Bailador Technology Investments Ltd · ASX:BTI
Bailador Technology Investments — Shareholder Meeting (October 2018)
31 slides from Bailador Technology Investments's shareholder meeting presentation, Oct 23, 2018
Slide 1: Annual General Meeting
Annual General Meeting 23 October 2018 Bailador Technology Investments Limited (ASX:BTI)
Slide 2: David Kirk, Co-Founder & Managing Partner
David Kirk Co-Founder & Managing Partner 2
Slide 3: Bailador provides exposure to expansion-stage technology companies
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 (BTI:ASX) 3
Slide 4: Overall portfolio value grew moderately for the 2018 year
Overall portfolio value grew moderately for the 2018 year Valuation uplifts for five investments due to strong performance were held back by a write down of one investment 2018 Revaluations $m % SiteMinder 15.4 38% Continues to grow quality customer base with over 30,000 customers worldwide Straker1
Slide 5: Financial Performance
Financial Performance For the year ended 30 June 2018 30 June 2018 $000 Change in value of portfolio assets 8,384 5 investments marked up 1 investment marked down Interest income 115 Total investment growth 8,499 Management fee 2,285 Independent valuations 111 Continued investment in independent val
Slide 6: Change in Net Tangible Assets
Change in Net Tangible Assets Additional Valuation Net 30 June 2017 30 June 2018 $m Investment Movement Movement SiteMinder 40.5 - 15.4 55.9 15.4 Stackla 12.6 - - 12.6 - Straker 8.7 - 2.5 11.2 2.5 Lendi 7.2 - 2.3 9.5 2.3 Instaclustr 4.5 - 4.8 9.3 4.8 DocsCorp 7.5 - 1.7 9.2 1.7 SMI 7.4 - - 7.4 - Vios
Slide 7: Portfolio of established, fast growth technology companies
Bailador has a portfolio of established, fast growth technology companies 10 investments $189m 32% 83% recurring revenue2 portfolio company portfolio company revenue1 revenue growth2 1 Revenue for the year ended 30 June 2018 for the underlying companies in the BTI por?olio. 2Based on revenue for the
Slide 8: Valuation
ASX listed SaaS companies with comparable growth rates to BTI indicate tremendous valuation upside Bailador has a high growth por/olio dominated by SaaS business models 30x PREMIUM GROWTH SAAS VALUATION QUADRANT 25x 20x WEIGHTED AVERAGE Valuation 15x 10x 5x 0x 0% 10% 20% 30% 40% 50% 60% Growth Note:
Slide 9: Clear short and medium term value drivers
Bailador has clear short and medium term value drivers ACTIONS IMPACT We expect to see further valuaDon upliHs across a Targeting a near term reduction in the discount to ✔ number of porAolio companies in FY19 ✔ NTA (upside of 15%+) We anDcipate that there will be cash realisaDons RealisaDons above
Slide 10: Paul Wilson, Co-Founder & Managing Partner
Paul Wilson Co-Founder & Managing Partner 10
Slide 11: Technology is transforming every industry
Technology is transforming every industry There are winners and losers from this structural shi3, crea5ng investment opportuni5es Technology sector returns con6nue to outperform the market 300 250 200 150 100 50 0 2013 2014 2015 2016 2017 2018 S&P 500 (TR) S&P 500 Information Technology (Sector) (TR
Slide 12: The ASX provides limited opportunity for technology exposure
The ASX provides limited opportunity for technology exposure Investors increasingly recognise the importance of technology in a balanced portfolio Sector Share of S&P 500 Index Share of ASX Information Technology 25% 3% Financials 15% Healthcare 14% Consumer DiscreGonary 13% Industrials 10% Access t
Slide 13: How do Australian investors get exposure to high growth technology?
