Partners Group Holding Ag · SIX:PGHN
Partners — H1 2023 Earnings Presentation
30 slides from Partners's earnings presentation, Sep 5, 2023
Slide 1: Interim Financial Results 2023
Interim Financial Results 2023 David Layton Chief Executive Officer | Philip Sauer Head Corporate Development and Interim Chief Financial Officer Private Infrastructure Wind For Institutional Use Only – Not for Public Distribution
Slide 2: Strong revenue growth supported by robust underlying portfolio performance
INTERIM FINANCIAL RESULTS 2023 2 Strong revenue growth supported by robust underlying portfolio performance Business Financials Transformational investing is key Solid performance fee development Focus on thematic investing and entrepreneurial Revenue growth of 19% year-on-year supported governance
Slide 3: How we deliver sustainable growth
INTERIM FINANCIAL RESULTS 2023 3 How we deliver sustainable growth Investments Clients Financials Transformational investing Bespoke solutions Performance is more relevant than ever continue to drive drives solid in new environment client demand financials
Slide 4: Private equity returns have proven to remain healthy through macroeconomic cycles
INTERIM FINANCIAL RESULTS 2023 4 Private equity returns have proven to remain healthy through macroeconomic cycles Higher interest Dislocation Low interest rate Higher interest Dislocation Low interest rate rate environment and recovery environment rate environment and recovery environment Base rate
Slide 5: Transformational investing builds resilience across cycles
INTERIM FINANCIAL RESULTS 2023 5 Transformational investing builds resilience across cycles… Thematic investing focuses on structural growth Entrepreneurial governance focuses on transformation 90+ themes across all asset classes Identifying areas of structural growth with potential for Taking the b
Slide 6: …and drives outperformance through earnings growth
INTERIM FINANCIAL RESULTS 2023 6 …and drives outperformance through earnings growth Real Assets returns excluding multiple expansion1,2 Equities returns excluding multiple expansion1,2 Public Public +133% Performance PG Direct Infrastructure PG Direct Equity attributable 21 to active +99% Performanc
Slide 7: A look inside AMMEGA: building on structurally growing themes
INTERIM FINANCIAL RESULTS 2023 7 A look inside AMMEGA: building on structurally growing themes Generating revenues in areas of the economy profiting from secular growth 2022-2028 Proportion of Sector CAGR2 firm revenue1 Packaged food market +6.3%3 Increasing focus on safety and 25% hygiene requiring
Slide 8: A look inside AMMEGA: taking a hands-on approach to transformation
INTERIM FINANCIAL RESULTS 2023 8 A look inside AMMEGA : taking a hands-on approach to transformation Creating a tailored board and senior management team… Value creation still in progress and driven by top-line growth and operational excellence +71% …with experience leading global firms, internation
Slide 9: Investment platform achievements in H1 2023
INTERIM FINANCIAL RESULTS 2023 9 Investment platform achievements in H1 2023 Investments1 (in USD billion) Portfolio realizations2 (in USD billion) Portfolio assets Portfolio assets (Private equity, infrastructure and real estate secondary, primary, and liquid loan investments) 34% Equity 43% USD US
Slide 10: Operational results drive investment returns
INTERIM FINANCIAL RESULTS 2023 10 Operational results drive investment returns Net direct portfolio performance overview Partners Group1 YTD Since inception p.a. H1 2023 as of 30 June 2023 Private equity 5.4% 18.5% Private debt 3.9% 6.2% Private infrastructure 6.9% 14.4% Private real estate -2.4% 8.
Slide 11: How we deliver sustainable growth
INTERIM FINANCIAL RESULTS 2023 11 How we deliver sustainable growth Investments Clients Financials Transformational investing is Bespoke solutions Performance more relevant than ever in continue to drive drives solid new environment client demand financials
Slide 12: Further building on our leading position as a global provider of bespoke solutions
INTERIM FINANCIAL RESULTS 2023 12 Further building on our leading position as a global provider of bespoke solutions Partners Group's assets under management development1 (in USD billion) Diversified platform with >300 142 programs and structures 33% Traditional programs 74 USD 142 billion 40% 67% B
Slide 13: Mandates: flexible asset allocation to realize return potential across private markets
INTERIM FINANCIAL RESULTS 2023 13 Mandates: flexible asset allocation to realize return potential across private markets Clients can have exposure to all asset classes by using single line investments to tailor allocation Evolution of portfolio NAV and asset allocation1 USD 1.5bn Infrastructure PE d
Slide 14: Evergreens: providing diversified access to private markets
INTERIM FINANCIAL RESULTS 2023 14 Evergreens: providing diversified access to private markets An example of a global private equity program1 Comprehensive portfolio management focused on diversification across assets, industries, and vintages Asset allocation • Fully invested on day 1 to avoid compl
Slide 15: AuM growth supported by diversified offering
INTERIM FINANCIAL RESULTS 2023 15 AuM growth supported by diversified offering Assets raised during H1 2023 AuM as of 30 June 2023 Private real estate Private real estate 13% 12% Private Private infrastructure Private equity infrastructure USD 15% USD Private equity 15% 40% 142 billion 8 billion 53%
