Albion Technology & General VCT PLC · LSE:AATG
Albion Technology & General VCT — Shareholder Meeting (May 2022)
26 slides from Albion Technology & General VCT's shareholder meeting presentation, May 24, 2022
Slide 1: Albion Technology & General VCT PLC – Results for the year to 31 December 2021
Albion Technology & General VCT PLC Results for the year to 31 December 2021 AGM May 2022 Albion Technology & General VCT PLC – AGM May 2022
Slide 2: Agenda
Agenda • Financial highlights • Background • Track record • Highlights in the year • Investment portfolio • Realisations • Investment strategy • ESG & responsible investing • Investment manager remuneration • Prospects, Q1 results and shareholder events Albion Technology & General VCT PLC – AGM May
Slide 3: Financial highlights to Dec 2021
Financial highlights to Dec 2021 80.65p Net asset value (NAV) per share as at 31 Dec 2021 Increase in total shareholder value for the year ended 31 Dec 2021 14.98p Movement in shareholder value in the year 21.6% 3.68p Tax-free dividends per share paid during the year 5.3% Tax-free dividend yield on
Slide 4: Background
Background • Continued impact of Covid-19 during • Strong return across the portfolio despite the year headwinds, led by investments in healthcare and software • Further uncertainty due to the invasion of Ukraine, resulting in increased • Portfolio focus on mission critical products geopolitical ris
Slide 5: Track record
Track record Albion Technology & General VCT Ordinary Shares Performance Data – Dec 2021 21.60% 12 month performance 52.63% 5 year performance 57.79% 10 year performance 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Albion Technology & General VCT PLC – AGM May 2022 5
Slide 6: Highlights in the year
Highlights in the year 2020 2021 Notes Fundraising £15.5m £24.0m 2020/21 fundraise & 2021/22 fundraise Including MPP, OmPrompt & Innovation Exits £4.7m £3.9m Broking £2.4m into 5 new companies and £5.3m into Investment rate £9.2m £7.7m existing portfolio Share buybacks £1.5m £1.9m Dividends £14.3m £
Slide 7: Key value drivers in the year
Key value drivers in the year 2021 Notes Quantexa Limited £8.9m Valuation uplift - external fundraising Credit Kudos Limited £3.1m Exit post year end Oviva AG £2.4m Valuation uplift - external fundraising Concirrus (£1.2m) Difficult trading conditions Other – write ups £12.4m Including: Evewell, Phr
Slide 8: Portfolio analysis
Portfolio analysis Sector breakdown Portfolio of 59 companies employing over 3,700 people predominantly in the UK 8 Comparatives for 31 December 2020 are in brackets. Albion Technology & General VCT PLC – AGM May 2022
Slide 9: Portfolio analysis
Portfolio analysis Stage of investment No. of employees * Renewable energy investments have no employees 9 Comparatives for 31 December 2020 are in brackets. Albion Technology & General VCT PLC – AGM May 2022
Slide 10: The top investments account for 26.2% of the NAV at Dec 2021
The top 3 investments account for 26.2% of the NAV at 31 Dec 2021 Investment Cost Book Revenue Employee date value growth growth Uses the latest advances in big data analytics and artificial intelligence to help its financial 2017 2,740 16,933 30.0x 481 services and government customers detect finan
Slide 11: New investments
New investments Gravitee TopCo (trading NuvoAir Holdings is a Brytlyt uses Threadneedle as Gravitee.io) is an provider of digital patented software Software Holdings (trading application programming therapeutics and and AI, to derive as Solidatus) is a provider interface (API) decentralised clinical
Slide 12: New investment: Gravitee
New investment: Gravitee • APIs are the railways of the digital world with every company now a software company and likely to need an API management solution in the future Gravitee TopCo (trading as Gravitee.io) is an application programming interface (API) • Gravitee.io is the most open source and
Slide 13: New investment: NuvoAir
New investment: NuvoAir • NuvoAir had a record 500% growth in Q1 2021 in the wake of Covid • A trend set to continue as more hospitals and patients further A provider of digital therapeutics and embrace technology decentralised clinical trials for respiratory conditions • Albion VCTs invested £3.6m
Slide 14: £5.3m follow-ons
