Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Shareholder Meeting (October 2022)
30 slides from Bailador Technology Investments's shareholder meeting presentation, Oct 11, 2022
Slide 1: Annual General Meeting 11th October 2022
For personal use only Annual General Meeting 11th October 2022 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: David Kirk, Co-Founder & Managing Partner
For personal use only David Kirk Co-Founder & Managing Partner 2
Slide 3: The Bailador Board
The Bailador Board For personal use only David Kirk, Executive Chairman Andrew Bullock, Non-Executive Director • Appointed 2014 • Appointed 2014 • Re-elected October 2020 • Re-elected October 2019 • Chair of Audit and Risk Committee Paul Wilson, Executive Director Jolanta Masojada, Non-Executive Dir
Slide 4: Exposure to expansion-stage technology companies
For personal use only Bailador provides investors with exposure to expansion-stage technology companies with global addressable markets and a high growth trajectory Investors get access through an ASX traded share [ASX:BTI] 4
Slide 5: 2022 Financial Year Update
2022 Financial Year Update 21.6% NTA per share growth over FY22 For personal use only BTI shares outperformed the S&P/ASX All Technology index by 46% over FY22 BTI realised $153m of investments including Instaclustr ($118m), SMI ($20m) and SiteMinder ($15m) BTI invested $39m across three new
Slide 6: The Bailador portfolio entered FY23 in a strong position
The Bailador portfolio entered FY23 in a strong position For personal use only 8 investments $341m portfolio company revenue1 63% portfolio company revenue growth2 ~64% gross margin2 ~88% recurring revenue2 Note: 1Based on unaudited revenue for the year ended 30 June 2022 for the underlying companie
Slide 7: It was a very active FY22 for the Bailador portfolio
It was a very active FY22 for the Bailador portfolio For personal use only 2 full cash 3 new 3 follow-on 1 IPO realisations investments investments • 118m cash realised • Leading digital healthcare • $4m follow-on investment • IPO priced (Oct-21) at 21% • 87% uplift to carrying value platform in Aus
Slide 8: Strong NTA per share growth in FY22 driven by cash realisations
Strong NTA per share growth in FY22 driven by cash realisations Growth tempered by decrease in value of ASX-listed investments (SiteMinder and Straker) due to market conditions For personal use only NTA per share $2.60 Valuation Carrying Cash Portfolio Company Movement ($m) value uplift realisation
Slide 9: Bailador outperformed the S&P/ASX All Technology Index by 46% in FY22
Bailador outperformed the S&P/ASX All Technology Index by 46% in FY22 For personal use only Indexed 30-Jun-21 = 100 140 130 BTI NTA/sh 120 110 BTI.ASX 100 90 46% outperformance1 80 70 S&P ASX All Technology Index ^XTX 60 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 Ma
Slide 10: NTA composition has changed over the past two years
Bailador’s NTA composition has changed over the past two years due to cash realisations and IPO Bailador held 51% of NTA in cash and 26% of NTA in marketable securities as at 30 June 2022 For personal use only Only 23% of NTA was private company investments NTA per share $2.00 $1.80 $1.60 Private In
Slide 11: Bailador has generated strong investor returns
Bailador has generated strong investor returns For personal use only BTI Portfolio Return1 25% 23% 23% 20% Returns as at 30 June 2022 1-yr 2-yr 3-yr Portfolio Return (%pa)1 22.6% 23.0% 13.4% 15% Shareholder Return (%pa)2 9.8% 44.1% 12.4% 13% Benchmark S&P/ASX All-tech index -36.0% -5.6% 1.4% 10% Per
Slide 12: New ongoing dividend policy; dividend declared and DRP active
New ongoing dividend policy; dividend declared and DRP active Bailador has committed to: For personal use only > An ongoing dividend paying 4% of NTA (pre-tax) per annum, paid semi-annually (ie 2% of NTA (pre-tax) each half-year) > A special dividend of 2% of Jun-22 NTA (pre-tax); DRP2 active at a 2
Slide 13: FY22 Financial Performance
FY22 Financial Performance For the year ended 30 June 2022 For personal use only FY21 FY22 $000 $000 Change in value of portfolio assets 52,032 70,667 Interest income 100 197 Total investment growth 52,132 70,864 1.75% management fee calculated on pre- Management fee (3,144) (4,451) tax NTA Performa
Slide 14: Bailador's commitment to ESG principles
Bailador’s commitment to ESG principles ☼ Bailador is establishing, integrating and implementing a long-term sustainability framework and goals For personal use only ☼ Bailador is measuring, managing and mitigating carbon emissions we are directly responsible for Scope 1 Emissions Scope 2 Emissions
Slide 15: Paul Wilson, Co-Founder & Managing Partner
For personal use only Paul Wilson Co-Founder & Managing Partner 15
Slide 16: Bailador successfully completed three cash realisations in FY22
Bailador successfully completed three cash realisations in FY22 For personal use only Instaclustr returned 14.2x invested SMI returned 2.7x invested capital at SiteMinder investment returned 24.8x capital at an IRR of 79.8% an IRR of 15.0% invested capital at an IRR of 40.4% $140m $25m $16m $120m $1
Slide 17: Strong FY22 performance and prospects across the portfolio
Strong FY22 performance and prospects across the Bailador portfolio Portfolio Sector For personal use only Investment Sector Sector thematics Operational milestones weighting growth International travel reopening and gathering • Successful IPO on the ASX in Nov-21 momentum • Delivered strong 4Q22
Slide 18: Strong FY22 performance and prospects across the portfolio (cont.)
