Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — Investor Day (May 2019)
155 slides from Tikehau Capital Sca's investor day presentation, May 15, 2019
Slide 1: Tikehau Capital Capital Markets Day
TIKEHAU CAPITAL CAPITAL MARKETS DAY rua” » TIKEHAU May 15', 2019 Ix)
Slide 2: Disclaimer
DISCLAIMER By viewing or receiving or reading this Presentation (as such term is defined herein) or attending any meeting where this Presentation is made, you agree to be bound by the limitations, qualifications and restrictions set out below: The existence and content of the presentation that follo
Slide 3: Disclaimer
DISCLAIMER The information contained in this Presentation is of an indicative nature and has not been verified independently. No representation or warranty, whether express or implied, is given regarding the accuracy, comprehensiveness or accuracy of the information and opinions contained in this Pr
Slide 4: Agenda
4°@) TIKEHAU AGENDA y 2:00 pm — 4:20 pm * Introduction to Tikehau Capital * Astrong Private Debt platform 201 9 * Group’s ambitions in Private Equity + Q8A CAPITAL Break MARKETS DAY ¥ 4:30pm — 6:00pm * Liquid Strategies, performing and scalable * Acceleration in Real Estate * TKO’s asset management
Slide 5: Today's speakers
TODAY’S SPEAKERS ? Mathieu Chabran Antoine Flamarion Henri Marcoux Carmen Alonso Cécile Mayer-Levi Debra Anderson — Maxime Laurent-Bellue Co-founder Co-founder Deputy CEO Head of Iberia Head of Private Debt Head of CLO Head of Senior Debt Guillaume Benhamou Member of the Andrea Potsios Emmanuel Lail
Slide 6: Introduction to Tikehau Capital
Introduction to Tikehau Capital Mathieu Chabran Co-founder Antoine Flamarion Co-founder Henri Marcoux Deputy CEO "l a ») CAPITAL MARKETS DAY a Tikehau Capital
Slide 7: Introduction to Tikehau Capital
Introduction to Tikehau Capital "l a ») CAPITAL MARKETS DAY LN Tikehau Capital
Slide 8: A growing pan-European diversified asset management and investment firm
A GROWING PAN-EUROPEAN DIVERSIFIED ASSET MANAGEMENT AND INVESTMENT FIRM Founded in 2004 IPO in March 2017 €22.4bn ( of AuM €2.3bn @) of shareholders’ equity (increasingly invested in the strategies of the firm) C.440 8) employees and partners BBB- / stable @ credit rating (Fitch) "I a ») CAPITAL MAR
Slide 9: Experienced and committed leadership team 1/2
EXPERIENCED AND COMMITTED LEADERSHIP TEAM 1/2 Co-Founders Tikehau Group Management Henri Marcoux Geoffroy Renard Deputy CEO General Counsel Antoine Flamarion Mathieu Chabran Emmanuelle Costa Head of Human Capital Laure Perreard Chief Financial Officer Dorothée Duron-Rivron ‘Anne Le Stanguennec Head
Slide 10: Experienced and committed leadership team 2/2
EXPERIENCED AND COMMITTED LEADERSHIP TEAM 2/2 Asset Management Executive Team 20600 @0e Bruno de Pampelonne Henri Marcoux Thomas Friedberger Frédéric Giovansili TIM Chairman TIM Co-CEO TIM Co-CEO& Co-ClO TIM Deputy CEO Head of Sales and Marketing Private Debt Private Equity Real Estate Liquid Strate
Slide 11: Human capital and corporate culture
HUMAN CAPITAL AND CORPORATE CULTURE Experienced and diversified teams, sharing a strong corporate culture y A 15-year entrepreneurial journey with a strong corporate culture - Apioneer spirit since company’s inception - “Create, not compete”, a free-thinking alternative benefitting all stakeholders
Slide 12: The core pillars of our business