£5.3m follow-ons Digital health business that Leading blockchain analytics A SaaS company that uses provides diet and lifestyle and Crypto compliance social data to accurately coaching to people who deal solutions provider predict consumer behaviour with diet-related health challenges Albion Technol
Slide 15: Realisations: MPP Global Solutions
Realisations: MPP Global Solutions Sold to Aptitude Software, specialist provider of finance transformation and automation software Offers a cloud billing platform for £4m Invested by Albion VCTs enterprise subscription businesses in the media, sport and retail sectors. 1.3x Cash on cash multiple £1
Slide 16: Realisations: Innovation Broking
Realisations: Innovation Broking Sold to Goldman Sachs-backed Aston Lark £0.3m Invested by Albion VCTs A commercial insurance broker and employee benefits adviser for SME, mid-market and larger companies in 10.3x Cash on cash multiple and 75% IRR the UK £0.6m AATG VCT proceeds Albion Technology & Ge
Slide 17: Investment strategy
Investment strategy From Seed Backing Focus on • Software to Series B Long-term Business-to-Business • Healthcare (early stage trends (B2B) to growth) • Other (automotive technologies, sensors) Albion Technology & General VCT PLC – AGM May 2022 17
Slide 18: ESG & responsible investing
ESG & responsible investing Our commitment • Devise an appropriate risk-return profile for our investments • Deliver value to our investors • Develop sustainable long-term strategies for our portfolio companies Our process • Integrates ESG principles at all stages of investment • Measures the sustai
Slide 19: ESG in investment process
ESG in investment process 1. 2. Due 3. 4. 5. Screening diligence Monitoring Follow-ons Exits • Check company • ESG Due Diligence • Leverage portfolio • Reassess ESG risks and • Support the company activity with exclusion completed pre- company board to opportunities at each in demonstrating to list
Slide 20: ESG within our business
ESG within our business • Monitoring carbon footprint • Future VC, a paid internship offered • Updated ESG approach as part of our investment • Net zero carbon emissions • Fair HQ, working with expert process strategy designed consultancy to establish diverse and inclusive practices • Regular ESG up
Slide 21: Investment manager’s remuneration
Investment manager’s remuneration Lower New 0.2% Annual fee saving Opportunity for management fee annual admin fee c.£250k based on Albion to earn a from (£200k p.a. max, 31 Dec 2021 NAV performance 2.5% to 2.0% of NAV £50k p.a. min) incentive fee 21 21 Albion Technology & General VCT PLC – AGM May
Slide 22: New management performance incentive and reduction in annual management fee
New management performance incentive and reduction in annual management fee • Enables recruitment and retention of quality investment staff • Aligns the interests of Albion with VCT shareholders • Proposal benchmarked against the wider VCT industry • Current scheme is complex and no longer relates t
Slide 23: Performance incentive changes
Performance incentive changes • 5% p.a. hurdle in line with target dividend yield • Performance incentive remains at 15% of returns in excess of hurdle • Calculated on a 5yr rolling average performance basis • First period is from 1 Jan 2019 to 31 Dec 2023 • Had the new arrangement been in places si
Slide 24: Prospects
Prospects • Ongoing uncertainty with potential challenging times ahead • Well-balanced portfolio by sector and stage of maturity • Portfolio focus on mission critical products and services, particularly software and healthcare, designed to provide resilience • Limited exposure to discretionary consu
Slide 25: Q1 results and shareholder events
Q1 results and shareholder events Shareholder seminar details • NAV at 31 March 2022 of 82.05p 23 November 2022 • An increase of 1.74% for the quarter Royal College of Surgeons • Virtual AGMs Lincoln's Inn Fields, London • Physical annual shareholder seminar To reserve a place, email info@albion.cap
Slide 26: Thank you
Thank you This presentation is for information purposes only and is not to be regarded as an offer to buy or sell, or the solicitation to buy or sell shares in Albion Technology & General VCT PLC. Any person considering an investment should seek advice from an authorised financial advisor. Albion Ca
Albion Technology & General VCT — Shareholder Meeting (May 2022) on 6ix