Post on 01-Aug-2020
A SOLID FIRST HALF 2016
A CONTINUING DYNAMIC MOMENTUM & ACTIVE TRANSFORMATION
FOCUSING ON VALUE CREATION AT ALL STAGES
3
12
19
2 H1 2016 RESULTS
H1 2016
A SOLID FIRST HALF 2016
1
H1 2016 RESULTS 3
Solid revenue growth in H1 2016
4
614 716
1,143 1,154
H1 2015 PF H1 2016
+0.9%
+16.7%
Companies consolidated under equity method
Fully consolidated companies
ECONOMIC REVENUES (in €m)
Growth at constant Eurazeo scope
H1 2016 RESULTS
+6.4%
1,870 1,757
Continued increase in companies’ contribution
5
H1 2016 H1 2015 PF Change
Adjusted EBIT of Group consolidated companies 89.6 79.8 +12%
Cost of financial debt of Group consolidated companies (net) (49.8) (36.8) +35%
Results for companies consolidated by the equity method, net cost of debt 13.1 (6.9) N/A
Contribution of companies’ net cost of debt 52.9 36.1 +47%
H1 2016 RESULTS
CONTRIBUTION OF COMPANIES NET OF FINANCE COSTS In €m
176
8
190
18
36
3
205
35 42
46
7
125
29
205
46 60
14
71
14
92
44
216
53
55
15
78
18
71
46
Increasing EBITDA
x%
CAGR
H1 20
12
H1 2
013
H1 20
14
H1 20
15
H1 20
16
EBITDA in €m
+5.3%
+22.9%
+5.3% +82.4%
-24.3%
+25.8%
+23.9%
* ** ***
(*) Eurazeo PME: majority investments (portfolio as of June 30, 2016) (**) Europcar: adjusted Corporate EBITDA (***) Asmodee: comparable change excluding acquisitions
H1 2016 RESULTS 6
+61.7%
Profit & Loss details
7
(€m) H1 2016 H1 2015 PF
Contribution of companies’ net cost of debt 52.9 36.1
Change in value of real estate properties (2.9) 13.0
Capital gains (net) 123.1 1,724.8
Other(1) (19.0) (25.3)
Taxes (2.7) (24.8)
Non-recurring items (66.3) (147.5)
Net consolidated income 85.2 1,576.3
Net consolidated income Group share 73.5 1,319.5
(1) Revenue at the holding company, net cost of financial debt of holding sector, operating costs and amortization of commercial contracts
H1 2016 RESULTS
Strong financial position
8
AT EURAZEO LEVEL
No structural debt at Eurazeo level
Solid cash position: c.€780m* as of June 30, 2016
Portfolio companies’ debts are non recourse to Eurazeo
AT CONSOLIDATED LEVEL
6,307 6,021
3,619
4,587
355
1,823
2011 2012 2013 2014 2015 H1 2016
Consolidated net debt in €m
H1 2016 RESULTS
(*) Proforma of Foncia sale and Elis debt reimbursement
Reasonable leverage at portfolio level
H1 2016 RESULTS 9
5.2 5.0 4.7
3.1
4.8
3.4
2.7
0.9 0.8
4.0
3.1 3.4
0.8 0.9
1.4 33%
40%
48% 43%
45%
x
1x
2x
3x
4x
5x
6x
Corporate Net debt / Corporate EBITDA
2014 loan-to-value
ratio
Proforma for the full year impact of
acquisitions
2015 2012 2013 2014
H1
2016
0x
39.3 45.7
60.0 61.7 67.8 68.1
Dec. 31,2011
Dec. 31,2012
Dec. 31,2013
Dec. 31,2014
Dec. 31,2015
June 30,2016
Continuous NAV growth
10
NAV*
In € per share
(*) Adjusted for bonus share allocations and 2016 exceptional dividend
H1 2016 RESULTS
+13% +15%
CAGR
Ordinary dividend included
5,074 4,889
-425
519 67
-16
65 8 0
18 13
-13
150 34
-356
-249
Change in NAV
11
Disposals & dividends
Change in value
Acquisitions
Cash & other
+€171m +€31m +€57m +€161m
NAV Dec. 31, 2015
NAV June 30, 2016
In €m
H1 2016 RESULTS
Dividend & share
buy-back
H1 2016
A CONTINUING DYNAMIC MOMENTUM & ACTIVE TRANSFORMATION
2
H1 2016 RESULTS 12
€519m(1)
€65m
€18m(2)
€150m
Acquisitions across all divisions
13
Total investments: €752m
C L O S I N G D A T E
March 2016 May 2016 June 2016 H1 2017E Investment
(1) Not taking into account the investment in the European chocolate & confectionery brands, to be closed in H1 2017 (2) Equivalent to the $20m
8 investments closed or announced since the begining of 2016
H1 2016 RESULTS
Health awareness
Digital world
New investments in our priority sectors
H1 2016 RESULTS 14
Market characteristics
Company characteristics • Internationalization • Emerging markets • Build-up
• Attractive iconic brands • Great reputation
• Ramp-up of new campuses • Build-up
• Access to health • Customer driven • Strong barriers to entry • The growth of Y generation • Niche market
• Shortage of supply
Education
Engagement in a new sector
Brands
Demography & globalization
MEGA-TRENDS:
Consolidation of existing sectors
Digital Services Brands/
Consumer Goods Healthcare
Market Drivers • Growing middle-class in emerging markets
• Increasing demand for cosmetics
• Innovation • Marketing
• Globalization • Digitization • Market place penetration
• Internationalization of education
• Ground-breaking business model • Tech-enabled innovation
In-depth transformation of Foncia
15
• Stable & strong & simplified management team • Improved mobility and training • Redefined compensation to align objectives
• Monitoring of clients’ satisfaction • Reinforced commercial organization
• Enlarged services range • Increased international
exposure • Broadened client base
from individual to corporate
• Creating scale effect on purchases as a differentiating factor: savings passed on clients (gas, elevator, electricity)
• Pricing strategy implementation
NETWORK • Reduced number of agencies • Cost efficiency through shared service center
DIGITAL INITIATIVES • Direct and interactive dialogue with clients • Dematerialization of processes & documents • On-line payment
EXTERNAL GROWTH
HUMAN RESOURCES
OPERATIONAL EFFICIENCY INNOVATION
CLIENTS
H1 2016 RESULTS
Positive organic growth of dwellings managed in Joint Property achieved since 2014 vs (2.5)% at acquisition (« Cap-zero » objective reached)
74 acquisitions completed since 2011* with a total of c. €202m revenues acquired
Turnover down to 18% (vs. 21% in 2011)
Over €10m operational costs improvement since 2011
(*) Including acquisitions closed or signed as of June 2016
Gas invoicing reduced by c. -34% on average over 2014-16
Foncia: Successful value creation
H1 2016 RESULTS 16
86 90 103
