Trinity Capital Inc. · NASDAQ:TRIN

Trinity Capital — Q2 2022 Earnings Presentation

35 slides from Trinity Capital's earnings presentation, Aug 4, 2022

1. Slide 1: Second Quarter 2022 Investor Presentation

   Second Quarter 2022Investor Presentation

2. Slide 2: Forward Looking Statements | Disclaimer

   © 2022 Trinity Capital Inc. | 2FORWARD LOOKING STATEMENTS |DISCLAIMER Trinity Capital Inc. (the “Company”) cautions that this presentation may contain forward‐looking statements that are based on current expectations and assumptions about future events, and which are not based in historical fact. Th

3. Slide 3: Agenda

   © 2022 Trinity Capital Inc. | 3 Company OverviewFinancial HighlightsPortfolio HighlightsVenture Capital and Lending Market411202731Supplemental Information33Analyst CoverageINVESTOR PRESENTATION |AGENDA

4. Slide 4: Company Overview

   COMPANYOVERVIEW

5. Slide 5: Trinity Capital Overview

   © 2022 Trinity Capital Inc. | 5 Market Capitalization 14 Year Track Record(4) Annualized Dividend Yield Portfolio(2) $93.2 MillionAvailable Liquidity Liquidity(2) 75 Companies Warrant Positions23 CompaniesEquity Positions$35.2 BillionOpportunities$2.2 BillionFundings268Investments148Exits84 Companie

6. Slide 6: Why Is Trinity Different

   © 2022 Trinity Capital Inc. | 6 We understand the growth stage world and provide more than money to our portfolio company partnersDeep OperatingExperienceHighly experienced executive team with startup experienceDecades of in-depth high-tech experienceNumerous U.S. and International patents issued

7. Slide 7: Select Examples: Senior & Subordinated Term Loans

   © 2022 Trinity Capital Inc. | 7 Term Loans Axiom Space is developing the world’s first commercial space station. InvestorSyndicateC5 Capital, TQS Advisors, Declaration PartnersUse of LoanGeneral corporate purposes Petal's aim is to bring financial innovation and opportunity to everyone, using mode

8. Slide 8: Select Examples: Equipment Financing

   © 2022 Trinity Capital Inc. | 8 Equipment Financing Select ExamplesEQUIPMENT FINANCING g20g21g39g51g49g52g37g50g45g41g55g4g59g45g56g44g4g39g37g52g41g60g4g54g41g53g57g45g54g41g49g41g50g56g55g49g69g82g89g74g69g71g88g89g86g77g82g75g4g41g85g89g77g84g81g73g82g88g4g69g82g72g4g44g69g86g72g4g37g87g87g73g88g

9. Slide 9: Partnership with Top VCs and Technology Banks

   © 2022 Trinity Capital Inc. | 9Multiple shared portfolio companieswith top Venture Capital Firms We have established inter-creditoragreements with the banks Combining with bank debt results in a lower blendedcostto our customers We provide equipment financing and incremental debt capitalRelationship

10. Slide 10: Business Model and Underwriting Approach

    © 2022 Trinity Capital Inc. | 10 Investor SyndicateRevenue & Gross MarginsBusiness Model(1)Includes historical information of Trinity Capital's predecessor funds, the first of which was launched in 2008, through June30, 2022. Past performance is not indicative of future results. Investment results m

11. Slide 11: Financial Highlights

    FINANCIAL HIGHLIGHTS

12. Slide 12: Q2 2022 Highlights

    © 2022 Trinity Capital Inc. | 12Total Investment Income of $33.5MNet Investment Income (“NII”) of $15.7MNet Interest Margin (“NIM”) of 10.6%NII per share of $0.51 provides 121.4% of regular distribution coverageIncreased the second quarter dividend distribution to $0.42 per share, a 5% increase

