Slide 1: Half Year Financial Results Presentation
QUALITAS (ASX: QAL) Half Year Financial Results Presentation 31 December 2021 25 February 2022 The information in this presentation has been based on special purpose audited accounts for the six months to 31 December 2021. Please see the disclaimer for more information. HALF YEAR FINANCIAL RESULTS D
Slide 2: Acknowledgement of Country
Acknowledgement of Country Qualitas acknowledges the Traditional Owners of the land on which we work, and we pay our respect to Elders past and present. HALF YEAR FINANCIAL RESULTS DEC. 2021 2
Slide 3: Agenda and presenters
Agenda and presenters 1 1H FY22 highlights ANDREW SCHWARTZ Group Managing Director and Co-Founder 2 Financial results KATHLEEN YEUNG Global Head of Corporate Development 3 Wrap up PHILIP DOWMAN Chief Financial Officer Supplementary information HALF YEAR FINANCIAL RESULTS DEC. 2021 3
Slide 4: 1H FY22 Highlights
| 1H FY22 Highlights HALF YEAR FINANCIAL RESULTS DEC. 2021 4
Slide 5: Fund creation capability driving momentum in growth
Fund creation capability driving momentum in growth 1H FY22 key performance – strong growth in first half in line with Prospectus expectations Group Highlights $37.8m $17.6m 47% $4.22bn 1H FY22 Total Revenue 1H FY22 Group EBITDA1 1H FY22 EBITDA Margin1 1H FY22 Committed FUM2 +97% – 1H FY21 +134% – 1
Slide 6: Disciplined execution of strategic initiatives
Disciplined execution of strategic initiatives Continued strong track record of delivering stated strategy – with strong discipline maintained Key strategic initiatives Highlights Further c$1.1bn deployment in 1H FY22 (+52%) Deploy capital and capitalise on Robust pipeline supporting capital deploym
Slide 7: Robust capital deployment
Robust capital deployment $1.1bn $46m 1H FY22 Deployment Average Gross Investment Size1 c75% of FY22 capital deployment forecast achieved in 1H FY22 Strong deployment pipeline underpins remainder of capital deployment forecast Notes: 1. Measured over a 6 month period as of 31 December 2021. HALF YEA
Slide 8: FUM growth
FUM growth Consistent growth of FUM combined with track record performance, benefitting from a scalable platform in place for future growth Historical FUM FUM composition by strategy CAGR since inception: 36% $4,223m1 30% $2,983m $2,770m 14 Funds across $2,198m $2,258m 10 strategies 70% $1,384m $802
Slide 9: Diversified and growing group of institutional clients
Diversified and growing group of institutional clients Continuing to develop long term resilient relationships with our partners Investors composition as of 31 December 2021: Investor composition: committed FUM pipeline in advanced due diligence 17% Institutional Retail 14% $4.22 bn 3% HNW / Family
Slide 10: Market thematic focus
Market thematic focus Locating and executing on market opportunities through the cycle Market themes Strategy Momentum • Rising interest rate environment • Short duration portfolio allowing for • Growing market share of alternative re-pricing returns lenders with Qualitas well-positioned as one of t
Slide 11: Funds under management overview
Funds under management overview Managing $4.22bn of committed FUM to deploy across a diverse range of credit and equity strategies Committed Expiry2 Fund name Investment type FUM1 Strategy Structure (years) QRI (ASX listed) Senior debt / mezz. $600m Resi., commercial, ind. ASX listed Perpetual QSDF
Slide 12: IPO proceeds used to facilitate FUM growth
IPO proceeds used to facilitate FUM growth Strategic allocation of IPO proceeds with potential to outperform given $0 return included in Prospectus for FY22 earnings Fund Co-Investments Fund Warehousing, Bridging and Underwriting Strategic purpose Allocation update Strategic purpose Allocation updat
Slide 13: Platform growth underpinned by sustainability
Platform growth underpinned by sustainability Sustainability focus on selected initiatives to drive long term value Environmental Social Governance MEMBER MEMBER OF PCA NATIONAL SOCIAL INDEPENDENT BOARD SUSTAINABLITY COMMITEE Majority independent Board, updated ESG Policy, oversight of executive inc
Slide 14: Financial Results
| Financial Results 1H FY22 HALF YEAR FINANCIAL RESULTS DEC. 2021 14
Slide 15: Group Earnings – growth momentum reflected in 1H FY22
Group Earnings – growth momentum reflected in 1H FY22 Achieving strong growth in Funds Management performance Breakdown of profit and loss segments HY HY HY ($thousands) Dec-20 Jun-21 Dec-21 Funds Management (FM) Operating EBITDA: Funds management fees 12,839 14,458 17,091 (-) Core employee costs (7
Slide 16: Funds Management segment performance
Funds Management segment performance Funds Management revenue Performance metrics $32.3m $32.7m Performance metrics HY Dec-20 HY Jun-21 HY Dec-21 $1.0m Invested FUM (excl. Arch Finance) $1.63 Bn $1.65 Bn $1.96 Bn Base Management Fee Margin p.a. 1.29% 1.30% 1.34% $14.6m Transaction Fee Margin p.a. 0.
