Exhibit 99.2 Earnings Presentation NASDAQ: OCSL Third Quarter 2024
Forward Looking Statements & Legal Disclosures 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 (together with its affiliates, “Oaktree”) 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; the cost or potential outcome of any litigation to which we may be a party; and the impact of current economic conditions, including those caused by inflation, a rising interest rate environment and geopolitical events on all of the foregoing. 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, 2023 and our quarterly report on Form 10-Q for the quarter ended June 30, 2024. Other factors that could cause actual results to differ materially include: changes in the economy, financial markets and political environment, including the impacts of inflation and elevated interest rates; risks associated with possible disruption in our operations or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, pandemics or cybersecurity incidents; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); conditions in our operating areas, particularly with respect to business development companies or regulated investment companies; and other considerations 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. Calculation of Assets Under Management References to total assets under management or AUM represent assets managed by Oaktree and a proportionate amount of the AUM reported by DoubleLine Capital LP ( DoubleLine Capital ), in which Oaktree owns a 20% minority interest. Oaktree's methodology for calculating AUM includes (i) the net asset value (“NAV”) of assets managed directly by Oaktree, (ii) the leverage on which management fees are charged, (iii) undrawn capital that Oaktree is entitled to call from investors in Oaktree funds pursuant to their capital commitments, (iv) for collateralized loan obligation vehicles ( CLOs ), the aggregate par value of collateral assets and principal cash, (v) for publicly-traded business development companies, gross assets (including assets acquired with leverage), net of cash, and (vi) Oaktree's pro rata portion (20%) of the AUM reported by DoubleLine Capital. This calculation of AUM is not based on the definitions of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts managed and is not calculated pursuant to regulatory definitions. Unless otherwise indicated, data provided herein are dated as of June 30, 2024. Earnings Presentation Third Quarter 2024 NASDAQ: OCSL
Highlights for the Quarter Ended June 30, 2024 • $0.55 per share, as compared with $0.56 per share for the quarter ended March 31, 2024 Adjusted Net 1 Investment Income • GAAP net investment income was $0.54 per share, as compared with $0.52 in the quarter ended March 31, 2024 • $18.19 per share, as compared with $18.72 per share as of March 31, 2024 Net Asset Value Per Share • The decrease was primarily due to unrealized losses on certain debt and equity investments • Declared a cash distribution of $0.55 per share for the sixth quarter in a row Dividends • Distribution will be payable on September 30, 2024 to stockholders of record as of September 16, 2024 • $339 million of new investment commitments • 11.1% weighted average yield on new debt investments Investment Activity • $293 million of new investment fundings • Received $186 million of proceeds from prepayments, exits, other paydowns and sales • $3.1 billion at fair value across 158 portfolio companies • 11.9% weighted average yield on debt investments, down from 12.2% in the prior quarter Investment Portfolio • 86% senior secured, including 82% first lien loans • 85% of debt portfolio was floating rate • 1.10x net debt to equity ratio Capital Structure & Liquidity • $96 million of cash and $828 million of undrawn capacity on credit facilities • Permanently reduced base management fee to 1.00% of gross assets, net of all other existing base management fee waivers, from 1.50% Permanent Base of gross assets, effective July 1, 2024 Management Fee • The new base management fee is expected to increase net investment income per share by $0.15 annually, or $0.03 to $0.04 per share a Reduction quarter • Waived additional base management fees such that the total amount of waived base management fees (including those previously waived) Fee Waiver was $1.5 million for each of the quarters ended March 31, 2024 and June 30, 2024 • Waived Part I Incentive fees for quarter, totaling $3.2 million 1. See appendix for a description of this non-GAAP measure. 2. Return on net investment income calculated as the net investment income per share increase from the base management fee change annualized divided by the net asset value per share of the most recent completed 2 quarter.
