Eurazeo Se · EURONEXT:RF
Eurazeo — Eurazeo Paris Ord — H1 2022 Earnings Presentation
33 slides from Eurazeo's earnings presentation, Jul 27, 2022
Slide 1: Half Year 2022 Results
HALF YEAR 2022 RESULTS July 27, 2022
Slide 2: Agenda
1 H1 HIGHLIGHTS Agenda 2 H1 FINANCIAL RESULTS 3 CONCLUSION HALF YEAR 2021 RESULTS - 27.07.2021
Slide 3: H1 Highlights
3 H1 1 HIGHLIGHTS Virginie MORGON Chief Executive Officer HALF YEAR 2022 RESULTS - 27.07.2022
Slide 4: Successful execution of Eurazeo's strategy
SUCCESSFUL EXECUTION OF EURAZEO’S STRATEGY 4 ASSET PORTFOLIO ASSET MANAGEMENT PERFORMANCE ROTATION ESG AUM Consolidated ~€2.0bn exits YTD +27% CO2 reduction €32.5bn yoy portfolio EBITDA 3.6x CoC1 trajectory - +40% - - H1 fundraising - €2.9bn Acceleration of €1.8bn Growth portfolio selective investme
Slide 5: Fundraising momentum
FUNDRAISING MOMENTUM 5 THIRD PARTY FUNDRAISING 5.2 (€bn) H1 2022 highlights Closing of PME IV above €1bn target Buy Out ECAF (CIC) : €200M in H1 2022 2.9 2.4 Private EPDV VI secured €1bn on a €2bn program debt ESMI : €210M first close on €350M fund 1.6 Venture c€380M raised in H1 2022 & Growth Kurma
Slide 6: Accelerating inflows from the retail segment
ACCELERATING INFLOWS FROM THE RETAIL SEGMENT 6 Accelerating retail A differentiated INFLOWS PLATFORM 20+ years of operation c.3bn€ of AUM with 120k+ clients €550m 80+ blue-chip partners (banks, life insurers, IFAs…) €290m +59% Ability to structure and launch €380m tailormade and innovative funds €24
Slide 7: Well positioned in a more challenging market environment
WELL POSITIONED IN A MORE 7 CHALLENGING MARKET ENVIRONMENT • Favorable sector exposure • Q2 performances in line with Q1 BUYOUT1 & • Category leaders with pricing • Post-pandemic normalization: PRIVATE power (>90% of portfolio considered o Travel recovery inflation proof) o rebalancing between physi
Slide 8: Good execution of asset rotation
GOOD EXECUTION OF ASSET ROTATION 8 Exits – H1 2022 Investments – H1 2022 (in €bn) (in €bn) Post-closing exits 2.9 CORE SECTORS 1.3 Third 0.2 Private Healthcare 1 party 0.7 Average MOIC debt 1.1 = 3.6x Consumer 1 Financial Services (build-ups) Private 0.7 1.1 Equity & Tech-enabled Business-services B
Slide 9: New steps towards a more inclusive, low carbon economy
NEW STEPS TOWARDS A MORE INCLUSIVE, LOW 9 CARBON ECONOMY FURTHER PROGRESS €4.1 Bn IN OUR CLIMATE TRAJECTORY invested in the transition to a more PORTFOLIO LEVEL inclusive, low-carbon economy Carbon pricing of portfolio & illustrative decarbonization 89 % pathway FUND LEVEL 1 year ahead in the public
Slide 10: H1 Financial Results
10 H1 2 FINANCIAL RESULTS William Kadouch-Chassaing General Manager, Finance and Strategy HALF YEAR 2022 RESULTS - 27.07.2022
Slide 11: Strong AUM growth
STRONG AUM GROWTH 11 Third Party AUM, €bn Balance Sheet, €bn Total AUM, €bn +32% +27% 23.4 32.5 17.7 +16% 25.6 + 7.9 9.1 = H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 HALF YEAR 2022 RESULTS - 27.07.2022
