Eurazeo Paris Ord

Take your seats. I'll leave a few more minutes. A tout le monde pour s'installer. Et si on est prêt, nous allons démarrer. Bonjour à toutes et à tous. Merci pour votre présence ce matin pour la présentation des résultats du groupe Eurasio pour 2019. Je suis accompagnée de Philippe Audouin, directeur général finance du groupe, pour commenter ces résultats. Dans le contexte particulier, incertain et volatile que nous connaissons, 2019 confirme la très grande solidité du groupe Eurasio. A group that we have risked for many years by diversifying it in business, in sector, in resources, in income and in geography. A group that is ready to face uncertainties and also to seize the opportunities that would emerge. A healthy and resilient group capable of supporting and playing its role of stabilizer. Je vais m'attacher ce matin à vous présenter les résultats du groupe dans le contexte de la situation d'aujourd'hui au plus juste de notre connaissance. Dans ce contexte où les entreprises n'ont jamais eu autant besoin de stabilité et de valeur ajoutée, le modèle d'Eurasio est plus que jamais pertinent. Nous sommes dans les meilleures conditions possibles pour faire face à l'année 2020. Two main messages on the performance of the Eurasia Group for 2019. First, the performance. The performance of our companies. The portfolio created 800 million euros of value, which is 14.5% growth over the year, even close to 20% growth of our portfolio if we exclude the listed companies. Over the period, the group's net asset value has increased by 10%, including dividends. It is also the performance of asset management that marks the year 2019, a record year of fundraising to reach 2.4 billion euros, with a growth of 53% over the year. This also results in a growth in our management fees, which on the period of 2019 are growing by 16%, but which do not yet reflect the benefit and the positive impact of raising funds in 2019, which will increase our management fees in 2020. Le groupe est donc en croissance. Nos actifs sous gestion, nos AUM, atteignent près de 19 milliards d'euros à la fin de l'année 2019. Ils ont triplé en trois ans pour atteindre ce montant. Et sur l'année, c'est une croissance de 16%. The second message is that of solidity. Eurasio has been endowed over the past years with all the means to face an uncertain context. First, a cash position in increase compared to the previous year, without structural debt at the level of society. Then the renewal, in anticipation and in increase, of nearly 50% of our union credit, which is 1.5 billion euros, and this for several years. And finally, an available investment capacity, what we call in English the dry powder, of 4 billion euros, on all of our investment divisions. Performance et solidité durable, voilà ce qui nous rend confiants. Nous avons souhaité matérialiser cette confiance en proposant à la prochaine Assemblée Générale une augmentation du dividende par action à 1,50€, soit une hausse de 20% sur l'année. So let's go back to the 2019 performance. Our objectives have been achieved. First, to invest well and to help each other to ensure a good rotation of our assets, to obtain tangible results on the management activity for two-thirds accounts and to continue our development internationally. I will illustrate each of these points in the course of my presentation. These strategic axes are at the service of a single and unique ambition, which is to be the reference actor in Europe supported by a global network. We have now built a platform in complete order of steps. First, a diversified platform with expert teams that are deployed in four classes of assets. Then an integrated platform with, for each of our investment divisions, the benefit of the financial support, of course, but above all human, of the entire group. And then a global platform with the relay of 10 offices abroad to help our portfolio companies to develop. You see here our multispecialist model and the relative weight of each of our four classes of assets. Two things that I would like you to remember this morning. First, 65% of our assets under management, including the vast majority of the Raseo balance sheet, are now directly invested in private equity and real assets. Ce sont des métiers à très forte valeur ajoutée qui génèrent le plus de rendement et des commissions de gestion de l'ordre de 2% sur longue période. Notre modèle s'appuie sur un socle qui est à la fois le plus rentable, le plus rémunérateur et le plus prévisible sur longue période. At the same time, we believe in the strong potential of the development of our asset management activity, especially towards private debt and private fund businesses, which are growing rapidly, especially in Europe. We