VCT Review, Portfolio and Prospects

Will Fraser-Allen

Managing Partner

Contents

• Albion Capital Group LLP

• Investment team & new hires

• Life in lockdown

• Performance and business review

• Track record

• Tax Efficient Review

• Portfolio

• New deals

• Exits

• Prospects

• New dividend policy

• Communications

• Fraud advice

VCT experienceSix VCTs combined with net assets of c. £450m

Deep sector knowledgeExperienced and increasing specialist teams

Albion Group institutional entitiesSpecialist institutional entities of £287m (e.g. UCL Tech Funds

1&2, renewable energy, asset based & care homes companies)

OLIM Investment ManagersAlbion subsidiary, OLIM, is a specialist UK quoted equities asset

manager with c.£242m AUM2

Albion Capital Group LLPAlbion Group has c.£975m of funds1

“A year ago we were

very excited to have

attracted the backing of

Albion…their open and

collaborative approach

was a good fit with our

culture as we worked

together to grow the

business.”

Stuart Hearn - Managing

Director of Clear Review

Clear Review exited to Advanced

delivering a c.2.1x return for

Albion VCTs 1 Funds under management or administration2 Data as at 30 September 2020

Nadine Torbey

Investment Manager

Cat McDonald

Investment ManagerDr Christoph Ruedig

PartnerRobert Whitby-Smith

Partner

Marco Yu

Investment Director

The Manager

Growing investment team

Specialisms include technology, healthcare, education, renewable energy, and leisure

Jay Wilson

Investment DirectorPaul Lehair

Investment Director

Ed Lascelles

Partner

Adam Chirkowski

Investment Director

Will Fraser-Allen

Managing Partner

Dr Andrew Elder

Deputy Managing Partner

Emil Gigov

PartnerDavid Gudgin

Partner

Rad Hart-George

Investment DirectorJess Bartos

Investment Director

The ManagerNew Hires

Jane was co-founder of The Talent Stack and prior tothat was Talent Adviser at EQ Ventures and BaldertonCapital. Jane will be joining at the end of Novembermanaging talent acquisition and team developmentprogrammes which enable businesses to hire and growthe very best talent for maximum business impact

Prior to joining Albion Katya co-founded and ranKidPix, a successful marketplace for boutique children’sbrands. Katya started her career in the City workingacross commodities, shipbroking and B2B financialsales. Katya is working with the tech investment teamto continue to build our position in the techinvestment market.

Ekatarina Pogudina – Marketing Manager

Jane Reddin – Talent Director

Life in Lockdown

Photography

Competition

1st Place

2nd Place

3rd Place

Life in Lockdown

Photography

Competition

Life in Lockdown

….…went global

The COVID Impact

• The impact of COVID on the portfolios has been mitigated by:

• Mission critical B2B software companies with recuring income

• Health technology businesses supporting move to digital health

• Renewable energy investments unaffected

• Limited exposure to consumer facing businesses

• The 6 VCTs have fallen by an average of 3.7% from pre-pandemic NAVs to 30 June 2020

• In contrast the FTSE All-Share fell 17.5% over the same period

Albion has built all-weather portfolios

Five year performance and business review

• NAV return: 6.8% p.a.

• Dividends: c. £101m

• Buybacks: c. £32m

• VCT Funds: c. £450m

• Since 1 July 2019 the Albion VCTs have invested over £50m in 27 companies

• And generated proceeds of £70 million from 7 exits

Track Record Total NAV return over 10, 5 and 3 years to 30 June 2020

The graph sets out the performance of the VCTs over the 10 years, 5 years and 3 year average to 30 June 2020, being the cumulative return for the period comprising dividends paid and

change in net asset value. This does not include tax relief. Performance of Kings Arms Yard VCT since 1 January 2011 from when Albion took over management.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Kings Arms Yard VCT Albion Enterprise VCT Albion Development VCT Albion Venture Capital Trust Crown Place VCT Albion Technology & GeneralVCT

Incr

ease

in s

har

eho

lder

val

ue

10 year average 5.9% p.a.

5 year average 6.8% p.a.

3 year average 7.3% p.a.

Tax Efficient Review – Martin Churchill

VCT Manager

(alphabetical

order

VCT name Data as at

3 year

annual %

return

5 year

annual %

return

10 year

annual %

return

Albion Development VCT 30.6.2020 9.7 7.6 6.6

Albion Enterprise VCT 30.6.2020 8.8 7.8 7.8

Albion Technology & General VCT30.6.2020 8.6 4.8 3.7

Albion Venture Capital trust 30.6.2020 4.9 6.8 4.9

Crown Place VCT 30.6.2020 8.8 8.2 6.6

Kings Arms Yard VCT 30.6.2020 3.0 5.9 8.5

Proven VCT 31.5.2020 0.6 3.6 5.4

Proven Growth & Income VCT 31.5.2020 -2.0 0.9 5.2

Draper Esprit Draper Esprit VCT 30.6.2020 -3.8 -0.1 4.8

Baronsmead Second VCT 31.8.2020 0.5 2.7 7.2

Baronsmead VCT 31.8.2020 0.2 2.5 7.7

Maven Income & Growth VCT 5 31.5.2020 4.0 3.3 6.6

Maven Income & Growth VCT 31.5.2020 1.1 3.8 7.3

Maven Income & Growth VCT 3 31.5.2020 -0.2 1.2 6

Maven Income & Growth VCT 4 31.5.2020 -0.5 1.4 4.4

Octopus Octopus Titan VCT 31.6 2020 3.3 3.8 8.2

Pembroke Pembroke VCT B Shares 31.3.2020 3.4 4.8

Source: Tax Efficient Review calulations based on data from public accounts 1.10.2020

