Institut De Developpement Industriel Sca · EURONEXT:IDIP

Institut De Developpement Industriel Sca — IDI — FY2022 Earnings Presentation

44 slides from Institut De Developpement Industriel Sca's earnings presentation, Mar 27, 2023

  1. Slide 1: Trust is an investment that yields excellent returns

    Trust is an investment that yields excellent returns Annual Results 2022 27 MARCH 2023

  2. Slide 2: Contents

    Contents 01. Who are we? 03. NAV and Discount IDI in brief p.4 NAV and dividends since 2014 p.27 An established key player p.5 Change in the discount since 2014 p.28 IDI’s traditional core business: equity investment p.7 A long-term return on investment p.29 A team dedicated to the success of IDI p.

  3. Slide 3: Who are we?

    01 Who are we? Ateliers de France I French specialist in high-end painting and decorative arts ANNUAL RESULTS 2022 3

  4. Slide 4: IDI in brief

    IDI in brief  An French private equity investor in SME and small-cap companies, listed for over 30 years Listed on the Paris Stock Exchange Established by the Privatised, Opening to third Acquisition of Disposal of ESG: a well- NAV per share: Development of third- Ministry of Industry 100% parties

  5. Slide 5: An established key player (1/2)

    An established key player (1/2): More than 50 years of experience  Established in 1970  Executive committee has worked together for 17 years: Christian Langlois-Meurinne, CEO Julien Bentz, Managing Partner Tatiana Nourissat, Corporate Secretary Marco de Alfaro, Partner Strategic vision and ability

  6. Slide 6: An established key player (2/2)

    An established key player (2/2): In control over time  Stability of shareholders and teams  Long-term independence and vision  An ‘unlimited’ investment horizon Strong commitment from IDI’s management team and employees  Buyback in February 2021, by IDI’s management team and employees, of the lo

  7. Slide 7: IDI's traditional core business: equity investment

    IDI’s traditional core business: equity investment  A track record that enables equity investment without funding constraints  Fully flexible investment and exit horizons on every project  Optimisation of timing and exit price  Tailored profile for projects with strong organic growth and/or a pl

  8. Slide 8: An investment team dedicated to IDI's success

    An investment team dedicated to IDI’s success Julien Bentz Marco de Alfaro Tatiana Nourissat Managing Partner Partner Corporate Secretary & General Counsel Member of the Executive Committe Member of the Executive Committe Member of the Executive Committe j.bentz@idi.fr m.dealfaro@idi.fr t.nourissat@

  9. Slide 9: Equity investment approach (1/3)

    Equity investment approach (1/3) Support French SMEs and mid-caps to develop into European or world champions  Independent investments of €25 - 50 million with a significant capacity to engage co-investors up to €100 million  Strong support in strategic dialogue and external growth process Pursue

  10. Slide 10: Equity investment approach (2/3)

    Equity investment approach (2/3) A selective investment policy  Rigorous, in-depth analysis of every project, in line with analytical best practices:  Due diligence: strategic/market, finance, legal/fiscal/social, ESG, IT, etc.  With assistance from external advisors that have proven their expert

  11. Slide 11: Equity investment approach (3/3)

    Equity investment approach (3/3) Genuine added-value is brought to holdings through the introduction of best practices, structuring and work on a growth strategy:  Maintaining a reasonable number of holdings enables us to allocate resources to each one: contact with each company’s management team i

  12. Slide 12: Portfolio on 22 March 2023

    Portfolio on 22 March 2023 Majority stakes and co-investments in France and Europe Minority interests in France and Europe Leader in salary portage, staffing and services for freelance French specialist in high-end, decorative painting and €390 m €425 m Revenue: workers through Freeland (ITG, Porteo

  13. Slide 13: Capacity to support the international development of our holdings

    Capacity to support the international development of our holdings EUROPE REST OF THE WORLD France (Ateliers de France, Ekosport, Winncare, Talis, US (Ateliers de France, Dubbing Brothers, Dubbing Brothers, Culturespaces, Groupe Mister FCG, Culturespaces) Menuiserie, Freeland, CDS, CFDP, Voip Telecom

  14. Slide 14: Investments and disposals in 2022 (1/2)

    Investments and disposals in 2022 (1/2) External growth External growth External growth External growth External growth External growth Disposal Dubbing Brothers Dubbing Brothers Dubbing Brothers CDS FCG Groupe Positive Formalian Ad-Hoc Studios Interopa Film Eurotroll (ex Rydoo) Selcom Marketing 1BY

