WENDEL: 2025 Half-Year Results

         

2025 Half-Year Results:

Continued strategic deployment with the

Asset Management Platform ramp up:

Wendel Group now manages €45 billion+, of which €39 billion of Private Assets under Management for third parties

NAV per share at €167.7 as of June 30, 2025

Implementation of a semi-annual interim dividend starting in November 2025, with an interim dividend of €1.50

Taking into account the dividend payment of €4.7, the fully diluted net asset value1 per share as of June 30, 2025 is down 2.4% compared to the end of March 2025, and stable at constant exchange rates.

The strengthening of euro vs US dollar, generated a -€4.7 per share FX effect in Q2. At constant exchange rate, NAV main components evolved as follows:

Principal Investments:

Listed assets (38% of Gross Asset Value excluding cash): +5.0% vs Q1 2025 thanks to Bureau Veritas, IHS and Tarkett share prices increase

Unlisted assets (38% of GAV excl. cash): total value down 4.8% vs Q1 2025, reflecting mainly multiples and aggregates evolution

Asset Management activities (22% of GAV excl. cash): total valuation up +9.0% vs Q1 2025, induced by multiples and aggregates evolution

Principal investments: H1 2025 performance supported by listed companies

Positive contribution from the Group's listed companies, driven by higher share prices over the period

Total sales of Group companies up 3.9% organically

New CEOs at Crisis Prevention Institute and Scalian

Asset management: strong momentum in fundraising and revenue growth

Wendel Asset Management platform AuM reach close to €39 billion, focused on midmarket. Altogether IK Partners and Monroe Capital have raised c.€4.3 billion of new funds on various strategies over H1 2025, without any sponsor money from Wendel in H1. IK Partners reached its hard caps on its Midcap and Small Cap funds in the first half of 2025, and Monroe Capital raised $4 billion.

Management fees totalled €152 million and Fee Related Earnings totalled €59 million, growing more than threefold vs last year, thanks to organic growth and strong scope effects

Dynamic implementation of new strategic directions

Principal Investments: successful Forward Sale of 6.7% of Bureau Veritas' share capital, at a price of €27.25 per share on March 12, 2025

Wendel entered into a call spread transaction to benefit from up to c.15% of the stock price appreciation over the next three years on the equivalent number of shares underlying the Forward Sale Transaction

Total net proceeds for Wendel of €750 million

Wendel has retained 26.5% of the share capital and 41.2% of the voting rights of Bureau Veritas

Asset Management: With Monroe Capital acquisition, Wendel's third party asset management platform reached €39 billion in AUM2

On March 31, 2025, Wendel has invested $1.133 billion to acquire 72% of Monroe Capital's shares together with rights to c.20% of the carried interest generated on past and future funds

A more attractive dividend policy for shareholders: introduction of semi-annual interim dividend payments starting in 2025

Ordinary dividend of €4.70 per share for 2024, up 17.5% compared to 2023, paid in May 2025, representing a distribution to shareholders of €200 million

€1.50 interim dividend to be paid in November 2025

In order to reflect the recurring cash flow generated by its dual business model, Wendel has decided to pay an interim dividend of €1.50 in November 2025 for the 2025 financial year corresponding to about one third of the total dividend paid for the previous financial year

The balance of the 2025 dividend, will be paid in May 2026, in line with Wendel dividend policy

This new interim dividend policy will be recurring

Strong financial structure and committed to remaining Investment Grade

Average debt maturity of 3.1 years with an average cost of 2.4%

LTV ratio at 18.5%4 on a pro forma basis

On March 31, 2025, S&P revised Wendel outlook to ‘Stable' from ‘Negative' on debt reduction and reaffirmed its ‘BBB' rating

Consolidated net sales for H1 2025 €4,177.6 million, up +7.2% overall and up +3.9% organically year-to-date

Net income from operations, group share down 17.9% at €86.0 million

H1 2025 net income (Group share) at €4.3 million impacted by a negative scope effect due to the disposal of Constantia Flexibles (€419m capital gain, group share) in the first half of 2024, while the capital gain related to the forward sale of 6.7% of Bureau Veritas share capital in March 2025 is not accounted in the P&L

