Slide 1: H1 2016 results
H1 2016 results September 8, 2016 H1 2016 results | September 8, 2016 1
Slide 2: Dynamic activity to enhance diversification & strengthen financial structure
Dynamic activity to enhance diversification & strengthen financial structure INVESTMENTS €120m committed in SGI $46m invested in IHS Africa Additional investment to finance €25m already invested to acquire 40% company expansion of the capital alongside CFAO 12/31/15 6/30/16 Closing dates PROCEEDS €2
Slide 3: Solid operating profitability of major assets
Solid operating profitability of major assets +220.0% Margin trend (3) +56.5% +24.0% Organic EBITDA growth (1) growth (2) Company +10.2% +7.3% +6.9% +6.6% +2.9% +2.9% Bureau Veritas (2) +0.5% -0.6% -5.3% -2.3% -1.4% Constantia Saint-Gobain IHS (1)(2) Stahl Flexibles Cromology AlliedBarton (1) Total
Slide 4: Strong M&A activity of Group companies since the beginning of 2016
Strong M&A activity of Group companies since the beginning of 2016 Bureau Veritas acquired 6 companies in China (2), UK (2), Australia, and USA Saint-Gobain acquired 5 companies in Brazil (2), France, Slovenia & Albania Cromology acquired paint business of Jallut in Switzerland IHS and HTN closed 17
Slide 5: H1 2016 key figures
H1 2016 key figures Consolidated sales up +13.6%, organic +1.3% Net income from business sectors, up +17.3% NAV at €145.8, up +6.9% since January 1, 2016 H1 2016 results | September 8, 2016 5
Slide 6: IHS: Sharp growth boosted by successful integration of acquired towers
IHS Sharp growth boosted by successful integration of acquired towers Key figures H1 2016 highlights 473.0 +56.5% Strong sales growth driven by: • Integration of ca. 7,000 towers over the last 12 months Revenue, USD million 302.2 • Further development of the existing portfolio EBIT up +220% due to s
Slide 7: IHS: Depreciation of Nigerian naira generated mainly accounting impacts
IHS Depreciation of Nigerian naira generated mainly accounting impacts Nigerian naira (NGN) devaluation IHS already has natural operational overtime hedging USD/NGN • More than half of IHS’s tower rental contracts are indexed on USD (or EUR), with quarterly, biannual or annual revision. The rest of
Slide 8: Constantia Flexibles: Focus on profitable growth
Constantia Flexibles Focus on profitable growth Key figures +8.7% 1,024.3 H1 2016 highlights Revenue, € million 942.7 +2.9% organic growth • All divisions developed positively: +1.8% for Food, +2.4% for Pharma, and +4.1% for Labels +10.2% EBITDA growth • Positive mix impacts: switch from Paper to Pr
Slide 9: Stahl: Dynamic volume growth & record margin
Stahl Dynamic volume growth & record margin Key figures H1 2016 highlights +4.0% Sales boosted by volume growth 330.7 Revenue, € million 317.9 • +6.6% organic growth, thanks to good volume growth in all divisions • +1.2% external growth • -3.7% FX impact 79.5 EBITDA (1), € million 64.1 24.1% EBITDA
Slide 10: AlliedBarton & Universal merged to form the US leader in security services
AlliedBarton & Universal merged to form the US leader in security services Announced on May 3, 2016, the transaction was finalized on August 1, 2016 The new company operates as Allied Universal and is the Over 140,000 highly largest security officer skilled employees services provider in North Ameri
Slide 11: AlliedBarton: Strong organic growth & Transformational merger
AlliedBarton Strong organic growth & Transformational merger Key figures AlliedBarton standalone H1 2016 highlights AB standalone H1 2016 +6.9% Strong organic growth (+6.9%) thanks to new client starts Revenue, $ million 1,183.9 & growth in the existing base business accounts 1,107.1 • Improved clie
Slide 12: Oranje-Nassau Développement
Oranje-Nassau Développement Mecatherm Saham Group • Sales at €62.1m, purely organic growth +61.9% due to • Consolidated revenues up +14% to MAD 6.0 bn favorable base effect • All insurance subsidiaries experienced growth in H1 2016, • Return to positive EBITDA €7.4m in H1 2016 vs. a loss of €-9.3m i
Slide 13: Third investment in Africa with the acquisition of 40% of SGI Africa
