summary of H1 2009 results ■ Net income from business sectors: €61.8M, reflecting excellent resilience in the Group's companies ■ Net loss of €901.3M, affected by significant reductions in book values Limited review of first-half consolidated financial statements; full audit of separate financial st
Slide 7: H1 2009 consolidated net results
H1 2009 consolidated net results (in €M) H1 2008 H1 2009 Δ Consolidated subsidiaries 507.4 261.5 -48.5% Financing, operating expenses and taxes (204.1) (199.7) -2.2% Net income from business sectors(1) 303.2 61.8 -79.6% Net income from business sectors, Group share 238.4 (10.8) NS Non-recurring item
Slide 8: Net income from business sectors
Net income from business sectors (in €M) H1 2008 H1 2009 Δ Bureau Veritas 111.0 141.3 +27.3% Materis 32.6 10.5 -67.9% Full consolidation Deutsch 17.7 (10.1) NS Stallergenes 12.0 13.4 +11.7% Editis (5.3) - NS F Oranje-Nassau 42.3 13.8 -67.4% accounted Saint-Gobain 217.9 41.6 -80.9% Legrand 75.6 51.1
Slide 9: Non-recurring result
Non-recurring result (in €M) H1 2008 H1 2009 Impairment of assets (748 5) (748.5) - of which Saint-Gobain (705.0) Capital gains on sales 288.4 464.0 of which Oranje-Nassau Oranje Nassau Energy 14 9 14.9 345 6 345.6 of which Bureau Veritas - 118.4 of which Editis 273.5 - Dilution losses - (741 6) (74
Slide 10: Non-recurring items
Non-recurring items ■ €464M in capital gains on asset sales in 2009 ■ €136M increase in value of Saint-Gobain protection ■ Adjustment in the value of Saint-Gobain shares in Wendel’s consolidated balance sheet At After rights issues After write-down at 12/31/2008 (*) 6/30/2009 Value per Saint-Gobain
Slide 11: Non-recurring items
Non-recurring items Impairment losses on equity-accounted shares can be reversed in the eventt off a rise i ini their th i value l iin use The dilution losses and the write-downs are recognized as non-recurring losses and have no impact on the cash position or the net asset value The accountin
Slide 12: Results of Group companies
Results of Group companies Credit Update / H1 2009 results
Slide 13: Bureau Veritas
Bureau Veritas Growth in operating margin ((in €M)) H1 2008 H1 2009 H1 2009 highlights g g Sales 1,198.9 1,329.5 Sales growth: +11% of which 6% organic Adjusted operating 180.3 214.5 Consumer products division performed income (1) remarkably well (e.g. (e g toy tests in the United % of sales 15.
Slide 14: Saint-Gobain
Saint-Gobain Acceleration and strengthening of cost reduction plan (in €M) H1 2008 H1 2009 H1 2009 highlights Sales 22 141 22,141 18 715 18,715 Deterioration in construction markets and drop in industrial markets Operating income 2,005 930 % of sales 9.1% 5.0% Priority given to sales prices, up
Slide 15: Legrand
Legrand Adjusted operating margin held up remarkably well (in €M) H1 2008 H1 2009 H1 2009 highlights Sales 2,166.0 1,812.1 Sales fell organically by 16.7% Adjusted recurring 404.1 306.6 ► Deterioration in end-user markets operating income (1) ► Destocking by retailers Future F t growth th ffunda
Slide 16: Materis
Materis Adjusted operating margin held up very well (in €M) H1 2008 H1 2009 H1 2009 highlights Sales 964 861 Downturn in end markets Adjusted operating 120 94 ► Volumes down by 14% due to downturns in end income (1) markets (construction, steel) and destocking ► Price/mix impact: p +3% % of sales
Slide 17: Deutsch
Deutsch V Very adaptable d t bl tto diffi difficult lt markets k t (in $M) H1 2008 H1 2009 H1 2009 highlights S l Sales 360 2 360.2 226 5 226.5 Organic sales decline of 59% in Industry (Industry division and LADD distribution subsidiary) Adjusted operating 74.9 27.5 Gradual business recovery sin
Slide 18: Stahl
Stahl Stepped-up Stepped up effort to adjust to a very adversely affected market (in €M) H1 2008 H1 2009 H1 2009 highlights g g Sales 164.1 110.8 Organic growth: -33% Adjusted operating 25.5 7.1 Weakness of underlying markets accentuated income (1) by destocking, particularly in the automotive, f
Slide 19: Stallergenes
Stallergenes Excellent performance and objectives exceeded ((in €M)) H1 2008 H1 2009 H1 2009 highlights Sales 87.0 97.6 Sales growth: 12% Operating income 32.1 37.3 of which organic growth: 11% before R&D % of sales 36.8% 38.2% Positive impact of the launch of Oralair® Grasses Net financial debt
Slide 20: Group Financial Profile
MW) WENDEL Group Financial Profile
Slide 21: Net asset value as of August 26, 2009
Net asset value as of August 26, 2009 High quality & liquid assets (i €M) (in A August t 26 26, 2009 M 31 May 31, 2009(4) Listed investments by company(1) Number of shares(1) Price (1) 6,243 5,838 Saint-Gobain 89,812,635 €29.83 2,679 2,408 Bureau Veritas 56,293,260 €33.17 1,867 1,910 Legrand 80 583
Slide 22: Managing flexibility: Asset rotation
Managing flexibility : Asset rotation 100% Acquisition of BV Acquisition of Acquisition Sale of BV block Sale of IPO IPO ½ exit Sale of E it Exit Sale of Oranje- Nassau Sale of Oil fields Exit Exit from and exit from Valeo Return to Shareholders Credit Update / H1 2009 results 22
