Molten Ventures Plc · LSE:GROW
Molten Ventures — FY2024 Earnings Presentation
44 slides from Molten Ventures's earnings presentation, Jun 12, 2024
Slide 1: Molten Ventures plc Annual Results FY24
Molten Ventures plc Annual Results FY24 June 2024 moltenventures.com
Slide 2: Disclaimer
FY24 Annual Results Disclaimer This document has been prepared by Molten Ventures plc ("Molten Ventures" or the "Company") and is for general information purposes only. The information provided in this document pertaining to Molten Ventures, its broader group ("Group"), its portfolio companies, and
Slide 3: Contents
Contents 1. FY24 Summary 2. Results for the year ending 31 March 2024 3. Portfolio update 4. Outlook and Capital allocation policy 5. Appendix 3
Slide 4: FY24 Summary
FY24 Annual Results FY24 Summary Our focus has been to continue to develop our platform and operating model whilst executing on strategic M&A and secondaries at attractive valuations. We have maintained discipline around our investment process and worked closely with our portfolio companies to suppo
Slide 5: Molten Business Model
FY24 Annual Results Molten Business Model We back businesses with the capital, expertise and networks to fuel their growth. Our brand, people, networks, and Fund of Funds programme offer a large pipeline of promising private technology companies from across Europe. Molten Ventures Group Investment P
Slide 6: Results for the year ended 31 March 2024
2. Results for the year ended 31 March 2024 6
Slide 7: Highlights at March 2024
FY24 Annual Results Highlights at 31 March 2024 £1,379m £65m £39m -1% Gross Portfolio Value* Cash invested in the year , and a further £37m Cash proceeds from realisations G ross Portfolio fair value movement* (31 March 2023: £1,371m) from EIS/VCT funds (year to 31 March 2023: (year to 31 March 2023
Slide 8: H2 '24 stabilised and improved on H1 '24
FY24 Annual Results H2 ’24 stabilised and improved on H1’ 24, and starting to see signs of improvement For the full year ending 31 March 2024 we saw a 1% reduction in gross fair value movement (slight uplift of £6m being 0.4%, excluding FX) £56m excluding the impact of FX (4%) -£51m excluding the im
Slide 9: Total balance sheet investments for FY24 amount to £65m
FY24 Annual Results Total balance sheet investments for FY24 amount to £65m Capital deployed by deal type £350m £65m £311m total deployed £300m £29m in FY24 £13m £27m £250m £40m £200m direct £156m £130m deployment £150m - £139m £129m £7m £3m £57m £31m £27m £100m £90m £12m £25m £31m £22m £41m £65m £6
Slide 10: Activity in the year
FY24 Annual Results Activity in the year In FY24 Molten made 15 investments across primary new deals, follow-ons and secondaries, including the share-for-share acquisition of Forward Partners and LP stake acquired in Seedcamp III. Timeline Key Primary New Investments Follow-on investments Secondary
Slide 11: Returns & Cash realisations
FY24 Annual Results Returns & Cash realisations • 31% average return on opening gross portfolio value (for financial years since 2016 IPO) - our target is 20% fair value growth through the cycle • 16% average cash realisations on opening portfolio (for financial years since 2016 IPO) - our target is
Slide 12: Returns Track Record since 2016 IPO
Key FY24 Annual Results Fully realised Returns Track Record since 2016 IPO Partially realised Accessed via strategic relationships with Earlybird or Seedcamp Returns Multiple* No return at 0x < 1x 1x < 3x 3x+ world stores % of Invested Capital** 18% 24% 25% 33% Return Proceeds *** £19m £93m £377m No
Slide 13: Income, cost and NAV progression
FY24 Annual Results Income, cost and NAV progression • c.£1.8bn platform AUM at 31 March 2024, including third party assets under management (including c.£0.4bn via EIS/VCT funds) • Operating costs (net of fee income) for FY24 are less than 1% plc NAV • Fee income of £20m in the year – a slight decr
Slide 14: Portfolio update
3. Portfolio update 14
Slide 15: Gross Portfolio Value Progression
FY24 Annual Results Gross Portfolio Value Progression As at 31 March 2024 £1,379m Gross Portfolio value £65m Cash invested during period £39m Cash received from realisations during the period -£18m Gross Portfolio fair value reduction 15