Laurent Mignon, Wendel Group CEO, commented:" With the successful closing of Monroe Capital's acquisition, Wendel materializes its strategy to grow third-party asset management alongside our principal investment activity. With Monroe Capital and IK Partners representing €39 billion of assets under management and €4.3 billion raised in H1 2025, we are building a strong and significant Asset management player generating recurring and predictable income, enhancing significantly Wendel's value creation profile. IK Partners has closed its Midcap and Small Cap strategies at their hardcaps, finalizing its 2024/2025 fundraising at €6 billion, in line with the ambition announced when it was acquired by Wendel in October 2023. We are actively building a diversified pipeline of high-quality acquisition opportunities to expand our third-party asset management business. We actively support the development of our permanent capital portfolio companies in navigating a persistently complex macroeconomic environment. Our teams remain fully mobilized to generate value through the current portfolio and further develop our asset management platform while maintaining a solid financial profile. Our strategic transformation has also gone hand in hand with a reinforced cash return to shareholders, reflected in the €4.7 dividend per share paid in May, growing 17.5% vs 2024. Given the stronger recurring and predictable cash flow generation of Wendel, we have decided to implement a semi-annual interim dividend payment policy starting in 2025. "

Wendel's net asset value as of June 30, 2025: €167.7 per share on a fully diluted basis

Wendel's Net Asset Value (NAV) as of June 30, 2025, was prepared by Wendel to the best of its knowledge and on the basis of market data available at this date and in compliance with its methodology.

Fully diluted Net Asset Value was €167.7 per share as of June 30, 2025 (see details in the table below), as compared to €176.7 on March 31, 2025, representing a decrease of -5.1% over the quarter and stable restated from the dividend paid in May 2025 and at constant exchange rate. Compared to the last 20-day average share price as of June 30, the discount to the fully diluted NAV per share was -48.4% as of June 30, 2025,.

FX had a negative impact of -4.7€ per share over the second quarter due to the dollar evolution vs. euro.

Bureau Veritas is slightly up over the quarter (+1.2% on a 20-day average). IHS Towers (+29.5%) and Tarkett (+3%) 20-day average share prices also contributed positively to the NAV. Total value creation per share of listed assets was therefore positive (+€3.5) at constant exchange rate on a fully diluted basis over the second quarter 2025.

Unlisted asset contribution to NAV was negative over the second quarter with a total change per share of - €5.0 at a constant exchange rate reflecting selected assets operational performance and multiples evolution.

Asset management activities contribution to NAV was positive, +€3.8 at a constant exchange rate, due to IK Partners and Monroe Capital blended multiples' evolution and good FRE generation. A total of €49M of sponsor money is included in the NAV as of end of June, both for IK Partners and Monroe Capital.

Cash operating costs, Net Financing Results and Other items impacted NAV by -€1.9 at constant exchange rate, as Wendel benefits from a positive carry and maintains a good cost control.

Over the first half of the year, total Net Asset Value evolution per share amounted to -€13.2, restated from the €4.7 of dividend returned to shareholders in May 2025, i.e. -€6.2 at a constant exchange rate.

Fully diluted NAV per share of €167.7 as of June 30, 2025

(in millions of euros)

 

 

06/30/2025

03/31/2025

Listed investments

Number of shares

Share price (1)

3,088

2,965

Bureau Veritas

89.9m(2)/120.3m

€29.2/€28.5

2,630

2,565

IHS

63.0m/63.0m

$5.7/$4.4

307

254

Tarkett

 

€16.9/€16.4

151

146

Investment in unlisted assets (3)

3,071

3,346

Asset Management Activities (4)

1,824

1,778

Asset Managers (IK Partners & Monroe Capital)

1,775

1,749

Sponsor Money

49

29

Other assets and liabilities of Wendel & holding companies (5)

150

161

Net cash position & financial assets (6)

1,770

2,058

Gross asset value

 

 

9,903

10,308

Wendel bond debt & accrued interests

 

 

-2,373

-2,378

IK Partners transaction deferred payment and Monroe Capital earnout

-235

-244

Net Asset Value

 

 

7,295

7,686

Of which net debt

 

 

