Tikehau Capital Sca · EURONEXT:TKO
Tikehau Capital Sca — Tikehau Capital — Investor Presentation (November 2020)
66 slides from Tikehau Capital Sca's investor presentation, November 2020
Slide 1: Tikehau Capital Investor Presentation November 2020
TIKEHAU CAPITAL INVESTOR PRESENTATION NOVEMBER 2020
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 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 4: Agenda
AGENDA 1 Introduction to Tikehau Capital p. 5 4 Outlook p. 50 2 Areas of Expertise p. 21 5 Appendices p. 54 3 Operating and financial review p. 30 INVESTOR PRESENTATION Tikehau Capital 4
Slide 5: Introduction to Tikehau Capital
1 Introduction to Tikehau Capital INVESTOR PRESENTATION Tikehau Capital 5
Slide 6: A growing pan-European diversified asset management and investment firm
A GROWING PAN-EUROPEAN DIVERSIFIED ASSET MANAGEMENT AND INVESTMENT FIRM Founded in IPO in €27.2bn €2.8bn 11 570 2004 March 2017 of AuM(1) of shareholders’ countries employees(2) equity(2) Recurring and predictable Significant shareholders’ equity revenues supporting the alignment of Asset interests
Slide 7: Unique and complementary positioning on four business lines
UNIQUE AND COMPLEMENTARY POSITIONING ON FOUR BUSINESS LINES Our offer Our objective Alternative and flexible investment solutions Optimise risk / return over the long term PRIVATE DEBT REAL ASSETS PRIVATE EQUITY CAPITAL M ARKETS €8.9BN €10.2BN €4.3BN(1) €3.9BN 33% OF AUM 37% OF AUM 16% OF AUM 14% OF
Slide 8: Total AuM has increased by +29% per year since 2016
TOTAL AUM HAS INCREASED BY +29% PER YEAR SINCE 2016 Group AuM target is to exceed €35bn in 2022 Total Assets under Management in €bn(1) CAGR: +29% p.a >35 >27.5 25.8 22.0 13.8 10.0 6.4 3.0 4.3 1.6 2004 2012 2013 2014 2015 2016 2017 2018 2019 2020 2022 2022 Inception of Acquisition of Opening of Open
Slide 9: Strong tailwinds for alternatives
STRONG TAILWINDS FOR ALTERNATIVES Continued projected growth in sector AuM and revenue generation Global AuM by product Global revenue by product $106Tn $333bn $89Tn 18 17% $296bn 15% 15 16% 16 15% 162 49% 14 16% 16 137 46% 19% 15% 12 14% 13% 31 30% 56 17% $31Tn 54 18% 15% $104bn 29 33% 12% 3 9% 39
Slide 10: Allocations to alternatives are well-oriented
ALLOCATIONS TO ALTERNATIVES ARE WELL-ORIENTED Appetite for alternatives remain high despite the economic fallout from Covid-19 Medium-term capital commitments for alternative assets Attractiveness of investing in private markets Private Equity 41% 49% 11% Better-than-market-average performance Pri
Slide 11: A solid and steady growth track record
A SOLID AND STEADY GROWTH TRACK RECORD Tikehau Capital delivers on its strategy set at the time of its IPO AuM (Group level) Management fee rate Revenue from Asset Mgt activity €bn bps €m +23bps x4 25.8 25.7 174.8 22.0 92.0 94.0 x6 125.8 81.0 13.8 75.0 88.3 71.0 71.0 10.0 57.9 6.4 39.4 27.9 2015 201
Slide 12: Group AuM by asset class €27.2bn
GROUP AUM BY ASSET CLASS GROUP +12.0% Group AuM over the last twelve months (+€2.9bn) Group AuM breakdown at end-September 2020 Direct Investments, €1.3bn Capital Markets Asset Management: €25.9bn of AuM at end-Sept. 2020 Strategies, +€3.7bn (+16.5%) over the last twelve months Private Debt, €3.9bn
Slide 13: +€1.5bn fundraising in asset management in Q3 20
+€1.5BN FUNDRAISING IN ASSET MANAGEMENT IN Q3 20 AM Solid fundraising over the quarter, higher than the amount raised over the first half of the year Asset management fundraising by quarter, and asset class €bn Fundraising by asset class (€m and % of total fundraising) 2.5 2.6 700 1,500 47% 150 (50)
Slide 14: Strong asset management AuM progression
STRONG ASSET MANAGEMENT AUM PROGRESSION AM €bn +16.5% LTM +0.6 25.9 +0.1 LTM evolution 22.2 +4.2 (1.2) Sept. 2019 to Sept. 2020 30-Sept-19 Fundraising Distributions Market effect Change in scope 30-Sept-20 €bn +9.6% YTD +0.6 25.9 YTD evolution 23.6 +2.6 (0.8) (0.1) Dec. 2019 to Sept. 2020 31/12/2019
Slide 15: 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 activity FEES INTERESTS(1) activity Investment activity DI
Slide 16: Alignment of interests, a key differentiator
