Eurazeo Paris Ord

Welcome to the Eurazeo 2026 Half-Year Results Presentation. Today's conference will be hosted by William Caduce Chassong, co-CEO, and Christoph Bavier, co-CEO. For the first part of the conference, the participants will be on listen-only mode. During the questions and answers session, you may ask in two ways, by submitting a written question in the box below the player, or by joining the conference call and dial pound key 5 on your telephone keypad to enter the queue. Now I will hand the conference over to the speaker. Please go ahead. Thank you very much.

Good morning. Thank you for joining this call. Christophe and I are pleased to welcome you to our 2026 half-year results presentation. Our presentation will be in three parts. First, I will share with you the financial highlights for H1. Second, Christophe will focus on fundraising, commercial dynamic, and asset probation. the last I will detail over five for results will then be available to take questions we publish a good set of results for the first year for the first half of 2026 showing further progress in the execution of our strategic plan let me share the key highlights for h1 first asset management past another semester of solid growth fundraising stands at 2.1 euros with some notable closings in P and debt confirming the attractiveness of our franchises to clients we continue to demonstrate our ability to scale our flagship strategies Christophe will come back to this in a moment and as a result we continue to grow our earnings with management fees from third parties up a VDA growth of 20% and strong growth in operating cash flows as we grow our third-party fees and performance fees start to materialize more meaningfully. Second, our balance sheet return has announced positive value creation in H1 with a growth of plus 2.3% per share. Realizations continue to be on plan with a good pipeline of exits expected for the rest of 2026, allowing us to reshape the business model as per our strategic plan. Third and last, we are on track to deliver the announced 2.3 billion in shareholder return by the end of 2027. We have already returned 1.3 billion euros since the beginning of 2024. In 2026, We have already distributed a dividend per share including by 10% and executed half of the share buyback program for the year.

Thank you, William. Let's now dig into details. And as you know, the development of an asset management platform starts with good fundraising. Eurazeo raised 2.3 billion euros from clients in H1 2026. Ahead, of last year's already strong performance. This is particularly encouraging given a challenging environment for fundraising. No doubt, this success highlights the quality of Eurazeo's franchises as well as the relevance of Eurazeo's positioning as a European mid-market, growth and impact-focused investment firm. investment firm for this deep and growing investment universe mid-market companies all over Europe we have had several marquee successes in each one with in particular the final close of EPD 7 in direct lending the final close of ESF 5 in secondaries the first close of PME 5 in buyout and successes also in thematic funds such as Kurma Bio Fund No. 4 and ESMI 2. And Wealth Solutions channel continues to deliver despite a more competitive and challenging market background. One of the keys to Eurazeo's success in the development of its asset management platform is its ability to scale existing flagship franchises. Let me guide you through a clear example of how this works. Look at direct lending. The size of our more recent program, EPD number 7, increased by 70%. 70% at 5.5 billion euros. driven by its leadership position and strong performance of the strategy, focused on the lower mid-market. Look at secondary. Our fifth programme, more than doubled at 2.3 billion euros, will grow both on the institutional flagship fund and in wealth and mandate solutions. Note that for these two programmes, demand has exceeded the hard cap which is quite unique in current market conditions for fundraising. Look at the lower mid-market buyout segment. Eurazo is currently raising its fifth vintage PME5 and we have good traction among investors thanks to the strong performance of the previous vintages. The first closing of this fifth vintage has already exceeded the final closing of the fourth vintage with, I would say, plenty of room to grow further. In our strategic roadmap, William and I outline our ambition to further expand our client franchise through the internationalization of the LTE base. And in recent years, we have extended our coverage in Europe, in the Middle East, and in Asia. And the results are there. Around 70% of our inflows are now coming from outside of France. And a growing share of this fundraising is coming from outside of Europe with repeated successes all around Asia as we are signing new clients in China, in Korea, and in Japan. Our wealth solution franchises also continues to grow at a steady pace with now 6 billion euros of AUM, a 17% CAGR for the past five years. Yes, our flagship evergreen fund, ETV3, surpassed the 3.7 billion euros in EUM thanks to the positive inflows but in parallel we are actively working with our partners to distribute our new international evergreen funds all over Europe for the rest of the year for the rest of the year Eurazeo will pursue its fundraising on the back of a solid and diversified pipeline both on the institutional side as well as on the wealth As you can see, our funds are at different stages in their fundraising. We continue to raise on our flagship, Eurazeo Gross No. 4 and PMI SAI, and we have many thematic funds on the road, like ETDF, SME2, Future Industries 3, Ezore, and Etif No. 3. let me now turn to deployments and realisation. Eurazeo deployments amounted to 1.9 billion euros in each one, down 17% for the same period of last year, with transactions reflecting an expanding pan-European investment approach. Main deals include in Denmark, CBF, Eurazeo through the EPBF team acquired T1A a leading electronic recital firm in Germany Eurazeo through PME5 bought Nexron a leading cyber security software firm and in France through Capital Eurazeo invested in Netco a conveyor belt maintenance business and in the infrastructure we finance low value active in Demontable structures Urazou is well placed to continue to grasp opportunities with 8.3 billion euros of firepower out of which 6.6 billion euros of third-party money. Realizations Realizations stood at 700 million euros. Eurazeo has had several exits, notably with Thermax and Ex Nilo in buyout. Memo Therapeutic in biotech. We maintain Rendezco Legal Place in venture and several exits in secondary. Regarding H2 2026, we are looking at a solid pipeline of exit across strategies. I now hand over to William who will get you through our results.

