Tikehau Capital

Good evening, ladies and gentlemen. Thank you for joining us today for H1 results. I will start with the first couple of slides, four slides, and then over to Henri. First slide. Market environments remain volatile and selective. Geopolitical development continues to wait on visibility. Financing conditions remain relatively tight, and investors remain highly selective in their capital allocation decisions. In that context, discipline matters more than ever. Discipline in deployment, underwriting, capital allocation, and cost management. This environment is challenging, but it also creates opportunities for experienced professionals. Importantly, we are also seeing encouraging signs of improvement in exit activity, particularly in part of private equity and real estate. But the environment remains challenging, but it is supportive of differentiated platforms that can execute with discipline, innovation, entrepreneurship, and agility. Next slide. H1 2026 marks a clear step up for TKO and in our view, a major first step in our harvesting phase. What we are seeing now is the translation of execution into profitability and earnings. For TKO Asset Management, we deliver a strong increase in profitability supported by continued operation momentum, client-based expansion, and strong operating leverage. On the investment portfolio side, we deliver active portfolio rotation and value create crystallization as a consequence. The combination of these two engines results in a doubling of net results, group share, year on year. More fundamentally, this semester confirms that our model is becoming more scalable, more visible in its earnings power. Now a few key figures for H1. We reached 53.5 AUM. Up 5% year-on-year, reflecting continued franchise momentum in a still-selective fundraising environment. For TKO Asset Management, management fees increased by 13%, and more important, core FRE increased by 32%, bringing core FRE margin above 40% to 42%. This is an important milestone. It shows that the operating leverage embedded in the platform is now materializing clearly in our profitability. On the balance sheet, we generated 310 of realized revenue and 220 million of total portfolio revenue in H1, reflecting active portfolio rotation and value crystallization in this challenging environment. All that translates into 168 65 million of net results group share which is double of H1 2025. So the key point here is that we are seeing both stronger recurring earnings from asset management profitability and meaningful contribution from the balance sheets. Few takeaway for today. First on CTO asset management. Our first key takeaway is that the profitability inflection in asset management is now clearly visible and will accelerate. We now have a more focused, robust, and streamlined platform, better positioned to convert operating leverage into earnings growth. At the same time, our franchise continues to demonstrate strong momentum, as illustrated by the successful closing of the sixth direct lending vintage, for instance, at 5.2 billion, around 60% larger than its predecessor. More broadly, we are pursuing a more selective approach to goals focused on strategies and initiatives that are scalable, profitable, and aligned with our long-term model. Now on the balance sheet side. Second takeaway is that the balance sheet is delivering value crystallization and benefits from greater financial flexibility. We have been actively rotating the portfolio in the first half. At the same time, we have materially strengthened our financial flexibility with now 1.6 billion of available short-term resources, 500 million of cash and 1.1 billion in our RCF, and no debt maturity before 2029 following redemption that will take place in August. Our investment grade rating was reaffirmed by both S&P Global and Fitch Rating. These stronger balance sheets provide both resilience and optionality as we move into the next phase of development. I'll now hand over to Henri for a detailed look at our operating highlights.

