Oakley Capital Investments Ltd Registered · LSE:OCI
Oakley Capital Investments Ltd Registered — Oakley Capital Investments — Investor Day (2021)
126 slides from Oakley Capital Investments Ltd Registered's investor day presentation, 2021
Slide 1: Capital Markets Day 2021: Introduction and OCI Overview
CAPITAL MARKETS DAY 2021 Introduction and OCI Overview Steven Tredget
Slide 2: Agenda
Agenda Introduction & OCI Overview Steven Tredget Strategic Update Rebecca Gibson Oakley’s Approach to Responsible Investment Aga Siemiginowska Digital: Disruption and Drivers of Growth Arthur Mornington Technology Sector Overview Arthur Mornington and Alex Collins Consumer Sector Overview Sascha Gü
Slide 3: Sustainable NAV growth
Sustainable NAV growth 4.0 400 3.0 300 Pence 200 2.0 1.0 100 0.0 December December December December December December Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec May June June June June June June 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 Announced NAV per share Share pric
Slide 4: Exploring the OCI Assets
Exploring the OCI Assets £206m £728m £633m (£111) Total Investments Cash Other Fund Net Asset Value May-2021(1) May-2021 Dec-2020 Assets/(Liabilities) May-2021(1) (1) Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and
Slide 5: Exploring the OCI Assets
Exploring the OCI Assets £633m £472m £206m £288m (£111m) Total Investments Cash Other Fund Outstanding May-2021(1) May-2021 Assets/(Liabilities) Commitments May-2021(1) May-2021 (1) Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisatio
Slide 6: Exploring the OCI Assets
Exploring the OCI Assets £633m Oakley Fund Investment £507m Direct investment North Sails Debt £126m Time Out Equity Total Investments(1) (1) Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and refinancings (IU OAKLEY C
Slide 7: Balanced by sector and company
Balanced by sector and company WebPros TECHNOLOGY Idealista Facile Ekon Daisy TechInsights 7NXT Contabo atHome Time Out CONSUMER WindStar Medical North Sails Wishcard Technologies Iconic BrandCo Dexters EDUCATION IU Group (CPG) Schülerhilfe Ocean Technologies ACE Education (AMOS) Total Equity Invest
Slide 8: Investing in digital disruption
Investing in digital disruption >70% IU Group (CPG) WebPros Schülerhilfe of the portfolio delivers Digital Time Out products or services digitally businesses Idealista Facile Ocean Technologies Ekon Wishcard Technologies Daisy 7NXT Contabo atHome North Sails WindStar Medical ACE Education (AMOS) Ico
Slide 9: High-quality and recurring revenue streams
High-quality and recurring revenue streams IU Group (CPG) >70% WebPros Schülerhilfe of the portfolio has subscription-based Subscription Idealista or recurring revenues based revenues Facile Ocean Technologies Ekon ACE Education (AMOS) Daisy TechInsights Dexters 7NXT Contabo atHome Time Out North Sa
Slide 10: Performance largely maintained in spite of COVID, with some recovery upside ahead
Performance largely maintained in spite of COVID, with some recovery upside ahead IU Group (CPG) WebPros Expectations WindStar Medical met or Idealista exceeded Facile Ocean Technologies Wishcard Technologies ACE Education (AMOS) Dexters 7NXT Contabo atHome Modest Schülerhilfe impact Ekon Daisy Tech
Slide 11: Typical EBITDA average growth vs COVID impacted growth
Typical EBITDA average growth vs COVID impacted growth IU Group (CPG) >20% EBITDA growth WebPros WindStar Medical Facile 20 % Average portfolio company Ocean Technologies EBITDA growth FY19-FY20 Wishcard Technologies ACE Education (AMOS) Iconic BrandCo Dexters 7NXT Contabo atHome Schülerhilfe Time O
Slide 12: Listed PE 5-year total NAV return
% 0 120 160 200 40 80 3i Group HgCapital Trust Source: Numis as at December 2020 Oakley Capital Investments 113% Princess Private Equity Apax Global Alpha BMO Private Equity Listed PE 5-year total NAV return ICG Enterprise NB Private Equity Standard Life Private Equity Harbourvest Private Equity Pan
Slide 13: Listed PE discount to NAV
% Discount/Premium 0.0 10.0 20.0 30.0 40.0 -30.0 -20.0 -10.0 3i Group HgCapital Trust Source: Numis as at May 2021 Apax Global Alpha BMO Private Equity Listed PE discount to NAV Princess Private Equity Standard Life Private Equity ICG Enterprise Dunedin Enterprise Harbourvest Global Private Equity P
Slide 14: Closing the discount
Closing the discount GOVERNANCE LIQUIDITY ACCESSIBILITY Share issuance Shareholder concentration Investor materials Alignment of interest Share trading volume Profile and communication Share buy-back Appropriate listing Report quarterly NAV programme Board composition ESG Monetise direct investments
Slide 15: Increasing liquidity
Increasing liquidity 0.25% 0.20% Trading volume as a % of market cap 0.15% 0.10% 0.05% 0.00% May-16 May-21 Source: Numis as at May 2021 OAKLEY CAPITAL INVESTMENTS 15
Slide 16: Closing the discount
Closing the discount GOVERNANCE LIQUIDITY ACCESSIBILITY Share issuance Shareholder concentration Investor materials Alignment of interest Share trading volume Profile and communication Share buy-back Appropriate listing Report quarterly NAV programme Board composition ESG Monetise direct investments
Slide 17: In the coming months
In the coming months MAY JUNE JULY 1 2 3 OAKLEY CAPITAL INVESTMENTS 17
Slide 18: Strategic Update
CAPITAL MARKETS DAY 2021 Strategic Update Rebecca Gibson
Slide 19: COVID-19 had considerable impact on deal activity in Q2 2020
COVID-19 had considerable impact on deal activity in Q2 2020… 70 800 Onset of 707 COVID 695 impact in 700 60 Europe 619 €57.3m 594 578 580 600 50 530 518 507 562 508 508 488 493 473 453 483 515 495 500 456 436 40 €42.4m €40.9m 439 €40.3m Deal Volume Deal Value ($bn) €39.8m €39.1m 378 €38.2m 400 €37.
