18 slides from Epe Capital Partners Ltd. Class A's investor presentation, Jul 6, 2020
Slide 1: Update for Investors
UPDATE FOR INVESTORS 6 July 2020
Slide 2: Contents
1 Introduction CONTENTS 2 COVID-19 response 3 Portfolio update 4 Valuation overview 2
Slide 3: Overview of the last six months and outlook
1 Overview of the last six months and outlook Extremely difficult operating environment has continued: economic activity has declined substantially in the wake of severe lockdown initiatives, low confidence and productivity levels and weak private sector investment Performance and outlook COVID-19 c
Slide 4: Contents
1 Introduction CONTENTS 2 COVID-19 response 3 Portfolio update 4 Valuation overview 4
Slide 5: COVID-19 response: What have we done?
2 COVID-19 response: What have we done? Key focus on business continuity, liquidity requirements, cost-saving initiatives, solvency and engagement with lending banks WEEK ONE: WEEK TWO: WEEK THREE+: BUSINESS CONTINUITY PLANS LIQUIDITY STRESS-TESTING LENDERS & EXITING LOCKDOWN Portfolio companies ass
Slide 6: COVID-19 response: What are we focusing on over the next quarter?
2 COVID-19 response: What are we focusing on over the next quarter? Focus has shifted to exiting lockdown and resetting balance sheets & management incentives to ensure long-term sustainability WEEK FOUR+: HOW WAS THE PORTFOLIO POSITIONED PRE-COVID AND PREPARING FOR THE ‘NEW NORMAL’ HOW HAS IT BEEN
Slide 7: Contents
1 Introduction CONTENTS 2 COVID-19 response 3 Portfolio update 4 Valuation overview 7
Slide 8: Portfolio update: Total assets contribution at March 2020
3 Total assets contribution at 31 March 2020 Portfolio company updates in the following slides focus on the eight largest contributors (82% of total assets) 9% 28% Portfolio update 53% 38% 82% of total assets South Africa 13% Rest of sub-Saharan Africa International 9% 9% 7% 6% 5% 5% 5% 4% 1% 1% 1%
Slide 9: Portfolio update: Channel VAS
3 Portfolio update: Channel VAS Channel VAS has continued to perform strongly with FX devaluation being the biggest risk Date of investment Oct 2018 % of EC Invested Capital 28% Total Ethos ownership 20.0% Current valuation R523m / 1.43x TMB EC Invested Capital R388m L9M Return +R112m Strong growth
Slide 10: Portfolio update: Vertice and Synerlytic
3 Portfolio update Date of investment May 2018 % of EC Invested Capital 7% Date of investment Apr 2019 % of EC Invested Capital 6% Total Ethos ownership 86.3% Current valuation R135m / 1.20x TMB Total Ethos ownership 95.0% Current valuation R109m / 1.20x TMB EC Invested Capital R112m L9M Return +R20
Slide 11: Portfolio update: Virgin Active
3 Portfolio update: Virgin Active Virgin Active has been significantly impacted by COVID-19 however gyms have started to reopen in Italy and Asia Pacific Date of investment Feb 2020 % of EC Invested Capital 13% Total Ethos ownership 10.1% Current valuation R246m / 0.42x EC Invested Capital R583m Val
Slide 12: Portfolio update: Echo
3 Portfolio update: Echo Echo continues to deliver good performance with growth of its services across select SSA countries remaining the key strategic focus Date of investment Feb 2018 % of EC Invested Capital 9% Total Ethos ownership 63.8% Current valuation R164m / 1.03x TMB EC Invested Capital R1
Slide 13: Portfolio update: Premier
3 Portfolio update: Premier Premier has benefited from increased sales across its major categories, with strong growth continuing into the new financial year Date of investment Feb 2020 % of EC Invested Capital 9% Total Ethos ownership 12.6% Current valuation R159m / 0.53x EC Invested Capital R298m
Slide 14: Portfolio update: Kevro and Primedia
3 Portfolio update Date of investment Oct 2017 % of EC Invested Capital 5% Date of investment Dec 2017 % of EC Invested Capital 5% Total Ethos ownership 29.4% Current valuation R102m / 0.57x TMB Total Ethos ownership 24.2% Current valuation R84m / 0.56x TMB EC Invested Capital R185m L9M Return -R101
Slide 15: Contents
1 Introduction CONTENTS 2 COVID-19 response 3 Portfolio update 4 Valuation overview 15
Slide 16: Valuation overview: Key metrics
4 Valuation overview: Key metrics Pro forma at 31 December 2020 – adjusted for Rights Issue and Brait investment Capital Invested EV / EBITDA # of Portfolio Ethos Capital all-in Ethos Capital (unlisted) Companies Brait entry price NAVPS Valuation overview R2.7bn 7.4x 24 R7.99 R9.94 COVID-19 PANDEMIC
Slide 17: Movement in portfolio valuation in quarter ended March 2020
4 Movement in portfolio valuation in quarter ended 31 March 2020 COVID-related devaluations of c.R831m Valuation overview Unlisted portfolio ↓17% Brait portfolio ↓ 54% 17
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 A LIMITED PARTNERSHIP INTEREST IN ANY ETHOS FUNDS.