Bombora Investment Management Special Investments Growth …€¦ · Bombora Investment Management: Special Investments Growth Fund Bombora Investment Management –Special Investments

CONFIDENTIAL

Bombora Investment Management Special Investments Growth Fund

An Offering to Wholesale Clients | July 2019

An Offering to Wholesale Clients: Special Investments Growth Fund

Bombora Investment Management – Special Investments Growth Fund2

Overview

Investment Strategy

Investment Manager

• The Bombora Special Investments Growth Fund (Fund) uniquely provides investors with an actively managed portfolio of Pre IPO and Listed Equities in high growth companies

• The objective of the Fund is to construct a concentrated, high conviction portfolio of unique growth opportunities to deliver strong positive risk adjusted returns for investors over the medium to long term

Investment Performance

Fundamental bottom up research, screening, diligence and structuring to provide investors with actively managed exposure to:• Pre IPO & co-investment opportunities; • Active managed listed equities; and • Cornerstone investment situations

Offer Details

• Team consists of professional executives, each with over 20 years experience in investments over multiple industries and geographic markets• Bombora uses Operational Partners and Industry Specialists to help drive value in our investments• Experience spans funds management, direct investment, private equity, mergers & acquisitions and equity capital markets• Bombora team are proven operators being Executives, Directors and Advisors to both private & public companies

• The Fund has returned +44% (net of fees) up to June 2019, following the launch in June 2018• The Fund performance to date has been achieved with high levels of cash holdings and excludes further upside generated from incentive securities issued • The Bombora strategy prior to the Fund launch (2013 – 2018) generated Net Performance of 2.3x money on money returns assuming $1.00 invested in all

capital raisings. The IRR over this period has been 29.7%

Fund Structure Unregistered Managed Investment Scheme structured as an Australian Unit Trust for WHOLESALE CLIENTSInformation Memorandum June 2018Fee Structure 1.5% Management Fee & 20% Performance Fee for fund outperformance over hurdle rate of 7%

Experienced Management Team complemented by Operational Partners and Industry Specialists with a focussed growth mandate.

Bombora Philosophy and Points of Difference

Bombora Investment Management – Special Investments Growth Fund 3

Bombora Investment Management: Special Investments Growth Fund


BomboraAn indigenous Australian term for an area of submerged rock shelf, reef or sand bank that is located some distance from the shoreline that causes waves to surge as they pass over it.

1 Strong track record

• Identified, structured and completed eight public market initial public offerings since 2013• Prior to Fund launch, raised >$250m to support initial public offerings, secondary raisings

and block trades in these companies• Pre-Fund strategy annual return over 5 years is ~30%• In its first year since inception the Fund has returned +44% (net of fees), following the

fund launch in June 2018

2 Highly experienced team

• Background of Bombora team spans funds management, direct investment, private equity and M&A and significant equity capital markets experience

• Bombora team are proven operators as Executives, Directors and Advisors to both private & public companies

3 Access to opportunities

• Diverse background of Bombora investment team provides large number of high quality and unique investment opportunities

• Active corporate finance network of advisors and brokers

Bombora is taking applications for the Special Investments Growth Fund, to provide investors with actively managed exposure to pre IPO & co-investment opportunities, active managed listed equities and cornerstone investment situations.

Bombora utilises our network of industry experts in identifying, analysing, structuring and managing our investments. This network combined with Bombora’s extensive transactional capital markets experience is combined to provide unique investment opportunities that meet targeted returns.

Bombora Team Experience


The Bombora team is made up of the Investment team, complemented by Operational Partners and Industry Specialists and supported by an Investment Committee

Performance To 30 June 2019


Investment Committee

Date of Fund Launch 1 June 2018

Date of Fund Seeding 30 September 2018

Returns Since Inception 43.9%

Outperformance of Small Industrials(Since Inception)

39.2%

Performance Metrics

Rolling Returns

Last Month 9.9%

Last 3 Months 23.7%

Last 6 Months 42.3%

Last 12 Months 44.2%

PERFORMANCE SINCE INCEPTION

❑ The Fund returned +43.9% (net of fees) in the period since inception (following the fund launch on 1 June 2018)

❑ The ASX Emerging Companies Index and the ASX Small Industrials Index have returned -6.4% and +4.8% over the same period respectively

