Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — FY2019 Earnings Presentation
72 slides from Tikehau Capital Sca's earnings presentation, Mar 19, 2020
Slide 1: Tikehau Capital FY 2019 Results
TIKEHAU CAPITAL FY 2019 RESULTS 19 MARCH 2020 4r°@) TIKEHAU
Slide 2: Disclaimer
DISCLAIMER By viewing or receiving or reading this Presentation (as such term is defined herein) or attending any meeting where this Presentation is made, you agree to be bound by the limitations, qualifications and restrictions set out below: The existence and content of the presentation that follo
Slide 3: Disclaimer
DISCLAIMER This Presentation includes certain IFRS pro forma financial information about the Group. This pro forma financial information has been prepared on the basis of historical financial statements of the Company but has not been audited by the Group's auditors. The pro forma financial informat
Slide 4: Table of Contents
TABLE OF CONTENTS FY 2019 highlights Operating review Financial review RW Ne Strategy & outlook "l a ) FY 2019 RESULTS PRESENTATION a Tikehau Capital P.6 P17 P.46 P64
Slide 5: Executive Summary
EXECUTIVE SUMMARY 2019 was a very solid year of Tikehau Capital , , , , Double digit growth on all Group KPIs, from top to bottom-line Record year in Group fundraising, at +€4.6on, with successes in all business line Substantial increase in profitability in the Group’s asset management activities Ac
Slide 6: FY 2019 highlights
FY 2019 highlights "l a ) FY 2019 RESULTS PRESENTATION a Tikehau Capital
Slide 7: FY 2019 Financial Highlights
FY 2019 FINANCIAL HIGHLIGHTS Strong year on all KPls for Tikehau Capital (1) Group AuM Fee-paying AuM NOPAM Net profit (Group share) +48% 25.8 19.9 58.5 4228500 178.7 to €25bn 22.0 16.2 39.5 31.12.2018 31.12.2019 31.12.2018 31.12.2019 2018 2019 2018 2019 pro forma pro forma Net Operating Profit from
Slide 8: Since IPO in 2017, the Group has moved fast forward
SINCE IPO IN 2017, THE GROUP HAS MOVED FAST FORWARD Tikehau Capital is on track to deliver on its targets >€35bn €25.8bn 2022E organic Pre-IPO 31 December 2019 guidance AuM from International clients €7.5b0n ay €2.1bn Pre-IPO 31 December 2019 Including di i Ih Tikehau C | management f r i Asset Mana
Slide 9: Tikehau Capital has built the right set up
TIKEHAU CAPITAL HAS BUILT THE RIGHT SET UP Operating platform, investment approach and capital allocation Anticipate risks to face cycles in the best conditions Benefit from market dislocations when they arise , . y Volatility and dislocations generate opportunities y A diversified exposure to compl
Slide 10: Asset Management Activity at End-2019
ASSET MANAGEMENT ACTIVITY AT END-2019 A growing, well diversified and increasingly balanced exposure to alternative assets Asset Class Private debt Real Estate Private equity €8.6bn €9.2bn €2.0bn Share / yoy growth Q +4% +21 % as +67% < +1 5% . - _ yoy growth LN yoy growth yoy growth yoy growth y Di
Slide 11: New Tactical Strategies Team in Place
NEW « TACTICAL STRATEGIES » TEAM IN PLACE Enhance special opportunities practice and address wider demand for alternative assets Private debt Real Estate Private equity eter Tactical Strategies : multi-asset solutions, special opportunities funds y Dedicated team was put in place in 2019, preparing
Slide 12: Human Capital and Governance
HUMAN CAPITAL AND GOVERNANCE Experience, balance and diversity Experienced and committed team y 582 FTEs at Group level at end-December 2019 y Gender-balanced staff, across 25 nationalities, with 14 years of average experience y Management’s skin in the game (44% of Tikehau Capital) unmatched within
Slide 13: ESG: At the Heart of Tikehau Capital's Strategy
ESG: AT THE HEART OF TIKEHAU CAPITAL’S STRATEGY Strong ESG set-up, convictions and recognition Key pillars of our responsible investment strategy Exclusions Avoid certain sectors, behaviours or risky jurisdictions in order to protect value Engagement Encourage the adoption of value- creating ESG mea
Slide 14: Strong Balance Sheet: A Key Differentiator
STRONG BALANCE SHEET: A KEY DIFFERENTIATOR A proven differentiator for Tikehau Capital Invest in our own funds Data points * Strong alignment of interests with LPs, serving 10) 39 party client fundraising x2./ 9 Yo in third-party AUM of Group AUM ; ¢ Enhanced visibility on Investment portfolio reven
Slide 15: What's Next?
