Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — FY2017 Earnings Presentation
40 slides from Tikehau Capital Sca's earnings presentation, Mar 29, 2018
Slide 1: Tikehau Capital FY 2017 Results Presentation
TIKEHAU CAPITAL FY 2017 RESULTS PRESENTATION 29 MARCH 2018 Strictly confidential
Slide 2: 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 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 1 FY 2017 highlights P. 5 2 Business review P. 11 3 Financial review P. 22 4 Conclusion P. 32 FY 2017 RESULTS PRESENTATION Tikehau Capital 4
Slide 5: FY 2017 highlights
FY 2017 highlights FY 2017 RESULTS PRESENTATION Tikehau Capital 5
Slide 6: FY 2017 Financial Highlights
FY 2017 FINANCIAL HIGHLIGHTS Delivering strong growth and sound profitability (1) AuM Revenues Net operating profit Net profit (Group) +38% +242% +195% +151% 13.8 445 Target: €13bn 363 10 314 130 123 125 (€bn) (€m) (€m) (€m) (2) (2) 2016 2017 2016PF 2017 2016PF 2017 2016PF 2017 Robust fundraising an
Slide 7: FY 2017 Operational Highlights
FY 2017 OPERATIONAL HIGHLIGHTS Good progress on fundraising, investment, and scaling up of the Asset Management platform level Well on-track to reach objective of AuM > €20bn in 2020 – €3.9bn of net new money raised during the year, leading to €13.8bn total AuM at year-end (+38% YoY), above the €13b
Slide 8: Dividends
DIVIDENDS Commitment to stable or increasing dividend per share over time Tikehau Capital proposes a dividend of €1.00 per share for the year 2017 — Base dividend of €0.50 per share — One-off extra-amount of €0.50 per share Dividend calendar for the year 2017 — Detached from the share on 30 May 2018
Slide 9: Core Pillars of Our Business
CORE PILLARS OF OUR BUSINESS Our activity is relying on three powerful engines of revenue generation Growing Assets under Management Performance of Tikehau Capital funds PERFORMANCE Asset Management MANAGEMENT Asset Management FEES / CARRIED Activities FEES INTERESTS* Activities Investment Activitie
Slide 10: Human Capital
HUMAN CAPITAL Experienced and diversified teams A growing experienced team – 198 FTEs at year-end – Average experience of over 11 years FTEs by age 50 and over A diversified team to support innovation and growth 10% 20-29 – Gender-balanced teams 29% – ~70% of staff below 40 years old 40-49 22% – 18
Slide 11: Business review
Business review FY 2017 RESULTS PRESENTATION Tikehau Capital 11
Slide 12: Alternative Asset Management Market Dynamics
ALTERNATIVE ASSET MANAGEMENT MARKET DYNAMICS Tikehau Capital is active in fast-growing and profitable asset classes Alternative AM: 40% of global AM Expected evolution of AM revenues in 2020 vs. 33% in 2013 segments between 2015 and 2020 Cash and passive Balanced / multi-asset % growth Active equiti
Slide 13: AuM Net Increase and Fundraising
AUM NET INCREASE AND FUNDRAISING Strong fundraising performance with FY 2017 €13bn AuM target overachieved Fundraising Mark-to-market External growth AM distributions 0.4 Lyxor IREIT 1.2 FY 2017 fundraising by business line 0.2 Private Equity 0.1 (incl. direct Private Debt 3.9 investments) 39% 22% 0
Slide 14: Asset Management Investor Base
ASSET MANAGEMENT INVESTOR BASE Tikehau Capital has been expanding and internationalising its investor base 27% of international investors (vs. 16% in 2015) RoW 1% Asia 4% 27% 21% Europe 16% 21% France 2015 2016 2017 73% €11.4bn AuM Diversified investor base Successful cross selling effort across the
Slide 15: Tikehau Capital Deployment
TIKEHAU CAPITAL DEPLOYMENT Screenings and execution in 2017 Private Debt team Real Estate team Private Equity team (1) 292 screened deals 129 screened deals 115 screened deals 13 deals with 30 firm offers 8 firm offers staffing 16 closed 2 closed 2 closed deals deals deals An increasing strong domes