13. Slide 13: Quarterly Results of Operations

    © 2022 Trinity Capital Inc. | 13 For the three months ended (In 000’s, except per share amounts)06/30/202203/31/202212/31/202109/30/202106/30/2021Total Investment Income$33,458$31,845$23,607$21,790$19,476Interest expense and other debt financing costs7,7616,7986,2415,1124,425Compensation and benefit

14. Slide 14: Income Source & Portfolio Yield Trends

    © 2022 Trinity Capital Inc. | 14INCOME SOURCE & PORTFOLIO YIELD TRENDS $521$578$741$865$1,008 15.9%15.8%15.2%16.3%13.8% 13.4%13.1%13.2%12.9%12.9% 10.8%10.8%10.8%10.7%11.6%8.0%9.0% 10.0% 11.0%12.0%13.0% 14.0% 15.0%16.0%17.0% $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,1002Q213Q214Q211Q222Q22POR

15. Slide 15: Net Investment Income (NII) Per Share Bridge

    © 2022 Trinity Capital Inc. | 15 NET INVESTMENT INCOME (NII) PER SHARE BRIDGE

16. Slide 16: Balance Sheet

    © 2022 Trinity Capital Inc. | 16 (In 000’s, except per share amounts)06/30/202203/31/202212/31/202109/30/202106/30/2021AssetsTotal investments at fair value$ 1,051,074 $919,348$873,470$677,246$597,696Cash and cash equivalents13,22628,68431,68525,31319,124Restricted cash--15,05715,00015,341Interest r

17. Slide 17: Net Asset Value (NAV) Per Share Bridge

    © 2022 Trinity Capital Inc. | 17 NET ASSET VALUE (NAV) PER SHARE BRIDGE

18. Slide 18: Debt Capital Structure

    © 2022 Trinity Capital Inc. | 18Diversified Borrowings ($ in million) at 6/30/2022 Funding SourceDebt CommitmentOutstanding PrincipalUndrawn CommitmentStated MaturityInterest RateNotes:2025 Unsecured Notes (1)$125 (1)$125 (1)-January 16, 2025 (2)7.0%Convertible Notes$50$50-December 11, 20256.0% Augu

19. Slide 19: Solid Shareholder Returns

    © 2022 Trinity Capital Inc. | 19 Distributable Net Income covered regular dividends by 121.4% in 2Q22Supplemental Dividend of $0.15 from 2021 spillover incomeStrong Earnings and Dividend GrowthSOLID SHAREHOLDER RETURNS $0.49 $0.76 $1.03 $1.31 $1.60 $1.93 $2.29 $2.69 $3.11 $0.15$0.30 $0.22$0.27$0.27$

20. Slide 20: Portfolio Highlights

    PORTFOLIOHIGHLIGHTS

21. Slide 21: Portfolio Diversification

    (1)Based on Fair Market Value© 2022 Trinity Capital Inc. | 21Industry Diversification(1)Geography Diversification(1) 25.4%24.3%8.0%6.7%6.6%4.8%3.8%20.4% Professional, Scientific, and Technical ServicesManufacturingInformationHealthcare and Social AssistanceReal EstateRetail TradeFinance and Insuranc

22. Slide 22: Portfolio Summary

    © 2022 Trinity Capital Inc. | 22PORTFOLIO SUMMARY(1)Based on Fair Market Value $551,894 $184,074 $100,732 $36,770 Total Portfolio: By TypeAt Fair Value as of December 31, 2021In $000 Secured LoanEquipment FinancingEquityWarrant $769,659 $224,934 $23,289 $33,192 Total Portfolio: By TypeAt Fair Value

23. Slide 23: Portfolio Trends

    © 2022 Trinity Capital Inc. | 23(1)Based on outstanding principal(2)Based on Fair Market Value 50.7%40.0%43.2%40.4%35.6%49.3%60.0%56.8%59.6%64.4%2Q213Q214Q211Q222Q22FIXED VS FLOATING DEBT INVESTMENTS(1) Fixed Floating 66.4%69.2%63.2%70.6%73.2%20.2%16.1%21.1%22.2%21.4%8.8%10.6%11.5%2.6%2.2%4.6%4.1%4.

