Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — FY2023 Earnings Presentation
32 slides from Bailador Technology Investments's earnings presentation, Aug 16, 2023
Slide 1: Results presentation FY23
For personal use only Results presentation Financial Year to 30 June 2023 (FY23) Bailador Technology Investments Limited (ASX:BTI)
Slide 2: Contents
Contents For personal use only FY23 PORTFOLIO PERFORMANCE PAGE 3 – 22 FY23 SUMMARY FINANCIALS PAGE 23 – 25 FY24 OUTLOOK PAGE 26 APPENDIX PAGE 27 – 29 This presentation was authorised for release to the ASX by Helen Foley, Company Secretary & Chief Financial Officer, on 16 August 2023. 2
Slide 3: Executive Summary
Executive Summary ü The BTI portfolio ended FY23 in a strong position with combined portfolio revenue of $353m • 67% growth over last 12 months For personal use only PORTFOLIO PERFORMANCE ü FY23 dividend totalled 6.7 cents per share (fully franked) declared1, part of ongoing dividend commitment • Re
Slide 4: Performance highlights for FY23
Performance highlights for FY23 For personal use only PORTFOLIO PERFORMANCE $220m $1.52 5.3% (7.3% grossed up) NTA Value1 NTA per share1 Dividend yield2 (30 June 2022; $225m) (30 June 2022; $1.59) (FY22; 4.9%) $33m 28% -19% Cash invested Valuation uplift on Valuation decrease on (FY22; $39m) private
Slide 5: The Bailador portfolio ended FY23 in a strong position
The Bailador portfolio ended FY23 in a strong position For personal use only 8 PORTFOLIO PERFORMANCE investments3 $353m portfolio company revenue1 67% portfolio company revenue growth2 ~62% gross margin2 ~84% recurring revenue2 Note: 1Based on unaudited revenue for the year ended 30 June 2023 for th
Slide 6: NTA per share down $0.07 to $1.52
NTA per share down $0.07 to $1.52; Up $0.04 for the year after adding back dividends paid1 • NTA up 5.2% in July 2023 and above June 2022 NTA Bailador NTA Movements For personal use only PORTFOLIO PERFORMANCE NTA (post-tax) per share 1.80 +5.2% 1.60 Fair Value Fair Value Third Party / Investment Mov
Slide 7: Bailador's private investments have performed strongly
Bailador’s private investments have performed strongly • Listed investments dominated by SiteMinder, impacted by year end market activity For personal use only PORTFOLIO PERFORMANCE BTI Portfolio valuation over FY23 $120m • SiteMinder represented 89% of BTI’s listed investment portfolio valuation at
Slide 8: SiteMinder delivering strong growth; forecast EBITDA and free cashflow positive in FY24
SiteMinder delivering strong growth; forecast EBITDA and free cashflow positive in FY24 • SiteMinder accelerated subscriber growth and reduced cash usage • Expects to be EBITDA profitable and FCF positive for H2 FY24 • Liquidity remains strong at $83.6m For personal use only PORTFOLIO PERFORMANCE 'R
Slide 9: Bailador FY23 Portfolio Valuation Movements
For personal use only In s ta nt Sc $0m $10m $20m $30m $40m $50m $60m rip ts ( Ju Fo n- llo 22 w- ) o ni nv es tm en Va t lu a tio In n s ta up nt lift Sc rip ts ( Ju n- 23 ) Re zd y( Fo Ju n- llo 22 w- ) o ni nv es tm en Va t lu = Third party valuation a tio n up lift Re zd y( Ju n- 23 ) Ac c es s
Slide 10: Full realisation of InstantScripts delivered $52m cash
Full realisation of InstantScripts delivered $52m cash at 62% IRR (July 2023) • $52m cash realised1 • 62% internal rate of return • Realisation 25% above carrying value For personal use only PORTFOLIO PERFORMANCE Business Overview Business Performance • InstantScripts delivers consumers convenient a
Slide 11: Bailador invested $9.8m in Rosterfy
Bailador invested $9.8m in Rosterfy (April 2023) • Rosterfy is a market leading volunteer management SaaS platform powering the volunteering programs for some of the world’s leading Not-for-Profit (NFP) organisations and mass-scale events For personal use only PORTFOLIO PERFORMANCE Business overview
Slide 12: Rezdy acquired by US Private Equity Fund
Rezdy acquired by US Private Equity Fund; Bailador rolled 100% of investment (June 2023) • Major transaction rolling BTI’s shareholding in Rezdy into new vehicle established by a US private equity company • The transaction was at a 46% uplift to our carrying value at the time and delivered an IRR of
Slide 13: Returns enhanced by distribution of fully-franked dividends
Returns enhanced by distribution of fully-franked dividends over last three-year period • Bailador has delivered a 56% total cumulative return through a combination of capital growth and fully-franked dividends NTA/sh (post-tax) For personal use only NTA per share (post-tax) plus returns (1 July 202
Slide 14: Bailador has outperformed the technology sector over three years
Bailador has outperformed the technology sector over the last three-year period Indexed 31-Jul-20 = 100 BTI vs S&P ASX All-Technology Index (three years to July 2023) For personal use only PORTFOLIO PERFORMANCE 250 210 170 Shareholder Return1 BTI.ASX 13.3% pa outperformance 130 Portfolio Return2 NTA
Slide 15: Final dividend of 3.2 cents per share fully-franked declared
Final dividend of 3.2 cents per share fully-franked declared to be paid in September 2023 • Bailador has committed to paying 4% of NTA (pre-tax) per annum fully franked, paid semi-annually • Total dividends of 6.7 cents per share (fully franked) declared over last 12 months For personal use only POR
