Eurazeo Paris Ord

Good morning. Thank you for joining this call. Christophe and I are pleased to welcome you to our 2025 full year results presentation. Our presentation will be in three parts. First, I will share with you key financial and non-financial highlights for 2025. Second, Christophe will focus on fundraising, client franchise development and asset rotation. Third and last, I will detail our financial results. We will then be available to take your questions. 2025 was another year of growth for Eurazeo. We continued to execute well on our strategic roadmap, in spite of a still complex environment. First, we delivered strong growth in asset management. We continued to gain market share, which reflects the relevance of our positioning and the strengths of our distribution capabilities. Fundraising reached 5.5 billion euros in 2025, up 28% compared to last year. AUM from third parties rose by a strong 15% year on year. We expanded our client franchise, adding 44 new institutional clients, whilst our AUM in wealth increased by 16%. Third-party management fees grew by 10% in the private market segment. And profitability continues to improve. FRA margin reached 36%, up 40 basis points year on year. And PREs are starting to deliver. PREs from third parties tripled to 11 million euros. Second, balance sheet realizations were up 44% at 1.5 billion euros. We reached a rotation rate of 20% that we had announced, which is much better than the market. Thanks to the dynamic pace of realizations, we were able to return to our shareholders an additional 600 million euros of capital whilst debt averaging. Third, We kept a prudent approach on valuations in an environment that was and still is overall volatile. As per our guidance, portfolio value was slightly down at minus 1.6% excluding foreign exchange impact in 2025. Trend has improved in the second half of the year and our portfolio companies continue to show positive momentum with a 12% EBITDA growth in buyout as a case in point in 2025. This is positive entering into 2026. We are now two years into the execution of our four-year plan and this is time for us to take stock of where we stand. We are tracking ahead of plan on expanding and scaling our client franchise with a growing number of institutional clients and a rising share of international LPs and also continued expansion in wealth solutions. We are among the winning private market platforms in Europe. We are on track on earnings growth. FRI margin is above 35% and continues to grow. PRIs are starting to contribute more meaningfully, and the asset management cash profile is on plan thanks to double-digit third-party fee growth and reduced reliance on the balance sheet. We are also on track in implementing the shift towards an asset-lighter model and enhancing shareholder return. We have outperformed the market on realizations, and we have already distributed around 1 billion euros of capital back to our shareholders. Portfolio value creation was disappointing in 2024 and 2025. We had to mark down legacy assets, we reflected the downward multiples in some sectors, and we faced unfavorable Forex headwinds. We saw a marked improvement in the second half of 2025 and expect that trend to continue going forward as the operational performance of our portfolio companies remains healthy. We also continue to reinforce our leadership in sustainability and impact. Assets dedicated to environment and healthcare solutions reached 6.1 billion euros in 2025, representing around 16% of total AOM. Our impact strategies contributed about 460 million euros of 2025 inflows, i.e. roughly 9% of total fundraising, with EPBF securing 360 million towards 750 million targets and SME2, in debt, completing a first closing at 175 million euros. On fireman alignment, 28% of eligible private equity portfolio companies now have an SBTI-validated target above a 25% objective for end of 2025. 70% of the eligible portfolio is on the SBTI pathway with an ambition of 100% by 2030. These achievements complement strong external assessments. With that overview, I will hand over to Christophe for fundraising and asset rotation.

