Slide 1: FY 2017 results
FY 2017 results March 22, 2018 2018 1 FY 17 Results | March 22, 2018
Slide 2: FY 2017 key figures
FY 2017 key figures Consolidated sales of €8.3bn, up +8.4% Consolidated net income of €534m, €200m Group share NAV as of March 7, 2018: • €167.3 per share, up +3.3% over 12 months • LTV ratio @ 13.1% and net debt of €1.16bn 2 FY 17 Results | March 22, 2018
Slide 3: Portfolio rotation and development in 2017
Portfolio rotation and development in 2017 Acquisition of Tsebo closed on February 1, 2017 Sale of Constantia’s Labels business to MCC in October 2017: • €137m invested • ~65% ownership • €1.15bn EV i.e. ca. 11x 2016 EBITDA • Capital Group Private Markets invested alongside • Constantia received c.
Slide 4: Performance of Group companies
Performance of Group companies FY 2017 4 FY 17 Results | March 22, 2018
Slide 5: 2017 performance of the Group's listed companies
2017 performance of the Group’s listed companies • Revenue of €4.7bn, up 3.1% year-on-year, with organic • €40.8bn in sales, solid organic growth in all business growth of +2.2% sectors and regions (+4.7%); • H2 acceleration confirmed with +3.0% organic growth • Further rise in operating income, +9.
Slide 6: 2017 performance of Group's main unlisted companies
2017 performance of Group’s main unlisted companies Sales Δ EBITDA Margin EBIT for IHS IHS $1,107.0m +22.2% $264.4m 23.9% Cromology €704.6m +0.6% €49.0m 7.0% Allied Universal $5,301.5m +9.9% $388.3m 7.3% Constantia Flexibles €1,487.5m +1.8% €188.2m 12.7% Stahl €733.3m +11.8% €171.3m 23.4% EBIT and E
Slide 7: IHS
IHS 1,107.0 +22.2% total growth driven by continued growth in Sales, $m +22.2% colocation rate & FX reset following 2016 devaluation 905.6 • Point-of-presence lease up rate -1.3% & technology tenancy ratio up 7.8%. Price reset early 2017 following June 2016 devaluation impacts growth positively EBIT
Slide 8: IHS – FX environment
IHS – FX environment • Limited US$ liquidity at the official CBN (Central Bank of Nigeria) rate throughout the year has resulted in the Nigerian Autonomous Foreign Exchange (“NAFEX”) rate being more widely used • Following a review of the liquidity and sustainability of the official CBN rate (c. NGN
Slide 9: Cromology
Cromology +0.6% total growth resulting from organic decline offset by 700.7 704.6 Sales, €m +0.6% change in consolidation scope • -1.3% organic decrease due to sluggish growth in France and weak sales in Italy, +2.0% change in consolidation scope (Natec brand in France and Jallut Paints business in
Slide 10: Allied Universal
Allied Universal 5,301.5 +9.9% total growth, due to a combination of acquisitions Sales, $m +9.9% 4,823.5 and organic growth • Organic growth of +2.8% with pro forma organic growth of +3.8% (2) • Acquisition in 2017 of Yale Enforcement Services, contracts of Lankford securities & Alert Protective Se
Slide 11: Constantia Flexibles
Constantia Flexibles 1,461.1 1,487.5 Sales, €m +1.8% +1.8% total growth: +1.6% organic growth and +0.2% FX impact • Favorable change in mix (c.+3%) and modest volume increase partially offset by ongoing pressure on sales prices (c.-1%) • Double-digit percentage price increase worldwide announced to
Slide 12: Stahl
Stahl +11.8% sales growth driven by external & organic growth Sales, €m +11.8% 733.3 655.7 • + 2.2% organic growth thanks to solid volume growth • + 10.6% external growth from FY and Q4 consolidation of Eagle Performance Products & BASF Leather Chemicals, respectively • - 0.9% currency impact EBITDA
