Tikehau Capital

Good morning, ladies and gentlemen. Thank you for being with us today. Today is about three words, acceleration, profitability, and value creation. And everything we'll discuss this morning will connect back to these three priorities. I'm Theodore Aksu, head of investor relations for TKO Capital, and I'm delighted to be hosting today's full year results and strategic update. So today, you'll hear from our two co-founders, Antoine Flammarion and Mathieu Chabron, our deputy CEOs, Henri Marcoux Thomas Fribergé and Maxime Laurent Bellu, and our group CFO, Vincent Picot. So a little bit of housekeeping element on the flow of this session. So we'll first start with a look on TKO Capital key achievements for 2025, and then open the floor for a first session of Q&A dedicated to our annual results. We'll then take a short break to allow everybody to refresh, to grab a coffee, before moving into our strategic update. Then you'll hear first from Thomas, who will share his perspectives on opportunities shaping the next decade. Then we'll have Maxime hosting a fireside chat with our co-founders discussing accelerating profitability across asset management. Then we'll have our co-founders and Henri. provide insights on our evolving approach to balance sheet allocation before taking us through the harvesting phase TKO Capital is now entering and providing more details on profitability drivers and value creation framework. We'll then host a second session of Q&A dedicated to our strategic update. With that, it's my pleasure to welcome to the stage Mathieu Chabron, co-founder for Opening Remarks.

Thank you, thank you Theo. Welcome, welcome everyone here in London and welcome for all the people who dial in on the webinar, the webcast. I hope that you can hear us okay, you got all the documents and that you will be enjoying this presentation with us. So, very happy to be back in London, not only for our 2025 full year earnings, but also for this new Capital Market Day, as we call it, and very excited on behalf of the whole team to host you at TKO and give you a little bit of the forward-looking, which is really what we would like to focus on today. But first, let's start with our 25 earnings that were released this morning. I like to call it a record year because the numbers stand. But before we get into the numbers, I would like to tell you and witness how strongly the franchise has evolved over the past few years and the acceleration, as Theo was rightly saying, that we benefited from in 2025. It's been a record year on the deployment, despite, you know, if you look back and think about what 2025 was as a year and as markets to operate in, you know, that was a record year on the deployment. On the realization, you know, we come back to that on exiting some of our portfolio companies and distributing back to LPs. And as well as, you know, the fundraising, you know, the gross and net inflows will get back to that. We told you in 2022 that the focus was to develop, grow the profitability of the asset management. Remember that when we went public nine years ago, we were barely doing $5 million of EBIT. It's close to $150 million this year. And you will see that this growth and expansion in asset management profitability is here to stand and will give you some guidance where we think we can go. And then finally, you know, the portfolio, you know, we've got these two engines at TKO, right? The asset management, the principal, or a balance sheet. You know, we saw some strong, you know, contribution, albeit this year impacted by some forex, and we'll come back to that. So as I was saying, recording, deployment, realization, inflows. On the deployment, it's 7.6 billion euros that we put at work at TKO, which is an increase of 35% compared to 2024. On the realization, on the exit, we like to say at TKO that you have to give back so that people keep giving. And you keep hearing about investors not getting money back. You know, what we tried to do last year is to demonstrate that, yes, you can exit some portfolio company, give back to your investors so that that keeps fueling the next cycle of growth. And that was twice what we did in 2024. On the capital formation... It's 10.5 billion of gross inflows, and that's the fourth consecutive year of record year in fundraising. It's 8 billion in net inflows. And what we are very... Encouraged by is that the whole investments we made in the platform of the past few years globally Remember we went public we had five offices when we saw you in 2022 for the capital market day. We had seven offices It's now, you know 17 offices. We've got you know across the world and from Asia including Japan, Middle East, across Europe today, North America, even South America now, we've got all these new customer base that are fueling the fundraising at TIKIO. And so 80% last year came from new customer base, new geographies outside of our domestic market, taking our overall AUM to 52.8 billion euros. So, as I was saying, you know, we've been focusing on larger transactions with a more global portfolio, not only in Europe, you know, domestic markets, but in Asia, in North America. And that has enabled us to raise additionally more than a billion, a billion two euros of co-investments on some of those larger transactions. You'll have some examples later on that you may have picked up over the past year, but that has been a strong driver. On the capital formation, as I was saying, a few elements. In Asia and Middle East, it's a billion euro that was contributed. We hit the billion euro of inventories of clients in Korea that we had open, you know, six years ago. And just I'll leave you an example that, you know, we kind of like. Just last year, out of the 10.5 gross info we had, you know, four investors, four new investors actually, accounted for 20% of our fundraising. And they were all new relationships of ours. Bigger commitment. I mean, they came from some very... complicated to penetrate