Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Investor Presentation (April 2021)
44 slides from Bailador Technology Investments's investor presentation, Apr 28, 2021
Slide 1: A Smart Approach to Technology Investment
For personal use only A Smart Approach to Technology Investment Capital Raising Presentation April 2021 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: Exposure to expansion-stage technology companies
For personal use only Bailador provides investors with exposure to expansion-stage technology companies with global addressable markets and a high growth trajectory Investors get access through an ASX traded share [ASX:BTI] 2
Slide 3: The Bailador founders are seasoned investors with an excellent track record
The Bailador founders are seasoned investors with an excellent track record For personal use only David Kirk Paul Wilson Co-Founder & Partner Co-Founder & Partner • Former CEO of Fairfax Media (led the acquisition of Trade Me and • Former Director of CHAMP Private Equity, and previously MetLife Stay
Slide 4: Bailador invests in high growth private technology companies
Bailador invests in high growth private technology companies For personal use only INFORMATION TECHNOLOGY FOCUS PRIVATE COMPANIES $5 - $50M REVENUE PROVEN BUSINESS MODEL GLOBALLY ADDRESSABLE MARKETS MINORITY PROTECTIONS AND BOARD REPRESENTATION 4
Slide 5: Expansion-stage investing has the most attractive risk/reward balance
Expansion-stage investing has the most attractive risk/reward balance For personal use only Less upside GROWTH Higher risk EARLY STAGE EXPANSION MATURITY STAGE TIME 5
Slide 6: Our business model is designed to generate premium returns
Our business model is designed to generate premium returns For personal use only INVESTING GROWING REALISING Diligence hundreds of Partner with Prepare businesses opportunities to management to scale for sale or IPO select the best globally 6
Slide 7: Access to quality expansion stage technology companies before they are public
For personal use only Bailador provides access to quality expansion stage technology companies at attractive valuations before they are public 7
Slide 8: Bailador has a well-established portfolio of high growth tech companies
Bailador has a well-established portfolio of high growth tech companies For personal use only $294m The portfolio has critical mass ⇢ Only three SaaS companies listed on the ASX have greater portfolio company revenue2 revenue than the combined Bailador portfolio 10% 25% Revenue growth ex-travel is s
Slide 9: Portfolio companies are addressing huge global markets
Bailador’s portfolio companies are addressing huge global markets …meaning these companies can grow to be very large, very fast For personal use only >70% of portfolio revenue is generated in markets outside of Australia Note: Based on revenue for the year ending 31 December 2020 and weighted based
Slide 10: Bailador favours SaaS and Marketplace business models
Bailador favours Software-as-a-Service (SaaS) and Marketplace business models For personal use only SaaS Marketplace Data Digital 80% 12% 6% Retail 2% CHARACTERISTICS Predictable recurring Efficient scalability Measurable metrics Ability to address global revenue streams market opportunities Note: P
Slide 11: Global software revenue has exploded in the last years
Global software revenue has exploded in the last 20 years For personal use only SaaS is Global software industry revenue dominating software industry growth Source: Neeraj Agrawal & Logan Bartlett, Battery Ventures, Software May 2019. Note: Homegrown/Internal Software is estimated based on hours wor
Slide 12: The SaaS model enables global reach from anywhere in the world
The SaaS model enables global reach from anywhere in the world For personal use only SAAS CHARACTERISTICS AUS/NZ SAAS EXAMPLES Market cap Revenue • Build one software platform (2020) multiple • Sell it thousands of times on subscription model • Recurring monthly or annual licence revenue USD$52.7bn
Slide 13: Case Studies
For personal use only Case Studies 13
Slide 14: SiteMinder connects hotels to online distribution channels
45% O F B T I N TA 4 LTM Revenue For personal use only SiteMinder is the world leader in connecting hotels to online distribution channels for accommodation bookings • Surpassed $1bn valuation in January 2020 with investment from renowned 20.2x global and Australian investors including BlackRock Inv
Slide 15: Subscription business has outperformed other companies in the travel sector
For personal use only Subscription business has materially outperformed other companies in the travel sector Travel Sector Travel Sector12-month 12-monthPerformance1 1 Performance • Travel Sector Revenue materially down in the last 12 months +9% • Capital markets have looked through that revenue dec
