eurazeo 2012 annual results presentation
TRANSCRIPT
FY 2012 RESULTS Accelerating change
March 20, 2013
Contents
FY 2012 RESULTS 2
03 2012, a dynamic activity New momentum in asset rotation
11 FY 2012 Results Continued increase in Group companies’ contribution
36 Outlook Our ambition: value creation
22 Strategy Detecting, accelerating and providing value to our companies
2012, A DYNAMIC ACTIVITY
New momentum in asset rotation
FY 2012 RESULTS 3
Continued increase in companies’ contribution
FY 2012 RESULTS 4
238
-59
7
2011 PF* 2009 2012 2010
138
CONTRIBUTION OF COMPANIES Net of finance costs (in €m)
(*) Proforma : impact of acquisitions of Eurazeo PME, Foncia, Moncler, and 3SPGroup. €90m as reported
NAV In € per share
Strong NAV growth
FY 2012 RESULTS 5
2011 2012 March 11, 2013
(*) NAV with ANF Immobilier taken at its NAV: €57.6 as of December 31, 2012 and €60.1 as of March 11, 2013
+16%
59.2*
56.8*
48.9
Smartly rotating our assets
FY 2012 RESULTS
AVERAGE WEIGHTED AGE in years
DISPOSALS in % of NAV as of Jan.1
2009 2010 2011 2012 2008 2009 2010 2011 2012 YTD2013
A progressively maturing portfolio Strong acceleration in the asset rotation
6
3.3
4.2 4.3
5.3
6.0%
4.0%
2.0%
13.0% 14.0%
A strong track record over the long-term: weighted average multiple of 2.1x
FY 2012 RESULTS 7
0,0x
0,5x
1,0x
1,5x
2,0x
2,5x
3,0x
3,5x
4,0x
Fraikin
Eutelsat
Terreal
Station Casinos
Sirti
B&B Rexel Rexel Edenred
2005 2007 2010 2012 YTD 2013
Mors Smitt
0.0
3.5 3.4
0.2 Multiple
<€50m
€50m to €100m
€100m to €150m
>€150m
Investment size:
x
Year of disposal
Weighted average multiple of 2.1x
2.0 2.1 2.0
2.4 2.0
3.5
Dedicated resources to source and develop attractive opportunities
FY 2012 RESULTS 8
• Sectors that benefit from long-term growth prospects
• Companies with strong transformation potential
• European companies with international exposure/potential
Focus on growth
– Alliances with Asian or American investors to get the most relevant expertise and make our offer more attractive
– Additional network for our portfolio companies
▲Development of partnerships to reinforce our expertise in non-European geographies
– Proactive approach of attractive targets (direct sourcing)
– If needed, senior advisors relationships help originate and analyze investment opportunities
▲Strong European network to source deals
▲Opening of an office in China to raise the international business of our companies
– A platform to accelerate the deployment of its investments
– Extension of our network of strategic partners in Asia
– New joint investment opportunities with Asian partners
An organization dedicated to value creation
FY 2012 RESULTS 9
MAIN INVESTMENTS
POSITIONING
SIZE
Mid-to-large companies
> €150/200m EV > €75/100m equity
Accor, APCOA, Elis, Europcar, Foncia, Moncler, Rexel,
Small / midcap
< €150/200m EV €15-75m equity
Dessange, Léon de Bruxelles, The Flexitallic Group (FDS), Gault & Frémont
Growth equity
Equity tickets of €30-70m
ANF Immobilier Colyzeo
Real estate
Fonroche, 3SPGroup, l-PuIse
▲One focus: accelerating change of our companies
▲One firm, 4 investment strategies, 21 portfolio companies
▲Proactive sourcing: investing in growth-potential companies
Strong NAV growth
FY 2012 RESULTS 10
3,231
3,751
+85
+462 -143
+30 +35 -22 +51 +17 +3
+84 -271 +189
NAV12/31/11
NAV12/31/12
+€404m
ANF Rexel Mors Smitt
+€43m
+€68m
-€184m
Cash & others
Investments Change in fair value
Disposals
FY 2012 RESULTS
Continued increase in Group companies’ contribution
FY 2012 RESULTS 11
Eurazeo keeps outperforming the Eurozone
FY 2012 RESULTS 12
4,372 4,421
3,722 3,906
2011(1) 2012
+4.9%
+1.1%
Companies consolidated under equity method
Fully consolidated companies
8,094 8,327
+2.9% ECONOMIC REVENUES In €m
(1) Restated for the sale of Mors Smitt at Eurazeo PME, Motel 6 / Studio 6 at Accor and a portion of ANF Immobilier’s assets and on a pro forma basis adjusted for the acquisitions of Moncler, Foncia, 3SP Group and Eurazeo PME
(2) Source: Eurostat-ECB – Eurozone 17 countries: Belgium, Germany, Estonia, Irland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland
EUROZONE GDP 2012(2)
-0.6%
Continued increase in companies’ contribution
FY 2012 RESULTS 13
(€m) 2009 2010 2011 PF(1) 2012 Change
Adjusted EBIT of Group consolidated companies 485 512 570 608 +7%
Cost of financial debt of Group consolidated companies (net) (463) (476) (521) (475) (9%)
Results for companies consolidated by the equity method, net cost of debt
(80) (30) 88 105 +19%
Contribution of companies’ net cost of debt (59) 7 138 238 +73%
CONTRIBUTION OF COMPANIES Net of finance costs
(1) Proforma = impact from the acquisitions of Moncler, Eurazeo PME, Foncia, 3SP Group and from ANF Immobilier’s assets disposals
Increasing EBITDA despite tough economic conditions
FY 2012 RESULTS 14
51
128
80 102
61
92 87
123
66
119
90
170
2010
2011
2012
CAGR 2010-2012
+4%
+14%
-4% +6%
+29% 347 371 377
x%
(*) Companies EBITDA (portfolio as of 12/31/2012) (**) Adjusted Corporate EBITDA
**
EBITDA in €m
*
+24%
72 50 47
Profit & Loss details
FY 2012 RESULTS 15
(€m) 2011 PF 2012
Contribution of companies’ net cost of debt 138 238
Change in value of real estate properties 41 (16)
Losses and disposal of real estate properties - (54)
Capital gains 36 10
Other(1) (93) (99)
Taxes (2) (50)
Non-recurring items (219) (298)
Net consolidated income (100) (269)
Net consolidated income Group share (112) (198)
(1) Amortization of commercial contracts, net cost of financial debt of holding sector and operating costs
2
50
8
13
11
16
2011 tax Limitation ofdeductibility offinancial costs
Limitation on taxloss carried
forward
3% tax ondividends on ANF
Other 2012 tax
RECURRING TAX in €m
• €21m in costs and €1m in cash
• Plus the one-off 3%-tax on dividends on the pay-out carried out by ANF Immobilier (€11m in cost and in cash)
(*) French tax dedicated to encouraging the competitiveness of companies
The main tax measures of the 2012/2013 Financial Law have a negative impact of:
Positive CICE* impact
• Positive impact of + €15m expected from 2013 at EBIT level
FY 2012 RESULTS 16
Change in tax
One-off items
FY 2012 RESULTS 17
ASSET ROTATION
EUROPCAR REFINANCING
GOODWILLS
OTHER
298
77%
23%
Sale of part of ANF Immobiliers’ portfolio 20
Accor 91 Impact of Motel 6 sale 69 Other products and charges 22
Renegotiation of swaps 35
Depreciation on goodwills 84 Elis, Fraikin & other
Other products & charges 68 Including restructuring costs 39
For Eurazeo: €271m cash impact For ANF: sale of mature assets, enabling further development. IRR of 15.2% on Lyon since 2004, and cap rate close to 4%
For Accor: Net debt reduced to €780m Reduction in capital employed:
2011 ROCE proforma: 13.9% vs. 12.3% 2011 EBIT proforma: 9.2% vs 8.7%
For Europcar: €34m savings in financial costs on a full year basis
Corporate debt maturity postponed from 2013 to 2017
2
1
3
4
TOTAL
BENEFITS:
Net income group share bridge
FY 2012 RESULTS 18
-127
-198
+197 -155
-43
-24 -20
-26
June 30, 2012 net income group share
Dec. 31, 2012 net income group share
Companies’ contribution
Other recurring
items Impairments (Elis, Fraikin,
APCOA, add. Motel 6) Restruct.