125 132 137
0
20
40
60
80
100
120
140
160
2011 PF 2012 2013 2014 2015 2016 LTM*
585 565 595 641 696 719
2011 PF 2012 2013 2014 2015 2016 LTM*
+4.7%
CAGR Revenues (€m)
+10.9%
CAGR EBITDA (€m)
EBITDA Margin 14.7% 16.0% 17.2% 19.5% 18.9% 19.0%
(*) LTM as of June 30, 2016 (**) Excluding refinancing impact (***) From July 2011 to July 2016
Net proceeds
€467m
Multiple
2.4x
NAV appreciation** (during Eurazeo’s holding period)***
70%
29% 1% Organic growth
contribution Multiple growth contribution
+430 bps
Others
Building new groups
17
• Renovation/refurbishment
• Investment in actual and new campuses
• Investment in innovation & marketing
Reference Partner
Transformation
Platform
Carve-out: Building new corporate structures
• Moving from the periphery of a large group to a “Core” asset • Separating shared services from its parent organization to build at all levels:
Governance, Legal, Accounting, Tax, HR, IT, Employee empowerment • Strong commitment of Corporate teams at Eurazeo
H1 2016 RESULTS
• Extending current portfolio to other hotels
• Extending current portfolio to other schools
• Extending current portfolio to other brands
USA
development
Europe
Eurazeo Capital: a very active dealflow
H1 2016 RESULTS 18
Targeted sourcing in a deep pool of opportunities
At the core of the European dealflow
8 investments announced since Jan.1, 2016
Dealflow: • Actively looking at
9 investment oportunities
New York Office: • 6-7 investors • Mix of skills, cultures and seniority
Dealflow: • Equity investments between
$100m and $500m • North American growth-oriented
buyouts with an international angle
H1 2016
EURAZEO FOCUSING ON VALUE CREATION AT ALL STAGES
3
19 H1 2016 RESULTS
Eurazeo has stepped up the momentum of asset rotation
20
1%
13%
30%
11%
25%
17%
16%
5%
3%
13%
14%
15%
2011
2012
2013
2014
2015
2016 YTD*
Exits Investments
Total investments in 2016 YTD €752m**
Asset Rotation in % of NAVn-1, since 2011
Net proceeds in 2016 YTD* €861m
(*) As of July 27, 2016
2016 YTD*: Strong investment
and disposal momentum
(**) Not taking into account the European chocolate & confectionery brands
2016 YTD*
H1 2016 RESULTS
Market recognition of our transformation work
H1 2016 RESULTS 21
237 394
197
467
861
434
2.0x
Cost base of the stakes sold Net proceeds 2016 YTD
(*) Disposal to be closed by Sept. 30, 2016
2.4x
1.7x
In €m
CoC multiple
*
22
Conservative NAV
15
22
8
11 11
16
+98%
+55%
+44%
+26%
+47%
+52%
Last NAV before disposal Net proceeds from disposals
B&B Hotels
Sept. 2010
Mors Smitt
June 2012
The Flexitallic Group
July 2013
Moncler
Dec. 2013
IMV Technologies
Dec. 2014
Gault & Frémont
Dec. 2014
Cap Vert Finance
July 2015
979
240
50
32
+55%
Elis
February 2015
Europcar
June 2015
NAV as of December 31, 2015
359
963
+11%
541
+15% 621
541
NAV as of December 31, 2013
707
496
125
709
270
495 145
115
184
121
NAV (in€m)
Companies
Exit date
1,066
+40%
Foncia
July 2016*
H1 2016 RESULTS
467
334
(*) Closing expected in September 2016
A well-balanced portfolio in terms of transformation
23
End of transformation
process Recent investments
DEAL FLOW EXIT
III
II I IV
End of transformation
process
DEAL FLOW EXIT Recent investments
Stage III
Stage I
Stage II
Stage IV
Specific and structuring transformation process
Integration
Beginning transformation process
Activation of Eurazeo’s transformation levers
End of Eurazeo’s transformation process ; ready for a new stage of development
* Foncia not taken into account
2014: Transformation process 2016: Transformation process*
NAV BREAKDOWN BY STAGE OF MATURITY In %
H1 2016 RESULTS
III
I
II
IV
2008 H1 2016
11 33*
Eurazeo: focus on value creation
H1 2016 RESULTS 24
# Portfolio companies
Investment divisions
# Headcount
# Investment professionals
Eurazeo A strategy focusing on high growth and low risk
Team A lean structure
1
50
20
4
93
35
Capture new business opportunities
Strong commitment of the Corporate team
Highly qualified / Senior at all stages
* Excluding the European chocolate and confectionery brands
More diversified, less risky
NAV (€m) 2,941 4,889
H1 2016
CONCLUSION
H1 2016 RESULTS 25
Comparison with CAC40 over the period of June 30, 2012 – June 30, 2016
Deliver attractive returns to shareholders
H1 2016 RESULTS 26
Decreasing Beta on par with the market(1) Consistently outperforming indices(1)
Over the past c. 14 years(2):
TSR CAGR
Eurazeo +213% +8%
CAC 40 +74% +4%
(1) Source: Bloomberg (2) Between July 1st, 2002 and June 30, 2016
0,6
0,7
0,8
0,9
1
1,1
1,2
1,3
1,4
1,5
06/2012 06/2013 06/2014 06/2015 06/2016
Deliver attractive returns to shareholders
27
1,925
3,847
1,922
2,389 2,389
June 30, 2002 Increase in market cap up toJune 30, 2016*
Shareholders' return June 30, 2016
1,925
6,236
Share price: €53.50
In €m
(1) Including capital increases. Source: Bloomberg
Active share buyback policy and regular dividend distribution:
(Ordinary dividend, Special dividend &
Share buyback)
Eurazeo has returned to its shareholders more than its initial market capitalization since June 30, 2002
Total Shareholder Value
Distribution to shareholders
Market cap
H1 2016 RESULTS
H1 2016
APPENDICES
H1 2016 RESULTS 28
Including Group companies’ detailed information
FINANCIAL APPENDICES
GROUP COMPANIES’ DETAILED INFORMATION
OTHER
30
32
71
29 H1 2016 RESULTS
Net Asset Value as of June 30, 2016
30 H1 2016 RESULTS
(*) Net allocated of debt (1)AccorHotels shares held indirectly through Colyzeo funds are included on the line for these funds. (2)Eurazeo investments in Eurazeo Partners are included on the Eurazeo Partners line. (3)The % interest is equal to Eurazeo’s direct interest, with any interest held through Eurazeo Partners now included on the Eurazeo Partners line.
