24 slides from Epe Capital Partners Ltd. Class A's earnings presentation, September 2024
Slide 1: Ethos Capital September 2024
ETHOS CAPITAL SEPTEMBER 2024
Slide 2: Important Information
IMPORTANT INFORMATION This presentation is intended only for the person to whom it has been delivered to and is for informational purposes only. This presentation does not constitute an offer to sell, is not an offer or a solicitation of an offer in respect of securities and should not be construed
Slide 3: Executive Summary
Executive Summary Performance overview Investments, Realisations and Liquidity • Actual EBITDA of the unlisted Portfolio Companies grew by 18% as almost all • Total share of realised proceeds from the unlisted portfolio received of c.R1.0bn Portfolio Companies performed strongly YoY since listing at
Slide 4: Performance Update
PERFORMANCE UPDATE © Ethos | 4
Slide 5: The Ethos Capital Journey
The Ethos Capital Journey Deleverage or NAV performance (per annum; gross IRR pre-expenses) Return capital to shareholders 1 Year 3 Year 5 Year1 Commitment Phase Funds & Co-investments 3.6% 13.4% 7.2% (No new commitments) x Brait investments (54.4%) (21.8%) (31.0%) Capital Investment Investment allo
Slide 6: Ethos Capital NAV Analysis
INVESTMENT PHASE and ASSET GROWTH Ethos Capital NAV Analysis Audited Changes FY 2024 Audited 30 June 2023 R’000 30 June 2024 R’000 Revaluation Invested Realised R’000 INVESTMENT PORTFOLIO 2,688 99.3% (254) 9 (134) 2,309 99.2% Brait ordinary shares 416 15.4% (302) - 114 4.9% Brait exchangeable bonds
Slide 7: Performance Overview
INVESTMENT PHASE and ASSET GROWTH Performance Overview The total investment portfolio (like-for-like pre distributions) achieved a -9% return over the year, with a +4% return achieved by the unlisted portfolio • The positive returns were driven by higher offer prices for Synerlytic and Adumo and und
Slide 8: LTM Revenue and EBITDA growth and Valuation multiples
INVESTMENT PHASE and ASSET GROWTH LTM Revenue and EBITDA growth and Valuation multiples (earnings / revenue based unlisted portfolio) Revenue growth % range (+12% average) EBITDA growth % range (+18% average) 753 753 248 265 249 246 188 170 5 1 2 4 1 4 5 2 <0% 0% to < 10% 10% to < 20% 20% and greate
Slide 9: Ethos Capital NAV analysis
INVESTMENT PHASE and ASSET GROWTH Ethos Capital NAV analysis Breakdown at June 2024 11% TOP 5 ASSETS 12 ASSETS 24% 65% R9.09/sh 19 R8.05/sh 151 2,309 114 (544) R7.03/sh 2,044 520 1,784 R1.04/sh (Brait ords R0.45) 157 170 R4.21 share price 173 271 753 0 Optasia Synerlytic Vertice CrossFin Gammatek Ot
Slide 10: Ethos Capital exit track record
REALISATIONS Ethos Capital exit track record CUMULATIVE PROCEEDS MULTIPLE OF INVESTED CAPITAL (MOIC) (FULL OR SIGNIFICANT PARTIAL EXIT EVENTS) AS % OF COST 3.2x 3.0x 1.8x 1.8x 1.9x 1.8x 1.6x 1.7x 1.7x ETHOS 1.3x 1.4x 1.3x 1.3x 1.4x 1.4x 47% CAPITAL 1.0x ASSETS 1 EXIT ANALYSIS 0.1x Kevro Eaton Optasi
Slide 11: Post y/e adjusted Ethos Capital NAV and net debt
CAPITAL ALLOCATION Post y/e adjusted Ethos Capital NAV and net debt Breakdown of post June 2024 transactions, to date (114) (43) 2,195 525 (R0.45)/sh (271) R7.03/sh (202) R6.61/sh At 30 June 2024 value 1,679 2,309 R4.69 share price 1,881 1,784 0 NAV Net debt Total assets Brait unbundle Brait EB Syne
Slide 12: Leverage and Return of Capital Considerations
CAPITAL ALLOCATION Leverage and Return of Capital Considerations 1. Leverage - ensure debt levels with sufficient 2. Evaluate most optimal and efficient mechanism for covenant headroom returning capital to shareholders Total Assets R2.309m Alternatives Considerations TA / Debt cover 4.4x ‒ NAVPS Unb
