TIKEHAU CAPITAL FY 2017 RESULTS PRESENTATION 29 MARCH 2018 - - PowerPoint PPT Presentation

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TIKEHAU CAPITAL FY 2017 RESULTS PRESENTATION

29 MARCH 2018

Tikehau Capital

DISCLAIMER

2

FY 2017 RESULTS PRESENTATION

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 follows (the “Presentation”), regarding Tikehau Capital SCA (the “Company”) and the group to which it belongs (the “Group”), does not constitute and should not be construed as a contract or an

• ffer to contract or a public or non-public, binding or non-binding, offer to sell or a

solicitation of an offer to buy any securities, investment products, share of funds or

• ther financial product or services in any jurisdiction. This Presentation is not directed

to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, transmission, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The information contained in this Presentation is of an indicative nature and has not been verified independently. No representation or warranty, whether express or implied, is given regarding the correctness, comprehensiveness or accuracy of the information and opinions contained in this Presentation. This Presentation is not meant to serve as a basis for, and shall not be used in connection with an investment

• decision. No person shall be entitled to rely on, or shall have any claims against the

Company, Tikehau Capital General Partner (the “General Partner”), Tikehau Capital Advisors, any of their affiliates, officers, directors, employees, any of their advisers, consultants or any other person arising from this Presentation. The information contained in this Presentation is indicative as at the date of this Presentation and may have to be updated, amended or completed significantly. This Presentation contains only summary information and does not purport to be

• comprehensive. The Company, Tikehau Capital General Partner and Tikehau Capital

Advisors do not undertake to update, amend or complete the information contained in the Presentation in order to reflect new information, new events or for any other reason and the information contained in this Presentation may therefore be modified without prior notification. This Presentation contains forward looking statements about the Group and its

• subsidiaries. These statements include financial projections and estimates and their

underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of the Group’s securities are cautioned that forward-looking information and statements are subject to various risks, whether known or unknown, uncertainties and other factors, which may be beyond the control of the Group and which may result in significant differences between the actual performances and those expressly or impliedly set out in such forward looking statements. These risks and uncertainties include those discussed or identified in filings with the Autorité des Marchés Financiers (“AMF”) made or to be made by the Group. The Group undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise. Any information relating to past performance contained herein is no indication as to future performance. The market data and certain industry forecasts included in this Presentation were

• btained from internal surveys, estimates, reports and studies, where appropriate, as

well as from external market research, publicly available information and industry

• publications. Neither the Company, nor its affiliates, directors, officers, advisors,

employees, consultants or agents have independently verified the accuracy of any external market data and industry forecasts and do not make any undertakings representations or warranties in relation thereto. Such data and forecasts are included herein for information purposes only.

Tikehau Capital

DISCLAIMER

3

FY 2017 RESULTS PRESENTATION

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 information is presented for illustrative purposes only and is not indicative of the results of operations or financial condition. This Presentation or any part thereof is not for publication, release or distribution in the United States. No securities of the Company have been or will be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or under any state securities laws, and the securities of the Company may not be offered or sold in the U.S. (or to, or for the account or benefit of U.S. Persons) except pursuant to an exemption from, or a transaction not subject to, the registration requirements of the U.S. Securities Act. The distribution of this Presentation and any information contained herein in certain jurisdictions may be restricted by law or regulation and persons into whose possession this document comes should make themselves aware of the existence

• f, and observe any such restriction. In particular, neither this Presentation, nor any

part of it may be distributed, directly or indirectly, in the United-States, Canada, Australia or Japan. Non-compliance with these restrictions may result in the violation

• f legal or regulatory restrictions in certain jurisdictions.