Slide 13: 2017 performance of other Group companies
2017 performance of other Group companies Wendel’s stake in Saham to be sold for c.€125m. Deal completion expected in H2 2018 Wendel also retains an earn-out, equivalent to 13.3% of the potential capital gains, on any disposal of the remaining businesses of Saham Group (Customer relationship centers
Slide 14: Diversified geographic & sector exposure
Diversified geographic & sector exposure GEOGRAPHIC EXPOSURE (1) SECTOR EXPOSURE (1) Telecom & infrastructure Energy Africa & other North America 13% 12% 19% 21% Industry 7% Automotiv e & transportation 10% Health 5% Eastern Europe 4% Gov ernment, administration & education Asia Pacific 4% 20% Other
Slide 15: Key challenges for 2018
Key challenges for 2018 Good topline growth outlook might be tempered by: • Input costs / pass-through • FX • Interest rates 15 FY 17 Results | March 22, 2018
Slide 16: Wendel financials
Wendel financial s FY 2017 16 FY 17 Results | March 22, 2018
Slide 17: Key figures
Key figures Consolidated sales, in €m Net income from operations (1), in €m -2.3% +8.4% 516.9 8,329.1 505.0 7,682.7 2016 2017 Disposal of 21.7m 2016 2017 Saint-Gobain shares in May-June 2017 17 FY 17 Results | March 22, 2018 (1) Net income before goodwill allocation entries and non-recurring items
Slide 18: FY 2017 consolidated results
FY 2017 consolidated results in millions of euros 2016 2017 Contribution from subsidiaries 720.2 703.6 Financial & operating expenses and taxes -203.3 -198.6 Net income from operations (1) 516.9 505.0 Non-recurring income -537.9 142.7 Impact of goodwill allocation -120.1 -113.6 Total net income -141
Slide 19: Net Asset Value & Return to Shareholders
Net A sset Val ue & Return to Sharehol ders 19 FY 17 Results | March 22, 2018
Slide 20: Adjustments to the NAV calculation method
Adjustments to the NAV calculation method – valuation of unlisted investments Before adjustments After adjustments H1: EV is the average of the values calculated for two EV is always the average of the values calculated periods (previous year and the budget for the current for two periods (previous
Slide 21: NAV of €167.3 as of March 7, 2018
NAV of €167.3 as of March 7, 2018 (in millions of euros) March 7, 2018 Investments in listed entities Number of shares Stock price(1) 4,465 • Bureau Veritas 177.2 million €21.7 3,837 • Saint-Gobain 14.2 million €44.4 629 Investments in unlisted companies & OND(2) 4,365 Other assets and liabilities o
Slide 22: Good growth in Net Asset value over the past three years
Good growth in Net Asset value over the past three years 181.3 176.4( 1) 172.9 165.8 167.3(1) 162.0 153.9 145.8 139.6 139.5 128.2 Mar-16 May-16 Aug-16 Nov-16 Dec-16 Mar-17 May-17 Aug-17 Nov-17 Dec-17 Mar-18 22 FY 17 Results | March 22, 2018 (1) Taking into account adjustments in NAV calculation meth
Slide 23: Main changes in Net Asset Value since November 2017
Main changes in Net Asset Value since November 2017 In millions of euros 8,385 -146 -73 -164 Change in value of Change in Bureau Veritas value of Saint- -89 Gobain Change in -150 value of FX impact on unlisted assets value of -22 7,740 unlisted assets Impact of Other method adjustments NAV as of NAV
Slide 24: Debt optimization at holding company level
Debt optimization at holding company level Net debt, m€ Loan-to-value ratio 2,040 -43.0% 21.1% 1,163 Mar. 10, 2017 -800bps 13.1% Mar. 10, 2017 Mar. 7, 2018 Mar. 7, 2018 Corporate credit rating: BBB-/stable 24 FY 17 Results | March 22, 2018
