Confidential | for discussion purposes only GOLUB CAPITAL DIRECT LENDING CORPORATION EARNINGS PRESENTATION QUARTER ENDED SEPTEMBER 30, 2022
2 Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation. Actual results could differ materially from those anticipated in our forward-looking statements and future results could differ materially from historical performance. 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 have filed or in the future may file with the Securities and Exchange Commission (“SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. This presentation contains statistics and other data that have been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data. In evaluating prior performance information in this presentation, you should remember that past performance is not a guarantee, prediction, or projection of future results, and there can be no assurance that we will achieve similar results in the future. Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio companies including our and their ability to achieve our and their respective objectives as a result of an inflationary economic environment; the effect of investments that we expect to make and the competition for those investments; our contractual arrangements and relationships with third parties; actual and potential conflicts of interest with GC Advisors LLC ("GC Advisors"), our investment adviser, and other affiliates of Golub Capital LLC (collectively, "Golub Capital"); the dependence of our future success on the general economy and its effect on the industries in which we invest; the ability of our portfolio companies to achieve their objectives; the availability of equity and debt capital and our use of borrowed funds to finance a portion of our investments; the adequacy of our financing sources and working capital; the timing of cash flows, if any, from the operations of our portfolio companies; general economic and political trends and other external factors, changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets that could result in changes to the value of our assets, including changes from the impact of an inflationary economic environment and/or the coronavirus (“COVID-19”) pandemic; the ability of GC Advisors to locate suitable investments for us and to monitor and administer our investments; the ability of GC Advisors or its affiliates to attract and retain highly talented professionals; the ability of GC Advisors to continue to effectively manage our business due to disruptions, including those caused by global health pandemics, such as the COVID-19 pandemic, or other large scale events; our ability to qualify and maintain our qualification as a regulated investment company and as a business development company; the impact of information technology systems and systems failures, including data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks; general price and volume fluctuations in the stock market; the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder and any actions toward repeal thereof; and the effect of changes to tax legislation and our tax position. Disclaimer
3 Summary of Quarterly Results – GDLC generated an annualized net investment income return on equity1 of 8.8% and an annualized net income return on equity1 of 6.0% during the quarter ended September 30, 2022. – Investors in GDLC have achieved an IRR2 on NAV of 6.7% through September 30, 2022. – For the quarter ended September 30, 2022, we made new investment commitments of $93.7 million in 26 portfolio companies. The fair value of investments as of September 30, 2022 was $201.8 million. Overall, total investments in portfolio companies at fair value increased by $73.1 million or 56.7%. The investment income yield3 for the three months ended September 30, 2022 was 9.0%, an increase from 7.3% for the three months ended June 30, 2022. – As of September 30, 2022, we had total investor capital subscriptions of $339.6 million and contributed capital of $135.7 million (40.0% called capital ratio). In addition, after quarter end, we issued one capital call for total proceeds of $15.3 million. 1. Return on equity calculations are based on daily weighted average of total net assets during the period presented. 2. Internal rate of return (“IRR”) on net asset value (“NAV”) is calculated at the fund level using beginning of period NAV, capital share issuances during the period, distributions paid or payable during the period, and ending period NAV. Period beginning July 1, 2021 and ending September 30, 2022. The first investment in GDLC took place on July 1, 2021. These returns do not represent an actual return to any investor in the Company. 3. Investment income yield is calculated as (a) the actual amount earned on earning investments, including interest, fee income and amortization of capitalized fees and discounts, divided by the (b) daily average of total earning investments at fair value.