❑ $100,000 invested with the Fund at inception would have grown to $143,940 as at 30 June 2019 net of fees

FUM growth To 30 June 2019

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FUM GROWTH SINCE INCEPTIONPost Phase 1 (September 2018) Total FUM has grown +69% vs Netflows +25%

Bombora Investment Management – Special Investments Growth Fund

PKS IPO

Momentum and Strategy of Bombora

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Within 12 months, Bombora has achieved Target Weight


Strategic Growth Phases of Bombora:Phase I (June 2018 – Sept 2018) – Seed Fund:➢ 80% of cumulative FUM net inflows ending June 2019 were secured as at September 2018Phase II (Sept 2018 – June 2019) – Prove Performance:➢ FUM ex. Cash has returned +244% since Sept 2018 despite little new FUM inflowsPhase III (July 2019 onwards) – Capital Raise to increase FUM and continue to deliver targeted risk-adjusted returns

Bombora Special Investment Growth Fund Target Portfolio


Concentrated high conviction portfolio of ~20 holdings

Diversification of investment theme and industry sector

Detailed due diligence process with unanimous Investment Committee approval required for each investment

Strong selling discipline

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Bombora Special Investment Growth Fund Stock Selection


Target Industry Sectors

• Technology

• Telecommunications

• Media

• Healthcare

• Financial Services

• Infrastructure and related services

• General Industrial

• Energy – including Renewables

Screen & Identify

StructurePre IPO Invest

ASX Listing M&A Exit

A typical pre IPO investment lifecycle - Bombora Board Representation and Active Management of Investment throughout

Target Company Characteristics

• Earnings growth

• Attractive industry dynamics

• Strong gross margins

• Strong management and culture

• Sustainable competitive advantage

• Scalable business model with operating leverage

• Strong balance sheet and sustainable funding model

• Valuation discount to peers

• Identifiable catalyst for closing valuation discount

• Example: Pacific Knowledge Systems (ASX:PKS)

Bombora Special Investment Growth Fund Current Holdings

Holdings Commentary

➢ The Fund Portfolio ending on 30 June 2019 consisted of 25% Unlisted holdings, 52% Listed holdings and 22% Cash

➢ Listed FUM holdings carries the conversion benefit from Pre-IPO holdings to when respective companies list on the ASX

➢ Key investments within the listed space include EML Payments Limited (EML), a payments processing technology businesss, as well as Pacific Knowledge Systems (PKS), a leading healthcare informatics company that enables automation efficiency in pathology and hospitals by capturing and storing knowledge from specialists in its knowledge engine to support replicated clinical decisions

➢ In our Pre-IPO holdings, a core investment is Orbx which develops a library of digital flight simulation scenery which is sold to the consumer-based flight simulator software market. Another Pre-IPO holding is Ultraserve Limited that provides the full cloud computing software as a service (SaaS) stack for business’s cloud computing needs to the global e-commerce market

➢ Our key Special Opportunities investment includes CMint, an unlisted public company created as a special purpose investment vehicle. BIM is currently at advanced internal screening stages on a number of prospective Pre-IPO investments. By the establishment of CMint, the Manager is seeking to replicate the models of SPV’s QPro, RPro, and Orbx

Current Portfolio Composition

11Bombora Investment Management – Special Investments Growth Fund

CONFIDENTIAL

Appendix

Key fund features


Fund Name Bombora Special Investments Growth Fund (Fund) is an unregistered managed investment scheme structured as a unit trust

Investment Manager and Trustee Bombora Investment Management Pty Limited (Bombora) ACN 625 413 390

Custodian and Administrator Mainstream Fund Services (part of the ASX listed entity Mainstream Group Holdings (ASX: MAI)

Fund Type Pre-IPO and Australian listed equity portfolio

Suggested Investment Horizon 3-5 years

Investor Eligibility Wholesale Clients, as defined in the Corporations Act 2001

Minimum Investment $50,000

Minimum Redemption $50,000 (subject to a minimum balance of $50,000)

Buy/Sell Spread 30 basis points

Fees and Expenses a. Management fee of 1.5% p.a. of the Fund’s net asset value calculated and payable monthly in arrearsb. Performance fee of 20% p.a. of the returns in a performance fee period exceeding the higher of the previous high-water mark

and the hurdle rate. The performance fee is calculated and payable quarterly in arrearsc. The Trust incurs cost recovery to a maximum of 1% p.a. of the Trust’s net asset value

Hurdle Rate 7% p.a. (inclusive of management fee and cost recovery accrued)

Application Frequency Monthly

Valuations Unit price calculated monthly

Distributions Annually as at June 30. Distributions are automatically reinvested unless instructed otherwise

Redemptions Quarterly with 30 days notice

Bombora Past Performance – Pre Fund Launch


Note: As at June 2018; (1) First re-capitalisation completed; (2) Includes capital raisings completed in RHP, JKL, AHL, LVT, JAN and ACF, over an investment period between Apr-14 to June-18.

