Oakley Capital Investments Ltd Registered · LSE:OCI
Oakley Capital Investments Ltd Registered — Oakley Capital Investments — H1 2022 Earnings Presentation
31 slides from Oakley Capital Investments Ltd Registered's earnings presentation, September 2022
Slide 1: Interim Results
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Slide 2: Oakley Capital Investments
OAKLEY CAPITAL INVESTMENTS 2
Slide 3: Continued strong growth
Continued strong growth Performance for the six months ending 30 June 2022 630p £1,119m +17% NAV per share Net Asset Value 6-month total NAV return per share 397p £700m +23% Share price(1) Market capitalisation(1) 5-year CAGR (1) As at 7 September 2022 OAKLEY CAPITAL INVESTMENTS 3
Slide 4: Sustained and resilient NAV growth
Sustained and resilient NAV growth 10-year track record 7.00 +17% 00 6.00 6.30 5.38 5.00 4.00 4.03 £ 3.45 3.00 2.81 2.45 2.00 2.31 2.00 2.01 2.00 1.81 1.00 0.00 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Jun-22 Net Asset Value per share Share Price OAKLEY CAPITAL INVESTMEN
Slide 5: Key drivers of NAV growth
Key drivers of NAV growth 28 % £145m 72% Multiple expansion Portfolio value Financial performance growth Note: Portfolio value growth excludes FX movements and is on indirect investments only. OAKLEY CAPITAL INVESTMENTS 5
Slide 6: EBITDA growth driven by portfolio financial performance
EBITDA growth driven by portfolio financial performance 18% Average portfolio company LTM EBITDA growth £145m Portfolio value growth +38 pence +8 pence NAV per share uplift NAV per share uplift Note: Portfolio value growth excludes FX movements and is on indirect investments only. OAKLEY CAPITAL INV
Slide 7: Multiple expansion driven by realisations
Multiple expansion driven by realisations 93% of multiple uplift as a result of signed exits 13.7x Average EV/EBITDA multiple £145m Portfolio value growth +26 pence +8 pence NAV per share uplift NAV per share uplift Note: Portfolio value growth excludes FX movements and is on indirect investments on
Slide 8: Strong demand for our businesses
Strong demand for our businesses Average premium to book valuations 113% 68% 52% 52% Average since 39% 36% inception 21% 2017 2018 2019 2020 2021 2022 # exits: 2 4 1 2 1 4 Note: 2022 includes deals that have signed and are expected to complete post 30 June 2022. OAKLEY CAPITAL INVESTMENTS 8
Slide 9: Investing in digital disruption
Investing in digital disruption EDUCATION TECHNOLOGY & CONSUMER TECH-SERVICES ED CONSUMER TECH TECH >70% of the portfolio delivers services digitally >75% of the portfolio has recurring revenues OAKLEY CAPITAL INVESTMENTS 9
Slide 10: Balanced by sector and company
Balanced by sector and company Total investments £1,122m(1) WebPros 63.6m Grupo Primavera 62.2m 249m Contabo 60.1m TechInsights 37.2m £ Seedtag 10.9m Daisy 8.8m Total technology value ECOMMERCE ONE 6.1m Idealista 60.3m Facile 53.2m Wishcard Technologies 49.6m 346m North Sails 41.8m Windstar Medical
Slide 11: A pan-European portfolio
A pan-European portfolio FX exposure € $ £ 59% 23% 18% Technology Consumer Education OAKLEY CAPITAL INVESTMENTS 11
Slide 12: Portfolio construction offers some protection against macro factors
Portfolio construction offers some protection against macro factors SUPPLY CHAIN INSECURITY RISING INFLATION med med low high low high 0% 100% 0% 100% INTEREST RATES GEOPOLITICAL UNCERTAINTY med med low high low high 0% 100% 0% 100% OAKLEY CAPITAL INVESTMENTS 12
Slide 13: Controlling outcomes through value creation
Controlling outcomes through value creation Improving quality Digitisation Leadership Buy & Build of earnings development Recurring revenues E-commerce sales C-Suite executives hired Bolt-on acquisitions 65% 30% 5 10 Technology Consumer Education OAKLEY CAPITAL INVESTMENTS 13
Slide 14: Cash and Commitments
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Slide 15: Cash and expected proceeds to meet commitments
Cash and expected proceeds to meet commitments Outstanding Oakley Fund commitments (£m) £993m £993m £257m Expected to be uncalled Fund V(1) £669m £575m Expected to be called over a 1-5 year period £307m Origin Fund £86m Expected proceeds from £110m signed transactions Fund IV £155m Unused credit £10
Slide 16: Distributions
