Oaktree Specialty Lending : Q3 2023 Earnings Presentation

THIRD QUARTER 2023	EARNINGS PRESENTATION
AUGUST 3, 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 June 30, 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 June 30, 2023.

1

Highlights for the Quarter Ended June 30, 2023

	ADJUSTED NET	• $0.62 per share, consistent with the quarter ended March 31, 2023
	INVESTMENT INCOME1	• GAAP net investment income was $0.63 per share, consistent with the quarter ended March 31, 2023
	NET ASSET VALUE	• $19.58 as compared with $19.66 as of March 31, 2023
	• The decrease was primarily driven by unrealized depreciation on debt investments, partially offset by undistributed net
	PER SHARE
	investment income
	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 September 29, 2023 to stockholders of record as of September 15, 2023
		• $251 million of new investment commitments
	INVESTMENT	• 12.6% weighted average yield on new debt investments
	ACTIVITY	• $243 million of new investment fundings
		• Received $261 million of proceeds from prepayments, exits, other paydowns and sales
		• $3.1 billion at fair value across 156 portfolio companies
	INVESTMENT	• 12.3% weighted average yield on debt investments, up from 11.9% as of March 31, 2023 primarily due to higher base rates
	PORTFOLIO	• 88% senior secured
		• 86% of debt portfolio was floating rate
		• 1.14x net debt to equity ratio
		• $60 million of cash and $483 million of undrawn capacity on credit facilities
	CAPITAL STRUCTURE	• Amended syndicated revolving credit facility; increased size to $1.2 billion and extended maturity to 2028 while keeping
	& LIQUIDITY	pricing, advance rates and other general terms unchanged
		• Consolidated Citibank credit facility acquired from Oaktree Strategic Income II, Inc. with existing Citibank facility and
		extended maturity to 2027
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
	this presentation reflect the reverse stock split on a retroactive basis.
1 See page 18 for a description of this non-GAAP measure.	2

Portfolio Summary

PORTFOLIO CHARACTERISTICS			PORTFOLIO COMPOSITION
(At fair value)			(As % of total portfolio at fair value; $ in millions)
$3.1bn		156	2%	4%			First Lien - $2,400
			6%
			12%			Second Lien - $378
TOTAL INVESTMENTS		PORTFOLIO COMPANIES
						Unsecured - $52
								Equity - $119
					76%			Joint Ventures - $190
12.3%		$119mm		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	17.4%
					Biotechnology	4.1%
				Data Processing & Outsourced Services	4.0%
88%		86%			Pharmaceuticals			3.7%
			Health Care Technology			3.7%
			Aerospace & Defense	3.6%
SENIOR SECURED		FLOATING RATE
		Industrial Machinery & Sup. & Cmpnts.	3.2%
DEBT INVESTMENTS
				Broadline Retail	2.6%
				Real Estate Operating Companies	2.4%
					Specialized Finance	2.1%

As of June 30, 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.

3

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 129

Investments

53%

PORTFOLIO BY INDUSTRY1

(As % of total portfolio at fair value)

Industry	% of Portfolio
Software	18.1%
Specialty Retail	5.2
Real Estate Management & Development	4.4
Financial Services	4.1
Professional Services	4.1
Biotechnology	4.1
Health Care Providers & Services	3.9
Pharmaceuticals	3.7
Health Care Technology	3.7
Aerospace & Defense	3.6
Machinery	3.2
Chemicals	3.0
Remaining 30 Industries	32.8
Joint Ventures	6.1

OCSL's portfolio is diverse across borrowers and industries

As of June 30, 2023
Note: Numbers may not sum due to rounding.
1 Based on GICS industry classification.	4