Saratoga Investment Corp.

Fiscal Third Quarter 2022 Shareholder Presentation

January 6, 2022

Continued Growth and Outperformance in Q3

Fiscal Third Quarter 2022 Highlights:

  • Continued high quality portfolio and strong performance
    • Investment quality remains strong
      • 95.0% of loan investments with highest internal rating and zero non-accruals
    • Return on equity of 14.6% for LTM and 10.0% for Q3, net of realized loss on extinguishment
      • Net realized and unrealized gains of $3.9 million in Q3
    • Gross Unlevered IRR of 11.9% on total unrealized portfolio as of November 30, 2021
      • Fair value of $661.8 million is 2.9% above total cost of portfolio
      • Gross Unlevered IRR of 16.4% on $753.1 million of total realizations
  • Consistent strong long-term originations contribute to growing assets under management
    • AUM up 21% since year-end and up 19% since last year with originations of $58.6 million in Q3, offset by $66.4 million repayments
  • Base of liquidity and capital remains strong
    • Quarter-endliquidity allows growth of AUM by 39% and is mostly long-term
      • $144.1 million is cash, with almost $120 million net deployments since quarter-end fully accretive to earnings
    • New $50m credit facility with Encina Lender Finance reducing cost of capital by 100 bps
  • Increased dividend by $0.01, or 2%, to $0.53 per share for the quarter ended November 30, 2021, payable on January 19, 2022
  • Key performance indicators for Q3
    • Adjusted NII of $6.1 million, Adjusted NII per share of 53c, LTM ROE of 14.6% and NAV per share of $29.17
      • NAV per share is up 1.0%, or $0.20, to highest level yet
      • NAV per share has increased 16 of the past 18 quarters

2

Continued Asset Growth and Strong Credit Quality

Asset Base Expansion Trend

Overall Credit Quality Remains Strong

$700 $600 $500 $400 $300 $200 $100

$0

$662

$554

$486

$402

$343

$284 $293

$241

$206

$155

$80 $95

Investments at Fair Value ($ million)

100%

98.6%

99.0%

93.3%

95.0%

80%

96.8%

94.1%

60%

98.3%

94.2%

40%

82.4%

90.5%

64.3%

20%

0%

Performing Underperforming Expected Loss of Principal

Fair value of AUM increased 21%

95% of our SAR loan

year-over-year and 19% since

investments hold our highest

year-end

internal rating, up from 93%

last quarter; zero non-accruals

Fair value of $662m at Q3 FY22 is

at quarter-end*

3% above cost

* Excludes our investment in our CLO and our equity positions

3

Q3 FY22: Strong Financial Foundation and Momentum

Key Performance Metrics for the Fiscal Quarter

For the quarter ended

Nov 30, 2020

Aug 31, 2021

Nov 30, 2021

and as of

($ in millions except per share)

Net investment income

$4,471

$6,393

$5,197

Adjusted net investment income*

$5,531

$7,003

$6,091

Net investment income per share

$0.40

$0.57

$0.45

Adjusted net investment income per share*

$0.50

$0.63

$0.53

Net investment income yield

6.0%

7.9%

6.2%

Adjusted net investment income yield*

7.4%

8.7%

7.3%

Return on Equity - Last Twelve Months

11.0%

14.4%

14.6%

Fair value of investment portfolio

$546.9

$666.1

$661.8

Total net assets

$299.9

$324.1

$342.6

Investments in new/existing portfolio

$51.3

$116.0

$58.6

companies

Loan Investments held in "Performing" credit

92.8%

93.2%

95.0%

ratings

*Adjusted for accrued capital gains incentive fee expense and interest expense on 2025 Notes during call period, reconciliation to GAAP net investment income, net investment

income per share and net investment income yield included in our fiscal third quarter 2022 4 earnings release.

$10,000

$0

$10,000

$0

$0.70 $0.00 $0.70

$0.00

13%

0%

13%

0%

20%

0%

$1,000

$0

$400 $300 $200

$200

$0

100%

95%

90%

Long-Term Accretive NAV and NAV Per Share Growth

Net Asset Value and NAV per Share

(FY11 to Q3 FY22)

NAV: 6% increase this quarter and 13% increase from year-end and pre-COVID levels.

298% increase since Saratoga took over management.

(in millions)

NAV/Share: 1% increase this quarter and 7% increase from year-end and pre-COVID

levels. 34% increase since FY18 with increases 16 of the last 18 quarters.

$342.6

$30

$330

$320.3

$324.1

$29

$304.3

$299.9

$304.2

$29.17

$298.2

$28.97

$280

$282.2

$281.6

$28.70

$28

$27.13

$26.68

$27.25

$27

$224.3

$26.84

$230

$26

$26.19

$180.9

$186.8

$25.30

$25.11

$25

$180

$24.94

$24.47

$24

$24.06

$143.7

$23.62

$23

$130

$22.72

$122.6

$125.1

$127.3

$113.0

$22.96

$107.0

$22

$97.0

$21.08

$22.70

$22.06

$21.97

$86.0

$80

$21

Net Asset Value

NAV per Share

5

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Saratoga Investment Corporation published this content on 05 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 January 2022 21:17:09 UTC.