% held (3) Nb shares Share price NAV as of June 30, 2016 with ANF at its NAV
€ En M€ ANF @ 26.2 € Eurazeo Capital Listed (2) 1,417.8
Europcar 42.22% 60,545,838 8.89 538.2 Elis 14.22% 16,217,087 16.25 263.5 Elis debt -126.4 Elis net* 137.1 Moncler 12.95% 32,363,814 14.80 479.0 AccorHotels 4.42% 10,510,003 37.24 391.4 AccorHotels net debt -128.0 AccorHotels net* (1) 263.4
Eurazeo Capital Unlisted (2) 1,877.9 Eurazeo Croissance 220.3 Eurazeo PME 340,8 Eurazeo Patrimoine 492.5 529.3
ANF Immobilier 50.48% 9,596,267 22.32 214.1 250.9
Other 278.3 Other securities 78.1
Eurazeo Partners(2) 34.7 Other (1) 43.5
Cash 439.3 Tax on unrealized capital gains -63.1 -73.5 Treasury shares 3.31% 2,382,316 85.4 Total value of assets after tax 4,889.1 4,915.5 NAV per share 68.1 68.4 Number of shares 71,825,537 71,825,537
Strong cash position
31
CASH POSITION In €m
1,038
439
411 26
-159 -89
-752 -36
341**
31/12/2015 Net disposals Dividendsreceived &
Other*
Dividends paid Sharesrepurchased
Investments Other 30/06/2016proforma
(*) Mostly related to Eurazeo PME syndication (**) Net proceeds of Foncia (closing expected in September 2016) and Elis debt reimbursement
780
H1 2016 RESULTS
GROUP COMPANIES’ DETAILED INFORMATION
32 H1 2016 RESULTS
1
DETAILED INFORMATION ON
H1 2016 RESULTS 33
3.7%* ECONOMIC INTEREST
In €m H1 2016 H1 2015 PF PF Reported
change Comparable
change
Revenue 2,598 2,726 -4.7% +2.0%
EBITDAR
% margin 763
29.4% 837
30.7% -8.8% n/a
EBIT
% margin 239 9.2%
263 9.6% -9.1% -4.0%
Net debt 511 118
H1 2016 results reflect a contrasted business environment Solid revenue growth in H1: €2,598m, up 2.0% L/L Record room growth expansion expected for 2016, with new flagships in key gateways Net debt position reflecting ambitious acquisition policy €2.3bn cash, €511m net debt
(acquisitions partly offset by disposals: €206m cash-in from Huazhu and Grape Hospitality)
FRHI to be consolidated in H2 Full-Year 2016 EBIT: €660m - €720m to be fine-tuned in October
EQUITY METHOD 4.3% through LH19
(*) Post Shareholder Meeting as of July 12, 2016 H1 2016 RESULTS 34
1st Half 2016 Highlights A rich semester for AccorHotels Extensive integration process of FRHI: transaction closed at the AGM on July 12th,
with 98% of approval from shareholders
Strong entry in the Upscale Private Home rental business: acquisition of onefinestay - minority stakes in Square Break & Oasis Collections
Sustainable performance for HotelServices €6.3bn in gross volume up 5% vs. H1 2015
A record semester for organic growth: 110 hotels and 19,366 rooms added (vs. 15,014 rooms in H1 2015)
Fast recruitment of 1,600 independent hotels added to the Marketplace
Successful deployment of the digital plan
Continued progress for HotelInvest Continued growth in EBIT margin to 6.6% (+100 bps vs. H1 2015)
Creation of Grape Hospitality in Partnership with Eurazeo
Preliminary work to turn HotelInvest into a subsidiary
H1 2016 RESULTS 35
79.4% ECONOMIC INTEREST
FULLY CONSOLIDATED
Extremely robust growth at +40% Supported both by organic (+17%) and M&A (+23%) Organic sales driven by all categories and geographies International representing 70% of topline in H1-16 with North America over 30%
Non structural slowdown in margin in H1-16 EBITDA margin decreased by 140bp between H1-15 & H1-16 Negative impact of discontinued activities, expected to be abandoned in 2017 (non-core products) Ramp-up of team reinforcement to support further development
(*) Post refinancing of Eurazeo Shareholder Loans
In €m H1 2016 H1 2015 Reported change
Comparable change
Revenue 144.5 103.3 +40% +17%
EBITDA
% margin
18.2
12.6%
13.7
13.3%
+33% +7%
Net debt 153.6* 93.1 +65% n.m.
