Title: PowerPoint Presentation URL Source: https://is.gd/nV8GqA Published Time: Wed, 12 Mar 2025 14:27:14 GMT Markdown Content: Literacy Capital plc highlights # 492.8p £9.1m NAV per ord. share 2 Capital invested # (2.3)% £3.0m Q4 NAV per share Proceeds received # (1.5)% £641k Change in NAV per share in last 12 months Q4 charitable donation provision # Q4 2024 │ Factsheet → for the three months to 31 December 2024 Helping to build great businesses Our purpose is to invest in and support UK companies and help their management teams to achieve long-term success. Our closed-ended, permanent capital structure means we can be a long-term, highly ambitious partner. We are focused on smaller businesses, where our expertise can greatly enhance the size and value of these companies, contributing to superior returns for BOOK shareholders. We are also proud to have a charitable mission helping disadvantaged children in the UK learn to read. Donations equivalent to 0.9% 1 of NAV are made each year. Donations since the set up of Literacy Capital in 2017 now amount to £11.2m. Key facts on 31 December 2024 Net assets 2 £296.6 million Net assets per ord. share 2 492.8p Share price (mid-price) 454.0p Premium / (discount) (7.9)% Management fee 1 0.9% Trading on Specialist Fund Segment (SFS) Ticker BOOK Ordinary shares in issue 3 60,175,000 ISIN GB00BMF1L080 Published on 28 February 2025 Breakdown of gross assets 4 by asset type Contact information Literacy Capital plc, 3 rd Floor, Charles House, 5-11 Regent Street St. James’s, London, SW1Y 4LR 0203 960 0280 │ www.literacycapital.com > 1 From 1 Jan 2025, the management fee & annual donation will be 1.5% & 0.5% respectively. See 8 Oct 2024 RNS announcement for more details. > 2 Net assets per share calculated post dilution from the warrants in issue, which is calculated on a straight-line basis over the vesting period. This allows a single NAV figure to be reported (rather than diluted & undiluted figures). Net assets and NAV per share exclude the uplift from the activity since period end disclosed on page 2. Net assets and NAV per share after this adjustment are £300.4m and 499.2p respectively. > 3 Excludes warrants in issue (612,500 allotted on 31 December 2024). > 4 Gross assets of £329.2m, before borrowings, compared to net assets of £296.6m. All figures and percentages rounded to one decimal place. % total return 3 months 1 year 3 years Since Admission 5 Since inception 6 BOOK net assets per share (2.3)% (1.5)% +77.8% +206.8% +392.8% BOOK share price (9.2)% (5.4)% +53.9% +183.8% n/a FTSE investment company index +2.2% +8.7% (4.8)% +0.6% +49.1% FTSE all -share index (0.4)% +9.5% +18.5% +24.6% +37.7% Performance to 31 December 2024 > 5 BOOK was admitted to the London Stock Exchange on 25 June 2021 > 6 Inception date treated as 30 April 2018. £54 million of capital raised The Q1 2025 factsheet and next update to NAV will be published on Monday 28 April, please visit: www.literacycapital.com/investors Buyout, £315.3m, 95.8% Growth Capital, £4.6m, 1.4% 3rd Party Funds, £9.3m, 2.8% New investments and commitments In October, BOOK acquired a significant minority stake in amplify5, a business process outsourcing company. Capital was also invested into several existing portfolio companies, to buy additional equity or to fund growth, working capital or capex. Cash generation and liquidity £3.0m was received during Q4, all of which was from PE fund interests. The vast majority of this related to the previously announced sale of a 2018-vintage fund interest. In January 2025, BOOK generated cash proceeds of £2.2m from the refinancing of one portfolio company, with further inflows expected soon. During Q4, the fully committed element of the RCF was extended to £35m (of the £40m total limit). £30.1m was drawn at the end of Q4, with £2.3m of cash held. Activity since the period end Halsbury completed a bolt-on acquisition in January. This purchase was made from an entity in administration, resulting in an adjusted net asset figure of £300.4m, or 499.2p per share. This should be considered BOOK’s latest NAV figure. Contact information Literacy Capital plc, 3 rd Floor, Charles House, 5-11 Regent Street St. James’s, London, SW1Y 4LR 0203 960 0280 │ www.literacycapital.com # Q4 2024 │ Factsheet Richard Pindar, CEO of BOOK’s Manager: “BOOK’s NAV performance in the latter part of 2024 has not met expectations nor matched the strong performance delivered consistently in earlier periods. The weaker NAV performance was primarily caused by the adverse movement in carrying value of two larger assets. Both had previously performed and contributed very strongly to NAV growth. This reversed in 2024 reflecting the reduced UK business confidence, which by December 2024 was the lowest since July 2020, according to the BCI. Some patience will be needed to overcome these challenges and to recoup the cost of tax rises or policy changes affecting UK businesses. However, our companies are well-led and able to adapt swiftly. Additionally, when trading conditions are weakest, there tend to be more numerous and better new investment opportunities, which bodes well for future NAV uplifts from new investments. We note the relative share price weakness during Q4 and early 2025. We believe this is unwarranted and action will be taken to address this discount, following publication of the FY 24 