Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — FY2021 Earnings Presentation
47 slides from Tikehau Capital Sca's earnings presentation, March 2022
Slide 1: Tikehau Capital FY21 earnings call
Tikehau Capital FY21 earnings call Antoine Flamarion Mathieu Chabran Henri Marcoux Live from Milan Live from New York Live from Paris FY21 RESULTS PRESENTATION Tikehau Capital 1
Slide 2: Table of Contents
TABLE OF CONTENTS 1 Executive Summary p. 3 3 Financial review p. 20 2 Operating review p. 6 4 Outlook p. 32 FY21 RESULTS PRESENTATION Tikehau Capital 2
Slide 3: 2021 Key Figures Group
2021 KEY FIGURES GROUP OPERATING €34.3bn €5.5bn €1.5bn €6.4bn Group AuM at 31 Dec 2021 Capital deployment Realizations Net new money 98% +83% Driven by private debt +53% of FY22 guidance vs. 3-year average & real assets strategies vs. 3-year average FINANCIALS €95m €243m €319m €1.0 Fee-related earni
Slide 4: A Solid Growth Track Record
A SOLID GROWTH TRACK RECORD AM Tikehau Capital delivers on its strategy set at the time of its IPO Fee-paying AuM Management fee rate Revenue from Asset Mgt activity €bn bps €m +36% 28.4 +27 102 282.8 CAGR 23.2 bps +48% CAGR 19.9 92 92 204.8 16.2 174.8 81 125.8 9.2 75 6.0 71 57.9 39.4 2016 2017 2018
Slide 5: Robust and Relevant Set-up in a Deteriorated Geopolitical Context
ROBUST AND RELEVANT SET-UP IN A DETERIORATED GEOPOLITICAL CONTEXT Geopolitical uncertainties raised with the conflict Current context accelerates megatrends on which between Russia and Ukraine Tikehau Capital is positioned No short-term impact on the Group’s activities: no Energy transition and cybe
Slide 6: Operating review
1 Operating review FY21 RESULTS PRESENTATION Tikehau Capital 6
Slide 7: An outstanding year for the asset management activity
1 An outstanding year for the asset management activity driven by positive flywheel effect 2 Resilient investment portfolio activity with continued value-creating asset rotation FY21 RESULTS PRESENTATION Tikehau Capital 7
Slide 8: Outstanding Momentum at Every Level of Our AM
OUTSTANDING MOMENTUM AT EVERY LEVEL OF OUR AM ASSET MANAGEMENT OPERATING MODEL SELECTIVE INVESTMENTS RECORD LEVEL OF 1 FUNDRAISING €5.5bn deployed in 2021 €6.4bn 3 2021 net new money SOLID PERFORMANCE 2 €1.5bn FY21 realizations FY21 RESULTS PRESENTATION Tikehau Capital 8
Slide 9: Acceleration in Fund Deployment over 2021
1 ACCELERATION IN FUND DEPLOYMENT OVER 2021 AM Deployment by the Group’s closed-end funds 2021 deployment driven by Private Debt +83% 5.5 funds, followed by Real Assets vs. 3-year average High level of discipline and selectivity 97% of exclusion rate on average(2) ESG criteria fully integrated into
Slide 10: Selected 2021 Landmark Transactions
1 SELECTED 2021 LANDMARK TRANSACTIONS AM Private Equity Largest PE transaction Value-add First transaction in Portugal Energy Real Estate Transition 4,000 property units (95% residential) Date Date September 2021 June 2021 Listed REIT in Unitranche arrangement for Singapore First investment in Franc
Slide 11: €1.5bn of Realizations in 2021
2 €1.5BN OF REALIZATIONS IN 2021 AM Funds realizations 2021 realizations driven by the Group’s PRIVATE EQUITY Private Debt and Real Assets strategies REAL ASSETS 6% • x2 in realizations for Real Assets Private Equity strategies still mainly in 24% investment phase €1.5bn Q1 2022 Private Equity dives
Slide 12: Strong Realized Returns within TKO Funds
