Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Shareholder Meeting (October 2021)
48 slides from Bailador Technology Investments's shareholder meeting presentation, Oct 26, 2021
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 26th October 2021 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: David Kirk
For personal use only David Kirk Co-Founder & Managing Partner 2
Slide 3: Bailador is backed by a strong, majority independent board
Bailador is backed by a strong, majority independent board For personal use only David Kirk, Executive Chairman Andrew Bullock, Non-Executive Director • Appointed 2014 • Appointed 2014 • Re-elected October 2020 • Re-elected October 2019 • Chair of Audit and Risk Committee Paul Wilson, Executive Dire
Slide 4: Exposure to expansion-stage technology companies
For personal use only 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] 4
Slide 5: 2021 Financial Year End Update
2021 Financial Year End Update The Bailador portfolio entered FY22 in a strong position For personal use only ⇢ Portfolio revenue growth rate was 14% (36% ex-travel investments) and we expect growth to pick up as travel increases BTI realised investments in three companies – DocsCorp, Lendi and
Slide 6: The Bailador portfolio entered FY22 in a strong position
The Bailador portfolio entered FY22 in a strong position For personal use only 10 8 June 2020 July 2021 investments investments Full cash realisations: New investments: $269m portfolio company revenue1 14% 36% portfolio company portfolio company revenue growth2 revenue growth (ex-travel)3 (acquired
Slide 7: It was a very active FY21 for the Bailador portfolio
It was a very active FY21 for the Bailador portfolio ⇢ 89% shareholder return and 23% NTA per share growth For personal use only 3 full cash 2 follow-on 1 merger 2 new exits investments investments • 53% uplift to carrying value • $3.8m invested via • Merger with Nosto (Jun-21) • Global AI-powered •
Slide 8: Strong portfolio valuation increase in FY21
Strong portfolio valuation increase in FY21 driven by third party transactions ⇢ Portfolio valuation up 35% before follow-on investments and cash realisations For personal use only Baialdor FY21 Portfolio Valuation Movements $220m $200m $180m FY21 Valuation Third party Portfolio Company Movement ($m
Slide 9: Bailador outperformed the technology sector by 49.4% in FY21
Bailador outperformed the technology sector by 49.4% in FY21 Indexed For personal use only 30-Jun-20 = 100 240 220 [BTI.ASX] 200 180 49.4% 160 outperformance 140 120 S&P ASX All Technology Index 100 [XTX.ASX] 80 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-
Slide 10: FY21 Financial Performance
FY21 Financial Performance For the year ended 30 June 2021 For personal use only FY20 FY21 $000 $000 Change in value of portfolio assets (1,648) 52,032 Interest income 23 100 Total investment growth (1,625) 52,132 1.75% management fee calculated on pre- Management fee (2,694) (3,144) tax NTA Perform
Slide 11: Bailador integrates ESG principles across the investment cycle
Bailador integrates ESG principles across the investment cycle For personal use only Screening and • Bailador undertakes a high-level assessment of carbon intensity of potential qualification investments • Bailador considers high carbon intensity companies (e.g. data centres and bitcoin mining) to h
Slide 12: Bailador expects FY22 to be a significant year
Bailador expects FY22 to be a significant year for new investments and profitable realisations ⇢ The portfolio has been resilient to the COVID disruption and is well positioned to navigate any future COVID headwinds For personal use only ⇢ The team is evaluating numerous opportunities to invest addi
Slide 13: Paul Wilson
For personal use only Paul Wilson Co-Founder & Managing Partner 13
Slide 14: Bailador invested $5.5m into InstantScripts
In July 2021 Bailador invested $5.5m into digital healthcare platform InstantScripts ⇢ InstantScripts enables Australians to conveniently access high quality doctor care and routine prescription medication For personal use only Business overview InstantScripts investment thesis • InstantScripts deli
Slide 15: Bailador's largest holding continues to perform well
Bailador’s largest holding continues to perform well 44% O F B T I N TA 5 ⇢ IPO expected to complete in early November Revenue For personal use only SiteMinder is the world leader in connecting hotels to online distribution channels for accommodation bookings 20.4x • The leading global SaaS hotel de
Slide 16: SiteMinder IPO details
SiteMinder IPO details ⇢ IPO valuation represents $17m (or 21%) uplift to Bailador’s carrying value at Sep-21 For personal use only ⇢ Effective 44.0% IRR and 22.7x multiple of original cash invested ⇢ Bailador is undertaking a partial cash realisation of $15.1m (remaining $84.6m investment escrowed)
Slide 17: Bailador's second largest holding: Instaclustr
19% O F B T I N TA 1 Bailador’s second largest holding is showing continued very strong growth Revenue For personal use only Instaclustr is an open-source-as-a-service platform for complex big data applications 8.0x • Rapid growth in high margin recurring revenue • Sector dynamics becoming appreciat
Slide 18: Instaclustr's comparables show sector dynamics
Instaclustr’s comparables show sector dynamics being appreciated by the market …but not yet factored into BTI’s Instaclustr valuation For personal use only Peer Average = 29.9x Instaclustr1 Elastic MongoDB Global Infra Software (Listed) Confluent US Infra Software2 (median) Megaport AU SaaS (Listed)
Slide 19: Strong performance and prospects across the portfolio
Strong performance and prospects across the Bailador portfolio Portfolio Sector For personal use only Investment Sector Sector thematics FY21 operational milestones weighting growth International travel remains patchy • Delivered stable financial performance despite no Travel / Regional travel s
Slide 20: Strong performance and prospects across the portfolio (cont.)
