Wendel

Good morning, everyone, for this 2025 full year results presentation. As always, we're going to make this presentation with several speakers today, including Jérôme Michel, Benoît Dréaud, Cyrille Marie, and later, Laurent Mignon. So to start, let me comment the slide number four in the presentation, which is a recap of the 2030 ambitions that we present to you in last December. We showed you that we have a pretty ambitious portfolio rotation plan and a capital allocation plan. We do intend to get $7 billion of committed cash flows through 2030 through asset rotation and FR regeneration and to reinvest this amount and returning $1.6 billion to the shareholders in the meantime. We also announced you back in December some good organic growth target with a 15% growth organically for the asset management platform. And we mentioned to you that we intend to create value in the portfolio investment of the principal investment from 12 to 16% per annum with the new mandate that we have given to the IK Partners team. And we'll get back to that later in the presentation. So this is the background on which we are all working at Vendair, and I will give you more details on what we achieved in 2025 and in early 2026 to achieve those ambitions. I'm moving now to page number five, and as you can see, in 2025, we made progress on our two legs. I will start with the asset management where you can see that the platform really ramped up in 2025. We did close the acquisition of Monroe Capital in March 2025. The two platforms that we had during the years, Monroe Capital and LK Partners, had a very successful fundraising cycle. They both raised a combined 11 billion euros in a market which you know was not so easy. In 2025, we also signed the acquisition of Committed Advisors. We announced the signing in October 2025, and we do intend to close this acquisition end of Q1 2026. We believe that we now have a platform at scale. We manage close to 47 billion of assets under management, including performer, the acquisition of Committed Advisors. And we have a target for the year of over 200 million of fee-related earnings with this platform. So in less than three years, you can see that we have built something of scale and pretty attractive and pretty unique. Now, talking about the principal investments, 2025 was also a year of transformation. We've been very active in the portfolio. We are going to come back on the various divestitures that we made recently. the various bolt-on we did in the portfolio and the change in management that has happened. But the most important information is probably this IK partners advisory mandate that I mentioned earlier, which is changing significantly the way we operate and we believe is going to create much more value in the future. But I will get back to that later in the presentation. Turning on page six, You can see that we had a pretty busy early 2026 with the announcements of the disposals of both Stahl and IHS. Those are investments that we had in the portfolio for quite a long time. You remember that we initially invested in Stahl in 2006. IHS was a 2013 investment, so they've been in the portfolio for quite a long time. And we're happy that in this pretty tough market, we managed to secure those liquidity options. For Stahl, we signed an acquisition with Henkel, and I will give more details later on. And with IHS, we did support the tender offer that MTN announced a couple of weeks ago. Those two divestitures should bring 1.65 billion euros of proceeds for Vandale, so it's pretty significant. We will see later on that that takes our leverage down quite significantly. So it brings us some strong capability to execute on our shareholder returns policy and also to deploy capital towards the BOSTEX I mentioned earlier, WPI and WIM. So those are pretty important in the way we're going to execute our strategy. Moving to slide 7 and a few numbers on our 2025 results. First, you can see on the left side of this slide for Vandel Investment Managers some pretty strong growth. There is organic growth. You see the plus 13% organic growth in fee-paying AUM. And obviously, with the consolidation of Monroe Capital over the period, which we didn't have in 2024, we also have a scope effect. And so the increase of 200% is due to this scope change. But beyond the M&A, you can see that organically, the platforms are growing very, very nicely. On the right side, you can see that Vantel Principal Investments today account for over 5.5 billion of gross asset value. It's growing with a positive impact of listed assets, which as of today is mainly is going to be mainly Bureau Veritas, because we secured the public-to-private in December for Target. And as I mentioned earlier, IHS should not be in this bucket by the end of 2026. The unlisted assets have been impacted by the market multiples, and I'll come back to that later on. We did value Indus Numbers and 2025 Stahl at the end-call offer price, We did not take into account our share of cash flow between signing and closing, which are due to be paid to us. But as this amount is quite uncertain at this stage, we cautiously ignored this amount in our NAV. IHS is valued at the average share price before the year end and not at the MTN offer price. So we published a NAV per share of €164.20 as of December 31st, 2025, which is up 0.7% over the previous quarter and up 1.17% if you include the interim dividend that we paid in Q4 last year. I'm moving now to slide 8 and coming back to the performance over the last quarter of this fully diluted NAV, which has been growing 1.7%, as I mentioned, so 2.7 euros. So how did we grow this NAV? First, we had a