Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — H1 2018 Earnings Presentation
51 slides from Tikehau Capital Sca's earnings presentation, Sep 21, 2018
Slide 1: Tikehau Capital H1 2018 Results
TIKEHAU CAPITAL H1 2018 RESULTS 21 SEPTEMBER 2018 4r°@) TIKEHAU
Slide 2: 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 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: Executive Summary
EXECUTIVE SUMMARY Tikehau Capital is moving fast forward y Total assets under management: €14.8bn as at 30 June 2018, up 7.0% vs 31 December 2017 y Asset management net operating margin at 25.7%, multiplied by 2.2 vs H1 2017 y Investment activities affected by the adverse changes in the value of cer
Slide 5: Table of Contents
TABLE OF CONTENTS H1 2018 highlights Business review Financial review Outlook BR W NO "l a ») H1 2018 RESULTS PRESENTATION a Tikehau Capital P.6 Pll P23 P.40
Slide 6: H1 2018 highlights
H1 2018 highlights "l a ») H1 2018 RESULTS PRESENTATION a Tikehau Capital
Slide 7: H1 2018 Key Figures
H1 2018 KEY FIGURES Very solid first half in Asset Management, Investment activities affected by fair value adjustments Total Assets under Management Fee-paying Assets under At end-June 2018 Management at end-June 2018 Fundraising in H1 2018 €14.8bn €10.7bn +€1.5bn +7.0%* +16.3%* +15.4%** Asset Mana
Slide 8: H1 2018 Operational Highlights
H1 2018 OPERATIONAL HIGHLIGHTS Good progress on fundraising and significant increase in Asset Management profitability y Continued growth in AUM in H1 2018, with an acceleration in Q2: - €1.5bn of net new money raised during the semester, across all strategies, leading to €14.8bn total AUM at end-Ju
Slide 9: Human Capital
HUMAN CAPITAL Experienced and diversified teams FTEs by age y Agrowing experienced team - 230 FTEs at end-June 50 anc over - Average experience of over 12 years 7 20-29 30% 40-49 y Adiversified team to support innovation and growth 21% ~ Gender-balanced teams - 70% of staff below 40 years old wr - 2
Slide 10: Responsible Investor Approach
RESPONSIBLE INVESTOR APPROACH Environmental, social and governance criteria ("ESG") integration as ESG by design ESG Committee Proprietary ESG analysis grid Enhanced functions of the ESG applied directly by investment Committee. teams. Exclusion of thermal coal and Regular trainings of all teams tob
Slide 11: Business review
H1 2018 RESULTS PRESENTATION Tikehau Capital Business review ul
Slide 12: 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 FEES / CARRIED Asset Management Activities INTERESTS” Activities Investment Activities DIVIDENDS, COU
Slide 13: AUM Net Increase and Fundraising
AUM NET INCREASE AND FUNDRAISING Variance of €1bn driven by €1.5bn fundraising, up 15% year-on-year Evolution of AuM — 2015 to H1 2018 (€bn) m Fundraising Mark-to-market External growth Lyxor IREIT @ Distributions H1 2018 AM fundraising by strategy Private Equity Private 4% ! 4 Debt 37% Liquid Strat
Slide 14: Asset Management Investor Base
ASSET MANAGEMENT INVESTOR BASE Tikehau Capital keeps expanding, internationalising and institutionalising its investor base Diversified investor base 32% of international investors (vs. 16% in 2015) Other" 3% Tikehau Capital RoW 9) group Asia » 87% 1 10% 3% ‘Gop cAGR: 27% 32% Family offices | E 16%
Slide 15: Tikehau Capital's Funds Deployment
TIKEHAU CAPITAL’S FUNDS DEPLOY MENT Seasonality effect and continued high selectivity in deployments in H1 2018 Total deployments by Tikehau Capital’s funds ry €1.5bn invested in H1 2018 y 86 companies financed (Direct Lending) : Half-year y Avariety of financing solutions provided 3.3 (private debt