ALIGNMENT OF INTERESTS, A KEY DIFFERENTIATOR A strong shareholder base supporting a dynamic long term development Tikehau Capital simplified organization(1) Unique alignment of interests Including: Management and Others employees(2) Management is the largest shareholder of Management the listed comp
Slide 17: A strong balance sheet as a growth and profit accelerator
A STRONG BALANCE SHEET AS A GROWTH AND PROFIT ACCELERATOR 1 Alignment of interests Providing shareholders access to alternative assets 2 Stronger inflows Balance sheet investments in Improving visibility in revenue own funds generation 3 AuM growth €2.8bn shareholders’ equity(1) Objective of achievi
Slide 18: Human capital and governance
HUMAN CAPITAL AND GOVERNANCE Experienced and diversified teams Experienced and committed team FTEs by age 570 FTEs at Group level at end-June 2020 50 and over 14% 20-29 Gender-balanced staff with 44% of women, across 24% 27 nationalities, with 14 years of average experience Management’s skin in the
Slide 19: ESG: at the heart of Tikehau Capital's strategy
ESG: AT THE HEART OF TIKEHAU CAPITAL’S STRATEGY Strong ESG set-up, convictions and recognition We have started to develop product which address societal challenges while generating competitive financial returns for investors Key pillars of our responsible investment strategy External Recognition A+
Slide 20: Tikehau Capital received top scores from leading ESG rating agencies
TIKEHAU CAPITAL RECEIVED TOP SCORES FROM 2 LEADING ESG RATING AGENCIES Rated and Rated but Rated but among top 5 score not Not rated below top five performers available Leading ESG agencies x x (score not x (score not x x x x public) public) x (score not (score not x (score not x x x (sc
Slide 21: Areas of expertise
2 Areas of expertise INVESTOR PRESENTATION Tikehau Capital 21
Slide 22: Tikehau Capital's private debt platform
TIKEHAU CAPITAL’S PRIVATE DEBT PLATFORM PRIVATE DEBT Key figures (30 September 2020) Areas of expertise Investment universe & key features Direct Lending Senior loans, stretched senior, €8.9bn of Assets under Management Corporate Direct unitranche, mezzanine, preferred equity European lending to Fre
Slide 23: Close monitoring and support of the portfolio companies
CLOSE MONITORING AND SUPPORT OF THE PRIVATE DEBT PORTFOLIO COMPANIES Close support provided by Tikehau Capital to its portfolio companies, helping them to monitor the evolution of the situation and emerge from the crisis with the means to seize opportunities Close contact with portfolio Implementati
Slide 24: Tikehau Capital's real assets platform
TIKEHAU CAPITAL’S REAL ASSETS PLATFORM REAL ESTATE REAL ASSETS A comprehensive real assets platform diversified across clients’ types and asset classes Key figures (30 September 2020) A granular and diversified business line 4 Liquid funds & others €10.2bn of Assets under Management 6% 1 Closed-end
Slide 25: Real estate funds performance
REAL ESTATE FUNDS PERFORMANCE REAL ASSETS Snapshot on main real estate closed-end funds, SCPIs and liquid funds Closed-end real estate funds Solid performance for Sofidy’s main funds Exited in 2018 Exited in 2019 Tikehau Tikehau Real Tikehau Real Tikehau Real Logistics Estate 2 Estate 3 Estate 1 Fun
Slide 26: Tikehau Capital's approach to private equity
TIKEHAU CAPITAL’S APPROACH TO PRIVATE EQUITY PRIVATE EQUITY Growth Equity: growing an emerging segment with attractive returns Areas of expertise Key figures (30 September 2020) Growth and expansion Equity to Entrepreneurs €3.0bn of Assets under Management Thematic expertise in partnership with larg
Slide 27: Track record of divestments: average multiple of 2.4x since 2012
PRIVATE EQUITY PRIVATE EQUITY Track record of divestments: average multiple of 2.4x since 2012 (1)(2) For all minority investments higher than €1m made by Tikehau Capital (and Salvepar) Classified in non-current portfolio in Tikehau Capital’s balance sheet 8.3 Amount invested taking into account Sal
Slide 28: How does the Group deploy its value creation capabilities for its portfolio companies?