Permanent Base Management Fee Reduction Management Fee Reduction • Permanently reducing the base management fee, effective as of July 1, 2024, to an annual rate of 1.00% of total gross assets, net of all other existing waivers of the base management fee • Waived additional base management fees such that the total amount of waived base management fees (including those previously waived) was $1.5 million for each of the quarters ended March 31, 2024 and June 30, 2024 h Strong Shareholder Alignment Current Fee New Fee • Demonstrates strong support from our investment Structure Structure adviser, Oaktree • Larger share of OCSL’s investment income will flow 2 Base directly to shareholders 1.50% 1.00% Management Fee Permanent Increase in Earnings Power • The new base management fee is expected to increase net Incentive Fee on investment income per share by $0.15 annually, or $0.03 to $0.04 per share a quarter Income and Capital 17.50% 17.50% Gains Lower Fees • Lower base management fee vs. top-20 listed BDCs by 1 market cap Incentive Fee 6.00% 6.00% Hurdle Rate 1. Top-20 listed BDCs by market capitalization as of July 26, 2024: ARCC, BBDC, BCSF, BXSL, CGBD, CSWC, FSK, GBDC, GSBD, HTGC, MAIN, MFIC, MSDL, NCDL, NMFC, OBDC, OBDE, OCSL, PSEC, and TSLX. 2. Net of existing base management fee waivers. 3
Portfolio Summary Portfolio Characteristics Portfolio Composition (At fair value) (As % of total portfolio at fair value; $ in millions) 4% 6% 4% First Lien – $2,575 3% Second Lien – $109 $3.1bn 158 Unsecured Debt – $117 Total Investments Portfolio Companies Equity – $132 Joint Ventures – $188 82% 2,3 Top 10 Industries % FV 11.9% $147mm Application Software 16.4% Weighted Average Yield on Median Debt Portfolio 1 Biotechnology 4.1% Debt Investments Company EBITDA Health Care Services 3.6% Health Care Technology 3.3% Interactive Media & Services 3.1% Industrial Machinery & Supplies & Components 3.0% 86% 85% Data Processing & Outsourced Services 2.9% Senior Secured Floating Rate Pharmaceuticals 2.7% Debt Investments Real Estate Operating Companies 2.5% Diversified Financial Services 2.2% Total Top 10 43.8% As of June 30, 2024 Note: Numbers may not sum due to rounding. 1. Excludes investments in negative EBITDA borrowers, life sciences lending, royalty interest financings, structured products, non-accruals, recurring revenue businesses and other non-EBITDA borrowers. 2. Based on GICS sub-industry classification. 3. Excludes multi-sector holdings, which is primarily composed of investments in Senior Loan Fund JV I LLC (the “Kemper JV”) and OCSI Glick JV LLC (the “Glick JV”), joint ventures that invest primarily in senior 4 secured loans of middle market companies.
Spotlight on OCSL’s Software Exposure Software Exposure End Market Diversity (As % of total portfolio at fair value) Application Software Systems Software 15.2% Alternative Carriers 23.9% Diversified Real Estate Activities 4.4% IT Consulting & Other Services 5.0% Software Software: Internet Services & Infrastructure 5.7% Rest of Portfolio 18.0% 11.4% Specialized Consumer Services 5.8% Human Resource & Employment Services 6.3% 9.0% 6.3% 7.0% Oil & Gas Exploration & Production 1 Other Oaktree’s Approach to Software Investing Software Portfolio Summary Characteristics • Target large, diversified businesses with entrenched customer bases • Companies provide mission critical software solutions that lead to Fair Value ($ in millions) $563 high customer retention rates Number of Portfolio Companies 26 • Focus on constructing a balanced application software portfolio that is composed of businesses that serve different end markets First Lien (% of software portfolio) 96.6% • Backed by large, well-established private equity firms who have 2 Average Portfolio Company Revenues ($ millions) $650 strong reputations and deep sector expertise 3 Average LTV 41% As of June 30, 2024 1. Includes Broadcasting, Aerospace & Defense, Education Services, Diversified Support Services, Diversified Financial Services, Property & Casualty Insurance, and Interactive Media & Services 2. Revenues based on the most recent portfolio company financial statements for the trailing twelve-month reported period. 5 3. Average loan-to-value (“LTV”) represents the net ratio of loan-to-value for each software portfolio company, weighted based on the fair value of total software investments.