Slide 25: Return to shareholders
Return to shareholders €2.65 proposed 599,412 shares 2% of the share dividend per bought back in 2017 capital cancelled in share, for a total amount of October 2017 up +12.8% y-o-y €80.5m Annualized TSR since June 13, 2002 +14.0% +3.4% Euro Stoxx 50 Wendel total net return Source: FactSet, TSR calcu
Slide 26: Strategy
Strategy 26 FY 17 Results | March 22, 2018
Slide 27: 2017-2020 main strategic pillars unchanged
2017-2020 main strategic pillars unchanged 2. DEVELOP & 1. INVEST CRYSTALLIZE VALUE Wendel may invest ca. €3bn total equity, Continue to help the portfolio depending on markets conditions, in companies to develop with a long- Europe, Africa & North America in DOUBLE-DIGIT TSR term view: companies of
Slide 28: Key priorities
Key priorities Focus on well-known investment regions: Europe, North America and Africa • Strengthen European Investment team Concentrate on companies that move the needle • Target €200 – 700 million initial equity investments • Simplify the portfolio Develop our portfolio companies • Redeploy resou
Slide 29: Appendix – Performance of Group companies
A ppendix 1 Performance of Group companies 29 FY 17 Results | March 22, 2018
Slide 30: Bureau Veritas
Bureau Veritas 4,549.2 4,689.4 +2.2% organic revenue growth, total growth +3.1% Sales, €m +3.1% • H2 acceleration confirmed with +3.0% organic growth. Q4 2017 organic growth was +3.8% • Growth Initiatives up 6.9% organically, while Base Business is stable • External growth +2.5% • Adverse FX of -1.6
Slide 31: Saint-Gobain
Saint-Gobain Sales, €m 39,093 +4.4% 40,810 OUTLOOK FOR 2018 +4.7% like-for-like Economic climate • Further growth in France, led by the new-build market and by progress in renovation • Progression in other Western European countries, despite continued uncertainty in the UK • Growth in North America
Slide 32: Tsebo
Tsebo 563.2 Strong revenue growth of +20.5% Sales, $m +20.5% • Organic growth (+8.0%) driven by Cleaning, Catering 467.4 and Facilities Management businesses • Positive scope change (+3.4%) with two acquisitions completed in 2016, and one in 2017 • Favorable FX impact (+9.1%), notably due to the ZAR
Slide 33: Nippon Oil Pump
Nippon Oil Pump 2017 was a very positive year on all accounts for NOP Sales, ¥m +10.8% 6,132 5,534 Strong organic growth of 10.4% driven by a buoyant machine tools market • Core products grew strongly due to high demand with trochoid pump sales up 8.8% and hydraulic motor sales up 11.5% • While not
Slide 34: Mecatherm
Mecatherm Significant revenue decrease mainly due to weak Sales, €m 118.7 commercial activity in 2016 and early 2017 • Low level of order intakes in H1 2016 and H1 2017 -29.0% • Sizeable order in North Africa cancelled by the 84.3 customer (-€9M impact on sales) • Cut off effect at year end with som
Slide 35: CSP Technologies
CSP Technologies +7.2% total growth driven by external & organic factors Sales, $m Organic growth of +1.0%, excluding Maxwell Chase. +7.2% • 135.8 126.7 Organic growth restated of MC: +3.6% • Strong performance in Food Safety following the integration and extension of Maxwell Chase Technologies (acq
Slide 36: Appendix – Financial information as of Dec. 31, 2017
A ppendix 2 Financial information as of Dec. 31, 2017 36 FY 17 Results | March 22, 2018
Slide 37: FY 2017 consolidated sales
