Bailador Technology Investments Limited (ASX:BTI)

BTI Half Year Results13 February 2020

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Contents

P O R T F O L I O P E R F O R M A N C E PAGES 3 – 5

P O R T F O L I O C O M PA N Y U P D AT E S PAGES 6 – 15

O U T L O O K PAGE 16

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This report was authorised for release to the ASX by Helen Plesek, Company Secretary & Chief Financial Officer, on 13 February 2020.

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Portfolio Performance

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• Bailador NTA per share at $1.31

• Major milestone for the largest Bailador portfolio investment, SiteMinder: Raising >$100m at a valuation above $1 billion

• Bailador cash realisation of $9.9m from selling a small portion of its SiteMinder position, with the remaining investment valued at the thirdparty valuation

– The realisation represented 21.2x initial cost at an IRR of 50.5%

• Bailador cash realisation of $2.0m from selling a small portion of the Straker Translations position– The realisation represented 2.1x initial cost at an IRR of 25.0%

• The partial cash realisations of SiteMinder (completed January 2020) and Straker Translations demonstrates the fund’s ability to monetise gains

• As a result of recent cash realisations, Bailador has announced its first special dividend of 2.5 cents per share fully-franked, or a 2.3% yield at close on 12th February 2020

• A Dividend Reinvestment Plan will be available for those shareholders who wish to take advantage of it

• 72% of the Bailador portfolio is now valued from third party transactions. Overall valuation remains conservative with upside opportunity from medium term drivers

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Bailador has a portfolio of established, fast growth technology companies

Note: 1Revenue for the year ended 31 December 2019 for the underlying companies in the BTI portfolio. 2Based on revenue for the year ended 31 December 2019 and weighted based on carrying value in the portfolio.

$255mportfolio company revenue1

>70%gross margin2

27%portfolio companyrevenue growth2

87%recurring revenue2

10investments

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The growth in carrying value of BTI’s investments is conservative in comparison to the revenue growth in the portfolio

Bailador Entry CY19

Revenue

3.5x

Revenue

Original cost CY19 carrying value +realised cash

Carrying Value

2.2x

Carrying Value

Portfolio revenue has increased by 3.5x…

…but BTI has only recogniseda value increase of 2.2x in its NTA

Note: Revenue and carrying value for the year ended 31 December 2019 for the underlying companies in the BTI portfolio. 5

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SiteMinder is the world leader in connecting hotels to online distribution channels for accommodation bookings

Bailador Entry (FY12) CY19

Revenue

• Surpassed $1bn valuation with January 2020 investment from renowned global and Australian investors including BlackRock Investments

• $100m+ Annualised Recurring Revenue via subscription revenue model

• The clear global leading SaaS B2B platform – triple the size of nearest competitor

• 105 million bookings generated, representing US$38bn+ in transaction value p.a., from 35,000+ hotel customers

• Massive addressable market of 1 million hotels

• Revenue from >160 countries with 80% of revenue from international markets

• BTI realised $9.9m cash in January 2020 from selling a small portion of its investment at a multiple of 21.2x cost, representing an IRR of 50.5%

• Total cash realised for Bailador’s investment in SiteMinder is now $15m Original cost Carrying value +realised cash

Carrying Value Jan-19 $82.5m + Realised Cash $14.9m2

21.8x

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$82.5m

$97.4m

$5.0m3

$5.0m

19.3x

58% O F B T I N T A

$9.9m2

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Note: 1Entry of Bailador prior to formation of listed BTI entity. 2$9.9m cash realisation completed in January 2020 is a post 31 December 2019 balance date event. 3$5.0m cash was realised in December 2015.