Tikehau Capital

TABLE OF CONTENTS

4

FY 2017 RESULTS PRESENTATION

1

FY 2017 highlights

2

Business review

3

Financial review Conclusion

4

P . 5 P . 11 P . 22 P . 32

Tikehau Capital 5

FY 2017 RESULTS PRESENTATION

FY 2017 highlights

Tikehau Capital 123 363 2016PF 2017 125 314 2016PF 2017 130 445 2016PF 2017 10 13.8 2016 2017

Significant increase in both AM and investment revenues, in addition to cost control, leading to solid operational results for the year Robust fundraising and 2017 target

• verachieved

FY 2017 FINANCIAL HIGHLIGHTS

6

FY 2017 RESULTS PRESENTATION

Delivering strong growth and sound profitability AuM Revenues Net operating profit Net profit (Group)

+38% +38% +242% +242%

(€bn) (€m) (€m) (€m)

(1) (1) Including share of net income from companies accounted for under the equity method (2) 2016 pro forma including non-recurring income items related to the capital gains from the disposal of Tikehau Investment Management shares for €64.2m and to the change in fair value of Salvepar shares for €56.7m. These impacts were presented altogether under “Consolidation transactions” in 2015 (2)

+195% +195%

Target: €13bn Target: €13bn

(2)

+151% +151%

Tikehau Capital

FY 2017 OPERATIONAL HIGHLIGHTS

7

FY 2017 RESULTS PRESENTATION

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 €13bn target Continuous deployment with strong deal-flow and selective approach

–

€3.3bn deployed by Tikehau Capital’s funds (Asset Management platform)

–

€0.8bn of direct investments by Tikehau Capital balance sheet Robust balance sheet to support future growth

–

€702m rights issue completed in July 2017: €2.5bn shareholders’ equity at year-end

–

€1.45bn of new financings secured in 2017: inaugural €300m bond placement and €1.15bn new credit facilities Further development of our international platform: opening of new offices in Spain and Korea in 2017

Tikehau Capital

DIVIDENDS

8

FY 2017 RESULTS PRESENTATION

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

—

Paid from 1 June 2018

Tikehau Capital

CORE PILLARS OF OUR BUSINESS

9

FY 2017 RESULTS PRESENTATION

Our activity is relying on three powerful engines of revenue generation

Investments in Tikehau Capital funds Direct investments Platform & Strategic investments Performance of Tikehau Capital funds Growing Assets under Management Balance sheet deployment: MANA

ANAGEMENT EMENT FEES FEES

DIVIDENDS

IVIDENDS,

, COUPONS

COUPONS /

/

CAPIT APITAL GAINS AINS

PERFORM

ERFORMANCE NCE FEES FEES / C

/ CARRIED

ARRIED INTERES INTERESTS*

Asset Manage Asset Management ment Activitie Activities Investment Activitie Investment Activities Asset Manage Asset Management ment Activitie Activities

* 53.3% of carried interests are allocated toTikehau Capital or its subsidiaries

Tikehau Capital 20-29 29% 30-39 39% 40-49 22% 50 and over 10%

HUMAN CAPITAL

10

FY 2017 RESULTS PRESENTATION

Experienced and diversified teams

A growing experienced team

– 198 FTEs at year-end – Average experience of over 11 years

A diversified team to support innovation and growth

– Gender-balanced teams – ~70% of staff below 40 years old – 18 nationalities throughout Europe, Asia and the US

Strong experienced backbone Free shares granted to employees to incentive and align of interests

FTEs by age

Tikehau Capital 11

FY 2017 RESULTS PRESENTATION

Business review

Tikehau Capital

ALTERNATIVE ASSET MANAGEMENT MARKET DYNAMICS

12

FY 2017 RESULTS PRESENTATION

Tikehau Capital is active in fast-growing and profitable asset classes Alternative AM: 40% of global AM revenues in 2020 vs. 33% in 2013

Source : BCG Global AM 2016 report 33% 33% 40% 40% 11% 14% 12% 9% 35% 30% 8% 7%

2013 2020E

Cash and passive Active equities Active fixed income Balanced / multi-asset Alternative assets

Segments included in Tikehau Capital’s current scope Segments not included in Tikehau Capital’s current scope

