Bailador Technology Investments : Net Tangible Asset Backing

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
c mpanies with global addressable
onlymarkets.	We invest	in private
technology companies at the expansion
stage.
use
Contact Bailador

Bailador Technology Investments Level 20, 20 Bond Street

Sydney NSW 2000 personal[phone]

[e-mail]

C nnect to Bailador

@bailadorvc

Bailador Technology Investments

m dium.com/bailador www.bailador.com.au

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This report was authorised for release to the ASX by Helen Plesek, Company Secretary & Chief Financial Officer, on 8 June 2022.

May 2022

Bailador Technology Investments [ASX:BTI]

Shareholder Update

Net Tangible Asset Snapshot

	Current month
NTA per share pre-tax	$2.01
NTA per share post-tax	$1.70

Net Tangible Asset Breakdown Since Inception

$m							$283.8m
300
275
250
225
200
175
150		Cash & Other
125		Gains
100
75				Portfolio Cost
50
25
0
Nov-14	Nov-15	Nov-16	Nov-17	Nov-18	Nov-19	Nov-20	Nov-21

Founders' Commentary

$138m Cash Realised, Ongoing Fully Franked Dividend Policy of 4% pa of NTA ushers in new era for BTI

Since we wrote to you last we have:

• Completed and received $118m in cash for the sale of our share of Instaclustr to US-listed data and storage giant NetApp
• Completed and received $20m in cash for the sale of our share of Standard Media Index (SMI) to US private equity investor GTCR
• Announced a comprehensive capital management policy which will deliver to shareholders an ongoing fully franked dividend of 4% of NTA per share per annum and a one-off special fully franked dividend of a further 2% of NTA per share

The inflow of $138 million in cash and the subsequent announcement of an ongoing dividend of 4% of NTA per share per annum are important steps in the journey we have been on since listing on the ASX. Our aim is to create a large, listed information technology investment company that offers a wide range of investors the opportunity to partner with us as we seek out and invest in some of the best growth stage information technology companies in this part of the world.

Growing to the size we have and selling the two positions we have during a period of high valuations allows us to structure our returns to shareholders in a way that optimises shareholder returns for the long term. Our investment proposition has evolved in a way we think will be very positive for shareholders. We now offer a consistent fully franked dividend of 4% of NTA per share per annum. Should the share price trade at a discount to the NTA per share of the fund - as it has for much

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For personal use only

May 2022

of our listed life - the annual yield on share price to shareholders from the dividend payment will be even higher than 4% pa.

However, we want to make it very clear, an attractive dividend yield is not the primary way in which we expect to deliver investment returns to shareholders. Our number one aim as investors on your behalf is to invest in growth stage information technology companies, partner with founders and management to grow the value of the companies we invest in and realise significant capital gains when the time is right. This is what we have been doing for the nearly eight years we have been listed and this is what we will continue doing. Investors should think of the regular fully franked dividend at an attractive yield as simply de-risking and bringing forward their total return.

We remain confident of delivering high blended growth in capital returns to shareholders for the following reasons:

1. Valuations in technology stocks have declined sharply all over the world and new investments will be at prices that give us a good chance of repeating the returns we have delivered so far
2. We hold two excellent public company positions - SiteMinder and Straker Translations - that we believe have significant value upside from current trading prices
3. We hold just 23% of the portfolio in private company positions currently. We are very happy with the operating and financial performance of those companies
4. We continue to see a steady stream of exciting new private company investment opportunities and regularly expect to make new investments

Attached to this month's statement are Case Studies of the two investments we have just exited - Instaclustr and SMI. We hope the Case Studies help shareholders understand more fully what we do. In the Case Studies we talk about the original investment thesis - why we thought our investment would grow in value - what we learned along the way and what delivered the returns for us all in the end. As you will see from the Case Studies, the drivers of valuation growth and our returns are always the same. They are growth in revenue, improved quality of revenue, margin expansion, profitable unit economics, valuation multiple expansion, and efficient use of capital.

What you don't see from the Case Studies is how growth and improvement in these six drivers of value are achieved. For that we are incredibly grateful to our founders and management teams. We work hard to be supportive, insightful and problem solvers for the founders and managers we invest with, and we are all of those things, but in the end it is the founders and managers of the businesses who create the value for us and for you and we will never forget that.

David Kirk & Paul Wilson

Bailador Co-Founders

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Investment Focus

Bailador typically invests $5 million or

more	in	businesses	within	the
only
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
use
•	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

personalFor	businesses,	online
internet
m rketplaces,	software, e-commerce,

high value data, online education, telecommunication applications and services.

