Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — H1 2017 Earnings Presentation
40 slides from Tikehau Capital Sca's earnings presentation, 2017
Slide 1: H1 2017 results presentation
H1 2017 results presentation
Slide 2: Contents
© Contents CAPITAL = Highlights * Introduction to Tikehau and business model = Business review « Financial review = Recent developments and outlook = Appendices
Slide 3: Operational highlights
Operational highlights TIKEHAU CAPITAL > Continued progress on fundraising and capital deployment "Total AUM up 11% year-to-date to €11.1bn with €1.3bn of net new money raised during H1 17 = Tikehau continues to deliver robust fundraising according to plan, and expects to reach a target of €13bn at
Slide 4: Financial highlights
ae caine A a Financial highlights CAPITAL > Strong financial performance driven by the revenue growth and cost control Investment revenues of €121.6m (vs. €35.6m during H1 2016*) = Asset Management revenues up 39% to €25.1m = Net operating profit of €101.9m (vs. €9.7m during H1 2016*) = Net profit (
Slide 5: Key figures
Key figures TIKEHAU CAPITAL > Continues to deliver st growth NET INCREASE OF ASSETS UNDER MANAGEMENT (IN €M) INVESTMENTS BY TIKEHAU FUNDS (IN €m) H115 H116 H117 H116 H117 INVESTMENTS & AM REVENUES (IN €m) SHAREHOLDERS’ EQUITY (IN €m) Asset management activities Investment activities 2,276 1,574 =a |
Slide 6: Contents
© Contents CAPITAL " Highlights = Introduction to Tikehau and business model = Business review « Financial review = Recent developments and outlook = Appendices
Slide 7: Milestones and objectives
Milestones and objectives Total AuM
Slide 8: Tikehau's positioning
Tikehau’s positioning CAPITAL > positioned as an alternative asset manager in a fast-growing and profitable market Alternative AM: 40% of global AM Expected evolution of AM segments between 2015 and 2020 revenues in 2020 vs. 33% in 2013 % growth 25 O Estimated size in 2015 (scale = $itn) Equity ETFs
Slide 9: Indicative target balance sheet breakdown
TIKEHAU CAPITAL Indicative target balance sheet breakdown > Expectation of balance sheet allocation of assets on a medium to long term basis Objective of funds’ Objective Investment in Tikehau Funds Opportunistic Investments Private Debt Private Equity & Special Situations Real Estate Liquid Strateg
Slide 10: Contents
Contents ail CAPITAL " Highlights « Introduction to Tikehau and business model = Business review i. AUM * Financial review = Recent developments and outlook = Appendices
Slide 11: AUM per strategy
AUM per strategy TIKEHAU CAPITAL With €11.1bn of AUM as at 30 June 2017, Tikehau’s activities are organised around 4 business lines (in €bn) Private Debt - RealEstate -- Liquid Strategies =|AM activities Private Equity Group AUM 11.1 Committed by TC 0.2 0.2 0.1 0.5 balance sheet l Third-party AUM =
Slide 12: AUM net increase since 2013
AUM net increase since 2013 TIKEHAU CAPITAL > Strong fundraising performance over H1 17 (in €bn) FY13 FY14 FY15 FY16 H117 FY17 Target 13.0 Net A vs. N-1 1.4 1.4 2.0 3.6 11 3.0 Lyxor, REIT. KL 2 : TOLLE = Fundraising &AM distributions Marked-to-market External growth Capital increase in duly
Slide 13: Target €13bn of AUM by the end of 2017
Target €13bn of AUM by the end of 2017 TIKEHAU CAPITAL Objective of €3bn AUM net increase over the year leading to €13bn by the end of 2017 MAIN H1 17 ACHIEVEMENTS : TSLII + €1.1BN JULY CAPITAL INCREASE vee neon PRIVATE DEBT : TDL IV / €1.98N CLO Ill / NOVO 2017 ~ REALISATIONS = REAL ESTATE PROJECTS
Slide 14: Case study — Private Debt