  15. Slide 15: Investments and disposals in 2022 (2/2)

    Investments and disposals in 2022 (2/2) INVESTMENTS (in € million) DISPOSALS (in € million) 150 300 250 100 200 140.6 287.7 150 50 100 172.1 54.0 50 47.4 23.3 31.4 25.9 1.3 20.4 0 0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022  Culturespaces  Formalian: 3x growth, IRR of 22%  Reinvestment in

  16. Slide 16: Key figures: Private Equity Europe portfolio

    Key figures: Private Equity Europe portfolio  Strong growth in combined revenues and volumes of business* of holdings between 2021 and 2022: +35%  Strong increase in combined EBITDA* of holdings between 2021 and 2022: +40%  Gross IRR of the portfolio over 10 years: +22.7%  Gross IRR of the portf

  17. Slide 17: Outlook for 2023

    Outlook for 2023 The investment teams continue to be ready to seize opportunities.  4 announcements in 3 months:  Talis Education: supported the Talis Education Group in its acquisition of the Fore Group, the leading private operator in training and apprenticeship in the French Antilles and Guyana

  18. Slide 18: Omnes

    A structuring operation in two parts: IDI takes a minority stake in the capital of Omnes A benchmark management company in the energy transition Overview of Omnes  The operation will enable Omnes Capital to re-focus on the energy transition through four Infrastructure activities: Omnes o Renewable

  19. Slide 19: idiCo

    A structuring operation in two parts: the creation of an idiCo subsidiary dedicated to third-party management in Europe idiCo becomes IDI’s third-party management company in Europe Overview of idiCo Private Equity  Focused on three activities linked to Private Equity: c. €1 billion idiCo LBO Lower

  20. Slide 20: 2022 Results

    02 2022 Results DUBBING BROTHERS | European specialist in multilingual dubbing of films and series ANNUAL RESULTS 2022 20 ANNUAL RESULTS 2022

  21. Slide 21: Key figures

    Key figures: A strong balance sheet  Consolidated shareholder equity of €673 million at end 2022, an increase of €60 million in one year  Net income, Group share, of €80.4 million  Net investment capacity of €124 million A robust performance  NAV/share: €89.45 at end 2022  NAV/share: +12% in on

  22. Slide 22: Accounts on 31 December 2022

    Accounts on 31 December 2022 Selected consolidated financial data Consolidated results (in € million) Dec 22 Dec 21 Balance sheet (in € million) Dec 22 Dec 21 Revenue from investment activities 94.2 146.2 Equity, Group share 672.8 612.4 Other revenues and operational NAV (in € million) 672.8 612.4 e

  23. Slide 23: A solid financial structure

    A solid financial structure Equity, Group share (in € million) Liquid assets and treasury (in € million) (net of debt) 700 160 600 140 500 120 100 400 672.8 80 300 612.4 142.8 143.7 501.4 518.4 60 123.6 123.8 200 40 100 20 0 0 2019 2020 2021 2022 2019 2020 2021 2022  Net investment capacity of €123

  24. Slide 24: Change in NAV per share in 2022

    Change in NAV per share in 2022 120.00 +12.01% 100.00 89.45 - 1.97 13.45 - 1.89 82.16 80.00 - 2.30 60.00 40.00 20.00 - NAV on 31/12/2021 Ordinary dividend Revenues from Other revenues, Other variations NAV on 31/12/2022 investment activities expenses and taxes ANNUAL RESULTS 2022 24

  25. Slide 25: Distribution of NAV

    Distribution of NAV Emerging PE: - IDI Emerging Markets - Direct investments PE France and Europe 4% 78% 18% Liquid assets and other assets ANNUAL RESULTS 2022 25

  26. Slide 26: NAV & Discount

    03 NAV & Discount TALIS EDUCATION I National network of business schools specialising in apprenticeship programmes ANNUAL RESULTS ANNUAL RESULTS 2022 2022 26

  27. Slide 27: Change in NAV and Dividends since 2014

    Change in NAV and Dividends since 2014 * With dividends reinvested. IDI distributed €18.8 in dividends between 2015 and 2022. ANNUAL RESULTS 2022 27

  28. Slide 28: Change in the discount since 2014

    Change in the discount since 2014 ANNUAL RESULTS 2022 28

  29. Slide 29: A long-term yield on investment

    A long-term yield on investment  An annual return of over 15% (with dividends reinvested) for the last 32 years, a multiple of 83x  In 2022, the share price adjusted for the dividend (€2.30) fell slightly by 2.57%  The yield on the ordinary dividend was 4.57% of the average share price in 2022. 