Slide 16: Portfolio growth drivers
FY24 Annual Results Portfolio growth drivers The portfolio remains well funded, with the core raising over £1.2bn in FY23 and FY24, with 90% of fund raising at the same, or above, previous round valuation. • Revenues have grown at a weighted average for the Core of 63% (actuals for calendar year 202
Slide 17: Valuation methodologies
FY24 Annual Results Percentage of total portfolio with downside protection*** 97% Valuation methodologies 100% 90% • Valuation decreases through the portfolio despite continued revenue growth reflect 80% movements in valuation multiples for technology investments, in particular in H1. 70% • H2 has r
Slide 18: Molten acquired Forward Partners and a stake in Seedcamp Fund III
FY24 Annual Results Molten acquired Forward Partners via a share acquisition as well as a stake in Seedcamp Fund III Our acquisition of Forward Partners A secondary position in Seedcamp Fund III • Molten completed its strategic acquisition of Forward Partners in March 2024 • In February 2024, Molten
Slide 19: Outlook and Capital allocation policy
4. Outlook and Capital allocation policy 19
Slide 20: Outlook
FY24 Annual Results Outlook Looking forward to the next 12 months, we believe that Molten, with our stable team, scalable and adaptable model, can continue to deliver as the market begins to transition into the next stage in the cycle. With multiple realisation processes either underway or planned a
Slide 21: Capital allocation policy
FY24 Annual Results Capital allocation policy As reported in our announcement on 30 April, we provide an update to our capital allocation policy which outlines how the Company intends to deploy its capital resources across NAV per share accretive opportunities to deliver long-term value for its shar
Slide 22: Thank you
Thank you moltenventures.com
Slide 23: Appendix
5. Appendix 23
Slide 24: Gross Portfolio Value Table
FY24 Annual Results Gross Portfolio Value Table As at 31 March 2024 Fair Value of Fair value Fair Value of Interest FD Investments Non-investment Movement in Fair value movement Investments Cost MOIC Category at Foreign Reporting 31-Mar-23 Investments Realisations cash movements movement 31-Mar-24 3
Slide 25: Consolidated statement of comprehensive income
FY24 Annual Results Consolidated statement of comprehensive income For the year ended 31 March 2024 Year ended Year ended Notes 31 March 2024 31 March 2023 £m £m Movements on investments held at fair value through profit or loss 6 (67.6) (240.1) Gain on Bargain purchase Goodwill 14 38.6 - Total move
Slide 26: Consolidated statement of financial position
FY24 Annual Results Consolidated statement of financial position 31 Year ended March 2024 Year ended 31 March 2023 Notes As at 31 March 2024 £m £m Non-current assets Intangible assets 16 10.4 10.5 Financial assets held at fair value through profit or loss 17 1,292.1 1,277.0 Property, plant and equip
Slide 27: Market overview
5.a Market overview 27
Slide 28: Market environment
FY24 Annual Results Market environment • In 2023 the European VC market saw investment of $66bn down 42% from the 2022, the decline was largely concentrated in the largest round sizes being in excess of $100m • The challenging 2023 market was driven by a less favourable valuation environment for tec
Slide 29: Benefits of our model
5.b Benefits of our model 29
Slide 30: Fund of funds, your first backers backed
FY24 Annual Results Fund of funds, your first backers backed Full Coverage of the European Seed VC Market From Nordics to Iberic Peninsula 80 Funds committed since 2017 6 Seed funds committed to in FY24 2,300+ Portfolio companies across all funds £159m Total commitments, £96m drawn down to 31 Mar
Slide 31: Funds / Fund managers
FY24 Annual Results 80 Funds / 63 Fund managers Invested across various verticals with a disciplined focus on avoiding overlaps Impact Investing, Health DeepTech & FrontierTech Hardware & IndustrialTech FoodTech & AgriTech & ClimateTech Software & FinTech ConsumerTech & Gaming Local Focus & Gaming 3
Slide 32: Our Portfolio (cont.)
