Wendel Se · EURONEXT:MF
Wendel — H1 2021 Earnings Presentation
32 slides from Wendel's earnings presentation, Jul 29, 2021
Slide 1: H1 2021 Trading update
H1 2021 Trading update July 29, 2021 2021 1
Slide 2: Half-Year Trading Update Key Figures
Half-Year Trading Update Key Figures Record high NAV at €189.1 per share, up 18.9% YTD and +36.4% YoY positively impacted by stock market rebound and upward revision of aggregates used for the valuation of unlisted assets Consolidated sales of €3,997.4m, up 11.3%, strong rebound by portfolio compani
Slide 3: Half-Year Trading Update Key Highlights
Half-Year Trading Udpate Key Highlights Wendel in H1 2021 c. €260m capital deployed since the beginning of the year with €216.7m in Tarkett, €18m in Wendel Lab and €25m of share buybacks Increased dividend Effected 5 new hires within our investment team ESG: Adhered to UN Global Compact & amended RC
Slide 4: Performance of Group companies
Performance of Group companies Half-Year 2021 Figures are after IFRS 16, unless otherwise specified 4
Slide 5: Bureau Veritas
Bureau Veritas ▪ Revenue of €2.4bn, up 9.9% year-on-year ▪ Organic growth increased by +14.3% in H1 2021, of which +22.5% in Q2 benefiting from improving end markets across most businesses and the return to a more normal operating environment compared to H1 2020 o Three businesses (representing more
Slide 6: Half-year performance analysis of consolidated unlisted companies since 2019
Half-Year performance analysis of our consolidated unlisted companies since 2019 Constantia Flexibles Crisis Prevention Institute 50 47.1 55% 800 760.9 773.4 761.4 752.1 15% 44.0 743.9 45 37.7 40.6 50% 700 40 14% 45% 35 Resilience 600 Strong 30 500 13% recovery 26.1 40% 25 21.9 20.5 400 19.0 35% 20
Slide 7: Constantia Flexibles
Constantia Flexibles Slight organic growth in the first half (+0.7% YoY), with a good performance in Consumer market. Overall performance affected by FX environment and Indian markets (+0.7% organic growth, -2.7% FX, +0.8% scope effect) ▪ Pick up in demand from Consumer end market (+3.0%) mainly due
Slide 8: Propak acquisition by Constantia Flexibles
Propak acquisition by Constantia Flexibles On June 9, 2021, Constantia Flexibles acquired the packaging producer Propak located in Dücze, Turkey Propak is a leading player in the European packaging industry for the snacks market operating out of one plant with approximately 360 employees and complem
Slide 9: Cromology
Cromology Revenue up +27.7% compared to last year and up +6.3% vs. 2019 due to a strong rebound in activity since the end of the first lockdown in Q2 2020 ▪ Sales up +27.8% organically, slight FX effect of -0.1% ▪ Recovery and growth prospects in DIY paint sales ▪ Steadily improving since end of Jun
Slide 10: Stahl
Stahl Sales up 32.5% thanks to the continued recovery since Q3-2020. H1-2021 already slightly above H1- 2019 ▪ +36.4% organic growth, FX impact -3.9% ▪ Recovery accelerated since the end of 2020, despite disruptions in the supply chain. ▪ This was driven by a strong order book and broad-based volume
Slide 11: Crisis Prevention Institute
Crisis Prevention Institute H1 2021 total sales growth of +68% as compared with 1H 2020 and +8% versus 1H 2019, demonstrating strong underlying demand and the resilience of the business model ▪ Continued upward revenue trajectory quarter-to-quarter, with Q2 2021 revenue surpassing Q1 2021 figures by
Slide 12: IHS Towers
IHS Towers Successful consent process in June, amending Senior Notes to expand restricted group to IHS Holding leading to S&P and Fitch rating upgrades IHS Holding will publish its H1 '21 consolidated results second half-August IHS Holding Unaudited Q1 2021: Sales of $361.7m, up 14.5% organically Ad
Slide 13: Wendel Lab: progress report
Wendel Lab: progress report … Today: >€100m(1) committed H1 2021 highlights with high quality partners • Hiring of Christopher Witherspoon to lead the Funds investment activity into funds • $40 million newly committed • €18 million of capital called New New New New • +60% of the Wendel Lab portfolio
Slide 14: Tarkett: Investment update
Tarkett: Investment update On July 15, 2021, Tarkett announced that following the closing of the Offer initiated by Tarkett Participation (“TP”), TP holds directly 56,300,463 shares, representing 85.89% of the share capital and 84.98% of the voting rights of Tarkett(1) Since July 20, 2021, and as of