Slide 16: Assets Under Management Overview
ASSETS UNDER MANAGEMENT OVERVIEW €14.8bn as at 30 June 2018 Q 12) bs) LIQUID STRATEGIES PRIVATE EQUITY REA ESTATE PRIVATE DEBT: €6.4BN 43.4% OF AUM €2.6BN 17.6% ORAUM €2)2BN 14.6% OF AUM €3.68N 24.49% OF AM y 7.0% growth in H1 2018, corresponding to a €1.0bn net increase in AUM y 82.9% growth over t
Slide 17: Business Line Update: Private Debt
BUSINESS LINE UPDATE Vt) PRIVATE DEBT €6.4bn +7.1% +€0.8bn €6.4BN AUM at 30 June 2018 AUM growth over 6 months fundraising in H1 2018 43.4% OF AUM Investment universe Differentiation factors y Across the capital structure y Ateam of 20+ professionals - Senior loans, stretched senior, unitranche, mez
Slide 18: Focus on TDL IV
FOCUS ON TDLIV Successful roll-out under way of the new vintage of Tikehau Capital’s flagship Direct Lending fund Strong momentum y Fund launched in July 2017 Private Debt of European corporate and acauisition financing companies with €50m to €1bn of EV 610 _ y Financing universe: Small-to-medium Eu
Slide 19: Business Line Update: Real Estate
BUSINESS LINE UPDATE REAS b 0. b ESTATE €2.6bn +15.5% +€0.3bn on AuM at 30 June 2018 AuM growth over 6 months fundraising in H1 2018 17.6% Onent Investment universe Differentiation factors y Commercial real estate (shopping centres, retail, offices, y 10+ professionals logistics), particularly sale
Slide 20: Business Line Update: Private Equity
BUSINESS LINE UPDATE PRIVATE EQUITY €? 2bn €0.6bn in Asset Management < 7 . »ZBN AuM at 30 June 2018 €1.6bn in Direct Investments 14.6% OF AUM Investment universe Differentiation factors y Non-listed companies with growing and profitable y 10+ professionals fundamentals in Western Europe y Investmen
Slide 21: Focus on TGE II
FOCUS ON TGEII A 2018-launched Private Equity fund, leveraging Tikehau Capital’s track-record Fund profile y Tikehau Growth Equity Il, a 2018-launched Private Equity fund y Dedicated to minority investments, in growing mid- sized companies, generally along families or entrepreneurs y Aninvestment ap
Slide 22: Business Line Update: Liquid Strategies
BUSINESS LINE UPDATE €3.6bn +16.0% AuM at 30 June 2018 AuM growth over 6 months Investment universe y High yield, investment grade corporates and subordinated financials y Primarily pan-European credit and Asian credit y Value-quality and special situations equity stocks on par- European, US and Asi
Slide 23: Financial review
IO H1 2018 RESULTS PRESENTATION Tikehau Capital Financial review 23
Slide 24: P/L Performances
P/L PERFORMANCES H1 2018 net loss of €81.4m adversely impacted by mark-to-market valuation of investments (-€72m) Asset Management Investment activities IO AM revenues Operating costs AM net operating profit activities Investments revenues Operating costs" Net results with associates Investments net
Slide 25: Asset Management activities
IO H1 2018 RESULTS PRESENTATION Tikehau Capital Asset Management activities
Slide 26: Assets Under Management per Strategy
ASSETS UNDER MANAGEMENT PER STRATEGY With €14.8bn of AuM as at 30/06/2018, Tikehau Capital’s activities are organised around 4 strategies Private + Réal. + biquid + _ AM + ev necl _ Group Debt Estate Siratégies: activities investments) AuM 1.6 14.8 13.8 | | = Q v AM activities Direct investments Gro
Slide 27: Fee-Paying AUM