2 STRONG REALIZED RETURNS WITHIN TKO FUNDS AM Gross IRR(1) on exited transactions >10% >10% >30% >30% >15% >1.4x >1.5x 1.6x 1.5x Gross MOIC(1) on exited transactions 1.2x 1.2x 1.2x TDL III (2) TDL IV (2) TSO II (2) TGES (2) Star America I (3) Tikehau Real Tikehau Real Estate II Estate III Real Estat
Slide 13: Record Fundraising Level in 2021
3 RECORD FUNDRAISING LEVEL IN 2021 AM €22.1bn of cumulative AM Net New Money since 2017 6.4 +53% Compared to the average yearly 4.3 4.2 fundraising over 2018-20 4.1 4.0 3.1 Demonstrates the strong performance H2 of the Group’s strategies and the continued interest of investors in the 2.4 €bn asset c
Slide 14: Main 2021 Achievements
3 MAIN 2021 ACHIEVEMENTS AM Rapid scaling of flagship Successful innovative Continued institutionalization strategies initiatives of the firm 5th vintage of direct lending Launch of private debt Launch of private equity €2bn client commitments secondaries aerospace and defence fund at 31 Dec. 2021 c
Slide 15: Strong Inflows from International Clients
3 STRONG INFLOWS FROM INTERNATIONAL CLIENTS AM 53% of third-party inflows coming Growth in international AuM from international clients largely exceeding Group AuM growth 2016 2021 x3.4 €34.3bn €10bn 53% Group AuM 34% Inflows from 44% international clients x5.8 €12.1bn 66% 47% Inflows from €2.1bn Fr
Slide 16: Continued Diversification of Our Client Base
3 CONTINUED DIVERSIFICATION OF OUR CLIENT BASE AM Clients by category (31 December 2021) >20% Launch of a Private Wealth 4% 10% Tikehau Capital group 6% Solutions Group in September 2021, aiming at enhancing the Asset Managers, Banks & 15% Group’s direct engagement with Institutionals €33.0bn family
Slide 17: Resilient investment portfolio activity
1 An outstanding year for the asset management activity driven by positive flywheel effect 2 Resilient investment portfolio activity with continued value-creating asset rotation FY21 RESULTS PRESENTATION Tikehau Capital 17
Slide 18: Investment Portfolio as at 31 December 2021 (1/2)
INVESTMENT PORTFOLIO AS AT 31 DECEMBER 2021 (1/2) IM # of investments 206 211 229 2.7 2.3 2.4 2022 guidance 0.7 (25%) Ecosystem and direct Investment portfolio investments 65-75% exposed to Tikehau Capital own asset management strategies 2.0 (75%) funds High-end of 2022 guidance achieved (€bn) 31-De
Slide 19: Investment Portfolio as at 31 December 2021 (2/2)
INVESTMENT PORTFOLIO AS AT 31 DECEMBER 2021 (2/2) IM +€0.7bn €(0.6)bn +€0.2bn €2.7bn €2.4bn 681 569 Non-listed investments (25%) Mainly disposal Value Ecosystem of a number of appreciation 112 Listed investments 823 and direct listed across portfolio investments Mainly invested 136 Capital Markets S
Slide 20: Financial review
2 Financial review FY21 RESULTS PRESENTATION Tikehau Capital 20
Slide 21: Continued Increase in Fee-Paying AuM in 2021
CONTINUED INCREASE IN FEE-PAYING AUM IN 2021 AM 33.0 86% 96% 27.4 of AuM is fee-paying at of AuM in closed-end 31 December 2021 funds have duration 23.6 Stable level compared above 3 years to 2020 20.4 +22% +36% 11.4 28.4 23.2 fee-paying AuM growth 2016-2021 CAGR 19.9 in 2021 for fee-paying AUM 16.2
Slide 22: Management Fee Rate Maintained at a High Level
MANAGEMENT FEE RATE MAINTAINED AT A HIGH LEVEL AM +31 bps in management fee margin since 2017, reflecting the accretive evolution of Tikehau Capital’s business mix towards higher fee-generating strategies 102 +31bps 92 92 81 71 2017 2018 (1) 2019 2020 2021 (1) 2018 proforma (integrating full-year co
