Record net asset value per share: €181.3 up 30.0% over the last 12 months - 179.7 KB - PDF

P R E S S R E L E A S E , N o vem b er 30, 2017 ‌‌‌‌‌‌

Record net asset value per share: €181.3 up 30.0% over the last 12 months‌‌‌

• Stahl's acquisition of BASF's leather chemicals business was finalized.

• IHS signed an agreement to acquire more than 1,600 towers in Kuwait.

• The sale of Constantia Flexibles' Labels business was finalized.

• Wendel canceled 2% of its share capital as part of its share buyback program

Wendel is hosting its 16th annual Investor Day today, dedicated to the Group's principal unlisted assets.

Net asset value (NAV), published today, totaled €181.3 per share as of November 17, 2017, vs. €139.5 on November 18, 2016.

"Since the start of the year, Wendel's teams have successfully completed the year's four priority projects. Firstly, in early June, Wendel divested 22 million Saint-Gobain shares, taking advantage of a favorable market window. Then, two significant transactions - Stahl's acquisition of BASF's leather chemicals business and Constantia Flexibles' sale of its Labels business - were finalized at favorable terms. Lastly, we supported Bureau Veritas in its gradual return to organic growth, driven by its strategic initiatives.

We decided to remain cautious on new acquisitions, in a market where prices were sometimes too high, and we finalized the acquisition of Tsebo, which performed very well in its first year as a Wendel group company.

The strong performances of our companies, combined with the work of Wendel's teams have enabled us to publish a record high NAV per share today of €181.3."

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1. Following the sale of the "Labels" business and in accordance with IFRS 5, the contribution of this division to nine-month 2016 and 2017 earnings has been reclassified in "Net income from discontinued operations and operations held for sale".

2. Company consolidated from February 2017. Organic growth over 9 months.

   Nine-month 2017 sales of equity-accounted companies

   (in millions of euros)	9 months 2016	9 months 2017	Δ	Organic Δ
   Allied Universal (3)	708.1	3,547.3	n.a.	+2.3% (4)
   IHS	615.4	743.2	+20.8%	n.a.
   Oranje-Nassau Développement
   SGI Africa (5)	0.8	5.3	n.a.	n.a.

3. Allied Universal has been consolidated by the equity method since the merger between AlliedBarton and Universal Services of America in August 2016. In accordance with IFRS 5, AlliedBarton's activities in the first six months of 2016, until the merger with Universal Services of America, are presented in the income statement under "Net income from operations to be accounted for by the equity method".

4. Pro forma sales growth, computed proforma of the merger, over nine months was 12.0% (2.3% organic growth), based on financial information reported by Allied Universal in USD.

5. Company accounted for by the equity method since August 2016.

1. Following the sale of the "Labels" business and in accordance with IFRS 5, the contribution of this division to Q3 2016 and 2017 earnings has been reclassified in "Net income from discontinued operations and operations held for sale".

2. Company consolidated since February 2017.

   Q3 sales of equity-accounted companies

   (in millions of euros)	Q3 2016	Q3 2017	Organic Δ
   Allied Universal (3)	708.1	1,154.0	n.a.	+3.8% (4)
   IHS	191.3	238.7	+24.7%	n.a.
   Oranje-Nassau Développement
   SGI Africa (5)	0.8	1.8	n.a.	n.a.

3. Allied Universal has been consolidated by the equity method since the merger between AlliedBarton and Universal Services of America in August 2016. In accordance with IFRS 5, AlliedBarton's activities in the first six months of 2016, until the merger with Universal Services of America, are presented in the income statement under "Net income from operations to be accounted for by the equity method".

4. Pro forma sales growth, computed pro forma of the merger, in Q3 was 13.4% (incl. 3.8% organic growth), based on financial information reported by Allied Universal in USD.

5. Company accounted for by the equity method since August 2016.

(Full consolidation)

Sales over the first nine months of the year totaled €3,492.8 million, up 4.0% compared with the year earlier period, including organic growth of 1.6%.

Third-quarter 2017 revenue totaled €1.13 billion, up 3.8% vs. Q3 2016 at constant currency.

Organic growth in Q3 2017 was 2.2%. Four out of six businesses posted organic growth, with Certification being the best performer (+5.2%) alongside Building & Infrastructure (+4.0%), Consumer Products (+3.7%) and Agri-Food & Commodities (+3.1%), led by the Agri-Food and the Metals & Minerals businesses. Marine & Offshore and Industry remained in negative territory organically (-1.8% and -0.7% respectively) still facing the down-cycle in shipping and O&G markets.

All five Growth Initiatives maintained strong momentum, +7.2% organically year-on-year (vs. +7.1% in H1 2017). Key performers were SmartWorld (+17.3%), Automotive (+13.2%) and Agri-Food (+10.3%).

External growth was 1.6% in the third quarter of 2017. Bureau Veritas has completed four strategic acquisitions YTD, representing €100 million in annualized revenue, to support the Building & Infrastructure /Agri-Food /SmartWorld Growth Initiatives.

Exchange rate fluctuations had an impact of -4.1%, owing principally to appreciation of the euro against the USD and emerging countries' currencies.

2017 outlook confirmed

The global macroeconomic environment is likely to remain volatile in 2017, with persistent weakness in the oil & gas and shipping markets. Thanks to its diversified portfolio and the ramp-up of its Growth Initiatives, the Group still anticipates a slightly positive organic revenue growth for the full year with acceleration in the second half confirmed.

Bureau Veritas confirms its outlook for an adjusted operating margin of around 16%. Cash flow is expected to improve compared to 2016.

(Full consolidation. In accordance with IFRS 5, 9M 2016 and 9M 2017 figures for the Labels business are presented in the income statement under "Net income from discontinued operations and operations held for sale". All the figures presented here exclude the Labels business.)

On October 31, 2017, Constantia Flexibles completed the sale of its Labels business to Multi-Color Corporation ("MCC"), for an enterprise value of approximatly €1.15 billion (USD1.3 billion). Constantia Flexibles has received c. €830 million in cash and will continue to participate in the future success story of Multi-Color through a 16.6% shareholding.

All the figures presented here exclude the Labels business.

For the first nine months of 2017, Constantia Flexibles' sales stood at €1,110.7 million, up 1.7% over the year-earlier period. Constantia Flexibles' sales grew organically by 1.5%. Fluctuations in exchange rates had a positive impact of 0.9%, mainly deriving from the appreciation of the ZAR, USD and RUB. Portfolio effects were negative at -0.7% due to the divestment of the non-core folding carton activities in Mexico, which were not fully offset by the acquisitions of Oai Hung in Vietnam, and San Prospero and Alucap in Italy.