Bailador Technology Investments : Net Tangible Asset Backing

For personal use only

About Bailador

Bailador Technology Investments is a growth capital fund focused on the information technology sector, actively managed by an experienced team with demonstrated sector expertise.

Bailador provides exposure to a portfolio of information technology companies with global addressable markets. We invest in private technology companies at the expansion stage.

Contact Bailador

Bailador Technology Investments

Level 20, 20 Bond Street

Sydney NSW 2000

[phone]

Connect to Bailador

@bailadorvc

Bailador Technology Investmentsmedium.com/bailador

www.bailador.com.au

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Click here to sign up for updatesThis report was authorised for release to the ASX by Helen Plesek, Company Secretary & Chief Financial Officer, on 12 April 2022.

Bailador Technology Investments [ASX:BTI]

Shareholder Update

Net Tangible Asset Snapshot

NTA per share pre-tax

NTA per share post-tax

Current month

$1.98 $1.68

Net Tangible Asset Breakdown Since Inception

$m

300

275

250

225

200

175

150

125

100

75

50

25

Nov-14

0

Nov-15

Nov-16

Nov-17

Founders' Commentary

Outstanding realisation of Instaclustr

Nov-18

Nov-19

Nov-20

Nov-21

Shareholders will have seen the announcement on Friday last week that Nasdaq listed US data behemoth NetApp has entered into a definitive agreement to acquire Instaclustr. This is a tremendous result for Instaclustr and for Bailador investors. Our share of the proceeds of the sale will be around AUD$118 million. The final number is subject to normal final adjustments, and closing proceeds are subject to payment of transaction costs, and dependent on exchange rate fluctuations between now and completion, when the proceeds will arrive in our bank account.

The realisation of our investment in Instaclustr is at an AUD$54 million or 85% uplift to our current holding value of Instaclustr. This translates to an increase of $0.38 to the pre-tax NTA of the BTI fund. We lay out these numbers because we want to show and say, as we have many times in the past, that:

• 1. We hold our investments at conservative valuations. The NTA per share we publish is a conservative estimate of the value of the fund. We demonstrate the conservative nature of our valuations by reporting the EV/revenue multiple for the entire portfolio compared to appropriate indices and companies. This shows that the BTI portfolio revenue valuation multiple is far below the multiples at which these comparable indices and companies trade, and

• 2. We have had 31 third party investments or realisations in Bailador portfolio companies over the life of the fund and not one of these has been at a discount to the carrying value of the portfolio company at the time.

The first point above makes it clear that the whole portfolio is conservatively valued, and the second point makes it clear that each individual company is conservatively valued.

Below is our record of investment and growth in the valuation of Instaclustr at third party valuations.

There have been three third party transactions since BTI originally invested in Instaclustr in November 2016.

Note: *Includes $3.8m BTI investment made in June 2021.

Instaclustr is a great example of what we do. We find great private Australian and New Zealand information technology companies at the expansion stage, invest, join the board and do everything we can to help the company grow. Usually, as we did with Instaclustr, we have opportunities to add to our investment as we go along.

Our experience at Instaclustr is different in degree - the returns are at the upper end of expectations - but entirely consistent in substance to what we do and the results we get across the portfolio. Our realisations of DocsCorp, Lendi and Standard Media Index (SMI), though smaller, followed the same course we experienced at Instaclustr. SiteMinder is of course comparable to Instaclustr in both degree and substance.

The point we are making is we have a consistent and proven model. The evidence demonstrates that what we are doing works well over an extended period of time including through a period of decline in valuations in the information technology sector. We are proud of the business we have created and of the unique access BTI gives to investors, in particular retail investors who would not otherwise have the opportunity to invest in some of the best private expansion-stage information technology companies in this part of the world.

The realisations of our investments in SMI and in Instaclustr will, when complete, deliver a large amount of cash into BTI. We think this is a good time to have cash to invest in expansion-stage information technology companies and we continue to see many interesting opportunities. The board of Bailador Technology Investments will consider a range of capital management alternatives in the coming months in anticipation of the forecast cash availability.

David Kirk & Paul Wilson

Bailador Co-Founders

Important Notice

Bailador Investment Management Pty Ltd ACN 143 060 511 ('Manager') has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in BTI, nor does it constitute financial product or investment advice, nor take into account your investment, objectives, taxation situation, financial situation or needs. Any investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of BTI and conduct its own investigations and analysis. Past performance is not a reliable indicator or future performance.

For personal use only

Investment Focus

Bailador typically invests $5 million or more in businesses within the technology sector that are seeking growth stage investment.

Companies we invest in typically share the following characteristics:

• • Run by the Founders

• • Two to six years in operation

• • Proven business model with attractive unit economics

• • International revenue generation

• • Huge market opportunity

• • Ability to generate repeat revenue

Important verticals we seek to invest in within the technology sector include: SaaS and other subscription-based internet businesses, online marketplaces, software, e-commerce, high value data, online education, telecommunication applications and services.

