RESULTS PRESENTATION HY2019
Financial Highlights Performance for the six months ending 30 June 2019 Net Asset Value NAV per share Total NAV return £ 651 m 318 p 14 % 3.50 3.00 2.50 2.00 £ 1.50 1.00 0.50 0.00 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 NAV per share Dividend Share Price 1 OAKLEY CAPITAL INVESTMENTS
Portfolio performance & successful exits grow NAV 13% NAV per share increase 2.25p 318p 5p 2p 18p 18p 281p FY18 Oakley Equity Realised gains Dividend FX + Fees HY19 Funds* co-investments* 2 OAKLEY CAPITAL INVESTMENTS Note: * Represents unrealised gains
Oakley Fund commitment drives NAV growth £651m NAV by investment type Oakley Fund investment £320m Cash/other Cash/other 156p per share assets & assets & liabilities liabilities 24% IRR 15% 15% Debt Equity Oakley Fund Co-investment investment £125m £110m Co-investment Co-investment 49% 61p per share 54p per share 36% 36% 10% IRR 18% IRR Cash/other assets & liabilities £96m 47p per share 3 OAKLEY CAPITAL INVESTMENTS
Fund Investment A balanced portfolio across three distinct sectors AMOS Seagull & Videotel £16.5m £20.2m North Sails EDUCATION £39.3m Schülerhilfe Debt: £61.7m £43.7m CONSUMER Career Partner Group £45.8m Time Out £71.0m Debt: £22.1m Inspired £91.2m Casa & atHome £42.3m TechInsights £13.5m Facile Ekon TMT £33.1m Daisy £18.0m WebPros £13.6m £57.3m Debt: £15.3m 4 OAKLEY CAPITAL INVESTMENTS
Fund Investment A Western Europe focused portfolio across three distinct sectors FX exposure Consumer £269.5m Education £117.6m € 51% £ 23% TMT £217.4m $ 26% 5 OAKLEY CAPITAL INVESTMENTS
Fund Investment High growth, conservative debt, modest valuations Portfolio analysis Portfolio Company Portfolio Company Portfolio Company Net debt/EBITDA (1) EV/EBITDA (1) EBITDA growth 8 5 6 59% 44% 50% 7 41% 39% 5 4 6 No. of Companies 4 No. of Companies No. of Companies 5 3 41% 4 3 6% 2 3 2 3% 17% 2 (2) 0% 1 1 1 0 0 0 <10% 10 - 30% >30% Net cash < 3x 3x - 5x 5x - 7x < 10x 10x - 12x >12x 31 % 4.1 x 12.0 x Avg annual EBITDA Growth Avg 2019 Net Debt/EBITDA Avg June 2019 Valuation Multiple 6 OAKLEY CAPITAL INVESTMENTS (1) Multiple analysis based on EV, Net Debt and EBITDA as at 30 June 2019 valuations. Analysis excludes Time Out Group plc.
Fund Investment Portfolio activity Investments and realisations year to date Signed Completed Completed Completed Signed £17m £18m £20m £6m £25m Investments (1) February April June March May July August Realisations Refinancing Refinancing Partial sell down £11m proceeds £16m proceeds £30m proceeds Education Consumer TMT 7 OAKLEY CAPITAL INVESTMENTS (1) OCI look-through
Fund Investment Sourcing high quality companies at attractive valuations £86m new investments signed year to date EV/EBITDA 13.4x c.€100m est. EBITDA Year three 11.2x €605m EV at acquisition 2019 signed investments Peer group average 8 OAKLEY CAPITAL INVESTMENTS
Co-investment Co-investment 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 2018 30 Jun 2019 Interest Maturity Fair Value Fair Value Co-Investments : £m £m 31 Dec 2018 30 Jun 2019 Debt Securities Fair Value Fair Value Co-Investments: £m £m North Sails 40.6 61.7 7.5% Dec 2020 Equity Securities Fund Facilities 30.6 25.8 6.5% 1yr after issue Time Out 22.3 35.8 Time Out 20.9 22.1 12% Oct 2020 Inspired 41.8 74.8 Daisy 14.9 15.3 6.5% Dec 2020 Total 107.0 124.9 Total 64.1 110.6 9 OAKLEY CAPITAL INVESTMENTS
Co-investment Inspired update Equity value €989m OCI Inspired holding at Dec 2018: £73m Pre- transaction Co-investment: £42m Oakley Capital Fund II: £31m (1) (Dec-18) 80% New investment from TA Associates, Mansour and Warburg Pincus £109m returned to Oakley Capital Fund II £30m OCI proceeds uplift OCI Inspired holding at June 2019: £91m €1,820m Post-transaction Co-investment: £75m Oakley Capital Fund II: £16m (1) (May-19) 10 OAKLEY CAPITAL INVESTMENTS (1) OCI look-through value
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% 22% 22% 18% 17% 16% 20% 2% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 11 OAKLEY CAPITAL INVESTMENTS
