Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — H1 FY2023 Earnings Presentation
27 slides from Bailador Technology Investments's earnings presentation, Feb 8, 2023
Slide 1: Interim Results presentation, six months ended 31 December 2022 (HY23)
For personal use only Interim Results presentation Six months ended 31 December 2022 (HY23) Bailador Technology Investments Limited (ASX:BTI)
Slide 2: Contents
Contents For personal use only HY23 PORTFOLIO PERFORMANCE PAGE 3 – 19 HY23 SUMMARY FINANCIALS PAGE 20 – 22 APPENDIX PAGE 23 – 24 This presentation was authorised for release to the ASX by Helen Foley, Company Secretary & Chief Financial Officer, on 8 February 2023. 2
Slide 3: Executive Summary
Executive Summary ü Interim dividend of 3.5 cents per share (fully franked) declared1, part of ongoing dividend commitment For personal use only • Represents an annualised yield of 5.4% (7.7% on a grossed up basis) PORTFOLIO PERFORMANCE • 10.9 cents per share declared/paid over last 12 months, fully
Slide 4: The Bailador portfolio ended 2022 in a strong position
The Bailador portfolio ended 2022 in a strong position For personal use only 7 PORTFOLIO PERFORMANCE investments1 $316m portfolio company revenue2 72% portfolio company revenue growth3 ~61% gross margin3 ~88% recurring revenue3 Note: 1Excludes Brosa which entered voluntary administration in December
Slide 5: Bailador outperformed the technology sector by 21% in 2022
Bailador outperformed the technology sector by 21% in 2022 Indexed For personal use only 31-Dec-21 = 100 PORTFOLIO PERFORMANCE 120 110 100 NTA/sh Portfolio Return1 36.4% outperformance 90 BTI.ASX Shareholder Return2 80 S&P ASX All Technology Index 21.2% outperformance 70 Performance Benchmark ^XTX 6
Slide 6: NTA per share movement largely driven by September 2022 dividend payment
NTA per share movement largely driven by September 2022 dividend payment • Dividends fully-franked; 40% DRP take-up of September 2022 dividend For personal use only NTA per share PORTFOLIO PERFORMANCE Bailador NTA movements 2.00 1.90 1.80 Dividend paid (Sep-22)1 Amount 30-Jun-22 NTA (pre-tax) $262.0
Slide 7: Portfolio valuation movements driven largely by third party transactions and marked to market
Portfolio valuation movements driven largely by third party transactions and marked to market • Bailador’s overall portfolio valuation flat over HY23 despite significant reductions in value of SiteMinder and Brosa For personal use only Portfolio Valuation movements PORTFOLIO PERFORMANCE $140m $135m
Slide 8: Bailador's valuation has remained conservative despite the sell-off in tech stocks
Bailador’s valuation has remained conservative despite the sell-off in tech stocks EV/LTM Revenue Multiple For personal use only 40x PORTFOLIO PERFORMANCE 35x 30x 25x 20x 15x 10x 5x 0x Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct
Slide 9: Interim dividend of 3.5 cents per share fully franked declared
Interim dividend of 3.5 cents per share fully franked declared to be paid in March 2023 • Bailador has committed to paying 4% of NTA (pre-tax) per annum fully franked, paid semi-annually For personal use only • Total dividends of 10.9 cents per share (fully franked) declared over last 12 months PORT
Slide 10: BTI offers a superior dividend yield vs peers
BTI offers a superior dividend yield vs peers For personal use only Dividend yield (last 12 months) of select peers PORTFOLIO PERFORMANCE 10.0% 9.0% = DRP currently offered 8.0% 7.0% Yield% 6.0% Average = 5.5% pa1 5.0% Average = 4.5% pa 4.0% 3.0% Average = 2.0% pa 2.0% 1.0% 0.0% WTC TNE ALU APX HSN
Slide 11: Our business model is designed to generate premium returns
Our business model is designed to generate premium returns For personal use only PORTFOLIO PERFORMANCE INVESTING GROWING REALISING Diligence hundreds of Partner with Prepare businesses opportunities to management to scale for sale or IPO select the best globally 11
Slide 12: Growth in carrying value of investments is conservative versus 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 PORTFOLIO PERFORMANCE Revenue Carrying Value Portfolio revenue has increased by 7.1x… …but BTI has only recognised a 7.1x value increase
Slide 13: Bailador has a track record of full and partial cash realisations
Bailador has a track record of 11 full and partial cash realisations • These have delivered a combined 3.8x multiple on invested capital at an IRR of 22.4% For personal use only • All 11 realisations have been above carrying value PORTFOLIO PERFORMANCE Cash $118m Cash $20m Cash $15.1m Cash $13m Cash
Slide 14: Bailador's NTA composition has changed due to cash realisations
