Summary of Taaleri's Capital Markets Day - September 02, 2025 Company Overview - **Company Name**: Taaleri - **Established**: February 2007 - **Assets Under Management**: €2.7 billion - **Guarantee Insurance Portfolio**: €1.7 billion - **Employees**: Approximately 130 - **Revenue (LTM)**: €63.1 million - **Sustainability Focus**: 88% of products have sustainability objectives or promote sustainability characteristics [6][7][10] Strategic Objectives (2026-2028) - **Identity**: Taaleri positions itself as a front runner in investment and asset management, focusing on transformational opportunities in private capital [5][12] - **Purpose**: Leverage expertise and capital to power long-term returns for customers [5] - **Growth Areas**: - **Carantea**: Targeting over 10% growth in insurance service results, expanding distribution channels, and investigating growth opportunities in neighboring markets [22][24] - **Private Asset Management**: Plans to grow fund sizes within existing strategies and launch new product groups [26] - **Development Capital**: Aiming for returns on equity that exceed group-level targets [31] Market Trends - **Private Capital Market Growth**: Expected to grow at double-digit rates, with real estate growth forecasted to increase from 5% to 9%, infrastructure declining from 16% to 10%, and private equity remaining stable at 12% [18][19] - **Finnish Housing Market**: The housing market peaked in 2021 with €22.5 billion in new loans, but saw a decline of over 40% in the following year. However, a recovery is noted with a 18% increase in home transactions in the first half of 2025 [46][47] Business Segments - **Carantea**: Specializes in credit risk insurance, primarily for residential mortgages and corporate loans. The company has underwritten over 100,000 guarantees since 2005 [42][45] - **Insurance Revenue**: Maintained at €18.7 million despite market downturns, with a combined ratio of 34% indicating stable profitability [54][62] - **Investment Portfolio**: €158 million, with 75% in fixed income investments, reflecting a conservative risk approach [56] Key Priorities for Garantia 1. **Increase Market Share**: Focus on residential mortgage guarantees as a primary collateral option in Finland [59] 2. **Expand Distribution**: Building partnerships with new lenders and exploring opportunities in the Baltic States and Nordics [60] 3. **Capital Optimization**: Ensure optimal use of capital to maintain solvency and provide stable dividends [60] Financial Performance - **Insurance Revenue**: €19.5 million for the last twelve months, with operating profit at €18.2 million [62] - **Dividend Payments**: Taaleri has paid €93 million in dividends to its parent company since acquiring Garantia in 2015 [63] Additional Insights - **Regulatory Impact**: Changes in financial sector regulations may favor guarantees over physical collateral, providing a potential tailwind for growth [50][52] - **Consumer Confidence**: Remains below long-term averages, affecting housing market recovery and demand for guarantees [48] Conclusion Taaleri is strategically positioned to capitalize on growth opportunities in the private capital market and the housing sector, with a strong focus on sustainability and expertise in investment management. The company aims to enhance its market presence through strategic growth initiatives and partnerships while maintaining a conservative risk profile in its operations.

Financial Data and Key Metrics Changes - The group reported a 6.4% increase in operating NPAT to AUD 100.8 million, translating to an operating EPS of 12.2 cents per security, and distributions of 10.4 cents per security, both up 4% from the previous year [22][21] - Statutory NPAT was AUD 82.7 million, lower than operating NPAT due to fair valuation impacts of property investments [22] - FY '26 operating EPS guidance is set at 13.4 cents, indicating a significant increase from the current year [22] Business Line Data and Key Metrics Changes - The Property Funds Management segment delivered an operating EBITDA of AUD 59.6 million, up from AUD 57.9 million last year, reflecting resilience despite a subdued transactional environment [24] - The Property Investment segment contributed a consolidated EBITDA of AUD 87.7 million, an increase from the prior year [25] - Centuria Bass Credit generated AUD 27 million in operating EBITDA, with AUM expanding over 21% year-on-year to AUD 2.3 billion [12] Market Data and Key Metrics Changes - Centuria's transactional activity totaled close to AUD 3 billion, including approximately AUD 500 million of acquisitions and AUD 630 million of real estate finance transactions [10] - The group maintained a high portfolio occupancy rate of 95% with a robust average lease term of 5.3 years [10] - The unlisted platform's performance fees amounted to AUD 7 million booked to P&L, with AUD 32 million collected from divestments [11] Company Strategy and Development Direction - The company aims to target over AUD 1 billion in real estate acquisitions in FY '26, focusing on alternative property markets and innovative fund structures [4][35] - The introduction of Reset Data is expected to contribute to earnings growth, with anticipated revenue generation from its AI marketplace and AI factory starting in FY '26 [4][18] - Centuria plans to continue proactive capital management and seek new lower-cost corporate debt sources [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving real estate investment environment due to falling cash rates and increasing transaction volumes [6][35] - The company anticipates a continued increase in investor appetite for real estate funds, driven by lower competing deposit and fixed interest rate returns [7][35] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [29][30] Other Important Information - Centuria's net asset value per security remained steady at AUD 1.79, with operating gearing at 12.3% [29] - The company has raised an additional AUD 100 million in liquidity and expects to repay its secured ASX listed redeemable notes ahead of maturity [30] - The weighted average debt duration has been extended from 2.3 years to 3.2 years, enhancing financial stability [31] Q&A Session Summary Question: Inquiry