Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — Q1 2021 Earnings Presentation
38 slides from Tikehau Capital Sca's earnings presentation, May 20, 2021
Slide 1: Tikehau Capital Presentation
TIKEHAU CAPITAL PRESENTATION 20 MAY 2021
Slide 2: Disclaimer
DISCLAIMER By viewing or receiving or reading this Presentation (as such term is defined herein) or This Presentation contains forward looking statements about the Group and its attending any meeting where this Presentation is made, you agree to be bound by subsidiaries. These statements include fin
Slide 3: Disclaimer
DISCLAIMER This Presentation includes certain IFRS pro forma financial information about the investors, which will reduce returns and, in the aggregate, are expected to be Group. This pro forma financial information has been prepared on the basis of substantial. Actual returns will be substantially
Slide 4: Today's agenda
Today’s agenda 1. 1 AuM update at end-March 2021 2 A new organisation for Tikehau Capital 2. TIKEHAU CAPITAL PRESENTATION Tikehau Capital 4
Slide 5: AuM update at end-March 2021
1 AuM update at end-March 2021 TIKEHAU CAPITAL PRESENTATION Tikehau Capital 5
Slide 6: Q1 2021 AuM highlights
Q1 2021 AUM HIGHLIGHTS Group Asset Management Balance sheet €29.4bn €27.7bn €500m of Group AuM at 31 March 2021 of AM AuM at 31 March 2021 Inaugural sustainable bond issue 1.625% Lowest coupon achieved by the +15.5% +2.9% +18.1% +1.2% Group yoy growth qoq growth yoy growth qoq growth 8-year maturity
Slide 7: A very strong start to Q2
A VERY STRONG START TO Q2 Announcement of the launch of a Private Equity Decarbonization Fund focused on AM North America platform Acquisition by IREIT of a 27-property portfolio from Decathlon Integration of Asian Private Equity secondary practice Launch of the first private equity unit-linked prod
Slide 8: A new organisation for Tikehau Capital
2 A new organisation for Tikehau Capital TIKEHAU CAPITAL PRESENTATION Tikehau Capital 8
Slide 9: A 17-year entrepreneurial growth story
A 17-YEAR ENTREPRENEURIAL GROWTH STORY 2004 2021 FROM… …TO €4m of assets €29.4bn of AuM Founder-operated 607 employees Externally-managed Alternative AM pioneer in ESG French-based International (12 countries) Private investment company €3.4bn market cap TIKEHAU CAPITAL PRESENTATION Tikehau Capital
Slide 10: Tikehau Capital prepares its next growth chapter
Tikehau Capital prepares its next growth chapter with a simplified operational structure an improved financial profile a new dividend policy TIKEHAU CAPITAL PRESENTATION Tikehau Capital 10
Slide 11: Tikehau Capital to meet highest industry standards
TIKEHAU CAPITAL TO MEET HIGHEST INDUSTRY STANDARDS Current Post completion (July 2021) Externally managed Internally managed all TC management and Group central functions Central corporate functions and expertise regrouped located outside the listed company under the listed company (with related cos
Slide 12: A compelling step for Tikehau Capital
A COMPELLING STEP FOR TIKEHAU CAPITAL A transformative evolution reinforcing Tikehau Capital Simplified Improved Enhanced organisation and structure to post-tax cash-flow generation return on equity(1) support future growth and visibility 607 >€40m >140bps employees regrouped per annum from 2021 onw
Slide 13: Paving the way for future success
PAVING THE WAY FOR FUTURE SUCCESS 1 2 2 3 After 17 years of Regroup Next successful central corporate Reset entrepreneurial- functions and General Partner Growth expertise under the remuneration tailed growth story listed company Phase TIKEHAU CAPITAL PRESENTATION Tikehau Capital 13
Slide 14: Paving the way for future success
