Second Quarter 2017 Earnings Presentation 1 Important Notice This - PowerPoint PPT Presentation

Second Quarter 2017 Earnings Presentation 1

Important Notice This presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Actual outcomes and results could differ materially from those suggested by this presentation due to the impact of many factors beyond the control of Ares Capital Corporation ("Ares Capital"), including those listed in the “Risk Factors” section of our filings with the Securities and Exchange Commission (“SEC”). Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and Ares Capital Corporation assumes no obligation to update or revise any such forward-looking statements. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third party sources and has not been independently verified and, accordingly, Ares Capital Corporation makes no representation or warranty in respect of this information. The following slides contain summaries of certain financial and statistical information about Ares Capital. The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of Ares Capital, or information about the market, as indicative of Ares Capital’s future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of Ares Capital. 2

Financial and Portfolio Highlights Financial Highlights Q2-17 Q1-17 Q2-16 (all per share amounts, excluding net asset value per share, are basic and diluted) (unaudited) (unaudited) (unaudited) Core EPS* (1) $ 0.34 $ 0.32 $ 0.39 Net Investment Income Per Share $ 0.29 $ 0.22 $ 0.34 Net Realized Gains Per Share $ 0.25 $ 0.01 $ 0.10 Net Unrealized Gains (Losses) Per Share $ (0.12) $ 0.05 $ 0.06 GAAP Net Income Per Share $ 0.42 $ 0.28 $ 0.50 Net Asset Value Per Share $ 16.54 $ 16.50 $ 16.62 Portfolio Highlights Q2-17 Q1-17 Q2-16 (dollar amounts in millions) (unaudited) (unaudited) (unaudited) Gross Commitments** $ 1,973 $ 864 $ 540 Exits of Commitments (2) $ 1,792 $ 836 $ 759 Total Fair Value of Investments $ 11,498 $ 11,407 $ 8,900 Weighted Average Yield of Debt & Other Income Producing Securities at Amortized Cost (3) 9.4% 9.3% 9.8% Weighted Average Yield on Total Investments at Amortized Cost (4) 8.2% 8.1% 8.9% *See page 25 hereof for reconciliations of basic and diluted Core EPS to GAAP EPS, the most directly comparable GAAP financial measure. Note: Endnotes begin on page 27. **Q1-17 excludes investments acquired as part of the American Capital Acquisition. 3

Selected Historical Financial Information As of and for the Three Months Ended (unaudited) (dollar amounts in millions, except per share data and stock prices) 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Core EPS – Basic and Diluted* (1) $ 0.34 $ 0.32 $ 0.42 $ 0.43 $ 0.39 Net Investment Income Per Share – Basic and Diluted $ 0.29 $ 0.22 $ 0.44 $ 0.44 $ 0.34 Net Realized and Unrealized Gains (Losses) Per Share – Basic and Diluted $ 0.13 $ 0.06 $ (0.20) $ (0.09) $ 0.16 GAAP EPS – Basic and Diluted $ 0.42 $ 0.28 $ 0.24 $ 0.35 $ 0.50 Dividend Declared and Payable Per Share $ 0.38 $ 0.38 $ 0.38 $ 0.38 $ 0.38 ** Stockholders' Equity $ 7,051 $ 7,035 $ 5,165 $ 5,209 $ 5,218 Net Asset Value Per Share $ 16.54 $ 16.50 $ 16.45 $ 16.59 $ 16.62 Principal Debt/Book Equity Ratio .70x .67x .76x .73x .74x Principal Debt/Book Equity Ratio, Net of Available Cash (5) .64x .64x .73x .71x .72x Unsecured Principal Debt to Total Principal Debt 64.0% 71.0% 78.3% 81.4% 64.6% Weighted Average Stated Interest on Debt (6) 3.9% 4.0% 4.2% 4.2% 3.9% Net Interest and Dividend Margin (7) 7.7% 7.9% 7.7% 7.8% 7.8% Ratio of Earnings to Fixed Charges (8) 3.5 3.0 3.8 4.1 3.6 Market Capitalization Principal Debt $ 4,928 $ 4,683 $ 3,951 $ 3,801 $ 3,860 Equity 6,983 7,409 5,177 4,866 4,458 Total Market Capitalization $ 11,911 $ 12,092 $ 9,128 $ 8,667 $ 8,318 Common Stock Data: High Price during the period $ 17.64 $ 17.81 $ 16.86 $ 16.40 $ 15.38 Low Price during the period $ 16.18 $ 16.42 $ 15.16 $ 13.96 $ 13.87 Closing Price $ 16.38 $ 17.38 $ 16.49 $ 15.50 $ 14.20 *See page 25 hereof for reconciliations of basic and diluted Core EPS to GAAP EPS, the most directly comparable GAAP financial measure. **Includes equity issued of $1.8 billion in January 2017 in connection with the American Capital Acquisition. 4