Third investment in Africa with the acquisition of 40% of SGI Africa Around €25 million invested in SGI Africa and up to €120 million over the next few years. Wendel and CFAO co-control the company. Credits: Raymond Djigla SGI Africa develops and operates shopping centers primarily through its PlaYc
Slide 14: Wendel financials
Wendel financials H1 2016 H1 2016 results | September 8, 2016 14
Slide 15: Consolidated sales up +13.6%
Consolidated sales up +13.6% Consolidated sales, in €m Consolidated subsidiaries’ contribution to net income, in €m +13.6% 4,092 +9.8% 365.9 333.2 3,603 H1 H1 2015 2016 2 new companies consolidated: • Constantia Flexibles since April 2015 • AlliedBarton since December 2015(1) Mecatherm recovery H1 H
Slide 16: H1 2016 consolidated results
H1 2016 consolidated results In millions of euros H1 2015 H1 2016 Δ Consolidated subsidiaries’ contribution 333.2 365.9 +9.8% Financial & operating expenses and taxes -132.4 -130.3 -1.5% Net income from business sectors(1) 200.8 235.6 +17.3% Net income from business sectors,(1) Group 61.7 83.7 +35.7
Slide 17: H1 2016 Non-recurring income
H1 2016 Non-recurring income In millions of euros H1 2015 H1 2016 Loss on sale of Saint-Gobain shares - -229.6 Accounting gain on sale of Parcours (1) - 78.3 Bond debt buyback - -56.6 AlliedBarton one-off liability items – to be reversed in H2 - -44.8 IHS: FX impact and revaluation at fair value of
Slide 18: Additional improvement in debt cost & maturity
Additional improvement in debt cost & maturity Successful €400m bond buyback of 2017 & 2019 maturities Successful issue of €500m zero coupon bond exchangeable into Saint-Gobain shares Cancellation of undrawn €350m credit line with margin calls maturing December 2019 4.5 years average maturity Cost o
Slide 19: Net Asset Value
Net Asset Value as of August 26, 2016 H1 2016 results | September 8, 2016 19
Slide 20: Main impacts of methodology on NAV calculation
Main impacts of methodology on NAV calculation Stahl - Offers received in 2015 now all excluded from calculation (bid date: May 26, 2015), market multiple valuation only As announced, part of the hidden value IHS - From last significant capital increase (June 2015) value unveiled to market multiple
Slide 21: NAV of €145.8 as of August 26, 2016
NAV of €145.8 as of August 26, 2016 (in millions of euros) Dec. 31, 2015 Aug. 26, 2016 Listed equity investments Number of shares Share price (1) 5,883 4,838 • Bureau Veritas 177.2 million €18.6 / €19.5 3,287 3,452 • Saint-Gobain 65.8 / 35.8 million €39.4 / €38.7 2,596 1,386 Unlisted equity investme
Slide 22: Acceleration in portfolio rebalancing toward unlisted assets
Acceleration in portfolio rebalancing toward unlisted assets Gross asset value, in € million Breakdown of gross asset value Unlisted assets up 3.4x in 3.5 years Listed assets Cash and other diversified assets Unlisted assets 37% 24% 11% March 18, March 16, August 26, 2013 2015 2016 H1 2016 results |
Slide 23: Double digit annualized shareholder return
Double digit annualized shareholder return Annualized TSR Annualized TSR since June 13, 2002 since January 1, 2009 12.7% 17.4% 6.1% 2.6% Euro Stoxx 50 Wendel Euro Stoxx 50 Wendel total net return total net return Source: FactSet TSR as of 08/26/2016 H1 2016 results | September 8, 2016 23
Slide 24: Share buyback / return to shareholders
Share buyback / return to shareholders 2016: €99 million in dividends paid 2% of capital cancelled on July 25, 2016 Since 2012: €448 million in cumulative dividends paid €406 million returned to shareholders in share buybacks Since 2012: 4.6 million shares bought back 7.8% of capital cancelled H1 20
Slide 25: Conclusion
Conclusion H1 2016 results | September 8, 2016 25
Slide 26: All 2013-17 goals already achieved
All 2013-17 goals already achieved €2BN INVESTED IN UNLISTED ASSETS STRONG FINANCIAL STRUCTURE LTV as of August 26, 2016 @ IHS Constantia AlliedBarton 21.6% Flexibles CSP NOP Saham SGI Africa Technologies GEOGRAPHIC EXPOSURE REBALANCED(1) SECTORAL EXPOSURE REBALANCED(1) North America Health, consume
Slide 27: Key takeaways
Key takeaways PORTFOLIO COMPANIES Good operational performance Dynamic M&A activity WENDEL Reorientation towards unlisted assets LTV ratio decreasing NAV growth & part of hidden value unveiled H1 2016 results | September 8, 2016 27
Slide 28: What's next?