PAVING THE WAY FOR FUTURE SUCCESS 1 2 2 3 After 17 years of Regroup Next successful central corporate Reset entrepreneurial- functions and General Partner Growth expertise under the remuneration tailed growth story listed company Phase An established force amid the alternative AM landscape A success
Slide 15: From a founders owned investment company to a global alternative asset manager
Successful growth story Regroup & Reset Next growth phase 1 FROM A FOUNDERS OWNED INVESTMENT COMPANY TO A DIVERSIFIED GLOBAL ALTERNATIVE ASSET MANAGER Inception and ramp-up Institutionalization Internationalization and acceleration Create the brand Develop the brand Expand the brand 594 IPO Euronext
Slide 16: Fastest growing European alternative asset manager
Successful growth story Regroup & Reset Next growth phase 1 FASTEST GROWING EUROPEAN ALTERNATIVE ASSET MANAGER Fee-paying AuM AuM from international investors Management fee rate €bn €bn bps 2016-2020 +40% 23.2 9.3 +17 92.0 CAGR +45% bps 75.0 6.0 2.1 (1) (1) 2016 2017 2018 2019 2020 2016 2017 2018 2
Slide 17: Paving the way for future success
PAVING THE WAY FOR FUTURE SUCCESS 1 2 2 3 After 17 years of Regroup Next successful central corporate Reset entrepreneurial- functions and General Partner Growth expertise under the remuneration tailed growth story listed company Phase An established force amid Streamlines the Group’s Reflects organ
Slide 18: New organisation, new economics, improved financial profile
Successful growth story Regroup & Reset Next growth phase 2 NEW ORGANISATION, NEW ECONOMICS, IMPROVED FINANCIAL PROFILE Organisation Externally managed Internally managed Operating 2% €2.5m c.€20m costs of consolidated shareholders’ equity Fixed annual Corporate compensation(1) functions costs(2) 20
Slide 19: Increased management's stake in TC, post-transaction
Successful growth story Regroup & Reset Next growth phase 2 INCREASED MANAGEMENT’S STAKE IN TC, POST-TRANSACTION This new organization and related reset in General Partner compensation are implemented to benefit Tikehau Capital (TC) c.39 million new TC shares will be issued for the benefit of Tikeha
Slide 20: 3 figures to keep in mind
Successful growth story Regroup & Reset Next growth phase 2 3 FIGURES TO KEEP IN MIND post-tax cash-flow improvement in 2021, >€40m growing strongly over time >140bps incremental return on equity(1)(3) from 2021 onwards High single accretion on 2021 adjusted EPS(2)(3) digit Highly compelling benefit
Slide 21: Paving the way for future success
PAVING THE WAY FOR FUTURE SUCCESS 1 2 2 3 After 17 years of Regroup Next successful central corporate Reset entrepreneurial- functions and General Partner Growth expertise under the remuneration tailed growth story listed company Phase An established force amid Streamlines Reflects organisational Pr
Slide 22: Well on track to deliver on its targets
Successful growth story Regroup & Reset Next growth phase 3 TIKEHAU WELL ON TRACK TO DELIVER ON ITS TARGETS AND PROACTIVELY PREPARING FOR THE NEXT GROWTH PHASE Mid-term target Status Group AUM >€35bn On track from Dec. 2022 Fee Related Earnings >€100m On track (FRE) from 2022 Share of the portfolio
Slide 23: Capital allocation priorities
Successful growth story Regroup & Reset Next growth phase 3 CAPITAL ALLOCATION PRIORITIES Organic Keep investing in Group’s funds and growth vehicles serving AM growth Unchanged Proceed to targeted and accretive M&A External transactions Unchanged growth Geography, asset class, client type >80% of F
Slide 24: Conclusion
3 Conclusion TIKEHAU CAPITAL PRESENTATION Tikehau Capital 24
Slide 25: Next steps
NEXT STEPS Key dates of the planned reorganisation Today Mid-June(1) 15 July Announcement of the Publication of documentation Extraordinary General reorganisation relating to the transaction, Meeting including reports from an independent expert and external Approval & completion appraisers (2) of th
