Oakley Capital Investments Ltd Registered · LSE:OCI
Oakley Capital Investments Ltd Registered — Oakley Capital Investments — FY2020 Earnings Presentation
34 slides from Oakley Capital Investments Ltd Registered's earnings presentation, 2021
Slide 1: Annual Results 2020
ANNUAL RESULTS 2020 1
Slide 2: Portfolio strength delivers sustainable growth
Portfolio strength delivers sustainable growth Performance for the year ending 31 December 2020 % Total NAV return Net Asset Value NAV per share Total NAV return £728m 403p +18% Cash Dividend 5-year CAGR £223m £223m 11.8x 4.5p +16% OAKLEY CAPITAL INVESTMENTS 2
Slide 3: NAV growth performance
NAV growth performance 2017+ ▪ Fund strategy maturing ▪ Consistent realisations ▪ Three active Funds 4.50 2014+ 4.00 ▪ £130m new share issue 2010+ ▪ Dilutive 3.50 ▪ Cash drag ▪ Early deployment phase ▪ One Fund 3.00 ▪ High level of cash 2.50 £ 2.00 1.50 1.00 0.50 0.00 Dec-10 Dec-11 Dec-12 Dec-13 Dec
Slide 4: NAV performance drivers
NAV performance drivers EBITDA Share COVID-19 Exits Cash levels growth buy-backs impact 20% 89% 18m 7 Up to Average EBITDA growth Premium to book value Shares bought-back and cancelled at an average Portfolio companies lagged expectations £261m price of 230p +34 pence +26 pence +13 pence -30 pence U
Slide 5: Oakley Fund commitment drives NAV growth
Oakley Fund commitment drives NAV growth £728m NAV by investment type Oakley Fund investment £355m 196p per share 26% IRR(1) Cash/other assets & liabilities 31% Direct investment Oakley Fund £150m Investment 83p per share 49% 10% IRR(1) Direct investment 20% Cash/other assets & liabilities £223m 123
Slide 6: Outstanding commitments to capitalise on continued Fund performance
Outstanding commitments to capitalise on continued Fund performance Outstanding Oakley Fund commitments 350 £299m 300 250 200 £m 150 £113m(1) £108m 100 £28m 50 £80m £12m £3m 0 Fund I Fund II Fund III Fund IV Origin Fund Commitments not currently expected to be drawn (1) £113m outstanding commitments
Slide 7: The power of digital
The power of digital Contabo 7NXT £9.7m atHome Daisy £10.3m £7.7m £17.3m Career Partner Group TechInsights £100.5m £15.5m Ekon £21.7m EDUCATION TECHNOLOGY Facile >70% £35.0m Schülerhilfe £47.5m WebPros £50.4m of the portfolio delivers products or services digitally Ocean Technologies Group £25.9m Ic
Slide 8: Continued growth, conservative debt, modest valuations
Continued growth, conservative debt, modest valuations Portfolio analysis 20% Avg annual EBITDA Growth(1) 3.9x Avg Net Debt/EBITDA(2) 11.8x Avg Valuation Multiple(3) Portfolio Company Portfolio Company Portfolio Company EBITDA growth(1) Net debt / EBITDA(2) EV/EBITDA(3) 8 12 7 41% 40% 40% 7 67% 10 6
Slide 9: The majority of the portfolio grew at or above expectations
The majority of the portfolio grew at or above expectations COVID-19 impact by NAV 44% 14% 13% Iconic BrandCo. Expectations met or exceeded Modest impact Significant impact Note: Chart is graphed by OCI’s look through exposure to the portfolio companies via the Funds and direct equity investments. O
Slide 10: Oakley Capital – Investment Strategy and Activity
OAKLEY CAPITAL – INVESTMENT STRATEGY AND ACTIVITY
Slide 11: Investment themes
Investment themes D2C ▪ Targeting digitally native disrupters or growing digital channels: – Frictionless, lower-cost trade – Affective and measurable digital marketing – The power of data and knowing your customer REPEAT PLAYS IN DIFFERENT GEOGRAPHIES ▪ Experience provides opportunity to invest ear
Slide 12: Origination and finding value
Origination and finding value Network of business founders identify opportunities + Ability and experience to tackle complex transactions = 1 2 3 OFF MARKET PARTNERSHIPS BUY & BUILD ▪ 75% of investments are ▪ Not always a value ▪ Initial platform investment uncontested maximisation exercise in a fra
Slide 13: Continued investment activity despite disruption
Continued investment activity despite disruption €675 million capital deployed by Funds(1) €5.6m Ocean add-on €185m €6m €43m €175m 2020 March May July September November January February April June August October December 2021 February Ocean add-on Ekon add-ons €15m €4m €124m €12m €56m Fund I Fund I
Slide 14: CPG - Largest and fastest growing university group in Germany
CPG - Largest and fastest growing university group in Germany Focus portfolio company Location: Germany Investment Date: Jan-18 Sector: Education OCI valuation: £100.5m ► CPG is one of the fastest growing private university groups in Germany ► Key Strategic Initiatives: – Continue to grow the busine
Slide 15: 7NXT - Market leader in female focused online fitness subscriptions
7NXT - Market leader in female focused online fitness subscriptions New portfolio company Location: Germany Investment Date: Sept-20 Sector: Technology OCI Valuation: £10.3m Focus ► Gymondo (~75% revenues) is the leading subscription platform for online guided fitness for females in Germany, with 43