HOW DOES THE GROUP DEPLOY ITS VALUE CREATION PRIVATE EQUITY CAPABILITIES FOR ITS PORTFOLIO COMPANIES ? Support International Expansion Provide Access to Tikehau Platform TKO supports Dove Vivo in its organic expansion in TKO Real Estate owns retail chains shops which are France & Spain potential bus
Slide 29: Capital markets strategies
CAPITAL MARKETS STRATEGIES CAPITAL MARKETS STRATEGIES Performing and scalable Key figures Investment universe ESG label awarded to 10 TKO funds Open-ended funds and managed €3.9bn of Assets under Management accounts (High Yield, Investment Grade corporates, Subordinated financials) LuxFLAG ESG label
Slide 30: Operating and financial review
3 Operating and financial review INVESTOR PRESENTATION Tikehau Capital 30
Slide 31: Group AuM | Overview by asset class
GROUP AUM | OVERVIEW BY ASSET CLASS GROUP €25.7bn of Group AuM at end-June 2020 Capital Direct Private Private Real Real Liquid Private Private AM Group 1 Debt Debt + 2 Estate Assets + 3 Markets Strategies + 4 Equity Equity = activities + Investments = AuM Strategies AuM 25.7 2.3 24.0 3.8 0.7 1.7 9.
Slide 32: Simplified consolidated P&L
SIMPLIFIED CONSOLIDATED P&L GROUP in €m H1 2020 H1 2019 Δ (€m) Δ (%) Asset AM revenues 88.3 75.9 +12.4 +16.3% Management Operating costs (59.7) (55.4) (4.3) +7.7% activities AM net operating profit 28.6 20.5 +8.1 +39.5% AM net operating margin (%) 32.4% 27.0% +5.4pts Investment revenues (77.2) 157.7
Slide 33: Asset Management activities
3.1 Asset Management activities INVESTOR PRESENTATION Tikehau Capital 33
Slide 34: Strong compounding effect of Tikehau Capital investments in its own funds
STRONG COMPOUNDING EFFECT OF TIKEHAU CAPITAL AM INVESTMENTS IN ITS OWN FUNDS AuM breakdown between 3rd party investors and TKO Third Party AuM TKO commitments Undrawn €0.6bn 0.3 24.0 21.2 €2.2bn 0.5 +0.4 2.2 18.5 0.2 1.8 Drawn 0.5 1.3 €1.5bn 13.2 +2.4 21.8 1.3 0.2 19.4 0.7 (in €bn) 17.2 0.7 €2.2bn 1
Slide 35: Asset management investor base at end-June 20
ASSET MANAGEMENT INVESTOR BASE AT END-JUNE 20 AM Tikehau Capital keeps expanding and internationalizing its investor base Asset management AuM by investor origin H1 2020 3rd party fundraising by origin RoW, 32% (1) Fundraising from international investor accounts for France, 62% 3% 36% of total asse
Slide 36: Fee-paying AuM analysis at end-June 2020
FEE-PAYING AUM ANALYSIS AT END-JUNE 2020 AM €20.3bn of fee-paying AuM as of 30 June 2020, up +17% over the last twelve months Fee-paying AuM evolution (€bn) Fee-paying AuM by duration +13% +2% 24.0 Permanent 23.6 Capital Markets 1.0 Strategies 1.1 5% Total AM AuM 21.2 19% 7 years or more 2.7 26% 2.6
Slide 37: Tikehau Capital's funds deployment
TIKEHAU CAPITAL’S FUNDS DEPLOYMENT AM Total deployments by Tikehau Capital’s closed-end funds €0.8bn invested during H1 2020 on the Group’s closed end funds, down compared to the same period last year, mainly reflecting the Group’s cautious approach during 1.5 the Covid-19 outbreak -€0.7bn 108 compa
Slide 38: Tikehau Capital deployment
TIKEHAU CAPITAL DEPLOYMENT AM Screenings and execution in H1 2020 show maintained high selectivity Real Assets team Private Debt team(1) Private Equity team (TKO + Sofidy)(4) 177 screened deals 1,315 screened deals 426 screened deals 56 screening 9 firm offers 64 firm offers committees 8 closed 27 c
Slide 39: Asset management revenues
ASSET MANAGEMENT REVENUES AM Asset Management revenues grew much faster than AuM over H1 2020 Asset Management revenues Management fees & others(1) Management fees growth of 16% in H1 2020 Performance fees & carried interests 88.3 €1.2m of performance fees and carried +16% interests generated in H1
Slide 40: Fee rate evolution
FEE RATE EVOLUTION AM Tikehau Capital’s strategy aims at improving its fee-generation profile 30 Jun. 2019 31 Dec. 2019 30 Jun. 2020 % AM AuM Bps % AM AuM Bps % AM AuM Bps Real Assets 39% 99 bps 39% 110 bps 39% 107 bps Private Debt 34% 69 bps 37% 73 bps 33% 79 bps Capital Markets Strategies 19% 53 b