results, if this persists.” Summary of Q4 performance On 31 December 2024, reported net asset value (NAV) was £296.6m, or 492.8p per share. Adjusted for the impact of an acquisition completed by Halsbury in early January 2025, the latest adjusted NAV is enhanced by £3.8m to £300.4m, or 499.2p per share. The largest detractors during the quarter were Techpoint and Grayce, in aggregate accounting for a £10.6m reduction in NAV during Q4. Both companies’ financial performance continued to be affected by tougher trading conditions, however we are not expecting either to continue this trend into 2025. The strongest contributors in Q4 were Velociti and Live Business, both of which now have well-resourced management teams and are seeing strong growth. Both are benefitting from strong demand and contracts wins from new, overseas customers. BOOK’s share price fell by 9.2% in Q4, primarily due to private individuals realising capital gains in advance of the Budget announcement on 30 October. Published on 28 February 2025 → for the three months to 31 December 2024 Currently, 1 in 7 state primary schools do not have a dedicated reading space; this rises to 1 in 6 in disadvantaged areas. Literacy Capital’s partnership with Bookmark is crucial to scale literacy provision in schools across the country, particularly in areas of high deprivation that have limited access to necessary reading interventions. In Q4, Bookmark expanded its Your Story Corner project to Derbyshire. 16,000 brand-new books were distributed to 80 schools benefitting more than 20,000 children. 1 in 8 children aged 5-8 do not have a book of their own, so each school will also receive 200 termly copies of The Story Corner magazine for children to enjoy at home and to prevent learning loss during school holidays. In the first term of the 24/25 academic year, Bookmark volunteers delivered 6,272 hours of one-to-one support. Bookmark also received the results of a year-long independent evaluation by ImpactEd. This showed that pupils receiving Bookmark’s one-to-one support, particularly those eligible for pupil premium, made accelerated progress in their reading scores, compared to their peers, closing the attainment gap. Visit bookmarkreading .com to learn more. The Q1 2025 factsheet and next update to NAV will be published on Monday 28 April, please visit: www.literacycapital.com/investors “The books you have sent are absolutely delightful and will make a real difference to our children. Without charities such as yours our children would have a lot less resources available to them, so I just wanted you to know how much we appreciate it!” Teacher, from a Bookmark Partner school Live: £2.0m Post-period end adjustment: £3.8m Other: (£1.9m) Grayce: (£4.2m) Velociti: £9.4m Techpoint: (£6.4m) Companies / assets Date of investment Carrying value Value as % of NAV 1 RCI Group Sep 18 £100.7m 33.5% Grayce Jul 18 £33.3m 11.1% Velociti Solutions Feb 20 £25.8m 8.6% Cubo Work May 23 £24.4m 8.1% Oxygen Activeplay Jul 21 £23.6m 7.9% Top 5 investments £207.8m 69.2% Wifinity Dec 17 £17.4m 5.8% Techpoint Jun 20 £14.9m 5.0% Antler Homes Jun 18 £13.8m 4.6% Hanmere Dec 17 £10.3m 3.4% Live Business Mar 24 £9.6m 3.2% Top 10 investments £273.8m 91.2% Other direct investments £46.1m 15.3% Private equity fund interests £9.2m 3.1% Borrowings (incl. donation provision & impact of warrants) (£32.6)m (10.9)% Post-period end adjustment £3.8m 1.3% Total net asset value £300.4m 100.0% cash generation and EBITDA growth across the portfolio. The level of leverage is expected to increase in Q1 2025, due to the refinancing of two portfolio companies during the quarter. However, these two companies are both trading very strongly, so their earnings growth in the quarter should mitigate some of this increased debt. Proceeds from these refinancings will generate cash to fund new investment activity and reduce RCF debt. Portfolio valuation The weighted average EV / EBITDA multiple was 8.8x on 31 December 2024 (compared to 9.5x at the end of Q3), reflecting the modest reduction in carrying multiples for certain portfolio companies, reflecting the current economic outlook. Had multiples remained flat in Q4, NAV would have increased. The EBITDA multiple used for each portfolio company is applied to an earnings figure for the business that is deemed to be ‘maintainable’, in line with IPEV Valuation Guidelines . Portfolio highlights Year-on-year revenue growth reduced slightly at the end of Q4. This was an unfortunate byproduct of the weak trading conditions and fragile business confidence during H2 2024. Despite the overall UK business confidence and economic data being as poor as it has been, the overall revenue and EBITDA growth rates remain relatively encouraging. EBITDA growth and margins increased compared to the previous two quarterly factsheets. Given recent economic data across the UK has been weak and changes announced in government policy, action to reduce costs has had to be taken to preserve profitability. Evidence of the strong management across our portfolio companies and swift impact of these initiatives can be seen in these figures, which is encouraging. Net debt within the portfolio Net debt (on a weighted average basis) reduced slightly to 2.3x EBITDA at the end of Q4 (2.4x at the end of Q3). No further debt at a portfolio company was raised in Q4, with this reduction