Publication Animée

n ACTION Shareholders’ Letter

Special edition Shareholders’ Meeting 2018


It iswithmuchemotion that I address you for the first time asChairwoman of Eurazeo’s ExecutiveBoard. I wish to honor Patrick Sayer for his exceptional work at the head of our company. The company he built reflects both the man and us. An authentic, bold, ambitious and responsible company that is open to the world. The confidence shown by the Supervisory Board in appointing me Chairwoman is an honor that I pledge to fulfill. Eurazeo is ready to accelerate the transformation we initiated with Patrick, backed by the constant support of our Supervisory Board and based on the course set by our shareholders. Our keyword is transformation, thedriving forcebehindEurazeo since the verybeginning. We have created an investment division or opened an office outside France every year since 2010. In 2017, this momentumwas sharply accelerated thanks to two strategic partnerships signed with Idinvest, a venture capital leader in Europe, and Rhône Capital, a pivotal private equity player for transatlantic deals. We also completed our first U.S. investments and launched Eurazeo Brands. Eurazeo is now an independent and global private equity player, holding shares in 40 companies, not counting those supported by Idinvest. It manages nearly €16 billion in assets invested in French, European and U.S. companies. Never has Eurazeo been so clearly a French leader in the private equity sector.

the transatlanticsupportof French, EuropeanandU.S. companies. We have all the attributes needed to fulfil our ambition: u The first is our unique business model, combining permanent capital and third- party fund management. We bring together the best of two worlds: allying a long-term strategy with independence, so as to limit risk for shareholders, while significantly boosting investment capacity. u In amarket divided between amajority of national players and a handful of global giants, our uniqueness also stems fromour transatlantic vision. In 2017, we invested equally in Europe and the U.S. u Our third strength lies in the diversity of our investment divisions. In 10 years, we’ve expanded from one to eight specialized investment divisions: major corporations, SMEs, start-ups, real estate, brands, private debt and co-investment. This has enabled us to create greater value, by reducing risks and diversifying our growth sources. u The fourth feature, part and parcel of our DNA, is our responsible investment approach. CSR is an integral part of our strategy and daily practices. Eurazeo is the only listed investment company to be included in the five global CSR indicators that serve as benchmarks. I take great pride in this achievement. u Eurazeo is also a pioneer in digital technology. With its extensive understanding of the venture capital ecosystem, Idinvest will help us develop this area.

u Lastly, Eurazeo can count on its most dependable asset: a dedicated and creative team that thoroughly understands its markets and is driven by a common entrepreneurial spirit. Active throughout the private equity value chain, this team supports our companies in all aspects of their development. Excellence is thegoal that must guide all our actions - excellence in our strategy, excellence in our performances, excellence in our teams. We wish to be a benchmark for the companies we support, for all the entrepreneurs and management teams, for the investors who place their confidence in us, and of course for all of you, dear shareholders 1

Morethanever,wearepositioning Eurazeoas thebenchmark for

VirginieMorgon, Chairwoman of the Executive Board

Nicolas Huet General Secretary Member of the Executive Board

VIEWPOINT… by Michel David-Weill, Chairman of the Supervisory Board

The businessworld is doingwell. In 2017, all indicators were green for go and this trend will continue in 2018. In the U.S., China, India, Brazil and even Europe, despite Brexit, there are clear signs of recovery. As for France, the new cycle that began in 2017 has already engendered an economic renewal that has broadened our country’s appeal. There is still uncertainty of course, with new technologies that are disrupting the business model and the emergence of protectionist headwinds. In a challenging environment, Eurazeo has successfully charted its course. With its trademark vitality, the company has continued its asset rotation, the core of its business model. It has also accelerated its transformation to meet future challenges. u The partnership with Rhône and the alliance with Idinvest have provided Eurazeo with new business segments and talent. u The increase in funds managed for partner investors generates additional revenues that help boost stock market performance as they contribute to risk diversification and improved earnings forecasts. This is demonstrated

by the virtual disappearance of a discount between the Eurazeo share price and the net asset value per share. u The year was also marked by the Decaux family’s investment in Eurazeo. The family shares our vision of what it means to be a long-term investor and, like all shareholders, is keen to see our company succeed. 2017 ultimatelymarks a new chapter in theGroup’s governance. I would like to pay tribute to Patrick Sayer who served the interests of our shareholders for 16 years. And I am delighted to welcome Virginie Morgon as Chairwoman of Eurazeo. I have known her for over 25 years and she has contributed so much to the Group’s development these past years. Virginie’s talent, experience, personality and reputation reflect the kind of Chairwoman Eurazeo needs to further its ambition 1

Eurazeo draws its strength from the relevance of its business model, the acceleration of its strategy, and the robustness of its share ownership. I am fully confident in the future ”.


