Slide 1: H1 2019 Trading Update
H1 2019 Trading Update July 30, 2019 2019 LONG-TERM INVESTOR 1 2019 H1 Trading Update | July 30, 2019
Slide 2: Last six months key achievements
Last six months key achievements Solid performance overall, thanks to a resilient portfolio in a patchy economic environment €808m disposals(1) and €423m invested in our companies and to buy back our shares Strong corporate financial structure, with a 2.8%(1) LTV pro forma of AU transaction Debt mat
Slide 3: H1 2019 key figures
H1 2019 key figures as of June 30, 2019 Net Asset Value : • €165.4 per share, up 12.2% since December 31, 2018 Consolidated sales of €4.3bn, up +2.7% 3 2019 H1 Trading Update | July 30, 2019
Slide 4: Main portfolio developments
Main portfolio developments Strong momentum in the first half • Revenue up +5.9 % in H1 with an organic growth of +4.0% in Q1 and Q2 • 4 transactions which supported 2 of the 5 Growth Initiatives 4 acquisitions with combined revenues totaling c. $180m Successful debt refinancing extending maturity b
Slide 5: Performance of Group companies
Pe rfor mance o f Group c ompani es Half Year 2019 Figures are unaudited and before IFRS 16 5 2019 H1 Trading Update | July 30, 2019
Slide 6: Bureau Veritas
Bureau Veritas Revenue of €2.5bn, up 5.9% year-on-year, Organic growth reached +4.0% in H1 2019, of which +4.0% in Q2 Adjusted operating margin up +30bps to 15.2%(1) (15.1% at constant currency, up 25 bps) Strong improvement in free cash flow +55.2% YoY(1) Adjusted net debt / EBITDA ratio
Slide 7: H1 2019 performance of Group's main unlisted companies
H1 2019 performance of Group’s main unlisted companies Sales Δ Organic EBITDA EBITDA Margin growth EBIT for IHS (EBIT Margin for IHS) IHS $605.5m +9.1% +12.0% $176.4m 29.1% Stahl €416.6m -7.9% -8.7% €94.0m 22.6% Constantia Flexibles €760.9m +0.2% -2.9% €89.3m 11.7% Allied Universal $3,592.0m +31.9%
Slide 8: IHS Towers
IHS Towers Strong organic growth +12% organic growth driven by the increase of owned & MLL towers (+3.1%) and price escalation mechanisms The Point-of-Presence lease-up rate increased to 1.54x while the technology tenancy ratio increased to 2.40x Changes in local exchange rates to the US dolla
Slide 9: Stahl
Stahl Sales down 7.9%, Leather division impacted by difficult market conditions in the automotive and shoe sectors Double digit volume decline compensated by positive price and mix translating into negative 8.7% organic growth Exposure to automotive markets has weighed on leather chemicals & per
Slide 10: Constantia Flexibles
Constantia Flexibles +0.2% total growth: (-2.9% organic growth, +2.7% scope, +0.4% FX impact) Organic growth impacted by lower volumes in Consumer and Pharma divisions Creative Polypack Ltd. (India) acquisition closed in April 2018 Positive FX impacts mainly driven by USD, VND, INR and GBP EBI
Slide 11: Allied Universal
Allied Universal +31.9% total revenue growth, driven by a combination of acquisitions and organic growth Completed acquisition of U.S. Security Associates (“USSA”) and four bolt-ons Realized organic growth of +4.9% (2.4% including 2019 acquisitions and USSA on a pro forma basis) Adj. EBITDA up +
Slide 12: Tsebo
Tsebo Growth impacted by FX and macro headwinds Organic growth down 2.0%, in the context of sluggish South African economy and general elections held early May that impacted companies and consumers and led to increase local competition Positive scope change (+6.3%) with acquisitions of Servcor i
Slide 13: Cromology
Cromology Total growth of 2.1% driven by organic growth Cromology's sales totaled €348.6 million, up 2.1% compared with H1 2018 despite a negative calendar effect of -0.9 day in H1 vs. 2018 Organic growth is up 2.3% over the period coming from France and international activities -0.4% scope ef
Slide 14: Our portfolio benefits from balanced exposure to geographies, sectors, listed & unlisted
Our portfolio benefits from balanced exposure to geographies, sectors, listed & unlisted … % OF GROSS ASSET VALUE SECTOR EXPOSURE (1) GEOGRAPHIC EXPOSURE (1) Telecom & Energy Infrastructure 11% Africa & other 16% 21% North America Industry 27% 6% Health Automotiv e & 4% Unlisted assets 46% Transport