Expected evolution of AM segments between 2015 and 2020

Funds of private equity funds Money market Fixed income core Structured Fixed income specialties Commodities Real Estate eal Estate Private debt Private debt Infrastructure Liquid Liquid alternatives alternatives Equity specialties Equity core Balanced Passive equity Passive fixed income LDIs Fixed-income ETFs Solutions Equity ETFs Private equity Private equity Hedge funds Funds of hedge funds Net revenue Net revenue margin margin (bps) (bps) 50 100 200 Est Estima mated si size in 2015 2015 (scale = (scale = $1tn) n) 25 75 % grow % growth

• 5

5 10 15 20 25

Tikehau Capital 1.2 1.5 2.0 2.4 3.9 0.3 0.1 0.2 0.4 1.2 (0.2) (0.2) (0.1) (0.2) (0.5) 2013 2014 2015 2016 2017

Fundraising Mark-to-market External growth AM distributions

Private Debt 39% Real Estate 10% Liquid Strategies 29% Private Equity

(incl. direct investments)

22%

AUM NET INCREASE AND FUNDRAISING

13

FY 2017 RESULTS PRESENTATION

Strong fundraising performance with FY 2017 €13bn AuM target overachieved

3.0 3.0 Total AuM Total AuM (EoP) (EoP) 6.4 6.4 13.8 13.8 +1.4 +1.4 Net Δ Net Δ YoY YoY +2.0 +2.0 +3.8 +3.8 10.0 10.0 +3.6 +3.6 4.3 4.3 +1.4 +1.4

Lyxor IREIT

(€bn)

FY 2017 fundraising by business line

Tikehau Capital

ASSET MANAGEMENT INVESTOR BASE

14

FY 2017 RESULTS PRESENTATION

Tikehau Capital has been expanding and internationalising its investor base

(1) Including corporate groups, funds of funds, foundations (2) Including commitments by Tikehau Capital and its subsidiaries (€0.7bn) as well as Tikehau Capital’s funds and funds of funds (€0.4bn) in Tikehau Capital’s Asset Management strategies

Other 2% Tikehau Capital group (2) 10% Family offices 15% Banks and other distributors 11% Asset Managers 11% Institutional investors 51%

16% 21% 27% 2015 2016 2017

(1)

75% of investors invested across multiple funds

€11.4bn €11.4bn AuM AuM €11.4bn €11.4bn AuM AuM

>5 Funds 29% 3-5 Funds 42% 1 Fund 29% >5 Funds 24% 3-5 Funds 51% 1 Fund 25%

2015 2015 2017 2017

Successful cross selling effort across the Tikehau Capital platform Diversified investor base 27% of international investors (vs. 16% in 2015)

RoW 1% Asia 4% Europe 21% France 73%

Tikehau Capital

TIKEHAU CAPITAL DEPLOYMENT

15

FY 2017 RESULTS PRESENTATION

Screenings and execution in 2017 Private Debt team

292 screened deals

30 firm offers 16 closed deals

115 screened deals

13 deals with staffing 2 closed deals

Private Equity team (1) Real Estate team

129 screened deals

8 firm offers 2 closed deals

An increasing strong domestic and international deal-flow A strict investment discipline maintained over the years, across all business lines, leading to carefully selected deals

(1) Excluding 25 direct investments

Tikehau Capital 1.9 1.9 1.8 1.8 3.3 3.3 2015 2016 2017

Total deployments by Tikehau Capital’s funds

Private Debt (incl. CLOs) 50% Real Estate 14% Liquid Strategies 36%

TIKEHAU CAPITAL’S FUNDS DEPLOYMENT

16

FY 2017 RESULTS PRESENTATION

Strong deployment in 2017

+72% +72%

€3.3bn invested in 2017 206 companies financed (Direct Lending & Real Estate) A variety of financing solutions provided (private debt, equity, structured products, crowdfunding, etc.) FY 2017 AM investments by business line

(€bn)

