Oakley Capital Investments Ltd Registered · LSE:OCI
Oakley Capital Investments Ltd Registered — Oakley Capital Investments — Investor Day (2020)
69 slides from Oakley Capital Investments Ltd Registered's investor day presentation, 2020
Slide 1: Capital Markets Event 2020
Ce Oakley Capital Investments Y = ‘= Z
Slide 2: Agenda
Agenda Introduction & OCI H1 Review Steven Tredget Strategic Update Rebecca Gibson Technology Sector Overview Arthur Mornington Consumer Sector Overview Alex Collins & Ralf Schremper Education Sector Overview Ralf Schremper Question & Answer Oakley Partners & OCI Board Members OAKLEY CAPITAL INVESTM
Slide 3: OCI H1 Review
OCI H1 REVIEW STEVEN TREDGET
Slide 4: Resilient performance despite COVID-19 disruption
Resilient performance despite COVID-19 disruption H1 Highlights PERFORMANCE QUALITY & VALUE LIQUIDITY +4% Total NAV return since 31 December 2019 11.8x EV/EBITDA £261m Cash balance at 30 June 2020 OAKLEY CAPITAL INVESTMENTS 4
Slide 5: Financial highlights
Financial highlights Performance for the six months ending 30 June 2020 Share price(1) NAV per share NAV per share growth £ 226p 356p 11p Market Capitalisation(1) Net Asset Value Dividend per share £439m £ 691m 2.25p (1) As at 29 July 2020 OAKLEY CAPITAL INVESTMENTS 5
Slide 6: Long-term outperformance
Long-term outperformance 156% 10-year total NAV return NAV per share growth 4.00 3.50 3.00 2.50 £ 2.00 1.50 1.00 0.50 0.00 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 NAV per share OAKLEY CAPITAL INVESTMENTS 6
Slide 7: Oakley Fund commitment drives NAV growth
Oakley Fund commitment drives NAV growth £691m NAV by investment type Oakley Fund investment £280m 144p per share Cash/other Cash/other assets assets && 24% IRR liabilities liabilities Cash/other 15% 15% assets Oakley Fund Debt Equity & liabilities Investment Direct investment £124m £26m 38% 40% Co-
Slide 8: OCI reserves provide sufficient cover
OCI reserves provide sufficient cover Cash and outstanding OCI fund commitments 400 £385m 350 £336m 300 250 Cash £261m £m 200 150 £110m 100 £20m £68m Direct 50 £124m £80m debt £12m £3m 0 Fund I Fund II Fund III Fund IV Origin Fund Cash & direct debt Commitments not currently expected to be drawn OAK
Slide 9: A balanced portfolio across three distinct sectors
A balanced portfolio across three distinct sectors Daisy Contabo £10.0m £5.3m TechInsights Career Partner Group TECHNOLOGY Ekon £15.9m £61.3m £18.4m EDUCATION WebPros £46.3m Schülerhilfe £46.8m Iconic BrandCo(1) £16.2m Ocean Technologies Group Seven Miles £23.3m £25.1m AMOS £12.5m Casa & atHome £27.
Slide 10: Continued growth, conservative debt, modest valuations
Continued growth, conservative debt, modest valuations Portfolio analysis 17.5% Avg annual EBITDA Growth(1) 3.5x Avg Net Debt/EBITDA(2) 11.8x Avg Valuation Multiple(3) Portfolio Company Portfolio Company Portfolio Company EBITDA growth(1) Net debt / EBITDA(2) EV/EBITDA(3) 7 6 7 40% 40% 43% 33% 6 5 6
Slide 11: COVID-19 impact on portfolio companies
12 of 15 companies expected to end the year at or near budget COVID-19 impact TRADING UNIMPACTED SOME SHORT-TERM SIGNIFICANTLY IMPACTED OR BENEFITTING DISRUPTION BY LOCKDOWN 23% of NAV 27% of NAV 28% of NAV Note: The balance of NAV assets are cash and other liabilities (+38%) and fund assets and lia
Slide 12: Resilient performance despite COVID-19 disruption
Resilient performance despite COVID-19 disruption PERFORMANCE QUALITY & VALUE LIQUIDITY OAKLEY CAPITAL INVESTMENTS 12
Slide 13: Strategic Update
STRATEGIC UPDATE REBECCA GIBSON
Slide 14: Oakley operating post COVID-19
Oakley operating post COVID-19 ▪ Operating in a COVID-19 world ▪ Investment strategy update ▪ Sourcing outlook OAKLEY CAPITAL INVESTMENTS 14
Slide 15: Active and engaged response throughout COVID
Active and engaged response throughout COVID Oakley’s COVID response Welfare of team & Liquidity & Outlook for FY20 Monitor performance remote working balance sheet & beyond post-lockdown preparation stability The ‘new normal’ All Oakley Team Phased return to working from offices from July home Febr
Slide 16: Summary dashboards to monitor and manage portfolio
