Partners Group Holding AG · SIX:PGHN
Partners — H1 2022 Earnings Presentation
26 slides from Partners's earnings presentation, Aug 30, 2022
Slide 1: Interim results 2022
Interim results 2022 David Layton Chief Executive Officer | Hans Ploos van Amstel Chief Financial Officer Version 1 | Private Equity For Institutional Use Only – Not for Public Distribution
Slide 2: How we deliver sustainable growth
INTERIM RESULTS 2022 2 How we deliver sustainable growth Investments Clients Financials Market with uncertain Thought leadership in Underlying business dynamics; focus remains on bespoke solutions growth translates into thematic investing and continues to drive H1 mgmt. fees of entrepreneurship at s
Slide 3: Private markets investment and fundraising activity continues amid higher uncertainty
INTERIM RESULTS 2022 3 Private markets investment and fundraising activity continues amid higher uncertainty Private markets investments1 (USD bn) • After an exceptional 2021, and amidst economic uncertainty, investment volumes 851 are returning to mean levels 578 498 486 463 485 396 366 avg. 286 33
Slide 4: Thoughtful investment approach
INTERIM RESULTS 2022 4 Thoughtful investment approach Partners Group's base case and asset testing scenarios1; we began Conservative scenario building higher inflation into our valuations several years ago applied Base case Asset testing Asset testing Inflationary Stagflation Anemic growth Stock mar
Slide 5: Thematic investing allows us to identify the right assets throughout market cycles
INTERIM RESULTS 2022 5 Thematic investing allows us to identify the right assets throughout market cycles Private Private infra. equity Theme: EaaS solution provider for the measurement, reduction, Theme: long-term growth and management of energy drivers within accessible and demand and consumption
Slide 6: Entrepreneurship at scale drives our private equity direct lead portfolio
INTERIM RESULTS 2022 6 Entrepreneurship at scale drives our private equity direct lead portfolio Thematic investing Continued profitable growth across Partners 1 Identifying the most attractive growth trends across sectors and investing into businesses Group's private equity direct portfolio (Q1 las
Slide 7: Profitable growth of underlying portfolio mitigated adverse mark-to-market movements
INTERIM RESULTS 2022 7 Profitable growth of underlying portfolio mitigated adverse mark-to-market movements Net direct portfolio performance overview Partners Group portfolio1 H1 2022 Last 10 years YTD as of 30 June 2022 Private equity -5.2% 17.6% Private debt -0.3% 6.2% Private infrastructure 1.7%
Slide 8: ESG is deeply embedded in our corporate culture
INTERIM RESULTS 2022 8 ESG is deeply embedded in our corporate culture 1 Corporate Level Scope 3 emissions exclude Scope 3 emissions from “category 15: investments” (GHG Protocol), which are addressed at the Portfolio Level. Note: For illustrative purposes. Source: Partners Group (2022).
Slide 9: How we deliver sustainable growth
INTERIM RESULTS 2022 9 How we deliver sustainable growth Investments Clients Financials Market with uncertain Thought leadership in Underlying business dynamics; focus remains on bespoke solutions growth translates into thematic investing and continues to drive H1 mgmt. fees of entrepreneurship at s
Slide 10: Continued diversified fundraising by region and type of client
INTERIM RESULTS 2022 10 Continued diversified fundraising by region and type of client Assets raised by region1 Assets raised by client type1 Australia Asia Switzerland 8% Distribution partners / 6% 11% Middle East private individuals Public pension funds Germany & Austria & SWFs 3% 28% 12% 22% Sout
Slide 11: Assets raised diversified across platform
INTERIM RESULTS 2022 11 Assets raised diversified across platform Assets raised by asset class1 Breakdown by program structure2 Private infrastructure 20% Traditional client programs 29% Private real estate USD USD Private equity 4% 13 billion 13 billion 51% Evergreens Bespoke Evergreens Private deb
Slide 12: Opening private markets for private wealth investors
12 INTERIM RESULTS 2022 Opening private markets for private wealth investors HNW capital allocations to private equity1 We have been at the forefront of providing tailored private markets investment (USD bn) solutions for private clients with today USD 40bn of total AuM2 (selection of evergreen fund
Slide 13: Managing complexity for large clients with our comprehensive mandate solutions
