Oakley Capital Investments Ltd Registered · LSE:OCI
Oakley Capital Investments Ltd Registered — Oakley Capital Investments — FY2019 Earnings Presentation
43 slides from Oakley Capital Investments Ltd Registered's earnings presentation, 2020
Slide 1: Results Presentation FY2019
RESULTS PRESENTATION FY2019
Slide 2: Another year of progress
Another year of progress Portfolio highlights OCI highlights ▪ Fair value of the underlying portfolio ▪ Listing move to the Specialist Fund Segment companies grew by 24% on a LFL basis (“SFS”) of the London Stock Exchange’s Main ▪ Two realisations at a combined 97% Market premium to the prevailing b
Slide 3: Market-leading returns
Market-leading returns Performance for the 12 months ending 31 December 2019 Net Asset Value NAV per share Total NAV return £686m 345p 25% NAV per share and dividend 4.00 3.50 3.00 2.50 £ 2.00 1.50 1.00 0.50 0.00 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec
Slide 4: Oakley Fund commitment drives NAV growth
Oakley Fund commitment drives NAV growth £686m NAV by investment type Cash/other assets Oakley Fund investment £420m & liabilities 4% 211p per share Cash/other Cash/other assets assets && 25% IRR liabilities liabilities 15% 15% Debt Equity Direct investment £127m £114m Direct Co-investment investmen
Slide 5: A balanced portfolio across three distinct sectors
Fund Investment A balanced portfolio across three distinct sectors Alessi Seven Miles £7.5m £23.3m North Sails Inspired £33.0m £92.3m Facile EDUCATION £35.3m Casa & atHome Career Partner Group £40.0m £59.2m CONSUMER Time Out Schülerhilfe £76.2m £47.1m Contabo Seagull & Videotel £4.9m £19.3m Daisy AM
Slide 6: A Western Europe focused portfolio
Fund Investment A Western Europe focused portfolio Oakley offices Seagull & Videotel TechInsights CPG Schülerhilfe Inspired Contabo Daisy Time Out Seven Miles North Sails AMOS Ekon Facile WebPros Casa & atHome Alessi Portfolio Company Headquarters NAV FX exposure Consumer € 48% TMT £ 18% Education $
Slide 7: High growth, conservative debt, modest valuations
Fund Investment High growth, conservative debt, modest valuations Portfolio analysis Portfolio Company Portfolio Company Portfolio Company EBITDA growth(1) Net debt/EBITDA(2) EV/EBITDA(3) 8 8 44% 8 47% 7 47% 7 38% 7 6 6 6 No. of Companies 33% No. of Companies No. of Companies 5 5 5 4 27% 4 4 19% 20%
Slide 8: Portfolio activity
Fund Investment Portfolio activity Investments and realisations in 2019 Investment Investment Investment Investment Investment Re-investment £18m £20m £8m £23m £5m £44m Investments (1) February April June August November March May July September October December Realisations Refinancing Refinancing
Slide 9: Sourcing high quality companies at attractive valuations
Fund Investment Sourcing high quality companies at attractive valuations £103m invested in 2019 EV/EBITDA 13.1x 9.7x c.€100m est. EBITDA Year three €605m EV at acquisition 2019 signed investments Peer group average OAKLEY CAPITAL INVESTMENTS 8
Slide 10: Direct Investments
Direct Investment Direct Investments Equity Debt Where attractive to do so, OCI takes direct equity stakes in If OCI has appropriate cash levels, it will consider providing debt portfolio companies when an Oakley Fund can no longer make instruments to the portfolio companies if the returns are appro
Slide 11: Conservative cover but avoiding excessive drag
Cash / other assets & liabilities Conservative cover but avoiding excessive drag Net cash as a % of NAV 120% 100% 97% 80% 60% 56% 40% 33% 32% 26% 24% 24% 23% 22% 22% 18% 20% 16% 2% 3% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mar-20 OAKLEY CAPITAL INVESTMENTS 10
Slide 12: OCI reserves provide sufficient cover for its commitments
Cash / other assets & liabilities OCI reserves provide sufficient cover for its commitments Cash and outstanding OCI fund commitments 350 £313m 300 £287m 250 Cash Mar-20 200 £160m £m 150 Cash Dec-19 £102m 100 £12m Direct £127m 50 debt £90m £11m £2m 0 Fund I Fund II Fund III Fund IV Cash Cash&+ direc
Slide 13: Outlook
Outlook Profit growth, combined with exits above book value will continue to drive returns Existing portfolio ▪ Trading strength of the underlying portfolio companies has continued into 2020 ▪ Further realisations expected in the year ▪ Oakley Capital is closely monitoring the impact of COVID-19 and
