Eurazeo: A Year of Investment and Strong Value Creation

Regulatory News: Michel David-Weil, Chairman of the Eurazeo Supervisory Board declared: "Whilst respecting its prudential rulings, in 2006 Eurazeo (Paris:RF) invested more than 1.3 billion euros, the highest amount ever since its creation. In addition, in line with the announced strategy, the Company made its first investments outside France in Italy with Banca Leonardo. The market has welcomed these achievements and the share progressed 37.5 per cent in 2006 compared to the French CAC40 index which grew 17.5 per cent. Under these circumstances, a dividend of €1.10 will be proposed to the Annual General Meeting, representing a 16.1 per cent increase in distribution. Through the investments carried out on Europcar, and in 2007 on APCOA, Eurazeo clearly demonstrates its capacity to acquire and develop pan-European companies . Patrick Sayer, Chairman of the Eurazeo Executive Board, said: "In addition to the acquisitions made in 2006, Eurazeo’s teams have pursued an active hands on approach to the development of our portfolio companies, in particular Rexel, ANF and B&B Hotels. Regarding Europcar, we announced the first new developments on the very day of the acquisition and rapidly thereafter concluded a major strategic agreement with National and Alamo. Through the sale of its portfolio of funds, Eurazeo finalized the refocusing of its activities and successfully raised its first co-investment fund, Eurazeo Co-Investment Partners (ECIP). Thus, with the divestments of Fraikin and Eutelsat, which closed early 2007, and in line with the sale of Terreal end 2005, Eurazeo will have achieved an IRR of 53 per cent on its initial private equity investments.” The Eurazeo Supervisory Board chaired by Michel David-Weill met on Thursday March 22, 2007 to review the annual accounts for 2006 prepared by the Executive Board, and approved the proposed dividend distribution for the year ended December 31, 2006. 2006 Results Consolidated accounts The 2006 consolidated accounts show a recurrent income Group share up 25 per cent at €262.6 million, versus €210.6 million in 2005. Including exceptional items linked to disposals and other non recurrent items, net income Group share after tax comes to €305.2 million against €700.6 million in 2005 (IFRS). 2005 results included, amongst other things, the disposals of Terreal and IRR as well as the recapitalisation of Eutelsat. € million, as of December 31 2006  2005  Change Ordinary income 1 889.1  689.7  +173.9 % Other operating income and expenses -1 455.2  -398.8  +264.9 % Financial expenses - 153.6  - 87.1  + 76.4 % Share of income in companies accounted for by the equity method 101.1  53.2  + 90.0 % Tax and other - 79.0  - 34.2  +131.0 % Recurrent income 302.5  222.8  + 35.8 % Recurrent income Group share 262.6  210.6  + 24.7 % Non-recurrent income 48.4  610.6  NS Net income 350.8  833.4  NS Net income Group share 305.2  700.6  NS Company accounts Net Company profit after tax reached €241.6 million compared to €434.5 million in 2005. Activity – 2006 highlights With more than €1.3 billion invested (Eurazeo share of equity), 2006 was not only the most important year ever for Eurazeo in terms of investments, but it was also a year marked by a very dynamic development of the portfolio companies. With the agreed or finalized disposals of Fraikin, Eutelsat and the funds portfolio, Eurazeo enters 2007 with a strong cash position. The investment in Europcar, the leading European car rental outfit, was the largest LBO in France in the first half of 2006 and a key step for Eurazeo; with its partners (ECIP), it acquired this quality asset, for an enterprise value of €3.1 billion. Immediately following the acquisition, Europcar signed strategic agreements with both National and Alamo. The purchase of the European activities of these companies significantly reinforces Europcar’s position in Europe and the signed transatlantic alliance results in the creation of the world’s third largest car rental network. 2006 was also the year of Eurazeo’s first investments outside of France with a 20 per cent stake in Gruppo Banca Leonardo and the simultaneous creation of Euraleo, a 50/50 joint venture with Gruppo Banca Leonardo, to bank on Eurazeo’s private equity know-how and expertise and Gruppo Banca Leonardo’s extensive knowledge of the Italian market. Whilst carrying out these new investments, Eurazeo’s teams have continued their in-depth development work with the portfolio companies such as Rexel and B&B Hotels. Rexel’s pro forma full year sales have increased above the €10 billion mark, with a continuous margin improvement. Pursuing its private equity strategy, Eurazeo launched its first co-investment fund, Eurazeo Co-Investment Partners (ECIP), with a first closing of €345 million during the summer of 2006. The final closing took place in March 2007 at €500 million. Confident in the management of Danone and the outlook of the company, Eurazeo further strengthened its position as the leading shareholder in the Group in which it now holds 5.3 per cent of the capital and over 9 per cent of voting rights. For the same reason, Eurazeo increased its stake in Air Liquide to 2.1 per cent. At the end of 2006, Eurazeo signed agreements to sell Eutelsat and Fraikin to the Caisse des Dépôts and CVC respectively, both transactions were finalized mid-February 2007. At the same time, Eurazeo took a 19 per cent stake in Financière Truck Investissement (FTI), alongside CVC, for €58.1 million. Eurazeo also exited its portfolio of funds and its last remaining assets in Asia. Distribution A 1.10 euro dividend will be proposed to the Annual General Meeting, which would represent a distribution of 56.4 million euros versus 46.8 million euros for the year 2005, up 16.1 per cent. In addition, the Supervisory Board authorised the Executive Board to proceed with the allocation of one bonus share for every 20 shares held. About Eurazeo With more than €6 billion in diversified assets and a market capitalization of €5.5 billion, Eurazeo is a leading listed European investment company. Eurazeo is a majority or key shareholder in companies such as Europcar, Rexel, B&B Hotels and ANF. Eurazeo also holds significant stakes in Danone, Veolia and Air Liquide. Eurazeo is quoted on Eurolist by Euronext Paris (code ISIN: FR0000121121, code Bloomberg: RF FP, code Reuters: EURA.PA). Eurazeo 2007 agenda Annual General Meeting – May 3, 2007 2007 Half-Year Revenues – August 13, 2007 2007 Half-Year Results – August 19, 2007 For more information, please visit our website: www.eurazeo.com