H1 2016 RESULTS 36
H1 2016 highlights Successful refinancing
CHANGE IN BUSINESS PROFILE justifying a new financing structure i.e. larger, more structured and more diversified asset
CORPORATE REFINANCING with a pool of 11 French & international banks willing to further support Asmodee’s development worldwide
ATTRACTIVE PRICING between 2.75% and 3.00% depending on tranches, well below former Unitranche financing at 7.15%
FLEXIBILITY still critical with i) limited covenant (leverage) and ii) significant undrawn facilities for both liquidity and acquisitions with €100m available
Further developments ongoing
M&A: Asmodee announced exclusive discussions with F2Z owners for the acquisition of this tier-1 publisher and distributor. Most prominent published title : worldwide best-seller Pandemic
DIGITAL: Several developments ongoing with third parties publishers as well as internal IP, leveraging on recent strengthening of Asmodee digital team
NORTH AMERICAN INTEGRATION: Strong growth potential in the United States justifying further reinforcement in the structure, to integrate recent M&A and get ready for next phase
H1 2016 RESULTS 37
9.8% ECONOMIC INTEREST
EQUITY METHOD
In €m H1 2016 H1 2015 Reported change
Revenue 418.1 451.9 -7.5%
EBITDA % margin
71.4 17.1%
92.3 20.4%
-22.6% -3.3pt
Net cash 317.7 225.7 +40.8%
Sales down by -7,5% in the first half 2016
Second quarter is down 2,8%, thanks to first actions to increase conversion rate of customers
Negative performance across main historical countries in the first half of the year
Implementation of the store network rationalization plan
EBITDA is down by -22.6% mainly as a consequence of the sales’ drop
Net cash position increasing by €92m yoy to €317,7m
H1 2016 RESULTS 38
1st Half 2016 Highlights
Revenue down by 7.5% in the first semester due to reduced traffic in the main countries Impact of the store network rationalization weighing on sales Slight improvement in the second quarter across main channels including digital
EBITDA is negatively impacted by sales’ reduction and the effect of a stronger USD Most raw materials and products are bought in USD Currency hedge is set a year in advance. Last year purchases were covered at 2014
exchange rate, while current year is affected by the realignment of USD and euro in 2015.
Sound financial position €317.7m net cash position Positive cash flow generation compared to last year of c. €92m yoy
The implementation of actions decided during the strategic review continues
H1 2016 RESULTS 39
14.2% ECONOMIC INTEREST
EQUITY METHOD
In €m H1 2016 H1 2015 Reported change
Revenue 730 682 +7.0%
EBITDA % margin
216 29.6%
205 30.0%
+5.6%
EBIT
% margin 93
12.7% 88
12.9% +5.5%
Net debt 1,506 1,405
Robust revenue growth of +7.0% in H1 2016 to €730 million +3.1% ORGANIC GROWTH FRANCE: +1.3% organic growth, driven by commercial dynamism within a challenging economic
environment INCREASING MARKET SHARES IN EUROPE thanks to solid organic growth (+6%, of which +10% in Southern
Europe) and M&A especially in Northern Europe LATIN AMERICA: +33% revenue growth, boosted by external growth in Brazil and Chili (Albia being
consolidated since October 2015) as well as strong organic performance (+12% in Brazil)
EBITDA up +5.6%, in line with expectations Increase in margin in Europe (+71bps) and Latin America (+176bps) Slight margin erosion in France at -27bps, as anticipated
H1 2016 RESULTS 40
1st Half 2016 Highlights Pursued M&A dynamism CONSOLIDATION OF PLATFORMS since the beginning of the year in EUROPE and LATIN AMERICA
• Two significant acquisitions in Germany and Brazil • Another major acquisition finalized in July in Switzerland
SUCCESSFUL INTEGRATION OF THE CHILEAN SUBSIDIARY
Strong commercial activity in all geographies FRANCE: Strong commercial dynamism in Services and roll-over of large contracts, especially
in Healthcare and Hospitality, supporting organic growth despite current economic environment EUROPE: Very robust commercial trends, driven by Southern Europe and in particular Spain
in each industry end market LATIN AMERICA: Gain of new contracts in Brazil with large accounts, using Elis rental and
maintenance business model for the first time
2016 outlook confirmed €1.5bn REVENUES with +3% organic growth and +4% external growth EBITDA MARGIN LEVEL IN LINE WITH H1 PERFORMANCE, with -30bps decrease in France
and further margin improvement in Europe and in Latin America
H1 2016 RESULTS 41
42.3% ECONOMIC INTEREST
EQUITY METHOD
In €m H1 2016
H1 2015 Reported change
Change at Constant
currency *
Revenue 947.9 960.5 -1.3% +0.5%
Adj. Corp. EBITDA
% margin
54.7
5.8%
60.2
6.3%
-9.0%
-7.5%
LTM adj. Corp. EBITDA
% margin
245
11.5%
231
11.2%
Corp. Net debt 200 209
Total revenue amounted to €948 million, up +0.5% at constant exchange rate, mainly driven by a +0.9% growth in rental revenue (€883 million) RENTAL DAYS VOLUME INCREASED BY +3% in H1 2016 vs H1 2015 CONSOLIDATED REVENUE PER RENTAL DAY DECREASED BY -2% at constant currency
Adjusted Corporate EBITDA margin at 5.8% H1 2016 ADJUSTED CORPORATE EBITDA STOOD AT €54.7m (down -7.5% at constant exchange
rate) compared to €60.2 million in H1 2015 Corporate net debt decreased to €200 million, i.e. a 0.8x leverage (based on LTM EBITDA)
(*) UK pound and Australian dollar H1 2016 RESULTS 42
1st Half 2016 Highlights
(1) At constant currency and perimeter, excluding petrol impact (2) Based on a 1.20 £/€ exchange rate for H2 2016. The previous guidance provided was based on a 1.42 £/€ exchange rate for the full year 2016 (3) To be paid from 2017 based on 2016
H1 2016 RESULTS 43
Three acquisitions in H1 2016: Locaroise in May 2016: the third French Franchisee Bluemove in June 2016: a mobility tech start-up and car sharing leader in Spain Wanderio (minority investment): a multi modal search and comparison platform
New organization in 5 Business Units to strengthen competitiveness and agility and to accelerate its development BU Cars BU Vans & Trucks BU Low Cost BU Mobility BU International coverage
