Saratoga Investment Corp.

Fiscal Third Quarter 2023 Shareholder Presentation

January 11, 2023

Continued Growth and Strong Long-Term Performance

Fiscal Third Quarter 2023 Highlights:

  • Continued high quality portfolio and strong performance
    • Investment quality remains strong
      • 96.0% of loan investments with highest internal rating and only one non-accrual (1.0% of fair value, 1.6% of cost)
    • Return on equity of 4.0% for LTM, as compared to industry average of 3.1%
      • Net unrealized depreciation of $3.2 million for Q3, includes approximately $5.8 million net unrealized depreciation related to our CLO and JV investments in the broadly syndicated loan market, offset by approximately $2.6 million net unrealized appreciation on the remaining core BDC portfolio
    • Gross Unlevered IRR of 11.2% on total unrealized portfolio as of November 30, 2022
      • Fair value of $982.0 million is 0.5% below total cost of portfolio
      • Gross Unlevered IRR of 16.4% on $879.4 million of total realizations
  • Consistent strong long-term originations contribute to growing assets under management
    • AUM up 20% since year-end, up 3% since Q2 and up 48% year-over-year, with originations of $87.6 million in Q3, resulting from strong pipeline and healthy success in term sheets and deals executed
    • 98% of our interest earnings portfolio is floating rate
  • Base of liquidity and capital remains strong
    • Quarter-endpro forma liquidity allows growth of AUM by 18% and is mostly long-term
      • $47 million is cash with $25 million additional liquidity available on the credit facility
      • Application for third SBIC license approved, providing $107.3 million in additional current liquidity
      • Post quarter-end, a new $60.4 million 8.125% 2027 baby bond was raised (including green shoe)
  • Declared dividend of $0.68 per share for the quarter ended November 30, 2022, a $0.14 or 26% increase, paid on January 4, 2023
  • Key performance indicators for Q3 and versus Q2 - Adjusted NII of $9.1 million (up 31%), Adjusted NII per share of 77c (up 33%), LTM ROE of 4.0% (down 80bps) and NAV per share of $28.25 (down 2c)

2

Continued Asset Growth and Strong Credit Quality

$1,200

$1,000

Asset Base Expansion Trend

Overall Credit Quality Remains Strong

100%

$800

$600

$400

$200

$0

$95 $155

$206 $241

$284 $293

$982

$818

$554

$486

$402

$343

80%

60%

82.4%

90.5%

94.2%

98.3%

94.1% 96.8% 98.6% 99.0%

93.3%

98.5% 96.0%

Investments at Fair Value ($ million)

Fair value of AUM increased 48% year-over-year, 20% since year- end and 3% since last quarter

Fair value of $982m at Q3 FY23 is

0.5% below cost

Performing Underperforming Expected Loss of Principal

96.0% of our SAR loan investments hold our highest internal rating, up from 95.6% last quarter; one investment on non- accrual at quarter-end (1.0% of fair value, 1.6% of cost)*

* Excludes our investment in our CLO and our equity positions

3

Q3 FY23: Strong Financial Foundation and Momentum

Key Performance Metrics for the Fiscal Quarter

For the quarter ended

November 30,

August 31, 2022

November 30,

and as of

2021

2022

($ in millions except per share)

Net investment income

$5,197

$7,698

$9,877

Adjusted net investment income*

$6,091

$6,959

$9,126

Net investment income per share

$0.45

$0.64

$0.83

Adjusted net investment income per share*

$0.53

$0.58

$0.77

Net investment income yield

6.2%

9.0%

11.7%

Adjusted net investment income yield*

7.3%

8.2%

10.8%

Return on Equity - Last Twelve Months

14.6%

4.8%

4.0%

Fair value of investment portfolio

$661.8

$954.7

$982.0

Total net assets

$342.6

$337.2

$335.8

Investments in new/existing portfolio

$58.6

$140.6

$87.6

companies

Loan Investments held in "Performing" credit

95.0%

95.6%

96.0%

ratings

$9,000

$5,000

$10,000

$0 $0.50 $0.00

$0.50 $0.00

10%

5%

10%

5%

20%

10%

0% $1,000

$500

$350

$300 $150 $100

$50

98%

96%

94%

*Adjusted for accrued capital gains incentive fee expense, interest expense on SAK baby bond during the period that SAT baby bond was issued prior to repayment, and interest expense on SAF baby bond during the period that 2026 Notes was issued prior to repayment, reconciliation to GAAP net investment income, net investment income per share and net investment income yield4 included in our fiscal third quarter 2023 earnings release.

Long-Term Accretive NAV and NAV Per Share Growth

Net Asset Value and NAV per Share

(FY11 to Q3FY23)

NAV: 0.5% decrease this quarter. 290% increase since Saratoga took over management.

NAV/Share: Decrease of 0.1% this quarter. 23% increase since FY18 with increases 15

of the last 19 quarters.

(in millions)

$355.8

$345.2

$30

$342.6

$337.2

$335.8

$29

$330

$320.3

$324.1

$29.17

$29.33

$304.3

$298.2

$304.2

$28.69

$299.9

$28.97

$28.27

$28

$28.25

$282.2$27.13

$28.70

$280

$281.6

$26.68

$27.25

$27

$26.84

$26.19

$224.3

$26

$230

$25.30

$25.11

$25

$24.94

$180.9

$186.8

$180

$24.47

$24

$24.06

$143.7

$23.62

$23

$22.72

$125.1

$127.3

$130

$122.6

$22.96

$107.0

$113.0

$22

$97.0

$21.08

$22.70

$22.06

$21.97

$86.0

$80

$21

Net Asset Value5

NAV per Share

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Saratoga Investment Corporation published this content on 10 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2023 21:16:33 UTC.