WHAT'S NEXT? The coronavirus outbreak is a catalyst of a trend we have been anticipating Tailwinds for alternative asset managers are structural, but cyclical risks are rising Structural y Institutions need to service their liabilities and long-term obligations tailwinds y Retail / private clients w
Slide 16: Confirmation of Group's Mid-Term Guidance
CONFIRMATION OF GROUP’S MID-TERM GUIDANCE The Group is on track to deliver its organic guidance >€35bn of total AUM by 2022 of operating profit for Asset Management >€100m activities by 2022 0 of investment portfolio comprised of 65-75% investments within Tikehau Capital funds 0 run rate return on c
Slide 17: Operating review
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Operating review 7
Slide 18: 2019 Operating Highlights
2019 OPERATING HIGHLIGHTS A successful year for Tikehau Capital in all its business lines y Strong momentum for Sofidy (€1.6bn fundraising in y Final closing for Tikehau Direct Lending IV at €2.1bn 2019) y Continued fundraising for TREO, with AUM of €570m at a Ff 9 y Selective investments, with TDL
Slide 19: Record Year in Terms of Fundraising
RECORD YEAR IN TERMS OF FUNDRAISING Another very dynamic year, driven by very strong Asset Management fundraising Full year Group AuM evolution y Asset Management fundraising driven by Private Equity and Real Estate strategies (over 60% of total) y Direct investments fundraising comprising capital i
Slide 20: Group AuM Evolution in 2019
GROUP AUM EVOLUTION IN 2019 +17% Group AuM growth over the last 12 months (+€3.8bn) +€12.0bn x1.9 eer TTT rae /. aw Lw| 25.8 / fi H 13.8 (in €or Asset Management Direct Investments 2.4 1.6 31 Dec. 2017 31 Dec. 2018 31 Dec. 2019 "l a ) FY 2019 RESULTS PRESENTATION a Tikehau Capital » +17% x19 Group A
Slide 21: Focus on Asset Management AuM
FOCUS ON ASSET MANAGEMENT AUM Evolution of Asset Management AuM (€bn) Asset Management fundraising by business line +€3.2bn (+16%) +€4,074m +€487m +16m 23.6 Capital Markets 20.4 €(1,344)m Private Equity ) | 8% of which e4tbn Private Debt * €0.5bn from TKO AM fundraising * €3.1bn from 3° party Real E
Slide 22: Asset Management Investor Base at End-Dec 2019
ASSET MANAGEMENT INVESTOR BASE AT END-DEC 2019 Tikehau Capital keeps expanding and internationalising its investor base Asset management AuM by investor origin 2019 3 party fundraising by origin 32% y Fundraising from international investor accounts for 41% a’ of total asset management fundraising.