Slide 23: 93% of AM Revenues Come from Management Fees
93% OF AM REVENUES COME FROM MANAGEMENT FEES AM 282.8 +49% 19.2 Strong contribution from the Group’s CAGR 2017-21 UCITS 204.8 174.8 6.3 8.5 125.8 3.5 263.6 +33% +49% 198.6 Yoy Growth CAGR 2017-21 57.9 166.3 4.1 122.3 53.8 (€m) 31-Dec-2017 31-Dec-2018 31-Dec-2019 31-Dec-2020 31-Dec-2021 (proforma, in
Slide 24: Strong AM EBIT Increase Primarily Due to FRE
STRONG AM EBIT(1) INCREASE PRIMARILY DUE TO FRE AM 114.1 19.2 2022 FRE target is +104% 100.0 76.4 94.9 FRE CAGR 95% achieved 6.3 2016-2021 one year ahead 58.5 70.2 8.5 39.5 3.5 50.0 16.0 36.0 3.5 4.1 AM EBIT (1.0) €m 1.9 0.8 11.9 2.7 (2.9) (2) 2015 2016 2017 2018 2019 2020 2021 - 2022 FRE target FRE
Slide 25: FRE Margin Trends Significantly Upwards
FRE MARGIN TRENDS SIGNIFICANTLY UPWARDS AM Increased scalability and business mix improvement are driving FRE margin up AM EBIT margin, including realized PRE, structurally exceeds FRE margin 37.3% 40.3% 33.5% 36.0% 31.4% 35.3% 27.6% 29.4% 30.1% 22.1% 8.9% 7.0% (1) 2015 2016 2017 2018 2019 2020 2021
Slide 26: Performance-Related Earnings Potential
PERFORMANCE-RELATED EARNINGS POTENTIAL AM 1.6x in AuM eligible to carried interest since 31 December 2019 14.0 11.2 +25% +80% AuM eligible for carried AuM eligible to carried 9.2 interest growth yoy interest, currently 8.6 invested and above 6.3 hurdle rate growth yoy 5.1 5.5 2.7 3.0 Tikehau Capital
Slide 27: Robust Portfolio Performance in 2021
ROBUST PORTFOLIO PERFORMANCE IN 2021 IM Growth vs. TKO funds contributed 40% to total portfolio revenues in 2021 2020 Portfolio gross return(1) 13% 4% 15% 386.9 Total portfolio 277.8 x4.6 revenues Total portfolio revenues 230.7 Ecosystem & direct investments 84.9 x2.7 TKO funds revenues (€m) 156.2 T
Slide 28: Realized Portfolio Revenues in 2021
REALIZED PORTFOLIO REVENUES IN 2021 IM Growth vs. Realized portfolio revenues multiplied by 1.8x in 2021 2020 243.1 33.5 104.8 Other x1.8 Realized portfolio revenues 133.9 130.9 Listed investments 104.1 +8% 138.3 Dividends, coupons and distribution 78.7 TKO funds (€m) 2019 2020 2021 2021 2021 Realiz
Slide 29: Simplified Consolidated P&L
SIMPLIFIED CONSOLIDATED P&L GROUP Proforma Published Published Evolution (post-reorg.) vs. FY20 In €m FY20 FY20 FY21 publ. Management fees & other revenues 198.6 198.6 263.6 +33% Operating costs (128.4) (128.4) (168.7) +31% Fee-Related Earnings (FRE) 70.2 70.2 94.9 +35% FRE up 35% and FRE margin of
Slide 30: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET GROUP Very solid financial structure, supporting the Group’s strategy BBB- / stable outlook credit rating confirmed by Fitch Ratings to Tikehau Capital in January 2022 Robust equity structure supporting the business model in €m 31-Dec-21 31-Dec-20 ∆ Investment portfolio Ca
Slide 31: Proposed Shareholder Distribution
PROPOSED SHAREHOLDER DISTRIBUTION GROUP €1.00 proposed distribution per share €1.00 x2 vs. 2020 distribution level Linked to the strong value 0.40 creation resulting from the active 0.50 rotation of the Group’s portfolio +20% 0.60 Represents 92% of Asset Management EBIT 0.50 0.50 0.50 In line with t
Slide 32: Outlook
3 Outlook FY21 RESULTS PRESENTATION Tikehau Capital 32
Slide 33: Outlook
OUTLOOK 2022 target Metric 31 Dec. 2021 figure (announced in 2019) Group AuM €34.3bn >€35bn 98% achieved one year ahead Fee-Related €94.9m >€100m 95% Earnings (FRE) achieved one year ahead Share of Tikehau Capital funds in 75% 65-75% 100% achieved investment portfolio Updated outlook released during