24. Slide 24: Hypothetical Warrant Upside

    © 2022 Trinity Capital Inc. | 24HYPOTHETICAL WARRANT UPSIDE •Investment of $20.9 million (50%)•Proceeds of $41.9 million (2X)•Cost of $31.3 million •Potential gain of $10.6 millionor $0.34 per share •Investment of $20.9 million (50%)•Proceeds of $62.8 million (3X)•Cost of $31.3 million •Potential ga

25. Slide 25: Disciplined Credit Rating

    © 2022 Trinity Capital Inc. | 25 $518$578$736$854$995 3.13.13.03.03.011.522.5 3 3.5 $‐ $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,1002Q213Q214Q211Q222Q22 Total Debt Investments (FV, $ in million) Weighted Investment Credit Rating 2Q221Q224Q213Q212Q21Very Strong Performance (4.0 –5.0)$62,

26. Slide 26: Diversified Portfolio: Select Investments

    © 2022 Trinity Capital Inc. | 26 Select List of Current & Historical InvestmentsDIVERSIFIED PORTFOLIO

27. Slide 27: Venture Capital and Lending Market

    VENTURE CAPITALAND LENDING MARKET

28. Slide 28: Venture Capital Market

    © 2022 Trinity Capital Inc. | 28US VC Deal ActivityVENTURE CAPITAL MARKET Source: Pitchbook NVCA Venture Monitor Q2 2022 $30$38$37$28$32$45 $42$50$73 $86 $83$89$145 $146$167$342 $1443,402 4,401 4,868 4,587 5,567 6,910 8,061 9,932 10,866 11,543 10,389 11,303 11,900 12,899 12,578 17,637 9,421 ‐ 2,000

29. Slide 29: Venture Capital Fundraising

    © 2022 Trinity Capital Inc. | 29US VC Fundraising ActivityVENTURE CAPITAL FUNDRAISING Source: Pitchbook NVCA Venture Monitor Q2 2022 $34$30 $18 $17 $25 $23 $23 $38$44$52 $44 $61 $71 $85 $139 $122 $‐ $20 $40 $60 $80 $100 $120 $140 $1602007200820092010201120122013201420152016201720182019202020211H22Bi

30. Slide 30: Venture Debt Market

    © 2022 Trinity Capital Inc. | 30VENTURE DEBT MARKET $4$8$8 $11 $17 $15 $15 $25 $32 $33$34$151,075 1,370 1,656 2,033 2,561 2,434 2,660 2,783 3,177 3,075 3,456 1,221 ‐ 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 $‐ $5 $10 $15 $20 $25 $30 $35 $40201120122013201420152016201720182019202020211H22# of De

31. Slide 31: Analyst Coverage

    ANALYST COVERAGE

32. Slide 32: Extensive Industry Analyst Coverage

    © 2022 Trinity Capital Inc. | 32Followed by Six FirmsTrinity Capital is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Trinity Capital’s performance made by these analysts are theirs alone and do not representopinions, forecasts or predictions

33. Slide 33: Supplemental Information

    SUPPLEMENTAL INFORMATION

34. Slide 34: Regulation & Structure

    © 2022 Trinity Capital Inc. | 34BUSINESS DEVELOPMENT COMPANY (BDC)REGULATED INVESTMENT COMPANY (RIC)Trinity Capital Inc. is an Internally Managed BDC under the 1940 Act and has elected to be treated as a RIC for Federal Income Tax Purposes beginning with its Taxable Year ending December 31, 2020Reg

35. Slide 35: Thank You

    We look forward to our growing partnership.THANK YOU

Trinity Capital — Q2 2022 Earnings Presentation on 6ix