THE CORE PILLARS OF OUR BUSINESS Our activity is driven by three powerful engines of revenue generation Growing Assets under Management Performance of Tikehau Capital funds PERFORMANCE Asset Management FEES / CARRIED Asset Management Activities INTERESTS() Activities Tvestment DIVIDENDS, COUPONS / \
Slide 13: What we do
WHAT WEDO Tikehau Capital’s activities are organised around 4 business lines Tikehau Capital has €22.4bn of AuMat the end of March 2019” Our offer Our objective Alternative and flexible investment solutions Optimise risk / return over the long term PRIVATE EQUITY REA ESTATE PRIVATE DEBT LIQUID STRAT
Slide 14: Total AuM has more than doubled
TOTAL AUM HAS MORE THAN DOUBLED IN 2 YEARS Group AuM target is to exceed €35bn in 2022 Total Assets under Management in €bn” r ae she 2004 2012 2013 2014 2015 2016 2017 Inception of Acquisition of Opening of Opening of Opening of Temasek and Listing of Tikehau Capital Salvepar London Office Singapor
Slide 15: Alignment of interests, a key differentiator
ALIGNMENT OF INTERESTS, A KEY DIFFERENTIATOR A strong shareholder base supporting a dynamic long term development Unique alignment of interests Tikehau Capital simplified organisation y A true entrepreneurial journey since Management and inception employees') 37% y Management is #1 shareholder of th
Slide 16: Tikehau Capital - Supervisory Board
TIKEHAU CAPITAL - SUPERVISORY BOARD Independence, experience and expertise 2 as i ri Christian de Labriffe Chairman of the Supervisory board Roger Caniard Head of MACSF financial management Fonds Stratégique de Participations, represented by par Florence Lustman Chief Financial Officer of La Banque
Slide 17: Well positioned to deliver growth
IO CAPITAL MARKETS DAY Tikehau Capital Well positioned to deliver growth
Slide 18: Well positioned to deliver growth with attractive financial profile
WELL POSITIONED TO DELIVER GROWTH WITH ATTRACTIVE FINANCIAL PROFILE y Management and employees are #1 shareholder group in TKO DNA of aligned interests y Management and employees will further participate in planned capital raise y TKO’s brand and scale are competitive advantages as LPs look to conso
Slide 19: Investment case
Profitable model INVESTMENT CASE Growth, profitability, value creation 1g mat Growing markets "l a ») CAPITAL MARKETS DAY a Tikehau Capital 5 Profitable is
Slide 20: Strong momentum ahead for alternatives
Growing markets Profitable model Capital allocation STRONG MOMENTUM AHEAD FOR ALTERNATIVES Continued projected growth in sector AUM and revenue generation Global AuM by product are ») CAPITAL MARKETS DAY LN Tikehau Capital Global revenue by product 27% 29% 25% 23% a 39% 3% ™ Alternative assets ™ Act
Slide 21: Allocations to alternatives are well-oriented
Growing markets Capital allocation ALLOCATIONS TO ALTERNATIVES ARE WELL-ORIENTED Appetite for alternatives remain high, especially for exposure to private assets Positive allocation intentions for alternative assets in 2019 Private assets to become significant contributors to portfolios K rie rr Whi
Slide 22: Preqin Private Capital Index vs S&P 500 TR
Preqin Private Capital Index return vs. S&P 500 TR Index (Rebased to 100 as of 31 December 2000) 450 400 350 300 250 200 150 100 50 0 Preqin Private Capital S&P 500 TR
Slide 23: The fastest growing player in its field
Profitable model Capital allocation THE FASTEST GROWING PLAYER IN ITS FIELD Very strong AuM growth track record compared to main listed European peers AuM evolution Since TKO’s IPO (end 2016 - 2018) €bn 16-18 CAGR 73 54 AuM at end-2016 i AuMat end-2018 ICAGR re) Partners Group at yy CAPITAL MARKETS