Slide 14: Oakley Capital Private Equity
OAKLEY CAPITAL PRIVATE EQUITY
Slide 15: Proven strategy based on a clear investment focus
Proven strategy based on a clear investment focus MID MARKET FOCUS WESTERN EUROPE FOCUS PERFORMANCE €100m-400m 3.6x Enterprise Realised value returns ▪ Attractive bracket of sector champions ▪ Regions and countries with strong ▪ Realised returns of 3.6x and with hidden pockets of value entrepreneuri
Slide 16: Origination strategy creates unique investment opportunities
Origination strategy creates unique investment opportunities OAKLEY ADVANTAGE >75% Uncontested Deals Repeat partnerships Proactive sector Complex investment with a network of Screening situations business founders >90% First PE investor ▪ Entrepreneur heritage ▪ Top-down targeting with ▪ Experience
Slide 17: Value creation model delivers strong growth
Value creation model delivers strong growth EBITDA GROWTH(1) 1 BUY & BUILD Scale and synergies through ENTREPRENEURIAL PARTNERSHIPS value accretive acquisitions 30% 2 BUSINESS TRANSFORMATION Creating platforms for sustainable growth Average EBITDA growth(1) 3 GROWTH ACCELERATION Investing in emergin
Slide 18: Repeat partnerships with a growing family of entrepreneurs
Repeat partnerships with a growing family of entrepreneurs MATTHEW THOMAS STROHE NADIM OAKLEY RILEY & JOCHEN BERGER NSOULI ADVANTAGE ▪ Founder and CEO of Daisy & ▪ Founded Inspired in 2013 Executive Chair of Damovo ▪ Previously a Partner at Providence ▪ Award-winning entrepreneur ▪ Founded intergeni
Slide 19: Consistently exceeding our target returns
Consistently exceeding our target returns MM & IRR EXITED DEALS TMT Consumer Education STRONG TRACK RECORD 140% WebPros 120% Parship Elite Group 3.6x Gross realised money Emesa 100% multiple Daisy plc 80% Verivox I 48% 60% Gross IRR Facile.it Damovo Intergenia II Host Europe Verivox II Gross realise
Slide 20: A virtuous investment circle proven to deliver consistent returns
A virtuous investment circle proven to deliver consistent returns 1 Growing family of Oakley entrepreneurs & managers 5 Exceptional 2 Proprietary returns across sourcing channels Oakley funds and capabilities 4 De-risking 3 Deep sector & complex geographic deals expertise in Oakley team and network
Slide 21: COVID-19 Response & Portfolio Company Overview
COVID-19 RESPONSE & PORTFOLIO COMPANY OVERVIEW
Slide 22: COVID-19 response
COVID-19 response Portfolio Companies ▪ Ensure the Company’s ▪ Ensure team can remain ▪ Assess risks and respond to liquidity and flexibility to operational and well-informed changing circumstances support commitments to Priority Oakley Funds and direct investments ▪ Maintain strong cash balances ▪
Slide 23: Oakley portfolio company contingency planning process
Oakley portfolio company contingency planning process ENSURING FINANCIAL RESILIENCE PROTECTING EMPLOYEES AND CUSTOMERS ▪ Defining range of scenarios with relevant contingency ▪ Internal and external communications plans in place measures ▪ Home working plans in place & stress tested ▪ Detailed cash
Slide 24: TMT – Portfolio companies
TMT – Portfolio companies Global leading SaaS platform for server Global leader in patent services and management advanced technology intelligence COUNTRY: OPPORTUNITY: COUNTRY: OPPORTUNITY: Switzerland/USA Partnering with proven entrepreneurs to Canada Leveraging TechInsights' extensive, proprietar
Slide 25: TMT – Portfolio companies
TMT – Portfolio companies A leading Spanish provider of Cloud hosting platform used for webhosting, Enterprise Resource Planning software Development and storage. COUNTRY: OPPORTUNITY: COUNTRY: OPPORTUNITY: Spain With a leading cloud product and positioning as Germany Known in the market for its tec
Slide 26: Consumer – Portfolio companies
Consumer – Portfolio companies Leading real estate classifieds portals in Italy Italy’s leading online price and Luxembourg comparison platform OPPORTUNITY: COUNTRY: OPPORTUNITY: COUNTRY: Italy Realising synergies through integration of Italy As market leader, Facile is well-positioned to take asset
Slide 27: Consumer – Portfolio companies
Consumer – Portfolio companies Global market leading high-performance Leading consumer technology company in marine and sailing group the gift voucher and B2B gift card sector. COUNTRY: OPPORTUNITY: COUNTRY: OPPORTUNITY: USA A chance to consolidate the leading marine Germany Rapidly growing business