Slide 16: BTI offers a superior dividend yield vs peers
BTI offers a superior dividend yield vs peers Dividend yield (last 12 months) of select peers 11% For personal use only PORTFOLIO PERFORMANCE 10% 9% = DRP currently offered 8% 7% Dividend yield (%) 6% Average = 5.8% pa2 Average = 5.2% pa 5% 4% 3% 2% Average = 1.5% pa 1% 0% WTC TNE ALU HSN IFM TVL FD
Slide 17: Our business model is designed to generate premium returns
Our business model is designed to generate premium returns For personal use only PORTFOLIO PERFORMANCE INVESTING GROWING REALISING Diligence hundreds of Partner with Prepare businesses opportunities to management to scale for sale or IPO select the best globally 17
Slide 18: Track record of full and partial cash realisations
Bailador has a track record of 12 full and partial cash realisations • These have delivered a combined 3.1x multiple on invested capital at an IRR of 23.2% • All 12 realisations have been above carrying value For personal use only PORTFOLIO PERFORMANCE Cash $52m Cash $118m Cash $20m Cash $15.1m Cash
Slide 19: NTA composition has changed due to cash realisations
Bailador’s NTA composition has changed over the past two years due to cash realisations • Bailador realised over $235m in cash from transactions over the last three years • Many realisations capitalised on a period of high valuations For personal use only • With $104m in Net Cash (31-Jul-23) BTI is
Slide 20: Portfolio valuation has remained conservative against the market
Bailador’s portfolio valuation has remained conservative against the market over time BTI Portfolio Weighted Revenue Multiple vs. Software Equity Group (SEG) US SaaS Index For personal use only PORTFOLIO PERFORMANCE 20x 16x 12x 8x 4.7x 4x 4.2x 3.9x 0x Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19
Slide 21: Strong performance and prospects across the Bailador portfolio
Strong performance and prospects across the Bailador portfolio Portfolio Sector Investment Sector Sector thematics Operational milestones weighting1 growth • Delivered strong FY23 performance with ARR up 33.5% YoY to ü Large addressable market ~1m hotels For personal use only PORTFOLIO PERFORMANCE $
Slide 22: Strong performance and prospects across the portfolio (cont.)
Strong performance and prospects across the Bailador portfolio (cont.) Portfolio Sector Investment Sector Sector thematics Operational milestones weighting1 growth • Bailador invested $9.8m in Rosterfy, a high-growth ü Large market with over 2m charitable For personal use only PORTFOLIO PERFORMANCE
Slide 23: Summary Profit and Loss
Summary Profit and Loss For the year ended 30 June 2023 FY23 FY22 FY23 SUMMARY FINANCIALS For personal use only $000 $000 Change in value of portfolio assets 13,114 70,667 FX gains 110 - Interest income 2,902 197 Total investment growth 16,126 70,864 1.75% management fee calculated on pre- tax NTA M
Slide 24: Summary Financial Position
Summary Financial Position 30 June 2023 30 June 2022 Movement Cash reduced by income tax paid ($30m), FY23 SUMMARY FINANCIALS $000 $000 $000 For personal use only dividends paid ($10m) plus investments in Cash 57,755 143,784 (86,029) InstantScripts ($15m), Rosterfy ($10m), Rezdy ($5m) and Access Tel
Slide 25: Summary FY23 NTA movement by component
Ne For personal use only $100m $150m $200m $250m $0m $50m tC as In h s Ju ta n- nt 22 Sc rip ts f ol low Ro -o ns ste rfy inv es tm en Re t zd Ac yf c es oll ow s Te -o le n s h ea lth fo llo w- on In c om Di et vid ax en Cash movements ds pa id p aid (n et of DR P) Po rt fo lio co sts Ne tC M as ar
Slide 26: Bailador is well positioned to make new investments
Bailador is well positioned to make new investments Average technology multiples are 28% below For personal use only • Bailador invested $33m cash in new and follow on investments in FY23 their 5-year average1 20x 18.7x FY24 OUTLOOK • Despite a rebound in the first half of CY23, 18x 18.4x average te
Slide 27: Bailador has generated solid investor returns over the medium-term
Bailador has generated solid investor returns over the medium-term For personal use only Returns as at 31 July 2023 1-yr 2-yr 3-yr Portfolio Return post-tax (%pa)1 3.8% 13.0% 14.8% APPENDIX Shareholder Return (%pa)2 -2.7% 7.7% 18.6% Benchmark S&P/ASX All-Tech Index 17.2% -4.1% 5.3% Performance vs Be
Slide 28: 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 • Bailador is measuring, managing and mitigating carbon emissions we are directly responsible for For personal use only • In FY23, Bailador achieved the fol
Slide 29: Bailador integrates ESG principles across the investment cycle
Bailador integrates ESG principles across the investment cycle Screening and ü Bailador undertakes a high-level assessment of carbon intensity of potential qualification investments For personal use only ü Bailador considers high carbon intensity companies (e.g. data centres and bitcoin mining) to h
Slide 30: 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 30
Slide 31: 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 32: 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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