Slide 12: Double digit growth in recurring earnings from asset management
DOUBLE DIGIT GROWTH IN RECURRING 12 EARNINGS FROM ASSET MANAGEMENT MANAGEMENT FEES (in €m) 315 243 216 186 +30% 39% growth 181 116 140 in third party management fees 85 99 2018 2019 2020 2021 PF 1 2022 Management fees from FEE RELATED EARNINGS (FRE, €m) third parties representing 100 90 96 77% of to
Slide 13: Solid contribution from portfolio companies
SOLID CONTRIBUTION FROM PORTFOLIO COMPANIES 13 CONSOLIDATED INVESTMENT COMPANY PORTFOLIO GROWTH COMPANIES (NOT CONSOLIDATED) 2 ECONOMIC REVENUE1, €m ECONOMIC EBITDA1, €m REVENUE1, €m +43% 2,546 +40% 1,777 400 +46% 285 H1 2021 H1 2022 H1 2021 H1 2022 1- at constant Eurazeo scope and FX change – EBITD
Slide 14: Resilient in an environment of rising interest rates
RESILIENT IN AN ENVIRONMENT 14 OF RISING INTEREST RATES CORPORATE LEVEL STRATEGIES / PORTFOLIO LEVEL Half of strategies do not use leverage Prudent approach to leverage for the rest of the portfolio Net cash proforma1 = Mid large Buy-out2 : +21 M€ Buyout Private Debt • <5x EBITDA leverage • 5 years
Slide 15: Well on track to execute the investment company exit plan
WELL ON TRACK TO EXECUTE THE 15 INVESTMENT COMPANY EXIT PLAN 4.4x GROSS CASH-ON-CASH 3.2x 3.7x c.€1.1bn MULTIPLE 3.1x proceeds for Eurazeo (CoC) GROSS IRR 31% 30% 25% 42% c.€0.8bn capital gains expected to be booked in H2 Trader Int. Vitaprotech Orolia Reden Solar announced in June 22 announced in J
Slide 16: Profit & Loss
PROFIT & LOSS 16 In €m H1 2021 PF H1 2022 A. Contribution of the Asset Management Activity 93 44 B. Contribution of the Investment Activity 460 -161 C. Contribution of portfolio companies net of finance costs 84 97 Amortization of contracts and other assets relating to goodwill allocation -82 -100 I
Slide 17: Net asset value at 115.5€ / share
NET ASSET VALUE AT 115.5€ / SHARE 17 INVESTMENT PORTFOLIO ASSET MANAGEMENT TOTAL NET ASSET VALUE €/share €/share €/share -3.9% -1.9% 117.8 115.5 93.2 89.5 +5.5% + = 24.7 26.0 FY 2021 H1 2022 FY 2021 H1 2022 FY 2021 H1 2022 HALF YEAR 2022 RESULTS - 27.07.2022
Slide 18: NAV investment portfolio
NAV INVESTMENT PORTFOLIO 18 NAV INVESTMENT PORTFOLIO PORTFOLIO EXCL. GROWTH €/share1 Realizations above NAV Forex impact (USD) -3.9% Growth in portfolio sales & EBITDA Prudent approach to buyout valuation • using LTM • in line or below market spot multiples GROWTH PORTFOLIO Strong revenue growth, ro
Slide 19: NAV asset management
NAV ASSET MANAGEMENT 19 NAV ASSET MANAGEMENT VALUATION BASED ON €/share MULTI-CRITERIA APPROACH Growth in recurring earnings +5.5% (FRE LTM +31% at 106 M€) Prudent approach to FRE valuation 24.7 26.0 • Sum of the parts • LTM used as base for calculation • Cautious approach to multiples • Low end of
Slide 20: Conclusion
20 CONCLUSION 3 Virginie MORGON Chief Executive Officer HALF YEAR 2022 RESULTS - 27.07.2022
Slide 21: Conclusion