Summary dashboards to monitor and manage portfolio Oakley’s COVID response OAKLEY CAPITAL INVESTMENTS 16
Slide 17: Proven strategy based on clear investment focus
Proven strategy based on clear investment focus MID MARKET FOCUS WESTERN EUROPE FOCUS CORE SECTOR FOCUS Technology Education up to €400m Enterprise value Consumer COMPLEXITY PRIMARY DEALS REPEAT PLAYS 94% Primary investments OAKLEY CAPITAL INVESTMENTS 17
Slide 18: The strategy drives portfolio construction with common characteristics
The strategy drives portfolio construction with many common characteristics ▪ Tech-enabled, digital DEBT ▪ Little / no leverage business models EQUITY ▪ Recurring or ▪ Opportunity for buy & subscription revenues build ▪ Founder-led deals / ▪ High growth potential Carve-outs OAKLEY CAPITAL INVESTMENT
Slide 19: Which has delivered top-performing funds
Which has delivered top-performing funds Fund II Fund III As at 30 June 2020 2013 2016 Total Realised: Gross MM and IRR 3.1x / 59% 6.9x / 152% Overall: Gross MM and IRR 2.4x / 38% 2.4x / 48% Overall: Net MM and IRR 1.9x / 29% 2.1x / 42% Cambridge Associates Top Quartile Cambridge Associates Top 5% B
Slide 20: Success of progressively larger funds creates opportunity for Origin Fund
Success of progressively larger funds creates opportunity for Origin Fund Fund Fund I Fund II Fund III Fund IV Vintage year 2007 2013 2016 2019 Fund size (€m) Equity ticket range (€m) 1,600 1600 200 20 €1,460m 180 18 1,400 1400 160 16 1,200 1200 140 14 1,000 1000 Fund size 120 12 €800m (€m) 800 800
Slide 21: Single Oakley strategy & sourcing platform provides deals for both funds
Single Oakley strategy & sourcing platform provides deals for both funds OAKLEY PLATFORM SOURCING: SOURCING: OAKLEY BACKED SECTOR DEEP ENTREPRENEURS & MANAGERS 500+ DIVES & MAPPING high-quality OCI opportunities OCI expected to be €400m reviewed p.a. €75m commitment commitment OC FUND IV ORIGIN FUND
Slide 22: Current sourcing model is already delivering deal flow
Current sourcing model is already delivering deal flow Illustrative Example: DACH Software , OAKLEY CAPITAL INVESTMENTS 22
Slide 23: Q3 lowest level of deal activity in the past 5 years
Q3 lowest level of deal activity in the past 5 years NEW INVESTMENT ACTIVITY HAS DROPPED … BUT HISTORICAL DATA SUGGESTS FUTURE OFF … VINTAGES COULD PRESENT HIGHLY ATTRACTIVE INVESTMENT OPPORTUNITIES No. of Deals by quarter Private Equity returns by vintage year Net IRR Bps 800 25% 3,500 700 679 3,00
Slide 24: Systematic screening of opportunities post COVID-19
Systematic screening of opportunities – including specific situations emerging post COVID-19 Stressed sector champions Core Oakley Sectors Distressed Fund corporate liquidity carve-outs issues OAKLEY CAPITAL INVESTMENTS 24
Slide 25: Consistently investing and returning capital
2019 into 2020: Consistently investing and returning capital OCI commitment Fund IV Closed to Origin Fund €1.46bn €75m Partial Exit Partial sale Exit Refinancing sell down Refinancing Refinancing 6.9x/152% atHome 2.7x/43% Realisations €761m Total proceeds 2019 2020 July September November January Ma
Slide 26: Oakley is well positioned for the future
Oakley is well positioned for the future ▪ Oakley adapted well to lockdown, providing intense support to the portfolio ▪ COVID-19 has shown Oakley’s strategy can deliver growth and value through the cycle ▪ Continued focus within sectors on tech-enabled services and digital platforms ▪ Oakley is wel
Slide 27: Technology Sector
TECHNOLOGY SECTOR ARTHUR MORNINGTON
Slide 28: Daisy
Daisy #1 independent UK provider of communications, IT and cloud services OCI LOOK-THROUGH VALUE: (June 2020): EQUITY £10.0m DEBT £16.4m % OF OCI NAV: 4% TOTAL FUND INVESTMENT (to date): €38.9m FUND EQUITY VALUE (inc. distributions): €32.3m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Technology UK July
Slide 29: Daisy: performance and COVID-19 update
Daisy #1 independent UK provider of communications, IT and cloud services PERFORMANCE BUSINESS & COVID-19 UPDATE Divisional Revenue Overview Business update Small to Medium ▪ FY20 revenue broadly in line with prior year, underpinned by Business growth in the SMB Direct and DWS divisions, offset by s
Slide 30: TechInsights