Investment Activity New Investment Highlights Historical Funded Originations and Exits ($ in millions) ($ in millions) $377 $368 $364 $400 Total New $323 $293 Commitments 11 $300 $339 $214 new borrowers $186 $200 $117 Existing Borrowers $100 $75 $0 9/30/23 12/31/23 3/31/24 6/30/24 9 1 2 New Funded Investments Investment Exits existing borrowers Seniority Breakdown (As % of new investment commitments; $ in millions) 11.1% New Borrowers $264 weighted average yield on new 0% 1% debt commitments First Lien - $270mm Subordinated Debt - $65mm 19% 100% Second Lien - $3mm 80% Equity - $1mm also held by other Oaktree funds As of June 30, 2024 Note: Numbers rounded to the nearest million or percentage point and may not sum as a result. 1. New funded investments includes drawdowns on existing delayed draw and revolver commitments. 6 2. Investment exits includes proceeds from prepayments, exits, other paydowns and sales.
Investment Activity (continued) New Investment Commitment Detail ($ in millions) Security Type Market Investment Number of Unsecured Private Primary Secondary Avg. Secondary Fiscal Quarter First Lien Second Lien Commitments Deals & Other Placement (Public) (Public) Purchase Price 4Q2021 $385 20 $350 $13 $23 $304 $79 $2 100% 1Q2022 $300 21 $220 $77 $2 $227 $73 -- N/A 2Q2022 $228 25 $163 $17 $48 $162 $26 $40 96% 3Q2022 $132 28 $100 $6 $25 $63 $5 $63 91% 4Q2022 $97 11 $65 -- $32 $71 $22 $4 92% 1Q2023 $250 25 $214 $10 $26 $188 $49 $14 82% 2Q2023 $124 9 $124 -- -- $118 $5 $1 81% 3Q2023 $251 10 $227 $24 $0.2 $224 $20 $7 85% 4Q2023 $87 6 $87 -- -- $76 $12 -- N/A 1Q2024 $370 24 $354 -- $16 $302 -- $68 90% 2Q2024 $396 35 $364 -- $32 $205 $99 $92 98% 3Q2024 $339 20 $270 $3 $65 $256 $58 $24 97% 7 Note: Numbers may not sum due to rounding. Excludes any positions originated, purchased and sold within the same quarter and the assets acquired in the Oaktree Strategic Income II, Inc. (the “OSI2 Merger”).
Financial Highlights As of ($ and number of shares in thousands, except per share amounts) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 GAAP Net Investment Income per Share $0.54 $0.52 $0.57 $0.62 $0.63 1 Adjusted Net Investment Income per Share $0.55 $0.56 $0.57 $0.62 $0.62 Net Realized and Unrealized Gains (Losses), Net of Taxes per Share -$0.53 -$0.40 -$0.43 -$0.02 -$0.15 1 Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes per Share -$0.54 -$0.44 -$0.42 -$0.02 -$0.14 Earnings (Loss) per Share $0.01 $0.12 $0.14 $0.60 $0.48 1 Adjusted Earnings (Loss) per Share $0.01 $0.12 $0.15 $0.60 $0.47 Quarterly Distributions per Share $0.55 $0.55 $0.55 $0.55 $0.55 Special Distributions per Share -- -- $0.07 -- -- NAV per Share $18.19 $18.72 $19.14 $19.63 $19.58 Weighted Average Shares Outstanding 81,830 79,763 77,840 77,130 77,080 Shares Outstanding, End of Period 82,245 81,396 78,965 77,225 77,080 Investment Portfolio (at Fair Value) $3,121,703 $3,047,445 $3,018,552 $2,892,420 $3,135,619 Cash and Cash Equivalents $96,321 $125,031 $112,369 $136,450 $59,704 Total Assets $3,322,181 $3,297,939 $3,266,195 $3,217,839 $3,335,974 2 Total Debt Outstanding $1,679,164 $1,635,642 $1,622,717 $1,600,731 $1,740,066 Net Assets $1,496,133 $1,524,099 $1,511,651 $1,515,764 $1,509,441 Total Debt to Equity Ratio 1.16x 1.10x 1.10x 1.10x 1.18x Net Debt to Equity Ratio 1.10x 1.02x 1.02x 1.01x 1.14x 3 Weighted Average Interest Rate on Debt Outstanding 7.0% 7.0% 7.0% 7.0% 6.6% 1. See appendix for a description of the non-GAAP measures as necessary. 2. Net of unamortized financing costs. 8 I 3. Includes effect of the interest rate swap agreements the Company entered into in connection with the issuance of the 2027 Notes and the 2029 Notes. n v e s t o r P r e s e n a t
