Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — Shareholder Meeting (May 2024)
79 slides from Tikehau Capital Sca's shareholder meeting presentation, May 6, 2024
Slide 1: Annual General Meeting 2024
ANNUAL GENERAL MEETING 2024 6 MAY 2024
Slide 2: General Meeting Opening
GENERAL MEETING OPENING Christian de Labriffe Chairman of the Supervisory Board TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 2
Slide 3: A key player in financing the economy
A key player in financing the economy Global savings The economy are growing is in need of financing Demographic growth Growing financing needs (>20m SMEs in Europe) Population ageing Flexible financing solutions offered by Search for yield and excess return Tikehau Capital (debt, equity, real asset
Slide 4: The three growth engines of our model
The three growth engines of our model € INVEST WITH DISCIPLINE 2 COLLECT SAVINGS Private Debt Real Assets Institutional Governments Private Equity Capital Markets Strategies 1 Individuals Partners 3 GENERATE PERFORMANCE Appreciation Realizations / Coupons / Rents / of assets capital gains Dividends
Slide 5: Robust performance across our three growth engines
Robust performance across our three growth engines 1 2 3 Strong diversification Focus on investment discipline, Financial performance driven by of capital formation across impact and sustainable value operating leverage and Tikehau asset classes, geographies and creation Capital strategies client ty
Slide 6: Solid operational performance since IPO
Solid operational performance since IPO Asset Management AuM AM revenues Fee-Related Earnings (FRE)(1) 2016-23 CAGR +26% +35% +69% 43 322 107 Target >€42.5bn 34% 10 FRE 7% 39 margin 3 €bn €m €m 2016 2023 2016 2023 2016 2023 (1) Fee-Related Earnings, defined as management fees and other revenues less
Slide 7: A Relevant Value Proposition
A RELEVANT VALUE PROPOSITION Antoine Flamarion Co-founder TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 7
Slide 8: Ability to address evolving client needs
Ability to address evolving client needs Recognized midcap investment expertise across asset classes TACTICAL CAPITAL MARKETS PRIVATE DEBT REAL ASSETS PRIVATE EQUITY STRATEGIES STRATEGIES European real estate Financing European Financing special Listed equities and Growth capital midcap companies si
Slide 9: Solid performance across the three engines of our business model
Solid performance across the three engines of our business model Record level of net inflows Dynamic yet highly selective deployment Robust realization momentum €6.5bn €5.9bn €2.4bn Raised in 2023 Deployed in 2023 Realized in 2023 Capital Markets Strat. Private Equity & Private Equity & 3% Special O
Slide 10: Continued discipline in selecting quality assets
Continued discipline in selecting quality assets PRIVATE EQUITY REAL ESTATE PRIVATE DEBT A diversified exposure across Floating rates instruments, Granular portfolio of assets secular themes secured with covenants +22% +23% 95% 9,000+ 25% 4.4x LTM revenue LTM EBITDA Financial occupancy Units across
Slide 11: Our Private Debt Platform
OUR PRIVATE DEBT PLATFORM Cécile Mayer-Lévi Head of Private Debt activity TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 11
Slide 12: European pioneer in Private Debt
European pioneer in Private Debt Secondaries Direct Lending A platform offering strong synergies 5% 360° view of Private Debt 36% CLOs and €18bn Solid sourcing capabilities 41% Private Debt AuM Leveraged loans at 31.12.23 18% +23% Private Debt AuM growth vs 2022 Impact and Corporate Lending TIKEHAU
Slide 13: Differentiating Direct Lending platform
Differentiating Direct Lending platform A wide range of instruments Strong positioning in the mid-market segment… 15-year track record Experienced local Senior Debt teams €7-100m €50m – €1bn EBITDA Enterprise value of of financed companies financed companies Unitranche ESG & active Direct Lending …
Slide 14: Strategy and Outlook
STRATEGY AND OUTLOOK Antoine Flamarion Co-founder TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 14
Slide 15: An increasingly global platform
An increasingly global platform 12% of FTEs in 26% of FTEs in 17 North America Europe(1) & Middle East Offices globally(2) Amsterdam 9% of FTEs in Asia Montreal London Luxembourg 48 New York Brussels Frankfurt Nationalities Seoul Tel Aviv Tokyo Milan Madrid 47% Zurich Abu Dhabi Hong Kong of AM profe
Slide 16: Strong international ambitions
Strong international ambitions AM AuM breakdown by geography Evolution of AuM from non-French investors 1% Non-French investors 8% +19% 16.9 €16.9bn 10% 8% 14.2 39% Tikehau Capital France of AM AuM at 31/12/23 €42.8bn Europe 24% AM AuM North America at 31/12/23 Asia 2.1 50% RoW 2016 2022 2023 54% (1
