RESULTS PRESENTATION FY2018 0
Contents 1 1 Key Financial Highlights P 2-3 2 Portfolio Performance P 4-13 Net Asset Value progression ▪ Realisations ▪ Investments ▪ Oakley Fund commitments ▪ Fund investment ▪ Co-investment ▪ Cash / other assets and liabilities ▪ Portfolio analysis ▪ Outlook ▪ 3 Oakley Capital Private Equity P 14-28 4 Appendices P 29-42 OAKLEY CAPITAL INVESTMENTS
Oakley Capital Investments – continued strong performance 2 Performance year ending 31 December 2018 281p 16% NAV per share Total NAV return £130m £110m Realisations Investments 4.5p 36% Full-year dividend Exit premium to book value OAKLEY CAPITAL INVESTMENTS
Strong returns track record 3 10 year total NAV return of 172% 1 Year 3 Years 10 Years OCI total NAV return 16% 47% 172% NAV per share, dividend and share price 3.00 2.50 2.00 £ 1.50 1.00 0.50 0.00 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 NAV per share Dividend Share Price OAKLEY CAPITAL INVESTMENTS
Portfolio performance & successful exits grow NAV 4 15% NAV per share increase 1p 4.5p 14p 281p 2p 29p 245p FY17 Fund Realisations Co-investment Dividend Fees FY18 revaluations revaluations OAKLEY CAPITAL INVESTMENTS
2018 activity – realisations 5 Investment Gross OCI Realisations Uplift on book value strategy returns Proceeds Organic growth & 4.7x MM £35.6m 60.0 synergistic acquisition 118% IRR 56% Structural growth drove 2.5x MM £15.1m 50.0 market leader 44% IRR Underlying structural 3.7x MM £51.5m 40.0 21% growth & revenue 51% IRR diversification 30.0 Organic growth driven by 5.4x MM £12.6m £m strategic acquisitions 56% IRR 18% 20.0 38% OCI Re-financings Strategy Distributions Proceeds 10.0 Extension of existing facility €28.9m £10.5m to Fund III 0.0 Upsized facility provided by €12.7m £4.6m Parship Verivox Facile Damovo existing lenders to Fund III Fair Value (1) OCI proceeds OAKLEY CAPITAL INVESTMENTS (1) As at 31 December 2017
2018 activity - investments 6 OCI Investments Business description investment Leading provider of private university groups in Germany £30.7m Italy’s leading online price comparison platform £29.4m OCI additional Follow on investments Acquisition Description investment cPanel Acquired to join Plesk, the group now £14.6m encompassing two webhosting automation software platforms Centre Européen de Management First acquisition in pursuing the buy & build £3.2m Hotelier International ("CMH") strategy in the French tertiary education sector Colegio San Patricio Comprises of 42 schools, educating over £4.9m 31,000 students globally Doyle Palma Acquired sails operation and funding for North £3.9m Sails Apparel and M&A OAKLEY CAPITAL INVESTMENTS
Oakley Fund commitment drives NAV growth 7 £575m NAV by investment type Oakley Fund investment £299m 146p per share Cash/other assets & liabilities 25% IRR 18% Oakley Fund Debt Equity Co-investment Investment £107m £64m Co-investment 52% 52p per share 31p per share 30% 11% IRR (1)% IRR Cash/other assets & liabilities £105m 51p per share OAKLEY CAPITAL INVESTMENTS
Fund Investment A balanced portfolio across three distinct sectors 8 NAV by company AMOS £15.1m Schülerhilfe North Sails EDUCATION £39.7m £39.4m Debt: £40.6m Career Partner Group CONSUMER £45.6m Time Out £42.7m Debt: £20.9m Inspired £72.9m Casa & atHome £41.8m TechInsights £13.4m Facile Daisy £29.4m TMT £15.2m WebPros Debt: £14.9m (Plesk + cPanel) £71.5m OAKLEY CAPITAL INVESTMENTS
Fund Investment High growth, conservative debt, modest valuations 9 Portfolio analysis Portfolio Company Portfolio Company Portfolio Company Net debt/EBITDA (1) EV/EBITDA (1) EBITDA growth vs prior year 8 5 6 59% 52% 7 41% 39% 5 4 6 45% No. of Companies 4 No. of Companies No. of Companies 5 3 41% 4 3 2 3 2 3% 17% 2 3% (2) 0% 1 1 1 0 0 0 <10% 10 - 30% >30% Net cash < 3x 3x - 5x 5x - 7x < 10x 10x - 12x >12x 39% 3.8x 12.6x Avg 2018 FY EBITDA Growth Avg 2018 Net Debt/EBITDA Avg Dec 2018 Valuation Multiple (1) Multiple analysis based on EV, Net Debt and EBITDA as at 31 Dec 2018 valuations. Analysis excludes Time Out Group plc. OAKLEY CAPITAL INVESTMENTS (2) Percentage of Fund portfolio company value