4 Quarter Ended September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Select Financial Data New investment commitments $29,650,775 $74,185,526 $10,922,663 $59,164,777 $93,741,228 Fair value of investments $22,990,132 $72,713,311 $78,490,803 $128,777,064 $201,836,098 Net income (loss) ($19,158) $1,333,180 $1,625,872 $159,540 $1,632,338 Net Investment Income after excise tax $132,021 $828,466 $976,370 $1,222,639 $2,973,327 Earnings (loss) per weighted average share1 ($0.02) $0.46 $0.47 $0.03 $0.23 Net investment income per weighted average share1 $0.11 $0.29 $0.28 $0.26 $0.41 Annualized return on equity – net income2 (0.4%) 12.2% 12.9% 0.9% 6.0% Annualized return on equity – net investment income2 3.1% 7.6% 7.7% 7.0% 8.8% Asset Mix of New Originations Senior Secured 23% 1% 1% 2% 1% One Stop 72% 95% 88% 92% 98% Junior Debt3 4% 0%* 0% 0% 0% Equity 1% 4% 11% 6% 1% Summary of Quarterly Results (cont’d) * Represents an amount less than 1.0%. 1. Per share returns are calculated based on the daily weighted average shares outstanding during the period presented. Due to the significant changes in net assets, net investment income and net income that may occur quarter-to- quarter as a result of Golub Capital Direct Lending Corporation (“we”, “us”, “our”, the “Company” or “GDLC”) commencing operations on July 1, 2021, per share amounts may fluctuate significantly from quarter-to-quarter and quarterly comparisons may not be meaningful. 2. Return on equity calculations are based on daily weighted average of total net assets during the period presented. 3. Junior debt consists of second lien and subordinated debt.
5 Portfolio Highlights - Portfolio Diversity as of September 30, 2022 5% 1% 91% 3% Equity Junior Debt One Stop Senior Secured Asset Mix by Investment Type Portfolio Risk Ratings Internal Performance Rating Investments at Fair Value (000s) % of Total Portfolio 5 $1,149,541 1% 4 197,603,049 98% 3 3,083,508 1% 2 — — 1 — — Total $201,836,098 100% Internal Performance Ratings Definition Rating Definition 5 Borrower is performing above expectations and the trends and risk factors are generally favorable 4 Borrower is generally performing as expected and the risk factors are neutral to favorable 3 Borrower may be out of compliance with debt covenants; however, loan payments are generally not past due 2 Borrower is performing materially below expectations and the loan’s risk has increased materially since origination 1 Borrower is performing substantially below expectations and the loan’s risk has substantially increased since origination
6 Quarterly Statements of Financial Condition As of September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 (audited) (unaudited) (unaudited) (unaudited) (audited) Assets Investments, at fair value $22,990,132 $72,713,311 $78,490,803 $128,777,064 $201,836,098 Cash and foreign currencies 29,590,413 1,817,458 11,347,545 8,002,653 6,073,652 Other assets 409,053 784,076 707,277 795,964 1,310,731 Total Assets $52,989,598 $75,314,845 $90,545,625 $137,575,681 $209,220,481 Liabilities and Net Assets Debt $16,350,000 $27,861,238 $29,996,118 $45,834,903 $73,113,518 Deferred debt issuance costs — — (393,205) (392,082) (631,534) Interest payable 1,466 8,179 31,692 221,476 635,421 Distributions payable — 600,698 1,112,823 764,804 — Other liabilities 350,272 373,075 845,912 1,913,036 150,005 Total Liabilities 16,701,738 28,843,190 31,593,340 48,342,137 73,267,410 Total Net Assets 36,287,860 46,471,655 58,952,285 89,233,544 135,953,071 Total Liabilities and Net Assets $52,989,598 $75,314,845 $90,545,625 $137,575,681 $209,220,481 Net Asset Value per Share $14.97 $15.00 $15.00 $14.90 $15.00 Leverage Ratio 0.45x 0.60x 0.51x 0.52x 0.54x Asset coverage 321.9% 266.8% 296.3% 293.8% 284.4% Common shares outstanding 2,424,742 3,098,110 3,930,152 5,989,254 9,066,482
