Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — H1 2019 Earnings Presentation
50 slides from Tikehau Capital Sca's earnings presentation, Sep 19, 2019
Slide 1: Tikehau Capital H1 2019 Results
TIKEHAU CAPITAL H1 2019 RESULTS 19 SEPTEMBER 2019 4r°@) TIKEHAU
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 This Presentation includes certain IFRS pro forma financial information about the Group. This pro forma financial information has been prepared on the basis of historical financial statements of the Company but has not been audited by the Group's auditors. The pro forma financial informat
Slide 4: Table of Contents
TABLE OF CONTENTS ] Business review PS ? Financial review P.31 3 Outlook P43 "l a ») H1 2019 RESULTS PRESENTATION a Tikehau Capital
Slide 5: Business review
IO H1 2019 RESULTS PRESENTATION Tikehau Capital Business review uw
Slide 6: Executive Summary
EXECUTIVE SUMMARY Tikehau Capital is delivering on its strategy y €23.4bn of total Assets under Management as at 30 June 2019, up +6% over H1 and +16% over the last 12 months (proforma’) y Fee-paying AuM of €17.4bn, a proforma increase of +/% over H1 and +711% over the last 12 months, driven by Priv
Slide 7: H1 2019 Key Figures
H1 2019 KEY FIGURES Very solid first half for Tikehau Capital Total Assets under Management Fee-paying Assets under At end-June 2019 Management at end-June 2019 +16% over the last 12m 411% over the last 12m +6% over HI +7% over HI) Asset Management Operating profit Net Operating Profit from Investme
Slide 8: Human Capital
HUMAN CAPITAL Experienced and diversified teams FTEs by age y Agrowing experienced team - 483 FTEs at end-June 2019 50 and over - Average experience of over 14 years ° 20-29 22% . . 40-49 y A diversified team to support innovation and growth 25% ~ Gender-balanced teams - 60% of staff below 40 years
Slide 9: €715M Capital Increase Closed in June 2019
€715M CAPITAL INCREASE CLOSED IN JUNE 2019 Major step forward in Tikehau Capital’s development y €715m capital increase finalised on June Shareholder structure at end-June 2019 25th, 2019 Institutional shareholders & free float ; Shareholders’ agreement y Proceeds to be used to increase exposure + F
Slide 10: Investment Case
INVESTMENT CASE A fast-growing alternative asset manager using its strong balance sheet as a growth and profit accelerator Structural tailwinds for Strong alignment of Increasing contribution alternative assets interests, at the heart of from Asset Management Tikehau Capital’s DNA to revenue and pro
Slide 11: Group dynamics
IO H1 2019 RESULTS PRESENTATION Tikehau Capital Group dynamics
Slide 12: Core Pillars of Our Business
CORE PILLARS OF OUR BUSINESS Our activity is relying on 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 Investment Activities DIVIDENDS, COU
Slide 13: Group AuM Evolution in H1-2019
GROUP AUM EVOLUTION IN H1-2019 Ongoing AuM growth during the first 6 months of 2019 Direct Investments Asset Management 30 June 2018 30 June 2018 31 Dec. 2018 (published) (proforma) "l a ») H1 2019 RESULTS PRESENTATION a Tikehau Capital 30 June 2019 46% +16% Last-twelve-month AuM growth in H1-2019 ‘
Slide 14: Group AuM - Overview
GROUP AUM —- OVERVIEW Tikehau Capital’s activities are organised around 4 strategies Private Real; Liquid _ AM (5) Direct _ Group @ Debt +@ Estate * 13) Strategies +@ = | activities | * Investments ~ AuM y Asa % of Total 39% 35% 14% 6% 91% 9% Group AuM 2.1 23.4 1.5 21.2 || 5. — » i 8.4 = a Do E& Pri