are not mistaken. We are not mistaken because we have been showing for decades the performance and a solid reputation that the partner investors trust us and entrust us their resources to deploy them in the rich deal flow which is that of Raseo. This model is at the same time very differentiating on the market. It is also the guarantor of the solidity of the group. It allows us d'être moins risqué avec des sources de revenus diversifiées et moins de volatilité des résultats. Il nous permet de conserver grâce au bilan la maîtrise du temps long, de garantir au groupe des revenus récurrents et prévisibles. C'est bien ce modèle qui nous a permis de bâtir une offre d'investissement très diversifiée, en métier, en secteur et en géographie. Et c'est bien cette offre qui, elle aussi, nous dérisque. In the course of 2019, we have continued the internationalization of the Group. The three major objectives of a more global presence are the following. First, a capacity to accompany all of our portfolio companies. Take the example of the partnership with CIC, a magnificent recognition of the space that we have managed to build in China for 8 years and an acceleration lever for our portfolio companies in one of the first world markets. Second reason for international development, the ability to generate a better deal flow. Thanks to the constitution of local business networks. Take the example of the American office which exceeded the billion dollars invested in the United States in only 3 years. and finally a capacity to be as close as possible to our clients, as close as possible to our private investors. The opening of the office in Seoul was decided in order to be in direct contact with the great investors of this market, which are increasingly turning towards Europe. So I said it, the heart of our job is first of all to invest well, de bien transformer et de bien céder. Et 2019 a été une année riche sur ce plan. Elle a trois caractéristiques principales. D'abord, une dynamique d'investissement très soutenue. C'est 3,8 milliards d'euros qui ont été déployés sur l'ensemble du périmètre. Le private equity représente plus de la moitié de nos acquisitions, avec plus de 2 milliards investis en 2019. Second characteristic, this wallet is at the same time more diversified. In the activity sector, it is more international. You will notice that most of our acquisitions have been made outside of France. I take the example of Dork or Delemica. While many of our significant exits concerned French companies like Neovia, Smile, Elis or Léon de Bruxelles. Finally, following the release of Montclair and Délice, Eurasio has a portfolio that is composed of almost all non-quoted assets. This supported investment activity goes hand in hand with a very large discipline. We are more active because we are more diversified, but we are also much more selective. We have a team specifically dedicated to originating to cover and identify the best opportunities both in the United States and in Europe. And you see the benefit of this team with a very sensitive increase over the last two years, especially in 2019, of the investment opportunities that we have looked at, what we call the deal flow, which was an increase of 30% over the year 2019. But at the same time, the rate of transformation has decreased. The teaching that you must learn is that we are very disciplined, not only on the valuations or on the levels of leverage, but also on the multiples that we want to value the companies. So we are showing increased selectivity. We also invest in carrier sectors, as evidenced by our recent acquisitions, health with DORC, or software with Elemica, which are two of the latest investments made by Eurasio Capital. We mainly target extremely precise profiles, solid, experienced and resilient business models. underlying markets in sustained growth, a capacity for Eurasio to provide an additional acceleration and transformation lever, and you will also note that the technological companies in which we have invested through Eurasio Growth, I am thinking for example of Doctolib or ManoMano, also respond to these characteristics of solidity and resilience. This discipline, we also activate it at the time of the materialization of the value created during our exits. Discipline to anticipate the best moments of market, to yield our assets, but also discipline and caution on the valuation of assets in our net asset re-evaluated until the moment of exit. We always prefer to overperform than to overpromise. The second pillar of the activity of Raseo and of our performance in 2019, the activity of management for third-party accounts with a strong momentum and a very beautiful year 2019. First, record in terms of fundraising, plus 50% compared