7 Quarterly Operating Results For the quarter ended September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $127,852 $861,604 $1,311,505 $1,777,624 $3,576,081 Fee income 5,635 16,938 651 8,323 80,106 Total Investment Income $133,487 $878,542 $1,312,156 $1,785,947 $3,656,187 Expenses Interest and other debt financing expenses $1,466 $8,179 $35,461 $247,925 $682,860 Base management fee, net of waiver1 — — — — — Incentive fee – net investment income, net of waiver2 — — 100,164 131,227 — Incentive fee – capital gains — 41,897 (301) (41,596) — Other operating expenses 201,373 172,215 192,728 225,753 303,759 Other operating expenses reimbursement waiver3 (201,373) (172,215) — — (303,759) Total Expenses 1,466 50,076 328,052 563,309 682,860 Excise tax — — 7,734 — — Net Investment Income after excise tax $132,021 $828,466 $976,370 $1,222,638 $2,973,327 Net Gain (Loss) on Investments and Foreign Currency Net realized gain (loss) on investments and foreign currency transactions ($80,059) ($20,297) ($5,661) ($21,499) ($57,409) Net unrealized appreciation (depreciation) on investments and foreign currency transactions (71,120) 525,011 655,163 (1,041,599) (1,283,580) Net gain (loss) on investments and foreign currency transactions (151,179) 504,714 649,502 (1,063,098) (1,340,989) Net increase/(decrease) in net assets resulting from operations ($19,158) $1,333,180 $1,625,872 $159,540 $1,632,338 Per Share Data4 Earnings/(loss) per weighted average share ($0.02) $0.46 $0.47 $0.03 $0.23 Net investment income per weighted average share $0.11 $0.29 $0.28 $0.26 $0.41 Distributions declared per share5 $0.04 $0.44 $0.48 $0.17 $0.13 Weighted average common shares outstanding 1,138,050 2,900,491 3,426,305 4,694,025 7,249,093 1. For the quarter ended September 30, 2022, the base management fee incurred by the Company was $413,061 and the base management fee irrevocably waived by GC Advisors totaled $413,061, which included a one-time waiver of $137,550 of the base management fee in order to waive 100% of the base management fee calculated under the Investment Advisory Agreement. 2. For the quarters ended December 31, 2021, March 31, 2022 and September 30, 2022, GC Advisors agreed to a waiver of $87,036, $7,423 and $264,925 of income incentive fees, respectively, calculated under the Investment Advisory Agreement. 3. For the quarters ended September 30, 2021, December 31, 2021 and September 30, 2022, GC Advisors and Golub Capital LLC waived reimbursement of $201,373, $172,215 and $307,759, respectively, for any operating expenses and costs and expenses subject to reimbursement by the Company. 4. Except as otherwise noted, per share data is calculated based on the daily weighted average shares outstanding during the period presented. 5. Per share data are based on (i) the total distributions paid for each respective record date during the period presented divided by (ii) the total number of shares outstanding on each respective record date. Please see slide titled, “Common Stock and Distribution Information” included in this presentation for details on the distributions declared during the period.