Slide 16: Valuation of comparable SaaS businesses
– Valuation of comparable SaaS businesses For personal use only ($100M+ Revenue, 20%+ Growth, 70%+ Gross margin) Peer Median = 19.8x Having passed SiteMinder1 $100m ARR, SiteMinder is Wisetech moving into a different category of comps with ASX Altium higher valuations Listed Xero Australian Canva Pr
Slide 17: Instaclustr database management
For personal use only Database management Typical Enterprise Technology Stack Instaclustr is a platform that manages database technologies, empowering clients to deliver big data applications at scale. Use of data – fast growing and complex Interfaces The volume of data generated in the modern world
Slide 18: Exponential growth in the global datasphere and a large addressable database market
For personal use only Exponential Growth in the A Large Addressable Database Increased Open Source Adoption Global Datasphere Management Software Market Open Source Database (% of Total Databases) Size of the Global Datasphere (Zettabytes1) Global Database Market (US$Bn) 138 173 49% 112 124 89 35% 1
Slide 19: Key Investment Highlights
– Key Investment Highlights For personal use only 1. A proprietary multi tech platform 2. Substantial industry tailwinds ⇢ Big data driving demand for technologies to process and store data ⇢ Applications and databases moving to the cloud ⇢ Growing adoption of open-source technologies 3. Long term b
Slide 20: Instaclustr's comparables show sector dynamics being appreciated by the market
Instaclustr’s comparables show sector dynamics being appreciated by the market …but not yet factored into BTI’s Instaclustr valuation For personal use only Peer Average = 20.2x Instaclustr1 Elastic Global Infra Software MongoDB (Listed) US Infra Software2 (median) Megaport AU SaaS (Listed) ASX high-
Slide 21: For personal use only
Ajuo asn feuosied 10) 21 BAILAD@R
Slide 22: DocsCorp exit announced in February 2021
DocsCorp exit announced in February 2021 - 30% IRR on investment For personal use only - 3.4x cost - 55% uplift on exit 19% 55% 23% 49% $5.0m (July 2016) $7.5m (June 2017) $9.2m (June 2018) $10.9m $17m1 (June 2019) (February 2021) Original Investment 12 Month Revaluation 12 Month Revaluation 12 Mont
Slide 23: The DocsCorp and Bailador partnership
– The DocsCorp and Bailador partnership For personal use only The cash realised for DocsCorp is an uplift on the returns Working With Management implied by internal valuations during BTI’s hold period $18m Over the five-year partnership Bailador was instrumental in: RR %I 30 t= $16m n exi • Focusing
Slide 24: Instaclustr valuation uplift in March 2021
Instaclustr valuation uplift in March 2021 - Effective 65.9% IRR on investment For personal use only - 9.0x cost 49% 42% 30% 58% 106% $4.5m (Nov 16 / $9.3m (Nov 2017) $14.6m (August 2018) $19.0m (August 2019) $27.1m $40.4m Mar 17) (August 2020) (March 2021) Original 12 Month Third Party 12 Month 12
Slide 25: Lendi cash realisation in Q2 CY2021
Lendi cash realisation in Q2 CY2021* - 21% IRR on investment* For personal use only - 2.4x cost* = valuation uplift - 21% uplift on realisation* 21% 18% 32% 42% $5.5m $7.2m $9.5m $11.2m $13m* (May 16 / (December 2017) (November 2018) (~Q2 CY 2021) (May 2017) May 17) $0.4m CASH REALISATION May 2016 &
Slide 26: Bailador has delivered eight partial or full cash realisations
Bailador has delivered eight partial or full cash realisations For personal use only Cash $5.0m Cash $1.2m Cash $0.4m Cash $2.0m 7.2x cost 1.7x cost 2.8x cost 2.1x cost 71.1% IRR 21.5% IRR 35.4% IRR 25.0% IRR December 2015 October 2018 December 2018 July 2019 Cash $9.9m Cash $1.1m Cash $17m Cash $13
Slide 27: Outlook
For personal use only Outlook 27
Slide 28: Bailador expects more profitable cash realisations in 2021
Bailador expects more profitable cash realisations in 2021 For personal use only REINVESTMENT 1 FRANKED DIVIDENDS Key 2 2021 exits 4 1 Early stage 2 Mid stage (FEB-21) 3 Advanced stage 4 Cash realisation 3 (FEB-21) Partial cash realisation (APR-21) Note: Bailador realised its investment in Viostream
Slide 29: Bailador March 2021 NTA and pro-forma April 2021 NTA
Bailador March 2021 NTA and pro-forma April 2021 NTA For personal use only VALUATION ($m) NTA PER SHARE ($/share) MAR-21 PRO-FORMA APR-21 MAR-21 PRO-FORMA APR-21 THIRD PARTY NEXT VALUATION PORTFOLIO COMPANY (ACTUAL) MVMT (PRO-FORMA) (ACTUAL) MVMT (PRO-FORMA) TRANSACTION REVIEW 82.5 - 82.5 0.67 - 0.6
Slide 30: The portfolio is positioned for further gains across a number of companies
