Trinity Capital Inc. · NASDAQ:TRIN

Trinity Capital — Q4 2024 Earnings Presentation

36 slides from Trinity Capital's earnings presentation, Feb 26, 2025

  1. Slide 1: Fourth Quarter and Full Year 2024 Investor Presentation

    F O U R T H Q U A R T E R A N D F UL L Y E A R 202 4 I NVE STOR PRES ENTAT ION

  2. Slide 2: Forward-Looking Statements | Disclaimer

    FORWARD-LOOKING STATEMENTS | DISCLAIMER Trinity Capital Inc. (the “Company”) cautions that this presentation may contain forward-looking statements that are based on current expectations and assumptions about future events, and which are not based in historical fact. The forward-looking statements i

  3. Slide 3: Company Overview

    CO MPANY O VE R VI E W

  4. Slide 4: Trinity Capital Overview

    TRINITY CAPITAL OVERVIEW Diversif ied f inancial solutio ns to growt h -sta ge com panies | NASDAQ – TRIN, T RI NZ , TRINI 16+ YEAR MARKET CAP / TRACK P O R T F O L I O (4) L I Q U I D I T Y (4) R E C O R D (1) DI V ID END Y I EL D $1,286.7M $4.1B F u nd ing s $1.0B $496.6M Secured Loans Market C a

  5. Slide 5: The Trinity Platform

    THE TRINITY PLATFORM Unique internal manage ment structure an d capit alizatio n diversificat ion f ort ifies the TRIN p latfo rm and produces enhan ced valu e proposit ion T R I N I T Y C A P I TA L ( N A S D A Q : T R I N ) In te r n ally M a na g ed BD C Te c h L e n d i n g | E q u i p m e n t F

  6. Slide 6: Diverse Business Verticals

    DIVERSE BUSINESS VERTICALS Diversif ied a cross investme nt t ype, transactio n size, indust ry and g eography SPO NSOR FINANCE En te rpr i se va lu e sec ure d te rm lo ans t o pr ivat e eq uity -ba cke d sof t war e LIFE SC IENCES co mpan ie s TEC H LENDIN G Se nior se cured term Senior secured te

  7. Slide 7: Why Is Trinity Different

    WHY IS TRINITY DIFFERENT With unique capitalization and diversified businesses, we aim to provide investors with stable and consistent returns by offering access to the private credit market Internally ▪ Aligned interests between employees and shareholders Managed BDC ▪ Management company and a pool

  8. Slide 8: Entrenched Industry Relationships

    ENTRENCHED INDUSTRY RELATIONSHIPS First-call relat ionships wit h t op ind ustry-partne rs cu ltivate d over yea rs o f exp erien ce Broad origination pipeline of private equity and venture capital firms, tech banks, former clients, service providers and inbound interest Relationships with top marke

  9. Slide 9: Underwriting Approach and Risk Mitigation

    UNDERWRITING APPROACH AND RISK MITIGATION Disciplined investment approach keeps our annualized loss rate at 23 bps, which is more than offset by realized gains on warrant and equity investments (1) CAPITALIZATION FINANCIALS DEBT STRUCTURE Investor Syndicate Revenue & Collateral Gross Margins Cash Li

  10. Slide 10: Tech Lending Term Loans

    TECH LENDING Senior secured t erm loans to institu tionally -backe d te chnology compan ies Select Examples Term Loans WHOOP is a leading designer for wearable health and fitness trackers that capture biometric data shown to have the most impact on your health. 01 ▪ Investor Syndicate SECURED LOANS

  11. Slide 11: Equipment Financing

    EQUIPMENT FINANCING Fin ancing mission-critical m anufa cturing eq uipment and hard asse ts Select Examples Equipment Financings Rocket Lab delivers reliable launch services, spacecraft components, satellites and other spacecraft to make it faster and easier to access space. ▪ Investor Syndicate 01

  12. Slide 12: Life Sciences Term Loans

    LIFE SCIENCES Senior secured t erm loans fo r growth ca pital to co mmercial sta ge lif e science s compa nies Select Examples Shoulder Innovations is a shoulder arthroplasty-focused medical device Term Loans development company that designs and commercializes products that have the potential for im

  13. Slide 13: Asset-Backed Lending Revolving Credit Lines

    ASSET-BACKED LENDING Asset-backe d lend ing t o ban krupt cy-remote SPVs Select Examples Parafin empowers small businesses by Revolving Credit Lines providing them customized, embedded financial products through the platforms they already use, such as on-demand marketplaces, point-of-sales solutions