Various depreciations
(Accor, Moncler)
Other costs
In €m
Decrease in financial leverage
FY 2012 RESULTS 19
x
2x
4x
6x
8x
10x
12x
14x
201020112012
(1) Europcar: Corporate Net debt / Corporate EBITDA
(1)
Portfolio companies’ debts are non recourse to Eurazeo
CONSOLIDATED NET DEBT In €m
Decrease in consolidated net debt(1)
FY 2012 RESULTS 20
4,434 4,176 3,348
1,209 1,157
1,157
2011 2012 2012PF**
Net debt excl. EC fleet debt*
Europcar fleet debt*
(*) Excluding debt equivalent of fleet operating leases (**) Proforma from the sale of Rexel and Edenred shares
5,643 5,333
4,506
Consolidated leverage as of Dec. 31, 2012(2): 2.1x and 1.9x proforma
Decrease in IFRS consolidated net debt from €6.3 bn to €6.0 bn as of Dec. 31, 2012 and €4.5bn proforma
(1) Excluding Danone exchangeable bonds (2) Consolidated leverage as of December 31, 2012=
(Consolidated net debt – Value of assets which do not contribute to adjusted consolidated EBITDA) / Adjusted consolidated EBITDA
Strengthened cash position
FY 2012 RESULTS 21
138 292
642 436
125 73
169
164
520
170
31-Dec-11 Disposals Dividendsreceived
Dividendspaid
Investments Other 31-Dec-12 Disposals 11-March-13
CASH POSITION In €m
A fully available revolving credit line of €1bn
Debt reimbursement
and other
STRATEGY
Detecting, accelerating and providing value to our companies
FY 2012 RESULTS 22
Detecting growth potential
FY 2012 RESULTS 23
Identifying and selecting key sectors
2 Strategic monitoring of social trends
1 Targeting and pro-actively approaching investment opportunities
Defining target company’s true potential
3
Possible support from partners and senior advisors
• Increasing purchasing power in the emerging markets
• Evolution of purchasing patterns
• Longevity
• Health awareness
• Environmental concern, natural resources scarcity, etc.
• Luxury & global brands
• Technology & digital
• Health care
• Energy-driven businesses
• Financial services
4
DETECTING TRANSFORMATION 01
GROWTH POTENTIAL DETECTION IN 4 STAGES
Moncler: a true gem detected by Eurazeo
FY 2012 RESULTS 24
2010 Mid-term targets*
75%
25%
Distribution Channel Wholesale
Retail
>50%
<50%
2012
49%
51% 2012 retail sales growth: > 80% 83 stores vs. 55 as of June 2011 +50%)
Geography
43%
57%
Italy
RoW
>70%
<30%
74%
26% Asia is now the 1st geography for retail sales
Collection 77%
Spring-Summer
Fall-Winter
23% Seasonal
rebalancing
(*) Mid-term targets announced on acquisition date (June 2011)
DETECTING TRANSFORMATION 01
~70%
~30% Co-Branding experiences and marketing initiatives (eyewear, trolleys, etc.)
Moncler: outstanding figures
FY 2012 RESULTS 25
GROUP SALES In €m
GROUP EBITDA In €m
2010 2011 2012
102 123
170
2010 2011 2012
(1) “Like-for-Like” definition: perimeter including only those stores already opened as of January 1 of previous year
• 2012 Moncler brand: sales up +35% and +18% lfl(1) vs. 12% last year • More than x3 sales in Japan and China from 2010
Group sales up 22% compared to 2011 and EBITDA margin up 3pts at 27% of sales
DETECTING TRANSFORMATION 01
+20%
+39%
432
513
624
Moncler brand
+19%
+28%
+35%
+22%
New projects building the future of Moncler
FY 2012 RESULTS 26
2012 Mid-term targets
Geography
10%
26%
32%
32%
America and RoW
Italy Asia/Japan
Rest of Europe
Further geographical rebalancing Accelerate development in America and ROW, notably the US and Brazil
Collection
Accessories
More creative and balanced line from F/W 2012 Co-Branding experiences and marketing initiatives (eyewear, trolleys, etc.)
DETECTING TRANSFORMATION 01
Further diversification Development of accessories consistent with brand’s image: a full accessory line from F/W 2013 bags (shoes, eyewear, knitwear, etc.)
Performance of Eurazeo’s investment in Eurazeo PME
FY 2012 RESULTS 27
125,6 153,0
227,4
38,4 +27.4
Eurazeo cost price June 2011
Net additional investments
Eurazeo cost price Cumulative amount
as of Dec. 2012
Contribution to Eurazeo’s NAV
Dec. 2012
18 months
€164m March 2011 OFIPEC portfolio
23% discount
(incl. cash 5m)
IRR of 31%
1.5x
DETECTING TRANSFORMATION 01
Eurazeo PME, a quality team detected by Eurazeo
FY 2012 RESULTS 28
▲ Dynamic asset rotation both at Eurazeo PME and its portfolio’s levels: – 3 significant acquisitions carried out by The Flexitallic Group (FDS)
and Dessange International in North America
– Outstanding sale of Mors Smitt: multiple of 3.5x
– 14% of Eurazeo’s PME NAV* sold in 2012
▲ Proven ability to help SMEs expand – Financial support of Eurazeo
– International ambitions
▲ Strong 2012 performance – Revenues +18% and +29% adjusted for the sale of Mors Smitt
– Portfolio** EBITDA +29% and +45% adjusted
DETECTING TRANSFORMATION 01
(*) NAV as of Dec.31, 2011 (**) Majority investments as of December 31, 2012
Strong acceleration in Eurazeo’s asset rotation
29 FY 2012 RESULTS
DISPOSALS (in €m)
180 184
55
436 520
2008 2009 2010 2011 2012 YTD 2013
02 ACTIVATING VALUE
~€1bn
€419m
Exercising tight control of investment timing
FY 2012 RESULTS 30
02 ACTIVATING VALUE
SIGNIFICANT DISPOSALS CARRIED OUT IN 2012 AND EARLY 2013
Full disposal carried out by Eurazo PME
Sale of a significant part of the portfolio
Partial sale
x2 Proceeds of ~€140m
x2 Proceeds of ~€225m
x3.5 Proceeds of €22m
x2.4 Proceeds of €271m
March 2012 June 2012 October 2012
February 2013
Rexel ANF Immobilier Mors Smitt Edenred
Full disposal
March 2013
x2 Proceeds of €295m
Activating all transformation levers
FY 2012 RESULTS 31
External growth
Innovation
Process reinforcement
Implementation of a strong Corporate governance
Evolution of business models
International expansion, particularly in emerging markets
Organic growth
02 ACTIVATING VALUE
Focus on the sale of Edenred
FY 2012 RESULTS 32
March 2013 Change achieved end of 2012
At the time of the investment 2010
Sale of the entire stake at €26.13 per share
02 ACTIVATING VALUE
FINANCIAL
OPERATI
ONAL
• Investment: 2008 (as part of Accor Group)
• 2008 Issue Volume: €12.7bn
• 2008 FFO: €217m
• Limited development of Prepaid Services within the Accor Group
• 30% digital issue volume in 2009
• Exposure to emerging countries: 52% of issue volume
• New management team
• New strategy
• Creation of the corporate brand
• IPO and structuring of financing
• Robust 2012 performance with financial targets met
• Issue volume: €16.7bn
• FFO: €282m
• Stronger foundations to boost growth: new organizations, processes and tools
• Acceleration of new solutions and new country development
• Digital shift well on track: 51% digital issue volume
• Increase of weight of emerging countries: 61% of issue volume
• Transformation objective achieved
• Stock market outperformance since the IPO: market valuation x2
Net proceeds: €295m*
Multiple: x2 our initial investment
(*) After taxes, costs relating to the transaction and reimbursement of the debt
Capital gain: €360m
Activating all transformation levers
FY 2012 RESULTS 33
ACCELERATING TRANSFORMATION 03
External growth
Innovation
Process reinforcement
Implementation of a strong Corporate governance