Slide 23: Growth Opportunities with Retail Clients
GROWTH OPPORTUNITIES WITH RETAIL CLIENTS Retail investors are increasingly looking for private markets exposure Tikehau Capital’s expertise with retail clients O Tikehau Mercati Privati Europei y Tikehau Capital funds available for retail investors: Open-ended funds (Capital Markets Strategies) Real
Slide 24: Tikehau Capital's Funds Deployment
TIKEHAU CAPITAL’S FUNDS DEPLOY MENT Solid deployment of closed-ended funds (€3.6bn) in 2019, up €0.9In vs. 2018 Pro Forma Total deployments by Tikehau Capital’s closed-ended funds y €3.6bninvested in 2019 on the Group closed- end funds 3.6 y Over 233 companies / assets financed! in 2019 (vs. 120 in
Slide 25: Private Debt
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Private Debt 25
Slide 26: Market Snapshot
MARKET SNAPSHOT ee Strong case remains for private debt Global private debt market — years of dry powder on hand! In Europe, non-bank lenders grow market share vs banks ? ’ ° 1 Banks fee --7 gam 50% 44% I Non-bank ‘0 Virtually unchanged since 2014 1 es 38% ° 2000 2010-2011 -012_—S«201d-«saNTA ISIGHT
Slide 27: 2019 Fundraising Highlights
2019 FUNDRAISING HIGHLIGHTS 2 main events in 2019, after a record year 2018 Final closing for TDL IV at €2.1bn y Strong fundraising throughout 2018, finalized in February 2019, with €214m committed by Tikehau Capital y More than 70% of subscribers based outside of France, and more than 30% outside o
Slide 28: Funds Deployment in 2019
FUNDS DEPLOY MENT IN 2019 Strong dealflow and high level of selectivity Private Debt pipeline in 2019 400 screened deals 456 vs 2018 b imotes en 30 closed deals +6 vs 2018 7.5% Conversion rate Only relates to Direct Lending activities K ) FY 2019 RESULTS PRESENTATION a Tikehau Capital Private Debt €
Slide 29: Direct Lending Fund Performance
Private Debt DIRECT LENDING FUND PERFORMANCE ’8.6bn AuM Sound credit statistics and solid track-record in performance Solid metrics for TKO’s Direct Lending funds [| Direct Lending | Direct Lending | Direct Lending | Direct Lending iW) 1 I 2) Iv?) Fund size €85m €134m €610m €2.1bn ®) Inception 2010
Slide 30: A Disciplined Investment Approach
A DISCIPLINED INVESTMENT APPROACH ee TDL WV statistics demonstrate Tikehau Capital’s disciplin in fund deployment Lower Risk Higher Risk 4.2x 5.6x 5.9x Leverage 3.5x ~~ = ==> 6.0x 4 g iS 0% 78% 84% = Cov-lite Loans 0% 0 Es o> 100% 3 = 0.0% 3.3% = s Default Rates 0% <€ ===__———Q DD 6% 3 0.1% oS 55% 4
Slide 31: Real Estate
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Real Estate 31
Slide 32: Tikehau Capital's Real Estate Platform
TIKEHAU CAPITAL’S REAL ESTATE PLATFORM A comprehensive real estate platform diversified across clients types and asset classes A comprehensive Real Estate platform A wide range of opportunities across the Risk / Return spectrum LO Selidy sieiewy Value-Add (TREO 2018) ° Core / Core+ * Institutional i
Slide 33: Successful Fundraising for TREO 2018
Real Fstate SUCCESSFUL FUNDRAISING FOR TREO 2018 €9.2Biasant An important milestone for Tikehau Capital’s Real Estate practice TREO 2018: the Group’s first "Value Added" real estate fund €560m for TREO 2018 ry Launched in 2018, fundraising closed at end-February 2020 yr Investment universe: commerci
Slide 34: Real Estate Investments
REAL ESTATE INVESTMENTS A dynamic year in deployments, with high selectivity High level of selectivity (excl. Sofidy) 179 screened deals len vs 2018 PF Wz : vs 2018 PF +8 vs 2018 PF 5.0% Conversion rate "l a ) FY 2019 RESULTS PRESENTATION a Tikehau Capital RealEstate. €9,.2bnAwVE Investment activity
Slide 35: Real Estate Funds Performance
REAL ESTATE FUNDS PERFORMANCE Snapshot on main real estate funds Exited in 2018! Exited in 2019 | 0 . . Tikehau Real | Tikehau Real Tikehau L: Tikehau Real r nae eee sachin with Estate 2 Estate 3 Property | Estate 1 is (22 assets, 180,000sqm) Y Assets acquired in 2014 for c€93m, ' 1 Fund size €274m!
