Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — FY2020 Earnings Presentation
33 slides from Bailador Technology Investments's earnings presentation, Aug 14, 2020
Slide 1: Results presentation, financial year ended 30 June 2020
For personal use only Results presentation Financial year ended 30 June 2020 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: Contents
Contents For personal use only PORTFOLIO PERFORMANCE PAGE 3 – 12 P O R T F O L I O C O M PA N Y P E R F O R M A N C E PAGE 13 - 25 FY20 SUMMARY FINANCIALS PAGE 26 – 29 This presentation was authorised for release to the ASX by Helen Plesek, Company Secretary & Chief Financial Officer, on 14 August 2
Slide 3: Executive Summary
Executive Summary For personal use only The Bailador portfolio had great momentum going into COVID and has PORTFOLIO PERFORMANCE performed strongly through it ⇢ Portfolio revenue growth rate to 30 June is 20% Two profitable cash realisations during the year Special fully-franked dividend paid
Slide 4: Portfolio of established fast growth technology companies has enviable characteristics
Bailador’s portfolio of 10 established fast growth technology companies has enviable characteristics For personal use only $278m The portfolio has critical mass PORTFOLIO PERFORMANCE ⇢ Only three SaaS companies listed on the ASX have greater portfolio company revenue1 revenue than the combined Baila
Slide 5: BTI share price reduced with the market during March due to COVID
The BTI share price reduced significantly with the market during March due to COVID concerns. It has only partially recovered, representing a buying opportunity For personal use only Indexed 30-Jun-19 = 100 BTI.ASX relative performance to S&P/ASX200 Information Technology Sector 140 PORTFOLIO PERFOR
Slide 6: The BTI portfolio ended FY20 conservatively valued
The BTI portfolio ended FY20 conservatively valued The BTI portfolio is 80% SaaS by value. Peer average For personal use only It demonstrates premium PORTFOLIO PERFORMANCE BTI Portfolio1 characteristics, and can be accessed at a Wisetech valuation allowing for material upside Altium returns ASX List
Slide 7: Portfolio valuations confirmed through Independent Expert Review
Portfolio valuations at 30 June confirmed through Independent Expert Review ⇢ $11.8m cash realised during FY20; net portfolio valuation flat (-1%) For personal use only Gross portfolio value progression PORTFOLIO PERFORMANCE $180m $160m Cash $2.0m Cash $9.9m $140m 2.1x cost 21.2x cost 25.0% IRR 50.5
Slide 8: Growth in carrying value is conservative relative 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 Carrying Value Value PORTFOLIO PERFORMANCE Revenue Carrying Portfolio revenue has increased by 3.8x 3.8x… …but BTI has only recognised 2.2x a value inc
Slide 9: The majority of Bailador's portfolio companies are well advanced
The majority of Bailador’s portfolio companies are well advanced For personal use only PORTFOLIO PERFORMANCE REINVESTMENT 1 FRANKED DIVIDENDS 2 4 1 Early stage 2 Mid stage 3 Advanced stage 4 Cash realisation 3 Denotes partial cash realisation 9
Slide 10: Bailador has begun harvesting profitable cash realisations
Bailador has begun harvesting profitable cash realisations Phase 3: REALISATIONS For personal use only Phase 2: $9.9m cash realisation GROW THE BUSINESSES & PREPARE FOR EXITS PORTFOLIO PERFORMANCE BTI NTA Phase 1: $2.0m cash realisation $180m BUILD THE PORTFOLIO & TEAM TO CRITICAL MASS $1.2m cash re
Slide 11: Five partial cash realisations have generated premium returns
Bailador’s five partial cash realisations have generated premium returns ⇢ Combined IRR of 42.3% For personal use only PORTFOLIO PERFORMANCE Cash $5.0m Cash $1.2m Cash $0.4m Cash $2.0m Cash $9.9m 7.2x cost 1.7x cost 2.8x cost 2.1x cost 21.2x cost 71.1% IRR 21.5% IRR 35.4% IRR 25.0% IRR 50.5% IRR Dec
Slide 12: Portfolio companies are well capitalised – no liquidity concerns
The Bailador portfolio companies are well capitalised – no liquidity concerns Portfolio company Valuation1 Cash Sustainability Prospects Jun-20 valuation For personal use only $82.5m ✓✓✓ ✓✓✓ Strategic position strengthened Held constant PORTFOLIO PERFORMANCE $19.0m ✓✓✓ ✓✓✓ Very strong business perfo
Slide 13: SiteMinder
54% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only SiteMinder is the world leader in connecting hotels to online distribution channels for accommodation bookings • Surpassed $1bn valuation with January 2020 investment from renowned 22.4x global and
Slide 14: SiteMinder's value has increased ~20x based on third party transactions
SiteMinder’s value has already increased ~20x based on third party transactions P O R T F O L I O C O M PA N Y P E R F O R M A N C E ⇢ Bailador has already realised $15m cash For personal use only = valuation uplift 114% 25% 93% 276% $5m $18.8m $36.3m1 $45.5m1 $97.4m1 CASH CASH REALISATION $5m REALI
Slide 15: Instaclustr
13% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only Instaclustr is an open-source-as-a-service platform for complex big data applications 5.6x • Rapid growth in high margin recurring revenue • Sector dynamics becoming appreciated by the market, as ev
Slide 16: Sector dynamics being appreciated by the market