Note: Liquid Strategies investment figures correspond to the YoY change in AuM, Private Debt and Real Estate investment figures correspond to the sum of individual investments plus the YoY change in CLO assets

€3.3bn €3.3bn

Tikehau Capital

SNAPSHOT ON OUR BUSINESS LINES

17

FY 2017 RESULTS PRESENTATION

Our of Our offer

Alternative and flexible investment solutions

Our objectiv Our objective

Optimise risk / return over the long term

LIQU

IQUID

STR

TRATEGIE EGIES

PRIV

RIV ATE TE

EQU

QUITY

3 4

PRIV

RIV ATE TE

DEBT

EBT

REAL

EAL

EST

STATE

1 2 Tikehau C kehau Capital is pital is a a long-t long-term invest erm investor focused on

• r focused on the financing

the financing of the economy in Fr

• f the economy in France

ance and abr and abroad

• ad

We are able to deploy a wide and flexible range of financing solutions to the groups we support, from equity to debt to liquid solutions

Tikehau Capital

PRIV ATE DEBT

18

FY 2017 RESULTS PRESENTATION

Differentiation factors

A team of 20+ professionals A pioneer in alternative financing Strong partnerships with private equity funds & banks Innovative & flexible structuring capabilities

AuM: €6.0b M: €6.0bn

(2017 gr (2017 growth: th: +22.3%) +22.3%)

Investment universe

Across the capital structure

‒ Senior loans, stretched senior, unitranche, mezzanine, preferred equity

All sectors in Europe Target size

‒ Revenues (€100m - €2bn) ‒ Value (€100m - €2bn)

Current Priorities

Active fundraising phase on all strategies:

‒ Finalise the fundraising of Tikehau Direct Lending IV (“TDL IV”) ‒ Launch of Tikehau Senior Loan III (“TSL III”) ‒ Launch of CLO IV ‒ Launch of NOVO 2018

Strong pipeline of investment opportunities across Europe

Tikehau Capital

REAL ESTATE

19

FY 2017 RESULTS PRESENTATION

Au AuM: € €2.2bn

(2017 gr (2017 growth: th: +27.6%) +27.6%)

Differentiation factors

10+ professionals Innovative & flexible approach Long-standing track record Tailor-made financing capabilities

Investment universe

Commercial real estate (shopping centres, retail, offices, logistics), particularly sale & lease-back deals Highly creditworthy counterparties, generous potential yields and high latent resale capital gains

Current Priorities

Launch of Tikehau Real Estate Opportunities (“TREO”) Strong pipeline of active deals and opportunities of exit International partnership

Tikehau Capital

LIQUID STRATEGIES

20

FY 2017 RESULTS PRESENTATION

Au AuM: € €3.1bn

(2017 gr (2017 growth: th: +62.8%) +62.8%)

Differentiation factors

20+ professionals in credit and equity strategies (Investment and Research) UCITS and managed accounts Conviction-based management, benchmark-free approach Fundamental investment approach and disciplined investment process

Investment universe

High yield, investment grade corporates and subordinated financials Primarily pan-European credit and Asian credit Value-quality and special situations equity stocks on pan- European, US and Asian markets

Current Priorities

Expand internationalisation investors base Focus on flexible UCITS products Maintain good performance while decreasing credit risk and rate exposure

Tikehau Capital

PRIV ATE EQUITY

21

FY 2017 RESULTS PRESENTATION

Au AuM: € €2.5bn

(2017 gr (2017 growth: th: +72.9%) +72.9%)

Differentiation factors

10+ professionals Investment as a minority shareholder alongside entrepreneurs and founding families Pragmatic approach and entrepreneurial DNA Long-term and flexible investment maturity

Investment universe

Non-listed companies with growing and profitable fundamentals in Western Europe Minority investments, cash out, recap, spin-offs Invest at inflection point: expanding and scaling operations, entering new markets, etc.

