18 slides from Epe Capital Partners Ltd. Class A's earnings presentation, Sep 28, 2018
Slide 1: 2018 Results Presentation
2 0 1 8 R E S U LT S P R E S E N TAT I O N 28 September 2018
Slide 2: Contents
Contents OVERVIEW PORTFOLIO FUND OVERVIEW OUTLOOK © Ethos | 2
Slide 3: Highlights of the results
OVERVIEW Highlights of the results Key performance metrics # of Portfolio Companies NAV per Share Growth in NAV per share 16 R11.00 5.7% Capital Invested Capital Invested* Average EV / EBITDA (as at June 2018) (post year end) 7.2x R716m R700m * Including deals signed but not yet completed Proforma i
Slide 4: Portfolio overview and value contribution
OVERVIEW Portfolio overview and value contribution Exposure to 16 portfolio companies across various sectors and vintages Invested Capital contribution by sector 3% 1% 3% 28% 36% 13% 16% Industrial services Industrials MedTech Consumer goods Telco services Consumer services FinTech © Ethos | 4
Slide 5: Portfolio
OVERVIEW PORTFOLIO FUND OVERVIEW OUTLOOK © Ethos | 5
Slide 6: Year on year investments completed or signed
PORTFOLIO Year on year investments completed or signed Significant increase in Invested Capital since 30 June 2017 119 1,083 334 Return on Total Investments Net new investments Opening NAV © Ethos | 6
Slide 7: New investments in 2018
PORTFOLIO New investments in 2018 Company Status Sector Company overview Supplier of highly sophisticated medical technology and equipment MedTech FUND VI in South Africa (first follow-on deal signed in September 2018) (follow-on deal) FMCG Bolt-on acquisition of SoftBev, a national Carbonated Soft
Slide 8: Net Asset Value contribution
PORTFOLIO Net Asset Value contribution Contribution by portfolio company to Ethos Capital NAV 26% 40% 60% South Africa Sub Saharan Africa © Ethos | 8
Slide 9: Portfolio contribution: Fund VI & MMF
PORTFOLIO Portfolio contribution Company Ethos % stake Invested Capital % of total Invested Capital EBITDA contribution* 25% 187 13% 20% 5% 13 1% 1% 44% 12 1% 2% FUND VI 54% 5 0.5% 1% 75% 5 0.5% 1% 70% 39 3% 4% 66% 14 1% 1% 90% 62 4% 4% FUND VI & MMF 80% 85 6% 5% 65% 38 3% 6% * Excluding MTN Zakhele
Slide 10: Portfolio contribution: Mezzanine, Mid Market Fund, Fund VII
PORTFOLIO Portfolio contribution Company Ethos % stake Invested Capital % of total Invested Capital EBITDA contribution* na 42 3% na Mid Market Fund 25% 199 14% 18% 62% 177 12% na 51% 98 7% 11% FUND VII 18% 391 28% 25% Mezzanine na 44 3% na * Excluding MTN Zakhele Futhi © Ethos | 10
Slide 11: Valuation overview
PORTFOLIO Valuation overview Portfolio valued at a 29% discount to the peer group..... .....market look-through values portfolio at 3.4x EV / EBITDA 7.2x 29% NAV BASED VALUATION 2.0 6.58 28% 11.00 5.2 4.42 Discount to NAV Discount to peer group 10.2x NAV Cash Invested NAV SHARE BASED VALUATION 3.4x
Slide 12: Fund Overview
OVERVIEW PORTFOLIO FUND OVERVIEW OUTLOOK © Ethos | 12
Slide 13: Fund VI is fully invested across a diversified portfolio of assets
FUND OVERVIEW Fund VI is fully invested across a diversified portfolio of assets Fund VI Contribution as at June 2018 Autozone RTT Fund size R8 590m BevCo Invested R6 840m Twinsaver Follow-on provision R1 438m Primedia Eazi 10 current investments Neopak # Companies (1 exited) Waco Eaton Average age
Slide 14: EMMF I is c.50% deployed in seven investments
FUND OVERVIEW EMMF I is c.50% deployed in seven investments Ethos Mid Market Fund I as at 30 June 2018* Total exposure per investment R’m Vintage 2016 Capital raised R2 505m Bolt-on acquisition signed Drawn down (and committed) R1 242m Total # of investments 7 % Capital committed 49.6% Average age c
Slide 15: Outlook
OVERVIEW PORTFOLIO FUND OVERVIEW OUTLOOK © Ethos | 15
Slide 16: Liquidity overview
OUTLOOK Liquidity overview Available capital (Rm) Commitments (Rm) 2,000 1,800 1,600 1,084 1,400 1,200 582 1,000 800 (1,531) 600 502 400 200 -- 30 Jun 18 Proforma 30 Jun 19 30 Jun 20 Proforma cash Bank facility Investment Undrawn Funding shortfall capacity commitments Cash Debt facility available Tr
Slide 17: Market outlook
OUTLOOK Market outlook LTM revenue across the portfolio grew at +3% and EBITDA was largely flat Macroeconomic uncertainty is impacting business confidence and growth outlook Focus on portfolio company operational efficiency and strategy implementation Significant deal flow and strong execution pipel
Slide 18: Disclaimer
DISCLAIMER THE INFORMATION CONTAINED HEREIN IS PROVIDED FOR INFORMATIONAL AND DISCUSSION PURPOSES ONLY AND IS NOT, AND MAY NOT BE RELIED ON IN ANY MANNER AS, LEGAL, TAX OR INVESTMENT ADVICE OR AS AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY AN INTEREST IN ANY OF THE ETHOS PRIVATE EQUITY FUN