Eurazeo Se · EURONEXT:RF
Eurazeo — Eurazeo Paris Ord — FY2020 Earnings Presentation
44 slides from Eurazeo's earnings presentation, Mar 11, 2021
Slide 1: Full Year Results FY/2020
FY/2020 Full Year Results . © CUrazeo
Slide 2: Agenda
1 DELIVERING ON OUR STRATEGY IN 2020 VIRGINIE MORGON - CEO FULL YEAR 2020 RESULTS - 11.03.2021 AGENDA 2 STRONG VALUE CREATION IN A CHALLENGING ENVIRONMENT PHILIPPE AUDOUIN - CFO 3 POSITIVE OUTLOOK VIRGINIE MORGON - CEO 2
Slide 3: Delivering on our strategy in 2020
1 DELIVERING ON OUR STRATEGY IN 2020 FULL YEAR 2020 RESULTS - 11.03.2021 Virginie Morgon Chief Executive Officer 3
Slide 4: Delivering on our strategy to build a top performing investment manager
Delivering on our strategy to build a top performing investment manager Developing …with ESG at the heart … focusing on Asset Management … of our strategy… the most promising sectors FULL YEAR 2020 RESULTS - 11.03.2021 AUM (€bn) Weight of tech & healthcare in Private Equity AUM 22 43% 7% 8% x3 2017
Slide 5: Focusing on the most promising segments
Focusing on the most promising segments Weight of tech & healthcare in Private Equity AUM FULL YEAR 2020 RESULTS - 11.03.2021 43% Growth in AUM between 2017 and 2020 7% 8% x3 2020 2017 Group total : x3 Tech : x15 Healthcare : x5 15% Tech Healthcare 5
Slide 6: Key 2020 successes
Key 2020 successes STRONG AUM DEVELOPMENT SHAREHOLDER VALUE CREATION +6.3% AUM FUNDRAISING €80.3 €85.4 €21.8bn €2.9bn FULL YEAR 2020 RESULTS - 11.03.2021 +21% €70.7 NAV / share +16% +19% FY 2019 H1 2020 FY 2020 GROWTH IN RECURRING REVENUES REBOUND OF ASSET ROTATION IN H2 €2.8bn MANAGEMENT FEES FRE1
Slide 7: A leading high value-added European private markets investment manager
A leading high value-added European private markets investment manager Assets Under Management €21.8bn FULL YEAR 2020 RESULTS - 11.03.2021 Private Equity 73% of AUM1 Private Debt Real Assets 21% 6% VENTURE GROWTH BUYOUT PRIVATE FUNDS Digital Tech-Growth Upper Mid-Cap Primaries Direct Lending Real Es
Slide 8: AUM growth: on track to double within 5-7 years
AUM growth: on track to double within 5-7 years (in €bn) 21.8 +16% FULL YEAR 2020 RESULTS - 11.03.2021 18.8 +16% 16.3 2018 2019 2020 8
Slide 9: A new record year of fundraising in 2020
A new record year of fundraising in 2020 Amount raised from limited partners (in €bn) 2.9 +19% 2.4 FULL YEAR 2020 RESULTS - 11.03.2021 IPD V IPD V 1.6 ISIA Eurazeo Growth Fund III Eurazeo China Acceleration Fund Nov Santé Smart City II Private Funds Eurazeo Capital IV Rhône VI MCH V 2018 2019 2020 P
Slide 10: Building on our expertise
Building on our expertise TECH-GROWTH HEALTHCARE French Tech champion, investing in 24 of the Next 40 Fully integrated in health and biotech ecosystem FULL YEAR 2020 RESULTS - 11.03.2021 … … €1bn invested 3.2x avg. CoC €1.2bn invested 2-3x avg. CoC in 46 companies 27% IRR on exits in 73 companies on
Slide 11: Setting the ESG benchmark in our sector
Setting the ESG benchmark in our sector Placing sustainability and impact at the heart of our investment management to create value The best-in-class The most ambitious player in our industry ESG strategy A+ FULL YEAR 2020 RESULTS - 11.03.2021 CLIMATE Achieve net zero emissions by 2040 (SBTi) ON ALL
Slide 12: €2.8bn in acquisitions in 2020