Revised 2016 FY guidance Slight increase of Revenues on an organic basis (1)
Adjusted Corporate EBITDA above last year €251million (2)
Adjusted Corporate EBITDA Conversion to Corporate Free Cash Flow above 50% Dividend pay out ratio at least 30% of Net Income (3)
Roll out of our ambitious acquisition plan and opportunistic execution of our Share Buy back program
90.2% ECONOMIC INTEREST
FULLY CONSOLIDATED*
* Consolidated as of January 1st, 2016
In €m H1 2016
H1 2015 Reported change
Comparable change
Revenue 94.5 91.8 +3.0% +4.4%
EBITDA
% margin
14.5
15.4%
13.8
15.0%
+5.2%
Net debt 239
Strong growth in H1 2016 Regular growth in Tax Free Shopping, thanks to a well balanced matrix of tourism flows
and retailers’ performance Improvement in all geographies despite slowdown in France due to current environment Still a solid increase in DCC topline
H1 2016 EBITDA of €14.5 million, up 5% vs H1 2015, with a 15.4% margin
Net debt of €239 million as of 30 June 2016
H1 2016 RESULTS 44
1st Half 2016 Highlights Tax Free Shopping vouchers up 3% in H1 2016 Positive organic growth, mainly fueled by tourists coming from the US, the Middle East, Thailand
and India Strong performance seen in Spain, Germany and Italy A more difficult environment in France since the beginning of the year, due to social climate,
terrorist attacks and an unfavorable retailer mix effect on the average transaction value
Outstanding growth in DCC Fueled by organic growth, especially in the UK and in Latin America… … as well as the gain of new contracts in various geographies
Next steps in Fintrax evolution Several international M&A opportunities under study, both in TFS and in DCC Focus on innovation and digitization, both towards merchants and tourists, in order to provide
a customized offer to retailers and to improve customer experience Upgrade of business organization through a reinforced structure to support long-term
development
H1 2016 RESULTS 45
100%* ECONOMIC INTEREST
H1 2016 RESULTS 46
June 14, 2016: Eurazeo announces the completion of its investment in Glion & Les Roches, with CHF248m equity investment Smooth transition from Laureate ongoing Relocation of HQ functions in Europe Implementation of a new standalone entity benefitting from all necessary resources to ensure
strong development of both institutions
Satisfying financial performance during the first semester Revenue resilience, with revenues amounting to CHF92.8m for the semester, notably on the
back of recently-launched campus development, in a context of relatively stable prices Lack of true comparison basis for the semester as a consequence of the ongoing carve-out
Eurazeo strategy for the Group Reinforcement of management team at HQ level following carve-out Support opening & ramp-up of recently-launched campuses, with Chicago campus for Les
Roches opening in August 2016, and further integrate campuses around the globe to facilitate students’ movements
Invest in Sales & marketing and improve Enrollment organization through additional human & financial resources, roll-out of industry’s best practices and increased proximity with agents
(*) Fully consolidated from July 1, 2016
41.2% ECONOMIC INTEREST
EQUITY METHOD
In €m H1 2016 H1 2015 Reported change
Comparable change
Revenue 79 71 +10.3% +10.3%
Strong organic revenue growth in H1 2016
Sustained opening of new cradles (+9.5% compared to H1 2015)
Sustained commercialization rate of newly opened places, with improvements on overall rate of owned and public nurseries
New opening have been particularly strong on the micro-nurseries segment
Hours of care billed to parents growing at a slightly faster pace +10.5% compared to H1 2015
H1 2016 RESULTS 47
1st Half 2016 Highlights
LPCR has maintained its strong commercial momentum in the first half of 2016 attracting both: Private enterprises looking to support their employees’ work-life balance As well as local authorities looking for professional management of nurseries offered to citizens
following the public service delegation model (“DSP”)
The group’s private clients in H1 2016 count: The arrival of new partners such as Criteo, BPI France, RTE, Thalès Services and Lazard The renewed confidence of the Ile-de-France prefecture, the Caisse des Dépôts et
Consignations, the city of Courbevoie, the Ambroise Paré Hospoital and the CNRS
The Chaperons et Compagnie keeps growing with today more than a thousand nurseries throughout France
With public institutions, LPCR has won the management of 8 municipal nurseries including: Blagnac, Montigny en Gohelle, 2 nurseries in Boulogne Billancourt, 2 new nurseries for Paris
in the 16th and 11th districts and the outsourcing of the municipal nursery in Yerres
H1 2016 RESULTS 48
13.0% ECONOMIC INTEREST
EQUITY METHOD
(€m) H1 2016 H1 2015 Change
Net sales 346.5 295.8 +17%
EBITDA Adjusted* 78.3 70.9 +10%
% margin 22.6% 24.0%
Net debt 84.9 175.3 -52%
* Before non-recurring items: include mainly non-cash costs related to stock based compensation plans and, in H1 2015, extraordinary costs related to the Other Brands Division
H1 2016 RESULTS 49
1st Half 2016 Highlights Consolidated revenues: €346.5m, +17% YoY growth reported (+17% constant currencies)
International markets: €292.3m, 84% of total revenues (83% in H1 2015)
Retail Revenues: €245.9m, 71% of total revenues (68% in H1 2015)
Comparable Store Sales Growth: +5%
EBITDA Adjusted*: €78.3m, margin on sales of 22.6% (24.0% in H1 2015)
- €3m net negative impact of rents for stores not yet opened
EBIT Adjusted*: €59.0m, margin on sales of 17.0% (18.2% in H1 2015)
Net Income, Group share: €33.6m, margin on sales of 9.7% (11.5% in H1 2015)
Net Debt: €84.9m vs. € 49.6m as of December 2015 and vs. €175.3m as of June 2015
(*) Before non-recurring items
H1 2016 RESULTS 50
Revenues by Region
52 54
99 106
103 134
43
53
H1 2015 H1 2016
Italy
EMEA
Asia & RoW
Americas
H1 2016
H1 2015 YoY growth Reported Const. curr.
