FFP's Board of Directors, chaired by Robert Peugeot, met on 15 March 2019 and
approved the 2018 financial statements.
NAV per share: EUR150.3, down 2.6%
At 31 December 2018, net asset value per share was EUR150.3 as opposed to
EUR154.4 at 31 December 2017, representing a year-on-year decrease of 2.6%,
resulting mainly from the decline in financial markets at the end of 2018.
Against the volatile background, Peugeot SA and Safran's share prices rose
while performance among other listed investments was more mixed. Unlisted
assets rose in value in 2018, particularly recent co-investments and the
portfolio of private equity fund investments.
EUR m 2018 2017
Gross Asset Value 4,317 4,335
- of which Peugeot SA 1,572 1,430
Net Asset Value NAV 3,746 3,871
NAV per share EUR150.3 EUR154.4
(by FFP and its wholly owned
subsidiaries) 83 77
Consolidated net profit attributable
to equity holders of the parent 115 222
Consolidated net profit affected by changes in accounting standards
Consolidated net profit attributable to equity holders of the parent amounted
to EUR115 million in 2018, as opposed to EUR222 million reported in 2017.
The variation was mainly due to the change in accounting standards in 2018,
with IFRS 9 replacing IAS 39: since capital gains realised on holdings are no
longer recognised in profit and loss but in equity, the 2018 profit figure does
not include the EUR240 million of capital gains realised on the sale of Zodiac
Aerospace and ORPEA shares. In 2017, earnings included EUR147 million of
capital gains on disposals of Sanef, Ipsos and Onet shares.
Dividends from equity investments rose to EUR83 million in 2018 as opposed to
EUR77 million in 2017.
On 27 February 2018, FFP tendered all of its Zodiac Aerospace
(www.zodiacaerospace.com) shares to the public exchange offer initiated by
Safran (www.safrangroup.com). As a result, FFP received 2,832,492 Safran
shares, which are non-transferable for three years, along with EUR141 million
in cash. It also reinvested EUR31 million in Safran ordinary shares.
F&P SAS, a joint venture between FFP and Fonds Stratégique de Participations
(FSP) acting in concert with respect to Safran, is a director of the firm. It
is represented on Safran's Board of Directors by its Chairman, Robert
In July 2018, FFP sold a 0.85% stake in ORPEA (www.orpea.com) at EUR116 per
share, making a total of EUR63.8 million. Having become a shareholder in ORPEA
in 2011, FFP achieved a multiple of 4x on the disposal. FFP still holds a 5%
stake and a seat on ORPEA's board.
In June 2018, FFP invested an additional $130 million alongside JAB Holding
(www.jabholco.com) to continue supporting the group's expansion strategy in the
beverages sector following its acquisition of Dr Pepper Snapple Group. FFP
therefore has exposure to the new Keurig Dr Pepper (KDP) entity, but also to
Jacobs Douwe Egberts, the world's largest roast coffee producer with $6 billion
of revenue and a brand portfolio including Jacobs, Douwe Egberts, l'Or and
Café Grand-Mère. JAB Holding acquired the Prêt à Manger café chain, adding
it to its fast food division alongside Panera Bread, Caribou Coffee and
FFP also invested $10 million alongside IDI Emerging Markets in Big Bottling
Company, which bottles and sells the BIG and Volt non-alcoholic carbonated
drinks in Nigeria.
In October 2018, FFP increased its exposure to the healthcare industry by
joining forces with ArchiMed (www.archimed-group.eu). FFP committed to invest
EUR80 million in the MED Platform 1 fund, for a target fund size of EUR800
million, with the potential to double its exposure by co-investing in selected
companies. This fund, managed by healthcare and investment professionals, aims
to accelerate the growth of European healthcare companies.
Finally, FFP invested EUR20 million alongside PAI Partners in Asmodee
(www.asmodee.com), the world number three in board games and collectable
FFP continued its private equity strategy, committing for 9 new funds for a
total of EUR122 million. FFP notably forged new relationships with five private
equity firms. In the USA, FFP made a total commitment of $45 million to the
Webster Capital IV, Quad V and K4 funds. In Europe, FFP made a EUR15 million
commitment to the FAPI III fund and a EUR12 million commitment to the Astorg
FFP continued its partnerships with four other private equity firms, making
total commitments of EUR58 million to their successor funds, i.e. growth
capital funds Keensight V and Warburg Pincus Global Growth, venture capital
fund Idinvest Digital III and French impact fund Alter Equity II.