Slide 13: Brait Ordinary Share Unbundling - impact analysis and considerations
CAPITAL ALLOCATION Brait Ordinary Share Unbundling - impact analysis and considerations 47% to NAV discount 29% to NAV discount 6.58 Impact 0.68 Brait 52% value EB (excl. debt) ‒ NAVPS uplift 0.23 0.71 ‒ Share price impact 7.03 ‒ Significant value distribution 5.90 Non Brait 5.63 assets ‒ Narrowed d
Slide 14: Portfolio Overview
PORTFOLIO OVERVIEW © Ethos | 14
Slide 15: Optasia R753m
Optasia is a global fintech company that partners with MNOs, mobile wallet operators and financial institutions in Optasia order to enable them to provide financial access to end customers through an AI-led credit assessment engine. % O F T O T A L A S S E T S Ethos ownership: Ethos Capital economic
Slide 16: Optasia: Ongoing Geographic, Product and Customer Diversification
Optasia: Ongoing Geographic, Product and Customer Diversification 18 countries in Africa 9 Countries in Middle East 6 countries in Asia 3 countries in Europe 1 country in LatAm 2019 REVENUE SPLIT YTD JUNE 2024 REVENUE SPLIT ACS ACS Country 1 98.8% 68.5% (23.4%) Country 1 (49.9%) MFS MFS Country 2 1.
Slide 17: Synerlytic exit
Synerlytic exit In 2019, the Mid Market Fund completed the acquisition of Synerlytic Group Holdings, a leading condition monitoring specialists and international manufacturer and supplier of matrix-matched Certified Reference Materials MOIC 3.2x Attractive business characteristics • Strong moat, hig
Slide 18: Vertice R173m
Vertice is a South African based medical technology company with a continent-wide footprint that provides Vertice turnkey medical solutions across several healthcare sectors. % O F T O T A L A S S E T S Ethos ownership: Ethos Capital economic interest: Ethos Capital Value: 7% R173m 88.2% 17.6% (EF V
Slide 19: Crossfin R170m
Crossfin invests in high growth, established, cash generative Fintech solutions to enable growth for companies in Crossfin Africa & beyond. % O F T O T A L A S S E T S Ethos ownership: Ethos Capital economic interest: Ethos Capital Value: 7% R170m 33.4% 11.8% (EMMF I & TRG AAiF I) (Direct & Indirect
Slide 20: Gammatek R157m
Gammatek is a leading distributor of mobile accessories and low-technology products with 50% market share in Gammatek its targeted categories. % O F T O T A L A S S E T S Ethos ownership: Ethos Capital economic interest: Ethos Capital Value: 7% R157m 51.3% 19.9% (EMMF I) (Direct & Indirect) FINANCIA
Slide 21: Conclusion
Conclusion DRIVE NAV GROWTH TOTAL REALISED VALUE CAPITAL ALLOCATION Strategy • No new investments in funds • Increase underlying NAV in the • Drive exits in the portfolio portfolio • Reduce debt to facilitate shareholder • Reduce debt returns • Return capital to shareholders 16 Portfolio Companies U
Slide 22: Annexure
ANNEXURE © Ethos | 22
Slide 23: Echo R110m
Echo is a corporate Internet Service Provider (“ISP”), providing information and Communications Technology Echo services through an aggregation of third-party networks. % O F T O T A L A S S E T S Ethos ownership: Ethos Capital economic interest: 5% Ethos Capital Value: R110m 72.9% 36.4% (EMMF I & T
Slide 24: Primedia R92m
Primedia Primedia is a diversified media platform, operating across broadcasting, Out of Home (“OOH”) & Content and Digital. % O F T O T A L A S S E T S Ethos ownership: Ethos Capital economic interest: 4% Ethos Capital Value: R92m 24.2% 4.7% (Fund VI & Co-invest) (Direct & Indirect) Primedia Broadc