FY 2017 consolidated sales in millions of euros 2016 2017 Δ Organic Δ Bureau Veritas 4,549.2 4,689.4 3.1% 2.2% Constantia Flexibles (1) 1,461.1 1,487.5 1.8% 1.6% Cromology 737.3 704.6 -4.4% -1.3% Stahl 655.7 733.3 11.8% 2.2% Oranje-Nassau Développement 279.3 714.3 CSP Technologies 114.5 120.5 5.2% 1
Slide 38: FY 2017 sales of companies accounted for by the equity method
FY 2017 sales of companies accounted for by the equity method in millions of euros 2016 2017 Δ Organic Δ Allied Universal (1) 1,916.1 4,704.0 n.a. 2.8%(2) IHS 817.9 982.2 20.1% n.a. Oranje-Nassau Développement PlaYce (3) 2.1 7.3 n.a. n.a. (1) Company accounted for using the equity method from August
Slide 39: Net income from operations
Net income from operations In millions of euros 2016 2017 Bureau Veritas 424.7 437.8 Stahl 95.3 84.0 Constantia Flexibles 67.1 82.9 Cromology 17.5 7.5 AlliedBarton 29.8 - Allied Universal (equity accounted) 0.7 11.9 Saint-Gobain (equity accounted) 106.6 40.7 Dividend from Saint-Gobain - 17.8 IHS (eq
Slide 40: Consolidated income statement
Consolidated income statement In millions of euros 2016 2017 Net sales 7,682.7 8,329.1 Other income from operations 17.3 18.5 Operating expenses -6,928.0 -7,606.1 Net gain (loss) on sale of assets 2.8 -3.9 Asset impairment 1.2 -40.9 Other income and expenses -99.6 -12.8 Operating income 676.3 683.9
Slide 41: Consolidated balance sheet
Consolidated balance sheet In millions of euros 12/31/2017 12/31/2016 In millions of euros 12/31/2017 12/31/2016 Share capital 185.0 188.4 Goodwill 3,575.0 3,669.3 Premiums 48.7 36.3 Intangible assets, net 2,181.8 2,238.8 Retained earnings & other reserves 1,730.5 2,399.8 Property, plant & equipment
Slide 42: Conversion from accounting presentation to economic presentation
Conversion from accounting presentation to economic presentation Equity-method investments Wendel Bureau Constantia Group (in millions of euros) Cromology Stahl OND holding Veritas Flexibles Saint- Allied total IHS companies Gobain Universal Net income from operations Net sales 4,689.4 1,487.5 704.6
Slide 43: Bank and bond debt as of December 31, 2017
Bank and bond debt as of December 31, 2017 December 31, 2016 December 31, 2017 In millions of euros Nominal amount Maturity Nominal amount Maturity Bank debt related to Saint-Gobain Undrawn Mar. 2020/€500m - - Syndicated credit Undrawn Nov. 2019/€650m Undrawn Oct. 2022/€750m Wendel bond debt 3,377 2
Slide 44: NAV as of December 31, 2017
NAV as of December 31, 2017 (in millions of euros) December 31, 2017 Investments in listed entities Number of shares Stock price(1) 4,691 • Bureau Veritas 177.2 million €22.7 4,024 • Saint-Gobain 14.2 million €47.1 667 Investments in unlisted companies & OND(2) 4,532 Other assets and liabilities of
Slide 45: Financial agenda
Financial agenda 45 FY 17 Results | March 22, 2018
Slide 46: Financial agenda
Financial agenda 05/17/2018 2018 Shareholders' Meeting / Publication of NAV and trading update (before Shareholders’ Meeting) 09/06/2018 H1 2018 earnings / Publication of NAV (pre-market release) 11/29/2018 2018 Investor Day / Publication of NAV and trading update (pre-market release) 46 FY 17 Resul
Slide 47: Disclaimer
Disclaimer • This document has been prepared by Wendel S.E. (“Wendel”) solely for use at the 2017 full-year results presentation, to be held on March 22, 2018. This document must be treated confidentially by attendees at such presentation and may not be reproduced or redistributed to any other perso
Slide 48: FY 17 Results | March 22, 2018
48 FY 17 Results | March 22, 2018