Slide 36: Sofidy, a Strong Addition to TKO Platform
SOFIDY, ASTRONG ADDITION TO TKO PLATFORM Very solid year for Sofidy oy Key figures for 2019 Real Estate €9,.2bnAwVE Focus on Selectirente 422% +€1.1bn AuM growth yoy Net new Money in 2019 €6.2bn of AUM at 31.12.19 2m sqm 4,200 of real estate surface assets managed 55,000 Direct retail clients Y Sofi
Slide 37: Solid Track-Record
Real Estate SOLID TRACK-RECORD €9, 2b ie Investment discipline and ESG are key for sustainable performance Solid performance for Sofidy’s main funds Strong ESG commitments ZAIMMORENTE Ml MO1 “ Phricre europe Mmlseitysemicion Objective : improve energy efficiency Strat Retail properties Offices E Dve
Slide 38: Private Equity
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Private Equity 38
Slide 39: Private Equity Platform
PRIVATE EQUITY PLATFORM Private Equity Tikehau Capital is positioned across 3 main verticals in Private Equity Obn AuM 1 Growth Equity Private Equity AuM Evolution y Tikehau Growth Equity II; Tikehau Growth Equity Secondary: — Launched in 2018 ~ Launched in 2019, leveraging on- y» Strong growth in P
Slide 40: Our Approach to Generalist Private Equity
OUR APPROACH TO GENERALIST PRIVATE EQUITY (ana Growth Equity: attractive returns, less competition, less leverage Growth Equity: a differentiated approach to private equity Track record y Minority investment, along families / founders / ¥ On-balance sheet entrepreneurs approach until 2018 a y Target
Slide 41: T2 Energy Transition Fund
Private Equity T2 ENERGY TRANSITION FUND Obn AuM A unique opportunity to accelerate the paradigm shift towards a low-carbon economy Strong TKO conviction on climate change: equity investment is particularly relevant for an effective and long-term support of companies actively involved in the transit
Slide 42: Private Equity Investment Activity
PRIVATE EQUITY INVESTMENT ACTIVITY tlre Dynamic pipeline in 2019 High level of selectivity 42 screened deals 4198 vs 2018 PF vs 2018 PF 29 closed deals / (5, 2018 PF 3.9% Conversion rate "l a ) FY 2019 RESULTS PRESENTATION a Tikehau Capital Deal examples + =O I May 2019 July 2019 >) ers Technology-l
Slide 43: Capital Markets Strategies
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Capital Market Strategies 43
Slide 44: Capital Markets Strategies
CAPITAL MARKETS STRATEGIES Performing and scalable Private markets investment discipline applied to public markets Experienced proprietary research team Conviction-based and concentrated fund management Market insights to private markets teams Strong track-record Highly scalable strategies FY 2019 R
Slide 45: Tikehau Income Cross Assets
TIKEHAU INCOME CROSS ASSETS Performances and key indicators Performances AuM evolution (€m) Share class I Share class P 2019 2019 +9.7% 2019 +9.4% 2018 -0.4% 2018 -0.7% 3 years +14.1% 3years +13.1% 5 years +19.38% 5S years +17.6% Since inception +23.8% Since inception +32.6% (12.05.2014) (16.12.2013
