Slide 1: Investor Presentation FY March 2020 - Final Results
Draper Esprit plc Investor Presentation FY March 2020 - Final Results
Slide 2: Disclaimer
Disclaimer This document has been prepared by Draper Esprit plc ("Draper Esprit”, the "Company“, or the “Group”) and is differ materially from those anticipated in the forward-looking statements and financial projections. Although we for general information purposes only. The information provided in
Slide 3: Contents
Contents 01. Results for the year end 31 March 2020 02. Portfolio update 03. Outlook 04. Appendix 4
Slide 4: Model remains robust through pandemic
Model remains robust through pandemic A long-term investment strategy delivering consistent returns in the private technology VC and Growth market • Technology businesses are remaining private for longer, limiting public investment opportunities • We invest Venture & Growth capital into Europe’s fas
Slide 5: 01. Results for the year ended March 2020
01. Results for the year ended 31 March 2020 6
Slide 6: Financial highlights for the period
Financial highlights for the period Year ended March 2020 Robust performance drives growth in net asset value 555p NAV per share 6% increase Disciplined approach to investment in diversified portfolio £90m Invested by the Group with a further £38m by EIS/VCT Progress on realisations £40m Cash realis
Slide 7: Business highlights for the period
Business highlights for the period Year ended March 2020 Continued growth in our portfolio Invested in 9 new companies* Continued investment in existing portfolio 19 existing portfolio companies* Fund of Funds continues to develop Committed to 4 new seed funds Core Portfolio company value Increased
Slide 8: Gross Portfolio Value Progression and NAV Progression
Gross Portfolio Value Progression NAV Progression £800M £800M 800 £59M £703M 750 £700M £90M £40M £700M £677M £660M £618M 700 £594M £600M £600M 650 £500M £500M 600 574 pence £400M £400M 550 £354M 555 pence 524 pence £300M 500 £300M £300M £244M 450 £200M £200M 416 pence £140M 400 £100M £100M 343 pence
Slide 9: Cash realisations
Cash realisations £106 million cash realised since IPO (June 2016) with a further £80m subject to completion post year end Profit after tax and return on Cash Realisations as % gross portfolio opening portfolio £80M* £120m 500% 100% £80M £111M £110m 90% 450% £70M £100m 400% 80% £60M £90m 350% 70% £5
Slide 10: COVID-19 & the market opportunity
COVID-19 & the market opportunity After an initial shock caused to the business environment by Covid-19, the technology industry has been driving the rebound in the stock markets, bringing them back to pre-COVID levels Nasdaq Index Value ytd • Investors are becoming more selective 12,000 • Greater e
Slide 11: Covid-19 & Draper Esprit
Our portfolio companies are making Covid-19 & Draper Esprit a positive impact and designing the post-COVID world. The ongoing spread of COVID-19 continues to be, first and foremost, a public health crisis but the impact on the economy and businesses is clearly also very significant. We took early st
Slide 12: Gross portfolio value progression to March 2020
Gross portfolio value progression to March 2020 £87m £68m £65m £31m £28m £24m £22m £20m £20m £18m £17m £17m £15m £14m £13m £12m Remaining £232m Gross Portfolio £703m Value £0m £50m £100m £150m £200m £250m £300m £350m £400m £450m £500m £550m £600m £650m £700m £750m 13
Slide 13: Plc invested £90m in the period
Plc invested £90m in the period* Further £38m from EIS/ VCT funds >_ >_ >_ April May June July August September October November December January February March ** ** ** Deal Sourcing Strategy Initial investments Follow-on investments Exits Via Earlybird * All companies listed represent investments
Slide 14: Partnership with Earlybird
Partnership with Earlybird Expanding our presence in the European market £131m • In Jan 2019, Draper Esprit furthered its strategic partnership with Earlybird, acquiring a £187m 27% interest in Earlybird’s EB IV fund for approx. £55m (including holdings in Peak). Total invested Valuation of in EB EB
Slide 15: 02. Portfolio update
> Draper Esprit 02. Portfolio update
Slide 16: Our Portfolio
66 Core Portfolio Companies Our Portfolio Total Portfolio Emerging Companies *Reporting threshold – companies with a We invest across four sectors in high growth European technology companies* Companies NAV of £1.0 million or more Consumer technology Enterprise technology Hardware & Deeptech Digital
Slide 17: New additions to the core portfolio
New additions to the core portfolio We maintain a prudent approach to valuations • The fair value of the portfolio companies are established in accordance with International Private Equity and Venture Capital Guidelines • 33% of portfolio companies are LR LR valued at last round price • Aiven, the d
Slide 18: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth LR C LR • Aircall, the cloud-based call centre, launched a new partner • Finalcad, the construction management application, allows • Machine intelligence semi-conductor, Graphcore announced in program to help agents and resellers sell its phone solution to
Slide 19: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth LR C C • Founded in 2014, the radar satellite imaging service, ICEYE, is • Ledger, the cryptocurrency and blockchain hardware security • M-Files, the intelligent information management platform, the first organization in the world to successfully launch wa
Slide 20: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth C C LR • Peak, the mobile games developer surpassed US$1bn in player • Perkbox raised £13.5 million in a round lead by Draper Esprit in • Ravenpack raised a US$10 million Series B round from the spending, lead by its 2015 release Toy Blast. March 2019. tec