Slide 24: Tikehau Capital over-delivers on its strategy
ing markets Capital allocation TIKEHAU CAPITAL OVER-DELIVERS ON ITS STRATEGY... Group’s ambition Continue expansion to become a leading alternative asset manager Strategic objectives set at the IPO Achievements INCREASE Aum” €10bn €22.4bn OUR FOOTPRINT 19% 15% = Private debt Le r 37% 13% Real estate
Slide 25: Transforming its model
Growing markets Capital allocation .. AND HAS BEEN TRANSFORMING ITS MODEL A strategic transformation towards alternative asset management Anasset manager using its strong balance sheet as a growth and profit accelerator y To grow our AUM, Management Fees and Fee Related Earnings faster Asset Managem
Slide 26: Since IPO in 2017, the Group has moved fast forward
Growing markets SINCE IPOIN 2017, THE GROUP HAS MOVED FAST FORWARD Capital allocation i) AuM Net Op. Profit for Asset Management Gas >€100m GID €40m" 60%) > >€35bn Dp _€22br'” €10bn [] pb €55bn DP 430 €3.5m | | Pre-IPO 2018 2022E organic guidance Pre-IPO 2018 2022E organic guidance AuM from Internat
Slide 27: Strong fee-paying AuM base
Growing markets Profitable model Capital allocation STRONG FEE-PAYING AUM BASE €16.2bn of Fee-paying AuM at end-December 2018, primarily in close-ended funds €22.0bn’ (in €bn) WK y CAPITAL MARKETS DAY a Tikehau Capital €22.0bn Direct Inv.€1.6 Future ing AuM 1 Fee-paying AuM €16.2 2018 €20.4bn’ Non-f
Slide 28: How do we achieve >€100m of NOPAM in 2022?
Growing markets Profitable model Capital allocation HOW DO WE ACHIEVE >€100M OF NOPAM IN 2022? Guidance achievable with current scope y Future fee-paying AuM are an embedded source of future NOPAM contribution y Targeted 2018-2022 AuM growth will contribute significantly to NOPAM growth: average AM
Slide 29: Carried interests: strong profit engine ahead
Growing markets Profitable model Capital allocation CARRIED INTERESTS: STRONG PROFIT ENGINE AHEAD Strong increase in AuM eligible to carried interests in 2018 AuM eligible to carried interests y Carried interests are due at funds maturity, range usually between 10% and 20% of the funds’ total perfor
Slide 30: A strong balance sheet is key to align interests
A STRONG BALANCE SHEET IS KEY TO ALIGN INTERESTS Alignment of interests at the very core of Tikehau Capital’s DNA Since Tikehau Capital’s inception y Long-term perspective y Strategy aimed at creating value for shareholders + Management wants to remain #1 shareholder of the listed company ba Shareho
Slide 31: Historical levels of investment in TKO funds
HISTORICAL LEVELS OF INVESTMENT IN TKO FUNDS TKO’s balance sheet has been increasing its commitments in TKO funds Split of TKO commitments at year-end (drawn vs undrawn) AuM breakdown between 3rd party investors and TKO 20.4 16 17 QO. 10.7 = oO cs) 31-Dec-17 31-Dec-18 31-Dec-16 31-Dec-17 31-Dec-18 =
Slide 32: Our funds' vintages are also increasing in size
Proftable model OUR FUNDS’ VINTAGES ARE ALSO INCREASING IN SIZE Example for Direct Lending funds Sustained fundraising momentum Vintage funds increasing in size ™ Distributions ™ Fundraising Mark-to-market mExternal growth Record year for AM fundraising at +€4.3bn (vs. €3,1bn in 2017) 2013 2014-2015
Slide 33: A new chapter
IO CAPITAL MARKETS DAY Tikehau Capital A New Chapter 33
Slide 34: Why is Tikehau contemplating raising capital now?