Current Priorities

New intiatives:

‒ Launch of Tikehau Growth Equity II (“TGE II”) ‒ Launch of T2 Energy Partners alongside Total ‒ Investment alongside SPRIM venture, a med-tech and life science fund

Strong pipeline of active deals and opportunities of exit

Tikehau Capital 22

FY 2017 RESULTS PRESENTATION

Financial review

Tikehau Capital

P/L PERFORMANCES

23

FY 2017 RESULTS PRESENTATION

Strong results fuelled by our two activities

(1) Including remuneration of the General Partner of €26.8m in 2017 and €23.6m paid to TCA in 2016 PF (2) 2016 pro forma including non-recurring income items related (i) the derivatives costs (€-62.2m) and (ii) to the capital gains from the disposal of Tikehau Investment Management shares for €64.2m and to the change in fair value of Salvepar shares for €56.7m. These impacts were presented altogether under “Consolidation transactions” in 2015 (2) (1)

€m - FYE a €m - FYE as a at 31/ 31/12 12 2017 2017 2016P 016PF Δ % AM revenues 57.9 39.4 +18.5 47% Operating costs (41.9) (35.9) (6.0) 17% AM ne net op t operatin ing p g prof

• fit

it 16. 16.0 3.5 +12. +12.5 353% Investments revenues 387.3 90.5 +296.9 328% Operating costs (40.0) (30.4) (9.7) 32% Net results from associates & non-recurring items (0.1) 59.1 (59.2)

• 100%

Inve Investme stments ne nts net op t operating p ing prof

• fit

it 347. 47.3 119. 119.2 +228. 228.0 191% Financial interest (28.2) (7.9) (20.3) 256% Tax (19.0) 10.6 (29.7)

• 279%

Minority interests (1.6) (0.9) (0.7) 84% Ne Net p t prof

• fit - Gr

it - Group sha share 314. 14.4 124. 124.6 +189. 189.8 152% Asse sset Mana t Manageme gement nt ac activities tivities Investment a activ ivitie ities Gr Group

• up

Tikehau Capital

AUM BY BUSINESS LINE

24

FY 2017 RESULTS PRESENTATION

With €13.8bn of AuM as at 31 December 2017, Tikehau Capital’s activities are organised around 4 business lines

(€bn) Private Private Debt Debt Real Real Estate Estate Liquid Liquid Strategie Strategies AM AM activities activities Private Equity Private Equity (direct (direct in investmen vestments) s) Group Group AuM AuM + + = + = = + Private Private Equity Equity + Private Private Debt Debt Real Real Estate Estate Liquid Liquid Strategie Strategies Private Private Equity Equity 6.0 2.2 3.1 0.1 11.4 2.4 13.8 Private Debt Real Estate Liquid Strategies Private Equity AM activities Direct investments Group AuM Balance sheet commitments in Tikehau Capital's funds

Tikehau Capital Permanent capital 5% 7 years or more 37% 3 to 6 years 18% Less than 3 years 6% Liquid strategies 34% Fee- paying 81% Future fee- paying 15% Non-fee paying 4%

FEE-PAYING AUM ANALYSIS

25

FY 2017 RESULTS PRESENTATION

A solid framework for current and future revenues Fee-paying AuM by duration

€11.4bn €11.4bn AuM AuM

AuM breakdown (AM activities)

€9.2bn fee- €9.2bn fee- paying AuM paying AuM

90% of our fee-paying AuM on our closed-ended funds have a duration

• ver three years

Tikehau Capital 26.0 38.6 53.8 27.9 27.9 39.4 39.4 57.9 57.9 2015 2016 2017 Management fees & others Performance fees & carried interests 3.6 3.6 5.2 5.2 7.6 7.6 2015 2016 2017

Average fee-paying AuM

ASSET MANAGEMENT REVENUES

26

FY 2017 RESULTS PRESENTATION

Recurrent stream of Asset Management revenues following the growth in AuM

(€m)

(2)