Thank you Christophe. I will now take you through the final results for H1 indeed. Let me start with the asset management activity. Overall, as you can see on the charts, AUM growth and fee-paying AUM growth illustrate the dynamism of our asset management business. Total assets under management were up 9% in H1 relative to the year past, surpassing 40 billion euros, with third-party AUM up a strong 13%, which is a bull market. Fee-paying AUM were up 6% at 29.4 billion euros, with third-party fee-paying AUM growing also a strong 13%. Management fees stood at 213 million euros in H1, up 6% from previous year on a comparable basis. Third-party management fees were up 14%, with a strong performance of private markets, up 18%, and a better performance of IM global partners, at plus 2% like for like. The growth of IMG was driven by positive net inflows, particularly in active ETFs. balance sheet management fees were down 14% as we voluntarily limit our new commitments in our funds and execute our exit plan. Of note, our private market fee rate remained stable at 120 BD. With a steady growth of our third-party assets and fees and the managed downsizing of our balance sheet, we are well on track to reduce the weight of our balance sheet in the funds below 20% faster than initially planned. You may remember we had announced that target back in November 23 in our capital market day. At the end of 2023, our balance sheet represented 31% of our total AUM. AUM from the balance sheet now represents only 22% of total AUM. Likewise, Management fees from the balance sheet represented around 31% end of 2023 and are now down to 23% in H1 2026. Logically, the combination of gross and sole party management fees, strict cost discipline, and a more meaningful contribution of performance fees leads to a jump in the cash flow of our asset management business. This is how the model works. As you can see, peer-related earnings are up 11% in H1, with further margin improvement. EBITDA is up 20%, reaching 100 million. Finally, operating pre-cash flow from the asset management activity reached 54 million, up 75% from a year before. So in a nutshell, the contribution of the asset management activity, excluding financial costs and other income, is up plus 38% in H1 on the light-for-light basis. As mentioned, we continue to be very disciplined on costs with effects of 3% only year-on-year. Financing costs at IMGP are down significantly, especially in H1-25, as H1-25 figures were impacted by negative forex impacts. This also reflects the reduction of the indebtedness at IMG level. Let me now turn to the investment company. As announced, we returned to a slight positive value creation in H1 2026 at 0.3% organically or plus 20 million. In buyout, we posted plus 0.2% in value creation. We continue to have positive earnings momentum in our portfolio companies. We, however, remain disciplined on multiples given the context in some sectors, notably in SaaS and business services. Growth equities fostered a positive value creation of 1% driven by further progress in our new vintage EGA4. In real assets, we enjoy a good momentum in infrastructure and in operational real estate. We adjusted down some specific valuations in direct real estate to reflect multiples and cap rate. On a per share basis, our portfolio is up 3.3% to 105.4 euros per share in H1. Our share buyback program thus added plus 2% on the portfolio value in H1. So let me come back to the fundamentals behind this performance. Asset overall H1 2026 was another illustration of the quality of the underlying assets in spite of a mixed macro environment with some head reach in Q2 from the iron wall. First in buyout which represent 57% of the total value of the portfolio. You can see revenues and EBITDA were respectively 4% and 7%. Going into details, April and May were slower, arguably, but we have been seeing green shots in June and July. Second companies in our growth portfolio, which