WHY IS TIKEHAU CONTEMPLATING RAISING CAPITAL NOW? Alternative AM sector evolving rapidly, with growing attention from buyside investors TKO uniquely positioned to capture this opportunity Very high level of activity in Alternative space, which is shaping the competitive landscape 2 . : vi 2 | Increa
Slide 35: Rationale for the contemplated capital increase
RATIONALE FOR THE CONTEMPLATED CAPITAL INCREASE Increase Group exposure to TKO Participate in industry funds consolidation Proceeds of capital increase predominantly TKO evaluates opportunistic invested in TKO funds, which represents a bolt-on and accretive M&A that very accretive use of capital can
Slide 36: Increase exposure to TKO funds
@ INCREASE EXPOSURE TO TKO FUNDS Equity investors can increasingly benefit from the performance of our funds IO Key positives 1. Higher visibility on Investment portfolio revenue & profit generation 2. Greater shareholder exposure to private strategies 8. Increased balance sheet granularity 4. Align
Slide 37: A key lever to improve profitability
@ A KEY LEVER TO IMPROVE PROFITABILITY Business mix evolution towards higher yielding strategies expected to benefit Group profitability going forward Current Group exposure to TKO funds and target Investments into Tikehau Capital funds are growing rapidly expected returns # of investments 137 255 T
Slide 38: Participation in accretive acquisitions
@PARTICIPATION IN ACCRETIVE ACQUISITIONS Tikehau Capital wants to play a role in the alternative sector consolidation y Strong demand for illiquid alternatives has spurred M&A activity 2 8 & y Significant deal flow across Real Estate, Private Debt and Private Equity Trareacted AUM ébn) 2 8 Ss N umbe
Slide 39: What to look for in an acquisition?
@ WHAT TO LOOK FOR IN AN ACQUISITION? Strong track record in terms of opportunistic accretive and value-creating M&A operations ¥| Culture 4 Value creation v Strategic 4 Accretive M&A deals carried out by Tikehau Capital, and main benefits associated with each transaction IREIT (2016) Lyxor (2016) C
Slide 40: 2018 acquisitions enhanced TKO's profile
ast @ 2018 ACQUISITIONS ENHANCED TKO’S PROFILE Sofidy and ACE transactions are accretive on all metrics Total Assets Under Management (€bn i Fee-Paying AuM (€bn. I I 22.0 I I I I I I I I I I I B | a | I I TKO constant TKO published Pro forma @ I perim: Net operating profit from Asset Management acti
Slide 41: Smart integration of acquisitions
@ SMART INTEGRATION OF ACQUISITIONS Tikehau Capital is an attractive partner for potential M&A targets Upside for acquired companies IO Tikehau Capital’s assets Strong balance sheet ¥ Capacity to invest in funds deployed by acquired companies Asset Management Platform y Swift connection of acquired
Slide 42: A global geographic footprint
@ A GLOBAL GEOGRAPHIC FOOTPRINT A hardly replicable strategic asset to capture growth Paris y Staff: 357 (incl. Sofidy & ACE) y Headquarter y Regulated by the AMF y Dedicated teams: Private Equity, Private Debt, Real Estate, Liquid Strategies, Sales New-York y Staff: 2 y Regulated by the SEC asa Reg
Slide 43: International advisory board
@INTERNATIONAL ADVISORY BOARD Distinguished and complementary advisory board members with significant expertise in international affairs © & @ France Former Chief of Air For Supreme Allied Commander formation Noboyuki Idei Japan Former CEO of Sony Corporation ms Francois Pauly Luxembourg Chairman of
Slide 44: Concluding remarks
IO CAPITAL MARKETS DAY Tikehau Capital Concluding remarks 44
Slide 45: Favourable business mix rebalancing
FAVOURABLE BUSINESS MIX REBALANCING Focus on high fee-generating strategies Fundraising pipeline + 5t vintage of Direct Lending funds, mandates Private debt * Ongoing fundraising for Leveraged Loans funds * Launch of a 5th CLO * Fundraising of the real estate opportunities fund Real Estate * Ongoing
Slide 46: How to value a hybrid model?