Slide 41: +4% growth in AuM eligible to carried interests
+4% GROWTH IN AUM ELIGIBLE TO CARRIED INTERESTS AM Slight increase in H1 2020 AuM eligible to carried interests AuM eligible to carried interests is growing at a faster pace than Group AuM The Group’s operating leverage does not rely on short-term 9.0 carried interests, which should contribute to pr
Slide 42: Asset management profitability
ASSET MANAGEMENT PROFITABILITY AM Strong increase in profit contribution from the Group’s Asset Management perimeter Thanks to the combination of strong revenue growth and controlled cost evolution, NOPAM margin increases year-over-year by more than +540bps to 32.4% NOPAM(1) margin evolution x3.1 €2
Slide 43: Investment activities
3.2 Investment activities INVESTOR PRESENTATION Tikehau Capital 43
Slide 44: Portfolio revenues
PORTFOLIO REVENUES INVEST H1 2020 revenues adversely impacted by unrealized change in fair value (-€143.3m) Revenues from the investment portfolio impacted by change in fair value, of which €(143.3)m is unrealized − Q1 2020 unrealized change in fair value reached €(287.5)m, partially offset by Q2 po
Slide 45: Focus on TKO funds
FOCUS ON TKO FUNDS INVEST Unrealized change in fair value impacting contribution of TKO funds Contribution of TKO funds to H1 2020 revenues DWS +7 (6) TKO funds TKO listed REITs (11) (€17m) 31.2 +31% 18.9 23.9 31.2 HDL - Assystem (5) vs 30/06/2019 0.2 H1 2018 H1 2019 H1 2020 (61) (48.3) Eurazeo Othe
Slide 46: Key balance sheet items
3.3 Key balance sheet items INVESTOR PRESENTATION Tikehau Capital 46
Slide 47: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET GROUP Very solid financial structure, supporting the Group’s strategy BBB- / stable outlook credit rating assigned by Fitch Ratings to Tikehau Capital in January 2019 Robust equity structure supporting the business model in €m 30-Jun-20 31-Dec-19 ∆ — €2.8bn of shareholders
Slide 48: 4.9 years of average debt maturity
4.9 YEARS OF AVERAGE DEBT MATURITY GROUP A well spread debt repayment schedule, no maturity before 2023 Financial indebtedness as at 30 June 2020 and amortization plan Amortization Plan 1,800 1,600 €1,500m RCF - €500m 1,400 2019 Bond - €500m 500 2017 Bond - €300m 1,200 €1,000m Term Loan - €200m 1,00
Slide 49: Tikehau Capital's investment portfolio | 30 June 2020
TIKEHAU CAPITAL’S INVESTMENT PORTFOLIO | 30 JUNE 2020 GROUP A well diversified investment portfolio, geared in priority towards TKO funds 2,447 2,336 2,371 1 investment > €50m €396m (€m) 396 10 investments between €10m and €50m Non-listed investments 92 investments < €10m 823 911 31 30 Other l
Slide 50: Outlook
4 Outlook INVESTOR PRESENTATION Tikehau Capital 50
Slide 51: Tikehau Capital is well-positioned to navigate the cycle
TIKEHAU CAPITAL IS WELL-POSITIONED TO NAVIGATE THE CYCLE The Covid-19 outbreak has raised …that Tikehau Capital has been anticipating specific risks… with the building of the right set-up Value creation in asset management is A diversified exposure to complementary asset 1 switching from asset alloc
Slide 52: Fundraising pipeline
FUNDRAISING PIPELINE Combination fundraising of flagship funds and launch of additional strategies Drive further diversification of the client base (institutional and retail) Capital Markets Private debt Real Assets Private equity Strategies Grow new Grow current Fixed vintages of Continued developm
Slide 53: Confirmation of the Group's guidance
CONFIRMATION OF THE GROUP’S GUIDANCE Tikehau Capital is on track to deliver its targets Short-term guidance >€27.5bn(1) of total AuM at end-December 2020 Mid-term guidance >€35bn of total AuM by 2022 of operating profit for Asset Management >€100m activities by 2022 of investment portfolio comprised
Slide 54: Appendices
5 Appendices INVESTOR PRESENTATION Tikehau Capital 54
Slide 55: Sustained fundraising momentum
