Eurazeo Paris Ord

Good morning and welcome to Eurazeo's 2022 financial results. I am today with William Cadouche-Chassin and Christophe Bavière, our co-CEOs. William will first give you the highlights for the year. Christophe will then detail our fundraising and asset rotation activity. William will be back to present our financial results, and I will touch on the coming changes in our financial reporting. Of course, we will end up with a Q&A session. I now hand over to William for the highlights.

Thanks, Pierre. Thanks you all for joining this call. Christophe and I are pleased to present to you our results for the year and answer your questions. We continued in 2022 to move forward in the execution of our strategy. Allow me to highlight four key facts. First, we continue to grow our asset management business with double-digit growth in management fees and fee-related earnings. Second, we executed well on our asset rotation program in spite of a more challenging environment and continue to invest selectively. Christophe will come back to this. Third, we posted another year of value creation across our portfolio with an 8% increase for the year. Our choice of sectors riding future trends has paid off with strong performers and inflation-proof companies. Last, we continue to improve shareholder returns by proposing to the AGM a dividend at 2.2 euro per share, an increase of 26% year-on-year, and by launching a new share buyback program of 100 million euros. To sum up our key figures for the year, our assets under management are up 10% at more than 34 billion euros, Net income reached roughly 595 million euros. Net asset value per share is up 8% at 127 euros. In 2022, we also continue to assert our leadership in ESG, which we believe is a key differentiating factor. Again, a few key facts. 90% of our active funds are now classified as Article 8 or Article 9 according to the Sustainable Finance Disclosure Regulation. This compares with 83% a year ago. We renewed or improved all our ESG ratings, which are some of the best in the industry. As a case in point, we have the best possible rating in all the relevant categories of the UN PRI, and we improved our carbon disclosure project climate change rating to A- versus B in 2021. Last, we validated our SBTI decarbonisation trajectory in early 2022. I now leave the floor to Christophe to comment on fundraising and asset allocation.

Thank you. Thank you, William. Let's start with fundraising. We raised 3.2 billion euros from our clients in 2022, above guidance of 3 billion for the year. We had a limited range of funds on the road in 2022, but those for which we were fundraising did well. First, in buyout. Our small mid-buyout fund closed at more than €1 billion, quite a success. In addition, still in buyout, ICAF is a fund dedicated to help our portfolio companies to expand revenues and profit in China. ICAF raised an additional €200 million and is continuing to raise now. Second. we continued to enjoy a solid momentum in our early-stage funds in biotech, digital and smart city. Third, we raised around 1 billion euros in private debt, proving again its attractive risk-reward profile for our investors. Finally, we launched a first-time fund, a promising sustainable infrastructure fund, which had a first closing at more than 200 million euros and which is continuing to fundraise. As part of our fundraising efforts, the wealth management segment continued to be very strong. serving as a key differentiating factor for Eurazeo. In 2022, we raised more than 800 million euros from private clients, and this is a 50-5-0 percent increase year-on-year. One of our funds is a combination of private debt and secondary. This fund exceeded 1 billion euros in asset under management. We also experienced very good success in the growth segment with a fund, Eurazeo Entrepreneur Club, which has raised more than 400 million euros. Private client solutions now represent 14% of the entire third-party asset under management of Eurazeo, and we see this. as a major source of new growth in the years to come. Market penetration is still today generally low and Eurazeo has strong competitive advantages. With more than 20 years of experience in this field and with an extended network of distribution partners, which include banks, insurers, life insurance companies, and IFAs. So to support our growth, we continue to invest in new resources and we are launching new innovative products. We are targeting more and more international distributors And we are digitalizing our client service to support additional volume. As an example, Eurazeo just signed an agreement with Moonfair to distribute Eurazeo's fund to a broader international audience. Let me turn to our pipeline of fundraising for 2023. We have a solid and diversified collection of new funds coming up, both on the institutional side as well as on the wealth segment. So let's talk first about institutional LPs. Eurazeo is on the road with four flagship funds in gross equity, secondary, mid-large buyout, and direct lending. In addition, we also have smaller thematic funds in our range, in early stage, in asset base, and in sustainable infrastructure notably. So this comprehensive range of funds will help us to continue to internationalize Eurazeo's LP base. Second, on the wealth segment, I mentioned earlier that Eurazeo has a large range of dedicated funds. As an example, I mentioned our Evergreen Fund, a mix of private debt and secondary transactions. It is called EPVE3. This is continuing to collect strongly in 2023. But we are also launching several new funds in growth, in buyout, and secondaries. Let's talk about asset rotation. In a more uncertain macro environment in 2022, Eurazeo had a good year in realization, which averaged a total amount of 2.9 billion euros. This is the best testament of the quality of Eurasio's asset, illustrating that with the right positioning in the right sectors, we can deliver regular exit. In equity, the average growth cash-on-cash multiple on the realized asset has been 2.9 times, and this means an IRR of 24%. In private debt, Eurazeo is positioned on the very attractive mid-market, mid-cap unit range market. And Eurazeo also experienced a good year with realization of 700 million euros and an average IRR of 10% on realization of private debt investments. Eurazeo continued to deploy capital at a healthy pace, investing 4.9 billion euros in all, and this has been achieved while remaining very selective in the investments. In private equity and real assets, Eurazeo's strategy is to invest in category leaders and we continue to favour sectors with structural tailwinds like tech-enabled business services, healthcare, financial services and energy transitions. Demand for direct lending remains very high in the segment covered by Eurazeo as we are gaining market share over banks particularly. Eurazeo has deployed 1.9 billion euros in 2022 and was able to pass or to maintain additional spreads on top of higher floating rates. And this has been achieved while containing the cost of risk, in fact, Eurazeo default rate remains close to zero. I will now hand over to William, who will present our financial results.