Strong performance and prospects across the Bailador portfolio (cont.) Portfolio Sector For personal use only Investment Sector Sector thematics FY21 operational milestones weighting growth Demand for digital/streaming media has accelerated • Launched new digital pricing (CPM) products using drama
Slide 21: Our business model is designed to generate premium returns
Our business model is designed to generate premium returns For personal use only INVESTING GROWING REALISING Diligence hundreds of Partner with Prepare businesses opportunities to management to scale for sale or IPO select the best globally 21
Slide 22: Bailador has a track record of nine cash realisations
Bailador has a track record of nine cash realisations ⇢ Delivered three full cash realisations in FY21 and first cash realisation for FY22 in November 2021* For personal use only FY22 (YTD) cash realisations: FY21 cash realisations: Cash $15.1m Cash $13m Cash $17m Cash $1.1m 22.7x cost 2.4x cost 3.4
Slide 23: Our NTA valuations are validated by third party transactions
Our NTA valuations are validated by third party transactions 145% There have been 28 third party transactions in our portfolio companies. For personal use only All transactions have been at or above BTI carrying value. Carrying 3rd party value transaction 2015 143% 122% 121% 105% 100% 100% 105% 100%
Slide 24: BTI has maintained a conservative approach to valuation
Whilst tech valuations have increased, BTI has maintained a conservative approach For personal use only BTI Portfolio1 Average peer Wisetech multiple up ASX Listed2 Altium 34% Xero Australian Private Canva4 ⤏ Material upside to Company BTI carrying values Aus SaaS >$500m ⤏ Built in buffer if market
Slide 25: BTI's UK-based comparables trade at a premium to NTA
BTI’s UK-based comparables trade at an average 23% premium to NTA/share ⇢ A track record of cash realisations higher than carrying value warrants a share price premium to NTA For personal use only Premium/discount to NTA per share 120% 112% Six of nine companies trade at a premium to NTA/share 100%
Slide 26: Access to high-growth expansion-stage 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 26
Slide 27: Questions
For personal use only Questions investorservices@bailador.com.au 32
Slide 28: 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 authorised representatives of Bailador (“Affiliates”). This presentation does not contain a complete descri
Slide 29: 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)
Slide 30: AGM Run Sheet
BAILADOR TECHNOLOGY INVESTMENTS LTD AGM – TUESDAY 26th OCTOBER 2021 RUN SHEET SLIDE 1 – Annual General Meeting For personal use only Preliminaries Welcome: Good Morning. Ladies and Gentlemen, I’m pleased to begin Bailador Technology Investment’s Annual General Meeting. SLIDE 2 – David Kirk My name i
Slide 31: Run sheet: board introduction
SLIDE 3 – Bailador is backed by a strong, majority independent board For personal use only First up, I’d like to introduce you to the Bailador board attending today. Paul Wilson, co-founder, along with me, of Bailador is here. Our non-executive directors Andrew Bullock, Jolanta Masojada and Brodie A
Slide 32: Run sheet: what we do
First a reminder of what we do. Bailador invests in a portfolio of established information technology companies that are growing strongly and scaling into international markets. We call this expansion-stage investing and we deliberately focus on this stage as we believe it provides investors with th
Slide 33: For personal use only
Whilst these corporate actions have resulted in a change in the underlying mix of our portfolio, it is important to note we have sustained and in some cases improved our portfolio performance metrics as presented in the slide. It is also worth pointing out the total revenue growth of the portfolio w
Slide 34: For personal use only
We are a big believer in going “stronger for longer” by increasing our exposure to businesses in the portfolio which are performing very well. In FY21 we invested a further $5.2m in Straker as part of its funding to acquire Lingotek, as well as a further $3.8m in Instaclustr as part of its funding f
Slide 35: For personal use only
We also paid a 1.4 cents per share fully franked dividend to shareholders in September, which was paid from proceeds of the recent full cash realisations. Shareholders should expect future dividends to be dependent on realisations and on our assessment of the best use of available capital at that ti