Slide 20: Private Equity proved robust with a marked rebound in H2 2020
…however Private Equity proved to be robust, with a marked rebound across all key activities in the second half of 2020 INVESTMENTS DIVESTMENTS FUNDRAISING $160 $160 $159 $219 $141 $133 $135 $134 $133 $124 $170 $115 $108 $110 $126 $132 $110 $104 $69 $104 $72 $46 $66 $27 2015 2016 2017 2018 2019 2020
Slide 21: Valuations increased as there was a flight to quality
Valuations increased as there was a flight to quality AVERAGE EUROPEAN EBITDA PURCHASE PRICE TECHNOLOGY DEAL ACTIVITY PROPORTION MULTIPLE FOR LEVERAGED BUYOUT TRANSACTIONS OF OVERALL PE 30% 25.9% 12.6x 25% 20% 15% 10% 5% 0% Average Valuation Multiples % of Total PE Deal Volume Source: Bain Pitchbook
Slide 22: Why did PE prove to be robust?
Why did PE prove to be robust? A number of factors have contributed to the strong rebound of Private Equity HIGH DRY POWDER CENTRAL BANK SUPPORT ▪ Dry powder was at record levels ▪ Central banks pumped trillions into ▪ $970bn allocated to the economy buyouts in January 2020 ▪ Easing liquidity concer
Slide 23: Oakley platform consistently delivering strong performance
Oakley platform consistently delivering strong performance across the portfolio and funds HIGH ACTIVITY LEVELS SUSTAINABLE GROWTH INVESTMENT INVESTMENT INVESTMENT INVESTMENT INVESTMENT > 20% Average EXIT EXIT EXIT EXIT EBITDA(1) growth SUPERIOR RETURNS Top 5% against relevant industry benchmarks(2)
Slide 24: Oakley performance underpinned by a refined and repeatable strategic focus
Oakley performance has been underpinned by a refined and repeatable strategic focus Large addressable market Oakley’s clear strategic focus Oakley network at the core of origination WESTERN EUROPEAN BUYOUTS Primary PROACTIVE SECTOR SCREENING 85% Primary Deals OAKLEY NETWORK Proprietary >75% Uncontes
Slide 25: Growing the Oakley platform with a new lower mid-market strategy
Growing the Oakley platform to incorporate a new strategy in the lower mid-market 2013 2016 2019 2020 CURRENTLY INVESTING FUND EVOLUTION Fund II Fund III Fund IV Origin €524m €800m €1,460m €455m The Origin Fund is a complementary and synergistic extension of Oakley’s existing platform €10m €50m €100
Slide 26: A healthy pipeline of opportunities and expanding platform
A healthy pipeline of opportunities being pursued by an expanding Oakley platform Deal Pipeline Office Locations Networking technology ERP software London (2007) Software solutions ▪ 22 investment professionals Nurseries Munich (2018) ▪ 6 investment professionals K-12 Roll Up Distribution Luxembourg
Slide 27: Oakley is set to continue its growth
Oakley is set to continue its growth ACTIVITY ▪ High level of transactions in spite of the pandemic STRATEGY ▪ Continue to back management team in sectors we know well PROSPECTS ▪ Pipeline remains healthy and we are confident that we can deliver strong returns OAKLEY CAPITAL INVESTMENTS 27
Slide 28: Oakley's Approach to Responsible Investment
CAPITAL MARKETS DAY 2021 Oakley’s Approach to Responsible Investment Aga Siemiginowska
Slide 29: Responsible investment at Oakley
Responsible investment at Oakley 1 Acceleration of ESG integration to create value 2 Fully embedding ESG into Oakley culture 3 Short and medium term road maps OAKLEY CAPITAL INVESTMENTS 29
Slide 30: ESG focus – short term
ESG focus – short term ESG INFRASTRUCTURE PORTFOLIO DATA DIVERSITY & INCLUSION OAKLEY CAPITAL INVESTMENTS 30
Slide 31: ESG focus – medium term
ESG focus – medium term PORTFOLIO CLIMATE CYBERSECURITY ENGAGEMENT OAKLEY CAPITAL INVESTMENTS 31
Slide 32: Digital: Disruption and Drivers of Growth
Digital: Disruption and Drivers of Growth Arthur Mornington
Slide 33: The digital revolution has been gathering pace over the last 10 years