Date of original investment1 Mar-13

Number of historical capital raisings 23

Assumed investment in each opportunity $1.00

Total invested amount across all investments $23.00

Current value of all investments $44.04

$ return on investments $21.04

Money on Money return 1.9x

IRR return over period since March 2013- excludes further upside generated from incentive securities

issued as part of capital raisings and capital distributions

27.5%

Performance summary to June 18 (launch of BSIG Fund)Previous investments

rhipe Limited (ASX: RHP)

JustKapital Limited (ASX: LAW)

Ahalife Limited (ASX: AHL)

LiveTiles Limited (ASX: LVT)

Janison Education Group Limited (ASX: JAN)

Acrow Formwork and Construction Services Limited (ASX: ACF)

IRR of 27.5% generated for investors across historical Bombora investment opportunities

Investment Process


Opportunity sourcing

A key strength of the Bombora team is the capability to source truly unique opportunities ahead of the market• Diverse backgrounds of the Bombora team lead to large number of potential opportunities being received on a highly frequent basis• Bombora’s Operational Partners and Industry Specialists play a key role in sourcing unique opportunities• Open mandate of the Fund enables structuring of potential transaction to best suit Bombora strategy

Phase 1: Initial opportunity

screening

Bombora investment experience ensures a reliable and rigorous screening process• Phase 1 screening of investment opportunities will include: review of company financials and model testing; detailed valuation analysis based on DCF

and earnings multiple, comparable companies and comparable transaction analyses; meetings with key management and shareholders; and site visits• Insights from Bombora’s Operational Partners and Industry Specialists plays a key role in screening opportunities• Approval from Investment Committee will be required to move beyond Phase 1 screening

Phase 2:Due diligence

High Conviction positions drive detailed due diligence being undertaken following initial opportunity screening• Bombora adopts a deep dive to ensure suitability for genuine investment partnership with company• Further, detailed internal diligence will first be conducted, including further stress testing of financial model and further interviews with

management and customers • Formal due diligence reports will be procured, including legal, financial, technical and commercial when required

Investment Committee Approval

Diverse and experienced Investment Committee need to unanimously approve the execution of any transaction• A detailed Investment Committee Paper will be prepared by the Bombora deal team, including summary of findings of all internal and external

diligence reports. Include targeted strategy and outcome of investment• Opportunities may be rejected, required further diligence under Step 3, or be accepted for investment

Ongoing reporting and monitoring

Active investment positions with a view of partnership designed for Bombora to stay on top of performance• Bombora team will work closely with management and Board of portfolio companies, acting as an investment partner to unlock the growth

potential of the company

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Current Fund Positions

Example Unlisted HoldingsExample Listed Holdings

PKS is a leading healthcare informatics company that provides a proprietarysubscription-based Clinical Decision Support (CDS), “RippleDown”, that enablesautomation efficiency in pathology and hospitals by capturing and storingknowledge from specialists in its knowledge engine to support replicated clinicaldecisions. The Manager’s investment into PKS was initially through a SpecialPurpose acquisition vehicle QPro Limited (QPro).

EML is a payments processing technology business. Their portfolio offersinnovative financial technology that provide solutions for payouts, gifts,incentives and rewards, and supplier payments. EML issues mobile, virtual andphysical card solutions to some of the largest corporate brands around theworld, processing billions of dollars in payments each year, and manages morethan 1,200 programs across 21 countries in North America, Europe and Australia.The Manager views EML as a high growth business at a reasonable valuation.

UWL is a fixed wireless broadband provider with proven high-speed performancewith the potential to provide an alternative solution to the NBN on aninternational scale. The Manager reduced part of the Fund’s holding in UWLfollowing strong stock price appreciation after the release of 1H19 results andacquisition announcements to reweight the portfolio holding. The Manager’sinvestment into UWL was initially through a convertible note issuance as part ofthe Fund’s Special Situations portfolio. The company operates in an attractiveconsolidating industry with a strong board and management team.