Slide 28: Education – Portfolio companies
Education – Portfolio companies CPG is one of the fastest growing private #1 provider of after-school tutoring in university groups in Germany Germany COUNTRY: OPPORTUNITY: COUNTRY: OPPORTUNITY: Germany Supporting the continual development of one of Germany The leading after school tutoring provider
Slide 29: Education – Portfolio companies
Education – Portfolio companies One of the leading premium private Joint global leaders in the regulated schools groups globally maritime e-learning market COUNTRY: OPPORTUNITY: COUNTRY: OPPORTUNITY: UK Supporting one of the world’s fastest growing Norway/UK A chance to combine the two market leader
Slide 30: Appendix 1: Governance Programme
APPENDIX 1 GOVERNANCE PROGRAMME
Slide 31: Governance programme (1)
Governance programme (1) Topic Status Comment Prevent NAV dilution “Going forward the Board does not intend to issue equity or sell stock from treasury at a discount to NAV” Message repeated in three public announcements, reiterated in 2018 full year report Alignment of interest OCI Board and Oakley
Slide 32: Governance programme (2)
Governance programme (2) Topic Status Comment Share liquidity & Since start of IR programme in 2017, 75% of the register has traded shareholder concentration Avg daily volume: 717k (+85% YoY) Top ten shareholders: 71% (2019), 80% (2018), 91% (2017) Gold standard listing Listing moved to the Speciali
Slide 33: Protecting and creating long-term investment value
Protecting and creating long-term investment value Environmental, Social & Governance Oakley’s core ESG principles include: ▪ Integrate ESG considerations into all stages of the investment process ▪ Encourage portfolio companies to consider and mitigate the ESG impact of their operations ▪ Seek cont
Slide 34: Appendix 2: Fees
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Slide 35: Fees
Fees Oakley Funds On commitment for a 5 year period post Fund inception; Management fee 2% thereafter 2% on capital invested Performance fee 20% On returns above a 8% pa hurdle rate Direct equity investment Management fee 2% On equity investments held directly by OCI OCI makes direct equity investme
Slide 36: Appendix 3: Fund Structure & the Investment Team
APPENDIX 3 FUND STRUCTURE & THE INVESTMENT TEAM
Slide 37: Oakley Capital Investments (OCI)
Oakley Capital Investments (OCI) Total capital L.P.s Oakley Capital Investments committed €2bn €1.1bn Equity and debt direct investments Oakley Funds (I, II, III & IV) Private equity Funds Portfolio Companies Investment Adviser OAKLEY CAPITAL INVESTMENTS 36
Slide 38: Structure
Structure The Administrative Agent The Company The Investment Adviser Oakley Capital Oakley Capital Investments Oakley Capital Manager Limited Limited Limited About OCML About OCI About OCL Oakley Capital Manager Limited (the OCI is a closed-e nded investment company Oakley Capital Limited (“Oakley”
Slide 39: Leadership team of experienced investment and operational professionals
Leadership team of experienced investment and operational professionals… Peter Dubens David Till Alex Collins David Brickell Managing Partner Senior Partner Partner Partner Joined Oakley: at inception Joined Oakley: at inception Joined Oakley: September 2007 Joined Oakley: September 2013 ▪ >20 years
Slide 40: Appendix 4: Underlying Portfolio Company Valuations
APPENDIX 4 UNDERLYING PORTFOLIO COMPAY VALUATIONS
Slide 41: Overview of OCI's underlying investments
Overview of OCI’s underlying investments Fund Investments Sector Location Year of Investment Residual Cost Fair Value Fund I Time Out Consumer Global 2010 £48.3m £37.7m OCI's proportionate allocation of Fund I investments (on a look-through basis) £37.7m Other assets and liabilities £(4.3)m Fund I O
Slide 42: 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 m ay any of its contents be disclosed to any third party without the prior written consent of Oakley Capital Limited, is for information
Slide 43: Mintflower Place, 3 rd Floor 8 Par-la-Ville Road Hamilton
Mintflower Place, 3rd Floor 8 Par-la-Ville Road Hamilton HM08 Bermuda T: +44 (0) 20 7766 6900 E: investorrelations@oakleycapital.com
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