Slide 21: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth LR C LR • Revolut, a global challenger bank, supports 140 currencies, with • Smava announced that it plans to IPO, having achieved strong, • TransferWise is used by over 7 million people transferring over no international transaction fees, boasts 8+ millio
Slide 22: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth C LR • Raised a series E round of $55 million in March 2019. • UiPath raised its series D investment round raising US$568m at a post-money valuation of US$7 billion, making UiPath one of • Made a number of significant hires across their senior the fastest
Slide 23: 03. Outlook
> Draper Esprit 03. Outlook
Slide 24: Summary and outlook
Summary and outlook • Despite market uncertainty, we’ve entered the new financial year well positioned to capitalise on our growing reputation as one of Europe’s leading venture capital businesses. We support the community and businesses in this difficult period and identify those with strong busine
Slide 25: Thank you
Thank you For further information: Martin Davis, Chief Executive Officer martin.davis@draperesprit.com Ben Wilkinson, Chief Financial Officer ben.wilkinson@draperesprit.com Stuart Chapman, Chief Operations Officer Stuart.chapman@draperesprit.com @draperesprit 26
Slide 26: 04. Appendix
> Draper Esprit 04. Appendix
Slide 27: Gross Portfolio Value Table
Gross Portfolio Value Table Fair Value of Draper Esprit Fair Value of Interest Investments (Ireland) Movement in Investments FD category* 31 Mar 2019 Investments Realisations Limited Fair Value 31 March 2020 at reporting £’000s £’000s £’000s £’000s £’000s £’000s date Investments Graphcore 78.6 - - -
Slide 28: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income ended 31 March 2020 Year ended Year ended 31 March 2020 31 Mar 2019 Notes £’000s £’000s Change in unrealised gains on investments held at fair value through the profit and loss 5 40,755 114,715 Fee income 6 11,255 6,101 Total investment income 52,010 12
Slide 29: Financial Position as of March 2020
Financial Position as of 31 March 2020 Notes 31 March 2020 £’000s 31 Mar 2019 £’000s Non-current assets Intangible assets 14 10,028 10,130 Investments in associates 15 258 258 Financial assets held at fair value through the profit or loss 16 657,333 562,061 Property, plant and equipment 17, 20 1,760
Slide 30: A platform that can support entrepreneurs at all stages of their growth
A platform that can support entrepreneurs at all stages of their growth Raising Seed Series A Series B Series C Pre-IPO & on Fund of Funds PLC PLC Our Shareholders UK EUR PLC EIS EB VCT 31
Slide 31: Our People
Our People Partnership Team Platform Team Our Partnership team is made up Making smart investments is key to succeeding in venture of experienced individuals that capital markets, and so is an investing firm’s ability to engage, support and collaborate with the entrepreneur community, were founders,
Slide 32: Focused on long-term winners in technology
Focused on long-term winners in technology Whilst we make numerous earlier stage investments to capture upside, we focus our capital on a small Core Holdings (16 companies) represent number of core holdings, as well as advantageous secondary opportunities. 67% of NAV and Approx. 67% of Gross Portfol
Slide 33: Track Record
Track Record Exit value 10.0x 2020 2019 2018 2017 2016 9.0x 8.3x 8.0x 7.6x 7.3x 7.0x 6.0x 5.0x • Historical track record of over 20% IRR prior to IPO*** 4.0x 3.2x 3.0x 2.6x 2.5x 2.6x • Over 125 deals since 2006 2.3x 2.2x 2.0x 1.9x 1.9x 1.7x • 2.0x 1.6x Over $5bn value of exits 1.0x 0.4x since 2010 0
Slide 34: Track Record
Track Record Nav progression for deals > £2m 16.0x 8.3x 8.3x 8.0x 7.6x 7.3x 7.1x 7.6x Peak Games (£80.0m) UiPath (£4.6m) Transferwise (£15.3m) The valueGrapeshot of rounds(£11.5m) above €100 million accounts for 33% of the Podpoint (£12.4m) 4.0x total investments in Q4 2019 Clavis Insight (£15.3m) G
Slide 35: Seeding the early stage ecosystem: our fund of funds
Seeding the early stage ecosystem: our fund of funds £7.2m £39.1m +300 £45k Seed fund Total Average investment investments in Commitments Portfolio Companies* per seed companies so the period over 5-10 years far Across all funds Average equity stake of 0.5%. • 2.5 years after launch program has comm
Slide 36: Market Summary Overview
Market Summary Overview 70% Europe’s share of investment has nearly doubled by value and tripled by volume Public to Private & Staying Private longer 60% 36% European share of US + European investment 33% 33% 50% 31% (Private, VC-backed companies) Over the last decade we have witnessed a historic sh
Slide 37: Most of the growth remains in private larger rounds
Most of the growth remains in private larger rounds Investments in Europe by round size €12 €10 €4.8 €3.4 €8 €2.8 €2.5 €1.0 € Billions €1.3 €2.3 €6 €1.6 €2.1 €1.0 €1.6 €2.2 €0.9 €1.4 €1.2 €1.0 €2.1 €1.4 €1.3 €1.2 €1.0 €1.3 €0.9 €1.3 €0.5 €1.3 €1.8 €0.9 €0.4 €0.8 €1.3 €1.3 €4 €0.8 €1.5 €0.7 €0.5 €1.1
Slide 38: Sustainability
Sustainability Governance Our ESG ambitions are an ongoing and evolving process that we are committed to build and develop over time, and we have a long way to go on this journey, • Investing in businesses that enhance the state of however meaningful steps have been taken in this period across multi
Slide 39: How we help companies grow
How we help companies grow Long term investment Global networks Hands on support With a plc balance sheet, we can take a When we invest, we offer more than As a global network, the Draper Venture longer view, enabling us to back Network enables our portfolio to access money. We take a seat on the bo
Slide 40: Strict investment criteria drive our decisions
Strict investment criteria drive From potential opportunity our decisions to exit 1 2 3 • Strict investment criteria: Strong technology and business models with experienced Thousands + Cos Secondary Market Seed Fund management teams raising in Europe Access of Funds Operate in new markets with s