reflecting Portfolio overview Top 10 investments # # +18% +24% YoY sales growth YoY EBITDA growth # 8.8x 2.3x EV / Earnings 2 Net debt / EBITDA 2 # 22.2% 3,938 EBITDA margins Total headcount > #Data calculated on a weighted average basis (excl. headcount) > 1Net asset value includes the uplift from the activity since period end disclosed on page 2. > 2Excludes Antler Homes # Q4 2024 │ Factsheet Published on 28 February 2025 → for the three months to 31 December 2024 Contact information Literacy Capital plc, 3 rd Floor, Charles House, 5-11 Regent Street St. James’s, London, SW1Y 4LR 0203 960 0280 │ www.literacycapital.com Breakdown of Q4 uplift by asset (before costs) The Q1 2025 factsheet and next update to NAV will be published on Monday 28 April, please visit: www.literacycapital.com/investors Contact information Literacy Capital plc, 3 rd Floor, Charles House, 5-11 Regent Street St. James’s, London, SW1Y 4LR 0203 960 0280 │ www.literacycapital.com This document is issued by and has been approved for the purposes of section 21(2)(b) of the Financial Services and Markets A ct 2000 by Book Asset Management LLP (the "Investment Manager "). The Investment Manager is registered in England and Wales (number: OC425626) and is authorised and regulated by the Financial Conduct Authority (FRN: 914046). Its registered office is at Third Floor, Charles House, 5 -11 Regent Street St James's, London, United Kingdom, SW1Y 4LR. The Investment Manager only acts for Literacy Capital plc (the " Company ") to which it provides regulated investment management and transaction services and does not act for or advise potential investors in connection with acquiring shares in the Company and will not be responsible to potential investors for providing them with protections afforded to clients of the Investment Manager. Prospective investors are strongly advised to take their own legal, investment and tax advice from independent and suitably qualified advisers. The value of investments may go up as well as down and you may not get back the full amount of your investment. Past performance is not a guide to future performance. This document contains only summary information and is incomplete. The information and opinions contained in this document are provided as at the date of the document and are subject to change and no representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information contained herein and, save in the case of fraud, no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Investment Manager or the Company or by any of their respective directors, partners, officers, employees or advisers (" Affiliates ") in relation thereto. All projections, estimations, target returns and the like in this document are illustrative exercises involving significant elements of judgement and analysis and using the assumptions described herein, which assumptions, judgements and analyses may or may not prove to be correct. The actual outcome may be materially affected by changes in, for example, economic and/or other circumstances. Each of the Investment Manager, the Company and their respective Affiliates expressly disclaims any and all liability which may be based thereon. In particular, no representation or warranty is given as to the achievement or reasonableness of future projections, estimates, or target returns, if any. Any views contained herein are based on financial, economic, market and other conditions prevailing as of the date of this document. The information contained in this document will not be updated. This document may not be published, distributed or transmitted by any means or media, directly or indirectly, in whole or in part, in or into the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the " US Securities Act ") or with any securities regulatory authority of any state or other jurisdiction of the United States and will not be offered, sold, exercised, resold, transferred or delivered, directly or indirectly, in or into the United States or to, or for the account or benefit of, any US person (as defined under Regulation S under the US Securities Act). The Company has not been, and will not be, registered under the U.S. Investment Company Act of 1940, as amended. Neither this document nor any copy of it may be: (i) taken or transmitted into or distributed in any member state of the European Economic Area, Canada, Australia or the Republic of South Africa or to any resident thereof, or (ii) taken or transmitted into or distributed in Japan or to any resident thereof. Any failure to comply with these restrictions may constitute a violation of the securities laws or the laws of any such jurisdiction. The distribution of this document in other jurisdictions may be restricted by law and the persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. By accepting this document, you agree to be bound by the foregoing provisions, limitations and conditions and, in particular, you have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice including without limitation the obligation to keep the information given in this document and its contents confidential. Disclaimer # Q4 2024 │ Factsheet Published on 28 February 2025 → for the three months to 31 December 2024 The Q1 2025 factsheet and next update to NAV will be published on Monday 28 April, please visit: www.literacycapital.com/investors