TechInsights Global leader in patent services and advanced technology intelligence OCI LOOK-THROUGH VALUE: (June 2020): £15.9m % OF OCI NAV: 2% TOTAL FUND INVESTMENT (to date): €12.0m(1) FUND EQUITY VALUE (inc. distributions): €64.8m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Technology Canada May 2017
Slide 31: TechInsights: performance and COVID-19 update
TechInsights Global leader in patent services and advanced technology intelligence PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth ($m) Business update CAGR +2% ▪ Management team has been reinforced with a new Chief Revenue Officer and Chief Product Officer, as well as a new software developme
Slide 32: Ekon
Ekon Building the Iberian champion for business software OCI LOOK-THROUGH VALUE: (June 2020): £18.4m % OF OCI NAV: 3% TOTAL FUND INVESTMENT (to date): €49.6m FUND EQUITY VALUE (inc. distributions): €49.6m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Technology Spain June 2019 III BUSINESS DESCRIPTION INV
Slide 33: Ekon: performance and COVID-19 update
Ekon Building the Iberian champion for business software PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update ▪ Significant progress on strategic initiatives: (1) key hires in sales CAGR +3% and marketing, (2) launch of refreshed brand and (3) group reorganisation and office re
Slide 34: Contabo
Contabo A leading global hosting provider for SMEs and developers OCI LOOK-THROUGH VALUE: (June 2020): £5.3m % OF OCI NAV: 1% TOTAL FUND INVESTMENT (to date): €20.4m FUND EQUITY VALUE (inc. distributions): €20.4m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Technology Germany October 2019 IV BUSINESS DES
Slide 35: Contabo: performance and COVID-19 update
Contabo A leading global hosting provider for SMEs and developers PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update ▪ Since acquisition, Contabo has made good progress, both financially and operationally CAGR +41% ▪ Management team strengthened with the handover of managemen
Slide 36: WebPros Group - Plesk & cPanel
WebPros Group - Plesk & cPanel Global leading SaaS platform for web hosting automation Fund III Fund IV OCI LOOK-THROUGH VALUE: (June 2020): Exited €46.3m % OF OCI NAV: Exited 7% TOTAL FUND INVESTMENT (to date): €65.7m €184.7m FUND EQUITY VALUE (inc. distributions): €452.2m €178.3m SECTOR: COUNTRY:
Slide 37: WebPros: proven value creation levers
WebPros Group - Plesk & cPanel Global leading SaaS platform for web hosting automation Proven value creation levers continuing to deliver strong growth through the cycle 1 2 3 SHIFT TO ONLINE PRODUCT DEVELOPMENT REVENUE GROWTH Step change due to COVID-19 Continued expansion of the Continued revenue
Slide 38: WebPros: performance and COVID-19 update
WebPros Group - Plesk & cPanel Global leading SaaS platform for web hosting automation PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth ($m) Business update ▪ WebPros Group has continued its strong performance in 2020. CAGR +14% YTD Jun-20 group revenue and EBITDA is +27% and +42% above prior y
Slide 39: Consumer Sector
CONSUMER SECTOR ALEX COLLINS
Slide 40: Facile
Facile Italy’s leading online price comparison platform OCI LOOK-THROUGH VALUE: (June 2020): £40.6m % OF OCI NAV: 6% TOTAL FUND INVESTMENT (to date): €80.6m FUND EQUITY VALUE (inc. distributions): €116.0m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Consumer Italy June 2018 III BUSINESS DESCRIPTION INVES
Slide 41: Facile: performance and COVID-19 update
Facile Italy’s leading online price comparison platform PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update ▪ Strong financial performance: began the year strongly, with total CAGR +25% revenues and EBITDA both growing c.20% versus prior year before the impact of the crisis in
Slide 42: Casa & atHome
Casa & atHome Online classifieds portals in Italy and Luxembourg OCI LOOK-THROUGH VALUE: (June 2020): £27.8m % OF OCI NAV: 4% TOTAL FUND INVESTMENT (to date): €104.3m FUND EQUITY VALUE (inc. distributions): €154.8m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Consumer Italy / Luxembourg January 2017 III
Slide 43: atHome Group: performance and COVID-19 update
