Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Shareholder Meeting (October 2017)
27 slides from Bailador Technology Investments's shareholder meeting presentation, Oct 25, 2017
Slide 1: Annual General Meeting Chairman's Address
For personal use only Annual General Meeting Chairman’s Address 25 October 2017 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: Unique exposure to a portfolio of information technology companies
For personal use only Bailador provides unique exposure to a portfolio of information technology companies with global addressable markets. We invest in private companies at the expansion-stage utilising extensive downside protection. Investors get access through an ASX traded share (BTI:ASX) 2
Slide 3: 2017 Performance
2017 Performance ➾ Continued strong performance by the portfolio For personal use only 6 investments increased in value (at an average of 27%) 2 were held flat (one because yet to be held 12 months) 2 declined in value ➾ Continued development and growth of the investment team ➾ Opened an office in USA
Slide 4: 2017 v 2016 Financial Performance
2017 v 2016 Financial Performance For personal use only FY 2016 FY 2017 $000 $000 Change in value of portfolio assets 18,152 (4,158) Management fee 1,585 2,316 Performance fee 2,978 - Total fees 4,563 2,316 Other costs 1,224 956 Profit after tax 8,864 (4,965) 4
Slide 5: Change in Value of Investments
Change in Value of Investments 30 June Additional Valuation 30 June Net 2016 Investment Movement 2017 Movement For personal use only $m $m $m $m $m Six investments increased in value SiteMinder 31.3 0.0 9.2 40.5 9.2 Stackla 7.4 4.8 0.4 12.6 5.1 Straker 4.6 3.8 0.3 8.7 4.1 DocsCorp 0.0 5.0 2.5 7.5 7.
Slide 6: A portfolio with a demonstrated global market
A portfolio with a demonstrated global market BTI’s portfolio is headquartered in three countries with offices in 13 countries, across 25 cities and employing a total of 1,100 people (2016:815) For personal use only UK: 195 employees EMEA: 19 employees N America: 145 employees SE Asia: 103 employees A
Slide 7: Outlook
Outlook For personal use only Internet, mobile and related information technology continues to transform 1 virtually all industries The Bailador portfolio companies continue to grow rapidly into large 2 addressable markets Bailador portfolio companies all operate market leading, robust and 3 scalabl
Slide 8: Discount to NTA
Discount to NTA The BTI discount to NTA has increased ★ For personal use only 30% Investment returns will be determined by the 15% underlying performance of portfolio companies 0% -15% ★ We expect the discount to -30% Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 NTA to close
Slide 9: Paul Wilson, Co-Founder & Managing Partner
For personal use only Paul Wilson Co-Founder & Managing Partner 9
Slide 10: Bailador Portfolio
For personal use only Bailador Portfolio Bailador Technology Investments Limited (ASX:BTI) 10
Slide 11: The BTI portfolio
The BTI portfolio Reve nue Combined revenue of the BTI portfolio is over $150m grow th 37 % For personal use only Channel management Enterprise SaaS platform Social marketing platform and distribution solutions for sourcing, sourcing and integrating Hybrid machine and Desktop and cloud- for online h
Slide 12: Travel Industry SaaS B2B (SiteMinder)
BTI portfolio: Travel Industry SaaS B2B The business What excites us Exit FY17 Valuation For personal use only • World-leader in hotel • The world leader in its • Logical acquisition for a number of ↑ 29% channel management space for technology, large tech companies including market position, and sc
Slide 13: Online Video Platform SaaS (Viostream)
BTI portfolio: Online Video Platform SaaS The business What excites us Exit FY17 Valuation For personal use only • Cloud-based video • Well positioned to ↓ 23% management, storage • Logical acquisition target for a capitalise on the strong systems integrator, global and distribution platform growth
Slide 14: UGC SaaS A.I. (Stackla)
BTI portfolio: UGC SaaS A.I. The business What excites us Exit FY17 Valuation For personal use only • User-generated • Huge global • Logical acquisition for a large ↑ 5% marketing tech company such as content platform addressable market • Aggregates content • Impressive suite of Oracle, IBM, Adobe o
