EURAZEO_REGISTRATION_DOCUMENT_2017

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PRESENTATION OF THE GROUP

Risk management

Risk management -

As an equity investor operating in an environment surrounded by uncertainties, Eurazeo is faced with a set of risks that may hinder the achievement of its objectives.

At each of the key phases of its investment business, Eurazeo has implemented processes designed to identify and prevent the main risks. This system is effective due to the extensive involvement of corporate executive officers and employees, at their respective levels of responsibility and power, and a strong risk management culture.

•Clearstrategy:definition R i s k m a n a g e m e n t s y s t e m c o m p o n e n t s of5 investmentdivisionsand characteristicsofresilientmodelssought •Portfoliodiversification •Internationalexpansion

R i s k f a c t o r s

(o ices:China,Brazil,UnitedStates) •In-depthriskassessment andduediligence •Governance

Competitionfromotherplayers Appropriatenessofthe investmentstrategy Macro-economic

•In-depthduediligenceonpartners/ Shareholderagreements •Mechanismtoalign interests (co-investments)/Successionplans •Anticipationandregulatorywatch • Governance implemented byEurazeo in its investments • Crisismanagementpreparation •Anticipationofrefinancingmaturities (whicharefar inthefuture) •Absenceofstructuraldebt/Available €1billionsyndicated loan/Regular rotationoftheportfolio •Combinedmodel:permanentcapital/ third-partyfundmanagement •Contentofkeypersonclauses

andpoliticalenvironment Vettingofprojects

Investmentcapacity Third-partyfundmanagement Dependencyonkeypersonnel

DETECT & INVEST

legalortaxchanges Unfavorableregulatory,

TRANSFORM & REALIZE VALUE

Non-compliancewithregulations Marketrisk:interestrate,debt,foreignexchange Valuationofunlistedassets

Equitymarkets:valuation of listedsecurities Exittimetable

•Mixoffloatingandfixed-ratedebt

•Hedgingstrategies

•Rigorous internalvaluationprocess

R i s k f a c t o r s

R i s k m a n a g e m e n t s y s t e m c o m p o n e n t s

•No limitonthe investmentperiod

•Exitoptions identifiedonacquisition

•Exitsplannedwell inadvance

2017 Registration document

Eurazeo

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