HOW TO VALUE A HYBRID MODEL? Illustrative sum of the parts of Tikehau Capital before capital increase €bn Q Market cap. €2.1bn . Assets Value of investment] invested from portfolio €2.1bn TKO’s balance sheet [Value from recurring Multiple of FRE Fee Related of €70m? in 2022 Asset Earnings management
Slide 47: Contemplated capital raise expected to improve liquidity
CONTEMPLATED CAPITAL RAISE IS EXPECTED TO IMPROVE LIQUIDITY OF TIKEHAU CAPITAL Daily exchange volume as % of free float Assuming a free float increase of €400m Illustrative analysis TKO proforma TKO today Selected asset French companies With managers similar free float Index inclusion considerations
Slide 48: A major step forward for Tikehau Capital
A MAJOR STEP FORWARD FOR TIKEHAU CAPITAL The contemplated capital increase will accelerate the Group’s transformation, subject to market conditions Tikehau Capital today Aum €22.4bn” NOPAM €4Qm” y Strong organic AUM and profit growth pipeline y Sufficient financial means to achieve its 2022 organic
Slide 49: A strong Private Debt platform
IO CAPITAL MARKETS DAY Tikehau Capital Astrong Private Debt platform Carmen Alonso Head of Iberia Cécile Mayer-Levi Head of Private Debt Debra Anderson Head of CLO Maxime Laurent-Bellue Head of Senior Debt 49
Slide 50: Private debt opportunity
PRIVATE DEBT OPPORTUNITY The change in the current environment is expected to last... y Increasing financing needs y Consolidation of banking system y Reinforced regulation with increasing capital requirements and liquidity constraints A significant role in the current and future ..creating a sustai
Slide 51: Private debt AuM momentum
PRIVATE DEBT AUM MOMENTUM AuM Evolution Over 2013 - 2018 (at year-end, in €bn) 8.3 4.9 2.9 2013 2014 2015 2016 2017 2018 A major growth engine for Tikehau Capital "l a ») CAPITAL MARKETS DAY a Tikehau Capital Q1 2019 51
Slide 52: A synergistic private debt platform
A SYNERGISTIC PRIVATE DEBT PLATFORM €8.3bn +39% +2.9bn AuM at 31 March 2019 AuM growthin 2018 Fundraising in 2018 Direct Lending Leveraged Loans AuM of €43bn ‘AuM of €4.0bn European Direct Lending French SMEs European Leveraged Corporate Direct Lending Loans ES Core European Direct Lending funds: |
Slide 53: Direct Lending expertise
IO CAPITAL MARKETS DAY Tikehau Capital Direct Lending Expertise
Slide 54: A growing market segment
A GROWING MARKET SEGMENT Direct lending provides financing to mid-market companies for organic growth and acquisitions Growing Credit : Direct Lending | Cycle to ‘Opportunities: Rising Monitor Demand in Europe Increasing Private Equity Activity Reduced siclalsd Lending "l a ») CAPITAL MARKETS DAY N
Slide 55: Direct lending deal activity
Deals 123 120 113 Other European 107 107 26% 100 98 UK 88 38% 83 83 80 79 75 73 75 71 72 66 68 63 60 56 60 Total Germany Deals 41 41 11% 40 34 35 22 20 20 0 France Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 25% 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17
Slide 56: Strong investor appetite for our approach
STRONG INVESTOR APPETITE FOR OUR APPROACH Direct Lending at Tikehau Capital has a number of appealing features A leading Private Debt Franchise in Europe Disciplined Investment Approach in Direct Lending Attractive Pricing and Returns "l a ») CAPITAL MARKETS DAY a Tikehau Capital y €8.3bn under mana
Slide 57: Strong interest from a diversified investor base
STRONG INTEREST FROM A DIVERSIFIED INVESTOR BASE 103 investors from diverse geographies invested in our recent Direct Lending fundraising Strong proportion of repeat investors 70% of non-French investors® Existing Investors 45% New Investors 55% Breakdown by Ticket Size Range Japan Korea 1% 41% Spai
Slide 58: Tikehau private debt platform