FEE-PAYING AUM €10.7bn of Fee-paying AuM at end-June 2018, up by +16% Direct Investments} Nene +13% paying AUM | €0.5bn Future fon. H12018 growth uture fe paying AUM €1.7bn €14.8bn _ ' €9.2bn €10.7bn Fee-paying AUM +16% H12018 growth 30 June 2018 31Dec. 2017 30June 2018 Total Group Asset Asset Manag
Slide 28: Fee-Paying AUM Analysis
FEE-PAYING AUM ANALYSIS Fee-paying AuM have increased by 16% (from €9.2bn at end 2017 to €10.7bn at end H1 2018) AuM breakdown (AM activities) Fee-paying AuM by duration Permanent Non-fee paying capital 4% 5% Future fee- Liquid strategies 7 years or more 38% paying 15% 34% paying AuM paying Less tha
Slide 29: Fee Rate Evolution
FEE RATE EVOLUTION Balanced fee rate across our 4 business lines and stability over time Weighted average fee rate H1 2018 management fee @ rate by business line H12017 2017_—-H12018 Private Debt 78 bps 79 bps 74 bps Real-Estate: i 93 bps 86 bps 82 bps Liquid Strategies) 45 bps 48 bps 51 bps Private
Slide 30: Asset Management Revenues
ASSET MANAGEMENT REVENUES Recurrent stream of Asset Management revenues following the growth in AuM Asset Management revenues y €2.9m of performance fees and carried interests generated in H1 2018 H1 2018 AM fees by business line ° Private Equity Liquid 5% _ Strategies 9) & 27% H1 2017 H1 2018 €32.9
Slide 31: Focus on AUM Eligible to Carried Interests
FOCUS ON AUM ELIGIBLE TO CARRIED INTERESTS A key component of future revenue and profit growth Assets under Management eligible to carried interests IO 31/12/2017 30/06/2018 mReal Estate m Direct Lending H1 2018 RESULTS PRESENTATION Tikehau Capital A major revenue and profit boost ahead The Group po
Slide 32: Asset Management Profitability
ASSET MANAGEMENT PROFITABILITY Profitability climbing very rapidly, illustrating our Asset Management business’ high operating leverage > €9.2m > €2.9m Net Operating Profit from AM activities (« NOPAM ») €(0.7)m (€bn) H1 2018 H1 2017 O H1 2016 PF BAM costs mAMrevenue =o= Operating margin 32 "l a »)
Slide 33: Investment activities
IO H1 2018 RESULTS PRESENTATION Tikehau Capital Investment activities 33
Slide 34: Evolution of Direct Investments AUM
EVOLUTION OF DIRECT INVESTMENTS AUM A first-half marked by seasonality in funds launches, with corresponding TKO balance sheet commitments y Evolution reflects mostly heightened balance sheet commitments in TKO funds, for a total of €0.6bn, - Enhances the alignment of interests between Tikehau Capit
Slide 35: Investment Revenues
INVESTMENT REVENUES H1 2018 revenues adversely impacted by change in fair value (-€71.8m), related mainly to listed assets Main contributions in H1 2018 TKO funds €23m Naturex €i4m HDLD - Assystem = €(9)m DWS €(38)m Eurazeo €(49)m Ee H1 2017 H1 2018 G ™ Dividends, coupons and distributions m Change
Slide 36: Key balance sheet items
IO H1 2018 RESULTS PRESENTATION Tikehau Capital Key balance sheet items 36
Slide 37: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY Expectation of balance sheet allocation of assets on a medium-to-long term basis Objective Investment in Tikehau Capital’s Funds Opportunistic Investments Private Debt Private Equity & Special Situations Real Estate Liquid Strategies Principal Investment Investment Income
Slide 38: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Very solid financial structure, supporting the Group’s strategy y Strong financial position maintained, with business model Investment portfolio 1,941 1,565 +876 Cash & cash equivalents” 539 975 (436) — ©5899 of cash Other current & non-current assets 424 594 (170) — €900m