Thank you, William. Let's now focus on the operational performance of our asset management, starting with fundraising. As William mentioned, 2025 was a record year for fundraising, with third-party inflows of 5.5 billion euros, up again, 28%. This is the third year in a row with a more than 20% increase in fundraising level. And fundraising was well balanced between debt and equity, reflecting the strengths of Eurazeo's diversified product slate. By strategy, private equity raised 2.7 billion euros, up 64%, including EC5 closing at €3 billion above target. EPBF securing more than 40% of its €750 million target as William was mentioning and PME5 already above €650 million fund raise. achieved a first closing for EGF4 at 650 million euros, and venture strategies raised over 100 million euros. Secondaries and mandates collected more than 800 million euros. Private debt raised 2.7 billion euros, up 8%, with, obviously, our flagship, EPD number 7 in direct lending, reaching 3.5 billion euros by the year end 2025. And there is more to come as in 2026, at the beginning of this year, we received a request from LPs to increase the hard cap at 3.9. This breadth across strategies and channels underpin Eurazeo market share gains. Eurazeo is gaining market share, delivering on the promise we made during our capital market day. Taking 2019 as a base, Eurazeo's annual fundraising is up 126% compared to plus 33% increase for the European market. which as you can see has regained some strength recently compared to the global market which is down minus 7%. In absolute terms, we scaled from 2.4 billion euros to 5.5 billion euros over this period, underscoring the strength of Eurazeo platform and the breadth of our client franchise. Now, I would like to take a moment to walk you through the private debt franchise, which, as you already know, is a highly differentiated platform. Let's look at the progression by vintage. It is clear and deliberate. The EPD4 program reached 400 million euros. EPD6 scaled at 3.2 billion euros. And the total program of EPD number 7, including wealth and mandates, could surpass 5 billion euros this year in 2026. These scalings cements our leadership in small to mid-cap direct lending and it accelerates the internationalization of our LP base as it is a good entry point for new investors and supports larger, more global deal flow. The franchise continues to generate an average fee rate above 80 basis points, a premium to more vanilla credit strategies And it reflects the alpha generated by our team in this specific segment of the European mid-market. We continue to expand and internationalize Eurazeo's institutional base. With a net addition, as William was mentioning, of 44 new LPs in 2025, the number of Eurazeo's institutional clients has now reached over 500. Our client base grew by an average of 25% plus 25% per annum since 2022. The share of institutional inflows from outside France rose to 71% in 2025 compared to 37% back in the 2018-2020 years. And this reflects strong contributions from the rest of Europe and the rest of the world, demonstrating Eurazeo's ability to win blue-chip LP mandates across regions. Growing our franchise is not only a testament to the quality of our investment approach and teams, it is also a springboard for future growth. Our experience is that once trust is established, large institutional LPs subscribe to more of our funds over time. As we have mentioned, we continue to expand our wealth solution franchise with 922 million euros raised in 2025. We are now reaching 5.8 billion euros of AUM in this specific wealth solution. The franchise has at a rate of plus 18% per annum, supported by our blockbuster evergreen EPV3. It has now surpassed 3.5 billion euros in AUM and ranks top 3 in Europe. We are broadening our European footprint with traction in the Benelux and new distribution partnerships in Italy, Germany and Switzerland. And we officially launched the Eurazeo Prime Evergreen line at the end of 2025 with EPIC in private credit and EPSO in private equity. We continue to invest in brand recognition and it is paying off. We were among the most recognized fund managers at IPM Wealth 2026 awards with three collective prizes and one individual award. Looking ahead, the 2026 pipeline is solid, well diversified with both flagship funds and more thematic and wealth-oriented offerings. Let me start with funds targeting institutional LPs. In private debt, EPD number 7 continues to be very successful and high in demand. It is going to do a final close soon and it will be reaching its new hard cap. We expect to be launching EPD number 8 in a not too distant future. And we are also on the road with our asset-based vehicle, SME2. In equities, as you can see, we have a strong pipeline with flagship funds. In buyout, PME5 has already a good traction and should be among the highlights of the year. ESF5 in secondaries and EGF4 in growth both accelerate their fundraisings. And finally, in real assets, we are launching the fundraising of our second vintage in infrastructure, ETF number 2, and we will be collecting for ESORE, the ESORE fund in operational real estate. In wealth, inflows in our Evergreen fund, EPVE3, remain dynamic, but it's complemented by the rollout of EPIC and EPSO internationally. Our 2026 