The portfolio is positioned for further gains across a number of companies For personal use only Portfolio Company Valuation1 %NTA Comment • Strategic position strengthened $82.5m 45% • Strong 2021/22 IPO candidate - likely priority offer for BTI shareholders • Likely follow-on investment (<$5m) in
Slide 31: Our NTA valuations are validated by third party transactions
Our NTA valuations are validated by third party transactions For personal use only There have been 23 third party transactions in our portfolio companies. 145% All transactions have been at or above 122% 121% 100% 105% BTI carrying value. Carryi ng 3rd party Carryi ng 3rd party Carryi ng 3rd party C
Slide 32: Portfolio valuation uplift driven largely by third party transactions
Portfolio valuation uplift driven largely by third party transactions For personal use only Bailador will examine internal Contribution to portfolio valuation $200m revaluation of investment positions if it has been 12 months since a third party transaction. $150m Those revaluations have proven cons
Slide 33: Growth in carrying value is conservative compared to portfolio revenue growth
The growth in carrying value of BTI’s investments is conservative in comparison to the revenue growth in the portfolio For personal use only Revenue Revenue Carrying Carrying Value Value Portfolio revenue has increased by 4.0x 4.0x… …but BTI has only recognised 2.5x a value increase of 2.5x in its N
Slide 34: Tech valuations have increased, but BTI has maintained a conservative approach
Tech valuations have increased, but BTI has maintained a conservative approach For personal use only BTI Portfolio1 Wisetech Average peer multiple up ASX Listed2 Altium 34% Xero Australian Canva4 Private Co. ⤏ Material upside to Aus SaaS >$500m BTI carrying values Aus SaaS ⤏ Built in buffer if Index
Slide 35: BTI's UK-based comparables trade at an average 17% premium to NTA/share
BTI’s UK-based comparables trade at an average 17% premium to NTA/share A track record of cash realisations higher than carrying value warrants a share price premium to NTA For personal use only Premium/discount to NTA per share 50% 45% Seven of nine companies trade at a premium to NTA/share 40% 35%
Slide 36: Bailador Founders
Bailador Founders For personal use only “We are very pleased with the “A number of our Bailador portfolio performance of the portfolio during a companies represent attractive tumultuous period. No emergency acquisition targets or IPO capital raisings were required, and candidates. Harvesting gains i
Slide 37: Bailador is rated 'Recommended+' by IIR
Bailador is rated ‘Recommended+’ by IIR For personal use only BTI Shareholder Returns1 140% 120% 115% 100% 80% 60% 40% 34% Annual Returns2 1-yr 2-yr (pa) 3-yr (pa) 20% 19% NTA 22.1% 14.8% 12.9% NTA/sh (pre-tax) 22.8% 13.6% 12.1% 0% BTI Shareholders 115.4% 33.8% 19.1% 1-Year 2-Years (pa) 3-Years (pa)
Slide 38: Exposure to expansion-stage technology companies
For personal use only Bailador provides investors with exposure to expansion-stage technology companies with global addressable markets and a high growth trajectory Investors get access through an ASX traded share [ASX:BTI] 38
Slide 39: Capital Raising
For personal use only Capital Raising 39
Slide 40: Capital Raising Overview
Capital Raising Overview For personal use only Capital Raising Pricing Uses of Capital ⤏ Institutional placement raising Offer price of $1.37 represents: Following the Capital Raising, $20 million Bailador intends to use available cash ⤏ A 4.9% discount to BTI’s last to generate investment returns f
Slide 41: Offer structure
Offer structure Structure • Non-underwritten Institutional Placement (Placement) to raise $20 million For personal use only • Non-underwritten Share Purchase Plan (SPP) offering $30,000 per existing eligible shareholder Placement • The Placement is non-underwritten and managed by Morgans Corporate L
Slide 42: Indicative Timetable
Indicative Timetable For personal use only Institutional Placement Date Announcement of completion of Placement 28 April 2021 Settlement of New Shares under the Placement 4 May 2021 Allotment and commencement of trading of New Shares issued under Placement 5 May 2021 SPP Date Record date for partici
Slide 43: Disclaimer
Disclaimer For personal use only This presentation is confidential and may not be reproduced in whole or in part, or distributed except by Bailador Technology Investments Ltd (“Bailador”) or by authorized representatives of Bailador (“Affiliates”). This presentation does not contain a complete descr
Slide 44: 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 — Investor Presentation (April 2021) on 6ix