+17% +17%
+23% +20%
+30% +30%
+7% +8%
+5% +5%
296 17%
33% 35%
15%
16%
30% 39%
15%
REVENUES ANALYSIS (in €m)
Positive revenue growth trend continued in the second quarter in all regions Good performance of the domestic market continued European markets showed solid growth driven, in particular, by UK and Germany. Asia showed a good double-digit growth, driven by positive performances
in all markets, in particular Mainland China and Japan Revenues in Americas showed strong performances with double digit growth
in both channels.
347
H1 2016 RESULTS 51
Asia & RoW Italy EMEA
Americas
Revenues by Distribution Channel
Retail Wholesale
H1 2015
H1 2016 94 101
201 246
H1 2015 H1 2016
296
Wholesale
Retail
YoY growth Reported Const. curr.
+17% +17%
+22% +22%
+7% +6%
Both distribution channels registered solid performance Retail revenues continued to show double-digit growth,
supported by organic growth and well performing new openings Sales of comparable DOS (Comp-Store Sales) rose 5% in the first
six months of 2016, with positive performances in all regions Wholesale sales achieved a +6% growth at constant exchange rates, largely
due to the good contribution of the North American and the European markets
32%
68%
29%
71%
347
REVENUES ANALYSIS (in €m)
H1 2016 RESULTS 52
17.2% ECONOMIC INTEREST
EQUITY METHOD
In €m H1 2016* H1 2015* Reported change
Comparable change
Revenue 768 761 +1.0% +5.6%
EBITDA
% margin
46
5.9%
44
5.8%
+3.5% +8.5%
Net debt 135 41 +229%
(*) Calendar year
Strong organic revenue and EBITDA performance in H1 2016
STRONG GROWTH IN MEXICO both in complete feed and premix as well as in pet food
RETURN TO GROWTH IN ASIA especially in Vietnam
STRONG CONTINUED GROWTH OF ADDITIVES
GOOD PERFORMANCE IN BRAZIL despite difficult economic situation
Offset by difficult market environment in France
H1 2016 RESULTS 53
EBITDA LTM pro forma for 2015–16 acquisitions: €101m
1st Half 2016 Highlights
Recent acquisitions have known a strong performance, continuing to balance InVivo NSA’s mix across products, geographies and species
Over the last twelve months, strong M&A momentum has amounted to €100m in acquisitions, with 4 companies bought in the 1st semester of 2016: B-TECH: Leading player in the Brazilian feed additives market (c. €20m revenue)
DAAVISION: Additives specialist, adding innovative fatty acids solutions to the current portfolio (c. €12m annual revenue)
AGRINDUSTRIA: Italian analysis laboratories (c. €2.5m annual revenue)
POPULAR FEEDMILL CORPORATION ASSETS: Complete feed manufacturing in the Philippines (c. €60m annual revenue)
H1 2016 RESULTS 54
65.5% ECONOMIC INTEREST
FULLY CONSOLIDATED
In €m H1 2016
Reported H1 2015
Reported Reported change
Comparable change(1)
Revenue 300.7 309.3 (2.8)% (9.3)%
EBITDA
% margin
45.8*
15.2%
37.9
12.2%
+20.8% (1)%
Net debt 411 n.m(2) n.m
Resilient volumes and profitability in tough market environment Sustained market demand and volumes on most products Lower revenue vs. H1 2015 mostly driven by lower crude oil prices Competitive tensions in PAP market affecting the Pharma & Cosmetics division Increased EBITDA vs. H1 2015 thanks to Uetikon acquisition in 2015. EBITDA margin improved by
170bps
4.5x leverage
(1) At constant perimeter and FX (2) Debt financing package pre Eurazeo acquisition
(*) Restated from €1.5m negative impact at French strikes on EBITDA
H1 2016 RESULTS 55
1st Half 2016 Highlights
June 23, 2016: Eurazeo announces the completion of its investment in Novacap, with €160m equity investment
Our ambition for Novacap in the future
Accelerate the group’s growth by bolstering its position in 5 resilient and growing target markets (pharma & healthcare, cosmetics & fragrances, food & feed, home care and environment)
Continue to develop high added-value specialty products such as APIs, sodium bicarbonate or oxygenated solvents
Further expand the company’s international coverage, both industrially and commercially
Leverage of 4.5x: €435m Term Loan B with a 7-year maturity and a 5.00% coupon
Start of the construction of a greenfield Sodium Bicarbonate production unit in Singapore which is expected to be operational in Q2 2017
H1 2016 RESULTS 56
18.3% ECONOMIC INTEREST
In €m H1 2016 H1 2015** Change
Total net revenue** 28.1 36.7 -23.3%
Operating result**
% margin -0.3 n.m.
4.8 13.0%
N.M.
Group net profit % margin
0.2 0.9%
20.5 55.9%
N.M.
Total customer financial assets* 7,063 8,183 -13.7%
Total equity*** 191 262 -27.1% (*) AuM: Assets under Management. Excluding €446m AuM accounted for as «double counting» in France (€ 399 in H1 2015) (**) Normalized to take into account the extraordinary items, the impact of the organizational measures.