represent 22% of the portfolio value, hosted an aggregated revenue growth of 22% with our largest companies outperforming. The EGF4 portfolio continues to perform strongly above plus 50% revenue growth. Third, in our real assets portfolio, which accounts for 14% of Eurazeo portfolio value. EBD in the hospitality business was up 6%, while infrastructure continues to perform very well. You will find in the appendices of the presentation, and we will do that regularly, further details on the balance sheet performance and components, and in line with our deep dive of April 29th. Turning now to the investment company P&L. As mentioned, we returned to positive value creation in H1 on the portfolio at plus 20 million. IMG had a positive impact on the fair value of its partner, in particular with the sale of its stakes in RBA. Combined with lower internal fees, cost discipline, and lower financial expenses, the IC contribution improved by nearly 300 million compared to H1 2025. to reach minus 69 million. Turning now to the group P&L, with a stronger contribution from asset management activity and an improvement in the investment activity, net present group share improved by 300 million to be close to zero. Let us finish with portfolio rotation and capital distribution. We announced and realized around 300 million in exits but then it is a balance sheet QH 1 2026 corresponding to 4.3 percent of last year a Navy we have a good pipeline of exits for h2 as said by Christophe with some providing processes already in the way this will put us on the path towards our historical average in realization during h1 we continue to prove our ability to to sell assets with an uplift above NAV. We realized the exit of two buyout companies early in H1 at more than 2.5 times cash on cash each and together with an uplift of 150% on our last mark. We sold the portfolio of Spanish hotels at NAV and our Carmel franchise, our biotech franchise, sold the company with 150% percent minimum uplift with further upside depending on the achievements of certain milestones. Let me stress again that for us, this is the best proof point to assess the quality of our portfolio valuation approach and processes. As I mentioned at the beginning of the presentation, we continue to deliver on our capital return promise. Since our capital market day, we distributed 1.3 billion to 6-7 million in ordinary dividends and 700 in share buyback. We already acquired 14% of our own shares through H1 2026. Looking ahead, we plan to continue to increase our ordinary dividend and to buy another 11% of our own shares by the end of 2027, maximizing our legal limits. Depending on the price at which we will do the share buybacks, we will consider adding extraordinary dividends to complement our distribution to shareholders to reach our targets. So in a nutshell, we had a strong set of results in H126. We continue to grow fast our asset management and to transform our business model. Our budget is back to positive value creation and we continue to deliver on shareholder return. We believe this momentum should drive the rewriting of our stock. And as a reminder, let me just come back to how, with Christophe and team, we see Euradio's fundamental value drivers. We are first a fast-growing asset manager, profitable and cash-generative. Based on undemanding multiples, it should be worth up to 40 euros per share. We have a balance sheet portfolio net of carry, tax and debt that is worth 105 euros per share rounded. And we have a net debt that should be deducted of 21 euros per share. and some calculations with the total value between 115 and 125 giving significant upside for the current share price that is for you to judge thank you for your attention we can now open to the Q&A session ladies and gentlemen if you wish to ask a question you may ask in two ways by submitting a written question in the box below the player or by joining the conference call and dial

