Molten Ventures Plc · LSE:GROW
Molten Ventures — H1 FY23 Earnings Presentation
40 slides from Molten Ventures's earnings presentation, Nov 21, 2022
Slide 1: Molten Ventures plc Interim Results FY23
Molten Ventures plc Interim Results FY23 November 2022 moltenventures.com
Slide 2: Disclaimer
Disclaimer This document has been prepared by Molten Ventures plc ("Molten Ventures" or the "Company") and is for general information purposes only. The information provided in this document pertaining to Molten Ventures, its broader group ("Group"), its portfolio companies, and the business assets,
Slide 3: Contents
FY23 Interim Results Contents 1. Introduction 2. Interim Results for the period ended 30 September 2022 3. Portfolio Update 4. Market Update 5. Outlook 6. Appendix 3
Slide 4: Introduction
FY23 Interim Results Introduction H1 of FY23 saw the continued delivery of our strategy against the backdrop of a challenging market environment, with investment momentum slowing to reflect tougher economic conditions. • Gross fair value reduction of 17% (constant currency) driven by the movement in
Slide 5: Investment Process
FY23 Interim Results A unique, resilient model Stages Investments are made Our platform and deployment strategies allow us to invest from seed through to Thousands pre-IPO, supporting the best companies as they grow. Secondary Seed fund in accordance with our of Co's raising market access of funds E
Slide 6: Interim Results
2. Interim Results for the period ended 30 September 2022 6
Slide 7: Highlights at September 2022
FY23 Interim Results Highlights at 30 September 2022 £1,450m* £1,280m 837p -12%* Gross Portfolio Value Net Assets NAV per share Gross Portfolio fair value decrease (31 March 2022: £1,532m) (31 March 2022: £1,434m) (31 March 2022: 937p) -17% gross of FX impact (six months to 30 September 2021: Gross
Slide 8: Gross Portfolio and NAV Progression
FY23 Interim Results Gross Portfolio and NAV Progression NAV Progression £1,600m 1000 p 937 p 887 p £1,434m 837 p 900 p £1,400m £1,350m £1,280m 743 p 800 p £1,200m 700 p £1,033m 600 p £1,000m 574 p 555 p 600 p 524 p £800m 500 p £715m 416 p £677m £660m £619m 343 p 400 p £600m 300 p £400m £298m 200 p
Slide 9: Valuation Attribution
FY23 Interim Results Valuation Attribution Attribution analysis of the valuation contributors of movements in the gross portfolio value between Mar-22 to Sep-22 Analysis of value attribution FV -£180m (12%) HY Sep-21 Mar-22 Additions Realisations FX Net FV loss in FV loss in Net FV loss Net FV loss
Slide 10: Deployment
FY23 Interim Results Stages of investment - % primary vs follow-on (no. of deals)*^ Deployment 100% • £112m deployed in HY23 80% • £56m into new companies 60% • £31m in follow-ons 40% • £25m into Fund of Funds (incl EB) • Investment mix includes £56m of primary, principally closing investments 20% a
Slide 11: Investments and Exits during H1 FY23
FY23 Interim Results Timeline Key Primary Investment Investments and Exits during H1 FY23 Follow-on investments Exit • £112m invested, of which £87m into direct investments and £25m into Fund of Funds (incl EB) Partial sale of shares, remains a holding • Target of £150m for the year (plc) Via Earlyb
Slide 12: Income and cost progression as at September 2022
FY23 Interim Results Income and cost progression as at 30 September 2022 Molten Ventures Group assets under management Fee Income and Costs as % of NAV (FY23 on H1 Run Rate) (assets managed by managers within the Group) £30.0 7.0% Fee income / operating costs (excl. exceptional) £m 6.0% £25.0 £0.3bn
Slide 13: Returns Track Record since 2016 IPO
Key FY23 Interim Results Fully realised Returns Track Record since 2016 IPO Partially realised Accessed via strategic relationships with Earlybird or Seedcamp Returns Multiple* No return/valued at 0x < 1x 1x < 3x 3x+ world stores % of Invested Capital** 8% 18% 29% 45% Return Proceeds -*** £11m £81m
Slide 14: Portfolio Update
3. Portfolio Update 14
Slide 15: Portfolio Resilience
FY23 Interim Results Portfolio Resilience Portfolio fair value totals for each valuation technique Current FV vs Last round value (rounds within last £1,000m twelve months (LTM)) £904m £900m £807m £1,200m £1,073m £800m £700m £1,000m £806m £800m £600m £800m £500m £418m £451m £584m £400m £327m £600m £
Slide 16: Portfolio resilience (cont.) Core Portfolio Revenue Growth
FY23 Interim Results Portfolio resilience (cont.) Core Portfolio Revenue Growth (2021 v 2022) 4000 6 66% Aggregate 2022 revenues ($m) 3500 • Revenues have grown at an average for the Core of over 60% (forecast for 2022) 3000 with forecast growth of over 70% for 2023 2500 • Well-funded portfolio - ov
Slide 17: Gross Portfolio Value Progression
FY23 Interim Results Gross Portfolio Value Progression Key period ending 30 September 2022 17
Slide 18: Market Update
4. Market Update 18
Slide 19: Maturing VC Market in Europe
FY23 Interim Results Europe deals by round size ($bn) Maturing VC Market in Europe 140.0 120.0 100.0 The European VC market has experienced growth at a rate of 34% 34% CAGR over the past 6 years (2015-2021) 80.0 60.0 40.0 20.0 The European VC market is estimated at $119.0bn (2021), with 0.0 $119bn Y
Slide 20: Economic Downturns Create Innovation
FY23 Interim Results Economic Downturns Create Innovation Since 2001, we have experienced 3 global downturns which have dramatically shifted the valuation environment, the DotCom Bubble, Global Financial Crisis and the COVID Pandemic. In each downturn, category leading businesses have been born to c
Slide 21: Outlook
> Outlook Molten
Slide 22: Outlook
FY23 Interim Results Outlook Looking forward to the second half of the year; we expect uncertainty will continue in the medium term and that macroeconomic factors and current geopolitical tensions are unlikely to change significantly before our year end. • Remain on track for £150m deployment (deplo
Slide 23: Thank you
Thank you moltenventures.com
Slide 24: Appendix
6. Appendix 24
Slide 25: Gross Portfolio Value Table
Gross Portfolio Value Table As at 30 September 2022 Molten Fair value Fair Value of Fair Value of Ventures Movement in Fair value movement Investments Ownership Investments 31-Mar-22 Realisations (Ireland) Foreign Exchange movement 30-Sep-22 30-Sep-22 interest Investments £m Investments £m £m Limite
Slide 26: Condensed Consolidated Interim Statement of Comprehensive Income
Condensed Consolidated Interim Statement of Comprehensive Income For the period ended 30 September 2022 Unaudited Unaudited Period Ended Period Ended 30 Sep 2022 30 Sep Notes £’m 2021 £’m Change in (losses)/gains on investments held at fair value through profit or loss 6 (155.9) 252.0 Fee income 11.