Co-investment Co-investment 10 Equity Debt Where attractive to do so, OCI takes direct equity stakes in If OCI has appropriate cash levels, it will consider providing debt portfolio companies when an Oakley Fund can no longer make instruments to the portfolio companies if the returns are appropriate. 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). 31 Dec 2017 31 Dec 2018 Interest Maturity Fair Value Fair Value Co-Investments : £m £m 31 Dec 2017 31 Dec 2018 Debt Securities Fair Value Fair Value Co-Investments: £m £m Daisy 28.2 14.9 6.5% May 2019 Equity Securities North Sails 27.8 40.6 7.5% Dec 2020 Time Out 41.2 22.3 Fund Facilities 13.5 30.6 6.5% 1yr after issue Inspired 26.2 41.8 Time Out - 20.9 12% Oct 2020 Total 67.4 64.1 Total 69.5 107.0 OAKLEY CAPITAL INVESTMENTS
Cash / other assets & liabilities Meeting commitments & maximising returns 11 Conservative cover but avoiding excessive drag £152m £108m Outstanding commitment to Cash at 31 December 2018 Fund I, II and III Net Cash as % NAV 120% 97% 100% 80% 56% 60% 33% 40% 32% 26% 24% 24% 22% 22% 18% 16% 20% 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 OAKLEY CAPITAL INVESTMENTS
Balanced maturity profile 12 3.5 years average investment holding period £300.0m £250.0m Facile £29.4m CPG £45.6m £200.0m AMOS £15.1m £150.0m £39.7m £72.9m Schülerhilfe Inspired TechInsights £13.4m £100.0m £30.1m Daisy £71.5m WebPros £50.0m £80.0m £63.7m Casa & atHome North Sails Time Out £41.8m £0.0m ≥2 years 2-4 years 4+ years OAKLEY CAPITAL INVESTMENTS Note: As at 31 December 2018
Outlook 13 Strong profit growth, combined with exits above book value will continue to drive returns Existing portfolio ▪ Strong performance set to continue. Inflection points reached in the two turn around investments ▪ Further liquidity events expected this year either through exits and/or refinancings ▪ A pan-European portfolio of companies enjoying structural change will be resilient to economic and political uncertainty New opportunities ▪ 2018 demonstrated the repeatability of Oakley’s unique sourcing model ▪ Further follow on M&A identified ▪ Strong pipeline of opportunities focused on core sectors Governance ▪ The Board will continue to review the opportunity to buy back shares ▪ A conclusion on the appropriate market listing for OCI will be reached in the first half of 2019 ▪ Further Board strengthening expected ▪ Relaunch of Annual Report, website and introduction of factsheets OAKLEY CAPITAL INVESTMENTS
OAKLEY CAPITAL PRIVATE EQUITY
An established mid-cap investor with superior returns 15 MID-MARKET FOCUS WESTERN EUROPE FOCUS SECTOR FOCUS Education TMT €100m -400m Enterprise value Consumer Attractive bracket of sector champions ▪ Regions and countries with strong ▪ Strong sector fundamentals ▪ with hidden pockets of value entrepreneurial landscapes Education: large and growing sector • Strong fit with Oakley’s entrepreneurial ▪ ▪ Regional variations create opportunities Consumer : focus on digitally led models • culture, core strengths and experience for repeating strategies TMT : focus on digital infrastructure • companies Pie charts are graphed by number of investments in current portfolio as at 30 June 2018 (incl. Damovo) OAKLEY CAPITAL INVESTMENTS
Consistently exceeding its target returns 16 MM & IRR EXITED DEALS TMT Consumer Education 140% Parship Elite Group 120% Emesa 100% Daisy plc 80% Verivox I Facile.it 60% 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 OAKLEY CAPITAL INVESTMENTS
Investment strategy results in acquisitions at low entry multiples 17 and positive multiple arbitrage through value creation EV / EBITDA FUND I FUND II FUND III 14.1x 12.3x 10.7x 10.3x 10.3x 8.8x 8.1x 6.7x Entry Entry Exit Entry Entry Exit Entry Entry Exit Oakley Sector Av. Oakley Oakley Sector Av. Oakley Oakley Sector Av. Oakley Oakley entry multiple increasing due to mix effects (e.g. higher multiples in Education) but well below sector valuations Note: Averages are simple arithmetic means across the data sets and include proforma multiples when relevant OAKLEY CAPITAL INVESTMENTS
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