Evolution of business models
International expansion, particularly in emerging markets
Organic growth
Europcar’s performance: building on solid foundations
FY 2012 RESULTS 34
ACCELERATING TRANSFORMATION 03
€50m FASTLANE 2014 PROGRAM – Launching of the Fastlane 2014 program to improve Adj. Corporate EBITDA by at least €50m by 2014 Impact by end 2014
€ 18m ▲TOP LINE INITIATIVES €32m
▲COST INITIATIVES
– New group Revenue and Capacity Management group created, enhancing revenue quality and margins
– Commercial optimization and focus on Corporate Key Accounts
– New website launch and refining of e-commerce strategy
– Restructuring costs both at headquarters level and in the network
– Fleet costs renegociated and going down
– Insurance claims processes redesign
NEW ORGANIZATION IMPLEMENTED February 2012:
– Jean-Charles Pauze, new President
– Roland Keppler, CEO
– Caroline Parot, CFO
End 2012: – New organization completed
with senior profiles with strong background at the Executive Board:
• Marcus Bernhardt as Chief Commercial Officer from the Hotel and Airline industry
• Jacques Brun as Chief Transformation Officer coming from car rental industry
• Involvement of the Country Managers in specific transversal workshop
PRODUCT OFFERING DEPLOYMENT – European launch of new InterRent concept on
March 19 after good adoption in Spain and Portugal • Extension in France, UK and Germany
– First international franchisee conference on March 4 in Berlin:
• 67 countries represented • Appetite for reinforced cross-border strategy and InteRent launch
Fonroche: from a local photovoltaic player to a global developer of renewable energies
2010 2011 2012 Mid-term
France International Biogas
45
8 52
22
Assembly plant and project pipeline in France
3 main activities of the photovoltaic (“PV”) value chain: assembly of PV panels, development and production of elec-tricity from PV plants
OPERATED CAPACITY In MWc
1st buildings in France
1st contracts abroad: • 77MW signed in Porto
Rico and Master Agreement over an additional 100MW
• 22MW awarded in India
1st buildings abroad: • 22MW build in India
New contracts: • 63MW awarded in France
• 24MW signed in Kazakhstan
• First sales of developed farms validating new business model
Development of new energies (biogas and geothermia)
FY 2012 RESULTS
ACCELERATING TRANSFORMATION 03
74
35
Continued build-up of assets in France
Solar farms abroad
First biogas facilities
OUTLOOK
Our ambition: value creation
FY 2012 RESULTS 36
Generous return to shareholders since 2002
FY 2012 RESULTS 37
▲ Overall TSR: +98% over 10 years* vs. +38% for the CAC40
▲ Eurazeo has distributed ~80% of its market capitalization since June 30, 2002 • €557m through ordinary dividends
and €357m through special dividends • €606m through share buyback
1,925 2,390 2,390
465 557
357 514
1,428
June 30, 2002Market cap
December 2012Market cap
Ordinarydividend
Special dividend Share buyback December 2012
(*) Between June 30, 2002 and March 11, 2013
In €m
▲ Still, market cap has increased by 24% over the period
Shareholders’ return
Increase in market cap up to Dec. 2012
▲ Overall TSR: +98% over 10 years* vs. +38% for the CAC40
▲ Eurazeo has distributed ~75% of its market capitalization since June 30, 2002 • €557m through ordinary dividends
and €357m through special dividends • €514m through share buyback
Steadily growing return to shareholders
FY 2012 RESULTS 38
38 45 45 57 63 63 64 67 73 79
293 64
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Special dividendOrdinary dividend
Special dividend (cash) Special dividend
(ANF Immobilier shares)
DIVIDEND DISTRIBUTION In €m
FY 2012 Dividend
€1.20/share to be paid on 14 May 2013
Bonus share
1 for 20
Ordinary dividend CAGR: 8.2% over 10 years
2012 figures confirm our mid-term targets
FY 2012 RESULTS 39
2012 EBITDA growth: +9%
Decrease in net debt
Status as of Dec. 31, 2012 Mid-term outlook*
• Annual EBITDA growth of +5-10%
• Excess cash flow generation
Revenues: +3.2% as reported and +1.3% lfl
EBITDA up +1.4%. EBITDA margin at 31.8% vs 32.3% in 2011 (dilutive impact of acquisitions)
• More than 3% revenue growth per year on average
• Continued year on year EBITDA margin improvement
Slight decrease in revenues: -1.7%
Slightly improved Adj. Corp. EBITDA margin
Corporate net debt reduced from €602m to €568m
• Annual revenue growth above 3.0%
• Improved operational margin
• Total net debt stabilization
• Annual EBITDA growth of +5-10%
• Positive net organic client gains
Increase in EBITDA by +3.6% (EBITDA Margin improved by +1.4% vs. 2011A)
“Cap 0” achieved in Lease management, imple-mentation of digitalization and of myfoncia.fr
• Outperforming Luxury market growth
• Stable margins
• Balance retail and wholesale channels (50/50)
Outperforming market growth
EBITDA margin at 27% up 3pts
Retail = now 51% of sales
(*) Mid-term targets announced on March 16, 2012
Transformation, value creation, asset rotation
▲ We have been accelerating the transformation of our companies, this enables us to:
– Achieve higher contribution of companie’s net of financial costs
– Now accelerate our asset rotation
▲ Over €1bn for further investments in growth companies as per our target business segments
FY 2012 RESULTS 40
APPENDICES
Including Group companies’ detailed information
FY 2012 RESULTS 41
Contents
FY 2012 RESULTS 42
43 Financial appendices
49 Group companies’ detailed information
104 Other
Net Asset Value as of December 31, 2012
FY 2012 RESULTS 43
% held Nb shares Price NAV as of Dec. 31, 2012
with ANF at its NAV
€ €M ANF @ €31,0
Eurazeo Capital Listed 1,240.4
Rexel 17.94% 48,790,607 15.15 739.3
Accor 8.84% 20,101,821 26.12 525.1
Edenred 8.90% 20,101,821 23.43 470.9
Accor/Edenred net debt -495.0
Accor/Edenred net* (1) 20,101,821 501.1
Eurazeo Capital Non Listed 1,613.0
Eurazeo Croissance 161.2
Eurazeo PME 227.4
Eurazeo Patrimoine 291.4 355.7
ANF Immobilier 48.93% 8,675,095 23.63 205.0 269.2
Colyzeo and Colyzeo 2 (1) 86.4
Other listed assets -
Danone (pledged EB) 2.56% 16,433,370 42.60 700.0
Danone debt (EB) -700.0
Danone net -
Other assets 14.9
Cash 291.5
Non-affected debt -110.3
Tax on unrealized capital gains -54.0 -66.6
Treasury shares 3.48% 2,298,320 75.2
Total value of assets after tax 3,750.7 3,802.3
NAV per share 56.8 57.6
Number of shares 66,021,415 66,021,415
(1) Net allocated of debt (2) Accor shares held indirectly through Colyzeo funds are included on the line for these funds
Net Asset Value as of March 11, 2013
FY 2012 RESULTS 44 (1) Net allocated of debt (2) Accor shares held indirectly through Colyzeo funds are included on the line for these funds
% held Nb shares Price NAV as of Mar 11, 2013
with ANF at its NAV
€ €M ANF @ €31,0
Eurazeo Capital Listed 916.7
Rexel 12.72% 34,590,607 17.41 602.3
Accor 8.84% 20,101,821 28.28 568.4
Accor net debt -254.0
Accor net* (1) 20,101,821 314.4
Eurazeo Capital Non Listed 1,613.0
Eurazeo Croissance 161.2
Eurazeo PME 227.4
Eurazeo Patrimoine 295.6 370.9
ANF Immobilier 48.93% 8,675,095 22.36 194.0 269.2