Cash / other assets & liabilities OCI reserves provide sufficient Fund IV cover Cash and outstanding OCI fund commitments (1) £350.1m 350 300 250 £221.9m 200 £m Cash 150 £39.6m 100 Debt 50 £97.5m £11.9m £2.5m 0 Fund I Fund II Fund III Fund IV Cash + co-invest debt Commitments not expected to be drawn 12 OAKLEY CAPITAL INVESTMENTS (1) As at 30 June 2019
Outlook 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 ▪ A pan-European portfolio of companies enjoying structural change will be resilient to economic and political uncertainty New opportunities ▪ YTD investments have demonstrated the repeatability of Oakley’s unique sourcing model ▪ Further follow on M&A identified ▪ Strong pipeline of opportunities focused on core sectors Governance ▪ Share buy-back programme continues ▪ Further Board strengthening expected ▪ Co-investment debt management fees to be removed from 01 January 2020 13 OAKLEY CAPITAL INVESTMENTS
OAKLEY CAPITAL PRIVATE EQUITY
Oakley Capital Overview An Investment Adviser consistently delivering outperformance RETURNS SOURCING CONSISTENCY ▪ Realised returns of 3.1x ▪ Returns and sourcing have Sector and regional ▪ and 47% gross IRR been maintained over: expertise ▪ Generated across 17 o Time (12 years) Deal-generating ▪ investments since entrepreneur network o Size of investment inception Discounts to prevailing ▪ (£15 to £100m) valuation multiples achieved 3.1x €1.3bn 12 Total cost invested Realised returns years since inception 15 OAKLEY CAPITAL INVESTMENTS
Key Oakley themes ENTREPRENEUR REPEAT PLAYS COMPLEXITY BUY & BUILD PARTNERS Recent examples: + + + 16 OAKLEY CAPITAL INVESTMENTS
Oakley’s toolkit enables us to build value in the portfolio PORTFOLIO EXAMPLES ▪ Building winning teams ▪ Subscription models ▪ Pricing & customer LTV ▪ Marketing efficiency ▪ Buy & build 17 OAKLEY CAPITAL INVESTMENTS
Track record of high returns from investments over the cycle > 100% Emesa Parship Elite Group 80% Daisy Group plc Verivox I 60% Damovo Facile Realised Gross IRR 47% Intergenia II Verivox II 40% Host Europe Gros IRR Inspired I HEG Intergenia I Headland Media 20% 0% Monument -20% Broadstone -40% Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Aug-13 Dec-14 May-16 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Fund I Fund II 18 OAKLEY CAPITAL INVESTMENTS
Sector expertise Proven track-record in three core sectors CONSUMER TMT EDUCATION Oakley’s core concentration is Originally investing in hosting and A sector with very attractive Digital Consumer, with the focus telecoms space, Oakley’s experience fundamentals, Education has grown to being on marketing-led businesses and insightful network has helped become a significant area of with leading positions in their to target businesses that are key investment for Oakley, with portfolio respective industries. to supporting advancements in companies across different segments technology. of the market. Value of OCI NAV Value of OCI NAV Value of OCI NAV £270m £118m £217m 41% 18% 33% Fund I asset Fund II asset Fund III asset Fund IV asset Signed but not completed 19 OAKLEY CAPITAL INVESTMENTS Note: Values provided are on an OCI look-through basis
APPENDIX 1 NARROWING THE DISCOUNT
Narrowing the NAV discount (1) Topic Status Comment Prevent NAV dilution “Going forward the Board does not intend to issue equity or sell stock from treasury at a discount to NAV” Message repeated in three public announcements, reiterated in 2018 full year report Alignment of interest OCI Board and Oakley Partners hold c.8% of OCI shares vs 5% at December 2018 Returning cash Dividend: HY 2.25p announced in 2019, level to be maintained Buyback: Shares purchased and cancelled in H1. The board plans to maintain buyback programme Greater disclosure Reconciliation of OCI holdings, more investment detail, increased communications 2019: introduced Factsheet, more materials available on relaunched website including paid for research 21 OAKLEY CAPITAL INVESTMENTS
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