Portfolio Highlights As of ($ in thousands, at fair value) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Investments at Fair Value $3,121,703 $3,047,445 $3,018,552 $2,892,420 $3,135,619 Number of Portfolio Companies 158 151 146 143 156 Average Debt Investment Size $19,900 $20,100 $20,200 $19,800 $19,800 Asset Class: First Lien 82.5% 80.8% 77.9% 76.4% 76.5% Second Lien 3.5% 5.4% 8.4% 10.1% 12.0% Unsecured Debt 3.8% 2.6% 2.5% 1.9% 1.7% Equity 4.2% 4.8% 4.8% 5.0% 3.8% Joint Venture Interests 6.0% 6.4% 6.4% 6.6% 6.0% Interest Rate Type for Debt Investments: % Floating-Rate 85.3% 85.4% 84.3% 86.2% 86.0% % Fixed-Rate 14.7% 14.6% 15.7% 13.8% 14.0% Yields: 1 Weighted Average Yield on Debt Investments 11.9% 12.2% 12.2% 12.7% 12.3% Cash Component of Weighted Average Yield on Debt Investments 10.6% 11.0% 11.1% 11.2% 11.4% 2 Weighted Average Yield on Total Portfolio Investments 11.5% 11.7% 11.7% 12.0% 11.8% Note: Numbers may not sum due to rounding. 1. Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments, including the Company's share of the return on debt investments in the Kemper JV and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the merger of Oaktree Strategic Income Corporation (the “OCSI Merger”) and the OSI2 Merger. See appendix for a description of the non-GAAP financial measures. 2. Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments and dividend income, including the Company's share of the return on debt investments in the Kemper JV and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the OCSI Merger and the OSI2 9 Merger. See appendix for a description of the non-GAAP financial measures.
Investment Activity As of ($ in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 New Investment Commitments $338,700 $395,600 $370,300 $87,500 $251,000 1 New Funded Investment Activity $293,200 $377,400 $367,600 $117,100 $243,300 Proceeds from Prepayments, Exits, Other Paydowns and Sales $185,500 $322,600 $213,500 $364,400 $261,000 2 Net New Investments $107,700 $54,800 $154,100 -$247,300 -$17,700 New Investment Commitments in New Portfolio Companies 11 20 14 3 6 New Investment Commitments in Existing Portfolio Companies 9 15 10 3 4 Portfolio Company Exits 3 15 10 16 16 Weighted Average Yield at Cost on New Debt Investment 11.1% 11.1% 11.6% 12.0% 12.6% Commitments 1. New funded investment activity includes drawdowns on existing revolver commitments. 10 2. Net new investments consists of new funded investment activity less proceeds from prepayments, exits, other paydowns and sales. I n v e s t o r P r e s e n a t