Slide 34: Q&A
5 Q&A FY21 RESULTS PRESENTATION Tikehau Capital 34
Slide 35: Appendix
6 Appendix FY21 RESULTS PRESENTATION Tikehau Capital 35
Slide 36: A Large Spectrum of Investment Expertise
A LARGE SPECTRUM OF INVESTMENT EXPERTISE GROUP A comprehensive offering across asset classes and investment vehicles DIRECT INVESTMENTS €1.3bn CAPITAL MARKETS STRATEGIES PRIVATE DEBT €5.1bn €11.7bn • Fixed Income • Direct Lending • Equity • Secondaries PRIVATE EQUITY €34.3bn • • Leverage Loans CLOs
Slide 37: Fee-Paying AuM and Management Fee Rate by Strategy
FEE-PAYING AUM AND MANAGEMENT FEE RATE BY AM STRATEGY In €bn 2017 2018 PF 2019 2020 2021 Real assets 1,880 6,409 7,775 8,925 10,188 Private debt 4,266 5,658 6,727 7,269 9,670 Capital markets strategies 3,097 3,234 3,810 4,184 5,124 Private equity 48 893 1,637 2,296 3,383 Total Fee-paying AuM 9,214 1
Slide 38: Deployment and Realizations Examples
DEPLOYMENT AND REALIZATIONS EXAMPLES AM Private Debt Real Assets Private Equity Investment Residential portfolio Investment Exit Aug. & Oct. Jun. 2021 Q1 2022 2021 Aug. 2021: €140m Unitranche to Acquisition of a portfolio of c.4,000 units, Investment date: November 2019 refinance existing debt mainl
Slide 39: 2021 Fee-Paying AuM Analysis
2021 FEE-PAYING AUM ANALYSIS AM High fee-paying base, with long duration on closed-ended funds AuM breakdown (AM activities) Fee-paying AuM by duration 2021 2021 5% 9% 6% 1.8 18% 2.8 28% €28.4bn €33.0bn fee-paying AM AuM AuM 24% 3% 86% 28.4 21% Fee-paying Future fee-paying Non-fee paying Capital mar
Slide 40: Continued Increase in AM Profitability
CONTINUED INCREASE IN AM PROFITABILITY AM Growth vs. Strong ramp-up in Asset Management EBIT (1) and AM EBIT margin since 2015 2020 40.3% 37.3% 33.5% 114.1 +3.0pts AM EBIT margin 31.4% 27.6% 76.4 +49% AM EBIT 58.5 39.5 +38% AM net revenues 8.9% 16.0 +31% €m (1.0) 3.5 AM costs 2015 2016 2017 2018 (1)
Slide 41: Robust Portfolio Performance in 2021
ROBUST PORTFOLIO PERFORMANCE IN 2021 IM Portfolio gross return 13% 4% 15% 386.9 TKO funds: €77m Total 277.8 143.8 Non-listed investments: €56m Listed investments: €11m Unrealized change in fair value 84.9 TKO funds: €79m 243.1 Non-listed investments: €34m Realized portfolio Listed investments: €131m
Slide 42: Focus on TKO Funds
FOCUS ON TKO FUNDS IM Increasing contribution of dividends, coupons and distributions in TKO funds revenues €156m of revenue from TKO funds, evenly split between realized revenue and unrealized change in fair value (€m) 156.2 156.2 Evolution and breakdown of realized revenue (€m) 243.1 77.4 Driven b
Slide 43: 5.1 Years of Average Debt Maturity
5.1 YEARS OF AVERAGE DEBT MATURITY GROUP A well spread debt repayment schedule, no maturity before 2023 Financial indebtedness as 31 December 2021 and amortization plan Amortization Plan €2,000m 2017 Bond - €0.3bn 2019 Bond - €0.5bn 0.7 2021 Sustainable Bond - €0.5bn €1,300m RCF - €0.7bn - Undrawn 0
Slide 44: Stock Price Evolution since 1 January 2022 (Base 100)
STOCK PRICE EVOLUTION SINCE 1 JANUARY 2022 (BASE 100) -2.4% -17.0% -17.9% -19.2% -21.4% -24.1% -26.9% -28.4% -31.4% -36.9% -45.3% -44.4% FY21 RESULTS PRESENTATION Tikehau Capital 44
Slide 45: 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 46: 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 47: 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