Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Investor Presentation (November 2016)
36 slides from Bailador Technology Investments's investor presentation, Nov 24, 2016
Slide 1: Bailador Technology Investments Limited November 2016
For personal use only November 2016 Bailador Technology Investments Limited (ASX:BTI) Bailador Technology Investments Limited (ASX:BTI)
Slide 2: Unique exposure to private expansion-stage technology companies
For personal use only Bailador provides investors with unique exposure to a portfolio of private expansion- stage information technology companies with global addressable markets and extensive downside protection. 2
Slide 3: A team of specialist technology investors
A team of specialist technology investors For personal use only David Kirk Paul Wilson Andrea Kowalski James Johnstone Michael Hayes Georgina Brown Co-Founder & Co-Founder & Investment Investment Investment Investment Managing Partner Managing Partner Director Director Manager Manager • Former CEO o
Slide 4: Solid macro drivers underpin the sector's growth
Solid macro drivers underpin the sector’s growth The technology sector has demonstrated sustained growth industry- wide; It’s not a dot.com bubble For personal use only Drivers Impact Changing industry dynamics Digitization of Increased Broadband information computing proliferation New markets, serv
Slide 5: Portfolio Balance
Portfolio Balance The technology sector is well established as a credible portfolio For personal use only allocation Sector Schwab Sector View Share of the S&P 500 Index Information Technology Outperform 21% Financials Outperform 13% Health care Marketperform 15% Consumer discretionary Marketperform
Slide 6: Internet-related investment requires specialist knowledge and expertise
… but investment in internet-related companies requires specialist knowledge and expertise For personal use only Price appreciation since IPO of recently listed internet-related companies on the ASX and NZX 350% 290% 300% 208% 250% 199% 173% 200% 150% 90% 100% 61% 50% 12% 4% 0% -11% -18% -50% -28% -
Slide 7: BTI's core investment approach
BTI’s core investment approach For personal use only Leverage specialist Invest in companies with technology expertise; a proven business model, engage with companies global addressable and management through market, and $2-20m of extensive due diligence revenue Put in place capital Mandatory board
Slide 8: What does 'Expansion Stage' mean?
What does ‘Expansion Stage’ mean? For personal use only Technology is de-risked compared to early- stage companies Proven revenue generation capability (typically with $2-20m of revenue in the twelve months prior to BTI’s initial investment Proven management capability – 2 to 6 years of operation an
Slide 9: BTI's investment criteria
BTI’s investment criteria Bailador’s access to high quality deal flow enables it to focus on For personal use only investments that meet key investment criteria Highly profitable unit economics Proven Technology Huge Global × No start-ups Addressable × No biotechnology Globally Markets Proven comp
Slide 10: Risk Management
Risk Management Bailador manages risk through capital structure seniority, For personal use only contractual rights and deep involvement with management Risk Management Feature Implication Seniority in capital structure Bailador gets its money out first on sale of the company Ability to sell 100% of
Slide 11: Capital Structure Protections & Upside
Capital Structure Protections & Upside All principal invested is protected as long as the whole business is sold for > BTI cost, with conversion rights enabling full upside For personal use only participation ‘Downside’ Example ‘Upside’ Example $50m Bailador Investment (Convertible Preference Shares
Slide 12: Investment Highlights; Portfolio & Valuation; Investment Opportunity
For personal use only Investment Portfolio & Investment Highlights Valuation Opportunity
Slide 13: Investment Highlights
For personal use only Highlights Investment
Slide 14: BTI investment outperformance against indices
BTI investment outperformance against indices BTI investment performance has demonstrated superior returns to For personal use only leading equity indices since its IPO in November 2014 As at 30 June 2106 Annual Return BTI Portfolio 18.3% p.a. All Ord 2.0% p.a. ASX 200 2.1% p.a. S&P 500 10.3% p.a. N
Slide 15: BTI is an Absolute Return investment
BTI is an Absolute Return investment BTI’s share price over the last 12 months shows minimal correlation For personal use only to the ASX 200 BTI: 18.1% XJO: 3.4% 15
Slide 16: BTI may re-rate from discount vs NAV to premium
BTI may re-rate from discount vs NAV to premium • BTI currently trades at a discount to its Net Asset Value per share. • This would be typical for a LIC which invests in tradeable securities. For personal use only • But BTI is unique in that it only invests in private companies. • The valuation appr
Slide 17: Key investment highlights for BTI
Key investment highlights for BTI For personal use only Investment BTI investment performance has materially outperformed leading equity Outperformance indices BTI is an absolute return investment; performance has low correlation with Absolute Return macroeconomic-driven market movements Conservativ