fundraising pipeline is underpinned by the strong ongoing performance across strategies, with all recent vintages in particular showing top-notch track records. All Euraseo private debt funds have shown top-quartile track results and very low default rates. Our seventh vintage, EPD7, is obviously benefiting from that. ESF 4 and 5, or latest secondary funds, are delivering gross IRR of 14% each. EGF 4 in gross equity has a good start, I would say a very good start, with plus 10% gross value creation in 2025, with premium investment in deep tech and AI, and the exit of CONIGI, leading to best-in-class DPI of already 30%. PME4 pushed a strong 29% gross IRR and top decile DPI of 40% in real estate. Ezore benefits from the strong track record of the two balance sheet programs in real estate with top quartile performances above 20% IRR and strong DPI. And finally, in infrastructure, Etif One's portfolio, gross IRR, is at 13% supported by strong tailwinds. Deployments. Deployments totaled 5.3 billion euros in 2025 compared to 4.6 billion in 2024. In private equity, we deployed 2.2 billion euros with high quality companies like, for example, MAPAL in Spain, Ecoscan in France, OMAX in Germany, 3P in Belgium and Dexory in the UK. In private debt and secondaries, pacing is fully in line with objectives. At year end, EPD number 7 was invested at 61%, and ESF number 5 in secondary was invested at 53%. In real assets, we invested in Aquardance in Italy, WaterDirect in the UK, TerraLair in Germany. So we enter... 2026 with a dry powder of 6.2 billion euros up 15% year-on-year and 2 billion euros of balance sheet commitment positioning the platform to capture attractive opportunities with a total dry powder of 8.2 billion euros. Now, realization. We continued our good momentum on realisation after a pick-up in 2024 at group level realisation total. 3.1 billion euros in 2025 compared to 3.4 in 2024. Private equity exits reached 1.9 confirming the group's ability to monetise assets on strong terms. In private debt, Realizations were at 1.2 billion euros, slightly ahead of last year, reflecting steady portfolio turnover. As far as 2026 is concerned, we have a good pipeline of potential exits, and we have already closed and announced two deals, Fairmax and Ex Nilo. Let me take some time to highlight the quality of our realization. As you can see, we continued in 2025 to crystallize strong value creation, continuing our track record of 2.1 gross realized MOE since 2012 and consistent uplifts to latest marks. Again, we have a good start for 2026 with the closing of Pharmax and Lexnihilo. Realizations. and distributions are top priorities for LPs and a key factor in the transformation of our business model. It will remain an area of focus for us and our teams in the years to come. Thank you for your attention and William, over to you for the financial results. Thank you Christophe.

I will now take you through the financial results for 2025. Let me start with the asset management activity. As said, we delivered double-digit growth in both third-party AUM and fee-paying AUM. At the end of 2025, total AUM were 39 billion euros, up 8% over one year, with third-party AUM standing at 30 billion, an increase of 15%. Fee-paying AUM reached 28 billion euros, up 8%, driven by third-party fee-paying AUM, which were up 12%. While balance sheet fee-paying AUM declined 2% as we continue to reduce the weight of our balance sheet. Of note, let me stress that our fee-paying AUM ratio to total AUM continues to stand high at around 72%. Management fees came in at 435 million euros in 2025, up 3% year-on-year. Third-party management fees totaled 322 million, up 7.5% at constant currency. Private markets fees, core of our business, increased by 10% to 237 million euros, supported by strong fundraising momentum, as said, and higher third-party fee-paying AUM, with the average fee rate holding firm at around 120 basis points, which compares well with the rest of the industry. I am global partners. came in at 85 million euros of management fees, down 2%, mainly affected by a forex headwind, a dollar exchange rate headwind of minus 4%, while AUM and revenues in US dollar grew by 2%. And balance sheet related management fees were 113 million euros, down 5%, This reflects completed disposals and lower balance sheet commitments in the funds, which is fully consistent with the asset lighter strategy announced at the end of 2023. Fee-related earnings increased to €356 million, with the FRI margin up 40 basis points year-on-year to approximately 36%. we already reached our mid-term target range of 35% to 40%. The uplift reflects healthy third-party fee growth, as said, combined with tight cost control. Costs were only up 3% in 2025. EBITDA from the asset management activity, this is the first time we give you the EBITDA now, and we will do that in the next quarters and years. EBITDA from the asset management activity was €206 million, up 12%. This is consistent with a 44% margin, more than two points gained year on year. Realized performance fees reached €33 million, doubling versus last year, with a portion coming from third parties tripling to €11 million. Several funds are approaching distribution thresholds that will allow for more meaningful recognition of performance fees over a mid-term