CONCLUSION 21 Continuing our transition towards an AM model Portfolio performance reflecting quality of assets and platform diversification Exits confirming good performance of investments and prudent approach to NAV Financial firepower and agility paving the way for future operational leverage Best
Slide 22: Q&A
22 Q&A HALF YEAR 2022 RESULTS - 27.07.2022
Slide 23: Appendices
23 APPENDICES HALF YEAR 2022 RESULTS - 27.07.2022
Slide 24: Assets under management
ASSETS UNDER MANAGEMENT 24 In €m 31/12/2021 30/06/2022 Change (%) vs. vs. NAV 3rd party AUM Total AUM NAV 3rd party AUM Total AUM LTM 31/12/2021 PF Private Equity, Eurazeo 6,192 12,677 18,869 6,883 13,608 20,491 26% 9% Mid-large buyout 3,056 1,818 4,874 3,386 2,041 5,427 16% 11% Small-mid buyout 760
Slide 25: Contribution of the asset management activity
CONTRIBUTION OF THE ASSET MANAGEMENT ACTIVITY 25 In €m H1 2021 PF H1 2022 % Management fees 140 181 +30% _ From 3rd party limited partners 100 139 +39% _ From calculated Eurazeo Investment Activity 39 42 +7% Operating expenses1 -99 -131 +32% Fee Related Earnings (FRE) 41 50 +24% Performance fees, re
Slide 26: Contribution of the investment activity
CONTRIBUTION OF THE INVESTMENT ACTIVITY 26 In €m H1 2021 PF H1 2022 Capital gains or loss & other revenue1 593 -68 Performance fees paid to Eurazeo Asset Management Activity -48 - Impairments -29 -2 Investment-related expenses -24 -31 Management fees paid to Eurazeo Asset Management Activity -39 -42
Slide 27: Portfolio breakdown
PORTFOLIO BREAKDOWN 27 BUY-OUT1 SEGMENT SECTOR CLASSIFICATION In % of AUM 23% 29% Consumer Tech Enabled Business Services 11% Travel & Leisure 25% Financial Services 12% Healthcare 1 SMBO and MLBO HALF YEAR 2022 RESULTS - 27.07.2022
Slide 28: NAV growth since 2011
NAV GROWTH SINCE 2011 28 +14% p.a. net, incl. dividends €117.8 €115.5 €34.7 NAV/share1 Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 June 2022 Portfolio / AM NAV 1- NAV per share is adjusted for bonus share allocation HALF YEAR 2022 RES
Slide 29: Shareholder base & governance
SHAREHOLDER BASE & GOVERNANCE 29 3% 2% 2% Rhône Treasury Group Executives & CORPORATE GOVERNANCE 4% shares Group Others Richardson family _ Separation of the roles of Chairman and CEO 16% _ Independence of the Supervisory Board: Michel David-Weill Concert 7 independent members out of 132 Shareholdin
Slide 30: Financial agenda
FINANCIAL AGENDA 30 November 8, 2022 March 8, 2023 May 16, 2023 3RD QUARTER 2022 FULL YEAR 2022 1ST QUARTER 2023 REVENUES RESULTS REVENUES HALF YEAR 2022 RESULTS - 27.07.2022
Slide 31: About us
ABOUT US 31 EURAZEO CONTACTS INVESTOR RELATIONS ANALYST COVERAGE Bank of America Philip Middleton Pierre Agathe Berenberg Christoph Greulich BERNARDIN Chanoine CM-CIC Alexandre Gérard pbernardin@eurazeo.com achanoine@eurazeo.com +33 (0)1 44 15 16 76 +33 (0)1 44 15 87 68 Degroof Petercam Joren Van Ak
Slide 32: Disclaimer
DISCLAIMER 32 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
Slide 33: www.eurazeo.com
www.eurazeo.com