pound key 5 on your telephone keypad to enter the queue. The next question comes from Nicholas Veselier from BNP Paribas. Please go ahead.

Hi, good morning, gentlemen. Thank you for taking my question. The first one I want to check the extraordinary dividend potential. On my tracking, assuming today's share price you would be at about 1.1 billion of share buyback in 2024. At the end of 27, the CMD highlighted the target at 1.5. Do you say that the extraordinary dividend could be as high as 400 million to make for a gap? Then secondly, exit activity has been in each one on the balance sheet side. You expect an acceleration in H2. I wanted to know if you view the current pipeline as enough to deliver the roughly 20% as a disposal pace that you're trying to aim at here. And thirdly, you also flag a potential for improving investment returns in H2 however I've noticed that the growth figures you're quoting in the press release when it comes to EBITDA growth and revenue growth in buyouts seem to be slowing a bit versus prior reporting periods so what makes you confident that returns can accelerate is it is it that you expect market I mean the multiples to start increasing reflecting from markets you're seeing right now or do you think the macro environment improves from here thank you thank you Nicolas I'll take these three questions first on the distribution what we say here is that we have

committed to the portion on the dividend, ordinary dividend. I think we have a track record of increasing it by 10% of above in the past years. I won't commit, of course, for next year, but this is a board and general assembly decision, but expect that we will continue to strive growing the dividend per share. Then, we are committed to to execute the 25% de-equitization of the company through the share buyback and the cancellation of shares. We've already completed a significant portion of it. When you look at the math, clearly there is a factor which needs to be taken into consideration, which is the average price at which we buy shares. What we are saying here, effectively, I think your understanding is correct, is that conceptually, we will compensate the shortfall in euro amount for the share buyback with other means, i.e. dividends. Exit activity, and I hope it's clear, it's not, please reiterate your question, but again, 2.3. and 25% de-equitization are the key commitments we take. Exit activity. I think it's very much as we have said. Arguably, the environment is not good.

And I think everyone would tell you that.

We've been able to sell what we had in mind to sell in H1. And we've launched a number of processes for H2. so yes we are confident that we will continue to execute on our exit plan and converge towards the historical average I mean I think we have now established a traffic code of being able to rotate assets faster than market which translates into DPI by the way in the funds which are almost in every category in the cartel one range so we see how it goes but you know we have a rather good pipeline for second half investment return on the investment company let me be a bit more specific I don't think we've said we see an increase in H2 we said from 2026 onwards we see a gradual improvement in value creation after the adjustment we had to do in the past two years, partly because some companies we had to write down, partly because we had to factor in the new elements in the market, the AI impact on fast multiples and some companies more impacted by some macro events. Now we said, you know, we have a strong portfolio that companies continue to perform reasonably well so we're going into a gradual improvement rather than a marked improvement and this is how you see that so we are resuming with value creation in other words and we see the pattern as being more or less dynamic depending upon the multiple environment fundamentally on the buyout companies performance there is a very good element into it which is that it is very growth based companies across the board including by the way in SAS do perform well there are a few companies which had more difficulties and now have been marked down quite significantly so this should be an issue for the future so that's how you can see then you can learn it in other words I'm going to say that we're not betting on multiples we continue to mark up assets primary which I should say even so early on the earnings course thank you very much the next question comes from Oliver Carruthers from Goldman Sachs please go ahead

Hi there, good morning both thanks a lot for the presentation. I just have one follow-up question from your final point. Did I just hear you correctly on this returning to positive value creation? I don't want to put words in your mouth but it sounds like on the buyout side this is a broad-based I guess flat to up dynamic in the first half so you know it's not being driven by a couple of big assets say it's broad-based and it just sounds like the language you're using is that we're kind of at the end of this some of your multiple dozen periods which would be a bit of an inflection point but sort of check I understood that correctly and then sorry the second question just on the acceleration in realizations that you were in terms of strong pipeline for the second half could you just comment on the types of exit processes that we should be looking out for just to

