Eurazeo / Shareholder's Letter (june 2019)

Eurazeo / Shareholder's Letter (june 2019)

EDITORIAL by Virginie Morgon, Chief Executive Officer A Group holding the keys to success EN ACTION Shareholders’ Letter JUNE 2019

Your Group has transformed and expanded but has also remained true to what drives the identity and success of its divisions: be an active investor, on a human scale, constantly in touch with its entrepreneurs and markets. Drawing on its unique model and its wealth of talent, I’m convinced that our Group has all it needs to further its growth and achieve success in the years to come. Now more than ever, our aim is to create value for all our shareholders. Our growth strategy and the caliber of our national and international teams are two vital assets for our Group 1

investment partners, boosting our ability to expand our investment divisions and create value. Strengthening our capacities will lead to more growth opportunities and enhanced risk control for our Group and for you, dear Shareholders.

“ This momentum gives me confidence in the future of our company ”

This is because we mainly deal in private equity, a highly lucrative sector and a fully-fledged industry that creates sustainable value. And because our diversification strategy has already proven to be effective. We now have eight investment teams which also act as growth drivers. The acquisition of Idinvest, the highlight of 2018, brought us three new businesses, venture capital, private debt and secondary funds, and strengthened our positions in Asia and Europe. Our objective, as a whole, is to become the European leader in supporting and financing companies of all sizes. We have already created the European growth capital leader, Eurazeo Growth, by combining the Eurazeo Croissance and Idinvest Growth teams.

2018 A VERY ACTIVE YEAR: €2.3 Bn in AuM raised (+10% in one year) €3.1 Bn invested and €3.1 Bn divested 235 employees, 9 countries, 8 businesses, over 370 companies supported. 90 companies acquired


Dear Shareholders,

The diversification and transformation strategy we have rolled out over the last ten years gathered considerable pace in 2018. The strategic deals completed this year have enabled Eurazeo to further its growth and strengthen its unique model: a global presence that few players can offer their companies; an extensive array of businesses, tailored to all company profiles; talents with multiple areas of expertise, providing their skills and networks; and growing financial resources from our




VIEWPOINT by Michel David-Weil, Chairman of the Supervisory Board

Combining the best of two worlds

TAKEAWAYS FROMTHE SHAREHOLDERS’ MEETING R Adoption of all resolutions: further details on our website.

In keepingwith its history, our company has broadened its horizons and accelerated its international growth strategy. These changes were required to deal with an increasingly complex environment and meet our objective: create more and more value for our shareholders.

Ordinary dividend of €1.25 per share. One bonus share for 20 shares held.



2018 was a particularly significant year for Eurazeo”

R Renewal of the term of office of Françoise Mercadal-Delassale, CEO of Crédit du Nord.

In an uncertain environment, private equity has enjoyed steady growth, combined with increasing demands from investors. This is both a challenge and an opportunity for Eurazeo, which has focused its approach on responsibility and developed a tailored model. Our company, attentive to the needs of both

of the relationship with the Decaux family and the bond between the Supervisory Board and the management team. These strengths make me confident in the future, and there is no better illustration than the strong momentum in 2019 1

its shareholders and its investors, has taken the initiative and added new businesses and talents to combine the best of two worlds: an entrepreneurial spirit with no structural debt and management results that ensure recurring income. 2018 also confirmed the quality

ANALYSIS by Philippe Audouin, Directeur Général Finances

Solid performances, driven by the transformation of companies

In2018, Eurazeopostedexcellent results,whichsupport our investment strategy: accelerate thegrowthof our companies and improve their performance. From a stock market perspective, 2018 was a year of consolidation, following a record- breaking 2017 when our share clearly outperformed. Despite the market correction, Eurazeo continues to achieve long-term returns for its shareholders that exceed stock market benchmark comparables and indexes (over 5 years, 18% versus 8% for the CAC 40) 1


R Economic revenue increased by 11% .

6.2 % Average annual Eurazeo dividend growth over the last 17 years.

