Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Shareholder Meeting (November 2023)
29 slides from Bailador Technology Investments's shareholder meeting presentation, Nov 2, 2023
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 2 November 2023 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: David Kirk, Co-Founder & Managing Partner
For personal use only David Kirk Co-Founder & Managing Partner 2
Slide 3: The Bailador Board
The Bailador Board David Kirk, Executive Chairman Andrew Bullock, Non-Executive Director • Appointed 2014 • Appointed 2014 For personal use only • Re-election this AGM • Chair of Audit and Risk Committee • Re-elected October 2022 Paul Wilson, Executive Director Jolanta Masojada, Non-Executive Direct
Slide 4: Bailador provides investors with access to high-growth technology companies
For personal use only Bailador provides investors with access to high-growth expansion-stage technology companies at attractive valuations. 4
Slide 5: Bailador has outperformed the technology sector over the last three years
Bailador has outperformed the technology sector over the last three-year period Indexed 30-Sep-20 = 100 For personal use only BTI vs S&P ASX All-Technology Index (three years to Sep-23) 200 180 160 140 13.5% Shareholder Return1 BTI.ASX (12.3% pa outperformance) 120 12.4% Portfolio Return2 NTA/sh (11
Slide 6: 2023 Financial Year Summary
2023 Financial Year Summary ✓ The BTI portfolio ended FY23 in a strong position with combined portfolio revenue of $353m • 67% growth over last 12 months For personal use only ✓ FY23 dividend totalled 6.7 cents per share (fully franked) declared1, part of ongoing dividend commitment • Represents an
Slide 7: The Bailador portfolio ended FY23 in a strong position
The Bailador portfolio ended FY23 in a strong position June 2023 Current For personal use only 8 investments3 7 investments $353m Full cash realisation: portfolio company revenue1 67% portfolio company revenue growth2 Cash $52m 1.7x cost ~62% 62% IRR gross margin2 July 2023 ~84% recurring revenue2 N
Slide 8: NTA per share down $0.07 to $1.52
NTA per share down $0.07 to $1.52; Up $0.04 for the year after adding back dividends paid1 For personal use only NTA (post-tax) per share Bailador NTA Movements $1.80 $1.60 Fair Value Fair Value Third Party / Investment Movement ($m) Movement (%) M2M $1.40 InstantScripts ▲ $20.5m +65% Y $1.20 Rezdy
Slide 9: Bailador's private investments have performed strongly
Bailador’s private investments have performed strongly • Listed investments dominated by SiteMinder, impacted by year end market activity For personal use only BTI Portfolio valuation over FY23 $120m • SiteMinder represented 89% of BTI’s listed investment portfolio valuation at 30 June 2023 $110m •
Slide 10: All private company valuation increases priced by third party transactions
All private company valuation increases priced by third party transactions • Average valuation uplift of 31% from third party transactions Bailador FY23 Portfolio Valuation Movements For personal use only $60m $50m $40m $30m $20m $10m $0m = Third party valuation = Internal valuation 10
Slide 11: Summary Profit and Loss
Summary Profit and Loss For the year ended 30 June 2023 FY23 FY22 For personal use only $000 $000 Change in value of portfolio assets 13,114 70,667 FX gains 110 - Interest income 2,902 197 Total investment growth 16,126 70,864 1.75% management fee calculated on pre- tax NTA Management fee (4,353) (4
Slide 12: Bailador's commitment to ESG principles
Bailador’s commitment to ESG principles • Bailador is establishing, integrating and implementing a long-term sustainability framework and goals • Bailador is measuring, managing and mitigating carbon emissions we are directly responsible for For personal use only • In FY23, Bailador achieved the fol
Slide 13: Paul Wilson, Co-Founder & Managing Partner
For personal use only Paul Wilson Co-Founder & Managing Partner 13
Slide 14: Bailador profile
Bailador profile Bailador is an Expansion Capital Fund For personal use only Specialist in Invests in Portfolio of Information Technology Private Companies 8-12 Investments Actively managed by an Track record of Returns from Experienced Team Strong Performance & Capital Gains & Cash Realisations Cas
Slide 15: Summary
Summary For personal use only Bailador has delivered solid returns and outperformed the market The portfolio is conservatively valued with strong performance and prospects Bailador is well positioned to make new investments Investors are currently able to access the BTI portfolio at an attractive pr
Slide 16: Bailador has delivered a 110% total cumulative return since 1 July 2020
