PEUGEOT INVEST (EPA:PEUG) - Proven solidity of FFP’s business model & strong activity in 2020
Transparency directive : regulatory news
25/03/2021 08:00
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PRESS RELEASENeuilly-sur-Seine, 25 March 2021
Proven solidity of FFP?s business model
Strong activity in 2020
* NAV per share resilient, ending the year at EUR179.6, ie a 1.3% return
* Acquisition of Peugeot SA shares at an attractive price
* Firm pace of investments (EUR271 million excluding PSA stake increase) and
disposals (EUR282 million), helping to diversify FFP's assets and laying the
foundations for the future
* Ongoing support for the creation of Stellantis, which took place on 16
January 2021
* Dividend of EUR 2.35 per share
* FFP to be renamed Peugeot Invest following the General Meeting of 31 March
2021
The Board of Directors, chaired by Robert Peugeot, met on 24 March 2021 and
approved the 2020 financial statements.
NAV per share: EUR179.6, representing a return of 1.3%
At 31 December 2020, net asset value (NAV) per share was EUR179.6 as opposed to
EUR179.5 at 31 December 2019, representing a year-on-year return of 1.3%
(including dividends). The value of FFP's stake in Peugeot SA benefited from
the 5% increase in its share price in 2020, but also the move to increase FFP's
stake in spring 2020 when stockmarkets declined. Movements in the value of
listed investments were mixed. Companies exposed to the aerospace industry,
such as Safran and Lisi, saw significant declines, while the performances of
other listed companies balanced each other out. The value of unlisted assets
rose significantly, although gains were offset to a large extent by the decline
in the dollar.
EUR m 2020 2019
Gross Asset Value 5,587 5,265
- Of which Peugeot 1810 2,219(1) 1,820
Net Asset Value 4,476 4,472
- NAV per share EUR179.6 EUR179.5
Dividends received by FFP
and its wholly owned
subsidiaries 23 116
Consolidated net profit
attributable to equity
holders of the parent 134 131
(1) Value at 31 December 2020 of FFP's 76.5% stake in Peugeot 1810 (which holds
stakes in Peugeot SA and Faurecia).
Consolidated net profit, group share of EUR 134m
Consolidated net profit attributable to equity holders of the parent amounted
to EUR134 million in 2020, as opposed to EUR131 million reported in 2019.
It benefited from the value creation of the equity swap put in place to acquire
a 2% stake in Peugeot SA. The increase in the value of that derivative
instrument, which was settled on 9 December 2020, boosted net profit
attributable to owners of the parent by EUR105 million on a net basis.
Dividends received from investees fell significantly, the companies choosing to
protect their balance sheets in a Covid-19 crisis context.
2020 highlights
Peugeot 1810
In 2020, FFP and its majority shareholder pooled their Peugeot SA shares within
a joint subsidiary called Peugeot 1810. FFP also transferred its Faurecia
shares to that entity. FFP owns a 76.5% stake in Peugeot 1810.
In March 2020, FFP entered into an equity swap agreement with an investment
service provider, entitling it to acquire a 2% stake in Peugeot SA, i.e. 18.1
million shares, for EUR228 million. The equity swap was settled early in
December 2020 in the context of the merger between Peugeot SA and Fiat Chrysler
Automobiles NV, which was completed on 16 January 2021.
As at 31 December 2020, Peugeot 1810 held 14.4% of Peugeot SA's capital and
19.4% of its voting rights.
Holdings
In July 2020, FFP sold a 1% stake in SEB (www.groupeseb.com) through an
accelerated bookbuilding process. The shares were sold at EUR138.5 per share,
resulting in total proceeds of EUR69.3 million. After the disposal, FFP remains
a significant shareholder and holds 4.0% of SEB's capital and 5.2% of its
voting rights. The divested shares produced a return of 5.0x over 16 years
(including dividends).
In November 2020, under a forward sale agreement due to settle in March 2021,
FFP sold a third of its stake in Safran (www.safran-group.com), i.e. 1.1
million shares for EUR132 million. Having been a shareholder of the Zodiac
group since 2006, FFP supported its 2018 merger with Safran, creating a world
leader in the aerospace industry. Since the merger, FFP has achieved an IRR of
14 % on its investment in Safran. The forward sale agreement was settled on 5
March 2021.
Co-investments
2020 was another busy year in terms of co-investments with both new and
existing partners. FFP invested EUR126 million in promising businesses, funded
by EUR156 million of disposals that crystallised value created by the assets in
question.