What’s next? Focus on operational development Continued Group internationalization Strategic update at Wendel’s Investor Day on December 1, 2016 H1 2016 results | September 8, 2016 28
Slide 29: Q&A
Q&A H1 2016 results | September 8, 2016 29
Slide 30: Appendix
Appendix H1 2016 results | September 8, 2016 30
Slide 31: Appendix 1: Group overview
Appendix 1 Group overview H1 2016 results | September 8, 2016 31
Slide 32: Portfolio structure: Gross asset value €10.6bn
Portfolio structure GROSS ASSET VALUE: €10.6BN Unlisted assets Bureau Veritas Saint-Gobain Cash1 Oranje-Nassau Développement Production, Certification & verification transformation and distribution of building materials 6.5% Equity 40.6% Equity stake stake SGI Africa €4.6bn sales €39.6bn sales €775m
Slide 33: Portfolio structure – unlisted assets
Portfolio structure – unlisted assets Mobile telephone Flexible packaging High-performance Manufacture & Security services Infrastructure in Africa coatings & leather distribution of paints finishing products • c. 26% Equity stake • 60.5% Equity stake • 75.3% Equity stake • 84.5% (1) Equity • c.33%
Slide 34: Portfolio structure – Oranje-Nassau Développement
Portfolio structure – Oranje-Nassau Développement CSP Technologies exceet Mecatherm High-performance plastics Design of embedded Industrial bakery equipment packaging electronic systems 98.4% 28.4% 99.2% SGI Africa Saham Group Nippon Oil Pump SGI Africa Diversified insurance Market leader in Japan f
Slide 35: Appendix 2: Business activity
Appendix 2 Business activity H1 2016 results | September 8, 2016 35
Slide 36: Bureau Veritas: Resilient performance
Bureau Veritas Resilient performance – 2020 growth initiatives gaining traction Key figures 2,318.7 2016: a year of transformation -4.2% 2,221.4 Improving momentum in H2 After a slow start in H1 2016, Bureau Veritas still expects: Revenue, € million • A progressive acceleration of organic growth in
Slide 37: Saint-Gobain: Significant improvement in results across the board
Saint-Gobain Significant improvement in results across the board Key figures 19,860 -1.6% 19,549 +2.9% like-for-like Outlook for 2016 Economic climate • Stabilizing trends in France, which should gradually Revenue, € million benefit from the recovery in new-builds • Further growth in other Western E
Slide 38: Cromology: Difficult environment in France
Cromology Difficult environment in France Key figures H1 2016 highlights -2.1% Flat organic growth (+0.5%) due to difficult market Revenue, € million 383.8 375.9 conditions in France • -1.3% decline in France • Robust growth in the Rest of the World (excl. Argentina) +4.4% • Sales in Argentina stron
Slide 39: Oranje-Nassau Développement
Oranje-Nassau Développement H1 2016 results | September 8, 2016 39
Slide 40: CSP Technologies: Solid organic growth & Maxwell Chase integration on track
CSP Technologies Solid organic growth & Maxwell Chase integration on track 62.6 Key figures +24.8% H1 2016 highlights 50.1 Organic growth +13.3% Revenue, $ million • Increase in volume across all end markets, particularly in diabetes test strips EBIT margin up +830bps 14.0 • Reduction in the level o
Slide 41: Mecatherm: Return to growth after a difficult 2015
Mecatherm Return to growth after a difficult 2015 Key figures H1 2016 highlights Organic growth +61.9% Revenue, € million 62.1 +61.9% • Favorable base effect, H1 2015 revenue hit by industrial reorganization 38.4 Return to positive EBITDA • Succesful recovery action plan • Action plan continues on m
Slide 42: Nippon Oil Pump: Stable sales in a difficult economic environment
Nippon Oil Pump Stable sales in a difficult economic environment Key figures H1 2016 highlights +0.3% 2,668 2,675 Limited organic growth +0.8% due to weak demand Revenue, ¥ million • Trochoid pump sales -0.2% • Hydraulic motor sales -14.5% • New strategic product (Vortex pumps) sales doubled EBITDA
Slide 43: exceet: Refocusing on electronic and secure solutions
exceet Refocusing on the electronic and secure solutions activities. Stabilization of operations in Q2. H1 2016 highlights -5.3% Sales down -5.3% in H1, stabilizing in Q2 69.1 65.4 • Q2 sales at €44.2m, up +3.9% Revenue (1), € million Unsatisfactory EBITDA margin (5.4%) • Lower sales level combined
Slide 44: Saham: Good growth in H1 2016
