Oaktree Specialty Lending : Q1 2022 Earnings Presentation

FIRST QUARTER 2022	EARNINGS PRESENTATION
FEBRUARY 3, 2022	NASDAQ: OCSL

Forward Looking Statements & Legal Disclosures

Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, "Oaktree") to reposition our portfolio and to implement Oaktree's future plans with respect to our business; the ability of Oaktree and its affiliates to attract and retain highly talented professionals; our business prospects and the prospects of our portfolio companies; the impact of the investments that we expect to make; the ability of our portfolio companies to achieve their objectives; our expected financings and investments and additional leverage we may seek to incur in the future; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our portfolio companies; and the cost or potential outcome of any litigation to which we may be a party. In addition, words such as "anticipate," "believe," "expect," "seek," "plan," "should," "estimate," "project" and "intend" indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this presentation involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in "Risk Factors" and elsewhere in our annual report on Form 10-K for the fiscal year ended September 30, 2021 and our quarterly report on Form 10-Q for the quarter ended December 31, 2021. Other factors that could cause actual results to differ materially include: changes or potential disruptions in our operations, the economy, financial markets or political environment; risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters or the COVID-19 pandemic; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business development companies or regulated investment companies; general considerations associated with the COVID-19 pandemic; the ability to realize the anticipated benefits of the merger of Oaktree Strategic Income Corporation ("OCSI") with and into us (the "Merger"); and other considerations that may be disclosed from time to time in our publicly disseminated documents and filings.

We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

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Highlights for the Quarter Ended December 31, 2021

NET ASSET VALUE	•	$7.34, up 1% from $7.28 as of September 30, 2021, and up 7% from $6.85 as of December 31, 2020
PER SHARE	•	Quarterly increase primarily due to realized gains on certain investments and undistributed net investment income
ADJUSTED NET	• $0.17 per share, up 7% from $0.16 per share for the quarter ended September 30, 2021, and up 24% from $0.14 per share for the
	quarter ended December 31, 2020
INVESTMENT INCOME1
•	GAAP net investment income was $0.18 per share, consistent with $0.18 per share for the quarter ended September 30, 2021
	•	Declared a cash distribution of $0.16 per share, an increase of 3% from the prior quarter and 33% from one year ago
DIVIDEND	•	Seventh consecutive quarter with a distribution increase
	•	Distribution will be payable on March 31, 2022 to stockholders of record as of March 15, 2022
INVESTMENT	•	$300 million of new investment commitments; 8.1% weighted average yield on new debt investments
•	$241 million of new investment fundings and received $235 million of proceeds from prepayments, exits, other paydowns and sales,
ACTIVITY
	which had a weighted average yield of 7.5%
INVESTMENT	• $2.6 billion at fair value diversified across 140 portfolio companies
•	8.7% weighted average yield on debt investments, unchanged from September 30, 2021
PORTFOLIO
• No investments on non-accrual status
	•	0.98x total debt to equity ratio, as compared with 0.97x as of September 30, 2021
	•	0.95x net debt to equity ratio, unchanged from September 30, 2021
CAPITAL STRUCTURE	•	$44 million of cash and $550 million of undrawn capacity on credit facilities
& LIQUIDITY	• Upsized the senior secured revolving credit facility by $50 million; increased the total size to $1.0 billion
	• Amended the Citibank facility to, among other things, increase the size of the facility and extend the reinvestment period and
		maturity date
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1 See page 20 for a description of this non-GAAP measure.

Portfolio Summary

PORTFOLIO CHARACTERISTICS			PORTFOLIO COMPOSITION
(At fair value)			(As % of total portfolio at fair value; $ in millions)
					4%			First Lien - $1,804
$2.6bn		140	1%	7%
						Second Lien - $459
TOTAL INVESTMENTS		PORTFOLIO COMPANIES			18%			Unsecured - $27
					70%			Equity - $108
							Joint Ventures - $191
8.7%		$105mm		TOP TEN SUB-INDUSTRIES2,3
WEIGHTED AVERAGE YIELD ON		MEDIAN DEBT PORTFOLIO
DEBT INVESTMENTS		COMPANY EBITDA1		(As % of total portfolio at fair value)
					Application Software		16.2%
					Pharmaceuticals		5.4%
					Biotechnology		4.5%
87%		0		Data Processing & Outsourced Services		4.4%
			Personal Products			4.1%
			Industrial Machinery		3.4%
SENIOR SECURED		NON-ACCRUALS
			Health Care Services			3.1%
DEBT INVESTMENTS
			Internet & Direct Marketing Retail		2.7%
					Aerospace & Defense		2.7%
					Specialized Finance		2.6%
As of December 31, 2021
Note: Numbers may not sum due to rounding.

1. Excludes investments in negative EBITDA borrowers, structured products and recurring revenue software businesses.
2. Based on GICS sub-industry classification.
3. Excludes multi-sector holdings, which is primarily composed of investments in Senior Loan Fund JV I LLC (the "Kemper JV") and OCSI Glick JV (the "Glick JV"), joint ventures that invest primarily in

senior secured loans of middle market companies.

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Portfolio Diversity

DIVERSITY BY INVESTMENT SIZE

(As % of total portfolio at fair value)

Joint Ventures

7%

Top 10 Investments

19%

Next 15

Investments

21%

Remaining 113

Investments

52%

PORTFOLIO BY INDUSTRY1

(As % of total portfolio at fair value)

Industry	% of Portfolio
Software	16.4%
IT Services	6.8
Pharmaceuticals	5.4
Biotechnology	4.5
Chemicals	4.1
Personal Products	4.1
Health Care Providers & Services	3.9
Specialty Retail	3.7
Machinery	3.4
Diversified Financial Services	3.4
Internet & Direct Marketing Retail	2.7
Aerospace & Defense	2.7
Remaining 30 Industries	31.7
Joint Ventures	7.4

OCSL's portfolio is diverse across borrowers and industries

As of December 31, 2021
Note: Numbers may not sum due to rounding.	4
1 Based on GICS industry classification.