Slide 15: Strong Fundraising in H1 2019
STRONG FUNDRAISING IN H1 2019 Half-year Group AuM evolution y Asset Management fundraising driven by Private Equity and Real Estate strategies (over 60% of total) ™Fundraising = Distributions = Market effects . . . . y Direct investments fundraising comprising capital increase effect (+€0.7bn) parti
Slide 16: Tikehau Capital's Funds Deployment
TIKEHAU CAPITAL’S FUNDS DEPLOYMENT Deployment on closed-ended funds up 25% year-over-year Total deployments by Tikehau Capital’s closed-ended funds LD (1) Excluding CLOs. "l a ») H1 2019 RESULTS PRESENTATION a Tikehau Capital y €1.5bn invested during H1-2019 on the Group’s closed ended funds y 145 c
Slide 17: 2019 UN PRI Report for Responsible Investment
2019 UN PRI REPORT FOR RESPONSIBLE INVESTMENT Results reflect Tikehau Capital’s high standards in taking into account ESG criteria y Tikehau Capital has been a UN PRI signatory since 2014 y In July 2019, Tikehau Capital received high scores: TKO Score Median Score Strategy & Governance A+ eta A Priv
Slide 18: Business Line Update: Private Debt
BUSINESS LINE UPDATE Examples of European mid-market direct lending deals arranged by Tikehau Capital € 8 Abn of Assets under Management +] Yo AuM growth over H1 2019 31% TT O aum growth over the last 12m © April 2019 (@ MECALUX y Tikehau arranged a €134.5m financing y Purpose: support the increase
Slide 19: Business Line Update: Real Estate
BUSINESS LINE UPDATE REAL BSPATE Value-Add Real Estate fund and Sofidy have been active in H1 2019 cn Nicholsons Shopping Centre € 8 Obn of Assets under Management +6% 0) AuM growth over H1 2019 (proforma) y Located in Maidenhead, provides a site of more than 190,000 sq. ft. over approximately 4.5 a
Slide 20: Business Line Update: Private Equity
BUSINESS LINE UPDATE PRIVATE EQUITY Growth equity fund and energy transition fund already at work €3.6bn €l.5bn 417% +439% AuM growth over AuM growth over of Assets under Management of Assets under Management (Group level) (Asset Management level) H1 2019 (proforma) the last 12m (proforma) © July 20
Slide 21: Business Line Update: Liquid Strategies
BUSINESS LINE UPDATE LIQUID 2% AuM growth over H1, and recognition of ESG inclusion process STRATEGIES €3.3bn +2% -8% AuM growth over AuM growth over of Assets under Management H1 2019 the last 12m H1 2019 developments ESG label awarded to 7 TKO funds S LUXELAG y LuxFLAG ESG Label is awarded to inve
Slide 22: Focus on Asset Management activities
IO H1 2019 RESULTS PRESENTATION Tikehau Capital Focus on Asset Management activities 22
Slide 23: Focus on Asset Management AuM
FOCUS ON ASSET MANAGEMENT AUM Strong level of fundraising in H1-2019, driven by Real Estate (€0.5bn) and Private Debt (€0.4n) Evolution of Asset Management AuM (€bn) Asset Management fundraising by business line Private Equity ; 23% et2bn +€0.2bn 21.2 ; 20.4 €1.2b Private Debt : ~— .2bn 9, €(0.5)on
Slide 24: Asset Management Investor Base at End-June 2019
ASSET MANAGEMENT INVESTOR BASE AT END-JUNE 2019 Tikehau Capital keeps expanding, internationalising and institutionalising its investor base Further progress in internationalisation Row Asia 3% 5% Europe (excl. 30% +2pts \ yo q vs 30 June o 201 x2 1018 / €21.2bn 16% /” _ = France 31 Deo. 30 June 70%
Slide 25: Tikehau Capital's Footprint in Asia
TIKEHAU CAPITAL’S FOOTPRINT IN ASIA Solid ramp up of the Group’s presence in the region since 4 years Milestones and achievements from Tikehau Capital y Tikehau Capital started building a presence in Asia , , ; 5 years ago 2014 y Opening of the Singapore office ; ; a y Inalow-interest rates environm