Slide 17: A pioneer in the democratization of private markets
A pioneer in the democratization of private markets Key innovative solutions dedicated to private investors developed since 2019 Dedicated mandate ELTIF(1) 2 Unit-linked solutions Distribution Strategic Innovative 2 unit-linked solutions partnership partnership digital platform with a leading bank i
Slide 18: Our balance sheet investment portfolio is increasingly exposed to our AM strategies
Our balance sheet investment portfolio is increasingly exposed to our asset management strategies Investment portfolio mix (€m) 3,858 3,527 Capital Markets Co-investments Ecosystem & Strategies 795 3% 5% 2,685 direct investments 2,410 2,336 Private Debt 79% 3,063 Tikehau Capital 36% 2,083 Private st
Slide 19: Alignment of interests: a key differentiator
Alignment of interests: a key differentiator Unique alignment of interests powered by a robust equity base Management Management is the #1 shareholder controlling 58% of the Group’s capital Shareholders A solid investment portfolio 79% invested in the strategies managed by the Group Investor-Clients
Slide 20: Key value-creation levers
Key value-creation levers Our growth playbook 2024 Action Mid-term targets Expand flagship strategies ✓ Scalability >€65bn 2026 AM AuM Operating leverage >€250m Scale up innovation ✓ 2026 FRE Mid-teens Return on Equity by 2026, driven by Enhance international development Value creation and partnersh
Slide 21: Our Sustainability-Themed and Impact Platform
OUR SUSTAINABILITY-THEMED AND IMPACT PLATFORM Laure Villepelet Head of Goup ESG TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 21
Slide 22: Our approach to sustainable value creation
Our approach to sustainable value creation Our climate goals + CARBON EMISSIONS LINKED TO HUMAN ACTIVITIES + 39% ATMOSPHERE of AuM managed in line with Net Zero by 2050 - - CARBON SINKS Global levers INCREASE REDUCING EMISSIONS SEQUESTRATION €5bn dedicated to climate Reducing emissions from Increasi
Slide 23: A sustainability-themed and impact platform to contribute to transition and resilience
A sustainability-themed and impact platform to contribute to transition and resilience DECARBONATION NATURE AND BIODIVERSITY PRIVATE EQUITY PRIVATE EQUITY €7.4bn PRIVATE DEBT CAPITAL MARKETS STRATEGIES in funds dedicated RESILIENCE to real estate assets RESILIENT CITIES €4.3bn in funds PRIVATE EQUIT
Slide 24: Presentation of the 2023 Financial Statements
3. PRESENTATION OF THE 2023 FINANCIAL STATEMENTS Henri Marcoux Group Deputy Chief Executive Officer TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 24
Slide 25: Management fees represent 97% of total AM revenues
Management fees represent 97% of total AM revenues 322 304 283 312 Performance fees and carried interest 294 +5% +35% Management fees growth Management fees vs 2022 2016-23 CAGR Management fees 264 and other fees(1) €m 2021 2022 2023 (1) Include management fees, subscription fees, arrangement fees &
Slide 26: Significant increase in Asset Management profitability
Significant increase in Asset Management profitability 123 +13% 39% Core FRE 109 and margin(1) 37% Management fees 312 Significant improvement in +13% and other fees(2) 294 profitability in H2, Core FRE growth vs 2022 reflecting disciplined €m cost management (185) (189) Operating costs 2022 2023 (1
Slide 27: Increasing contribution from Tikehau Capital strategies to realized portfolio revenues
Increasing contribution from Tikehau Capital strategies to realized portfolio revenues High basis of comparison in 2022(1) 298 • Acceleration of revenue generation in H2 Unrealized portfolio H1: €84m revenues(2) 2023 104 H2: €95m • FY 23 unrealized revenues reflect 179 positive contribution from Tik
Slide 28: Consolidated P&L
Consolidated P&L €m 2022 2023 Management fees and other fees 293.5 312.3 Core FRE up 13%, driven by growth in management fees Core Fee-Related Earnings(1) 108.6 123.0 and disciplined cost management Fee-Related Earnings(2) 96.5 106.8 Asset Management EBIT 107.0 116.8 Investment portfolio revenues 29
Slide 29: Consolidated balance sheet
Consolidated balance sheet Consolidated balance sheet at 31 Dec. 2023 Total €4.9bn €4.9bn €0.2bn Other €3.2bn €1.0bn 78% Other assets €0.8bn liabilities Shareholders’ Equity, Short-term financial ESG-linked debt Group share resources Cash €1.5bn €0.2bn Financial & equivalents Debt Strong investment
Slide 30: Proposed dividend for shareholders