  14. Slide 14: Sponsor Finance Term Loans

    SPONSOR FINANCE Enterprise value secured t erm loans to private equit y-backe d sof tware compan ies Select Examples Term Loans Impel offers auto dealers, wholesalers, OEMs, and marketplaces the industry’s most advanced AI-powered customer lifecycle management platform. 01 ▪ Investor Syndicate SENIO

  15. Slide 15: Financial Highlights

    FI N ANCI AL HI GH LI GH T S

  16. Slide 16: Q4 2024 Highlights

    Q4 2024 HIGHLIGHTS ▪ Total Investment Income of $70.8M ▪ Net Investment Income (“NII”) of $34.6M Robust ▪ Net Interest Margin (“NIM”) of 12.1% Earnings ▪ NII per share of $0.58 provides 113.7% of regular distribution coverage ▪ Consistent fourth quarter regular dividend distribution of $0.51 per sha

  17. Slide 17: Solid Shareholder Returns

    SOLID SHAREHOLDER RETURNS DIVIDEND G ROW TH $9.50 $0.55 $0.51 $0.51 $0.51 $0.51 $9.00 $0.50 $0.49 $0.48 $0.50 $8.50 $0.47 $0.46 $0.70 $8.00 $0.45 $0.70 $0.45 $7.50 $0.42 $0.40 $0.70 $7.00 $0.40 $0.70 $6.50 $0.36 $6.00 $0.33 $0.70 $0.35 Net Investment Income covered $0.70 $5.50 regular dividend by 11

  18. Slide 18: Quarterly Income Statement

    QUARTERLY INCOME STATEMENT For the three months ended (In thousands, except per share amounts) 12/31/2024 09/30/2024 06/30/2024 03/31/2024 12/31/2023 Total Investment Income $ 70,832 $ 61,766 $ 54,641 $ 50,453 $ 47,834 Interest expense and other debt financing costs 19,052 16,868 13,885 12,144 10,44

  19. Slide 19: Income Source & Portfolio Yield Trends

    INCOME SOURCE & PORTFOLIO YIELD TRENDS Strong Yields Produce Solid Investment Income SOU R C ES OF I NVESTMEN T IN C OM E POR TFO LI O YIELD S (IN $000 S ) $70,000 $1,750 16.7% 17.0% 12.5% 16.4% 16.0% 16.1% $60,000 9.7% 15.8% $1,500 16.0% 17.5% 10.1% $50,000 4.8% 18.5% $1,250 15.3% 15.0% 11.2% 15.2%

  20. Slide 20: NII Returns and Use of Leverage

    NII RETURNS AND USE OF LEVERAGE N I I R E T U R N O N AV E R A G E A S S E T S ( R O A A ) (1) & N I I R E T U R N O N AV E R A G E E Q U I T Y ( R O A E ) (2) 20.0% 17.3% 16.6% 15.8% 15.0% 10.1% 10.7% 10.0% 7.6% 7.5% 6.9% 5.6% 4.7% 5.0% Delivering strong returns through 0.0% 2020 2021 2022 2023 202

  21. Slide 21: Net Investment Income (NII) per Share Bridge

    NET INVESTMENT INCOME (NII) PER SHARE BRIDGE RECO NCI LIATIO N O F Q UARTERLY NII PER SHARE Increase Decrease Total $0.70 $0.06 $0.60 $0.58 $0.54 $(0.01) $(0.01) $0.50 $0.40 $0.30 $0.20 $0.10 $- 3Q24 NII Change in Change in Change in 4Q24 NII per Share Investment Income Interest Expense Operating Ex

  22. Slide 22: Quarterly Balance Sheet

    QUARTERLY BALANCE SHEET (In thousands, except per share amounts) 12/31/2024 09/30/2024 06/30/2024 03/31/2024 12/31/2023 Assets Total inves tments at f air value $ 1,725,750 $ 1,686,862 $ 1,424,815 $ 1,363,862 $ 1,275,180 Cas h and c ash equivalents 9,627 8,535 46,102 11,967 4,761 Int erest receivabl

  23. Slide 23: Net Asset Value (NAV) per Share Bridge

    NET ASSET VALUE (NAV) PER SHARE BRIDGE RECO NCI LIATI ON O F Q UARTERLY NAV PER SHARE Increase Decrease Total $14.00 $0.58 $13.50 $0.04 $0.16 $13.35 ($0.05) $13.13 ($0.51) $13.00 $12.50 $12.00 Earnings and Investment Portfolio Share Distributions Performance Impact(1) $11.50 $11.00 3Q24 NAV Net Divi