negative impact on the investment manager side, the asset management part. We had some negative impact from the market multiples of our peers, despite the positive growth of the aggregates that I mentioned earlier. The Wandel Principal Investments saw some growth in terms of NAV per share, 4.9 euros. This is obviously mainly STAAL because we sold STAAL above our NAV value, and I will get back to that later on. As I mentioned, IHS was valued at the share price as of December 31st, and last target is now in our bucket of private assets and not anymore in our listed assets bucket. You can see that the Forex has been negligible over this quarter, which is very different from the first three quarters of 2025 where the impact was pretty strong. In Q4, it was pretty remote. So plus 2.7 euros over the quarter, fully diluted, and plus 1.2 euros when you take into account the interim dividend that we introduced last year, and we paid in November 25 1.5 euros, which has already been paid to our shareholders. I'm moving now to page 9 and give you a bit more details on the two earlier divestitures I mentioned, namely Stahl and IHS. The sale of Stahl is going to bring 1.2 billion of net proceeds to Vendel, and the expected tender offer on IHS should bring $575 million for the shares that we own in IHS. The combined proceeds from those two divestitures should bring our pro forma loan-to-value under 10%. We should also note that this 1.6 billion of proceeds account for over 27% of the portfolio rotation that we announced just a few weeks ago. So quite a strong start on this program. I'm moving now to page 10 to give you a bit more insight on the return to shareholders. We do intend to distribute around 500 million euros to our, sorry, to return 500 million euros to our shareholders, both through dividends and through buyback. In terms of dividends, we are raising our 2025 dividend to 5 euros and 10 cents. up 8.5% compared to last year. As we already paid an interim dividend in November, the additional dividend to be paid in May 2026 is going to be 3.6 euros. Those combined amounts of 5 euros and 10 cents compared to the current share price generate a yield of 5.8% based on the spot price of February 25. So a strong dividend policy and yield combined with the share buyback program that we mentioned end of December that we are going to launch, which is going to be around 340 million euros in terms of size that we're going to return to shareholders. So above around half a billion to be returned to our shareholders during this year. I'm going to turn now the mic to Cyril Marie to present to you the development for the Vendel Investment Managers Division.

Thank you, David. So I will not comment on page 12 because the key highlights have been presented by David already. Let's move directly to page 13 where you have the roll forward of the asset under management. So here in this chart, you have at the extreme left and right, the AUM, as you know, the way we monitor Our activity, we have the AUM and the fee-paying AUM, so let's start with the AUM. In 2024, as David said, we had only IK with $13.8 billion of AUM composed of the NAV of our fund plus the dry product, the money available for new investment and the co-investment. Now, at the end of 2025, we are at $41.2 billion, so it's $15 billion for IK plus 11% and $30 billion for Monroe, up 22%, which is, I think, a strong achievement in the current environment. And in the AUM, the last information is that the Vendel sponsor money represents 500 million, so it's around 1% of the total AUM. I think it's an important information. In the middle of the test chart, what you have is the dynamic of the fee-paying AUM. So as It means that the fees that are paying IUM that will have an impact in 2025 on our P&L. So we started the year at 10 billion. Then we had the impact of Monroe. But then what is very important is the 9.2 and the minus 5.2. With this, you have the new fee-paying IUM. So for IKEA, it's the money raised over the year, so 1.3 billion. And the money invested, because it's not the same business model for our two companies, important GP Ikea and Monroe so close to 8 billion for Monroe so with that you have the new fee paying AUM and then you have the exit and the payoff so because you know what is very important for the LPs also is to return capital so if you sum the 9.2 and the minus 5.2 you get the 13% and we believe it's a good indicator of the organic evolution of our business for 25% then Let's go on the following page, page 14. Here, the idea is to give you really more detail on the evolution of our business with two things, growth, organic growth, and diversification. I think that are the two key messages here. So let's start with private equity, IK Partners, in terms of fundraising first. It was the last. Part of their fundraising vintage started in 2023-2024. As you know already, they have reached the hard cap in all their strategies, the mid cap, the small cap, the partnership fund. And so the fundraising was at the beginning of 2025 for 1.3 billion. Now their priority is to invest the money raised and also to return capital to shareholders. In 25, it was a good year. As you can see, as always, they have returned more capital than they have invested for DLPs. It's very important. The dynamic of AUM plus 11% in 25. What is also very important for us is to maintain the organic growth of the businesses. And I will present to you later on that we have reached the target in terms of FRE. But despite this, we are still investing in the business. And the FTE have grown by 8% because in private equity, as you know, it's very important to have local team to understand the businesses, to invest in the operating partner. So we maintain a high level of investment in order to pursue the growth of the business. Another very important point for IK, it's the development of the retail. As you know, in the development of a private asset platform, the retail is a new engine of growth for us. And it's still ahead of us. And we have now created the first evergreen vehicle for IK called IK Private Equity Solution. It's now available for subscription. So if you want, you can get it through all the life insurance platforms. 