markets. I'm thinking about Japan, I'm thinking about Germany, I'm thinking about the US, I'm thinking about Middle East, GCC, Abu Dhabi. This is a strong illustration that the investment we made in the platform is now paying off and we're harvesting all this investment that we had made. And so, as I was saying, giving back capital to your LP it's 4.1 billion that we returned to our LP last year and just as a data point because people have been talking a lot about private equity last year and I'm sure we'll have plenty of questions about private credit as well and we're looking forward to addressing them but it's a 2.6x that we return to our investors on the realized transaction so Where does that leave us on the financial? I mean, we issued this morning all the numbers in the details. We'll come back. But if I look at the first pillar of our business, our asset management business, it's an 8% growth of our revenues converting into 18% growth at the EBIT level. We grew by 12% of core FRE, these fee-related earnings. And for the first time, as we told you a few years ago, we passed the 40% core FRE margin. And you may have picked up, and we'll come back to that, that we're giving an improved guidance on this very important profitability element. On the second pillar, the portfolio, it's a 19% growth in our realized revenue for the balance sheet, our investment portfolios, and a 33% revenue growth if we exclude, once again, these currency effects that Vincent will be detailing. So finally, it's 136 million net income that we are reporting for 2025, which is 51% growth if you exclude this currency effect. And so we propose an 80 cents dividend that we'll be voting at the next AGM. So that's for the key element. There'll be plenty of details on the session. Once again, thank you very much. We look forward to an interactive session. Thank you. And I will hand over to Henry for more details.

Good morning, everyone. Thanks, Mathieu, for this introduction. So let's jump into our asset management flywheel. Maybe we'll start with deployment. As you have seen, deployment has clearly stepped up during the year 26. We've reached 7.6 billion euros of deployments, so that's an additional step. 2 billion, 35% compared to the year 24. Starting with private equity, maybe with a 2 billion compared to 600 million euro the year before. Clearly, we've accelerated deployment, notably on aerospace and defense, cybersecurity, decarbonization in Spain, Belgium, Germany, and in U.S. through our flagship strategy, but as well through our co-investment vehicle. Real assets represented 1.4 billion euros of investments compared to 1 billion euros during the year 24. Here again, you know, discipline has remained paramount. We continue to focus on high-quality, well-located assets, notably to be noticed during the year 24, big residential portfolio units in France, as well as a big investment, first investment in real estate in the US, and notably several additional investments in the Netherlands. As far as credit is concerned, so that's clearly a stable deployment versus 24. We are standing at 4 billion euro, very well diversified allocation through Spain, Italy, Netherlands, Belgium, UK, very strong momentum as well on our CLO issuance business. And so we are ending the year with more than 7.6 billion euro of dry powder and of 25 to be ready to capture new investment during the year 26. We've been talking about executing larger transactions. That's a very key important point that we wanted to mention today. So out of the 7.6 billion euros of deployment during the year, we had 1.2 billion that were deployed through dedicated co-investment vehicles. That has been the case on the private equity business, such as the Aegis transaction we've been commenting for a few months. EISA in Spain. That has been the case for, as well, Sciatech aerospace and defense deal in Belgium. That has been the case, as well, for real assets. through this residential deal. That has been the case as well for private debt, where we had several deals where we have welcomed co-investors. So that's clearly a new feature here, creating adjacencies, creating new funds alongside our flagship and welcoming co-investors. What does that mean? That means that through this creation of new vehicle, we are bringing into the platform additional fee paying. So management fees that are going to fuel our fee-related earnings and additional performance fees, which will depend on the exits, of course, but which will fuel as well our asset management EBIT. So looking at what happened in 2005. over those co-investments. That's roughly more than €1.2 billion of additional co-investment, bringing more than €150 million of asset management EBIT for the coming year. Realization, clearly here, once again, a strong increase. It's almost the double figure as what was exited in 24, so reaching 4 billion of exits. Here again, private equity has been increasing significantly. That's 1 billion euro of exits for five positions that were exiting during the year, reaching 2.6x of multiple, so clearly in line with our fund expectation. As far as real estate is concerned, we remain stable, €500 million of exits. Multiple on real estate achieved has been 1.6 times. That's at asset level, unlevered, and those exits are mainly residential and light industrial. As far as private credit is concerned here, clearly very strong increase. Realization has reached a record that's almost 2.7 billion euros. As far as direct lending and corporate lending are concerned, those are repayments. The average MYC reach has been 1.4. As far as our special ops business is concerned here, we've been exiting several positions as well at our initiative, achieving a gross MOIC of 1.6 times. I want to insist on that because clearly, you know, in 25, I think that the global macro environment, as far as exits is concerned, has been challenging. In that context, we've been able to deliver 4 billion euros of exits. So we are sending back