ALBION

Maven

Beringea

Gresham House

Generalist VCT provide 3.5.10 year performance comparison

Portfolio split by sectorPortfolio sector split as at 30 June 2020

Cash & liquid investments30%

Education4%

Renewable energy12%

Healthcare (including digital healthcare)23%

Business services and other5%

Software & other technology26%

Development of the portfolio

Then1

Asset based portfolio reducing over time

Now2

Asset based 42%

Growth 38%

Cash 20%

Increasing exposure to Growth and Innovation

1 30 June 2019 2 30 June 2020

Asset based 31%

Growth 39%

Cash 30%

Portfolio split by employee numbers

Total investment portfolio as at 30th June 2020

* Renewable energy schemes do not have employees

Companies employing

over 50 people represent

54% of portfolio by value

Under 205%

21 - 5024%

51 - 10026%

101+28%

Renewable energy*17%

PORTFOLIO ANALYSIS BY NUMBER OF EMPLOYEES

Portfolio split by revenue

Total investment portfolio as at 30th June 2020

Companies with revenue

greater than £5million

represent 45% of portfolio

by value

Early Stage (revenue less than £1 million)

12%

Growth (revenue between £1 million and

£5 million)43%

Scale up (revenue over £5 million)

45%

PORTFOLIO ANALYSIS BY STAGE OF INVESTMENT

Portfolio company examplesBusinesses within our technology and health

technology portfolios

17

Uses the latest advances

in big data analytics and

artificial intelligence to help

its banking, insurance and

government customers

detect financial crime

Description Cost Book value Revenue

growth

£3.1m

Investment

date

2017 £23.9m >20x

Employee

growth

30 to 300

Is the leading cloud

encryption platform

ensuring data security for

email, file transfer and

collaboration

environments.

£8.4m2014 £23.3m >10x 23 to 250

invested

pre-

revenue,

now £10m

European specialty

pharmaceutical company

focused on

children's medicines

£7.7m2012 £23.1m 2 to 50

New Investment – Seldon

Software accelerating the adoption of machine learning to solve some of the worlds most challenging problems

• Albion co-led the £7.1m Series A round

• Completed in November

• Seldon caters for a wide range of

industries, clients include:

• AstraZeneca

• Walmart

• Mastercard

• Amex

• Nasdaq

• Ford

Credit Kudos

Leverages open banking data and machine learning to transform credit referencing, enabling fairer and increased access to credit.

Concirrus

Software bringing real-time behavioral data analytics to the marine and transport insurance industries.

19

Selection of Investments Made

TransFICC

Specialist provider of low-latency connectivity and workflow services for Fixed Income and Derivatives Markets.

WeGift

Enabling corporates to purchase

digital gift cards from retailers

and distribute them to employees

and customers for rewards or

marketing incentivisation. UMotif

Provides a patient-centric and decentralised approach to clinical studies.

Exit – Clear Review

• £1.9m invested by Albion in June 2019

• Acquired by Advanced in October 2020

• Revenue grew from £1.5m → £3m

• Total return to Albion VCTs 2.1x

Clear Review is a performance management platform that was acquired by leading software and services provider Advanced

2.1x

New Dividend Policy

Albion VCTs have moved to a variable dividend policy

• Avoids unsustainably high dividends if NAV falls whilst rewarding

shareholders more immediately if NAV rises

• Helps manage volatility of unquoted small company investing

• Targeting annual dividend of around 5%

• Two dividends per annum – each being 2.5% of prevailing NAV

Prospects

• Impact of Covid-19 on portfolio is now better understood

• A number of companies in the portfolio are thriving

• But the extent of the economic impact of Covid-19 is uncertain

• Further progress repositioning the portfolio towards growth & technology investments

• New investment activity targeting digital health, data analytics, automation, fintech and digital security

• Potential growth from the emerging rising stars within the portfolio

• However, greater potential for volatility

Electronic communications

For speed, efficiency, reduced paper, cost saving

and reducing human contact we encourage all

Shareholders to move to email communications.

For every Shareholder signing up to receive

electronic communications the Manager will

donate £1 towards a coronavirus (Covid-19)

supporting charity chosen by the Albion team.

Webinars – on free platform ZOOM

Lockdown has prevented meetings and travel but

the use of Zoom allows continued engagement

with shareholders at AGMs and the Shareholder

Seminar.

Shareholder communication

Fraud Awareness

Albion would like to make shareholders aware of potential scams that are targeting our shareholders. These fraudulent activities are increasingly

sophisticated, often by a phone call or email which normally originates from outside of the UK. Do note that the company will never pass your personal

details onto a third party.

Q&As