First Quarter 2020 Earnings Presentation 1 Important Notice This - PowerPoint PPT Presentation

First Quarter 2020 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, including the impact of the novel coronavirus ("COVID-19") pandemic and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy. 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 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 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 Q1-20 Q4-19 Q1-19 (all per share amounts, excluding net asset value per share, are basic and diluted) Core EPS* (1) $ 0.41 $ 0.45 $ 0.48 Net Investment Income Per Share $ 0.54 $ 0.44 $ 0.47 Net Realized Gains (Losses) Per Share $ 0.08 $ (0.18) $ 0.13 Net Unrealized Gains (Losses) Per Share $ (2.04) $ 0.22 $ (0.10) GAAP Net Income (Loss) Per Share $ (1.42) $ 0.48 $ 0.50 Net Asset Value Per Share $ 15.58 $ 17.32 $ 17.21 Portfolio Highlights Q1-20 Q4-19 Q1-19 (dollar amounts in millions) Gross Commitments $ 1,272 $ 1,608 $ 1,953 Exits of Commitments (2) $ 918 $ 1,224 $ 1,353 Total Fair Value of Investments $ 14,370 $ 14,426 $ 13,064 Weighted Average Yield of Debt & Other Income Producing Securities at Amortized Cost (3) 8.9% 9.6% 10.4% Weighted Average Yield on Total Investments at Amortized Cost (4) 7.9% 8.6% 9.3% Note: Endnotes begin on page 24. * See page 23 hereof for reconciliations of basic and diluted Core EPS to GAAP net income (loss) per share, the most directly comparable GAAP financial measure. 3

Selected Historical Financial Information (dollar amounts in millions, except per share data and stock prices) As of and for the Three Months Ended 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 Core EPS – Basic and Diluted* (1) $ 0.41 $ 0.45 $ 0.48 $ 0.49 $ 0.48 Net Investment Income Per Share – Basic and Diluted $ 0.54 $ 0.44 $ 0.50 $ 0.49 $ 0.47 Net Realized and Unrealized Gains (Losses) Per Share – Basic and Diluted $ (1.96) $ 0.04 $ (0.09) $ (0.02) $ 0.03 GAAP Net Income (Loss) Per Share – Basic and Diluted $ (1.42) $ 0.48 $ 0.41 $ 0.47 $ 0.50 Dividend Declared and Payable Per Share $ 0.40 $ 0.40 $ 0.40 $ 0.40 $ 0.40 Additional Dividend Declared and Payable Per Share $ — $ 0.02 $ 0.02 $ 0.02 $ 0.02 Stockholders' Equity $ 6,583 $ 7,467 $ 7,373 $ 7,368 $ 7,339 Net Asset Value Per Share $ 15.58 $ 17.32 $ 17.26 $ 17.27 $ 17.21 Debt/Equity Ratio ** 1.26x 0.95x 0.91x 0.83x 0.86x Debt/Equity Ratio, Net of Available Cash (5) 1.19x 0.93x 0.89x 0.77x 0.79x Unsecured Debt to Total Debt 55.8% 54.8% 66.8% 68.9% 56.7% Weighted Average Stated Interest on Debt (6) 3.4% 3.9% 4.0% 4.1% 4.1% Net Interest and Dividend Margin (7) 7.3% 7.6% 7.7% 7.8% 7.6% Ratio of Earnings to Fixed Charges (8) 3.2 3.5 3.8 4.1 4.1 Market Capitalization Principal Debt $ 8,274 $ 7,060 $ 6,691 $ 6,124 $ 6,293 Equity 4,556 8,040 7,963 7,655 7,307 Total Market Capitalization $ 12,830 $ 15,100 $ 14,654 $ 13,779 $ 13,600 Common Stock Data: High Price during the period $ 19.23 $ 19.02 $ 19.19 $ 18.12 $ 17.48 Low Price during the period $ 8.08 $ 18.10 $ 17.99 $ 17.22 $ 15.28 Closing Price $ 10.78 $ 18.65 $ 18.64 $ 17.94 $ 17.14 * See page 23 hereof for reconciliations of basic and diluted Core EPS to GAAP net income (loss) per share, the most directly comparable GAAP financial measure. ** Effective June 21, 2019, Ares Capital's asset coverage requirement applicable to senior securities was reduced from 200% to 150%. 4