INTERIM RESULTS 2022 13 Managing complexity for large clients with our comprehensive mandate solutions Average private markets allocation of top We manage >140 mandates, representing USD 45 billion of AuM3 , which cater 25 institutional investors1 to the desired risk/return and diversification profi
Slide 14: Full-year 2022 guidance confirmed
INTERIM RESULTS 2022 14 Full-year 2022 guidance confirmed AuM, client demand, and other effects (in USD billion) 2022 guidance 22 to 26 Client demand 25.0 127 16.0 109 16.5 Tail-downs & 94 -10 to -12 redemptions1 15.7 83 -8.3 74 -8.1 -7.1 +1.6 +/- FX & other2 -5.6 +7.1 FX & other2 (no guidance) FX &
Slide 15: How we deliver sustainable growth
INTERIM RESULTS 2022 15 How we deliver sustainable growth Investments Clients Financials Market with uncertain Thought leadership in Underlying business dynamics; focus remains on bespoke solutions growth translates into thematic investing and continues to drive H1 mgmt. fees of entrepreneurship at
Slide 16: Continued strong underlying growth and profitability
INTERIM RESULTS 2022 16 Continued strong underlying growth and profitability H1 2022 financial highlights Average AuM Management fees1 Revenues2 EBIT (in CHF billion) (in CHF million) (in CHF million) (in CHF million) +19% +18% -22% -19% 122 1’130 103 809 881 688 702 39% Perf. 570 8% fees 62% 65% EB
Slide 17: AuM growth and disciplined pricing drive solid management fee growth
INTERIM RESULTS 2022 17 AuM growth and disciplined pricing drive solid management fee growth Revenues (in CHF million) 1'130 -22% • H1 mgmt. fee growth of 69+81% 881 Revenues1 18% year-on-year, 442 supported by strong AuM (39%) 72 Performance fees growth & pricing discipline (8%) 623 79 Other revenu
Slide 18: Market volatility has led to the postponement of exit activities originally planned for H1
INTERIM RESULTS 2022 18 Market volatility has led to the postponement of exit activities originally planned for H1 Partners Group's underlying portfolio realizations (in USD billion) 29.1 1• 2021 included a catching up in exit activities from 2020 2• In late 2021 several sizeable exits were H2 accel
Slide 19: Outlook on 2022 performance fees: temporarily below mid- to long-term guidance
INTERIM RESULTS 2022 19 Outlook on 2022 performance fees: temporarily below mid- to long-term guidance Performance fee as a proportion of total revenues Exceptional 20-30% Performance fees1 Full-year 2022 46% guidance <20% 26% Management fees2 70-80% “contractually recurring” >80% 54% 74% 94% 2016-2
Slide 20: Performance fee potential is expected to follow AuM growth over time
INTERIM RESULTS 2022 20 Performance fee potential is expected to follow AuM growth over time AuM and performance fee development 131 …translates 127 1500 AuM (in USD billion) into future 120 Performance fees (in CHF million) 109 performance 1200 1'197 fee potential 94 100 83 74 80 900 Past AuM… 57 6
Slide 21: Continued stability of management fees
INTERIM RESULTS 2022 21 Continued stability of management fees Revenue margin1 2.41% Performance fees Management fees2 1.89% 1.82% 46% 1.74% 1.71% 30% 29% 1.51% 1.44% Performance 24% 1.35% 1.36% 1.36% 1.39% 1.33% 1.39% 1.38% 30% 8% fees as % of 1.25% 1.26% 1.23% 19% total revenues 1.33% 1.29% 1.29%
Slide 22: Strong EBIT margin; continued investments at ~60% target margin to support growth
INTERIM RESULTS 2022 22 Strong EBIT margin; continued investments at ~60% target margin to support growth Revenues, costs and EBIT development (in CHF million) H1 2022 H1 2021 Revenues1 881 -22% 1'130 Total operating costs, of which -311 -27% -428 Personnel expenses2 -247 -35% -382 Personnel expense
Slide 23: EUR and USD exchange rate fluctuations impact revenues and costs as we report in CHF
INTERIM RESULTS 2022 23 EUR and USD exchange rate fluctuations impact revenues and costs as we report in CHF Currency exposure in H1 2022 Others GBP 6% 7% Others EUR EUR 5% 4% 42% SGD 12% USD AuM ≈ GBP 28% Management 11% Costs2 fees1 CHF 40% USD 45% 1 Includes management fees and other revenues, net
Slide 24: Strong financials, balance sheet and liquidity
INTERIM RESULTS 2022 24 Strong financials, balance sheet and liquidity Key financials (in CHF million, except for per share data in CHF) Balance sheet (as of 30 June 2022) H1 2022 H1 2021 Revenues1, of which 881 -22% 1'130 Management fees2 Performance fees 809 72 +18% -84% 688 442 0.7 37% Total oper
Slide 25: Contacts
25 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 26: Disclaimer
IMPORTANT NOTICE 26 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 2022 Earnings Presentation on 6ix