Wendel (OTCPK:WNDL.F) 2025 Investor Day Transcript

Summary of Wendel 2025 Investor Day Company Overview - Company: Wendel (OTCPK:WNDL.F) - Event: 24th Investor Day held on December 12, 2025 - Focus: Transformation into a leading investment firm in private assets with a long-term value creation strategy [1][2] Key Points and Arguments Transformation and Strategy - Wendel has evolved into a prominent investment firm focusing on private assets, emphasizing an owner-operator mindset to create long-term value for stakeholders [2][3] - The company operates two main value creation engines: - Wendel Investment Managers: A diversified asset management platform with €46 billion in assets under management, targeting mid-market investments in Europe and the U.S. [3][4] - Wendel Principal Investment: Focused on direct investments, aiming for a 12%-16% return on assets with a net asset value of €5.3 billion [4][5] Financial Performance and Returns - Wendel has returned 20% of its market cap to shareholders over the past three years, totaling €700 million, with €574 million through dividends (a 51% increase from 2022) and €129 million through share buybacks [7][8] - The company aims to generate at least €7 billion in cash by 2030, allocating funds for asset management growth (€2.5 billion), new company investments (€1.7 billion), and shareholder returns (€1.6 billion) [8][9] Future Outlook - By 2030, Wendel anticipates that 50% of its intrinsic value will derive from asset management, with a focus on creating a self-sustaining growth model [11][12] - The dividend policy is set at 2.5% of the investment portfolio, with expectations of growth to 3.5% of the firm's global value [12][13] Additional Insights Portfolio and Valuation - Wendel's portfolio consists of eight companies, with a balanced diversification across industries and geographies [15][16] - The valuation methodology includes peer multiples and transaction multiples, ensuring a robust and transparent approach to asset valuation [17][18] Operational Changes - Starting January 1st, Wendel will implement a new operational model, leveraging the expertise of IK Partners to enhance performance and scale in both asset management and principal investments [20][21] - The focus will remain on sectors where Wendel has established expertise, with an emphasis on maintaining a lean operational structure [24][25] Market Challenges and Adaptation - The company acknowledges current market pressures, particularly in the aerospace and automotive sectors, and is adapting its strategy to enhance resilience and efficiency [50][51] - Wendel aims for organic growth of €700 million by 2030, with a clear plan of 41 actions to achieve this goal [55][56] Conclusion Wendel is positioning itself as a robust player in the private asset investment space, with a clear strategy for growth, shareholder returns, and operational efficiency. The focus on long-term value creation, combined with a diversified portfolio and strategic partnerships, sets a strong foundation for future success.