Molten Ventures Plc · LSE:GROW
Molten Ventures — FY2021 Earnings Presentation
45 slides from Molten Ventures's earnings presentation, Jun 14, 2021
Slide 1: Draper Esprit plc Investor Presentation Annual Results 2021
Draper Esprit plc Investor Presentation Annual Results 2021 14 June 2021
Slide 2: Disclaimer
Disclaimer This document has been prepared by Draper Esprit plc ("Draper Esprit" or the "Company") and is for general general and specific, that contribute to the possibility that the predictions, forecasts, projections and other information purposes only. The information provided in this document p
Slide 3: Contents
Contents 01. Results for the year 02. Flexible model for all conditions 03. Market context 04. Portfolio update 05. Summary & outlook 06. Appendix 3
Slide 4: Introduction
Introduction • FY21 demonstrated the strength and flexibility of the Draper Esprit model under two separate sets of market conditions • Market shock in H1 prompted focus on portfolio companies and refining our model: • Getting close to companies and supporting management teams through the early stag
Slide 5: 01. Results for the year ended 31 March 2021
01. Results for the year ended 31 March 2021 5 Revolut
Slide 6: Performance highlights for the year ended March 2021
Performance highlights for the year ended 31 March 2021 £984m 743p £1,033m £161m Gross Portfolio Value NAV per share Net Assets Available plc cash, as (31 March 2020; £703m) (31 March 2020; (31 March 2020; £660m) well as £43m available 555p) from EIS/VCT funds (31 March 2020; £34m with c.£50m from E
Slide 7: Deployment
Deployment • £128m capital deployed in FY21 • £51m in new companies • £34m in follow-ons • £43m into fund of funds (incl EB) • Over 70% of capital into Series B+, increasingly leading rounds • Consistency of investment by number of deals and stage • Capital deployment targeted of £150m+ for FY22 £25
Slide 8: Cash realisations
Cash realisations • ~£313m of cash proceeds received since IPO, of which £206m realised in the past year • Fair value gains are turned into cash through realisations Profit after tax and return on gross portfolio Cash realisations as % opening portfolio £313m 80% £267m 200% £300m £250m 180% £250m 16
Slide 9: Core Portfolio continues to deliver majority of growth
Core Portfolio continues to deliver majority of growth 9
Slide 10: Plc invested £128m in the year, a further £48m post year-end
Plc invested in £128m in the year ending 31 March 2021, and a further £48m post year-end Further £34m from EIS/VCT funds during the year ended 31 March 2021 Post year- end Year-end 10
Slide 11: 02. Flexible Model for all Market Conditions
02. Flexible Model for all Market Conditions 11 Cazoo
Slide 12: Investment Process
A differentiated model that can scale Scaling the model • Additional commitment to Fund of funds Ticket Size • Acquisition of EIS and VCT > £50m • Established Responsible Investment Policy (ESG) Thousands Ticket Size Secondary Seed Fund + Cos raising £10-50m Market Access of Funds in Europe Platform
Slide 13: 1. Improved dealflow and deal origination
1. Improved dealflow and deal origination Systematic sourcing utilises deep networks across Europe to deliver high quality dealflow Data driven systematic flagging of deals based on tracking key financial metrics Systematic Logging & Signalling Live Deals Regular reviews through 1 GROWING DATABASE O
Slide 14: 2. Our fund of funds
2.Our fund of funds £12.3m ~£41.7m Seed fund Remaining commitments drawdowns over 5-8 years in the year £25.5m drawn to 31 March 2021 £40.0k Average investment per +600 seed companies Portfolio so far Companies, across all Average equity funds stake of 0.5% Hopin & 15 Cazoo Seed fund invested in com
Slide 15: 3. Earlybird
3. Earlybird LP% NAV value Invested Expanding our presence in the European market Earlybird Fund VI 56.45 £128.9m £68.2m £136.5m £287.0m £103.1m Earlybird Fund IV 26.73 £29.9m £28.7m Total invested in EB Valuation of EB Cash realised via EB Earlybird Digital East I 5.87 £106.0m £0.4m – Primary £16.1
Slide 16: 4. Broadening our Investor Base with EIS & VCT