FFP continued to develop its real-estate investments. It invested an additional
$37 million in six residential and commercial real-estate projects in
Washington, Atlanta, Charleston, Savannah and Fairfield with ELV
(www.elvassoc.com), a residential and commercial real-estate developer. The
first disposal, completed in Atlanta for $5 million, produced an annualised
return of 22%.
FFP also invested EUR15 million in French real-estate fund White Stone VII,
managed by LBO France.
In December 2018, FFP cancelled 150,000 of its own shares held in treasury,
representing 0.60% of its share capital. FFP's share capital now consists of
At 31 December 2018, FFP's debt amounted to EUR571 million as opposed to EUR464
million at 31 December 2017. Unused credit facilities amounted to EUR415
million at the end of 2018.
Post-balance sheet events
In February 2019, FFP sold its stake in DKSH, a leading swiss provider of
market expansion services focused on Southeast Asian markets, for a total of
CHF212 million. FFP's investment in DKSH dated from 2008 and the sale produced
a total investment multiple of 4.3x and an average annual return (IRR) of
Since the start of the year, FFP has also made commitments to two real-estate
funds, i.e. TREO managed by Tikehau Capital, and Icawood, which specialises in
low-carbon real-estate development.
In the next AGM, the Board will propose an ordinary dividend of EUR2.15 per
share, an increase of 7,5%.
Commenting on these results, Robert Peugeot said: "Although market conditions
were tougher this year, FFP once again showed the quality and resilience of its
assets, which outperformed stockmarket indexes.
We continued to strengthen internally, and the FFP team now consists of 27
professionals in Paris and London who help to originate, execute and monitor
PSA's earnings hit an all-time high, driven by the excellent performance of
Peugeot Citroën DS and the ongoing effective integration of Opel/Vauxhall into
We supported Safran's takeover of Zodiac Aerospace, in which we had been a
shareholder for 12 years. We are confident that the combination of those two
companies, creating one of the world leaders in aerospace equipment, is already
In 2018, we also maintained our sector and geographical diversification
strategy through co-investments, commitments to private equity funds and
real-estate projects. We strengthened our partnership with JAB Holding by
making significant further investments in its funds.
At the start of this year, we sold our stake in DKSH, after 11 years
accompanying this family-controlled Swiss company whose business is focused on
Southeast Asia. Over that period, our investment created EUR280 million of
value for our shareholders.
We are maintaining our policy of managing debt in a reasonable way, and we
still have substantial investment capacity to capture new opportunities.
Although the macroeconomic environment remains uncertain, I am happy to see the
rerating of our listed investments since the beginning of the year."
Net Asset Value at 31 December 2018
In EURm * % hold Valuation % Gross
Peugeot SA (A) 9.3% 1,572 36%
Lisi a) 5.1% 56 1%
CID (Lisi) b) 25.3% 157 4%
SEB S.A. a) 5.0% 284 7%
Safran a) 0.7% 338 8%
Orpéa a) 5.0% 291 7%
CIEL group a) 7.5% 19 0%
DKSH a) 5.9% 230 5%
Tikehau Capital a) 3.0% 61 1%
SPIE a) 5.5% 99 2%
Non listed holdings c) 110 3%
Holdings (i) 1,646 38%
funds d) 247 6%
IDI a) 10.1% 29 1%
vehicules (ii) 275 6%
(iii) c)d) 598 14%
Dassault a) 19.8% 69 2%
FFP-Les Grésillons e)100.0% 19 0%
Other Real Estate c) 94 2%
Real Estate (iv) 181 4%
assets a; g) 35 1%
Cash 10 0%
Other Assets (v) 45 1%
(iv)+(v) = (B) 2,745 64%
Gross Asset Value
= (A) + (B) 4,317 100%
Debt (C) 571
Net Asset Value
= (A) + (B) - (C) 3,746
i.e. per share 150.3 EUR
* letters refer to valuation methods. Details on www.groupe-ffp.fr
FFP is an investment company listed on Euronext, majority-owned by
Etablissements Peugeot Frères and led by Robert Peugeot. FFP is one of the
leading shareholders in Peugeot SA 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 Tikehau Capital Advisors and Total-Eren), co-investments (such as IHS
and JAB Holdings) and private equity funds.