The Manager made a new investment into PGL, a financial technology businessthat operates in the Australian small business lending sector. Prospa’s businessmodel is focused around providing funds to small businesses who seek equity ordebt financing but are unable to access them due to structural barriers fromtraditional outlets such as collateral requirements by banks. Bombora’sOperational Partner Greg Ruddock was a seed investor in Prospa and remains as aNED.

Vamp is a global market leading social media influencer marketing platform. Vamp has2 primary divisions being Full-service and Self-service. Through the Full-Service division,Vamp utilises its software platform to assist brands with managing and executing theirentire campaign management process. In the Self-Service division, Vamp enablesbrands to access its platform and charges a monthly usage fee on a SaaS recurringincome operating model.

Orbx is highly profitable and has significant growth potential. The company hasapproximately 115k global user accounts. The strategic opportunity for Orbx is tocreate product pricing and marketing activities to attract new consumer, commercialand gaming partners to drive sales. The board is focused on transitioning from a salesper product model to SaaS model to increase customer stickiness. The company has aclear product development road map and recently hired a dedicated in-housedevelopment team to increase the pace of product releases.

Ultraserve is an enterprise software product that provides the full cloud computingsoftware as a service (SaaS) stack for business’s cloud computing needs to the global e-commerce market. The company strategy is to capture significant market share in itsUS$500m+ target market of the mid enterprise retail and e-commerce segmentrequiring cloud computing services. The company has secured partnerships withBroadleaf, AWS and Adobe as part of its cloud services ecosystem.

Micromine is a leading global provider of general mine planning software solutions.Micromine has three key offerings; Micromine, an exploration and mining solution,including pit optimisation, scheduling and processing of third party data; Pitram, a fleetmanagement and mine control platform that records, manages and processes minesite data, used in development and production phases; and Geobank, a geological datamanagement tool, comprising data collection, management, validation, reporting andfield logging.

16Bombora Investment Management – Special Investments Growth Fund

Mobile Digital is a software tool that enables organisations to design, personalise andsend branded messages direct to smartphone inboxes. It’s use-cases includeadvertising (e.g. MMS/SMS campaigns to reactivate clients, referral marketing, etc.)and communication revenue streams (e.g. digital renewal notices sent to potentialcustomers’ inbox on behalf of clients).

Investment Team and Operational Partners


Mike HillManaging Director and Portfolio Manager

Gregg TaylorChief Investment Officer and Portfolio Manager

Josh MayPartner and Investment Committee

• Mike is a former Operational Partner of Ironbridge from 2004 to 2014, a private equity firm with $1.5bn funds under management, at which he led and was involved in a number of transactions across a variety of different industries. Prior to this, Mike was a Partner of Ernst & Young

• Co-Founder of Bombora Group in 2014

• Current Board positions include Chairman of the Board of Janison Education Group Limited (ASX: JAN), PKS Limited (ASX:PKS) and AHAlife Holdings Limited (ASX: AHL). Non Executive Director on Acrow Formwork and Construction Services Limited (ASX:ACF)

• Formerly ASX Director of RHP, PRT, LVT, LAW

• Member of the Australian Institute of Chartered Accountants and holds a Bachelor of Arts Degree (Accountancy) from the University of South Australia

David WillingtonPartner and Investment Committee

• Gregg has 20 years of international business experience in financial markets, technology, sports administration, media and retail

• Most recently an Investment Executive at Blue Ocean Equities responsible for equity research, and capital markets services for ASX and NZX listed companies. Prior to this, his other roles included Investment Manager with Schroders Investment Managers. Gregg has also founded and managed multiple global operating businesses in the sports, retail and media sector

• Currently serving on the Board of Acrow Formwork and Construction Services Limited (ASX: ACF) and on the Board of Cronulla Sharks Rugby League Football Club and Cronulla Sharks Leagues Club

• Bachelor of Commerce Degree from University of Wollongong and is a CFA Charter holder

Bryan ZekulichPartner and Investment Committee

• Josh was previously a Director within Ernst & Young’s M&A Advisory Practice in Sydney, before co-founding Oaktower Partnership in 2005, an independent Corporate Advisory business, based in Sydney and Melbourne. Advisory transaction themes have included private equity, entrepreneurial clients seeking growth capital, succession planning for large established private businesses, and sale of non-core assets for large corporations

