Electra Private Equity : 2020 Results Supplementary Information

Electra Private Equity PLC

2020 Results - Supplementary Information

9 December 2020

Important notice

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This document has been prepared by Electra Private Equity PLC (the "Company"). The information and opinions contained in this document and any other material discussed verbally in connection with it are provided as at the date of this document and no person undertakes to update or correct them. The information includes forward-looking statements and statements of opinion which are based on the Company's current expectations and projections about future events, but are subject to various risks and assumptions, and actual events or circumstances may differ materially from those indicated in these statements; none of these statements should be taken as forecasts or promises. No representation or warranty, express or implied, is made or given by or on behalf of the Company or any other person as to the accuracy, completeness, fairness or correctness of the information or opinions contained in this document or any other material discussed verbally; no reliance should be placed on such information and no responsibility or liability is accepted for it.

This document does not constitute, or form part of, any offer to sell or issue, or invitation to sell, purchase or subscribe for, or any solicitation of any offer to sell, purchase or subscribe for, any securities of the Company or of any other entity. Neither this document nor any part of it should be relied on in connection with any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any other investment advice. Shareholders and prospective investors should make their own independent evaluation of any investment in the Company.

The securities of the Company have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state in the United States and may not be offered or sold in the United States, except in reliance on an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

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Chairman's quote

"In the most challenging circumstances, our management teams and their employees have worked tirelessly to protect their businesses and put them in a strong position for future growth. Whatever the course of the pandemic over the coming months, I am confident that we have strong and effective management teams in place, improved product offerings and above all the determination to deliver value to shareholders consistent with our declared strategy.

"The emergence of the pandemic and the resultant impact on equity market values has had the effect of reducing the combined valuation of our three larger investments, TGI Fridays ("Fridays"), Hotter Shoes ("Hotter") and Sentinel Performance Solutions ("Sentinel"), by £58.4 million (31%) from their valuations last September. Both Fridays and Hotter utilised the first period of lockdown to successfully restructure and have emerged as stronger and more agile businesses. With significant improvements now implemented, a return to 2019 levels of market activity should provide an opportunity for combined value realisation in excess of pre Covid-19 valuation levels."

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Composition of Net Asset Value

Group Highlights

• net asset value ("NAV") as at 30 September 2020 of £135.3 million (353.4p per share);
• valuation of the three largest investments reduced by £58.4 million from September 2019 by impact of pandemic on market multiples. Each business is now well positioned for recovery, with TGI Fridays ("Fridays") and Hotter Shoes ("Hotter") both having implemented significant business improvements;
• the Company continues to target realisation of its remaining investments by end 2021. Advisors are in place engaged on early preparation for realisation of each of its investments when optimal post Covid-19 disruption;
• no ordinary dividend is proposed. It is the Board's intention to distribute proceeds from asset realisations in 2021, the timing and quantum of which will be dependent on realisation processes. To date, £2 billion has been returned to shareholders since October 2016.

		30 September 2020	30 September 2019
		£m	p/share	£m	p/share
	TGI	106.6	278.5	141.4	369.2
	Sentinel	10.9	28.5	3.2	8.3
	Hotter	5.8	15.2	33.0	86.2
	SPC	1.0	2.6	9.0	23.6
	Other	4.3	11.2	5.8	15.2
	Cash & cash equivalents	6.9	18.0	17.9	46.6
	Other net liabilities	(0.2)	(0.5)	(0.4)	(0.7)
	Total NAV	135.3	353.4	209.9	548.4

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