Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — H1 2021 Earnings Presentation
45 slides from Tikehau Capital Sca's earnings presentation, Sep 15, 2021
Slide 1: Tikehau Capital H1 2021 Results
TIKEHAU CAPITAL H1 2021 RESULTS 15 SEPTEMBER 2021
Slide 2: Agenda
AGENDA 1 Operating Review p. 5 3 Outlook p. 28 2 Financial Review p. 18 4 Appendix p. 30 H1 2021 RESULTS PRESENTATION Tikehau Capital 2
Slide 3: H1 2021 at a Glance
H1 2021 AT A GLANCE The first half of the year highlights Tikehau Capital’s key strengths Accelerate Double-digit growth from top to bottom line growth Invest Strong and selective fund deployment selectively Promising initiatives to finance the economic recovery Increase Successful reorganization al
Slide 4: Tikehau Capital is delivering on all KPIs
TIKEHAU CAPITAL IS DELIVERING ON ALL KPIS Record fundraising levels Sound fund deployment pace Solid performance of (Asset management net new money) (Closed-end funds deployment) investment portfolio 5.5 1.9 1.5 x2 +19% 4.2 Realized portfolio revenue 4.1 0.8 €bn €bn Material increase in net result,
Slide 5: Operating highlights
1 Operating highlights H1 2021 RESULTS PRESENTATION Tikehau Capital 5
Slide 6: A fast-growing alternative asset manager, compounding growth with its strong balance sheet
A fast-growing alternative asset manager, compounding growth with its strong balance sheet 1 2 3 Leverage past acquisitions Scale up vintages of Enhance offering through to expand the AM flagship / existing funds new strategies platform 4 Drive further diversification and internationalization of the
Slide 7: Strong asset management AuM progression
STRONG ASSET MANAGEMENT AUM PROGRESSION GROUP +22.5% in AM AuM growth driven by record level of fundraising over the last twelve months +22.5% 30.9 +20.3% +1.5 vs. Jun-20 +0.6 29.4 +0.5 (1.1) +5.5 24.0 Record level of fundraising over 12 months €bn AM AuM Net New Money Distributions Market effect Ch
Slide 8: Record levels of fundraising
RECORD LEVELS OF FUNDRAISING AM +€5.5bn +€2.4bn +€1.9bn over the LTM, a Group record in H1 2021, x2.2 vs H1 2020 in Q2 2021, record quarter 2.4 2.4 Driven by Fixed Income, with Tikehau Short x2.2 17% Capital Markets Strategies Duration (>€2bn AuM to date) Final closing of T2 Energy Transition Fund a
Slide 9: Tikehau Capital's AuM is increasingly diverse
TIKEHAU CAPITAL’S AUM IS INCREASINGLY DIVERSE AM The Group is expanding organically and externally across geographies and asset classes Verticals Existing at IPO Added since IPO Launch ongoing(1) Direct Lending Europe Corporate Lending(2) Europe Europe Private Debt Leverage Loans Europe CLOs Europe
Slide 10: Private Debt Secondaries (TPDS I)
PRIVATE DEBT SECONDARIES (TPDS I) AM A promising initiative, representative of Tikehau Capital’s innovation capabilities A market Strong Support from the poised to scale sourcing capacity TKO platform $250m 170+ 6 15% 1.34x AuM at investments transactions realized target gross MOIC 30 June 2021 oppo
Slide 11: Continued diversification and internationalization of our client base
CONTINUED DIVERSIFICATION AND AM INTERNATIONALIZATION OF OUR CLIENT BASE Clients by geography (at 30-Jun-21) Clients by category (at 30-Jun-21) 30.9 Group AuM Direct investments 3% 5% 10% Tikehau Capital group 6% x3 Asset Managers, Banks & Institutionals AuM from local 14% €30.9bn HNWI, Retail, priv
Slide 12: Acceleration in fund deployment over H1 2021