Slide 46: Financial review
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Financial review 46
Slide 47: Simplified Consolidated P&L
SIMPLIFIED CONSOLIDATED P&L em 209 2018 19/18 2018 A 19/18 ' ' published proforma A M AM revenues 174.8 75.2 +99.6 125.8 +49.0 Sse MA Operating costs | (116.3); (65.2) 1.1) (66.3) (80.0) AM net operating profit (NOPAM) ' 58.5 ! 20.0 +38.5 39.5 +19.0 AM net operating margin 1 383.5% | 26.6% +6.4pts 3
Slide 48: Asset Management activities
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Asset Management activities 48
Slide 49: Group AuM Overview
GROUP AUM —- OVERVIEW Capit - Real. AM Direct (3) M (4) = aan = & + (2) Estate * Strategies * Se activities * Investments AUM 20 23.6 3.8 0.7 92 0.7 cS 85 0.5 = 3 © 8.1 Private Debt Real Estate Capital Markets Private Equity AM Perimeter Direct Investments Strategies l™@ Tikehau Capital investments
Slide 50: Fee-Paying AuM Evolution
FEE-PAYING AUM EVOLUTION €19.9bn of fee-paying AUM as at 31 December 2019, up +23% vs. 31 December 2018 Total AM AuM 11.4 Non fee-paying Aun +23% Future fee-paying AuM a v 19.9 16.2 2.2Xx -v Fee-paying AuM ra = weer Q co) & 31 Dec. 2017 31 Dec. 2018 31 Dec. 2019 "l y ) FY 2019 RESULTS PRESENTATION &
Slide 51: Fee-Paying AuM Analysis
FEE-PAYING AUM ANALYSIS High fee-paying base, with long duration on closed-ended funds AuM breakdown (AM activities) 31 December 2019 Future fee-paying, 11% Non-fee paying, 5% ’o i 84% +4pts vs 31 Dec. 2018 FY 2019 RESULTS PRESENTATION Tikehau Capital IO Fee-paying AuM by duration 31 December 2019 P
Slide 52: Asset Management Revenues
ASSET MANAGEMENT REVENUES Asset Management revenues grew much faster than AuM over 2019 Asset Management revenues y Management fees growth of 36% in 2019, on a I Management fees & others” comparable basis Il Performance fees & carried interests ceeeeortt > (i748 y €8.5m of performance fees and carri
Slide 53: Fee Rate Evolution
FEE RATE EVOLUTION Tikehau Capital’s strategy aims at improving its fee-generation profile 31 Dec. 2018 31 Dec. 2018 31 Dec. 2019 (published) (pro forma) (published) % AM Bps % AM Bps % AM Bps AuM AuM AuM 32% 69bps 32% 93 bps 39% 110 bps 35% 70bps 35% 70 bps 37% 73 bps Capital Markets 14% 58bps 14%
Slide 54: +27% Growth in AuM Eligible to Carried Interests
+27% GROWTH IN AUM ELIGIBLE TO CARRIED INTERESTS Strong increase in 2019 AuM eligible to carried interests _-v| 8.6 _ +27% 68 | 7 Ded +70% +18% mM 37 a my 3. +82% 2.5 S 2.3 ve 31 Dec. 17 31 Dec. 18 31 Dec. 19 Private Equity Real Estate — ™ Direct Lending and Multi Assets (€bn) ..currently invested a
Slide 55: Asset Management Profitability
ASSET MANAGEMENT PROFITABILITY Strong increase in profit contribution from the Group’s Asset Management perimeter y Thanks to the combination of strong revenue growth and controlled cost evolution, NOPAM margin increases year- over-year by more than +200bps (proforma) and +690bps (published) NOPAM!