atHome Group Leading real estate & automotive classifieds business in Luxembourg PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update CAGR +13% ▪ Majority stake in the company sold to Mayfair Equity Partners in March 2020 with Oakley retaining a 21% stake ▪ Chairman appointed i
Slide 44: Casa.it: performance and COVID-19 update
Casa.it Challenger real estate classifieds portal in Italy PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update CAGR +4% ▪ Significant increase in agents listing on the portal up by +16% from June 2019 and listings up 10% from June 2019, driven in part by the signing of largest
Slide 45: North Sails
North Sails Market leading high-performance marine and sailing group OCI LOOK-THROUGH VALUE: (June 2020): EQUITY £35.4m DEBT £96.0m % OF OCI NAV: 19% TOTAL FUND INVESTMENT (to date): €121.1m FUND EQUITY VALUE (inc. distributions): €107.6m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Consumer USA March 20
Slide 46: North Sails: performance and COVID-19 update
North Sails Market leading high-performance marine and sailing group NTG PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth ($m) Business update ▪ North Kiteboarding has regained its position as one of the leading CAGR +11% kiteboarding brands ▪ Apparel division grew strongly in 2019 and has rebo
Slide 47: Time Out
Time Out A global media business that enables people to discover the best of a city OCI LOOK-THROUGH VALUE: (June 2020): FUND I £21.6m DIRECT £26.6m % OF OCI NAV: 7% TOTAL FUND INVESTMENT (to date): €95.9m FUND EQUITY VALUE (inc. distributions): £33.8m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Consume
Slide 48: Time Out: performance and COVID-19 update
Time Out A global media business that enables people to discover the best of a city PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (£m) Business update ▪ Time Out placing: completed equity placing in June to raise £47.1 million to support working capital requirements and strengthen CAGR +19%
Slide 49: Alessi
Alessi Italian high-end design factory focused on homeware products OCI LOOK-THROUGH VALUE: (June 2020): £16.2m(1) % OF OCI NAV: 2%(1) TOTAL FUND INVESTMENT (to date): €44.0m(1) FUND EQUITY VALUE (inc. distributions): €43.9m(1) SECTOR: COUNTRY: INVESTMENT DATE: FUND: Consumer Italy August 2019 III B
Slide 50: Alessi: performance and COVID-19 update
Alessi Italian high-end design factory focused on homeware products PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update CAGR -1% ▪ Despite a solid January and February, Q1 20 revenues were down c.30% on prior year as a result of the impact of COVID-19 closing operations in Eur
Slide 51: Globe-Trotter
Globe-Trotter A British luxury luggage brand, known for its distinguished design and construction OCI LOOK-THROUGH VALUE: (June 2020): £16.2m(1) % OF OCI NAV: 2%(1) TOTAL FUND INVESTMENT (to date): €44.0m(1) FUND EQUITY VALUE (inc. distributions): €43.9m(1) SECTOR: COUNTRY: INVESTMENT DATE: FUND: Co
Slide 52: Globe-Trotter: performance and COVID-19 update
Globe-Trotter A British luxury luggage brand, known for its distinguished design and construction PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (£m) Business update ▪ Focus on product innovation and cash conservation ahead of CAGR +4% marketing / brand push following market recovery ▪ Furthe
Slide 53: Seven Miles
Seven Miles Leading consumer technology company in multi-brand gift voucher solutions OCI LOOK-THROUGH VALUE: (June 2020): £25.1m % OF OCI NAV: 4% TOTAL FUND INVESTMENT (to date): €96.6m FUND EQUITY VALUE (inc. distributions): €96.6m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Consumer Germany September
Slide 54: Seven Miles: business model
Seven Miles Leading consumer technology company in multi-brand gift voucher solutions BUSINESS MODEL Retailers +c.100 more retailers Redemption Partners +c.500 more partners 54
Slide 55: Seven Miles: attractions
Seven Miles Leading consumer technology company in multi-brand gift voucher solutions ATTRACTIONS ▪ Significant addressable market: B2C market worth c.€6bn, growing rapidly from low MARKET 15% CAGR penetration levels; B2B market worth further c.€3-4bn with significant white space and fragmented cust