ACCELERATION IN FUND DEPLOYMENT OVER H1 2021 AM €1.9bn €6.4bn invested by the Group’s closed-end of dry powder within AM funds funds since 31 December 2020 at 30 June 2021 1.9 1.9 High level of discipline and selectivity 10% Private Equity 98% of selectivity rate on average(1) 1.5 x2 25% Real Assets
Slide 13: A partner of choice for European governments to finance the economic recovery
TIKEHAU CAPITAL: A PARTNER OF CHOICE FOR EUROPEAN GOVERNMENTS TO FINANCE THE ECONOMIC RECOVERY TKO’s 8 European 2021 office TKO managing government-led offices opening recovery funds Investors & Industry mandates Strategic partners 2013 CDC, French Insurance Federation Novo 2 (FFA), Institutional in
Slide 14: Strong realized returns within TKO funds
STRONG REALIZED RETURNS WITHIN TKO FUNDS AM A positive driver for future fundraising and balance sheet returns Gross IRR(1) on exited transactions >10% >10% >30% >30% >15% 2.0x 1.9x 1.6x 1.5x Gross MOIC(1) on exited transactions 1.2x 1.2x 1.2x TDL III (2) TDL IV (2) TSO II (2) TGES (2) Star America
Slide 15: Investment portfolio as at June 2021
INVESTMENT PORTFOLIO AS AT 30 JUNE 2021 IM Investments in Tikehau Capital funds representing 64% of total portfolio €359m On track to bring the share of the portfolio comprised of of portfolio investments over H1 2021 investments within own funds to between 65 and 75% Tikehau Capital’s balance sheet
Slide 16: Focus on non-listed investments
FOCUS ON NON-LISTED INVESTMENTS IM A complementary and granular exposure serving the Group’s asset management ecosystem High level of granularity Top 5 investments (by size) Total Investment type Sector Geography investment €2,878m 2 investments portfolio PE invest. High tech UK > €50m 11 investment
Slide 17: Impact-investing at the heart of Tikehau Capital's strategy
IMPACT-INVESTING AT THE HEART OF TIKEHAU CAPITAL’S GROUP STRATEGY Sustainability-themed and impact investing Recognition of Tikehau Capital’s ESG efforts by rating agencies Private Equity T2 Energy Transition Fund Article 9 of SFDR Investor AB EQT Wendel DWS 3i TKO Tikehau Capital ICG Jupiter Jupi
Slide 18: Financial review
2 Financial review H1 2021 RESULTS PRESENTATION Tikehau Capital 18
Slide 19: Sustained growth in fee-paying AuM
SUSTAINED GROWTH IN FEE-PAYING AUM AM +20% 95% fee-paying AuM growth of AuM in closed-end funds have over the LTM duration above 3 years 29.4 1.4 24.0 Growth in fee-paying AuM driven by sound 3.6 AM AuM 21.2 deployment in Private Debt and Real 1.0 Assets as well as solid fundraising for 2.7 Capital
Slide 20: Continued increase in management fee rate
CONTINUED INCREASE IN MANAGEMENT FEE RATE AM +20bps in management fee(1) rate since 30 June 2019 104 Accretive business mix evolution 94 Favourable mix in Private Debt (with Direct Lending) +10bps 84 Positive effect of arrangement fees in Real Assets +10bps Positive impact of late management 71 fees
Slide 21: > 95% of AM revenues come from management fees
> 95% OF AM REVENUES COME FROM MANAGEMENT FEES AM +39% +28% Management fees Management fees & others & others growth over the LTM CAGR over the last 3 years 122.2 1.1 88.3 Strong management fee growth +39% reflects solid fundraising and fund AM revenues 75.9 1.2 deployment Performance fees 0.9 & car
Slide 22: Strong FRE growth driving AM profits
STRONG FRE GROWTH DRIVING AM PROFITS AM Fee-Related Earnings up +62% yoy, bringing FRE margin to 36.7%, up 5.2 points vs. H1 2020 36.7% €44.5m 31.5% +62% 26.2% +5.2 pts 19.1% +5.4 pts 121.1 €27.4m €19.6m 87.1 75.0 (76.6) 4.7% (59.7) (55.4) (5.0%) H1 2016 PF H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1
Slide 23: Performance-related earnings potential