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Instaclustr is an open-source-as-a-service platform for complex big data applications

BTI Entry (FY16) CY19

Revenue

• Consistent growth in high margin revenue recurring revenue

• Great way to get exposure to the growth in big data, cloud computing and open source software

• Successfully launched multiple products and transitioned to a platform of open-source-as-a-service offerings

• Growing portfolio of global customers including Atlassian and Sonos

• Excellent management team with prior success launching and exiting a business within the cyber security sector

• Attractive target for large acquirers

Original cost Carrying value

Carrying Value

4.7x

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$19.0m

$4.5m

4.2x

12% O F B T I N T A

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Global leader in the rapidly growing document productivity segment of the Legaltech market

BTI Entry (FY16) CY19

Revenue

• Clear product leadership that is successfully exploiting the movement to the cloud

• Globally successful business with 80% of revenue derived from outside of Australia

• Very sticky customer base across top tier professional services firms, commercial and government enterprises

• Strong growth runway across its existing customer base, existing markets and new product development initiatives

• Successfully transitioned to a recurring revenue business that is profitable and cash generative

• SaaSOriginal cost Carrying value

Carrying Value

1.5x

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$10.9m

$5m

2.2x

7% O F B T I N T A

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Lendi is a Fintech online platform that radically simplifies process of obtaining a home loan

BTI Entry (FY16) CY19

Revenue

• Disruptive home loan platform that compares loans from 35+ lenders and addresses $1.7 trillion home loan market

• Utilises technology and smart integrations to radically simplify the home loan selection and application process for consumers

• An innovative consumer offering in a huge industry that has been slow to embrace innovation

• Leverages the trend of customers procuring financial products online

• Exclusive partnership with Domain that allows Lendito leverage Domain’s 5.0 million+ monthly audience

• Successfully completed an oversubscribed and significant capital raise in December 2019

Original cost Carrying value+ realised cash

Carrying Value

2.1x

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$11.2m

$5.5m

$10.7m$0.4m

2.0x

7% O F B T I N T A

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Big data aggregation and analysis platform with exclusive access to ad expenditure data

Bailador Entry (FY11) CY19

Revenue

• Provides valuable advertising spend metrics and forecasting to agencies, brands, financial analysts globally

• Blue chip customer base with high retention rates and multi-year subscriptions

• Gearing up for geographic expansion with core products and new product launch in the US

• SaaS/Big Data play with favourable trends as customers look to data to calculate the ROI across all marketing channels

Original cost Carrying value

Carrying Value

3.4x

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$9.6m

$7.4m 1.3x

6% O F B T I N T A

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Note: 1Entry of Bailador prior to formation of listed BTI entity.

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Straker Translations is a world leading AI data driven language translation platform powering the global growth of businesses

BTI Entry (FY16) LTM Sept 2019

Revenue

• A US$43bn market opportunity underpinned by strong structural trends

• Industry leading tech solution that allows Straker to achieve superior translation speed and margins

• Highly scalable marketplace platform that utilises machine learning/AI

• Strong comp to Appen at a much lower valuation multiple

• IPO in October 2018 and beat prospectus forecasts (FY19 revenue up 44% vs 38%)

• BTI realised an additional $2.0m cash in July 2019, from selling a small portion of its investment at a multiple of 2.1x cash, representing an IRR of 25.0%. Total cash realised from Bailador’s investment in Straker is now $3.2m

Original cost Carrying value+ realised cash

Carrying Value

3.4x

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$12.7m

$7.5m$9.5m

$3.2m

1.7x

6% O F B T I N T A

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Note: The Straker carrying value is based on a share price of $1.49 at 31 December 2019. 1September 2019 LTM.

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Leading, innovative and fast-growing B2B marketplace for tours & activities.

BTI Entry (FY15) CY19

Revenue

• Tours & activities is a US$180bn per annum market

• Rezdy is well positioned to capitalize on the rapid transition of a highly fragmented supply/demand base to “online”

• Rezdy leads the market in supply/demand side connectivity via its channel manager solution

• Over 50% revenue growth in 2019 and over 50% generated outside APAC

• Core SaaS revenue model with successful addition of transaction and commission revenue streams

• B2B marketplace is a unique differentiatorOriginal cost Carrying value

Carrying Value

8.3x

12

$5.9m

$3.6m1.6x

4% O F B T I N T A

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BROSA is the leading Australian vertically integrated and digital native furniture retailer