Selected Historical Financial Information As of (unaudited except for 12/31/16) (dollar amounts in millions) 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Investments at Fair Value $ 11,498 $ 11,407 $ 8,820 $ 8,805 $ 8,900 Number of Portfolio Companies (9) 319 316 218 215 214 Asset Class (at fair value): First Lien Senior Secured Loans 25% 24% 23% 25% 29% Second Lien Senior Secured Loans 33% 34% 34% 32% 31% Senior Direct Lending Program (10) 3% 2% 3% 2% —% Senior Secured Loan Program (11) 17% 17% 22% 22% 21% Senior Subordinated Loans 8% 8% 8% 8% 8% Collateralized Loan Obligations 2% 2% —% —% —% Preferred Equity 4% 4% 3% 4% 4% Other Equity and Other 8% 9% 7% 7% 7% Interest Rate Type (at fair value) % Floating Rate (12) 81% 79% 81% 80% 80% % Fixed Rate 8% 9% 9% 10% 10% % Equity and Other Non-Interest Earning 11% 12% 10% 10% 10% Yields: Weighted Avg. Yield on Debt and Other Income Producing Securities at Amortized Cost (3) 9.4% 9.3% 9.3% 9.7% 9.8% Weighted Avg. Yield on Debt and Other Income Producing Securities at Fair Value (3) 9.5% 9.4% 9.4% 9.8% 9.9% Weighted Average Yield on Total Investments at Amortized Cost (4) 8.2% 8.1% 8.3% 8.7% 8.9% Weighted Average Yield on Total Investments at Fair Value (4) 8.3% 8.2% 8.5% 8.8% 9.0% 5

Selected Historical Financial Information (cont’d) For the Three Months Ended (unaudited) (dollar amounts in millions) 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Commitments: Gross Commitments* $ 1,973 $ 864 $ 1,164 $ 1,529 $ 540 Exits of Commitments (2) (1,792) (836) (1,102) (1,499) (759) Net Commitments (13) $ 181 $ 28 $ 62 $ 30 $ (219) Gross Commitments Information*: Number of Transactions 47 28 24 28 11 Weighted Average Commitment Term in Months 81 65 84 94 64 Average Commitment in Period $ 42 $ 31 $ 49 $ 55 $ 49 Fundings*: Gross Fundings $ 1,897 $ 914 $ 1,089 $ 1,385 $ 518 Net Fundings (13) $ 96 $ 5 $ 90 $ (68) $ (202) Portfolio Turnover 0.16 0.09 0.11 0.16 0.06 * Q1-17 excludes investments acquired as part of the American Capital Acquisition. 6

Quarterly Operating Results For the Three Months Ended (unaudited) (amounts in millions, except per share data) 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Investment income $ 284 $ 275 $ 261 $ 258 $ 245 Expenses, net of waiver of income based fees (14) 153 179 114 117 136 Net investment income before income taxes 131 96 147 141 109 Income tax expense, including excise tax 7 2 8 4 4 Net investment income 124 94 139 137 105 Net realized and unrealized gains (losses) 54 24 (64) (27) 52 Net Income $ 178 $ 118 $ 75 $ 110 $ 157 Per Share: Core EPS - Basic and Diluted* (1) $ 0.34 $ 0.32 $ 0.42 $ 0.43 $ 0.39 Net Income - Basic and Diluted $ 0.42 $ 0.28 $ 0.24 $ 0.35 $ 0.50 Dividends Declared and Payable $ 0.38 $ 0.38 $ 0.38 $ 0.38 $ 0.38 Weighted average shares of common stock outstanding - Basic and Diluted 426 422 314 314 314 Common shares outstanding at end of period 426 426 314 314 314 For the Six Months Ended (unaudited) (amounts in millions, except per share data) 6/30/17 6/30/16 Investment income $ 559 $ 493 Expenses, net of waiver of income based fees (14) 332 266 Net investment income before taxes 227 227 Income tax expense, including excise tax 9 9 Net investment income 218 218 Net realized and unrealized gains 78 71 Net Income $ 296 $ 289 Per Share: Core EPS - Basic and Diluted* (1) $ 0.65 $ 0.76 Net Income - Basic and Diluted $ 0.70 $ 0.92 Dividends Declared and Payable $ 0.76 $ 0.76 Weighted average shares of common stock outstanding - Basic and Diluted 424 314 Common shares outstanding at end of period 426 314 *See page 25 hereof for reconciliations of basic and diluted Core EPS to GAAP EPS, the most directly comparable GAAP financial measure. 7