PERFORMANCE-RELATED EARNINGS POTENTIAL AM 1.7x in AuM eligible to carried interest since 30 June 2019 12.5 +39% +39% +41% 9.0 AuM eligible for carried AuM eligible to carried interest growth yoy interest, currently invested 7.5 7.1 and above hurdle rate growth yoy 5.8 4.2 3.9 2.6 2.8 Tikehau Capital
Slide 24: Robust growth in realized investment revenues
ROBUST GROWTH IN REALIZED INVESTMENT REVENUES IM Growth vs. Tikehau Capital funds are the #1 contributors to realized investment revenues H1 2020 +19% 78.1 Realized investment revenues 66.1 5.9 56.9 29.7 Other +71% Dividends, coupons and 7.7 Eurazeo distribution 72.2 40.6 TKO funds +29% TKO funds re
Slide 25: Resilient portfolio performance in H1 2021
RESILIENT PORTFOLIO PERFORMANCE IN H1 2021 IM Positive fair value changes in H1 across all components of the portfolio 252.2 Eurazeo: €93m Total 157.7 174.1 Unlisted investments: €38m TKO funds: €25m Unrealized change (€m) in fair value Other listed investments: €19m Realized portfolio revenue 78.1
Slide 26: Material improvement of net result in H1 2021
MATERIAL IMPROVEMENT OF NET RESULT IN H1 2021 GROUP The Group reorganization effective 15 July 2021 is retroactive to 1 January 2021. As a consequence, 2021 figures below are presented post-reorganization Published Proforma (post-reorg.) Evolution vs. H1 In €m H1 2020 H1 2020 H1 2021 2020 publ. Mana
Slide 27: Strong balance sheet, key differentiator
STRONG BALANCE SHEET, KEY DIFFERENTIATOR GROUP Very robust financial structure, supporting the Group’s business model BBB- / stable outlook credit rating re-affirmed by Fitch Ratings to Tikehau Capital in May 2021 €2.9bn €964m €700m Shareholders’ Equity Level of cash(1) Undrawn facilities at 30 June
Slide 28: Outlook
3 Outlook H1 2021 RESULTS PRESENTATION Tikehau Capital 28
Slide 29: Outlook and guidance
OUTLOOK AND GUIDANCE Tikehau Capital has been delivering on all fronts during H1 2021, from top to bottom line The Group is targeting to reach at least €33bn for Group AuM at end-December 2021(1) The Group will keep expanding its asset management platform and investing for future growth New initiati
Slide 30: Q&A session
4 Q&A session H1 2021 RESULTS PRESENTATION Tikehau Capital 30
Slide 31: Appendix
5 Appendix H1 2021 RESULTS PRESENTATION Tikehau Capital 31
Slide 32: Fastest growing European alternative asset manager since 2016
FASTEST GROWING EUROPEAN ALTERNATIVE ASSET MANAGER SINCE 2016 Assets under management (AM perimeter) Asset management revenues (CAGR 2016-H1 2021) (CAGR 2016-2020) +32% +51% +21% +22% European peers average (1) TKO European peers average (1) TKO Fee-related earnings (FRE) Net operating profit (NOPAM
Slide 33: Over €30bn in AuM, +29% CAGR since IPO
OVER €30BN IN AUM, +29% CAGR SINCE IPO GROUP AuM growth trajectory set to continue, with target of more than €35bn at end-2022 Total Assets under Management in €bn(1) >33 >35 30.9 +29% CAGR p.a 28.5 25.8 22.0 13.8 10.0 6.4 4.3 1.6 3.0 2004 2012 2013 2014 2015 2016 2017 2018 2019 2020 30-Jun-21 2021
Slide 34: A large spectrum of investment expertise
A LARGE SPECTRUM OF INVESTMENT EXPERTISE GROUP A comprehensive offering across asset classes and investment vehicles DIRECT INVESTMENTS €1.5bn CAPITAL MARKETS STRATEGIES PRIVATE DEBT €4.7bn €9.9bn • Fixed Income • Direct Lending • Equity • Secondaries PRIVATE EQUITY €30.9bn • • Leverage Loans CLOs T
Slide 35: Deployment and realizations examples