Slide 36: For personal use only
running investee companies and there will be variable commitment to this across the portfolio. Our ESG policy and framework is important through all aspects of our investment cycle but is something we also continuously seek to improve on. For personal use only SLIDE 12 - Bailador expects FY22 to be
Slide 37: For personal use only
David hands over to Paul SLIDE 14 – In July 2021 Bailador invested $5.5m into digital healthcare platform InstantScripts For personal use only Thank you David and thanks all for joining us at our AGM this year. I would also like to echo David’s last point about the continued support of our growing s
Slide 38: For personal use only
SIteMinder already has over 33,000 customers worldwide and generates over $100m in recurring revenue. The biggest question that has been on people’s minds over the past year was “how has SiteMinder performed during COVID?”. For personal use only The answer is “very well”. Whereas revenue of SiteMind
Slide 39: For personal use only
SiteMinder is a fantastic cornerstone holding for the Bailador portfolio and being able to continue holding for such a period really highlights the unique advantage our fund model has over traditional closed-end structures. It is important to note that once SiteMinder is public, Bailador will mark o
Slide 40: For personal use only
on capital raisings, IPOs or a trade sale. But similar to SiteMinder we see long term value in holding Instaclustr as another cornerstone investment in our portfolio. SLIDE 19 – Strong performance and prospects across the Bailador portfolio For personal use only This slide and the next provides a sn
Slide 41: For personal use only
SLIDE 21 – Our business model is designed to generate premium returns Both David and I have provided a lot of information on our portfolio movements over the past year, which all relate back to the three foundations of our business For personal use only model which is designed to generate premium re
Slide 42: For personal use only
important as it demonstrates the conservatism in our underlying portfolio valuation and therefore our NTA reported each month to the ASX. This maximises the likelihood of continuing to achieve cash realisations above NTA, as we have done historically. SLIDE 24 – Whilst tech valuations have increased
Slide 43: Resolutions
David: Thank you Paul. SLIDE 27 – Resolutions For personal use only Formalities Ladies and Gentlemen, we now come to the formal part of the meeting – the matters now requiring resolution, outlined in the Notice of Meeting. I remind shareholders, you will see on their screen a button where you can vo
Slide 44: Remuneration report resolution
The next item of business is Resolution 1 which relates to a section of the Director’s Report which deals with the remuneration of the Directors and other key management personnel of the company. The Remuneration Report is included in the annual report that has been sent to shareholders on pages 28-
Slide 45: Resolution 2: ratification of share issue
If you have not already done so, I invite you to cast your votes and remind proxy holders that you must comply with the direction of the shareholder if you wish to lodge a valid vote. We will proceed with the remainder of the meeting while the votes are tallied. We will notify results of voting to t
Slide 46: Resolution 3: Re-election of Paul Wilson
We will proceed with the remainder of the meeting while the votes are tallied. We will notify results of voting to the ASX later today. Resolution 3: Re-election of Paul Wilson as Director For personal use only We will now move to item 4 and resolution 3 on the agenda, being the election of director
Slide 47: Resolution 4: Re-election of Jolanta Masojada
If you haven not already done so, I invite you to cast your votes and remind proxy holders that you must comply with the direction of the shareholder if you wish to lodge a valid vote. We will proceed with the remainder of the meeting while the votes are tallied. We will notify results of voting to
Slide 48: Questions
We will proceed with the remainder of the meeting while the votes are tallied. We will notify results of voting to the ASX later today. SLIDE 32 – Questions For personal use only Ladies and Gentlemen, that concludes the formal part of the meeting. Now, if you are a shareholder and you have a questio
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