• Opportunity to disrupt the $13.9bn home and living retail market that is underpenetrated in online sales

• Strong management team with deep experience in retail, supply chain, merchandising and brand building

• Impressively high customer satisfaction: best-in-class NPS

• Proprietary technology and supply chain ownership

• Improving unit economics with scale

• Online/vertically integrated

Original cost Carrying value

Carrying Value

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$3.0m$3.0m

1.0x

2% O F B T I N T A

BTI Entry (FY18) CY19

Revenue

0.9x

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Leading tech platform for brands to leverage User Generated Content (UGC) in their marketing strategy

BTI Entry (FY15) CY19

Revenue

• Huge global addressable market across multiple Martech sectors

• Impressive suite of domestic and international blue-chip customers

• Serving customers in the Automotive, CPG, Retail and Travel verticals

• Enterprise-grade tech platform built with API-first approach enabling deep integrations into the marketing stack

• Product-centric organisation

• AI-driven SaaS platform

• Following Stackla’s temporary suspension from the Facebook/Instagram platform, Bailador reduced the valuation of its holding to nil to be conservative given the uncertainty of the situation at the time. Stackla was reinstated to the Facebook/Instagram platform, and has performed solidly since that time. Notwithstanding Bailador’s conservative approach in continuing to hold its investment in Stackla at nil, we believe that there is reasonable prospect of a positive outcome for investors Original cost Carrying value

Carrying Value

3.0x

14

$0m

$11.2m

0% O F B T I N T A

1.0x

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Viostream is a cloud-based video management, storage and distribution platform for enterprises

Bailador Entry (FY11) CY19

Licence Fee Revenue

• Viostream’s platform helps government and commercial enterprises harness the power of video within their organisations

• High quality customer base with a strong focus on the government sector

• Positioned to benefit from the strong growth of video as a communications medium

• Committed management team that have moved the business towards cash flow profitability

• Recurring licence and webcasting revenue

• SaaS/B2B

• Bailador has written the value of investment in Viostream to $nil, reflecting slower growth prospects

• BTI is actively seeking a new partner for the business to allow it to scale to its full potential

Original cost Carrying value

Carrying Value

15

1.6x

$0m

$23.2m

1.0x

0% O F B T I N T A

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Note: 1Entry of Bailador prior to formation of listed BTI entity.

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Outlook

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Bailador’s focus on Software-as-a-Service and Marketplace businesses continues to be validated by 27% revenue growth of the BTI portfolio companies at high gross margins

The Bailador portfolio is very well positioned to take advantage of the accelerating business uptake of Software-as-a-Service

Bailador’s conservative valuation approach adjusting on third-party events or after 12 months, provides risk mitigation in the event of any negative IT sector re-rating

There are opportunities for valuation uplift and potential cash realisationsof portfolio company positions in H2 FY20

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Disclaimer

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This presentation is confidential and may not be reproduced in whole or in part, or distributed except by Bailador Technology Investment Ltd (“Bailador”) or by authorized representatives of Bailador (“Affiliates”).

This presentation does not contain a complete description of Bailador and the risks associated with an investment therein. Bailador does not accept liability to any person, organisation or company for any loss or damage suffered as a result of reliance on this document. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, and are subject to variation. All forward-looking statements in this document reflect the current expectations of Bailador concerning future results and events.

Any forward-looking statements contained or implied, either within this document or verbally, involve known and unknown risks, uncertainties and other factors (including economic and market conditions, changes in operating conditions, currency fluctuations, political events, labour relations, availability and cost of labour, material and equipment) that may cause actual results, performance of achievements to differ materially from the anticipated results, performance or achievements, expressed, projected or implied by any forward-looking statements.

Certain information contained in this presentation has been obtained from third-party sources. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and neither Bailador nor its Affiliates take any responsibility for such information.

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FURTHER INFORMATION

Website: www.bailador.com.auInvestor Enquiries: investorservices@bailador.com.au Telephone: +61 2 9223 2344

Bailador Technology Investments Limited (ASX:BTI)For

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