TIKEHAU PRIVATE DEBT PLATFORM Dedicated Direct Lending team benefiting from solid and diverse backgrounds in local geographies Direct Lending (18) Cécile Mayer-Levi 31 years of experience Paris 16 years of experience Madrid Aymeric Martin 11 years of experience Paris Charles Bourgeois 10 years of ex
Slide 59: Tikehau Direct Lending: target universe
TIKEHAU DIRECT LENDING: TARGET UNIVERSE Debt Risk/ Return Profile Portfolio Construction € 50m - € tbn €7/8m - € 60M € 10m - € 300m Gross Asset classes addressed by r Enterprise Value EBITDA Investment Size Return | Tikehau Direct Lending vy Private & Public Equity Asset classes addressed by other I
Slide 60: Unitranche
UNITRANCHE An alternative financing structure with an attractive risk / return profile KEY ADVANTAGES: y Flexible structure, ideal for confidential and preemptive solutions y Offers the possibility to lend significant amounts while maintaining an attractive risk / return profile: — Gross returns typ
Slide 61: Extensive origination and execution capabilities
EXTENSIVE ORIGINATION & EXECUTION CAPABILITIES Strong origination capacities, high discipline in investment Consolidated Execution Capabilities in Europe High selectivity in deployment 24 51 $ y Since January 2016 : over 1,000 NDAs and more “@ than 98 firm offers globally put forward >1,000 ion revi
Slide 62: Recognition of TKO's franchise and activity
, , RECOGNITION OF TKO’S FRANCHISE & ACTIVITY Widely Recognised Franchise Nominated as “Lender of the Year — Europe” (2018) “Private Debt Lender of the Year” (2017) “Private Debt Lender of the Year” (2016) “Private Debt Lender of the Year” (2015) “Private Debt Lender of the Year” (2014) “Unitranche
Slide 63: How we mitigate risks
HOW WE MITIGATE RISKS Highly experienced team is a key differentiator in turbulent situations, thus enhancing performance y Monthly or quarterly calls/meetings with management & board observer seats Company-Specific Risks y Performance vs. initial business plan y Set of covenants to flag any soft/un
Slide 64: Responsible investor approach
RESPONSIBLE INVESTOR APPROACH Our Responsible Investment Charter at a Glance ESG throughout the Stages of the Investment Cycle y Exclusion of controversial weapons or issuers y Signatory of the UN Principles for Responsible Investment Pre-investment from non-cooperatna, lurseietions listed by the (U
Slide 65: Case study - Inseec
CASE STUDY - INSEEC QO Wi . . . . INSEEC U. Inseec, leading French independent higher education Group Company Overview Strong LBO candidate y INSEEC is operating through 17 different brands in France and y >10% growth p.a. since 2010, and strong cash generation abroad, offering more than 115 program
Slide 66: Case study - Mecalux
CASE STUDY — MECALUX (APRIL 2019) © Gmecawx Senior secured financing to support founders and majority shareholders of Mecalux Background Credit Strengths y Mecaluxis one of the few providers of one-stop shop racking and y Presence in more than 70 countries, managing 11 production automated storage s
Slide 67: Management fees and carried interest
Management Fees Carried Interest
Slide 68: Direct lending key strengths
Superior Deal Origination Capabilities Established Franchise and Track Record Strongly Committed Sponsor with Significant Firepower
Slide 69: Leverage Loans & CLOs
IO CAPITAL MARKETS DAY Tikehau Capital Leverage Loans & CLOs 69
Slide 70: Investment management team
INVESTMENT MANAGEMENT TEAM CLO & Leveraged Loans (London) Credit Research (London, Paris, New York & Singapore) Debra Anderson Head of CLO Maxime Laurent-Bellue Head of Senior Loan Funds Vanessa Brathwaite - Senior Portfolio Manager ) Senior Loan Funds: & Elizabeth Ryan Head of Transaction Managemen
Slide 71: Loan funds at a glance: overview and KPIs