I'm thank you her in the U.S. on the pipeline which is sure you're going to be a short answer for the but the but on the air recreation let us be very cautious there yes I'm I think we we take the world of inflation point because there were a few companies we have a Remember the 29th of April presentation where together with the team we really showed where we had made some adjustments and there were a few companies that I know have been put to zero. That was the bulk of the adjustments. By the way, some of these companies can recover value a bit in the future because some of them have better trends. but that's not taken into account as of yet and then we said we also have taken into consideration some multiple compression in some areas mainly software and then we had said at the time by the way that we have not started adjusting these multiples just beginning of 26 but there was a story already starting in 25 for us looking forward the reason why I'm cautious is because we live in a very uncertain environment you can see that we have an improvement as I said in the pattern of growth both revenues and EBITDA in buyouts in June and July after reasonably slower Q2 because of what you know We'll see how it goes for the rest of the year. So, inflation point, yes, but there's going to be a gradual improvement in 26, even what I've just said. But the good thing is we are able to sell always with an uplift to the last now, NAV, and we continue to have a road-based descent to good performance on the underlying metric.

On realization, yes, you are right to point out that the 700 million euros is a six-month picture. It doesn't reflect our goal for the 12 months of 2026. As we said previously, we are aiming for our historical yearly realization over the course of the plan. And we have no bad news on this because we have a quite healthy pipeline of exit candidates, and several monetization processes are being initiated. We are using the full range of what can be used. We are obviously working on some plain Vanilla exit, but we also use Dividend Recap, and you can use, in some cases, continuation vehicles or tools like that to reach the 2026 target. But as you know, we cannot comment on any specific transaction. But again, we continue to aim for historical average level and we will reach 15 to 20% of our previous year's NAV rotation.

Got it. Very helpful. Thank you both.

The next question comes from our Nopalis.

from CIC CIB please go ahead yes good morning I have two questions the first one is on real assets that are a bit lagging behind in term of fundraising value creation so I would like to know what is for you the outlook for these real assets but the first question and the second one is a more general question. Following rising inflation and interest rates, do you see any change in the outlook for your investment policy? So that's the two questions.

You know, on real estate, we answer together. We're starting with the value creation. As you can see, the underlying metrics, we didn't give the number because it is on a small base so it's double digit on infra increase in revenues and hospitality which is a bulk of what we have in real estate I mean has a growth of plus 6% as you can see so I'd say the value drivers are pretty good but we are in a real estate market that remains difficult overall. It's improving. Let's say, it's stabilizing. So it's not the time where you really take on more value on assets. And we have adjusted a few non-operational assets in the portfolio. I mean, we just translated to this right value description in the assets in the first half. So overall, I mean, the trend is clearly the operational trend is pretty improving. On your comment on fundraising, maybe, Christophe?

Yes, yes. Well, as you know, on fundraising, it's based on we need the fund to raise, and there have been funds that were opened, and we've got 80F1, which is dedicated to infrastructure, is now almost fully invested, and yes, we are preparing the next vintage. I remind you that 80F1 was targeting 500 million euros, and we've reached 750, which is quite a good result for something that was a first-time fund. It was not a first-time investing team, but it was, for Euraso, the first-time fund in infrastructure. So we have, during the phase of this fundraising, we have contacted a large number of APs that were a little bit cautious on a first-time team, and we will benefit from the fundraising of this second vintage from this work that has been completed when was it three years ago four and three years ago and we already have a solid robust pipeline of not only re-upping investors but also investors that have seen the proof of concept of Sun One I remind you that we have in infrastructure quite a differentiated approach what we do is energy transition infrastructure it fits with the DNA of Eurazeo which is to be a mid-market player so it's probably north of 750 million euros for the second vintage we will still be a mid-market player in infrastructure so this is the core of what we do but again what we perceive is that this mid-market investment universe all over Europe is deepening and we see a lot of appetite for very differentiated world.