Colyzeo and Colyzeo 2 (1) 101.7
Other listed assets -
Danone (pledged EB) 2.56% 16,433,370 42.60 700.0
Danone debt (EB) -700.0
Danone net -
Other assets 16.7
Cash 641.8
Non-affected debt
Tax on unrealized capital gains -51.8 -66.6
Treasury shares 3.47% 2,292,228 86.1
Total value of assets after tax 3,906.5 3,907.0
NAV per share 59.2 60.1
Number of shares 66,021,415 66,021,415
Reconciliation of the income statement (new presentation vs. former presentation)
FY 2012 RESULTS 45
Adjusted EBIT of fully consolidated companies 559,0 - - - 3,3 562,3 570,4 Net finance costs (507,3) - (507,3) (521,1)EBIT adjusted for net finance costs 51,6 - - - 3,3 55,0 49,2
Share of income of associates 73,7 39,0 (0,5) 112,2 124,0 Net finance costs of Accor/Edenred (LH19) (35,7) - (35,7) (35,7)Share of income of associates after net finance costs (*) 38,0 - 39,0 - (0,5) 76,5 88,3
Contribution of companies net of finance costs 89,6 - 39,0 - 2,8 131,5 137,6
Fair value gains (losses) on investment properties 41,0 - - - - 41,0 41,0 Realized capital gains or losses 36,5 - - - - 36,5 36,5 Revenue of the Holding Company business 64,1 - - - - 64,1 72,6 Finance costs, net, of the Holding Company business (53,8) - - - - (53,8) (53,8)Operating costs of the Holding Company business (41,2) - - - - (41,2) (41,2)Changes in derivatives (interest rate and equity) (1,2) 1,2 - - - - -Other income and expenses (45,6) - 45,6 - - - -Amortization of Elis commercial contracts - - - (60,3) - (60,3) (60,3)Amortization of APCOA commercial contracts - - - (7,1) - (7,1) (7,1)Amortization of Eurazeo PME commercial contracts - 0 0 (1,8) - (1,8) (3,4)Income tax expense (29,8) 4,9 - 23,8 - (1,1) (2,3)Net income before impairment, depreciationand amortization
59,5 6,2 84,7 (45,3) 2,8 107,8 119,6
Changes in derivatives (interest rate and equity) - (1,2) - - - (1,2) (1,2)Income tax on changes in derivatives - (4,9) - - - (4,9) (4,9)Impairment of APCOA goodwill (6,2) - - - - (6,2) (6,2)Impairment of Europcar goodwill (40,6) - - - - (40,6) (40,6)Impairment of Elis goodwill (33,0) - - - - (33,0) (33,0)Impairment of Fraikin (5,5) - - - - (5,5) (5,5)Impairment of Colyzeo funds (12,3) - - - - (12,3) (12,3)Share of income from operations not retained (associates) - - (22,4)Other income and expenses - - (45,6) - (3,3) (49,0) (47,2)Non-recurring items of associates - - (39,0) - (18,6) (57,6) (46,0)Amortization of Elis commercial contracts (60,3) - - 60,3 - - -Amortization of APCOA commercial contracts (7,1) - - 7,1 - - -Amortization of Eurazeo PME commercial contracts (1,8) - - 1,8 - - -Income tax expense 23,8 - - (23,8) - - -Non-recurring items (**) (142,9) (6,2) (84,7) 45,3 (21,9) (210,3) (219,4)IFRS consolidated net income (83,5) - - - (19,1) (102,5) (99,8)Attributable to owners of the company (97,5) - - - (13,2) (110,7) (111,5)Attributable to non-controlling interests 14,1 - - - (5,8) 8,2 11,7 (*) Excluding non-recurring items(**) Impairment, depreciation and amortization for the 2011 reported financial statements
2011 RestatedIn millions of euros 2011
Reported Derivatives Non-recurring
Commercial contracts Restatements 2011
Pro Forma
Eurazeo share price performance
FY 2012 RESULTS 46
▲ 2012 TSR: +43.5% vs. 20.4% for the CAC40
20
25
30
35
40
4530
/12/11
13/1/
12
27/1/
12
10/2/
12
24/2/
12
9/3/12
23/3/
12
6/4/12
20/4/
12
4/5/12
18/5/
12
1/6/12
15/6/
12
29/6/
12
13/7/
12
27/7/
12
10/8/
12
24/8/
12
7/9/12
21/9/
12
5/10/1
2
19/10
/12
2/11/1
2
16/11
/12
30/11
/12
14/12
/12
28/12
/12
11/1/
13
25/1/
13
8/2/13
22/2/
13
8/3/13
EURAZEO LPX Europe CAC
A balanced and diversified portfolio (% of NAV)
FY 2012 RESULTS 47
42%
33%
4%
6%
8% 7%
EURAZEO CAPITAL (LISTED)
CASH & OTHER
EURAZEO PATRIMOINE
EURAZEO PME
EURAZEO CROISSANCE
EURAZEO CAPITAL CAPITAL (NON LISTED)
BtoB DISTRIBUTION
REAL ESTATE
LUXURY & PERSONAL CARE
INDUSTRY
OTHERS CASH & TREASURY SHARES
SERVICES
MOBILITY & LEISURE
SERVICES: Elis, Edenred, Foncia MOBILITY & LEISURE: Accor, APCOA, Europcar, Fraikin, Léon de Bruxelles BtoB DISTRIBUTION: Rexel, Fondis REAL ESTATE: ANF Immobilier, Colyzeo LUXURY & PERSONAL CARE: Moncler, Dessange, Intercos INDUSTRY: Fonroche, 3SP Group, The Flexitallic Group, I-Pulse, Gault & Frémont, IMV Technologies
As of December 31, 2012
Breakdown of NAV and contribution of companies
FY 2012 RESULTS 48
42%
33%
4%
6%
8% 7%
EURAZEO CAPITAL (LISTED)
CASH & OTHER
EURAZEO PATRIMOINE
EURAZEO PME
EURAZEO CROISSANCE
EURAZEO CAPITAL CAPITAL (NON LISTED)
NAV In €m
CONTRIBUTION OF COMPANIES Net of finance costs
EURAZEO PATRIMOINE
EURAZEO PME
EURAZEO CROISSANCE
EURAZEO CAPITAL
73%
1%
11%
15%
As of December 31, 2012
DETAILED INFORMATION ON EURAZEO CAPITAL
FY 2012 RESULTS 49
FY 2012 RESULTS 50
8.9%
ECONOMIC INTEREST
EQUITY METHOD
▲A solid full-year 2012: Revenue = €5.6bn, +2.7% like-for-like EBIT = €526m, +3.0% like-for-like
▲ Record expansion with the opening of more than 38,000 rooms, 85% of which under management or franchise agreements
▲Ordinary dividend of €0.76 per share, up 17% compared with 2011 (subject to shareholder approval)
2012 highlights
▲ Sustained revenue growth in every segment, driven by steadily rising room rates – Group’s gross revenue up 11% to more than €11 billion – Contribution from management and franchise fees, up16.5% organic – Q4 revenue up 2.5% like-for-like (5.0% reported): slight improvement in RevPAR led by the
growth in average room rates and the strong increase in management and franchise fees – An improvement in EBIT, to €526m, upper end of the target range announced in August
2012
▲ A sound financial position backed by €1.5bn in unused and confirmed credit lines – Net debt up to €421m from €226m, after €468m in “Acquisitions & Ibis megabrand”
and €269m in dividends – The issue in June of €0,6bn in five-year, 2.875% bond, with a further €100m tranche
successfully added in September – €1,4bn reduction in adjusted net debt thanks to Asset Management (€0,6m) and sale
of Motel 6 (€0,8bn)
▲ Accor opened 38,085 rooms in 2012, 85% under management or franchise – 48% in APAC, 28% in Europe, 14% in LatAm and 10% in Africa/Middle East – As of end 2012, hotel base of more than 450kr, of which 37% in emerging markets
and 57% operated under management or franchise contracts
FY 2012 RESULTS 51
2013-2016 new ambition
▲Confirmed expansion plan of 30,000 rooms per year through organic growth, with an EBIT margin above 15%
▲ €30 million annual investment plan to consolidate the Group distribution systems
▲ Extended Asset Management plan – 800 hotels to be restructured: total negative impact of €2 billion
on the Group’s revenue, and a €2 billion reduction in Adjusted Net Debt
▲Achieving operational excellence and improving organizational efficiency – €100m cost savings plan for the 2013-2014 period – Reorganization of corporate functions around two departments:
(i) the Operations Department; (ii) the Property Management Department (managed by newly hired Gilles Bonnier)
