Blackstone Inc. · NYSE:BX
Blackstone — Debt Investor Presentation (March 2013)
18 slides from Blackstone's debt investor presentation, Mar 7, 2013
Slide 1: Blackstone's Fourth Quarter 2012 Debt Investor Presentation
Blackstone’s Fourth Quarter 2012 Debt Investor Presentation March 7, 2013
Slide 2: Blackstone's Full Year 2012 Highlights
Blackstone’s Full Year 2012 Highlights Blackstone reports record full year revenue, assets under management and public company earnings Economic Net Income was up 30% in 2012 to nearly $2 billion. Distributable Earnings (“DE”) surged 48% in 2012 to over $1 billion. Adjusted EBITDA grew 49% in
Slide 3: Walkdown of 2012 Key Financial Metrics
Walkdown of 2012 Key Financial Metrics Adjusted EBITDA was $1.3 billion, up 49% year over year (Dollars in Millions) 2012 GAAP Income Before Provision for Taxes $1,015 + IPO and Acquisition-Related Charges + Amortization of Intangibles – Impact of Consolidated Funds Economic Income = Economic Income
Slide 4: AUM and Earnings Growth
AUM and Earnings Growth Strong, predictable free cash flow driven by long-term asset management contracts largely with high quality institutions '09-'12 (Dollars in Billions) 2009 2010 2011 2012 CAGR Fee-Earning AUM Private Equity $ 24.5 $ 24.2 $ 37.2 $ 37.1 15% $168 billion Fee-Earning AUM Real Est
Slide 5: Earnings Composition
Earnings Composition Continued momentum in total earnings accompanied by an increase in cash flow components (Dollars in Millions) Economic Income $2,041 41% Economic Income CAGR since 2009 $1,581 $1,585 875 830 814 57% of earnings related to cash 466 flow components(a) $724 194 272 225 57% 69 47% 4
Slide 6: Balance Sheet Highlights
Balance Sheet Highlights High quality balance sheet with low levels of debt supported by significant equity base and strong free cash flow (Dollars in Millions) 4Q’12 $21.6 billion A/A+ BX Market Capitalization(d) Cash and Cash Equivalents $ 710 rated by S&P / Fitch $2.3 Corporate Treasury Investmen
Slide 7: Financial Metrics and Leverage Analysis
Financial Metrics and Leverage Analysis Blackstone remains well capitalized with low levels of debt supported by EBITDA growth and a strong balance sheet 2010 2011 2012 18.5x (Dollars in Millions) Financial Metrics Adjusted EBITDA $ 814 $ 857 $ 1,278 interest coverage ratio(d) Interest Expense 37 53
Slide 8: Appendix
Appendix
Slide 9: Total Segments
Total Segments (Dollars in Thousands) 2009 2010 2011 2012 Revenues Management and Advisory Fees, Net Base Management Fees $ 999,829 $ 1,069,471 $ 1,281,185 $ 1,591,403 Advisory Fees 390,718 426,140 382,240 357,417 (a) Transaction and Other Fees, Net 115,040 137,748 247,513 227,119 (b) Management Fee
Slide 10: Calculation of Certain Non-GAAP Financial Metric Components
Calculation of Certain Non-GAAP Financial Metric Components (Dollars in Thousands) 2009 2010 2011 2012 Realized Incentive Fees $ 44,812 $ 116,700 $ 89,029 $ 301,464 Less: Realized Incentive Fee Compensation (22,260) (57,600) (55,912) (140,042) Net Realized Incentive Fees 22,552 59,100 33,117 161,422
Slide 11: GAAP Statement of Operations
GAAP Statement of Operations (Dollars in Thousands) 2009 2010 2011 2012 Revenues Management and Advisory Fees, Net $ 1,482,226 $ 1,584,748 $ 1,811,750 $ 2,030,693 Performance Fees Realized Carried Interest 244,963 138,907 327,422 Realized Incentive Fees 121,758 90,099 301,801 Realized 70,492 Unreali
Slide 12: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Dollars in Thousands) 2009 2010 2011 2012 Net Income (Loss) Attributable to The Blackstone Group L.P. $ (715,291) $ (370,028) $ (168,303) $ 218,598 Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings (1,792,174) (668,444) (8
Slide 13: Reconciliation of GAAP to Non-GAAP Measures – Notes
Reconciliation of GAAP to Non-GAAP Measures – Notes Note: Prior period amounts have been adjusted to conform to the current period presentation and definitions. See also Appendix – Definitions. (a) This adjustment adds back to Income (Loss) Before Provision for Taxes amounts for Transaction-Related
Slide 14: Deconsolidated Balance Sheet and Reconciliation to Total Net Value
Deconsolidated Balance Sheet and Reconciliation to Total Net Value (Dollars in Thousands) 2010 2011 2012 2012 Assets Cash and Cash Equivalents $ 588,621 $ 754,744 $ 709,502 Cash and Cash Equivalents $ 709,502 Cash Held by Blackstone Funds and Other 57,945 46,282 154,555 Investments 7,324,538 Investm
Slide 15: Reconciliation of Consolidated Operating Partnerships to Consolidated Balance Sheet
Reconciliation of Consolidated Operating Partnerships to Consolidated Balance Sheet (Dollars in Thousands) 2010 2011 2012 Consolidated Consolidated Reclasses Consolidated Consolidated Reclasses Consolidated Consolidated Reclasses Operating Blackstone and Operating Blackstone and Operating Blackstone
Slide 16: Ownership Structure
Ownership Structure Blackstone Senior Managing Common Holdings Limited Directors Unitholders Partners Blackstone Blackstone Group Partners L.L.C. Management L.L.C. Ownership The Ownership Blackstone Group L.P. “BX” Blackstone Blackstone Guarantors Blackstone of existing Holdings I/II Holdings III Ho
Slide 17: Definitions
Definitions Blackstone discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (“non-GAAP”) in this presentation: • Blackstone uses Economic Incom
Slide 18: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operat