5.c Our Portfolio (cont.) 32
Slide 33: Our Portfolio
FY24 Annual Results Our Portfolio Consumer technology Enterprise technology Hardware & Deeptech Digital health & wellness 14% byValue* 21% byof companies** number 53% byValue* 49% byof companies** number 27% byValue* 21% byof companies** number 6% byValue* 9% byof companies** number Consumer facing
Slide 34: Strength in our diversified approach
FY24 Annual Results Strength in our diversified approach Core Holdings as a % of GPV (by Number of companies - split by No. of portfolio companies value as at 31 March 2024) sector* 118 120 6 100 19% 80 71 70 69 38% 8 8 92 45% 60 19 11% 62% 40 40 45 35 20 5 3 3 2 25% 14 16 15 17 0 31-Mar-21 31-Mar-2
Slide 35: Diverse portfolio across our four key sectors
FY24 Annual Results Diverse portfolio across our four key sectors of investments which capture technology subsector themes with early use cases of AI evident in our portfolio % of portfolio split by sub-sector* No. of companies utilising AI in the Molten portfolio** 18% 20% 5 5 4% 4% 12% 6% 37% 14 A
Slide 36: Our portfolio remained well capitalised during FY24
Valuation Key FY24 Annual Results LR: Calibrated price of recent investment Our portfolio remained well capitalised during FY24 C: Valuation based on a set of comparable listed peers The Core Portfolio is made up of 20 companies representing 61% of the Gross Portfolio Value. New entrants to the core
Slide 37: Core company updates for FY24
Valuation Key FY24 Annual Results LR: Calibrated price of recent investment Core company updates for FY24 C: Valuation based on a set of comparable listed peers Core portfolio company updates LR C C Graphcore is a machine intelligence HiveMQ’s messaging platform (MQTT) is ICEYE’s radar satellite ima
Slide 38: Core company updates for FY24
Valuation Key FY24 Annual Results LR: Calibrated price of recent investment Core company updates for FY24 C: Valuation based on a set of comparable listed peers Core portfolio company updates C C C Perkbox is an employee experience platform RavenPack, big data analytics provider for Revolut is a glo
Slide 39: Core company updates for FY24
Valuation Key FY24 Annual Results LR: Calibrated price of recent investment Core company updates for FY24 C: Valuation based on a set of comparable listed peers Core portfolio company updates C Smava is an online credit marketplace in Germany, providing individuals access to Consumer personal loans
Slide 40: ESG
5.d ESG 40
Slide 41: Progressing our ESG journey
FY24 Annual Results Progressing our ESG journey At Molten, our corporate purpose is dedicated to supporting the creation of a future that is sustainable, fair and accessible to all. As responsible investors, we have a unique position to define this future by funding and championing innovative tech c
Slide 42: Our ESG progress in FY24
FY24 Annual Results Our ESG progress in FY24 We have continued to make progress in our ESG journey, at both a company and portfolio level. > For more information about our past and present KPIs, please see our FY24 Sustainability Report May • Offset 177 tonnes of CO2e Jun • Participation in the BVCA
Slide 43: Alignment of portfolio to UN SDGs
FY24 Annual Results Alignment of portfolio to UN SDGs The Sustainable Development Goals (SDGs) were adopted by the United Nations (UN) in 2015 as a universal call to action ensuring a better and more sustainable future for all. The SDGs are intended to be achieved by 2030 and are made “actionable” t
Slide 44: Thank you
Thank you Contents Contact us Investor Portal: https://investors.moltenventures.com/ Email: ir@molten.vc Telephone: +44 (0)20 7931 8800 London Office 20 Garrick Street London WC2E 9BT Dublin Office The Merrion Buildings 18-20 Merrion Street Dublin D02 XH98 44