Results for the first half of 2020: FFP continues to develop despite the
The Board of Directors, chaired by Robert Peugeot, met on 10 September 2020 and
approved the financial statements for the first half of 2020.
NAV per share: EUR142.1, down 21%
At 30 June 2020, net asset value per share was EUR142.1 as opposed to EUR179.5
at 31 December 2019, representing a decrease of 21% in the first-half period,
notably impacted by a decline in the valuations of automotive and aerospace
shareholdings. Companies in other sectors held out well overall.
In EUR millions H1 2020 2019
Gross Asset Value 4,485 5,265
Net Asset Value 3,540 4,472
- NAV per share EUR142.1 EUR179.5
Consolidated net profit attributable to
equity holders of the parent (32) 103
A loss of EUR32 million in the first half of 2020
FFP reported a consolidated net loss attributable to equity holders of the
parent of EUR32 million in the first half of 2020, compared to a profit of
EUR103 million in the same period of the previous year. The decline in earnings
was mainly due to FFP's investee companies suspending or cutting their dividend
2020 started with an unprecedented health crisis that brought global growth to
a sudden halt.
Although the second quarter was tough, FFP's investee companies, the funds in
which it invests, its co-investments and its real-estate holdings proved
resilient for most of them, adjusting rapidly to the situation and avoiding any
FFP continued its strategy of geographical and sector diversification, with
investments in new geographies, in the real-estate sector and in fast growing
After FFP and its majority shareholder Etablissements Peugeot Frères announced
their support for the planned merger between Peugeot SA and Fiat Chrysler
Automobiles NV, announced on 18 December 2019, FFP entered into an equity swap
agreement with an investment service provider: under that agreement, with a
maturity at 30 June 2021, FFP may acquire an additional 2% of Peugeot SA's
capital for EUR228 million.
In the first half of 2020, FFP made new co-investments for a total of EUR80
million in Asia and the United States, further increasing its international
FFP committed $15 million to LivSpace, an Indian digital platform that is a
specialist one-stop-shop for interior design. FFP took part in a capital
increase to fund the company's growth. LivSpace currently operates in nine
cities in India and in Singapore, with an ambitious expansion plan across
FFP invested $25 million in a new capital increase by Lineage, a US specialist
in cold chain logistics and the world leader in its sector following several
acquisitions in Europe and Asia. FFP has been a shareholder of Lineage since
FFP also invested $15 million in Jianke, a Chinese specialist in online drug
distribution. More recently, the company has developed a fast-growing
telemedicine platform, which further accelerated during the Covid-19 crisis.
Companies controlled by JAB Holding reported strong activity in the first
- JAB Holding completed the first acquisitions of its pet care platform (NVA
and Compassion First), as a result of which it called $25 million of the $100
million committed by FFP in 2019;
- After two years as a listed company, KDP's share price increased by almost
25%, with initial distributions resulting in $60 million proceeds to FFP in
cash and Keurig Dr Pepper shares;
- Finally, in May 2020, JAB Holding floated JDE Peet's, one of the world's
leading players in the coffee industry. This was Europe's largest IPO since
Private equity funds
As regards to private equity funds, FFP continued its partnerships with certain
managers by renewing its commitment in their new funds (Summit Partners III,
Montefiore V, Insight Partners XI, K V and Impact Croissance IV). FFP also
forged new relationships in the United States, making commitments to the
healthcare fund Consonance II and business services fund Incline Partners V.
Overall, FFP made commitments totalling EUR87 million in Europe and the United
FFP continued to develop its real-estate investments in France and the United
In June 2020, FFP committed EUR25 million to Arboretum, which is building a
low-carbon campus containing 126,000 m² of office space. The campus' structure
will be made of solid wood and it is located in La Défense, offering
attractive workspaces for 8,000 to 10,000 people.
FFP continued to invest alongside ELV Associates in the first half of 2020,
with the acquisition of two new buildings in Washington and Boston for a total
of $5 million. Four disposals also took place, generating total proceeds of
$12.3 million and an average IRR of over 15%.
At 30 June 2020, FFP's debt amounted to EUR945 million as opposed to EUR793
million at 31 December 2019. Unused credit facilities amounted to EUR488
million at 30 June 2020.
On 27 July 2020, FFP sold 500,000 shares in SEB, representing around 1.0% of
the company's capital, for EUR138.5 per share. Proceeds from the sale totalled
EUR69.3 million, representing a return of 5x. FFP has been an investor in SEB
since 2004 and has reaffirmed its full support for the group's management and
its global profitable growth strategy. FFP will remain a major shareholder in
SEB, owning 4.0% of its capital and 5.2% of its voting rights, and will retain
a seat on its board of directors.
In July, FFP made a EUR25 million commitment alongside its partner Archimed in
Polyplus, the global leader in transfection reagents. These are consumables
used in the production of cell and gene therapies, an area of the biotech
industry experiencing very rapid growth.
PAI Partners completed the sale of Roompot in early September. FFP invested in
this Dutch holiday village operator alongside PAI in 2016. The disposal
generated c. EUR30 million proceeds for FFP and a return of over 3x.
PSA Group and Fiat Chrysler Automobiles today announced amendments to the terms
of their combination agreement, which will preserve the robustness of the
balance sheet of the future group Stellantis in the context of the current
sanitary crisis. The amount of estimated annual run-rate synergies 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 at today's Peugeot S.A. Supervisory Board
Commenting on these results, Robert Peugeot, Chairman of FFP, said: "FFP's
first-half results should be viewed in the light of the unprecedented public
health crisis that has brutally shaken the global economy. FFP has a portfolio
of high-quality companies operating in a wide range of sectors and positioned
to take advantage of growth trends.
We are proud to have supported various Covid-19 research initiatives via the
Immunov fund, and to have helped people affected by the crisis through the
Restos du Coeur and Oeuvres de Saint-Jean charities.
Given the consequences of the sanitary crisis, the terms of the merger between
PSA and FCA have been adjusted in order to further reinforce Stellantis' cash
position while still preserving the original economic and other balances. The
potential of this new group is further strengthened by the reassessment of
expected synergies. We are confident and look forward to Stellantis' creation
in early 2021."
Bertrand Finet, FFP's Chief Executive Officer, added: "Our team has continued
to implement FFP's strategy of making investments that are diversified in
sector and geographical terms, in industries that have been spared by the
current crisis such as healthcare and digital. We are determined to pursue this
strategy, confident that it will enable us to get through the current period in
the best possible way.
PSA's first-half results showed great resilience in a very difficult operating
environment. Safran and LISI responded rapidly to the crisis, limiting its
impact and protecting their liquidity. The rest of our assets held out well on
Most of our investee companies either suspended or cut their dividend payments,
which explains why FFP's earnings have fallen in 2020. FFP takes a cautious
approach to its financial position and will maintain its policy of keeping a
reasonable level of debt."
FFP is an investment company listed on Euronext, majority-owned by
Etablissements Peugeot Frères. 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, Acteon and Total-Eren), co-investments (such as IHS and JAB Holding),
private equity funds and real estate (SIGNA Prime Selection and Immobilière