Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — H1 2022 Earnings Presentation
45 slides from Tikehau Capital Sca's earnings presentation, Jul 28, 2022
Slide 1: H1 2022 Results Presentation
CAPITAL H1 2022 RESULTS PRESENTATIO rE” ) TIKEHAU kx 28 July 2022
Slide 2: Agenda
LAN AGENDA | Key highlights p.3 2? Operating review p.6 3 Financial review p.19 ia a H1 2022 RESULTS PRESENTATION kK ) Tikehau Capital 4 Outlook 5 Appendix
Slide 3: Key highlights
Key highlights a | y H1 2022 RESULTS PRESENTATION Tikehau Capital
Slide 4: H1 2022 Highlights
H1 2022 HIGHLIGHTS ste) Benefits of dual growth model playing out leading to resilient net income for the first half Strong investment portfolio performance driven by own strategies and ecosystem investments Robust asset management fundraising coupled with continued selectivity in deployment Acceler
Slide 5: Relevant set-up in a highly challenging market environment
RELEVANT SET-UP IN A HIGHLY CHALLENGING MARKET ENVIRONMENT Strong selectivity in a cycle characterized by excess leverage and unreasonable valuations ia a H1 2022 RESULTS PRESENTATION kK ) Tikehau Capital Focus on downside protection and megatrends Resilient client demand 4 Attractive investment opp
Slide 6: Operating review
Operating review ia a H1 2022 RESULTS PRESENTATION kK ) Tikehau Capital
Slide 7: Continued virtuous flywheel effect for the asset management activity
Continued virtuous flywheel effect for the asset management activity High-performing investment portfolio driven by both own strategies and ecosystem investments ia a H1 2022 RESULTS PRESENTATION kK ) Tikehau Capital
Slide 8: Continued discipline in fund deployment
CONTINUED DISCIPLINE IN FUND DEPLOYMENT Step-up in deployment in line with the growth of the Group’s AM platform 3.3 3.3 Private Equity 0, 1.8x 18% & Special Ops. 97 % Exclusion rate on average) SEP Real Assets xclusion rate on average! €5.8bn Private Debt Dry powder within AM funds (30 June 2022) 1
Slide 9: Funds realizations generating robust performance
FUNDS REALIZATIONS GENERATING ROBUST PERFORMANCE © Funds realizations by asset class in H1 2022 Examples of exits Private Equity PRIVATE EQUITY Growth Equity I! Energy Transition | Energy Transition | & SPECIAL OPS. AAassiTEca ‘greenyellow a consultative broker SWIFT T0 PROFITABLE ENERGY!) BBs Dispo
Slide 10: A granular exposure with strong resilience
A GRANULAR EXPOSURE WITH STRONG RESILIENCE Strong sector diversification High Tech industries I 69, Business Services NS so. Sankng EE 5% Healthcare & Pharma | 5% Construction & Building = 4% ‘Aerospace & Defense 3% Capital Equipment 3% Telecommunications 2% Automotive (NN 29% Consumer Goods - Durab
Slide 11: High discipline in selecting quality assets
HIGH DISCIPLINE IN SELECTING QUALITY ASSETS © 44x >95% >+50% c.l0% Average leverage at 30 June 2022 Rent collection rate in H1 20222) YoY portfolio companies Average margin across (vs. 4.7x for predecessor fund)! revenue growth (LTM) the portfolio 10) 0 0 82% >80% >1.4x« c.85% % of first-lien debt i
Slide 12: High client demand for our strategies
HIGH CLIENT DEMAND FOR OUR STRATEGIES Solid fundraising momentum maintained in H1 2022 3.2 3.2 €3.5bn 436% OSE Private Equity HI 2022 Net New Money A for private markets strategies 2. 14 Real Assets 0.4 +77% YoY growth in - (Fae Es Net New Money 8 for private markets strategies UW (03) ln USO Capita
Slide 13: An increasingly global & diversified client base
AN INCREASINGLY GLOBAL & DIVERSIFIED CLIENT BASE © Strong client recognition in an out of our home market @ Tikehau Capital 38% <a = France m Europe €35.6bn AM AuM at 30 June 2022 a Asia = North America = RoW International investors account for €13.4bn +32% 38% 55% of AM AuM yoy growth of AM AuM of
Slide 14: Our impact platform is moving to the next level
OUR IMPACT PLATFORM IS MOVING TO THE NEXT LEVEL®) Sustainability- Value-Add themed strategies Cybersecurity Impact Lending Real Estate II amate Climate & Private Equity Private Equity Private Equity Private Equity biodiversity dedicated strategies T2 Energy Tikehau Green Assets Regenerative — Decarb
Slide 15: High recognition of sustainability strategy
