Tikehau Capital : 20 September 2018 - 2018 First Half-Year Results

PRESS RELEASE

Paris, 20 September 2018

2018 First Half-Year Results

A notable increase in the profitability of asset management activities driven by continued growth in assets under management

• Assets under management: €14.8bn1as at 30 June 2018, a 7.0% increase compared with 31 December 2017

• Solid momentum for asset management activities, with operating margin multiplied by 2.2 to 25.7%

• Investment activities affected by adverse changes in value of certain listed assets over the half year

• Including the acquisition of Sofidy, the Group would exceed the€20bntarget of assets under management as early as 2018, two years ahead of schedule

The Supervisory Board meeting of Tikehau Capital held on 20 September 2018, examined the consolidated financial statements2as at 30 June 2018.

The total Group assets under management increased by +€1.0bn(+7.0%) in comparisonto 31 December 2017, to stand at €14.8bn at 30 June 2018. This change wasprimarily drivenby fundraising for +€1.5bn thanks to the strong momentum of asset management activities, less distribution for -€0.6bn, plus +€0.1bn of mark-to-market effect.

Assets under management at 30 June 2018 are separated into€13.2bn for the asset management activities and €1.6bn for the investment activities.

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Data relating to assets under management have not been audited.

An audit of the financial statements is currently being carried out by the Statutory Auditors.

Strong momentum for asset management activities driven by the launch of new funds

New growth in assets under management

The first half-year 2018 was marked by the solid momentum of Tikehau Capital's asset management activities, particularly through the launch of new funds in the real estate, private debt and private equity sectors:

• TGE II (Tikehau Growth Equity II), a private equity fund dedicated to minority investment in growth companies, generally in support of families or entrepreneurs;

• A private equity fund dedicated to energy, launched in partnership with Total Group;

• TREO (Tikehau Real Estate Opportunity 2018), the first discretionary real estate fund launched by Tikehau Capital, which will follow a value added strategy by investing in commercial real estate, hotels and real estate development in the European market;

• NOVO 2018, structured as a French Debt Securitisation Fund (FCT) and designated as a loan fund for the economy (FPE). It follows an investment strategy similar to that of the NOVO 2 fund, which enabled financing of around twenty medium-sized companies.

In parallel, the Group has continued to see inflows into its other funds, in particular in the private debt sector. In Liquid Strategies, the TTV fund (Tikehau Taux Variables) benefits froma favourable momentum and exceeded the €2bn AuM mark at end-June 2018.

The strong growth in assets under management over the first half-year mainly comes from asolid and balanced net inflow of +€2.1bn. The four business lines of the asset management activity recorded net positive inflows across the period: private debt (+€0.8bn), real estate

(+€0.3bn), liquid strategies (+€0.5bn) and private equity (+€0.5bn).

This robust net inflow was incremented by positive mark-to-market effects(+€0.2bn) and offset by distribution during the period (-€0.5bn).

At 30 June 2018,the assets under management in the asset management activity wereup +€1.8bn (+15.8%)to reach €13.2bn, compared to €11.4bn at 31 December 2017.Fee-paying assets under management amounted to €10.7bn at 30 June 2018, up +16.3% since

31 December 2017.

In line with its strategy to guarantee a growing alignment of interests between its management team, shareholders and investor clients, Tikehau Capital allocates a growing share of its resources to commitments in its own funds. During the first half of 2018, the Groupconsequently committed a total of €0.6bn in its asset management strategies.

It is important to note that the growth in assets under management at 30 June 2018 does not take into account initiatives launched during the first half-year, these positive impacts will take effect during the second part of the year. (See below for the second half-year outlook).

A level of profitability multiplied by 2.2

Revenuesfrom asset management activities amounted to €35.8mcompared to €25.1mat 30 June 2017, up 42.6% in one year. This strong growth reflects the increase of the Group's fee-paying assets under management.

The growth in revenues from asset management activities took place in acontext of controlled cost evolution. During the first half-year, operating costs increased by +18.0% (compared to +42.6% for revenues), as part of the continued development of the asset management platform, in particular with the recruitment of experienced and highly qualified people, notably in the real estate and private equity sectors.

Consequently,the operating margin ratio for asset management activities was multiplied by 2.2 from 11.6% to 25.7% over the period (+14.1 points)reflecting the strong operating leverage for these activities. The operating income for these activities was multiplied by almost 3.2to reach €9.2m for the first half-year 2018.

