RESULTS PRESENTATION FY2019
Another year of progress Portfolio highlights OCI highlights Fair value of the underlying portfolio ▪ Listing move to the Specialist Fund Segment ▪ companies grew by 24% on a LFL basis (“SFS”) of the London Stock Exchange’s Main Two realisations at a combined 97% ▪ Market premium to the prevailing book value Buy-back and cancellation of 6.2 million shares ▪ £103 million invested in Oakley Fund ▪ Appointment of two new independent Board ▪ acquisitions Directors £78 million of proceeds received from the ▪ Share trading volumes increased by 85% YoY ▪ Oakley Funds Total shareholder return of 56% continues the outperformance of the FTSE all-share over one, three, five and ten year periods 1 OAKLEY CAPITAL INVESTMENTS
Market-leading returns Performance for the 12 months ending 31 December 2019 Net Asset Value NAV per share Total NAV return £ 686 m 345 p 25 % NAV per share and dividend 4.00 3.50 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 Dec-19 NAV per share Dividend 2 OAKLEY CAPITAL INVESTMENTS
Oakley Fund commitment drives NAV growth £686m NAV by investment type Cash/other assets & liabilities Oakley Fund investment £420m 4% Cash/other Cash/other 211p per share assets & assets & liabilities liabilities 25% IRR 15% 15% Debt Equity Direct investment £127m £114m Direct Co-investment investment Oakley Fund Co-investment 64p per share 57p per share 35% Investment 36% 36% 61% 10% IRR 16% IRR Cash/other assets & liabilities £25m 13p per share 3 OAKLEY CAPITAL INVESTMENTS
Fund Investment A balanced portfolio across three distinct sectors Alessi Seven Miles £7.5m £23.3m Inspired North Sails £92.3m £33.0m EDUCATION Facile £35.3m Casa & atHome Career Partner Group £40.0m £59.2m CONSUMER Time Out Schülerhilfe £76.2m £47.1m Seagull & Videotel Contabo £19.3m £4.9m Daisy AMOS £11.0m £13.6m TechInsights Ekon £13.5m WebPros £17.1m £110.1m TMT 4 OAKLEY CAPITAL INVESTMENTS Note: Chart is graphed by OCI’s look through exposure to the portfolio companies via the Funds and direct equity investments
Fund Investment A Western Europe focused portfolio Oakley offices Seagull & Videotel CPG TechInsights Schülerhilfe Inspired Contabo Daisy Seven Miles Time Out North Sails AMOS Ekon Facile WebPros Casa & atHome Alessi Portfolio Company Headquarters NAV FX exposure € 48% Consumer £ 18% TMT Education $ 35% 5 OAKLEY CAPITAL INVESTMENTS
Fund Investment High growth, conservative debt, modest valuations Portfolio analysis Portfolio Company Portfolio Company Portfolio Company EBITDA growth (1) EV/EBITDA (3) Net debt/EBITDA (2) 8 8 44% 8 47% 47% 7 7 38% 7 6 6 6 No. of Companies 33% No. of Companies No. of Companies 5 5 5 27% 4 4 4 19% 20% 20% 3 3 3 2 2 2 7% 1 1 1 0 0 0 <10% 10-30% >30% Net cash < 3x 3x - 5x 5x - 7x < 10x 10x - 12x >12x 30 % 3.7 x 12.1 x Avg annual EBITDA Growth (1) Avg Net Debt/EBITDA (2) Avg Valuation Multiple (3) (1) EBITDA growth simple averages taken across current portfolio based on latest financial years vs. prior year. (2) Multiple analysis based on Net Debt and 6 OAKLEY CAPITAL INVESTMENTS EBITDA as at 31 Dec 2019 valuations. Analysis excludes Time Out Group plc. (3) Multiple analysis based on EV and EBITDA as at 31 December 2019 valuations. Analysis excludes Time Out Group plc.