Net Asset Value Per Share Bridge Adjusted Net Realized and Unrealized $21.00 Adjusted NII Gains (Losses), Net of Taxes $0.55 -$0.54 $20.00 $0.01 $19.00 -$0.51 $0.54 -$0.02 -$0.01 -$0.55 $18.00 $17.00 $18.72 $18.19 $16.00 $15.00 $14.00 3/31/24 NAV GAAP Net Interest Income Net Unrealized Net Realized Net Realized & Quarterly 6/30/24 NAV 1 Investment Accretion Appreciation / Gain / (Loss) Unrealized Loss Distribution 1 Income Related to (Depreciation) Related to Merger Merger Accounting Accounting Adjustments Adjustments Note: Numbers may not sum due to rounding. Net asset value per share amounts are based on the shares outstanding at each respective quarter end. Net investment income per share, net unrealized appreciation / (depreciation), and net realized gain / (loss) are based on the weighted average number of shares outstanding for the period. Numbers may not sum due to rounding. See appendix for a description of the non-GAAP measures. 11 1. Excludes reclassifications of net unrealized appreciation / (depreciation) to net realized gains / (losses) as a result of investments exited during the quarter. I n v e s t o r P r e s e n a t
Capital Structure Overview Funding Sources Facility 6/30/24 0.90x to 1.25x ($ in millions) Size Outstanding Interest Rate Maturity Target Leverage Ratio Secured Credit Facilities Syndicated Facility $1,218 $505 SOFR + 2.00% Jun-28 Citibank Facility $400 $285 SOFR + 2.35% Jan-29 Secured Debt Subtotal $1,618 $790 Investment Unsecured Debt 2025 Notes $300 $300 3.50% Feb-25 Grade Rated 1 2027 Notes $350 $350 Jan-27 2.70% (SOFR + 1.658%) By Moody’s And Fitch 1 2029 Notes $300 $300 Feb-29 7.10% (SOFR + 3.126%) Unsecured Debt Subtotal $950 $950 Total Debt $2,568 $1,740 55% Unsecured Borrowings Maturities ($ in millions) $1,500 Unsecured Debt Credit Facilities Drawn $0.9bn $1,000 Credit Facilities Undrawn 2 $713 Available Liquidity $115 $500 $285 $505 $350 $300 $300 $0 2025 2026 2027 2028 2029 Diverse and flexible sources of debt capital with ample liquidity As of June 30, 2024 Note: Numbers may not sum due to rounding. 1. The Company entered into an interest rate swap agreement under which the Company receives a fixed interest rate and pays a floating rate based on three-month SOFR plus a spread. 2. Liquidity was composed of $96 million of unrestricted cash and cash equivalents and $828 million of undrawn capacity under the credit facilities (subject to borrowing base and other limitations). 12
Funding and Liquidity Metrics Leverage Utilization Liquidity Overview ($ in millions) ($ in millions) 9/30/23 12/31/23 3/31/24 6/30/24 $3,000 Credit Facilities Committed $1,618 $1,618 $1,618 $1,618 $2,568 $2,568 $2,568 $2,568 Credit Facilities Drawn -$710 -$710 -$730 -$790 $2,500 Cash and Equivalents $136 $112 $125 $96 $828 $888 $908 $908 $2,000 Total Liquidity $1,044 $1,020 $1,013 $924 1 -$206 -$200 -$209 -$264 Unfunded Commitments $1,500 Unavailable Unfunded $51 $34 $30 $45 2 Commitments $1,000 $1,740 $1,680 $1,660 $1,660 Adjusted Liquidity $889 $854 $834 $705 $500 $0 9/30/23 12/31/23 3/31/24 6/30/24 3 Ample liquidity to support funding needs Total Debt Outstanding Undrawn Capacity ($ in millions) 9/30/23 12/31/23 3/31/24 6/30/24 Cash and Equivalents $136 $112 $125 $96 Net Assets $1,516 $1,512 $1,524 $1,496 Total Leverage 1.10x 1.10x 1.10x 1.16x Net Leverage 1.01x 1.02x 1.02x 1.10x 1. Excludes unfunded commitments to the Kemper JV and Glick JV. 2. Includes unfunded commitments ineligible to be drawn due to certain limitations in credit agreements. 3. As of June 30, 2024, we have analyzed cash and cash equivalents, availability under our credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and 13 believe our liquidity and capital resources are sufficient to invest in market opportunities as they arise.