• Currently serving on the Board of Acrow Formwork and Construction Services Limited (ASX: ACF)

• Josh has a Bachelor of Arts Degree (Accountancy) from the University of South Australia and is a member of the Australian Institute of Chartered Accountants

• David has over 25 years’ experience in corporate finance and investment banking and during his career has primarily advised companies in the technology, media and telecommunications industry

• David also sits on the Board of Janison Education Group Limited (ASX: JAN), Vamp (Chairman) and Orbx

• Previously, David was a Senior Partner at Deloitte Corporate Finance and prior to that was an investment banker with NM Rothschild and Citi

• David has a Bachelor of Commerce, is a member of the Institute of Chartered Accountants in Australia and is a Fellow of the Financial Services Institute of Australia

Complemented by Industry Specialists and Portfolio Analyst(over page)

• Bryan was the Managing Partner of EY’s Private Equity Sector for over 15 years. Bryan is also a Board member, Treasurer and Company Secretary of the Australian Investment Council (formerly the Australian Private Equity and Venture Capital Association “AVCAL”).

• Significant experience in the M&A market in Australia including mergers & acquisitions, divestments, strategic finance, capital raisings and advising on the Australian stock exchange listing requirements.

• Bryan has a Bachelor of Commerce from The University of Western Australia.

Industry Specialists


Chris ColferIndustry Specialist

Brett ChenowethIndustry Specialist

Greg RuddockIndustry Specialist

• Chris has Chairman, Chief Executive and Board Director experience with an exemplary track record in multiple industry sectors including luxury goods, branded goods and E-Commerce. He is highly skilled in strategy, retail, e-commerce, business development and marketing

• He was the longest serving Non-Executive Board Member of online luxury fashion retailer NET-A-PORTER, where he oversaw the initial investment by Richemont, saw its transformation into a billion-dollar company, and subsequently led the full acquisition in February 2010

• Christopher currently sits on a number of technology and consumer goods boards, including Nude by Nature, Grown Alchemist, Mobile Digital, AHAlife Holdings Ltd (ASX: AHL) and LYST

Julian Knights AOChair Investment Committee

• Brett has over 25 years of professional experience working primarily in media, technology, telecommunications and digital businesses, most recently as Managing Director and Chief Executive Officer of APN News and Media Limited

• Co-Founder of Bombora Group in 2014

• Currently Chairman of Madman Entertainment, Canberra Data Centres (CDC), Yellow Group (NZ) and Creative Enterprises Australia (CEA). He serves as the Chairman of the Advisory Board of H.R.L Morrison & Co. and sits on the boards of Janison Education Group Limited (ASX: JAN), Sellable Pty Ltd and Surfing Australia

• Brett has a Bachelor of Laws and a Bachelor of Economics from the University of Queensland and a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia

• Founder and Joint CEO of Ironbridge successfully raising and investing the 2001 $450m fund and the 2006 $1.05bn fund

• Prior to forming Ironbridge, Greg joined Gresham Private Equity in 1999 and had 12 years operational experience at Wesfarmers and with diversified listed company Avatar

• Has been a member of the Ironbridge Investment Committee since inception and has represented the Ironbridge Funds on the Boards of Stardex, Super A-mart, EnviroWaste, Easternwell, FleetPartners (now Eclipx), ISGM and AOS. Greg is currently a Director of Eclipx Group Limited (ASX: ECX) and Navigator Resources Limited (ASX: NAV)

• Greg has been a Director of Prospasince 2015 which is pending an IPO in 2018

• Greg qualified as an accountant and holds a Bachelor of Commerce degree from the University of Western Australia

• Founding Partner of Gresham Private Equity (majority owned by Wesfarmers) and Founding Partner of Ironbridge in 2001

• 15 years of private equity experience raising approximately $1.75bn of funds under management and 17 years investment banking experience in the UK and Australia

• In 2008 served as the Chairman of AVCAL (Australian Private Equity and Venture Capital Association)

• In 2013 was appointed as the Chair of the Major Performing Arts Board of the Australia Council

• Julian qualified as a solicitor and holds BComm and LLB degrees from the University of the Witwatersrand

Industry Specialists will support the Investment team and work directly on portfolio investments.