Slide 15: Net Asset Value & Return to Shareholders
N et A sset Val ue & Return to Sharehol der s 15 2019 H1 Trading Update | July 30, 2019
Slide 16: NAV of €165.4 as of June 30, 2019
NAV of €165.4 as of June 30, 2019 (in millions of euros) Jun. 30, 2019 Listed equity investments Number of shares Share price(1) 3,471 • Bureau Veritas 160.8 million €21.5 3,452 • Saint-Gobain 0.6 million €33.7 20 Investments in unlisted assets(2) 4,369 Other assets and liabilities of Wendel & attac
Slide 17: Net Asset Value bridge since the start of 2019
Net Asset Value bridge since the start of 2019 In euros +0.8 +1.9 -2.8 +7.9 -2.4 Share BV buyback(1) Wendel 165.4 dividend dividend Others (in shares) +1.1 +11.5 Unlisted Saint-Gobain Assets value 147.4 Bureau Veritas NAV per share NAV per share as of as of Dec. 31, 2018 Jun. 30, 2019 (1) 1,169,399
Slide 18: Net debt remains at low level
Net debt remains at low level Net debt, € millions Improved LTV & Rating 12.2% 1163 6.1% 6.6% 525 3.8% 442 301 218 2.8% Dec. 31, 2017 Dec. 31, 2018 Mar. 31, 2019 Jun. 30, 2019 Dec. 31, 2017 Dec. 31, 2018 Mar. 31, 2019 Jun. 30, 2019 Pro forma Pro forma of announced of announced disposals disposals in
Slide 19: Improved debt profile as of September 30, 2019
Improved debt profile as of September 30, 2019 +€750m undrawn credit 500 500 facility Oct. 2023 Average cost of bond debt: 2.09% Average maturity: 300 300 5.8 years 212 Pro forma of the repayment of the July 2019 Saint-Gobain exchangeable bond and bond maturing in Sept. 2019 5.875% 1.0% 2.75% 1.375%
Slide 20: Dividend & share buyback: Return to shareholders
Dividend & share buyback Return to shareholders • €200m share buyback launched in Q2 2019 • €2.80 per share dividend paid to shareholders, up +5.7% 2.80 € 2.65 € Dividend increases every year Annualized TSR since June 13, 2002 2.35 € 2.15 € +12.0% 2.00 € 1.85 € 1.75 € 1.25 € 1.30 € +4.3% Euro Stoxx
Slide 21: Conclusion and Q&A
Conclusion and Q&A Titre du document | Date 21 2019 H1 Trading Update | July 30, 2019
Slide 22: Appendix 1
A ppe ndi x 1 22 2019 H1 Trading Update | July 30, 2019
Slide 23: 2017-2020 main strategic pillars unchanged
2017-2020 main strategic pillars unchanged TSR ~ 50% < €2.5bn in double unlisted net debt digits DEVELOP AND CRYSTALLIZE VALUE … by pursuing the long-term growth of our portfolio companies and by taking advantage of opportunities to divest, form partnerships, list companies on the stock exchange or
Slide 24: Appendix 2: Financial information as of June 30, 2019
A ppe ndi x 2 Financial information as of June 30, 2019 24 2019 H1 Trading Update | July 30, 2019
Slide 25: H1 2019 consolidated sales
H1 2019 consolidated sales in millions of euros H1 2018 H1 2019 Δ Organic Δ Bureau Veritas 2,338.3 2,476.6 +5.9% +4.0% Constantia Flexibles 759.1 760.9 +0.2% -2.9% Cromology 341.3 348.6 +2.1% +2.3% Stahl 452.4 416.6 -7.9% -8.7% Tsebo 258.5 259.2 +0.3% -2.0% Consolidated sales (1) 4,149.5 4,261.9 +2.
Slide 26: H1 2019 sales of companies accounted for by the equity method
H1 2019 sales of companies accounted for by the equity method in millions of euros H1 2018 H1 2019 Δ Organic Δ Allied Universal 2,250.1 3,179.9 +41.3% +4.9%(1) IHS 458.4 535.9 +16.9% +12.0% (1) As computed in financial statements. Including 2019 acquisitions and USSA on a pro forma basis, organic gr
Slide 27: IFRS 16 - 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 2019 H1 2019 H1 2019 H1 2018 H1 2019 H1 2018 before after before after IFRS 16 IFRS 16 IFRS 16 IFRS 16 IHS $554.8 $605.5 $118.7 $176.4 $180.6 $1,248.5
Slide 28: Financial agenda
Fi nanci al agenda 28 2019 H1 Trading Update | July 30, 2019
Slide 29: Financial agenda
Financial agenda 09/06/2019 2019 Half-Year consolidated financial statements / Condensed Half-Year consolidated financial statements (pre-market release) – No NAV publication 11/07/2019 2019 Investor Day / Publication of NAV of September 30, 2019, and Q3 2019 trading update (pre-market release) 03/1
Slide 30: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2019 half-year results presentation, to be held on July 30, 2019. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person
Slide 31: 2019 H1 Trading Update | July 30, 2019
31 2019 H1 Trading Update | July 30, 2019