R NAV growth of 5.7% including dividends (+ 11% for Eurazeo Capital (excluding listed assets), + 16% for Eurazeo PME, + 21% for Eurazeo Patrimoine and + 36% for Eurazeo Croissance). R In 7 years, Eurazeo has more than quadrupled its assets under management, from €4 billion to €17 billion.

To find out more: watch our 2019 Shareholders’ Meeting in full at

EN ACTION - June 2019

Olivier MILLET, Member of the Executive Board S ophie FLAK, Director of CSR and Digital

Three value creation drivers

1 A unique digital ecosystem

Following themerger of theEurazeo and Idinvest teams andcompetencies within theEurazeoGrowthdivision, our Grouphas become anundisputed “tech” partner in France andEurope. This crucial market offers promising opportunities for Eurazeo for two reasons. Firstly, because it is booming – the number of unicorns (start-ups valued at over US$1 billion) in Europe has increased

fifteenfold in 10 years- generating considerable financing requirements and multiple opportunities for investors. Secondly, because the arrival of Idinvest, which boasts over 20 years’ experience in the digital sector, has given Eurazeo access to a vast technological and entrepreneurial ecosystem. It is this vector that will help our portfolio companies innovate and develop 1


In 2018, the Group accompanied the greatest successes of the French Tech: it contributed to the three largest fundraisings in the market and supports or has supported 4 of the 7 French unicorns*: Deezer, Criteo, Talend and Doctolib.

To find out more on the digital sector: (2018 Annual Review + video of the Shareholders’ Meeting)

2 Corporate Social Responsibility (CSR), an impact booster The EurazeoGroup is a pioneer, placingCSR at the core of its investor business. models, which is instrumental in increasing their exit value.

has a positive impact on the economy by placing the activity of companies on a sustainable path, as illustrated by our 2018 CSR footprint 1

This unique investment model does not only generate performance and added value for Eurazeo: the Group also

Investment choices focus on responsible companies which do not present any major risks that could hinder their growth and have adequate transformation levers to act. During the investment period, we offer companies CSR programs to encourage them to improve in all areas (processes, management, products, etc.). This leads to greater confidence arising from the quality of company business


Vigeo Eiris ranked Eurazeo in the top 20most advanced French companies for CSR and in the world’s top five financial sector companies.

To find out more about CSR: m (2018 Annual Review)


3 Global ambitions

In 2018, Eurazeo scaled up to extend its global reach. The Group now has offices in four strategic regions and employs 20 nationalities.


This international expertise is a distinct competitive advantage and key to accelerating the growth of our portfolio companies and enhancing their performance. With its worldwide coverage, Eurazeo boosts its ability to lure talents and larger investors, expand its deal flow to seize better business opportunities, detect new growth drivers and diversify its risks. This successful strategy is reflected in its figures. In the past four years, the Eurazeo Capital and Eurazeo PME deal flows have soared annually by 30% and the number of institutional investors, now mostly international, has risen fivefold in three years 1

u JUNE 19, 2019

Meeting in Annecy

u JULY26, 2019

Web conference on half-year results

u 4 TH QUARTER2019 Meeting in Reims or Lille u NOVEMBER2019 Meeting in Paris (Actionaria)

Marc FRAPPIER, Head of Eurazeo Capital


Offices dedicated to investment Offices dedicated to development

u By e-mail


u Bymail Eurazeo - Service Actionnaires 1, rue Georges Berger, 75017 Paris





New York




São Paulo


Buenos Aires

To make it easier to access information, the Eurazeo

Annual Review is now available in digital format on our website:



In less than a year, the Group has pooled invaluable skills - particularly with the creation of a joint Eurazeo Growth team and the merging of offices in Shanghai - teams have promoted the Group among investment partners, particularly in the Middle East and Asia, and €430 million has been injected from the Eurazeo balance sheet into the Idinvest funds. The Idinvest acquisition is more than just an investment, it is a joint project: create the European reference player supporting companies of all sizes, through investment or financing, at all stages of their development in France, Europe and further afield in the future. This project is helmed by the entire Executive Committee, which now includes Christophe Bavière and Benoist Grossmann 1

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