Track record of balanced investment and realisation activity Net investment cash flow 120 Distributions 100 80 60 40 20 0.0 Capital calls (20) (40) (60) (80) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 Net cash flow Capital calls Distributions Note: As at 30 June 2022. OAKLEY CAPITAL I
Slide 17: Maturing portfolio presents realisation opportunities
Maturing portfolio presents realisation opportunities On average, a portfolio company is held for 3.5 years <1 year 1-3 years >3 years Total assets £67m £367m £474m OAKLEY CAPITAL INVESTMENTS 17
Slide 18: PE Market Activity Analysis
PE Market Activity Analysis 18
Slide 19: Fundraising sees significant decline
Fundraising sees significant decline PE fundraising activity in Europe 240 110 220 100 200 90 180 80 160 70 140 60 107.1 120 99.1 50 91.0 100 87.9 81.6 72.7 40 80 62.2 59.0 30 60 50.2 40 20 27.9 20.6 20 10 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 22 Capital raised (€bn) Fund count Es
Slide 20: Record levels of dry powder
Record levels of dry powder Global private capital dry powder ($bn) 3,400 3,100 2,500 2,400 2,000 1,700 1,500 1,400 1,400 1,200 1,100 887 999 981 723 824 416 458 475 526 567 397 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Buyout ($bn) Source: Preqin OAKLEY CAPITAL INVESTMENTS 20
Slide 21: Market headwinds resulting in a drop off in activity
Market headwinds resulting in a drop off in activity PE deal activity in Europe 721.3 513.6 479.4 463.5 449 432 406.7 335.9 287.7 224.5 185.9 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Deal value (€bn) Deal count Estimated deal count Estimated deal value (€bn) Source: Preqin Q2 2022 Euro
Slide 22: Private company valuations weaken
Private company valuations weaken Median EV/EBITDA buyout multiple 14.0x 14 13.2x 12.7x 12.8x 12.2x 12 11.1x 11.0x 11.4x 10.0x 10.9x 10 10.3x 8 6 4 2 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 EV/EBITDA multiple Estimated Source: Preqin Q2 2022 European PE breakdown, June 2022 OAKLEY C
Slide 23: Foundations of future growth
Foundations of future growth
Slide 24: Unlocking value through Oakley's approach to sourcing
Unlocking value through Oakley’s approach to sourcing 89% ORIGINATION Business founder network provides privileged access to off-market Primary deals opportunities NAVIGATING COMPLEXITY The ability to navigate carve-outs, > 80% Uncontested deals founder-led deals and complex stakeholder management D
Slide 25: New assets underpinned by accelerating megatrends
New assets underpinned by accelerating megatrends Consumer shift to online Business migration to the cloud Growing global demand for Growth in global demand and high-quality education outsourcing Note: vLex and Phenna Group were acquired post-period end. OAKLEY CAPITAL INVESTMENTS 25
Slide 26: The entrepreneurs we back
The entrepreneurs we back Note: vLex and Phenna Group were acquired post-period end. OAKLEY CAPITAL INVESTMENTS 26
Slide 27: Reinvesting to benefit from future growth potential
Reinvesting to benefit from future growth potential $600bn semiconductor Digital under penetration in Growth in gaming and market underpinned by Italian market for online ecommerce drive demand growing demand for the price comparison with for cloud infrastructure chips that drive our opportunities f
Slide 28: Closing the discount to NAV
Closing the discount to NAV LISTED PE OCI-SPECIFIC Reporting Performance Direct investments Confidence in valuations Frequency Scale Cash returns Topic Fair market Best in class +23% £20m methodology used Reporting with 5-year NAV return Share buy-back following int’l guidelines improved transparenc
Slide 29: Counter cyclical mega trends
Optimism in the face of global uncertainty The three key factors driving a positive outlook for OCI 1 2 3 Demand for Counter Our ability Oakley cyclical to impact portfolio mega trends companies companies OAKLEY CAPITAL INVESTMENTS 29
Slide 30: Disclaimer and important information
Disclaimer and important information ▪ This presentation (the “Presentation”) is being communicated on a confidential basis and may not be reproduced in whole or in part, nor may its contents be disclosed to any third party without the prior written consent of Oakley Capital Limited. This Presentati
Slide 31: www.oakleycapitalinvestments.com
www.oakleycapitalinvestments.com oci-investorrelations@oakleycapital.com
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