about payout ratio and DPS guidance - Management acknowledged that their payout ratio has been higher than peers and indicated a minor adjustment to address this, but did not commit to future forecasts [42][44] Question: Clarification on the AUD 1 billion acquisition guidance - The AUD 1 billion figure is a gross number, with approximately AUD 200 million already secured from a recent acquisition [45][46] Question: Potential implications of proportional consolidation of earnings - Management indicated that while there could be implications, they believe the new reporting structure aligns better with peers and enhances transparency [48][50] Question: Guidance on innovative fund structures and potential IPOs - Management confirmed that guidance includes a range of raisings, with ongoing work on new fund structures, but specifics on sectors for potential IPOs are still being developed [51][54] Question: Equity inflows and mix for FY '26 - Management expects a good mix of retail and institutional capital, with a focus on expanding institutional partnerships [58] Question: Competition in the Bass Credit market - Management acknowledged increased competition and margin pressure but noted a recent uptick in market activity [60]

Financial Data and Key Metrics Changes - Fee related earnings increased by 16% to $676 million, while distributable earnings rose by 12% to $613 million [8][34] - Capital raised in the quarter totaled $22 billion, with a total of $97 billion raised over the past twelve months, driving fee bearing capital to $563 billion, a 10% increase year over year [8][34] Business Line Data and Key Metrics Changes - Infrastructure business saw major transactions totaling over $30 billion in enterprise value, including significant acquisitions like Colonial Pipeline and Duke Energy Florida [21][22] - Real estate monetization activity increased significantly, with $15 billion in sales across various sectors, including senior housing and hospitality [23] Market Data and Key Metrics Changes - The fundraising environment is described as robust, with a notable increase in capital raised in Europe and a strong performance in complementary strategies [48] - The demand for high-quality assets is reflected in the significant increase in monetization activity, with over $55 billion in asset sales announced year to date [22][23] Company Strategy and Development Direction - The company is focused on long-term investment themes of digitalization, decarbonization, and deglobalization, particularly in AI infrastructure and renewable energy [10][43] - Strategic partnerships have been formed, including a $10 billion public-private investment program with the Swedish government and a renewable energy agreement with Google [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, highlighting strong demand for mission-critical assets and the ability to deploy capital effectively [15][33] - The company anticipates continued growth in fundraising and investment activity, supported by a robust pipeline and favorable market conditions [33][34] Other Important Information - The company is expanding its private wealth and retirement platform, Brookfield Wealth, aiming to raise over $30 billion in capital this year [30] - A quarterly dividend of 43.75¢ per share was declared, payable to shareholders of record as of August 29 [42] Q&A Session Summary Question: Fundraising backdrop and expectations for 2026 - Management characterized the fundraising environment as incredibly robust, expecting this year to surpass last year's fundraising totals [46][48] Question: Access to the broader retirement market - Management emphasized that success will depend on having the right products to meet investor needs, with a focus on real assets that provide stable cash flows [50][53] Question: Growth in the U.S. retail channel and Just acquisition - The Just Group acquisition is expected to add stable fee-bearing capital, enhancing the company's footprint in the UK retirement market [56][57] Question: Real estate market outlook - Deployment in real estate has doubled year to date, with a robust recovery in the capital markets supporting high-quality platforms [73][75] Question: Expense outlook and margin expansion - Management expects expenses to grow around 10% year over year, with a focus on building capabilities in various areas [78][80]

Financial Data and Key Metrics Changes - Ares Management reported a quarterly dividend of $1.12 per share, representing a 20% increase compared to the same quarter last year [4] - The company achieved a record management fee of $900 million, reflecting a 24% year-over-year increase [33] - Fee-related earnings (FRE) for the quarter were $409 million, marking a 26% year-over-year growth, with FRE margins at 41.2% [35] Business Line Data and Key Metrics Changes - The total assets under management (AUM) increased to $572 billion, showing a quarter-over-quarter organic growth of 19% on an annualized basis [8] - Fee-paying AUM (FPAUM) rose to $350 billion, representing a quarter-over-quarter organic growth of 17% on an annualized basis [9] - The secondaries business saw a 29% increase in AUM to nearly $34 billion, with $2.5 billion raised during the quarter [16] Market Data and Key Metrics Changes - In the U.S. direct lending market, the company experienced a year-over-year comparable EBITDA growth of 13% with a low loan-to-value ratio of 43% [25] - European direct lending showed strong performance with a loan-to-value ratio of 49% and interest coverage of 2.3x, indicating healthy credit quality [70] - The company raised over $1.3 billion in infrastructure, including $850 million for its first Japan data center development fund [15] Company Strategy and Development Direction - Ares Management is focused on expanding its wealth distribution network, now partnering with over 80 firms globally, a 33% increase year-over-year [19] - The company is optimistic about the growth potential in the data center and digital infrastructure sectors, leveraging its recent GCP acquisition [30] - Ares aims to capitalize on the increasing demand for private credit and alternative investments, particularly in the wealth channel [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business