Slide 15: Language Marketplace Machine Learning (Straker)
BTI portfolio: Language Marketplace Machine Learning FY17 Valuation The business What excites us Exit For personal use only ↑ 6% • An industry leading • A USD$43bn market • Preparing for 2018 IPO language translation opportunity underpinned - BlackPeak appointed advisor Valuation review Oct 2017 tec
Slide 16: Document Productivity SaaS (DocsCorp)
BTI portfolio: Document Productivity SaaS The business What excites us Exit FY17 Valuation • Clear product leadership For personal use only • Market-leading • Likely acquirers would be Document ↑ 49% desktop and cloud- • Strong growth opportunities in Management Systems, adjacent existing and adjace
Slide 17: Media SaaS Big Data (SMI)
BTI portfolio: Media SaaS Big Data The business What excites us Exit BTI cost For personal use only • Data insights • Unique value • Logical acquisition for a large media $7.4m data company (Nielsen). Attractive platform proposition data asset for global marketing • Leading source of • Blue chip cus
Slide 18: Online Home Loans Fintech (Lendi)
BTI portfolio: Online Home Loans Fintech The business What excites us Exit FY17 Valuation • A disruptive home loan For personal use only • End-to-end online home • Logical acquirer is a large bank, platform addressing the multi- ↑ 42% loan platform and billion dollar mortgage market financial servic
Slide 19: Tours & Activities SaaS (Rezdy)
BTI portfolio: Tours & Activities SaaS The business What excites us Exit FY17 Valuation For personal use only • B2B booking software • Well positioned in a • Clear opportunity for industry ↑ 29% fragmented multi-billion for tour and activity consolidation/private equity rollup. dollar market provide
Slide 20: Database Management Big Data (Instaclustr)
BTI portfolio: Database Management Big Data >100% YoY The business What excites us Exit For personal use only revenue growth • Open-source-as-a- • Strong product-market • Logical acquisition for a larger fit - majority of sales are managed service provider such as Due for revaluation Nov 2017 Servic
Slide 21: Retail Online Vertically Integrated (Brosa)
BTI portfolio: Retail Online Vertically Integrated The business What excites us Exit BTI cost • Growth opportunity for large furniture and For personal use only • Next generation • Huge growth homewares retailer (Wesfarmers, $3m opportunity to disrupt online designer Steinhoff). Attractive brand for
Slide 22: Portfolio valuation supported by third party investments
The BTI portfolio valuation is supported by third party investments from institutional and sophisticated investors Share Price Growth Portfolio company Current Valuation Third Party For personal use only Since Entry Investment $40.5m ✓ 829% $24.1m (3%) Valuation $12.6m ✓ 49% Review October $8.7m ✓ 2
Slide 23: The BTI portfolio is conservatively valued
The BTI portfolio is conservatively valued The BTI portfolio taken as a whole shares the scale and growth characteristics of other listed SaaS companies but is valued significantly more conservatively BTI only 75% Portfolio revenue = $153m Growth rate = 37% EV/Revenue multiple = 4.6x BTI use Revenue
Slide 24: ASX SaaS multiples of revenue – trailing LTM
ASX SaaS multiples of revenue – trailing LTM The BTI Net Tangible Assets (NTA) valuation is significantly more conservative than the trading range for ASX SaaS companies, suggesting upside to BTI’s NTA upon realisation only 15x use 12x EV / Revenue For personal 9x 6x BTI NTA 3x Jun-2016 Aug-2016 Oct
Slide 25: Access to a portfolio of quality, high growth technology companies
For personal use only Providing access to a portfolio of quality, high growth companies in the technology sector 25
Slide 26: Disclaimer
Disclaimer This presentation is confidential and may not be reproduced in whole or in part, or distributed except by Bailador Technology For personal use only Investment Ltd (“Bailador”) or by authorized representatives of Bailador (“Affiliates”). This presentation does not contain a complete descri
Slide 27: Further Information
For personal use only FURTHER INFORMATION Website: www.bailador.com.au Investor Enquiries: investorservices@bailador.com.au Telephone: +61 2 9223 2344 Bailador Technology Investments Limited (ASX:BTI)
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