Case study — Private Debt TIKEHAU CAPITAL > Example of successful strategy roll- Direct Lending strategy Senior loans strategy (in €m) y 4 (in €m) [ers] l 1 y 4 v 4 y 4 U 1 x3 y 4 x46 I 1 y 4 570 t 1 y 1 l 1 GG v 4 [134] \ A GG | as | ! 3 1 Direct Lending 1 Direct Lending 2 Direct Lending 3 Direct L
Slide 15: Contents
Contents ail CAPITAL " Highlights « Introduction to Tikehau and business model = Business review ii. Investments by Tikehau funds * Financial review = Recent developments and outlook = Appendices
Slide 16: Investments by funds managed by Tikehau AM activities
iy ed Investments by funds managed by Tikehau AM activities CAPITAL > Strong momentum on investments (in €m) 557 H1 2016 H1 2017 BH Liquid strategies =RealEstate Private Debt * Tikehau contributed €0.7bn to financing companies during H1 2017 (131 companies in —
Slide 17: Contents
Contents ail CAPITAL " Highlights « Introduction to Tikehau and business model = Business review iii. Investments by Tikehau Capital * Financial review = Recent developments and outlook = Appendices
Slide 18: Investments by Tikehau Capital
Investments by Tikehau Capital CAPITAL > Active first half-year in terms of net investments (in €m) 556 518 70 —— s H1 16 H117 Investments Investments m@Tikehau funds = External investments
Slide 19: Investments by Tikehau Capital: Main investments
Investments by Tikehau Capital Main investments TIKEHAU CAPITAL I N = £75m investment in May alongside existing shareholders y claranet = Claranet is a leading independent managed services provider with Ss headquarters in London and operating in seven European countries and Brazil T " = €330m invest
Slide 20: Investments by Tikehau Capital: Main exits
Investments by Tikehau Capital Main exits TIKEHAU CAPITAL : = Sale to Naxicap Partners in April 2017 1 ECE | = 2.8x MOIC (after fees and costs) and 21.1% IRR T = €10m original investment in June 2011 E ea Sale to La Poste Silver in May 2017 ; asten = 1.6x MOIC (after fees and costs) and 23% IRR T =
Slide 21: Contents
© Contents CAPITAL " Highlights * Introduction to Tikehau and business model = Business review = Financial review = Recent developments and outlook = Appendices
Slide 22: P/L H1
P/L H1 17 CAPITAL > Ss performance during H1 17 H1 16" 7.1 AM companies’ revenues 25.1 18.1 . Operating costs” -22.2 -18.9 -3.3 Net operating profit 2.9 -0.8 3.7 Revenues from investments (including PE) 121.6 35.6 86.0 Derivatives instruments 0.0 -17.7 17.7 Operating costs” © -22.6 -7.7 -14.9 Net re
Slide 23: AM activities' revenues by fee type
AM activities’ revenues by fee type TIKEHAU CAPITAL > Increase of management fees following the growth of AUM (in €m) 25.1 + 38.7% 1.8 18.1 + 54.7% 11.7 H1 15 PF H1 16 PF * H1 17 m= Management fees & others Performance fees & carried interest * Compared to June 2016 pro forma accounts, €2.0m of reve
Slide 24: Structure of AM revenues
Structure of AM revenues CAPITAL The growth of fundraising in Private strategies ensures e dded recurrent revenues on a long term horizon, fully invested (period of 1 to 3 years in average) MANAGEMENT PERFORMANCE CARRIED INTEREST FEES FEES COMMITTED CAPITAL YES - Some DIRECT LENDING, INVESTED CAPITA
Slide 25: Investments' revenues
Investments’ revenues TIKEHAU CAPITAL > Strong performance of Tikehau Capital investments over the period (in €m) 121.6 35.6 28.1 23.0 69 | uss H1 15 PF H1 16 PF * H1 17 Capital gain vs. historical cost 19.8 41.4 23.2 on disposals & Dividends, coupons, distributions Change in fair value * Compared t
Slide 26: Balance sheet 2017
Balance sheet 2017 TIKEHAU CAPITAL > Equity reinforced and low level of financial debt es Ee ee ee Investment portfolio 1,510 Cash & cash equivalent 120 130 -10 Other current & non current assets 365 354 11 Total assets 1,995 1,287 709 Shareholders equity - Group share 1,574 1,130 445 Minority inter