-838

-564

Number of shares

 

 

44,461,997

44,461,997

Net Asset Value per share

€164.1

€172.9

Wendel's 20 days share price average

 

€86.6

€92.0

Premium (discount) on NAV

-47.2%

-46.8%

Number of shares, fully diluted

42,457,994

42,456,176

Fully diluted Net Asset Value, per share

€167.7

€176.7

Premium (discount) on fully diluted NAV

-48.4%

-47.9%

(1)  Last 20 trading days average as of June 30, 2025, and March 31, 2025.(2)  Number of shares adjusted from the Forward Sale Transaction of 30,357,140 shares of Bureau Veritas. The value of the call spread transaction to benefit from up to c.15% of the stock price appreciation on the equivalent number of shares is taken into account in Other assets & liabilities of Wendel & holding companies.(3)  Investments in unlisted companies (Stahl, Crisis Prevention Institute, ACAMS, Scalian, Globeducate, Wendel Growth). Aggregates retained for the calculation exclude the impact of IFRS16. (4)  Investments in IK Partners and Monroe Capital (excl. Cash to be distributed to shareholders). Valued as a platform based on Net Income / Distributable earnings multiples.(5)  Of which 2,004,003 treasury shares as of June 30, 2025, and 2,005,821 as of March 31, 2025.(6)  Cash position and short-term financial assets of Wendel & holdings.Assets and liabilities denominated in currencies other than the euro have been converted at exchange rates prevailing on the date of the NAV calculation.If co-investment and managements LTIP conditions are realized, subsequent dilutive effects on Wendel's economic ownership are accounted for in NAV calculations. See page 285 of the 2024 Registration Document.

Wendel's Principal Investments' portfolio rotation

On March 12, 2025, Wendel realized a successful placement of Bureau Veritas shares as part of a prepaid 3-year forward sale representing approximately 6.7% of Bureau Veritas share capital and increased its financial flexibility by reducing the pro forma loan-to-value ratio to approximately 17%. The transaction immediately generated net cash proceeds of approximately €750M to Wendel.

Wendel invested €41.5M in Scalian in H1 2025 to support its external growth and to strengthen its balance sheet.

Wendel's Asset Management platform evolution

Acquisition of a controlling stake in Monroe Capital LLC closed, a transformational transaction in line with the strategic roadmap

Wendel completed on March 31, 2025 the definitive partnership agreement including the acquisition, together with AXA IM Prime, of 75% of Monroe Capital LLC ("Monroe Capital" or "the Company"), and a sponsoring program of $800 million to accelerate Monroe Capital's growth, together with an investment of up to $200 million in GP commitment.

With IK Partners and Monroe Capital, Wendel's third party asset management platform reached €39 billion in AUM5, and should generate, on a full-year basis, c.€ 455 million revenues6, c.€160 million pre-tax FRE (c.€100 million in pre-tax FRE (Wendel share) in 2025. Wendel's ambition is to reach €150 million (Wendel share) in pre-tax FRE in 2027.

Third-Party Asset Management Platform: 22% of Gross Asset Value excluding cash

Over the first half of 2025, the Wendel Asset Management platform (IK Partners and Monroe Capital), focused on the midmarket private markets, registered particularly strong levels of activity, generating a total of €152.0 million in Management fees and others, up 355 % vs. H1 2024, thanks to good organic growth and strong scope effects: Only IK Partners was consolidated over 2 months in H1 2024, to be compared in H1 2025 with a 6 months consolidation for IK and 3 months consolidation for Monroe Capital in H1 2025.

As a consequence, the consolidated Fee Related Earnings of the platform amounted to €59.9 million in H1 2025, up 318% vs last year, and Profit Before Tax was €60.2 million, up 303% vs. last year.

The Wendel Asset Management Platform has known a Strong Momentum in terms of fund raising with €4.3 billion raised over the semester, without any sponsor money committed by Wendel.

IK Partners has closed its Midcap and its Small Cap strategy at the hard cap. This completes IK fund raising cycle (2024/2025) at €6 billion, in line with the announced target at acquisition in October 2023. Monroe Capital has also maintained its strong dynamic with $4 billion of asset raised in 6 months with a good ...