Sector dynamics being appreciated by the market… …but not yet factored into BTI’s Instaclustr valuation P O R T F O L I O C O M PA N Y P E R F O R M A N C E For personal use only Peer Median = 20x Instaclustr1 (last equity raise)2 Elastic Global Infra MongoDB Software (Listed) US Infra Software3 (me
Slide 17: DocsCorp
7% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only Global leader in the rapidly growing document productivity segment of the LegalTech market 1.6x • Globally successful business with 80% of revenue derived from outside of Australia • Very sticky cust
Slide 18: Lendi
7% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only Lendi is a FinTech online platform that radically simplifies process of obtaining a home loan 2.5x • Disruptive home loan platform that compares loans from 35+ lenders and addresses $1.7 trillion hom
Slide 19: SMI
6% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only Big data aggregation and analysis platform with exclusive access to ad expenditure data 3.7x • Provides valuable advertising spend metrics and forecasting to agencies, brands and financial analysts g
Slide 20: Rezdy
4% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only Leading, innovative and fast-growing B2B marketplace for tours & activities. • Significant short term impact from COVID 8.2x • Transaction revenue fell to near zero but subscription revenue (~70% of
Slide 21: Straker Translations
4% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only Straker Translations is a world leading AI data driven language translation platform powering the global growth of businesses 3.4x • A US$43bn market opportunity underpinned by strong structural tren
Slide 22: BROSA
2% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only BROSA is the leading Australian vertically integrated and digital native furniture retailer 1.3x • Opportunity to disrupt the $13.9bn home and living retail market that is underpenetrated in online s
Slide 23: Stackla
0% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Revenue For personal use only Leading tech platform for brands to leverage User Generated Content (UGC) in their marketing strategy 3.0x • Huge global addressable market across multiple MarTech sectors • Impressive suite of domes
Slide 24: Viostream
0% O F B T I N TA P O R T F O L I O C O M PA N Y P E R F O R M A N C E Licence Fee Revenue For personal use only Viostream is a cloud-based video management, storage and distribution platform for enterprises 1.3x • Viostream’s platform helps government and commercial enterprises harness the power of
Slide 25: BTI well positioned to generate value growth across the portfolio
BTI ended FY20 well positioned to generate value growth across the portfolio P O R T F O L I O C O M PA N Y P E R F O R M A N C E Portfolio company Current valuation NTA per share Comment For personal use only 82.5 0.67 Proven winner; Withstanding COVID travel disruption well. 19.0 0.15 Emerging Sta
Slide 26: Summary Profit and Loss
Summary Profit and Loss For the year ended 30 June 2020 For personal use only FY20 SUMMARY FINANCIALS FY19 FY20 $000 $000 Change in value of portfolio assets 32,038 (1,648) 1% net decrease to portfolio valuation Interest income 44 23 Total investment growth 32,082 (1,625) Management fee (2,507) (2,6
Slide 27: Summary Financial Position
Summary Financial Position For personal use only FY20 SUMMARY FINANCIALS 30 June 2019 30 June 2020 Movement $11.8m of cash realisations $000 $000 $000 2.5cps fully-franked dividend and accompanying DRP Cash 1,423 4,612 3,189 FY19 performance fee accrual paid Marketable securities 2,805 5,604 2,799 S
Slide 28: Summary portfolio company valuation movements
Summary portfolio company valuation movements For personal use only FY20 SUMMARY FINANCIALS Investment / Valuation Net 30 June 2019 30 June 2020 $m (realisation) Movement Movement SiteMinder 72.9 (9.9) 19.6 82.5 9.7 Instaclustr 14.6 - 4.4 19.0 4.4 DocsCorp 10.9 - - 10.9 - Lendi 10.7 - - 10.7 - SMI 9
Slide 29: FY20 NTA per share performance impacted by Stackla and Viostream write-downs
FY20 NTA per share performance impacted by Stackla and Viostream write-downs Bailador FY20 NTA per share movements net of all fees For personal use only $1.60 1 SiteMinder surpassed $1bn valuation with January 2020 investment from renowned global and Australian investors FY20 SUMMARY FINANCIALS +30%
Slide 30: Exposure to expansion-stage technology companies before they are public
For personal use only Bailador provides investors with exposure to expansion-stage technology companies at attractive valuations before they are public Investors get access through an ASX traded share [ASX:BTI] with liquidity available at any time 30
Slide 31: Portfolio company details
Portfolio company details For personal use only Name: Type: SaaS/B2B DBaaS/B2B SaaS/Document Productivity Fintech SaaS/Big Data World leader in hotel channel Open source data platform for Global leader in the rapidly Australia’s #1 home loan Big data aggregation and management and distribution About
Slide 32: 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 Investment Ltd (“Bailador”) or by authorised representatives of Bailador (“Affiliates”). This presentation does not contain a complete descri
Slide 33: 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)
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