Advait JoshiPortfolio Analyst

• Advait is a Portfolio Analyst at Bombora. Prior to joining the Bombora team, he was an Equity Research cadet at UBS investment bank working in the small caps team. He has also interned at Tribeca Investment Partners

• Advait is the youngest global winner of the ASX (Opens) Share market game

• Advait is in the process of completing a Bachelor of Commerce degree from UNSW

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Case study: Orbx Simulation Systems – Pre-IPO Raising by Bombora

Orbx Investments Limited

“IPO Company”

A$2.6m

100% of Orbx Simulation Systems Ltd

New Investors

Bombora Cornerstones capital raising into Orbx Investments Limited

All existing Shareholders roll into IPO Company

• Orbx is a software content company that develops and sells simulation graphics scenery to users of flight simulation programs. The business sells its software products to customers all over the world which are downloaded and used as an add-on to flight simulation software programs. Orbx currently has a digital library of 183 products sold on www.orbxdirect.com

• Orbx is pursuing a capital raise for:

• To fund growth strategies:

• Accelerate product development (USA regions in roll out now)

• To corporatize the business through executive recruitment

• Accelerate pricing and marketing strategies – SaaS pricing and digital marketing

• All Capital Raised is for primary growth, no shareholders are exiting or taking cash off table

• Pre-money valuation of $43.5 m and post money $46.8m (assuming $300k for costs)

• Implied multiples are compelling:

Overview Deal Structure

• $2.6m Pre-IPO capital raise at $0.008 per share into Orbx Investments Ltd (“the Group”), a special purpose pre-IPO public unlisted vehicle. Investors will receive 0.0307635 options per share subscribed to under this offer exercisable at $0.01 and an equal number of options at $0.013 exercise price

• At the completion of this offer there will be 303m options on issues. Options will have a five year term and 151.5m will be exercisable at $0.01 per share and 151.5m will be exercisable at $0.013

• On completion of the capital raising, the Group will acquire 100% of the equity in Orbx Simulation Systems Pty Ltd (“Orbx”) on a scrip-for-scrip basis

Summary Financial Ratios FY19F FY20F

Revenue 5.9 6.1 11.2

EBITDA 4.8 3.7 6.6

EV / Revenue (x) 7.1x 3.9x

EV / EBITDA (x) 11.8x 7.6x

EV / EBIT (x) 14.5x 8.3x

P/E (x) 24.6x 9.0x

Summary Financial Ratios FY19F FY20F

Revenue 5.9 6.1 11.2

EBITDA 4.8 3.7 6.6

EV / Revenue (x) 7.1x 3.9x

EV / EBITDA (x) 11.8x 7.6x

EV / EBIT (x) 14.5x 8.3x

P/E (x) 24.6x 9.0x


http://www.orbxdirect.com/

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Case study: EML Payments Limited (ASX:EML)

Overview of EML Payments


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EML Payments Limited (ASX:EML) - Volume EML Payments Limited (ASX:EML) - Share Pricing

Share Price Movement: Fund Cost vs SP as at 30 June 2019

Fund Cost Price: $1.96

30 June 19: $2.96

Thesis

• EML is a provider of prepaid, reloadable and virtual account number payment services in Australia, Europe, and North America

• EML provides prepaid and reloadable gift cards (such as the Fugitsu incentives Gift Card and the Ladbrokes card) and issues virtual account numbers and handles the complete payments relationship between clients and end-users. This enables EML to generate a number of revenue streams throughout the payments relationship including establishment fees, transaction and FX fees, breakage and interest earnings

• In FY20e, we believe EML is likely to beat guidance and consensus on both Revenue and EBITDA metrics, driven by organic and inorganic growth

• EML has a track record of strong financial performance with a Revenue CAGR of +75% between FY16a-18a and is forecast to grow at +27% CAGR between FY18a-22e. EML’s EBTDA has grown at a CAGR of +103% between FY16a-18a and is forecast to grow at +35% CAGR from FY18a-22e

• We see multiple catalysts for EML going into FY20e including the full year contribution of acquisitions, impacts of gaming contracts and Pointsbet’s USA online gaming expansion

• EML targets the instant online and physical gift card space which remains heavily fragmented with largely outdated payment processing mechanisms