▲A clear improvement in the Group’s economic performance by 2016-end implying a structurally strong cash-flow generation of 48%
FY 2012 RESULTS 52
Financials
▲ 2012 full-year results, in € millions
FY 2012 RESULTS 53
(€m) 2012 2011
adjusted(1) Adjusted Change
Comparable change
Revenue 5,649 5,568 +1.5% +2.7%
EBITDAR
% margin
1,788
31.7%
1,759
31.6%
+1.7%
+1.9%
EBIT
% margin
526
9.3%
515
9.3%
+2.0%
+3.0%
Net debt 421 226 +86.2%
(1) Following signature of the sales agreement with Blackstone, the consolidated income statements for the two periods presented have been adjusted for the reclassification of Motel 6’s income statement items in the loss from discontinued operations
▲ Solid growth: Revenue up 5.4% excluding renegotiated contracts
▲ Strong increase in profitability: EBITDA up 9.2%
▲Continuing improvement in liquidity: decrease in net debt compared to 2011
FY 2012 RESULTS 54
82.1%
ECONOMIC INTEREST
FULLY CONSOLIDATED
2012 highlights
▲ Solid performance with 2012 revenue up 5.4% vs. 2011, excluding renegotiated contracts(1)
– Continued growth of the existing portfolio – Strong commercial performance
▲ 2012 EBITDA of €66.3m, up 9.2% vs. 2011 on a reported basis – Strong commercial performance (+29% vs. 2011) – Successful renegotiation of a few key additional contracts
resulting in a strong uplift in margin – Continued control on costs
▲Net debt of €641m as of December 31, 2012 vs. €648m as of December 31, 2011 at constant exchange rates (-1.2%) – Strict control on capex and net working capital – Reduced interests with the end of the swap contract from July 2012
FY 2012 RESULTS 55
(1) Contracts terminated or changed into management contracts
Financials
FY 2012 RESULTS 56
(€m) 2012 2011 Reported change
Comparable change
Revenue 701 731 -4.2% -6.6%
EBITDA
% margin
66
9.5%
61
8.3%
+9.2%
7.4%
Net debt 641 643 -0.2% -1.2%
FY 2012 RESULTS 57
82.5%
ECONOMIC INTEREST
FULLY CONSOLIDATED
▲ Robust business model supporting continuous growth: +3.2% in reported revenues and +1.3% in like-for-like – Very good performance of the French activities
with about +2.6% in like-for-like sales – International activities suffering from macroeconomic environment
▲Continued acquisition policy: 5 acquisitions in France and abroad (Spain, Switzerland, Portugal) representing about €15m additional sales in pro-forma
2012 highlights
▲Good performance in France, leveraging on Elis strong leadership – Steady growth of Hotels & Restaurants activities (+3.5% like-for-like)
despite challenging conditions in Restaurants – Stability of Industry, Trade & Services with +1.2% (like-for-like) – +5.7% like-for-like in Health market supported both by several large
commercial successes and growing Dependency care activities (AD3)
▲ International activities suffering from current economic context – Decreasing sales in both Spain and Portugal, given very tough
environment – Good performance of Switzerland and particularly Germany,
with double-digit growth – Current downturn offering very attractive acquisition opportunities,
and reinforcing Elis positioning versus weakening local players
FY 2012 RESULTS 58
Financials
▲Change in linen depreciation schedule – From 2 to 3 years, with a €40.2m impact on 2012 figures
FY 2012 RESULTS 59
(€m) 2012 2011 Reported change
Comparable change
Revenue 1,185 1,149 3.2% 1.3%
EBITDA
% margin
377
31.8%
371
32.3%
1.4%
0.1%
EBIT
% margin
225
19.0%
193
16.8%
16.7%
Net debt 1,948 1,934 0.7%
▲ Resilience of Europcar’s volumes thanks to InterRent launch and commercial effort in tough competitive and economic environment resulting in limited decrease in revenues by -3.1% at constant exchange rates and perimeter
▲ Stable Adj. EBIT and Adj. Corp. EBITDA margins, protected from decrease in revenues by many actions including the deployment of FastLane 2014 and by effects of the refinancing operations
▲New management team and reorganization of the group to enable future growth and profitability improvement
FY 2012 RESULTS 60
85.4%
ECONOMIC INTEREST
FULLY CONSOLIDATED
2012 highlights
FY 2012 RESULTS 61
▲ Resilience of revenues in current tough market environment – Revenues down by 3.1% vs. 2011at constant exchange rate and perimeter
• Decrease in volumes (rental days down by 1.2% vs. 2011) mainly due to the exit from non-profitable contracts in Italy and to B2B segment slow down but offset by resilient Leisure demand
• RPD down by 2.6% impacted by the effect of the InterRent lower pricing and by strong pressure in the tough competitive environment
▲ Adj. EBIT margin remained stable with revenue decrease thanks to tight control of the operating costs – Improvement of the fleet utilization rate by +40bps (74.4% in 2012 vs. 74.0% in 2011) – Fleet holding cost per unit down by -3.4% over the period
▲ Adj. Corporate EBITDA margin stable despite lower revenues thanks to strong focus in costs structure and refinancing operations – Pro forma full-year impact of the refinancing, 2012A Adj. Corp. EBITDA stands
at €122.6m i.e. 2012PF Adj. Corp. EBITDA at 6.3%
▲ Cash-Flow generation – Corporate Net Debt at €568m at December 2012 and Corporate leverage at 4.6x – Continuous optimization of non fleet working capital
Europcar’s performance: building on solid foundations
FY 2012 RESULTS 62
€50m FASTLANE 2014 PROGRAM – Launching of the Fastlane 2014 program to improve Adj. Corporate EBITDA by at least €50m by 2014 Impact by end 2014
€18m ▲TOP LINE INITIATIVES €32m
▲COST INITIATIVES
– New group Revenue and Capacity Management group created, enhancing revenue quality and margins
– Commercial optimization and focus on Corporate Key Accounts
– New website launch and refining of e-commerce strategy
– Restructuring costs both at headquarters level and in the network
– Fleet costs renegociated and going down
– Insurance claims processes redesign
NEW ORGANIZATION IMPLEMENTED February 2012:
– Jean-Charles Pauze, new President
– Roland Keppler, CEO
– Caroline Parot, CFO
End 2012: – New organization completed
with senior profiles with strong background at the Executive Board:
PRODUCT OFFERING DEPLOYMENT – European launch of new InterRent concept on
March 19 after good adoption in Spain and Portugal • Extension in France, UK and Germany
– First international franchisee conference on March 4 in Berlin:
• 67 countries represented • Appetite for reinforced cross-border strategy and InteRent launch
• Marcus Bernhardt as Chief Commercial Officer from the Hotel and Airline industry
• Jacques Brun as Chief Transformation Officer coming from car rental industry
• Involvement of the Country Managers in specific transversal workshop
Financials
FY 2012 RESULTS 63
(€m) 2012 2011 reported
Reported change
Comparable change
Revenue 1,936 1,969 -1.7% -3.1%
Adj. Corp. EBITDA
% margin
119
6.1%
120(2)
6.1%
-0.9%
n/a
Adj. EBIT
% margin
227
11.7%
235
11.9%
-3.1%
-3.9%
Corp. Net debt 568 602(1) -5.6% n/a
(1) Restated from VAT refund received late 2011 from UK tax authorities paid early 2012 to final beneficiaries (2) Proforma of swap refinancing performed late 2011