Now, on your point on the investment strategy, as we have highlighted many times with Christophe ever since the Capital Market Day, we do consider that our investment approach, the type of focus we have regionally, size of companies and sectors, the value creation playbook, which is a transformational valuation pre-playbook ending at increasing earnings as opposed to optimizing financial structures then that's well suited to exactly the world you described world where the investment rates the interest rates are sustainably higher for longer and so as you can we continue to to prove to give you data points but fundamentally take the view that we're at least two-thirds of the value creation of the companies we invest into across the board stem from earnings. More rarely from deleveraging, sometimes from increasing multiples, because at the outset, given that they are small companies, you tend to have a calibration and you have discounts to set the reference multiples. And so that's, we think, the right approach. The mean market, Europe, transformational, and focus on five sectors, which are financial services, healthcare, business services, tech, environmental solutions, which are driven by structural shift in the global economies and societies. I mean, that's the way we address, from an investment case standpoint, the approach to that environment. You see, because we've put that back in the appendices, the type of leverage we have when we do a buyout or real estate and you can see that we are pretty conservative on that so there is clearly an increase in the cost of debt in the deals I wouldn't say we are not sensitive we are obviously sensitive to it but to a limited extent even what I've just said ok, thank you

The next question comes from Nicholas Veselier from BNP Paribas. Please go ahead.

I'm sorry for coming back. I just had a very technical question on the extraordinary dividend. In terms of timing, would you wait until the end of 2027, i.e. announcing it in 2028, or is this something we can expect for 2020? for next year?

Mechanically, Nicolas, and don't be sorry to come back. We like when we have questions. Mechanically, we will wait until we know what is the average price at which we would have executed a significant portion of the share buyback program before we decide the calibration of potential I'm it's all good you didn't it would be here to compensate or the the shortfall in Europe's game the commitment is 2.3 on the one hand and 25% equalization on the other so I mean we we have to now when does it happen when do we think we have enough visibility probably not before second half of 27 yeah

Okay, so yes, the payment would probably be 28 then.

I won't comment on that because obviously there are a few things which are not in our hands, but I want to comment. All right. You know, the direction of travel, I hope, is clear.

Okay, thank you very much.

The next question comes from Alexander Gerard from CIC. Please go ahead.

Good morning and thank you for taking my questions. Four quick questions. The first one is related to private equity and to fundraising, which was weaker than last year. Can you help us maybe better understanding that performance? And how does this performance compare to the market as a whole? Second question that's related to the net financial debt of the group. which stands at 1.4 billion euros. At the end of the plan, by the end of 2027, do you expect that net financial debt to be back to zero where it was when you announced the plan in November of 2023? Or can you help us in understanding where you see the debt of the group? The third question is more or less related to the That's a good set of results related to AI. Do you think that AI might help you maybe continue to increase your operating profitability, which has already progressed rather well? And my fourth question is related to M&A. Are you still studying M&A opportunities? The market continues to consolidate. So if we could have an update on that front. Thank you very much.

We start with fundraising, MPE.

Thank you, Alexander, for your question. And yes, just the fact that private equity fundraising was weaker during six months is mainly due to the fact that the product offering for private equity was, during six months, less important than the product offering that was mainly occupied by private tech but in the second half of this year we will have again the tail end of PME number 5 and we are working right now on several potential opportunities to raise money in private equity but it is through co-investment you know that fundraising can be organize through the fundraising of flagships, but you can also use co-investment and continuation vehicles to attract new categories of LPs so that the sovereign funds, the very large, most experienced pension funds in the world, they want to get access not only to good flagships, but also to direct investment opportunities. So this phenomenon was purely technical during the first half of the year. And again, we have completed the first closing. The first closing is always difficult. It takes time to realize. But now that the first closing of PME5 has been completed and quite at a good level, we will accelerate on this.