Slide 26: Fee-Paying AuM Evolution in H1 2019
FEE-PAYING AUM EVOLUTION IN HI1 2019 Fee-paying AuM growth exceeds Total AUM growth within Asset Management activities Total AM AuM 43.2 3e-paying AuM Future fee-paying AuM (in €bn) Ze 30 June 2018 30 June 2018 (published) (proforma) "l a ») H1 2019 RESULTS PRESENTATION N Tikehau Capital 31-Dec-2018
Slide 27: Fee-Paying AuM Analysis at End-June 2019
FEE-PAYING AUM ANALYSIS AT END-JUNE 2019 High fee-paying base, with long duration on closed-ended funds AuM breakdown (AM activities) Fee-paying AuM by duration Future fee- paying 13% Fee-paying proccss +3pts vs 31 Dec. 2018 H1 2019 RESULTS PRESENTATION Tikehau Capital IO Permanent Liquid Strategies
Slide 28: Net Improvement of Average Fee Rate over 12M
NET IMPROVEMENT OF AVERAGE FEE RATE OVER 12M Tikehau Capital’s strategy aims at improving its fee-generation profile y Anaccretive mix profile evolution, combining strong organic growth and accretive acquisitions, as per the Group’s strategy 30 June 20189) % AuM Bps % AuM Bps Private Debt 48% 74bps
Slide 29: +10% Growth in AuM Eligible to Carried Interests
+10% GROWTH IN AUM ELIGIBLE TO CARRIED INTERESTS AuM growth in strategies eligible to carried interest exceeds overall AUM growth (€bn) 31-Dec-2017 AuM eligible to carried interests 75 410% ~ 6.8 |- 4.0 BA 34 “ ' : 31-Dec-2018 30-June-2019 ™ Private Debt Real Estate Private Equity "l « ») H1 2019 RE
Slide 30: Launch of a Private Equity Secondary Fund
LAUNCH OF A PRIVATE EQUITY SECONDARY FUND Extension of PE offering and active management of the Group’s investment portfolio New fund launched in July 2019 Main features of the fund Benefits for Tikehau Capital IO y €210m target size for Tikehau Growth Equity Secondary (TGE Secondary) y Fund will co
Slide 31: Financial review
IO H1 2019 RESULTS PRESENTATION Tikehau Capital Financial review 31
Slide 32: P&L review
IO H1 2019 RESULTS PRESENTATION Tikehau Capital P&L review 32
Slide 33: Condensed P&L
CONDENSED P&L Strong profit generation at end-June 2019 H1 2018 A 19/18 H1 2018 A 19/18 published proforma Reset Q AM revenues ' 75.9 | 35.8 +40.1 61.1 +14.8 Se activities Operating costs 1 (55.4) | (26.6) -28.8 (43.3) 124 AM net operating profit 20.5 92 +11.3 17.8 +2.7 Investments revenues 1 187.7
Slide 34: Asset Management Revenues
ASSET MANAGEMENT REVENUES Asset Management revenues grew much faster than AuM over H1 2019 Asset Management revenues y Management fees growth of 29% in H1 I Management fees & others > 2019, on a comparable basis Il Performance fees & carried interests eee a 75.9 . - y €0.9m of performance fees and c
Slide 35: Asset Management Profitability
ASSET MANAGEMENT PROFITABILITY Strong increase in profit contribution from the Group’s Asset Management perimeter y Thanks to the combination of organic growth and accretive acquisitions, Asset Management contribution to Group P&L at end-June 2019 equals the amounts published for the entire fiscal y
Slide 36: Investment Revenues
INVESTMENT REVENUES Positive impact from both fair value changes and cash contribution y Revenues from the investment portfolio strongly positive vs 30 June 2018 y Positive fair value changes across the portfolio, coming from listed and unlisted assets, as well as TKO funds y Dividends, coupons and
Slide 37: Focus on TKO Funds