The digital revolution has been gathering pace over the last 10 years… Amazon vs. Walmart Employee Growth, ‘000s Revenue Growth, $bn +2,221% 600 +10% $559b 550 2,300 500 2,100 $421b 450 $419b 400 350 1,300 300 250 200 150 100 $48b 50 56 0 2011 2021 11 12 13 14 15 16 17 18 19 20 21 Source: S&P Capita
Slide 34: Accelerated dramatically by COVID
...has been dramatically accelerated by COVID U.S. ecommerce super-cycle, penetration, % 10 40% 30% years’ growth in 3 months Q1 2020 20% 2019 10% 2017 2015 2013 2011 2009 0% Source: McKinsey - Bank of America; Forrester Analytics; ShawSpring Research; US Department of Commerce; McKinsey analysis OA
Slide 35: Dominance of digital businesses in global investment returns
…and has led to the dominance of digital businesses in global investment returns Total Market Capitalisation, May 2016 vs May 2021 (€Tn) FTSE 100 TOP 5 GLOBAL TECH STOCKS (“FAANG”) 5.6 3.7x 0.8 1.1x 1.8 2.6 2.3 1.5 1.5 0.3 0.2 0.4 0.3 1.3 0.0 0.4 FTSE 100, May 2016 FTSE 100, May 2021 FAANGs, May 201
Slide 36: Long track-record of investing in digital businesses
Oakley has a long track-record of successfully investing in digital businesses Sustainable investment thesis: ▪ Experience & expertise ▪ Win deals ▪ Knowledge transfer 2019 2020 Capital invested in digital: (% of total capital invested in portfolio cos) Fund I €208m (75%) Fund II €268m (53%) 2015 20
Slide 37: Portfolio in good shape entering COVID
So the portfolio was in good shape as we entered COVID £231.9m £140.0m £231.5m Contabo Alessi ACE Education (AMOS) Daisy £4.9m £7.5m £13.6m Total Equity £11.0m TechInsights Ocean Technologies Group Investments £13.5m Wishcard Technologies Group £19.3m Dec 2019 Ekon £23.3m £17.1m ∑= £603m Schülerhilf
Slide 38: Digital delivery increased with acquisitions and online shift
And our digital delivery has increased with new acquisitions and shifting business models online £205.8m £159.4m £165.3m atHome Contabo £7.7m Iconic BrandCo ACE Education (AMOS) Total Equity £9.7m £16.1m £18.9m Investments 7NXT £10.3m Dexters May 2020 Daisy £13.0m £13.4m Ocean Technologies Group ∑=
Slide 39: Digitally native businesses disrupting their industries
1. Digitally native businesses disrupting their industries IU Group - the industrialisation of quality education Scaling up efficiently Large addressable market High profits and growth Reduction in online CAC IU student number & German market share Adj. EBITDA(1) (EUR) base year 2019 = 100% (EURm) N
Slide 40: Digital transformation of analogue business models
2. Digital transformation of analogue business models Accessing the digital premium without paying the entry price Scaling up the digital subscription model… …driving the path to re-rating Strong growth in digital platform users… On acquisition, TechInsights was akin to a consulting business EV (at
Slide 41: Enablers are mission critical in a digital world
3. Enablers are mission critical in an increasingly digital world Infrastructure-like downside protection riding digital growth Favourable market tailwinds… …while also winning market share Virtual Private Severs market growing faster than the overall YoY growth in number of web-facing server worldw
Slide 42: Investing in digital is more competitive than ever
BUT: investing in digital is more competitive than ever MSCI Europe, Information Technology vs Market Change May-21 vs Jan-20 (%) (% change, 1 Jan 2020 = 0) 45% Technology +40% 40% MSCI Europe 35% 30% 25% 20% 15% MSCI Europe +12% 10% Index 5% 0% May-21 Jan-20 Jan-21 -5% MSCI Europe Technology -10% -
Slide 43: Oakley sourcing key to avoiding valuation hype
Oakley sourcing key to avoiding valuation hype 2019 2020 Proprietary Failed Auction 2015 2017 2015 2020 2011 2014 2008 2019 2019 2018 2008 2009 2008 2015 2017 2017 Webhosting Online price Telecoms & Online Software Other tech comparison Media consumer OAKLEY CAPITAL INVESTMENTS 43
Slide 44: Where does Oakley go from here?