LOAN FUNDS —- AT A GLANCE Overview and KPIs €2.3bn raised since Inception across 12 Vehicles (3 Credit Funds and 9 SMAs) ] default to date (0% Loss Rate, 10% Realized IRR) y Broad access to private credit and capital markets opportunities Excluding Lyxor Funds ansactions from the Direct Lending Team
Slide 72: Loan funds at a glance: business model
LOAN FUNDS —- AT A GLANCE Business Model Typology and rationale y Europe Institutional y >70% Insurance companies y Low-volatility fixed income alternatives to tackle current rate environment y Solvency 2 wa 3.5-5.0% Net Target IRR to LPs 2019 CAPITAL MARKETS DAY. Tikehau Capital IO 2 — Product Offe
Slide 73: Loan funds at a glance: investment scope and case studies
LOAN FUNDS —- AT A GLANCE Investment scope & Case Studies Transaction Type Broadly Syndicated Opportunities Primary Syndications Secondary Acquisitions Senior Secured Notes High Conviction Trades Non Broadly Syndicated Opportunities Mid-Market Syndications Club-Deal Anchoring Bilateral Deal IO 2019
Slide 74: CLO at Tikehau Capital
CLO AT TIKEHAU CAPITAL A key expertise, leveraging our leverage loans know-how y Business established in 2014 as a logical extension of European credit platform y Strong access to market and allocations thanks to existing sponsor relationships CLO at TKO ; . , y Support from TKO’s unique asset manag
Slide 75: Snapshot of CLO practice
SNAPSHOT AT CLO PRACTICE FOR TIKEHAU CAPITAL Experience and performance €1.8bn Assets under management at end-March 2019 Breakdown of investor by type ~€95m Invested by Tikehau Capital's y PI Lorcan Kinsella » Daniel Reader Tomasz Zielinski balance sheet Loan Trader ep ho Analyst Portfolio Analyst I
Slide 76: OK Pass
90 80 70 60 27 35 50 24 30 17 34 13 40 12 35 30 18 19 15 31 25 12 12 46 44 20 37 38 40 37 18 32 29 10 20 20 23 24 17 15 14 17 6 0 OK Pass
Slide 77: Our ambitions in Private Equity
IO CAPITAL MARKETS DAY Tikehau Capital Our ambitions in Private Equity Peter Cirenza Head of UK Emmanuel Laillier Head of Private Equity Guillaume Benhamou Member of the Management Board of ACE Management 77
Slide 78: Private equity at Tikehau Capital
PRIVATE EQUITY AT TIKEHAU CAPITAL Transition from an on-balance sheet to an asset management approach Track-record and experience 2018: the tipping year y A historical business for Tikehau Capital y Until 2018, a practice carried out on- balance sheet y Key focus on minority growth equity y Strong t
Slide 79: Private equity activity
TIKEHAU CAPITAL - PRIVATE EQUITY ACTIVITY A wide span of investment capabilities 4t@) TIKEHAU 1 Growth Equity y Targeted investment size: €25-100m y Targeted NOVI investment size: €3-20m y Supporting entrepreneurs and founding families y Active minority shareholder positions providing capital to fun
Slide 80: Solid AuM increase for our PE strategies
SOLID AUM INCREASE FOR OUR PE STRATEGIES From €0.1bn to €1.4bn within 15 months 14 1.2 om poe a 31 Dec. 2017 30 June 2018 31 Dec. 2018 31 March 2019 (in €bn) Launched in H1 2018, Tikehau Capital’s Private Equity practice in Asset Management already counts €1.4bn of AuM "l a ») CAPITAL MARKETS DAY a
Slide 81: Private Equity practice for Tikehau IM
IO 2019 CAPITAL MARKETS DAY Tikehau Capital Private Equity practice for Tikehau IM
Slide 82: How do we differentiate ourselves
HOW DO WE DIFFERENTIATE OURSELVES Tikehau Private Equity value proposition Minority investment positioning Flexibility and full alignment of interests y Less crowded investment space vs other PE strategies (LBO, venture...) y Partnership-driven investment (alongside founders, management...) y Long t
Slide 83: Tikehau private equity team