8 Common Stock and Distribution Information Distributions Paid Date Declared Record Date Earnings Period Shares Outstanding Payment Date Amount Per Share Total Amount August 6, 2021 August 6, 2021 July 2021 1,212,700.000 September 30, 2021 $0.0125 $15,184 August 6, 2021 August 25, 2021 August 2021 1,616,700.000 September 30, 2021 0.0303 48,928 October 5, 2021 October 5, 2021 September 20211 2,424,742.000 November 22, 2021 — — Total for Quarter Ended September 30, 2021 $0.0428 $64,112 October 5, 2021 October 18, 2021 October 2021 2,424,742.000 November 22, 2021 $0.1530 $371,044 November 19, 2021 November 29, 2021 N/A 3,098,110.333 December 27, 2021 0.0898 278,168 November 19, 2021 December 20, 2021 December 2021 3,098,110.333 February 28, 2022 0.1939 600,698 Total for Quarter Ended December 31, 2021 $0.4367 $1,249,910 November 19, 2021 January 20, 2022 January 2022 3,098,110.333 March 23, 2022 $0.1656 $513,049 February 4, 2022 February 25, 2022 February 2022 3,514,131.333 May 23, 2022 0.1461 513,385 February 4, 2022 March 21, 2022 March 2022 3,514,131.333 May 23, 2022 0.1706 599,438 Total for Quarter Ended March 31, 2022 $0.4823 $1,625,872 February 4, 2022 April 29, 2022 April 2022 4,498,180.333 July 25, 2022 $0.0764 $343,580 May 6, 2022 May 20, 2022 May 2022 4,498,180.333 July 25, 2022 0.0936 421,224 May 6, 2022 June 24, 2022 June 2022 2 5,137,211.866 September 14, 2022 — — Total for Quarter Ended June 30, 2022 $0.1700 $764,804 May 6, 2022 July 19, 2022 July 2022 5,989,253.866 September 14, 2022 $0.1269 760,256 August 5, 2022 September 20, 2022 Aug / Sep 2022 3 9,066,482.048 November 22, 2022 — — Total for Quarter Ended September 30, 2022 $0.1269 $760,256 1. On October 5, 2021, our board of directors declared a distribution in amounts equal to the net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for the period September 1, 2021, through September 30, 2021, per share payable on November 22, 2021, to shareholders of record on October 5, 2021. Due to a net decrease in net assets resulting from operations for the period September 1, 2021, through September 30, 2021, the distribution declared for the September 2021 earnings period were zero. 2. On May 6, 2022, our board of directors declared a distribution in an amount equal to the net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period June 1, 2022 through June 30, 2022 per share payable on September 14, 2022 to shareholders of record on June 24, 2022. Due to a net decrease in net assets resulting from operations for the period June 1, 2022 through June 30, 2022, the distribution declared for the June 2022 earnings period was zero. 3. On August 5, 2022, our board of directors declared a distribution in an amount (if positive) such that our net asset value as of September 30, 2022 on a pro forma basis after giving effect to the net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period August 1, 2022 through September 30, 2022 and the payment of this distribution is $15.00 per share. Due to the net increase in net assets resulting from operations for the period August 1, 2022 through September 30, 2022 resulting in a net asset value per share of $15.00 per share, the distribution declared for the period was zero.
9 Common Stock and Distribution Information (cont’d) Distributions Declared Date Declared Record Date Earnings Period Shares Outstanding Payment Date Amount Per Share Total Amount August 5, 2022 October 18, 2022 October 20221 9,066,482.048 December 28, 2022 TBD TBD November 18, 2022 November 21, 2022 November 20222 10,085,133.581 December 28, 2022 TBD TBD November 18, 2022 December 15, 2022 December 20223 TBD February 28, 2023 TBD TBD November 18, 2022 January 17, 2023 January 20234 TBD March 21, 2023 TBD TBD 1. On August 5, 2022, our board of directors declared a distribution in an amount (if positive) such that our net asset value as of October 31, 2022 on a pro forma basis after giving effect to the net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period October 1, 2022 through October 31, 2022 and the payment of this distribution is $15.00 per share. 2. On November 18, 2022, our board of directors declared a distribution in an amount (if positive) such that our net asset value as of November 30, 2022 on a pro forma basis after giving effect to the net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period November 1, 2022 through November 30, 2022 and the payment of this distribution is $15.00 per share. 3. On November 18, 2022, our board of directors declared a distribution in an amount (if positive) such that our net asset value as of December 31, 2022 on a pro forma basis after giving effect to the net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period December 1, 2022 through December 31, 2022 and the payment of this distribution is $15.00 per share. 4. On November 18, 2022, our board of directors declared a distribution in an amount (if positive) such that our net asset value as of January 31, 2023 on a pro forma basis after giving effect to the net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period January 1, 2023 through January 31, 2023 and the payment of this distribution is $15.00 per share.
