30 slides from Epe Capital Partners Ltd. Class A's earnings presentation, Sep 27, 2023
Slide 1: Ethos Capital June 23 Investor Presentation
Ethos Capital June 23 Investor Presentation 27 September 2023
Slide 2: Important Information
Important Information This presentation is intended only for the person to whom it has been delivered to and is for informational purposes only. This presentation does not constitute an offer to sell, is not an offer or a solicitation of an offer in respect of securities and should not be construed
Slide 3: Important Information
Important Information No liability, howsoever arising, is or will be accepted by TRG or any member of its respective groups or its directors, officers, employees, agents or advisers for the fairness, accuracy or completeness of the information (including all estimates, valuations, forecasts, assumpt
Slide 4: Executive Summary
Executive Summary CONFIDENTIAL - FOR DISCUSSION PURPOSES ONLY
Slide 5: Executive Summary
Ethos Capital Results Executive Summary Net Asset Value Highlights – Group NAVPS increased by 1% from R8.49 to R8.56 with growth in the unlisted portfolio offset by Brait’s share price which fell 20% over the year – Funds and Co-investments grew by 14.4% over the year Group NAVPS up 1% to R8.56 Perf
Slide 6: Performance Update
THE ROHATYN GROUP Performance Update
Slide 7: The Ethos Capital Journey
Ethos Capital Results The Ethos Capital Journey NAV performance (per annum; gross pre-expenses) Return capital to Commitment shareholders Phase 1 Year 3 Year COVID quarter Investment Cycle Funds & Co-investments 14.4% 14.3% (15.6%) Investment Capital phase & asset Brait (19.3%) (1.2%) (53.6%) alloca
Slide 8: Performance Overview
Ethos Capital Results Performance Overview – 0.8% increase in NAVPS for the year to 30 June 2023 from R8.49 to R8.52 (based on Brait share price) • 14% return on the unlisted portfolio largely driven by Optasia revaluation post the partial sale and growth in Synerlytic, TymeBank and Gammatek, offset
Slide 9: Market Benchmarking of Fund Performance
Ethos Capital Results Market Benchmarking of Fund Performance # companies 6 months 1 year 3 years Ethos Capital’s investment portfolio Index (excluding Brait) increased NAV by Absolute growth Absolute growth CAGR 6%, 14% and 14% (CAGR) over the JSE All Share past 6 months, 1 year and 3 years 237 7%
Slide 10: Asset Contribution
Ethos Capital Results Ethos Capital Asset Contribution Ai related assets constitute 46%, other PE Funds / Co-investments 32% and Brait assets 22% of Ethos Capital’s total asset base R2,708m NAV Growth Brait Ordinary – Share price fell by 20% during the year, Exchangeable Bond price fell by 15% 22% –
Slide 11: NAV Analysis
Ethos Capital Results Ethos Capital NAV Analysis Audited Audited Audited Changes FY 2023 (Brait at diluted NAVPS) (Brait at share price) 30 June 30 June 30 June Reval Invested Realised 2022 2023 2023 INVESTMENT PORTFOLIO 3,209 99.5% 35 184 (268) 3,160 99.4% 2,688 99.3% Brait (NAV adjustment) 558 17.