Strategic Joint Ventures are Accretive to Earnings OCSL’s JVs are income-enhancing vehicles that primarily invest in senior secured loans of middle market companies and other corporate debt securities Key Attributes: • Equity ownership: 87.5% OCSL and 12.5% joint venture partner • Shared voting control: 50% OCSL and 50% joint venture partner Kemper JV Characteristics Glick JV Characteristics (At fair value) (At fair value) $138mm 4.4% $49mm 1.6% OCSL’s Investments % of OCSL’s OCSL’s Investments % of OCSL’s in the Kemper JV Portfolio in the Glick JV Portfolio $4.7mm 13.1% $1.7mm 13.3% Net Investment Return on OCSL’s Net Investment Return on OCSL’s 1 2 3 2 Income Investment (Annualized) Income Investment (Annualized) Combined Portfolio Summary Portfolio Company Wtd. Avg. Debt Portfolio Investment Portfolio First Lien Leverage Ratio Count Yield $477mm 99% 50 10.1% 1.4x As of June 30, 2024 1. Represents OCSL’s 87.5% share of the Kemper JV’s net investment income (excluding subordinated note interest expense) earned during the quarter ended June 30, 2024. 2. Calculated as OCSL’s share of each respective joint venture’s net investment income annualized, divided by the fair value of OCSL’s investments in each joint venture as of June 30, 2024. 14 3. Represents OCSL’s 87.5% share of the Glick JV’s net investment income (excluding subordinated note interest expense) earned during the quarter ended June 30, 2024.
Appendix
Quarterly Statement of Operations For the three months ended ($ in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Investment income Interest income $85,953 $85,256 $91,414 $94,732 $95,310 PIK interest income $6,149 $4,816 $3,849 $5,544 $3,967 Fee income $1,460 $2,546 $1,307 $572 $1,573 Dividend income $1,404 $1,411 $1,415 $1,057 $1,050 GAAP total investment income $94,966 $94,029 $97,985 $101,905 $101,900 Interest income amortization related to merger accounting $607 $3,311 $29 $252 -$842 adjustments Adjusted total investment income $95,573 $97,340 $98,014 $102,157 $101,058 Expenses Base management fee $11,781 $11,604 $11,477 $11,516 $11,983 Part I incentive fee $8,341 $8,452 $9,028 $9,531 $9,590 Part II incentive fee -- -- -- -- -- Interest expense $32,513 $31,881 $32,170 $32,326 $30,793 1 Other operating expenses $2,466 $2,225 $2,621 $2,534 $2,621 Total expenses $55,101 $54,162 $55,296 $55,907 $54,987 Fees waived -$1,500 -$1,500 -$1,500 -$1,500 -$1,500 Part incentive fees waived -$3,210 -- -- -- -- Net expenses $50,391 $52,662 $53,796 $54,407 $53,487 GAAP net investment income $44,575 $41,367 $44,189 $47,498 $48,413 Less: Interest income accretion related to merger accounting $607 $3,311 $29 $252 -$842 adjustments Add: Part II incentive fee -- -- -- -- -- Adjusted net investment income $45,182 $44,678 $44,218 $47,750 $47,571 Note: See appendix for a description of the non-GAAP measures. 16 1. Includes professional fees, directors fees, administrator expense and general and administrative expenses. I n v e s t o r P r e s e n ta
Quarterly Statement of Operations (continued) For the three months ended ($ in thousands, except per share amounts) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Net realized and unrealized gains (losses) Net unrealized appreciation (depreciation) $26,199 -$25,252 -$25,025 $13,745 -$1,039 Net realized gains (losses) -$69,452 -$6,603 -$8,453 -$13,238 -$10,603 (Provision) benefit for taxes on realized and unrealized gains (losses) -$202 -$175 -$176 -$2,053 -$86 GAAP net realized and unrealized gains (losses), net of taxes -$43,455 -$32,030 -$33,654 -$1,546 -$11,728 Net realized and unrealized losses (gains) related to merger accounting -$600 -$3,314 $796 -$122 $612 adjustments Adjusted net realized and unrealized gains (losses), net of taxes -$44,055 -$35,344 -$32,858 -$1,668 -$11,116 GAAP net increase (decrease) in net assets resulting from operations $1,120 $9,337 $10,535 $45,952 $36,685 Interest income amortization (accretion) related to merger accounting adjustments $607 $3,311 $29 $252 -$842 Net realized and unrealized losses (gains) related to merger accounting -$600 -$3,314 $796 -$122 $612 adjustments Adjusted earnings (loss) $1,127 $9,334 $11,360 $46,082 $36,455 Per share data: GAAP total investment income $1.16 $1.18 $1.26 $1.32 $1.32 Adjusted total investment income $1.17 $1.22 $1.26 $1.32 $1.31 GAAP net investment income $0.54 $0.52 $0.57 $0.62 $0.63 Adjusted net investment income $0.55 $0.56 $0.57 $0.62 $0.62 GAAP net realized and unrealized gains (losses), net of taxes -$0.53 -$0.40 -$0.43 -$0.02 -$0.15 Adjusted net realized and unrealized gains (losses), net of taxes -$0.54 -$0.44 -$0.42 -$0.02 -$0.14 GAAP net increase/decrease in net assets resulting from operations $0.01 $0.12 $0.14 $0.60 $0.48 Adjusted earnings (loss) $0.01 $0.12 $0.15 $0.60 $0.47 Weighted average common shares outstanding 81,830 79,763 77,840 77,130 77,080 Shares outstanding, end of period 82,245 81,396 78,965 77,225 77,080 17 Note: See appendix for a description of the non-GAAP measures. Per share amounts have been adjusted for the one-for-three reverse stock split which took effect before market open on January 23, 2023. I n v e s t o r P r e s e n a t
Non-GAAP Disclosures The OCSI Merger and the OSI2 Merger (the “Mergers”) were accounted for as asset acquisitions in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues ( ASC 805 ). The consideration paid to each of the stockholders of OCSI and OSI2 were allocated to the individual assets acquired and liabilities assumed based on the relative fair values of the net identifiable assets acquired other than non-qualifying assets, which established a new cost basis for the acquired investments under ASC 805 that, in aggregate, was different than the historical cost basis of the acquired investments prior to the OCSI Merger or OSI2 Merger, as applicable. Additionally, immediately following the completion of the Mergers, the acquired investments were marked to their respective fair values under ASC 820, Fair Value Measurements, which resulted in unrealized appreciation / depreciation. The new cost basis established by ASC 805 on debt investments acquired will accrete / amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized appreciation / depreciation on such investment acquired through its ultimate disposition. The new cost basis established by ASC 805 on equity investments acquired will not accrete / amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized gain / loss with a corresponding reversal of the unrealized appreciation / depreciation on disposition of such equity investments acquired. The Company’s management uses the non-GAAP financial measures described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not adjusted the cost basis of certain investments pursuant to ASC 805. The Company’s management believes Adjusted Total Investment Income , Adjusted Total Investment Income Per Share , Adjusted Net Investment Income and Adjusted Net Investment Income Per Share are useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to the accretion income resulting from the new cost basis of the investments acquired in the Mergers because these amounts do not impact the fees payable to Oaktree under its second amended and restated investment advisory agreement (the “A&R Advisory Agreement”), and specifically as its relates to Adjusted Net Investment Income and Adjusted Net Investment Income Per Share , without giving effect to Part II incentive fees. In addition, the Company’s management believes that “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes”, “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes Per Share”, “Adjusted Earnings (Loss)” and “Adjusted Earnings (Loss) Per Share” are useful to investors as they exclude the non-cash income/gain resulting from the Mergers and used by management to evaluate the economic earnings of its investment portfolio. Moreover, these metrics align the Company's key financial measures with the calculation of incentive fees payable to Oaktree under with the A&R Advisory Agreement (i.e., excluding amounts resulting solely from the lower cost basis of the acquired investments established by ASC 805 that would have been to the benefit of Oaktree absent such exclusion). 18 I n v e s t o r P r e s e n a t
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