€2.8bn in acquisitions in 2020 incl. €0.9bn from balance sheet Private Equity1: €1.8bn Private Debt1: €0.6bn Real Assets1 : €0.1bn c.50% TECH & TECH-ENABLED FULL YEAR 2020 RESULTS - 11.03.2021 Johnson Estate Intelligent service Premium sneakers, London (build-up) automation software Homecare product
Slide 13: Strong value creation through exits (€1.4bn in 2020)
Strong value creation through exits (€1.4bn in 2020) Private Equity 7.2 x Real Assets 4.1 x FULL YEAR 2020 RESULTS - 11.03.2021 3.2 x Gross CoC 2.1 x 73% 2.2 x 48% 38% 1.7 x Gross 18% 25% 37% IRR (NASDAQ IPO in Feb 2021) (closing in H1 2021) Buyout Tech-Growth Venture (selected examples) 13
Slide 14: Value creation from companies' transformation and development
Value creation mainly stemmed from companies’ transformation and development Value creation examples FULL YEAR 2020 RESULTS - 11.03.2021 (closing expected in H1 2021) 0.5x 3.2x 0.3x 2.1x 0.1x 1.0x 0.7x 0.7x 1.0x 1.0x Investment EBITDA expansion M&A Multiple effect Exit Investment EBITDA expansion M&
Slide 15: Strong value creation in a challenging environment
2 STRONG VALUE CREATION IN A CHALLENGING ENVIRONMENT FULL YEAR 2020 RESULTS - 11.03.2021 Philippe Audouin Directeur Général Finances - CFO 15
Slide 16: Key takeaways from FY20 financials
Key takeaways from FY20 financials ASSET MANAGEMENT FULL YEAR 2020 RESULTS - 11.03.2021 INVESTMENT PORTFOLIO BALANCE SHEET 16
Slide 17: Asset Management: continuing our fast revenue expansion
Asset Management: continuing our fast revenue expansion Management fees growing rapidly Improved FRE margin thanks to operating leverage (in €m) (in €m) +13% 80 +18% FULL YEAR 2020 RESULTS - 11.03.2021 70 34,0% 70 243 59 216 60 32,0% 186 50 47 30,0% 144 40 36 29% 30 28% 28,0% 20 26% 26,0% 10 25% 0 2
Slide 18: Asset Management: strong value creation in 2020
Asset Management: strong value creation in 2020 Asset Management Activity NAV 2020 €1.4bn FULL YEAR 2020 RESULTS - 11.03.2021 AUM and FRE growth of which iM Global Partner Value creation Mark-up of iM Global Partner value, in line with partial sale in early 2021 Full acquisition of Idinvest +23% 18
Slide 19: Investment Activity: sharp rebound in H2
Investment Activity: sharp rebound in H2 In €m 2019 PF H1 20 H2 20 2020 Net capital gains or loss & other revenue1 411 77 508 586 FULL YEAR 2020 RESULTS - 11.03.2021 Impairments -196 -417 153 -264 Others2 -116 -49 -82 -131 Contribution of the Investment Activity 100 -389 580 191 Impairments mainly C
Slide 20: Portfolio: strong performance outside of travel & leisure
Portfolio: strong performance outside of travel & leisure Economic EBITDA CATEGORY 4 CATEGORIES 1-31 (travel & leisure) FULL YEAR 2020 RESULTS - 11.03.2021 TECH-GROWTH (NOT CONSOLIDATED) CONSOLIDATED COMPANIES 575 +5% 605 342 Average revenue growth c.+45% for FY20 -20 2019 PF 2020 2019 PF 2020 H1 Ec
Slide 21: Significant value creation on c.90% of NAV
Significant value creation on c.90% of NAV Value creation in 2020 (%) Category 4 -53% FULL YEAR 2020 RESULTS - 11.03.2021 c.90% of NAV1 travel & leisure Category 1 Resilient activities due to a high level of recurring income NAV Category 2 €6.7bn Companies indirectly impacted +30% by lockdowns Categ
Slide 22: Consistent value creation across our portfolio