Slide 56: Seven Miles: performance and COVID-19 update
Seven Miles Leading consumer technology company in multi-brand gift voucher solutions PERFORMANCE BUSINESS & COVID-19 UPDATE Voucher Sale Growth (€m)(1) Business update ▪ Progress with professionalisation of business ▪ Hired new CFO, CMO and Head of B2B Sales CAGR +88% ▪ Strong growth in H1 20 (year
Slide 57: Education Sector
EDUCATION SECTOR RALF SCHREMPER
Slide 58: Schülerhilfe
Schülerhilfe #1 provider of after-school tutoring in Germany OCI LOOK-THROUGH VALUE: (June 2020): £46.8m % OF OCI NAV: 7% TOTAL FUND INVESTMENT: €85.9m FUND EQUITY VALUE (inc. distributions): €135.3m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Education Germany July 2017 III BUSINESS DESCRIPTION INVESTM
Slide 59: Schülerhilfe: performance and COVID-19 update
Schülerhilfe #1 provider of after-school tutoring in Germany PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update ▪ YTD financial performance: LTM revenue and EBITDA growth of CAGR +10% 1.8% and 2.5% respectively at May-20 vs. Dec-19 ▪ However ~8.5k enrolments lost vs. budget t
Slide 60: ACE Education (Formerly AMOS)
ACE Education (Formerly AMOS) France’s leading sport business school OCI LOOK-THROUGH VALUE: (June 2020): £12.5m % OF OCI NAV: 2% TOTAL FUND INVESTMENT: €27.7m FUND EQUITY VALUE (inc. distributions): €45.5m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Education France August 2017 III BUSINESS DESCRIPTION
Slide 61: ACE Education: performance and COVID-19 update
ACE Education (Formerly AMOS) France’s leading sport business school PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update ▪ Refinancing: completed a refinancing in October 2019 ▪ Management: former COO appointed as CEO, with founder moving CAGR +57% to Chairman role ▪ Campus ex
Slide 62: Ocean Technologies Group
Ocean Technologies Group Creating a clear market leader in the regulated maritime e-learning market OCI LOOK-THROUGH VALUE: (June 2020): £23.3m % OF OCI NAV: 3% TOTAL FUND INVESTMENT (to date): €89.4m FUND EQUITY VALUE (inc. distributions): €89.8m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Education No
Slide 63: Ocean Technologies Group: performance and COVID-19 update
Ocean Technologies Group Creating a clear market leader in the regulated maritime e-learning market PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth ($m) Business update ▪ Completed integration of the two businesses and progressed CAGR +11% synergy realisation ▪ Strengthened senior team with th
Slide 64: Career Partner Group
Career Partner Group The largest and fastest growing private university group in Germany OCI LOOK-THROUGH VALUE: (June 2020): £61.3m % OF OCI NAV: 9% TOTAL FUND INVESTMENT (to date): €84.6m FUND EQUITY VALUE (inc. distributions): €285.8m SECTOR: COUNTRY: INVESTMENT DATE: FUND: Education Germany Janu
Slide 65: Career Partner Group: growth in student numbers
Career Partner Group The largest and fastest growing private university group in Germany Strong growth in student numbers Driven by disruptive value proposition Intake (#k) Traditional University IUBH 18.6 +52% Research and Customer satisfaction and Main focus: reputation study success 7.5 3.5 Teach
Slide 66: Career Partner Group: performance and COVID-19 update
Career Partner Group The largest and fastest growing private university group in Germany PERFORMANCE BUSINESS & COVID-19 UPDATE Revenue Growth (€m) Business update ▪ Record new course launches (>40) and new dual centre openings (6) in 2019 and further increase expected in 2020 CAGR +37% ▪ Successful
Slide 67: Question & Answer
QUESTION & ANSWER E: investorrelations@oakleycapital.com
Slide 68: Disclaimer and important information
Disclaimer and important information ▪ These presentation materials (the “Presentation”), which is confidential and may not be reproduced in whole or in part, nor may any of its contents be disclosed to any third party without the prior written consent of Oakley Capital Limited, is for information p
Slide 69: Contact details
Mintflower Place 8 Par-la-Ville Road Hamilton HM08 Bermuda T: +44 20 7766 6900 E: investorrelations@oakleycapital.com 69