Slide 16: WindStar Medical - Consumer healthcare OTC platform
WindStar Medical - Consumer healthcare OTC platform New portfolio company Location: Germany Investment Date: Dec-20 Sector: Consumer OCI Valuation: £42.7m ►Germany’s ► Windstar leading Medical over-the-counter consumer is a leading German healthcare consumer healthcare company OTC platform ► ► Desig
Slide 17: Idealista – Online real estate classifieds platform in Southern Europe
Idealista – Online real estate classifieds platform in Southern Europe New portfolio company Location: Southern Europe Investment Date: Jan-21 Sector: Technology OCI Valuation: c.£43.0m ► Leading Southern European real estate portal ► Market leading position in Spain and Portugal ► Growing presence
Slide 18: Dexters – London's leading Chartered Surveyors and Estate Agents
Dexters – London’s leading Chartered Surveyors and Estate Agents New portfolio company Location: UK Investment Date: Feb-21 Sector: Consumer OCI Valuation: £13m ► London’s leading independent Chartered Surveyors and Estate Agents ► Founded in 1993, Dexters has now grown to 87 branches across Greater
Slide 19: Appendix
APPENDIX ▪ Portfolio company overview ▪ Direct investments ▪ Governance programme ▪ Overview of underlying investments
Slide 20: Portfolio Company Overview
PORTFOLIO COMPANY OVERVIEW
Slide 21: Technology – Portfolio companies
Technology – Portfolio companies WebPros Facile Daisy Ekon TechInsights Location: Switzerland / USA Location: Italy Location: UK Location: Spain Location: Canada Investment date: Feb-20 Investment date: Jun-18 Investment date: Jul-15 Investment date: Jun-19 Investment date: May-17 Fund: IV Fund: III
Slide 22: Technology – Portfolio companies
Technology – Portfolio companies 7NXT Contabo atHome Location: Germany Location: Germany Location: Luxembourg Investment date: Oct-20 Investment date: Oct-19 Investment date: Jan-17 Fund: Origin Fund: IV Fund: III Open cost: £10.3m Open cost: £5.0m Open cost: £0.0m Valuation: £10.3m Valuation: £9.7m
Slide 23: Education – Portfolio companies
Education – Portfolio companies Career Partner Group Schülerhilfe Ocean Technologies Grp AMOS Location: Germany Location: Germany Location: Norway / UK Location: France Investment date: Jan-18 Investment date: Jul-17 Investment date: Jun-19 Investment date: Aug-17 Fund: III Fund: III Fund: IV Fund:
Slide 24: Consumer – Portfolio companies
Consumer – Portfolio companies North Sails Time Out WindStar Medical Wishcard Technologies Iconic BrandCo Location: Global Location: Global Location: Germany Location: Germany Location: Italy / UK & Japan Investment date: Mar-14 Investment date: Nov-10 Investment date: Oct-20 Investment date: Sep-19
Slide 25: Direct Investments
DIRECT INVESTMENTS 25
Slide 26: Direct investments
Direct investments Fair Value Fair Value 31 December 2020 31 December 2019 Time Out Equity £23.9m £38.5m Inspired Equity Realised £75.0m Daisy Direct debt £17.3m £15.8m North Sails Direct debt £102.6m £73.5m Fund Facilities Direct debt £6.6m £14.6m Total direct investments £150.4m £240.7m OAKLEY CAP
Slide 27: Governance Programme
GOVERNANCE PROGRAMME
Slide 28: Discount to NAV – Past
Discount to NAV – Past Areas addressed Concern Remediation Discounted share issuance ▪ In 2018 Board announced commitment to not issue equity or sell stock from treasury at a discount to NAV Alignment of interest ▪ OCI Board and Oakley Partners hold over 10% of OCI shares vs 1% in 2017 Returning cas
Slide 29: Discount to NAV – Present
Discount to NAV – Present Areas being addressed Concern Detail Remediation Direct investments ▪ Exposed to the underperforming assets ▪ Realise direct investments over the short to ▪ Raises conflict of interest concerns medium term ▪ Drag on performance ▪ Outstanding loan notes with Time Out and Dai
Slide 30: Protecting and creating long-term investment value
Protecting and creating long-term investment value Environmental, Social & Governance (ESG) Case studies Supporting employees and communities during COVID-19 Ocean Technologies Group – Human Capital Management Career Partner Group ▪ New Chief Human Resources Officer joined ▪ Focused on strengthening
Slide 31: Overview of Underlying Investments
OVERVIEW OF UNDERLYING INVESTMENTS
Slide 32: Overview of OCI's underlying investments
Overview of OCI’s underlying investments Year of Fund Investments Sector Location Residual Cost Fair Value Investment Origin Fund 7NXT Technology Germany 2020 £10.3m £10.3m Origin Fund OCI’s proportionate allocation of Origin Fund investments (on a look-through basis) £10.3m Other assets and liabili
Slide 33: 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 34: Oakley Capital
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