Fund Investment Portfolio activity Investments and realisations in 2019 Re-investment Investment Investment Investment Investment Investment £18m £20m £8m £23m £5m £44m Investments (1) February June April August November March July May September October December Realisations Refinancing Refinancing Partial realisation Refinancing Realisation £11m proceeds £16m proceeds £30m proceeds £3m proceeds £116m proceeds Education Consumer TMT 7 OAKLEY CAPITAL INVESTMENTS Signed in the period and completed in Q1 2020 (1) OCI look-through
Fund Investment Sourcing high quality companies at attractive valuations £103m invested in 2019 EV/EBITDA 13.1x c.€100m 9.7x est. EBITDA Year three €605m EV at acquisition 2019 signed investments Peer group average 8 OAKLEY CAPITAL INVESTMENTS
Direct Investment Direct Investments 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). 30 Jun 2019 30 Dec 2019 Fair Value Fair Value Direct Investments : £m £m 30 Jun 2019 30 Dec 2019 Fair Value Fair Value Debt Securities Direct Investments: £m £m North Sails 61.7 73.5 Equity Securities Fund Facilities 25.8 14.6 Time Out 35.8 38.5 Time Out 22.1 23.3 Inspired 74.8 75.0 Daisy 15.3 15.8 Total 124.9 127.2 Total 110.6 113.5 9 OAKLEY CAPITAL INVESTMENTS
Cash / other assets & liabilities Conservative cover but avoiding excessive drag Net cash as a % of NAV 120% 97% 100% 80% 56% 60% 33% 40% 32% 26% 24% 24% 23% 22% 22% 18% 16% 20% 3% 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Mar-20 10 OAKLEY CAPITAL INVESTMENTS
Cash / other assets & liabilities OCI reserves provide sufficient cover for its commitments Cash and outstanding OCI fund commitments 350 £313m 300 £287m 250 Cash Mar-20 £160m 200 £m 150 Cash Dec-19 £102m 100 £12m Direct £127m debt 50 £90m £11m £2m 0 Cash & direct debt Fund I Fund II Fund III Fund IV Cash + Direct debt Commitments not currently expected to be drawn 11 OAKLEY CAPITAL INVESTMENTS
Outlook Profit growth, combined with exits above book value will continue to drive returns Existing portfolio ▪ Trading strength of the underlying portfolio companies has continued into 2020 ▪ Further realisations expected in the year ▪ Oakley Capital is closely monitoring the impact of COVID-19 and all portfolio companies have prepared and shared response plans ▪ COVID- 19 is anticipated to affect trading across the portfolio. Whilst the full impact is unknown, Oakley’s investment strategy and sector focus is expected to provide some resilience against this uncertain backdrop. New opportunities ▪ Recent investments have demonstrated the repeatability of Oakley’s unique sourcing model ▪ Further follow on M&A identified ▪ Strong pipeline of investment opportunities focused on core sectors Governance ▪ Share buy-back programme to continue ▪ Management and performance fee removed from direct debt investments from 01 January 2020 12 OAKLEY CAPITAL INVESTMENTS
OAKLEY CAPITAL PRIVATE EQUITY
Proven strategy based on a clear investment focus MID MARKET FOCUS WESTERN EUROPE FOCUS PERFORMANCE 3.6 x €100m -400m Realised Enterprise returns value ▪ Regions and countries with strong ▪ Realised returns of 3.6x and ▪ Attractive bracket of sector champions entrepreneurial landscapes (for 48% average gross IRR with hidden pockets of value example, the German Mittelstand) ▪ Generated across 16 exited ▪ More primary opportunities in ▪ Fragmented markets in line with investments since inception in Oakley’s experience (more founder - Oakley strategy to consolidate 2007 and family-owned businesses, industries via buy & build corporate carve-outs etc.) Note: Pie charts are graphed by number of investments in the current portfolio. Inspired is classified as UK given it is head quartered in the 14 OAKLEY CAPITAL INVESTMENTS UK, but is global business
Origination strategy creates unique investment opportunities OAKLEY ADVANTAGE >75 % Uncontested Deals Repeat partnerships Proactive sector Complex investment with a network of Screening situations business founders >90 % First PE investor ▪ Experience and ▪ Top-down targeting with ▪ Entrepreneur heritage capabilities to embrace traditional sector mapping ▪ Engaged but not over- complex situations ▪ Building on credibility of bearing ▪ Ability to create previous portfolio success ▪ Aligned partnership >40 % opportunities from: − Corporate carve-outs Deals are − Disparate/misaligned carve-outs shareholder structures 15 OAKLEY CAPITAL INVESTMENTS
Value creation model delivers strong growth EBITDA GROWTH (1) 1 BUY & BUILD Scale and synergies through ENTREPRENEURIAL PARTNERSHIPS value accretive acquisitions 30 % BUSINESS TRANSFORMATION 2 Creating platforms for sustainable growth Average EBITDA growth (1) GROWTH ACCELERATION 3 Investing in emerging leaders in high growth sectors 16 OAKLEY CAPITAL INVESTMENTS Note: (1) Simple average taken across current portfolio based on latest financial year vs prior year
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