Adoptionofallresolutions: Further details on our website. See “2018 ASMvote results” Ordinarydividendof€1.25 pershare

Threenewappointments totheSupervisoryBoard • Amélie Oudéa-Castera, co-founder and chair of

• Robert Agostinelli, as non-voting member, co-founder and Managing Director of Rhône. • In addition, the Shareholders' Meeting ratified the appointment of Jean-Charles Decaux and JC Decaux Holding, represented by Emmanuel Russel .




the “Rénovons le sport français” association and digital expert.

u Onebonussharefor20sharesheld

Acknowledgments: A stirring tribute was paid to Patrick Sayer whose termof office as CEOwas not renewed inMarch 2018.

• Patrick Sayer, former CEO of Eurazeo, corporate director, investor.


EN ACTION - May 2018

From left to right Robert Agostinelli,

new non-voting member Amélie Oudéa-Castera, Patrick Sayer, Emmanuel Russel, new members of the Supervisory Board

Virginie Morgon, Chairwoman of the Executive Board

ANALYSIS… by Philippe Audouin, Directeur Général Finances - CFO, Member of the Executive Board

The substantial rise in our revenue (+16%) and the earnings of Eurazeo companies (+34%) demonstrates the merits of our strategy. In 16 years, shareholder value has been multiplied by 4.3x ”.

2017, one of the most active years for investments:

Nine investments totaling €1,354 million,


1 Eight partial or total divestments totaling €1,521 million, 1 13 build-ups totaling €479 million, 1 30 external growth transactions including two public offerings for listed companies (carried out by Novacap and Fintrax). Eurazeo’s economic revenue surged by 16% in 2017, to nearly €5 billion, largely outperforming Eurozone GDP growth. Over five cumulative years, the growth differential with the Eurozone is considerable. It is precisely this growth that allows us to create long-term value. For the 7  th year running, the contribution of our investments to Eurazeo’s earnings also rose sharply, at constant Eurazeo scope. Standing at €291 million, it grew by 34%. Capital gains totaled €575 million this year, mainly stemming from the partial divestments of Elis, Moncler, and Europcar and the total divestment of Colisée.

Net income attributable to owners of the Company reached €440.6million, one of the highest figures of the last 10 years. At €78.2, the net asset value (NAV) increased by 15.2%, dividends included. These outstanding results are backed by a very solid financial position , despite the many investments conducted in 2017. We held cash of €379 million at the year-end and currently hold nearly €300 million, pro forma of completed or announced transactions: the acquisition of the C2S network of clinics, the investments in Rhône and Idinvest, the Accor share sale, and the dividend payment.

“ On average, our dividend has risen by 6.2% annually over the last 15 years, with no decreases or interruptions, even during the financial crisis ”. Thanks to these outstanding performances the dividend is raised to €1.25per share , accompanied by a one-for-twenty bonus share grant. Factoring in the impact of the 2017 bonus share grant,

the shareholder dividend roseby9.4%year onyear.


March 2018

April 2018


Investment continues. Eurazeo Patrimoine acquired an 87% stake in the C2S group fromBridgepoint, seeking to develop the group through external growth. C2S is currently the eighth largest private clinic operator in France.

Eurazeo finalized its two strategic investments in Idinvest Partners andRhôneCapital. This dual transaction speeds up the development of Eurazeo’s third-party fundmanagement and supports the drive to become a partner of choice for businesses and entrepreneurs.