Bailador’s NTA composition has changed over the past two years due to cash realisations • Bailador realised over $183m in cash from transactions executed during the peak of the market For personal use only • With $120m in Net Cash (48% of NTA) BTI is well positioned to take advantage of additional i
Slide 15: Recent increase in Net Cash driven by three successful cash realisations
Recent increase in Net Cash driven by three successful cash realisations For personal use only PORTFOLIO PERFORMANCE Instaclustr returned 14.2x invested SMI returned 2.7x invested capital at SiteMinder investment returned 24.8x capital at an IRR of 79.8% an IRR of 15.0% invested capital at an IRR of
Slide 16: Market valuation multiples have reduced and Bailador is well positioned
Market valuation multiples have reduced and Bailador is well positioned to make new investments For personal use only Average technology multiples have declined to PORTFOLIO PERFORMANCE • Three follow-on investments (InstantScripts, Rezdy and Access Telehealth) already made in below their long-term
Slide 17: Bailador has generated solid investor returns over the medium-term
Bailador has generated solid investor returns over the medium-term • BTI has outperformed benchmarks in all periods For personal use only BTI Portfolio Return1 PORTFOLIO PERFORMANCE 20% Returns as at 31 Dec 2022 1-yr 2-yr 3-yr Portfolio Return (%pa)1 -3.6% 14.5% 12.3% 15% 15% 12% Shareholder Return
Slide 18: Strong portfolio performance and prospects across the Bailador portfolio
Strong portfolio performance and prospects across the Bailador portfolio Portfolio Sector Investment Sector Sector thematics Operational milestones weighting growth For personal use only • Delivered strong HY23 performance (revenue up 30.4% on PORTFOLIO PERFORMANCE HY22, including transaction revenu
Slide 19: Strong performance and prospects across the Bailador portfolio (cont.)
Strong performance and prospects across the Bailador portfolio (cont.) Portfolio Sector Investment Sector Sector thematics Operational milestones weighting growth For personal use only ü Highly fragmented provider landscape with • Multiple growth drivers via both organic (customer) and PORTFOLIO PER
Slide 20: Summary Profit and Loss
Summary Profit and Loss For the half year ended 31 December 2022 For personal use only HY23 SUMMARY FINANCIALS HY22 HY23 $000 $000 Change in value of portfolio assets 65,214 (5,818) Interest income 82 1,479 As a result of significant increase to cash balance from recent realisations Total investment
Slide 21: Summary Financial Position
Summary Financial Position 30 June 2022 31 December 2022 Movement Decrease in cash includes Sep-22 dividend For personal use only $000 $000 $000 ($10.4m), payment of performance fee ($11.1m) and additional portfolio HY23 SUMMARY FINANCIALS Cash 143,784 115,138 (28,646) investments ($6.5m) Marketable
Slide 22: Summary 2022 NTA movement by component
For personal use only Ne $100m $150m $200m $250m $300m $350m $400m $450m $0m $50m tC In as s ta h clu De st c-2 rr 1 ea lis at io n SM (fu Ir ll) ea lis at In io st n an (fu tS ll) cr ipt sf ol Re low zd -o yB n rid ge Fu Se nd p- ing 22 Di vid en d pa id Cash movements Se p- 2 2D RP Po rt fo lio co
Slide 23: Bailador's commitment to ESG principles
Bailador’s commitment to ESG principles For personal use only • Bailador is establishing, integrating and implementing a long-term sustainability framework and goals • Bailador is measuring, managing and mitigating carbon emissions we are directly responsible for • In FY22, Bailador achieved the fol
Slide 24: Bailador integrates ESG principles across the investment cycle
Bailador integrates ESG principles across the investment cycle For personal use only Screening and ü Bailador undertakes a high-level assessment of carbon intensity of potential qualification investments ü Bailador considers high carbon intensity companies (e.g. data centres and bitcoin mining) to h
Slide 25: Bailador provides investors with access to high-growth technology companies
For personal use only Bailador provides investors with access to high-growth expansion-stage technology companies at attractive valuations. Investors get access through an ASX traded share [ASX:BTI] with liquidity available at any time 25
Slide 26: 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 Investments Ltd (“Bailador”) or by authorised representatives of Bailador (“Affiliates”). This presentation does not contain a complete descr
Slide 27: 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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