Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Investor Presentation (May 2019)
22 slides from Bailador Technology Investments's investor presentation, May 24, 2019
Slide 1: Company Presentation (ASX announcement cover letter)
Bailador Technology Investments Limited A.C.N. 601 048 275 Suite 4, Level 11, 6 O’Connell Street Sydney NSW 2000 For personal use only 24 May 2019 Company Presentation Bailador Technology Investments Limited (ASX:BTI) is pleased to release a copy of its latest company presentation, A Smart Approach
Slide 2: A Smart Approach to Technology Investment
For personal use only A Smart Approach to Technology Investment May 2019 Bailador Technology Investments Limited (ASX:BTI)
Slide 3: Technology Opportunity
For personal use only TECHNOLOGY OPPORTUNITY 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 4: Technology advances are creating exciting investment opportunities
Technology advances are creating exciting investment opportunities For personal use only MOBILE DATA 4 mbps 25 TECHNOLOGY OPPORTUNITY <1 mbps mbps SPEED 2G 3G 4G SMARTPHONE 0% 27% 66% PENETRATION 20 4000 Internet speeds (mbps) Internet users (millions) 15 3000 INTERNET 10 CONNECTIVITY 2000 1000 5 0
Slide 5: The ASX provides limited opportunity for tech exposure
The ASX provides limited opportunity for tech exposure For personal use only TECHNOLOGY OPPORTUNITY Sector Share of S&P 500 Index Share of ASX Information Technology 20% 3% Healthcare 16% Financials 13% Communication Services 10% Consumer Discretionary 10% Access to technology is limited Industrials
Slide 6: How do Australian investors get exposure to high growth technology companies?
For personal use only TECHNOLOGY OPPORTUNITY So how do Australian investors get exposure to high growth technology companies at a reasonable valuation? 5
Slide 7: Bailador invests in high growth technology companies
Bailador invests in high growth technology companies For personal use only INFORMATION TECHNOLOGY FOCUS INVESTMENT APPROACH PRIVATE COMPANIES $5 - $50M REVENUE PROVEN BUSINESS MODEL GLOBALLY ADDRESSABLE MARKETS MINORITY PROTECTIONS AND BOARD REPRESENTATION 6
Slide 8: 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 INVESTMENT APPROACH upside GROWTH Higher risk EARLY STAGE EXPANSION MATURITY STAGE TIME 7
Slide 9: Our business model is designed to generate premium returns
Our business model is designed to generate premium returns For personal use only INVESTMENT APPROACH INVESTING GROWING REALISING Diligence hundreds of Partner with Prepare businesses opportunities to management to scale for sale or IPO select the best globally 8
Slide 10: Access to quality expansion stage technology companies before they are public
For personal use only INVESTMENT APPROACH Bailador provides access to quality expansion stage technology companies at attractive valuations before they are public 9
Slide 11: Bailador has a portfolio of established, fast growth technology companies
Bailador has a portfolio of established, fast growth technology companies For personal use only PORTFOLIO CHARACTERISTICS 10 investments $209m 30% 82% recurring revenue2 portfolio company portfolio company revenue1 revenue growth2 1 Revenue for the year ended 31 December 2018 for the underlying comp
Slide 12: Portfolio companies are addressing huge global markets
Bailador’s portfolio companies are addressing huge global markets For personal use only PORTFOLIO CHARACTERISTICS 65% of portfolio revenue is generated in markets outside of Australia Based on revenue for the year ending 31 December 2018 and weighted based on carrying value in the portfolio. 11
Slide 13: Bailador favours SaaS and Marketplace business models
Bailador favours Software-as-a-Service (SaaS) and Marketplace business models For personal use only PORTFOLIO CHARACTERISTICS SaaS Marketplace Data Digital 77% 15% 6% Retail 2% CHARACTERISTICS Predictable recurring Efficient scalability Measurable metrics Ability to address global revenue streams ma
Slide 14: Global software revenue has exploded in the last years
Global software revenue has exploded in the last 20 years For personal use only PORTFOLIO CHARACTERISTICS SaaS is dominating software Global software industry revenue industry growth Source: Neeraj Agrawal & Logan Bartlett, Battery Ventures, Software May 2018. 13
Slide 15: SiteMinder
• $100m Annualised Recurring Revenue (ARR) • The clear global leader (triple the size of nearest competitor) For personal use only PORTFOLIO CHARACTERISTICS SiteMinder is the world leader in • 30,000+ hotel customers connecting hotels to online distribution • Business to business recurring subscript
Slide 16: Bailador continues to generate value growth across the portfolio
Bailador continues to generate value growth across the portfolio For personal use only CURRENT NTA THIRD PARTY NEXT VALUATION PORTFOLIO COMPANY GAINS VALUATION PER SHARE TRANSACTION REVIEW PORTFOLIO CHARACTERISTICS 55.9 0.47 ▲ 305% June 2019 14.6 0.12 ✓ ▲ 225% August 2019 12.6 0.10 ✓ ▲ 13% October 2
Slide 17: Our NTA growth is validated by third party transactions
Our NTA growth is validated by third party transactions For personal use only PORTFOLIO CHARACTERISTICS There have been 18 third party transactions in our portfolio companies. All have been at or above BTI carrying value. Cost 1 Third party transaction value 1 Cost is the total original cash cost of
Slide 18: Comparable SaaS companies suggest BTI has tremendous valuation upside
Comparable SaaS companies suggest BTI has tremendous valuation upside For personal use only PREMIUM GROWTH SAAS VALUATION QUADRANT V A L U AT I O N O P P O R T U N I T Y 30x 25x VALUATION MULTIPLE 20x WEIGHTED AVERAGE 15x 10x 5x 0x 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% REVENUE GROWTH RATE Note:
Slide 19: Valuation Opportunity
For personal use only V A L U AT I O N O P P O R T U N I T Y 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] 18
Slide 20: Portfolio company details
Portfolio company details For personal use only Name: Type: SaaS/B2B DBaaS/B2B SaaS/B2B/UGC Fintech Marketplace/Machine Learning World leader in hotel channel Leading tech platform for Cloud-based translation services Open source data platform for Australia’s #1 home loan management and distribution
Slide 21: 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 authorized representatives of Bailador (“Affiliates”). This presentation does not contain a complete descri
Slide 22: 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 (May 2019) on 6ix