  30. Slide 30: Regular dividends among the highest in the market

    Regular dividends among the highest in the market Percentage of dividends paid relative to share price on 31 December N-1 25,00% 20,00% 15,00% 10,00% 5,00% 0,00% IDI Wendel Eurazeo Altamir 3i 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202

  31. Slide 31: Visible out-performance over time

    Visible out-performance over time Change in stock price since 2013 (base 100) IDI WENDEL EURAZEO SIPAREX ALTAMIR AMBOISE 3i GRP III Electra ELTA GBL GBLB Deutsche Beteiligungs DBA Dunedin Enterprise DNE SOFINA 800 700 600 500 400 300 200 100 0 ANNUAL RESULTS 2022 31

  32. Slide 32: Outlook

    04 Outlook FCG I World-leading producer of technical composite materials ANNUAL RESULTS ANNUAL RESULTS 2022 2022 32

  33. Slide 33: IDI's strategic evolution

    IDI’s strategic evolution IDI developed an equity investment strategy for SME/small-cap companies that has been tested across cycles In order to support the growth in the size of its balance sheet, which has more than doubled in six years without an increase in the number of investments, IDI will ma

  34. Slide 34: First report on ESG

    05 First report on ESG En 2020, IDI poursuit son soutien l’association AZE pour l’accès à l’éducation à Madagascar In 2020, IDI continued to support the charity AZE’s efforts to improve access to education in Madagascar ANNUAL RESULTS ANNUAL RESULTS 2022 2022 34

  35. Slide 35: Implementation of ESG governance

    Implementation of ESG governance  CSR Committee  ESG Internal Working Group In line with the recommendation of the Code of Governance of This working group meets quarterly to roll out our strategy and the company Middlenext, a CSR (Corporate Social contribute to our ESG (Environmental Social Gover

  36. Slide 36: Integration of ESG into the investment cycle

    Integration of ESG into the investment cycle Investment Investment Due Diligence Holding period decision agreement • List of sectors posing • Systematic integration of • Sharing of ESG objectives, • Dialogue and collaboration reputational risk ESG considerations into policies and practices with with

  37. Slide 37: Status report on the ESG portfolio review

    Status report on the ESG portfolio review STAGE 1 STAGE 2 STAGE 3 Materiality diagnosis Maturity analysis Action plan Identify and map relevant ESG Evaluate the company’s level of maturity Formulate recommendations to be challenges that may have an impact relative to the challenges identified and di

  38. Slide 38: Monitoring the ESG actions of our holdings (1/4)

    Monitoring the ESG actions of our holdings (1/4) Company Activity Actions Craftsmanship  Dominique Niel, director of the Ateliers de France, won the award for Small-Cap Director at the Grand Prix des Talents Féminins, in / Luxury recognition of the role models and best practices in diversity at Ate

  39. Slide 39: Monitoring the ESG actions of our holdings (2/4)

    Monitoring the ESG actions of our holdings (2/4) Company Activity Actions Insurance  Added CSR concepts to its mission statement: We exist to promote a peaceful society. We act to transform conflicts into lasting agreements. We work to prevent, resolve, finance and pacify. Legal protection Art / Cu

  40. Slide 40: Monitoring the ESG actions of our holdings (3/4)

    Monitoring the ESG actions of our holdings (3/4) Company Activity Actions E-commerce / Retail  One-off bonus of €5,000 for all employees in recognition of the Group’s good results  Supports a number of humanitarian projects (100% citizen-led) Outdoor  Contributes to youth employment: partnership

  41. Slide 41: Monitoring the ESG actions of our holdings (4/4)

    Monitoring the ESG actions of our holdings (4/4) Company Activity Actions  Planning to become a mission-driven company Greentech  Contributes through its activities to three UN Sustainable Development Goals (SDG):  SDG 7: Affordable and clean energy Energy  SDG 12: Responsible consumption and pr

  42. Slide 42: 2023 outlook: Implementation of a reporting system for ESG indicators and carbon footprint

    2023 outlook: Implementation of a reporting system for ESG indicators and carbon footprint Implementation of an ESG reporting tool Concerning the objectives fixed by the Principles for Responsible Investment (PRI), the publication of relevant information on ESG issues relating to holdings (Principle

  43. Slide 43: Conclusion

    C O N C L U S I O N  A pioneering private equity investor in France, listed for more than 30 years  A longevity that reflects the performance and agility to weather cycles and crises  A shareholder base and investment team that have remained stable over time  A management team and employees who

  44. Slide 44: idi.fr

    idi.fr 23-25, Avenue Franklin Delano Roosevelt 75008, Paris I France + 33 1 55 27 80 00

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