+

Highlights

Movement in NTA

BTI's NTA per share (pre-tax) at close of March 2022 was $1.98 (February 2022 $1.76). Key movements in NTA per share during March were:

Portfolio valuations

Increase in valuation of Instaclustr in line with cash realisation announced on8 April2022

Decrease in SiteMinder (ASX:SDR) share price to $4.52 (February 2022 $5.70)

-14.0c per share

Decrease in Straker Translations (ASX:STG) share price to $1.32 (February 2022 $1.39)

-0.5c per share

Operating expenses

Provision for performance fee

Other operating expenses

-4.9c per share

-0.4c per share

Operating expenses include provision for performance fee not yet payable, with any payment of performance fee dependent on the Company completing FY2022 in excess of the 8% compound hurdle rate.

Bailador has provided for expenses likely to be incurred in completing the cash realisations of Instaclustr and Standard Media Index.

Instaclustr

As discussed in our Founders' Commentary, Instaclustr has entered into an agreement to be acquired by NetApp. Read more in ourASXrelease from 8 April 2022.

Instaclustrannounced general availability of Instaclustr ManagedCadence on its platform. Originally developed and open-sourced by Uber, Cadence is a workflow engine that greatly simplifies the development of complex long-running automated business processes at scale.

SiteMinder

SiteMinderlaunched the next generation of its platform featuring a simpler, more intuitive experience for hotels to sell, market, manage and grow their business. The platform includes real-time insights into customer and market behaviours, website solutions, a new interface, and integrations to the 1,500 highest-ranked hotel software and experts globally, including automated payments.

SiteMinderheld its first-ever global conference, Sync.The event was designed to educate and inspire those in the hotel industry in a series of 20-minute sessions.

Jonathan Kenny, SiteMinder CFO,spoke to CFO Magazine about the how the company has grown since he joined in November 2018.

For personal use only

Standard Media Index

As announced in ourASX release on 11 March,Bailador has entered into an agreement to sell its investment in SMI for approximately $20m cash. The sale price represents an uplift of approximately 67% to the previous carrying value of SMI. The valuation uplift of $8m is an increase of $0.06 NTA per share (pre-tax). The sale price is subject to foreign exchange movements and final adjustments, including for the level of working capital and net debt (including transaction costs) in SMI at closing. The transaction is also subject to FIRB approval.

InstantScripts

As announced in ourASX release on 31 March,Bailador has completed a $7.7m follow-on investment in InstantScripts. The valuation of the investment round has resulted in a 15% ($1.2m or $0.01 per share) uplift to the valuation of Bailador's existing $7.8m investment in InstantScripts. Bailador's additional $7.7m investment brings the total investment valuation to $16.6m. InstantScripts' revenue has grown 109% year-on-year and the business now has over 300,000 users registered on its platform.

Straker Translations

Straker Translations published itspresentation from the Ord

Minnett Technology Showcase.Straker Co-Founder and CEO Grant

Straker delivered the presentation which covers Straker's products,

market and key customers.

Mosh

Mosh haspartnered with Melbourne Storm to highlight men's health issues. Mosh has also teamed up with the Parramatta Eels, and the players will be wearing the Mosh logo on the back of their shorts.

Brosa

Brosa Co-Founder and CEO Ivan Limspoke to Digital NationAustralia for a video interview on why he was inspired to build the company. Ivan also shared the most important lesson he learned while growing Brosa withDynamic Business.

BTI Portfolio Net Tangible Asset Summary

personal use only

Net Asset Value / Net Asset Value Per Share (Pre Tax)

279.2

1.98

Denotes change to valuation in current month

Denotes valuation review in next six months

Instaclustr

SiteMinder

Standard Media Index

Instant Scripts

Rezdy

Access Telehealth

Straker Translations

Valuation ($'m)

117.5

75.5

20.8

16.6

12.8

12.5

12.0

Nosto

Gain (%)

1307%

▲

461% 181% 10% 69%

▲

▲ ▲ ▲

0%

►

11.5

Mosh

19% 3%

▲

▲

7.5

Brosa

0%

►

4.5

Cash

49%

▲

7.0

Other2

-19.0

NTA per share ($)

0.83

0.54 0.15 0.12 0.09 0.09

0.09 0.08 0.05 0.03 0.05 -0.14

Third Party Event Valuation

✔

Next Valuation Review1

Cash realisation expected FY22

✔ ✔ ✔ ✔

✔

Cash realisation expected FY22

March 2023

October 2022

December 2022

✔

✔ ✔

May 2022

December 2022

October 2022

1 Next valuation review date refers to the date of the next formal valuation review. Valuation events can also occur in a shorter time frame where there is a third-party investment or a valuation change material to BTI.

2 Includes provision for performance fee not yet payable, with any payment of performance fee dependent on the Company completing FY2022 in excess of the 8% compound hurdle rate. 2 Includes provision for transaction expenses expected on cash realisations to be completed in FY22.

Please Note: Figures in this report are unaudited and exclude tax. The current value for each investment in the table above is consistent with the BTI investment valuation policy, which may be found in the BTI prospectus lodged with ASIC on 3rd October 2014 and available on the ASX website.

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