DEPLOYMENT AND REALIZATIONS EXAMPLES AM Private Debt Real Assets Private Equity Investment Residential portfolio Investment Investment Mar. 2021 Jun. 2021 Jun. 2021 Funds: TDL V, Sofiproteol dette privée Acquisition of a portfolio of c.4,000 units, Fund: TGE II mainly residential Third investment of
Slide 36: Fee-paying AuM and management fee rate by asset class
FEE-PAYING AUM AND MANAGEMENT FEE RATE AM BY ASSET CLASS 30-Jun-2018 In €bn 30-Jun-2019 30-Jun-2020 30-Jun-2021 PF(1) Real assets 6.4 6.9 8.0 9.3 Private debt 4.9 6.0 6.7 7.5 Capital markets strategies 3.6 3.3 3.8 4.7 Private equity 0.8 1.2 1.7 3.0 Total fee-paying AuM 15.6 17.4 20.3 24.4 30-Jun-201
Slide 37: Investment portfolio as at 30 June 2021
INVESTMENT PORTFOLIO AS AT 30 JUNE 2021 IM # of 205 210 219 investments 2,878 2,447 2 investments > €50m €528m 528 11 investments between €10m and €50m 2,371 Non-listed investments 1,045 95 investments < €10m (36%) 137 Other listed investments €517m Listed investments 380 Eurazeo Direct 823 in
Slide 38: Simplified consolidated P&L
SIMPLIFIED CONSOLIDATED P&L GROUP H1 2020 H1 2021 Proforma Impact of the reorganization In €m Published Pre-reorg. Post-reorg. (post-reorg.) Management fees & other revenues 87.1 87.1 121.1 121.1 Operating costs (59.7) (59.7) (76.6) (76.6) Fee-Related Earnings (FRE) 27.4 27.4 44.5 44.5 No impact Rea
Slide 39: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET GROUP Very solid financial structure, supporting the Group’s strategy 30-Jun-21 Impact of the reorganization 31-Dec-20 in €m Pre-reorg. Post-reorg. Investment portfolio 2,410 2,878 2,878 (1) Cash & cash equivalents 845 937 964 +€27m positive impact on cash Other current &
Slide 40: Success of the Group's reorganization
SUCCESS OF THE GROUP’S REORGANIZATION GROUP A reorganization based on two pillars Regroup & Reset central corporate functions and the financial flows of the listed expertise under the listed perimeter perimeter(1) Simplified Improved Revised Strengthened organisation and financial profile distributi
Slide 41: 5.6 years of average debt maturity
5.6 YEARS OF AVERAGE DEBT MATURITY GROUP A well spread debt repayment schedule, no maturity before 2023 Financial indebtedness as 15 July 20211 and amortization plan Amortization Plan €2,000m 2017 Bond - €0.3bn 2019 Bond - €0.5bn 0.7 2021 Sustainable Bond - €0.5bn €1,300m RCF - €0.7bn - Undrawn 0.5
Slide 42: Contacts
CONTACTS Paris London Amsterdam Brussels Frankfurt 32, rue de Monceau 30 St. Mary Axe ITO Tower - Gustav Mahlerplein 104 IT Tower, Avenue Louise 480 OpernTurm 75008 Paris London EC3A 8BF 1082 MA Amsterdam 1050 Brussels Bockenheimer Landstraße 2-4 FRANCE UK NETHERLANDS BELGIUM 60306 Frankfurt a.M. Ph
Slide 43: Disclaimer
DISCLAIMER By viewing or receiving or reading this Presentation (as such term is defined herein) or comprehensive. The Company, AF&Co Management, MCH Management and attending any meeting where this Presentation is made, you agree to be bound by Tikehau Capital Advisors do not undertake to update, am
Slide 44: Disclaimer
DISCLAIMER This Presentation includes certain pro forma financial information about the Group. investors, which will reduce returns and, in the aggregate, are expected to be This pro forma financial information has been prepared on the basis of historical substantial. Actual returns will be substant
Slide 45: Tikehau Capital
The information contained in this presentation is confidential and is for the exclusive use of the original listed recipient(s). The contents of this presentation are for TIKEHAU CAPITAL informational purposes only, and should not be regarded as an offer to sell or a solicitation of an offer to buy