Saham Good growth in H1 2016 Insurance (Saham Finances): Consolidated revenues up Insurance: revenues up +14%, organic growth +8% +14% in MAD (1) million • All Saham insurance entities saw gross premiums rise in +14% 5 679 H1 2016 4 971 • Organic growth was +7% in Morocco (40% of gross premiums), +6
Slide 45: Appendix 3: Financial information
Appendix 3 Financial information as of June 30, 2015 H1 2016 results | September 8, 2016 45
Slide 46: H1 2016 consolidated sales
H1 2016 consolidated sales Consolidated sales in millions of euros H1 2015 H1 2016 Δ Organic Δ Bureau Veritas 2,318.7 2,221.4 -4.2% -0.6% (1) Constantia Flexibles 485.6 1,024.3 n.a. +2.9%(2) Cromology 383.8 375.9 -2.1% +0.5% Stahl 317.9 330.7 +4.0% +6.6% Oranje-Nassau Développement (3) 96.8 139.7 +4
Slide 47: Sales of equity-accounted companies
H1 2016 consolidated sales Sales of equity-accounted companies in millions of euros H12015 H1 2016 Δ Organic Δ Saint-Gobain (1) 19,860 19,549 -1.6% +2.9% exceet (2) 69.1 65.4 -5.3% -4.1% IHS 271.0 424.1 +56.5% n.a. AlliedBarton (3) - 1,061.5 n.a. +6.9%(4) (1) Following the sale of Verallia (Packagin
Slide 48: Net income from business sector
Net income from business sector in millions of euros H1 2015 H1 2016 Bureau Veritas 207.4 201.2 Stahl 41.0 44.6 Cromology 8.0 11.4 Constantia Flexibles 17.5 35.4 AlliedBarton - 17.1 Saint-Gobain (equity accounted) 72.2 56.6 IHS (equity accounted) -5.9 -13.5 Oranje-Nassau Développement -7.1 13.2 Parc
Slide 49: Consolidated income statement
Consolidated income statement In millions of euros H1 2016 H1 2015 Net sales 4,091.9 3,602.7 Other income from operations 5.4 1.9 Operating expenses -3,684.6 -3,232.1 Income from ordinary activities 412.7 372.5 Other operating income and expenses -27.8 -28.5 Operating income 384.9 344.0 Income from
Slide 50: Consolidated balance sheet
Consolidated balance sheet In millions of euros 6/30/2016 12/31/2015 In millions of euros 6/30/2016 12/31/2015 Share capital 192.0 192.0 Goodwill 3,543.5 4,305.0 Premiums 33.2 31.7 Intangible assets, net 2,240.8 2,705.3 Retained earnings & other reserves 2,560.0 2,904.5 Property, plant & equipment,
Slide 51: Conversion from accounting presentation to economic presentation
Conversion from accounting presentation to economic presentation Allied- Equity-method Bureau Constantia Wendel Group Barton investments (in millions of euros) Cromology Stahl OND holding Veritas Flexibles Saint- total IHS companies Gobain Net income from business sectors Net sales 2,221.4 - 1,024.3
Slide 52: Appendix 5: Other financial information
Appendix 5 Other financial information H1 2016 results | September 8, 2016 52
Slide 53: IHS: Impacts of Nigerian naira depreciation
IHS Impacts of Nigerian naira depreciation Naira devaluation Natural operational hedging On June 20, 2016, the Central Bank of Nigeria authorized • More than of IHS’s half tower rental contracts are indexed Nigerian naira (NGN) devaluation on USD (or EUR), with quarterly, biannual or annual revision
Slide 54: Cash bridge
Cash bridge From August 31, 2015 to August 26, 2016 Investment Dividend 500 in SGI 44 paid (25) Dividend received (99) Share from Saint- 1,155 buyback Gobain 2017-2019 (70) Zero coupon bond bond exchangeable into buyback SGO shares (644) Dividend from 2016 bond Bureau Veritas Investment in MCP @4.87
Slide 55: Bank and bond debt as of June 30, 2016
Bank and bond debt as of June 30, 2016 December 31, 2015 June 30, 2016 In millions of euros Nominal amount Maturity Nominal amount Maturity Bank debt related to Saint- Undrawn Undrawn Gobain Undrawn Dec. 2019/€350m Undrawn March 2020/€500m Undrawn March 2020/€500m Syndicated credit Undrawn Nov. 2019
Slide 56: Financial agenda
Financial agenda H1 2016 results | September 8, 2016 56
Slide 57: Financial agenda
Financial agenda 12/1/2016 2016 Investor Day / publication of NAV and trading update (pre-market release) Mayfair Millennium Hotel, London - Webcasted 3/23/2017 2016 full-year results / Publication of NAV (pre-market release) Pavillon Gabriel, Paris - Webcasted 5/18/2017 Shareholders' Meeting /publi
Slide 58: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2016 half-year results presentation, to be held on September 8, 2016. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other pe