  24. Slide 24: Debt Capital Structure

    DEBT CAPITAL STRUCTURE Diver sified Bor ro wing s ($ in m illion s) a s of De cem ber 31, 2024 Funding Source Debt Commitment Outstanding Principal Stated Maturity Interest Rate Notes: 2025 Unsecured Notes(1) $152.5 $152.5 January 16, 2025(1) 7.00% Convertible Notes (2) $50.0 $50.0 December 11, 2025

  25. Slide 25: Portfolio Highlights

    PO RT FO LI O HI GH LI GH T S

  26. Slide 26: Portfolio Diversification

    PORTFOLIO DIVERSIFICATION Diversified across investment type, transaction size, industry and geography Investment Type(1) Transaction Size(1)(2) 27.7% 7.2% 31.7% Loans Greater than $30M 74.5% Equipment Financing $15M - $30M 18.3% Equity & Warrants Less than $15M 40.6% Industry Type(1) Geographic All

  27. Slide 27: Portfolio Trends

    PORTFOLIO TRENDS FIXED VS FLO ATI NG D EB T IN VESTM EN TS ( 1) TOTAL PO RTFO LIO BY INVESTMENT TYPE ( 2) Floating Fixed Loans Equipment Financing Equity & Warrants $1,750,000 6.7% 7.2% 24.6% 23.4% 22.9% 31.0% 30.1% $1,500,000 18.1% 18.3% 6.3% 5.5% $1,250,000 4.2% 20.4% 23.3% IN THOUSANDS 26.4% $1,0

  28. Slide 28: Disciplined Credit Rating

    DISCIPLINED CREDIT RATING Consistent and Disciplined Underwriting Standards 2.9 2.9 3.0 $1,600 2.7 2.7 2.7 2.5 $1,200 2.0 Total Debt Investments (FV, $ in million) (1) $800 $1,562 $1,589 $1,279 $1,324 Weighted Investment Credit Rating $1,214 $400 1.5 $0 1.0 4Q23 1Q24 2Q24 3Q24 4Q24 Credit Risk Ratin

  29. Slide 29: Interest Rate Sensitivity

    INTEREST RATE SENSITIVITY ANNUALIZED I NTEREST RATE SENSITIVITY ($ i n th ous an ds , ex ce pt pe r sh are da ta ) $25,000 $0.36 $0.40 77.1% floating rate debt $20,000 $0.30 investment portfolio as $15,000 $0.18 $10,000 $22,209 $0.20 of December 31, 2024 (1) $5,000 $11,105 $0.10 $- $- $(3,487) $(5,0

  30. Slide 30: Hypothetical Warrant Upside

    HYPOTHETICAL WARRANT UPSIDE For Illustration Purposes Only 2X MULTIPLE 177 Warrant Positions in 115 Portfolio Companies • Proceeds of $72.7 million (2X) • Potential gain of $16.0 million ▪ GAAP fair value ~ $51.5 million or $0.26 per share ▪ GAAP cost ~ $40.7 million ▪ ~ $72.7 million in nominal exe

  31. Slide 31: Diversified Portfolio

    DIVERSIFIED PORTFOLIO Select List of Current & Historical Investments © 2025 Trinity Capital Inc. | 31

  32. Slide 32: Analyst Coverage

    AN ALYS T CO VE RA GE

  33. Slide 33: Extensive Industry Analyst Coverage

    EXTENSIVE INDUSTRY ANALYST COVERAGE Followed by eight firms Pa ul Jo hnson Fi ni an O ’ Shea M i tch el l Pen n D oug la s H art er (initiated coverage 2/23/2021) (initiated coverage 2/23/2021) (initiated coverage 5/3/2021) (initiated coverage 2/23/2021) TB D ( 1 ) Chr is top her Nol an Cas ey Al ex

  34. Slide 34: Supplemental Information

    S U PPL EME N TA L I NF OR MAT I ON

  35. Slide 35: Regulation & Structure

    REGULATION & STRUCTURE Trinity Capital Inc. is an Internally Managed BDC regulated under the 1940 Act and has elected to be treated as a RIC for Federal Income Tax Purposes beginning with its Taxable Year ending December 31, 2020 BUSINESS DEVELOPMENT COMPANY (BDC) ▪ Regulated by the SEC under the In

  36. Slide 36: Thank You

    THANK YOU A TRINITY CAPITAL TRINITYCAPITAL.COM NASDAQ: TRIN

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