Where does Oakley go from here? Access new digital Repeat plays in new subsectors though Consolidation plays geographies entrepreneur partners Business model export Gaming server hosting Create new market leaders Change the landscape Export of new services eCommerce software Western → Southern → Hea
Slide 45: Technology portfolio at a glance
Technology portfolio at a glance atHome Contabo £7.7m £9.7m 7NXT WebPros £10.3m £50.4m TechInsights £15.5m Daisy £13.0m(1) Ekon idealista £21.7m £42.5m Facile £35.0m Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy)
Slide 46: Technology portfolio: Contabo
Technology portfolio at a glance: company in focus Contabo 1.3% of NAV A cloud hosting platform used by developers, entrepreneurs and SME’s for webhosting, development and storage + 54% YoY growth in # of web facing servers Note: Portfolio investments valued at 31 December 2020 and including subsequ
Slide 47: Technology portfolio: idealista
Technology portfolio at a glance: company in focus An online real estate classifieds platform in Southern Europe idealista 5.8% of NAV + 45% YoY growth in mobile & web traffic(1) Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisa
Slide 48: Technology portfolio: smaller investments
Technology portfolio at glance: smaller investments 1.8% Daisy of NAV #1 provider of B2B communications, IT and cloud services 2.1% TechInsights of NAV A global leader in the intellectual property and services markets 1.4% 7NXT of NAV A fast-growing online fitness and nutrition platform in the DACH
Slide 49: Technology portfolio: WebPros
Technology portfolio at a glance: WebPros WebPros A leading hosting provider for 6.9% of NAV server management globally + 22ppt EBITDA Margin Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and refinancings (IU OA
Slide 50: Technology portfolio: Facile
Technology portfolio at a glance: Facile Italy’s leading online price comparison website 169% Growth in insurance contracts switched or Facile renewed through the platform 4.8% (2014-2020) of NAV Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista,
Slide 51: Technology portfolio: Ekon
Technology portfolio at a glance: Ekon A Spanish provider of Enterprise Resource Planning software 5 Ekon 3.0% of NAV Bolt-ons acquired in the last 12 months Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and ref
Slide 52: Consumer Sector
CAPITAL MARKETS DAY 2021 Consumer Sector Sascha Günther 52
Slide 53: COVID-19 accelerated shifts in Consumer
COVID-19 has rapidly accelerated ongoing shifts in Consumer, opening up new growth opportunities Key macrotrends in Consumer New habits and ways E-commerce accelerating Structural shift in consumer of shopping that will stick across age groups & categories preferences & behaviour 75% +40%-pts ~50% o
Slide 54: Focus on high-quality Consumer opportunities
We focus on high-quality Consumer opportunities with high value creation upside in attractive market segments Leading Strong market High value businesses & fundamentals creation upside disruptors ▪ Sizable profit pools ▪ Strong brands ▪ Digital marketing ▪ Structural tailwinds ▪ Unique products and
Slide 55: Consumer portfolio at glance
Consumer portfolio at glance Dexters £13.4m Iconic Time Out BrandCo £43.3m £16.1m Wishcard Technologies £20.7m North Sails WindStar £35.2m Medical £30.7m Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and refinan
Slide 56: Consumer portfolio: Wishcard
Consumer portfolio at glance: company in focus Wishcard Based in Germany, Wishcard is 2.8% of NAV a leading consumer technology company in the gift voucher and B2B gift card sector > 100% Voucher sales growth Note: Portfolio investments valued at 31 December 2020 and including subsequent investments
Slide 57: Consumer portfolio: WindStar Medical
Consumer portfolio at glance: company in focus Germany’s leading over-the- counter consumer healthcare platform WindStar Medical ~ 40% Growth in branded products revenue 4.2% of NAV Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), real
Slide 58: Consumer portfolio: North Sails
Consumer portfolio at glance: company in focus A portfolio of market-leading brands focus on providing innovative and high-performance products for the world’s sailors and yachtsmen 50% North Sails 4.8% > of NAV Growth in Digital FY20 Note: Portfolio investments valued at 31 December 2020 and includ
Slide 59: Consumer portfolio: Time Out
Consumer portfolio at glance: Time Out Time Out A trusted global brand that inspires 5.9% and enables people to experience of NAV the best of the city > 75% Digital revenue share Time Out Media (Dec-20) Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idea
Slide 60: Consumer portfolio: Iconic BrandCo
Consumer portfolio at glance: Iconic BrandCo Iconic BrandCo 2.2% of NAV Alessi is an iconic design brand with a focus on homeware and kitchenware Globe-Trotter is a British luxury luggage brand > 60% Alessi D2C sales CAGR 2018-20 Note: Portfolio investments valued at 31 December 2020 and including s
Slide 61: Consumer portfolio: Dexters
Consumer portfolio at glance: Dexters Dexters 1.9% of NAV London’s leading independent Chartered Surveyors and Estate Agents > 15% Revenue CAGR over the last 10 years Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy
Slide 62: WindStar Medical