Slide 27: Condensed Consolidated Interim Statement of Financial Position
Condensed Consolidated Interim Statement of Financial Position As at 30 September 2022 Unaudited Audited 30 Sep 2022 31 Mar 2022 Notes £’m £’m Non-current assets Intangible assets 9 10.6 10.7 Financial assets held at fair value through profit or loss 11 1,353.0 1,410.8 Deferred tax - 1.6 Property, p
Slide 28: Valuations process
FY23 Interim Results Valuations process Governance The Audit, Risk and Valuations Committee is responsible for ensuring that the financial performance of the Group is properly reported on and monitored. In addition to continuous portfolio monitoring through the Board positions held in portfolio comp
Slide 29: Debt Facility
FY23 Interim Results Debt Facility On 6 September 2022, the Company entered into a facility agreement relating to a new debt facility (the “Debt Facility”) with J.P. Morgan Chase Bank N.A., London Branch (“JPM”) and Silicon Valley Bank UK Limited (“SVB”), with a JPM affiliate acting as the appointed
Slide 30: Our Portfolio (cont.)
6.a Our Portfolio (cont.) 30
Slide 31: Cash realisations and returns on the portfolio
FY23 Interim Results Cash realisations and returns on the portfolio Cash realisations as % opening portfolio (Loss) / Profit after tax and return on Gross Portfolio Value £500m 60% £400m 70% £452m 65% £450m 60% 52% 58% £301m 50% £300m £400m £267m 51% 50% £350m 43% 40% £200m 40% 37% £300m £206m £111m
Slide 32: Proven ability to realise investments
FY23 Interim Results Proven ability to realise investments Cumulative Realisations and Partial Realisations Since IPO (£m) 450 400 350 Realisation proceeds (£m) 300 250 200 150 100 50 - Qosmos Movidius Data Hug Horizon Clavis Insight Moviepilot Aveillant Graze Tails.com UiPath Peak Games Transferwis
Slide 33: Strength in diversified approach
FY23 Interim Results Strength in diversified approach Balanced portfolio underpinned by strong revenue growth Core holdings as % of GPV Average core revenues Number of portfolio companies Number of portfolio companies* (by value as at 30 September 2022) split by sector 90 $600m 80 $500m $483m 70 16
Slide 34: Our Portfolio as at September 2022
Held via Earlybird FY23 Interim Results Our Portfolio as at 30 September 2022 Consumer technology Enterprise technology Hardware & Deeptech Digital health & wellness 14% byvalue 16 by number of companies 51% byvalue 33 by number of companies 30% byvalue 22 by number of companies 5% byvalue 7 by numb
Slide 35: Fund of funds, your first backers backed
FY23 Interim Results Fund of funds, your first backers backed 67 Funds committed since 2017 10 Seed funds committed to in FY23 ~1500 Portfolio companies across all funds £132.3m Total commitments, £71.8m drawn down to 30 Sep 2022 £50k Average investment per seed company, Average equity stake of 0.4%
Slide 36: Ecosystem Activity
FY23 Interim Results Ecosystem Activity Significant growth in the market continues as European VC scales into the size of US VC, however US VC Funds continue to be better capitalised. Total Venture Capital deployed by year ($bn) Total Venture Capital funds raised per year ($bn) 160 50% 400 45% 45% 4
Slide 37: ESG
6.b ESG 37
Slide 38: Responsible investment
FY23 Interim Results 1. Pre-screening Responsible investment We are mindful of the general themes surrounding ESG and our role as a responsible investor when considering potential Integration of ESG in our investment strategy investments We are committed to a policy of responsible investment through
Slide 39: Our ESG progress in FY23
FY23 Interim Results Our ESG progress in FY23 ESG has been a continued focus during the year. ‘Make more possible’ is not just about capital investment, it is also about the positive transformation that Molten can drive through its actions. April 2022 May 2022 June 2022 July 2022 August 2022 Septemb
Slide 40: Thank you
Thank you Contents Contact us Investor Portal: https://investors.moltenventures.com/ Email: ir@molten.vc Telephone: +44 (0)20 7931 8800 London Office 20 Garrick Street London WC2E 9BT Dublin Office The Merrion Buildings 18-20 Merrion Street Dublin D02 XH98 40