Interim Results Presentation H1 2018 0
Oakley Oa kley Capital Capital Inves Investm tmen ents ts – Six Six Months o Months of Pr f Progre ogress ss 1 2 3 Growing shareholder NAV discount gap Portfolio performance closing returns £ £1.95 14% (1) (2) Share price Total shareholder return £2.59p 6% (2) NAV per share NAV per share growth £ £ 29% 2.25p Half-Year Dividend Discount Note: (1) As at 31 August 2018 (2) From December 2017 1
Oakley Oa kley Capital Capital Fun Funds ds Succ Succes essful sful ex exit its s dri drive return ve returns £ £102m £62m Realisations Acquisitions Parship Elite Career Partner Group Verivox Facile (re-investment) Facile North Sails (follow on investment) 2
Strong Strong Sha Share re an and d NAV NAV Pe Perf rforman ormance ce 5 5 ye year ar NAV NAV per per sha share re CAGR CAGR of 17% f 17% 1 year 5 years 10 years OCI OCI NA NAV pe V per r share are gro growth wth 12% 33% 160% OCI share OCI share price price gro growth wth 7% 22% 82% OCI NAV & NAV per Share 2 600 1.8 500 1.6 1.4 400 1.2 £m £ 1 300 0.8 200 0.6 0.4 100 0.2 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 NAV £m NAV per share 3
Fund Fun d Inves Investm tmen ent t Dr Drives Pe ives Perf rformance ormance £530m NAV by investment type (1) £148m Cash/Other 72p per share Assets & Liabilities £250m Oakley Fund 28% Investment 122p per share 47% 40% IRR Co-Investment Debt Equity Co-Investment 25% £71m £61m 35p per share 30p per share 11% IRR (2%) IRR € £ $ 60% 25% 15% Note: (1) As at 30 June 2018 4
Fund Investment A A Balan Balanced Portfolio ced Portfolio Acr Acros oss Thr s Three ee Dist Distinct inct Secto Sectors rs NAV NAV by by comp compan any TechInsights Damovo £18.3m £15.4m Time Out Plesk TMT £55.0m £15.7m CONSUMER Daisy £16.3m Debt: £29.4m North Sails AMOS £37.9m £11.1m Debt: £32.7m Career Partner Group £30.5m Casa & atHome EDUCATION £41.1m Schülerhilfe £34.8m Facile Inspired £28.9m £55.9m Note: As at 30 June 2018 5
Fund Investment High High Growth, Growth, Co Conser nservativ vative e Debt, Debt, Modest Modest Valu Valuations ations Portfoli Portf lio an analysis alysis Portfolio Company EBITDA growth Portfolio Company Net Portfolio Company EV / EBITDA (1) vs prior year Debt/EBITDA (1) 5 5 5 4 4 4 No. of Companies No. of Companies No. of Companies 3 3 3 2 2 2 1 1 1 0 0 0 < 10x 10x - 12x >12x <10% 10 - 30% >30% Net cash < 3x 3x - 5x 5x -7x 29% 11.6x 3.9x Avg 2018 year on year Avg 2018 Net Debt/EBITDA Avg June Valuation Multiple EBITDA Growth Note: (1) Multiple analysis based on EV, Net Debt and EBITDA as at 30 June 2018 valuations. Analysis Excludes Time Out Group plc. 6
Co-Investment Co-Inv Co Inves estm tment ent Equit Equity St Strat rategy/ egy/Policy Policy Where attractive to do so OCI takes direct equity stakes in portfolio companies when an Oakley fund can no longer make follow on investment (e.g. Time Out). The board will also consider directly holding stakes that are currently held via a fund when an Oakley fund has to sell at the end of its life (e.g. Inspired). Proce Pr ocess ss The Oakley investment committee submits written co-investment proposals to the OCI board for their consideration and approval. Curre rrent t In Investm vestmen ents ts (1) 1) £ Recipient Amount Time Out £28.6m £32.1m Inspired June 2018 £60.7m Note: (1) As at 30 June 2018 7 7
Co-Investment Co Co-Inv Inves estm tment ent Debt Debt St Strat rategy/ egy/Policy Policy If OCI has appropriate cash levels, it will consider providing debt instruments to the portfolio companies if the returns are appropriate. Proc roces ess The rate will be that which the portfolio companies would be paying an institution if OCI wasn’t providing the instrument. Curre rrent t In Investm vestmen ents ts (1) 1) £ Recipient Amount Interest Maturity Daisy £29.5m 5% 31 May 2019 North Sails £32.8m 10-12% 30 November 2018 Fund Facilities £8.9m 6.5% Sub 1 yr, revolving facility June 2018 £71.2m Note: (1) As at 30 June 2018 8