WindStar Medical Leading German over-the-counter consumer healthcare platform Investment summary (as at 31 Dec 2020) Investment date: Dec-2020 Sector: Consumer Region: Germany OCI’s open cost: £30.7m OCI’s valuation: £30.7m(1) Of OCI NAV: 4.2% (1) Adjusted for syndication of the original investment
Slide 63: Windstar's plug and play platform
Windstar’s ‘plug and play’ platform provides all central functions to current and future Consumer Health brands Platform Across segment functions $% Procurement Regulatory Finance Development Quality HR IT Best-practice sharing and commercial excellence 54% 46% Consumer D2C Partnering M&A Brands Ven
Slide 64: Leading German over-the-counter consumer healthcare platform
Leading German over-the-counter consumer healthcare platform Investment Thesis PERFORMANCE ▪ Opportunity to invest in a structural growth market, driven by Revenue Growth (€m) demographic megatrends (ageing population, diseases of affluence) and sustainable structural change in consumer preferences
Slide 65: Three main growth pillars for Windstar
We see three main growth pillars to leverage on Windstar’s existing expertise and elevate the group’s offering New brands & Digital / D2C International categories business expansion ▪ Expand offering into fast ▪ Build D2C business ▪ Internationalisation of growing market segments ▪ Create subscripti
Slide 66: Buy & build strategy well underway
Buy & build strategy well underway: active discussions with 8 targets including multiple proprietary opportunities based on targeted approach M&A Long List of >150 targets Established domestic brands with High growth D2C brands that can International brands giving access synergy potential be plugged
Slide 67: North Sails
North Sails The leading marine action sports business Investment summary (as at 31 December 2020) Investment date: Mar-2014 Sector: Consumer Region: Global OCI’s open cost: £45.1m OCI’s valuation: £35.2m Of OCI NAV: 4.8% 67
Slide 68: One Brand, One Ocean
The North Divisions SAILS APPAREL Manufacturing Lifestyle FY21 FY21 ▪ Aspirational lifestyle brand ▪ World’s largest sailmaker 2 ▪ Builds on North Sails heritage ▪ Technology leader through and pre-eminent reputation patented 3Di product $104m $65m in sailing One Brand, ▪ Largest maker of masts and
Slide 69: The pandemic impact
The pandemic impact PERFORMANCE Strategic update ▪ Material impact from COVID on the business, with the Revenue Growth ($m) manufacturing part of the business disproportionately +3% hit ▪ Production delays as manufacturing sites were forced to close ▪ Global supply chain issues delaying customer 201
Slide 70: Manufacturing returning to cash generation; Lifestyle the engine of growth
Manufacturing returning to high-quality cash generation. Lifestyle will be the engine of growth MANUFACTURING LIFESTYLE Revenue Growth ($m) EBITDA Growth ($m) Revenue Growth ($m) EBITDA Growth ($m) +69% -21% +7% -2% +19% 2019A 2020A 2021B 2022F 2019A 2020A 2021B 2022F 2019A 2020A 2021B 2022F 2019A 2
Slide 71: Order books for 2021 show strong recovery
The latest order books for 2021 are showing a strong recovery across the group North Sails YTD 21 Orders ($m) North Action Sports Revenue ($m) +4% +55% YTD18 YTD19 YTD20 YTD21 FY19A FY20A FY21B Windsurf NKB Mystic OAKLEY CAPITAL INVESTMENTS 71
Slide 72: Diverse exit routes for North Sails
A diverse set of exit routes may be available for North Sails, via both public or private markets PUBLIC MARKETS PRIVATE MARKETS 25.7x 35.2x 41.0x 16.6x 20.7x 22.7x EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA 16.8x 34.6x 25.2x 16.6x 15.4x 45.5x EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA
Slide 73: Education Sector
CAPITAL MARKETS DAY 2021 Education Sector Ralf Schremper
Slide 74: Education sector has rapidly developed since 2018
As predicted in 2018, the Education sector has rapidly developed over the past few years … Recap from 2018 Investor Day One of the largest global sectors … still underdeveloped compared to … and with attractive Healthcare… investment characteristics Selected global spend by sector In USD trn, OECD c
Slide 75: Strong deal momentum, consolidation in full swing
… and on the back of a strong deal momentum the consolidation is in full swing resulting in significant increases of equity value # of European Global stock market cap. Avg. EV/EBITDA multiple(1) PE education deals education services (€bn) education services 1.8x 3x 28x 42 913 23x 22x 29 555 22 309
Slide 76: Oakley is one of the most active education investors in Europe
Oakley is one of the most active education investors in Europe # of European education deals over the last 5 years 5 3 3 2 2 Investor of the Year at the annual EducationInvestor Awards 2019 2 Sources: MergerMarket, Company websites OAKLEY CAPITAL INVESTMENTS 76
Slide 77: Education portfolio at glance
Education portfolio at glance ACE Education £18.8m Schülerhilfe £47.5m IU Group (CPG) £73.0m Ocean Technologies £25.9m Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and refinancings (IU OAKLEY CAPITAL INVESTMENT
Slide 78: Education portfolio: IU Group
Education portfolio at glance: company in focus #1 higher education leader in Germany IU Group (CPG) 10.0% of NAV 4.4x Growth in student numbers 2017-2020 Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and refina