Slide 27: Investments' breakdown
Investments' breakdown TIKEHAU CAPITAL > Diversification of balance sheet investments (in €m) # entities : 166 # entities : 135 1,510 959 371 FY16 PF H117 = Tikehau funds External investments
Slide 28: Contents
© Contents CAPITAL " Highlights * Introduction to Tikehau and business model = Business review « Financial review = Recent developments and outlook = Appendices
Slide 29: Main developments since July 2017
Main developments since 1 July 2017 €702m rights issue TIKEHAU CAPITAL = c.€702m (€500m minimum size announced, c.€610m base deal, c.€92m extension clause fully exercised and 118.4% subscription rate) = c.45% of outstanding shares pre-capital increase = €22 per share, discount to TERP: 4.5% = Pre-em
Slide 30: 15.9% 8.6% 36.2% 5.4% 3.3% 3.0% 2.6% 11.9% 3.0% 2.8% 2.2% 5.0%
15.9% 8.6% 36.2% 5.4% 3.3% 3.0% 2.6% 11.9% 3.0% 2.8% 2.2% 5.0%
Slide 31: Recent developments and outlook
Pas! is : a Recent developments and outlook CAPITAL Improvement of operating performance = Promote the Tikehau brand across all strategies and sectors = Focus on the profitability of AM activities = Ensure greater capital efficiency Organic growth * — Continue our dynamic fundraising = Expand client
Slide 32: Contents
© Contents CAPITAL " Highlights * Introduction to Tikehau and business model = Business review « Financial review = Recent developments and outlook = Appendices
Slide 33: Fund performance
YTD Q2 2017 2016 12 months 3 years since inception 30/06/2017 performance performance performance performance performance performance TTV (part P) +0.86% +0.5% +1.1% +1.7% +3.2% +21.4% TTV (part A) +1.12% +0.6% +1.6% +2.2% +4.80% +26.3% TC+ (part A) +2.33% +1.1% +1.8% +4.7% +7.2% +32.8% TCT +0.50% +
Slide 34: Example of new AM platform
Example of new AM platform Credit. fr New platform to address different typology of clients Credit.fr is the #2 alternative small business crowd lending platform in France and was founded two years ago The Company has an excellent track record in France in terms of default rate Acquisition of 96% of
Slide 35: Case study (1/2): Claranet
CAPITAL Company overview Case study (1/2) Investment thesis Claranet is a London based IT services specialist offering outsourcing solutions for IT infrastructure and application management to mid-sized companies across Western Europe Founded in 1996, Claranet has evolved from a pioneering ISP (Inte
Slide 36: Case study (2/2): Oodrive
CAPITAL Company overview Case study (2/2) Investment rationale Oodrive (the “Company”) is a leading French-based SaaS pure player providing highly secured sets of cloud solutions The Company develops and offers 3 complimentary highly secured cloud solutions: — File sharing, synchronisation and colla
Slide 37: Structure of AM revenues (1/2)
Structure of AM revenues (1/2) TIKEHAU CAPITAL > Example of fee profile for Private Debt funds Structure of fund = 6-10 year total fund life = Funds are invested over 2-3 year investment period = 2 year fundraising cycle Profile of fees = Management fees are calculated on invested capital until the
Slide 38: Structure of AM revenues (2/2)
Structure of AM revenues (2/2) TIKEHAU CAPITAL > Example of fee profile for Real Estate funds Structure of fund = 10 year total fund life = Real Estate funds (OPCls) are invested immediately whilst other RE funds are invested over 2-3 year investment period Profile of fees = Management fees are calc
Slide 39: 2017/2018 Calendar
2017/2018 Calendar TIKEHAU CAPITAL = Q3 AUM announcement = 2017 Annual Results = Q1 AUM annoucement = AGM = H1 18 Results = Q3 AUM announcement
Slide 40: TIKEHAU CAPITAL
TIKEHAU CAPITAL 1 40 06 09 37