KKR Credit Income Fund · ASX:KKC

KKR Credit Income Fund — Investor Presentation (September 2020)

14 slides from KKR Credit Income Fund's investor presentation, Sep 18, 2020

  1. Slide 1: For personal use only

    For personal use only The following presentation deck accompanied a video recording. To view the video recording please click on the link here. 0

  2. Slide 2: KKR Credit Income Fund Market Update September 2020

    For personal use only KKR Credit Income Fund Market Update September 2020

  3. Slide 3: Important Information

    Important Information You must read this notice before reading or making any use of this Document or any information contained in this Document. By continuing to read, use or otherwise act on this Document, you agree to be bound by the following terms and conditions, including any modifications to t

  4. Slide 4: Agenda

    Agenda For personal use only 1. Market Update 2. Performance Attribution 3. Current portfolio positioning and outlook 4. KKC plans 3

  5. Slide 5: Major Markets Have Rebounded since the Lows of late March 20

    Major Markets Have Rebounded since the Lows of late March 2020 For personal use only Relative Performance of Major Indices (Rebased at 100%) 120 110 110 100 100 90 90 80 80 70 70 60 60 Last video update 50 50 31/01/2020 7/02/2020 14/02/2020 21/02/2020 28/02/2020 6/03/2020 13/03/2020 20/03/2020 27/03

  6. Slide 6: Where Are We In The Market – Credit Spreads

    Where Are We In The Market – Credit Spreads US and Euro HY Option Adjusted Spreads For personal use only Worldcom GFC Oil/Energy Today? 9/11 Bear Stearns Eurozone End of QE? 2100 1600 1100 600 100 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-1

  7. Slide 7: Deeper Dive into High Yield Performance by Rating

    Deeper Dive into High Yield Performance by Rating(1) Ratings Evolution of GCOF US HY Performance: Rebased on 31 Jan'20 For personal use only 100% 105% 104% 90% 100% 100% 80% 99% 36% 36% 35% 35% 37% 36% 36% 40% 34% 70% 95% 60% 90% 90% 50% 40% 85% 42% 41% 51% 51% 45% 50% 49% 51% 44% 30% 80% 20% 10% 12

  8. Slide 8: NTA has been Recovering since lows of late March 2020

    NTA has been Recovering since lows of late March 2020(1) For personal use only KKC NTA Since Inception 2.60 2.40 2.35 2.20 2.00 2.00 1.91 1.80 1.60 1.40 1.25 1.20 1.00 21-Nov-19 28-Nov-19 5-Dec-19 12-Dec-19 19-Dec-19 26-Dec-19 2-Jan-20 9-Jan-20 16-Jan-20 23-Jan-20 30-Jan-20 6-Feb-20 13-Feb-20 20-Feb

  9. Slide 9: NTA Attribution

    NTA Attribution(1) For personal use only % Change in Original A$925m NTA since Inception At Different Times Before Full Ramp Post Full Ramp Covid Sell-Off Recovery 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% -25.0% -30.0% Dec 19 Feb 20 Mar 20 Jul 20 Underlying Investment Price Appreciation and Income

  10. Slide 10: KKC - Current Portfolio Positioning

    KKC - Current Portfolio Positioning* SENIOR vs. SUBORDINATED FLOATING vs. FIXED ASSET TYPE DIVERSIFICATION For personal use only 3% 9% 5% 47% 44% 33% 53% 59% 47% Senior Secured Senior Unsecured High Yield Bonds Bank Loans Other % Floating Rate % Fixed Rate Subordinated Other SECTOR DIVERSIFICATION R

  11. Slide 11: KKR GCOF Portfolio Snapshot

    KKR GCOF Portfolio Snapshot Sector Exposure(1) Sub-Sector Exposure(1) For personal use only 30% 25% 26% 26% 25% 19% 20% 17% 20% 16% 15% 15% 11% 10% 10% 8% 6% 7% 5% 5% 5% 4% 5% 4% 5% 4% 3% 3% 3% 5% 3% 3% 2% 2% 2% 2% 5% 1% 1% 1% 0% 0% Energy Household & Personal Products Media & Entertainment Software

  12. Slide 12: Scenario Analysis: GFC vs. COVID

    Scenario Analysis: GFC vs. COVID Returns During Periods of Volatility(1) For personal use only KKR (GFC) Market (GFC) KKR (Covid) Market (Covid) 30.00% 20.00% 10.00% Cumulative Returns (%) 0.00% -10.00% -20.00% -30.00% -40.00% T+1 T+2 T+3 T+4 T+5 T+6 T+7 T+8 T+9 T-6 T-5 T-4 T-3 T-2 T-1 T T+10 T+11 T

  13. Slide 13: Changes Made to Date and Next Steps

    Changes Made to Date and Next Steps For personal use only 1. Bi-weekly NTA estimates 2. More regular investment updates 3. New resources on the ground 4. More flexibility planned within the KKC structure 12

  14. Slide 14: Key Takeaways

    Key Takeaways For personal use only 1. Strong market recovery, but KKC well positioned 2. Upside potential with downside protection 3. Focus on higher cash yields on the assets 4. Steps taken to improve transparency for unitholders and more structural changes planned to build in more flexibility 13

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