investment cycle. As we committed, the EPRE should progressively represent around 10% of third-party revenue. We continue to grow the base of our third-party management fees as well as performance fees. Thus, our asset management business has turned into a positive and growing cash flow contributor for the group. Let me turn to the results of the investment company. At the end of 2025, net portfolio value amounted to 6.8 billion euros with the following drivers. Organic value change was a slight decline of minus 1.6% as per our guidance. The good momentum in earnings in our portfolio was compensated by multiple compression in some segments, which for a large part we had anticipated, and still unfavorable cap rates in real estate. Forex accounted for 2.5%, minus 2.5%. And perimeter effect accounted to minus 9%, in line with the expected downsizing of our balance sheet that we had announced. As you can see, value creation in the second half of the year improved quite significantly relative to the first half. As the operational metrics of the underlying portfolio continue to be healthy, we now expect to post positive value creation going forward. This assumes, obviously, some stabilization of current high market volatility. Portfolio value per share stood at 102.1 euros at the end of 2025. This is down 5%, in spite of a perimeter effect of minus 9% and value creation of minus 4%. The accretion from buybacks, hence, meaningfully enhances per share value, which is consistent with our capital allocation priorities. As said, our portfolio companies delivered a solid performance in 2025, another year, I should say, of solid performance, with a pretty strong Q4 overall. Buyout companies delivered robust progress, with revenues up 7% and EBITDA up 12%, supported by a clear acceleration in the second half. In growth and venture, fundamentals remained sound. Average revenue growth was 14%. The most recent EGF4 investments are scaling fast and even faster, at around 40% growth in average. In real estate, hospitality revenues were up 3%, and infrastructure continued to perform strongly with a 30% year-on-year revenue growth. The investment activity was logically, the contribution was logically mainly driven by non-cash elements and amounted to minus 550%. 552 million euros in 2025 with 351 million pertaining to fair value change and 113 million of management fees from the asset management activities. This is an interco flow. Strategic management costs and financial expenses were both roughly stable and fairly low. Consolidated net income group share was minus 403 million euros. Asset management contributed plus 161 million euros, while investment activity, as just said, contributed minus 552 million euros, mainly non-cash. Let's move now on to the balance sheet realizations. Balance sheet divestments totaled 1.5 billion euros in 2025. This is up 44% over one year. And this represented about 20% of the 2024 year-end portfolio value, completely in line with our guidance. We are entering 2026 with a diversified pipeline of exits and aim to maintain our good pace of rotation. Let me remind, together with Christophe, that over the first two years of the plan, we have exited 2.6 billion of balance sheets, representing around 31% of the 2023 year-end NAV. These exits have generated an average gross cash-on-cash multiple of 2.1x, an average gross IRR of about 21%, and an average uplift on the latest mark of about 14%. This highlights, in our view, the quality of our portfolio, the overall conservativeness of the way we are marking our assets and our ability to monetize them. This bodes well for the future development. Return to shareholders, which is obviously number one priority in capital allocation, as you know. In 2025, we return 189 million euros in dividends, with the dividend per share up 10%. We will propose an ordinary dividend of 2.92 euros per share, a further 10% increase versus last year, with an expected cash-out of around 200 million in 2026. A loyalty premium of 10% will be paid to registered shareholders holding their shares for more than two years within the 0.5% legal ownership threshold. Over 24-26, i.e. 3 years, cumulative dividends will have reached 600 million euros. Our share buyback program remains active. Since launch, we have executed about 600 million of buybacks over 24-25, or about 12% of the share count. In 2026, we plan to buy back 4% additionally to this 12% for about 200 million euros, which will bring the community buyback over 2024-2026 to about 800 million euros. Very importantly, through 2027, our objective remains to purchase around 25% of total shares, i.e. approximately 45% of the free float. The sequencing of execution in 26-27 is driven by our ability to maximize regulatory volumes each year, whilst remaining continuously active in the market. To conclude, as we have now executed two years of our strategic plan, let us recall the three pillars of our equity story. First, We are building a leader in an attractive private markets industry. Second, we deliver steady earnings growth through revenue expansion and disciplined cost management. And third, we return significant capital to shareholders, accelerating our shifts towards an asset-lighter business model. Thank you for your attention. We can now open the Q&A session.