Wendel (MF) Investor Day 2024 summary

Strategic transformation and business model evolution

• Shifted from a pure principal investments player to a dual business model, scaling third-party asset management AUM to €31 billion in two years and enhancing value creation and cash flow predictability.

• NAV increased from €7.5bn (2022) to €8bn (Sept. 2024), with a focus on asset-light sectors and dynamic portfolio rotation.

• Fee-related earnings rose to €160 million consolidated (€101 million attributable), with a target of €150 million by 2027 through organic growth.

• €2.6 billion generated from asset sales and rotations, with €1.2 billion reinvested in principal investments and €1.4 billion in asset management GPs.

• €420 million returned to shareholders via dividends and buybacks, with dividend up 33% since 2022 and plans for further distributions.

Principal investments and portfolio performance

• Portfolio reshaped for higher growth and cash flow, with major exits (e.g., Constantia Flexibles) and new investments (e.g., 50% of Globeducate in 2024).

• Bureau Veritas and Scalian are key business services holdings; Scalian faces a cyclical slowdown but is executing margin protection and transformation plans.

• Crisis Prevention Institute (CPI) delivered strong growth, with sales CAGR of 12.2% and EBITDA CAGR of ~14.5% since 2019, expanding its product range and maintaining strong cash generation.

• Divestitures (Constantia, Preligens, partial Bureau Veritas) delivered strong long-term returns (10–28%), with Bureau Veritas and Stahl delivering 15–25% annual returns.

• Portfolio rebalanced toward higher-growth, lower-capital-intensity sectors, reducing industrial assets from 30% to 18% and increasing professional, education, and tech assets from 19% to 30%.

Globeducate: acquisition, growth, and resilience

• Acquired 50% of Globeducate for €625m in 2024, co-controlled with Providence Equity; operates 67 schools in 11 countries, serving ~41,000 students.

• FY25F revenue of €440m and EBITDA margin of 22%, with 13–16% revenue CAGR and 23 acquisitions since 2017.

• High student retention (88%), strong academic outcomes, and 87% of students admitted to top-choice universities.

• Growth driven by organic expansion, M&A, and greenfield projects, targeting 24 new projects and 9.8k seats by 2030.

• Despite negative demographic trends, private education market share is growing, offering strong tailwinds and M&A opportunities.