Selected Historical Financial Information (cont’d) (dollar amounts in millions) As of 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 Investments at Fair Value $ 14,370 $ 14,426 $ 13,892 $ 12,992 $ 13,064 Number of Portfolio Companies (9) 355 354 352 345 345 Asset Class (at fair value): First Lien Senior Secured Loans (10) 48% 44% 45% 41% 44% Second Lien Senior Secured Loans 28% 30% 32% 33% 30% Senior Direct Lending Program (11) 6% 6% 6% 7% 6% Senior Subordinated Loans 6% 6% 4% 5% 6% Preferred Equity 5% 5% 5% 5% 5% Other Equity 7% 9% 8% 9% 9% Interest Rate Type (at fair value) % Floating Rate (12) 85% 84% 86% 84% 85% % Fixed Rate 5% 5% 5% 6% 6% % Equity and Other Non-Interest Earning 10% 11% 9% 10% 9% Yields: Weighted Avg. Yield on Debt and Other Income Producing Securities at Amortized Cost (3) 8.9% 9.6% 9.8% 10.4% 10.4% Weighted Avg. Yield on Debt and Other Income Producing Securities at Fair Value (3) 9.4% 9.7% 9.9% 10.5% 10.5% Weighted Average Yield on Total Investments at Amortized Cost (4) 7.9% 8.6% 8.8% 9.2% 9.3% Weighted Average Yield on Total Investments at Fair Value (4) 8.5% 8.7% 9.0% 9.5% 9.5% 5

Selected Historical Financial Information (cont’d) For the Three Months Ended (dollar amounts in millions) 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 Commitments: Gross Commitments $ 1,272 $ 1,608 $ 2,409 $ 1,307 $ 1,953 Exits of Commitments (2) (918) (1,224) (1,424) (1,348) (1,353) Net Commitments (13) $ 354 $ 384 $ 985 $ (41) $ 600 Gross Commitments Information: Number of Transactions 37 43 50 33 37 Weighted Average Commitment Term in Months 70 75 70 93 90 Average Commitment in Period $ 34 $ 37 $ 48 $ 40 $ 53 Fundings: Gross Fundings $ 1,760 $ 1,540 $ 2,098 $ 1,249 $ 1,941 Net Fundings (13) $ 752 $ 379 $ 788 $ (90) $ 652 Portfolio Turnover 0.07 0.08 0.10 0.10 0.10 6

Quarterly Operating Results (amounts in millions, except per share data) For the Three Months Ended 3/31/20 12/31/19 9/30/19 6/30/19 3/31/19 Investment income $ 369 $ 386 $ 387 $ 382 $ 373 Expenses, net of waiver of income based fees (14) 132 193 170 170 168 Net investment income before income taxes 237 193 217 212 205 Income tax expense, including excise tax 3 3 5 4 4 Net investment income 234 190 212 208 201 Net realized and unrealized gains (losses) (846) 14 (37) (8) 13 Net Income (Loss) $ (612) $ 204 $ 175 $ 200 $ 214 Per Share: Core EPS - Basic and Diluted* (1) $ 0.41 $ 0.45 $ 0.48 $ 0.49 $ 0.48 Net Income (Loss) - Basic and Diluted $ (1.42) $ 0.48 $ 0.41 $ 0.47 $ 0.50 Dividends Declared and Payable** $ 0.40 $ 0.42 $ 0.42 $ 0.42 $ 0.42 Weighted average shares of common stock outstanding - Basic and Diluted 430 429 427 426 426 Common shares outstanding at end of period 423 431 427 427 426 * See page 23 hereof for reconciliations of basic and diluted Core EPS to GAAP net income (loss) per share, the most directly comparable GAAP financial measure. ** For each of the quarters ended December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, dividends declared and payable included additional dividends of $0.02/share in each quarter. 7