4. Broadening our Investor Base with EIS & VCT The EIS and VCT funds, whose managers are now 100% owned by Draper Esprit group, co-invest with us on earlier stage UK deals. Our co-investment partners bring third-party capital, enabling the Plc to build a more material stake in businesses, £43m £229m
Slide 17: 03. Market Context
03. Market Context 17 Peter Mühlmann - Trustpilot
Slide 18: Market Update (1)
Market Update (1) European VC activity saw near record levels of investment in later stage companies. EU VC funds raised – number and total amounts Global VC Firepower – Targeting EU Tech Deals Investors (Global) No. of Funds Fund Value EU Deals (€bn) (€bn) Insight Partners 1 5.73 1.64 Accel 4 1.95
Slide 19: Market Update (2)
Market Update (2) • Activity in Q1 2021 breaks records – new “unicorns” in Q1 2021 compare to whole years 2018-2020 • In this environment, a flexible capital raising platform, access to the best seed deals, a disciplined investment procedure and the ability to continue to make follow-on deals is the
Slide 20: Our Sustainability Ambition
Our Sustainability Ambition Continuing to progress our ESG roadmap At 31 March 2021, we assessed 52* of our portfolio companies for alignment with 1 or more 05 companies UN Sustainable Development Goals (14% of the Gross Portfolio Value not assessed). companies of 01 09 02 01 35 those assessed mappe
Slide 21: 04. Portfolio update
04. Portfolio update 21 Graphcore
Slide 22: Our portfolio
Our portfolio 71 Total portfolio companies 49 directly managed Consumer technology New consumer-facing products, innovative business models, and proven execution capabilities that bring Core portfolio exceptional opportunities enabled by company technology. 25% 32% by value by number of companies En
Slide 23: Significant fair value drivers
Significant fair value drivers Valuation key IPO LR LR: Valuation based on last round price C: Valuation based on a set of comparable listed peers • Online global review site, Trustpilot, has detected and stamped out over 2.2 • Post-year end in April 2021, UiPath listed on the New York Stock Exchang
Slide 24: Significant fair value drivers
Significant fair value drivers Valuation key LR LYST C LR: Valuation based on last round price C: Valuation based on a set of comparable listed peers • Allows developers to focus on application building while the platform manages • London-based Lyst, the leading platform for the world’s fashion shop
Slide 25: 05. Summary & outlook
05. Summary & outlook 25 Perkbox
Slide 26: Outlook
Outlook Despite continuing uncertainty due to the ongoing Covid-19 pandemic, we look positively to the new financial year with the intention of increasing our deployment to above £150m pa. The market environment remains competitive, but activity is at an all time high, driven by the post pandemic sh
Slide 27: 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, Director Stuart.chapman@draperesprit.com
Slide 28: 06. Appendix
DE Draper Esprit Portfolio Investment ISA v 06. Appendix Investments Apple 28 Freetrade
Slide 29: Gross portfolio value table
Gross portfolio value table Movement Movement Total Fair Interest FD Fair Value of Draper Esprit In Foreign In Value Fair Value of category* Investments (Ireland) Exchange Fair Value Movement Investments At 31-Mar-20 Investments Realisations Limited (A) (B) (A+B) 31-Mar-21 reporting Company £m £m £m
Slide 30: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income Year ended Year ended For the year ended 31 March 2021 31 March 31 March 2021 2020 Note £’000s £’000s Change in gains on investments held at fair value through the profit and loss 5 276,307 40,755 Fee income 12,507 11,255 6 Total income 288,814 52,010 O
Slide 31: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31 March 31 March As at 31 March 2021 2021 2020 Note £’000s £’000s Non-current assets Intangible assets 14 10,936 10,028 Investments in associates 15,18 – 258 Financial assets held at fair value through the profit or loss 16 867,088 657,333 Property, plan
Slide 32: Gross portfolio value progression NAV progression
Gross portfolio value progression NAV progression £1,050m £1,033m £950m £850m £750m 743 pence £714m £677m £660m £206m £650m £618m 600 pence 574 pence 555 pence £550m 524 pence £450m 416 pence £350m343 pence £300m £250m £140m £150m £50m FY17 FY18 FY19 HY20 FY20 HY21 FY21 NAV NAV per share 32