Slide 16: Tikehau Capital's Funds Deployment
TIKEHAU CAPITAL’S FUNDS DEPLOYMENT Strong deployment in 2017 Total deployments by Tikehau Capital’s funds €3.3bn invested in 2017 206 companies financed (Direct Lending & Real Estate) +72% 3.3 A variety of financing solutions provided (private debt, equity, structured products, crowdfunding, etc.) 1
Slide 17: Snapshot on Our Business Lines
SNAPSHOT ON OUR BUSINESS LINES Our offer Our objective Alternative and flexible investment solutions Optimise risk / return over the long term 1 2 3 4 PRIVATE REAL LIQUID PRIVATE DEBT E STATE STRATEGIES EQUITY Tikehau Capital is a long-term investor focused on the financing of the economy in France
Slide 18: Private Debt
PRIVATE DEBT AuM: €6.0bn (2017 growth: +22.3%) Investment universe Differentiation factors Across the capital structure A team of 20+ professionals ‒ Senior loans, stretched senior, unitranche, mezzanine, preferred equity A pioneer in alternative financing All sectors in Europe Strong partnerships w
Slide 19: Real Estate
REAL ESTATE AuM: €2.2bn (2017 growth: +27.6%) Investment universe Differentiation factors Commercial real estate (shopping centres, retail, offices, 10+ professionals logistics), particularly sale & lease-back deals Innovative & flexible approach Highly creditworthy counterparties, generous potentia
Slide 20: Liquid Strategies
LIQUID STRATEGIES AuM: €3.1bn (2017 growth: +62.8%) Investment universe Differentiation factors High yield, investment grade corporates and subordinated 20+ professionals in credit and equity strategies (Investment financials and Research) UCITS and managed accounts Primarily pan-European credit and
Slide 21: Private Equity
PRIVATE EQUITY AuM: €2.5bn (2017 growth: +72.9%) Investment universe Differentiation factors Non-listed companies with growing and profitable 10+ professionals fundamentals in Western Europe Investment as a minority shareholder alongside entrepreneurs Minority investments, cash out, recap, spin-offs
Slide 22: Financial review
Financial review FY 2017 RESULTS PRESENTATION Tikehau Capital 22
Slide 23: P/L Performances
P/L PERFORMANCES Strong results fuelled by our two activities €m - FYE as at 31/12 2017 2016PF Δ % AM revenues 57.9 39.4 +18.5 47% Asset Management Operating costs (41.9) (35.9) (6.0) 17% activities AM net operating profit 16.0 3.5 +12.5 353% Investments revenues 387.3 90.5 +296.9 328% (1) Operating
Slide 24: AuM by Business Line
AUM BY BUSINESS LINE With €13.8bn of AuM as at 31 December 2017, Tikehau Capital’s activities are organised around 4 business lines Private Equity Private Private Real Real Liquid Private Private AM Group + + + = + (direct = Debt Debt Estate Estate Strategies Equity Equity activities AuM investments
Slide 25: Fee-Paying AuM Analysis
FEE-PAYING AUM ANALYSIS A solid framework for current and future revenues AuM breakdown Fee-paying AuM by (AM activities) duration Permanent Non-fee paying capital 4% 5% Future fee- paying Liquid 15% strategies 34% 7 years or more €9.2bn fee- 37% €11.4bn AuM paying AuM Fee- Less than 3 paying years
Slide 26: Asset Management Revenues
ASSET MANAGEMENT REVENUES Recurrent stream of Asset Management revenues following the growth in AuM (1) Average fee-paying AuM CAGR: +45% 7.6 5.2 €4.1m of performance fees and 3.6 carried interests in 2017 (€bn) 2015 2016 2017 (2) Asset Management revenues FY 2017 AM fees by business line CAGR: +44%
Slide 27: Fee Rate Evolution