€4.1m of performance fees and carried interests in 2017 FY 2017 AM fees by business line

(1 (1) (1) For each year n, average fee-paying AuM = (fee-paying n - fee-paying AuM n-1) / 2 (2) AM fees include management fees, arrangement fees and other revenues

CAGR: +44% CAGR: +44%

Asset Management revenues

(€bn)

CAGR: +45% CAGR: +45%

€53.8m €53.8m

Private Debt 54% Real Estate 24% Liquid Strategies 22% Private Equity 0%

Tikehau Capital 71 75 71 76 76 76 76 76 76 2015 2016 2017 Management fees & others Performance fees & carried interests

FEE RATE EVOLUTION

27

FY 2017 RESULTS PRESENTATION

Balanced fee rate across our 4 business lines and high regularity over time

(bps)

(1) Implied fee rates are calculated based on average fee-paying AuM (2) AM fees include management fees, arrangement fees and other revenues, net of distribution fees (3) Non material (TSO) – PE funds’ strategy to be launched during H1 for third party

FY 2017 management fee (2) rate by business line

Private Debt Private Debt

80 bps 80 bps

Real Estate Real Estate

86 bps 86 bps

Liquid Strategies Liquid Strategies

48 bps 48 bps

Private Equity Private Equity

n.m. n.m. (3)

(3)

Overall Overall

71 bps 71 bps

Weighted average fee rate (1)

(2)

Tikehau Capital (28.9) (28.9) (35.9) (35.9) (41.9) (41.9) 27.9 27.9 39.4 39.4 57.9 57.9

(10.0%) (5.0%)

• 5.0%

10.0% 15.0% 20.0% 25.0% 30.0%

2015PF 2016PF 2017 Operating costs AM revenues

ASSET MANAGEMENT PROFITABILITY

28

FY 2017 RESULTS PRESENTATION

Profitability climbing rapidly

AM revenues, Operating costs & Operating margin

Sustainable Sustainable

• perating margin
• perating margin
• bjective >
• bjective > 25%

25%

+27.6% +27.6% +9.0% +9.0%

• 3.9%
• 3.9%

(€bn) Operating margin

Tikehau Capital 18.6 43.9 64.1 80.6 46.6 323.2 99.2 99.2 90.5 90.5 387.3 387.3 2015PF 2016PF 2017 Dividends, coupons and distributions Change in fair value

INVESTMENT REVENUES

29

FY 2017 RESULTS PRESENTATION

Strong performance of the investment portfolio over the period

18.6 18.6 70.9 70.9 340.8 340.8 (€m)

Main contributions for the year (1)

(1) As at 31 December 2017 (2) Exit price of investment sold during the year – historical cost of investment

DRT €160m Eurazeo €104m Tikehau Capital’s funds €48m Salvepar €33m HDL-Assystem €20m

“Cash-on-cash gain” (€m) (2)

Tikehau Capital

€m €m - F

• FYE a

E as a at 31/ 31/12 12 2017 2017 2016P 016PF Δ Investment portfolio 1,565 934 631 Cash & cash equivalents 975 520 455 Other current & non-current assets 595 359 236 Total assets Total assets 3,135 3,135 1,813 ,813 1,322 1,322 Shareholders' equity - Group share 2,499 1,512 987 Minority interests 30 18 12 Financial debt 548 205 342 Other current & non-current liabilities 58 77.4 (20) Tota Total lia l liabilitie ilities 3,135 ,135 1, 1,813 813 1,322 ,322

Gearing 22% 14% LTV (20%) (24%) Undrawn committed facilities 900 100

BALANCE SHEET FIGURES

30

FY 2017 RESULTS PRESENTATION

Equity reinforced and strong financial means

(1) Cash, cash equivalents and financial treasury assets (2) 2016 PF: Salvepar’s short term deposit > 3 months (€25m) reclassified from investment portfolio to cash and cash equivalents (3) Gearing = Total financial debt / Group share shareholders’ equity (2) LTV = (Financial debt – Cash & cash equivalents) / (Total assets – Cash & cash equivalents)