Thanks Antoine. Good evening everyone. Nice to be here with you tonight for this H1 call. I'm now moving to page 10, and I'll start maybe with our transaction and commercial activity for the last 12 months, end of June 26. So, as said by Antoine, but I think that overall, you know, in a market environment that remains highly selective, the TKO platform has continued to show resilience across deployment, realization, and fundraising. So starting with deployment over the last 12 months to June 26, as you can see, deployment has reached €7 billion, moving from €5.7 billion to the last 12 months of June 25. H126 was marked by the slower pace of deployment in credit, mainly due to our CLO activity, translating once again here, you know, our pushers approach in the current context. As far as realization are concerned, so they rose to 3.7 billion euros from 2.7 billion last year, showing once again here our ability to crystallize value across all our strategies. This has actually translated into 3.3 billion euros of return of capital distribution to our LPs, reinforcing here the strength of our asset management flywheel. On the right part of the page are commercial momentum translated into 5.7 billion euros of net inflows over the last 12 months. H126 fundraising activity at 1.7 billion euros as here to be compared to H125. As a reminder, H125 benefited from a high comparison basis as it was notably linked to the Aegis Continuation Vehicle and we also had for the first semester of last year. Our master fund in credit, TKO Direct Lending No. 6 and Secondaries No. 2. We are ending end of June with a position of 7.2 billion euros of dry powder, giving us once again here flexibility entering into H2. So overall, despite, I would say, a more demanding market backdrop, last 12 months' view shows continued scale, strong realization activity, and solid capital formation. We are now going to provide you a few explanations on our main business unit, starting by private credit, page 11. Here, once again, the platform has remained both resilient and highly selective in the first half. Starting with a few data points on our portfolio quality first, our discipline has remained unchanged. For the direct lending funds, 100% of our investment are covenant attached and analyzed default rate has remained stable at 1.5%. We just announced that our sixth vintage of direct lending strategies, you know, at 5.2 billion euros. And here, average leverage at closings to that 4.3, so remaining, you know, quite secured. At the same time, we have maintained a high, very high degree of selectivity, as you can see on this page, with a 98% rejection rate for H1. Just a few data points on activity. We completed 43 investments in the first half, representing 1.3 billion euros deployed. Around 50% of deployment came actually from add-on financing in direct lending, which here reflects or focuses on supporting existing portfolio companies once again in a more selective market. We remain also active but burdened in the CLO market. We have issuance reflecting discipline pace in less clearly supportive environment than last year in 25. As far as exits are concerned, we completed 24 exits in H126, corresponding to 0.6 billion euros of realization and realized performance remains here once again solid with an average MYC of 1.2 for direct lending and special opportunity. So overall, as far as private credit is concerned, I think that we are reflecting here what we've always been focusing on, strong underwriting discipline, resilience portfolio quality, and continued actively focused on attractive risk-adjusted opportunities. Providing you now a few data points on our real estate business, page 12. We have maintained a dynamic transaction activity in a market that has here once again remains relatively limited and muted. We actually deployed 0.7 billion euros in H1-26. Supportive by attractive opportunities across our platform. To be noted, we completed two co-investment transactions representing an aggregate value of 400 million euros alongside us to onboard here new clients, new funds and co-investment opportunities. One of the key transactions in the period was actually the acquisition alongside co-investors of a Spanish portfolio Thank you very much. Here again, illustrating our conservative use of leverage. On exit, 0.3 billion euros during the first semester. These disposals were actually many primary granular assets in Spain, in Iberia, in France, completed with an average MOIC of 2.2 for our value-add strategies and 1.2 for our core plus strategy. More broadly, as far as real estate is concerned, as a conclusion, market backdrop remains selective, but we continue to see attractive deployment opportunities, and we have a robust pipeline in terms of identified exit opportunities for H2. I will now move to private equity business, page 13. Here, the first half was characterized by continued value crystallization, while deployment has remained deliberately selective. We have deployed €0.3 billion across three investments. The approach remains conviction-led, focused on dedicated vertical, and also focusing on sourcing larger transactions, enabling us to generate co-investments. That being said, the number of transactions have been signed at the end of June, not yet closed, and they will benefit to our second half. A few data points on our portfolio quality side. Average leverage stood at 3.x time, and the average EV to EBDA multiple at entry overall for all our strategies now stands at 11.3 times in the current environment. As far as exits are concerned, we completed on private equity three exits during the first semester, representing €0.3 billion realized, an average MOIC of 1.7 times. These exits actually came from our cybersecurity, aerospace defense, and gross equity strategies. Here, once again, we continue to benefit from a healthy pipeline in terms of identified exits opportunity, which give us confidence in our ability to further crystallize value for our LP going forward during the second semester. Overall, I would tend to say that PE remains here a strategy where discipline on entry and strong thematic positioning continue to support the attractive exit outcomes. Jumping into page 14 and providing you a few data points on our capital market strategy, H126 fundraising was slower than last year, but overall performance remains solid. Net infos were clearly affected by outflows during the first quarter, but the picture improved in the second quarter with renewed positive net inflows. Investor demand has remained supported by the resilience for short duration strategy in a context where clients continue to look definitely for yield, with controlled duration risk. The quality of the platform is also reflected in external recognition and here we provided you a few data points on that. Several of our strategies continue to benefit from strong ratings from Morningstar including notably TKO short duration, TKO credit court term, TKO listed real estate. We also continue to broaden on international distribution footprint with particular focus in the UK, Switzerland, Italy and Germany, on which our team have been working strongly since the last quarter. So overall, while fundraising was slower in the first half, CMS remains an important contributor to the diversification of the group, visibility and international reach of our platform. Now we've gone through the four business units. Maybe one quick focus on page 15 and the solid fundraising for our flagship strategies. In direct lending, we completed the fundraising of our sixth vintage with €5.2 billion in H126, which is around 60% larger than the predecessor fund. This is once again here a major milestone for our platform in a strong sign of continued investor confidence in our European mid-market direct lending franchise. New LP coming from a new geography, so benefiting and here demonstrating growth. The track record that we've been building in direct lending now for more than 15 years. In private equity, fundraising also continued to progress well. A few data points on our flagship thematics. First one on decarbonization strategy, which has now reached 2.6 billion euros, progressing towards a target of more than 3 billion, with a fundraising period that will end in Q4 2026. On aerospace and defense strategy, overall has reached 700 million euros for vintage number two and co-investment vehicles. So progressing toward here, a target of 1.4 and fundraising will be running until end of the year 2026. Across this strategy, we continue to see strong interest, specifically in the current geopolitical and economical environment that we're going through since the beginning of the year. So taken together, I would say that these dynamics confirm the relevance of our flagship strategies and the continued depth of demand from our client base. That's it for TKO Asset Management Optional KPI. I will now hand over the mic to Vincent for the financial highlights. Vincent, the floor is yours.

Thank you, Henry. Good evening, everyone.