Slide 1: H1 2020 results
H1 2020 results 2020 July 30, 2020 LONG-TERM INVESTOR 1 2020 H1 Results | July 30, 2020
Slide 2: Half-Year Results key figures
Half-Year Results key figures NAV : €138.6* per share, up 17.3% since March 31st positively impacted by stock market rebound and updates in aggregates used for the valuation of unlisted assets Year to date, NAV is down 16.7% Consolidated sales of €3.6bn, down 10.2%, Consolidated net loss of -€279.3m
Slide 3: Half-Year Results key highlights
Half-Year Results key highlights Wendel in H1 2020 Finalized disposal of Allied Universal’s remaining stake Maintained Wendel dividend Rightsized Wendel office footprint Accelerating on ESG Portfolio in H1 2020 Recruited Pim Vervaat as CEO of Constantia Managed the COVID-19 crisis : our companies ex
Slide 4: Disposal of the entire remaining stake in Allied Universal
Disposal of the entire remaining stake in Allied Universal Disposal of the entire remaining stake in Allied Universal closed on April 29, 2020 • Additional proceeds of c.$196 million, subject to price adjustments • Total net proceeds: 2.5 times equity invested and an investment $IRR of c.30% p.a. Th
Slide 5: Performance of Group companies
Performance of Group companies Half-Year 2020 Figures are after IFRS 16, unless otherwise specified 5 2020 H1 Results | July 30, 2020
Slide 6: Bureau Veritas
Bureau Veritas ▪ Revenue of €2.2bn, down 11.1% year-on-year ▪ Organic growth declined by -9.0% in H1 2020, of which -15.6% in Q2 o Marine & Offshore delivered organic growth of +3.4% o Agri-Food & Commodities, Buildings & Infrastructure and Industry showed a good level of resistance overall, down 6.
Slide 7: Monthly sales analysis: impact of COVID-19 on our unlisted companies
Monthly sales analysis: impact of COVID-19 on our unlisted companies 2019 2020 Basis 100: January 2019 sales Constantia Flexibles Crisis Prevention Institute Cromology 160 160 110 140 140 105 120 120 100 100 100 95 80 Rebound 80 90 Rebound above 85 Resilience 60 60 prior year level 40 40 80 20 20 75
Slide 8: IHS Towers
IHS Towers Total growth of +9.7% (1) reflecting the critical nature of IHS activity despite current Nigerian macro environment ▪ +11.6% organic growth driven by new tenancies, new lease amendments ("technology tenants"), price escalation mechanisms as well as the positive impact of reset mechanisms
Slide 9: Stahl
Stahl Sales down 24.0% impacted by the rapid spread of COVID-19 shifting the company’s focus from growth towards containing the decline (-22.8% organic growth, FX impact -1.2%) ▪ Stahl began 2020 with positive volume and sales trends. Nevertheless in Q1, the impact of COVID-19 outbreak, mainly limit
Slide 10: Constantia Flexibles
Constantia Flexibles Stable total sales in the first half (+0.1% YoY), with a good performance in Europe, emerging countries being impacted by lockdowns (-0,1% organic growth, +0.5% scope effect, -0.4% FX) ▪ Robust performance from the Pharma end market, up +9.9 % but a steep decline in the Consumer
Slide 11: Cromology
Cromology Revenue down -16.8% in H1 due to extreme lockdown conditions followed by a strong rebound in activity since mid-May ▪ Sales down -17.2% organically ▪ Near complete shutdown of activity over the 2-month lockdown in Europe ▪ Faster than anticipated recovery with a significant rebound in DIY
Slide 12: Crisis Prevention Institute (CPI)
Crisis Prevention Institute (CPI) Revenue down –35.7% in H1 2020 due to the impact of the COVID-19 crisis and associated economic shutdowns and social distancing restrictions ▪ Revenue in Q1 had been trending up high-single-digits vs. prior period until the beginning of the lockdowns in response to
Slide 13: Limited leverage should provide a good level of financial resilience
Limited leverage should provide a good level of financial resilience Net debt to EBITDA(1) Net debt to EBITDA(1) Net debt (as of Dec. 31, 2019) (as of June 30, 2020) (as of June, 30, after IFRS 16) Bureau Veritas 1.9x 2.0x €1,616.9 Constantia Flexibles 2.0x 2.0x €403.0 Stahl 1.9x 2.1x €342.1 Cromolo
Slide 14: Managed the COVID-19 crisis: How our companies adapted
Managed the COVID-19 crisis : How our companies adapted to an unprecedented situation Bureau Veritas posted resilient first half despite the crisis Stahl protected its margins and cash, thanks to strong cost management Constantia Flexibles improved its margin, despite the difficult environment in em
Slide 15: Wendel financials
Wendel financials Half-year 2020 15 2020 H1 Results | July 30, 2020
Slide 16: H1 2020 consolidated results
H1 2020 consolidated results in millions of euros H1 2019 H1 2020 Contribution from subsidiaries 324.9 141.2 Financial & operating expenses and taxes -72.6 -57.9 Net income from operations (1) 252.2 83.4 Non-recurring income -35.1 -142.7 Impairment and impact of goodwill allocation -118.5 -220.0 Tot
Slide 17: Net Asset Value & Liquidity
Net Asset Value & Liquidity 17 2020 H1 Results | July 30, 2020
Slide 18: NAV of €138.6 as of June 30, 2020
NAV of €138.6 as of June 30, 2020 (in millions of euros) June 30, 2020 Listed equity investments Number of shares Share price(1) 3,103 • Bureau Veritas 160.8 million €19.3 3,103 Investments in unlisted assets (2) 3,369 Other assets and liabilities of Wendel and holding companies(3) 42 Cash and marke