Slide 39: Tikehau Capital's Investment Portfolio
TIKEHAU CAPITAL’S INVESTMENT PORTFOLIO Continuous deployment consistent with allocation policy €474m investments vs. €23m of exits over the period €688m invested by Tikehau Capital in its AM strategies 147 # of investments 137 Top 5 Investment positions y Eurazeo €452m y DWS €147m y Claranet €85m y
Slide 40: Sofidy acquisition
"l a ) H1 2018 RESULTS PRESENTATION & Tikehau Capital
Slide 41: Exclusive Negotiations to Acquire Sofidy
EXCLUSIVE NEGOTIATIONS TO ACQUIRE SOFIDY A strategic opportunity to strengthen Tikehau Capital’s position in Real Estate Snapshot on Sofidy y Leading player in the real estate AM industry, with 30 years of experience ") y €4.8bn of AuM at 30 June 2018, made up of over 4,100 assets, on behalf of more
Slide 42: A Unique Opportunity
A UNIQUE OPPORTUNITY Sofidy is a major player on the French real estate asset management market Market capitalization of SCPI under management as af June 2018 - €Bn woo OO @OOeoodadadea OO Oo ® 8.2 6.9 5.5 5.5 48 4.2 3.2 2.3 2.2 ig Y 16 | [J | L U . » E 2 La Amundi Primonial AEW BNP Sofidy PerialAM
Slide 43: Planned Acquisition of Sofidy
PLANNED ACQUISITION OF SOFIDY An accretive rebalancing of Tikehau Capital’s business mix Strong expansion of Real Estate practice Real Estate contribution to total Group AuM Pre Real Estate AuM . os 7A 30 June 2018 30 June 2018 (published) (postacquisition, illustrative) "l a ») H1 2018 RESULTS PRES
Slide 44: Material Enhancement of TKO's Profile
MATERIAL ENHANCEMENT OF TKO’S PROFILE The potential transaction would be accretive on all metrics Managementfees®) 12m to endhJune 2018 196 15.2 79 bps ais 5 fe _ AuMat end-June 2018 (€bn Fee-paying AuM at end-June 2018 TKO "as is" Proforma ®) TKO "as is" Proforma ®) TKO "as is" Proforma ®) AM net r
Slide 45: 2020 AUM Guidance Exceeded Years in Advance
2020 AUM GUIDANCE EXCEEDED 2 YEARS IN ADVANCE Solid fundraising and planned acquisition of Sofidy “) will drive AUM above €20ln as early as 2018 2013 Opening of London office Asset under Management in €bn and key milestones 6.4 2014 2015 2016 Opening of Opening of Acquisitions of Singapore Brussels
Slide 46: Outlook
OUTLOOK Tikehau is affirming its position as a major pan-European Alternative Asset Manager y AuM growth expected to accelerate during H2 2018, based on favourable fundraising momentum initiated in H1 and the potential acquisition" of Sofidy - The FY 2018 total AUM target amounts to €2 ibn AuM, - Th
Slide 47: Q&A session
IO H1 2018 RESULTS PRESENTATION Tikehau Capital Q&A session 47
Slide 48: Appendices
IO H1 2018 RESULTS PRESENTATION Tikehau Capital Appendices 48
Slide 49: +16% AUM Growth in Asset Management Activities
+16% AUM GROWTHIN ASSET MANAGEMENT ACTIVITIES All strategies contribute positively to AUM evolution in H1 2018 H1 2018 AUM evolution by strategy 14.8 Real Estate Including: 1 8} 8 ry €(0.6)m commitments in TKO funds ‘ r — €(0.1)m of dividends LA becesseessesssesssesssess0e5 '» €(0.1)bn of change in
Slide 50: Contacts
CONTACTS Paris 32, rue de Monceau 75008 Paris FRANCE, Phone: +33 1 40 06 26 26 Seoul 43Fl, Three IFC 10 Gukjegeumyung-ro, Youngdeungpo-gu Seoul, 07326 KOREA Phone: +82 2 6138 4331 New York 412 West 15th St. 18th Floor New York, NY 10011 UNITED STATES. Phone: +1 (917) 434-9234. London 30, St. Mary Ax
Slide 51: Tikehau Capital
TIKEHAU CAPITAL 32, rue de Monceau - 75008 Paris - France Phone: +33 1 40 06 26 26 Fax: +33 1 40 06 09 37