Consistent value creation across our portfolio Value creation in 2020 (%) +37% FULL YEAR 2020 RESULTS - 11.03.2021 +26% at constant +18% excl. WorldStrides +17% +19% forex 37% 17% +8% +5% 8% Upper-Mid Capital IIIBuyout & IV Lower-Mid PMEBuyout Tech-Growth Growth Brands Real Assets Patrimoine (Euraze
Slide 23: P&L, under IFRS standards
P&L, under IFRS standards In €m 2019 PF 2020 Fee Related Earnings (FRE) 59 70 Performance Related Earnings (PRE) 65 50 FULL YEAR 2020 RESULTS - 11.03.2021 A. Contribution of the Asset Management Activity 125 120 B. Contribution of the Investment Activity 100 191 C. Contribution of portfolio companie
Slide 24: Strong value creation in FY20 despite Covid crisis
Strong value creation in FY20 despite Covid 19 crisis Net Asset Value1 (€/share) +6.3% FULL YEAR 2020 RESULTS - 11.03.2021 +21% 85.4 80.3 73.8 70.7 70.9 62.5 59.3 52.7 54.3 40.4 34.7 Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 June 2020 Dec. 2020 1) NAV
Slide 25: Accelerated exits should crystallize additional value
Accelerated exits should crystallize additional value… Value crystallized by exits FULL YEAR 2020 RESULTS - 11.03.2021 +31% +25% +22% €2.5/sh €3.4/sh €2.7 /share +33% >+60% €2.8/sh €4.6/sh 2016 2017 2018 2019 2020 Last valuation before exits1 Value upside crystallized by exit 1) Sale of private and
Slide 26: Spot discount to NAV widened to -27%
Spot discount to NAV widened to -27% after 10 years of significant and regular improvement SPOT 3-YEAR AVERAGE SHARE PRICE DISCOUNT TO NAV (%) DISCOUNT -31% -15% -12% -29%1 FULL YEAR 2020 RESULTS - 11.03.2021 +12% pa net, incl. dividends €85.4 €34.7 NAV/share2 Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014
Slide 27: A robust financial position
Net cash position1 €354m FULL YEAR 2020 RESULTS - 11.03.2021 Revolving €1.5bn A robust credit facility undrawn financial position Dry €3.9bn powder undrawn 1) Net cash position proforma as of 5 March 2021 27
Slide 28: Proposed 20% increase in dividend
Proposed 20% increase in dividend supported by higher recurring revenues from Asset Management In € +6.7% +20% CAGR FULL YEAR 2020 RESULTS - 11.03.2021 1.50 1.25 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Proposed 28
Slide 29: Positive Outlook
3 Positive Outlook FULL YEAR 2020 RESULTS - 11.03.2021 Virginie Morgon Chief Executive Officer 29
Slide 30: On track to double our AUM within 5-7 years
On track to double our AUM within 5-7 years POSITIVE DOUBLING 202X MARKET OUTLOOK AUM FULL YEAR 2020 RESULTS - 11.03.2021 FOR PRIVATE CAPITAL in 5-7 years ACCELERATING FUNDRAISING 2020 SCALING UP INVESTMENT DIVISIONS 2017 OPTIMIZING OUR BALANCE SHEET 30
Slide 31: Some of our next calls
Some of our next calls GREEN ECONOMY SCALE-UP EUROPE ESG and impact investing Creating and developing tech champions FULL YEAR 2020 RESULTS - 11.03.2021 Sustainable infrastructure in Europe Sustainable Maritime Infrastructure 1bn€ target for Eurazeo Growth strategy Smart City HEALTH AWARENESS SMES N
Slide 32: Eurazeo's fundraising momentum set to continue
Eurazeo’s fundraising momentum set to continue Amount raised from LPs A rich program of fundraising (in €bn) in 2021-22 FULL YEAR 2020 RESULTS - 11.03.2021 2.9 2021 2022 2.4 Eurazeo Growth Secondary Fund Private Debt 1.6 Eurazeo Capital Eurazeo PME Digital Fund Eurazeo Patrimoine Eurazeo Brands 2018