Slide 19: Net Asset Value bridge since January 2020
• For approximately 80% of the increase: rebound in Net Asset Value bridge since January 2020 listed peers multiples used for valuation since the end of March 2020 • For approximately 20% of the increase: increase in companies’ aggregates following better than expected performance during H1 leading
Slide 20: Strong liquidity profile as of June 30, 2020
Strong liquidity profile as of June 30, 2020 €1.29 bn cash + €750m undrawn credit facility Oct. 2024 LTV ratio: 5.0% (1) Average cost of bond debt: 2.09% Average maturity: 5.0 years 500 500 €2.0 bn total liquidity 300 300 Moody’s credit rating: Baa2/stable Since September 5, 2018 S&P credit rating:
Slide 21: Leverage – Net debt at low level and strong resilience of LTV
Leverage – Net debt at low level and strong resilience of LTV Improved LTV 63.5% Strong resilience of LTV 47.5% 52.0% in spite of the market fall 36.7% 32.6% 31.9% 34.4% 22.9% 12.2% 6.1% 6.0% 5.0%(1) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 € billions 4.6 Net debt kept low 4.5
Slide 22: Conclusion
Conclusion 22 2020 H1 Results | July 30, 2020
Slide 23: What's next
What’s next Considerable uncertainties remain and therefore We will stay disciplined primarily seeking value creation opportunities in our portfolio while keeping an eye open for new opportunities which would add growth to our portfolio 23 2020 H1 Results | July 30, 2020
Slide 24: Q&A session
Q&A session 24 2020 H1 Results | July 30, 2020
Slide 25: Appendix
Appendix Financial information as of June 30, 2020 25 2020 H1 Results | July 30, 2020
Slide 26: H1 2020 performance of Group's unlisted companies
H1 2020 performance of Group’s unlisted companies EBITDA, Op. profit Organic Margin Sales Δ for BVI, growth EBIT for IHS(1) Constantia Flexibles €761.4m +0.1% -0.1% €97.1 12.7% Crisis Prevention $26.1m n.a. -35.7% $7.1 27.2% Institute(2) IHS $664.1 +9.7% +11.6% $160.7m 24.2% Stahl €316.8m -24.0% -22
Slide 27: H1 2020 consolidated sales
H1 2020 consolidated sales in millions of euros H1 2019 H1 2020 Δ Organic Δ Bureau Veritas 2,476.6 2,200.5 -11.2% -9.0% Constantia Flexibles 760.9 761.4 +0.1% -0.1% Cromology 348.6 290.2 -16.8% -17.2% Stahl 416.6 316.8 -24.0% -22.8% CPI (1) n/a 23.7 n/a -31.6% Consolidated sales (2) 4,002.7 3,592.6
Slide 28: H1 2020 sales of companies accounted for by the equity method
H1 2020 sales of companies accounted for by the equity method in millions of euros H1 2019 H1 2020 Δ Organic Δ IHS 535.9 602.8 +12.5% +11.6% 28 2020 H1 Results | July 30, 2020
Slide 29: IFRS - Summary table of main aggregates before and after IFRS 16
IFRS 16 - Summary table of main aggregates before and after the application of IFRS 16 Sales EBITDA (EBIT for IHS) Net debt (in millions) H1 2019 H1 2020 H1 2020 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 before after before after before after IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 IHS $605.5
Slide 30: Net income from operations
Net income from operations In millions of euros H1 2019 H1 2020 Bureau Veritas 222.8 93.0 Stahl 51.4 35.3 Constantia Flexibles 23.8 27.3 Cromology -14.2 4.5 Tsebo -2.7 -7.6 CPI - -7.6 Allied Universal (equity method) 20.4 - Saint-Gobain dividend 4.1 - IHS (equity method) 19.3 -3.4 Total contribution
Slide 31: Consolidated income statement
Consolidated income statement In millions of euros H1 2019 H1 2020 Net sales 4,002.8 3,592.6 Other income from operations 6.3 3.6 Operating expenses -3,626.1 -3,490.3 Net gain (loss) on sale of assets 7.3 -21.3 Asset impairment -11.8 -10.1 Other income and expenses -7.2 -20.7 Operating income 371.3
Slide 32: Consolidated balance sheet
Consolidated balance sheet In millions of euros 06/30/2020 12/31/2019 In millions of euros 06/30/2020 12/31/2019 Share capital 178.7 178.7 Goodwill 3,629.8 4,112.0 Premiums 53.3 53.3 Intangible assets, net 1,930.2 1,769.0 Retained earnings & other reserves 2,160.2 1,791.5 Property, plant & equipment
Slide 33: Conversion from accounting presentation to economic presentation
Conversion from accounting presentation to economic presentation Equity- Wendel Bureau Constantia method Group (in millions of euros) Cromology Stahl Tsebo CPI holding Veritas Flexibles investment total companies IHS Net income from operations Net sales 2,200.5 761.4 290.2 316.8 - 23.7 3,592.6 EBITD
Slide 34: Financial agenda
Financial agenda 34 2020 H1 Results | July 30, 2020
Slide 35: Financial agenda
Financial agenda 11/04/2020 2020 Investor Day / Presentation of NAV as of September 30, 2020, and Q3 2019 trading update (post-market release on 11/03/2020) 03/18/2021 2020 Full year results / Publication of NAV as of December 31, 2020 and consolidated financial statements (pre-market release) 04/28
Slide 36: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2020 H1 results presentation, to be held on July 30, 2020. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person. • No
Slide 37: 2020 H1 Results | July 30, 2020
37 2020 H1 Results | July 30, 2020