Eurazeo Paris Ord

and welcome to the Eurasia Financial Information Q1 2023 results presentation. Please note this call is being recorded and for the duration of the call, your lines will be in listen only. However, you will have the opportunity to ask questions. Please press star one on your telephone keypad to ask a question over the telephone. If you require assistance at any point, please press star zero and you'll be connected to an operator. I will now hand you over to William Caddo-Chazat, co-CEO. Please go ahead.

Thank you very much. Welcome to you all. Thank you for joining this call. I will now walk you through the performance and developments recorded in the quarter using a few slides that have been sent to you and posted on our website, and then we can kick off with questions. Let me start with slide one. and the AUM. In Q1, we continued to enjoy a steady increase in our assets and the management. AUM, as you can see, are up 10% year on year. Net new money was 2.7 billion over the year, representing 84% of the growth, with a balance coming from value creation. Fee-paying AUM are up 26% year-on-year and now stand at 25 billion euros. As a reminder, we do not revaluate portfolio assets in the NAV during quarters. Following the recent change in reporting we announced in March, AUM excludes the value of asset management activity and includes the commitment from our balance sheet. You will find all the details in our press release in the appendices. Turning to fundraising, which is the next slide. We raised 866 million euros from third parties in the first quarter of 2023. Excluding the fundraising of Rhone, pertaining to Rhone Capital in Q1 2022, this is equivalent to a 42% increase year on year. Let me stress that quasi 100% of this 866 million are fee-paying AUM. Private debt continues to enjoy a strong momentum with over 500 million euros raised in the quarter. As you know, the risk-reward profile of our direct lending fund is attractive to our LPEs and we are launching a new program on asset-based financing which collects wealth. Our sustainable infrastructure fund continues to prove successful with a self-closing at 420 million and has now reached 80% of its target. Fundraising is private equity amounted for the quarter to 209 million focused on venture and secondary. Wealth management continues to be a strong contributor to fundraising with 185 million raised in the quarter which represent 21% of the total amount raised in the quarter. As we indicated during our annual results presentation, we will be collecting institutional money for our three main funds during the next quarters of 2023, i.e. secondaries, growth, and mid-large buyout. And we will continue to ramp up our new products and partnerships in wealth. Turning to revenues of the asset management activity. As you can see, our recurring revenues continue to grow at a strong pace in the asset management. Management fees are up 28% over the period, with management fees from third parties going at around 20%, more precisely 19%. Performance fees in the quarter are negligible given the limited realizations. Precisely turning on to asset rotation. We continue to be very selective on investments in complex and uncertain contexts. Our deployments amounted to 900 million euros in Q1 compared to 1.7 billion in the same period of last year. Private funds have been the main contributor to deployment as a team finds attractive opportunities in secondaries. Let me stress that the lower amount of deployment is totally related to our own policy of being selective and prudent. On the contrary, we enjoy strong headrooms and firepower to grab opportunities in the future, with dry powder up at 7.3 billion from our LPs and an additional 2.4 billion of commitments from the balance sheet. Realizations were limited in the quarter and roughly in line with last year at around 300 million euros. We finalized the exit of Vita Protech, as you know, which was announced last year. This is an amount of 68 million for a multiple of 3.2 times cash on cash growth. Let me now turn to the performance of portfolio companies with a little caveat, technical caveat to begin with. As you know, we no longer consolidate portfolio companies from 2023. This is due to the IFRS 10 exemption of consolidation that we applied from the 1st January 2023. However, as we indicated during our full-year resource conference call, we consider it is appropriate to give you indications on revenues and EBITDA on a half-year basis of portfolios as the balance sheet remains invested in the portfolio. As you can see on the page, we have a very satisfactory performance of the portfolio companies across the board. Starting with mid-large buyout, which is the largest component, revenues were up 24% in Q1, which is a very broad-based growth pattern across the portfolio. And despite a high basis comparison in Q1 2022, let me remind you that revenues were up 55% already. This reflects, obviously, the quality of our choices of companies and sectors. And if not, as you would expect, the travel industry continues to rebound. In small buyouts, revenues were up 8%. Growth is strong in business services. with companies exposed to consumer categories have roughly stable revenues. As regards brands, which is our consumer growth unit, revenues were up 13%, again, broad-based across the portfolio. Growth companies, mainly attaining to tech, revenues were up 21% in Q1. On high comparables, Revenues were up 50% in Q1 2022, as a reminder. B2B and companies focused on circular economies, such as Back Market or Vestiaire Collective, as case in point, performed very well, with consumer marketplace experience slowed down. Across the portfolio, it is important to note that our companies in the tech space are focused on cost control and profitability, which may have a short-term impact on growth. To finish with the portfolio, let me turn to real assets. Revenues are up a strong 38% in real estate, reflecting notably the strength of the hospitality segments. In infrastructure, on the low base, revenues are up 18%. So as you can see overall, we have a strong quarter across the board, despite the challenging environment. I will now turn to you for possible questions.

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