So how do Australian investors get exposure to high growth technology companies at a reasonable valua9on? 13
Slide 14: Disciplined approach to investing in high growth technology
Bailador has a disciplined approach to investing in high growth technology Technology Focus Expansion Stage Active Value Add • Specialist informaGon • Private companies • Board involvement technology focus • $5m-$50m revenue • Global industry contacts • ExperGse in assessing SaaS and marketplace bus
Slide 15: Expansion Stage provides the most attractive risk/reward balance
The Expansion Stage provides the most attractive risk/reward balance for investors Less upside GROWTH Higher risk EARLY STAGE EXPANSION STAGE MATURITY TIME Expansion Stage businesses are lower risk than startups, but can be accessed at a realistic valuation before they are public 15
Slide 16: Access to quality expansion stage technology companies before they are public
Bailador provides access to quality expansion stage technology companies at attractive valuations before they are public 16
Slide 17: Effective business model that generates premium returns
Bailador has an effec/ve business model that generates premium returns INVESTING GROWING REALISING • Review hundreds of • Add A-Grade managers to work • Prepare businesses for IPO opportunities per year with founders • Maximise interest from multiple • Deep diligence on those of • Drive disciplined g
Slide 18: Portfolio companies are addressing huge global markets
Bailador’s portfolio companies are addressing huge global markets Each has the characteristics to become an extremely large company in its own right, so the upside potential is significant 65% of rev e gene nue is rated mark ets o in of Au utside strali a 27% 30% 8% 35% 1 Based on revenue for the ye
Slide 19: Favours SaaS and Marketplace business models
Bailador favours So.ware-as-a-Service (SaaS) and Marketplace business models SaaS Marketplace Data Digital 77% 15% 6% Retail 2% CHARACTERISTICS Predictable recurring revenue Efficient scalability Measurable metrics Ability to address global streams market opportunities 19
Slide 20: The SaaS model enables global reach from anywhere
The SaaS model enables global reach from anywhere in the world SaaS Characteristics Aus/NZ SaaS Examples Market cap Revenue • Build one software platform (2018) multiple • Sell it thousands of times on subscription model • Recurring monthly or annual licence revenue USD$20.4bn 22.3x • High gross mar
Slide 21: SiteMinder: SaaS business dominating travel technology
is a SaaS business that dominates in travel technology SiteM in repre der s 40% o ents SiteMinder is the leading hotel technology platform for channel management and distribution solutions fB portf TI’s olio BTI CARRYING VALUE Business Features What Excites Us $60.9m • US$21bn+ transaction value per
Slide 22: The online Marketplace model allows global reach
The online Marketplace model allows global reach and scales very efficiently Marketplace Characteristics Aus/NZ Marketplace Examples • Ability to achieve rapid scale, with thousands of suppliers Market cap Revenue and thousands of customers (2018) multiple * $2.0bn 8.1x • Location agnostic – has the
Slide 23: Straker Translations: world-leading technology and massive market
has world-leading technology and a massive addressable market ASX Straker Translations is a leading global provider of cloud-enabled translation services, using superior technology and data IPO BTI CARRYING VALUE Business Features What Excites Us $12.4m • Intelligent use of Machine Translation • Use
Slide 24: Instaclustr is a break-out success in the BTI portfolio
is a break-out success in the BTI portfolio Reve more ue n triple than Instaclustr is a world-leading open source technology platform servicing the multi-billion dollar global database market d inves since tmen t BTI CARRYING VALUE Business Features What Excites Us $14.6m • Highly sought after techn
Slide 25: Continues to generate value growth across the portfolio
Bailador continues to generate value growth across the portfolio NTA 30 September 2018 Current NTA Third party Portfolio company Gains valuation per share transaction 55.9 0.47 ▲ 305% 14.6 0.12 ✓ ▲ 225% 12.6 0.10 ✓ ▲ 13% 12.4 0.10 ✓ ▲ 65% October IPO 9.5 0.08 ✓ ▲ 73% 9.2 0.08 ▲ 83% 7.4 0.06 ► 0% The
Slide 26: Conservatively values its portfolio, validated by third party transactions
Bailador conservatively values its portfolio, validated by third party transactions t ge uplif a 8% aver 8 Cost 1 Third party transaction value There have been 14 third party transactions in 7 BTI portfolio companies. All have been at or above BTI’s prior carrying value 1 Cost is the investment cost
Slide 27: Clear short and medium term value drivers
Bailador has clear short and medium term value drivers ACTIONS IMPACT We expect to see further valuaEon upliIs across a Targeting a near term reduction in the discount to ✔ number of porBolio companies in FY19 ✔ NTA (upside of 15%+) We anEcipate that there will be cash realisaEons RealisaEons above
Slide 28: Portfolio Company Details
Portfolio Company Details Name: Type: SaaS/B2B DBaaS/B2B SaaS/B2B/UGC Marketplace/Machine Learning Fintech World leader in hotel channel Leading tech platform for Cloud-based translation services Open source data platform for Australia’s #1 home loan management and distribution brands to leverage Us
Slide 29: Bailador provides investors with exposure to expansion-stage technology companies
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 (BTI:ASX) 29
Slide 30: Disclaimer
Disclaimer 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 authorized representatives of Bailador (“Affiliates”). This presentation does not contain a complete description of the transacti
Slide 31: Further Information
FURTHER INFORMATION Website: www.bailador.com.au Investor Enquiries: investorservices@bailador.com.au Telephone: +61 2 9223 2344 Bailador Technology Investments Limited (ASX:BTI)
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