Cash / Other Assets & Liabilities Me Meeting eting Commit Commitmen ments ts & M & Max aximising imising Fu Futur ture Poten e Potential tial Conservative cover, but avoiding excessive drag £150m £150m £163m £163m Cash at 30 June 2018 post Outstanding commitment to disposals and refinancings funds Net Cash as % NAV 120% 97% 100% 80% 56% £m 60% 33% 40% 32% 28% 26% 24% 24% 22% 22% 16% 20% 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9
Balance Bala nced d Ma Matur turity ity Pr Profile ofile 3.5 years average investment holding period £200.0m £ 180m £ 172m £180.0m AMOS £11.1m Plesk £15.7m £160.0m Inspired £18.3m £55.9m TechInsights £140.0m £28.9m £120.0m Facile £100.0m £45.8m Daisy £30.5m CPG £80.0m £ 55m £60.0m Schülerhilfe £34.8m £40.0m £70.7m North Sails Time Out £55.0m £20.0m £41.1m Casa & atHome £0.0m <2 years 2-4 years 4+ years Holding Period Note: As at 30 June 2018 10 * Updated for post period disposal (Damovo completed in August 2018)
2018 Disposals D 2018 Disposals Drive Re rive Retur turns ns Realisations YTD deliver £102m of OCI proceeds & added 14p to NAV • • • Organic growth & Structural growth drove Underlying structural synergistic acquisition market leader growth & revenue diversification • • 3x increase in EBITDA 4x increase in Revenue • 3x increase in EBITDA • 4.7x MM, 118% IRR (1) • 2.5x MM, 44% IRR (1) • 3.7x MM, 51% IRR (1) Premium to Fair Value Premium to Fair Value Premium to Fair Value +21% +38% +56% Note: (1) Gross returns to Oakley Fund II 11
Oakley Oakley Capital Pri Capital Private Equity vate Equity
An An Es Established Mid tablished Mid-Cap Cap Inves Investo tor r Wit With h Su Super perior ior Retur Returns ns In Intro troduc ducing ing Oakl Oakley ey Capital Capital Mi Mid d Cap I Cap Investor vestor Se Sect ctor or Exper Expertise tise St Stron rong g Pe Perform rforman ance ce 40% €1.6bn Gross IRR Consumer Digital Funds under management 6 of 7 €60m - €300m TMT Target size Enterprise Value % Fund III deals sourced or diligenced by Oakley Network Western European Focus Education 13
Consist Consisten ent t Stron Strong P g Per erfor forman mance ce since since Fu Fund nd I MM & IRR Exited Deals Fund I Fund II 140% Parship Elite Group 120% Emesa 100% Daisy plc 80% Verivox I 60% Facile.it Gross IRR Intergenia II Host Europe Damovo HEG Verivox II 40% Educas Target 30% IRR Intergenia I 20% Headland Media Target 2.5x MM - Monument >10.0x - 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x (20%) Broadstone (40%) Gross MM 14 14
Su Super perior ior Retur Returns ns Based Based On On A A Vir Virtuous tuous Inves Investm tmen ent t Circle Circle Built Around Oakley’s DNA ... Growing rowing fa famil ily y of of Oakley Oakley en entr trep epre reneurs rs & & man anage agers rs 1 Except Exc eptional onal Propri Pr opriet etary ary 5 2 re retu turn rns s ac across ross sourc sourcing g ch chan annel els s Oak Oakley ley fu funds ds and an d ca capabi pabili lities ties Entrepreneurial heritage & culture Deep De ep sec sector tor & & 3 De De-risk risking g 4 geographic geographic com complex plex expertise exper tise in deals deals Oakley Oak ley te team am an and d net etwork work 15 15
Va Value lue investing in investing in gr growt owth h sect sectors ors – com complex plex primar primary y dea deals ls acqu acquire ired d at at attractive attractive multiples multiples EV/EBITDA Multiples Fund I Fund II Fund III 16.0x 14.0x 16.0x 14.0x 14.0x 12.0x 12.0x 12.0x 10.0x 10.0x 10.0x 8.0x 8.0x 8.0x 6.0x 6.0x 6.0x 4.0x 4.0x 4.0x 2.0x 2.0x 2.0x 0.0x 0.0x 0.0x (1) (1,2) (3) (4) (4) Av. Entry Entry Sector Av. Exit Av. Entry Entry Sector Av. Exit Av. Entry Entry Sector Av. Exit Av. Av. Av. Note: Please note averages are simple arithmetic means across the data sets (1) Excludes Broadstone, as businesses loss making at point of acquisition (2) Entry 16 average excludes Daisy Group plc as it was a share deal (3) Excludes Broadstone and Monument as loss making on exit (4) Fund II & III Entry Average includes pro forma multiples
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