amid market volatility, with strong fundraising and investment performance [7] - The company anticipates a strengthening transaction market environment in the third quarter, supported by lower short-term rates and significant private equity dry powder [28] - Management highlighted the importance of maintaining a balance between capital growth and quality deployment to mitigate risks [60] Other Important Information - The integration of GCP is progressing well, with expected synergies contributing positively to the financial outlook [32] - The company reported a net accrued performance income balance of $1.1 billion, an 8.5% increase from the previous quarter [10] - Ares Management's insurance platform, Aspida, generated over $1.9 billion in new premiums during the quarter, indicating strong demand [22] Q&A Session Summary Question: Discussion on private credit and institutional demands - Management noted that while private credit fundraising has been down sequentially, Ares continues to see institutional appetite for private credit, maintaining fee structures despite market pressures [47][49] Question: Opportunities in alternative investments - Management emphasized their commitment to democratizing access to alternative investments and readiness to offer products as the market opens [56][58] Question: Update on deployment pipelines - Management expressed confidence in the growing pipelines across various business segments, including direct lending and real estate, despite market fluctuations [64] Question: Comparison of European and U.S. direct lending markets - Management indicated that European markets are becoming more attractive due to different rate trajectories, with credit quality remaining stable across both regions [70] Question: Investment in distribution and partnerships - Management confirmed ongoing investments in product development and distribution efforts, particularly in international markets, to drive growth [76][78]

Financial Data and Key Metrics Changes - The company raised $5.5 billion in 2024, exceeding its fundraising target of $5 billion, with $300 million from its advisory business and $5.2 billion contributing to its asset base [8][20] - Full year 2024 fee related earnings (FRE) reached $170 million, up 15% from 2023, with FRE per share at $1.12, up 13% [10] - Fourth quarter FRE was $55 million, up 35% from the prior quarter and 18% year-over-year, with FRE per share at $0.36, also up 35% from the third quarter [10] - The company generated $189 million of distributable earnings for the full year, and $89 million in the fourth quarter, with per share values of $1.24 and $0.58 respectively [12][44] Business Line Data and Key Metrics Changes - Performance related earnings (PRE) for the year exceeded $41 million, primarily driven by the sale of the Aguas Pacifico project [11] - The net accrued performance fee balance was $319 million, down 30% due to significant realizations in Infrastructure III and lower marks on publicly traded holdings [13] - The earning assets under management (AUM) rose 38% year-over-year to $33 billion, although it declined 3% sequentially due to dollar appreciation [15][33] Market Data and Key Metrics Changes - Net organic inflows in fee earning AUM in the fourth quarter were $380 million, with positive inflows across all investment verticals except public equities [16] - Approximately 70% of fundraising in 2024 came from local investors investing in local products, a significant increase from virtually nil in 2020 [22] - The company has seen increased demand for credit strategies in Brazil due to high interest rates, while equity-oriented strategies have softened [22][79] Company Strategy and Development Direction - The company aims to achieve a fundraising target of $6 billion in 2025, actively fundraising across various funds and strategies [21] - The strategy focuses on diversifying its business and enhancing growth profiles, with a significant portion of fundraising coming from local investors [20][22] - The company is developing local investment strategies tailored to specific countries in Latin America, including private equity and infrastructure funds [100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2025 FRE target of $200 million to $225 million, with an FRE margin between 58% to 60% [42] - The company is well-positioned to thrive amid macroeconomic uncertainties, with Latin America remaining an attractive destination for long-term capital commitments [24][23] - Management highlighted the positive momentum from pension fund reforms in Chile, Colombia, and Mexico, which are expected to increase contributions to pension funds significantly [94][95] Other Important Information - The effective tax rate for 2024 was 6.5%, with expectations to trend towards 10% by 2027 [44] - The company finished the year with approximately $190 million of net debt, with plans to reduce this throughout 2025 [46][82] - A fourth quarter dividend of $0.15 per share was announced, with intentions to repurchase shares in 2025 [47] Q&A Session Summary Question: Clarification on PRE and future distributions - Management confirmed that the sale of Aguas Pacifico was completed, generating approximately $60 million in performance fees, all accounted for in the fourth quarter [56][58] Question: Redemption trends in public equities and credit strategies - Management noted that redemptions in credit strategies were minimal and expected to remain small in 2025, with positive net new money flows anticipated [66][68] Question: Breakdown of the $6 billion fundraising target for 2025 - Management indicated that while they have a well-organized plan, they prefer to maintain flexibility regarding the specific breakdown of the fundraising target [76][78] Question: Impact of Chile's pension reform on inflows - Management highlighted that pension fund reforms across Latin America are expected to significantly increase contributions, benefiting private equity and infrastructure funds [94][95] Question: Expectations on real estate inflows in Brazil - Management acknowledged that high interest rates may negatively impact brick-and-mortar strategies, while security strategies are expected to perform well [110][111]