Rand Capital Corporation · NASDAQ:RAND
Rand Capital — Investor Presentation (March 2025)
20 slides from Rand Capital's investor presentation, Mar 18, 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION March 18, 2025 Daniel P. Penberthy President & CEO © 025 Rand! Nasdaq: RAND
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited t
Slide 3: Nasdaq: RAND
Naspaq: RAND Externally-managed Business Development Company (BDC) Focused on debt and related equity investments in privately-held, lower middle market companies Investment objective is to generate current income and, when possible, complement with capital appreciation Market Capitalization $71.0 M
Slide 4: Transformation of Rand Capital
TRANSFORMATION OF RAND CAPITAL Externally-managed, dividend paying BDC that lends to lower middle market companies Internally-managed, venture capital-oriented BDC 1996-97 2001 2016 2019 2020 2021-22 2023-24 2025 New tected obea | cemeorsold | Closed s2sm | pad 1 g2/share | nated increased | sued 38
Slide 5: Portfolio Discipline
PORTFOLIO DISCIPLINE v Revenue >$10 million and EBITDA > $1.5 million ¥ Growth and later stage businesses Investment . . . v Sustainable, differentiated market-accepted product Criteria ¥ Skilled, motivated and invested management ¥ Broad industries generally with East, South or Midwest U.S. operati
Slide 6: 2024: A Year of Growth and Strategic Execution
2024: A YEAR OF GROWTH AND STRATEGIC EXECUTION (Results compared with the prior-year period unless otherwise noted) Strong Financial Performance + Full year investment income up 17% to $8.6 million, driven by five new debt instruments and fee income + Net Asset Value (NAV) per share increased 7% to
Slide 7: Delivering Cash Dividends
DELIVERING CASH DIVIDENDS (Results compared with the prior-year period unless otherwise noted) Realized capital gains enabled $5.03 per share of total dividends in 2024 (consisted $1.67/share in cash and a $3.36/share stock dividend) Outsized Q4 2024 dividend driven in part by the successful sale of
Slide 8: Evolving Portfolio Mix Centered on Debt Investments
EVOLVING PORTFOLIO MIX CENTERED ON DEBT INVESTMENTS Fair Value Portfolio Mix 6 in millions) «0 fai ; tn rations) Portfolio fair value decrease reflects the SciAps exit, stock sales, $7.1 $708 portfolio company loan repayments, and valuation adjustments in multiple portfolio companies, partially offs
Slide 9: Strategic Portfolio Optimization
STRATEGIC PORTFOLIO OPTIMIZATION 2024 Investments Qrrzers “FSS ELA sont cae tubncoon ste ce salon pce or ene sitard supply Porton iar emn ie Professional mobile V hydration and passive : safety systems company kitchens and new builds manufacturing and vitamin therapy service Sind maintenance product
Slide 10: Portfolio Spans a Broad Range of Industries
PORTFOLIO SPANS A BROAD RANGE OF INDUSTRIES December 31, 2024 December 31, 2023 Pubic oe Age Stocks 5% 6% Software 8% Professional Services 42% Professional Services, Manufacturing 48% 13% ‘Consumer Products 13% Manufacturing Consumer Products 22% 18% Based on total investments Based on total invest
Slide 11: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS (¢esseo ov ram vatue) Investments at Year % oF Total ny, — Company Fairvalue Acquired Industry Pofattal Investment Type Professional Services Cellular info systems, construction, Ray = (Bi tison Tilson Sus 2015 inf systems, construction, 168 aera Term note Seybert’s $7
Slide 12: Full Year Financial Summary
FULL YEAR FINANCIAL SUMMARY (5 in thousands, except per share data) 2024 2023 Total investmentincome $ 8,559 § 7,338 | Total investment income grew 17% + Reflects 29% increase in interest from portfolio Total expenses 4,837 4,178 ‘companies and 66% increase in fee income Net investment income" 3,425
Slide 13: 2024 Net Asset Value Change
2024 NET ASSET VALUE CHANGE in thousands) $11,125 3 $65,333 soosis $3425 (55,722) “ese ($4,310) ~ Net assets at Net investment income Net realized gain on Net change in Cash dividend Net assets at ~ 12/31/2023 sales and dispositions: unrealized 12/31/2024 $60,815,213 of investments, appreciation on
Slide 14: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At December 31, 2024 Total assets of $72.5 million was down 11%, largely Assets and Liabilities due to sale of SciAps Reduced bank debt balance $3.3 million during Q4 24 $0.32 $835,000 consolidated cash and $15.7 million during 2024 + $60
Slide 15: Executing Our Strategy for Long-Term Shareholder Value
EXECUTING OUR STRATEGY FOR LONG-TERM SHAREHOLDER VALUE Objectives for 2025 and Beyond Continued Growth & Income Expansion + Leveraging a resilient investment pipeline to scale income-generating assets + Focus on high-yield debt investments to enhance net interest income Disciplined Capital Deploymen
Slide 16: Investor Relations Contacts
Investor Relations Contacts: Craig Mychajluk 716-843-3832 cmychajluk@allianceadvisors.com Deborah Pawlowski 716-843-3908 dpawlowski@allianceadvisors.com
Slide 17: Supplemental Information
SUPPLEMENTAL INFORMATION Nasdaq: RAND
Slide 18: Adjusted Expenses
ADJUSTED EXPENSES on-caars Year ended Year ended December 31,2024 December 31, 2023 Total expenses $ 4,837,282 S 4,178,319 Exclude (credits)/expenses for capital gains incentive fees 1,012,300 804,700 Adjusted total expenses $3,824,982 S$ 3,373,619 “in addition to reporting total expenses, which isa
Slide 19: Adjusted Net Investment Income per Share
ADJUSTED NET INVESTMENT INCOME PER SHARE «voxcasr» Year ended Year ended December 31,2024 December 31, 2023 Net investment income per share S133 S115 Exclude (credits)/expenses for capital gains incentive fees per share 0.39 0.31 S17 S146 Adjusted net investment income per share "tn adltion to repor
Slide 20: Disclosures
DISCLOSURES ‘Tesco Ran Capt Carpeatn Rano he "B00 has ean oped seg ce byte SDS wth ov Rand Cpt Magan LC CREM, gre eset “This presen hasbeen povided to you solely onan pupotes and doe ol conse an eo sokean of nofer r ay adie or recommendation to purchase any secu or tar faci ‘Setar ana mayne constued