The new co-investments took place in the healthcare and digital sectors:
* FFP invested $15 million alongside Venturi in LivSpace (www.livspace.com), an
Indian digital platform that is a leading one-stop-shop for interiors.
* FFP also committed to invest $15 million alongside Crescent Point in Jianke
(www.jianke.com), a Chinese company specialising in the online distribution of
medicines that has recently developed a fast-growing remote consultation
platform.
* Alongside ArchiMed, FFP made a $17 million investment - as part of its EUR25
million commitment - in Polyplus (www.polyplus-transfection.com), a world
leader in transfection reagents. These are consumables used in the production
of cell and gene therapies, an area of the biotech industry seeing very rapid
growth.
FFP continued to make investments alongside JAB Holding (www.jabholco.com) in
petcare and alongside ArchiMed (www.archimed-group.eu) in healthcare, in a
total amount of EUR58 million. FFP also committed to invest $20 million in the
capital increase of JAB Holding's restaurants platform, via preferred stock
called in early 2021.
Those new developments were funded by some significant disposals:
* In September 2020, PAI Partners completed the sale of Roompot
(www.roompot.com), a Dutch holiday village operator in which FFP had invested
alongside PAI in 2016. The transaction produced proceeds of EUR30 million,
representing a return of 3.4x for FFP.
* After investing $25 million in a new capital increase by Lineage
(www.lineagelogistics.com) in January 2020, FFP sold the shares it bought in
April 2017 through its initial $25 million investment for $85 million,
representing a net return of 3.4x.
* JAB Holding provided liquidity to investors by converting their interests
into directly held shares in Keurig Dr Pepper (www.keurigdrpepper.com). As a
result of this transaction, FFP received EUR55 million in cash and EUR106
million in KDP shares subject to lock-up periods expiring in 2021.
Private equity funds
FFP continued its private equity strategy, committing a total of EUR106 million
to 10 funds: Consonance II, Incline V, Insight Partners XI, K V, Webster
Capital V, Montefiore V, Summit Partners Europe III, Croissance IV, Alpha
Diamant IV and Good Harvest Venture I.
In 2020, calls for funds amounted to EUR106 million. Funds carried out a number
of disposals, leading to distributions of around EUR40 million during the
year.
Real estate
FFP maintained its strategy in the real estate sector, focusing on long-term
growth trends such as low- carbon construction and coliving.
In June 2020, FFP increased its real-estate exposure by investing EUR25 million
in Arboretum, which is building a low-carbon campus containing 126,000 m² of
office space. The development's structure will be made of solid wood and it is
located in La Défense, offering attractive workspaces for 8,000-10,000
people.
In November 2020, FFP made a co-investment with LBO France's real-estate team
in Colonies (www.livecolonies.com), committing EUR15 million. Colonies is a
leading French player in coliving, a new mode of communal living halfway
between shared accommodation and short-term furnished apartment rentals.
In 2020, FFP continued its partnership with ELV Associates (www.elvassoc.com)
in the United States. As part of that partnership, FFP made five new
investments totalling $15.2 million, while five disposals took place raising a
total of $18.6 million and generating IRRs of between 13% and 24%.
Debt
In September 2020, FFP carried out its first bond issue in the form of a US
Private Placement (USPP), consisting of EUR150 million of 10-year bonds paying
a fixed annual coupon of 2.60%. The USPP significantly extended the average
maturity of FFP's debt and diversified its funding sources. FFP is using the
proceeds to pursue its investment strategy.
At 31 December 2020, FFP's net debt amounted to EUR1,023 million as opposed to
EUR763 million at 31 December 2019. Unused credit facilities amounted to EUR741
million at the end of 2020.
Post-closing events
The merger between Peugeot SA and Fiat Chrysler Automobiles to create
Stellantis (www.stellantis.com) took effect on 16 January 2021. Stellantis now
has 14 brands with combined sales totalling 6 million vehicles in 2020, making
it one of the world's largest automotive groups. It is listed on the Paris,
Milan and New York stock exchanges.
In March 2021, Stellantis distributed its stake in Faurecia (www.faurecia.com)
to its shareholders. As a result, Peugeot 1810, a 76.5%-owned subsidiary of
FFP, now owns a 3.14% stake in Faurecia.
In February 2021, FFP acquired a non-controlling interest in International SOS
(www.internationalsos.com) for $306 million. International SOS offers medical
prevention and security, access to healthcare and emergency intervention to
international companies and government organisations.
In February 2021, FFP sold all of its 10.1% stake in IDI (www.idi.fr), for
EUR27.2 million, representing a
return of 2.3x its investment.