2015 numbers are pro-forma of discontinued activities, to show the same perimeter as 2016 (***) After €55m distribution to the shareholders in 2016
After last year disposal of the advisory business, Banca Leonardo is now a pure player in the Private Banking with operations in Italy, France and Switzerland and €7.1bn AuM* Leading independent private banking in Italy Fast developing player in France
Negative performance in the first half of the year Difficult market conditions affect both AuM evolution and recruitment of bankers A team of private bankers left the company last year and this temporarily generates an AuM outflow
H1 2016 RESULTS 57
1st Half 2016 Highlights
6 months revenue down 32% due to slow down in Italy, while France keeps growing
Market conditions and the consequences of the Brexit affected the performance of the AuM
A net loss in the MtM of the investment in the listed company basic net is accounted for as a negative revenue (-€0.6m, which compares to +€1.9m in H1 2015)
The departure of a team of private bankers temporarily reduces the AuM and revenue generated
Revenue in France has been growing mid-single digit in the first half of the year
Asset under management are down to €7bn, due to the departure of a team of private bankers in Italy and to the negative market performance across all geographies
The recruitment of new bankers is ongoing and should allow to fill the gap in the future
€10,1m dividend paid out to Eurazeo (vs €6,1m paid out in H1 2015)
H1 2016 RESULTS 58
2
DETAILED INFORMATION ON
H1 2016 RESULTS 59
Financials
(€m) H1 2016 H1 2015 PF Like-for-like
change H1 2015 Reported change
Revenue 411.4 362.6 +13.5% 342.5 +20.1%
EBITDA(1)
% margin
53.2
13%
46.5
13% +14.3%
46.3
14%
+14.8%
Net debt
Portfolio leverage(2)
410.6
3.1x
292.6
2.5x
(1) Majority investments (2) Excluding Capital lease debt
H1 2016 RESULTS 60
Portfolio
€341m*
(*) As of June 30, 2016, the total value of the portfolio under management is €502m compare to €414m last year (**) Dessange : Post shareholders loans reimbursement €16m (***) Half-year 2016 acquisitions
As of December 31, 2015 As of June 30, 2016
€284m*
**
***
***
H1 2016 RESULTS 61
1st Half 2016 Highlights
0,4
55,5
88,1
43,5
35,5
50,1
138,2
411,4
0,3
55,3
83,1
42,9
31,0
32,1
117,9
362,6
Change in l.f.l. basis (*)
+17%
+56%
+15%
+1%
+14%
+6%
+0%
• NHS closing in May: homecare services for seniors via 12 offices in the Ile-de-France and PACA regions
• Total of 75 facilities: + 28 facilities since the acquisition in Sept. 2014
2015 PF 2016 REVENUE (€m)
Other (*) adjusted for Cap Vert Finance sale and Flash Europe acquisition MKDirect and Orolia will be integrated in the consolidated accounts as at July 1st, 2016
• Acquisition in January 2016 of Coiff’Idis, French leader in professional care products (revenue of €35 million)
• On a like for like basis, sales increase by 1%
• Impact of decrease in Parisian attendance, good performance in the rest of France
• New concept Léon de B. opening in Paris 19ème
• Good performance overall both in France and abroad • Pursuing integration of the Indian subsidiary
• Steady growth in the valuable aftermarket segment • Development of LED products
• Wins of significant contracts
H1 2016 RESULTS 62
3
DETAILED INFORMATION ON
H1 2016 RESULTS 63
1st Half 2016 Highlights
• Strong activity with c.30% y-o-y sales growth and over 100% growth in bookings
• Acceleration in China through successful roll out JV operations with Wanma
• Launch of a new division investing in O&G discovery leveraging I Pulse technology: first investment of $10m made in June
• Slight improvement in O&G services with the increase in crude prices
• Promising discoveries in the mining sector
• New name and brand identity
• Opening of the Italian office with strong performance in the 1st months
• Strong emphasis placed on innovation and service quality
• Solid performance of newly opened countries such as the US and Germany
• Key hires in editorial and marketing team
• Improvement of user experience on web and mobile
• Solid growth in H1, notably thanks to new large customer accounts
• Ongoing ramp up of activity in the US, UK and Germany
• Continued development of solar power plants in France
• Ongoing construction of 1st solar power plant in Puerto Rico (26 MWc)
• Connection and start of production of first biogas plant
• Strong growth in H1, in particular in Asia
• Successful launch of first monobrand e-commerce platform with Manolo Blahnik
H1 2016 RESULTS 64
4
DETAILED INFORMATION ON
H1 2016 RESULTS 65
1st Half 2016 Highlights
ANF Immobilier Strong growth of rental income (+11%) and Recurring Net Income group share (+15%),
fueled by deliveries and strong performance of core business Comprehensive strategic plan implemented in Marseille to counter decline in NAV resulting
from decreasing retail sales
CIFA Occupancy, cash flow generation and deleveraging in line with expectations over the first year Launch of an online market place in June 2016, available to CIFA and other wholesalers On-going development of a c. 3,000 sqm extension program
Grape Hospitality Acquisition of a portfolio of 85 hotels from AccorHotels closed on June 30, 2016 Asset value of €504m, equity investment for Eurazeo Patrimoine of €150m for 70% of the capital Pre closing S1 2016 performance comforting established business plan
H1 2016 RESULTS 66
1st Half 2016 Highlights
H1 Rents increase through high frequency of project deliveries H1 2016 rents +11% increase compared with H1 2015 and stable on a like-for-like scope Confirmed guidance: a FY 2016 EPRA Recurring Net Income, Group share increase of +10% €162 million commercial real estate projects successfully delivered since end-june 2015
