Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Shareholder Meeting (October 2020)
30 slides from Bailador Technology Investments's shareholder meeting presentation, Oct 27, 2020
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 27th October 2020 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: Bailador is backed by a strong, majority independent board
Bailador is backed by a strong, majority independent board For personal use only David Kirk, Executive Chairman Andrew Bullock, Non-Executive Director • Appointed 2014 • Appointed 2014 • Due for re-election (Resolution 3) • Re-elected October 2019 • Chair of Audit and Risk Committee Paul Wilson, Exe
Slide 4: Exposure to expansion-stage technology companies with global markets
For personal use only Bailador provides investors with exposure to expansion-stage technology companies with global addressable markets and a high growth trajectory Investors get access through an ASX traded share [ASX:BTI] 4
Slide 5: FY20 Financial Year End Update
FY20 Financial Year End Update For personal use only The Bailador portfolio had great momentum going into COVID and has performed strongly through it ⇢ Portfolio revenue growth rate to 30 June is 20% Two profitable cash realisations during the year Special fully-franked dividend paid of 2.5c p
Slide 6: Portfolio of established fast growth technology companies ended FY20 with enviable characteristics
Bailador’s portfolio of 10 established fast growth technology companies ended FY20 with enviable characteristics For personal use only $278m The portfolio has critical mass ⇢ Only three SaaS companies listed on the ASX have greater portfolio company revenue1 revenue than the combined Bailador portfo
Slide 7: Two partial cash realisations and first special fully-franked dividend paid in FY20
Two partial cash realisations and first special fully-franked dividend paid in FY20 For personal use only Cash $2.0m Cash $9.9m 2.1x cost 19.3x cost 25.0% IRR 50.5% IRR July 2019 January 2020 First Special Dividend ⇢ Announced February 2020 ⇢ 2.5cps, fully-franked ⇢ 2.3% yield ⇢ Strong take-up from
Slide 8: Portfolio valuations at June confirmed through Independent Expert Review
Portfolio valuations at 30 June confirmed through Independent Expert Review ⇢ $11.8m cash realised during FY20; net portfolio valuation flat (-1%) For personal use only Gross portfolio value progression $180m FY20 Valuation $160m Portfolio Company Movement ($m) $140m SiteMinder ▲ $19.6m $120m Instac
Slide 9: FY20 financial performance
FY20 financial performance For the year ended 30 June 2020 For personal use only FY19 FY20 $000 $000 Change in value of portfolio assets 32,038 (1,648) 1% net decrease to portfolio valuation Interest income 44 23 Total investment growth 32,082 (1,625) Management fee (2,507) (2,694) 1.75% management
Slide 10: Strong progress in FY21 year to date
Strong progress in FY21 year to date For personal use only Bailador NTA per share movements net of all fees $1.50 • 42% increase to valuation (Aug-20 NTA) $1.45 • Revaluation reflects the strong operating performance $1.40 over past 12 months $1.35 • Represents 6.0x cost and an effective IRR of 61.2
Slide 11: Paul Wilson, Co-Founder & Managing Partner
For personal use only Paul Wilson Co-Founder & Managing Partner 11
Slide 12: Technology sector returns continue to outperform the market
Technology sector returns continue to outperform the market For personal use only 300 250 Investors 200 increasingly recognise the 150 importance of technology in a 100 balanced portfolio 50 0 2015 2016 2017 2018 2019 2020 S&P 500 Information Technology (Sector) (TR) S&P 500 (TR) Source: Standard an
Slide 13: Bailador favours SaaS and Marketplace business models
Bailador favours Software-as-a-Service (SaaS) and Marketplace business models For personal use only SaaS Marketplace Data Digital 80% 12% 6% Retail 2% CHARACTERISTICS Predictable recurring Efficient scalability Measurable metrics Ability to address global revenue streams market opportunities Note: P
Slide 14: Global software revenue has exploded in the last years
Global software revenue has exploded in the last 20 years For personal use only SaaS is Global software industry revenue dominating software industry growth Source: Neeraj Agrawal & Logan Bartlett, Battery Ventures, Software May 2019. Note: Homegrown/Internal Software is estimated based on hours wor
Slide 15: The BTI portfolio is conservatively valued