Slide 26: Key takeaways
KEY TAKEAWAYS A simplifying… … financially compelling… …value-unlocking evolution… …which strengthens Tikehau Capital TIKEHAU CAPITAL PRESENTATION Tikehau Capital 26
Slide 27: Appendix
Appendix TIKEHAU CAPITAL PRESENTATION Tikehau Capital 27
Slide 28: New Tikehau is favorably positioned within the industry
NEW TIKEHAU IS FAVORABLY POSITIONED WITHIN THE INDUSTRY TO LEAD NEXT GROWTH PHASE A unique business profile delivering top of #3 among global alternative asset managers the range value creation for shareholders by the size of its equity base Peer A Peer B Peer C Shareholders’ equity – Group share (€
Slide 29: Recognition of ESG efforts by rating agencies
RECOGNITION OF TIKEHAU CAPITAL’S ESG EFFORTS BY RATING AGENCIES ESG DISCLOSURE Investor EQT Eurazeo 3i Tikehau Capital 2 3i ICG Jupiter Wendel DWS Amundi Tikehau Capital 14 LionTrust Schroders Amundi Brookfield Amundi Schroders TKO 39 Wendel Partners Group Ashmore Ninety One Ashmore ICG Eurazeo Wend
Slide 30: Tikehau Capital relies on a best-in-class governance
TIKEHAU CAPITAL RELIES ON A BEST-IN-CLASS GOVERNANCE A highly independent and experienced Supervisory Board Capital Allocation Committee Role: assist the Manager in its Board composition Board Committees investment decisions and in monitoring the financial performance 11 Audit & Risk Committee expec
Slide 31: Group AuM by asset class
GROUP AUM BY ASSET CLASS GROUP +15.5% Group AuM over the last twelve months (+€3.9bn) Group AuM breakdown at end-March 2021 Direct Investments, €1.7bn Capital Markets Asset Management: €27.7bn of AuM at end-March 2021 Strategies, Private Debt, +€4.3bn (+18.1%) over the last twelve months €4.2bn €9.3
Slide 32: Asset management AuM progression
ASSET MANAGEMENT AUM PROGRESSION AM €bn +18.1% LTM +0.6 +0.5 27.7 LTM evolution 23.4 +4.2 (1.1) Mar. 2020 to Mar. 2021 31-Mar-20 Fundraising Distributions Market effect Change in scope 31-Mar-21 €bn +1.2% YTD 27.4 +0.5 +0.1 - 27.7 YTD evolution (0.3) Dec. 2020 to Mar. 2021 31-Dec-20 Fundraising Dist
Slide 33: Direct investments AuM evolution
DIRECT INVESTMENTS AUM EVOLUTION INVEST 500 4 1,662 1,180 65 (72) Direct (15) Investments AuM (€m) 1 2 3 4 5 31-Dec-20 New Market effects Fin. Instruments Bond issuance Others 31-Mar-21 commitments in TKO funds 1 New commitments in Tikehau Capital’s funds, as per the Group’s strategy of alignment of
Slide 34: Group AuM evolution
GROUP AUM EVOLUTION AuM at 31-Mar-2021 YoY change QoQ change In €m Amount (€m) Weight (%) In % In €m In % In €m Private debt 9,292 32% +11.9% +989 (0.5)% (50) Real assets 10,470 36% +9.8% +937 +1.3% +137 Capital markets strategies 4,239 14% +20.6% +725 +1.3% +55 Private equity 3,691 13% +76.6% +1,60
Slide 35: Asset management AuM evolution
ASSET MANAGEMENT AUM EVOLUTION AuM at Net new Distri- Market Change in AuM at Change Change LTM evolution (in €m) 31-03-2020 money butions effects scope 31-03-2021 (%) (€m) Private debt 8,303 1,518 (681) 152 - 9,292 +11.9% +989 Real assets 9,533 644 (250) 4 539 10,470 +9.8% +937 Capital markets stra
Slide 36: Glossary
GLOSSARY AM Asset Management TC Tikehau Capital CMS Capital Markets Strategies TCA Tikehau Capital Advisors DL Direct Lending TCGP Tikehau Capital General Partner DPS Dividend per share EPS Earnings per share FRE Fee-Related Earnings NOPAM Net Operating Profit from Asset Management NNM Net New Money
Slide 37: Contacts
CONTACTS Paris London Amsterdam Brussels Luxembourg 32, rue de Monceau 30 St. Mary Axe ITO Tower - Gustav Mahlerplein 104 IT Tower, Avenue Louise 480 4ème étage 75008 Paris London EC3A 8BF 1082 MA Amsterdam 1050 Brussels 37A avenue J-F Kennedy FRANCE UK NETHERLANDS BELGIUM L-1855, Luxembourg Phone:
Slide 38: 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