Over the first half-year of 2018,the investments carried out by all funds amounted to€1.5bn,a comparable amount to the first half-year 2017, reflecting a continued strong selectivity in fund deployment. For example, the acquisition of a minority stake alongside the management team in Nexteam Group, a major player in the machining of complex parts and hard metals for the aeronautical and aerospace industries, which was announced in May, was quickly followed by an external growth operation for this industrial group.

Investment activities affected by the revaluations of listed assets

Revenues from investment activities over the first half-year 2018 stood at -€36.0m.

• Revenues linked to fair value adjustments are negative at end-June 2018, reaching -€71.8m, due to unfavourable evolutions linked to stakes held in Eurazeo and DWS.

• Revenues from dividends, coupons and distributionsreach €35.8m, up by a significant +55.7% year-on-year.

Please note that the first-half of 2017 benefitted from €32.4m in non-recurring income3and from favourable fair value adjustments4.

After taking into account operating costs for -€36.6m as well as the share of net income from equity method companies for +€0.5m, investment activities at 30 June 2018recorded an operating loss of -€71.9m.

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Elements related to the revaluation of Salvepar shares

As a reminder, the revaluation of listed securities held at 30 June 2017 had a favourable impact of+€57m over the first half-year 2017.

Net profit, Group share, of €(81.4)m

The evolution of net profit, Group share, at end-June 2018 reflects in particular the income from investment activities over the first half.

It also includes financial interest for €(12.6)m as well as €(3.2)m ofnon-recurring costs linked to share-based payments.Tax reaches €(2.2)m and minority interest amount to €(0.6)m.

The net profit, Group share,reaches €(81.4)m at 30 June 2018 (to be compared with a €85.9mprofit a year ago).

High level of shareholders' equity, a differentiating advantage in a changing environment

At 30 June 2018, the Group's shareholders' equity stood at €2.3bncompared to €2.5bn

at 31 December 2017. The Company'sinvestment portfolio was over €1.9bn(compared to€1.6bn at 31 December 2017).

Within Tikehau Capital's investment portfolio on a consolidated basis,the investments in the

Group's business lines amounted to €688m at 30 June 2018up €176m (+34%) since 31

December 2017. This share of investments in the Group's business lines is expected to increase over the coming years in line with the Group's strategy and the progressive launch of new funds , as during the first half-year 2018.

As at 30 June 2018, the consolidated Group cash position came to €539mcompared to€975m on 31 December 2017. This change notably reflects the investments made by Tikehau

Capital in the funds launched by the Group during the first half-year 2018.Financial debt wasstable at €554m compared to €548m at end December 2017, witha gearing of 24%.

The outlook for the second half-year 2018 shows the ramp-up and realization of the initiatives launched during the first half-year, in line with the announced ambitions

The second half of the 2018 financial year should see an acceleration in the growth of assets under management, thus confirming the momentum of the first half-year. Several successes have already been recorded in July 2018, including the achievement of over€1bncommitments for the private debt fund Tikehau Direct Lending IV (TDL IV), and the launch by

Tikehau Capital Europe of its fourth CLO, for €412m.The Group also recently signed a dedicated private debtmandate with an institutional investor for €400 m.

During the second half-year, Tikehau Capital will continue to implement its action plan to create value for its shareholders and investors, through the following development focuses:

• Stronger international presence, by further increasing the proportion of international clients in the assets under management of the asset management business, supported by its platform and local teams. The Group will benefit from the ramp-up of recently opened foreign offices, notably Madrid and New York.

• Pursuing strategic initiatives

  • oIn partnership with Groupama AM and the European Investment Fund (EIF), the Group is finalising the launch of a fund dedicated to financing the French economy. This new fund will be dedicated to senior debt financing of predominantly French SMEs. It will support international development, investment, organic and external growth operations.

• Broadening the range of funds to balance the business mix

  • oFor private equity activities: this translates into an acceleration in fundraising in the new funds, which started during the first half-year, and the ongoing structuring of this business line with the arrival of Emmanuel Laillier as Head of Private Equity in September;

  • oFor real estate activities: coupled with the acceleration in fundraising started during the first half-year, the entry into exclusive negotiations announced today for the acquisition of Sofidy (see dedicated press release) is a structuring external growth operation that should enable Tikehau Capital to rapidly and efficiently accelerate its presence in this market.

On the basis of the operations that have been carried out or that are yet to materialise, Tikehau Capital's target, excluding the acquisition of Sofidy, is to reach€16.5bn in assets under management by the end of 2018, i.e. an increase of 20% in assets under management for the full financial year5. Taking into account the acquisition of Sofidy, this target would be increased to over€21bn, leading the Group to exceed its target of €20bn in assets under managementin 2018, two years ahead of schedule.

5This objective is listed subject to stability in the assets currently under management in the liquid strategies.