Slide 79: Education portfolio: Ocean Technologies
Education portfolio at glance: company in focus #1 maritime learning platform globally 1.4x Growth in EBITDA Ocean 2019-2020 Technologies 3.6% of NAV Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and refinancing
Slide 80: Education portfolio: Schülerhilfe
Education portfolio at glance: Schülerhilfe #1 after-school tutoring leader in DACH Schülerhilfe 6.5% of NAV 1.3x Growth in corporate centres 2017-2020 Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) and refinanci
Slide 81: Education portfolio: ACE Education
Education portfolio at glance: ACE Education ACE Education 2.6% of NAV France’s leading vocational higher education group 4.0x Growth in student numbers 2017-2020 Note: Portfolio investments valued at 31 December 2020 and including subsequent investments (Idealista, Dexters), realisations (Daisy) an
Slide 82: Ocean Technologies Group
Ocean Technologies Group The leading maritime e-learning businesses worldwide Investment summary (as at 31 Dec 2020) Investment date: Jun-2019 Sector: Education Region: Norway/UK OCI’s open cost: £21.9m OCI’s valuation: £25.9m Of OCI NAV: 3.6%
Slide 83: Creating a clear market leader in regulated maritime software
Creating a clear market leader in regulated maritime software COMPULSORY ATTRACTIVE SOFTWARE SYNERGY POTENTIAL REGULATED TRAINING METRICS FROM COMBINATION % of customers who see OTG services as essential for complying with regulation (1) 94% Cost savings from removing Gross margin duplication of fun
Slide 84: The leading maritime e-learning businesses worldwide
The leading maritime e-learning businesses worldwide PERFORMANCE Strategic update Revenue Growth ($m) ▪ Completed integration of the two businesses delivering significant cost synergies +10% ▪ Significant moment in yield uplift & share of wallet growth ▪ Integrated four bolt-on acquisitions Performa
Slide 85: Significant future growth potential
Significant future growth potential The leading maritime software group globally Grow share of Grow share of Grow share of market training wallet digital spend OTG OTG OTG OTG today $34k entry today future 19k vessels Training and compliance ✓✓ ✓✓ ✓✓ software ERP software ✓ ✓✓ 48% HCM ✓✓ software $2
Slide 86: Appendix: Portfolio Company Overview
CAPITAL MARKETS DAY 2021 APPENDIX Portfolio Company Overview
Slide 87: WebPros
WebPros A leading hosting provider for server management globally Investment summary (as at 31 Dec 2020) Investment date: Feb-2020 Sector: Technology Region: Switzerland OCI’s open cost: £45.3m OCI’s valuation: £50.4m Of OCI NAV: 6.9% 87
Slide 88: A leading hosting provider for server management globally
A leading hosting provider for server management globally PERFORMANCE Opportunity ▪ Partnering with proven entrepreneurs to institutionalise an Revenue Growth ($m) under-managed business with a highly sticky customer base +21% Strategic update ▪ The business has been completely unaffected by COVID,
Slide 89: Facile
Facile Italy’s leading price comparison website Investment summary (as at 31 Dec 2020) Investment date: Jun-2018 Sector: Technology Region: Italy OCI’s open cost: £20.8m OCI’s valuation: £35.0m Of OCI NAV: 4.8% OAKLEY CAPITAL INVESTMENTS 89
Slide 90: Italy's leading price comparison site
Italy’s leading price comparison site PERFORMANCE Opportunity ▪ As market leader, Facile is well-positioned to take advantage Revenue Growth (€m) of expected growth in the Italian price comparison market, +17% which is currently less developed than other European markets Strategic update ▪ New CEO s
Slide 91: Ekon
Ekon Spanish provider of Enterprise Resource Planning Software Investment summary (as at 31 Dec 2020) Investment date: Jun-2019 Sector: Technology Region: Spain OCI’s open cost: £22.5m OCI’s valuation: £21.7m Of OCI NAV: 3.0% OAKLEY CAPITAL INVESTMENTS 91
Slide 92: Spanish provider of Enterprise Resource Planning Software
Spanish provider of Enterprise Resource Planning Software PERFORMANCE Opportunity ▪ With a leading cloud product and positioning as a Spanish champion, Revenue Growth (€m) Ekon is well placed to benefit from the structural shift to the cloud in a +4% market dominated by legacy technology and interna
Slide 93: Daisy
Daisy #1 independent provider of converged B2B communications, IT and cloud services Investment summary (as at 31 December 2020) Investment date: Jul-2015 Sector: Technology Region: UK OCI’s open cost: £8.9m OCI’s valuation: £13.0m(1) Of OCI NAV: 1.8% OAKLEY CAPITAL INVESTMENTS 93 (1) Adjusted for s
Slide 94: #1 independent provider of converged B2B communications, IT and cloud services
#1 independent provider of converged B2B communications, IT and cloud services PERFORMANCE Opportunity ▪ Working with an long-established Oakley partner to grow Revenue Growth (£m) the business through transformational M&A -2% Performance update ▪ Financial performance has been mixed, with growth in
Slide 95: TechInsights
TechInsights The content information platform for the semiconductor market to support product benchmarking and intellectual property strategy Investment summary (as at 31 Dec 2020) Investment date: May-17 Sector: Technology Region: Canada OCI’s open cost: £0.4m OCI’s valuation: £15.5m Of OCI NAV: 2.