Proposed dividend for shareholders 0.40 0.75 +7% ordinary dividend growth vs 2022 0.50 +7% 0.70 Linked to the strong value creation across the 0.60 Group’s business lines 0.50 0.50 0.50 Greater than the Group's payout objective(1) 0.25 € 2017 2018 2019 2020 2021 2022 2023 Ordinary dividend Special d
Slide 31: Tikehau Capital meets with its shareholders
Tikehau Capital meets with its shareholders 2023 EVENTS OUR PARTNERS 2024 EVENTS June 2023 September 2024 3rd edition of Boursolive Shareholders meeting in Nice September 2023 Shareholders meeting in Toulouse November 2024 Investir Day November 2023 Shareholders meeting in Nantes November 2023 Decem
Slide 32: Presentation of the Statutory Auditors
PRESENTATION OF THE STATUTORY AUDITORS THE STATUTORY AUDITORS’ REPORT TO THE COMBINED GENERAL MEETING OF 6 MAY 2024 Hassan Baaj Gilles Magnan Partner at Ernst & Young Partner at Mazars TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 32
Slide 33: Statutory Auditors' Reports
Statutory Auditors’ Reports Ordinary General Meeting – Report on the annual accounts – Report on the consolidated financial statements – Special report on regulated agreements Extraordinary General Meeting: 5 special reports on capital operations – Statutory auditors’ report on the autorisation to g
Slide 34: Reports on the annual and consolidated financial statements
Reports on the annual and consolidated financial statements 1st resolution: annual financial statements of Tikehau Capital – Section 7.2 of the 2023 Universal Registration Document. – In our opinion, the annual financial statements give a true and fair view of the assets and liabilities and of the f
Slide 35: Special report of the statutory auditors on regulated agreements
Special report of the statutory auditors on regulated agreements 4th resolution : review and authorization of agreements governed by Article L.226-10 of the French Commercial code ▪ Section 3.5.4 of the 2023 Universal Registration Document. – AGREEMENTS SUBMITTED TO THE APPROVAL OF THE GENERAL MEETI
Slide 36: Special reports on capital operations
Special reports on capital operations Resolution Page of the Resolution N° 2023 URD Delegation of authority to be given to the Managers to decide to increase the share capital of the Company or another company through 19th 460 and 461 the issue of shares and/or securities giving immediate or future
Slide 37: Special reports on capital operations
Special reports on capital operations Resolution Page of the Resolution N° 2023 URD Delegation of authority to be given to the Managers to increase the number of shares to be issued in the event of a share capital increase 25th 468 and 469 with or without preferential subscription rights Delegation
Slide 38: Presentation of the Draft Resolutions
PRESENTATION OF THE DRAFT RESOLUTIONS Geoffroy Renard General Counsel TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 38
Slide 39: Presentation of the draft resolutions
Presentation of the draft resolutions APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 (1st resolution) APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 (2nd resolution) DIVIDEND (3rd resolution) – Allocation of
Slide 40: Presentation of the draft resolutions
Presentation of the draft resolutions RESOLUTIONS RELATED TO TIKEHAU CAPITAL’S GOVERNANCE RENEWAL OF THE TERM OF OFFICE OF 2 MEMBERS OF TIKEHAU CAPITAL’S SUPERVISORY BOARD (5th and 6th resolutions) – Mr Jean-Louis Charon – Crédit Mutuel Arkéa (having appointed Sophie Coulon-Renouvel as its permanent
Slide 41: Presentation of the draft resolutions
Presentation of the draft resolutions RESOLUTIONS RELATED TO TIKEHAU CAPITAL’S GOVERNANCE RESOLUTIONS RELATING TO THE REMUNERATION OF TIKEHAU CAPITAL’S CORPORATE OFFICERS SUBMITTED IN ACCORDANCE WITH ARTICLES L.22-10-76 AND L.22-10-77 OF THE FRENCH COMMERCIAL CODE (‘SAY ON PAY’) (11th to 17th resolu
Slide 42: Presentation of the draft resolutions
Presentation of the draft resolutions RESOLUTIONS RELATED TO TIKEHAU CAPITAL’S GOVERNANCE AMENDMENT TO THE MANAGEMENT REMUNERATION POLICY (12th resolution) – Current fixed annual remuneration unchanged: €1.265m per year and per Manager – Introduction of variable remuneration for the Managers: target
Slide 43: Presentation of the draft resolutions
Presentation of the draft resolutions Authorisation to be given to the Managers to make transactions in Tikehau Capital shares (18th resolution) – Renewal of the terms of the resolution voted by the general meeting on 16 May 2023 – As of 31 December 2023, Tikehau Capital held 2.12% of the share capi
Slide 44: Presentation of the draft resolutions
