Fs Kkr Capital Corp. · NYSE:FSK
Fs Kkr Capital — FS Investment — Q2 2014 Earnings Presentation
18 slides from Fs Kkr Capital's earnings presentation, Aug 15, 2014
Slide 1: Second Quarter 2014 Financial Information
y/N FS INVESTMENT W FS Investment Corporation SECOND QUARTER 2014 FINANCIAL INFORMATION www fsinvestmentcorp.com
Slide 2: Important Disclosure Notice
Important Disclosure Notice This presentation may contain certain forward-looking statements, including statements with regard to the future performance of FS Investment Corporation (FSIC, we or us). Words such as “believes,” “expects,” “projects” and “future” or similar expressions are intended to
Slide 3: Financial and Portfolio Highlights
Financial and Portfolio Highlights (at pc ahare amounts reba nd ie 244 ants 243 6MEt4 MES [Net investment income per share $0.23 $022 $029 $0.4 $0.49 ‘Adjusted net investment income per share™ 30.26 $023, $027 $0.49 $0.50 Total net realized and unrealized gain (oss) on investments per share $0.04 $0
Slide 4: Select Historical Information
Select Historical Information (cota anoetsn an) srsoz014 —sisteote s2ro1r2013 93072013 _6/s0r2013, irvestment, ave $4277.03 4077627 $497.581 s4200801 $3998.92 Portfolio Data Number e Porfolo Compares 125 18 185 182 200 Average Annual EBITDA of Porto Companies 81000 si74200 si90700—_s252800 $281,000
Slide 5: Select Direct Origination Information
Select Direct Origination Information (Gotar amounts in hewsads) 6730/2014 Now Direct Originations Total Commitments (including untunded commitments) 529871 Evsted investments netuding partial paysouns) (114.422) [Net Direct Originations. $415,448 [Now Direct Originations by Asset Class (Including u
Slide 6: Quarterly Operating Results
Quarterly Operating Results (Gotar amounts in thousands, exept per share amounts) Total investment income Net expenses (68.919) Net investment income before taxes 355877 Geese taxes = Net investment income 355877 Total net realized and unrealized gain (oss) on investments 24,183 Not increase (decrea
Slide 7: Quarterly Operating Results Detail
Quarterly Operating Results Detail iv mousanas) Investment income Interest income Fee income Dividend income Total investment income Operating expenses. ‘Management fees” Capital gains incentive fees* ‘Subordinated income incentive fees ‘Administrative services expenses ‘Stock transfer agent fees ‘A
Slide 8: Quarterly Gain/Loss Information
Quarterly Gain/Loss Information Thre th: d (in tousands) ersor2014 9/31/2014 12/31/2013 9130/2013 6130/2018 Realized gain/loss [Net realized gain (loss) on investments — unaffiiated $6716 $13,822 $9,794 $16,447 [Net realized gain (loss) on foreign currency 114 (19) G9) gain (loss) 3 $16. Unrealized
Slide 9: Quarterly Balance Sheets
Quarterly Balance Sheets (iv tnousands, except per share armours) ersor2014 3191/2014 12/31/2013 9/90/2013 6/30/2013 Assots Investments, a far value — unafitated 84200471 $4.077.627 $4,137,881 $4200.01 $3,988,902 Investments, a far valve — affiated 7 ee TS Cash 244.074 207885 227328 200430 Receivabl
Slide 10: Financing Arrangements
Financing Arrangements Facilities as of June 30, 2014° Type of Facility Rate outstending — Avatianip Maturity Dato voor) Ach Steet Cred Facky" Revohing —_—_—L + 205%, $250,000 = Agus 20, 2016 Broad Steet Cres Fact Revohing + 150% $125.00 = December 20,2014 ING Cred Fciy Revohing —__—L+ 250% $250 908
Slide 11: Distribution History
Distribution History"* $0.10 $0.12 S008 $0.10, "Regular cash distributions per share “= Special cash distributions per share $0.00 MAA Jan-09 Juk09 anf uO. Jatt Jul? Jant2_ Ju2Jan13 JUS. Jan-t@ Juba + On July 1, 2014, the board of directors of FSIC declared a regular monthly cash distribution of $0.
Slide 12: Investment Portfolio
Investment Portfolio Industry Diversification ‘As of June 30, 2014, based on fair value. + As of June 30, 2014, FSIC’s three largest industry concentrations based on fair value were Capital Goods (21%); Consumer Services (15%); and Energy (11%). "=Capital Goods ‘= Commercial & Professional Services
Slide 13: Issuer Concentration
Issuer Concentration Issuer Concentration ‘Top ten portfolio companies as of June 30, 2014, based on fair value and excluding unfunded commitment amounts. sminitrator Systems, ne ‘=Safariang, LLC ‘Corel Corp. mOSP Group, Ine ‘sAmerican Energy Utea, LLC Theimasys Corp. ‘=Dent Wizard Intemational Corp
Slide 14: Portfolio Asset Quality
Portfolio Asset Quality June 30,2014 March 31, 2014 ‘June 30,2013, Investment Rating! FairValue %ofPortfolio Fair Value %of Portfolio _Falr Value % of Portfolio 1 $402,787 9% $423,208, 1% 2 3.450.489 2% 3276702 80% 3 331225 8% $29,600 2% 4 15310 0% 41093 % 5 27202 1% 6.938 0% Total $43 s00% $4,077,6
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures’ Three Months Ended 9130/2013 6/30/2013, evs0r2014 — syati2014 12/31/2013 GAAP net investment income per share $0.23, $022 $0.20 Pus capital gains incentive fees per share $001 $0.02 $0.02 Plus excise taxes per share : : $0.02 Pus one-time expenses per s
Slide 16: End Notes
End Notes » 2 3 4 oy % Page 16 “The por share data was derived by using the weighted average shares of our common stock oustanding during the applicable period, Per share numbers may ‘not sum veto rounding ‘Adjsted not investment income is a non-GAAP financial measure. We present adjsted net investm
Slide 17: End Notes (Cont'd)
End Notes (Cont'd) n 3) 2 10) oy 2 3) Page 17 Pursuant tothe investment acvsory agreements then in elec, FE Income Adviser, LLC, FSICs investment adviser ("FB Advisor’) was ened to an annual base management fee of 20% of the average value of FSIC's gross assets during the tree and ax monte ended une
Slide 18: Corporate Information
Corporate Information Michael C. Forman Michael C. Forman Ben Holman Calman ofthe Boars Calman of he Boars Phone: (216)-22048268 Chet Exactve Oe Chet Exectve Moe mal: benelman@itankinsquare.com David J. Adelman Gerald F. Stahlecker Vie Chaman President Present and Chit Executive Ofer of Campus Apart