BACKSTAGE WITH THE BUSINESSES… Olivier Millet, Chairman of the Eurazeo PME Executive Board, member of the Eurazeo Executive Board Marc Frappier, Managing Partner, Head of Eurazeo Capital, member of the Eurazeo Executive Committee

Howwould you characterize Eurazeo’s investment divisions? Marc Frappier: They have the same purpose, to grow companies; the same identity, proximity to management of the companies they support; and the same resources to serve transformation: the capital used to finance projects, the expertise of teams that fully understand their business and market and a method based on strict discipline. These attributes give us ever-increasing power to develop our companies. What specifically is themethod behind your signature? Olivier Millet: It is founded on three pillars. First, a rigorous selection process allowing us to identify investment opportunities as early as possible. The target: dynamic companies that are ready to roll out responsibly. Then, co-building with the management teams. We look for managers that are passionate and ambitious. Finally, we activate all the transformation levers: international expansion, external growth, innovation, organic growth, industrial development, digital transformation and CSR. Can you give us a representative example of successful transformation? Marc Frappier: Asmodee is a good example. At the outset, it distributed board games and playing cards. We initiated all the growth drivers to transform it into a global amusement leader: external growth,

From left to right Marc frappier Olivier Millet

using a strategic and methodical plan. The results matched the investment with an over-50% surge in the company’s revenue. Another company, another success: Vignal Lighting Group, specializing in industrial vehicle lighting. This European company set out to conquer the world, with the help of our Shanghai office in particular.

with 17 acquisitions in four years, and digital transformation, with the roll-out of on-line and mobile games. This success is reflected in the numbers: EBITDA will soon reach €100 million and profits have increased sixfold in four years! Does transformation similarly produce results for SMEs? Olivier Millet: Yes, of course. I would cite the example of Flash Europe, now Redspher, the European leader in same-day transport, whose digital transformation we supported

The result? Revenue has more than doubled in four years 1


Eurazeo has forged a long and close relationship with private shareholders. Families, entrepreneurs, employees, and other private shareholders together hold 45% of our capital. Founded on a shared vision of long-term investment, your precious support over the years has been a stabilizing force for Eurazeo. To continue to better meet the expectations of the 21,000 shareholders who place their confidence in us, we are committed to going beyond our investment role - offering you an attractive performance over time -, to provide you with comprehensive and appropriate information, quality discussions and best-in class governance. With one guiding principle: be a good listener to better meet your expectations. We recently conducted an on-line shareholders’ survey: the results helped us prepare the Shareholders’ Meeting and adopt new initiatives to develop our program. Results of the shareholders’ survey prior to the Shareholders’ Meeting*: • The topics that interested you most are strategy (93%), results (80%), and the activities of the investment divisions (73%). • Your preferred sources of information are the Eurazeo website (68%), print media (50%), and the annual report (46%). * The survey, conducted in April 2018, covered 3,431 private shareholders. The complete results are available on the Eurazeo website under the Shareholders Corner heading in the Shareholders/Investors tab. Amore responsive Shareholders’ Meeting More dynamic, more collective, more “connected” to our business lines: the format of the Shareholders’ Meeting has changed. You were therefore able to meet the investment teams and discover their achievements and projects in a more meaningful way at special stands presenting the divisions.


Relive the Shareholders’ Meeting in full at


• The Shareholders Corner of our website has been enhanced, with more

• Web-conferences will be organized for private shareholders on the release of half-year and annual results, with the possibility of real-time Q&A.

• “Videonews” interviews will now be broadcast to complement press releases for major transactions.

information on our shareholding philosophy and commitments, as well as practical information (donations, Shareholders’ Meetings, etc.).

IN PICTURES Viewall the films presented during our Shareholders’ Meeting at

EURAZEO STOCK MARKET PERFORMANCE (100 baseline as of 5/11/2013) CAC 40 Eurazeo


















* Price adjusted for exceptional dividends and bonus share grants.




By e-mail


JULY 25 2018 half-year results


By post Eurazeo – Service Actionnaires 1, rue Georges Berger, 75017 Paris


OCTOBER 11 Shareholders’ Meeting in Lyons


u By telephone - Eurazeo: +33 (0)1 44 15 01 11 - Custodian for registered shareholder: 0800 801 161 (fromFrance) or +33 (0)800 801 161 (from another country Follow us on:

NOVEMBER 8 Q3 2018 revenue


NOVEMBER 23 Shareholders’ Meeting in Paris (Actionaria)


DECEMBER 10 Shareholders’ Meeting in Marseilles


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