Slide 15: Modest leverage at the end of H1 2021
Modest leverage at the end of H1 2021 No cash injected into our portfolio companies over the course of 2020 and overall impressive deleveraging Net debt to EBITDA(1) Net debt (as of June, 30, As of Dec. 31, As of June 30, As of Dec. 31, 2020 As of June 30, 2021 including IFRS 16) 2019 2020 Bureau Ve
Slide 16: Net Asset Value & Liquidity
Net Asset Value & Liquidity 16
Slide 17: Record Net Asset Value per share
Record Net Asset Value per share 189.1 190,0 181.3 176.4 172.9 172.7 170,0 165.8 167.3 166.9 166.7 165.4 166.3 167.4 162.0 158.6 159.1 153.9 150,0 147.4 145.3 138.6 130,0 118.2 110,0 90,0 70,0 17
Slide 18: NAV of €189.1 as of June 30, 2021
NAV of €189.1 as of June 30, 2021 (in millions of euros) June 30, 2021 Listed equity investments Number of shares Share price(1) 4,352 • Bureau Veritas 160.8 million €26.4 4,253 • Tarkett 99 Investments in unlisted assets (2) 4,831 Other assets and liabilities of Wendel and holding companies(3) 105
Slide 19: Net Asset Value bridge since June 2020
Net Asset Value bridge since June 2020 +20.7 -2.9 -2.5 189.1 +14.6 Dividend to Others +11.7 -1.4 159.1 be paid Unlisted +11.2 Others Assets Bureau 138.6 Unlisted Veritas Assets Bureau Veritas NAV per share NAV per share NAV per share as of as of as of June 30, 2020 Dec. 31, 2020 June 30, 2021 As a r
Slide 20: Strong liquidity profile with enhanced maturity
Strong liquidity profile with enhanced maturity as of June 30, 2021 c. €1.2bn cash (2) + €750m undrawn credit facility Oct. 2024 (integrating ESG targets LTV ratio: 9.0% (1) into the financial terms since end of March 2021) Average cost of debt: On May 26, 2021, Wendel announced the successful 2.09%
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 52.0% 47.5% 36.7% 32.6% 31.9% 34.4% 22.9% 12.2% 6.1% 6.0% 6.2% 9.0%(1) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2021 € billions Net debt kept low 4.5 4.1 3.3 3.2 3.4 2.8 2.2 1.1 0.5 0.8 (2) 0.4 0.5 2010 2011
Slide 22: Conclusion
Conclusion if a Prot Ph |
Slide 23: H1 2021 key takeaways
H1 2021 key takeways Strong rebound by our portfolio companies, showing that the intense efforts that were deployed to mitigate impacts of the pandemic are paying off Still some uncertainties on raw materials prices or shortages, vaccine roll out and efficiencies, but our companies have already show
Slide 24: Q&A session
Q&A session Ny WENDEL
Slide 25: Appendix
Appendix Financial information as of June 30, 2021 25
Slide 26: H1 2021 performance of Group’s consolidated companies
H1 2021 performance of Group’s consolidated companies Organic EBITDA, Op. profit Margin Sales Δ growth for BVI Bureau Veritas 2,418.4m +9.9% +14.3% 378.2m 15.6% Constantia Flexibles €752.1m -1.2% +0.7% €98.8m 13.1% Crisis Prevention $44.0m +68.3%(1) +59.0% $20.5m 46.6% Institute(1) Stahl €419.8m +32
Slide 27: H1 2021 consolidated sales
H1 2021 consolidated sales in millions of euros H1 2020 H1 2021 Δ Organic Δ Bureau Veritas 2,200.5 2,418.4 +9.9% +14.3% Constantia Flexibles 761.4 752.1 -1.2% +0.7% Cromology 290.2 370.7 +27.7% +27.8% Stahl 316.8 419.8 +32.5% +36.4% CPI (1) 23.7 36.5 +53.6% +59.0% Consolidated sales 3,592.6 3,997.4
Slide 28: IFRS summary table before and after IFRS 16
IFRS 16 - Summary table of main aggregates before and after the application of IFRS 16 Sales EBITDA Net debt (in millions) H1 2020 H1 2021 H1 2021 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 before after before after before after IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 IFRS 16 Stahl €316.8 €419.8 €66.0
Slide 29: Financial agenda
Financial agenda Ny WENDEL
Slide 30: Financial agenda
Financial agenda 09/07/2021 Publication of half-year financial statements / As of June 30, 2021 (pre-market release) 10/28/2021 Q3 Trading update / Publication of NAV as of September 30, 2021 (pre-market release) 12/02/2021 2021 Investor Day 03/18/2022 Annual results / Publication of NAV as of Decem
Slide 31: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2021 H1 results presentation, to be held on July 29, 2021. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other person. • No
Slide 32: WENDEL
Mi WENDEL