Oaktree Strategic Income : Q1 2021 Earnings Presentation

First Quarter

Fiscal Year 2021

Earnings

Presentation

February 4, 2021

Nasdaq: OCSI

Forward Looking Statements

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 ("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, 2020. 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 of the parties to consummate the two-step merger (the "Mergers") of OCSI with and into Oaktree Specialty Lending Corporation ("OCSL") on the expected timeline, or at all; the ability to realize the anticipated benefits of the Mergers; the effects of disruption on our business from the proposed Mergers; the combined company's plans, expectations, objectives and intentions, as a result of the Mergers; any potential termination of the Merger Agreement; the actions of our stockholders or the stockholders of OCSL with respect to the proposals submitted for their approval in connection with the Mergers; 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.

Additional Information and Where to Find It

This communication relates to the Mergers, along with related proposals for which stockholder approval is being sought (collectively, the "Proposals"). In connection with the Proposals, each of OCSL and OCSI has filed relevant materials with the SEC, including a registration statement on Form N-14, which includes a joint proxy statement of OCSL and OCSI and a prospectus of OCSL (the "Joint Proxy Statement"). The Joint Proxy Statement was mailed to stockholders of OCSL and OCSI on or about January 21, 2021. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. STOCKHOLDERS OF OCSL AND OCSI ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE JOINT PROXY STATEMENT, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT OCSL, OCSI, THE MERGERS AND RELATED MATTERS. Investors and security holders are able to obtain the documents filed with the SEC free of charge at the SEC's website, http://www.sec.gov or, for documents filed by OCSL, from OCSL's website at http://www.oaktreespecialtylending.com, and, for documents filed by OCSI, from OCSI's website at http://www.oaktreestrategicincome.com.

Participants in the Solicitation

OCSL and OCSI and their respective directors, certain of their respective executive officers and certain other members of management and employees of Oaktree Fund Advisors, LLC and its affiliates, may be deemed to be participants in the solicitation of proxies from the stockholders of OCSL and OCSI in connection with the Proposals. Information about the directors and executive officers of OCSL and OCSI is set forth in the Joint Proxy Statement. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the OCSL and OCSI stockholders in connection with the Mergers is contained in the Joint Proxy Statement and other relevant materials filed with the SEC. These documents may be obtained free of charge from the sources indicated above.

No Offer or Solicitation

This presentation is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this presentation is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in OCSI, OCSL or in any fund or other investment vehicle managed by Oaktree or any of its affiliates.

Unless otherwise indicated, data provided herein are dated as of December 31, 2020.

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Summary of Results for the Quarter Ended December 31, 2020

Net Investment Income

Dividend

Net Asset Value

Investment Activity

Investment Portfolio

Capital Structure &

Liquidity

• $0.14 per share for the quarter ended December 31, 2020, up 7% as compared with $0.13 per share for the quarter ended September 30, 2020
• Increase primarily driven by lower interest expense resulting from lower outstanding borrowings and lower Part I incentive fees
• Declared a cash distribution of $0.155 per share, an increase of 7% from the prior distribution and the second consecutive quarterly distribution increase
• Distribution will be payable on February 26, 2021 to stockholders of record as of February 12, 2021
• $9.38 per share as of December 31, 2020, up 4% as compared with $9.05 per share as of September 30, 2020
• Increase primarily due to unrealized gains resulting from price increases on liquid debt investments and the impact of tighter credit spreads on private investment valuations
• $56 million of new investment commitments across 12 companies
• 8.2% weighted average yield on new investment commitments; 100% first lien
• Received $34 million of proceeds from prepayments, exits, other paydowns and sales
• $521 million of investments at fair value diversified across 78 portfolio companies
• 89% senior secured debt
• 7.3% weighted average debt portfolio yield, up as compared with 7.0% as of September 30, 20201
• $253 million of total debt outstanding as of December 31, 2020; 0.91x total debt to equity
• Liquidity was composed of $14 million of unrestricted cash and $87 million of undrawn capacity on credit facilities2; unfunded commitments were $33 million, approximately $29 million of which can be drawn immediately3

1. "Weighted average debt portfolio yield" is the annual stated yield earned plus net annual amortization of original issue discount or premium earned on accruing investments, excluding the Company's investments in OCSI Glick JV LLC (the "Glick JV"), a joint venture that invests primarily in middle market and other corporate debt securities.
2. Credit facility availability subject to borrowing base and other limitations.
3. Excludes unfunded commitments to the Glick JV. Approximately $5 million of unfunded commitments were ineligible to be immediately drawn due to certain milestones.

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Update on Pending Merger with OCSL

	•	On October 28, 2020, the Company entered into an agreement to merge with and into OCSL, an
		affiliated business development company managed by Oaktree, with OCSL as the surviving
		company
OCSL - OCSI Merger	•	Under the terms of the proposed merger, the Company's shareholders will receive an amount of
Agreement Summary		shares of OCSL common stock with a NAV equal to the NAV of shares of the Company's common

stock that they hold at the time of closing

• The combined company will trade under the ticker symbol "OCSL" on the Nasdaq Global Select

	Market
	• On January 19, 2021, OCSL filed an amended registration statement on Form N-14, which included a
	joint proxy statement of OCSL and the Company and OCSL's prospectus. The registration statement
	on Form N-14 was declared effective by the SEC on January 21, 2021. On January 21, 2021, the
	Company filed its definitive proxy statement with the SEC, which was mailed on or about January
Recent Developments	21, 2021 to the Company's stockholders of record as of January 19, 2021
• The Company's special meeting of stockholders and OCSL's annual meeting of stockholders are
	both scheduled for March 15, 2021 to vote on the matters described in the definitive proxy statement
	as required by the Merger Agreement
	• The transaction is expected to close soon after the meetings of stockholders in March 2021, subject to
	stockholder approval and other customary closing conditions

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