+

May 2022

Highlights

Movement in NTA

BTI's NTA per share (pre-tax) at close of May 2022 was $2.01 (April

2022 $1.99). Key movements in NTA per share during May were:

Portfolio valuations

Uplift on Instaclustr on realisation	3.8c per share
Uplift on SMI on realisation	0.4c per share
Decrease in SiteMinder (ASX:SDR) share	-0.2c per share
price to $4.67 (April 2022 $4.69)
Decrease in Straker Translations (ASX:STG)	-0.5c per share
share price to $1.18 (April 2022 $1.25)
Other operating expenses	-1.5c 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.

Throughout May 2022, Bailador completed the realisations of Instaclustr and Standard Media Index. The realisations have crystalised taxable gains and provide certainty around tax payable on the gains. The tax payable is expected to be paid in March 2023 and is estimated to move 21 cents per share from pre-tax NTA to the company's franking account allowing the company to pay fully franked dividends.

Instaclustr

As announced in ourASX release on Wednesday 25th May, Bailador has received A$118m of net cash proceeds through the sale of 100% of its investment in Instaclustr. Instaclustr has beenacquired by NetApp,a global, cloud-led, data-centricsoftware company based in the US.

SiteMinder

SiteMinder partnered with HOMA, a pioneering co-living brand based in Thailand, to make it easier for guests to book directly online. The partnership will begin with HOMA Phuket Town, before being extended to three additional Thai locations opening in the next 18 months, and Indonesia and Vietnam in 2024.

Sankar Narayan, SiteMinder CEO, and Dai Williams, Chief Growth Officer, spoke to David Yuan from Tidemarkabout SiteMinder's origins and platform evolution.

The latest edition ofSiteMinder's expert content series features Markus Seemann, founder of 9seemeilen Hospitality, giving his insights on revenue management and how hoteliers can control the fate of their business in real time.

Standard Media Index

As announced in our ASX release on Tuesday 31st May, Bailador has received A$20m of net cash proceeds from the sale of 100% of its investment Standard Media Index. SMI has been acquired by GTCR, a leading private equity firm based in Chicago.

Straker Translations

Straker Translations released its FY22 results (March year-end) to the ASX. Revenue was up an impressive 78.5% on the prior year

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May 2022

surpassing revenue guidance, driven by of strong organic growth and successful acquisitions. Other highlights included gross margin expansion to 54.3%, adjusted EBITDA profit of $1.2m for the second half of the financial year, and a strong balance sheet with $15.1m of cash and no debt. Click hereto read the media release, click hereto view the FY22 Presentation to shareholders, and click hereto view the Annual Report 2022.

Nosto

Nosto was up for valuation review as at 31 May 2022 given it has been 12 months since the last valuation was undertaken. Nosto has traded strongly over the past 12 months, but despite this strong trading, we have decided not to change our valuation.

Bailador

Stockheadreported on Bailador's new dividend policyannounced in ourASX release on Wednesday 1st June. The new policy commits to ongoing fully franked semi-annualdividend payments totalling 4% per annum of BTI's NTA pre-tax(i.e. 2% of NTA pre-taxpaid each half-year),plus a fully franked special dividend of 2% of NTA pre- tax, paid with the first ongoing dividend payment following release of BTI's FY22 results.Click hereto read the full policy.

Bailador wasdiscussed on the Baby Giants Investing podcast, which focuses on Australian small cap investing.

Bailador featured in Letter of Intent, a daily newsletter for Australian dealmakers. The piece focused on what Instaclustr's acquisition by NetApp means for Bailador.

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.

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June 2021

May 2022

BTI Portfolio Net Tangible Asset Summary

Valuation ($'m)Gain (%)NTA per share ($) Third Party Event Valuation Next Valuation Review1

only				►
	SiteMinder	78.0		474%	▲	0.55		✔	Mark to market each
			month end
	InstantScripts	16.6		10%	▲	0.12		✔	March 2023
	Rezdy	12.8		69%	▲	0.09		✔	October 2022
	Access Telehealth	12.5		0%		0.09		✔	December 2022
	Nosto	11.5		3%	▲	0.08		✔	May 2023
use				▲
	Straker Translations	10.8		10%	▲	0.08		✔	Mark to market each
			month end
	Mosh	7.5		0%	►	0.05		✔	December 2022
	Brosa	4.5		49%		0.03			October 2022
	Cash	143.8				1.02
personalr	-14.2				-0.10
	Other2
	Net Asset Value / Net Asset		283.8				2.01
	Value Per Share (Pre Tax)
	Denotes change to valuation in current month			Denotes valuation review in next six months

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.

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.