Slide 96: A global leader in the IP and technology services market
A global leader in the intellectual property and technology services market Opportunity PERFORMANCE ▪ Leveraging TechInsights extensive, proprietary technology Revenue Growth ($m) database and experience to accelerate growth in its subscription -1% business Strategic update ▪ Acquisition of HIS Mark
Slide 97: 7NXT
7NXT Fast-growing online fitness and nutrition platform in the DACH region Investment summary (as at 31 Dec 2020) Investment date: Sep-2020 Sector: Technology Region: DACH OCI’s open cost: £10.3m OCI’s valuation: £10.3m Of OCI NAV: 1.4% OAKLEY CAPITAL INVESTMENTS 97
Slide 98: Fast-growing online fitness and nutrition platform in DACH
Fast-growing online fitness and nutrition platform in the DACH region PERFORMANCE Investment thesis ▪ Structural growth market: Nascent market benefitting from offline to Group Revenue Growth (€m) online shift and structural change in consumer behaviour CAGR 66% ▪ Market leading subscription product
Slide 99: Contabo
Contabo A leading cloud infrastructure platform Investment summary (as at 31 Dec 2020) Investment date: Oct-2019 Sector: Technology Region: Germany OCI’s open cost: £5.0m OCI’s valuation: £9.7m Of OCI NAV: 1.3% OAKLEY CAPITAL INVESTMENTS 99
Slide 100: A leading cloud infrastructure platform
A leading cloud infrastructure platform PERFORMANCE Opportunity ▪ Known in the market for its technology edge, high Revenue Growth (€m)(1) performance, customer support and competitive pricing, Contabo is well placed to benefit from further growth +44% Strategic update ▪ Acquisition of VSHosting, a
Slide 101: atHome
atHome An online property group comprising a portfolio of real estate websites and mobile applications Investment summary (as at 31 Dec 2020) Investment date: Jan-2017 Sector: Technology Region: Luxembourg OCI’s open cost: £0.0 OCI’s valuation: £7.7m Of OCI NAV: 1.1% OAKLEY CAPITAL INVESTMENTS 101
Slide 102: An online property group of real estate websites and apps
An online property group comprising a portfolio of real estate websites & mobile apps PERFORMANCE Opportunity ▪ Realising synergies through integration of assets and cost Revenue Growth (€m) optimisation, and then accelerating growth through more +12% efficient marketing and expansion into adjacent
Slide 103: Time Out
Time Out A trusted global brand that inspires and enables people to experience the best of a city Investment summary (as at 31 Dec 2020) Investment date: Nov-2010 Sector: Consumer Region: Global OCI’s open cost: £84.3m OCI’s valuation: £43.3m Of OCI NAV: 5.9% OAKLEY CAPITAL INVESTMENTS 103
Slide 104: A trusted global brand that inspires experiencing the best of a city
A trusted global brand that inspires and enables people to experience the best of a city PERFORMANCE Opportunity ▪ Transitioning a trusted global brand from print to digital and Revenue Growth (£m) rolling out the Time Out Market concept to new cities +19% Strategic update ▪ New management agreement
Slide 105: North Sails
North Sails The leading marine action sports business Investment summary (as at 31 Dec 2020) Investment date: Mar-2014 Sector: Consumer Region: Global OCI’s open cost: £45.1m OCI’s valuation: £35.2m Of OCI NAV: 4.8% OAKLEY CAPITAL INVESTMENTS 105
Slide 106: The leading marine action sports business
The leading marine action sports business PERFORMANCE Strategic update ▪ Material impact from COVID on the business, with the Revenue Growth ($m) manufacturing part of the business disproportionately hit +3% ▪ Production delays as manufacturing sites were forced to close ▪ Global supply chain issues
Slide 107: WindStar Medical
WindStar Medical Germany’s leading over-the-counter consumer healthcare platform Investment summary (as at 31 Dec 2020) Investment date: Dec-2020 Sector: Consumer Region: Germany OCI’s open cost: £30.7m OCI’s valuation: £30.7m(1) Of OCI NAV: 4.2% OAKLEY CAPITAL INVESTMENTS 107 (1) Adjusted for syndi
Slide 108: Leading German OTC consumer healthcare platform with strong financial profile
Leading German over-the-counter consumer healthcare platform with strong financial profile PERFORMANCE Investment thesis ▪ Opportunity to invest in a structural growth market, driven by Revenue Growth (€m) demographic megatrends (ageing population, diseases of affluence) +14% and sustainable structu
Slide 109: Wishcard Technologies Group
Wishcard Technologies Group A leading consumer technology company in the gift voucher and B2B gift card sector Video presentation In conversation with: Valentin Schütt Investment summary (as at 31 Dec 2020) Investment date: Sep-2019 Sector: Consumer Region: Germany OCI’s open cost: £17.3m OCI’s valu
Slide 110: A leading consumer technology company in gift vouchers and B2B gift cards
A leading consumer technology company in the gift voucher and B2B gift card sector PERFORMANCE Opportunity ▪ Rapidly growing business set to become one of the leading Total Voucher Sales (€m) physical and digital gift card networks in the DACH region Strategic update ▪ Good progress with the profess