After entering into a forward agreement to sell a third of its stake in
November 2020, FFP continued to reduce its stake in Safran
(www.safran-group.com), selling 1.1 million shares for EUR132 million.
In February 2021, FFP announced its intention to change its corporate name to
Peugeot Invest. With this clear and descriptive name, FFP is emphasising its
integral role in Peugeot's history, which began more than two hundred years
ago, and particularly its values as an industrial, family-run, responsible and
long-term investor. The name change will further strengthen FFP's credibility
as an investment company, developed over many years. The decision is subject to
approval by shareholders in the General Meeting on 31 March 2021.
Dividend
In the next General Meeting, the Board will propose an ordinary dividend of
EUR2.35 per share, an increase of 9% compared with last year.
Commenting on these results, Robert Peugeot, Chairman of FFP, said: "Of course,
2020 was dominated by the Covid-19 crisis, and I am delighted that our teams
were able to get through it without any major problems, remaining fully
operational by working remotely. Despite the impact that the crisis has had on
the valuations of aerospace companies, the quality and diversity of our other
investments meant that we increased our net asset value in 2020.
January 2021 was an important milestone in FFP's industrial history with the
creation of Stellantis and the distribution of its stake in Faurecia, which
means that we are now a direct shareholder in this major automotive parts
manufacturer. We showed our confidence in both those companies' prospects by
adding to our stake in spring 2020.
Finally, I look forward, subject to shareholder approval, to adopting our new
name of Peugeot Invest, which reflects our history, our future, our assets and
our investment expertise.
Bertrand Finet, FFP's Chief Executive Officer, added:"2020 was a very busy
year, and one in which we continued to implement our strategy. FFP showed its
agility in a very volatile market environment. We increased our stake in the
PSA Group by 2% at the bottom of the market, we sold 20% of our stake in SEB
and we entered into a forward agreement to sell a third of our stake in Safran,
for which we carried out further disposals in the last few days.
We also continued to prepare for the future by making almost EUR271 million of
new investments, across three continents and in promising industries such as
healthcare, digital and logistics, as well as in the real-estate sector through
investments in coliving and low-carbon construction.
2020 was also the year in which we defined our position in terms of ESG,
adopting a roadmap featuring initiatives that we will implement between now and
2023."
Net asset value at 31 December 2020
En MEUR % de détention Valorisation % Actif Brut Réévalué
PSA - actions 2 203 39,4%
Faurecia 16 0,3%
Peugeot 1810 (A) 76,5% 2 219 40%
Lisi 5,1% 55 1%
CID (Lisi) 25,4% 153 3%
SEB S.A. 4,0% 301 5%
Safran 0,8% 376 7%
Orpéa 5,0% 351 6%
CIEL group 6,9% 9 0%
Tikehau Capital 2,3% 80 1%
SPIE 5,3% 151 3%
Participations non cotées 147 3%
Participations (i) 1 625 29%
Fonds de capital
Investissement 424 8%
IDI 10,0% 31 1%
Véhicules de capital-
investissement (ii) 455 8%
KDP 114 2%
Co-investissements
non cotés 585 10%
Co-investissements (iii) 699 13%
Immobilière Dassault 19,8% 79 1%
Actifs immobiliers non
cotés 414 7%
Immobilier (iv) 493 9%
Autres actifs & passifs
financiers 8 0%
Trésorerie 88 2%
Autres actifs (v) 96 2%
Actif Brut Réévalué Investissements
(i)+(ii)+(iii)+(iv)+(v) = (B) 3 368 60%
Actif Brut Réévalué = (A) + (B) 5 587 100%
Endettement (C) 1 111
Actif Net Réévalué = (A) + (B) - (C) 4 476
soit par action 179,6 EUR
Details of the valuation methods used can be found at www.groupe-ffp.fr and in
the FFP Universal Registration Document.
About FFP:
FFP is an investment company listed on Euronext, majority-owned by
Etablissements Peugeot Frères. FFP is one of the leading shareholders in
Stellantis and pursues a policy of establishing minority shareholdings and
long-term investments. FFP holds interests in listed companies (such as SEB,
Safran, ORPEA, LISI and SPIE), non-listed companies (such as International SOS,
Tikehau Capital Advisors, Acteon and Total-Eren), co-investments (such as IHS
and JAB Holding), private equity funds and real estate (SIGNA Prime Selection
and Immobilière Dassault).
www.groupe-FFP.fr
Investor contact
Sébastien Coquard +33 1 84 13 87 20
sebastien.coquard@groupe-FFP.fr
Press contact
Vincent Deshayes +33 7 85 94 61 49
Vincent.deshayes@havas.com
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