FOCUS ON TKO FUNDS Contribution from TKO funds is growing, bringing more visibility to the Group’s model Confirmation of 10-15% target run rate return on capital invested by the Group in its own funds Contribution of TKO funds to Investment revenues Implied return FY 44 vd [44 ] 110% tl 115% 1 Coupo
Slide 38: Key balance sheet items
IO H1 2019 RESULTS PRESENTATION Tikehau Capital Key balance sheet items 38
Slide 39: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Very solid financial structure, supporting the Group’s strategy BBB- / stable outlook credit rating assigned by Fitch Ratings to Tikehau Capital in January 2019 y Robust equity structure supporting the business model, strengthened further with the capital increase closed i
Slide 40: Tikehau Capital's Investment Portfolio
TIKEHAU CAPITAL’S INVESTMENT PORTFOLIO Share of TKO funds within the Group’s investment portfolio increases further during H1 2019 ry €323m investments vs. €7 1m of exits over the period, including - Further investment in TKO funds » The acquisition of 81% of Selectirente for €75m and a further inve
Slide 41: Details of the Investment Portfolio
DETAILS OF THE INVESTMENT PORTFOLIO A well diversified investment portfolio | 65765 Nor-Isted investments + 3 investments > €50m + 11 investments between €10m and €50m + 99 investments < €10m Direct > investments OWS y Direct investments are split almost equally eo between listed and non-listed inve
Slide 42: How to Value a Hybrid Model?
HOW TO VALUE A HYBRID MODEL? Illustrative sum-of-the-parts of Tikehau Capital €bn a) Market cap. |] €2.6bn Assets invested from | Value of investment TKO’s balance portfolio €2.4bn sheet L_ Value from recurring Multiple of FRE of €70m in Fee Related 2022 Asset Earnings management a Value from perfor
Slide 43: Outlook
IO H1 2019 RESULTS PRESENTATION Tikehau Capital 43
Slide 44: Outlook and Guidance
OUTLOOK AND GUIDANCE Tikehau Capital is on track to deliver its targets y 2019 is a year dedicated to fundraising in PE and RE funds, as well as deployment of Direct Lending funds raised throughout 2018 y For the full-year 2019, the Group is targeting a total AUM of between €24.5bn and €25bn, the fi
Slide 45: Q&A session
IO H1 2019 RESULTS PRESENTATION Tikehau Capital Q&A session
Slide 46: Appendix
IO H1 2019 RESULTS PRESENTATION Tikehau Capital 46
Slide 47: Group Commitments in TKO Funds
GROUP COMMITMENTS IN TKO FUNDS A key differentiating factor for the Group Asset Management AuM breakdown Detail of TKO commitments li Amount drawn (in €bn) 31-Dec-16 31-Dec-17 31-Dec-18 30-Jun-19 mThird Party AuM = TKO Commitments "l a ») H1 2019 RESULTS PRESENTATION a Tikehau Capital 31-Dec-16 31-D
Slide 48: Evolution of Direct Investments AuM
EVOLUTION OF DIRECT INVESTMENTS AUM First half 2019 marked by capital increase and positive fair value adjustments y Capital Increase of €0.7bn took place in June y Dividend payments occurred in H1 for a total amounting to €26m y Fair value adjustments have a positive impact of €0. 1bn €0.1bn €0.7bn
Slide 49: Contacts
CONTACTS Paris 32, rue de Monceau 75008 Paris FRANCE, Phone: +33 1 40 06 26 26 Seoul 43Fl, Three IFC 10 Gukjegeumyung-ro, Youngdeungpo-gu Seoul, 07326 KOREA Phone: +82 2 6138 4331 New York 412 West 15th St. 18th Floor New York, NY 10011 UNITED STATES. Phone: +1 212 922 3734 Luxembourg deme étage 37A
Slide 50: Tikehau Capital
TIKEHAU CAPITAL 32, rue de Monceau - 75008 Paris - France Phone: +33 1 40 06 26 26 Fax: +33 1 40 06 09 37