TIKEHAU PRIVATE EQUITY TEAM 22 experienced investment professionals located in 5 European offices Managing Directors Focus Growth Equity & Energy Transition Focus Special Opportunities Emmanvel Laillier MD—Head of Private Equity Peter Cirenza MD - Chairman of Private Equity Special Opportunities Gro
Slide 84: High selectivity in deal screening
HIGH SELECTIVITY IN DEAL SCREENING T2 Energy Transition Fund Opportunities originated in 2018 Tay Opportunities assessed 99% | selectivity rate Portfolio company Qreenyellow Main selection criteria: y Profitable company y Seasoned Management team y Attractive growth options (Build-up, project pipeli
Slide 85: Investments done in 2018
4 INVESTMENTS DONE IN 2018 Over €252m of minority investments in growing companies Tikehau Growth Equity II T2 Energy Transition Fund A FILIASSUR Gap NEXTEAM linifluence Amount €30m €117m €6m invested Ownership 45% 89% 12%! FY 2017 Sales €26m €149m €18m : Insurance broker Aerospace supplier oo Busin
Slide 86: 2 investments already done in 2019
Slide 87: Tikehau Growth Equity: investment philosophy
Slide 88: • • • • • •
1 • • • • • •
Slide 89: T2 Energy Transition Fund: investment philosophy
Slide 90: Greenyellow - first T2 deal closed
Slide 91: Focus on ACE Management
Slide 92: ACE: established European private equity platform
Slide 93: Acquisition rationale
Slide 94: ACE approach creates virtuous circle of expertise
Slide 95: A platform for the tech-enabled industrials ecosystem
Slide 96: Liquid Strategies: performing and scalable
Slide 97: Why a broad expertise in liquid strategies?
Slide 98: Liquid strategies AuM momentum
Slide 99: Features of the business unit
Slide 100: Investment philosophy
Slide 101: Value approach in the equity universe
Slide 102: Value approach in the credit universe
Slide 103: Investment team
Slide 104: Towards ESG labelling of the funds
Slide 105: HY investments, CLO investments, liquid equity investments
120 HY investments 25 CLO investments 21 Liquid equity investments
Slide 106: Features of the product offering
Slide 107: Liquid strategies focus
Slide 108: ★★★★ ★★★★★
★★★★ ★★★★★
Slide 109: Acceleration in Real Estate
Slide 110: Real estate opportunity
Slide 111: 7.6 7.7 0.03 0.3 0.7 1.8 2.2
7.6 7.7 0.03 0.3 0.7 1.8 2.2
Slide 112: Real Estate for Tikehau Investment Management
Slide 113: European real estate market trends
Slide 114: Identified market opportunities in Europe
Slide 115: Castiglione
Castiglione
Slide 116: Overview of real estate assets under management
Slide 117: A strong real estate DNA
Slide 118: How we mitigate risks
Slide 119: ESG commitments
Slide 120: Tikehau Real Estate Opportunity 2018 (1/3)
Slide 121: Tikehau Real Estate Opportunity 2018 (2/3)
Slide 122: Tikehau Real Estate Opportunity 2018 (3/3)
Slide 123: A core plus opportunity in 2019
Slide 124: Snapshot on Sofidy
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Slide 127: SCPI/OPCI an uninterrupted growth of AuM
Slide 128: SCPI asset management companies ranking
Slide 129: Compared IRR: SCPI vs other financial investments
Slide 130: Focus on Immorente
Slide 131: Several favourable cyclical and structural factors support the SCPI market in 2019
Slide 132: Examples of assets acquisitions
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Slide 134: The photographs relate to investments already made, for example, but do not constitute any
The photographs relate to investments already made, for example, but do not constitute any commitment regarding the future acquisitions of the SCPI.
Slide 135: The photographs relate to investments already made, for example, but do not constitute any
The photographs relate to investments already made, for example, but do not constitute any commitment regarding the future acquisitions of the SCPI.
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