Slide 33: Significant fair value drivers
Valuation key LR: Valuation based on Significant fair value drivers last round price C: Valuation based on a set of comparable listed peers C LR C • The security and infrastructure solution provider for • Continues to make trading commission-free and easy by adding • One of the UK’s fastest-growing
Slide 34: Significant fair value drivers
Valuation key LR: Valuation based on Significant fair value drivers last round price C: Valuation based on a set of comparable listed peers LR C LR • Machine Intelligence semi-conductor company, develops IPU • Cloud-based call centre system, Aircall, provides an integrated • The Intelligent informat
Slide 35: Significant fair value drivers
Valuation key LR: Valuation based on Significant fair value drivers last round price C: Valuation based on a set of comparable listed peers C C C • Online lending platform, that provides easy access to the best • Utilizes technology to improve cancer care by preventing • Membership-based eCommerce b
Slide 36: Significant fair value drivers
Significant fair value drivers C Valuation key LR LR: Valuation based on last round price C: Valuation based on a set of comparable listed peers • Cloud native core banking technology company, Thought Machine, provides • Leading big data analytics provider for financial services, allows clients to c
Slide 37: Significant fair value drivers
Significant fair value drivers Valuation key LR C LR: Valuation based on last round price C: Valuation based on a set of comparable listed peers • Revolut celebrated 3 years of business in Sept 2020, marking 500k business • Employee well-being platform that provides a unique employee experience, cus
Slide 38: Focused on long-term winners in technology
Focused on long-term winners in technology Cash When companies exit, the cash generated is returned to the balance sheet and re-invested into new opportunities in the market. Core companies The companies in the portfolio representing 69% of Gross Portfolio Value, which is 58% of the Net Asset Value
Slide 39: Core portfolio revenues
Core portfolio revenues Core Holdings as % GPV Average core revenues 39
Slide 40: Track Record
Track Record • Historical track record of over 20% 2021 2020 2019 2018 2017 2016 IRR prior to IPO*** • Over 145+ deals since 2006 • Over $14.9bn value of exits since 2010 *** Aggregate portfolio return since 2010 of ^ Peak Games includes escrow amounts due the Company *UiPath, Trustpilot and Codilit
Slide 41: Track Record
Track Record Nav progression for deals >£2m 8.3x Peak Games (£88.0m) 8.0x 8.3x UiPath (£9.9m) 7.6x 7.1x 7.6x 7.3x Transferwise (£32.6m) Grapeshot (£11.5m) 5.3x Podpoint (£12.4m) 4.5x Clavis Insight (£15.3m) 4.5x 4.3x Graze (£6.3m) 4.0x 3.5x 3.5x 3.5x Tails.com (£2.9m) 3.2x 3.1x Horizon (£2.9m) 2.7x
Slide 42: Delivering Growth with our people
Delivering Growth with our people Partnership team Platform team Our Partnership team works hard to make sure we find and offer the best opportunities to Our Platform team has been established and developed to enable the founders of tomorrow as well as support the companies already in our portfolio.
Slide 43: Our Sustainability Ambition
Our Sustainability Ambition Our ESG ambitions are an ongoing and evolving process that we are committed to build and develop over time. Meaningful steps have been taken in this year across multiple areas within our business. Our mission is to empower Europe to invent the future. We want that future
Slide 44: Draper Esprit Group Responsible Investment & Sustainability Policy
Draper Esprit Group Responsible Investment & Sustainability Policy Target ESG Standards Our aim is to invest in businesses and entrepreneurs who are committed to changing the world in a positive way by embodying the following sustainable practices and standards in their business activities: 1. Empha
Slide 45: Hands on support Long term investment Global firepower
Hands on support Long term investment Global firepower When we invest, we offer a lot more than Our structure as a growth-focused technology We are part of a global community of investors money. We typically take a seat on the board of venture capital firm dual listed on the London and funds looking