Net financial debt, I mean, we are operating at a moderate gearing. and that's the intention of the group on the mid to long-term basis. Let me remind you that we got an external rating from two rating agencies now, i.e. Fitch and S&P. It's well into the triple B category. That's based on the cash flow pattern of our asset management improving and it's also based on our sustainably low gearing between 15 and 20 plus depending upon the time in the year so that's what we intend to have we intend to have a modest gearing over time trend wise it goes to zero but it's not necessarily a good policy to have it at zero AI that's a broad topic that obviously all our teams on the investment side but I'd say also as an asset manager our team in the different transversal functions are very focused on I'd say that for the companies we invest into what the major focus is on is more to see if the revenue model is disrupted by AI or if the revenues can benefit from an early adoption of AI, particularly adjunct AI. That is extremely relevant for growth teams, which invest a lot into adjunct AI type of companies, and even are able to rotate them in less than one year, as Cognigy, for example, in growth. But it is true, of course, for all our buyout companies that are more software-oriented, On top, of course, everyone is asking itself, including us, what we can do operationally to be more efficient, and we have identified a few areas. On the magnetic stuff, you know, I guess we're going to do the same answer as usual. I think with Christophe, we've told you many times, we think we can grow this company organically at a pace that is above market. and this is what we do we said we can transform the business model efficiently through that growth and the rotation and combine this distribution to shareholders and that's what we do and we said we are not blind we also see that the market is a market where there is more concentration on fewer players this is the age of platforms we think Christophe has reminded you of it that we can potential place that is natural for Eurazeo, which is being the leading cross-asset platform in European markets. In that context, could M&A help us, wise M&A, to go faster? Potentially, yes. So, on top of what we do every day, we also assess potential opportunities But as you can see, so far we've been mainly focused on the organic cost.

And I would say, you know, in the past, just to complete what William has said, in the past, yes, it is true that Eurazeo has been able to successfully integrate some acquisition. What is Eurazeo TLE today has been in the past also private equity and it has been a successful integration. And part of what we do today, private and secondary, comes from the acquisition of IDInvest. So I think that, yes, we have demonstrated that should an opportunity occur, we will be able not only to acquire it, but also to successfully integrate it. But as William was mentioning, the core of our strategy today is to be attractive. We want to be attractive should we have an opportunity We want to be selected also by these people to be a place where we can accelerate.

Okay, thank you very much.

The next question comes from Julian Debravelchi from ABN MRO. AutoBHF, please go ahead.

Good morning, gentlemen. This is Julian from ABN Auto. I have two questions, please, one on the value creation and the other one on the exits in the in the balance sheet portfolio. To begin with the one on value creation, I think over the last few years, value creation was held back by several legacy assets in valuation, and reset is also flagged today. I'm just wondering, are there still any material assets in the portfolio where you see downside risk to carrying value over the next quarters? and the other one is on the exits. I'm appreciating your comments on the H2 exit outlook. The point is to understand the exit seasonality you expect in 2026. Anthony mentioned in the conference call today that the realized value of the portfolio in H1 was pretty much on plan and you expect realizations to be on plan again in the second half, but also that would imply about 2x acceleration over the H1 level So I was actually wondering why there should be such a seasonality in the exits, and is the slow pace in H1 driven by your decision to wait for better pricing, or, you know, do you see any buyers still pushing back on the valuation expectations that they have? Thanks.