SUSTAINED FUNDRAISING MOMENTUM Combination of strong organic growth and selected acquisitions AuM growth drivers since 2013 Vintage funds increasing in size Distributions €2.1bn Fundraising Mark-to-market • Sofidy External growth • ACE 5.4 x3.4 0.6 • Lyxor 0.4 0.2 • IREIT 1.2 0.2 4.6 0.1 3.9 3.7 €61
Slide 56: Update on funds' activity | Private debt
UPDATE ON FUNDS’ ACTIVITY | PRIVATE DEBT PRIVATE DEBT Exit Exit Exit Oct. 2020 Investment Oct. 2020 Oct. 2020 Specialized in the development, Leading player in testing, inspection and Integrated player providing comparison and manufacturing and sale of consumable certification brokerage services wit
Slide 57: Update on funds' activity | Private equity
UPDATE ON FUNDS’ ACTIVITY | PRIVATE EQUITY PRIVATE EQUITY Investment Investment Investment T2 T2 Oct. 2020 Sept. 2020 Jan. 2020 Company specialized in manufacturing Italian-based leading manufacturer of Ireland-based global energy efficiency machines and presses along with stators and rotors for ele
Slide 58: Capital structure at 30 September 2020
CAPITAL STRUCTURE AT 30 SEPTEMBER 2020 Shareholding structure Share capital ownership at 30 September 2020 Main shareholders Management : 44% Fonds Stratégique de Participations(2): 9% : 9% Institutional : 4% Institutional 37% Management (1) : 4% shareholders & free float 44% : 3% 37% : 2% 56% : 2%
Slide 59: Experienced and committed leadership team 1/2
EXPERIENCED AND COMMITTED LEADERSHIP TEAM 1/2 Co-Founders Tikehau Group Management Henri Marcoux Geoffroy Renard Deputy CEO General Counsel Antoine Flamarion Mathieu Chabran Emmanuelle Costa Anne Le Stanguennec Head of Human Capital Head of Internal Audit Ephraim Marquer Grégoire Lucas Head of Compl
Slide 60: Experienced and committed leadership team 2/2
EXPERIENCED AND COMMITTED LEADERSHIP TEAM 2/2 Asset Management Executive Team Thomas Friedberger Henri Marcoux Jean-Baptiste Feat Bruno de Pampelonne Frédéric Giovansili Guillaume Spinner TIM Co-CEO & Co-CIO TIM Co-CEO TIM co-CIO TIM Chairman TIM Deputy CEO TIM COO Head of Sales and Marketing Privat
Slide 61: Simplified organization chart at 30 September 2020
SIMPLIFIED ORGANIZATION CHART AT 30 SEPTEMBER 2020 Founders & Management 33% 67% Public shareholders including 58% Tikehau Capital Fakarava Capital FSP Advisors(1) c60 FTE 7% 37% 56% Tikehau Capital SCA €2.8bn of shareholders’ equity 0 FTE 100%(2) Asset Management activity c470 FTE Listed consolidat
Slide 62: Role of Tikehau Capital Advisors
ROLE OF TIKEHAU CAPITAL ADVISORS #1 shareholder, #1 supporter, #1 enhancer of Tikehau Capital as a listed entity Main features of Tikehau Capital Advisors A vehicle focused on the listed company’s interests Strong and committed shareholder of Tikehau Capital, since TCA owns 100% of Tikehau Capital G
Slide 63: International Advisory Board
INTERNATIONAL ADVISORY BOARD Distinguished and complementary advisory board members with significant expertise in international affairs Stéphane Abrial Jean Charest Fu Hua Hsieh Noboyuki Idei Former Chief of Staff of the French Former Primer Minister of Quebec Chairman of ACR Capital and Board Forme
Slide 64: Tikehau Capital - Supervisory Board
TIKEHAU CAPITAL - SUPERVISORY BOARD Independence, experience and expertise Independent members represent 50% of the Board Christian de Labriffe Jean-Louis Charon Chairman of the Supervisory board Chairman of City Star Roger Caniard Troismer, represented by Léon Seynave Head of MACSF financial manage
Slide 65: Contacts
CONTACTS Paris London Amsterdam Brussels Luxembourg 32, rue de Monceau 30 St. Mary Axe ITO Tower - Gustav Mahlerplein 104 IT Tower, Avenue Louise 480 4ème étage 75008 Paris London EC3A 8BF 1082 MA Amsterdam 1050 Brussels 37A avenue J-F Kennedy FRANCE UK NETHERLANDS BELGIUM L-1855, Luxembourg Phone:
Slide 66: 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
Tikehau Capital — Investor Presentation (November 2020) on 6ix