Slide 23: Managing flexibility: Liability management
Managing flexibility : Liability management SAINT GOBAIN FINANCING AND BOND DEBT SAINT-GOBAIN 6/30/2009 12/31/2008 Saint-Gobain g gross debt 5,387 , Maturity 5,452 , Maturity Non-recourse debt 1,000 July 2013 1,000 July 2013 455 December 2013 (1) 600 December 2013 Gross debt with margin calls 800 Ju
Slide 24: Managing flexibility: Extending debt maturities
Managing flexibility : Extending debt maturities €1,255M €1 255M ini Saint-Gobain S i t G b i financing fi i with ith margin i calls ll extended t d d for f an average off nearly 3 years Repurchase of €16M in bonds €800M: Maturity extended from 2011 to 2015 €107M in debt drawn down at time of Saint-
Slide 25: Managing flexibility: Room for maneuver
Managing flexibility : Room for maneuver Undrawn lines Possible utilisation without covenants Eufor E f bank d bt (1) b k debt (6/2014 and 6/2015) €600M Purpose limited to management and refinancing of the Saint-Gobain investment Eufor bank debt (11/2011) €393M Undrawn lines with covenants Syndicate
Slide 26: Managing flexibility: Sound cash position
Managing flexibility : Sound cash position 31/12/2008 30/6/2009 26/8/2009 Cash position €2,311M €2,553M €2,562M Cash pledged €1,400M €1,241M €1,119M Free cash €911M €1,312M €1,443M Credit Update / H1 2009 results 26
Slide 27: Catalysts for rating improvement
Catalysts y for rating g improvement p Wendel is rated by Standard & Poor’s since September 2002 Since February 12th 2009, 2009 Standard & Poor’s Poor s long term rating is BB Negative Outlook •Build-up •Investing Value (R&D;Marketing;Capex) creation •Costs management •Economic recovery •Debt ma
Slide 28: Outlook for medium-term growth
Outlook for medium-term growth
Slide 29: Wendel's companies have considerable structural advantages
Wendel’s companies have considerable structural advantages Global coverage Barriers to entry Number of countries Global network and local presence Bureau Veritas 140 Legrand 70 Saint-Gobain 59 Stahl 28 Strong brands Deutsch 25 Materis 24 Pricing power Ability to recover cost increases (raw materials
Slide 30: Wendel's portfolio is well positioned for the recovery
Wendel’s portfolio is well positioned for the recovery Acyclicals Strong resilience vis-à-vis the recession Recovery underway “Early cyclicals” Underlying markets: construction t ti (new ( housing, h i Underlying markets affected renovation, commercial by destocking and weaker construction, consumer
Slide 31: Priorities for the coming months
Priorities for the coming months Stay well positioned for a recovery whose timing remains uncertain ■ Maintain cost discipline in all Group companies ■ Support and accompany companies through the recession ■ Create room for maneuver for the Group by making financial structure more flexible and by le
Slide 32: Appendices
MW) WENDEL Appendices
Slide 33: Income statement
INCOME STATEMENT in millions of euros H1 2009 H1 2008 Net sales 2,457.9 2,486.6 Other income from operations 5.6 4.2 Operating expenses -2,207.3 -2,209.5 Income from ordinary activities 256.3 281.3 O h operating Other i income i and d expenses 46 9 46.9 72 7.2 Operating income 303.2 288.5 Income fro
Slide 34: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET in millions of euros 6.30.2009 12.31.2008 in millions of euros 6.30.2009 12.31.2008 Share premiums 246.9 246.9 Goodwill, net 2,476.1 2,607.6 Retained earnings and other reserves 1,636.1 1,427.4 g Intangible assets,, net 1,471.8 , 1,509.7 , Net income for the p period -959.
Slide 35: Conversion from accounting presentation to economic presentation
CONVERSION FROM ACCOUNTING PRESENTATION TO ECONOMIC PRESENTATION Non-recurring income Income from Holding co. Impact of Consolidated equity Asset costs Non-recurring goodwill Total net income investments impairment allocation Net sales 2,457.9 - - - - - 2,457.9 Operating income 352.2 (26.0) 95.0 (a)
Slide 36: Saint-Gobain financing and cash position
SAINT-GOBAIN FINANCING AND CASH POSITION AS OF DECEMBER 31, 31 2008 and JUNE 30, 30 2009 €3,292.2 million in gross debt subject to collateral calls in the form of cash and/or listed shares (Bureau Veritas and Legrand). The value of collateral given by Eufor (i.e. financed Saint-Gobain shares, li
Slide 37: NAV: Principal comments
NAV: Principal comments ■ More detailed presentation, presentation and same structure as on June 5, 5 2009 ■ Published valuation date ■ Methodology gy unchanged g and complies p with recommendations of the EVCA ► Listed subsidiaries and equity investments: average of the closing prices of the previo
Slide 38: Disclaimer
DISCLAIMER • This document has been prepared by Wendel S.A. (“Wendel”) solely for use at the information meeting held on 31 August 2009 to present its financial statements for the first half of 2009. This document must be treated confidentially by attendees at such presentation and may not be reprod