HIGH RECOGNITION OF SUSTAINABILITY STRATEGY January 2022 ESG Score for Tikehau Capital, IN DU. ST RY Low-Risk category TOP RATED Osemmurncs 12.0 | g Top 1% within the Asset Management & Custody Services industry () sustanarrtics _ (434 companies rated) ESG _ REGIONAL Top 4% universe (14,899 companie
Slide 16: High-performing investment portfolio driven by own strategies and ecosystem investments
High-performing investment portfolio driven by both own strategies and ecosystem investments ste) H1 2022 RESULTS PRESENTATION Tikehau Capital 16
Slide 17: Investment portfolio at June 2022 (1/2)
INVESTMENT PORTFOLIO AT 30 JUNE 2022 (1/2) +€878m €(260)m +€56m €3,001m | — €2,685m Ecosystem & direct ww investments Mainly Including returns Value Positive €/$ investments in of capital appreciation FX effects TKO AM across portfolio strategies and assets co-investments rer IX ) 2,116 Strategies’)
Slide 18: Investment portfolio at June 2022 (2/2)
INVESTMENT PORTFOLIO AT 30 JUNE 2022 (2/2) © «= © @ @ investments Co-investments alongside 3.5 ox TKO AM strategies — ha 12% 2.9 a 27 “ y , Ecosystem and direct investments Fair value of TKO strategies at 30 June 2022 ava oO Strategies") = a al TKO AM funds lll Oe 86% 30-Jun-2022 30-Jun-2021 31-Dec-
Slide 19: Financial review
Financial review "hy H1 2022 RESULTS PRESENTATION kK ) Tikehau Capital
Slide 20: Fee-paying AuM growing faster than AM AuM
FEE-PAYING AUM GROWING FASTER THAN AM AUM © 35.6 86% 91% 29.4 of AuM is fee-paying at of AuM in closed-end 24.0 30 June 2022 funds have duration > 3y AM AuM 21.2 Future fee-paying & non fee-paying AUM 425% 421% 24.4 Fee-paying AuM Fee-paying AuM 20.3 YoY growth 2019-2022 CAGR Fee-paying AUM 17.4 g 3
Slide 21: 97% of AM revenues come from management fees
97% OF AM REVENUES COME FROM MANAGEMENT FEES © +24% 144.41 GNGRaR 190.0 48 » Driven by several historical strategies gradually : maturing & UCITS 1A 88.3 0 0 AM revenues 75.9 1.2 +15 Yo +23 % Performance fees 0.9 4244 » & carried interest : YoY growth CAGR 2019-22 87.4 Management fees & 75.0 others"
Slide 22: Management fee rate maintained at a high level
MANAGEMENT FEE RATE MAINTAINED AT A HIGH LEVEL © 102 103 y Management fee rate maintained at a high 92 92 level 81 y Favourable mix in Private Debt (notably Direct Lending) (ops) 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 30-Jun-22 Kk ) H1 2022 RESULTS PRESENTATION Tikehau Capital 22
Slide 23: FRE and FRE margin evolution
FRE AND ERE MARGIN EVOLUTION © y Catch up in platform investments since H2 2021 FRE margin 26.2% 31.5% 36.7% 29.2% y Objective of supporting growth initiatives and reinforcing the Group’s set-up ahead of dislocations and opportunities Management fees 4214 a & others 874 98.6 75.0 AM operating costs
Slide 24: Performance-related earnings potential
PERFORMANCE-RELATED EARNINGS POTENTIAL 2.1% in AuM eligible to carried interest since 30 June 2019 +26% 4 18.8 0 5 +26% +82% AuMeligible for carried AuM eligible to carried interest growth yoy interest, currently invested and above hurdle rate growth yoy a 5 A 8 Tikehau Capital’s approach to carried
Slide 25: Strong portfolio performance in H1 2022 (1/2)
STRONG PORTFOLIO PERFORMANCE IN HI 2022 (1/2) © TKO funds contributed 48% to total portfolio revenues in H] 2022 __ Se 275 y 9% increase in portfolio revenues, in spite of tough comps due to listed stakes in H1 2021 Total portfolio revenues 252 y Strong contribution from TKO strategies in H1 2022 y
Slide 26: Strong portfolio performance in H1 2022 (2/2)
STRONG PORTFOLIO PERFORMANCE IN HI 2022 (2/2) © Portfolio gross return() +9% Total portfolio revenues 252 ee 275 y TKO strategies: €80m ) x2.6 Unrealized change in fair value y Ecosystem & direct investments: €116m (mainly driven by positive change in fair value Univision co-investment) Realized por
Slide 27: Simplified consolidated P&L
SIMPLIFIED CONSOLIDATED P&L H1 2021 Change vs. H1 2021 PF Management fees & other revenues 121.1 121.1 139.3 +18.1 +15% Operating costs (76.6) (76.6) (98.6) (21.9) +29% Fee-Related Earnings (FRE) 44.5 44.5 40.7 (3.8) -8% FRE margin 36.7% 36.7% 29.2% -7.5 pts Realized PRE 141 141 4.8 +3.7 na AM EBIT.
