Oaktree Specialty Lending : Q2 2023 Earnings Presentation

SECOND QUARTER 2023	EARNINGS PRESENTATION
MAY 4, 2023	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, 2022 and our quarterly report on Form 10-Q for the quarter ended March 31, 2023. Other factors that could cause actual results to differ materially include: changes in the economy, financial markets and political environment; risks associated with possible disruption in our operations or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine), natural disasters or pandemics; 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; and other considerations 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.

Calculation of Assets Under Management

References to total "assets under management" or "AUM" represent assets managed by Oaktree and a proportionate amount of the AUM reported by DoubleLine Capital LP ("DoubleLine Capital"), in which Oaktree owns a 20% minority interest. Oaktree's methodology for calculating AUM includes (i) the net asset value ("NAV") of assets managed directly by Oaktree, (ii) the leverage on which management fees are charged, (iii) undrawn capital that Oaktree is entitled to call from investors in Oaktree funds pursuant to their capital commitments, (iv) for collateralized loan obligation vehicles ("CLOs"), the aggregate par value of collateral assets and principal cash, (v) for publicly-traded business development companies, gross assets (including assets acquired with leverage), net of cash, and (vi) Oaktree's pro rata portion (20%) of the AUM reported by DoubleLine Capital. This calculation of AUM is not based on the definitions of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts managed and is not calculated pursuant to regulatory definitions.

Unless otherwise indicated, data provided herein are dated as of March 31, 2023.

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Highlights for the Quarter Ended March 31, 2023

ADJUSTED NET INVESTMENT INCOME1

• $0.62 per share as compared with $0.61 per share for the quarter ended December 31, 2022
• GAAP net investment income was $0.63 per share, consistent with the quarter ended December 31, 2022
• The increase in adjusted net investment income was primarily due to a larger investment portfolio and the impact of higher base rates on the Company's floating rate debt portfolio

NET ASSET VALUE PER SHARE

• $19.66 as compared with $19.63 as of December 31, 2022
• The increase was primarily driven by net investment income in excess of the quarterly dividend

DIVIDENDS

• Declared a cash distribution of $0.55 per share, which was well-covered by adjusted net investment income of $0.62 per share
• Distribution will be payable on June 30, 2023 to stockholders of record as of June 15, 2023

INVESTMENT ACTIVITY

• $124 million of new investment commitments
• 11.9% weighted average yield on new debt investments
• $104 million of new investment fundings and received $162 million of proceeds from prepayments, exits, other paydowns and sales

		• $3.2 billion at fair value diversified across 165 portfolio companies
	INVESTMENT	• 11.9% weighted average yield on debt investments, up from 11.6% as of December 31, 2022 primarily due to higher base rates
	PORTFOLIO	• 88% senior secured
		• 88% of debt portfolio was floating rate
	CAPITAL STRUCTURE	• 1.14x net debt to equity ratio, as compared with 1.24x as of December 31, 2022
	& LIQUIDITY	• $44 million of cash and $335 million of undrawn capacity on credit facilities
	MERGER WITH OSI2	• Completed the merger of Oaktree Strategic Income II, Inc. ("OSI2") with and into us (the " OSI2 Merger") on January 23, 2023
	• Added $572 million of investments at fair value
Note: The Company completed a 1-for-3 reverse stock split on January 20, 2023, effective as of the commencement of trading on January 23, 2023. All share amounts and per share information included in	2
	this presentation reflect the reverse stock split on a retroactive basis.

1 See page 19 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)
$3.2bn		165	2%	4%			First Lien - $2,373
			6%
			13%			Second Lien - $413
TOTAL INVESTMENTS		PORTFOLIO COMPANIES					Unsecured - $59
								Equity - $131
					75%			Joint Ventures - $190
11.9%		$133mm		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	17.3%
					Pharmaceuticals	5.2%
					Biotechnology	4.0%
88%		88%		Data Processing & Outsourced Services			3.8%
			Health Care Technology			3.7%
			Aerospace & Defense	3.2%
SENIOR SECURED		FLOATING RATE
		Industrial Mach. & Sup. & Components	3.2%
DEBT INVESTMENTS
			Construction & Engineering	2.6%
					Broadline Retail	2.6%
					Specialized Finance	2.4%

As of March 31, 2023

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

6%

Top 10 Investments

20%

Next 15

Investments

21%

Remaining 138

Investments

53%

PORTFOLIO BY INDUSTRY1

(As % of total portfolio at fair value)

Industry	% of Portfolio
Software	18.2%
Pharmaceuticals	5.2
Financial Services	4.7
Professional Services	4.1
Health Care Providers & Services	4.0
Biotechnology	4.0
Real Estate Management & Development	4.0
Specialty Retail	3.9
Health Care Technology	3.7
Aerospace & Defense	3.2
Machinery	3.2
Chemicals	3.0
Remaining 29 Industries	32.8
Joint Ventures	6.0

OCSL's portfolio is diverse across borrowers and industries

As of March 31, 2023
Note: Numbers may not sum due to rounding.
1 Based on GICS industry classification.	4