FY 2012 RESULTS 64
12.7%*
ECONOMIC INTEREST
EQUITY METHOD
▲ Full-year results in line with targets
▲ Sustained M&A activity
▲ Launch of Energy in Motion plan
▲A dividend of €0.75 per share, payable in cash or shares, subject to approval at the Annual Meeting on May, 22
(*) 18.1% as of December 31, 2012
2012: a significant step forward for Rexel
▲ Full-year results in line with targets – Improved profitability – Strong free cash-flow generation
▲ Sustained M&A activity – Strengthened market share in the US through 2 strategic acquisitions – Tactical acquisitions in Europe and broader footprint in Latin America
▲ Launch of Energy in Motion plan – Focus on promising segments: Energy efficiency, International
customers and projects, Vertical markets – Enhanced operational excellence and active resources management
FY 2012 RESULTS 65
Solid performance in 2012, in line with targets
FY 2012 RESULTS 66
Reported sales up 5.8% to €13.4bn
Full-year results in line with targets
Driven by sustained M&A activity
• 12 acquisitions in 2012, representing c. €830m of sales on an annualized basis
• Contribution to reported sales in 2012 amounted to €544m, representing 4.3 percentage points out of the 5.8% growth
In a challenging environment
Sales % of Group Sales
Europe -3,3% 56% Asia-Pacific -5.5% 10% North America +1.8% 32% Latin America +3.7% 2%
• Sales on a constant and same-day basis: -1.8%
Improved profitability
• Reported EBITA up 6.2% to €767m • Adj. EBITA1 margin up 10bps to 5.7%
- increased gross margin (+20bps) - tight cost control (-10 bps)
Strong free cash-flow generation
• FCF before int. & tax of €627m, up 4.4% vs. FY 2011
• Temporary rise in Net-debt-to-EBITDA ratio to 2.95x at Dec. 31, 2012 due to M&A outflow of c. €620m
Financials
FY 2012 RESULTS 67
(€m) 2012 2011 Reported change
Comparable change
Revenue 13,449 12,717 +5.8% -1.8%
EBITDA
% margin
767
5.7%
720
5.7%
+6.2%
-0.3%
Net debt 2,599 2,078 +25.1%
FY 2012 RESULTS 68
33.8%
ECONOMIC INTEREST
EQUITY METHOD
▲ Good resilience of the Joint-Property Management and Lease Management but declining Renting and Brokerage markets environment: Revenue down by 4.7% at constant exchange rate and perimeter mainly due to lower volumes in both Renting and Brokerage businesses
▲ EBITDA up 3.6% and margin improvement of 140bps thanks to tight cost management at both Headquarter and Network levels
▲ Strong deleverage over the year from 4.3x to 3.8x Net Debt / EBITDA ▲ Reinforcement of the top management team with the hiring of François Davy
as CEO and Line Vissot-Weill as Chief Marketing and Operations officer
2012 highlights
FY 2012 RESULTS 69
(€m) 2012A 2011A % var.
RRES France(1) 401.7 407.8 -1.5%
Brokerage 68.0 88.9 -23.5%
Total France 469.8 496.6 -5.4%
International 48.6 49.8 -2.4%
Other and Interco 47,0 48.7 -3.5%
Total 565.4 595.1 -5.0%
Real Estate Services France
Recurring revenue: 88%
Brokerage
Other and interco
71%
12%
87% 9%
International
▲ Decrease of revenues by -5.0% – Resilience of the RRES France(1) thanks
to Lease Management and Joint-Property Management activities and slight decrease of Renting business due to lower mobility rate
– Decrease in the Brokerage business reflecting a strong market decline
▲ Increase in EBITDA by +3.6% – EBITDA Margin improved by +140bps vs.
2011A – Strong focus on costs both at headquarter
and at network levels
▲ Strong deleveraging with net debt at €347m at December 2012 – Net Debt / EBITDA at 3.8x vs. 4.3x
as of December 2011
(1) RRES France: Residential Real Estate Services France including Joint-Property Management and Lease Management businesses
Financials
FY 2012 RESULTS 70
(€m) 2012 2011
Reported Reported change
Comparable change
Revenue 565 595 -5.0% -4.7%
EBITDA
% margin
90
16.0%
87
14.6%
+3.6%
+2.8%
Net debt 347 378 -8.3% -8.3%
FY 2012 RESULTS 71
31.2%
ECONOMIC INTEREST
EQUITY METHOD
▲ Full-year 2012 Net sales = €630m(1) at Group level
▲ Moncler brand sales reached €489m, up 35% compared to 2011
▲ Exceptional growth in Japan (+44%), China (+136%), and the US (65%)
▲ EBITDA margin up 3pts at 27% of sales
▲ Italian exposure much reduced already beyond mid term target (< 1/3)
(1) Including other revenues
Strong International Growth
FY 2012 RESULTS 72
G E O G RA PH I C S A L E S M I X E VO L UT I O N
6%
43%
34%
17%
Rest of Europe
America and RoW
Italy €284m
Asia/Japan
2010
8%
34%
33%
25%
€364m
2011
10%
26%
32%
32%
Rest of Europe
Italy
€489m
Asia/Japan
2012
America and RoW
+35% sales growth for Moncler (vs +28% last year) exceptional growth in Japan (+44%), China (+136%) and the US (+65%)
= More than x3 sales in Japan and China from 2010
Italian exposure much reduced: already beyond mid term target (i.e. less than one third )
FY SALES:
Retail already represents 51% of sales
FY 2012 RESULTS 73
75%
25% Retail
€284m
62%
38%
€364m
49%
51% Retail
€489m
2010 2011 2012 FY SALES:
S A L E S M I X E VO L UT I O N B Y C H A N N E L
2012: 22 stores openings 82% growth of retail business
Wholesale Wholesale
Rebalancing already beyond mid term target
Focus on retail: Asia is now the first geography
FY 2012 RESULTS 74
G E O G RA PH I C S A L E S M I X E VO L UT I O N O F T H E R E T A I L C H A N N E L
9% 19%
31%
41%
Rest of Europe
America and RoW
Italy
€138m Asia/Japan
2011
10% 15%
29% 47%
Rest of Europe
America and RoW
Italy
Asia/Japan
2012
€251m
FY RETAIL SALES
+ 82% in retail sales in 2012 (same growth rate as in 2011)
Strong L-f-L(1) growth : +18%(2) vs 12% last year
Strong performance of Asia (from 28% of retail sales in 2010 to 47%) & in the US
(1) “Like-for-Like” definition: perimeter including only those stores already opened as of January 1 of previous year (2) Reported L-f-L growth
Pursuing expansion of retail network
FY 2012 RESULTS 75
RETAIL NETWORK AS OF DECEMBER 2012: 83 STORES (vs 55 at June 2011)
31
9
ASIA
46
11
EUROPE
6
NORTH AMERICA
2
RETAIL STORES
22 openings both in 2011 & 2012
To date:
2012 openings:
New product exploration: co-branding experiences marketing initiatives
FY 2012 RESULTS 76
The multi-wheel cabin trolley
RIMOWA & MONCLER
Limited collection backpack
SEIL MARSCHAL & MONCLER
Eyeglasses
MYKITA & MONCLER
New projects building the future of Moncler
FY 2012 RESULTS 77
Eyewear
Further diversification upsides
• Launch of a limited edition cobranded with Mykita
• Presentation at Milan’s Mido (eyewear fair) of the new collaboration with the italian producer and distributor Allison
• JV controlled by Moncler (51/49)
2013 2012
Financials
▲ 2012 full-year results, in € millions
FY 2012 RESULTS 78
(€m) 2012 2011 Change
Net sales 630 516 +22%
Moncler 489 364 +35%
Sportswear 135 150 -10%
Other 6 3 +100%
EBITDA 170 123 +38.6%
Marge 27% 24%
FY 2012 RESULTS 79
FY 2012 RESULTS 80
13.2%
ECONOMIC INTEREST
EQUITY METHOD
▲ Long Term rental activity slight decrease versus 2011
▲ Profitability margin maintained
▲ Refinancing of the French, UK and Spanish fleets
2012 highlights
▲ Sales decrease versus 2011 limited to 2% – Of which long term contract hire sales decrease by -1.4% versus 2011
