Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — ASX Small and Mid-Cap Conference 2023
19 slides from Bailador Technology Investments's conference presentation, Sep 20, 2023
Slide 1: A Smart Approach to Technology Investment
For personal use only A Smart Approach to Technology Investment ASX Small and Mid-Cap Conference 20 September 2023 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: 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. 2
Slide 3: Bailador profile
Bailador profile Bailador is an Expansion Capital Fund For personal use only Specialist in Invests in Portfolio of Information Technology Private Companies 8-12 Investments Actively managed by an Track record of Returns from Experienced Team Strong Performance & Capital Gains & Cash Realisations Cas
Slide 4: Bailador has delivered a 103% total cumulative return since 1 July 2020
Bailador has delivered a 103% total cumulative return since 1 July 2020 – through a combination of capital growth and fully-franked dividends1 For personal use only +103% Share price + Dividends2 + Franking credits +95% Share price + Dividends2 +78% Share price BTI BTI Outperformed Outperformed ASX
Slide 5: The Information Technology sector provides opportunities for premium returns
The Information Technology sector provides opportunities for premium returns • Technology continues to evolve rapidly, creating opportunities For personal use only • Australian tech companies can address global markets, achieving high growth • High quality economics of tech companies – don’t need a
Slide 6: The SaaS model has attractive investment characteristics
The Software-as-a-Service (SaaS) model has attractive investment characteristics – and enables global reach from anywhere in the world SAAS CHARACTERISTICS AUS/NZ SAAS EXAMPLES For personal use only • Build one software platform Market cap • Sell it thousands of times on subscription model • Recurri
Slide 7: Bailador invests in high growth technology companies
Bailador invests in high growth technology companies – Favouring SaaS, Digital Healthcare and Marketplace models Digital For personal use only SaaS Marketplace Healthcare 81% 15% 4% Note: Percentage of BTI portfolio value as at 31 August 2023. 7
Slide 8: Expansion-stage investing has the most attractive risk/reward balance
Expansion-stage investing has the most attractive risk/reward balance Less For personal use only upside GROWTH Higher risk EARLY STAGE EXPANSION MATURITY STAGE TIME Allows access at attractive valuations before available directly to the public 8
Slide 9: Bailador invests at the Expansion Stage
Bailador invests at the Expansion Stage PRIVATE COMPANIES For personal use only $5 - $50M REVENUE PROVEN BUSINESS MODEL PARTNER WITH FOUNDERS GLOBALLY ADDRESSABLE MARKETS MINORITY INVESTMENTS TYPICALLY WITH REPRESENTATION ACCESS NOT READILY AVAILABLE TO MOST 9
Slide 10: Our business model is designed to generate cash realisations
Our business model is designed to generate cash realisations that are a multiple of investment cost For personal use only INVESTING GROWING REALISING Diligence hundreds Partner with Prepare businesses of opportunities to management to for sale or IPO select the best scale globally 10
Slide 11: Cash realisation: $118m cash at 80% IRR
– in May 2022 delivered $118m cash at 80% IRR $8.4m $118.4m 80% 87% For personal use only cash invested cash realised IRR uplift at cash realisation Business Overview Investment Thesis • Database management platform • Huge Addressable Market with multiple tailwinds – big • Exceptional Unit Economics
Slide 12: Cash realisation: $52m cash at 62% IRR
– in July 2023 delivered $52m cash at 62% IRR $30.2m $52.1m 62% 25% For personal use only cash invested cash realised IRR uplift at cash realisation Business Overview Investment Thesis • Digital health platform • Compelling product market fit – loved by customers • Scripting and video consult • Impr
Slide 13: Returns generated by share price growth, dividends and franking credits
Returns generated by share price growth, as well as distribution of dividends and franking credits Value of $100,000 Investment Cumulative Return1 BTI For personal use only $280,000 $260,000 103% cumulative return since $240,000 1 July 2020 $220,000 $203k (+103%) Share Price + Dividends2 + Franking
Slide 14: Ongoing fully franked cash dividend
Ongoing fully franked cash dividend For personal use only BTI Grossed Up Yield1 7.4% p.a. Bailador has committed to paying a Sustainable long term dividend of 4% of NTA (pre-tax) p.a. → Current franking credits support over → Paid half yearly six years of dividend at current rate → Fully franked → C
Slide 15: Track record of valuing private investments conservatively
Bailador has a well-established track record of valuing its private investments conservatively – and outperforming those valuations with cash realisations For personal use only 12 cash realisations → All 12 realisations above carrying value (full and partial) → Average 39% uplift to carrying value a
Slide 16: Investors can access the BTI portfolio at an attractive price
Investors are currently able to access the BTI portfolio at an attractive price NTA/share at 31-August-23 For personal use only $1.77 (pre-tax) / $1.65 (post-tax) $1.80 $1.60 Investors currently get Net Cash exposure to $102m of cash $1.40 $0.71 •BTI share price = $1.255 at an implied cost of $27m $
Slide 17: 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. 17
Slide 18: Disclaimer
Disclaimer This presentation is confidential and may not be reproduced in whole or in part, or distributed except by Bailador Technology Investment Ltd (“Bailador”) or by authorized representatives of Bailador (“Affiliates”). For personal use only This presentation does not contain a complete descri
Slide 19: 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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