Okay, let's start with value creation. And I hope you won't take it the wrong way, but you just reiterate that any point in time, when we do valuation, we factor in everything we know. There is no case where we would hold on, mark down, marking down, should we know already that the company should be worth less than what we publish it is worth. So just coaching the obvious. But your question is nevertheless very legitimate. Do we see, where do we see the risk? So we are very comfortable with the valuation we have. It doesn't mean that there couldn't be risk, as there are, by the way, opportunities. If I start with the opportunities, what we see, for example, is that the software companies continue to have a very good performance. So we don't see the disruption in the world numbers that everyone talks about. When the market, and we see that, you know, if the market starts to realize that it's been too sanguine, on the valuation of SaaS companies maybe there is an upside here in the multiples let's see by definition we are a bit cautious on the environment because of the iron wall that has created some dysfunctionalities in the macro that we've seen in Q2 trends improving June, July, we see how it goes. So I said the risk and most of macro risk and specific risk on some companies that we would know are in danger of losing value. By definition in the portfolio, you have some standard deviation in the performance, but it's rather macro, but upside and downside. On the exit, I do the same answer as Christophe has just done on the private equity fundraising. We have a number of assets that are disposed of every year pertaining to the balance sheet that is not a big number, right? We're talking about six, seven, sometimes up to eight. you can't say there is a seasonality that you can forecast based on statistical evidence the same for fundraising as Christophe said you may be on the road with two dead flagships and one real asset flagship and no PE but that doesn't mean that you're bad in PE fundraising it's just because you don't have a product on the slate at the time so this is what basically explains the pattern of our exits we knew when we did the comments in the frame of our full year results that the processes that had been launched end of 2025 would yield a certain amount in H1 whilst other processes maybe more numerous processes or bigger processes would be launched rather towards Q2 this year and that's how we we confirm what I've just said but again seasonality doesn't make much sense to us given the relatively small numbers of items we're talking about here I think we have no further questions on the phone we have three more minutes so I will try to take a few questions from the script there are actually two

on the fundraising. One is more about the potential for this year and maybe a beginning of next year after the successful close of ESF-5, BD-7 and the first close of PME-4. Is it reasonable to assume that fundraising for the next 12 months will be substantially lower than the previous 12 months? There's also a mention of EGF-4. which has done a first closing and we're wondering what's next for this one so that's the first question and I'm taking the second one as well it's a question on the evergreen wealth funds why do you not seem to be experiencing the same performance and redemption issues at other platforms and what is the growth potential for the evergreen family thank you

Thank you very much. So as you know, we don't give guidance for the full year at this moment of the year, but we will be more precise during our Q3 trading update. But no, it wouldn't be reasonable to be pessimistic on the fundraising of Eurazeo. Yes, the environment is what it is. Yes, some investors are slower and before to take their decision but again we have a robust and diversified pipeline it's based on flagships it's also based on thematic fund and we have plenty of room to continue to deploy to diversify to expand our LP bay so we don't give guidance but we have we are reasonably optimistic at this moment of the year, given the fact, again, that our fundraising will be based on flagships, thematic funds, CVs, co-investments, mandates, wealth solutions, and internationalization. And if we move now to the evergreen issue, which has been without any doubt something volatile during the first half of this year, Let us remind you that our evergreen vehicles at Euralzeo are quite specific. First of all, they are bought through Unitlink life insurance contract. At 73%, EPV is held through Unitlink life insurance contract. Unitlink life insurance contracts are very stable component of savings. EPG3 is a French product, so it is a French legal structure, so it is subscribed to French life insurance contracts and also in the Benelux. But it is mainly used by final users that are very stable in their behavior, in their savings. That's the first answer to your question. The second answer to your question is the fact that we have currently 20% of cash in this vehicle. We have always managed this income and the past performance that were in average close to 7% have always been realized with this very generous proportion of cash. We don't want to avoid the issue regarding the increase of redemption of usage of gates and we are currently, if you look at the first half of this year, The percentage of redemption in percentage per quarter is at 1.6%, which is still much lower than the inflows. The inflows that we receive are more than the double of the quite stable of flows that we naturally face. And for the first half of this year, the performance is already at 3.5%, so we are back to This historical performance that we have been able to achieve, which is close to a quite stable and robust 7% per year. And yes, we are very optimistic that the evergreen vehicles at Eurazeo are a very stable component of our business activity. Thank you, Christophe.

We have two other questions, but not enough time, so I will refer back to the investors who are asking the question. There was one on deployment. We can address this. And one on the valuation of the asset management company. And I will refer back to investors on this one, how we are managing the multiples.

Thank you, Pierre. So on behalf of all the team, Christophe and myself would like to thank you for attending this conference. And obviously, as we are end of July, for those who are taking holidays, we wish you a nice break. Otherwise, we'll be in town in the next week. So if you have questions, please direct them to us. Thank you very much. Bye-bye. Bye-bye.

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