– The Company has launched several commercial initiatives to support growth in the short and medium term
▲ Profitability margin maintained – Decrease in EBITA Rental margin rate mainly from maintenance
and repair costs given the aging of the fleet
– Counterbalanced by a further increase in capital gains on re-sale of trucks
▲ Successful Refinancing – New pan-European Securitization program secured for a maximum
of € 1,011m with a 5-year maturity for the French, UK and Spanish fleets
– Overall reduction of the yearly interest cost of the Group
FY 2012 RESULTS 81
Financials
FY 2012 RESULTS 82
(€m) 2012 2011 Reported
Revenue 671 684 -2.0%
EBITA
% margin
113
16.9%
116
16.9%
-2.2%
Capital Gains 7 5 +49.3%
EBITA Rental
% margin
106
15.8%
111
16.2%
-4.3%
FY 2012 RESULTS 83
33.6%
ECONOMIC INTEREST
EQUITY METHOD
▲ Sales up 13.4% to €307.1m mainly thanks to Europe and Asia
▲ EBITDA up to €45m, historical highest level
▲Roll-out of SAP in the US and strengthening of finance and controlling team
2012 highlights
▲ American business slow-down in 2012 (-2% yoy) – Affected by a couple of extraordinary events:
• shut down of operations caused by storm Sandy at the end of October, followed by a slow restart in November
• Roll-out os SAP in H1
▲ EBITDA margin increased by 0.5pt up to 14.7% – Such improvement compared to last year due to a better fixed costs
▲ Net debt reduction by €16.6m compared to December last year – Improved credit collection, especially in Europe
(current South-European crisis shows no negative effects) and Asia – Capex under control: €16.5m, compared to €19.2m last year – Strengthened finance team launched a new project aiming to increase
the cash flow generation and further better working management
▲ Some administrative delays postponed the opening of the new Brazilian plant, now expected for mid 2013
FY 2012 RESULTS 84
Financials
▲ 2012 full-year results, in € millions (1)
FY 2012 RESULTS 85
(€m) 2012 2011 Change
Net sales 307 272 +13.4%
EBITDA 45 39 +16.8%
Net debt 196 213 -7.8%
(1) Pre-Closing numbers
FY 2012 RESULTS 86
19.3%
ECONOMIC INTEREST
▲ Full-year 2012: Operating results = €29m, +20% compared with 2011 – Strong performance explained by Finance & Treasury division (trading)
and Private Banking – At the end of 2012, assets under management reached about €6 billion
(+21%)
▲Dividend policy €0.12/share (historically between €0.08 and €0.1/share, excluding exceptional dividends and capital reimbursements)
2012 highlights
▲ Solid performance driven by Private Banking and Proprietary Trading – Net revenues of about €147m, in line with 2011 figures, based on a like-for-like
consolidation area – Consolidated operating income of about €29m (about +20%) – Consolidated net profit, including extraordinary items, amounted approximately to €32m
▲ The Wealth Management Division showed sharp growth – Increase in assets under management of over €1bn. At the end of 2012, AuM reached
about €6bn (+21%), of which 87% in Italy – Banca Leonardo is the first independent bank in Italy
▲ The Financial Advisory Division continued to reinforce its competitive positioning at European level – Opening of a new office in Stockholm – Positive performance of the mid-cap sector and growth of the restructuring business
did not offset the decline of the M&A market in Continental Europe
▲ Consolidated equity, net of the €34m planned distribution, was €326m (€336m in 2011, net of distribution) – Core Tier 1 Ratio was approximately 25%, in line with the previous year
FY 2012 RESULTS 87
Financials
FY 2012 RESULTS 88
(€m) 2012 2011 Change
Total net revenue 147 155 -5%
Group net profit 32 71 -55%
Total customer financial assets 5,987 4,951 +21%
Equity, net of distribution 326 336 -3%
DETAILED INFORMATION ON EURAZEO PME
FY 2012 RESULTS 89
Portfolio
FY 2012 RESULTS 90
H I G H L I G H T S
▲ Sale of Mors Smitt for an amount of €22 million, i.e. 41% higher than the NAV applied in the last valuation of portfolio at 31 Dec. 2011. Multiple of 3.5 times the initial investment for an IRR of 27% over a period of 6 years.
▲ Acquisition of Fantastic Sams by the Group Dessange - A leading hair salon franchise network in the
United States with 1,215 salons in Jan. 2012. - Present in 45 countries under the DESSANGE Paris
and Camille Albane brands, the acquisition of Fantastic Sams doubles DESSANGE International’s franchise network.
DESSANGE International now has over 2,000 salons, of which 1,500 are located outside of France.
▲ Acquisitions by The Flexitallic Group (ex FDS Group): - In Jan. 2012 of AGS Group, Inc., a leading
supplier of gaskets, fasteners, pipe supports and instrumentation to the Canadian market.
- In Dec. 2012 of Custom Rubber Products in Houston, Texas
The group has become a global leader in static sealing technology across all segments of the energy industry
As of December
31, 2012
Solid growth across the portfolio
FY 2012 RESULTS 91
73,8
61,1
119,0
172,9
426,8
96,5
53,5
117,7
93,6
361,3
− Opening of 7 restaurants in 2011 and 2 in 2012 (incl. 1 in London in franchise). On a comparable basis, sales incl VAT decreased by 2,3% (like the market).
+14%
+1%
-23%
Change
+85%
− Sale of Mors Smitt mid-June 2012
− Acquisition of Fantastic Sams in January, one of the leading hair franchisors in the USA (1,215 franchises). Decrease of 4% in a l.f.l. basis. New #2 appointed in June.
− Acquisition of AGS (leading supplier of gaskets, fasteners, pipe supports and instrumentation on the Canadian market). On a l.f.l. basis, increase of 21% driven by the strong activity in maintenance programs in France and in USA and additional market shares notably in USA. No impact of Custom Rubber (acquisition end of Dec)
Revenues* (€m)
2011 2012
Other
Group revenues +18%
+5%
+1%
+3%
+21%
+27%
Change in l.f.l. basis **
72,0 50,0
Portfolio* EBITDA (€m)
+29% +45%
(Gault & Frémont, Mors Smitt, Fondis)
− Portfolio EBITDA average margin: 17.6% − Increase on a l.f.l. basis due to sales performance, positive evolution of
product mix, synergies on acquisitions/creations
(*) Majority Investments as of Dec. 31, 2012 (**) Adjusted for Mors Smitt sale at the Group level, with build ups at the Investments level
Financials*
FY 2012 RESULTS 92
(€m) 2012 2011 Reported change
Like-for-like change
Revenue 407 317 + 18% + 29%
EBITDA
% margin
72
17.6%
50
15.8%
+ 29%
+ 45%
Net debt
Portfolio leverage
284
3.0x
231
3.4x
(*) Majority Investments as of Dec. 31, 2012
Solid growth across the portfolio
FY 2012 RESULTS 93
73,8
61,1
119,0
172,9
426,8
96,5
53,5
117,7
93,6
361,3
− Opening of 7 restaurants in 2011 and 2 in 2012 (incl. 1 in London in franchise). On a comparable basis, sales incl VAT decreased by 2,3% (like the market).
+14%
+1%
-23%
Change
+85%
− Sale of Mors Smitt mid-June 2012
− Acquisition of Fantastic Sams in January, one of the leading hair franchisors in the USA (1,215 franchises). Decrease of 4% in a l.f.l. basis. New #2 appointed in June.
