Being a Eurazeo shareholder naturally means owning a fraction of the Company and benefiting from dividends and other features that allow Eurazeo to offer shareholders an attractive return. Beyond its investment role, Eurazeo is committed to offering shareholders quality information, substantive dialogue and the highest standard of governance.
Sustained NAV growth over time
Net Asset Value is a key indicator for Eurazeo, used for assessing the fundamental value derived by the Company from its assets and measuring its growth, and as such the pace of value creation. It is calculated twice a year, in conjunction with the annual and half-yearly financial statements.
It is based on net equity as presented in the Eurazeo financial statements, adjusted to include investments at their estimated fair value in accordance with the recommendations set out in the International Private Equity Valuation Guidelines (IPEV).
NAV was €78.2 per share at December 31, 2017, increasing by 13.5% over 2017 (adjusted only for the bonus share grant) and by 15.2% adjusted for the bonus share grant and the dividend paid in 2017. On this basis, average annual NAV growth since 2011 is 16.1%.
Eurazeo, an active share buyback policy
Eurazeo has a long-standing and active share buyback policy, particularly when justified by the discount, i.e. the difference between NAV per share and the share price, within the limits of authorizations available to it.
Most of the shares bought back in this way are canceled during the year. This practice serves to increase NAV per share and in turn creates shareholder value.
Regular dividend distributions and bonus share grants
Eurazeo has a long-term dividend policy.
Since 2002, the dividend per share has grown by an average of 6.2% each year. When the circumstances justify it, exceptional dividends are paid in addition to ordinary dividends. For 2017, a dividend of €1.25 per share (compared with €1.20 last year) is proposed to the Shareholders’ Meeting.
This form of shareholder return was once again backed up this year by the grant of bonus shares (1 for 20 proposed at the April 2018 Shareholders’ Meeting).
Total Shareholder Return, the best performance indicator
Total Shareholder Return is in fact the most pertinent indicator of value creation for shareholders. On top of change in the share price, the TSR also takes dividends into account.
In 2017, in view of the very sharp increase in the share price, it increased by 47%. Over the 15 years between June 2002 and the end of 2017, the TSR has increased 381%, i.e. an average of 11% each year a particularly attractive performance, well out-performing that of the major indices like the CAC 40 (+126%).
This demonstrates Eurazeo’s ability to successfully perform its investment role: offer an attractive performance over time with a controlled level of risk.
Quality information, increasingly attune with your expectations
In addition to its investment role, Eurazeo aims to provide its shareholders and especially its individual shareholders with the assurance of quality information, increasingly attune with their expectations. To this end, the Company conducted a survey ahead of the Shareholders’ Meeting, with a view to better understanding their wishes.
A large array of information is available to shareholders. The recipient of several awards, information takes various complementary forms including the website, the shareholders’ letter, notices and press releases, the activity report, the registration document and presentations.
Eurazeo regularly updates its information formats. Having digitalized its content and started posting on social media, the accent is now on video and real time: going forward, the most important press releases will be accompanied by videonews, and the annual and half-yearly results will be presented in a web-conference after their release.
Eurazeo also guarantees its shareholders shared documents and videos containing the highlights of strategic and financial information.
Our second commitment to our individual shareholders is to offer them various means of substantive dialogue, about our strategy or our results for instance, in the same way as for institutional investors or the shareholder families represented on the Board of Directors.
In addition to the Annual Shareholders’ Meeting, a key moment for exchanges of this nature, we listen to shareholders who wish to get in touch for this purpose throughout the year.
Moreover, each year Eurazeo goes on the road to meet its shareholders, in Paris during the Actionaria Trade Fair ( November 23, 2018) and in two regional cities Lyon (October 11, 2018) and Marseille (December 10, 2018).
Starting in July 2018, web conferences will be organized in conjunction with the release of the annual and half-yearly financial statements, including a real-time Q&A session. The only condition for participating is to register at firstname.lastname@example.org.
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Highest standard of governance
Eurazeo consistently strives to apply the highest standards of governance in its investment activities as in its relationship with shareholders. Its ethics and sense of responsibility take many forms, such as its attachment to the presence of independent directors, who represent a majority on its Board, and its unique commitment among Private Equity companies in the fields of Social and Environmental Responsibility.