Strong FY22 performance and prospects across the Bailador portfolio (cont.) Portfolio Sector For personal use only Investment Sector Sector thematics Operational milestones weighting growth Highly fragmented provider landscape with patchy • Delivered 79% revenue growth in FY22, surpassing technolo
Slide 19: Our business model is designed to generate premium returns
Our business model is designed to generate premium returns For personal use only INVESTING GROWING REALISING Diligence hundreds of Partner with Prepare businesses opportunities to management to scale for sale or IPO select the best globally 19
Slide 20: Carrying value growth is conservative versus portfolio revenue growth
The growth in carrying value of BTI’s investments is conservative in comparison to the revenue growth in the portfolio For personal use only Revenue Carrying Value Revenue Carrying Value Portfolio revenue has increased by 5.4x… …but BTI has only recognised a value increase of 2.0x in its NTA 5.4x 2.
Slide 21: Bailador has a track record of full and partial cash realisations
Bailador has a track record of 11 full and partial cash realisations ⇢ These have delivered a combined 3.8x multiple on invested capital at an IRR of 22.4% For personal use only ⇢ All 11 realisations have been above carrying value Cash $118m Cash $20m Cash $15.1m Cash $13m Cash $17m Cash $1.1m 14.2x
Slide 22: Market valuation multiples have reduced
Market valuation multiples have reduced and Bailador is well positioned to make new investments For personal use only Likely to be additional new investments Average technology multiples have declined to during the year, and possibly follow on below long-run average1 20x investments in existing po
Slide 23: Access to high-growth expansion-stage technology companies
For personal use only Bailador provides investors with access to high-growth expansion-stage technology companies at attractive valuations. Investors get access through an ASX traded share [ASX:BTI] with liquidity available at any time 23
Slide 24: Questions
For personal use only Questions investorservices@bailador.com.au 24
Slide 25: Disclaimer
Disclaimer For personal use only This presentation is confidential and may not be reproduced in whole or in part, or distributed except by Bailador Technology Investments Ltd (“Bailador”) or by authorised representatives of Bailador (“Affiliates”). This presentation does not contain a complete descr
Slide 26: Further Information
This report was authorised for release to the ASX by Helen Foley, Company Secretary & Chief Financial Officer, on 11 October 2022. For personal use only FURTHER INFORMATION Website: www.bailador.com.au Investor Enquiries: investorservices@bailador.com.au Telephone: +61 2 9223 2344 Bailador Technolog
Slide 27: Chairman's address
Bailador Technology Investments Annual General Meeting 11 October 2022 Chairman’s address For personal use only Good Morning. Ladies and Gentlemen, I’m pleased to open Bailador Technology Investments’ Annual General Meeting. My name is David Kirk, Bailador’s Chairman. I have been advised that a quor
Slide 28: Chairman's address (cont.)
For the purposes of this meeting, proxies have been received and these will be displayed on the screen during each resolution. I intend to vote all undirected proxies in favour of the resolutions, as is set out in the proxy form itself. I will now say a few words about performance in 2022 For person
Slide 29: Chairman's address (cont.)
During the year we made three new investments in the large and rapidly growing digital healthcare sector and made three follow-on investments as we continue to support the growth plans of our existing portfolio companies. As I mentioned earlier, our strong NTA per share growth was driven by third pa
Slide 30: Chairman's address (cont.)
regular dividends allow us to bring forward and de-risk returns for shareholders, which given the uncertainty of the current economic climate, is particularly valuable. We were also pleased to have received a 40% take up rate in our DRP and thank those shareholders for their on-going commitment. For
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