Slide 28: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET Robust financial structure, supporting the Group’s strategy Investment portfolio Cash & cash equivalents") Other current & non-current assets Total assets Shareholders’ equity - Group share Minority interests Total Group shareholders’ equity Financial debt Other current &
Slide 29: Outlook
"| ig H1 2022 RESULTS PRESENTATION QD Tikehau Capital
Slide 30: Looking ahead
LOOKING AHEAD il Investor allocations for private markets expected to remain well-oriented 7 Resilient set-up to navigate the current unstable geopolitical and economic context with confidence “One-stop-shop” with complementary asset classes offering compelling risk-return profiles for investor-clie
Slide 31: 2026 targets confirmed
2026 TARGETS CONFIRMED ste) Operating leverage ) Value creation > Scalability > H1 2022 RESULTS PRESENTATION Tikehau Capital Targets >€250m Mid-40s 2026 FRE 2026 FRE margin Mid-teens Return on Equity by 2026 >€65bn 2026 AM AuM 31
Slide 32: Appendix
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Slide 33: Appendix
"hy H1 2022 RESULTS PRESENTATION kK ) Tikehau Capital
Slide 34: Successful fundraising in Direct Lending
SUCCESSFUL FUNDRAISING IN DIRECT LENDING Strong support from high-quality global investors for our 5' generation of Direct Lending strategy >35% of commitments from LPs based outside of Europe Direct Lending: scalability at work i of commitments from LPs based outside of France LPs already present i
Slide 35: Strong asset management AuM progression
STRONG ASSET MANAGEMENT AUM PROGRESSION © +0.3 (0.0) 35.6 47.2 29.4 v +36% vs. H1 2021 net new money AM AuM Net New Money Distributions Market effect Change in scope AM AuM (30-Jun-21) (80-Jun-22) are ) H1 2022 RESULTS PRESENTATION QS Tikehauc ‘apital 35
Slide 36: A large spectrum of investment expertise
A LARGE SPECTRUM OF INVESTMENT EXPERTISE A comprehensive offering across asset classes and investment vehicles CAPITAL MARKETS ------ STRATEGIES €4.5bn + Fixed Income + Equity €36.8bn Total AuM at 30 June 2022 +19.0% y-0-y PRIVATE EQUITY €4.5bn Growth Equity Energy Transition / Green Assets + Aero &
Slide 37: Strong realized returns within our funds
STRONG REALIZED RETURNS WITHIN OUR FUNDS Gross IRR" on 9 pete rereectina >10% >10% >40% >30% >15% stay . >1.5x Us 1.5x Gross MOIC") on 12x exited transactions : 1.2x 1.2x ) 2 2 a) ) TDL III TDLIV TSO II TGES Star America | Tikehau Real Estate Il Tikehau Real Estate Ill . . 2 ; Real Estate Real Estat
Slide 38: Strong set-up to capture private clients demand
STRONG SET-UP TO CAPTURE PRIVATE CLIENTS DEMAND © 21% of AM AuM from private investors O Acquisition Dedicated of Sofidy mandate with Sofidy FEEIDEURAM Additions to our | | private clients offering | Acquisition of Homunity homunity® €0.6bn of net new money in H1 2022 O Unit-linked private debt solu
Slide 39: Fee-paying AuM and management fee rate by strategy
FEE-PAYING AUM AND MANAGEMENT FEE RATE BY STRATEGY in €bn . 30-Jun-: g 30-Jun-2020 30-Jun-2021 30-Jun-2022 Real assets 6.4 6.9 8.0 9.3 10.7 Private debt 49 6.0 6.7 7.5 11.8 Capital markets strategies 3.6 3.3 3.8 47 45 Private equity 0.8 1.2 17 3.0 3.6 Total fee-paying AuM 15.6 17.4 20.3 24.4 30.5 in
Slide 40: Tikehau Capital commitments breakdown
TIKEHAU CAPITAL COMMITMENTS BREAKDOWN 3,501 Undrawn commitments €1.0bn Capital Markets Strat. €3.4bn commitments in TKO funds at 30 June 2022 Private Equity Real Assets » Private Debt . Drawn commitments €2.4bn IO Strategies" E S 30-Jun-2022 30-Jun-2022 K yn 2022 RESULTS PRESENTATION yy), 00) vncis
Slide 41: Portfolio revenues breakdown
PORTFOLIO REVENUES BREAKDOWN in €m TKO funds 63.6 116.9 SPACs (0.2) 15 Investments alongside TKO funds 10.7 13.2 TKO strategies 74.2 131.7 Ecosystem investments 64.4 126.1 Other direct investments 113.5 16.9 Ecosystem and direct investments 177.9 143.0 252.1 274.7 Total portfolio revenues kk) H1 202
Slide 42: Deployment and realizations examples
DEPLOYMENT AND REALIZATIONS EXAMPLES Private Debt @ (@p trustmarque [Investment June 2022 Y Sector: IT software and hardware YF Strategy: Direct Lending ¥ Unitranche facility to support the One Equity Partners acquisition of Trustmarque Real Assets Ss @HCathcart om July 2022 Rail Sector: Freight rai
Slide 43: 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 44: Disclaimer
DISCLAIMER This Presentation includes certain 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 information i
Slide 45: Tikehau Capital contact details
ive use of the ion of an information nts of this pr option: TIKEHAU CAPITAL 32, rue de Monceau - 75008 Paris - France Phone: +33 1 40 06 26 26 Fax: 1 40 06 09 37