Slide 56: Investment activities
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Investment activities
Slide 57: Investment Revenues
INVESTMENT REVENUES Positive impact from both fair value changes and cash contribution y Revenues from the investment portfolio strongly positive vs 2018 y TKO funds are the #1 contributor to investment portfolio revenue, y Dividends, coupons and distributions up strongly by +21%, to €89.0m at end D
Slide 58: Focus on TKO Funds
FOCUS ON TKO FUNDS Contribution from TKO funds is growing, bringing more visibility to the Group’s model Confirmation of 10-15% target run rate return on capital invested by the Group in its own funds Contribution of TKO funds to Investment revenues Implied return 110% tor 1 15% | Coupons & distribu
Slide 59: Key balance sheet items
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Key balance sheet items
Slide 60: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Very solid financial structure, supporting the Group’s strategy BBB- / stable outlook y Robust equity structure supporting the business credit rating assigned by Fitch Ratings to Tikehau Capital in January 2019 model, strengthened further with the capital penne , increase
Slide 61: 5.6 Years of Average Debt Maturity
5.6 YEARS OF AVERAGE DEBT MATURITY A well spread debt repayment schedule, no maturity before 2023 Financialindebtedness as at 31 December 2019 and amortisation plan Amortisation Plan 1,800 1 1,600 } €1,500m = RCF - €500m ™ 2019 Bond - €500m ™ 2017 Bond - €300m €1,000m ™ Term Loan - €200m 1,400 1,200
Slide 62: Tikehau Capital's Investment Portfolio
TIKEHAU CAPITAL’S INVESTMENT PORTFOLIO Material rotation of investment portfolio during 2019, in line with the Group’s strategy tof - ong investments 207 206 y €/703m investments vs. €645m of exits over the period, including Further investment in TKO funds, with capital being called as funds are dep
Slide 63: Details of the Investment Portfolio — Dec. 2019
DETAILS OF THE INVESTMENT PORTFOLIO — 31 DEC. 2019 A well diversified investment portfolio, geared in priority towards TKO funds + 1 investments > €50m = Qinvestments between €10m and €50m + 98 investments < €10m €416m— Non-isted investments Other listed investments Fonciére Atland Dws Direct invest
Slide 64: Strategy & Outlook
IO FY 2019 RESULTS PRESENTATION Tikehau Capital Strategy & Outlook 64
Slide 65: COVID-19 Situation
COVID-19 SITUATION Tikehau Capital is taking the appropriate measures Adapt our set-up to ensure business continuity Closely monitor portfolio companies and client relations y Asupervisory committee operating 24/7 is in charge of overseeing all developments related to the outbreak y IT and complianc
Slide 66: COVID-19 Situation Update
COVID-19 SITUATION UPDATE Update on funds and fundraising Funds and portfolio Fundraising y Direct Lending; limited leverage in companies financed y Real Estate: - Downside protection on asset value - Footfall decrease for retail assets, no impact on rents at this stage y Private Equity: close monit
Slide 67: How to Achieve Sustainable Performance?
HOW TO ACHIEVE SUSTAINABLE PERFORMANCE? Discipline, reactivity, deep analysis and selectivity Value creation is switching from asset allocation to asset picking Key success factors to achieve relevant asset picking Strong proprietary . . financial and ESG Local footprint y During the last 10 years o
Slide 68: Fundraising Pipeline
FUNDRAISING PIPELINE Combination fundraising of flagship funds and launch of additional strategies Private debt Real Estate Private equity Capital Markets — S y TDLV y Club deals under study y Finalization of T2 and y Grow current Fixed * CLOVI Fundraising for Sofidy TGE Il fundraising Income & Equi
Slide 69: Create, Not Compete
« CREATE, NOT COMPETE » "l ia ) FY 2019 RESULTS PRESENTATION a Tikehau Capital 69
Slide 70: Q&A session
Q&A session "l a ) FY 2019 RESULTS PRESENTATION a Tikehau Capital 70
Slide 71: Contacts
CONTACTS Paris 32, rue de Monceau 75008 Paris FRANCE, Phone: +33 1 40 06 26 26 Madrid Calle de Velazquez 98 28 006 Madrid SPAIN Phone: +34 91 048 1666 New York 412 West 15th St. 18th Floor New York, NY 10011 UNITED STATES. Phone: +1 212 922 3734 Singapore 8, Marina View #15-07A Asia Square Tower 1 S
Slide 72: Tikehau Capital
TIKEHAU CAPITAL 32, rue de Monceau - 75008 Paris - France Phone: +33 1 40 06 26 26 Fax: +33 1 40 06 09 37