FEE RATE EVOLUTION Balanced fee rate across our 4 business lines and high regularity over time Weighted average fee rate (1) FY 2017 management fee (2) rate by business line 76 76 76 Private Debt 80 bps Real Estate 86 bps Liquid Strategies 48 bps 75 71 71 Private Equity n.m. (3) Overall 71 bps (bps)
Slide 28: Asset Management Profitability
ASSET MANAGEMENT PROFITABILITY Profitability climbing rapidly AM revenues, Operating costs & Operating margin Sustainable operating margin +27.6% objective > 25% 30.0% 25.0% 57.9 +9.0% 20.0% 39.4 (41.9) 15.0% (35.9) (28.9) 27.9 10.0% (€bn) 5.0% - (5.0%) (10.0%) 2015PF 2016PF 2017 -3.9% Operating cos
Slide 29: Investment Revenues
INVESTMENT REVENUES Strong performance of the investment portfolio over the period Main contributions for the year (1) 18.6 70.9 340.8 DRT €160m 387.3 Eurazeo €104m Tikehau Capital’s funds €48m Salvepar €33m 323.2 HDL-Assystem €20m 99.2 90.5 80.6 46.6 (€m) 64.1 43.9 18.6 2015PF 2016PF 2017 Dividends
Slide 30: Balance Sheet Figures
BALANCE SHEET FIGURES Equity reinforced and strong financial means €m - FYE as at 31/12 2017 2016PF Δ (2) Investment portfolio 1,565 934 631 (1) (2) Cash & cash equivalents 975 520 455 Strong financial means to support further Other current & non-current assets 595 359 236 investments in diversified
Slide 31: Tikehau Capital's Investment Portfolio
TIKEHAU CAPITAL’S INVESTMENT PORTFOLIO Continuous deployment consistent with allocation policy # of investments 166 137 €779m investments vs. €380m of exits over the period 1,565 €512m invested by Tikehau Capital in its AM strategies Top 5 Investment positions (1) 934 1,053 Eurazeo €445m 557 Clarane
Slide 32: Conclusion
Conclusion FY 2017 RESULTS PRESENTATION Tikehau Capital 32
Slide 33: Conclusion
CONCLUSION Tikehau Capital’s path to become a European leader in Alternative Asset Management 2012 OUR FOOTPRINT OUR POSITIONNING OUR BUSINESS MIX Alignment of interests Create and structure the four Opening of 6 international offices business lines A network of blue-chip investors Growing internati
Slide 34: Appendices
Appendices FY 2017 RESULTS PRESENTATION Tikehau Capital 34
Slide 35: Legal Organisation and Shareholder Structure
LEGAL ORGANISATION AND SHAREHOLDER STRUCTURE Strong shareholder base supporting institutional development Tikehau Capital simplified organisation First-tier institutional shareholders Institutional Fonds Stratégique de Other Management (1) Others Shareholders’ agreement Shareholders Participations (
Slide 36: Financial Business Model
FINANCIAL BUSINESS MODEL Expectation of balance sheet allocation of assets on a medium-to-long term basis Target Investment Income Stream Objective Private Debt Private Equity & Investment Investment in Special Situations Income Tikehau Capital’s Carried Interests Funds Real Estate Performance Fees
Slide 37: Mid-Term Outlook
MID-TERM OUTLOOK 1 Fundraising 6 Partnerships Continue dynamic fundraising: target to 2 Operating performance Access new expertise, new products reach €20bn AuM by 2020 (+€6.2bn vs. Promote the Tikehau Capital brand and new investors through partnerships today) across all business lines with blue-ch
Slide 38: Deal Samples
DEAL SAMPLES Private Debt – Financed Company Private Debt – Sponsor Real Estate Private Equity FY 2017 RESULTS PRESENTATION Tikehau Capital 38
Slide 39: Contacts
CONTACTS Paris London Brussels Madrid Milan 32, rue de Monceau 111, Old Broad Street IT Tower, Avenue Louise 480 Calle de Velazquez 98 Piazza del Carmine 4 75008 Paris London EC2N 1AP 1050 Brussels 28 006 Madrid 20121 Milan FRANCE UK BELGIUM SPAIN ITALY Phone: +33 1 40 06 26 26 Phone: +44 203 821 10
Slide 40: 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