Strong financial means to support further investments in diversified strategies and external growth:

— €975m of cash (1) — €900m of undrawn facility

Robust equity structure supporting the business model

(3) (4) (1) (2) (2)

Tikehau Capital

377 377 512 512 557 557 1,053 1,053 1 2 Tikehau Capital's funds Direct Investments

TIKEHAU CAPITAL’S INVESTMENT PORTFOLIO

31

FY 2017 RESULTS PRESENTATION

Continuous deployment consistent with allocation policy

166 166 # of investments # of investments 137 137 (€m)

€779m investments vs. €380m of exits

• ver the period

€512m invested by Tikehau Capital in its AM strategies

2017 934 934 1,565 1,565

Top 5 Investment positions (1)

Eurazeo €445m Claranet €85m HDL - Assystem €60m Altrad €49m TDL III €43m

2016

(1) As at 31.12.2017

Tikehau Capital 32

FY 2017 RESULTS PRESENTATION

Conclusion

Tikehau Capital

CONCLUSION

33

FY 2017 RESULTS PRESENTATION

Tikehau Capital’s path to become a European leader in Alternative Asset Management

Platform Platform development development 2012 2012 Continue Continue expansion to expansion to become a leading become a leading alternative asset alternative asset manager manager

OUR FOO OUR FOOTPRINT PRINT

Acceleration of the development

• f international offices

Increase the proportion of international clients within the client base

OUR POSITIONNING OUR POSITIONNING

Scale up the AM platform Pursue the implementation of strategic partnerships with key players in the industry Pursue potential external growth transactions

OUR BUSINESS MIX OUR BUSINESS MIX

Increase the proportion of Real Estate and Private Equity in the business mix Balance the product offering among the four business lines Roll-out the Private Equity know- how to the benefit of AM clients Increase AM profitability with investment profitability

OUR FOO OUR FOOTPRINT PRINT

Opening of 6 international offices Growing internationalised and diversified team

OUR POSITIONNING OUR POSITIONNING

Alignment of interests A network of blue-chip investors and senior partners IPO and equity reinforced

OUR BUSINESS MIX OUR BUSINESS MIX

Create and structure the four business lines Expand and diversify the investor base

ON TRA ON TRACK… K… COMPLETED COMPLETED

2017 2017 2020 2020

THE TIPPING YEAR THE TIPPING YEAR

Tikehau Capital 34

FY 2017 RESULTS PRESENTATION

Appendices

Tikehau Capital 37.0% 37.0% 11.9% 11.9% 5.0% 5.0% 2.2% 2.2% 2.8% 2.8% 2.8% 2.8% 3.0% 3.0% 3.3% 3.3% 5.4% 5.4% 8.6% 8.6% 17.9% 17.9%

LEGAL ORGANISATION AND SHAREHOLDER STRUCTURE

Strong shareholder base supporting institutional development

35

FY 2017 RESULTS PRESENTATION

Tikehau Capital simplified organisation First-tier institutional shareholders

Tikeha kehau C u Capital pital

Management Management (1

(1)

Others Others Institutional Institutional Shareholders Shareholders

37.0% 17.9% 45.1%

Tikehau Investment Tikehau Investment Management Management Tikehau Capital Tikehau Capital Europe Europe

Asset Management

Employees Employees

0.9% 0.9% 99.1% 75.1%

Management (1) Other shareholders Shareholders’ agreement 56.1%

Fonds Stratégique de Participations (FSP) (2)

Note: data as at 31/01/2018 (1) Including Tikehau Capital Advisors (29.8%) and Fakarava Capital (7.2%) (2) FSP’s shareholders include BNP Paribas Cardif, CNP Assurances, Credit Agricole Assurances, SOGECAP, Groupama, Natixis Assurance and Suravenir