Presentation of the draft resolutions SUMMARY OF THE FINANCIAL DELEGATIONS TO BE SUBMITTED TO TIKEHAU CAPITAL’S AGM (19 TH TO 28 TH RESOLUTIONS) Maximum amount of issuance (as Maximum amount of debt Purpose of the resolution nominal or % of capital) for each Duration instruments resolution Issuance
Slide 45: Presentation of the draft resolutions
Presentation of the draft resolutions SUMMARY OF THE FINANCIAL DELEGATIONS TO BE SUBMITTED TO TIKEHAU CAPITAL’S AGM (19 TH TO 28 TH RESOLUTIONS) Maximum amount of issuance (as Maximum amount of debt Purpose of the resolution nominal or % of capital) for each Duration instruments resolution Capital i
Slide 46: Presentation of the draft resolutions
Presentation of the draft resolutions AUTHORISATION TO BE GIVEN TO THE MANAGERS TO REDUCE THE SHARE CAPITAL BY CANCELLING TREASURY SHARES (29th resolution) Renewal of the terms of the resolution voted by the general meeting on 18 May 2022 TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 46
Slide 47: Q&A Session
Q&A SESSION TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 47
Slide 48: Vote on the Resolutions
VOTE ON THE RESOLUTIONS TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 48
Slide 49: Vote on the resolutions
Vote on the resolutions FIRST RESOLUTION Approval of the annual financial statements for the financial year ended 31 December 2023 TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 49
Slide 50: Vote on the resolutions
Vote on the resolutions SECOND RESOLUTION Approval of the consolidated financial statements for the financial year ended 31 December 2023 TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 50
Slide 51: Vote on the resolutions
Vote on the resolutions THIRD RESOLUTION Allocation of result for the financial year ended 31 December 2023 TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 51
Slide 52: Vote on the resolutions
Vote on the resolutions FOURTH RESOLUTION Review and authorisation of agreements governed by Article L.226-10 of the French Commercial Code TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 52
Slide 53: Vote on the resolutions
Vote on the resolutions FIFTH RESOLUTION Renewal of the term of office of Mr Jean-Louis Charon as member of the Supervisory Board TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 53
Slide 54: Vote on the resolutions
Vote on the resolutions SIXTH RESOLUTION Renewal of the term of office of Crédit Mutuel Arkéa with Ms Sophie Coulon-Renouvel as its appointed permanent representative, as member of the Supervisory Board TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 54
Slide 55: Vote on the resolutions
Vote on the resolutions SEVENTH RESOLUTION Ratification of the co-opting of Mr Maximilien de Limburg Stirum as member of the Supervisory Board TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 55
Slide 56: Vote on the resolutions
Vote on the resolutions EIGHTH RESOLUTION Appointment of Mr François Pauly as member of the Supervisory Board to replace Troismer with Mr Léon Seynave as its appointed permanent representative TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 56
Slide 57: Vote on the resolutions
Vote on the resolutions NINTH RESOLUTION Appointment of Mazars for the certification of the information on sustainability TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 57
Slide 58: Vote on the resolutions
Vote on the resolutions TENTH RESOLUTION Appointment of Ernst & Young et Autres for the certification of the information on sustainability TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 58
Slide 59: Vote on the resolutions
Vote on the resolutions ELEVENTH RESOLUTION Amount allocated to members of the Supervisory Board of the Company as remuneration TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 59
Slide 60: Vote on the resolutions
Vote on the resolutions TWELFTH RESOLUTION Approval of the components of the remuneration policy applicable to the Managers TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 60
Slide 61: Vote on the resolutions
Vote on the resolutions THIRTEENTH RESOLUTION Approval of the components of the remuneration policy applicable to the Supervisory Board TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 61
Slide 62: Vote on the resolutions
Vote on the resolutions FOURTEENTH RESOLUTION Approval of information referred to in Article L.22-10-9, I of the French Commercial Code and presented in the corporate governance report TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 62
Slide 63: Vote on the resolutions
Vote on the resolutions FIFTEENTH RESOLUTION Approval of the components of remuneration paid to AF&Co Management, Manager, during the 2023 financial year or awarded in respect of the 2023 financial year TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 63