Slide 12: LTM Revenue and EBITDA growth and Valuation multiples
Ethos Capital Results LTM Revenue and EBITDA growth and Valuation multiples Revenue growth % range EBITDA growth % range 3 3 5 1,119 5 1,156 4 656 2 4 394 2 139 224 114 24 < 5% 5% to < 15% 15% to < 25% 25% and greater <0% 0% to < 7.5% 7.5% to < 30% 30% and greater Values Numbers Values Numbers EV/ma
Slide 13: Portfolio Company Performance Overview
Ethos Capital Results Portfolio Company Performance Overview % of Total Assets NAV Return EBITDA Growth (1) – Increase in deployments across multiple countries and customers – Strong revenue and EBITDA growth offset by currency devaluation in key 31% 30% 9% countries (Nigeria, South Africa, Zambia &
Slide 14: Portfolio Company Performance Overview
Ethos Capital Results Portfolio Company Performance Overview % of Brait NAV NAV Growth (1) Growth (2) – Strong operational performance across all key products has continued 7% – EBITDA growth of 16% in March FY23 largely driven by Millbake business 27% 16% – ROIC increased to >19% – Successful listi
Slide 15: Investment overview
Ethos Capital Results Investment overview % of Total Asset Value Listed investments Method of valuation 24% Brait Exchangeable Bonds have a % of Total Asset Value maturity date of Dec 2024 MTN Zakhele Futhi converts into MTN shares by Sept 2024 58% of the portfolio is Listed, valued based on listed
Slide 16: Performance and Strategy Update
Performance and Strategy Update
Slide 17: Underlying Drivers of Listed Investment Holding Company Discounts
Ethos Capital Results Underlying Drivers of Listed Investment Holding Company Discounts Applicability to Causes of discount to NAV Ethos Capital Options to close the discount ‒ Ethos Capital is a Mauritian-based company (CGT = 0% and effective income tax rate of Tax Leakage c.13%) ‒ Operating cost
Slide 18: Ethos Capital Strategy
Ethos Capital Results Ethos Capital Strategy Expedite the Optimise the Drive investor Unlock value return of capital balance sheet returns ‒ Transition from predominantly fund investments to increased focus on: • Secondary transactions at significant discounts to NAV Investment Mandate • Direct co-i
Slide 19: Portfolio Overview – Funds & Co-investments
Portfolio Overview – Funds & Co-investments CONFIDENTIAL - FOR DISCUSSION PURPOSES ONLY
Slide 20: Optasia
Ethos Capital Results Optasia 31% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R831m 3.1x 16.6% +30% 1-yr return vs. 2.5x in June 2022 (Ethos consortium) Optasia is a global fintech company that partners with MNOs, mobile wallet operators and financial Financial performance in US$ i
Slide 21: Synerlytic
Ethos Capital Results Synerlytic 8% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R203m 2.0x 94.0% +21% 1-yr return vs. 1.7x in June 2022 (EMMF I) Synerlytic owns two independent business units: The Particle Group and WearCheck Financial performance Through AMIS (South Africa) and CN
Slide 22: Vertice
Ethos Capital Results Vertice 6% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R168m 1.3x 84.0% -11% 1-yr return vs. 1.5x in June 2022 (EF VI, TRG AAiF I & EHP) Vertice is a South African based medical technology company with a continent-wide footprint that provides Financial perform
Slide 23: Crossfin
Ethos Capital Results Crossfin 6% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R166m 1.1x 31.0% +2% 1-yr return vs. 1.1x in June 2022 (EMMF I & TRG AAiF I) Crossfin invests in high growth, established, cash generative Fintech solutions to enable growth for Financial performance comp
Slide 24: Echo
Ethos Capital Results Echo 6% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R160m 0.9x 64.0% -21% 1-yr return vs. 1.1x in June 2022 (EMMF I & EF VII) Echo is a corporate Internet Service Provider (“ISP”), providing information and Communications Financial performance Technology servi
Slide 25: e4
Ethos Capital Results e4 2% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R54m 1.0x 16% New investment New investment (EMMF I) Focused on software as a service, e4 leverages technology to completely transform customer processes. Financial performance As one of the pioneers of digital
Slide 26: Overview of Other Unlisted Portfolio Companies
Ethos Capital Results Overview of Other Unlisted Portfolio Companies % of Total Assets – Gammatek is a leading distributor of mobile accessories and low-technology products – Revenue growth of 25% and EBITDA growth of 3%, driven by sustained demand for digital connectivity and strategic investment i
Slide 27: Portfolio Overview – Brait
Portfolio Overview – Brait CONFIDENTIAL - FOR DISCUSSION PURPOSES ONLY
Slide 28: Premier
Ethos Capital Results Premier 4% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R111m n/a 12.8% -7% 1-yr return (TRG AF VII, EDI & LC) Premier is a leading South African FMCG manufacturer offering branded and private label solutions 12 months ended 31 March 2023 (FY23) Revenue: Adjust
Slide 29: Virgin Active
Ethos Capital Results Virgin Active 10% Ethos Capital Value: MOIC: Ethos ownership: % of Total Assets R276m n/a 12.8% +9% 1-yr return (EF VII, EDI & LC) Virgin Active is one of the leading international health club operators providing customers with a combination of outstanding exercise experiences
Slide 30: Brait Value Unlock Strategy
Ethos Capital Results Brait Value Unlock Strategy Realise value from investments 1 3 5 7 9 New Look CVA and debt Raised R3bn GBP88m capital raise / GBP50m capital raise and Unbundle residual stake Sale of DGB for R470m restructuring exchangeable bond Real Foods acquisition debt extension to sharehol