26 for private equity priority. Now the revenues are secured because we have raised the money. I think the priority is now to deploy and to return capital to shareholders. We have strong ambition for 26. And also, we want to pursue the implementation of IK. As you know, IK is a pan-European private equity manager. They are very close to each of their markets. They have seven implementations, and they have in mind to open a new office in Spain in 26. I think it's very important in order to maintain the quality of the deflows for our LPs. So that's for private equity. Private credit. Here also, very strong organic dynamic. Equity raised 3.8 billion. As you know, post-acquisition, it's always very important to see how the LPs will react, and the signal was very positive with a lot of re-up. We have maintained the client base, and it's very positive for Monroe Capital. They have raised capital also with their retail evergreen vehicles during the year 2025, and if we talk about the first two months of 2026, The flows remain positive, so we are still gathering money on our retail evergreen vehicle for Monroe. Deployments, money invested, $8.3 billion, a very high level of investment. It's a record year for them. They remain relatively selective in terms of deployments. If you look at all the key KPIs of the private credit, LTV, leverage, diversification, Monroe is very well positioned. And also, just to give you one figure, if we look at the performance of the underlying companies of Monroe, the growth of the EBDA is 12%. So private credit remains a very good asset class, and with Monroe, they invest, as you know, the land money mainly to small and mid companies in the U.S., and the U.S. economy is still very small. AUM grows 22%. Here, the same message regarding the workforce. We are still investing in the business to reinforce the diversification. And the last comment on Monroe, probably 26. Two important messages. The first one, we want to develop organically Monroe in Europe, so we are working on it. We hope to be in a position to execute something in 26. And also, we are pursuing the diversification with the launch of new strategies and evergreen strategies for Monroe Capital. Last strategy for us, even if it's not closed so far, as David said, it's Committed Advisor. We expect to close it in Q1 26. They have started the new round of fundraising with their Vintage 6, and I can tell you the dynamic is very positive. The feedback from clients is positive. The cornerstone investors are there, so the dynamic is very good. and we hope that it will contribute to our growth in 26. Now if we turn to profitability, we have two slides. The first one, page 15, is the actual profitability. So here you have, as David said, a very important scope effect because last year you had only eight months of IK in 24, and in 25 you have 12 months of IK and only nine months of Monroe, so you have a you know, the growth rate are very high, 177% for the revenues, 150% for the profitability. What is important is to show you here that the profit contribution to Vendel is increasing significantly, and it shows you the execution of the strategy. But what is more important probably is to go to the next page, on page 16, just to have a a more analytic view of the P&L. So let's take the second column, the pro forma. What pro forma means here, it's 12 months of IK and 12 months of Monroe. And for that, so if you look at the first line, the revenues, the recurring revenues, so excluding carrying interest, the revenues tied to the FRE. So above 400, for 30 billion of fee-paying UM on average, it means an average fee rate of 135 basis points. I think it's a very good level with our mix of business as of today. So IK is closer to 180 and Monroe remains above 100 basis points because, as you know, Monroe is really focused on alpha. So they are not chasing IOM. The idea is really to focus on fees and performance for DLPs. Then the second indicator I would like to comment here is the margin, 38%. So it's a good margin because it's a good balance between our objective of profitability, but at the same time, we maintain investment in the business in order to have a sustainable growth. And the last comment on this slide for me is the 159. When we have announced the Monroe acquisition last year, in October 24, we gave you this objective of 160. We have reached this objective despite the dollar effect. It means that IKEA and Monroe have been in a position to compensate the negative dollar effect And we are today able to announce you that we have reached this target for the full 25 years. Then last page, so 26, you know, it's a summary of what we said previously with David. So the organic growth is there. We have now also committed advisor part of the platform. We have reached 47 billion. As said in December, we have a good level of diversification in terms of clients, geographic areas and products, so we can maintain this pace of growth. And as you can see, it will have a significant impact also in terms of FRA growth because we have in mind to reach 200 million for 26.

Thank you Cyril.