Slide 64: Vote on the resolutions
Vote on the resolutions SIXTEENTH RESOLUTION Approval of the components of remuneration paid to MCH Management, Manager, during the 2023 financial year or awarded in respect of the 2023 financial year TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 64
Slide 65: Vote on the resolutions
Vote on the resolutions SEVENTEENTH RESOLUTION Approval of the components of remuneration paid to the Chairman of the Supervisory Board during the 2023 financial year or awarded in respect of the 2023 financial year TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 65
Slide 66: Vote on the resolutions
Vote on the resolutions EIGHTEENTH RESOLUTION Authorisation to be given to the Managers to trade in the Company’s shares TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 66
Slide 67: Vote on the resolutions
Vote on the resolutions NINETEENTH RESOLUTION Delegation of authority to be given to the Managers to decide to increase the share capital of the Company or of another company through the issue of shares and/or securities giving immediate or future access to the share capital, with preferential subsc
Slide 68: Vote on the resolutions
Vote on the resolutions TWENTIETH RESOLUTION Delegation of authority to be given to the Managers to decide to increase the share capital of the Company or another company through the issue of shares and/or securities giving immediate or future access to the share capital, without preferential subscr
Slide 69: Vote on the resolutions
Vote on the resolutions TWENTY-FIRST RESOLUTION Delegation of authority to be given to the Managers to decide to increase the share capital of the Company or another company through the issue of shares and/or securities giving immediate or future access to the share capital, without preferential sub
Slide 70: Vote on the resolutions
Vote on the resolutions TWENTY-SECOND RESOLUTION Authorisation to be granted to the Managers to issue shares and/or securities giving immediate or future access to shares to be issued by the Company as compensation for contributions in kind consisting in equity securities or securities giving access
Slide 71: Vote on the resolutions
Vote on the resolutions TWENTY-THIRD RESOLUTION Determination of the issue price, for a maximum of 10% of the share capital per year, in the context of a share capital increase through the issue of equity securities without preferential subscription rights TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6
Slide 72: Vote on the resolutions
Vote on the resolutions TWENTY-FOURTH RESOLUTION Delegation of authority to be given to the Managers to decide to increase the share capital by incorporation of premiums, reserves, profits or any other amounts TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 72
Slide 73: Vote on the resolutions
Vote on the resolutions TWENTY-FIFTH RESOLUTION Delegation of authority to be given to the Managers to increase the number of shares to be issued in the event of a share capital increase with or without preferential subscription rights TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 73
Slide 74: Vote on the resolutions
Vote on the resolutions TWENTY-SIXTH RESOLUTION Delegation of authority to be given to the Managers to decide to increase the share capital of the Company through the issue of shares and/or securities giving immediate or future access to the share capital, without preferential subscription rights, r
Slide 75: Vote on the resolutions
Vote on the resolutions TWENTY-SEVENTH RESOLUTION Delegation of authority to be given to the Managers to grant share subscription or purchase options to some or all of the group’s salaried employees and corporate officers TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 75
Slide 76: Vote on the resolutions
Vote on the resolutions TWENTY-EIGHTH RESOLUTION Delegation of authority to be given to the Managers to grant existing free shares or shares to be issued to some or all of the group’s salaried employees and corporate officers TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 76
Slide 77: Vote on the resolutions
Vote on the resolutions TWENTY-NINTH RESOLUTION Authorisation to be given to the Managers to reduce the share capital by cancelling treasury shares TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 77
Slide 78: Vote on the resolutions
Vote on the resolutions THIRTIETH RESOLUTION Powers to carry out legal formalities TIKEHAU CAPITAL ANNUAL GENERAL MEETING - 6 MAY 2024 78
Slide 79: Slide 79