money to our LPE, We are increasing the DPI, which is key. We are increasing the performance. And all the average growth MOIC that have been realized on all of our exits are clearly either in line or above our fund expectation. Fundraising. So here again, we've been mentioning 10.5 billion euros of gross inflows record year. As far as net inflows is concerned, that's 8 billion euros of net inflows, so a 13% increase during the year. Looking at this fundraising a little bit more in detail, you can see that as far as private equity is concerned, we've reached 2 billion euro. We'll come back on that. Those inflows have been driven by the cybersecurity, final close, regenerative agriculture as well. Our specialist fund being decarbonization fund number two, aerospace and defense fund number two have been benefiting obviously from strong inflows in the current environment. As far as real estate is concerned here, it's a performance of 1.3 billion euros of net inflows, focusing on value-add and core plus. This is including the previous transaction I was mentioning, notably residential in France, the one in the Netherlands as well. Strong contribution from credit, 4.4 billion euros, stable versus last year. As we've just announced a few days ago, we've been closing our credit secondary fund number two, $1 billion, which is almost double the size versus previous vintage. As far as direct lending, vintage number six is concerned, which is still open as we speak. We are close to 5 billion euros. And here we have secured the two largest individual LP commitments in our history from Germany and in the U.S. Demand as far as direct lending is concerned remains quite strong. So as you can see over here, diversified strategy. Larger tickets, co-investment, client convictions, bringing us into this record 8 billion euros for the year 2025. So just a snapshot here on where we stand on our flagship. So I was mentioning special opportunity fund number, vintage number three, 1.2 billion, which is almost, you know, the double versus the previous vintage. Credit secondary, $1 billion. As far as private equity is concerned, regenerative agriculture, vintage number one, 600 million euro. Cyber security, fourth vintage, almost doubling the size versus the previous vintage. As far as 26 is concerned, lots of ongoing fundraising as we speak. Obviously, direct lending number six. Can you hear me like that? Okay. Obviously, direct lending number six, still open as we speak and benefiting from strong inflows. This year will be as well a strong year as far as private equity. As far as private equity is concerned, we are still open during all the year, aerospace and defense fund number two, and decarbonization fund number two. So you have here on the screen the evolution of our AUM during the year. So it started at end December 24 at 49 billion euro, ending at 52.8 billion euro. Different movements of the year have been impacted by the inflows I was mentioning, 8 billion euro, and the distribution standing at 4.1 billion euro. You have on the right side of the page, you know, the diversified and the complementary asset class, the split. by business unit. Thank you. We'll do like that. It will be a bit easier. As far as client base is concerned, one important feature, Matthew was mentioning the number of offices we are operating, namely 17 offices as we speak. Important to notice that as far as inflows are concerned, that's more than 80% of net new money that has actually been raised from international clients. You have here the biggest contributors for the year 2025 being U.S. investors, U.K., Spain, Germany. To be noticed during the year 2025, strong contribution from Asia, namely from Korea and Japan. Korea has gone over the $2 billion mark for the year 2025. Contribution as well from Israel, where we are approaching the $2 billion mark. euro mark as far as LP commitment are concerned. So those are the most represented nationalities in 25. On the right part of the page, you do have actually the split, which means that international clients have increased from 44%, 24, to 46%. So that's a 13% increase representing 24 billion euro at end of 25. Private marketing is important feature. We've been focusing significantly over the past year over the strong growth era of growth. That has been the case as well for 25. That's 25% of third-party inflows that were raised through private clients. That's actually notably all the initiatives we've been launching on private debt, private credit, unit link product have now reached more than $1.5 billion at the end of December. As far as AUM are concerned, that means private customer clients are now representing more than 34% of IUM, that's actually more than 18 billion euros. Two dedicated initiatives that have been launched during the year 25. One on private credit, namely TEPC, TKO, European Private Credit, semi-liquid fund, focusing on mid-size European company. And second important initiative that was launched during the summer, which is a unit link dedicated to defense, security, aerospace. This unit link is currently distributed through partnership that we're having with a big insurance company. We are currently standing over 200 million euros for this product, where the distribution has started, and of 25, focusing on our aerospace and defense practice. and notably the track record that we are benefiting on that practice, aerospace and defense practice that was launched back in 2018. Last point on sustainability. You know, a few years ago, we had a set, a target on AUM dedicated to climate and biodiversity. Our target was to achieve at least 5 billion euros of AUM dedicated to that practice. And of 25, we are standing at 5.8 billion euros, notably thanks to our decarbonization practice, fund number two. So that means continued sustainability integration across the several pillars that we are benefiting through the whole platform. I will now leave the floor to Vincent for the financial review. Thanks.