Slide 17: Balance sheet
Balance sheet Qualitas Limited balance sheet FY HY ($thousands) Jun-21 Dec-21 Assets Net IPO proceeds provide increased flexibility to pursue strong Cash and cash equivalents 31,491 292,357 growth in Funds through both co-investments and asset Trade and other receivables 13,202 17,977 underwriting c
Slide 18: Wrap Up
| Wrap Up HALF YEAR FINANCIAL RESULTS DEC. 2021 18
Slide 19: Executing to strategy
Executing to strategy • Remain focused on earnings growth both via • Strong inbound interest following successful IPO sustainable FUM growth and achieving further cost from investors and clients efficiencies as platform scales • Evidence real impact through our ESG initiatives • Strategic deployment
Slide 20: Thank you
Thank you MELBOURNE OFFICE SYDNEY OFFICE QAL INVESTOR ENQUIRES Melbourne office Sydney office Link Market Services Level 38, 120 Collins Street Governor Macquarie Tower P 1800 628 703 Melbourne VIC 3000 Level 23, 1 Farrer Place, E qualitas@linkmarketservices.com.au Sydney NSW 2000 qualitas.com.au HA
Slide 21: Disclaimer
Disclaimer Disclaimer This presentation has been prepared by and its sole responsibility of Qualitas Limited (ACN 655 057 588). To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever to Qualitas Limited, any of its related ent
Slide 22: Supplementary Information
| Supplementary Information Qualitas HALF YEAR FINANCIAL RESULTS DEC. 2021 22
Slide 23: Value creation cycle – capital light funds management model
Value creation cycle – capital light funds management model Strategically deploying balance sheet capital to 1) capture market opportunities by warehousing / bridging new asset(s) subsequently used to seed new fund strategies and 2) align with investors through co-investments 1 2 Identify scalable i
Slide 24: Executive management team
Executive management team High performance team of reputable industry executives with average of over 28 years of real estate and structured finance investment experience overseen by institutional grade governance Leading governance credentials Andrew Schwartz Group Managing Director / Co-Founder •
Slide 25: Supplementary Information – Funds overview
| Supplementary Information Funds overview HALF YEAR FINANCIAL RESULTS DEC. 2021 25
Slide 26: Closing period FUM baseline
Closing period FUM baseline 1H FY22 $m FY19 FY20 FY21 (Dec-21) Committed FUM Funds Management 1,810 2,290 2,503 3,758 Arch Finance 448 480 480 465 Total Committed FUM 2,258 2,770 2,983 4,223 Invested FUM Funds Management 1,086 1,444 1,660 1,959 Arch Finance 399 440 423 405 Total Invested FUM 1,485 1
Slide 27: Fund expansion continues
Fund expansion continues Executing on our growth strategy as the market leader in real estate credit and equity Diversified Real Estate Fund Senior Debt Enhanced Fund Opportunity Fund No. 3 Committed FUM $105 million Committed FUM $150 million1 Committed FUM NA Target FUM $500 million Target FUM $30
Slide 28: Diversified product and investment profile
Diversified product and investment profile Funds diversified across the capital structure, geographies and underlying sectors attracting a broad range of investors – early mover in BTR / multifamily, long WALE and real estate credit Funds under management1 Funds under management risk allocation1,2 •