Slide 18: Portfolio & Valuation
For personal use only Valuation Portfolio &
Slide 19: Immediate exposure to an established portfolio with material upside
BTI provides immediate exposure to an established portfolio with material upside prospects For personal use only Value ($m) Position & Upside Potential 31.3 World leader in travel distribution technology with over 20,000 subscription customers, growing rapidly in a strategically valuable space 28.9
Slide 20: Combined revenue of the BTI portfolio companies is over $100m
Combined revenue of the BTI portfolio companies is over $100m For personal use only Portfolio revenue growth in FY16 was 39% 20
Slide 21: A portfolio with a demonstrated global market
A portfolio with a demonstrated global market BTI’s portfolio is headquartered in 3 countries, with offices in 12 For personal use only countries, across 21 cities, employing a total of 815 people* Rezdy Stackla SiteMinder Straker Viocorp SMI iPRO Click Loans UK: 144 employees DocsCorp EMEA: 25 N. A
Slide 22: Investment Opportunity
For personal use only Investment Opportunity
Slide 23: A technology focused investment company
A technology focused investment company BTI is the only expansion focused technology investment company For personal use only listed on the ASX Access to the high growth • Technology is reshaping almost every industry • Creating high growth companies with huge potential upside technology sector • Ac
Slide 24: Dividends and Manager Remuneration
Dividends and Manager Remuneration • Cash dividends will be paid when portfolio For personal use only investments are sold. Dividends • Dividends will be franked. Franked dividends • The Manager intends to retain enough cash will be paid as to fund one year of investment. investments are realised. •
Slide 25: Appendix: Investment Portfolio Profiles
For personal use only Appendix Investment Portfolio Profiles
Slide 26: The BTI Portfolio: SiteMinder
The BTI Portfolio: For personal use only SiteMinder is the world leader in hotel channel management and distribution solutions for online accommodation bookings BTI Cost • $13.8m What excites us The world leader in its space for technology, market Current • $31.3m position, and scale Value The t
Slide 27: The BTI Portfolio: Viocorp
The BTI Portfolio: Viocorp is a leading cloud based video management, storage and distribution platform for For personal use only government and corporate enterprises BTI Cost • $22.8m What excites us Viocorp has proven its technology is as good as any in Current • $28.9m the world Value Video i
Slide 28: The BTI Portfolio: Straker
The BTI Portfolio: For personal use only Straker is a leading provider of cloud-enabled translation services in more than 80 languages, leveraging its proprietary platform to scale globally BTI Cost • $7.5m What excites us A leading hybrid platform that combines machine Current • $8.6m learning, b
Slide 29: The BTI Portfolio: Stackla
The BTI Portfolio: For personal use only Stackla is a leading proprietary social marketing platform that integrates user-generated content throughout a brand’s digital marketing channels BTI Cost • $6.4m What excites us Proprietary, scalable, and flexible API-driven platform Current • $7.4m with a
Slide 30: The BTI Portfolio: SMI
The BTI Portfolio: For personal use only SMI is a data analytics platform that aggregates unique advertising spend data in 37 countries BTI Cost • $6.4m What excites us SMI has exclusive access to very valuable data, and has Current • $6.4m developed a sophisticated platform to extract and Value g
Slide 31: The BTI Portfolio: iPRO
The BTI Portfolio: For personal use only iPRO is a specialised provider of cloud based vendor compliance management software that helps enterprises efficiently manage their vendor risk BTI Cost • $8.5m What excites us Takes advantage of major industry trends: Current • $5.5m 1. outsourcing, Value
Slide 32: The BTI Portfolio: DocsCorp
The BTI Portfolio: For personal use only DocsCorp is a leading global provider of desktop and cloud based productivity software to specialist segments of the USD$24bn enterprise content management market BTI Cost • $5.0m What excites us Clear product leadership in each of its product Current • $5.
Slide 33: The BTI Portfolio: Click Loans Group
The BTI Portfolio: For personal use only Click Loans Group is an end-to-end online home loan platform (Lendi) and mortgage product (Click Loans) BTI Cost • $4.0m What excites us Australia’s first 100% online home loan platform Current • $4.0m Addressing a multi-billion dollar industry in Austral
Slide 34: The BTI Portfolio: Rezdy
The BTI Portfolio: For personal use only Rezdy is an online SaaS package for Tours and Activity operators and a B2B marketplace that aggregates tours and activities for agents BTI Cost • $2.5m What excites us Well positioned in the lucrative and growing $30bn Current • $3.5m tourism market Value
Slide 35: 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) Bailador Technology Investments Limited (ASX:BTI)
Slide 36: 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”) For personal use only or by authorized representatives of Bailador (“Affiliates”). This presentation does not contain a complete descri
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