A strong focus on recurring cash flows H1 2016 recurring EBITDA +12% increase compared with H1 2015 Recurring Cash Flow of €10.4 million at end-june 2016
Asset rotation generating significant positive yield spread between new investments and disposals H1 effective asset rotation: €45 million commercial real estate projects delivered featuring yields
above 7% compared with €21 million heritage mostly vacant assets disposed €97 million Bordeaux flagship project launched in partnership with Foncière des Régions Asset value of €1.08 billion, pipeline of €152 million to be delivered by 2018/2019,
additional 10,500 sqm land banks to fuel further growth at end-june 2016
Triple Net NAV decreased by 4% compared to H1 2015 mainly due to retail assets in Marseille (local temporary oversupply and decreasing turnovers in France regarding ground floor retail premises) and financial instruments fair value change
Payment of a €1.24 dividend per share, up 13% from H1 2015 due to FY 2015 disposals and French REIT regulatory requirements
H1 2016 RESULTS 67
Financials IFRS (in €m) H1 2016 Reported Change H1 2015 Reported
Gross Rental Income 25.8 +11% 23.2
EBITDA 16.8 14.9
% margin 65% 64%
Recurring EBITDA 17.6 +12% 16.3
% margin 68% 70%
Recurring cash flow 10.4 +12% 9.3
RCF per share 0.6 0.5
(In €m) H1 2016 Reported H1 2015 Reported
Real Estate portfolio 1,082 -7% 1,165
Net Debt 492 531
NAV per share 27.4 29.2
Triple Net NAV 26.2 27.9
LTV 45.5% +50bps 45.0%
H1 2016 RESULTS 68
CIFA
Perspectives / Valuation Banks Real estate leasing
Wholesalers
Rents
100%
Seller
€227m asset value
7.2% net acquisition yield (ie NOI / EV)
85% leverage on cost with a 12 year loan
Eurazeo Patrimoine: €26.5m investment, for a 78% ownership
RoE before debt amortization of 30%
Revenues H1 2016: €9.1m Rental income H1 2016: €7.6m
Key financial data
Stable, defensive and resilient cash flow stream, allowing for an efficient financial operation
Strategic location in the heart of the wholesale district of Aubervilliers
High quality, modern building compared to the surrounding wholesale centres
Leading and internationally recognized site, with a unique and differentiated positioning
CIFA* key advantages
Solid rental income is warranted by: – prime asset situation within its sector – high tenant captivity – low deficiency rate (unpaid rents)
Yet low rental growth is forecast due to the almost full occupancy rate of the building and projected low indexation rate
Valuation as of June 30, 2016 (performed by CBRE) is higher than acquisition value (+12.4%) and end of last year valuation (+3.2%), change is mainly driven by yield compression across markets
(*) CIFA: Centre International France Asie
H1 2016 RESULTS 69
Grape Hospitality Acquisition of a significant pan European portfolio of 85 budget and
mid-range hotels, most of which located in France (69 % of revenues) and in major European cities – Proprietary transaction negotiated off market with Accor, which
holds a 30% stake of the capital*
Hotels grouped within a newly created platform, dedicated to the hotel business, and headed by a team of experienced professionals
Main axes for significant value creation: – Strategic repositioning and performance improvement – Switch from a model where misalignment of interests between
owners of freeholds and leaseholds has led to significant under-investment, to an integrated model
– Massive capex plan and productivity enhancement – Dynamic asset and hotel management led by a light non-
AccorHotels structure – Market risk mitigation thanks to geographical and product diversity
across the portfolio – Hotels under various AccorHotels brands (franchise contracts)
Acquisition of 57 hotels freehold from Foncière des Murs, Axa and Invesco, alongside with all the leaseholds and 28 of the freeholds from AccorHotels
Opportunity to further develop the portfolio, through other acquisitions
Mapping of the hotels
Hotels 85
Rooms upscale midscale budget
9,125 1.1%
45.9% 53.0%
Total revenues (€m) 215.6
Normative EBITDA (€m) % margin
44.5 20.8%
Financial data for 2015
61 hotels
9 hotels 2 hotels
3 hotels
4 hotels
1 hotel 4 hotels
1 hotel
*Subject to a subsequent syndication
H1 2016 RESULTS 70
OTHER
H1 2016 RESULTS 71
A long-term shareholder base and a strong corporate governance
72
Crédit Agricole(2) 14.9%
Sofina 5.4%
Concert(1)
17.0%
Joliette Matériel 2.2%
(1) Concert as of June 30, 2016 (2) Including 8,19% of capital related to exchangeable bonds (3) 3.3% of treasury shares
• Separation of the roles of Chairman and CEO
• Independence of the Supervisory Board: 8 independent members out of 13
• Audit Committee, Finance Committee, Compensation and Appointments Committee, CSR Committee
• Existence of a shareholder agreement between founding families (“Concert”, former SCHP)
SHAREHOLDING STRUCTURE as of June 30, 2016(1)
A STRONG CORPORATE GOVERNANCE
Free float(3)
60.5%
H1 2016 RESULTS
November 18, 2016 Eurazeo Investor Day
November 10, 2016 3rd Quarter 2016 Revenues
Financial Agenda
73 H1 2016 RESULTS
About us
74
Investor Relations Caroline Cohen
• ccohen@eurazeo.com + 33 (0)1 44 15 16 76
Communication Sandra Cadiou • scadiou@eurazeo.com + 33 (0)1 44 15 80 26
• ISIN code: FR0000121121 • Bloomberg/Reuters: RF FP, Eura.pa • Indices: SBF120, DJ EURO STOXX, DJ STOXX
EUROPE 600, MSCI, NEXT 150, LPX Europe, CAC MID&SMALL, CAC FINANCIALS
• 71,908,807 shares in circulation • Statutory threshold declarations 1%
• HSBC Pierre Bosset
• JP Morgan Cazenove Christopher Brown
• Kepler Cheuvreux David Cerdan
• Natixis Céline Chérubin
• Oddo Christophe Chaput
• SG Patrick Jousseaume
www.eurazeo.com
EURAZEO CONTACTS RESEARCH ON EURAZEO
EURAZEO SHARES
H1 2016 RESULTS