Slide 111: Alessi
Alessi Italian high-end design business focused on homeware products Investment summary (as at 31 Dec 2020) Investment date: Aug-2019 Sector: Consumer Region: Italy OCI’s open cost: £16.1m(1) OCI’s valuation: £16.1m(1) Of OCI NAV: 2.2%(1) (1) Cost and valuation for Iconic BrandCo – a single holding
Slide 112: Italian high-end design business focused on homeware products
Italian high-end design business focused on homeware products PERFORMANCE Opportunity ▪ Two iconic brands (Alessi and Globe-Trotter) with a product Revenue Growth (€m) development approach that is unique and attractive, offering significant -6% headroom for strategic growth Strategic update ▪ Progre
Slide 113: Globe-Trotter
Globe-Trotter British luxury luggage brand producing world-renowned suitcases Investment summary (as at 31 Dec 2020) Investment date: Mar-2020 Sector: Consumer Region: UK/Japan OCI’s open cost: £16.1m(1) OCI’s valuation: £16.1m(1) Of OCI NAV: 2.2%(1) (1) Cost and valuation for Iconic BrandCo – a sin
Slide 114: British luxury luggage brand producing world-renowned suitcases
British luxury luggage brand producing world-renowned suitcases PERFORMANCE Opportunity ▪ Two iconic brands (Alessi and Globe-Trotter) with a product Revenue Growth (£m) development approach that is unique and attractive, offering significant headroom for strategic growth -21% Strategic update ▪ Dis
Slide 115: Dexters
Dexters London’s leading independent Chartered Surveyors and Estate Agents Investment summary (as at acquisition) Investment date: Feb-2021 Sector: Consumer Region: UK OCI’s open cost: £13.4m OCI’s valuation: £13.4m Of OCI NAV: 1.9% OAKLEY CAPITAL INVESTMENTS 115
Slide 116: London's leading independent Chartered Surveyors and Estate Agents
London’s leading independent Chartered Surveyors and Estate Agents PERFORMANCE Investment Thesis ▪ Bilateral deal with an attractive entry valuation Revenue Growth (£m) ▪ Strong track record of performance through economic cycles: over 10 +11% year +15% revenue CAGR through a combination of M&A and
Slide 117: IU Group (CPG)
IU Group (CPG) The largest and fastest-growing university group in Germany Investment summary (as at 31 Dec 2020) Investment date: Jan-2018 Sector: Education Region: Germany OCI’s open cost: £0.0m OCI’s valuation: £73.0m(1) Of OCI NAV: 10.0% OAKLEY CAPITAL INVESTMENTS 117 (1) Adjusted for refinancin
Slide 118: The largest and fastest-growing university group in Germany
The largest and fastest-growing university group in Germany PERFORMANCE Opportunity ▪ Supporting the continual development of one of the most Revenue Growth (€m) highly ranked university businesses in Germany, particularly in the online university and dual studies segments, two high- +46% growth sec
Slide 119: Schülerhilfe
Schülerhilfe The #1 provider of after-school tutoring across Germany and Austria Investment summary (as at 31 Dec 2020) Investment date: Jul-2017 Sector: Education Region: Germany OCI’s open cost: £31.3m OCI’s valuation: £47.5m Of OCI NAV: 6.5% OAKLEY CAPITAL INVESTMENTS 119
Slide 120: Leading provider of after-school tutoring in Germany and Austria
Leading provider of after-school tutoring in Germany and Austria PERFORMANCE Opportunity ▪ The leading afterschool tutoring provider in Germany, Revenue Growth (€m) providing better results at a lower cost than competitors, +6% and with a proven track-record of consistent growth Strategic update ▪ C
Slide 121: Ocean Technologies Group
Ocean Technologies Group The leading maritime e-learning businesses worldwide Investment summary (as at 31 Dec 2020) Investment date: Jun-2019 Sector: Education Region: Norway/UK OCI’s open cost: £21.9m OCI’s valuation: £25.9m Of OCI NAV: 3.6% OAKLEY CAPITAL INVESTMENTS 121
Slide 122: The leading maritime e-learning businesses worldwide
The leading maritime e-learning businesses worldwide PERFORMANCE Opportunity ▪ A chance to combine the two market leaders in the maritime e- Revenue Growth ($m) learning market and create further upside opportunities through +10% expansion into adjacent markets Strategic update ▪ Completed integrati
Slide 123: ACE Education (AMOS)
ACE Education (AMOS) France’s leading vocational higher education group Investment summary (as at 31 Dec 2020) Investment date: Aug-17 Sector: Education Region: France OCI’s open cost: £7.2m OCI’s valuation: £18.8m Of OCI NAV: 2.6% OAKLEY CAPITAL INVESTMENTS 123
Slide 124: France's leading vocational higher education group
France’s leading vocational higher education group PERFORMANCE Opportunity ▪ ACE provides a platform for a roll-up in the higher education Revenue Growth (€m) sector, with the aim of replicating the success of Inspired in the K-12 sector +57% Strategic update ▪ ACE is continuing to expand organicall
Slide 125: 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 126: Capital Markets Day 2021
CAPITAL MARKETS DAY 2021