(Boursier.com) – The Board of Directors, meeting on September 10, 2020 under the chairmanship of Mr. Robert Peugeot, approved the accounts for the first half of 2020. As of June 30, 2020, NAV per share stood at 142 , 1 euros, compared to 179.5 euros at December 31, 2019, a decrease of 21% over the first half, impacted by the drop in valuations of automotive and aeronautical companies. Those present in other sectors of activity have generally held up well.
The consolidated net income group share for the first half of 2020 amounts to -32 ME, against 103 ME at June 30, 2019. The change in earnings is mainly explained by the elimination or decrease in dividends paid by FFP investments. .
The year 2020 started with an unprecedented health crisis that put a stop to global growth.
Despite a difficult second quarter, FFP’s holdings, the funds in which it is involved, its co-investments and its real estate investments have generally resisted well in this context, adapting quickly to the situation and avoiding any crisis. liquidity.
FFP continued its strategy of geographic and sectoral diversification by making new investments abroad, in real estate and in high-growth sectors.
Following on from the support provided by FFP and its majority shareholder Etablissements Peugeot Frères to the proposed merger between Peugeot SA and Fiat Chrysler Automobiles NV announced on December 18, 2019, FFP has entered into a contract with an investment services provider. equity swap maturing on June 30, 2021, enabling it to acquire an additional 2% of the capital of Peugeot SA for an amount of 228 ME.
In the first half of 2020, FFP made € 80 million in new co-investments which amplify the internationalization of the company, in Asia and the United States:
FFP has committed up to $ 15 million in LivSpace, an Indian digital platform specializing in the development of turnkey apartments. FFP participated in a capital increase aimed at financing the growth of the company. Today the company is present in 9 cities in India and Singapore, with an ambitious expansion plan in the rest of Asia.
FFP participated in a new Lineage capital increase for $ 25 million. Lineage is an American logistics company specializing in the cold chain, world leader in its sector after several acquisitions in Europe and Asia. FFP has been a shareholder since 2017.
FFP has also invested $ 15 million in Jianke, a Chinese company specializing in the distribution of
drugs online and which more recently developed a teleconsultation platform whose
rapid development accelerated during the health crisis.
Activity within companies controlled by JAB Holding was dynamic during the first half of the year:
– The first acquisitions of veterinary groups (NVA and Compassion First) have been finalized leading to a call for $ 25 million out of the $ 100 million committed by FFP in 2019;
– After 2 years of listing and an increase of nearly 25%, part of the Keurig Dr Pepper shares were sold or distributed to FFP, for a total value of $ 60 million;
– Finally, in May 2020, JAB Holding successfully completed the IPO of JDE Peet’s, a world leader in coffee. This is the most important operation in Europe since 2018.
Private equity fund
With regard to private equity funds, FFP continued its relations with certain managers by reinvesting in their new funds (Summit Partners III, Montefiore V, Insight Partners XI, K V and Impact Croissance IV). FFP has also broadened its business relations in the United States by subscribing to the fund specialized in health Consonance II and the fund specialized in business services Incline Partners V. In total, in the first half, FFP made a total commitment of 87 ME in Europe and the United States. Immobilier FFP continues to develop in real estate in France and the United States.
In June 2020, FFP committed up to 25 ME in Arboretum, a project which consists of building a low-carbon campus with 126,000 m (2) of offices. The solid wood structure of this project in the La Défense district will offer favorable working conditions and can accommodate 8,000 to 10,000 people.
In the first half of the year, FFP continued to invest alongside ELV Associates with the acquisition of two new buildings in Washington and Boston for a total of $ 5 million. Four disposals also took place for a total of $ 12.3 million and an average IRR of over 15%.
As of June 30, 2020, FFP’s financial indebtedness amounted to € 945 million compared to € 793 million as of December 31, 2019. Unused credit lines as of June 30, 2020 total € 488 million.
On July 27, 2020, FFP sold 500,000 SEB shares, representing approximately 1.0% of the company’s capital, at a price of 138.5 euros per share. In total, the proceeds from the sale amounted to EUR 69.3 million, ie a performance of 5x.
Supporting Groupe SEB since 2004, FFP has reaffirmed its full support for the group’s management and its strategy of profitable growth throughout the world. FFP will remain a significant shareholder of SEB (4% of the capital and 5.2% of the voting rights) and director of the company.
In July, FFP also committed up to EUR 25 million alongside its partner Archimed in Polyplus, the world leader in transfection reagents, consumables used for the production of cell and gene therapies, a rapidly growing biotechnological field. PAI Partners finalized the sale of Roompot in early September. FFP had invested alongside PAI in this operator of Dutch holiday villages in 2016. The transaction resulted in proceeds from the sale of 30 ME, ie a performance exceeding 3 times.
The PSA Group and Fiat Chrysler Automobiles today announced an adjustment to the terms of their merger project, which will help preserve the strength of the balance sheet of the new Stellantis group in the context of the current health crisis. The amount of synergies expected over a full year has been revised upwards, thus reinforcing the relevance of this merger. FFP and its majority shareholder Etablissements Peugeot Frères reaffirmed their full support for the merger project during the Supervisory Board of Peugeot S.A.
Commenting on these results, Robert Peugeot, President of FFP, said: “FFP’s first half results should be read in light of the unprecedented health crisis which has brutally impacted the global economy. FFP has a portfolio of companies We are proud to have supported various research initiatives against Covid-19 (Immunov fund) and to support populations affected by the effects of the health crisis (high quality present in a wide variety of sectors and positioned on growth trends). Restos du Coeur, Œuvres de Saint Jean). In view of the consequences of the health crisis, the terms of the merger between PSA and FCA have been adjusted in order to strengthen Stellantis’ cash position while maintaining the initial major balances. The potential of this new group is further strengthened by the reassessment of expected synergies. We are confident and delighted with the birth of Stellantis in early 2021. “
Bertrand Finet, Managing Director of FFP, continues: “Our strategy of diversified investments in terms of sectors and geographies has continued to be implemented by our teams in activities which are spared by the current crisis such as health and digital We are determined to continue it, convinced that it will allow us to get through this period as well as possible.
PSA’s first-half results demonstrated the group’s great resilience in a very difficult environment. Safran and LISI, for their part, reacted quickly to contain the effects of the crisis and protect their liquidity. The rest of our assets held up well overall.
Most of our holdings have canceled or lowered their dividend, which explains the drop in FFP’s results in 2020. FFP manages its balance sheet prudently and will continue its policy of reasonable management of its financial debt. “
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