Epe Capital Partners Ltd. Class A · JSE:EPE
Epe Capital Partners Ltd. Class A — Ethos Capital — H1 2018 Earnings Presentation
12 slides from Epe Capital Partners Ltd. Class A's earnings presentation, March 2018
Slide 1: Ethos Capital Investor Presentation March 2018
E T H O S C A P I TA L I N V E S T O R P R E S E N TAT I O N March 2018
Slide 2: Ethos Capital market update
2 Ethos Capital market update General market outlook Outlook for Ethos Capital Outlook for market conditions and business / Invested Capital was 39% of NAV as at December 2017 consumer sentiment turned positive post December MTN, Kevro closed in July and October, Tough 2H2017 for most Portfolio Comp
Slide 3: Portfolio Company diversification
Portfolio Company diversification Note: size of bubble representative of Ethos Capital’s economic interest in the Portfolio Companies © Ethos | 3
Slide 4: Portfolio overview
4 Portfolio overview 1 NAV overview (NAVPS) 2 Portfolio composition per share (NAVPS) 0,03 % of NAV % of NAV Discount to NAV 0,16 10,76 39% 41% 0,06 0,29 0,03 21% 4,10 4,29 NAV 10,37 R10.76 8,49 6,66 6,47 30 June 2017 Temporary Invested Share Expenses & tax Ethos fees 31 December Investment Portfoli
Slide 5: Ethos Capital NAV analysis
5 Ethos Capital NAV analysis Ethos Capital valuation and Portfolio Companies’ average discount to 1 peer group companies 2 Portfolio EBITDA contribution (excluding MTN Zakhele Futhi) 8,0x Primedia 41% 33,6% 6,9x 7,0x Kevro 28,7% 6,0x Eazi Access 11,7% 5,0x Autozone 10,8% Attributable EBITDA 4,0x 21%
Slide 6: Ethos funds - risk reward frontier
6 Ethos funds - risk reward frontier 1 Risk reward frontier – fund view 2 4 Ethos Capital fund commitments Buyout Fund (Fund VI and Fund VII) Mid Market Fund Return Commitment Commitment Fund VI US$10m (1.4% of total fund) R900m (c.49% of total fund) Fund VII R1.25bn first close commitment Dra
Slide 7: Buyout Fund VI
7 Fund Size – US$805m Vintage – 2012 Strategy – large buyouts in SA and rest of SSA Buyout Fund VI 1 Fund parameters 2 Buyout funds in-cost analysis and funding structure Fund size Debt Equity Final close in 2012 9.5x 9.2x US$805 million fund size 8.9x Deal specifics 7.2x 1,7x Companies with a
Slide 8: Mid Market Fund I
8 Fund Size – R2.0bn Vintage – 2016 Mid Market Fund I Strategy – mid-size buyout transactions in SA (BEE fund) 1 Fund parameters 2 Valuation of the EMMF portfolio Facilitated & secondary BEE Mid Market LBO Buyout Fund co-investment 6,8x and Special Opportunities IRR TARGET >25% >25% 25%-35% INVESTME
Slide 9: Mezzanine Fund
9 Fund Size – US$150m Vintage – first close Q2 2018 Mezzanine Fund Strategy – mezzanine growth capital in SSA and SA 1 Fund parameters 2 Ethos Capital commitments and fund pipeline Stage 1 800 Established middle- and later-stage business, proven FCF generation-capability, CSF / competitive advanta
Slide 10: Ethos Healthcare Vehicle
10 Fund Size – R2.0 to 3.0bn Vintage – First close Q2 2018 Strategy – investment into healthcare companies in SA and SSA Principals – Michael Flemming, Jonathan Lowick Ethos Healthcare Vehicle 1 The investment thesis 2 Key differentiators 3 Platform structure Matching the need for growth capital and
Slide 11: Ethos AI Fund
11 Fund Size – R750 to 1,000m Vintage – Not launched yet Strategy – co-investment alongside Ethos funds in business Ethos AI Fund which can benefit from implementation of AI technologies Principals – Roger Grobler, Nic Kohler 1 The investment thesis 2 Sector focus 3 Activities that AI will impact Di
Slide 12: Investment pipeline and liquidity analysis
12 Investment pipeline and liquidity analysis 1 Overview of the investment pipeline (Ethos Capital investment in Rm) 2 Proforma Invested NAV 120 Fund VI Direct 286 1 118 Mid Market Fund Healthcare Platform Mezzanine Fund 100 102 80 730 60 40 20 - Current Invested NAV Signed transactions Exclusive Pr