to the year 2018. These are two big engines that have been at the maneuver in 2019. First, private debt. which has more than doubled its rise to more than 1 billion 100 million euros and the private equity with 1 billion of collection thanks in particular to the closing of Raseo Capital 4 for 700 million euros and Didinvest Venture Beyond these figures, I would like to underline the quality of these fundraising Our managed assets benefit from subscriptions in closed funds, as you know, stable, with firm commitments over a long period, and therefore the assurance of long-term foreseeable income that we estimate, especially on the private equity, around 6 to 7 years. These are also management fees negotiated by our teams at the best market conditions, which on average, on the whole of our perimeter, goes up to 1.5%. This dynamic is explained by many factors, but two that I want to highlight this morning in particular, performance, of course, and the quality of our sales team. On this last point, we now have a fundraising team of about 25 people, organized by geography in a logic of transversality on our asset classes, which allows us to address the demand of all of our customers. This team, as you can see, has built a very large and diverse base of investors in time. Insurance companies, pension funds, sovereign funds, but also individual and family investors. And none of these classes or these profiles of investors have yet reached the optimum in terms of allocation of their own heritage. to the activity of private equity or alternative asset management. So we see a huge potential. The second important potential to keep in mind, we are today on our base of assets, mainly French. On the 12.5 billion that were entrusted to us by external partners, The two-thirds of these 12.5 billion are French investors. We still see a strong potential for development, but of course the international represents a significant transformation lever for Eurasio. Already in 2019, the results show it, on the 2.4 billion euros that have been raised, 55% of these fund raises come from foreign investors. The second big factor of success, obviously, is performance. Second big factor, long-term track record is obviously proven. The great homogeneity of performance over the very long term. More than 60% of our releases were made with a cash-on-cash that was understood between 1.5 and 3 times the initial investment. And stable and experienced investment teams with an average age of more than 12 years. This dynamic of fundraising, you see, is also the growth of our balance sheet, but it has progressed very sensitively by investments for the account of third-party investors. It is plus 20% increase on the part of asset management for third-party accounts. Eurasio is a larger group, larger in capacity, in resource capacity, in capacity to attract talent and of course to seize the opportunities that are presented. Among the big objectives of the year 2020, there is obviously the continuation of this dynamic. No less than a dozen funds will be on the road during the next 18 months. It is obvious that in the health situation and the great uncertainty of the moment, this leads us to anticipate a temporary slowdown in the activity of fundraising in the year 2020. Temporary only. Among these perspectives to raise, I want to talk to you about one in particular, which is very well started, which is that of Eurasio Growth. You know, our ambition is to give birth to the European actor of reference in the support of technology companies. The moment is absolutely key for the growth equity market in Europe. First, a number of unicorns multiplied by 8 in 5 years in Europe, so a greater need for support, record tables, more and more large in size, and then the need to inject, this is what you see on the right here of the transparent, the need to inject in this market European capitals, Face aux grands acteurs américains, il y a en effet de très grands entrepreneurs tech en Europe. Il doit y avoir de grands investisseurs tech européens. To capture this market in full boom, we have the best assets. We are a reference brand in digital in Europe with 20 years of experience. And we have a unique track record. We have 17 companies of the Next 40 and more than a third of the French Tech 120, which are companies of the Eurasio group. Voilà pour les grandes réalisations de l'année, une belle performance en 2019, une grande solidité du groupe pour aborder la période à venir, en particulier dans un environnement lié à la crise sanitaire que nous connaissons et à la situation économique incertaine pour les prochains mois. J'y reviendrai dans ma conclusion. Je passe la parole à Philippe pour vous présenter les résultats financiers de l'année.

