Wendel : Présentation analyste du 29 juillet – Activité du 1er semestre 2021 (en anglais)

H1 2021 Trading update

J u l y 2 9 , 2 0 2 1

Half-Year Trading Update Key Figures

Record high NAV at €189.1 per share, up 18.9% YTD and +36.4% YoY

positively impacted by stock market rebound and upward revision of aggregates used for the valuation of unlisted assets

Consolidated sales of €3,997.4m, up 11.3%, strong rebound by portfolio companies

Solid financial structure, ample liquidity and 9.0%* LTV and low leverage across portfolio companies

*Adjusted for further investment in Tarkett and net of the incoming dividend from Bureau Veritas, LTV would stand at 9.5% as of June 30,2021

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Half-Year Trading Udpate Key Highlights

Wendel in H1 2021

c. €260m capital deployed since the beginning of the year with €216.7m in Tarkett, €18m in Wendel Lab and €25m of share buybacks

Increased dividend

Effected 5 new hires within our investment team

ESG: Adhered to UN Global Compact & amended RCF financial terms integrating ESG targets

Portfolio in H1 2021

Very strong and profitable rebound by portfolio companies, generally exceeding H1 2019 levels

Bureau Veritas posted strong topline and margin growth and upgraded its 2021 outlook Stahl recruited Maarten Heijbroek as its new CEO

Constantia acquired Propak in Turkey

IHS Towers announced 2 additional acquisitions and the successful bond flip-up leading to S&P and Fitch rating upgrades of its senior unsecured notes

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Performance of Group companies

H a l f - Y e a r 2 0 2 1

F i g u r e s a r e a f t e r I F R S 1 6 , u n l e s s o t h e r w i s e s p e c i f i e d

200,0

•

•

100,0

Bureau Veritas

2 500,0		+9.9%	2,418.4
Sales, €m	2,200.5
2 300,0
2 100,0			378.2
1 900,0	215.8
Adj. Op. Profit, €m	(1)
1 700,0
1 500,0	H1 2020
		H1 2021
margin, %	9.8%		15.6%
Net debt, €m (2)	1,617		1,165

• Revenue of €2.4bn, up 9.9% year-on-year
• Organic growth increased by +14.3% in H1 2021, of which +22.5% in Q2 benefiting from improving end markets across most businesses and the return to a more normal operating environment compared to H1 2020

1. Three businesses (representing more than 50% of the portfolio) delivered very strong organic growth, Certification +38.6%, Consumer Products +23.4%, and Buildings & Infrastructure +19.5%.

• 1. The rest of the portfolio grew at a lower pace, with Industry up 9.5% organically (helped by a 20.8% recovery in Q2), Marine & Offshore, up 5.3%, and Agri-Food & Commodities, up 4.1%
• Resumption of bolt-onM&A in 2021 in strategic areas (renewables, sustainability certification, cybersecurity and consumer China) for a total revenue of around EUR 25.0 million
• Adjusted operating margin increased +583bps to 15.6% (1)
• Strong free cash flow at €229 million, down 15.1% YoY due to working capital outflow induced by the strong growth delivered in the second quarter (+22.5% organically), continuing initiatives throughout the organization to improve the operating working capital in a structural way
• Strong financial position with net debt / EBITDA ratio further reduced YoY from 2.0x to 1.3x. It is the lowest level since Bureau Veritas IPO in 2007.
• Dividend distribution of 0.36 per share for the 2020 financial year

500,0

2021 outlook upgraded: Based on the excellent half-year performance, considering tough comparables in the

400,0

second half, and and assuming no severe lockdowns in its main countries of operation due to COVID-19,

Bureau Veritas now expects for the full year 2021 to: 300,0

• Achieve strong organic revenue growth;

Improve the adjusted operating margin;

Generate sustained strong cash flow.

(1)	After applying IFRS 16	5
(2)	Excluding IFRS 16