The BTI portfolio is conservatively valued The BTI portfolio is 80% SaaS by value. Peer average It demonstrates For personal use only premium BTI Portfolio1 characteristics, and can be accessed at a Wisetech valuation allowing for material upside returns ASX Altium Listed2 Xero Australian Canva4 Pri
Slide 16: BTI's UK-based LIC comparables trade at an average 8% premium to NTA/share
BTI’s UK-based LIC comparables trade at an average 8% premium to NTA/share An 8% premium to NTA implies a BTI share price equal to $1.481, or 44% higher than last close2 For personal use only Premium/discount to NTA per share 50% 47% 7 of 10 companies trade at a premium to NTA/share 40% 38% 30% 20%
Slide 17: Bailador's five partial cash realisations have generated premium returns
Bailador’s five partial cash realisations have generated premium returns ⇢ Combined IRR of 42.3% For personal use only Cash $5.0m Cash $1.2m Cash $0.4m Cash $2.0m Cash $9.9m 7.2x cost 1.7x cost 2.8x cost 2.1x cost 19.3x cost 71.1% IRR 21.5% IRR 35.4% IRR 25.0% IRR 50.5% IRR December 2015 October 201
Slide 18: The majority of Bailador's portfolio companies are well advanced
The majority of Bailador’s portfolio companies are well advanced For personal use only REINVESTMENT 1 FRANKED DIVIDENDS 2 4 1 Early stage 2 Mid stage 3 Advanced stage 4 Cash realisation 3 Denotes partial cash realisation 18
Slide 19: Portfolio companies are well capitalised – no liquidity concerns
The Bailador portfolio companies are well capitalised – no liquidity concerns Portfolio company Valuation1 Cash Sustainability Prospects Valuation review For personal use only $82.5m ✓✓✓ ✓✓✓ Strategic position strengthened Review in Dec-20 $27.1m ✓✓✓ ✓✓✓ Very strong business performance 42% increase
Slide 20: Questions
For personal use only Questions investorservices@bailador.com.au 20
Slide 21: 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 22: Further Information
For personal use only FURTHER INFORMATION Website: www.bailador.com.au Investor Enquiries: investorservices@bailador.com.au Telephone: +61 2 9223 2344 Bailador Technology Investments Limited (ASX:BTI)
Slide 23: Chairman's Address
BAILADOR TECHNOLOGY INVESTMENTS LIMITED AGM – TUESDAY 27th OCTOBER 2020 CHAIRMAN’S ADDRESS For personal use only SLIDE 1 – Annual General Meeting Good Morning. Ladies and Gentlemen, I’m pleased to begin Bailador Technology Investment’s Annual General Meeting. SLIDE 2 – David Kirk My name is David Ki
Slide 24: For personal use only
bring a tremendous depth of relevant experience to the BTI board. I’d like to thank the board for their hard work this year. Also, online from Bailador today is Helen Plesek our CFO & Company Secretary who will be collating and reading out your questions today. For personal use only We also have San
Slide 25: For personal use only
SLIDE 6 – Bailador’s portfolio of 10 established fast growth technology companies ended FY20 with enviable characteristics The portfolio of 10 internet related businesses continues to perform with strong metrics. The portfolio companies have combined revenue of $278m and grew 20% For personal use on
Slide 26: For personal use only
announced a further 42% increase in Instaclustr in August this year after another strong year. Instaclustr is proving to be a star performer in the portfolio and we’re very happy with its performance. The gains in SiteMinder and Instaclustr were offset by write downs in Stackla and For personal use
Slide 27: For personal use only
SLIDE 11 – Paul Wilson I will now pass you over to Paul Wilson. Paul Wilson: For personal use only Thank you David. SLIDE 12 – Technology sector returns continue to outperform the market COVID has produced a lot of uncertainty, but one thing that is clear is that technology adoption is increasing. C
Slide 28: For personal use only
• It produces very actionable data to help determine where resources should be allocated, and how heavily to invest in certain areas of the business; and • SaaS is a business model that can address global markets from an Australian base, which has now been shown by numerous SaaS businesses. For pers
Slide 29: For personal use only
In the UK, there are at least 10 listed companies of this nature. You can see that they trade on an average 8% premium to NTA. Half of them trade at more than a 10% premium to NTA. Over time, as Bailador demonstrates the conservative nature of our NTA valuation, For personal use only we believe that
Slide 30: For personal use only
We are very pleased with the way the portfolio company management teams have performed through some exceptional times. For personal use only Page 8
Bailador Technology Investments — Shareholder Meeting (October 2020) on 6ix