Thank you Virginie, hello everyone, thank you for being here. I will present you our financial results for the year 2019, but before going into the details of the figures, I would like to extract the most striking points. First, as Virginie told you, we have achieved this year a strong increase in our assets under management and our net assets re-evaluated. Ensuite, nos produits rigurants sont également en progression importante, mais le résultat de notre activité d'investissement est en baisse car nous avons comptabilisé moins de sessions cette année. Et bien sûr, nous conservons un bilan très solide. Regardons d'abord le compte de résultat. As you know, there are three major components in our results account. First, the contribution of our group's companies. This is a consolidated results account. Then, the result of our investment activity. And then, finally, the contribution of our asset management activity. I will come back in detail to these three parts in a moment. The contribution of our investment companies, with the help of our financial costs, progresses, as you can see, from 4.3% to 236 million euros, in spite of financial costs that progress from 39 million euros per year, reflecting on the one hand the new investments, on the other hand the build-ups carried out in our different companies, And then finally, the refinances that have been made and that have allowed, throughout the year 2019, to raise the treasury at the level of Raseo. Second part, the contribution of our investment activity goes up to 107 million euros, I have already talked about it. Finally, third part, the contribution of our asset management activity is in strong progress at 124 million euros against 79 million euros last year. Dans le bas du compte de résultat, les charges calculées résultant des écritures de consolidation sont en baisse à 174 millions d'euros. Les impôts se montent à 25 millions d'euros et les éléments non récurrents sont également en baisse à 136 millions d'euros. Il se compose principalement des coûts de restructuration et de coûts liés aux opérations de croissance externe dans l'ensemble des sociétés du portefeuille. Overall, our net profit from the Group is 123 million euros, against 273 last year. Let's now look more in detail at the contribution of the Group's companies. This page presents the economic turnover and EBITDA at the level of the portfolio on the left and in each of our main business units on the right. The economic turnover of the portfolio progresses by 8.8% over the year and the economic EBITDA by 8.4%, both of which are at a constant ratio perimeter. I remind you that the economic turnover and EBITDA are constituted of consolidated EBITDA and turnover, plus our proportional share of EBITDA and turnover of consolidated companies, among them in equivalence. On the entire portfolio, we see an acceleration on the second half, with an economic turnover increase of 10.3% in the second half against 7.4% in the first half. And it is even more marked for EBITDA, which progresses from 13% in the second half against 3.8% in the first half. All our business units contribute positively to the growth of the turnover and to the growth of EBITDA, with a particular mention for Eurasio Patrimoine, which progresses from 13.8% in turnover and 23.6% in EBITDA, due to the good performance on the entire portfolio, and in particular on Emmerich, the last investment of Eurasio Patrimoine, and for Eden Solar. Let's now look at the results of our investment activity. As I have indicated, this contribution is in decline at 107 million euros. This decline is explained by three elements. The first is a basic effect related to an important volume of sessions carried out in 2018. You remember that in 2018, we had in particular CD Asmoday, which had performed very well. The second is an accounting but non-economic effect. Parmi les sessions réalisées cette année, nous avons effectivement cédé le solde de notre investissement dans Montclair. Montclair qui avait été déconsolidé les années précédentes à l'occasion d'une autre session. Et de ce fait, Montclair était comptabilisé dans nos comptes en juste valeur par résultat. All the added value accumulated from the beginning until December 31, 2018, for this section, was in the 2018 accounts. And for 2019, we only counted the value variation from January 1, 2019 to the date of the session on March 20, 2019. Finally, the third element that explains this decrease in the result, we have taken into account a global impermanence of 196 million euros, of which the main one is the adjustment of the value of Robcar, which largely reflects the decrease in the course over the year. The costs of the investment activity are globally stable at 108 million euros. They include the operational part of the fees imposed on this investment activity through internal refunds, transaction fees and strategic billing and piloting fees. Let's now move on to the contribution of the asset management activity. This contribution progresses strongly at 124 million euros It comes from the increase in management fees, mainly the management fees invoiced to our third-party investors, which progress from 19% to 140 million euros. These management fees, which are recurrent and predictable, come to complement the higher values, less regular by nature. This is one of the benefits of our model. The performance fees also contribute to this increase in the result, the essential coming from the sessions carried out this year on the Raseo report for 62 million euros and the part coming from the exit investments for 3 million euros. I will come back to this in a moment. the operational costs of the Group go up to 155 million euros. They include the total operational costs of Euraseo, Edid Invest, plus our share of costs of Rhône and MCH. On this amount, 75 million euros are imposed on investment activity through internal refunds, as we have seen on the previous page. Overall, the fee-related earnings rose to 59 million euros, a 25% increase, and the margin on these