Tikehau Capital

FINANCIAL BUSINESS MODEL

36

FY 2017 RESULTS PRESENTATION

Expectation of balance sheet allocation of assets on a medium-to-long term basis

Investment in Investment in Tikehau Tikehau Capital’s Capital’s Funds Funds Private Debt

Target Investment Income Stream

Opportunistic Opportunistic Investments Investments Platform & Platform & Strategic Strategic Investments Investments Principal Investment Increase Capital Distribution Private Equity & Special Situations Real Estate Liquid Strategies Increase Synergies Capacity Increase Capital Deployment and Sourcing Investment Investment Income Income Carried Interests Carried Interests Performance Fees Performance Fees Investment Investment Income Income Capital Gains Capital Gains Dividends Dividends Capital Gains Capital Gains Management and Management and Performance Fees Performance Fees 65-75% 65-75% 25-35% 25-35% External growth External growth

Objective

Tikehau Capital

MID-TERM OUTLOOK

37

FY 2017 RESULTS PRESENTATION

3

Strong balance sheet

Use our significant cash and equity position to:

‒ Invest across business lines ‒ Develop co-investments ‒ Seize growth opportunities ‒ Continue our portfolio diversification

4

Internationalisation

5

External growth

Foster growth through acquisitions Track-record:

‒ 2012: Salvepar ‒ 2016: Lyxor UK's European Senior Debt Operations ‒ 2016: IREIT Global ‒ 2017: Credit.fr

6

Partnerships

Access new expertise, new products

and new investors through partnerships

with blue-chip partners Recent announcements:

‒ Groupama AM (distribution) ‒ SPRIM and RING ‒ DWS ‒ Sofiproteol

Continue dynamic fundraising: target to reach €20bn AuM by 2020 (+€6.2bn vs. today) Strong momentum in fundraising for our flagship funds in early 2018 Objective to expand the investor base

1

Fundraising

Promote the Tikehau Capital brand across all business lines Scale up the profitability of AM activities Roll out our PE expertise to the benefit

• f our AM clients

Optimise coordination across Tikehau Capital’s offices

2

Operating performance

Leverage on our deep network of investment partners to create co- investment opportunities abroad Opening of an office in NYC

Tikehau Capital 38

FY 2017 RESULTS PRESENTATION

DEAL SAMPLES

Privat Private Debt – Debt – Financ inanced Company Company Privat Private Debt – Debt – Sponsor ponsor Privat Private Equity e Equity Real Estat Real Estate

Tikehau Capital 39

FY 2017 RESULTS PRESENTATION

CONTACTS

Singapore

8, Marina View #15-07A Asia Square Tower 1 Singapore 018960 SINGAPORE Phone: +65 6718 2111

Seoul

43FI, Three IFC 10 Gukjegeumyung-ro, Youngdeungpo-gu Seoul, 07326 KOREA Phone: +82 2 6138 4331

Brussels

IT Tower, Avenue Louise 480 1050 Brussels BELGIUM Phone: +32 2894 0080

Paris

32, rue de Monceau 75008 Paris FRANCE Phone: +33 1 40 06 26 26

London

111, Old Broad Street London EC2N 1AP UK Phone: +44 203 821 1030

Milan

Piazza del Carmine 4 20121 Milan ITALY Phone: +39 02 0063 1500

Madrid

Calle de Velazquez 98 28 006 Madrid SPAIN Phone: +34 91 048 1666

New Y

• rk

412 West 15th St. 18th Floor New York, NY 10011 UNITED STATES Phone: +1 (917) 434-9234

TIKEHAU CAPITAL

32, rue de Monceau - 75008 Paris - France Phone: +33 1 40 06 26 26 Fax: +33 1 40 06 09 37 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 informational purposes only, and should not be regarded as an offer to sell or a solicitation of an offer to buy any securities, futures, options, investment products, share

• f funds or other financial product or services. All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change

without notice. Tikehau Capital shall not be held liable in any case for any decision taken based on the present document. Past performances are no indicator of future performances.