• The company has a strong and experienced leadership team constituting of Peter Martin as Chairman (Ex-CEO of Rothschild Australia Asset Management), Thomas Cregan as CEO (Formerly the Executive VP of NetSpend Corporation) and Tony Adcock (>20 years’ experience as Director of various companies)

• EML remains at a discount to peers on a forward looking basis and we are confident of the stock’s continued positive momentum and growth

ASX Ticker Description Listing date AcquisitionsMarket cap range since listing (1) Bombora Group Directors

RHP Founded in 2003 as NewLease, rhipe has grown to become the leading cloud software licensing expert in the Asia-Pacific region

Apr 14 FRR: A$2mrhipe: A$13mnSynergy: A$25m

A$2m – A$400mCurrently A$397m

Mike Hill(resigned 26 March 2019)

LAW Leading litigation funder offering finance to corporate and individual plaintiffs who lack the resources to pursue claims

Apr 15 ACJ: A$6mJustKapital: A$14mMacquarie Medico: A$19mPortfolio of cases: A$17m


Mike Hill(resigned 27 November 2017)

AHL New York Based luxury online goods marketplace with over 4,000 designers from more than 45 counties

Jul 15 INT: A$2mAHAlife: A$20mGrowth Capital: A$6m (Oct-17)


Mike Hill(Currently Chairman)

LVT Offers digital workplace platforms, including modern user experience-focused solutions to the enterprise, education and SMB markets

Sep 15 MOU: A$2mLiveTiles: A$12mGrowth Capital: A$12m (Sep-17)Growth Capital: A$20m (Feb-18)


Mike Hill(resigned 5 September 2017)

JAN Digital education provider and developer of platforms to digitise large-scale exams

Dec 17 HJB: A$2mJanison Education Group: $26mIPO raise: A$10m


Mike Hill (Currently Chairman)Brett Chenoweth (NED)David Willington (NED)

ACF Provider of formwork and other services to the infrastructure and construction industries

Apr 18 NMG: A$2mAcrow: $23m (raise size $27m)


Mike Hill, Gregg Taylor, Josh May(All NEDs)

PKS Provides proprietary subscription based Clinical Decision Support (CDS) system “RippleDown” that automates the decision-making process in healthcare organisations.

June-19 IPO: $19.5m Currently $23m Mike Hill(Currently Chairman)

Public transaction experience

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The Bombora group has a strong history of taking growth companies to the public markets

(1) As at 30 June 2019

>A$200m raised from institutions to support acquisitions


Case study: rhipe growth journey - Pre Fund Launch


rhipe has experienced rapid growth in revenue and scale, from $40m revenue in FY12 to c.$197m in FY18 and now has a presence in multiple countries across South-East Asia

• rhipe offers cloud licensing of major software providers (including Microsoft, Citrix and VMware), subscription management tools, and value added services to IT services providers who bundle subscription offers to end users

• The Bombora Group successfully assisted rhipe in listing on the ASX with a A$0.7m capital raising in April 20141

• The listing followed the Founder unexpectedly passing away immediately prior to the planned listing date

• As a result of continued Bombora involvement with the company, rhipe was still able to complete the listing, enable CEO succession and continue to grow and expand the business

• rhipe revenue and EBITDA have grown >5x between FY12 and FY18

Commentary

Capital raising history

Date Size Price

FRR re-capitalisation Mar 20132 A$1.0m A$0.19

NewLease acquisition Apr 2014 A$0.7m A$0.36

Nsynergy acquisition Nov 2014 A$25.0m A$1.00

Current price per share A$2.86

Value today of $1 invested in all capital raisings A$25.86

Implied IRR on $1 invested in all capital raisings 48.3%

Note: As at 30 June 2019; (1) Announcement of acquisition; (2) Date of re-capitalisation of FRR

Sector Information technology

Industry Subscription software distribution

Location Australia, New Zealand, Singapore, Malaysia, Philippines, Indonesia, Thailand, South Korea

Investment date Apr-141

Current market cap A$397.5m

Acquisition value A$13.0m

Overview

Investment highlights

Initial Investment highlight Subsequent result

Subscription based revenue model

Increase in subscription revenue to c. $190m in FY18 from $40m in FY12

Expansion opportunities to high-growth Asian area

75% growth in Asia in FY18, opened South Korean business

Early focus on cloud-based business model

Rhipe has crossed 260,000 Microsoft CSP users, representing $42m annual run-rate revenue, after only 3 years since launching