fee-related earnings compared to the management fee coming from our external investments rose to 42%, a 2-point increase compared to last year. A few words now on the interest rate perceived by Eurasio. We have seen that the interest rate from third parties rose to 3 million euros. This figure is still low because during our investments in e-d'Invest and Rhône, we acquired the e-d'Invest rates only from funds raised later at our entry and at Rhône from fund 5. Regardons un instant le modèle et comment se décomposent les revenus générés par un fonds d'investissement typique géré par le groupe. Vous avez à l'écran l'exemple d'un fonds de private equity d'un milliard d'euros qui générerait un retour cash on cash de deux fois en quatre à six ans. As you can see on the screen, this is the purple part. First of all, the revenues are constituted by the management fees, which are calculated on the basis of the commitment during the so-called investment period, that is to say in general during 4 to 6 years, then on the return price of the assets invested beyond this period of investment. Then, when the active sessions will start, from 4 years in our hypothesis, the performance fees will take over. And overall, in this example, the products generated for Eurasio, by this fund of 1 billion euros, amount to a total of 224 million euros in management fees and performance fees. As you may have noticed in the accounts that I have just presented to you, the management fees are already in strong increase this year. The performance fees are still low, but are called to increase over the next few years as sessions are held. Let's now look at our assets under management. As we have seen, and as Virginie has reminded us, this goes up to 18.8 billion euros by the end of 2019. This important progress comes at the same time from the success of the fund raising carried out in 2019, in strong progress compared to 2018, 2.4 billion euros against 1.6 billion euros, a growth of 53%. et de la création de valeur globale dans les investissements pour un total de 1,3 milliard. On peut par ailleurs noter qu'avec 2,4 milliards, les levées de fonds sont très nettement supérieures aux distributions qui se montent à 1,2 milliard d'euros cette année. Moreover, the average rate of management fees on raised funds in 2019 rose to 1.5% against an average rate on the portfolio of 1.4% previously. The next page details the creation of raw value on the portfolio. Sur l'année, celle-ci se monte à 14,5% sur l'ensemble du portefeuille, hors impact des titres cotés, et notamment d'Europecar, la création de valeur sur l'ensemble du portefeuille non coté est solide à 19%. Toutes nos business units contribuent à ce bon résultat. Elles sont toutes au-delà de 15% de création de valeur sur leur portefeuille non coté. La création de valeur de Raseo Grosse, 29%, mérite d'être saluée. La volatilité des titres cotés, vous le savez, est importante, les marchés financiers ayant tendance à amplifier les mouvements. Malheureusement, on le constate en ce moment. A cet égard, on pourra noter que les titres cotés ne représentent plus que moins de 4% de notre ANR à fin 2019 et le non coté, par différence, plus de 96%. The impact of a ROCCAR mark-to-market today, rather than on December 31, would thus be limited to about 1.5% of our re-evaluated net assets. On the other hand, Eurasio Development, which mainly gathers our general partner positions, whose valuation is essentially based on recurring and predictable fee management, already represents 16% of our re-evaluated net assets. As for the other non-quoted assets, given the recent news, it is obviously too early to know what impact the current epidemic could have. We can only recall that our net asset re-evaluated is generally calculated on prudent bases and that our portfolio is very diversified. These good results allow us to show a progression of the net asset per share, retired from the dividend of 10.5% to 80.3 euros. As you can see on the screen, the net asset revalued per share has progressed each year since 2011. La trésorerie d'un niveau moyen de 695 millions sur l'année 2019 pèse évidemment sur la croissance de l'ANR, mais cette situation de trésorerie solide constitue aujourd'hui plus que jamais une vraie force pour Eurasio. As you know, Eurasio has always wanted to maintain a solid financial structure, and this is of course the case today. Our treasury situation rose to 533 million euros on December 31, 2019, and Eurasio SE has no structural debt. Moreover, we have anticipated the expiry date of our trade union credit, which was in the spring of 2021, and we renewed it last December for five years with two options for an extension of one year, potentially seven years. Moreover, we have increased the amount from 1 billion to 1.5 billion and have made it the first green financing of private equity in Europe. All this gives Eurasio the means to support the companies in its portfolio, if necessary, and to seize the right investment opportunities. To finish, a word on the dividend. As you can see on the screen, our dividend has progressed on average by 6.7% per year since 2003. It has never dropped and has never been stopped, even during the crisis. This year, we want to substantially increase the dividend. For this, we propose to the General Assembly a unit dividend of 1.50 euros, or a 20% increase, and even an increase in global distribution of 24% if we take into account the impact of the free share distributed in 2019. In addition to this strong increase in the dividend, we will set up a major dividend for our loyal shareholders. As such, the shareholders registered for the nominative for more than two years on December 31, 2022 will benefit from a major dividend of 10% within the limit of legal provisions and in particular a detention of 0.5% of the capital per shareholder. Conjugué à la hausse importante du dividende, ce système remplacera avantageusement la distribution d'actions gratuites qui sera donc arrêtée cette année. Je vous remercie et je rends la parole à Virginie.