Bailador has delivered a 110% total cumulative return since 1 July 2020 – through a combination of capital growth and fully-franked dividends1 For personal use only +110% Share price + Dividends2 + Franking credits +101% Share price + Dividends2 +79% Share price BTI BTI Outperformed Outperformed ASX
Slide 17: Ongoing fully franked cash dividend
Ongoing fully franked cash dividend For personal use only BTI Grossed Up Yield1 7.4% p.a. Bailador has committed to paying a Sustainable long term dividend of 4% of NTA (pre-tax) p.a. → Current franking credits support over → Paid half yearly six years of dividend at current rate → Fully franked → C
Slide 18: Portfolio valuation has remained conservative against the market
Bailador’s portfolio valuation has remained conservative against the market over time BTI Portfolio Weighted Revenue Multiple vs. Software Equity Group (SEG) US SaaS Index For personal use only 20x 16x 12x 8x 4.7x 4x 4.2x 3.9x 0x Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20
Slide 19: Strong performance and prospects across the Bailador portfolio
Strong performance and prospects across the Bailador portfolio Portfolio Sector Investment Sector Sector thematics Operational milestones weighting1 growth For personal use only • Delivered strong FY23 performance with ARR up 33.5% YoY to ✓ Large addressable market ~1m hotels $173.1m worldwide • Tra
Slide 20: Strong performance and prospects across the Bailador portfolio (cont.)
Strong performance and prospects across the Bailador portfolio (cont.) Portfolio Sector Investment Sector Sector thematics Operational milestones weighting1 growth • Bailador invested $9.8m in Rosterfy, a high-growth ✓ Large market with over 2m charitable For personal use only volunteer management p
Slide 21: Bailador is well positioned to make new investments
Bailador is well positioned to make new investments For personal use only • Despite a rebound in the first half of CY23, Average technology multiples are 46% below average technology multiples remain 69% below their 5-year average1 their peak in February 2021 and are 46% below 20x 18.7x 18.4x their
Slide 22: Investors can access the BTI portfolio at an attractive price
Investors are currently able to access the BTI portfolio at an attractive price NTA/share at 30-September-23 For personal use only $1.70 (pre-tax) / $1.59 (post-tax) $1.80 $1.60 Investors currently get Net Cash exposure to $99m of cash $1.40 $0.68 •BTI share price = $1.26 at an implied cost of $35m
Slide 23: Bailador provides investors with access to high-growth technology companies
For personal use only Bailador provides investors with access to high-growth expansion-stage technology companies at attractive valuations. Investors get access through an ASX traded share [ASX:BTI] with liquidity available at any time. 23
Slide 24: Disclaimer
Disclaimer For personal use only This presentation is confidential and may not be reproduced in whole or in part, or distributed except by Bailador Technology Investment Ltd (“Bailador”) or by authorised representatives of Bailador (“Affiliates”). This presentation does not contain a complete descri
Slide 25: Further information
This report was authorised for release to the ASX by Helen Foley, Company Secretary & Chief Financial Officer, on 2 November 2023. For personal use only FURTHER INFORMATION Website: www.bailador.com.au Investor Enquiries: investorservices@bailador.com.au Telephone: +61 2 9223 2344 Bailador Technolog
Slide 26: Chairman's Presentation Speech
Chairman’s Presentation Speech SLIDE 4 – Bailador provides investors with exposure to… I will now say a few words about performance in 2023 First a reminder of what we do. Bailador invests in a portfolio of established information technology companies that are growing strongly and scaling into inter
Slide 27: Chairman's speech (continued)
We continued to hold a strong level of cash. As private company valuations have returned to more sustainable levels, we expect to deploy that cash over the next twelve months and this has commenced with our investment in Rosterfy in April this year. Shareholders will no doubt be aware that a high ca
Slide 28: Chairman's speech (continued)
SLIDE 10 – All company valuation increases priced by third party transactions This slide sets out the valuation movements of private portfolio companies in 2023. Bailador’s private company portfolio increased by $59m throughout FY23. We completed follow-on investments in the portfolio of $23m and in
Slide 29: Chairman's speech: carbon emissions offset
The Manager is pleased to report to BTI shareholders they have fully offset their carbon emissions. We continue to benchmark to key environmental, sustainability and governance standards and have provided details in our annual report. For personal use only
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