Case study: Acrow Formwork and Construction Services - Pre Fund Launch


One of Australia’s largest formwork and construction services companies

Investment highlights

Investor distribution

Sector Engineering and construction

Industry Hire assets

Acquisition value A$23.0m

Investment date 09-Apr-181

Capital raising A$28.0m

Cornerstone support A$8.4m

Current market capitalisation A$53.2m

Overview

• NMG was able to secure the asset at a highly attractive valuation

• FY16 to FY18 Underlying Group EBITDA growth of 42% CAGR to $10.6m and high cash conversion

• High quality and versatile portfolio of hire assets with replacement value of +A$100m

• Strong underlying industry fundamentals

• Near term growth opportunities

• Early cornerstone support from leading industry participants

• High level of investor demand, book multiple times over-subscribed

Performance since listing (Apr-18)

Cornerstone demand$8.4m

Institutional and Retail demand$19.6m

Total raise size: A$28.0mNote: As at 30 June 2019; (1) Date of acquisition

+12.8%

+29.1%

S&P/ASX 200

Disclaimer


This Investor Presentation (Investor Presentation) contains information about Bombora Special Investments Growth Fund (Fund) and is dated 30 May 2018. The Fund is an unregistered managed investment scheme pursuant to section 601ED(2) of the Corporations Act 2001 (Cth) (Corporations Act). This Investor Presentation is issued by Bombora Investment Management Pty Ltd ACN 625 413 390 (Trustee or Bombora). This Investment Presentation is a summary of an information memorandum that has been prepared by Bombora with respect to the Fund (Information Memorandum), the Information Memorandum contains further information regarding the fund including the risks of investing in the Fund.

This Investor Presentation is intended solely for the use of the person to whom it has been delivered (Recipient) for the purposes of evaluating a possible investment in the Fund. It is not to be reproduced or distributed to any person (other than professional advisers of the Recipient) without Bombora’s prior written consent.

This Investor Presentation has been prepared for Wholesale Clients only , is not, and is not required to be a disclosure document or product disclosure statement within the meaning of the Corporations Act. This Investor Presentation may not contain the same level of disclosure as those documents and has not been, and is not required to be, lodged with the Australian Securities & Investments Commission (ASIC).

The Trustee is a corporate authorised representative of Ironbridge Capital Management Pty Limited ACN 105 880 108 (AFSL No. 237556) and is authorised to provide advisory, dealing and custodial services in connection with the Fund to Wholesale Clients only.

Investment Decision

Applicants should read this Investor Presentation and the Information Memorandum in their entirety before deciding to apply for Units. This Investor Presentation does not take into account the individual circumstances of any investor, nor does it give financial product advice. Accordingly, investors should obtain independent legal, financial and taxation advice before making a decision to invest in the Fund.

An investment in this Fund carries risks. An outline of some of the risks that apply to an investment in the Fund is set out in Section 6 of the Information Memorandum. Applicants are urged to consider this section of the Information Memorandum. carefully before deciding to apply for Units. No person is authorised to give any information or make any representation in connection with the Offer which is not contained in this Investor Presentation or the Information Memorandum. Neither the Fund, The Trustee nor its respective affiliates, related bodies corporate, directors, officers, employees, representatives or advisers accept any liability for any loss or damage suffered or incurred by the investor or any other person or entity however caused (including negligence) relating in any way to this Investor Presentation or the Information Memorandum.

Forward Looking Statements

This Investor Presentation contains forward looking statements. Forward looking statements are not based on historical facts, but are based on current expectations of future results or events. These forward looking statements are subject to risks, uncertainties and assumptions which could cause actual results or events to differ materially from the expectations described in such forward looking statements. While the Fund believes that the expectations reflected in the forward looking statements in this Investor Presentationare reasonable, no assurance can be given that such expectations will prove to be correct. The risk factors set out in Section 6, as well as other matters as yet not known to the Fund or not currently considered material by the Fund, may cause actual results or events to be materially different from those expressed, implied or projected in any forward looking statements. Any forward looking statement contained in this Investor Presentation is qualified by this cautionary statement.

Documents

Bombora Investment Management Special Investments Growth …€¦ · Bombora Investment Management: Special Investments Growth Fund Bombora Investment Management –Special Investments