Slide 33: Positive momentum carrying through
Positive momentum carrying through Q1 2021 FULL YEAR 2020 RESULTS - 11.03.2021 ACCELERATED AMBITIOUS NEW STRATEGIC ASSET ROTATION FUNDRAISING DEVELOPMENTS Tech-Growth secondary c.€600m YTD Healthcare fund Infrastructure iM Global Partner syndication 33
Slide 34: Key takeaways
SCALING UP OUR INVESTMENT DIVISIONS Further fundraising growth in 2021-2022 FULL YEAR 2020 RESULTS - 11.03.2021 GROWING Key RECURRING EARNINGS Increase shareholder takeaways remuneration / dividend STRATEGIC ASSET ROTATION NAV growth 34
Slide 35: Appendices
Appendices 35 FULL YEAR 2020 RESULTS - 11.03.2021
Slide 36: Assets Under Management
Assets Under Management In €m 31/12/2019 PF 31/12/2020 Change (%) vs. NAV 3rd party AUM Total AUM NAV 3rd party AUM Total AUM 31/12/2019 PF Private Equity, Eurazeo 4,211 6,786 10,997 4,536 8,465 13,001 18% Capital 2,850 1,273 4,124 2,523 1,226 3,749 -9% PME 410 364 774 570 470 1,040 34% FULL YEAR 20
Slide 37: Contribution of the Asset Management Activity
Contribution of the Asset Management Activity In €m 2019 PF 2020 % Management fees 216 243 +12.7% • from 3rd party limited partners 141 163 +16.0% • from calculated Eurazeo Investment Activity 75 80 +6.6% FULL YEAR 2020 RESULTS - 11.03.2021 Operating expenses1 -156 -173 +10.8% Finance costs and othe
Slide 38: Contribution of the Investment Activity
Contribution of the Investment Activity In €m 2019 PF 2020 Capital gains or loss & other revenue(1) 474 633 Performance fees paid to Eurazeo Asset Management Activity -63 -48 FULL YEAR 2020 RESULTS - 11.03.2021 Impairments -196 -264 Investment-related expenses -28 -37 Management fees paid to Eurazeo
Slide 39: AUM development: €21.8bn
AUM development: €21.8bn (in €m) 2,893 -892 1,262 -288 21,760 FULL YEAR 2020 RESULTS - 11.03.2021 18,785 December 31, 2019 Fundraising Distributions Change in Others December 31, 2020 asset value 39
Slide 40: Solid financial structure
Solid financial structure Cash position Eurazeo SE (in €m) FULL YEAR 2020 RESULTS - 11.03.2021 583 -816 -33 21 67 533 533 300 267 267 287 287 354 31 Dec. 2019 Proceeds & Investments & Share buy-backs Others Net cash Asset Rotation & Net cash dividends received Reinvestments 31 Dec. 2020 Others 5 Mar
Slide 41: A long-term shareholder base & a strong corporate governance
A long-term shareholder base & a strong corporate governance A strong 2.3% 3.5% corporate governance 3.5% Rhône Treasury Richardson Partners shares family Separation of the roles FULL YEAR 2020 RESULTS - 11.03.2021 of Chairman and CEO 16.7% Independence Michel David-Weill of the Supervisory Board: C
Slide 42: Financial Agenda
Financial Agenda 28 April, 2021 20 May, 2021 28 July, 2021 FULL YEAR 2020 RESULTS - 11.03.2021 2021 AGM 1st Quarter 2021 Revenues Half-Year 2021 Results 42
Slide 43: About us
About us EURAZEO CONTACTS ANALYST COVERAGE Investor relations CM-CIC Alexandre Gérard Pierre Bernardin Haojing Pan Exane BNP Paribas Mourad Lahmidi pbernardin@eurazeo.com hpan@eurazeo.com Goldman Sachs Matija Gergolet / Arash Aslfallah FULL YEAR 2020 RESULTS - 11.03.2021 +33 (0)1 44 15 16 76 +33 (0)
Slide 44: Disclaimer
Disclaimer 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 this