The results that Philippe has just presented confirm the two great messages that we are addressing to you this morning. A good performance in 2019 and at the same time a great solidity of the group to address the period to come, in particular in an environment linked not only to the health crisis that we know but also to the very uncertain economic situation for the coming months. So I would like to share today our vision, our short-term vision and our long-term vision in the environment that is today. First, in the short term, what does your company do? First, a daily mobilization of the executive committee and all investment teams who are in permanent contact with the leaders of our portfolio societies. Continuous follow-up procedures, information recovery and risk analysis on the consequences of the COVID-19 epidemic have obviously been implemented. Our analyses lead us to think that some companies will see their turnover, their profitability or their treasury situation affected, in particular those exposed to travel or tourism, or those with a strong Asian dependency notamment du point de vue de leurs approvisionnements. Mais à ce jour, les effets restent limités sur le portefeuille d'Eurasio pris dans sa globalité. C'est d'ailleurs tout l'intérêt de notre modèle diversifié mis en place depuis plusieurs années. S'agissant du groupe Eurasio, The first impact, that of the economic impact and the activity slowed down in the first semester, obviously leads us to not anticipate an active program of sessions or investments in the coming months. As for the fundraising, A temporary slowdown is not to be excluded. However, there should not be an important impact on the fee-related earnings of asset management activity, which is characterized by long-term commitments. Finally, all measures have been taken and we are endowed with continuity of activity plans, both for the Eurasio Group and for our participants. All measures that should have been taken have been taken. Voilà pour la gestion du court terme que nous abordons avec détermination, expérience et vigilance. In the long term, it is the discipline and diversification that have been implemented for years that will play a role. I told you, we are deeply disciplined in our investment choices, in our business plans for the Group, for our companies, in the valuations in our Evaluated Net Active and in the financing or levers that have been put in place in our acquisitions. We have also built a diversified group, in class of assets, in sector, in geography, which is a rare asset to face market risks. Note that no portfolio company represents more than 10% of our net assets re-evaluated. This discipline has led us to preserve a solid balance at the level of Eurasio with a treasury position of more than 500 million euros. This discipline has also led us to increase and anticipate the renewal of our credit line at the end of December 2019. This discipline has led us to preserve a very important investment capacity. We are also, of course, disciplined with ourselves in the management of the investment company. Eurasio therefore has healthy foundations and solid fundamentals. Eurasio is both performing and solid. This is the result of the model that we have built and strengthened for many years. A structurally healthy model with a stable balance and diversified revenue sources. a predictable model with recurring revenues, a long-term model that allows us to support our companies in the long run. Eurasio is a stabilizing actor, endowed with clean and sustainable resources that are significant. The long time, the maintenance of the cap and the financial solidity are our main assets. Le modèle de Razéo n'a jamais été aussi pertinent que dans ces temps difficiles qui s'annoncent. Je vous remercie pour votre attention et je suis prête avec l'ensemble du comité exécutif du groupe à répondre à l'ensemble de vos questions. Merci beaucoup.