Wendel (MF) Investor Day 2024 summary

Strategic transformation and business model evolution

• Transitioned from a pure principal investments player to a dual business model, enhancing value creation and predictability of cash flows since 2022.

• Assets under management reached €31 billion, with third-party asset management growing from zero to €31 billion in two years across US and Europe.

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

• Fee-related earnings rose from zero to €160 million consolidated, with €101 million attributable to the group.

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

Principal investments and portfolio reshaping

• €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 since 2022.

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

• Industrial sector exposure reduced from 30% to 18% of assets, while professional, education, and tech assets grew from 19% to 30%.

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

• CPI delivered strong growth, with sales CAGR of 12.2% and EBITDA CAGR of ~14.5% since 2019, expanding its product range and maintaining high single-digit growth expectations for 2024.

Globeducate: acquisition, growth, and resilience in education

• Acquired 50% of Globeducate for €625m in 2024, co-controlled with Providence Equity.

• Operates 67 schools in 11 countries, serving ~41,000 students from 127 nationalities, with FY25F revenue of €440m and EBITDA margin of 22%.

• Achieved 13% revenue CAGR (2021–2025F), integrating 23 acquisitions since 2017 and launching 24 greenfield projects.

• High student retention (88%) and staff tenure (7 years), with strong academic outcomes and robust ESG and safeguarding practices.

• Plans to continue M&A and greenfield expansion, targeting 24 new projects and 9.8k seats by 2030, with ~50% of 2030 EBITDA from greenfield.