Slide 16: Continued diversified fundraising by region and type of client
INTERIM FINANCIAL RESULTS 2023 16 Continued diversified fundraising by region and type of client Assets raised by region1 Assets raised by client type1 Asia Australia 3% 5% Distribution partners / Middle East Switzerland private individuals 5% 21% Public pension funds 22% & SWFs South America 23% 2%
Slide 17: Full-year fundraising guidance reconfirmed
INTERIM FINANCIAL RESULTS 2023 17 Full-year fundraising guidance reconfirmed AuM, client demand and other effects (in USD billion) 2023 guidance 22.3 17 to 22 Client demand 25.0 135 127 16.0 109 -10.5 Tail-downs & 16.5 -10.2 15.7 94 to -12.5 redemptions1 83 -8.3 74 -4.0 -8.1 FX & other2 FX & other2
Slide 18: How we deliver sustainable growth
INTERIM FINANCIAL RESULTS 2023 18 How we deliver sustainable growth Investments Clients Financials Transformational investing is Bespoke solutions Performance more relevant than ever in continue to drive drives solid new environment client demand financials
Slide 19: Continued AuM growth and value creation drive financials in H1
INTERIM FINANCIAL RESULTS 2023 19 Continued AuM growth and value creation drive financials in H1 H1 2023 financial highlights Average AuM Management fees1 Revenues2 EBIT (in CHF billion) (in CHF million) (in CHF million) (in CHF million) +3% -3% +19% +13% 122 126 1’051 809 786 881 Incl. Perf. 79 45
Slide 20: Revenues underpinned by stable contractually recurring management fees
INTERIM FINANCIAL RESULTS 2023 20 Revenues underpinned by stable contractually recurring management fees Revenues (in CHF million) 1'130 1'051 Revenues1 69 881 +19% 442 265 Performance fees (39%) 72 (25%) (8%) • 19% increase in revenues, 79 45 Other revenues & other supported by investment operating
Slide 21: Platform diversification and value creation drive performance fees across multiple programs and assets
INTERIM FINANCIAL RESULTS 2023 21 Platform diversification and value creation drive performance fees across multiple programs and assets Performance fee contribution Performance fee contribution by investment program Top 1 25% • Across investment programs, infrastructure was the Rest (6-80+) 37% lar
Slide 22: Outlook for performance fees in the range of 20% to 30% of revenues confirmed
INTERIM FINANCIAL RESULTS 2023 22 Outlook for performance fees in the range of 20% to 30% of revenues confirmed Performance fees in % of total revenues Performance ~20-30% Full-year 2023 fees1 guidance 20-30% ~10% 29% Performance Management fees2 fees supported by 6% More direct, solid 86% exit more
Slide 23: Performance fee potential is expected to follow AuM growth over time
INTERIM FINANCIAL RESULTS 2023 23 Performance fee potential is expected to follow AuM growth over time AuM and performance fee development 142 135 140 1500 AuM (in USD billion) 127 Performance fees (in CHF million) 120 109 1'197 1200 …translates 94 into future 100 83 performance 900 74 80 fee potent
Slide 24: Continued stability of management fee margin
INTERIM FINANCIAL RESULTS 2023 24 Continued stability of management fee margin Revenue margin1 2.41% Performance fees Management fees2 1.89% 1.82% 46% 1.74% 1.71% 1.67% 30% 29% Performance 1.51% 1.51% fees as % of 1.36% 1.39% 25% 1.35% 1.36% 1.33% 1.39% 1.38% 24% 14% total revenues 1.25% 1.26% 1.23%
Slide 25: Total operating costs driven by performance fee-related costs
INTERIM FINANCIAL RESULTS 2023 25 Total operating costs driven by performance fee-related costs Revenues, costs and EBIT development (in CHF million) H1 2023 H1 2022 Revenues1 1'051 +19% 881 Total operating costs, of which -407 +31% -311 Personnel expenses2 -339 +37% -247 Personnel expenses (regular
Slide 26: Strengthening of the CHF against the EUR and USD negatively impacted EBIT margin
INTERIM FINANCIAL RESULTS 2023 26 Strengthening of the CHF against the EUR and USD negatively impacted EBIT margin Currency exposure in H1 2023 AuM ≈ Costs2 Management fees1 GBP Others 6% • Strong CHF against other major 6% GBP SGD currencies affects management fees 11% 11% Others 6% EUR • 61% of co
Slide 27: Continued investments at ~60% target margin to support growth
INTERIM FINANCIAL RESULTS 2023 27 Continued investments at ~60% target margin to support growth EBIT1 margin development Foreign exchange effects impacted the EBIT margin by ~2%-points in H1; platform growth accounts for the rest 65% 65% 63% 63% 65% 60% 61% 62% 60% 61% 59% 59% 58% ~60% target EBIT m
Slide 28: Strong financials, balance sheet and liquidity
INTERIM FINANCIAL RESULTS 2023 28 Strong financials, balance sheet and liquidity Key financials (in CHF million, except for earnings per share data in CHF) Balance sheet (as of 30 June 2023) H1 2023 H1 2022 Revenues1, of which 1'051 +19% 881 Management fees2 Performance fees 786 265 -3% +270% 809 72
Slide 29: Contacts
29 Contacts Shareholder relations contact: Zugerstrasse 57 Philip Sauer 6341 Baar-Zug T +41 41 784 66 60 Switzerland philip.sauer@partnersgroup.com T +41 41 784 60 00 shareholders@partnersgroup.com Media relations contact: media@partnersgroup.com Jenny Blinch T +44 207 575 25 71 www.partnersgroup.co
Slide 30: Disclaimer
IMPORTANT NOTICE 30 Disclaimer NEITHER THE INFORMATION IN THIS DOCUMENT NOR ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. This presentation is strictly confidential t
Partners Group Holding — H1 2023 Earnings Presentation on 6ix