− Acquisition of AGS (leading supplier of gaskets, fasteners, pipe supports and instrumentation on the Canadian market). On a l.f.l. basis, increase of 21% driven by the strong activity in maintenance programs in France and in USA and additional market shares notably in USA. No impact of Custom Rubber (acquisition end of Dec)
Revenues* (€m)
2011 2012
Other
Group revenues +18%
+5%
+1%
+3%
+21%
+27%
Change in l.f.l. basis **
74,8 57,5
Portfolio* EBITDA (€m)
+30% +42%
(Gault & Frémont, Mors Smitt, Fondis)
− Portfolio EBITDA average margin: 17.6% − Increase on a l.f.l. basis due to sales performance, positive evolution of
product mix, synergies on acquisitions/creations
(*) Majority Investments only (**) Adjusted for Mors Smitt sale at the Group level, with build ups at the Investments level
Financials
FY 2012 RESULTS 94
(€m) 2012 2011 Reported change
Like-for-like change
Revenue 426.8 361.3 + 18% + 27%
EBITDA
% margin
70,0
16.4%
54.1
14.9%
+ 30%
+ 42%
Net debt
Portfolio leverage
283.5
3.0x
230,6
3.4x
DETAILED INFORMATION ON EURAZEO CROISSANCE
FY 2012 RESULTS 95
Portfolio
FY 2012 RESULTS 96
H I G H L I G H T S
▲ Investment in l-PuIse, a high tech company developing and commercializing high power electronics solutions that have multi-sector and cross-industry applicability
▲ Promising results, notably in the Oil&Gas (Blue Spark) and manufacturing (B-Max) segments
▲ Acceleration of Fonroche’s international expansion - Construction of a photovoltaic power plant
in India for 22 MWc
- Ongoing development for more than 150 MWc in Puerto Rico and 24 MWc in Kazakhstan
▲ First step towards a multi-energy model - Developments initiated in the biogas
and geothermal energy sectors
▲ Strong growth of 3SP Group’s terrestrial activities - Manlight (design of sub-systems) doubled
its revenue compared to 2011
- Discussions initialed with several partners to increase production capacities for terrestrial components
▲ Submarine production capacity restored - Relocation of the production line in France
following the flood in Thailand
Invested amount as of December 31,
2012
NAV as of December 31, 2012: €161.2m
Fonroche
l-PuIse
3SP Group
Sustained development visible in Q4
FY 2012 RESULTS 97
84,6
Revenues (€m)
2011
(*) Economic revenues: 100% of 3SP Group’s consolidated revenues and 39.3% of Fonroche’s consolidated revenues
98,0
46,1 54,2
2012
*
▲ Accelerating development in France and abroad. Sale of several plants in Q4
▲ Decrease in full year revenues due to the progressive switch towards a proprietary development model (intra-group flows cancelled)
▲ Full year revenues affected by the temporary stoppage of the submarine production line of a subcontractor following the flood in Thailand
▲ Strong rally at the end of the year mainly due to the terrestrial telecom and industrial segments
37,1 18,8
55,7 23,7
15,2 9,5
Full Year Q4
104.1
127.1
Financials*
FY 2012 RESULTS 98
(€m) 2012 2011 Reported change
Revenue 84.6 104.1 (19%)
EBITDA
% margin
9.5
11.2%
13.5
13.0%
(30%)
* Economic financials: 100% of 3SP Group’s consolidated financials and 39.3% of Fonroche’s consolidated financials
DETAILED INFORMATION ON EURAZEO PATRIMOINE
FY 2012 RESULTS 99
2012 Significant Return to Shareholders
FY 2012 RESULTS 100
Includes 85% on fiscal result & 50% on capital gain ANF’ SIIC Requirements = €96.0m
Exceptional Distribution Disposals
Regular Distribution
▲ €495m paid in late 2012 = €17.9/share – €6.64 /share in cash - includes €3.58/share (€98.3m)
as interim dividend – €312 m with a buyback public offer
▲ Buyback offers at NAV – 36% of shares cancelled
▲ Proposed Dividend per share= €1.0 – Yield 4.6%*
€17.9/share paid in Nov-Dec 2012 €1.0/share to be paid in May 2013 Total return to shareholder
(*) Based on average share price at 19/03/2013
2012 Key Figures
FY 2012 RESULTS 101
40%
24%
22%
9% 5%
Retail
Residential
Offices
Hotels Others
2012 Pro Forma
Rent Beakdown
m€ 2012
actual 2012
Pro Forma
Rents 71.5 30.6
EBITDA 56.3 18.3
Cash Flow 40.4 12.4
▲ 2012 Rents = €71.5m – 2012 Pro Forma Rents = €30.6m – EBITDA= €56.3m (79% margin) – Recurring cash-flow = €40.4m
▲ Half of portfolio disposed – Mature assets sold for €788.2m – Debt reimbursed for €253m – €496.8m distributed to shareholders
▲ EPRA Triple Net NAV = €30.5/share – 2012 PF Cash Flow= €12.4m
▲ Significant progress into Marseille retail re-letting – Success with Rue de la République – Seg 3:
McDonalds, Monoprix, Casino, Picard
2017 strategy
FY 2012 RESULTS 102
2017 Rents Guidance Portfolio rebalancing
2013–2017 flows
Follow-on assets rotation Marseille €238m disposals
Follow-on identified developments
Marseille Lyon
€170m investments
Acquisitions in top France cities outside Paris
Bordeaux Lyon Marseille
Possible investments up to €240m
30,6
66,8
14,9
21,3
2012PF ExistingHaussmann
Developments Acquisitions 2017
0
▲ANF among the less indebted French listed real estate companies – LTV Ratio= 33% - Cost of Debt= 4.09% – Large room for more debt and balanced position to negotiate
▲ Possible leverage increase: LTV target at 40-45% – Growth financing – Limited use of debt
▲ Initial debt maturing in June 2014 = €250m – €25m already reimbursed in January 2012 – Negotiations launched with banks – Study for source of debt diversification
80%
15%
5%
Marseille
Lyon
58% 26%
16%
Marseille Lyon
Bordeaux
19%
26% 31%
9%
3% 12% Offices
Retail Residential
Hotels properties
Car parks Projects
51%
32%
17% Offices
Retail & hotels properties
Residential
As of 12/31/12 In 2017
In 2017 As of 12/31/12
B&B
Financing
Financials
FY 2012 RESULTS 103
IFRS (€m) FY 2012 2011 ProForma Change FY 2011 FY 2010
Gross Rental Income 71.47 69.98 2.1% 83.58 69.13
EBITDA 56.26 56.08 0.3% 69.56 56.55
% margin 78.7% 80.1% 0.2 83% 82%
Recurring EBITDA 56.26 56.08 0.3% 61.73 56.55
% margin 78.7% 80.1% 0.0 81.5% 81.8%
Cash Flow 40.43 39.29 2.9% 51.77 38.91
Recurring cash flow 40.43 39.29 2.9% 43.94 38.91
RCF per share 1.47 1.60 1.43
In €m 31/12/2012 Reported
31/12/2011 Reported
31/12/2010 Reported
Real Estate portfolio 884 1,650 1,573
Net Debt 292 482 460
NAV per share(1) 31.7 42.2 40.3
Triple Net NAV(1) 30.7 40.8 39.0
LTV 33.0% 29.2% 29.2%
OTHER
FY 2012 RESULTS 104
SHAREHOLDING STRUCTURE as of December 31, 2012
A long-term shareholder base and a strong corporate governance
FY 2012 RESULTS 105
- Separation of the roles of Chairman and CEO
- Independence of the Supervisory Board: 7 independent members out of 12
- Audit Committee, Finance Committee, Compensation and Appointments Committee
- Existence of a shareholder agreement between founding families (former SCHP)
(1) Including 3.48% of treasury shares (2) Concert as of December 31, 2012
Crédit Agricole 18.01%
Sofina 5.73% 8.82%
22.60%
Founding Families(2)
20.29%
x.x% = voting rights
23.68%
Orpheo 6.54%
5.09%
A strong corporate Governance
Free float(1) 49.43%
Financial Agenda
FY 2012 RESULTS 106
- ANF Investor Day (Marseille) April 18 - 1st Quarter Revenues May 6 - Annual Shareholders’ Meeting May 7 - 1st Half Revenues & Results August 28 - 3 rd Quarter Revenues November 7
About us
FY 2012 RESULTS 107
Eurazeo contacts Investor Relations
Caroline Cohen • [email protected] + 33 (0)1 44 15 16 76
Corporate & Financial Communication Sandra Cadiou
• [email protected] + 33 (0)1 44 15 80 26
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Research on Eurazeo
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